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Show See CheBary zrald By RON BARKER Herald Business Editor Unless increases in utility costs can be passed along mere quickly to consumers, Mountain Fuel Supply foresees the time when it will have to drastically cut back lis expansion budgei to ee for new customers in Commercial Oil Shale Recovery Put to Test VERNAL,Utah—The success shale an oil shale process demonstration project at Anvil Points, Colo. could pave the way for what could be the nation’s first commercial shale oil ‘operation. The oil shale project was facilities near Rifle, Colo. to test a new process developed by Paraho Development Corp. of _ The $7.5 million iss compan completed in February1976 ‘The Paraho process uses a vertical retort or kiln that can process rough crushed shale of varying sizes with yields of 90 to 100 per cent of the synthetic crude oi! and synthetic gas. The processed shale is more environmentally adaptable to disposal than finer crushed import Cars Get Better Gas Mileage By MICHAEL J. CONLON WASHINGTON (UPI) — Foreign-made cars are at the top of the government’s list of 1975 models with the best fuel economy, and at the bottem are American-made station wagons and automobiles with bigengines. Harry Pforzheimer, vice president of Sohio Petroleum ©o., one of the participating companies, is director of the Paraho program. Sohio Petroleum has substantiai oil shale holdings in both Colorado and Utah. ‘Two federal leases that figure prominently in the development of a shale oil industry in Utah border the White River in Uintah County 48 miles southeast of Vernal, each covering git les. One lease id lips Petroieurn Co. a Se Oi ®, hoth participants in the Paraho program, awarded May1, 1974 for a high bid of $75 million. The other was awarded to White River Shale Oil Corp. on dune 1, 1974 for a winning bid of 345 million. White River is equally owned by Phillips, Sun and Sohio cao ‘The companies plan a joint development of the two leases, along with sore adjacent Sohio properties, because of their proximity and fo minimize the environmental impact. Pforzheimer said that if the technology now being tested proves out, a 100,009 barrel-per-day plant could be constructed and in partial Speaking to a group of state production in 1978 and full production in 1980. An environmental study is scheduled to begin laie this year with completion in 1976 when actual plant construction could be started, assuming no problems develop. “Risks in oii shale development are very high,” Pforzheimer said. It was recently estimated, he said. that the investment required for a 100,000 barrel-per-day shale oi! complex,to be completedin 1980, wouldbe $1.4 billion. Pforzheimer said the Utah leases being considered forjoint commercialization would support such a plant and other fee lands in the area would support a second 100,000 barrel-per-day plant ‘The initial plant could create 2 new city in the barren area southeast of Vernal of up to 8,000 People “Such a community would accommodate the 1,700 to 1,800 employees needed for the plant, their families and related service people,” Pforzheimersaid. Future leasing in Utah should provide additional plaai sites down the road, he added, “which suggests a long and useful life for a Utah shale cil industry.” legisiasMors in Tuesday. : president of "Mountain Fuel, warned that the current system of applying for rates based on costs as much as 18 months to two years old is inadequate and harming the cempany’s financial struc ture, Inflation inflation has pushed costs up dramatically in the last few months, shortages of materials have forced the The passage ofa bill that will aid in economic problems facing the housing and home financing industries of the United States is being, passage of a bill that will aid in overcoming the economic problmes facing the and home financing industries of the United States is being urged to the Utah League of Insured Savings Associations and the Savings ana Loan of Hawaii. ‘The bill, H.R.11221, is back in committee to work out a compromise bill after different Right behind the Japanese Datsun. were Volkswagen's Rabbit and Scirocco with 24 m.p.g. in the city and 38 on the open road, the Mercedez-Benz 240-D and 30D, and other Datsun and Volkswagen moIs, No domestic-made car wasin the top 10 in either category, although several were in the second 10 in the more than 200 cars tested TURNING THE CAMERA on the photographers produces this shot of Kiddie Kandids, a children’s photography business in the University Mall’s main arcade. Richard Gadd, left, Liz Rich and Scott Adamssmile as they hope their own subjects High Post company cutomes is added to the to order some inerease to go in eectee without any guarantee of price, and the La interest rates and steck market rebiems have made it Siticalt for the company to Although Mountain Fuel's stock is sti} selling above book value, many utilities haven't done as well, Mr Kastler noted. Because of a The natural gas rates charged in Utah are among the lowest in the nation, the utility company president added. Only two states have relatively low rete or retum gas available at lower rates, items years in advance obtain investor the lime huhar ons sustained by “Mountai "Fuel capital needed for expansion to serve new customers and adequately supply old ones. Mountain Fuei is proposing on investment, investor capital although the needs of the natural gas companies are a revision in ihe rate system high, he added, to allow the companyto pass on higher costs almost immediately in consumer utility rates. is hard to get companies seek longterm leans, interest rates of propose 14 and 15 per cent are not that the regulatory eommission review increases in depth and order refunds