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Show y VOdwr. larlcorji f RON - CIKCUCATiraS ( sV, i j G$(sXy)R9uJM)R9 AUGUST 31. 1970 VOLUME 2, NUMBER 26 25 Cents Per Copy Interior takes long, hard look at ol shale task force findings WASHINGTON-A- n intensive review is now under way at the Interior Department of findings field of a recent week-lon- g in Utah, Wyoming and survey Colorado by a group that included the department's oil. shale task force. It could lead to federal oil shale development programs. This good news came from Secretary of the Interior Walter Hickel who noted the field trip was in the determining effects' of oil shale development program. He pointed out the task force reviewed 10 potential development sites in the three states and its members are now reviewing their findings as to final form. the task force and involved several Secondly, included recognized independent conservation They experts. us in the early stages of planning and I think they will how to achieve desired joined environmental objectives. The secretary stated first and foremost the task force combined its efforts in spotlighting potential interest of environmental effects required the environmental environmental plans are put in in gathering basic data before help the federal and state well as other people, conservationists and the general public in understanding what is being done and how it is being accomplished," Sec. Hickel said. Study shows western Rockies have vast oil, gas potential western Mountain Rocky region has the potential to produce many times the amount of oil and gas already brought up from its underground basins and belts, the National Petroleum Council believes. And it cited the Four Corners area and the Uinta Basin as especially promising. The council has done a three-yea- r study of oil and gas WASHINGTON-T- he in the nationl The was requested by the study Interior Department and a council committee, headed by Otto N. Miller of Standard Oil fo California and Hollis M. Dole of the Interior Department, carry it potential out. Wyoming. The area has solid potential for oil and gas, the report said, including the possibility of vast fields. It estimated oil reserves ranging up to 50 billion barrels-includi- ng Divided into regions, the study included Arizona, western Colorado, Idaho, western ftew Mexico, Nevada, and a part of under that part of the country may total 26 tinued onfyge 5 reserves-a- Emery C. Olsen, Dragerton, Utah, chief mine inspector for Western District Coal Operations of U.S. Steel Corp., was elected president of the Mine Inspectors Institute of America at their convention recently at Osage Beach, Mo. DESPITE A TROUBLED ECONOMY, oil and mining activity continues at a record pace throughout the Rocky Mountain area. Production is still going on, minerals are still in the ground for the taking, crops are still ready for the harvesting. And the illogic of man assures an economic upturn (See Chuckin' a Few" Page 5). Olsen, who has been with U.S. Steel in Utah since 1944. is a gas member of the American Institute of Mining, Metallurgical Petroleum Engineers, the American ' Society of Safety Engineers, the National Safety and Council and the Rocky Mountain Coal Mining Institute. former US- - Bureau of Mmc employee and has more than 30 years experience in the mining industry. His efforts as president will be directed toward a greater degree of mine safety. Test successful at Major Oils tar sand project its Oil, gasoline and diesel two-unit- nd Utahn is mine inspector chief AUVEAND WELL IN HEART OF ROCKIES will be ready to begin operating Oct. 1 5, that will raise the about distillate have been extracted from tar sand in a successful test capacity of over 3,000 barrels a run at Major Oil Corporations day, he added. We have been running two refinery in Roosevelt, and the plant will be in commercial separation machines at the tar production within the next two sand, strip mine near weeks. Whiterocks, about 25 miles The prediction was made by northeast of Roosevelt, and have Major Oil president John B. been able to produce crude oil at Fairbanks Jr. at the firms office the rate of 800 barrels a day. We have two more machines that we in Salt Lake City. In a July test, one of expect to move out into the area at the refinery produced in the near future which will oil, gas and diesel fuel at the rate double our capacity." he said. Fairbanks noted that the tar of 1,000 barrels a day, Fairbanks said. We have a second unit that sand is a little lean but its probable, possible and speculative getting richer as the mining goes deeper. We have been able to secure a verbal commitment on additional financing to complete the refinery and give us operating capital," he said. We ( s . are negotiating a contract that will take our entire production. The major part of the product probably will be marketed in the Salt Lake area, Fairbanks said. Asked whether he thought his operation could be successful in tremendous losses in Athabasca Tar Sand explained. We development near Calgary, money Alberta, Canada, Fairbanks said, Our process is more efficient and less hazardous than the Sun Oil process. We figure our cost of extracting oil is presently $1.89 a barrel. As we get into volume production, we figure we; can shave 30 cents a barrel from this cost. I understand Suns volume production cost is $1.84 per barrel. They also have transportation problems since . they are far from their the light of Sun Oil's marketing area," Fairbanks wont make as much per barrel as do the conventional producers. We feel that this is going to be a $3.20 per barrel crude because it's high is resins-abo- ut 45 per cent. As a result, the ductility is good even in cold weather. This is an advantage in road construction use because the tar sand product won't crack as do other oils," he said. We feel we can make a profit as soon as we get into production. Fairbanks said. |