MT Big Energy Gov. smacks down Enviros

BigHornRam

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Here's my favorite Schweitzer quote of the week:

“Everybody who is reading this story has got a light bulb on in their house right now, and that light bulb is probably hooked to some coal-fired generator or hydroelectric plant,” he said. “So unless they're willing to live naked, eat nuts and live in a tree, then we've got to talk about the future of energy generation.”

Energy summit stirs up debate
By MIKE DENNISON of the Missoulian State Bureau



HELENA - Jackie Trusler says she could live with a mine in southeastern Montana's coal-rich Otter Creek Valley, which runs south from her Ashland-area ranch, but she's against any giant development involving coal and synthetic fuels.

“It would be terrible for this area,” she said. “All of a sudden it would be just a big mess.

“This valley is a beautiful valley, and I don't think we should have to sacrifice everything.


“They say Montana is the last best place. If they bring all this in, it's not going to be the last best place.”

Trusler is reacting to an idea promoted by Gov. Brian Schweitzer to create large-scale plants in eastern Montana that convert coal to diesel fuel.

The project would use Montana's plentiful coal fields to provide hundreds of good jobs, increase the country's fuel supply, and accomplish both tasks with only slight environmental impact, Schweitzer said.

The proposal also is on the agenda this week at Schweitzer's Montana energy future symposium in Bozeman, and it's not the only energy development on display.

Oil, fuel cells, coal-fired power plants, natural gas and power lines are on the program, with boosters and critics alike prepared to talk about how, or whether, they should be part of Montana's economy and energy future.

It's a key part of the symposium, which will draw as many as 600 people to the Montana State University campus. The Schweitzer administration plans to use what it learns at the conference to craft an energy plan for the state and the region.

In a recent interview, Schweitzer said traditional, fossil-fuel energy can't help but be a big part of the discussion at the conference.

“Everybody who is reading this story has got a light bulb on in their house right now, and that light bulb is probably hooked to some coal-fired generator or hydroelectric plant,” he said. “So unless they're willing to live naked, eat nuts and live in a tree, then we've got to talk about the future of energy generation.”

But regardless of what's on the agenda, Schweitzer and energy companies themselves say it won't change a fundamental fact about development: If Montanans want it to happen, it will. If they don't, it won't.

“There's a lot of work that needs to be done to make it amenable to opening up another coal mine somewhere,” said Dallas Schole, spokesman for Kennecott Energy Co., which owns one Montana coal mine and has long eyed development of coal deposits in the Otter Creek Valley. “I think there is a good chance if that's what Montana wants to happen.”

At this week's conference, there will be plenty of people who want it to happen and some who may have different ideas.

Rep. Alan Olson, R-Roundup, who chairs a House energy committee, said he's hoping whatever plan comes out of the conference will include new coal-fired power plants in Montana.

The plants can provide affordable, long-term power for Montanans and for export to markets out of state, he said.

“We need to realize that in this state, for us to survive, we need an export economy, and one of the things we can export is energy, hopefully in a refined state,” Olson said.

Olson's sentiment is shared by Republican House Leader Roy Brown of Billings. But Brown said he wonders whether Schweitzer will use the summit to justify more emphasis on “alternative energy,” such as wind and solar power, which Brown believes is more expensive for consumers.

“I think there is a balance,” he said. “But let's develop some of the energy sources we have readily available: oil, natural gas and coal.”

Schweitzer said he doesn't believe alternative energy needs to cost more than traditional fuels. He also said the summit will look at all types of energy and not favor one over the other.

“We're bringing probably more than 600 people who are energy leaders from around the world to showcase Bozeman, Montana, and our school of engineering and Montana's potential as a center of clean-coal technology and wind power and ultimately the hydrogen economy,” he said. “I think it's a comprehensive energy summit.”

State Sen. Ken Toole, a Helena Democrat who chairs the Senate's energy committee, said he agrees that Montana needs to develop some new power sources.

Utility deregulation is a failure that gave away Montana's low-cost, regulated power to out-of-state interests, and now the state has to rebuild the system, he said.

But it's a mistake to focus on large-scale plants, he said.

“The juice and the jazz in Montana around energy is always about building plants,” Toole said. “And I think that's one of our problems. ... We ought to be looking at a variety of smaller resources.”

