The Green River Formation was formed from sediments laid down in a series of ancient lake beds of Middle Eocene age in Colorado, Utah and Wyoming, U.S.A. The formation contains hydrogen-rich organic matter in its oil shales which represent 2 trillion barrels of shale oil in place and it covers an area of 17,000 square miles (44,030 KMsup2). The continuous oil shale was formed under a combination of physical, biological and chemical conditions in a stratified lake. The initial study is aimed to provide evidences is postulating the physical conditions in which appropriate geochemical and sedimentation process could form oil shale. One of the major needs in generating further understanding of the Eocene Green River Formation would be in the investigation of their physical paleolimnology. The lake dynamics provides a critical mechanism for heat transfer, mixing, turbulence and particle settling. It also affects the productivity of organic material, concentration and decomposition of organic material and ultimately the reaction rate and balance of geochemical processes. The study approach can be a powerful tool to interpret the unique oil shale formation and its distribution.