Air Permit Extended for Power Plant
By Gransbery, Jim
The developer of a proposed power plant in its air-quality permit from the Montana Department of Environmental Quality.
The extension comes with stipulations for tighter emission controls for sulfur dioxide, particulate matter and mercury based on the best available control technology.
The agreement was reached after an exchange of letters between Dave Klemp, the DEQ’s air permitting supervisor and Steven Wade, a Helena attorney representing the Bull Mountain Development Co., which proposes twin, coal-fired generating plants about 16 miles south of Roundup. The Roundup Power Project would include two 390- megawatt electrical generators.
The company agreed that sulfur emissions from each power plant boiler would not exceed 0.10 pounds per million Btu burned based on a 30-day rolling average; particulate matter emissions would not exceed 0.012 pounds per million BM and mercury emissions would not exceed 0.0000015 pounds per million Btu based on a 12-month rolling average. A Btu, or British thermal unit, is a measure of the heat content of the coal.
Bull Mountain Development Co. said the agreement did not preclude it from submitting an appropriate application to the department for limits more reflective of the best available control technology if it becomes clear that such change is required.
The company is represented by the Helena Law firm of Browning, Kaleczyc, Berry & Hoven.
Meanwhile, the DEQ has told the company it will need a stripor surface-mining permit for the coal seam it mined after breaking into it while clearing the site for the power plant.
In late September, DEQ officials visited the power plant site just east of Montana Highway 87 north of Billings and ordered the company to stop mining the site until it had the proper permit. The company had excavated 37,000 tons of coal that it stockpiled.
DEQ Director Richard Opper said Monday it was his understanding the development company intended to apply for surface mine permit.
“I would expect it would be issued fairly expeditiously,” he said. The law requires public notice and comment periods.
“We expect them to pursue a permit so they can salvage the coal,” he said.
The overall Bull Mountain coal development plan, announced Oct. 1, 2001, envisions a coal mine, an adjacent power plant site consisting of two 390-megawatt coal-fired electrical generators and a short-line railroad to intersect with the BNSF Railway mainline near Broadview to ship coal to customers in the United States and overseas. The power plants are estimated to cost more than $900 million and the railroad is estimated to cost $65 million. The site is about 16 miles south of Roundup. The underground coal mine has been producing coal since early 2004.
John Baugues, the manager and a member of the Bull Mountain Development Co., said Monday afternoon the airquality permit was extended to December 2006.
Because the company had not begun permanent construction at the power plant site by June 12, the DEQ had considered the permit expired, but offered to extend it in return for stricter air- quality standards. At least five legal challenges to the air- quality permit continue in both federal and state courts.
“I would expect activity on the power plant (site) in the next 60 days,” Baugues said.
He said the company did not anticipate the coal seam at the site, but that it was marketable coal. He said he expected a surface- mining permit from DEQ within 60 days. “They said, they would fast- track the permit,” Baugues said.
Lisa Peterson, public affairs coordinator for the DE% said late Monday that 60 days was too short a time frame. “It would not be adequate to meet the requirements of the law,” -she said. “Richard Opper said expeditiously is the best we can do.”
In a related development, Baugues said BMP Investments, Inc. had a new leader.
John M. DeMichiei is the new president and CEO of the company that is operating the underground coal mine.
George Parthemos is stepping down as president and CEO, but remains chairman of the board. DeMichiei brings 30 years of experience in the coal industry.
According to a press release, DeMichiei was chief operating officer for RAG American Coal Holdings, chief operating officer at Cyprus Amax Coal Co. and held various posts within the Mine Health and Safety Administration over a 13-year period.
He holds an MBA from American University, a bachelor’s degree in mining engineering from the University of Pittsburgh and a bachelor’s is governmental relations from Duquesne University, the release said.
Copyright Billings Gazette Nov 08, 2005