BIG SANDY ASHLAND COAL DOCK BOYD COUNTY

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1 BIG SANDY ASHLAND COAL DOCK BOYD COUNTY ENERGY PROJECT SITE SUITABILITY 2009 Department of Energy Development and Independence Energy and Environment Cabinet Commonwealth of Kentucky

2 FOREWORD General Coal Services, LLC submitted this site for evaluation for potential development as an alternative energy facility. The site was evaluated against preliminary criteria which identifies characteristics beneficial for development of a wind, solar, biomass, nuclear, or coal-to liquid (CTL)/coal-to-gas (CTG) facility. This site benefits from its location along a major water source, with access to the coal fields of eastern Kentucky, an on-site coal supply, and electric and natural gas transmission points. Cover photo (2008) - Proposed development site

3 General Coal Services, LLC has offered the Big Sandy Ashland Coal Dock property to be evaluated as a potential energy facility. The development of an energy facility, whether for CTL/CTG, wind, nuclear, solar or biomass, must consider basic common factors which include assets like access to transportation, general topography, proximity to public access areas, and available utilities. GENERAL SITE CONSIDERATIONS Ownership The property is owned in fee by General Coal Services, LLC. Aerial photograph of the development area Page 1

4 Size The site contains approximately 385 acres located on two separate parcels west of the Big Sandy River along US 23 near Catlettsburg within the Eastern Kentucky Coal Fields in Boyd County, Kentucky (Burnaugh USGS Topographic Quadrangle). Approximately 85 acres of this proposed site is an active multi-loading coal dock on the Big Sandy River, with the remaining undeveloped 300 acres slightly northwest across US 23. Further acreage, totaling an additional 30 acres adjacent to the coal dock portion of the property, will be available in the spring of 2009, lending additional flexibility to this proposed site. 25 open acres on coal dock site Topography Based on topographic mapping, the entire site lies between 540 and 700-feet Above Mean Sea Level (AMSL). Site observations indicate that the proposed primary building Page 2

5 site (300 acres) consists of flat to rolling hills, and would require some groundwork for development. Approximately 70% of the coal dock acreage is stockpile areas, with minimal elevation changes. The remaining 30% of the 85 acres is currently receiving fill to raise it to the elevation of the remaining dock area. Floodplain and Wetlands Though the portion of the site closest to the river lies within the 100-year floodplain, it appears that the primary building site across US 23 lies above the floodplain. National wetlands inventory mapping does not identify any wetlands on either parcel of the property. Site Hazards The Big Sandy Ashland Coal Dock site is not identified on any 2008 environmental databases searched. One State listed facility was identified nearby, the Cyrus Dock Road Improvement facility. This facility was identified across the Big Sandy River in West Virginia and therefore, should be of minimal impact the site. No other facilities were identified immediately adjacent to the property. Other numerous facilities were identified as non-geocoded, which means little information is readily available to assess the named facility or incident. Most of these non-geocoded facilities appeared to be in Catlettsburg, and should be of no impact due to distance to the proposed site. The current use of the property as a coal handling facility presents a potential for environmental issues to exist; thus, further study is recommended prior to development. Oil and Gas Wells There are no producing oil wells located on the site. The site is near numerous oil wells which all occur in the upland area south of the site and to the northwest. These wells are all less than 2,500 feet in depth, indicating a fairly shallow producing zone. A substantial gas producing area is located north of the site, although gas is produced throughout the region. Page 3

6 Coal dock facility and stockpiles Sensitive Areas The proximity of non-attainment areas and Class I Visibility Areas to the site was examined for potential impacts to air quality or limitations on a required air permit for a CTL/CTG or biomass facility. The subject site is located in a predominantly undeveloped portion of Boyd County, south of Catlettsburg, Kentucky. There are no public access areas within twenty miles driving distance of the proposed site. The site also lies at least 175 miles from the nearest Class I Visibility Areas (Dolly Sods Wilderness Area, Mammoth Cave and Great Smoky Mountains National Parks). Although this portion of the County is still rural, Boyd County, which is included in the Huntington-Ashland-Kenton designation, is in air quality non-attainment for PM 2.5, and in maintenance status for 8-hour ozone. Because of the air quality non-attainment status of Boyd County, additional planning and controls may be required when negotiating the permitting for a coal gasification or biomass facility at this location. Page 4

