APPENDIX 17-PROJECT PINEDALE CORRESPONDENCE Mr. JOHN F. PHILIP, EL PASO NATURAL GAS Co., Director, Special Projects Division, San Francisco Operations Office, DEAR MR. PHILIP: Your inquiry concerning El Paso Natural Gas Company's further interests in Plowshare applications is most timely. In past years we drilled several wells that established the existence of large quantities of natural gas in the Fort Union Formation within the Pinedale Unit area, Sublette County, Wyoming. The difficulty in this area is the same as that at the Project Gasbuggy test site-namely, a low permeability reservoir rock. However, the reserve estimates we have developed are of such magnitude that commercial application of the nuclear explosive stimulation technique may be possible. We are now amending the Pinedale Unit Agreement to provide adequate time and appropriate provisions to permit both the evaluation and application of the nuclear stimulation technique. Our internal planning calls for commencement of a feasibility study by the Company's exploration, production and reservoir engineering personnel directed to the Fort Union Formation in the Pinedale Unit area immediately after the first of this coming year. We desire that you consider this letter our formal request for your participation in this feasi bility study and that it be conducted jointly, as was the case with Project Gasbuggy. Assuming this action ultimately results in a successful demonstration of this technique in the Pinedale Unit, it is hoped that orderly future development of this area will be permitted. While the Pinedale Unit area is our present objective and ultimate development of this area by the use of nuclear explosives would be a long-range program, the Company's exploration personnel have been instructed to evaluate other prospective areas for the same purpose. El Paso Natural also wishes to develop underground storage facilities in proximity to its existing pipeline system. In the event that such facilities cannot be located and developed by conventional means, then active consideration will be given to the use of a nuclear explosive for this purpose. It is expected that this situation will be clarified during the next year. The economies of nuclear explosive applications will be greatly improved by the availability of smaller diameter explosives. It is our hope that research efforts directed toward this accomplishment have been or will be undertaken in the near future and that simplification of operations corresponding to the transition from experimental stage to generally standardized application will similarly be achieved. We are vitally interested in the utilization of nuclear explosives to provide adequate supplies of natural energy fuels and, therefore, wish to be kept apprised of all developments and data that become available through Plowshare activities. You may be assured of our continued interest and efforts concerning the Plowshare program. Very truly yours, Mr. J. WADE WATKINS, Washington, D.C. SAM SMITH, Director, Exploration. EL PASO NATURAL GAS Co., DEAR MR. WATKINS: By letter dated September 1, 1967, copy attached, I advised Mr. John F. Philip of our continued interest in Plowshare operations and, particularly, of our desire to investigate nuclear explosive stimulation in the Pinedale Unit Area, Sublette County, Wyoming. That letter served as our for mal request for the Atomic Energy Commission's participation in a joint feasi bility study as was the case in the Project Gasbuggy effort. At this time I would like to formally solicit the participation of the Bureau of Mines for this project. The contributions of the Bureau of Mines to the Project Gasbuggy feasibility study and to the actual conduct of the experiment were, and are, considered of paramount importance. Your contributions to this new effort would be no less important. El Paso Natural Gas Company presently plans to commence its investigation efforts shortly after the first of the coming year. Your assistance commencing at that time would be very much appreciated. Very truly yours, SAM SMITH, Director, Exploration. APPENDIX 18.-PROJECT WASP-LETTER OF INTENT WOLF EXPLORATION CO., Denver, Colo., December 18, 1967. Re Project "WASP" (Wyoming Atomic Stimulation Project), Green River Basin, Sublette County, Wyo. Mr. JOHN KELLY, Director, Division of Peaceful Nuclear Explosives, Dr. WALTER HIBBARD, Director, U.S. Bureau of Mines, Washington, D.C. GENTLEMEN: The companies whose names and addresses are given in attachment "A" have formed a joint venture to undertake a nuclear fracturing experiment in order to evaluate the efficacy of this technique in low permeability gas reservoirs in the State of Wyoming. It is recognized that the parties named are all "independent operators" in the petroleum industry; however, each of same stands ready to demonstrate its financial integrity. Each participant in the Joint Venture has acquired an interest in oil and gas leases within the Green River Basin as shown on attachment "B", and on confirmation that nuclear explosives are effective and economically promising for this purpose, it is their desire that orderly development of natural gas production from these leases be accomplished using nuclear explosives. In keeping with the intent to label such projects after vehicles, the group proposes the name "WASP", after the aircraft carrier bearing this name. Additionally, the letters represent "Wyoming Atomic Stimulation Project". This letter will serve as an expression of intent of the group to engage in such an experimental program with the U.S. Atomic Energy Commission under the Plowshare Program, and the U.S. Bureau of Mines. This formal expression of intent confirms the discussion with representatives of the AEC and Bureau of Mines in the AEC's San Francisco Operations office on October 19, 1967. Copies of a preliminary Feasibility Report prepared by Wolf Exploration Company, the operator for the group, have been provided government representatives describing the location and geological setting of the acreage involved and drilling and production data from existing wells. It is recognized that the program would involve nuclear detonation at greater depths and