Socioeconomic Analysis
The oil shale region of Colorado borders on areas of significant population growth.
The increase is the result of movement to the area for retirement, second homes, and work in the thriving oil and gas business, or in tourism centers like Aspen and Vail.
The emphasis of that part of the region has shifted from agriculture, mining, and petroleum to tourism and recreation.
Applicant's oil shale lease nomination is in the Piceance Basin of Colorado in an unincorporated area of Rio Blanco County.
This area has been relatively unaffected by the above changes.
Applicant's proposed lease tract and R,D & D project is in the center of the Piceance Basin near old Prototype Oil Shale Lease C-a.
The region is bounded by Rifle, Meeker and Rangely, Colorado.
There are no towns within this area so workers and contractors will commute to the job site during the test phase of the program.
A man camp is not contemplated for the test phase, but for those required to attend tests around the clock there are expected to be trailers where workers can be housed on a temporary non-routine basis.
Planning for commercial development will include the pros and cons of a new community, temporary construction worker housing and busing to and from local communities.
There are few permanent residents in the Piceance Creek Basin area.
They include ranchers and small acreage home owners.
There are no permanent residents in the area Applicant is nominating as its 160-acre test tract.
The 5120-acre expansion may encircle or be adjacent to private lands that will be bypassed by Applicant's mining operations unless appropriate agreements are reached with the mineral/surface estate owners.
The key socioeconomic benefits from the Applicant's project are
- Employment of personnel during the test and commercialization phases
- Business opportunities for local businesses to supply goods and services
- Research and development opportunities for regional educational institutions
- Increased tax revenues to local and state entities
- Contribution to the nation's need for domestic supplies of energy
The major socioeconomic impacts from the Applicant's testing phase of its project are
- The potential need for additional community services to support the employees
- Small increases in population
- Small increases in traffic on roads and highways in and around the oil shale region
- Small drain on currently limited availability of skilled workers
It is estimated that a total of 10 to 20 employees will be required during test operations.
Three shifts will be worked when required, but most employees will work during daylight hours.
During construction of the test facilities more workers will be needed, and their numbers will vary depending on the phase of construction (from 10 to 50).
Traffic will be on Piceance Creek Road to either Rifle or Meeker/Rangely via State Highways 13 and 64 respectively.
All three of these communities have the infrastructure to handle the modest increase in population resulting from the testing phase of the Applicant's project.
When the decision is made to proceed to the commercial phases of the project, Applicant will conduct a comprehensive study of the impacts and benefits in conjunction with local, regional and state officials.
Applicant's proposed commercial development is labor intensive as it involves mining and retorting.
However during the testing phases the levels of employment are low based on the small scale of the operations.
However, when the project reaches commercial scale the labor requirements will escalate and the impacts on the local communities will be significant, especially if there is more than one commercial project proceeding at the same time.
Construction requires the highest amount of manpower with levels changing often depending on the stage of construction.
The amount of labor required for the sustained operation of the plants and mines is much smaller and more predicable.
Thus the socioeconomic impacts may result in those anticipated in the last oil shale boom and bust.
Applicant's commercial project could be akin to that contemplated by the Colony Oil Shale Project near Parachute.
Battlement Mesa was built to accommodate a population increase of 25,000 people to accommodate one 50,000 barrel per day plant.
This includes the workers' families and those supporting local businesses.
Some of the impacts that may be expected from a commercial project in the area of Tract C-a include:
- Increased traffic on Piceance Creek Road requiring widening, curve smoothing and passing lanes.
- Potential direct and shorter access route to Meeker/Rangely
- Mass transit (e.g. buses) to reduce traffic, pollution and improve public safety
- Need for increased public services in remote parts of Rio Blanco County
- Increased housing requirements for workers and their families
- Potential need for a new community at White River City, Rio Blanco or elsewhere
- Potential for man-camps during construction (on-site or near developed communities)
- Requirement for additional business services in developed communities
- Pressure on scarce water supplies and potential need for reservoirs and diversion facilities
- Potential for cumulative impacts resulting from multiple energy/mining projects in the region (e.g. oil shale, sodium, oil and gas, uranium, coal, power generation) The first commercial phase - design - will not cause any socioeconomic impacts locally because a bulk of the work will be done at locations away from Rio Blanco County.
The next phase - commercial demonstration - will bring more workers, jobs, tax revenues and modest impacts.
The commercial demonstration will require construction mining and retort operating personnel.
When the decision is made to go into full commercial production the commercial demonstration module will be duplicated many times until the oil shale reserves of the tract are exhausted.
Production is expected for some 20 + years.
The socioeconomic impacts of this stage of activity will be great, but that far in the future it is difficult to gauge the true impacts.
During public meetings held by BLM in the spring of 2006, EGL personnel displayed information and answered questions from the public on its plans and technology.
The meetings were held in Grand Junction, Rifle, Meeker and Rangely, Colorado.