umicommon Revenues from the operations of the wu! businessitself aren't envugh to pay for needed expansion Heavy Investment Mr. Kastier said that in 1974 Mountain Fuel would spend about $2,000 for each new customer. Whenever a new industria! or residential when necessary. In that way, said Mr. Kastier, both the consumer and the company would be protected, Two Year Delay Presently, it can take from 18 monthsto two years for an Mouniaiy Fuelis jane and they are very close to Utah's rate. Utah is the third lowest in the nation. Mountain Fuei is faced ing higher prices for wenlly discovered natural gas. Federal officials have allowed higher prices te be charged al the well heads, but the ulilities can't immediatelypass these costs an to natural gas customers. New supplies ate constantly required to replace depleted natural gas resvrves and these new supplies are sold at much higher prices. Prices Jump versions were passed by the House and Senate. Scharf S. Sumner,presidentof Western Savings and Loan Company, and president of the Utah League and Sam N. Okinaga, president of the Hawaii League, both signed the resolution which encourages a substantial increase in ihe insurance ceilings for public unit and other accounts. Presently an account is insured to $20,000 by the Federal Savings and Loan Insurance Corporation, an porn of the U.S. Government. A $50,000 insurance ceiling is bring sought. A Portion of Mount tal gas Comes from Canada, Mr. Kastler noted, and the price of that gas has jumped from32 cents permillion cubic feet earlier in the the year to 64 cents: it Mr. Rastier denounced a jon that utilities cuase inflation, or are the first to raien prinse. Because of the delay in the regulatory process, he mainted,utilities are among the lastto raise prices. Other regulated utilities, such as electric power companies, A ae problems, said Hesaid urgent seteby by ihe next State Legislature is needed if the companyis to continue to expand in the future to meet increasing natural gas demands in the state. In August A welcome matwill be out for plant where coal is taken from visitors at Utah Power & Light the mine via a covered conveyor Co.'s public openhouseat its new fo the plant's coal handling $137 million Huntington facilities. Tt incorporates pollution steam-electric piant Friday and Saturday, October 4 and 5 control equipment designed to between the hours of 19 a.m. and meet all stato and federai $p.m. standards, air and water ot star ts The cy Redemptions meanwhilefell in automated August to $338.8 million from electric genera ing station is $2.3 million in July. A year located seven miles northwest of eerlier redemptions totalled the community of Huntington. London, Ont,, is The plant's initial unit of largest city in Cana $432.1 million. 430,060 kilowatts can supply population is more than 230,000. enoughelectricity for two large ‘The upshot was thatnetsales, the amount by which sales indusirial loads like Kinnecott exceed redemptions, rose te Copper or two citiss the size of $1274 million in August, the Ogden Visitors will be impressed with largest margin since October 1971. tn July net sales were $89.4 the 23-story boiler; a viewinto its million while in August last year raging white-hot interior where temperatures reach 2,600 redemptions exceeded sales by ; and a walk around the $192.7 miltion turbine hall where theelectricity ‘The August figures reflect the is generated and where the tip of Sentral Uieh continued growth of money the largest blade of the turbine lusurance Agency market funds which recorded travels faster than the speed of Sales of mutual funds increased to $466.2 million in , the highest level for nine months. In July sales were ¥441.7 million and in August iast year $239.4 million. NASHVILLE,Tenn. (UPI) — Hospital Corp. of America has arranged a $30.25 million line of credit with eight majorlife insurance companies. The company said this stitetaniially completes its credit requirements for the financing of new sales of $273.6 million and sound. Fuel source for the plant is a hospitals to be opened in 1975 and redemptions of $50.8 ae to mine two miles distant from the 1976. pene iee ses 1B Environmental Protection Agencyfigures released Friday. Named to will. Mr. Gadd and Mr. Adamsare co-owaers of the business, and Miss Rich is the manager, Scott Adamsis a third generation photographer, and Mr. Gadd is the owner of Clara’s Wig Shop. Kent Fairchild, 33, son of Mr. Ross Fairchild, 473 N, 600 East, Provo, has been appointed vice president of finance for the SPECIALISTS IN COMMERCIAL BUSINESS LINE INSURANCE 709 W. Center 375-1155 ewiara Buy a new DORTROL garage door opening system before September 30th, and receive a radio-control Westem Farm Bureau Life Insurance Co., of Denver, Colo. Fairchild is a 1966 graduate of BYU. He also holds a masters degree in finance from ee University in cago. A member of the American Institute of Certified Public Accountanis, Fairchild worked for the CPA firm Haskins and Sells in Denver for three years, and then was treasurer for the Chicasgo firm Lawler Chemicals, Ine. Fairchild is married to the former Bonnie Brown of American Fork, anais the father of four children. According to Jack Hallowell, executive vice president of Western Farm Bureau,Fairchild will be responsible for all internal financial planning and control, Western Farm Bureau Life Insurance Co. has assets over $88 million and more than $517 millioninsurance in force. Main {fice of the firm is in Denver. 25 YEARS OF EXPERIENCE HAVE GONE INTO MAKING THE DORTROL SYSTEM OF YOUR CHOICE. 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Septe Rate Reform Sought Salt Lake: 2250 So, Main St. Orem: 1591 So, State St. Provo 375-1546 Ogden 392-1502 Salt Lake City 487-7442 |