7 State water data was searched to determine if designated impaired streams in the area might affect discharge requirements for an energy facility. The proposed site location is adjacent to the Big Sandy River at mile marker 7.4. The Big Sandy River is part of the Ohio River Basin. The hydrologic unit code (HUC) 11 is The use designations for the Big Sandy River in accordance with 401 KAR 10:026 include warm water aquatic habitat, primary contact recreation, and secondary contact recreation. The Big Sandy River does not have impaired uses at this location, and it is not on the 2008 Kentucky Division of Water 303(d) List of Surface Waters for impaired use. Portion of development site Siting considerations for any energy facility include the presence of Threatened and Endangered (T&E) species in the area, the presence of significant cultural or historical resources in and around the project area, and proximity to public access areas and airports. Based upon information obtained from the Kentucky Fish and Wildlife, no Page 5

8 Federal or State listed threatened or endangered species were identified on the Burnaugh topographic quadrangle. Additionally, areas where significant species habitat may occur, such as National Parks, Trails or Preserves are not located in proximity to the proposed site. Based on reference to National Register Properties, National Register Districts, no historic sites were identified at or within 100 meters of the project area. There was one inventoried site located on the boundary of the proposed site area, for which no formal determination had yet been offered as to the historical significance of this potentially eligible site. Three archaeological sites were identified within the project area, with potential for more. One of these sites is potentially eligible for listing as archaeological resources, and two are presently listed as Native American burial mounds. Additional investigation and review should be conducted with the State Historic Preservation Officer to characterize the extent and nature of these archaeological resources, and appropriate planning to avoid disturbance may be required associated with any energy facility development activities. Distance from airports is critical for successful CTL/CTG or alternative energy sites to minimize environmental impact and hazards to air traffic. There are two airports or landing sites in the Ashland area that are approximately 13 miles from the site: Ashland Regional airport and the King's Daughters Medical Center that allows helicopter landing at the hospital. Geological Assets Siting considerations for a biomass or CTL/CTG process must take into account available geological assets for potential sequestration. Analysis by the Kentucky Geologic Survey (KGS) ranked the geologic assets for the site as moderate. The following graphic has been prepared by the KGS to depict the assets of the site, identified as site 2.2. The graphic indicates the site is near numerous oil wells which all occur in the upland area south of the site and to the northwest. These wells are all less Page 6

9 than 2,500 feet in depth, indicating a fairly shallow producing zone. A substantial gas producing area is located north of the site, although gas is produced throughout the region. The average depth to the Devonian shale is 1,900 feet and the average depth to the Knox, potentially a carbon sequestration target, is 5,800 feet. The Mt. Simon formation Page 7

10 is present at this site and is identified as the primary target zone for sequestration potential. Based upon KGS mapping, seismic risk is rated very low. There are few faults in the general area. Utilities Based on information available from the site sponsor, potable water, basic electrical service, and natural gas utilities are present at the proposed site. Broadband access is also presently available on site. No onsite gathering lines and/or oil or gas wells were identified onsite that would require relocation in the development process. Coal dock on Big Sandy River Transportation Road access is essential for any large industrial facility and particularly so for an energy facility that brings in its fuel or trucks out its product. The site is located adjacent to US 23, a four-lane paved road suitable for coal hauling. Coal trucks currently haul coal to Page 8

11 the coal stockpile area. US 23 is listed as a State maintained coal haul route in Boyd County for approximately 12 miles. A rail line (CSX) presently runs along the western boundary of the 85 acre parcel although no siding is on site at this time. Although not a significant siting consideration for a solar, nuclear or wind facility, a biomass or CTL/CTG facility will require several transportation options due to the substantial feedstock required for these technologies. In addition to coal access via truck transport, the site already operates as a coal docking facility, and benefits from a variety of transportation options for receiving coal, including an existing barge loading and unloading facility. Transmission Any energy facility will require access to electric transmission points. A 69kV line should be an adequate capacity to carry generated power from a solar facility in Kentucky. A nuclear, biomass, wind or CTL/CTG facility would require access to larger electric transmission points. The proposed site is currently served by a 69kV line, with other significant sources of power nearby. The Big Sandy electrical substation runs a 138kV line within 2-miles of the site and a 765kV line is present within five miles of the site. Expanded service lines can utilize the existing 69kV right of way, but may need to be expanded. Natural gas is used as a feedstock and fuel in CTL/CTG and for some biomass facilities, making access to a supply important. Additionally, if the facility makes synthetic natural gas, access to a transmission pipeline will be important in getting products to market. As illustrated on the map below, provided by the National Pipeline Mapping System, numerous transmission pipelines are located in the area, providing additional fuel and transportation options. Page 9

