Hi MH, 

I do like the excerpt

 “Montana does not have to become a national sacrifice area
 for a faulty federal energy policy.”

I guess when Americans are hooked like winos on cheap fuel the fastest 
way to get them a fix is the stance most politico's take.  Coal is a 
loser. Gov. Schweitzer understands this and would like to push harder 
but remember it is like selling bibles in a bar room.  I think the grass 
roots movement that we are involved in with Biofuels will effect more 
change.  It is nice to see them talking though and it never hurts to 
write a guy like Brian a letter. 

Thanks for the interesting post
Jim


MH wrote:

> Peering into Montana’s energy future
> By WILBUR WOOD For The Outpost 
> http://www.billingsnews.com/story?storyid=18357&issue=289
>
> Coal filled the headlines of Montana newspapers last week during the
> Governor’s Energy Summit – officially called “The Montana Symposium:
> Energy Future of the West” – but the real news was how much brighter
> our future will be when we turn our attention away from coal toward
> energy conservation and renewable energy. 
>
> The symposium went on for two days, Oct. 18-19, on the campus of
> Montana State University in Bozeman – 740 registered participants
> (not counting the press), 27 “breakout sessions” punctuated
> by panels and speeches – but the coal headlines around the state
> during those two days did not emerge solely from the Energy Symposium. 
>
> One coal story turned out to be a new chapter in the ongoing saga of
> the beleaguered coal mine in the Bull Mountains south of Roundup.
> The state Department of Environmental Quality was upset that
> operators of this mine, while scraping away a ridgetop meadow,
> ostensibly to level a site for a proposed generating plant – a plant
> whose air quality permit, DEQ says, is no longer valid because it
> expired in June – encountered an eight-foot-thick vein of sub-bituminous
> coal and dug through it. They needed, they said, to get to solid ground.
> DEQ looked at the resultant pile of coal and called this strip mining.
> The mine is an underground mine and has no permit for strip mining. 
>
> The mine was upset that DEQ was upset, and claims it never intended to
> sell the coal from the site for the power plant, whose air quality
> permit should still be valid. 
>
> A second coal story came out of Great Falls, where the City Council
> voted 4-1 to spend $2 million of that city’s funds on “preparations”
> for the proposed 250 megawatt Highwood coal-burning power plant east
> of the city. Five rural electric cooperatives forming the Southern
> Montana Electric Generation and Transmission Cooperative are
> partnering with Great Falls on this project because they need the
> city’s rights to water from the Missouri River. Running a coal-fired
> generating plant takes a lot of water. 
>
> Water is a dominant issue with coal development in our semi-arid region.
> One reason that a 780-megawatt coal-fired generating complex seems
> unlikely ever to poke its smokestacks into the sky between Roundup and
> Billings is a lack of sufficient water, either in the Bull Mountains or
> in the Musselshell River 15 miles north. Nor do the developers have the
> right to pipe any water out of the Yellowstone River 35 miles to the south.
> So they are proposing to drill down 8,000 feet into the Madison Aquifer
> and pump up water that is very hot (about 180 degrees Fahrenheit) and
> full of salts that would have to be removed. 
>
> Water is also a huge issue with the kinds of coal development that were
> trumpeted at the Energy Symposium. Extracting methane gas from coal seams
> means pumping out the water that holds it there - in other words,
> dewatering the aquifer. Do you then dump this untreated, often very salty
> water down the nearest stream, potentially ruining pastures and irrigated
> croplands? Do you dig reservoirs (a bit more expensive) and stash this
> pumped out water there, waiting for some of this water to seep back into
> the ground, some to be consumed by livestock and wildlife, and the
> rest to evaporate and fall – elsewhere – as rain? 
>
> You could, of course, treat the water, remove the salts, before dumping
> it down a stream, but this is expensive and does not address the
> dewatered aquifer and drying up wells and springs. You could re-inject
> the water back into the coal seam, but this is even more expensive – although
> not so expensive that gas producers would not reap enormous profits anyway. 
>
> Coal bed methane is a crucial issue for Montana, but other coal technologies –
> either gasifying or liquefying coal – are what Montana Gov. Brian Schweitzer
> lately has been promoting. Prodigious amounts of water are used (or abused)
> in both of these, also. 
>
> The chief push to create liquid fuel from coal seems to be coming from the
> Department of Defense - one of the major consumers of oil on the planet -
> and indeed, Ted Barna, an assistant under secretary of the DOD was there
> to endorse that concept. 
>
> Another federal agency official was there to push for building new
