south heart comments & objections final
TRANSCRIPT
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JamesR.DeutschDirector,ReclamationDivisionNorthDakotaPublicServiceCommission600E.BoulevardAve.Dept.408Bismarck,ND58505-0480
March15,2011
Re:SouthHeartLigniteMineApplicationInformalConferenceRequest,
CommentsandObjections
DearMr.Deutsch:WetheundersignedindividualsandorganizationsrespectfullysubmitthesecommentsonandobjectionstotheminepermitApplication(“Application”)submittedbySouthHeartCoalLLC(“Applicant”)andrequestaninformal
conferenceonthematteratSouthHeart,fortheconvenienceofthosemostaffected.Wealsorequestaccessforourselvesandourexpertstotheminesite(“Site”),forthepurposeofgatheringinformationrelevanttotheforeseeableimpactsoftheproposedminingactivities.Inaddition,werequestthatacopyofanelectronicorstenographicrecordoftheinformalconferencebemadeavailabletotheundersignedassoonaspossibleaftertheinformalconference.WeidentifyourselvesasObjectorstotheproject,andourinterestsinthematterinclude:
• Detrimentalimpactstoourresidencesandpersonalhealthfromthe
proximityofamassivestripminingoperation(“Mine”),blasting,hauling,processing,fugitivedust,wateraccess,watercontamination,etc.,causeddirectlybytheminingoperation;
• DetrimentalimpactstolocalwaterrecreationalopportunitiescausedbydisruptionofanaturalhydrologicalsystemandintroductionofpollutantsintolocalwatersbytheMine;
• Detrimentalimpactsonouragriculturalandbusinessinterests,includingtourismattractedbytheBadlandsandTheodoreRooseveltNationalPark,aswellasthehealthoflivestock,bycommencementofminingactivitiesinproximitytoanareathatiscurrentlyapristineandwildlandscape,withattendantimpactstoairqualityandqualityoflifegenerally;
• DetrimentalimpactsonenjoymentoftheBadlands,TheodoreRooseveltNationalPark,andothernaturalresourcesbyNorthDakotaresidentsandvisitorsfromaroundthecountry;
• Thelikelihood,giventhepatternestablishedtodatebyNorthDakotacoalmineoperators,thatreclamationactivitieswillbewhollyinadequatetorestorethesitetoitscurrentstateanduse,andtheresultingprospectofpermanentdegradationofthelandandwateronandneartheMine;and
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• GlobalclimateimpactscausedbycombustionofcoalminedatSouthHeartandmethanereleasedduringtheminingprocess,includingchangesinweatherpatternsthatwilldetrimentallyimpactagricultureinourregionandincreasedlikelihoodofnaturaldisastersduetodisruptedclimatepatterns.
AftermanyvolunteerandprofessionalhoursspentreviewingthelengthyApplication,weconcludethattheApplicationinitscurrentformisincompleteduetomanyomissions,oversights,andincompleteanalyses,includingthelackofotherrequiredenvironmentalpermittingthatwouldprovideimportantinsightintotheactualimpactstobeanticipated.ThereforewerequestthatthePSCreviseitsfindingthattheApplicationiscompleteandsuspendthereviewpendingcompletionofallrelevantenvironmentalpermittingprocesses.Foreaseofreview,weincludeaTableofContentsasaguidetothesecomments:
TableofContentsCOALBEDMETHANERECOVERYACTIVITIES ..............................................................................3
HYDROLOGICALIMPACTS...................................................................................................................3SUMMARYOFOVERBURDENCHARACTERISTICSISINADEQUATE....................................................................3BASELINEMONITORINGANDTHEPROPOSEDMONITORINGPLANAREINADEQUATE ...............................5
GroundwaterMonitoring..................................................................................................................................6 SurfaceWaterMonitoring................................................................................................................................7
IMPACTSTOGROUNDWATERQUANTITY ............................................................................................................7IMPACTSTOGROUNDWATERQUALITY ...............................................................................................................8ALLUVIALVALLEYIMPACTS ....................................................................................................................................8PROBABLEHYDROLOGICCONSEQUENCESANDCUMULATIVEHYDROLOGICALIMPACTASSESSMENT. .10
HYDROLOGICALDAMAGEPREVENTIONRECOMMENDATIONS ...................................................................... 11
OTHERIMPACTSOFMININGACTIVITY....................................................................................... 12URANIUMRELEASE ................................................................................................................................................ 12PALEONTOLOGICALRESOURCES.......................................................................................................................... 12CLIMATEIMPACTS.................................................................................................................................................. 12
RECLAMATIONISSUES....................................................................................................................... 13HYDROLOGICRECLAMATIONPLANISINADEQUATE ....................................................................................... 13SOILRECLAMATIONPLANISINADEQUATE....................................................................................................... 14NORTHDAKOTAHASAPATTERNOFINADEQUATECONTEMPORANEOUSRECLAMATION...................... 16
ECONOMICANDSOCIALIMPACTS ................................................................................................. 16
IMPACTSTOAGRICULTURE .................................................................................................................................. 16IMPACTSTOTOURISM ........................................................................................................................................... 17IMPACTSONLOCALCOMMUNITY,INFRASTRUCTURE,SOCIALSERVICES .................................................... 17COALVALUEISOVERESTIMATED ....................................................................................................................... 18ECONOMIC&TECHNICALFEASIBILITYOFCOALPROCESSINGPLANSAREQUESTIONABLE ................... 18
PROCEDURALANDETHICSISSUES................................................................................................ 19OMITTEDANALYSISOFBLMUNSUITABILITYDETERMINATIONANDFEDERALCOALIMPACTS ........... 19CORPORATEDISCLOSURE ..................................................................................................................................... 20
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GTLENERGYCOALDRYINGPLANTISAMINEMOUTHFACILITYIMPROPERLYEXCLUDEDFROMTHEAPPLICATION........................................................................................................................................................... 20PSCCOMMISSIONERS’CONFLICTSOFINTEREST ............................................................................................. 20
ContributionstoCramerCampaignbySouthHeartFinanciallyInterestedParties:..........21ContributionstoKalkCampaignbySouthHeartFinanciallyInterestedParties: ................ 21
CONCLUSION ......................................................................................................................................... 21
CoalBedMethaneRecoveryActivitiesTheApplicationincludesinsufficientanalysisofanymethanepresentattheSiteandofanycoalbedmethanerecoveryactivitiesthatmaytakeplace.Ifsignificantamountsofmethanearepresent,eithermethanerecoverywilltakeplace,whichwillcausequantifiableimpacts,orrecoverywillnottakeplace,whichwillresultinreleaseofapotentgreenhousegasdirectlytotheatmosphere.Somediscussionofthefutureofanymethanecontainedatthesiteisappropriateinanyevent.If
ApplicantshavedeterminedthatthereareonlynegligibleamountsofmethaneattheSite,thosefindingsshouldbenotedintheApplication.WerequestananalysisofmethaneattheSiteandhowitwillbehandled.
HydrologicalImpactsFederalandstatesurfacemininglawsexplicitlyrequireprotectionofthehydrologicbalance.Damagetothehydrologicbalancemustbeminimizedwithinthepermitarea.Outsidethepermitarea,materialdamagetothehydrologicbalanceisprohibited.Thehydrologicbalanceconsistsofthewaterquantityandqualityofeachelementofthehydrologicbalance(i.e.,eachaquifer,eachspring,eachstream,
eachpond,etc.),theflowamongorbetweentheindividualelements,andseasonalvariationsofquality,quantity,andinter-elementflows.TheApplicationassubmitteddoesnotfulfilltheseminimumcharacterizationrequirements.TheProbableHydrologicConsequences(PHC)statementistheApplicant’sintegratedstatementoftheexpectedconsequencesoftheminingandreclamationoperationsproposedintheApplicationtoreducethedamagetothehydrologicbalancetoacceptablelevels.Withoutathoroughunderstandingofthehydrologicbalance,anyprojectionsofconsequencesarespeculative,withnobasisfortheoperatortoassertthatdamagetothehydrologicbalancewithinthepermitareaisminimizedandthatmaterialdamagetothehydrologicbalanceoutsidethepermitareawillnotoccur.ThePHCstatementis,therefore,inadequateandprecludesapprovaloftheApplication.WerequestmodificationofthePHCinresponsetothesecommentsorrejectionoftheApplicationasinadequate.