at much higher pressures and temperatures than previously experienced in underground tests; however, the group believes that diligent pursuit of solutions to the problems of very deep emplacement is warranted because of the enormous potential energy reserve in the proposed test area. It is also recognized that other groups own leases in the same area and that at least one of these has independently expressed a desire to test nuclear fracturing in the area. We desire to cooperate in any way practical with these other operators. We shall be pleased to meet with you or your representatives to plan a course of action for the proposed nuclear stimulation program. As the proposed Project will, of necessity, be complex and time-consuming, we urge that such a meeting be arranged at the earliest possible date in order that definitive discussions may be commenced without inordinate delay. Very truly yours, ROBERT E. McDONALD, APPENDIX 19-ARIZONA WATER MANAGEMENT STUDY— Hon. GLENN T. SEABORG, Chairman, U.S. Atomic Energy Commission, Washington, D.C. Hon. STEWART UDALL, OFFICE OF THE GOVERNOR, STATE HOUSE, Phoenix, Ariz., May 8, 1968. Secretary, U.S. Department of the Interior, GENTLEMEN: It is my pleasure to propose that an agreement be entered into between the Federal government and the State of Arizona for a joint study to investigate the feasibility of using nuclear explosives in connection with water management in Arizona. Studies on the utilization of nuclear explosives for peaceful purposes that have been performd to date have indicated good promise in the areas of natural gas recovery, underground storage of gas, recovery of underground copper deposits, in-situ treatment of oil shale, and in massive earth moving applications. Although there have been several general studies on the use of nuclear explosions for water management, to our knowledge there have been no detailed studies to establish the feasibility of using nuclear explosives for water management in a particular region. For the past year the Arizona Atomic Energy Commission (AAEC) has been actively studying the possibilities of using nuclear explosives for water manage ment. A preliminary report entitled "The Use of Nuclear Energy for Water Resources Management in the State of Arizona", sponsored by the AAEC in cooperation with the University of Arizona, was issued in August of 1967. This was followed by a more complete report in October of 1967 entitled "Potential Site Investigation for Nuclear Energy Crater Experiment and Water Manage ment in Arizona”, also sponsored by the AAEC in cooperation with the University of Arizona. On October 20, 1967, AAEC and University of Arizona representatives held meetings at Berkeley, California with the Special Projects Division of the San Francisco Operations Office of the U.S. Atomic Energy Commission and at Livermore, California with personnel of the Lawrence Radiation Laboratory and the U.S. Geological Survey. These were for the purpose of discussing Arizona's interest in nuclear explosives for water management and for reviewing the preliminary reports. Subsequent written comments on the reports were received from both the San Francisco Operations Office and the Lawrence Rediation Laboratory. On April 9, 1968 another set of meetings were held in Berkeley between State of Arizona representatives and personnel from the U.S. Atomic Energy Commission, Lawrence Radiation Laboratory, and the U.S. Geological Survey. A preliminary draft of our proposal, plus various technical matters, were discussed at that time. The following sections of this letter detail the water supply and needs of Arizona, possible solutions to these needs, the scope of the proposed joint study, the suggested participation by Federal and State organizations, and the proposed time schedule for the study: ARIZONA'S WATER SUPPLY AND NEEDS Arizona probably has the greatest water shortage problem of any state in the union. Arizona's population has almost tripled during the past two decades, with most of the increase in urban areas. Meeting the water demands of the growing population and continuing to sustain the existing irrigated agricultural economy has necessarily resulted in increased pumping from an already depleted groundwater supply. While the largest magnitude of total water demand is in Central Arizona, the same long-range water shortage problem exists in many areas and communities throughout the State. Other problems, such as flood control, sediment deposition and quality deterioration, are also prevalent in many areas. It is estimated that approximately 80 million acre-feet of water fall each year upon Arizona as rain or snow, of which only about 2 million acre-feet are retained as usable surface water, with another 2 million acre-feet going into groundwater. The present use of water in Arizona is approximately 7 million acre-feet per year. Of this, about 5 million acre-feet are taken from existing groundwater, resulting in an annual overdraft of about 3 million acre-feet. The prposed Central Arizona Project will bring an additional 1.2 million acrefeet of water to Arizona each year. However, completion of this project, ten years away at the earliest, will still leave a net annual deficit of about 1.8 million acre-feet. Furthermore, it is estimated that by 1980 Arizona will need approximately 3.5 million acre-feet per year of new water to meet its urban, industrial and agricultural needs. POSSIBLE SOLUTIONS TO ARIZONA'S WATER NEEDS There are two general methods by which Arizona could obtain the additional water it needs for the future. The first is by the availability of desalted seawater and/or brackish water. The second is to recover a larger percentage of the annual precipitation. This discussion will deal only with the latter method. There are many ways by which a larger percentage of precipitation may be retained as useful surface or groundwater. These include (1) lining and/or sealing of canals; (2) reduction of evaporation; (3) reclamation of waste water; (4) control of phreatophytes; (5) better management of stream-flow runoff. Although all of these are important, the last probably offers the most hope for significant retention of Arizona water. The