skip to main content
OSTI.GOV title logo U.S. Department of Energy
Office of Scientific and Technical Information

Title: Phase II - final report study of alternatives for future operations of the naval petroleum and oil shale reserves NOSR 1 & 3, Colorado

Abstract

The US Department of Energy (DOE) has asked Gustavson Associates, Inc. to serve as an Independent Petroleum Consultant under contract DE-AC01-96FE64202. This authorizes a study and recommendations regarding future development of Naval Petroleum Oil Shales Reserves Nos. 1 and 3 (NOSR 1 and 3) in Garfield County, Colorado (Figure 0.1). The report that follows is the Phase II Final Report for that study. Additional details are provided in the Addendum (the Phase 1 Property Description and Fact Finding Report). The key property elements that positively affect the estimated value of NOSR 1 and 3 include the following: working interest income from producing oil and gas leases, income from grazing or leasing of grazing rights, potential income from oil and gas leasing on exploratory (or nonprospective) acreage, potential value of trading surface real estate as ranch land for livestock grazing (56,577 acres). Key elements that negatively impact the estimated value include: environmental assessment costs, gas prices, operating budgets, and lease sale expenses.

Publication Date:
Research Org.:
Gustavson Associates, Inc., Boulder, CO (United States)
Sponsoring Org.:
USDOE Assistant Secretary for Fossil Energy, Washington, DC (United States)
OSTI Identifier:
471463
Report Number(s):
DOE/FE/64202-T4
ON: DE97005952; TRN: 97:003112
DOE Contract Number:
AC01-96FE64202
Resource Type:
Technical Report
Resource Relation:
Other Information: PBD: Dec 1996
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING AND POLICY; 04 OIL SHALES AND TAR SANDS; US NAVAL OIL SHALE RESERVES; ECONOMIC ANALYSIS; COLORADO; INCOME; LEASES; RECOMMENDATIONS; PRICES; ENVIRONMENT

Citation Formats

NONE. Phase II - final report study of alternatives for future operations of the naval petroleum and oil shale reserves NOSR 1 & 3, Colorado. United States: N. p., 1996. Web. doi:10.2172/471463.
Copy to clipboard
NONE. Phase II - final report study of alternatives for future operations of the naval petroleum and oil shale reserves NOSR 1 & 3, Colorado. United States. doi:10.2172/471463.
Copy to clipboard
NONE. Sun . "Phase II - final report study of alternatives for future operations of the naval petroleum and oil shale reserves NOSR 1 & 3, Colorado". United States. doi:10.2172/471463. https://www.osti.gov/servlets/purl/471463.
Copy to clipboard
@article{osti_471463,
title = {Phase II - final report study of alternatives for future operations of the naval petroleum and oil shale reserves NOSR 1 & 3, Colorado},
author = {NONE},
abstractNote = {The US Department of Energy (DOE) has asked Gustavson Associates, Inc. to serve as an Independent Petroleum Consultant under contract DE-AC01-96FE64202. This authorizes a study and recommendations regarding future development of Naval Petroleum Oil Shales Reserves Nos. 1 and 3 (NOSR 1 and 3) in Garfield County, Colorado (Figure 0.1). The report that follows is the Phase II Final Report for that study. Additional details are provided in the Addendum (the Phase 1 Property Description and Fact Finding Report). The key property elements that positively affect the estimated value of NOSR 1 and 3 include the following: working interest income from producing oil and gas leases, income from grazing or leasing of grazing rights, potential income from oil and gas leasing on exploratory (or nonprospective) acreage, potential value of trading surface real estate as ranch land for livestock grazing (56,577 acres). Key elements that negatively impact the estimated value include: environmental assessment costs, gas prices, operating budgets, and lease sale expenses.},
doi = {10.2172/471463},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Dec 01 00:00:00 EST 1996},
month = {Sun Dec 01 00:00:00 EST 1996}
}
Copy to clipboard
Technical Report:
View Technical Report (13.29 MB)
DOI:  10.2172/471463
Save / Share:
Export Metadata
Save to My Library
You must Sign In or Create an Account in order to save documents to your library.

  • The U.S. Department of Energy (DOE) has asked Gustavson Associates, Inc. to serve as an Independent Petroleum Appraiser under contract DE-AC01-96FE64202. This authorizes a study and recommendations regarding future development of Naval Petroleum Reserve No. 3 (NPR-3) in Natrona County, Wyoming. The report that follows is the Phase II Final Report for that study.