SummaryofOverburdenCharacteristicsIsInadequate
TestingconductedonoverburdenmaterialsthatwillbedisturbedduringminingindicatedhighpotentialforSHLMtoimpairsurfaceandgroundwaterqualitywithinandoutsideofthepermitarea.Sodiumadsorptionratio(SAR)testingwas
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performedbytheapplicantonoverburdensoilslocatedabovetheDcoalseamasrequiredbyNDAC69-05.2-08-05-2(c).ResultsoftheSARtestingreportedinthepermitApplication(Section2.3.4.2)establishedthatapproximately57%ofthesampleshaveSARvaluesgreaterthan12and35%haveSARvaluesgreaterthan20.PSCPolicyMemorandumNo.3setsaSARvalueof12asthethresholdfortoxic
overburdenmaterials.Incasessuchasthis,wheretoxicoverburdenmaterialispresent,supplementalinformationisrequiredtoevaluatethehydrologicconsequencesofmining.SyntheticPrecipitationLeachingProcedure(SPLP)testingwasconductedtoevaluatefurtherthepotentialforoverburdenmaterialstoimpactwaterquality.TheSPLPisanon-buffered,short-duration,highliquid-to-waste,agitated,laboratoryleachingprocedureusinganextractingfluidtheapproximatecompositionofprecipitation.ThetestusestheanalyticalproceduresofEPAMethod1312,anacceptedUnitedStatesEnvironmentalProtectionAgencymethod.WhiletheSPLPprovidesanindicationofthetypeandrelativeconcentrationsofcontaminantsthat
mightbeexpectedtoleachfromoverburdenmaterialsaswatertravelsthroughoverburden,liketheTCLP,itcannotpredicttheconcentrationsinleachatethatdoesform.AmongthefindingsoftheSPLPanalysesreportedinSection2.3.4.9are:
• ElevatedTotalDissolvedSolids(TDS)concentrations,16ofwhichwereabovetheEPASecondaryDrinkingWaterStandardof500mg/l,weredetectedintheSPLPleachate.TheApplicationacknowledgesthatanincreaseinTDSisexpectedduetodissolutionofsaltsandmineralsintheoverburdenmaterials.
• Selenium(2samples)andzinc(43samples)weredetectedintheSPLPleachateatconcentrationsgreaterthantheirNorthDakotaAcuteAquaticLife
Standards(NDAC33-16-02.1).Othermetalsincludingcadmium,copper,leadmercury,andnickelweredetectedinconcentrationsinexcessoftheNorthDakotaChronicLifeStandards(NDAC33-16-02.1).IneachofthesecasestheApplicantstheorizethatmixingofthere-placedoverburdenwilleffectivelydecreasetheconcentrationsofthesemetalsinfieldleachatetobelowapplicablestandards.Thispostulationiscuriousbecause,a)theSPLPleachateconcentrationsareoftensignificantlybelowtheconcentrationsthatactuallyforminthespoilduetotheextremelylongcontacttime(essentiallyforever)andhighsolid/liquidratioexperiencedbygroundwaterflowingthroughreclaimedoverburdenrelativetothetestprotocol,andb)thepatternsofexceedancesofgroundwaterandsurfacewaterqualitystandards,
asisseenatotherpreviouslyminedlocationsinNorthDakotawithsimilaroverburdenstrata.
• Arsenicwasdetectedin105of122leachatesamplesand66ofthosewereabovetheEPAPrimaryDrinkingWaterStandard0.01mg/l.TheApplicantshypothesizethatactualfieldconditionsliketherock/waterratioandhigherpHofstockpilerunoffwillresultinlowerarsenicconcentrationsthanweredetectedbytheSPLP.Studiesofarsenicmobilityingeologicsystemsestablishthatneitherhigherrock-to-waterratiosinthespoilnorhigherpH
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argueforlowerarsenicconcentrationsthanreportedfromSPLPtests.Further,otherfieldconditionssuchasthepresenceofacid-formingmaterialsinoverburden,competingspeciesforadsorptionsites,andextremelylongcontacttimesmayalsoproducemoreconcentratedfieldleachatethanSPLPleachateandresultinwaterqualitythatexceedsstandardsmoreoftenorat
higherlevels.
ResultsoftheSPLPtestpromptedtheApplicantstodevelopandruntheGroundWaterLeachProcedure(GWLP)test.1GWLPisanunofficialandun-reviewedleachingtestdevelopedbyGolderAssociatesandNorthernAnalyticalpurportedlytodevelopabetterunderstandingofthehighlevelsofleachedarsenicfromSHLMoverburden.TheGWLPusedwaterobtainedfromoneon-sitewell,ratherthansyntheticprecipitation,asthelixiviantintheSPLPprocedure.ResultsobtainedfromtheGWLPshowedlower,butstillsignificantconcentrationsofarsenicinsimulatedleachate.Theobviousunderstandingfromthealternativetest–thatdifferentleachingfluidsleachdifferentconcentrationsunderlaboratoryconditions–does
nothelppredictactualimpacts.UnfortunatelyeventhesomewhatlowerlevelofarseniccontaminationpredictedbytheunofficialGWLPtestisnotlikelytoberealized.Forwaterqualityaftermining,thecontrollingfluidwillbespoilleachatereactingwithspoilatrock-to-waterratios50-foldthatofthelaboratoryconditionsovervirtuallyunendingperiodsoftime.ThelaboratoryleachingtestsconfirmthatTDSandmetalmobilityarealikelyproblemforthesespoils.Post–mininggroundwaterwillbeofsignificantlydifferentchemistrythanthepre-mininggroundwaterusedintheGWLP.Theleachingandacidformingpotentialofreclaimedoverburden,notedabove,islikelytoresultindegradationofgroundwaterandsurfacewaterqualityin
theareaofSHLM.ApplicantsdoconcedethatatleastarsenicshouldbeexpectedtobedetectedinthesurfaceandgroundwatermonitoringprogramsatSHLM,evenifnosuchconcessionismadewithregardtoothermetalslikelytodegradethegroundwaterandsurfacewatersystemsinthearea.TheabilityoftheproposedmonitoringsystemtodetectcontaminationfromSHLMwillbediscussedinaseparatecomment.
BaselineMonitoringandtheProposedMonitoringPlanAreInadequate
Applicants’waterlevelmonitoring,whichtookplace“monthlybetweenNovember2006andOctober2007andquarterlyfromthefirstquarterof2008throughthe
fourthquarterof2009”isinadequatebecausetheareawasexperiencingdroughtconditionsduringmostofthisperiod.Duringthefewtimeswhenwaterwasplentiful,anumberofmonitoringstationsbecameinundatedandlikelyprovided
1The relationship between the GWLP of the Applicants and the synthetic groundwater leaching procedure
(SGLP), a procedure developed in the mid-1980s by the Energy and Environmental Research Center at the
University of North Dakota (David Hassett, 1987) has not yet been determined. The SGLP has similar
design and has demonstrated similar problems to the SPLP and the TCLP.
