12 years of DKRW

DKRW Advanced Fuels LLC, the parent company for Medicine Bow Fuel and Power LLC will be making a presentation from 6:30 to 8 p.m. Thursday night at Medicine Bow Community Center in Medicine Bow. The purpose of the meeting to update the public on progress of the time line for the coal-to-liquefaction plant near Elk Mountain. The public meeting will include “a timeline with critical path key dates and significant events leading to the recommencement of construction for the project,” according to the public notice that has been running in the Saratoga Sun.

Medicine Bow Fuel and Power LLC was directed by the Industrial Siting Council to make a presentation every six months of the progress as a condition of their 39-month extension.

This will be the first meeting since the Industrial Siting Council met with Medicine Bow Fuel and Power LLC in December.

DKRW has faced scrutiny and criticism, as well as support and votes of confidence from residents of Carbon County. The plant, which has been in the planning stages since 2004, has yet to come to fruition. Economic downturns, low prices in natural gas, and delays in permits, requests for Department of Energy loans and requests for bonds from Carbon County and the state of Wyoming have stunted its development.

The Bureau of Land Management (BLM) has been working on an environmental assessment based on a right-of-way grant requested by DKRW in 2013.

In February 2014, BLM sent a letter to DKRW requesting a payment of $10,000 to cover expenses in processing the application. BLM sent another letter on May 9, 2014 stating they had not received payment by the deadline date. The deadline was extended to May 30, 2014.

Here is a summarized list of what has happened in the last 12 years:

2002 - Robert Kelly co-founds DKR Development LLC, the predecessor company of DKRW Energy LLC

2004 - Kelly helps secure an option agreement for 180 million tons of coal in the Carbon Basin in Wyoming from Arch Coal

DKRW came up with its names from the partners involved - Jon C. Doyle is “D”; Robert Kelly is “K”; H. David Ramm is “R” and Thomas E. White is “W”.

2005 - DKRW announces intent to bring coal-to-liquid operation to Carbon County.

Oct. 2007 - The Wyoming State Engineer’s Office (SEO) releases it Final Opinion of the Water Supply and Yield Analysis for DKRW Advanced Fuels LLC, the parent company for Medicine Bow Fuel & Power LLC.

March 4, 2009 - Wyoming Department of Equality (DEQ) issued a permit to Medicine Bow Fuel & Power LLC approving construction of an underground coal mine.

Nov. 27, 2009 - The Department of Energy published a notice of intent to prepare an Environmental Impact Statement for a proposed loan guarantee to support the construction and startup of the Medicine Bow Fuel & Power Coal-to-Liquid Facility in Carbon County, Wyo. (Deadline was Dec. 28, 2009)

Dec. 2009 - Jason A. Lillegraven, an emeritus professor from the Department of Geology/Geophysics and Zoology/Physiology at the University of Wyoming, writes a critical review of the SEO’s Final Opinion for the U.S. Department of Energy.

March 16, 2011 - DKRW announces they have entered into a purchase contract with Denbury Onshore, LLC to purchase 100 percent of the carbon dioxide captured from Medicine Bow Fuel and Power LLC plant.

Dec. 1, 2011 - DKRW announces they have entered into a contract with Vitol, Inc. in which Vitol would purchase 100 percent of the gasoline produced by the Medicine Bow Fuel and Power LLC.

Dec. 20, 2011 - DKRW makes a formal request for support in applying for two reve­nue bonds to the Carbon County Commissioners

One bond is a tax exempt bond of $245 million and the other is for $300 Industrial Development Bond.

In the same meeting, Gary Jones, of Hanna, asked Bob Kelly, of DKRW, that a promise of breaking ground was made in 2007 and 2008. Jones pushed to ask if the project would happen in 2012. Kelly replied “We want you to love us.”

Kelly also stated in the same meeting that the EPC (Engineering, Procurement and Construction) lump sum turnkey contract should be done in two months

Jan. 3, 2012 - The Carbon County Commissioners put a week hold on the resolution to support DKRW’s bond request.

Jan. 17, 2012 - Carbon County Commissioners approve a letter of support for DKRW to start seeking revenue bonds. The bond request is required to go through the state legislator and governor for approval.

May 2012 - DKRW - submits an updated construction schedule that stated the underground mine development is scheduled for 2013 and that commercial operations are to begin June 1, 2016.

September 2012 - DKRW signs a fixed price Lump Sum Turn Key Engineering Procurement and Construction contract.

March 20, 2013 - Medicine Bow Fuel and Power withdraws the proposed schedule for construction of the Medicine Bow Fuel and Power coal-to-liquid facility scheduled to be heard by the Industrial Siting Council meeting on April 1, 2013.

December 2013 - Wade Cline, Executive Vice President and Construction Council of DKRW Advanced Fuels LLC, requests a 30-month extension at the Industrial Siting Council meeting in Saratoga. The Industrial Siting Council gives the company a 39-month extension.

March 7, 2014 - DKRW Advanced Fuels LLC advises the Industrial Siting Council that they have terminated their contract with Sinopec - the Chinese company that was in charge of the Engineering, Procurement and Construction (EPC).