<br />Var;ed interests clash at 0;' sha'e hearings
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<br />II,-TO\IJlt:f:'S
<br />Roclcy Moun/ain N_, Writ..,
<br />Oil Shale developers collided \\,ith
<br />natural gas int{>rt'~b and environment.
<br />aJists Tuesdav as the first in a series of
<br />pUblic hearings on the U.S. Interior De-
<br />partment's draft environmental impact
<br />statement on a propo$N) prototype oil
<br />shale leasing program opened in Den-
<br />vt"r.
<br />As outlined by the d('partm~t. the progTam
<br />would involve the sale. by compeUtive bonus
<br />bidding for private oil shale development, six
<br />5,l2O-acre leases on fedl'ral lands in Colorado.
<br />Wyoming and Utah. Two of the sill'S hne bN>n
<br />proposed for Colorado's Western Slope.
<br />Throughout the day the massh'l' three-
<br />volume draft en\'ironmentaI statemE'nt was as-
<br />sailN! by {'nvironmentalist.s as being "incom.
<br />p1ete" while industry spokesmf'fl called it
<br />"thorough and romprehensl\e." The hearing,
<br />which will "-'Sum€' al 9:30 8.m. WednE'sday, is
<br />bE'ing condud{'d in thE' Bureau of RE'clamation
<br />Auditorium at thE' [)('m-er Federal Center.
<br />ThP hearing jumped to life wht>n an atlomE'Jt
<br />for t\\.o Colorndo oil and gas companies told a
<br />four-ml'mi:)("r pallE'1 it appE'ars the lntemior De-
<br />partment alJ'{'ad~ has decid{'d to prohibit
<br />undl.'rgrouod nucl('ar stimulation of natural gas
<br />n>st'n-es on the statp's Western Slope in favor
<br />of oj] I'hllJe dl.'velnpm<'nt.
<br />t::>OU,-\~(it;R~ 1)fo:\"t;I.oP~lt::"iT
<br />John 1-1. Tippit, representing Rio Blanco
<br />Natural Gas Co, and Rio Verde ~atural Gas
<br />Co., both of o.."wer, said the adioo endanger.J
<br />dl'\'elof'ment of more than 300 trillion cubic ~t
<br />"of thE' moot \'itally neffit"d of all energy fuels
<br />-gas,"
<br />Tippit said the decision "exhibits an atti-
<br />tude" that:
<br />. "Violates the spirit of tht> statenlents of
<br />the PN:>sidl'nf" r('gardlng "balanced COWlidera-
<br />lilln of all l!OI.lN'Ml of energy,"
<br />. "Interior i~ \\iIIing to destroy or attempt
<br />to destrll)' Projed Rio Bltlnco and the Rio
<br />B1aflC<' Unit Area."
<br />. Int('rior is unilaterally pre-empting anoth-
<br />('I' departmE'nt o! gOlernment, the Atomic
<br />Energy COmmis....ion. whkh has not "to our
<br />knowledge" been made aware of tht' conflict.
<br />Proje<;t Rio BlanN) involves de\E'klpmenl of
<br />natural gas rE'5en-cs Ihrough the use of nuclE'ar
<br />expl06lvesin light formations 3,000 to 4,000 fret
<br />helow recon'rnble oil ~hale. 'l'hfo first test in the
<br />project may be- conductl.'d !It'xt spring.
<br />The arE'a under discl~..sion is south\1iest or
<br />Mf'ek('r in Rio Blanco County.
<br />Among thE' recommendations cited by Tippil
<br />on behalf (If his clients ....('rt' thl.'SE':
<br />. The oil shalE' tract under con.~ideration in
<br />the Rio Bl,nco l.:-;;it ArE':i sOOuld be relocated,
<br />. "If polil'lt'!> have befon formed in the De-
<br />partment of Interior whlch are antagonistic to
<br />oil and gas de\-elopmrot, whether nuclear or
<br />conwntional. in an oil ~hale arPa. then in fair-
<br />ness to all thE' policies should bE' madE' krJov,n
<br />to all,
<br />. "Dl'cisions Invoh.ing major pr ,
<br />octwE'en potential large sources
<br />~hould not be df.'('ided unilati'ral' .;-
<br />partmE'nt of government, but i..
<br />
<br />tht> subj('('t of study by a Congressional com-
<br />mittee. thi' Whiti' House D1ergy Committee,
<br />the Office of Economic Planning, thE' Federal
<br />Power Commission or another body not com-
<br />mitted 10 a particular viewpoint,"
<br />Paul ~1. Oou!::an, secretary of F.quit)' Oil Co.
<br />of Salt Lake City and an industrial parm('r in
<br />the Project Rio Blanco nmture, said the draft
<br />ff1vlronmmtal stat('ment Is factually thorough
<br />in its environmental assessmE'nts but is defi-
<br />cient in other rcs\l('cts.
<br />Dougan said th:11 "at thE' pre:<ent time an 'oil
<br />shalt' inrlw;try' doE'S not E'xi'!t." He said what
<br />does exist are field resean-h projecl.~, mostly
<br />oonductl.'d in the Piceance Crt'ek Basin, that in
<br />th(' last ,.two decad('s have failed to produce a
<br />rommercial oil shale operation."
