Oil Shale Development Could Adversely Impact Water Resources, but the Magnitude of These Impacts Is Unknown

Oil shale development could have significant impacts on the quality and  quantity of surface and groundwater resources, but the magnitude of these  impacts is unknown because some technologies have yet to be  commercially proven, the size of a future oil shale industry is uncertain,  and knowledge of current water conditions and groundwater flow is  limited. According to these experts, in the  absence of effective mitigation measures, impacts from oil shale  development to water resources could result from disturbing the ground  surface during the construction of roads and production facilities,  withdrawing water from streams and aquifers for oil shale operations,  underground mining and extraction, and discharging waste waters from oil  shale operations. Based on our review of available information  for the life cycle of oil shale production, existing estimates suggest that  from about 1 to 12 barrels of water could be needed for each barrel of oil  produced from in-situ operations, with an average of about 5 barrels. About 2 to 4 barrels of water could be needed for each barrel of oil  produced from mining operations with a surface retort. Power generation. Estimates of Water Needs for In-Situ Development Vary Significantly

Based on studies that we reviewed, the total amount of water needed for  in-situ oil shale operations could vary widely, from about 1 to 12 barrels of  water per barrel of oil produced over the entire life cycle of oil shale  operations. Water Is Likely to Be Available Initially from Local Sources, but the Size of an Oil Shale Industry May Eventually Be Limited by Water Availability

Water is likely to be available for the initial development of an oil shale  industry, but the eventual size of the industry may be limited by the  availability of water and demands for water to meet other needs. Substantial population growth and its correlative demand for  water are expected in the oil shale regions of Colorado and Utah. Colorado’s and Utah’s obligations under interstate compacts could further  reduce the amount of water available for development. In addition, DOE and Interior officials noted that they  seldom formally share the information on their water-related research  with each other. DOE Funds Research on Water Rights, Water Needs, and the Impacts of Oil Shale Development on Water Resources

DOE has sponsored most of the oil shale research that involves water- related issues. Of the 18 officials  and experts we contacted, 17 noted that there are insufficient data to  understand the current baseline conditions of water resources in the  Piceance and Uintah Basins. Specifically, the Secretary should direct the appropriate managers in the  Bureau of Land Management and the U.S. Geological Survey to  1.  establish comprehensive baseline conditions for groundwater and  surface water quality, including their chemistry, and quantity in the  Piceance and Uintah Basins to aid in the future monitoring of impacts  from oil shale development in the Green River Formation; 2.  model regional groundwater movement and the interaction between  groundwater and surface water, in light of aquifer properties and the  age of groundwater, so as to help in understanding the transport of  possible contaminants derived from the development of oil shale; and 3.  coordinate with the Department of Energy and state agencies with  regulatory authority over water resources in implementing these  recommendations, and to provide a mechanism for water-related  research collaboration and sharing of results. To determine the extent to which water is likely to be available for  commercial oil shale development and its source, we compared the total  needs of an oil shale industry of various sizes to the amount of surface  water and groundwater that the states of Colorado and Utah estimate to be  physically and legally available, in light of future municipal and industrial  demand. To identify federally funded research efforts to address the impacts of  commercial oil shale development on water resources, we interviewed  officials and reviewed information from offices or agencies within DOE  and the Department of the Interior (Interior). These discussions involved officials with  all the federal offices either sponsoring or performing water-related oil  shale research and state agencies involved in regulating water resources.
Why GAO Did This Study

Oil shale deposits in Colorado, Utah, and Wyoming are estimated to contain up to 3 trillion barrels of oil--or an amount equal to the world's proven oil reserves. About 72 percent of this oil shale is located beneath federal lands, making the federal government a key player in its potential development. Extracting this oil is expected to require substantial amounts of water and could impact groundwater and surface water. GAO was asked to report on (1) what is known about the potential impacts of oil shale development on surface water and groundwater, (2) what is known about the amount of water that may be needed for commercial oil shale development, (3) the extent to which water will likely be available for commercial oil shale development and its source, and (4) federal research efforts to address impacts to water resources from commercial oil shale development. GAO examined environmental impacts and water needs studies and talked to Department of Energy (DOE), Department of the Interior (Interior), and industry officials.

What GAO Found

Oil shale development could have significant impacts on the quality and quantity of water resources, but the magnitude of these impacts is unknown because technologies are years from being commercially proven, the size of a future oil shale industry is uncertain, and knowledge of current water conditions and groundwater flow is limited. In the absence of effective mitigation measures, water resources could be impacted from ground disturbances caused by the construction of roads and production facilities; withdrawing water from streams and aquifers for oil shale operations, underground mining and extraction; and discharging waters produced from or used in operations. Estimates vary widely for the amount of water needed to commercially produce oil shale primarily because of the unproven nature of some technologies and because the various ways of generating power for operations use differing quantities of water. GAO's review of available studies indicated that the expected total water needs for the entire life cycle of oil shale production ranges from about 1 barrel (or 42 gallons) to 12 barrels of water per barrel of oil produced from in-situ (underground heating) operations, with an average of about 5 barrels, and from about 2 to 4 barrels of water per barrel of oil produced from mining operations with surface heating. Water is likely to be available for the initial development of an oil shale industry, but the size of an industry in Colorado or Utah may eventually be limited by water availability. Water limitations may arise from increases in water demand from municipal and industrial users, the potential of reduced water supplies from a warming climate, fulfilling obligations under interstate water compacts, and the need to provide additional water to protect threatened and endangered fishes. The federal government sponsors research on the impacts of oil shale on water resources through DOE and Interior. DOE manages 13 projects whose water-related costs total about $4.3 million, and Interior sponsored two water-related projects, totaling about $500,000. Despite this research, nearly all of the officials and experts that GAO contacted said that there are insufficient data to understand baseline conditions of water resources in the oil shale regions of Colorado and Utah and that additional research is needed to understand the movement of groundwater and its interaction with surface water. Federal agency officials also said they seldom coordinate water-related oil shale research among themselves or with state agencies that regulate water. Most officials noted that agencies could benefit from such coordination.

What GAO Recommends

GAO recommends that Interior establish comprehensive baseline conditions for water resources in oil shale regions of Colorado and Utah, model regional groundwater movement, and coordinate on water-related research with DOE and state agencies involved in water regulation. Interior generally concurred with GAO's recommendations.