Sen. Salazar attacks new shale rules
DENVER, Colorado ” Colorado Sen. Ken Salazar has accused Bush administration officials of rushing out flawed rules for commercial oil shale development before they leave office in two months.
Salazar, a Democrat, says the rules, issued Monday, set royalties too low and don’t protect the state’s scarce water.
He says administration officials don’t even know if the technology for extracting oil from shale is viable on a commercial scale.
He says the initial royalty rate of 5 percent is a “pittance” that would short Colorado of billions of dollars.
Salazar says the new rules acknowledge that energy companies might have to acquire agricultural water rights to make the process work.
He also says federal officials don’t know where the energy would come to power the process.