<br />I'1t',\CT ST.\Tt:.\1t::"OT
<br />Dougan char~l-"d that the draft eIll'ironmen-
<br />t.\llmpact stat('mE'nt "takes th(' patt'OtJy inac-
<br />curale position that thE' alternative 01 nudear
<br />.!'limulation of natural gas reservoirs Is not now
<br />ronsld(,rM a \'lablE' altemati\"e" .....ht>n com-
<br />pared to its "unsupportablE' and arbitrary"
<br />projection that b)' 1985 one mUJion barrels of oil
<br />from sllalt' "ill be producE'<! per day.
<br />"It should be clearly and spedfleally pro-
<br />vitlf'd in thE' final (jraft of the statemt'flt that
<br />multiplE' de\'E'lnpment is mandatory, and pro-
<br />\.idE' that all)' fnrm of oil shale lease agreement
<br />....ilI contain a speciJIc provision to thc effect
<br />that the ]('jIs('(' agrees to the compatible dE'vel-
<br />opment of oil, natural gas and other mineral
<br />dt'poIllts on lhe {Jllblic land, If the drpartment
<br />fails to do this, it disregards Its legal duty,"
<br />Dougan said.
<br />John B. Tweedy, Iorm('r Denver la....:yE'r and
<br />now E'xecutive vice president of The Oil Shale
<br />Corporation iTOSCOl. defendl-'d the ffiviron-
<br />mt'ntal statement.
<br />'J'v.eE'dy, a former member or the govemor's
<br />sl>t'cial adviSOr)' committee on Projt'Ct Rio
<br />Blanco, told the panel that "E'nergy reserves In
<br />oil shall' in the Rio DIanl'O Unit are 100 Urnes
<br />ml.' magnitude of the gas resen'es .....hich will
<br />be t{'Sted" by ProjEoct Rio Blanco.
<br />H"-,, addt'd the only conflict that could arise
<br />in thE' develcpm('nt o( natural gas and oll shale
<br />in the reR'ion would come if It's "insl..ted the
<br />nuclear (gas stimulation) Ilrect'eds the oil,
<br />shale de\-elopmenl." He added that "('(Jewen-
<br />tional mE'an.'l of developinR gas in the Rio
<br />B1aneo Unit is not 1'10\'-. nor will it be feasible."
<br />t:xpt:nBfI<::>OT,-\I. \'t:ST{,'Rt:
<br />TOsca is one of the participants in an ex-
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<br />qy
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<br />perimental \"enture called Colony De\'elopment
<br />QperatitlJl. TII..E'cdy said acthitles at a test
<br />plant on P a I' a c hut I' Creek near RUle have
<br />d('monstrated the feasibility of a process to ex-
<br />tract oil from shale and "developE'<! satisfacto-
<br />ry solutions to environmental aOO other related
<br />prohl('J1lS."
<br />I<enneth Canfield, operations mana~r for
<br />AUantic RIchfield, another firm in\.olved in the
<br />Colony Developm('Jlt Operation, agrero that
<br />satisractory technololo' for recovering oil from
<br />shale has been developed. t
<br />HE' said his firm la\'OTS the proposffi leaslDI
<br />program. He warned that such operations
<br />should begin soon because "prolonged delay
<br />maylea\'e no alt('rnativE' but to react e\'E'ntuaJ.
<br />Iy with a crash program to de\'elop thls re-
<br />source. By their nature, crash de\'elopment
<br />programs frequently sacrifice environmental
<br />consldE'rations and regional planning to tt'Chno.
<br />logic expedit'ncy." I
<br />John S. Hutchins, manager of the Colony
<br />DevelopmentO{:N:'ration, urged reinforcement
<br />01 several sections in the final environmental
<br />statemt'Ot. He noted that watE'r quality In lhr
<br />QJlorado Rh.er s).stE'm could be improved. I
<br />The proposed oil shalE' dE'veJopmE'nt carne
<br />under attack from spokesmen for a number of
<br />environmental groups, who claimed that ,-e..
<br />st'an:h so far is Inadequate and that OthE'f
<br />)X>tential SOUf'C('S of JXl" '('r, sLlch as solar enefil
<br />gy, sh()uld be in\'estigated.
<br />'STt:ltlUZt~ TII.~ L.\~D'
<br />One speaker, Edwin J, :!'-1E'rrick, southwest-
<br />em regional executive of the National Wildlife
<br />FedE'ration, said "this infant fuel.Frankenstein
<br />beating on the laboratory door to be released
<br />cannot he freed to sterilize the land. to pollute
<br />tile air, to embalm the wilderness, 10 suck the
<br />rivcrsdry."
<br />Dr. EugE'1'le R. Weiner, ellainnan or thE
<br />Colorado Citizens for Clean Air legal and ted"
<br />nica! commltt:t'e, exprf'Ssed the organization'.
<br />cuncem Ihat "the Ilevl'lopment of oil shale il
<br />being Pl'OpOl:ed at this time without any nation
<br />all.'nergy policy having bet"n formuIatffi.
<br />"E\'en the pilot study proposed here \liD
<br />cause a s.ignificant deterioration In envitUJ.
<br />menlal quality, and this must be weidled
<br />against the bcnt'fits from additional ('Ilergy re-
<br />SOllrC'es by a...,;i~ing priorities to them In an
<br />oVi."rall national planning effort," WE'in('r said..
<br />The ht>arings will move to Ole)'E'nne and
<br />Vemal, Utah, Thursday and on 10 Grand Junc_
<br />tion and salt Lake City, Utah, FrIday,
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