BIG SHOAL PIKE COUNTY

Transcription

1 BIG SHOAL PIKE COUNTY ENERGY PROJECT SITE SUITABILITY 2009 Department of Energy Development and Independence Energy and Environment Cabinet Commonwealth of Kentucky

2 FOREWORD The Pike County Fiscal Court, with the assistance of Summit Engineering, has 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 excellent coal resources and a dedicated County government supportive of development at this site. Cover photo (2006) - Proposed development site current mining activities

3 The Pike County Fiscal Court, with the assistance of Summit Engineering, has offered the Big Shoal 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 site is controlled by the Hatcher-Trimble Trust which has expressed an interest in participating in the development of the site by offering a long term lease and taking a royalty interest in any products developed at the site in lieu of an outright sale of the property. This approach could reduce the up-front capital cost to the developer as the-per acre price on the property has been reported as in the range of $50,000 to $100,000. Page 1 Aerial photograph of development site

4 Size The site consists of 215 acres located north of the City of Pikeville, Pike County, Kentucky (USGS Broad Bottom and Pikeville Topographic Quadrangles). The site is located south of Coal Run Village on the south side of Levisa Fork and US 23. The property has recently been annexed by the City of Pikeville and is zoned planned unit development. This classification will require approval of development plans but will not require a change in zoning. Topography The site is rural but adjacent to a residential area and close to the commercial part of Coal Run. The elevation of the property is 825 feet above mean sea level (AMSL). The site has been used for deep and surface mining and currently, some deep or auger mining is occurring on and adjacent to the offered property. The Pike County government has employed Summit Engineering to prepare a substantial Feasibility Study of the Big Shoals site which describes certain engineering and financial aspects of the potential development and which has been included as an appendix with this report. Page 2 Current bench potentially suitable for facility location

5 The property is currently highly disturbed, due to the mining activity. When mining and reclamation are completed, there will be some bench areas that will be suitable for placement of the more substantial operational equipment for an alternative energy facility, and fill areas which will be suitable for less intensive development. Early engagement could allow the reclamation of the property to be the initial earthwork for a facility, provided the reclamation plan in the applicable mining permit can be altered to leave the property ready for development. Certainly, fill areas should be compacted and engineered to allow support of the most industrial type possible. Additionally, the reclamation activities may be utilized to prepare the site for construction of required roads, retention basins and other physical structures. The Feasibility Study has identified a proposed site plan that would call for the movement of five to six million cubic yards of material to create two valley fills and which includes some substantial point removal in order to allow for side track construction and to create approximately 170 acres for the proposed site. Floodplain and Wetlands According to the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map (FIRM), indicates that the floodplain associated with the Levisa Fork will not impact the site although it does extend up Big Shoal Run several hundred feet adjacent to an existing rail spur. The approximate elevation of the site is 825 feet AMSL and the flood elevation in this area is 670 feet. Mapping available from the U.S. Fish and Wildlife Service also indicates that minor freshwater emergent wetlands are identified in conjunction with ponding on the property. Due to the current activities on the property, it is not likely that these identified wetland areas will inhibit future development. The Feasibility Study indicates that the identified wetland areas are no longer in existence. Planning and/or additional study to assure wetlands are not impacted may be necessary as part of the development process. Page 3

6 Site Hazards Environmental databases were reviewed to determine if there was regulatory evidence of an environmental impact at the site or a nearby property. Based upon a review of a 2008 FirstSearch Technology Corporation Environmental Database Report, the site was not identified on any environmental databases searched, and no other sites were identified in the area within the search radius. The site sponsor has stated that there are no hazardous or radioactive materials and wastes at the site. Based upon current operations at the site, an environmental study would be recommended prior to development. Gas well on site Oil and Gas Wells Numerous gas wells are located within and adjacent to the development area. The site developer will have to close or relocate several gas wells and may have to relocate some gathering lines and a 6-inch transmission line while developing a CTL/CTG, nuclear, solar, or biomass facility. Page 4

