[Federal Register Volume 77, Number 121 (Friday, June 22, 2012)]
[Notices]
[Pages 37661-37663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15374]
[[Page 37661]]
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DEPARTMENT OF ENERGY
Amended Notice of Intent To Prepare the Environmental Impact
Statement for a Proposed Federal Loan Guarantee for the Indiana
Gasification, LLC, Industrial Gasification Facility in Rockport, IN,
and CO2 Pipeline; Conduct Additional Public Scoping
Meetings; and Issue a Notice of Floodplains and Wetlands Involvement
AGENCY: Loan Programs Office, DOE.
ACTION: Amended notice of intent.
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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to
expand the scope of an environmental impact statement (EIS) (DOE/EIS-
0429) to analyze the environmental impacts for its proposed action of
issuing a Federal loan guarantee to Indiana Gasification, LLC, (IG) for
the construction and startup of both a proposed coal-to-substitute
natural gas (SNG) gasification facility in Rockport, Indiana, and a
proposed carbon dioxide (CO2) pipeline. On November 12,
2009, DOE issued a Notice of Intent (NOI) to prepare an EIS, titled
``Environmental Impact Statement for a Proposed Federal Loan Guarantee
for the Indiana Gasification, LLC, Industrial Gasification Facility in
Rockport, Indiana,'' to analyze the construction and startup of the SNG
facility. The NOI invited comments on the proposed scope and content of
the EIS. DOE also conducted a scoping meeting in Rockport on December
3, 2009. IG originally intended to capture and sell the CO2
produced during the gasification process to a third party, Denbury
Resources, Inc., (Denbury), which would construct a pipeline to
transport CO2 from the SNG facility in Rockport to storage
facilities or oil fields, where it would be used for enhanced oil
recovery (EOR) operations. In the event a CO2 pipeline was
not constructed by Denbury and there was no other reasonable
alternative to sequester the CO2, the CO2 would
have been released to the atmosphere.
In October 2011, IG requested an increase in the amount of DOE's
loan guarantee for the proposed project to cover additional costs to
incorporate the construction and startup of a proposed 441-mile
CO2 pipeline. This pipeline would transport as liquefied gas
85% to 90% of the CO2 generated at the proposed SNG facility
(approximately 6.4 million tons annually), from Rockport, Indiana,
across Kentucky and Tennessee, to Tinsley in Yazoo County, Mississippi.
At Tinsley the pipeline would connect to Denbury's existing Delta
CO2 Pipeline for distribution of CO2 for eventual
use by Denbury in EOR operations in the Gulf Coast region.
Accordingly, DOE is issuing this Amended NOI to invite Federal
agencies, state and local governments, Native American tribes, other
organizations, and members of the public to submit comments that
identify environmental issues associated with adding the CO2
pipeline to the original project (the SNG facility). DOE hereby invites
public participation in shaping the broadened scope of the ongoing EIS,
now retitled ``Environmental Impact Statement for a Proposed Federal
Loan Guarantee for the Indiana Gasification, LLC, Industrial
Gasification Facility in Rockport, Indiana, and CO2
Pipeline.'' DOE also provides notice of the intent to prepare a
floodplain and wetland assessment. DOE invites those agencies with
jurisdiction by law, or special expertise related to the modified
proposed action, to request cooperating agency status to assist with
the preparation of the EIS.
DATES: To ensure that all of the issues related to this proposal are
addressed, DOE invites comments from all interested parties on the
addition of the proposed CO2 pipeline and expanded scope of
the EIS. Comments must be postmarked or emailed by July 23, 2012 to
ensure consideration. Late comments will be considered to the extent
practicable.
ADDRESSES: Public comments can be submitted by mail or email. Written
comments about the alternatives and potential impacts to be considered
in the expanded scope of the EIS should be addressed to: Dr. Alistair
Leslie, Loan Programs Office (LP-10), U.S. Department of Energy, 1000
Independence Avenue SW., Washington, DC 20585. Please submit one signed
original paper copy. Submission of comments by email to: [email protected] is encouraged due to security processing time required
for regular mail. All comments submitted by mail and email should
reference Project No. DOE/EIS-0429.
DOE will also conduct public scoping meetings at locations along
the proposed 441-mile route of the CO2 pipeline as
additional opportunities for the general public, private-sector
organizations, and Government agencies to provide oral or written
comments about the alternatives and potential impacts to be considered
in the expanded scope of the EIS. The dates, times, and locations of
the these public scoping meetings will be announced in local news media
and on the DOE Loan Programs Office ``NEPA Public Involvement'' Web
site (https://lpo.energy.gov/?page_id=1502) at least 15 days prior to
the date of these meetings. Comments submitted by mail, email, or at
the scoping meetings orally or in writing, including any attachments
and other supporting materials, will become part of the public record
and subject to public disclosure.
