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<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 />and at minimum cost, Again transportation of the oil to <br />market will be the controlling factor. The size of the <br />~primary expansion of the industry is likely to be the <br />~ <br />~ capacity of smallest economic shale oil pipeline to the <br />Pacific Coast, which we estimate will be about 150,000 <br />barrels per day. Although larger quantities of oil may <br />be pipelined at a lower cost per barrel, it is unlikely <br />that a larger line would be layed at this stage of <br />development. <br />Several mines, retorting plants, and one or more <br />refineries will be required for Phase III. The principal <br />product will be a high-quality partially-refined shale oil, <br />needing minimum additional refining. The availability of <br />low-cost by-product fuel gas from retorting makes it more <br />economical to refine the shale oil at the site of produc- <br />tion rather than at existing refineries in the market area. <br />The expansion of production to 150,000 barrels per day <br />is a significant undertaking in terms of capital investment <br />and human effort. Production, refining, and transportation <br />facilities alone will cost at least $750 million (6). <br />Housing and community facilities for an additional <br />population of approximately 45,000 persons will be required. <br />Most, if not all, of the Phase III development will <br />occur along the Colorado River between Rifle and Debeque <br />and in the Parachute and Roan Creek areas. The communities <br />from Glenwood Springs to Grand Junction will share in the <br />population growth. <br />The by-products of shale oil production and refining <br />are fuel gases, ammonia, sulfur and coke. The low-heating <br />-19- <br />