7 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. No non-attainment area is particularly close to the site, with the Ashland/Huntington area to the north and the Knoxville area to the south. Both areas are greater than 50 miles from the site. The site is also approximately 110 miles northwest of Great Smoky Mountains National Park and approximately 200 miles east of Mammoth Cave National Park, the two Class I Visibility Areas closest to the site. State water data was searched to determine if designated impaired streams in the area might affect discharge requirements for an energy facility. The site is located adjacent to the Levisa Fork. The use designations for the Levisa Fork in accordance with 401 KAR 10:026 are warm water aquatic habitat, primary contact recreation, secondary contact recreation, and drinking water source. The (d) List of Surface Waters lists the Levisa Fork from mile point to for the impaired uses of non-support of warm water aquatic habitat and partial support of primary contact recreation. Fecal coliform and sedimentation/siltation are the listed pollutants and the suspected sources are on-site treatment systems, sewage discharges in unsewered areas and surface mining. There are no public water intakes within 15 miles downstream of the site. During the development process, additional investigation to determine if and/or what permitting and processes may be necessary to utilize this water body industrially. 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. The closest substantial public access area (park, preserve, wilderness area) is Fish Trap Lake which is located over 10 miles to the southeast of the site on the far side of downtown Pikeville. No other public Page 5

8 access areas, such as trails or nature preserves were identified in the area. Additional investigation may be required to characterize and determine or mitigate the impact of development at the site to this public access area. The Pike County airport for general aviation lies within 3 miles to the north of the site. The proximity of the airport will require coordination to ensure that planes landing or taking off the airport will not overfly the facility. Airport and airfield proximity raises questions with regard to potential hazards to small aviation which can be associated with processes or equipment at an alternative energy facility. Listings for National Register Properties, National Register Districts, and Inventoried (potentially eligible) Sites were reviewed and no historic, eligible or potentially eligible sites were identified at or within 100 meters of the project area. Central area of the development site with highwall Page 6

9 No species on federal lists of threatened and endangered species have been documented as present on the Pikeville and Broad Bottom USGS topographic quadrangles. The State list of threatened species identified in the area includes the eastern small-footed Myotis (bat) and the Northern Harrier. Endangered species on the Kentucky list include the longhead darter and Wehrle's Salamander. The habitat for these species is unlikely to occur on the development site, although waste water discharge permitting may be impacted by the presence of these aquatic species. The potential for sensitive species should be adequately reviewed in the development planning process. 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 fair. The graphic on the following page depicts geologic assets within a 15 mile radius of the site, indicating substantial development of both oil and gas in the region. The site is labeled 2.09 on the graphic map. This graphic indicates that gas fields surround the site, and highlights the area as being within the Big Sandy gas field. Additionally, a concentrated area of oil production is located to the northwest of the site. The Devonian shale is present at the site with the average depth to the top of this structure at about 3000 feet. Deep, un-mineable coal beds are not identified in the immediate area. The primary sequestration target is the Ordovician Knox, identified as about 6700 feet deep, with the primary seal being the overlying Black River carbonates and Ordovician shales. Both deep (>2,500 ) and shallow (<2,500 ) oil fields are present within 20 miles of the subject site, providing a potential resource for enhanced oil recovery by CO 2 injection in the area. The proximity of faults to a site may impact the development of a nuclear, biomass, or CTL/CTG facility. A fault system is identified beneath Pine Page 7

10 Mountain, approximately fifteen miles south of the site. Based on mapping from the KGS, the seismic risk at the proposed site is very low. Page 8

