Questerre Energy Corporation reported on the planned Uinta Basin Railway that will serve the Uinta Basin in Utah including the acreage held by Red Leaf Resources Inc. its investee company. Questerre currently holds a 40% equity interest in Red Leaf. The Uinta Basin railway is reported to be the first major freight rail project built in the United States in the last 30 years.

It is expected to improve access for waxy oil production in the basin to more lucrative markets on the US Gulf Coast. Subject to a final investment decision, construction of the approximately 90-mile railway could commence as early as next year and be operational within two years. Earlier this month, the US Forest Service approved the final right of way.

The recent approval is for the Whitmore Park route proposed by the railway that includes a proposed terminus on a 7,000-acre parcel of land held by Red Leaf. Red Leaf acquired this acreage earlier this year as part of a settlement for a $50 million secured note including principal and interest. The Red Leaf acreage is also permitted by the state of Utah for a 44,000 barrel per day refinery that would upgrade the waxy oil to more valuable products including feedstock for lubricants.

Red Leaf is in discussions with local stakeholders for a rail loading facility that would move crude oil from tanker trucks to rail cars that could also serve as the first stage of the larger refinery project. Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low permeability reservoirs to acquire significant high-quality resources.