The Odessa American from Odessa, Texas • 48

What project is all about an oil company looking for a little something extra to boost its production figures especially considering the fact that the project only covers some 25,000 acres, which represents a dot on the state's oil production map. But in light of the nation's overall energy picture, the project is staggering. It begins to sound something By BOB HORN State Editor DENVER CITY Shell Oil Co. is in the early stages of implementing a tertiary, or third stage, oil recovery project for a portion of the giant Wasson Field in Yoakum County. On the surface, that might sound like an ordinary announcement by 5 "if.

m. w- i "7 WTJ DENVER CITY SERVICE COMPANY NEW like a national energy plan. Consider these facts: Shell Oil plans to spend about $3.5 billion just to get the CO-2 enhanced oil recovery project off the ground. Shell's Denver Unit of the Wasson Field in Yoakum and Gaines Counties covers only 25,000 acres and was discovered in 1936. Primary and secondary recovery efforts are expected to total 39 percent of the original oil in place, or 850 million barrels.

The 00-2 tertiary project is expected to recover an additional 278 million barrels of crude oil, or 13 percent of the original oil in place at the time of discovery. When the CO-2 project is terminated in the year 2023, Shell is expected to have produced a total of 1,138 billion barrels of crude oil, or only 52 percent of the original oil in place. To implement the CO-2 project, Shell will develop a carbon dioxide gas field in southwestern Colorado by drilling up to 200 wells in that area. To transport the CO-2 gas to the Denver City area, Shell will construct a 480-mile, 30-inch pipeline. In the Denver Unit of the Wasson Field, Shell will drill another 100 new wells.

The company will convert another 200 wells from production to injection systems, or vice versa. 60 miles of new flowlines and gas-gathering lines will be laid in the field. Another 130 miles of new CO-2 injection lines also will be laid in the Wasson Field. Major modifications and additions will be made to all existing satellites and batteries. A completely new gas conditioning plant will be constructed.

Present gas compression capacities will be significantly enlarged. An estimated 2.4 trillion cubic feet of carbon dioxide gas will be injected in the oil-bearing formation over the life of the project, with much of that being reclaimed and reinjected in the field. And of the activity carries a pricetag of $3.5 billion in just the preliminary stages. Ricky Mallorr (leH), and Tina Allen Managi Their Own Business HEAD QUARTERS Richard Kirkland is investing in the future'; from ID New era begins and I think all we have to do is to educate them so they can do work they will have pride in. "I'm going to train my people so they can develop pride in their work," he said.

"I am going to have the same type of training program that major oil companies have. If they stay with me a few years and move up to a better job, then that's okay with me because they will be bettering themselves. If, however, they quit and go to work for another service company, I don't think they would be bettering themselves and they would probably be the type of building surround the outside on two levels and all are glass enclosed on: the inside, so that occupants will be' able to watch and participate in the' training programs. And just to make certain his employees understand the new headquarters building is for their benefit, Kirkland said the floor would be of a material which would permit the workers to come right up out of the oil fields without having to worry about ruining the floors. will be carpet in the offices, but that is all," he said.

employee I or someone else would not want." Kirkland is taking action to demonstrate his meaning of "pride." He is presently constructing a new headquarters building for his oil field service company. The new building holds an auditorium able to seat up to 100 persons. Kirkland said the auditorium will be used mainly for training purposes for his employees, and will feature a large television screen where training films cjan be shown. The offices to be located in the Tina Allen (left) and Ricky" Mallory (right) are two Odessa American carriers who have accepted the challenges of a newspaper route, and have reaped it's rewards. They are two youngsters that have learned to accept the responsibility, self discipline and promptness that a newspaper route for the Odessa American has to offer.

They have learned to manage their money and apply it toward their future. Abel Zambrano, (center) Ricky Tina's District Manager is shown encouraging the two. If you would like to earn and learn from a paper route call today: Tertiary projects get tax break '337-7314" Routes lion Available: DENVER CITY Shell Oil Co. is in the process of spending some $3.5 billion in West Texas, New Mexico and Arizona on a CO-2 tertiary enhanced oD recovery project. Industry spokesmen say the $3.5 billion is just a beginning and does not include other recovery projects the company has underway, or similar programs being planned by other major oil companies.

As one Shell official said, "The figures are enough to boggle your mind." The amounts of money to be spent on tertiary recovery projects would rival the state's annual budget and would make a respectable dent in the federal budget, according to one major oil company official. The Windfall Profits Tax bill passed last year by Congress and signed into law by former President Jimmy Carter could be one of the main reasons for the implementation of the massive third stage, or tertiary recovery projects now being planned. Under the federal tax act as originally passed, production from qualified tertiary projects could be sold at uncontrolled market prices and taxed at a lower rate than oil produced by primary and secondary methods. The law also provides for the federal Internal Revenue Service to make a determination of a qualified operation. The uncontrolled price clause of the windfall profits law has only recently been repealed by President Ronald Reagan.

