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Show Carbon Dioxide Plan Faces Possible Block ESCALANTE What has been termed the largest carbon dioxide (C02) deposit in the United States is scheduled to undergo verification test drilling during late spring and early summer 32 miles northwest of Escalante according to John D. Slawter, president of Pacific International Production Co. of Dallas, Texas. But a wilderness bill could prevent its development. Slawter said the massive deposit, which was discovered last September by Mid-Continent Oil Company, a subsidiary of Pacific International, lies beneath an estimated 40,000 acres of land and contains possibly four trillion cubic feet of carbon dioxide gas valued at 8 billion, based on current prices. The initial wildcat well was drilled through a farmout agreement with Atlantic Richfield Company and is located Just north of two proposed wilderness areas, and that fact has Slawter concerned. Slawter said, "Since our deposit is located on national forest property, we would naturally take every precaution to honor and protect the environment of the area. However, the Utah Wilderness Bill, now being considered by Congress, would prevent Mid-Continent Oil Company from developing this important carbon dioxide discovery," Slawter added, "I would be sur prised if the average citizen of Utah has been fully apprised of, or is conversant with, the dilemma facing the people of Garfield County relative to the proposed bill. If this bill is passed, and we are prevented from developing the property, Garfield County would be denied the prospect of 500 to 700 new Jobs and substantial revenues from a five percent advalorem tax which would be generated through the production of two to four trillion cubic feet of C02." Carbon dioxide is rapidly gaining commercial recognition as a transport medium for proposed coal slurry pipelines, and as an agent to rejuvenate exhausted oil wells, a process known as Enhanced Oil Recovery, the official stated. Slawter said, "It is estimated that, through C02 compression, an additional 50 to 60 percent of oil can be recovered from oil fields in Utah, Colorado and California which now have lost natural pressures. I would estimate that the U.S. Government would receive an additional $15 to $18 billion in royalty and income taxes through Enhanced Oil Recovery, in addition to the taxes from the production of C02 from our deposit in Garfield County." He added, "If the Congress allows the Bog-Death Hollow wilderness area in Garfield County to become part of the Utah Wilderness Bill, it would deny Garfield County and . Utah an important new business opportunity," |