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unreliableinformation.TheApplicationdiscussesneitherproblemanddoesnotappeartoaddresstheseissues.Upgradientanddowngradientgroundwatermonitoringarerequiredtoprovideacompletepictureofthewateraccessandqualityimpactsofminingactivities.The
Applicationprovidesinsufficientevidencethatmonitoringsitesadequatelyevaluatethehydrologicalfunctionofthefullareathatmaypotentiallybeaffectedbyminingactivities.ThemonitoringprogramsproposedintheApplicationarealsoinadequate.Themonitoringplanmustmonitoratallplaces,atalltimes,andforsufficientdurationsthatarenecessarytoidentifywhere/whenconditionsofconcernmayexistordevelopasaresultofminingandreclamation.Themonitoringplansmustcollectdataattimesandplacesthatallowtheapplicant(andtheagencyandpublic)toverifythattheactualimpactsofminingandreclamationareconsistentwiththeprojectedimpactslaidoutintheProbableHydrologicConsequences(PHC)
statement.IntheeventthattheresultsofminingandreclamationdepartfromtheprojectionsofthePHC,themonitoringplanmustbeabletodiscernchangesinquantityandqualitythatareofconcern.Further,that“concern”mustbequantifiedwithnumericalvalues,rangesofvaluesortrends(i.e.,standardsortriggerlevels)thatallowandcauseactionstobetakentopreventmaterialdamagetothehydrologicbalanceoutsidethepermitarea.Anadequatemonitoringplan,inconjunctionwiththeHydrologicReclamationPlan(HRP),willrequirethatspecificactionsbetakenwhenconcernsareidentifiedandwhatthoseactionswillbe.Themonitoringprogramsdelineatedaredeficientin,orsimplymissing,eachoftheseelements.
GroundwaterMonitoringTheApplicationdescribesgroundwaterflowintheOverburden–DCoalAquiferasgenerallynortheasttowardtheHeartRiver.DischargefromtheOverburden–DCoalAquiferismainlytotheHeartRiverthroughalluviumandsubsurfaceoutflowtothenortheast(Section2.5.2.7).Unfortunately,duringactivemining,groundwaterflowinthealluvialandshallowbedrockaquifers(abovethebaseoftheDcoal)willbedominatedbypumpingattheactiveminepits.Aconeofdepressionwilldevelopthatwillinducegroundwaterflowtowardthepitswithexcesswaterbeingdischargedunderasurfacedischargepermit.Thisinwardflowtowardtheconeofdepressionwillbringunimpactedwaterfromsurroundingareas,pasttheperimetermonitoringwells,effectivelyrenderingtheproposedgroundwatermonitoring
systemunabletodetectgroundwaterdegradationcausedbymineoperationsuntilminingoperationsarecompleteandsufficientrechargehasoccurredtore-introduceoutwardflowfromtheminedarea.Onceminingiscompleteandpumpingisterminated,groundwaterwilleventuallyreboundtoequilibriumconditions,ultimatelyexitingthesitepastthepermitboundaryorintotheSouthHeartRiveroritstributaries.However,bythetimeequilibriumflowconditionsarere-established,themonitoringsystemwillhave
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beenremovedandbondsreleased,leavingthelocalresidentsandStatetodealwiththeresults.Hydrologicconditionsmustbemonitoreduntilthefinalequilibriumconditionhasbeenestablishedifatrueindicationoftheeffectsofminingongroundwaterqualityistobeobtained.TheApplicationshouldbedeniedunless,amongotherthings,themonitoringplanrequiresmonitoringuntilequilibrium
conditionsarere-establishedandthefateandtransportofcontaminantsisunderstood.
SurfaceWaterMonitoring
ThesurfacewatermonitoringplanprovidedwiththeApplicationprovidesacursorydescriptionofaminimalsurfacewaterflowandqualitymonitoringthatmightbeimplementedunless“analternative(i.e.,reduced)listofmonitoring
locationsandparametersmaybeimplementedifwarrantedandapprovedbythe
PSC.”ThesurfacewatermonitoringprogramdescribedincludesonlyonemonitoringpointontheHeartRiverlocatedwelldownstreamofthesiteinthetownofSouthHeart.Thatmonitoringpointwillbeinsufficienttodetectdepletionof
baseflowintheHeartRivernearthesitecausedbydewateringactivitiesatSHLM.Monitoringofsurfacewaterisproposedtooccuronlythroughcompletionofthe“active(e.g.,non-reclamation)miningperiod” .Directdischargefromthereclaimedoverburdenaquiferisnotexpectedtobeginuntilequilibriumconditionsareestablished,wellaftertheplanneddiscontinuanceofsurfacewatermonitoring.Inaddition,therearenoproposedmonitoringlocationsalongtheHeartRiveradjacenttotheSHLMtodetectdischargefromgroundwaterintotheriver.TheproposedsurfacewatermonitoringplanwillnotsampleattheappropriatetimesorlocationsnecessarytodetectimpactstotheHeartRiverfromminingatSHLM.TheApplicationprovidesnoevaluationoftheamountofexpectedHeartRiver
baseflowdepletionthatwillbeinducedbyactiveminedewatering.Neitherdoesitcontainanevaluationoftheeffectofdischargeofcontaminatedgroundwateronpost-miningwaterqualityintheHeartRiver.TheApplicationshouldbedenieduntilthesurfacewatermonitoringplanrequiresmonitoringintheHeartRiverattimesandlocationscapableofdetectingdepletionofbaseflowduringmining,anddischargeofcontaminatedgroundwaterpost-mining.Wethereforerequestmodificationoftheproposedmonitoringprogramsandaugmentationofthebaselinemonitoringsubmitted,orrejectionoftheApplicationbasedonthelackthereof.
ImpactstoGroundWaterQuantity
ThetextdescribesaconeofdepressionthatwillresultfromdewateringtheDCoalandoverlyingunitsthatwillextendtothedepthofexcavation(bottomoftheDCoal)andclaimsthattheextentofsignificantdrawdownwill“likelybewithinonemileoftheminepits”.Noexplanationofhowthisestimatewasdevelopedisprovided.Withdrawalofgroundwaterdoesmorethansimplycreateaconeofdepression.Itreducestheactualquantityofgroundwaterwithintheareaofimpact
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anditchangesthedirection(s)ofgroundwaterflow.Eachofthesemodificationstothehydrologicbalancehastheabilitytomateriallydamagethehydrologicbalanceorimpactgroundwaterusesandusers.Adetailedevaluationofthedecreaseingroundwaterquantity,includingthedistancethattheconeofdepressionwillextendpastthepermitarea,aswellastheeffectsthatthewithdrawalofgroundwaterwill
haveontheSouthHeartRiver,otherareasurfacewaterbodies,andhuman,animal,andenvironmentalusesandusersofthegroundwaterisneededtoadequatelydeveloptheProbableHydrologicConsequencesoftheSHLM.
ImpactstoGroundWaterQuality
TheApplicationstatesthat,“BasedonliteratureandobservationsatotherNorthDakotacoalmineoperations,TDSconcentrationsmayincreasetwotothreetimesrelativetopre-miningconditions”.Thisistheonlyquantificationprovidedfortheexpecteddegradationofgroundwaterquality,eventhoughtheoverburdentestingperformedbytheApplicantsconfirmsthatmetalswillbeleachedfromtheoverburdenandcriticalsoilchemistryproperties,e.g.,SAR,maybeunacceptable.No
evaluationorplanstomitigatetheseimpactsareidentified.Nostandardsortriggerlevelsthatcauseactionstobetakenbeforematerialdamagetothehydrologicbalanceoccursoutsidethepermitarea,nostandardsortriggerlevelsthatcauseactiontominimizedamagewithinthepermitarea,andnospecificactionsareincludedthatwouldbetakenwhentrendsindicatematerialdamageislikelyoutsidethepermitarea.Thetimeperiodoverwhichgroundwaterqualitywillbeimpactedisdescribedasbeingtemporary,witheventualequilibriumwaterqualityconditionsbeingsimilartopre-miningwaterquality.Whatisnotmentionedisthattheactiveminelifeisplannedtobe30yearsandthatreturningthegroundwatersystemtoany
equilibriumchemicalconditionswillrequiremanydecadesafterthat,letalonereturningittoconditions“similartopre-mining.”Ineffect,thegroundwaterresourceoftheSHLMmineareaandtheSouthHeartRiverwillremainimpactedforseveralgenerationsofNorthDakotans.AcompletediscussionofProbableHydrologicConsequencesmustidentifytheexpectedflowdirection,flowrates,contaminantconcentrations,contaminantfatesandseasonalvariationthereofthatareexpectedasaresultofmining.Itmustthen,inconjunctionwiththeHydrologicReclamationPlan,identifystepstobetakentomitigateimpactstooff-sitegroundwaterresourcessufficientlytopreventmaterialdamagetothehydrologicbalanceoutsidethepermitarea.Noneofthisisinthis
Application.TheApplicationisdeficientandtheagencyisrequiredbylawtodenythepermituntiltheminingplanactuallyaddressesprotectionofthequantityandqualityofgroundwater.