Ed Thompson, executive director of the Permian Basin Petroleum Association, said the tax break for the tertiary recovery projects means more than just a few dollars to the oil companies. According to Thompson, major oil companies paid 70 cents of every dollar they' took in on primary and secondary recovery means in Windfall Profits Tax, and were able keep the other 3ff cents for stockholders and operational expenses. Thompson said tertiary recovery projects, like the Shell 002 project' in Yoakum County, would enable a -company to keep 70 cents of every dollar of income on the project. Field and the other companies operating there are moving in the same direction toward CO-2 projects. I would think all the companies are talking about the same kind of money that Shell is spending, or close to it." Other companies with operations in the Wasson Field are Texaco, Atlantic Richfield, Amoco and ROUTE No.

320 2600 block San Fernando 2600 block San Carlos 2600-2800 block, Madera 2600 block San Andres Texas Pacific Oil Co. NEW SOFTER SHIRTDRESS IN MISSES AND HALF-SIZES Project has its clangers The undertaking is expensive and glamorous, but PRINTED PATTERN A720 ROUTE No. 308 1000-1400 block Whitoker 1000-1300 block McKinney 100-1400 block Graham 1200 block Gregory 1000 block 1 2th St. 900-1200 block 13st St. 800-1 200 block 14th J.

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ROUTENo.314 700-1200 block 19th St. 700-1 200 block 20th St. SIZES By BOB HORN State Editor DENVER CITY SheU Oil's CO-2 tertiary oil recovery project near Denver City is massive along with hundreds like it, will go a long way toward making the nation self-sufficient in its energy needs. ROUTE No. 324 1400-1 800 block 23rd 1400-1 800 block 24th 1600:1 800 block 25th 1600-1 800 block 26th Sunset Memorial Gardens, Inc.

Odessa, Texas Annual Statement of Condition of Perpetual and Irrevocable Funds in Trust as of December 31,1980 ROUTE No. 713 4100 block Hazelwood 4200-4300 block Kirkwood 2900 block Knoll Circle 41 00-4300 block Springdale 4100-4300 block Springbrook Book Value Market Value Assets ROUTE No. 302 200-900 block Belmont 200-900 block Amburgey ROUTE No. 31 2 100-400 block Santa Rita 100-400 block Conet 100-400 block Sunset 100-400 block Casa Grande 100-400 block Elm 1500-1800 block Ridge Crest 1500-1 800 block Graham not without its dangers something that Shell engineers realize. Carbon dioxide gas, or CO-2, is safe by itself.

Walking through a cloud of CO-2 does not cause harmful effects The gas, which puts heavy oil in a movable state, forms a carbonic acid when it comes in contact with water. And from that point, the trouble begins. The acid formed by CO-2 and water is highly corrosive to metal, especially oil field pipe. Unprotected pipe wouldn't last three months, ac-. cording to Carroll Vernon, a production superintendent for Shell Oil Co.

at its Denver Unit in the Wasson Field. Vernon said Shell would be using, -316th-irich stainless steel or fiberglass coated in its Denver Unit project to cut down on pipe corro- sion and eliminate trouble. One of the first concerns Shell has in connection with the corrosion of pipe in the CO-2 project is con-, tamination of fresh underground water sources. "Every water well in our field is scanned every few seconds," Vernon said, "and I get weekly reports on them. If I see a well where there may be a problem we give it immediate attendion and do whatever is necessary to protect the water." Some of the measures Vernon said Shell would take to protect water supplies include putting new casing in the hole, or plugging the well and drilling a new hole if that becomes necessary.

"We are committed to protecting the underground water supply," Vernon said. "We have to report to the Railroad Commission on how the well is monitored and repairs that are made. The commission trusts us and we aren't going to do anything to destroy that trust. "It is mandatory that we report any troubles to the commission and we will even go as far as to drill a new well if that's what it takes to protect the underground water," he said. I Vernon also noted that some hydrogen sulfide would be produced in connection with the CO-2 pro- ject.

And he does not rule out the danger of the," deadly gas, which killed five people north of Denver City several years ago on another company's lease. "We have been handling hydrogen sulfide gas ef- 't fectively for years," he said, "but that is not to say that another accident won't happen. Shell will, however, do everything it can to see that it doesn't happen." Vernon said hydrogen sulfide gas is normally pro- 'n duced in connection with oil production. He added that much of the poisonous gas produced in Denver Unit would be flared in connection with the Denver Unit, once the CO-2 project becomes opera- tional. 41,287.25 22,276.31 26,934.47 68,797.57 69,254.97 27,000.00 6255,008.85 Gash -(overdraft) Corporate Stocks 16,821.68 Savings, Building and Loan Investments 22,276.31 Real Estate Mortgages 26,934.47 Corporate Bonds 89,855.35 Common Trust Funds 87,902.23 Other Investments Other Bank CD's 27,000.00 $270,248.32 ROUTE No.

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