From Deseret News archives:

Lawmakers visit an oil-shale area of Utah

Published: Thursday, Aug. 10, 2006 8:50 p.m. MDT
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The lack of refinery capacity in Salt Lake City coupled with the transportation issue will both have to be overcome, said Runquist.

"We will have 38 trucks a day coming here picking up oil," he told lawmakers. "Salt Lake is going to be filled with oil. There's not enough refineries. We are going to have to go into other states (to refine the oil)."

"It would be very efficient to have a refinery here," he added. But that doesn't appear likely to happen, due to EPA permitting, costs and time factors, according to industry officials.

The impact on the county would be millions of dollars needed to improve and expand roadways and provide new infrastructure with more water piped to remote areas. Local leaders are hesitant to impose further fees on the already heavily taxed and assessed oil and gas industry, said Uintah County Commissioner Mike McKee.

"We realize in local government we have a responsibility," said McKee. "We may need to look at industry to help with these roads. We do believe things are different here as far as industry impacts compared to other areas of the state."

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Ron Bigelow, R-West Valley City, co-chairman of the House Appropriation Committee, said the trip to the Uinta Basin was "very beneficial," and would help legislators vote with a greater appreciation of the issues.

"It may or may not change our vote, but when we make that decision, it isn't going to be just a political decision or based on public pressure," said Bigelow.

McKee said additional financial aid to the counties due to the unprecedented energy development calls for a new look at distribution of the oil and gas severance-tax revenue to the point of impact and perhaps revamping the allocation of mineral-lease revenue through the Community Impact Board.

Brad Johnson, R-Aurora, comes from Carbon County coal country and knows firsthand about the high cost of energy development. He said he felt the trip to the Basin will change some minds when it comes to loosening up more state funding for the area. "We're probably moving in the right direction to convince our colleagues," he said.

Curtis Oda, R-Centerville, said the dialogue that was opened with local leaders was the highlight of the visit, but he felt that funding alternatives should be considered to put more of the burden on those who benefit from the services.


E-mail: lezleewhiting@hotmail.com

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Lezlee E. Whiting, Uinta Basin Standard

Byron Merrell, with back to camera, gives Utah legislators and their spouses an overview on the process of turning shale into oil at a retort in Uintah County.

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