Idaho Wilderness Hearings

Statement:

Mr. Gill. Thank you, Senator. I represent Wexpro Co., which is a subsidiary of Mountain Fuel Supply Co. Mountain Fuel is the gas utility that serves northern Utah and southwestern Wyoming, and is the largest supplier of energy in Utah. Mountain Fuel is also the company that thought up — was the op erator that began the overthrust group shoot that was responsible for the overthrust exploration which we now know. In that process we've been studying the Palisades area for 3 years and have done extensive geophysical and geological work in the area. And in that regard, we would endorse the answer to the statement that has been provided before. I'd like to address a little bit about the potential of the Palisades area as it affects the gas utility. First of all, last spring we began the necessary right-of-way work to bring low cost, clean natural gas 646 service to southeastern Idaho. Unfortunately we were unable to get any interstate pipeline hookup and are looking for domestic gas re serves in Idaho, so that we might move forward with that project. I heard it stated that no exploration has been conducted in the Pali sades area. There's a simple answer for that; the Sierra Club has brought suit against the Federal Government and others that has stopped that exploration. Let me tell you what our company has found about the Pali sades. Unfortunately the same forces that created those beautiful mountains, we think created an oil and gas trap, similar to what's found down in the Evanston area. We think this trap contains 1.7 trillion cubic feet of natural gas and approximately 86.8 million barrels of oil. What that means is this: If you take 375,127 dwell ings in Idaho, as per the 1980 census, the Palisades field by itself would heat all the homes in Idaho for 43 years. If oil and gas is found, according to the mineral leasing act, half of the Federal roy alty would go to the State; therefore, millions, if not billions of po tential dollars could go into the State pockets. I think one of the great misconceptions that the environmental groups would have you believe is that oil and gas exploration is a rate, ruin and ravage operation when it comes to extensive envi ronments. Frankly, that is just not true. Oil and gas industry has proved exploration can be undertaken in sensitive areas and envi ronmentally acceptable manners; you're not necessarily sacrificing habitat and scenic and wilderness values. I'd like to show you a picture of a well in Clear Creek Field. I picked this particular picture because it's on top of a mountain, it's in Carbon County, Utah; it was drilled in 1966. This picture was taken by Mr. Rodney Smith of U.S. Geological Survey. That same hilltop was again photographed in September 1974, by Mr. Paul W. Burchell, petroleum engineer with the Utah Division of Oil, Gas and Mining, shown almost complete rehabilitation. We have found that that is true. There is drilling being done by Getty and by others in the Jackson Hole area, the Sierra Club has been involved with this and given their approval; and although the well was dry, the rehabilitation is almost complete. Let me summarize it this way. As a public utility and as an ex ploration company, we need the reserves that are there. Thank you, Senator.