11 Utilities While most basic utilities are not presently installed and active at the site, they are readily available. Potable water will be provided by the City of Pikeville, and sewer is currently located about one mile distant. Basic electrical service is available at the site, and road access from US 23 is also available. Broadband internet access is available within a mile of the proposed site. The Feasibility Study provides preliminary design and extensive cost estimates for the extension of services to the site. 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. Currently, access to the site from US 23 is by Coal Run Post Office Road which crosses the river and runs adjacent to a residential subdivision located east of the site. No other site access is currently available. Access road nearby residential development The Feasibility Study suggests a direct access consisting of the road and bridge adequate to support the coal hauling and worker traffic, directly from US 23 Page 9

12 opposite the site. This option would eliminate travel through a residential area although an increase in coal truck travel on US 23 may create a local traffic impact. 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. Rail may be an option for this site, pending development of a suitable siding. A double CSX line passes the site to the north. Currently there is not adequate property suitable for a siding at the site, other than the short abandoned siding that runs up Big Shoal. The Feasibility Study discusses the possibility of removing portions of the hill points adjacent to the track to provide adequate area for siding construction. Based on plans included with the Feasibility Study, the siding tracks would be no more than 4,000 feet long, making the operative portion of each siding no longer than about 3,500 feet. This plan extends beyond the boundaries of the submitted site and would require the agreement of adjacent property owners. Based on the volume of material expected to be transported in to the site and product transported out, at least 3-4 siding tracks would be needed. Page 10

13 CSX rail north of the site No barge facilities will be possible as there are no navigable rivers in this part of Kentucky. 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 nearest suitable transmission connection point is the substation located at the American Electric Power (AEP) facility which is north of the site, along US 23 across the Levisa Fork and CSX railway. A 138kV line is located within 5 miles of the site. The site sponsor reports that AEP has agreed to provide electrical power to the site. Existing right-of-way (ROW), together with ROW over property owned by the Hatcher /Trimble Trust may be sufficient to bring power to the site. However, the existing ROW may need to be widened in order to support the higher voltage lines needed. The new line is projected to cross the river and the CSX ROW north of the site. Page 11

14 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. A 6-inch gas line runs approximately parallel to the Levisa Fork generally along the northern portion of the property. Columbia Gas Transmission Corp maintains large transmission lines in this portion of Pike County, but their proximity to the site is unknown. There are several gathering gas pipelines on the site. Water Supply Available water supply is a critical project component for the development of a CTL/CTG, biomass or nuclear facility. The Levisa Fork is located immediately north of the site. The Levisa Fork at this location is part of the Little and Big Sandy River Basin and the Hydrologic Unit Code (HUC) 11 listing is Mean annual flow at this location is 1,132 million gallons per day (MGD). The nearest USGS station is station at Pikeville, KY. The lowest mean annual flow recorded at this gaging station is 337 MGD. The lowflow 7Q 2 and 7Q 10 at this station are 115 and 66 MGD, respectively. The lowflow 7Q 10 is the lowest mean flow during seven consecutive days over a ten-year period. The low-flow 7Q 2 is the lowest mean flow during seven consecutive days over a two year period. The Levisa Fork, as a sole water source, should be able to provide adequate raw water supply for a CTL/CTG facility, which will need in excess of 2,500 gpm or 3.6 MGD for a facility making 10,000 barrels of liquid fuel per day or for a biomass facility that may have similar cooling water needs. The Feasibility Study performed on the site discusses construction of an impoundment sized to accommodate a 10 day supply of process water. Page 12

15 The Levisa Fork appears to be capable of providing the minimum adequate raw water supply for a nuclear facility, which would need in excess of 8,000 gpm for cooling purposes. Reclaimed area 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 Pike, Letcher, Knott, Floyd, Johnson and Martin counties in Kentucky, and Mingo County in West Virginia. Based on information developed by the Kentucky Economic Development Cabinet in October 2008, these seven counties have a civilian workforce of approximately 76,000. Additional labor from surrounding counties could swell the labor market above 100,000. Page 13