most promising techniques for retaining more stream-flow runoff by nuclear means are through the recharge of underground acquifers and the creation of surface storage reservoirs. We believe that the recharge of underground acquifers with the aid of nuclear explosives could develop into an important water management technique. This would involve the creation of a temporary storage cavern or rubble hole underneath a stream bed that would allow runoff water to gain access to a high-permeability underground acquifer. Successful development of this technique would allow water that otherwise would be lost to evaporation or transpiration to be retained for future recovery. The creation of surface storage reservoirs through the construction of concrete dams has been employed successfully in Arizona, but the cost is high and evaporation losses are a problem. It appears to us that the use of either conventional high explosives or nuclear explosives to create a "throwout" or a "bulking" dam offers good promise for surface storage of water. The costs of dams created in this manner might well prove to be lower than those for concrete dams. SCOPE OF PROPOSED STUDY The proposed study shall have the following objectives: (1) To investigate the general feasibility of utilizing nuclear explosives in connection with water management in Arizona. (2) To explore locations in Arizona where experimental nuclear shots for water management might be conducted. (3) To make a cost analysis of nuclear versus conventional techniques for water management projects. (4) To prepare recommendations on future courses of action. As part of the investigation of the general feasibility, particular attention shall be devoted to the shot safety and residual radioactivity aspects of this application of nuclear explosives. Water is a precious national resource, and we must be sure that there will be no possible contamination of water supplies before nuclear experiments are conducted. The nuclear experiment (or experiments) that would be proposed if the feasibility study indicated promise would be conducted in a wash (es) having geological characteristics similar to stream beds where a practical water management project could be accomplished, but a much lower annual runoff. This would allow the techniques to be demonstrated without jeopardizing any main streams. It would also help in the public acceptance of the nuclear approach and would not raise as many problems with respect to water rights. If the experimental shot(s) showed good promise, a nuclear water management project could then be worked out with less trouble. DETAILS OF FEDERAL AND STATE PARTICIPATION It is proposed that the Federal government participate in this study through the U.S. Atomic Energy Commission and the Department of the Interior. The U.S. Atomic Energy Commission (and its contractors) would be expected to be responsible primarily for nuclear device consideration, shot safety studies, and residual radioactivity considerations. The Department of the Interior would be expected to help with geological guidance and studies, cost data on conventional water management projects, and evaluation of water resources. Representatives of the Bureau of Reclamation, as well as the U.S. Geological Survey, have been briefed on the proposed study, and it would seem appropriate that both of these agencies be involved in the study. The State of Arizona will participate in the study through the Arizona Atomic Energy Commission, the Arizona Interstate Stream Commission, the Arizona State Land and Water Department, and the University of Arizona. The Arizona Atomic Energy Commission will provide general coordination for the study and will be responsible for the cost analysis of nuclear versus conventional techniques. The Arizona Interstate Stream Commission and the Arizona State Land and Water Department will assist in the coordination of the study and will provide consultation support. The University of Arizona will provide nuclear and geologic services to supplement those provided by the Federal government. No transfers of funds between the Federal government and the State of Arizona are proposed in connection with this study. It is expected that the State of Arizona will expend approximately $50,000 in performing its share of the study. PROPOSED TIME SCHEDULE It is proposed that the study commence on July 1, 1968 and conclude with a summary report on June 30, 1969. I hope that each of you agrees with us that the proposed study would be of real significance, not only to the State of Arizona but also to our whole nation and to many other nations of the world. Very sincerely, JACK WILLIAMS. ATOMIC ENERGY COMMISSION, Hon. JACK WILLIAMS, DEAR GOVERNOR WILLIAMS: I am pleased to respond to your letter of May 8, 1968, to the Secretary of Interior and me in which you propose that an agreement be entered into between the Federal Government and the State of Arizona for a joint study to investigate the feasibility of using nuclear explosives in connection with water management in Arizona. The use of nuclear explosives in the development and management of water is a subject that has been of interest to us for some time. We feel that nuclear explosives may offer substantial advantages as a tool for this purpose, at least under certain special hydrologic situations. We would be most happy to join with the State of Arizona and the Department of the Interior in conducting feasibility study to investigate the feasibility of using nuclear explosives in connection with water management in Arizona. As in other similar feasibility studies that we have undertaken, such a preliminary investigation would be based upon the collection and analysis of available information supplemented by a limited amount of reconnaissance in the field. May I suggest that your staff be in touch with our San Francisco Operations Office, who will be responsible for formulating an appropriate agreement for the study. We have talked with the Department of the Interior on this subject and understand that you will hear from them soon. We look forward to cooperating with the State of Arizona in this matter. Cordially, (S) W. E. JOHNSON, Acting Chairman. |