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1 I. BACKGROUND AND SUMMARY In recognition of the vast oil shale resources in the states of Colorado, Utah and Wyoming and the potential they offer to help alleviate a growing energy problem, the Secretary of the Interior in 1971 announced plans for a Federal Oil Shale Leasing Program. As stated in the final environmental statement, the goal of the leasing program was to: ' "... provide a new source of energy for the nation by stimulating the timely development of commercial oil shale technology by pri- vate enterprise, and to do so in a manner that will assure the minimum possible impact on the present environment while providing for future restoration of the immediate and surrounding area." In February of 1974, Ashland 011, Inc. (Ashland) and three other companies (Atlantic Richfield Company, The 011 Shale Corporation, and Shell Oil Company) submitted the highest bid ($117,798,000.20) for the second of two Colorado 011 Shale Lease Tracts offered as part of the U.S. Department of Interior's Prototype Federal 011 Shale Leasing Program. The Prototype Leasing Program is under the direction of the Area Oil Shale Supervisor of the U.S.G.S. Conservation Division, located in Grand Junction, Colorado. Federal Oil Shale Lease Tract C-b (Figure 1) is located three miles south of the Piceance Creek Road at the PL Ranch turnoff, which is ' 20 miles west of the Rio Blanco Store (half-way between Rifle and Meeker) on Colorado 13 and 789. In December, 1975, Atlantic Richfield Company and The Oil Shale Corporation withdrew from this joint venture. On November 2, 1976, Shell Oil Company announced its withdrawal from the C-b 011 Shale Project. On November 3, 1976, Ashland Oil, Inc. announced the formation of a new joint 1 venture with Occidental Oil Shale, Inc. (Oxy) to proceed with development of Tract C-b. ' As a result of these withdrawals, Ashland acquired a sole interest in Tract C-b. In this new joint C-b Shale 011 Venture, Ashland granted Oxy a 50% interest in the C-b lease and tract in exchange for the right to use the Oxy Modified In Situ Process, which Oxy has developed and patented for the recovery of oil from shale. The Oil Shale Lease requires that a Preliminary Development Plan, an Exploration Plan and a Detailed Development Plan be submitted to the Federal Government for approval before full-scale mining or plant construc- tion can begin on the C-b Tract. t All of these Plans must comply with detailed Environmental Stipu- lations which are part of the Lease. These Environmental Stipulations re- quire the C-b lessees to conduct two years of environmental baseline studies which include plant ecology, animal ecology, aquatic ecology, water quality and air quality. Plans to control erosion and revegetate disturbed areas are required to be developed. A Fish and Wildlife Management Plan must also be submitted and approved. The Environmental Stipulations further require that, after mining and processing activities are completed, the ' -1-