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					                                                                                                                   National Oil Shale

                                      OIL SHALE UPDATE                                                                Association

                                                                                                                       Volume 1— Issue 3
                                                                                                                        November 2008

28th Annual Oil Shale Symposium                                                                                  Inside this issue:

The 28th Oil Shale Symposium          socioeconomic needs, and cost.         Dr. Foster Wade, Deputy
hosted by the Colorado School                                                Assistant Secretary for the U.S.    CO2 Sequestration/ 2
                                      The governor urged the partici-
of Mines in Golden, Colorado                                                 Department of the Interior          carbon management
                                      pants to “Think Bigger and
this October was very success-                                               rounded out the session. He
                                      Bolder”. He applauded the ef-
ful judged by the number of                                                  described the status of the oil
                                      forts of two Utah firms Red Leaf
attendees and the response to                                                shale activities being undertaken   OSEC Update                2
                                      and OSEC and urged support for
questions by those that at-                                                  by the Bureau of Land Manage-
tended. Participants from some        USTAR.
15 international countries and 28
states made up the over 350 that                                                                                 Western Energy             3
                                      Harris Sherman, the Director
attended three days of technical                                             Dr. Wade gave an update on the      Corridor Initiative
                                      of Natural Resources for the
and policy sessions.                                                         Proposed Oil Shale and Tar
                                      State of Colorado was the next
                                                                             Sands Final Programmatic Envi-
                                      presenter. He gave the views of
                                                                             ronmental Impact Statement          Colorado water             3
                                      Governor Ritter which empha-
OPENING PLENARY                       sized caution in the development       issued in September 2008.           supply study
Governor John Huntsman of             of oil shale in his state. Mr.
Utah was the keynote speaker.         Sherman stressed the need to
                                                                             He further gave the status of       Oil Shale Leasing          3
He emphasized the importance          see the results of oil shale re-
                                                                             development of proposed regu-
of oil shale in Utah in a “complex    search and development before
                                                                             lations to set out policies and
                                                                                                                 PEIS and Regula-
mix of energy sources”, and the       moving ahead with commercial                                               tions
                                                                             procedures for the implementa-
need for liquid fuels in our soci-    development.       He indicated
                                                                             tion of a commercial leasing
ety. He related the need for          there had been no progress on
“clean oil shale development”         the five BLM R,D&D leases, and
                                                                             program for oil shale. Draft        Innovative technolo- 4
                                                                             regulations are currently under     gies and Ideas
that included a diversified portfo-   that development should not go
                                                                             review. He said he believed
lio of affordability, independence    ahead until we have all the an-
                                                                             developers needed to have the
and sustainability.                   swers (others disputed this).          regulations so they could make      NOSA Information           4
                                       Mr Sherman’s address then             informed decisions about pro-
                                      focused upon the challenges            ceeding with R,D&D projects.
Within the realm of sustainability
                                      facing oil shale development in
Governor Huntsman stressed
                                      Colorado, including water sup-
the need for study of the level of
                                      ply, water quality, wildlife issues,   Pending the outcome of congres-
land use, water usage, air emis-
                                      energy requirements, cumulative        sional action, the regulations      Special points of interest:
sions, carbon capture and se-
                                      impacts, and community chal-           should be issued very soon,
questration, infrastructure and                                                                                     Tony Dammer retires
                                      lenges.                                according to Dr. Wade.
                                                                                                                      from DOE and given
                                                                                                                      Spent Shaler Award along
International Oil Shale Projects                                                                                      with 11-others at 28th Oil
                                                                                                                      Shale Symposium
The Oil Shale Symposium highlighted oil shale projects around                                                       Final oil shale leasing regu-
the world. Significant progress was reported in China, Estonia,                                                       lations still pending
Brazil, Australia, Morocco and Jordan.    Many other countries
were represented at the conference indicating the increasing in-                                                    NOSA holds annual meet-
ternational interest in oil shale.                                                                                    ing and celebrates first
                                                                                                                      successful year of opera-
Of particular interest is the ongoing progress in Estonia where                                                       tion
“Eesti Energia (EE) is the leading energy utility in the Baltic
                                                                                                                    Oil Shale Symposium
States as well as the biggest oil shale utilizing company world-
wide.” “Most of the oil shale mined in Estonia today is utilized as                                                   planned for Estonia in June
a feedstock for the production of electricity. Approximately 20%                                                      2009—Pg 4
of the oil shale is used for shale oil production.” “The Narva Oil
Plant operates two unique solid heat carrier installations—the
only functioning plants of their kind in the world.”
Page 2                                    OIL SHALE UPDATE