FOR FURTHER INFORMATION CONTACT: To obtain additional information about
this Amended NOI, the public scoping meetings, or to receive a copy of
the draft EIS when it is issued, contact Dr. Alistair Leslie by
telephone: 202-287-5620; or email: [email protected]. For
general information on the DOE NEPA process, please contact: Ms. Carol
M. Borgstrom, Director, Office of NEPA Policy and Compliance (GC-54),
U.S. Department of Energy, 1000 Independence Avenue SW., Washington, DC
20585; telephone: 202-586-4600; facsimile: 202-586-7031; email:
[email protected]; or leave a toll-free message at 800-472-2756.
SUPPLEMENTARY INFORMATION:
Background
The proposed SNG facility in Rockport would use gasification
technology with Illinois Basin coal as feedstock to produce raw
synthetic gas (syngas), which would be further processed to produce
pipeline-quality SNG. The facility could produce up to approximately
145 million standard cubic feet of SNG per day. The SNG would be
transported for sale from the SNG facility to one or both of two nearby
natural gas pipelines, the Midwestern Gas Transmission line (3 miles
distant) and/or the ANR Pipeline (4.5 miles distant). IG also proposed
a change in the feedstock in which Illinois Basin coal and up to 49%
petroleum coke would be used as feedstock for the SNG facility.
Approximately 125 individuals attended the December 3, 2009,
scoping meeting in Rockport, with 26 individuals presenting oral
comments and 6 submitting written comments. In addition, during the
public scoping period, DOE received 26 comment documents via mail and
email. Commenters requested that DOE consider other alternatives,
project financial and feasibility concerns, as well as various local
socioeconomic and environmental concerns.
Title XVII of the Energy Policy Act of 2005 (EPAct 2005)
established a Federal loan guarantee program for financing energy
projects employing innovative technologies that ``avoid, reduce, or
sequester air pollutants or anthropogenic emissions of greenhouse
[[Page 37662]]
gases; and employ new or significantly improved technologies as
compared to commercial technologies in service in the United States at
the time the guarantee is issued.'' The two principal goals of the loan
guarantee program are to encourage commercial use in the United States
of new or significantly improved energy-related technologies and to
achieve substantial environmental benefits. In September 2008, the DOE
Loan Programs Office issued a solicitation for coal-based power
generation and industrial gasification facilities. A portion of the
funds made available in the solicitation come under the authority of
the Consolidated Appropriations Act, 2008, Public Law 110-161, which
provides loan guarantee support for advanced coal gasification
projects. The proposed project with the addition of the proposed
CO2 pipeline qualifies under this provision of the loan
guarantee authority.
Purpose and Need for Agency Action
The purpose and need for agency action is to comply with DOE's
mandate under Title XVII of EPAct 2005 by identifying and providing
loan guarantees to projects that meet the goals of the Act. DOE has
determined that the project, comprising the construction and startup of
the proposed SNG facility, meets the two principal goals of Title
XVII--encouraging commercial use of new or significantly improved
energy-related technologies, and achieving substantial environmental
benefits.
Proposed Action
DOE's proposed action is to issue a loan guarantee to IG to support
the construction and startup of the SNG facility and a CO2
pipeline. The proposed construction and startup of the SNG plant was
described in the NOI published on November 12, 2009 (74 FR 58265). The
proposed pipeline would run approximately south-south-west from
Rockport, Indiana, across Kentucky and Tennessee, to Tinsley in Yazoo
County, Mississippi. This CO2 pipeline would be known as the
Denbury Midwest Pipeline. At Tinsley the proposed CO2
Pipeline would connect to Denbury's existing Delta Pipeline to further
transport CO2 to oil fields in the Gulf Coast for use in
EOR.
The 20-inch diameter pipeline would require a typical right-of-way
(ROW) width of 95 feet for construction and a 50-foot wide permanent
right-of-way for operation. Additional temporary work space would be
acquired for the pipeline construction at crossings (i.e., roads,
railroads and significant waterbodies) and where full ROW width topsoil
segregation is required in agricultural areas.
A map showing the proposed pipeline route can be found on the DOE
Loan Programs Web site at https://lpo.energy.gov/nepa/ig-pipeline.pdf.
The proposed pipeline would be co-located alongside existing adjoining
utility corridors for 428 miles of the proposed 441-mile route (i.e.,
for 97% of the route). These adjoining corridors comprise sections of
the existing BP/Amoco Oil Pipeline, Boardwalk/Texas Gas Pipeline,
Shell/Capline Oil Pipeline, Panhandle/Trunkline Gas Pipeline, and
Denbury/Delta Tinsley CO2 Pipeline. The initial northern 13
miles of the proposed pipeline would be outside of existing adjoining
utility corridors. The proposed route would cross 6.1 miles in Indiana,
137.1 miles in Kentucky, 117.5 miles in Tennessee, and 180 miles in
Mississippi. It would pass through the following states and counties:
Indiana: Spencer; Kentucky: Daviess, McLean, Webster, Hopkins,
Caldwell, Lyon, Livingston, Marshall, and Graves; Tennessee: Obion,
Weakley, Gibson, Dyer, Crockett, Haywood, Tipton, and Fayette; and
Mississippi: Marshall, Tate, Panola, Yalobusha, Tallahatchie, Grenada,
Carroll, Holmes, and Yazoo. The proposed route would cross primarily
rural land, of which 52% is classified as agricultural.