16 Pike County labor market Source: Civilian Labor Force Pike County Labor Market Area 2007 Oct Oct Civilian Labor Force 25,358 24,907 77,553 75,847 Employed 23,833 23,491 72,531 71,393 Unemployed 1,525 1,416 5,022 4,454 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, the proposed site is greater than 20 miles from any military site or long range radar. 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 FEMA mapping, the site is at a low risk for tornado activity. Page 14

17 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. The Eastern Kentucky Coal Field covers approximately 10,500 square miles and contains approximately 51.9 billion tons of remaining resources. Pike County has the highest annual coal production of any county in Kentucky. More than 26 million tons were produced in In May 2007, regional offices of the Kentucky Office of Mine Safety and Licensing listed 112 active mining operations in Pike County. 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 Shoal site has an average direct normal solar radiation of 3.67 KWh/m 2 /day and an annual solar radiation for two-axis flat plates of 5.96 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. Despite coal mining operations on the property, the site has sizeable areas of trees or other land cover that could impact a solar facility. Additionally, the site is limited in size. Solar installations in large mass can be a visual distraction to local communities. Although this site is some what visually isolated from the adjacent residential neighborhood to the east, a solar installation may be visible from the commercial area of Coal Run Village across the Levisa Fork. Page 15

18 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 3.49 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 16

19 Mean wind speed 3.49 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 Pike County is 72,671 tonnes/year. Biomass in Pike and surrounding Counties is 276,394 tonnes/year. Due to limited feedstock variability, depending on the type of feedstock utilized, these supplies (<500,000 tonnes/year) may not provide adequate feedstock; further investigation would be required. In comparison to other locations throughout the State, Pike County has lower biomass availability. Analysis of the potential in the Page 17

20 area to grow feedstock specifically for a biomass facility should also be part of the planning process. Nuclear A limiting factor to the development of a nuclear facility is available water supply. A minimum of 8,000 gpm or 11.5 MGD of water is required to meet basic facility needs. The Levisa Fork can provide this minimum water supply for the development of a nuclear facility at this location. Safety issues associated with nuclear facilities include ensuring an adequate controlled buffer zone of at least 2,000 foot 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 Shoal site cannot show a controlled exclusion zone of greater than 2,000 feet due to neighboring residential and commercial areas. The site is located more than 25 miles from a population center of 25,000 persons or more; however, the site is within the corporate boundaries of the City of Pikeville, with a population of about 6,500. The emergency plan should take into account egress limitations that could potentially impede emergency efforts. Impediments to egress are present immediately with the egress from the site adjacent to a residential neighborhood or over a new bridge to be constructed. Traffic congestion on U.S. 23/119, U.S. 460 could pose transportation problems to the site should emergency procedures or evacuation be required. 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. There are no nearby air pollutant discharge sources. Page 18

21 SUITABILITY In summary, the Big Shoal site, although located within the Eastern Kentucky Coal Fields, is not at this time the most suitable location for the development of a potential alternative energy facility. The site scored a total of 1034 points, representing 86% of the total available points for a CTL/CTG facility. Similarly, the site scored a total of 873 points, representing 70% of the total available points for a biomass facility. Aspects which will need study or development include limited acreage suitable for a building site and construction of adequate rail siding. In addition, more investigation of biomass feedstock adequacy will be necessary. Due to a low average mean wind speed, this location is not a viable location for a utility scale wind facility. Proximity of residential and commercial development may preclude use of the site for nuclear development. In addition, the lack of an adequate control zone and impediments to emergency egress are constraints on the site. The site scored a total of 545 points or 56% of the available points for a nuclear facility. Available solar radiation at the site is too low to produce a significant source of energy for a utility-scale solar facility. The site scored 460 points, representing 50% of the total available points for a solar facility. The limited available acreage inhibits cost-effective solar panel placement for a utility scale facility and the sight lines from Coal Run Village should be studied. Page 19

22 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) Pike County Fiscal Court 146 Main Street Pikeville, KY (606)