Energy developers, however, say they're not that interested in the whole policy debate. They just want a clean set of rules by which they can dig, drill or build and meet Montana's environmental standards.

Bruce Williams is vice president of operations for Fidelity Exploration & Production Co., the state's largest natural gas producer and only producer of coalbed methane.

Fidelity has 456 producing wells in Montana near the Tongue River, just north of Sheridan, Wyo., but has had to fight numerous legal battles to develop its Montana fields.

The conference is a good chance to have a dialogue between drilling supporters and opponents, but when the symposium is over, he and other developers still face what they see as an uncertain playing field in Montana.

“There still needs to be a predictable regulatory environment in Montana: If you start at A, and you comply with all these regulatory steps, you'll get to Z, and then you'll get a permit,” he said.

He also said he thinks that Montana and the country are a long way from not needing oil, gas and traditionally generated power.

“You still have this giant, fossil fuel-consuming economy in the world that can't just make a switch,” he said.

Some development supporters also are convinced that no amount of talking is going to lead to widespread agreement on policy.

They're hoping that when the summit is over, the Schweitzer administration will take what it learned and go forward and maybe, if they're lucky, the governor's plan will match up somewhat with their own hopes.

“It's going to depend on what the governor wants to do with the discussion,” Roundup Republican Olson said. “It's real nice to sit around and talk and come to some consensus, but you need some action.”

Editor's note: Today, the Missoulian concludes a two-part look at Gov. Brian Schweitzer's energy summit, which convenes Tuesday at Montana State University.
 
I'll be surprised to see it happen in the next 15 years... Its not like permitting a new mine and getting all your ducks in a row for a power plant can happen over night. You're looking at 7-10 at an absolute minimum, then a year or two for start up. Then you have all the infrastructure to put in. I am all for mining, but I'm not sure Otter Creek is where it should happen. Why not? Because I'd hate to see some of the best deer hunting areas in MT go the way side in the name of mining sub grade coal to make a Gov feel good about himself... what will happen if the price of diesel goes back down? This wouldn't even be on the table. Why would they open a mine when there are plenty that have more production potential? We make a very limited amount of "coal" oil as it is more expensive to produce than from crude. I know there is some one on the board here that knows all about the refining processes, I only know about the rape and pillage part. :D

I wouldn't hold my breath on this one happening any time soon...
 
Funny to see the Gov catering to the 8th grade educated with his lightweight soundbites, and then BHR lapping it up.

You gotta like anti-hunters like BHR who think a coal mine is better than a place to hunt deer, all in the name of "exports" to California. What an idiot.

Hey B-Stew,
About 4 years ago, we got a Natural Gas fired power plant shoved down are throats here, was going to create "good paying jobs" and allow us to "lessen dependncy on foreign sources" along with a whole litany of other benefits. Well, guess what happened, it turned out that California didn't really need all the electricity they thought they would, and the price of Natural Gas went up. Could you imagine a Natual Gas plant today being financed?

The environmental damage is far less than a coal mine, as this failed project just has miles of big tramission towers radiating out from a non-existent power plant. Could you imaging the damage if stupid people like BHR were listened to?
 
Jose,

I just posted the article for you to read. Just wanted you to see what our Democrat Governor is up to. First the Bison slaughter and now this hairbrained idea. Personally I think he's a Republican in drag!

I think we ought to give up on fossil fuel extraction in this country and rely entirely on OPEC to provide for our needs. Those guys like us, and I'm sure they'll look out for our best interests.

Bambi,

You really think the price of diesel is going to come down substancially in the future?
 
Jose

You're right about the power lines. I would think they could tap into the high voltage lines that are running out of the plant in Coal Strip, which is "only" about 60 miles away... I'm not sure what direction they run out of that plant though so it could be much closer. Either way it would all be in the name of "progress" so it would be ok. But if the major by product is diesel, then I would think that they would need rail lines more so.

That area is probably one of the most desolate areas in MT. There is nothing down there. The town of Otter is not really even a town. I'm not even sure they have a post office much less a store, I can't remember... Its 60-70 miles form the nearest town of any appreciable size and most of that is gravel roads.

I just can't see a mining company chomping at the bit to put in a mine/power plant in BFE when there are 30+ mines in the lower PRB that are fully developed and have hundreds of billions of reserves on tap... Those mines have been trying for years to get another plant put in around Gillette some where, but it never happens.

