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Impacts of Synthetic Liquid Fuel Development Volume II - 1976

Dickson, Edward M.
Steele, Robert V.
Hughes, Evan E.
Walton, Barry L.
Zink, R. Allen
Miller, Peter D.
Ryan, John W.
Simmon, Patricia B.
Holt, Buford
White, Ronald K.
Harvey, Ernest C.
Cooper, Ronald
Phillips, David F. (Consultant)
Stoneman,Ward C. (Consultant)

Stanford Research Institute

Table of Contents 447kb

Section 1
494kb

List of Figures

xv

List of Tables

xxi

1

Prologue to Volume II

1
 

A

Introduction

1

B

Objectives

2

C

Study Approach

3

D

Basic Information

5

E

Critical Factors

5

F

Complementing Work

6

G

Applicability

6

2

Automotive Fuel Supply and Demand Forecasts

8
 

References

21

Appendix

22

3

Reference Supply Case

24
 

A

Introduction

24
 

1

Content of Reference Case

24

2

Scenarios:  Bases for Projections of Supply and Demand

25

3

Summary and Conclusions

28
Section 2
525kb

B

Projected Domestic Oil Supply and Imported Oil Requirements

30

C

Projected Resource Requirements for Production of Domestic Oil

37
 

1

Drill Rigs, Labor and Steel

37

2

Capital Investment

42

D

Projected Environmental Impacts

47
 

1

Impact Scaling Factors

48
 

a

Crude Oil Production

48

b

Crude Oil Distribution and Oil Imports

56

c

Refineries

60
Section 3
696kb

2

Environmental Impacts

65
 

a

Onshore Production

65

b

Alaska Production

70

c

Offshore Production with Attendant Transport and Refining Operations

75

Appendices

 

A

Quantities of Oil Resources and Reserves

85

B

Method for HG3 Regional Supply Projection

90

C

Trends in Past U.S. Production and Their Implications for Future Production

93
 

1

A Brief History of U.S. Oil Production and Oil Exploration

93

2

A Brief History of U.S. Crude Oil Supply and Demand

98

References

102
Section 4
749kb

4

Synthetic Liquid Fuels:  The Technology, Resource Requirements, and Pollutant Emissions

106
 

A

Introduction and Overview

106

B

Discussion of Technologies

111
 

1

Liquid Fuels from Coal

111
 

a

Extraction

111

b

Conversion

112

c

Distribution

123

2

Oil Shale

127
 

a

Extraction

127

b

Conversion

128

c

Distribution

135

C

Material and Energy Flow

138
 

1

Energy Efficiency

139
 

a

Methanol from Coal

139

b

Syncrude from Coal

142

c

Syncrude from Oil Shale

143
Section 5
709kb

2

Resource Consumption

147
 

a

Coal and Oil Shale

148

b

Water

149

c

Land

152

d

Labor

155

e

Steel

157

f

Other

158

3

Byproducts and Residuals

160
 

a

Saleable Byproducts

162

b

Solid Waste

163

c

Effluents to Water

165

d

Effluents to Air

170

e

Trace Elements

173

4

Costs and Dollar Flows

177
 

a

Investment and Operating Costs

177

b

Dollar Flow for Plant Construction and Operation

180

References

184
Section 6
711kb

5

Net Energy Analysis of Synthetic Liquid Fuels Production

187
 

A

Introduction

187

B

Methodology

191

C

Analysis of Synthetic Fuel Processes

198
 

1

Coal Liquefaction (H-Coal Process)

198

2

Methanol from Coal

200

3

Oil Shale

205

D

Coal-to-Refined Products System

207

E

Summary

211

References

214

6

Maximum Credible Implementation Scenario for Synthetic Liquid Fuels from Coal and Oil Shale

210
 

A

Introduction

216

B

Implementation Schedule

216

C

Comparison with the National Academy of Engineering Scenarios

219

D

Scenarios and Scaling Factors

221

E

Resources

227

References

229
Section 7
1058kb

7

Legal Mechanisms for Access to Coal and Oil Shale

230
 

A

Introduction:  Principles

230

B

Federal Lands

234
 

1

Licenses

242

2

Permits

244

3

Leases

247

4

Federal Requirements in Pricing

260

C

Indian Lands

260

D

Access to Oil Shale on Public Lands

265

E

Summary of Federal Oil Shale Leases

268

F

State Lands

274
 

1

Colorado

274

2

Montana

277
Section 8
799kb

3

Wyoming

278

4

West Virginia

281

G

Vetoed Strip Mine Act

282

H

Existing Environmental Regulations

294

I

State Reclamation Statues and Regulations

301

J

Other Regulations

301

8

Financing the Synthetic Liquid Fuels Industry by the U.S. Capital Markets

302
 

A

Introduction

302

B

Outlook for Total Business Fixed Investment and Other Related Macroeconomic Variables