         Carbon Management and CO2 Sequestration
          Alan Burnham of Ameri-           The presentation then went       Kevin     Bacon     of  SI-
         can Oil Shale LLC (AMSO)          into the calculation of avail-   International presented a
         presented a paper titled CO2      able porosity in retorted        paper Oil Shale Sourced
         Sequestration in Spent Oil        insitu oil shale retorts. It     CO2 Sequestration Options
         Shale Retorts at the 28th         concluded that for a 27 gal/     in the Uinta & Piceance Ba-
         Oil Shale Symposium in            ton oil shale carbonate min-     sins—Utah and Colorado.
         Golden, CO.                       eralization would take about
                                           half of the available poros-     The presentation outlines a
         The paper indicated the           ity.                             data base that compiled
         three possible ways of re-                                         data from 23,000 oil and
         ducing CO2 emissions for          Thus all of the produced         gas wells. From these data
         insitu oil shale projects.        CO2 could be disposed of in      a suit of maps was prepared
          Disposal in deep geo-          a spent insitu oil shale re-     that identify basin wide
              logic formations             tort.                            geologic formations most
                                                                            suitable for CO2 sequestra-
          Sale for enhanced oil
                                           According to Dr Burnham          tion.
                                           there is work to be done to
          Mineralization in spent        confirm these initial find-      This work is a preliminary
              retorts                      ings.                            assessment of the viability
                                            Determine whether             of sequestration of CO2 in
         The presentation then fo-                                          the formations underlying
                                                thermodynamic       and
         cused on the last of the                                           oil shales in Colorado and
                                                kinetic conditions make
         three options, and indicated                                       Utah. The work focused on
                                                CO2 mineralization in
         that spent retorts might be                                        the area surrounding the
                                                spent retorts a viable
         able to store all the CO2                                          White River oil shale mine
         produced from insitu retort-                                       in Utah.
         ing, because                       Field test opportunities
                                                exist in late 2010 (end
          There is enough poros-                                          And the work was offered
                                                of AMSO pilot test) and
              ity                                                           as a guide for application to
                                                2014 (end of AMSO
          There are brines avail-                                         other geologic formations
                                                semi-works test)
              able in the area from                                         for future geosequestration
                                            AMSO will examine the         projects related to oil shale,
              natural gas wells and
                                                availability of nearby      and other industries that
              onsite    aquifers—one
                                                markets for the use of      produce CO2 such as refin-
              might      concentrate
                                                CO2—EOR                     eries and thermo-electric
              them with distillation or
              ROM                           If neither of these op-       power plants near the Unita
                                                tions appear viable,        and Piceance Basins of
          High residual tempera-                                          Colorado and Utah.
                                                seek a deep injection
              tures will enhance min-
                                                sequestration option.
              eralization kinetics