AlluvialValleyImpacts
IntheApplicationasaccepted,ApplicantshavenotsubstantiatedtheirclaimsthattheSiteisnotanalluvialvalleyfloor.Objectorsrequestacopyofanyinformation
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submittedtothePSConthequestionofalluvialvalleyimpacts,andsubmitthefollowingobjectionstotheApplication.Thestructureoftheminingoperation(seeApplicationFig.3.1-1)appearsdesignedtoallowconvenientaccesstothefirststrippingandminingareawithrelatively
loweroverburdentocoalseamratio(easternhalfofPitNo.1inSection22)bysitinghaulroad,holdingponds,andminingoperationsbuildingswithintheSouthBranchHeartRiver(SBHR)alluvialvalley.Infurtheranceofthisgoal,mineoperatorshave(a)soughtadeclarationfromtheNDPublicServiceCommission(PSC)thattheSBHRalluvialvalleyisnotanalluvialvalleyforlegalcoalstripminingpurposes,and(b)bypositioningtworelativelysmallproposedminingareas(No.3,2038-2040,andNo.4,2040-2042)tothesoutheastsideoftheSBHRalluvialvalley,expandingthecontiguousproposedpermitareatotheoppositesideofthevalleyfromthemuchlargerproposedminingareas,No1(2014-2021)andNo2(2021-2038).OfparticularnoteisamassivehaulroadproposedtobebuiltthroughtheSBHRalluvialvalleywithonesectiontightlywedgedbetweenportionsoftheSBHR
andtheeasternedgeofproposedPitNo.1,attheedgeofwhichminingoperationsareslatedtobegin.Aspartofstripminingoperations,watersflowingintotheactivepitfromsurfaceandgroundsourcesareremoved(dewatered)toholdingpondsforsettlingofsuspendedsolidsandthendischargedtosurfacewaters.ProposedPondsNo.1andNo.2arelocatedwithintheSBHRalluvialvalleyinSection22withshortdischargeditchestotheriver.Qualityofwaterspumpedtoholdingpondsfrompitdewateringcanbeinferredfromanalysesofgroundwaterinbothoverburdenandthe“D”coalstratumtargeted
formining(Section2.5.2.5).Overburdenwaterswerevariableintotalsaltload(measuredaselectricalconductivity,EC),buttendedtohaveelevatedsodicity,meaningthattheanionicratioofsodiumtocalciumplusmagnesium(measuredasthesodiumadsorptionratio,SAR)iselevated.Watersincoalstratawerehighlyvariable,butmanysamplesshowedelevatedECandSARvalues.Thequalityofsurfacewatersresultingfromcontactwithstripminedoverburdenmaybeinferredfromleachingtests(Section2.3.4.9):
• 25%ofsamplesshowedSARvaluesgreaterthan12,anelevatedbenchmarkvalueindicatinglackoffitnessforirrigation,animal,orhumanuse;
• Totaldissolvedsolids(TDS)ofmultiplesampleswereaboveEPAsecondarydrinkingwaterstandards;
• Multiplesampleshadmaximumleachateconcentrationsofaluminum,iron,andmanganeseaboveEPAsecondarydrinkingwaterstandards;
• RelativetoNDchronicaquaticlifestandardsdefinedinthestateAdministrativeCode,severalmaximumleachatetestsexceededsetlevelsforthefollowingelements:cadmium,copper,lead,mercury,nickel,selenium,andzinc;and
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• 66outof122leachatetestsyieldedarseniclevelsaboveEPA’sdrinkingwatermaximumcontaminantlimit(MCL).
Asnotedabove,proposedholdingpondsaredesignedtoreceivepitwatersandactivepitzonerunoffwaters.Aftersedimentationiscompleted,dischargewill
occur.Asnotedinthedraftpermitnarrative,inordertocomplywithwaterqualitystandards“…ponddischargewaterwillbedilutedwithothersources.”Injudgingenvironmentalrisksfromwatercontroloperationsconductedaspartofcoalstripmining,oneimportantconsiderationistherelativehydraulicconductivitiesofvarioussoilandlandtypes.Unminedalluviallands,suchastheSBHRalluvialvalley,haverelativelyhigherhydraulicconductivity,andholdingpondsmayingeneralbe“leaky”unlessprovisionsaremadeintheirconstructiontoachieverelativeimpermeability.UnmineduplandsintheSouthHeartareahavegenerallylowsubsoilpermeabilityduetodominancebysmectiticclaymineralogy,howeverpermeabilityisconferredbysuchfactorsasdeeprootpenetrationandsoil
animalaction.Sodicminespoils,thetypethatwouldpotentiallybecreatedbytheproposedminingactivity,arerelativelyimpermeable,butaresubjecttocatastrophicpipingerosionthatcanemptywaterimpoundmentsveryquickly.
ProbableHydrologicConsequencesandCumulativeHydrologicalImpact
Assessment
Thepermittingagencyisrequiredtoconsiderthehydrologicimpactsofall anticipatedmininginacumulativehydrologicalimpactassessment,orCHIA.NDCC§38-14.1.21(3)(c).The7000acrefootprintofthesiterezonedforminingraisesthepossibilitythattheminingApplicationisincompleteinscopeanddoesnotevaluatethefullimpactsofminingactivitiescontemplatedbyApplicants,includingthosethat
mayaffectfederalcoalatthesite.TheApplicationdescribesconsiderablecharacterizationofthecurrentflowandchemistryoftheHeartRiver,itstributaries,andotherpondsspringsandseeps.ThecurrentHeartRiverisdescribedasagainingstreaminthevicinityoftheproposedmine,meaningthatgroundwaterdischargestoriversedimentsandaddswatertoriverflow.Section2.6.3describesflowintheHeartRiverashavinganaveragebaseflowof1.1cubicfeetpersecond(cfs),excludingthemonthsofMarchandAprilwhenstreamflowisdominatedbysnowmelt.TheeffectthatdewateringoftheOverburden–D
CoalaquiferwillhaveonflowintheHeartRiverinnotincludedasaPHC.DevelopmentoftheconeofdepressionintheOverburden–DCoalaquiferwillreducegroundwaterheadinthataquiferuptoamile(unsupportedestimate,seecommentonSection2.5.3.1)awayfromthemine.ThelocationoftheHeartRiverimmediatelyadjacenttotheentirenorthernpermitboundary,andwithintheconeofdepression,willreducegroundwaterdischargetotheHeartRiverandpotentiallyturnseveralmilesoftheHeartRiverintoalosingstream.Alosingstreamisonein
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whichwaterisleavingthestreamtorechargegroundwater.LossofbaseflowintheHeartRivertogroundwaterrechargeinducedbyminedewateringhasthepotentialtosignificantlyreduceandpossiblyeliminateflowinlongstretches(miles)oftheHeartRiverneartheSHLMandimpactdownstreamwaterrightswithrespecttoquantity,timing,andquality.Interactionbetweenthegroundwaterandsurface
waterflowsystemsarenotevaluated,norevenacknowledged,asPHCsoftheproposedSHLM.TheApplicationshouldbedenieduntiltheeffectofdewateringtheOverburden-DCoalAquiferonflowintheHeartRiverisfullyevaluated,quantified,andunderstood.Equilibriumconditionswillslowlyredevelopinthereclaimedoverburdenaquiferonceminingiscompleteandthedewateringpumpsareturned-off.GroundwaterdischargefromthereclaimedoverburdenaquifertotheHeartRiverwilltransportcontaminantsintotheriverthat,asdiscussedpreviously)hasverylowbaseflowduringmuchoftheyear.DirectdischargeofcontaminatedgroundwaterintotheHeartRiverisnotevaluated,norevenacknowledged,asaPHCoftheproposed
SHLM.TheApplicationshouldbedenieduntilthepost-miningeffectofdirectdischargeofcontaminatedgroundwaterintotheHeartRiverisfullyevaluated,quantified,andunderstood.
