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<br />4028 <br /> <br />RUEDI DAM AND RESERVOIR, COLO. <br /> <br />81 <br /> <br />~ <br /> <br />The expansion of production to 15t\OOO barrels pel' day is a sig- <br />nificllnt. undertnking in terms of capital inyestment and hun~an effort. <br />Pr'odllctioll. renniJllr1 and tnlllsportation facilit.ies alone wIll cost. at <br />least $750 'million ~(6). Housing and community facilities for an <br />additional population of approximatel}' 4[,,000 persons will ve required. <br />Most. if nut ,\.11. of the phase III development will occur a.long the <br />Colorado Riyer between Rifle and De Beque and in the Parachute find <br />BOll,n Creek areas. The commullities from Glell'yood Springs to <br />Grand .Junction will slwJ'c ill the populat.ion growth. <br />The byprodllcts of shale oil production ft.'HI refining are fuel gn~St <br />ammonia, sulfur, and coke. The }ow-heatll1g-\'alue retort gases wIll <br />be lIsed to gellerate electricity and slIpply ot.her proees::i energy require- <br />ments. Someelect.ricity HIll." he genemted for local consumption in the <br />slIrrountlillg eommnniti'es. There will be no exeess €-IJergy from retort <br />gas for out.side industrial use. <br />E.xeess refinery g'nses will l,e used ns a domestic fuel for the local <br />conullunities, supplemented by IInturnl gas from nearby fields. By- <br />prorluct nmmollia, .2f,O-:30U tOllS per day, tan be marketed in the Rocb.J' <br />].[ount<1in nrea. as a fertilizer. The coke and sulfur 'will have nu local <br />nlllJ'ketnnd must he shipped outside tile area. <br />The usage of petroleum products in t.he area will grow in proportion <br />to population, a.I1(1 industrial uses of fuels, particularly dit'A~el, will <br />inel'ense grea.t1y. Howeyer, the local market still will L{~ small com- <br />pared with pro(luction, prohably le..,s than 10 percent. <br />The prineipnl sllpplie~ consulIled in shale oil prodU<..'t,ion and re- <br />fining a.re drill bits, explosives, lubricants, water-t.renting chemicals, <br />cata.Iysts, nnd misceJImH:'ollS Jllnintenance materials. EssentiaJIJ all <br />such mn.terin.ls during phase III will be mannf<tdured outside t.he area. <br />Constrnction materials sneh as steel~ cement, lumLer, and other manu- <br />fuetllred items, though l'l'quil'ell ill qualllit".;r, uh:o will largely be <br />shi pped in. <br />III SlllllJllary~ during phnse III, the productioll of shale oil will in- <br />erense to aLollt, 1;;0,000 barrels pel' day. The prodllet will Le a pa.r- <br />tially refilled uil of exceptiollal quality. 1\!ost of the oil will be mar- <br />keted on the Paeitic. Coast throug.h it single pipeline. constructed spe- <br />eifimllv for shale oil. <br />The'de\"elopment. of phase III shollld begin after a yen.r or t\\"o of <br />prototype plnnt operation, and be completed within 5 Jears 01' about <br />1D70. <br />The industrial development. will he limited to shale oil production, <br />refining~ 11ml transportation fa('ilities~ nnd essential supporting util- <br />ities. Neit.her manufactnring plants utilizing byproducts ot shale <br />nor "industry procluc.ing supplies for the shale mines and plants are <br />foreseen during this pe:l'iou. <br />A population increase of 40,000 to 45,000 over phnse II seems like- <br />lv, with the ~najol'ity li'.ing ill existing communities from Glellwooo <br />Springs to Grand.J unction. <br /> <br />Pha8e IF. 'Secondary eXpaiTt-ji l~ <br />The growth of the shale '..iUst,ry following phase III should be <br />rapid. The tecl.lIlology wil -e.J1rmly established. The demand for <br />petroleulll fuels IS expect€d to be such that rate of growth of sha.le oil <br /> <br />'i <br /> <br />t <br /> <br />x <br />~'- <br />