Spurred by soaring commodity prices, production has grown to more than 135,000 barrels a day, increasing the revenues coming into Utah state coffers.
would, among other things, divert $20 million in severance tax revenue to cover the reconstruction of the road through Gate Canyon, which is now under review by the Bureau of Land Management.
Even though a billion-dollar oil-moving rail spur is under development in the basin, lawmakers say $100 million highway investments in Indian and Gate canyons are needed now to accommodate the influx in oil production that shows no sign of abating. About 50,000 barrels a day, representing at least 160 truck trips, are moved through Indian Canyon to these three loadouts, according to Rikki Hrenko-Browning, president of the Utah Petroleum Association.
That’s about 100 tanker trucks each day passing through the facility, which operates 1,200 railcars. Because the yellow and black waxy crude hardens as it cools, these cars are equipped with steam coils so that it can be returned to a liquid state for offloading at refineries in Baton Rouge and Port Arthur, Finley said in an interview last year.
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