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<br />Var;ed interests clash at 0;' sha'e hearings <br /> <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- <br /> <br />.. <br /> <br />~~ <br />qy <br /> <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, <br />