  • The US Department of Energy (DOE) has asked Gustavson Associates, Inc. to serve as an Independent Petroleum Consultant and authorized a study and recommendations regarding future development of Naval Oil Shale Reserve No. 2 (NOSR-2) in Uintah and Carbon Counties, Utah. The US owns 100% of the mineral rights and about 60% of the surface rights in NOSR-2. The Ute Indian Tribe owns the other 40% of the surface. This 88,890-acre tract was set aside as an oil shale reserve for the US Navy by an Executive Order of President Wilson in 1916. Management of NOSR-2 is the responsibility ofmore » DOE. No drilling for oil and gas has occurred on the property and no production has been established. No reserves are present, although the area is hypothesized to overlay gas resources. Mapping by the US Geological Survey and others has resulted in speculative seismic leads for structures that may or may not hold conventional oil and gas. All of the mineral rights (including oil shale) must be considered exploratory and the mineral rights must be valued accordingly. The opinion recommended to maximize value to the US is Option 4, sale of the interest of the US of all or part of NOSR-2. Evaluation of this option results in an estimated value which is more than three times greater than the next highest estimated value, for Option 2, transfer to the Department of the Interior for leasing.« less

  • The U.S. Department of Energy has asked Gustavson Associates, Inc. to serve as an Independent Petroleum Consultant under contract DE-AC01-96FE64202. This authorizes a study and recommendations regarding future development of Naval Petroleum Reserve No. 3 (NPR-3) in Natrona County, Wyoming. The report that follows is the Phase I fact-finding and property description for that study. The United States of America owns 100 percent of the mineral rights and surface rights in 9,321-acre NPR-3. This property comprises the Teapot Dome oil field and related production, processing and other facilities. Discovered in 1914, this field has 632 wells producing 1,807 barrels ofmore » oil per day. Production revenues are about $9.5 million per year. Remaining recoverable reserves are approximately 1.3 million barrels of oil. Significant plugging and abandonment (P&A) and environmental liabilities are present.« less

  • The US Department of Energy (DOE) has asked Gustavson Associates, Inc. to serve as an Independent Petroleum Consultant under contract DE-AC01-96FE64202. This authorizes a study and recommendations regarding future development of Naval Petroleum Reserve No. 2 (NPR-2) in Kern County, California. The report that follows is the Phase II Final Report for that study. Additional details are provided in the Addendum (the Phase I Property Description and Fact Finding Report). The key property elements that positively affect the estimated value of NPR-2 include the following: royalty income from producing oil and gas leases, rental income from non-producing oil and gasmore » leases, income from grazing or leasing of grazing rights, potential income from oil and gas leasing on exploratory (or nonprospective) acreage, potential value of trading surface real estate as ranch land for sheep grazing (10,044 acres), and town lots for residential or commercial development (16.7 acres). Key elements that negatively impact the estimated value include: environmental assessment costs, operating budgets, and lease sale expenses.« less

  • The objective of this study was to develop a disposal system concept for up to four leases operating simultaneously on the NOSR 1 property. Each lease would have a plant operating at a shale oil production rate of 50,000 BPD. Additional objectives included the development of capital costs, operating costs, and the necessary environmental controls for spent shale disposal. The study considered only surface disposal of the spent shale, although disposal back into the mine could be an attractive alternative. The cycle of operation for spent shale disposal developed in this study is comprised of: conveyor belt delivery of themore » spent shale to an unloading station near the disposal area; loading and hauling of the spent shale to the disposal site; compaction of spent shale; and maintenance of a drainage system for water to a catchment basin. Environmental concerns relating to air quality, water quality, and pile stability are addressed. Potential control measures emphasizing proper compaction, shaping of the pile, revegetation, and leachate/runoff management are suggested. Environmental siting considerations including physical and chemical contexts of the surroundings, biological setting, and regulatory attitudes are addressed for each site. From an environmental standpoint, the NOSR 3 and Ben Good sites are the most favorable for disposal. Unfortunately, slope steepness and inaccessibility make disposal pile operation at the NOSR 3 site virtually impossible. Consequently, this site is not included in the proposed disposal system. Designs are based on a nonhazardous waste classification for the spent shale. Capital and operating costs for preparation, disposal system operation, and environmental controls total $1.20/ton of spent shale or about $1.31/bbl of shale oil produced. 4 references, 7 figures, 13 tables.« less