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<br />3772
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<br />RUEDI DAM AND RESERVOIR, COLO.
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<br />81
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<br />The expansion of prodlldioIl to };j(),OOO barrels per day is a ,sig-
<br />nitica.nt. undertaking ill terms of capital in\'es~,I~l~nt and InIH.IfIJl effort..
<br />Production, refilling, and trnllsportutiull facllItl~s a]oll~ .":111 cost. at .
<br />least $7:)0 williol} (ll). I-lousing all(l eomnmmty f<.\~Jht,H~S fo~' alt.
<br />additional population nf approximately ..j,f>,OOO perSt)~l:-:: "WIll be reqUIred.
<br />.Most, if not :tll. of the phase III dc\'(>,lopmellt. .wIll occur along. the
<br />Colorado HiveI' uctween Rifle and De Beque and III the Parachuteland
<br />Roa.n Creek areaS. The t'UJ1]lllunitics from Glell\\"ooLl Springs to
<br />Gra.nd .Junction will share in the population gl'o'Wth.
<br />The byprouucts of shale oil productiun n.nd refining are- fuel gns~s,
<br />ammonia, sulfur, (l,nd coke. The low~l\eat.ln.g-val\\e retort. gases ~nll
<br />be used to generate eledl'icity and supply other process el1eJ'g~: reqUIre-
<br />ments. Some electricity ma.y be gCl1(,l'aled for local consumptlOll III the
<br />surroundillg COIIIIlllll1ities. There will be no excess energy from retort
<br />gtlsforoutside.inclust.rinluse.
<br />Excess feliller}'" gases will be used as n domest.ic fuel for the local
<br />cummunities1 supplemellted by natural gas from nearby fields. By-
<br />}Jl'oduct. ammonia. QfIO-:3(l(l tons per <.In}, cnn be marketed in the ROf~ky
<br />1\[olllLtain area as a fcrtiljzer. Tlte roke nIlcl sulfur will have no local
<br />11Jal'ket. and must be shipped outside the fll'en.
<br />The m:age of pet l'ol P,II III products in the nrea will grow in proportion
<br />to population, and imlustrial uses of fuels, pal'ticulnrly diesel, will
<br />increase- greatly. I-Iowen'r, the locallllal'ket. still ,,,ill 1)0 small com-
<br />pn.re(l with production, probably les~ than 10 percent.
<br />The prillcipnl supplies consumed in shale oil pl'odnction a.nd re-
<br />fining a.re drIll hits~ explosives, lubricants, water-trea.ting chemi{'als,
<br />catll.lysts, 1111(1 miscellaneous lTlaintenance materials. Essentially all
<br />sneh materinJ~ during phase III will he TlWTlUfactlll'ed outside the area.
<br />Construction mnterinJs sueh as steel, cerl1ent, 111lnhr,1', a,nd other manu-
<br />fadm'eel items, LllOugh requil"t'd ill quallt.it.y, a.lso will largely be
<br />shippei] in.
<br />III summary, during pllllse III, the production of shale oil will in-
<br />Cl'e,lse to about l;)I)~UtlO harrels per day. The product will be a par-
<br />tially relined oil of exceptional quality. Most, of the oil will be mar-
<br />keted 011 the Pacific Coast through a. single pipeline constructed spe.
<br />citlc:l.ll\" for shale oil.
<br />The "development of phase III shonld begin a.itcr II year or two of
<br />prot.ot,ype plant operatio111 and be completed within G years or about
<br />l07n.
<br />The industrial development "iJ1 be limitecl to shale oil production,
<br />refining, and t.ransportation facilities, and essential supporting ut.il-
<br />ities, Neither manufacturing pbnts ntilizing bvproducts of shale
<br />nor industry producing supplies for the shale mlnes and plants are
<br />foreseen during this period.
<br />A populntion increase of 40,000 to 45,000 oyer phase 11 seems Iike-
<br />IVl with the majority ljying in existing communities from GlenVlood
<br />Springs to Grand .Junct.ion.
<br />
<br />Phase !l"', Secondary eitpanldon.
<br />The growth of the shale industry follo"ing phase III should be
<br />mpid. The technology will be firmly e,r.,hlishe,d. The ,!emancl for
<br />petroleum fuels is expected to be such that rate of growth of shale oil
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