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Show SERVING MOAB AND Moab, Grand County, Utah 84532 SOUTHEASTERN UTAH SINCE 18916 Number 2 Volume 88 ' Thursday, January 14, 1982 - '- Loss of jobs more than just those at Moab Atlas mill ; -i -f v- ' .y r' v i ' ,i v .V ,.- . r Hm ' , y& isi total of 175 employees were laid off by Atlas Minerals last Friday, Jan. 8, as part of an effort by the company to weather a soft period in the uranium market. The alkaline circuit at Atlas Moab mill has been shut down. Several of the companys mines have been placed on a standby basis, pending improvements in the market. A Mayor still pushing to take over administrators duties In an interview Monday, Jan.-11- , Moab Mayor Tom Stocks discussed the recent transition in city government and outlined plans for the immediate future. He reaffirmed his campaign stance that the mayor, as chief executive officer, should also serve as ad- ministrator. Since 1978, when an ordinance was passed by the city council creating the appointed position of administratorrecorder, four administrators have been hired by Tar sands development on Grand County land still being considered Robert a represen- Bentley, tative of C & A Construction Company, will meet with the Grand County Commission next week to discuss a request for $10 million in industrial revenue bonds to develop a tar sands processing plant in the Book Cliffs of Northern Grand County. Company representatives submitted the original request several months ago, but action was deferred by the commission until additional information on the company could be obtained. County Clerk Bobbie Domenick commented that the commissioners were satisfied by their investigation. Representatives of the Scotts-- ' dale, Arizona-basecompany have met with the commission to discuss the proposal several times since last spring. Preliminary plans call for construction of a per day processing plant, to remove oil from tar sands in the P. R. Springs area. The oil will be removed by a solvent process. to a Initially, according statement previously issued by Bentley, the plant would employ from 25 to 30 workers, with most being hired locally. The plant would be of modular construction, to allow for expansion, if warranted by successful production and sufficient tar sand reserves. Such expansion could result in production of up to 200,000 barrels per day, Bentley said. The $10 million in industrial revenue bonds requested by C & A is the maximum allowed by law. Under the program, the county would incur no liability for the bonds. Once authorize by the commission, the bonds would be sold to investors. Bentley said the bonds are attractive to investors, e due to their status. C & A is also one of a dozen energy firms competing for loan guarantees from the U.S. Synfuel Corporation. A decision on successful applications will be made by that agency in the near future. Plans call for the tar sand with deposits to be surface-minetopsoil and overburden set aside. sands would then be d 200-barr- el tax-fre- d, Tar-bearin- g removed for processing. After being crushed and processed, the clean sand would be replaced, along with the overburden . and topsoil. Bentley said the area would then be replanted. In making the initial request, Bentley told the commissioners the plant would have a minimal impact on the environment, as a closed system would be used. About 99.8 percent of the solvent used to remove the oil from the sand would be recycled, he said, adding that the method uses no water. Water for housing and dust control at the site would be provided from a well drilled at the location. At the time of the initial request, the company reported that about $2 million had been invested in the project. ' Bentley estimated that expan- sion of the plant would result in from 25 to 30 additional jobs for each 200 barrel per day increase in production. He told the commissioners that local contractors and labor would be used on the project whenever possible. Bentley previously reported that additional plants may be located in Uintah County, if sufficient tar sand deposits are present. However, state law requires that all funds from industrial revenue bonds be used to construct facilities in the issuing county. Under the initial proposal, the entire $10 million from the bonds would not go into construction of the initial plant, but could be used for expansion. Of the tar sands deposits in the U.S., Bentley stated, about 98 percent are located in Utah, with the P. R. Springs site being one of the major locations. He estimated that there is a total of 30 million barrels of oil in tar sands located in Utah. The proposed plant site is located on state land. At the time of the formal proposal, submitted to the county commission last Sept. 29, C & A was attempting to obtain permits from the state and federal governments, and finalizing leasing arrangements. m mid-198- the council. Stocks favors the mayor serving as administrator, with the recorder being a separate appointed position. Outlining reasons for his stand, Stocks stated that former Mayor Harold Jacobs received $4,000 a year as mayor, $3,200 a year as utility and shop supervisor and $1,800 a year in travel expenses, for a total of $9,000 annually. Former City AdministratorRecor-de- r