Plenty of questions for DKRW

Kassie Oliver, of Hanna, is 22 years old and she has spent half of her life hearing about DKRW. When Jason Lillegraven got up to speak, Mary Throne, a Wyoming attorney for DKRW, tried to take the microphone away from Lillegraven because he was not asking questions about the progress report that had been presented, Oliver spoke up.

"(Lillegraven) has a right to talk as well," Oliver said. "And I am very interested in what he has to say."

Throne said, "If you want to listen to him, I will let him finish, but I just want to point out that we started out, explicitly, at the beginning of the meeting explaining that we were not here to talk about the Land Quality permit, but if he wants to talk about the Land Quality permit, and all of you want to listen, I'll let him go ahead."

Lillegraven questioned whether DKRW had met the conditions in the Land Quality permit issued by the Department of Environmental Quality (DEQ) on Feb. 28, 2013.

Lillegraven told the audience no member of the DEQ has seen the front end engineering and design (FEED).

Throne, in a separate interview, stated the Industrial Siting Council (ISC) permit does not require DKRW to submit the FEED to  the ISC for its review.

In the public meeting on Dec. 18, DKRW's Bill Gathmann, Senior Vice President for Finance updated an audience in Hanna of the progress of the coal-to-gasification plant near Elk Mountain.

At the beginning of the meeting, Mary Throne, who has worked with DKRW through the permitting process, told the audience the purpose of the meeting is defined by the ISC order.

Throne said the meeting was to provide a progress report and an update on the project.

Throne emphasized that they were not at this meeting to discuss any of the other permits such as the Land Quality permit or the Air Quality permit.

Reese Johnson, of Elk Mountain, asked for clarification from the June meeting where DKRW's C. Wade Cline had stated that no final decisions have been made on whether to use the surface mine. Johnson stated that Cline said during the June meeting, it would be an economic decision and based on what would made the most sense. Johnson asked, "Will the surface mines just not be completed and you'll only do the underground mine, and where this fits within your planning of the project?"

Gathmann explained the mine is bowl shaped and there are outcroppings along the side of the ridge, which it called the surface mine. Gathmann said the coal in the outcropping is limited for DKRW's project and that Cline believed there may not be enough coal to economically develop the surface mine.

If the surface mine only produces 15 million tons of coal, it would not be economical using the type of equipment needed, Gathmann said. Opening the underground mine, which has flat, high, 20-foot seams would be much more economical.

Gathmann also stated he was not a coal expert, but that was the best way he could explain it.

Throne added it was her understanding that Arch Coal might develop the coal separately. "I don't want to get too much into the coal issues, because the coal issues are really Arch Coal questions."

Later in the meeting, Johnson asked Gathmann to explain the company's position to no longer seek revenue bonds from Carbon County. In 2010, DKRW approached the Carbon County Commissioners about revenue bonds. The commissioners approved the bonds based on findings from the Idaho National Laboratory (INL) on whether the coal-to-gasification plant was feasible.

Johnson said she understand that DKRW had withdrawn its request, but asked if DKRW was still planning on pursuing the solid waste bonds. Gathmann replied that he did not believe that DKRW has formally withdrawn their request. Gathmann said he believes that DKRW would not pursue those bonds because of the Department of Energy (DOE) loan and private financing. Gathmann said DKRW may still pursue the tax-exempt bonds.

Leo Chapman, the only Carbon County Commissioner who is still on the commission from 2010, clarified the condition of the bonds was based on the INL doing a complete review showing the commissioners the financial and technological feasibility study.

"My understanding is that your company would not allow that because of proprietorship of the license," Chapman said. "That was a commission of 2010 and I don't think one commissioncan obligate a future commission."

Chapman questioned whether or not the offer was still in place because the commission is different than it was in 2010.

Throne said she wasn't involved in that process and would get an answer for Johnson, but in her experience other commitments by commissioners have been honored.

Chapman said, "It would still be conditional on the national lab, because that was our concern, whether it was financially or technically feasible."

Gathmann said DKRW did make arrangements for the INL to review the hard copies at DKRW's office, but not to take copies with them.

Gathmann said there were fears by the DKRW team with the public record laws in Wyoming that the licenses would be made public and they are confidential documents. Gathmann said the third party licensors don't want their documents to be released to the public."

Gathmann said the reason the licensors can charge so much for their licenses is because no one else has the information.

Chapman said he was never made aware of the findings of the review. Gathmann said it because DKRW never completed due diligence with the INL.

Mike Boulter, owner of the Two-River Ranch east of Medicine Bow, asked Gathmann if DKRW is any closer to getting a contract than they were 6 to 12 months ago. Gathmann said they are closer, after terminating the contract with Sinopec.

"We were back to square one with the financing," Gathmann said. "We will be reviewing the construction contracts in the first quarter of the year."

Gathmann said DKRW is working with the DOE, "Twelve months ago, they were not in the picture and at one point DOE were 'pencils down' for non-project reasons. They approached us nine months ago and asked us to present our project."

Boulter also asked if DKRW had all of the outstanding permits, including the Environmental Protection Agency (EPA) permits they needed.

Throne said no EPA permits were required that she knew of. The band of permits needed to start the construction have been approved – the Air Quality permit, the Quality Land permit and the Industrial Siting Permit, Throne said. "There are minor DEQ permits they need to apply for," Throne said. "That is the beauty of this project, they have the permits they need to begin."

Cindy Wallace, executive director for the Carbon County Economic Corporation, asked Gathmann if DKRW has coordinated with the Power Company of Wyoming since both projects are slated to begin construction in 2017. "To coordinate the projects as far as construction workers and housing, will you be working with them?"

Throne stated that before DKRW can resume the process under the Industrial Siting Permit, the construction schedule will have to be approved and as a part of that, DKRW will need to have a socio-economic impact study done, taking into account where the Chokecherry Sierra Madre Project is at the time."

Alternatively, Throne said, the ISC will have to determine if the peaks will overlap. "That is what the Industrial Siting Council is designed to address."

Dave Throgmorton said he hasn't heard anything different that he has heard for the past 18 months about the project. "You used the word hope seven times this evening, which is pretty cool. I like it. I approve of it ... I guess what I was looking for tonight was something a little more definitive."

Thorgmorton said he believed he had not seen any more progress than in the last 6 to 12 months.

"I am not asking you to respond to this necessarily, I guess what I am saying is I appreciate you coming here tonight ... I am really glad you are doing these (meetings) twice a year, because you have been directed to." Throgmorton said he was a little disappointed because he believed all he heard were hopes, aspirations and platitudes.

 

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