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<br />\ <br /> <br />, <br /> <br />12 <br /> <br />Resources and }linimum Royalty: <br /> <br />As provided in Sec. 7 of the lease, minimum production/royalty require- <br />ments begin the sixth year of the lease at a modest level and increase <br />an additional amount each year. For a hypothetical tract ~th 2.1 <br />billion tons of recoverable 30 gallon per ton oil shale, the sixth <br />year production/royalty requirement would be 3,500 tons per day; the <br />requirement would increase by a like amount each year through the 15th <br />year when it would be 35,000 tons per day. The minimum royalty for <br />each tract will vary with the recoverable resource in proportion to <br />2.1 billion tons of oil shale.at rates in accord with lease terms. <br /> <br />I <br />II <br />II <br />I <br />! <br />I <br />II <br />I <br /> <br />Each of the proposed prototype tracts has been evaluated for total <br />recoverable oil shale resources, the results of Which appear in the <br />attached table (Page 13). These data provide the basis for computing <br />minimum production and royalty requirements as set forth in the <br />example above. <br /> <br />Preliminary Development Plans: <br /> <br />A preliminary development plan must be submitted with each bid and must be <br />1n detail comparable to the descriptions of various methods of de- <br />velopment which appear in the environmental statement and cover off-, <br />site requirements for roads, pipelines, utility corridors, and dis- <br />posal sites. Also, exploratory plans and program plans to obtain the <br />baseline data for future environmental monitoring are part of the pre- <br />liminary plan. Issuance of a lease will be dependent on an acceptable <br />preliminary plan. <br /> <br />Estimated Recoverable Oil Shale Reserves: <br /> <br />The following resource values may be altered as additional data is made <br />available. Tract C-a has the potential for both underground and surface <br />development: therefore the most dependable resource data related to re- <br />covery factors was used for establishing the data on Page 13. Tracts W-a <br />and W-b have the potential for in-situ development; however the recovery <br />estimates by this means are primarily theoretical, since recovery <br />efficiencies have not been determined by actual field operations. A <br />25% factor for inplace resources has been assumed for these calculations. <br /> <br />, <br /> <br />0<30 <br /> <br />I <br />I <br /> <br />i <br />I <br />