         Oil Shale Exploration Company (OSEC) Update
         The following are excepts        The Petrosix process has          hour and produces over
         from the OSEC publication        been under development            3,800 barrels per day of
         American Energy Independ-        since the 1950’s and is one       shale oil. Oil shale from the
         ence Through Global Inno-        of the few retorting proc-        White River Mine, located in
         vation.                          esses in the world that can       Northeast Utah, was tested
                                          show significant production       during the mid 1980’s using
         “After careful study, OSEC       of shale oil and effective on-    the Petrosix process in Bra-
         currently intends to use the     stream factors. The world’s       zil. The test results were
         Petrosix Process (a pat-         largest operational surface       positive.”
         ented retort process) as the     oil shale pyrolysis reactor is
         technology to process the        the Petrosix thirty-six foot      Dan Elcans of OSEC states,
         mined oil shale into shale oil   vertical shaft kiln which is      “The Petrosix retort technol-
         at its Utah properties.          located in Sao Mateus, Bra-       ogy is owned by Petrobras
                                          zil.  This retort processes       and has been operational in
                                          260 tons of oil shale per         Brazil since 1992.”
                                      Volume 1— Issue 3                                                                     Page 3

  Colorado Water District issues water study
The Colorado Water Conserva-          Due to the large potential water    Indirect oil shale industry related
tion District has recently issued     demands for oil shale, it became    population increase for the maxi-
for comment a report titled           the focus of the report.            mum case was estimated to be
Energy Development Water                                                  94,200. That equates to an addi-
                                      Assumed production levels           tional estimated 21,100 acre-ft/yr
Needs Assessment (Phase I Re-
                                      ranged from zero (2007-2017),       totaling 133,725 acre-ft/yr of water
port). URS Corporation pre-
                                      zero to 550,000 b/d (2018-2035),    demand for a 1.55 million b/d shale
pared the report for the District
                                      and from zero to 1.55 million b/d   oil industry.
with the assistance of an advisory
                                      (2035-2050) with a mix of sur-
group from industry, government                                           The conclusions reached in the
and private citizens. The report      face and insitu retorting.          study on oil shale are as follows:
covers the needs for water in         Direct water consumption was
North Western Colorado                assumed to be 1.5 and 2.9 bar-         Great uncertainty and chal-
                                                                               lenge if commercial oil shale
through 2050 for natural gas,         rels of water per barrel of shale
                                                                               industry emerges
coal, uranium, oil shale and elec-    oil produced respectively for
tric power generation.        The     insitu and surface retorting.          On the high end (1.5 million      White River in Rio Blanco County
study estimated the direct de-                                                 b/d) oil shale water demand
                                      Total direct water demand
mands as well as the water re-                                                 could exceed available com-
                                      therefore equates to a maximum
quirements for communities.                                                    pact water
                                      of 112,625 acre-ft/year for the
Phase II will estimate water avail-
                                      maximum case described above.          Non compact sources of
                                                                               water will be investigated in
                                                                               Phase II (e.g. waste waters)
Western Energy Corridor Initiative
                                                                          labor and other services as a
The Western Energy Corridor,          ability, providing a strategic      result of this development.
which extends from Alaska             source of energy, including
through western Canada and            liquids fuels and other products    Therefore, this initiative is fo-
the United States, contains           far into the future.                cused upon an effort to coordi-
some of the world’s richest                                               nate, integrate, and organize
deposits of hydrocarbons and          Concurrent development of           the scientific and engineering
energy minerals, including tril-      unconventional fuels and other      efforts required to conclusively
lions of barrels of oil equivalent    energy and mineral resources        evaluate the potential impacts
in place (BOE) of conventional        will create increasing competi-     of this potentially large develop-
oil, natural gas, coal, oil shale,    tion for limited resources of       ment activity.
oil sands, heavy oil and ura-         water, and impacts to air, habi-
nium.      Development of the         tat, and wildlife in the region.    Entities from government, in-
world-class unconventional            Local communities, infrastruc-      dustry, national laboratories
hydrocarbon resources within          tures, and economies will face      and educational institutions are
this corridor, could help allevi-     increasing demand for roads,        investigating how to proceed
ate U.S. energy supply vulner-        electricity, law enforcement,       with this initiative.