HydrologicalDamagePreventionRecommendations
AlargerbufferzoneshouldbeconsideredbetweenpermitboundariesandthealluvialvalleyoftheSouthBranchHeartRiver(SBHR)tothewestsideofthiswaterbody.WebelievethatproposedPitsNos.3and4,whichappeartobeservingasmerelandpositioners/holders,shouldbeabandoned.PermitboundariesshouldalsobedrawnbackfromtheHeartRivertothenorthofproposedPitNo.2inSections9and10withabufferzonealsoestablished.Alluvialvalleysandthewater
coursestheybeararetooimportanttolocalagriculturetobepollutedanddamagedbymassivehaulroadsandminingsupportfacilities.Sedimentationpondsholdingpitwatersandminespoilrunoffmustnotbesitedinsuchamannerthatthereisappreciableriskoftheircontentscontaminatingalluvialwatercourses.DownstreamusesintheHeartRiverdrainage,whetheranimalorhuman,currentorfuture,mustbeprotectedfrompollution.BetterandsaferdesignofholdingpondsmustberequiredofApplicants,includingsitingpondsawayfromdrainagewaysthataresubjecttofloodingandcarefulreviewofponddesigntoensuresafetyunderstressofhighervolumestorms.Asageneralcomment,thewholesystemofmanagingsurfaceandgroundwaterin
coalstripminingneedstoberethought.Pitdewateringandrunoffcapturepondsshouldbekeptseparatedifwaterqualitydifferencesinthesetwotypesofwatercanbeshowntowarrantit,asappearslikely.ThePSCshouldactivelystudyandpromotetheconceptofpitwatersbeingreintroducedtocoalseamaquiferstotheextentthatthiscanbeshowntolowerenvironmentalriskswithoutraisingcountervailingrisks.Runoffandsedimentcontrolpondsshouldbedesignedtofeeddesignedwetlandareas,spreadingwatersothatevaporationismaximized,wildlifeissupported,anddownstreampollutantriskislessened.
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ThekindofproblemsandcontradictionsuncoveredintheexaminationoftheproposedreclamationofPitNo.1indicatetheneedforthoroughredesignofthebasicplanforthisarea.Perhapstheplancouldstartwithalongerinitialcutalonganortheast-southwestaxislocatedmorenearthemiddleofthepitarea.Shapedspoil
dumpsandsurfacematerialsstockpilescouldbelocatednearertonorthandsouthboundariesthaninthepresentpermitdraft.Higherriskdewateringpondscouldbelocatedupgradientofactivecutandspoilingormaterialpilesformaximumriskreduction.Longercutsorientedonamorenortheast-southwestoreast-westaxisthanthepresentplanwouldcutacrosslocalareaswithagreaterdiversityofreclamationdepthrequirementsandsuitablerespreadmaterialdepthsthanthecurrentplan,perhapsallowinggreateropportunityforshorteningstripping/stockpiling/respreadingcycles.Cutting/spoilingwouldproceedtotheeastandthesouthortoboththeeastandthewest.SuchaplanwouldaffordmuchgreaterprotectiontotheSBHRalluvialvalley.
OtherImpactsofMiningActivity
UraniumRelease
LocalresidentshaveexpressedconcernaboutthepresenceofburieduraniumattheSiteandthepotentialpublichealthimpactsofconstantexposuretoairborneuraniumreleasedbyminingactivities.WerequestinclusionintheApplicationofaliteraturesearchaboutthepublichealthimpactsofuraniumreleasedduringsurfaceminingactivities,andproposalsformitigationofanyknownrisks.
PaleontologicalResources
A100footavoidancezonearoundareaswithknownpaleontologicalorarcheologicalvalueappearsinadequateinlightoftheheavyindustrialactivity–blasting,hauling,etc.-tobeconducted.FossilsandartifactshavebeenrecoveredatandneartheSite.Werequestdocumentationsupportingthe100footavoidancezoneanddemonstratingthatitwillbeprotectiveoftheseresources.
ClimateImpacts
TheproposedproductionoftheSouthHeartLigniteMineis2.4milliontonsperyearoflignitecoal,whichwillproduceroughly218.8poundsofCO2permillionBtuwhencombusted,2barringuseofCO2capturetechnologiesthathavenotyetproveneconomic.TheenergycontentofligniteconsumedintheU.S.averages13million
Btuperton.Basedonthataverage,SouthHeartlignitewillreleasemorethan3milliontonsofCO2peryear.Stripminingwillalsoreleasemethane,afarmorepotentgreenhousegasthanCO2.TheMinethereforehasthepotentialtobethesourceofannualgreenhousegasemissionsroughlyequivalenttothoseofNepal,orapproximately.01%ofcurrentannualUSgreenhousegasemissions,forthenext30
2http://www.eia.doe.gov/cneaf/coal/quarterly/co2_article/co2.html
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years.Thisisanontrivialsourceofgreenhousegasemissionsthatshouldbeconsideredinthepermittingdecision.Werequestsuchananalysis.
ReclamationIssues
HydrologicReclamationPlanIsInadequate
Federalandstatesurfacemininglawsexplicitlyrequireprotectionofthehydrologicbalance.Damagetothehydrologicbalancemustbeminimizedwithinthepermitarea.Outsidethepermitarea,materialdamagetothehydrologicbalanceisprohibited.TheProbableGroundWaterHydrologicConsequences(Section2.5.3.2)areincompleteandarenotadequatelyaddressedintheGroundWaterHydrologicReclamationPlan(2.5.3.3).Interactionsbetweengroundwaterandsurfacewatersystemshavebeenparticularlyneglected.Inadequatelyaddressedgroundwaterhydrologicconsequencesinclude:
• TheconeofdepressioncausedbydewateringoftheOverburden–DCoalaquiferwilldiminishandpotentiallyremovegroundwaterfromalluvialandOverburden–DCoalaquifersinareasonandadjacenttothepermitarea.TheHydrologicReclamationPlandoesnotaddresshydrologicchangestotheseaquifersorprotectionofthehydrologicbalanceoutsidethepermitarea.TheHRPmerelycommitstoprovidealternativewatersuppliesforusersoftheresource.ThereisnoactivitydescribedintheHRPtopreventreductioningroundwaterquantityinareasofftheminepermitunderanticipatedminingoperationsandnothingdescribedintheeventthatthemonitoringprogramshowsthatimpactsfromminingaregreaterthanthoseanticipatedinthePHC. • TheconeofdepressioncausedbydewateringoftheOverburden-DCoalaquiferwillreduceflowonandaroundthepermitareainthealluvialaquifersassociatedwiththeHeartRiverandSouthBranchHeartRivers.ThisreductioningroundwaterflowhasnotbeenaddressedineithertheProbableGroundWaterHydrologicConsequencesortheGroundWaterHydrologicReclamationPlan.
• Groundwaterflowduringactiveminingwillbeprimarilytowardtheactivepit.Oncedewateringisstoppedflowdirectionswilleventuallyreestablishequilibriumandmigrationfromtheminedareawillbegin.TheProbableHydrologicConsequencesacknowledgethatdowngradientgroundwaterqualitywillbeimpactedbymining,butwithnoassessmentastothedegree
ofimpact.TheGroundWaterHydrologicReclamationPlanidentifiesnoactionsaspartofminingoperationstominimizedamagetothehydrologicbalancewithinthepermitareaandnoactionstopreventmaterialdamagetothegroundwatercomponentsofthehydrologicbalanceoutsidethepermitarea.TheHRPforgroundwaterissimilarlysilentonfurthermeasuresthatwouldbeavailableaspartofthereclamationplantoremediateimpactsweredatafromthemonitoringplantoindicategroundwaterimpactsbeyondthoseprojectedinthePHC.