> pipelines and new electrical transmission lines. Suedeen Kelly of FERC,
> the Federal Energy Regulatory Agency, told the audience that
> energy-producing states like Montana owe it to energy-consuming states
> to send them their energy, and if states lagged in upgrading its
> transmission infrastructure, FERC’s job under the new federal energy bill
> was to step in and make this happen. 
>
> This led Brady Wiseman, a Democratic state representative from Bozeman –
> during a “what have we learned” session at the end of the symposium –
> to complain about “this top-down, high-voltage approach, mandated by
> the Pentagon.” He said that electricity deregulation in Montana
> “was like that. And it did not work.” 
>
> Some very specific doubts about whether coal liquefaction will work
> were set forth by Northern Plains Resource Council in the week
> leading up to the Energy Symposium. In a meticulously researched
> position paper, Northern Plains disagreed with Schweitzer’s assertion
> that coal liquefaction would be “clean,” pointing out that oxides of
> sulfur, nitrogen, carbon and hydrogen, along with other pollutants,
> are emitted by this World War II-era German technology, called the
> Fischer-Tropsch Process. 
>
> Northern Plains also questioned whether enough water exists in all of
> Eastern Montana to run coal to fuel facilities on the scale that
> the governor has been proposing. 
>
> The governor’s office replied that NPRC’s data was based on
> out-of-date technologies and suggested that newer, cleaner technologies
> are in the works. (Schweitzer, a soil science graduate of Montana State
> University, makes no secret of his desire that MSU be a leading researcher
> in these “clean coal” technologies.) Northern Plains, however, had drawn its
> data from Sasol, the South African company that operates the only existing
> commercial scale coal-to-liquid fuel plants on the planet. 
>
> This thrust by Northern Plains may briefly have muted Schweitzer’s enthusiasm
> for coal liquefaction. In his opening speech, Schweitzer spoke first of
> conserving energy, the only solution in the short term to the sudden crisis
> of rising energy prices. 
>
> Then he celebrated the Judith Gap Wind Farm which - when its 135 megawatts of
> windpower come on line – “will take Montana from 50th place to 15th place
> (among states) in windpower” and will produce “8 percent of Montana’s
> electrical portfolio.” 
>
> Judith Gap windpower will be sold to NorthWestern Energy for $32 per megawatt,
> and NWE has “firmed that power” (with sources that, unlike wind, are not
> intermittent) so that “the collective cost is $38 per megawatt,” Schweitzer
> said, “the cheapest new energy produced in America. And it is green!” 
>
> The governor mentioned his administration’s support for producing biodiesel
> and ethanol from crops. Although he refrained from specifically mentioning
> coal-to-liquid fuels or coalbed methane, he did speak of breaking America’s
> dependence on oil and gas imported from countries governed by
> “dictators and rats” and specifically mentioned coal as
> “a bridge to the new hydrogen economy.” 
>
> Of course, there were plenty of others, on panels and in plenary sessions,
> to talk up coal. Andre Steynberg, technical manager of research and
> development at Sasol, the South African coal-to-liquid-fuel producer,
> breezed through a power point presentation of flow charts and photos
> of giant “reactors” on the large screen behind the podium on
> the MSU fieldhouse floor. 
>
> But Steynberg eventually went “off message” when he revealed that
> Sasol had been converting many of its liquid fuel operations from
> coal to natural gas. (Sasol recently spent $1.2 billion constructing a
> pipeline to import natural gas from Mozambique.) Coal is just too
> environmentally costly, and for Sasol to invest in converting it to
> liquid fuel, Steynberg said, would require “incentives.” 
>
> Translation of “incentives”: government subsidies. Other
> coal-to-liquid-fuel promoters at the symposium cited their
> frustration with the lack of private sector funding, and
> their hope for an infusion of government cash to get a
> pilot plant up and running and show the private sector it works. 
>
> At a panel of five Western governors, Dave Freudenthal of Wyoming
> unexpectedly dampened their hopes. Even though Wyoming now
> “exports more BTUs than any other state” and is rolling in cash
> from its coal – and coal bed methane – boom, Freudenthal had
> this to say about coal liquefaction: “If the private sector says
> ‘we won’t put money in it,’ the states ought to be cautious.” 
>
> Schweitzer’s remarks were not characterized by caution. He charged
> that the federal energy bill (recently signed into law) offers
> “no vision” and that consequently “the future starts with the states,
> working with private industry” and coming up with “big ideas.”
> He means the Rocky Mountain states in particular, as well as the
> Western provinces of Canada: all rich in coal, oil shale,
> tar sands and - oh, yes – renewable resources such as wind. 
