From: The Daily Sentinel
Two oil shale research-and-development proposals in Colorado have moved a step forward with today’s release of a draft environmental review of them.
The Bureau of Land Management released a preliminary environmental assessment of proposals by ExxonMobil Exploration Co. and Natural Soda Holdings Inc. for research, development and demonstration leases in Rio Blanco County.
“It’s the next step in our evaluation of whether or not we issue these leases,” said BLM spokesman David Boyd.
Both ExxonMobil and Natural Soda had applied unsuccessfully for an earlier round of RD&D leases. Six were issued in 2007, five of them in Rio Blanco County and one in Utah.
Both companies have proposed in-situ projects in which kerogen would be heated in place underground to produce oil.
“RD&D leases provide the opportunity for industry to test and develop technologies to determine whether they can be viable on a commercial scale,” Kent Walter, field manager of the BLM’s White River Field Office, said in a news release. “This critical research, development and demonstration work will also help us answer important questions about the water demands and potential impacts of commercial-scale development, so that we can forge a responsible and orderly path forward if the technology proves viable.”
The environmental review’s release follows the BLM’s recent proposal to sharply reduce acreage available for potential oil shale leasing in Colorado, Wyoming and Utah. Under the proposal, it also would consider issuing only RD&D leases first, with the potential to issue commercial leases later depending on the success and impacts of initial projects.
The six existing RD&D leases are 160 acres each, with the potential to seek expansion to commercial leases covering eight square miles apiece. The new round of 160-acre RD&D leases would limit expansion to a square mile each.
ExxonMobil, operating then just as Exxon, pursued a major oil shale project in the Parachute area until announcing the project’s shutdown 30 years ago May 2, on what became known as Black Sunday. The shutdown caused thousands to lose their jobs. That project entailed mining shale and heating it on the surface.
Natural Soda already produces baking soda in Rio Blanco County by injecting hot water underground. Its proposal would involve heating and producing oil after the baking soda is removed.
A public comment deadline on the new study is June 16. The study and further information may be found athttp://www.blm.gov/co/st/en/fo/wrfo/Oil_Shale_-_Round_2.html.
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