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TheProbableSurfaceWaterHydrologicConsequences(Section2.6.5)areincomplete.NoSurfaceWaterHydrologicReclamationplanisprovidedwiththePermitapplication.Unaddressedsurfacewaterhydrologicconsequencesinclude:
• TheconeofdepressioncausedbydewateringoftheOverburden-DCoal
aquiferwillreducebaseflowintheoff-permitHeartRiverandtheon-permitSouthBranchHeartRiver.Reductioninbaseflowinthesestreamsduetodewateringisnotaddressednorquantifiedinthepermitapplicationasaprobablehydrologicconsequence.Thepermitapplicationissimilarlysilentwithrespecttoremedialplansaspartoftheproposedminingoperationsorcontingentplansintheeventofunanticipatedimpactsthatbecomedocumentedindatafromthesurfacewatermonitoringplan.
• SurfaceWaterProbableHydrologicConsequencesincludedintheapplicationdonotincludecontributionofcontaminantsfromgroundwaterthatwilldischargetotheHeartRiverandSouthBranchHeartRiveroncedewateringincompleteandtheminespoilhasrechargedtoitspost-miningequilibrium
levels,levelsthatpresumablywillagaindischargetotheserivers.Theeffectofdischargeofcontaminatedgroundwateronsurfacewaterqualityisneitherquantifiednoracknowledgedintheapplicationasaprobablehydrologicconsequence.Thepermitapplicationissimilarlysilentwithrespecttoremedialplansaspartoftheproposedminingoperationsorcontingentplansintheeventofunanticipatedimpactsthatbecomedocumentedindatafromthesurfacewatermonitoringplan.
SoilReclamationPlanIsInadequate
Theminingandreclamationprocessbeginswithdeterminationofdepthsofdevelopedsoilmaterials(suitableplantgrowthmaterials,SPGM)thataretobe
strippedoffthelandandstockpiledpriortomining(orinfavorablecircumstances,strippedfromonetractoflandandrespreadonanotherareawherestripmining,backfillingandreshapingofoverburdenhasbeencompleted).Topsoilandsubsoilmaterialsarestrippedandstockpiledseparately,anddepthsoftopsoilandsubsoiltobestrippedaremarkedininchesonthesoilsurveymapforeachsoilmappingunit(seeFigs.2.4-2aand2.4-2b).Thetotaldepthsofsoilandsoil-likematerialsthatmustberespreadonanyparticularpieceoflandisdeterminedfromanalysisofthechemicalandphysicalpropertiesoftheoverburdenmaterialandreferencetostandardssetinNorthDakotaAdministrativeCode(NDAC).ParticularlyrelevanthereisNDAC69-05.2-15-
04.Ifthereisaninsufficientdepthofregularsoilmaterials(SPGM)availableatagivenlocation,thenadditionalsuitableoverburdenmaterial(SOBM)mustbestripped,stockpiled,andrespreadaftermining.ThedraftpermithasanestimateofdepthsofadditionalSOBMmaterialthatneedstobeusedfortheentire5-pit,30-yearminingplaninSection3.Calculatedbytwodifferentmethods,thisdepthwaseither1.1feetorapprox.1/3foot.ThefirstareaproposedforproductionisPitNo.1,andwehavemadeanestimatehereofdepths
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ofadditionalSOBMmaterialneededforoperationsinthepitbecauseofinsufficientdepthsofregularSPGMtosatisfyrespreaddepthrequirementsmandatedbyprovisionsinNDAC.First,amapofthelocationsofoverburdensampling(Fig.4.1-10a)wasexamined
alongwiththetabulationofrelevantoverburdencharacteristics(Table4.1-1).Thedraftpermithasindicatedinthistablethatdepthsbetween2.5and10feetarebeingconsideredassourceforSOBM.Eachsampledlocationwasexaminedtodetermineifoverburdeninthisdepthintervalmetprincipalsuitabilitycriteria,whichare:salinity(EClessthan4)andsodicity(SARlessthan10).Anadditionalcriterionwasexamined:saturationpercentage(Sat%),ameasureofwateradsorption.HighSat%hasbeenshowntorendersoilmaterialsundesirableforsupportofplantgrowth,andSat%greaterthan90wasusedhere,withaccountingofsuitabilitybeingmadewithandwithoutthiscriterion.ItwasfoundthatoverburdencharacteristicsoftheeastsideofthePitNo.1area
weresomewhatdifferentfromthoseonthewestsideofthispit,andsoaccountingwascarriedoutseparatelyforthetwoportionsofthepitarea.Foreachoverburdensamplinglocation,thepercentageofoverburdenabove10ft.depththatmetsuitabilitycriteriawasdetermined.DepthsofSPGMdesignatedforstrippingandstockpilingweredeterminedfromthesoilsurveymaps(Figs.2.4-2aand2.4-2b)bysamplingoveragridpatternatapprox.30points.DepthsofoverburdenbelowSPGMstrippingdepthsthatmetsuitabilitycriteriawerethendetermined.Finally,requiredtotaldepthsofsoilrespreadmaterial(SPGMplusadditionalmaterial(SOVM))weretabulatedforeachsamplinglocationinPitNo.1fromFig.4.1-10a.FortheeasternhalfofPitNo.1,theaveragetotaldepthofsoilandnearsoil
materialsrequiredtobestrippedis3.50ft.Theaveragedepthofsoilmaterials(SPGM)designatedfromsoilsurveyasavailableis2.18ft.Thisleavesadifferenceof1.32ft.thatrequiresadditionalsuitableoverburden(SOVM).Ofoverburdenmaterialatdepthslessthan10ft.ontheeastside,wecalculatethat43.8%meetsthesuitabilitystandard,whichleavesadepthof3.42ft.ofSOVM,morethanenoughtomeettheneedfor1.32ft.OnthewestsideofPitNo.1,theaveragetotaldepthofsurfacematerialsrequiredtobestrippedis3.75ft.,andtheaveragedepthofSPGMavailableis1.51ft.,leavingadifferenceof2.24ft.needingtobesupplied.However,bythemostrealisticsetofsuitabilitystandardsthatincludesthe90Sat%cutoffcriterion,only6.3%ofthe
overburdenabove10ft.depthbutbelowSPGMissuitable(18.8%issuitablewithouttheSat%criterion).Thismeansthatonly0.53ft.ofoverburdenabovethe10ft.depthissuitableforreclamationpurposes,creatinganeedfor1.71ft.ofadditionalSOVMtobebroughtfromtheeastsideofPitNo.1tomeettherespreadrequirements.Thus,thesoilscientific,legal-administrative,andengineeringlogicoftheproposedreclamationplanforPitNo.1requirestheremoval,transport,stockpiling,
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retransport,andrespreadingofsome1,100,000tonsofadditionalsuitableoverburdenmaterial(SOVM)fromtheeastsidetothewestsideofthePitNo.1area(assuminganaveragemoistbulkdensityof1.8gpercm3).Thisistheequivalentof7300150-tondumptruckloadsor20,00044-cubicyardmotortractorscraperloads.IftheSat%criterionisnotusedfordeterminationofoverburdensuitability,
thenapproximately40%ofthisamountofmaterialneedstobetransportedfromtheeasttowestsidesoftheminingarea.Assumingamultiplierof1.5forroadtortuosity,thetotaldistancehaulvehicleswouldtraveltomakeoneaveragelengthroundtripfromtheeastsideofPitNo.1toSOVMstockpilessited(accordingtothedraftplan,Fig.3.1-1)approx.1/2milenorthofthesectionboundaryplusanotheraverageroundtripfromastockpiletothewestsidewouldamountto7.4miles.Thisisallinadditiontoanyoftheotherformsofmaterialstransportinvolvedinmineoperation.Thesefiguresbringoutaproblematiccontradiction.Difficulttoreclaimsodicminespoilsrequiregreaterdepthsofrespreadsoilmaterialstoachieveagivenlevel
ofsoilproductivity.However,areasofNorthDakotainwhichsodicminespoilsarelikelytobegeneratedbyminingtendtohavealowerpercentageofgoodquality,deepertypesoils.Achievingthesoildepthsrequiredbylawwillbecostlyandtheproposedminingplandoesnotbegintoaddressthescaleofreclamationeffortsneeded.Majormodificationstotheplanwillbenecessarytocomplywithstateandfederallaw.WerequestsuchmodificationsorrejectionoftheApplicationinlightofthelackthereof.