12 National Pipeline Mapping System Water Supply Available water supply is a critical project component for the development of a CTL/CTG, biomass or nuclear facility. The proposed property is adjacent to the Big Sandy River within the Ohio River Basin. The nearest USGS gauging station ( ) is upstream of the site at Louisa, Kentucky. The lowest mean annual flow recorded at this station is in excess of 919 million gallons per day (MGD). These statistics suggest that the flow requirements along this section of the river are more than adequate, and Kentucky Division of Water personnel have indicated that a CTL/CTG facility at this proposed site should have no trouble obtaining a water withdrawal permit for process water here. Based on this data the Big Sandy should provide adequate raw water supply for a CTL/CTG facility, which will need in excess of 2,500 gallons per minute (gpm) or 3.8 MGD, or for a biomass facility that will have roughly equivalent cooling water needs. The Big Sandy may also Page 10

13 provide the minimum adequate raw water supply for a nuclear facility, which would need in excess of 8,000 gpm or 11.5 MGD for cooling purposes. Evaluation of downstream uses and commitments for the Big Sandy would be required in order to reliably determine if adequate, continuous water supply would be available for a nuclear facility. Workforce Availability Development of a CTL/CTG, biomass, or nuclear facility would require access to an adequate supply of construction and skilled labor. The labor market area for the proposed site would include Boyd, Greenup, Carter and Lawrence counties in Kentucky, Scioto and Lawrence counties in Ohio and Wayne, Cabell and Putnam counties in West Virginia. Based on information developed by the Kentucky Economic Development Cabinet, these nine counties have a civilian workforce in excess of 215,000. Boyd County labor market Source: Page 11

14 Civilian Labor Force Boyd and Greenup Counties Labor Market Area 2007 Oct Oct Civilian Labor Force 40,803 40, , ,217 Employed 38,627 38, , ,273 Unemployed 2,176 2,183 11,662 11,944 Unemployment Rate %) Source: U.S. Department of Labor, Bureau or Labor Statistics Other General Characteristics The proximity to military sites was reviewed in order to consider the potential impact of an energy facility to military training routes or long range radar. Based upon information produced by the Federal Aviation Administration s Department of Defense Screening Tool, impact is likely to Air Defense and Homeland Security radars. Aeronautical study is required prior to site development. Atmospheric extremes, such as tornadoes, are capable of structurally damaging a facility and must be considered particularly during siting for a solar, nuclear, or wind facility. Based upon Federal Emergency Management Agency mapping, the site is at a moderate risk for tornado activity. TECHNOLOGY SPECIFIC CONSIDERATIONS CTL/CTG In addition to the common factors described above for energy site development, unique factors specific to a particular technology must be considered. For a CTL/CTG facility, access to coal resources is important. Boyd County is officially listed as a part of the Eastern Kentucky Coal Field, which covers 10,500 square miles and contains approximately 51.9 billion tons of remaining resources. Boyd County has approximately 590 million tons of coal remaining. Thus, this geographic location benefits the site as it will have access to numerous producers whose coal can be brought to the site efficiently and reliably. Some additional improvement to basic utility access and connection with high capacity natural gas and electricity may be required, but is Page 12

15 possible. The site developer will need to adequately assess natural and cultural resources and manage the site to avoid negative impact to those resources. Coal dock facility and stockpiles Solar Adequate solar radiation is critical to the successful generation of solar power. A successful site should be relatively free from land cover, and not within a mile of a corporate city boundary. The Big Sandy Ashland Coal Dock site has an annual direct normal solar radiation of 3.52 KWh/m 2 /day and an annual solar radiation for two-axis flat plates of 5.82 KWh/m 2 /day. Based upon this average solar radiation, too much cloud cover and haze is present to be effective as a large scale facility. The property is open land except for the forested ridges. Solar installations in large mass can be a visual distraction to local communities. Although this site is greater than a mile from an urban community, it is adjacent to a significant roadway. Care must be taken to ensure reflection is not a safety hazard. Page 13

