WSP04648

• File Number: 8220.131.J
• Description: Yellow Jacket Project
• State: CO
• Basin: Yampa/White
• Water Division: 6
• Date: 1/1/1966
• Title: Water Quality Control Study of the Yellow Jacket Project
• Water Supply Pro - Doc Type: Report/Study

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There is only one oil refinery in the area, that at Rangely. Its
1960 through-put was 120,000 barrels, less than onahalf of one percent
of the oil produced in the area. Hence, more than 99 percent of the oil
is exported outside the area--mostly to refineries at Salt Lake City,
Utah, and Sinclair, Wyoming. All the major fields in the area tie into
the double pipeline to Salt Lake City or the central Wyoming pipeline.
This reduces the probability of more refineries being built in the area
or expansion of the existing one, which had, in fact, suspended operation
in 1965.

The output of natural gas which is generally a joint product with
crude oil has varied with the production of oil, In 1960, the output
figure was 65,668,473 Mcf (thousand cubic feet), A greater amount of
this gas, however, is finding economic use. In 1952, only 2.1 percent
of the gas produced was sold, 3 percent was used to repressure oil wells,
18 percent to drive pump motors and 75 percent was vented unused into
the atmosphere. By contrast in 1960, 51 percent was sold, 33 percent
used to repressure oil wells, 13 percent used as fuel for pumping motors
and only 3 percent released into the air. This is still a smaller
utilization than of gas produced elsewhere in the state. This area
was responsible for 43.3 percent of the gas produced in the state in
1964, but only 26.4 percent of gas sales,

The second most important mining activity in this area is coal
mining, Coal mining generally has been a declining industry in recent
years. However, it is showing signs of resurgence in the study area.

Coal Production (tons)

1940
973,492

1950
998,367

1960
606,614

1963

illi

951,700

1,081,864

The value of the 1964 production was $5,495,869. The market is primarily
to public utilities with most of the coal from the area being shipped by
railroad to Denver. The domestic and commercial markets are very small.
The coal is exclusively of the bituminous and sub~bituminous variety,
with area reserves estimated at 20 billion tons, Most of the current
production is from strip mines. The construction of a large REA power-
plant at Hayden, Colorado, which was opened for operation in June 1965,
is expected to double the coal production in the area. The Chief Coal
Mine Inspector for the State of Colorado foresees a tripling of production
in the next ten years. Further in the future and further into the realm
of speculation is the possibility of construction of a slurry line to
the west coast. This would greatly expand the potential market for coal
from this area. It would also greatly increase the water requirement of
the indus try.

The third major mineral product of the area in the past few years,
also an energy mineral, has been uranium. The mining and milling operation
at Maybell, Colorado, produced about 600,000 pounds of uranium oxide in

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