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Senate backs Uinta Basin energy zone language and state support resolution for oil upgrading
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Summary
On Feb. 22 the Utah Senate amended and advanced SB83 to expand energy-zone boundaries in the Uinta Basin and approved a concurrent resolution (SCR8) endorsing private investment in an oil upgrader ('cracker') to process waxy crude for pipeline/rail transport. Sponsors described potential $400–$500 million private investment and emphasized coordination with counties and federal agencies.
The Utah Senate on Feb. 22 amended and advanced legislation and a concurrent resolution aimed at coordinating energy development in the Uinta Basin.
Senator Van Tassel moved Amendment 3 to Senate Bill 83 to add part of Daggett County to the designated Uinta Basin Energy Zone and described the proposal as a state–local effort to coordinate development of traditional fuels and nontraditional resources such as wind and solar. "We'd like to work together as both the counties and the state... and hopefully, we can bring some coordination with the BLM and other federal agencies to continue to develop these great resources," Van Tassel said.
Later in the same general policy area the chamber considered second substitute SCR8, which the sponsor described as supporting facilities and technologies to make the basin’s waxy crude transportable. Senator Van Tassel said the oil “is pretty waxy. Even at room temperature, it will not flow out of this bottle,” and explained that an upgrader or "cracker" would alter the molecules so the oil could be shipped by pipeline, rail and truck without special insulation. Van Tassel told colleagues the projects under discussion seek private investment and are not asking for state general-fund support.
The sponsor estimated private investment for an upgrader/cracker at "$400,000,000 to $500,000,000" and framed the measure as a signal of state support to potential investors. Both SB83 as amended and the second substitute SCR8 were reported to pass floor votes and were placed at the bottom of the third-reading calendar for final action; clerk tallies showed SB83 recorded 25 yeas, 0 nays, 3 absent and SCR8 recorded 24 yeas, 0 nays, 5 absent.
Supporters emphasized economic development and coordination with federal land managers; questions from other senators briefly tested technical needs for transport and processing. The Senate’s action was procedural (advancement and placement for third reading) and does not itself authorize state spending on private facilities.