303

C

Investment in the Energy Industry

306

D

Capital Availability in the Petroleum Industry

311

E

Conclusions

316
Section 9
650kb

Appendices

A

Projections of GNP, and Sources and Uses of Funds

318

B

Projections of Capital Investment in the Oil and Gas Industry

328

C

Projections of Cash Flow for the Petroleum and Gas Industry

333

References

341

9

Market Penetration of Synthetic Liquid Fuels--Key Role of the Decision-Making Process Leading to Deployment

342
 

A

Introduction

342

B

Synthetic Liquid Fuels and the Natural Petroleum System

342

C

Common Misconceptions About the Petroleum Industry

347

D

Example of the Decision-Making Process

349

E

Comparison of the Risks

354

F

Comparison of the Economic Risk

358

G

The Decision-Making Climate for Synthetic Liquid Fuels

362

References

363
Section 10
788kb

10

Government Policies to Encourage the Production of Synthetic Liquid Fuels

364
 

A

Introduction

364

B

Required Features of Federal Policy

365

C

Incentive Policy Options

366
 

1

Removal of Constraints

367

2

Tax Incentives

368

3

General Price Support

370

4

Special Price Supports

371

5

Government Participation

374
 

a

Government Ownership

374

b

Grants-in Ain

376

c

Loan Guarantees

377

D

Conclusions

379

References

382

11

National Economic Impacts of the Synthetic Fuels Industry

383
 

A

Introduction

383

B

Interindustry Relationships

384

C

Materials and Purchased Services Used by the Coal Industry

387
 

1

MEC Task Force Projections

387

2

Overview

393

D

Conversion Facilities

394

E

Transportation

395
 

1

Railroad Equipment

396

2

Coal Slurry Pipelines

398

F

Geographical Distribution Sectors Supplying Synthetic Liquid Fuels Industry

398
 

1

Mining and Construction Equipment

398

2

Explosives

400

3

Railroad Equipment

400

4

Steel

401

5

Summary

402

Appendix

A

Estimation of Demand for Walking Draglines

404

References

407
Section 11
937kb

12

Economic Impacts in Resource Development Regions

408
 

A

Introduction

408

B

Regional Employment Growth

410
 

1

Background Theory

410

2

Population Estimates for Coal Development

410

3

Coal-Related Development in Campbell County, Wyoming

411

4

Oil Shale Development in the Piceance Basin, Colorado

415

C

Comparison With Other Resource Regions

418
 

1

North Dakota Lignite

418

2

Appalachian Coal Development

419

3

Southern Illinois Coal Region

421

D

Overview

423

References

425

13

Comparative Environmental Effects of Coal Strip Mining

427
 

A

Introduction

427

B

Mining and Environmental Effects

430
 

1

Appalachia

430

2

Midwest and West

436

3

Summary

440

C

Reclamation Potential

441
 

1

Introduction

441

2

Appalachia

441

3

Midwest

446

4

West

446

5

Summary

450

References Cited

452

Other References

453
Section 12
1067kb

14

Oil Shale Mining and Spent Shale Disposal

455
 

A

Introduction

455

B

Oil Shale Mining

456
 

1

Underground Mining

456

2

Surface Mining

458

C

Spent Shale Disposal

460

D

Environmental Problems

462
 

1

Mining

462

2

Spent Shale Reclamation

463

References

465

15

Region Specific Biological Impacts of Resource Development

466
 

A

Powder River Basin

466

B

Piceance Basin

476

C

North Dakota Coal Fields

489

D

Illinois Coal Fields

489

E

Appalachian Coal Field

496

References

506
Section 13
726kb

16

Air Pollution Control for Synthetic Liquid Fuel Plants

507
 

A

Introduction

507

B

Synthetic Liquid Fuel Plants:  Processes and Emissions of Air Pollutants

512
 

1

Syncrude from Oil Shale

512
 

a

Control of Emissions

515

b

Options for Further Control

521

c

Other Processes

522

2

Syncrude from Coal

522
 

a

Control of Emissions

522

b

Options for Further Control

526

c

Other Processes

527

3

Methanol from Coal

528
 

a

Control of Emissions

529

b

Options for Further Control

532

4

Summary

532

C

Atmospheric Dispersion Modeling

532
 

1

General Principles

533

2

Modeling a TOSCO II Oil Shale Plant

536
Section 14
614kb
 

a

Characterization of Emission Source

536

b

Characterization of Oil Shale Region

536

c

Results of Dispersion and Site Modeling

540

3

Modeling an H-Coal Syncrude Plant

549
 

a

Characterization of Emission Source

550

b

