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<br />DRI STUDY
<br />Shale Impact
<br />lBoggles Mind'
<br />
<br />The report suggests the u.s.
<br />Interior Department, which Is c
<br />administering a proposed oU t
<br />shale land-leasing program, be d
<br />asked to write leases requiring
<br />oil shale developers to put up ~
<br />money to pay for local plan-
<br />ning, housing, education and
<br />transportation services. The ad- ...
<br />vances then would be deducted r
<br />from shale oil royalties to be 5
<br />paid later on production. C
<br />In the sinh and seventh year
<br />of an oil shale program, the \
<br />need lor housing, school!, roads e
<br />and other services is expected 5
<br />to double. c
<br />The report predicts that In 5
<br />the sixth year of an industry e
<br />21,500 person! would be m-}
<br />voh'ed in the industry alone. 11
<br />The following year 43.000 per-
<br />sons would be involved In a t
<br />concurrent, explosive demand t
<br />, for housing, schools and olher I
<br />isen;('fs. b
<br />Local authorities ought to be
<br />~ looking for town sites, park- c
<br />. lands and other facilities to t
<br />. meet these needs. (
<br />I The report also recommends
<br />allowing shale companies to I
<br />provide environmental controls I
<br />I 35 part of their bidding on oil I
<br />shale leases. .
<br />The report also considen 1m- ;
<br />. position of a severance tax on ~
<br />oil from shale, but says it I
<br />I shouldn't be imposed until the (
<br />industry is well established.
<br />The money would provide local ~
<br />, services, sucb as mass transit. I
<br />"The industry Is finding costs.
<br />I terribly difficult 10 determine I
<br />now," said Gilmore. "An addi.
<br />. lional fixed cost now could be a
<br />d e t ere n t to de,'elopment,
<br />whereas later on it could be im.
<br />posed without hardship." I
<br />The report urges the region
<br />to establish a growth manage-.
<br />ment plan after becoming ac- .
<br />I quainted with lhe "threats and ~
<br />opportunities in oil shale de....el-
<br />.opment."
<br />Gilmore said the report l.s
<br />designed 10 look at problems,
<br />not advantages of oil shale de-.
<br />velopment. Report figures are
<br />I based on . 1 million barrels-a-
<br />Iday shale operation.
<br />Related story, page 56,
<br />
<br />..
<br />
<br />By DICK PROL'TY other jobs, particularly .lnct:
<br />Dfo\'er Post Staff Writer "oil shal, wage rates would
<br />The impact of an oil shale m- generally be higher thao those
<br />d~stry QIl ~estem Colorado is locally paid," the report says.
<br />mmd boggllDg, according to. A surplus of employabl
<br />Den v e r Research InstItute women would develop whiC~
<br />toRI} stUdy. could be a factor in .{tracting
<br />The ~port, lhlrd In a series new, non-shale light industry 10
<br />or wo.rkmg papers prepared for the area.
<br />the Oil Shale Regional Planning ..
<br />Commission at Rifle Colo The most serIous impact, if
<br />forecasts unprecedented growth i~ occurs,. would be th. .diver-
<br />for Garfield, Mesa and RiG slOn of oil shllle proceSS1l1~ or
<br />Blanco CGunlies, eno,ugh wal~ now used for irrl-
<br />Stressing that the region al. gatlon 10 1e':'O.usly reduce agrl.
<br />ready has a diversified gro th cultural activity and employ-
<br />the report predicts: w 'ment," the report slat~, noting
<br />-A population hy 1989 of that ,s~ch ~rg....scal. dIVersions
<br />%90,000 where 78,200 now liVe. aren t ineVItable.
<br />-As many as 9,000 new The r e ~ 0 r t repeatedly
<br />bornes needed in a single year, stresses AgrIculture as one ell
<br />-As many as 239 new school the region's scenic and econom-
<br />classrooms at a cost of $16.7 ic assets which should be pro-
<br />million needed 10 accommodate leeted, even if special consider.
<br />. single yea.r's growth. ations such 3.!1 agricultural land
<br />-As many as -4,165 new pre~rvalion procedures are
<br />mobile-home units needed in a reqUired.
<br />single year In addition to per- By 1989, assuming an In..
<br />manenl housing. dustry begill!l to gear up now
<br />-An additional 100,000 to l'Ind allowing for three years be-
<br />300.000 pl.'rSOI15 by the year 2000 tween design and construction
<br />that would make an immense of an oil shale plant, 45,000
<br />df'ffillnd on water, electrical homes and 10,000 mobile homes
<br />power and community senices, might be in use, 8n endeavor
<br />IS-YEAR SPA!.;r thai would cosl at least $950
<br />The study by John S, Gil- million.
<br />more, ,5enior DRI research The report says the bou~s
<br />tcooonust, and Mary K. Duff, and thi!' people will be on hand
<br />research associate, take, a before lues can be collected to
<br />lear.bY'.lear look at what could pay for community services, If
<br />hllppl.'n IQ the three-county area major shale installations are In
<br />over 15 years. one county and the workers liv-
<br />The report is base-d on the as- ing in another, significant por.
<br />.umption. .that tbe n~lional tions of tu base will be in
<br />energy cnS15 and ~nonuc fac. counties not subjeet to the
<br />tors \\0111 result in an intensive direct growth problems
<br />push in the near. fulure fur de-. 1berefore, the re~rt sug-
<br />\'elopment of 011 shale near gests, merging of county ser-
<br />Rifle and In Ihe Piceance Creek "ices and other sdministrations A
<br />Basin. (schools) ough\ to be considered
<br />The rtsearchers say their "An oil shale plant could fur: J.
<br />pri!'dictions are vulnerable to nisb some 105 of millions of ..
<br />lnajor changes in oil-shale min- dollars in bonding capacity but
<br />108 and processing technology, it might I'IOt be in the .1
<br />but "Ihe impacu of any signifi- district wbere the new popula.
<br />cant development appt'ar to be lion lives," the report said.
<br />50 profound that the com~unity The Initial influx of people D
<br />should now plan for them. , may be dispersed or concentrat- 31
<br />The demand for constructIon ro through the region 10 set fu- d
<br />workers fo~ oil shale planls. ture settlement and commuting
<br />minrs. housmg and other proj- pailI'm... I~
<br />'tcts will lure workers from
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<br />0007
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