16 Solar insolation map Wind The most critical component for a successful wind facility is adequate and consistent wind speed. In order to generate enough power to be a utility class facility, a mean average wind speed at 60 meters of 5.6 meters per second (m/s) or greater is required. Information obtained from AWS Truewind, indicates that the average wind speed at 60 meters for the site is 4.16 m/s. Without adequate wind speed, other factors, such as foundational concerns, potential visual impacts, telecommunication interference, impacts to birds and bats, as well as operational concerns such as ice shedding, noise, blade drop and throw, and flicker are moot. Wind speed measurements to accurately assess the available resource at any potential development site would be required prior to final planning. Page 14

17 Mean Wind Speed 4.16 m/s Biomass An adequate feedstock supply environment includes available crop residues, animal manure, forest residues from former silviculture or clearing, primary and secondary mill residues, urban residues (i.e., wood scraps from local business such as lumberyards), landfill gas, domestic wastewater, or switchgrass. Information obtained from the National Renewable Energy Laboratory indicates that the total biomass available within Boyd County is 25,002 tonnes/year. Biomass in Boyd and its surrounding Counties is 153,683 tonnes/year, which ranks low in comparison to other areas within the State. Depending on the type of feedstock utilized, these supplies (<500,000 tonnes/year) may not provide adequate feedstock. Analysis of the potential in the area to grow feedstock specifically for a biomass facility should also be part of the planning process. Page 15

18 Nuclear A limiting factor to the development of a nuclear facility is available water supply. The lowest mean annual flow for this section of the Big Sandy River is 919 MGD, which is well above the required 11.5 MGD to meet basic facility needs. Safety issues associated with nuclear facilities include ensuring an adequate controlled buffer zone of at least 2,000 radius around the facility and an effective emergency plan. These aspects mean that the best location for a nuclear facility is a rural, or undeveloped site. The Big Sandy Ashland Coal Dock site has a controlled exclusion zone less than 2,000, and US 23 splits the available acreage. The emergency plan should take into account egress limitations that could potentially impede emergency efforts. Slight impediments to egress are present within 10 miles of the site. From the site, egress on US 23 can be taken north or south of the site. East and west travel is limited to Interstate 64 which is approximately 10 miles north of the site. Atmospheric considerations can be important for a nuclear facility to avoid the possibility for interaction of the nuclear cooling system plume with a plume containing noxious or toxic substances from a nearby facility. The nearest air pollutant discharge source is a refinery owned and operated by Marathon Ashland, LLC approximately five miles north of site in Catlettsburg, Kentucky. SUITABILITY In summary, current operations at the proposed site, an existing supply of coal, and infrastructure to support a CTL/CTG facility make this site a good candidate. The site scored a total of 1113 points, representing 93% of the total available points. It benefits from its location along a major water source, with access to the coal fields of eastern Kentucky, an on-site coal supply, and electric and natural gas transmission points close by. Access to coal from road transport, barge, and potentially rail are also a significant benefit to the location of the proposed site. It also benefits from its distance from public areas and other factors that could negatively impact development or operation of a Page 16

19 CTL/CTG facility. However, prior to development, additional study and planning may be required to address cultural and/or historical resources, floodplain issues on the 85 acre parcel, as well as an environmental assessment of the site to ensure that environmental contamination does not exist from the current operations at the site. Furthermore, grading and groundwork will be required for the primary parcel (300 acres) prior to development. The total site points for a potential biomass facility is 984, representing 78% of the total available points. Although attributes described above for a CTL/CTG operation also benefit a biomass facility, limited variety and volume of biomass feedstock within Boyd and its surrounding counties provides potential constraint. Due to a low average mean wind speed, this location is not a viable location for a utility scale wind facility. Additionally, available solar radiation at the site is too low to produce a significant source of energy for a utility solar facility alone, with a site score of 583 points, representing 63% of the total available points. Land free of cover and distance from residential or commercial areas makes this site fairly desirable for solar panel placement; however, limited size and current operations provide restriction for any utility scale solar facility. The site scored a total of 605 points for a potential nuclear facility, representing 63% of the total available points. Although located in an area with ample water supply, potential impediments to egress, proximity to other regulated air facilities (petroleum refinery), and an inadequate exclusion zone provide site limitations. Page 17

20 Kentucky Department for Energy Development and Independence Metro Street 12 th Floor, Capital Plaza Tower Frankfort, KY (502) or (800) Smith Management Group Mercer Road Lexington, KY (859) General Coal Services, LLC 311 Bellefonte Drive Ashland KY (606)

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