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Second Substitute S.C.R. 8

Senator Kevin T. Van Tassell proposes the following substitute bill:


             1     
CONCURRENT RESOLUTION SUPPORTING NEW

             2     
TECHNOLOGIES AND FACILITIES THAT ENHANCE THE

             3     
PRODUCTION AND VALUE OF UINTAH BLACK WAX

             4     
2012 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Kevin T. Van Tassell

             7     
House Sponsor: John G. Mathis

             8     
             9      LONG TITLE
             10      General Description:
             11          This concurrent resolution of the Legislature and the Governor expresses support for
             12      new technologies and facilities that allow for, and enhance the production and value of,
             13      Uintah Black Wax in the Uintah Basin.
             14      Highlighted Provisions:
             15          This resolution:
             16          .    expresses support for new technologies and facilities that allow for, and enhance the
             17      production and value of, Uintah Black Wax in the Uintah Basin; and
             18          .    encourages the cooperation and consideration of local, state, and federal officials in
             19      efforts to develop an oil upgrading facility in the Uintah Basin in a manner that is
             20      prudent, ethical, and lawful.
             21      Special Clauses:
             22          None
             23     
             24      Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
             25          WHEREAS, the United States is seeking energy development opportunities;


             26          WHEREAS, using natural resources from all possible energy producing sources is
             27      integral to economic growth;
             28          WHEREAS, within the Uintah Basin of the state of Utah, there is an abundance of
             29      crude oil commonly referred to as Black and Yellow Wax crude;
             30          WHEREAS, geological estimates put the potential of this resource on equal footing
             31      with the largest oil developments in the United States;
             32          WHEREAS, on average, the United States imports from foreign sources more than half
             33      of all oil sold in America;
             34          WHEREAS, a significant amount of imported oil comes from countries and regions
             35      hostile to the interests of the United States;
             36          WHEREAS, conservative estimates indicate that there is more recoverable oil on
             37      federal lands in the United States than in Saudi Arabia, a major source of imported oil;
             38          WHEREAS, a significant amount of the oil in the Uintah Basin is found beneath tribal
             39      lands;
             40          WHEREAS, the Ute Indian Tribes receive significant compensation from oil
             41      production on tribal lands;
             42          WHEREAS, the United States Treasury receives significant revenues from severance
             43      taxes paid from oil extraction on federal and tribal lands;
             44          WHEREAS, the state of Utah receives significant revenues from severance taxes paid
             45      from oil extraction on lands within the state;
             46          WHEREAS, the Utah School and Institutional Trust Lands (SITLA) receives
             47      significant revenues from oil extracted on SITLA lands in the Uintah Basin;
             48          WHEREAS, the economies of the counties in the Uintah Basin depend upon the oil and
             49      gas industry;
             50          WHEREAS, the major producers of oil in the Uintah Basin are actively pursuing
             51      opportunities to increase production;
             52          WHEREAS, because of the molecular nature of the wax crude in the Uintah Basin, the
             53      refineries in North Salt Lake are currently the only viable market for producers of the wax
             54      crude;
             55          WHEREAS, an oil upgrading facility could change the molecular structure of the wax
             56      crude to liquefy it and allow the wax to be delivered to market via pipeline;


             57          WHEREAS, an oil upgrading facility in the Uintah Basin would allow for increased
             58      production of the wax crude in the Uintah Basin, to the benefit of all Utahns; and
             59          WHEREAS, private companies are willing and anxious to build an oil upgrading
             60      facility on private land in the Uintah Basin:
             61          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
             62      Governor concurring therein, supports and encourages new technologies and facilities that
             63      allow for, and enhance the production and value of, Uintah Black Wax.
             64          BE IT FURTHER RESOLVED that the Legislature and the Governor urge that the
             65      development of an oil upgrading facility in the Uintah Basin, through the cooperation and
             66      consideration of local, state, and federal officials, be conducted in a manner that is prudent,
             67      ethical, and lawful.
             68          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the United
             69      States Secretary of the Interior, the Utah Petroleum Association, the Utah Department of
             70      Natural Resources, the Public Service Commission, and the members of Utah's congressional
             71      delegation.


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