The proposed route would cross three federal enclaves: the Clarks
River National Wildlife Refuge in Kentucky, the Obion River Wildlife
Management Area and the Tigrett Wildlife Management Area in Tennessee;
one state administered enclave: the John W. Kyle State Park in
Mississippi; and an existing conservation easement crossing private
land and the Wolf River in Fayette County, Tennessee. It would cross
three Interstate Highways, 19 US Highways, 89 State Highways, 397 other
roads, and 17 rail lines. It would cross several waterways including
the Ohio River, Tennessee River, and Cumberland River, as well as the
Hatchie River and Cypress Creek, both of which are classified as
Kentucky Special Use Waters. This proposed IG-Denbury route is the
preferred alternative. The EIS will also evaluate other reasonable
route alternatives.
Alternatives
In determining the range of reasonable alternatives to be
considered in the EIS, DOE identified alternatives that would satisfy
the underlying purpose and need for agency action. DOE currently plans
to analyze in detail the project as proposed by IG. If appropriate, DOE
would also analyze alternatives to portions of the project that
mitigate impacts to affected resources. Under the no action
alternative, DOE would not provide the loan guarantee for the project
and, for purposes of analysis, DOE assumes the project would not be
constructed.
Notice of Floodplain and Wetland Involvement
This NOI serves as a notice of proposed floodplain and/or wetland
action in accordance with DOE floodplain and wetland environmental
review requirements (10 CFR part 1022). The Draft EIS will include a
floodplain and wetland assessment, and a floodplain statement of
findings will be included in the Final EIS or may be issued separately
(10 CFR 1022.14(c)). Interested parties may comment during the 30-day
scoping period and will also be able to comment on the floodplain and
wetland assessment when the Draft EIS is published. The Final EIS or
record of decision will include a floodplain statement of findings.
Preliminary Identification of Environmental Issues
The following environmental resource areas have been tentatively
identified for consideration in the EIS. This list is neither intended
to be all-inclusive nor a predetermined set of potential environmental
impacts:
Air quality
Greenhouse gas emissions and climate change
Energy use and production
Water resources, including groundwater and surface waters
Wetlands and floodplains
Geological resources
Ecological resources, including threatened and endangered
species and species of special concern
Cultural resources, including historic structures and
properties; sites of religious and cultural significance to Tribes; and
archaeological resources
Land use
Visual resources and aesthetics
Transportation and traffic
Noise and vibration
Hazardous materials and solid waste management
Human health and safety
Accidents and terrorism
Socioeconomics, including impacts to community services
Environmental justice
DOE invites comments on whether other resource areas or potential
issues should be considered in the EIS.
Public Scoping Process
To ensure that all issues related to DOE's proposed action are
addressed,
[[Page 37663]]
DOE seeks public input to define the modified scope and content of the
EIS as described in this Amended NOI, specifically the addition of the
proposed CO2 pipeline to the project. The public scoping
period will begin with publication of this Amended NOI and end on July
23, 2012. Interested government agencies, private-sector organizations,
and the general public are encouraged to submit comments concerning the
content of the EIS related to the addition of the proposed
CO2 pipeline, issues and impacts to be addressed in the EIS
and environmental impact mitigation alternatives that should be
considered. Scoping comments should clearly describe specific issues or
topics that the EIS should address to assist DOE in identifying
significant issues concerning the addition of the CO2
pipeline to the proposed project. Comments must be postmarked or
emailed by July 23, 2012 to ensure consideration. Late comments will be
considered to the extent practicable.
DOE has coordinated with Federal and state agencies in the proposed
project area, and the United States Army Corps of Engineers is a
cooperating agency for the preparation of this EIS. DOE invites any
additional agencies with jurisdiction by law or special expertise to
request cooperating agency status for the preparation of this EIS.
The public scoping meetings will be announced as described in the
DATES and ADDRESSES sections above. Members of the public and
representatives of groups and Federal, state, local, and Tribal
agencies are invited to attend. The meetings will include both a formal
opportunity to present oral comments and an informal session during
which DOE and personnel from IG will be available for discussions.
Displays and other information about the proposed agency action, the
EIS process, and the proposed project will be available. Individuals
who wish to make oral comments during one of the scoping meetings may
register at the meeting. To ensure that everyone who wishes to speak
has a turn, DOE may need to limit speakers to three to five minutes
initially, but will provide additional opportunities as time permits.
Written comments may be submitted also to DOE officials at the scoping
meetings. DOE will afford equal consideration to all comments whether
mailed, emailed, or presented at the scoping meetings orally or in
writing.
Issued in Washington, DC, on June 19, 2012.
David G. Frantz,
Acting Executive Director, Loan Programs Office.
[FR Doc. 2012-15374 Filed 6-21-12; 8:45 am]
BILLING CODE 6450-01-P