NorthDakotaHasaPatternofInadequateContemporaneousReclamation
ItisourunderstandingthatstripminereclamationeffortselsewhereinNorthDakotahavebeenlessthanfullysuccessful,tosaytheleast,inreturninglandtoits
prioruseorabetterone,andinmanycircumstanceshavenotbeencontemporaneous,asrequiredbystateandfederallaw.Thispatterndemonstratesaneedforaheightenedlevelofscrutinyforanynewreclamationplan.Werequestfromtheagencyacomparativediscussionofthesuccessandtimelinessofreclamationeffortsundertakenelsewhereinthestate.
EconomicandSocialImpacts
ImpactstoAgriculture
Asdescribedingreaterdetailabove,significantimpactstosurfacewatersand
alluvialvalleysurfaceandassociatedstreambedgroundwaterswillbefelt.Thesenaturalresourcesareimportanttoareaagriculturebecauseofrestrictedgroundwaterquantityandquality.Currently,cropproducersareundereconomicstressduetovolatilemarketsandescalatinginputcosts.Livestockproducersfacepricecyclesandmarketdominationbyaverysmallnumberofcorporationsempoweredbydecadesoffederalnon-enforcementofthePackersandStockyardsAct.Integratedcrop-animalagricultureoffersapathforwardforproducerstomakeprogressinovercomingproblemsofexternalmarketforcesandinputcosts.
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However,afullydevelopedintegratedcrop-livestocksystemdependsonlocalavailabilityofqualityanimalfeedsuchascornandalfalfa.Inasemiarid,northernlocalareawithrestrictedacreageofhigherqualitycropland,theavailabilityofalluvialvalleylandsbecomesveryimportanttotheeffectivefunctioningofsustainableintegratedcrop-animalagriculture.Werequestananalysisofimpactsto
agriculturepriortoanypermittingdecision.
ImpactstoTourism
Manylocalresidentsrelyinwholeorinpartfortheirlivelihoodsonthe475,000visitorswhocometotheBadlandsandTheodoreRooseveltNationalParkeveryyear.NoseriousanalysishasbeenperformedonthelikelyeffectonthetourismeconomyofamassivestripmineandassociatedprocessingfacilitiesvisiblefromtheapproachtoNorthDakota’smostvaluabletouristsites.Theeffectoftouristsfromotherpartsofthecountrygoinghometotelltalesofdustcloudsblowingacrosstheinterstate,blastingshakingtheearth,andiconicviewscloudedwithfugitivedustcanonlybeimagined.AccordingtoU.S.BureauofLaborStatistics,as
ofDecember2010,miningandloggingtogetheremployedonlyabout12,000NorthDakotans,afigurethatincreased75%inthelastyear.Atthesametime,leisureandhospitalitybusinessesemployedover35,000NorthDakotans,up3%overthelastyear.ThenumberstellusthattourismisbothamuchlargerandamuchmorestablesourceofemploymentforNorthDakotans.Tocompromisethestate’slargesttouristattractionforthesakeofaminingfacilityiseconomicallyfoolishindeed.Werequestananalysisofimpactstotourismpriortoanypermittingdecision.
ImpactsonLocalCommunity,Infrastructure,SocialServices
JobimpactsclaimedbyApplicantsareexaggerated.StatisticsprovidedbytheCityofDickinsonindicatethatmining,quarrying,andoilandgasextractiontogetheremployedonly11%oflocalmenfrom2005to2009,andonly3%statewide.WhilethepovertyrateintheDickinsonareahoversaround10%,theinfluxofout-of-stateworkersforthefossilfuelextractionindustryhascausedhousingpricestoshootupinthelastdecade.Themedianpriceofalocalhouseorcondoin2000was$70,500,whilein2010themedianpricewas$182,000.Thephenomenonhasbecomeevenmorepronouncedinthelastyear.Mediangrossrentin2009was$532,butcurrently,atatrailerparksiteinBelfield,FEMAcabinsarerentingfor$1200plusutilities.InthegreaterDickinsonarea,includingSouthHeart,thereisashortageofhousing,rentalunits,anddaycareservices.
Socialservicesandpublicschoolsarealsostrainedbyincreaseddemand,includingaquicklygrowingspecialneedspopulationthatisespeciallycostlytolocalschooldistricts.Thelocaltaxbaseisnotgrowingquicklyenoughtoprovidetheinfrastructureassociatedwithasuddenboom.Anotherwaytosaythesamethingisthattheoilandgasindustryisnotbringingenoughmoneyintothecommunitytopayfortheservicestheindustryanditsemployeesrequire.WeseelittleindicationthatthelocalcommunitywouldprofitsufficientlyfromtheMinetocounterbalance
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thesocialinfrastructureneedstheminingoperationwillcreate.TheApplicanthasofferednoanalysisofthehousing,educational,andsocialservicesneedslikelytobecreatedbytheminingoperation,noranydiscussionofhowsocialinfrastructurerequirementswillbepaidfor.Wethereforerequestsuchananalysispriortothepermittingdecision.
CoalValueIsOverestimated
If,asseemspossible,theproposedcoal-to-hydrogen-to-electricityprojectprovesnottobeviable,thentheMinewillserveasasourceofexportcoalinregional,national,andperhapsinternationalmarkets.Theeconomicsofthisscenarioareweak.AccordingtoGTLEnergy’sownpublishedresultsforitscoal-dryingprocess,driedligniteisnotcompetitivewithPowderRiverBasincoal.EvenwiththeGTLEdryingprocess,lignite’senergyvalueismerelyonparwithorslightlyhigherthanPRBcoal,whilethecostpertonforligniteremainsmorethan50%higher.Asignificantadditionalcost–notpubliclydisclosedtodate,asfaras
weareaware–islikelyalsoassociatedwiththedryingprocess.InmarketcompetitionwithPRBcoal,SouthHeartlignite,evendried,willbefarmoreexpensiveonaperBTUbasisandthereforeuncompetitive.Thisisanimportantreasontoensuretheviabilityoftheproposedgasificationplant,orareliablemarketforGTLE’sdriedlignite,beforeapprovingtheMineorinvestinganymoretaxpayerdollarsinwhatmaybealosingproposition.GTLEnergyDryingProcessResults3Typeofcoal Original
BTUsReductionofmoisture
IncreasedBTUsby%
FinalBTUValue
Average2009
costpershortton4
NDLigniteI 6000 71% 53% 9200 $19.61NDLigniteII
6600 67% 42% 9400 $19.61
PowderRiverBasin
8600 67% 25% 10800 $12.49
Economic&TechnicalFeasibilityofCoalProcessingPlansAreQuestionable
WeobjecttotheApplicationinpartbecauseitisbasedonthedeveloper’sunsupportedassertionsthatacoal-to-hydrogenfacilitywillbefeasibleattheSiteandaddvaluetowhatisotherwiselow-valuenaturalresourceextractionthatwillbeanetlosstothelocaleconomyandourqualityoflife.
3http://www.gtlenergy.com.au/technology/technical-results.html4http://www.eia.doe.gov/aer/txt/ptb0708.html
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The175MWcoal-to-hydrogen-to-electricityfacilitycontemplatedintheSouthHeartEnergyDevelopment,LLC(SHED)letterofintentfiledDecember13,2010withthePSCisonlythelatestinaseriesofpie-in-the-skyideasfloatedbyGreatNorthernPowerDevelopment(GNPD)anditsvarioussubsidiaries,whoseidentitiesseemtoshiftasfrequentlyasitsprojectvisions.Thefirstletterofintent,dated
August18,2005,contemplateda500MWlignite-poweredelectricgeneratingstationatthesite.ThenonJanuary23,2008,anotherLOIenvisionedacoal-to-syntheticnaturalgasfacility.TheonlyconsistentthingsabouttheselettersofintentaretheSouthHeartsiteandthelackofanytechnicalspecificationsorfinancingdetails.Atthispoint,theonlyprovenfeasibleprojectisalignitemine.Thereislittleinformationcurrentlyavailableaboutthepollutionprofileofproposedminemouthfacilities.Wearenotawareofanyanalysisofthepotentialeconomicimpactofairqualityregulationsanticipatedtotakeeffectpriortofinalpermittingforfacilitiesproposedattheminesite,whichcouldpotentiallyrendertheproposaluneconomic
duetotheunacceptablyhighcosttopublichealthandtheenvironment.
