VERNAL — A unique project that ultimately expects to prove that oil can be economically extracted from shale rock is moving closer to its test phase.

The public comment period is complete, and following the release of an environmental assessment by the Bureau of Land Management's Washington, D.C., office, Oil Shale Exploration Co. anticipates signing a lease for 160 acres of federal land in Uintah County.

"The lease is in the system, and we believe that signing is imminent," said Amy Hansen, a consultant with Georgia-based OSEC. "After that our goal is to get 1,000 tons of shale to Calgary, Canada."

In Calgary the shale from the existing White River mine in northern Uintah County will be put through myriad analyses while tests are performed on the rock as it is processed in a pilot plant through the ATP (Alberta Taciuk Process) — the state-of-the-art retort technology approved for use in the initial run-through, Hansen said.

"Every shale property is different, so they will test it and make minor adjustments based on water weight and geological water weight," she said. "We are hoping that within six months or near that time we will ship the pilot plant to the White River mine and set up a 65-barrel-a-day pilot plant on site in Uintah County."

The BLM awarded environmental approval to three oil companies in Colorado last August, giving the green light to their plans to produce oil from shale. In Colorado, the extraction process involves heating layers of rock using electric oven-like elements, steam injection or hot natural gas.

Both the Colorado and Utah shale projects are on the BLM's "fast track" in terms of moving through red tape and bureaucracy. Utah's project is lagging a bit behind Colorado because it had an extra step to go through when more than one company bid on the lease rights. In addition, Utah's is the only mining project where the oil shale will be brought to the surface, crushed into gravel and fed into a facility known as a "retort." The retort process allows shale to be heated and converted into a petroleum product.

In both states, the mandated "research, development and demonstration" process will ensure that the projects are economically viable before any commercial production can begin. "Economics is always a concern, that is why we are going through this research development process with the BLM. ... We can take our time through the phases to look at it," Hansen said.

The phased approach allows environmental effects to be tested and assessed in a controlled setting, prior to determining if commercial operations should be authorized. A 30-day public comment on environmental concerns recently ended.

C. Stephen Allred, assistant secretary of interior, land and minerals management, is expected to sign the EA soon, said BLM environmental coordinator Stephanie Howard.