Characterization of Powder River Coal Region

550

c

Results of Dispersion Modeling

554

4

Effects of Multiple Plants in a Region

560

5

Sensitivity Analysis

566

D

Control Requirements

575
 

1

Conclusions

579

2

Recommendations

581

References

584
Section 15
815kb

17

Secondary Environmental Impacts From Urbanization

586
 

A

Sources of Secondary Environmental Impacts

586

B

Urban Growth:  Coal and Oil Shale Regions of the West

586

C

Quantifiable Impacts

587
 

1

Scaling Factors

587

2

Water-Related Impacts

591

3

Air Quality Impacts

597

D

Nonquantifiable Impacts

597

E

Summary

602

References

604

18

Health Issues in Synthetic Liquid Fuels Development

606
 

A

Introduction

606

B

Effects of Industrial Development in New Areas

606

C

End Use Impacts

608

D

Localized and Occupational Health Problems

609

E

Research Needs

611

References

613

19

Water Availability in the Western United States

614
 

A

Introduction

614

B

Water Rights and the Federal Government

616
 

1

Scope of Federal Water Rights

616

2

Federal Power over Navigable Streams

618

3

Federal Proprietary Water Rights

619

4

Summary of Federal Water Power

622

5

Federal Reserved Land in the Oil Shale Region

622

6

Implications of the Federal Power

623

7

Attempts at Resolution

624
Section 16
890kb

8

The Mexican Treaty of 1944

629

9

The Federal Government as a Disburser of Water

633

10

Indian Claims to Western Water

639
 

a

The Problem

639

b

Theory of Indian Water Rights

641

c

Measurement of Indian Water Rights

644

d

Relation of Indian Water Rights to Water Rights Administered Under State Law

645

e

Scope of the Problem

646

f

Conclusions

647

C

Interstate Allocation of Water

649

D

State Systems for Water Allocation in the West

658
 

1

General Systems

658

2

The Need for Certainty of Water Rights

660

3

Transfer of Water Rights

663

4

Interbasin Transfers

665

5

Conditional Decrees

666

6

Public Interest in Water

667

7

Pricing of Water

670
Section 17
934kb

8

Ground Water

672

9

State Action Generally

676

E

Water Requirements for Coal and Oil Shale Development

677

F

Coal Transport:  Pipeline versus Rail

696
 

1

Coal Slurry Pipelines

697

2

Railroad Transport of Coal

699

3

Critical Factors

700

4

Eminent Domain for Pipeline Right-of-Way

703

5

Railroad Opposition to Pipelines

704

6

Pipeline Regulation

706

7

Pipeline Impact on Railroads

706

8

Proposed Resolution

707

G

Summary

712
Section 18
744kb

References

718

20

Water Availability in the Eastern United States

730
 

A

Introduction

730

B

Water Requirements

731

C

Water Supply

736
 

1

Illinois

736

2

Kentucky

737

3

West Virginia

739

D

Legal Aspects of Water Availability

740
 

1

Riparian Law

740

2

Position of the States

744

E

Federal Programs that Relate to Water Resource Development in the East

753

References

758
Section 19
863kb

21

The Impact of Industrial Growth on Rural Society

759
 

A

Introduction

759

B

Interest Groups

763
 

1

Local Government

763

2

State Government

766

3

Federal Government

767

4

Ranchers and Farmers

770

5

Workers and Other Residents

772

6

Businessmen

772

7

New Employees and Other Newcomers

773

8

The Energy Industrialists

774

9

Environmentalists

775

10

Energy Consumers

777

C

Dynamics of Urban Growth Related to Public Expenditure

777
 

1

Stages of Urban Growth

778

2

Population Growth and Per Capita Costs

783

3

Growth and Revenue

786

4

Tax Lag

789

D

Policy Options for Controlled Growth Rates

792
 

1

Nonfiscal Options

792

2

Fiscal Options

795

References

797
Section 20
1168kb

22

Population Growth Constrained Synthetic Liquid Fuel Implementation Scenarios

800

23

Comparative Impacts of Controlled and Uncontrolled Urbanization

813
 

A

Introduction

813

B

Impact of the Maximum Credible Level of Synthetic Fuel Production

814

C

Development Constrained by a 5 Percent Annual Growth Rate

817

D

A 5 Percent Growth Rate in Campbell County

825

E

The Maximum Credible Level of Oil-shale Mining and Retorting Piceance Basin

830

F

Oil Shale Development by a 5 Percent Annual Growth Rate--Piceance Basin

830

G

Implications for Appalachia

834

H

Implications for Southern Illinois

836

I

Summary

837

References

840