ProceduralandEthicsIssues
OmittedAnalysisofBLMUnsuitabilityDeterminationandFederalCoalImpacts
TheApplicationprovidesinsufficientinformationabouttheMine’sprobableimpactsonfederalcoalandadjacentlanddesignatedbyBLMasunsuitableforcoalmining.AMarch3,2011letterfromtheBureauofLandManagement’sPhillipPerlewitztoJimDeutschstates:
UnleasedfederalcoalliesadjacenttoproposedminingoperationsinT139N,R98W,Sections14,20,28,and34.Itwasnotdiscussedinthepermitapplicationhowtheoperatorwillpreventthefederalcoalbearingformationsfrombeingwasted,damaged,ordegradedwhentheproposedminingoperationsapproachtheboundarylinesadjoiningfederalcoal.Thecurrentminingplanofoperationscannothinderthefutureminingoffederalcoal.ItisBLM’sdeterminationthatthisdiscussionbeincludedinthepermitapplication.
Withthisletter,BLMhasdeterminedthattheApplicationisincomplete.ObjectorshaverequestedinseparatecorrespondencethatthePSCdeclaretheApplicationincompleteinlightofBLM’sposition.TheApplicationisincompleteforthisand
manyotherreasons.ItisunclearwhetherornotBLMisawarethatGTLEnergy’sminemouthcoalprocessingplanthasalreadybeenconstructedatopfederalcoalresourcesandwhatimpactthisfactmayhaveonthelegalityofaminingpermit.InadditiontothemodificationrequiredbyBLM,werequestafullanalysisofimpactsonareasdesignatedunsuitableforsurfacemining,andfurtheropportunitiesforpubliccommentandhearingwhentheseanalyseshavebeensubmittedtothePSC.
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CorporateDisclosure
Theuseofnewlyformedcorporateentitiesmayinsomecasesobscuredevelopers’pastSMCRAviolationsthatshouldbealegalbarriertopermittinganewmine.Becausesomanynewlyformedentitiesarepartiestotheproposeddevelopment,werequestthatthePSCrequireallpartieswithownershipinterestsintheMineto
disclosefullyanyotherminingownershipinterests,pastorpresent,nomatterwhatthecorporateorpersonalformofownership.
GTLEnergyCoalDryingPlantIsaMinemouthFacilityImproperlyExcludedfrom
theApplication
BeginninginJuly2008,GTLEnergy(GTLE)hasrepeatedlyassertedinfilingsbeforethePSCthatitsSouthHeartcoaldryingplantisnotaminemouthfacilityandthereforeshouldnotbeevaluatedaspartoftheSouthHeartmineapplication,asfederalandstatelawwouldotherwiserequire.InspiteofthePSC’sjurisdictionalfindingsinGTLE’sfavor,GTLE’sownfilingsconfirm:
AftertheSouthHeartMinehasbeenpermittedandisinoperation,amajorityofthecoalwilllikelybesuppliedbythatmine.SHC(SouthHeartCoal)isanentityownedandcontrolledbyassociatesofGreatNorthernPowerDevelopmentLP(GNPD)andAlliedSyngasCorporation(Allied).SHCwillbeseekingacoalminingpermitfromtheNorthDakotaPublicServiceCommissionfortheSouthHeartMine.CoalwillthenbesuppliedtotheplantbySHC.
RepresentativesofGTLEnergyhavestatedinpubliconseveraloccasions,includinginmeetingswithBLM,thattheyplantomovetheircoal-dryingplanttothe
minemouthassoonasthemineisoperational.Theplantisclearlyintendedtobeacoalpreparationplant,eitherforon-sitecoaluseorforshippingofSouthHeartcoal.WeaskthatthePSCrevisititsdecisionthattheGTLEplantisnotaminemouthfacilityandrequireanalysisofthisfacilityaspartoftheApplication.
PSCCommissioners’ConflictsofInterest
Inthelastthreeyears,CommissionersCramerandKalkhavetogetheracceptedcampaigncontributionsfrompartieswithdirectfinancialinterestsinthedevelopmentoftheSouthHeartmineandadjacentfacilitiestotalingatleast$16,650.Onecontributor,CorbinRobertson,themanagingpartneroftheentitythatownsGreatNorthernPowerDevelopment,ofwhichSouthHeartCoalisasubsidiary,
isthesourceof$15,800ofthosefunds.Thesearesignificantsumsincampaignswhosetotalelectionyearcontributionswere$174,772(Cramerin2010)and$159,836(Kalkin2008).PartieswithadirectfinancialinterestintheproposedSouthHeartdevelopmentmadecontributionsinthelastthreeyearsequaltoatleast6.3%ofCramer’s2010campaigncontributionsand3.4%ofKalk’s2008contributions.
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ContributionstoCramerCampaignbySouthHeartFinanciallyInterestedParties:
ContributingParty NatureofInterest ContributionAmount
Date
BrianBjella,
Bismarck,ND
CounseltoGTL
Energy
$600 10/13/2010
CorbinRobertsonHouston,TX
Managingpartner,QuintanaCapitalGroup,ownerofGreatNorthernPowerDevelopment.ApplicantisasubsidiaryofGNPD.
$4800 9/7/2010
RobertFrench,
Wellington,COGTLEnergyCEO $250 8/25/2010
CorbinRobertson Seeabove $2500 8/6/2009
BarbaraRobertson SpouseofCorbinRobertson
$2500 8/6/2009
CorbinRobertson Seeabove $500 8/14/2008
ContributionstoKalkCampaignbySouthHeartFinanciallyInterestedParties:
ContributingParty NatureofInterest Contribution
Amount
Date
CorbinRobertson Seeabove $500 5/1/2009CorbinRobertson Seeabove $5000 8/24/2008
WebelievethatthesecontributionsbypartieswithdirectfinancialinterestsintheSouthHeartdevelopmentcreateconflictsofinterestforCommissionersCramerandKalk.WethereforerespectfullyrequestthatCommissionersCramerandKalkrecusethemselvesfromanyfurtherdeliberationonissuesrelatedtotheproposeddevelopmentatSouthHeart.
ConclusionThedraftpermitplanfortheMineisdeeplyflawedandmustnotbeacceptedbythePSC.Initspresentform,theplanappearsdesignedtomaximizeoperationalconveniencetothecorporateoperatorswhileforcingvariouspublicintereststobearenvironmentalrisksandcostsofnoxiousexternalities,includingdamagetothelargerlocaltourismindustry.
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Forthereasonsoutlinedinthesecomments,webelievethattheproposedMinewillhaveanetnegativeimpactontheSouthHeartcommunity,thatthemanyimpactshavebeeninadequatelyanalyzed,thatproposedmitigationsareinadequate,andthatremediationwillbeinadequatetorestorethelandtoitscurrentuseandvalue.WeaskthePSCtorequireApplicantstosubmittheadditionalinformationrequired
byapplicablelawandoutlinedinthesecomments,toprovidefurtherinformationrequestedofthePSC,toprovidefurtherpubliccommentandhearingopportunitieswhenrequestedinformationhasbeensubmitted,andultimatelytorejecttheApplication,fortheprotectionofNorthDakotans’health,economicinterests,andirreplaceablenaturalresources.Sincerelyyours,MaryHodellNeighborsUnited1189027thSt.SW
DickinsonND58601CarrieLaSeurPlainsJusticeP.O.Box1398Billings,MT59103NathanMillerNationalParksConservationAssociationMidwestRegionalOffice8S.Michigan,Suite2900
Chicago,IL60603WaydeSchaferDacotahChapterofSierraClub311EastThayer#113Bismarck,ND58501MarkTrechockDakotaResourceCouncilP.O.Box1095Dickinson,ND58602