The environmental impacts of producing 8000 m3/d of oil from the Chattanooga Formation by means of underground mining and surface retorting have been assessed. The major impacts were determined to be those associated with surface disposal of spent shale. Disposal of spent shale can have a significant impact on surface and groundwater quality as the result of trace elements and toxic substances leached from the shale. Changes in water quality from these releases and those associated with land disturbance can have significant long term effects on aquatic biota. Significant changes in land use and effects on terrestrial ecosystems can occur if large areas are covered with spent shale and cannot be revegetated. From this assessment, it was determined that additional information must be obtained about the resource and extraction processes before impacts associated with development of the Chattanooga Formation can be more precisely quantified.