Ralph McClure, he added, received an actual salary of $25,200 a year. At a city council meeting on Jan. 5, Mayor Stocks proposed that he be named administrator, at the same salary as the former adUnder ministratorrecorder. Stocks proposal, City Councilman David White would assume the responsibilities of city recorder. He commented that there would be no conflict of interest, as state statute specifically allows a councilman to serve as recorder. Stocks also proposed appoinsecretary ting administrative Sharren Howell as treasurer, Ross Leech as street supervisor, Larry Johnson as lead utility worker and John Keogh as city engineer. By using existing personnel, he said, additional cost to the city could be avoided. Both Stocks and City Councilman Sheldon Hefner stated that costs could be reduced by the mayor serving as administrator. Hefner remarked that the issue will be raised at the next council meeting on Jan. 19. Stocks stated that, as mayor and administrator, he would insist on intergovernmental cooperation between Moab City and Grand Council, where legal, to reduce government expenditures. As authorized by the council at the last meeting, a contract is being prepared for joint animal control in the city and county. Under the proposal, the city and county will split the wages of the county animal control officer. At the present time, the city vehicle is being used, with the county paying gasoline costs. The council also authorized the city building inspector to share an office with the county building inspector. The building inspection office is located upstairs in the courthouse, in an office shared by County Commission Chairman Ray Tibbetts. Under an interim agreement, Stocks continued, County Attorney Bill Benge is prosecuting city cases, following the resignation of City Attorney A. J.- Coffman. Stocks commented he feels that any conflict of interest regarding the position of city attorney can be resolved. The duties of city attorney may be split between Benge and attorney Paul Mortensen, he - uiu In an effort at continuing its, waiting to see what impact the uranium Several major operation through a weak period layoffs will have on the stores operations in the West have closed uranium industry. Atlas business. Market down completely in recent months. City Minerals announced this week that management is making contingenAbout six months ago, 140 em175 employees had been laid off. cy plans for possible layoffs, he ployees were laid off at Rio Total workforce of the company said, although none are presently Algom Corporations Lisbon mine had been about 500. and mill. The number of workers in anticipated. He said that construcA breakdown on the layoffs tion of a new City Market store in the uranium mining and milling released this week by Atlas in- Moab has been postponed inindustry has dropped from 19,000 dicates that 90 of the terminated definitely, perhaps by as much as to about 11,000 during the past employees are Moab residents. Of one to two years. year. the remainder, 45 are residents of Atlas plans to continue exRudy Higgins, head of Green River, 15 are from the LaSal Texasgulfs Moab potash plant, ploration activities at about the and Monticello areas, and 25 of the commented that operations will same level. During the previous workers reside in Colorado. continue at present levels, with no three years, the company has spent Plans called for shutting down plans for expansion or reduction of about $3 million per year on exthe Moab mills alkaline circuit, workforce. ploration for new ore bodies in the which costs more to operate than Ken Curtis, manager of the area. the acid circuit. In addition, the Moab Job Service office, said that Despite the closing of the alkaline circuit, the company plans companys Snowbird and Probe he expected over 100 new unemmines, located 12 miles southwest ployment claims to be filed by the to meet its commitments under all of Green River, have been closed end of this week. The office has existing contracts and continue ore and placed on a standby basis. The been receiving an average of from purchases from other suppliers unCallihan mine near Moab has also 20 to 30 new claims per week prior der contract, regardless if the ore is been placed on standby. suitable for the alkaline or acid cirto the the Atlas layoff. Atlas Pandora mine near cuit. LaSal has been placed on a Atlas Corporation President Schultz, George regional slowdown status, with a reduc- geologist for Cotter Corp., stated Edward R. Farley, Jr., has extion in shifts ordered. Company of- that the companys exploration ofpressed optimism over the future ficials have stated that standby fice in Moab will remain open. He of the company and the uranium status will be maintained at the added that Cotters Thornburg ihdustry. Farley stated he expects operations, to enable Atlas to take mine, located in the Seven-Mil- e the price of uranium to rise within advantage of increased prices in area north of Moab, will continue five to 'six months. Company the future through reduced start- operation at least through the end spokesmen have expressed hope of 1982. There was a cutback in that the price of uranium will rise up time. The layoff has had some effect personnel at the mine in sufficiently to make early reacon other