Programmatic EIS and Regulations
for Oil Shale Leasing
 The Proposed Oil Shale and           acres of these designated           from the public by BLM . As
Tar Sands Programmatic                lands are in Wyoming,               of the writing of this report
Environmental      Impact             631,000 acres in Utah, and          final regulations had not
Statement was issued in               360,000 acres in Colorado.          been issued.
final form in September               “Additional NEPA Analyses
2008. BLM selected Alter-             will be required before             A Congressional moratorium
native B as the Proposed              leases will be issued for           prohibiting BLM from com-
Plan Amendment. Alterna-              commercial development.”            peting the PEIS and regula-
tive B makes 1,991,222                                                    tions was allowed to expire
acres of oil shale lands              Draft regulations to estab-         September 30, 2008. No
available for commercial              lish a commercial oil shale         other Congressional action
leasing in Colorado, Utah             leasing program were is-            has been taken to date.
and Wyoming. One million              sued and comments sought
                    National Oil Shale
                                                                             NOSA Celebrated One Year Anniversary
                                                                            The mission of the National Oil Shale Association
    Glenn Vawter, Executive Director                                          (NOSA) is to educate the public about oil shale.
     National Oil Shale Association                                         NOSA is a not-for-profit 501(c)(6) corporation.
            P.O. Box 3080                                                   The Association was formed in the 1970’s when it ac-
                                                                              tively engaged in oil shale education.
     Glenwood Springs, CO 81601
         Phone: 970-389-0879                                                Now NOSA has been reinstated in response to a re-
                                                                              newed interest in oil shale. The organizers of NOSA
          Fax: 970-945-2423                                                   have extensive experience in oil shale and energy de-                                                   velopment.                                               There are two classes of membership: Sustaining and
                                                                              Associate Members. Sustaining Members are profit
              Gary Aho, Chairman                                              making firms and Associate Members are individuals
                                                                              and not-for-profit groups.
                                                                            NOSA’s Web Site at provides
                                                                              copies of the Bylaws and a membership application

                                                                        Estonia Announces International Oil Shale Symposium
                                                                                                Tallinn, Estonia—June 8/10, 2009
                                                                                    In association with the Colorado School of Mines

                                                                        The information presented in this document has been prepared by the staff of NOSA and is intended
                                                                        to give a snapshot of the status of oil shale technology and projects, and is not endorsed by the
                                                                        principals of those technologies or projects. NOSA has drawn upon publically available information.
            Unocal Oil Shale Plant circa 1982

Innovative Technologies and Ideas
A partial list of projects receiving                                              Monarch Mining
attention during this period                                                       Surface retorting process using
                                         In-situ Electrofrac process
follows:                                                                          proven mining methods and
                                        under development with field
                                                                                  surface retort. Work conducted
Shell Mahogany Project                  tests planned in the future.
                                                                                  at Idaho National Laboratory.
  Electric heated in-situ process        Raytheon/Schlumberger
pilot tested in the field. Freeze                                                 University of North Dakota
                                          Microwave in-situ technology
wall test in progress on private                                                  Process uses water and ethyl alco-
                                        tested at laboratory scale with
land.                                                                             hol in a surface reactor to recover
                                        field tests in the planning stage.        shale oil.
                                        EcoShale                                  CRE Energy
  CO2 injected in-situ process
                                          Modified insitu retorting proc-         Process uses a rotary kiln fired
planned for testing at its RD&D
                                        ess being tested in Utah                  with hydrogen to reduce CO2
lease in Colorado.
                                          Shale Technology Interna-               emissions.
                                        tional                                    QER Australia
 Indirect heated in-situ process
                                          Paraho surface retorting tech-          Surface mine and retort evaluating
with a unique ground water
                                        nology with pilot plant in Colo-          future commercialization approach
protection strategy planned for
testing at its RD&D lease in            rado.                                     at Stuart plant near Gladstone.
Colorado.                               Independent Energy Part-
                                        Geothermic fuel cell process              For more information see links
 Surface retorting and under-
                                        with work being conducted at              page on
ground mining project in Utah
with mine opening planned in            PNNL.                                     and individual project web sites.
the near term. See more infor-          PyroPhase
mation on page 2.                        Radio frequency insitu process

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