As part of its development, US Oil Sands has leased land in the PR Spring Designated Tar Sand Area of the Uinta Basin from the State of Utah School and Institutional Trust Lands Administration (SITLA). Since 2005, US Oil Sands has been active in Utah delineating the bitumen resources on its leases, developing its process and permitting the PR Spring Mine. The Company has made nine years of advance royalty payments to SITLA to maintain its leases and in doing so has supported public education within the State.
Through significant summer exploration and development programs, US Oil Sands has been a valued contributor to the local economy and has received strong support from Uintah County's Commissioners. Through over five years of successful defense of the required operating permits, the general public has had the opportunity to understand the benefits of US Oil Sands' process and its plans to manage the project. Project work commenced in the second half of 2013 and this project will prove the viability of a new class of resource within Utah's energy mix and provide steady, long-term employment within the Uinta Basin and beyond. Based on estimates of recoverable barrels within the leased acreage area and annual production through the phased development period, US Oil Sands estimates that the total project life may extend for 15-30 years.
US Oil Sands' PR Spring development is expected to be an excellent economic contributor to the State of Utah.