A power plant or gasification plant wouldn't use all that much coal to operate, I wouldn’t think…, so the mine would most likely be pretty small, but with the high demand for the low sulfur coal available in the PRB they'd be fools not to mine it and sell it as well. So then you would have to look at rail lines too! There are rail lines in the area but not real close if I remember right... Most of the main rail lines in that area are already at maximum capacity due to production from the other mines. So that could mean expansion of the rail system as well, and the railroad companies aren’t going to do it for free.

I just can't imagine putting up the kind of capital that would be needed to finance a mine and gasification plant in BFE and mine just enough crappy coal to keep it running. It doesn’t' make sense to me unless there is something else driving the proposal. Like “feel good politics”…
If I remember right MT doesn't have more than three coal mines, I think its because the state charges them something like 15% excise tax on coal sales, on top of property tax being so much higher than in WY... What do ya think the "taxes" would be on a $500 mill drag line? ;-) Takes a hell of a lot of coal selling at $10 a ton to make up for it...

Honestly the coal mines in the West shouldn't be confused with metal mining of yesterday. They do a great job of reclamation and the area typically isn’t' impacted all that much when their done. I just don't want to see one of the places that I hold dear to my sole "infiltrated" by a mine that makes no sense.

BHR

No I don't think its going to drop much, but I think there are better places to plop a gasification plant. I agree that we should try and rely on our own resorces though.
 
Good post Bambi.

Here's another article from todays paper.

Benefits of coal touted
By MIKE DENNISON of the Missoulian State Bureau



BOZEMAN - Gov. Brian Schweitzer barely mentioned coal as he kicked off his energy summit here Tuesday.

But Montana's own version of black gold grabbed plenty of attention, with developers saying “the time is now” to start using the state's vast reserves of coal to produce energy, for the state and beyond.

“The stars are lined up,” declared Pat Davison, a Republican candidate for governor in 2004 and associate of Wesco Resources Inc., a Billings coal development firm. “The people of Montana are becoming less afraid of development. These are the times that are ripe for coal development in Montana.”


More than 700 people are attending the two-day summit at Montana State University in Bozeman, and big crowds attended its first-day sessions on coal-related development, from power plants to railroads to synfuel plants.

Yet sessions on alternative fuels and environmental protection also packed them in, and spokesmen for conservation groups said they hope Schweitzer will pay heed and keep the focus on non-fossil fuel sources such as wind.

“It is quite clear that the central purpose of this meeting is to create an energy plan for Montana in which coal is the central long-term energy source,” said Jim Jensen, executive director of the Montana Environmental Information Center.

“I hope the governor will take a deep breath after this conference is over and see the choices presented and move Montana to energy independence and security, which cannot be done with fossil fuels.”

In his opening address at the Brick Breeden Fieldhouse, Schweitzer talked with pride about a new wind-power project in Judith Gap and said conservation is the only short-term solution for the current crisis of skyrocketing prices for natural gas, motor fuel and electricity.

“We need to know everything we can know about conservation,” he said.

He said the states and the region must be leaders on energy policy that can make America less dependent on foreign oil and that Montana can take the lead on energy production.

That production would include coal-generated power and fuel, he indicated, noting that Montana has percent of the coal deposits on the planet.”

Schweitzer has been promoting the idea of a synfuel plant in Montana, using coal to produce diesel fuel or other fuels a multibillion-dollar investment down the road.

He also has spoken positively of coal-fired power plants that are on the drawing board in eastern and central Montana.

Tuesday's summit included several sessions on coal-development technology, sounding more like chemistry lessons than public policy debates.

But a standing-room only crowd also heard from traditional coal developers, who sung a familiar tune in Montana: If development is to occur, the state must help pave the way and be welcoming with its regulatory policies and other incentives.

“Make it such that the developer wants to come here,” said Chuck Kerr of Great Northern Properties, the largest private owner of coal in the nation, including billions of tons in Montana. “Grease the skids as best you can.

“Whoever really wants the project will get it.”

Davison, a longtime promoter of developing state-owned coal in the Otter Creek Valley of southeastern Montana, said now is the ideal time to develop coal to produce electricity for the growing Pacific Northwest and the rest of the region.

That means the Montana must “embrace worldwide companies that would be developers,” and commit to creating a business environment that doesn't change the rules after firms have made huge investment in potential projects, he said.