businesses in the area. At the present time the mine emtivation of the alkaline circuit Albert Marsing, a spokesman for ploys about nine workers. feasible. McFarland and Hullinger trucking, stated that the company has laid off three shop employees. In addition, six lease truckers were laid off at the end of Decern- ber. He added that Moab Ready Mix will no longer haul ore for McFarland and Hullinger. Marsing went on to state that no drivers have been laid off, although working hours have been cut. He said that no additional layoffs are anticipated at the present time. Pat Head of Plateau Supply said that his company is examining the present situation. He stated that, to date, no layoffs have been V'.vwy',made. If any layoffs were to be made, he said, they would be r ' ; r-- ' ; ' V minimal. ft tr City Market Manager Gene The layoffs by Atlas Minerals have had an effect on related businesses Cary said that his company is in the Moab area. McFarland and Hullinger Trucking, which hauls much of the uranium ore for Atlas, has cut back the hours of drivers added. working for the company and laid off three shop employees. No In discussing city council additional layoffs are anticipated in the immediate future, according meetings, held the first and third to a company spokesman. Tuesday of each month at 8 p.m., Stocks stated he would like to set aside time between the reading of the minutes and the business meeting for citizens who wish to address the council. He said that a Atlas announced iasc week that Despite the layoff of 175 emwritten outline for council memsome of its mines would be put on Corlast Atlas week, bers would be helpful. Citizens ployees President Edward R. standby or operated on a slow poration wishing to bring up issues for Farley, Jr., stated that he is opbasis. In addition, the alkaline legislative action must place these timistic over the companys recovery circuit at the Moab mill items on the agenda prior to the future. was shut down. Operation of the meeting, he pointed out. acid circuit,, which produces both He based his forecast on the Concerning other city ac- fact that many other uranium uranium concentrate and tivities, Stocks said a community producers have shut down vanadium, will continue. during clean-ueffort is being organized. recent months. In a few more monAt the present time. Atlas has He asked residents to look at their contracts with Georgia Power he continued, utilities will ths, homes from a neighbors point of Company through the middle of again call for uranium. view. He urged city residents to this year. In addition, the company When the demand picks up, participate in the program. has contracts with Boston Edison will be Atlas said, Farley prepared Stocks said he is also working to meet the demand. Companies Company to deliver uranium conwith the Shade Tree Commission that have centrate through with or production stopped to replace trees within the city. He an option to buy through 1985. g out of the stayed stated that filters in the municipal business because of the Farley commented that reacpool will have to be replaced before faltering market will not be able to tivation of the slowed down or the 1982 swim season begins. make a suspended Atlas operations will quick entry when the inMoney for the filters has. been set dustry situation improves, depend on future uranium price Farley aside in the budget. levels and sales commitments. asserted. The council had previously Prior to the layoffs, Atlas emwent on to state he exFarley discussed rebuilding the pool this about 500 mining and imthe uranium market to ployed pects year. However, the work could not prove within five to six months. workers. milling be completed before summer. Stocks said that the present pool will be open for the swimming season. Mayor Stocks also urged citizens to join the Moab Chamber of Commerce to assist with a transaction years, Texasgulf has invested a Concluding economic development in the area, which last the French estimated $60 to $70 million in began year, tl particularly in light of layoffs in oil company mining and milling operation. a the uranium industry. He drew announced that it has The French-owneparallel between a recent reduction acquired full control of compan Texasgulf, also reported that the fir in workforce by Atlas Minerals and of Inc., Stamford, Conn. chemicals operations of its sul the need for economy in city The transfer followed the government. sidiary M & T will also be absorbe of Texasgulfs by Texasgulf in the future. TI Stocks also thanked Utah acquisition Canadian assets by Canadian Moab Power and Light and Chamber of 10 employs Development Corp. of Canada and workers. operation Commerce President Gary JacobRudy Higgins, generi of a bonus. cash The S. U. of the Cane Creek plan son for their assistance in taking payment include the manager commented down the municipal Christmas Texasgulf holdings that since companys Cane Creek potash changeover, there has been tl r light display. mine near Moab. During the last 20 change in the operation, and nor are expected. in-th- e' 'T twfeii0!.4Pigiijnii .if irt ( . ' ,4 ;Vy'- Atlas chief optimistic about industry future p mid-198- uranium-producin- French firm gains full control of Texasgulf state-controlle- d d 40 iiPllUlrt! i0i i) |