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<br />s6i02"7 <br /> <br />RUED! DAM AND RESERVOIR, COLO. <br /> <br />el..'op.omien]]y tl'llIlSpOI't.ed to market in California .by ~a..y. of COIUlec-" <br />~i()ns t.o iLl.l existing pipeline (7). Other crude OlIYlpehlle sy~te.ny~ <br />]11 the nrpa I1lso could be used to transport shale 011 to refineries IIL <br />Colorado, Ut.ah, llHd. 'Vyoll1ing-. These (>,xisting pipelines !lOW con- <br />vey about. W.'>,OOO barrels per day of pet,roleum and at maxlInum e,,- <br />pacit,y can mo\"e 300.000 harrels per day. It Seems reasanable that <br />at least 25,000 baz'rels per day of carrying capacity ean be allocated <br />to shale oil when the time arrives. <br />It. is t.hought thltt the phase II plallt(S) wiH not incJude shale oil <br />refinillf' fa,ciEt.les except. lor a. mea.ns. of redu<:.m~. the pour pOInt and <br />viscosity of tlH~ crude oil tfJ meet pip,eJine specitirat.ion~. The !)l'OC- <br />eSSes b,: which shale. oil will he refined n..lready fire in commercia use, <br />and ne~d no demonstration such as is the case for mining a.nd retort- <br />ing. Furthermorel t.lH~ investment for refining facilit,ies is large, <br />alKmt e,\u,d to that for oil production. It is probable that the ult.i- <br />mate relining of t.he produd of phase II will be at t"xisting refineries <br />in the llH\.rket a rea" <br />Other supportiug facilities of the prototype plaut.(s) also will he <br />kept to a. minim 11m. Electric power generation u~illg: byproduct gases <br />win not, be a part, of the Iiz'5t pl:tut. or plants. Instead. elect.rieitf will <br />be purdHl.sed fl"om puhlic utilit.ies snl"yillg the urea. <br />The existing locld labor supply will be. utilized to the mn..ximum e::r- <br />tent. It is estimated t.hat <[ualified personnel to t.he extent of about <br />one-half of the- staff can be employe-d locally. Super'visur.\" personnel, <br />technieia.ns, fin(l certnin skilled operntorR and eraftsmen will need to be <br />brought in, but. essentiall" nil can be housed in t.he ton"ns and com- <br />munIties bef.we.en Glellwood Springs !lntl Grand .Junction. <br />III sUlIllllary, phase II. the prototype plant(s),locatNl in t.he Grand <br />Va.lley-De Beque :lI'ea of western Colorado, will produce about. 25,000 <br />balTels per day of el'Ude shale oil. We expect this development to <br /><>cell!" betweell ID60 :lnd W(;o. The cl'Uoe oil will be moved through <br />existing pij)elille systems to refineries in logicn.I market areaF'. Local <br />labor Stipp yellll be llsed for n Ia l"ge pen'entage of t,he stuff. Exist.ing <br />communities lllld supporting facilities will meet the needs of the pro- <br />totype phase. <br /> <br />Pha.~e III. Primary e:9}(W!~ion <br />Afte,' sufficient operation of the prototype 111ll1lllg and retorting <br />units to est.ahlish t.he S<HllHiness: of the methods :111d to bring about the <br />impro\"ement~ which are certa.in to result, shale oil production can be <br />expanded 'With confidence and at minimnm eost. Again transporta- <br />tion of the oil to market. wiII he t.he. "ontrolling factor. The size of the <br />primary expansion of the industry is likdy to be the t'llpacity of <br />smn'}lest economic shale oil pipeline to the Pacific Coast, which we <br />estimate will be about 150,000 barrels per day. Although larger quall- <br />tities of oil may be pipelined at a lower cost per hurrel, .it, is unlikely <br />that a. larger line would be laid at this st.age of development. <br />Severa.l mines. retorting plants. and one or more l'cfinel"i(~s will be <br />required for phase III. The plllleipal product will be a high-'1"ality, <br />pa.rt.ialJ,v refilled shale oil. needinO" minimum nddit.ional reli.ning. The <br />a.vailability of low.cost byprodl7ct fuel gas from r(~torting makes it. <br />more economical to retine the .<:;.llll]e oil nt the site of production rather <br />than a~. exist.ing l'etinl'-l'ies in the market area. <br /> <br />, <br /> <br />". I <br />