“We're putting our money where our mouth is, and we're willing to participate,” he said, and the state needs to “go forward in using the resource that God gave us in Montana.”

Schweitzer has been promoting so-called “clean coal” technology that's supposed to burn coal with fewer emissions and have less environmental impact.

At a session on the environmental impacts of energy development, a questioner asked state Department of Environmental Quality director Richard Opper what the governor means by “clean coal” technology.

Calling it clean “may be overselling it,” Opper conceded, but there are ways to burn coal more cleanly, and Schweitzer believes it's important to “apply the cleanest technology to our plants.”

Jensen said it seemed that many attending the conference are far more interested in conservation and alternative energy than are policymakers - and he's not sure the agenda reflects that.

“So far, the attention paid to a different way of approaching energy that would move us away from fossil fuels has been token, at best,” he said.
 
Here's another article from today's paper. There's also another interesting one discussing the Northern Cheyenne tribes stake in coal mining of Otter Creek. Unfortunately it is not on the Missoulian wed page right now.

Montana/Regional News

Planned transmission lines will get power moving
By CHARLES S. JOHNSON of the Missoulian State Bureau



BOZEMAN - If Montana begins generating more electricity, there may be no shortage of power lines crisscrossing the state to ship it to the booming Northwest and Southern California, transmission line executives said Wednesday at the governor's energy summit here.

If the lines come to fruition, they would provide a way to move future power generated in Montana from coal, wind and other sources to other states, speakers said.

Additional transmission lines, speakers said, also could create more competition for PPL Montana, which provides 70 percent of the electricity purchased by NorthWestern for its more than 310,000 Montana customers.


“Montana has huge generation potential,” said Brad Thompson, president of Northern Lights Transmission. “Unfortunately, it is very difficult to get that to the marketplace.”

Brian Silverstein, vice president for operations and planning for the Bonneville Power Administration, discussed ways to increase access to its power grid. He said the federal power marketing agency had invested in the first major power line construction in the region since 1987 and spent more than $1 billion over the past four years on transmission projects to deliver new power to the Northwest.

“Transmission issues are not going to get resolved unless we work together,” Silverstein said.

Although none of the projects has secured approval from regulators, here are some of the proposals discussed at the conference that could run through Montana:

Montana Alberta Tie Ltd., wants to build a 203-mile, 230-kilovolt transmission line from Lethbridge, Alberta, to Great Falls capable of transferring 300 megawatts of electricity. The project, if it obtains necessary regulatory approvals, would be in place in the first quarter of 2007 at a projected cost of $85 million.

Northern Lights Transmission Co.'s TransCanada Corp. is considering building an 1,100-mile transmission line from Townsend to Idaho to Nevada to Los Angeles, capable of moving 2,000 megawatts of power, with potential for expansion. It could cost $1.5 billion.

NorthWestern Energy is looking at building a 400-mile power line from the Townsend area to Borah, Idaho. The company also wants to enhance its existing 500-kilovolt lines in Montana.

National Grid USA is looking to build more transmission lines in this country, and some executives already have been met with Gov. Brian Schweitzer. An executive from the company on Wednesday did not outline any specific projects that would go through Montana.

Larry Wilson, president of Montana Alberta Tie Ltd., said his company's Lethbridge-to-Great Falls project is on “a very, very fast track,” with right-of-way negotiations completed. But he said the project needs 134 state, provincial and U.S. and Canadian government permits and approvals, including six major ones.

If the line wins approval, the company would be buying as much material and hiring as many local workers as it can along the route, he said. Besides the economic boost, “it would increase power market competition,” Wilson said.

The project would help spur the development of more green power such as wind power, he said.

Northern Lights' Thompson said his company's plan would address several concerns.

“There is a lack of transmission and transmission constraints that preclude generators from moving generation to the marketplace,” Thompson said.

Dave Gates, NorthWestern's vice president of wholesale operations, said his company is exploring the power line to Idaho. He said some of the public debate over power lines involves whether they would export power from Montana or merely import higher prices.

The key to building transmission lines, he said, is “allocation of cost to those deriving the benefits.”
 
B-Stew,
I think my powerline analogy was meant that it is the "other" infrastructure that does a lot of the damage.

Kind of funny to watch ol' BHR be back-tracking and trying to cover his un-educated arse after being exposed as the anti-hunter he is.
 

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