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<br />Phase III - Primary Expansion <br />After sufficient operation of the prototype mining and <br />retorting units to establish the soundness of the methods <br />and to bring about the improvements which are certain to <br />result, shale oil production can be expanded with confidence <br />-18- <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Phase II will be at existing refineries in the market area. <br />Other supporting facilities of the prototype plant(s) <br />also will be kept to a minimum. Electric power generation <br />using by.product gases will not be a part of the first <br />plant or plants. Instead, electricity will be purchased <br />from public utilities serving the area. <br />The existing local labor supply will be utilized to <br />the maximum extent. It is estimated that qualified per- <br />sonnel to the extent of about one-half of the staff, can <br />be employed locally. Supervisory personnel, technicians, <br />and certain skilled operators and craftsmen will need to <br />be brought in, but essentially all can be housed in the <br />towns and communities between Glenwood Springs and Grand <br />Junction. <br /> <br />In summary - Phase II, the prototype plant(s), located <br />in the Grand Valley-Debeque area of western Colorado, will <br />produce about 25,000 barrels per day of crude shale oil. <br />We expect this development to occur between 1960 and 1965. <br />The crude oil will be moved through existing pipeline sys- <br />tems to refineries in logical market areas. Local labor <br />supply can be used for a large percentage of the staff. <br />Existing communities and supporting facilities will meet <br />the needs of the prototype phase. <br />