>
> So it was an odd juxtaposition, after Schweitzer’s state-centric
> speech, to have FERC’s Suedeen Kelly follow him with her
> unmistakable message that if the states did not act to solve
> transmission bottlenecks, the federal government would
> ensure that “transmission corridors” opened up. 
>
> This was an eerie echo of a message Montanans heard in 1971,
> when the federal government and the fossil fuel industry –
> in a document called “The North Central Power Study” –
> decided that this region’s coal should fuel as many as
> 42 power plants, sending electricity to population centers
> east and west. 
>
> Montana’s transmission system, now as in 1971, has bottlenecks
> both east and west. I missed breakout sessions about how to
> “solve” these bottlenecks, partly because I am among those who
> really don’t want to see them solved. 
>
> Montana already produces twice as much energy as it consumes,
> and building more long-distance transmission lines to fill with
> power generated here, either by expensive polluting coal plants or
> cheaper clean wind farms, does not thrill me. Long distance
> transmission lines leak enormous amounts of energy, are vulnerable to
> natural disaster or sabotage, and may become obsolete as more and more
> utilities turn to conservation and generation closer to the centers of 
> demand. 
>
> I also missed a other sessions that normally I would have attended,
> on subjects such as renewable resources, energy efficiency, hydrogen
> and fuel cell technology – and on the intriguing topic of how to
> “sequester” carbon to keep it out of the atmosphere. 
>
> I dutifully attended one session dealing with what is (and is not)
> in the new federal energy bill and sat through two sessions on coal –
> turning it to gas and turning it to liquid fuel. 
>
> Logically, biofuels should have been treated the same way –
> one session on biodiesel and another on ethanol. But both were
> crammed into one session, to which nonetheless I went with relief,
> and which turned out to be, for me, the high point of the symposium. 
>
> Joe Jobe of the National Biodiesel Board began with a jibe at
> liquefied coal. “How many gallons of Fischer-Tropsch fuel is being sold
> in the U.S. today?” he asked. Zero gallons. But 25 million to 30 million
> gallons of biodiesel, he said, were sold in the United States last year.
> Truckers, enraged at seeing diesel prices climb higher than regular gasoline
> and then stay high, are avid for information on biodiesel and are driving 
> demand for it. 
>
> Biodiesel is interesting because it can be produced in your garage from
> used French fry oil, but also in large plants that crush and refine
> oilseed crops. Ethanol, too, can be produced on a variety of scales. 
>
> One of the larger facilities in the Northern Plains region is a
> 34 million gallon per year ethanol plant that Husky Oil is
> integrating with its heavy oil upgrader in Lloydminster, Saskatchewan,
> according to Bert Faber, senior environmental adviser for the company. 
>
> Montana will produce very little ethanol from corn – that’s for
> places like Iowa and Minnesota – but this state has a variety of crops
> that can be converted to fuel and also produce a high quality
> by-product to feed livestock. Phil Madsen, whose company
> Katzen International has designed ethanol plants around the world,
> looks to Montana wheat and barley. So does microbiologist Cliff Bradley,
> who adds sugar beets (which at current prices are worth more as a fuel crop
> than a sugar crop) and cellulose (such as from perennial grasses –
> $2.50 per gallon gasoline makes ethanol from cellulose viable, he said). 
>
> Bradley is co-founder of the Missoula-based company Montana Microbial 
> Products,
> which has produced enzymes that break down a variety of cellulosic materials,
> thus reducing the energy requirements of the distillation process. 
>
> Bradley had sat through the coal liquefaction presentations and began with
> this policy recommendation: “We don’t turn over one shovelful of coal to
> turn into liquid fuel until the U.S. implements energy conservation,
> mass transit, and eliminates gas hogs from the road. Then I’ll listen
> to schemes to ‘liquefy’ Eastern Montana.” 
>
> But he had a better idea than that. In 2004, Bradley said, retail sales of
> gasoline and diesel fuel for transport in Montana totaled 870 million gallons.
> The price of those fuels was rising by about $1 a gallon during that time,
> which means that an extra $870 million simply left the state for corporate
> bank accounts in Houston or Los Angeles. None of it stayed here. 
>
> These high prices, however, have made ethanol and biodiesel competitive with
> the fossil fuels. So why not stop sending our money out of state and
> invest it here, to grow our own fuels? 
>
> He calculated that Montana could produce 500 million gallons of E85 ethanol
> from a variety of crops, including perennial grasses and straw
> (with half left on the ground). 
>
> “The technology is here. It’s not how you do it, but who owns it.
> If you sell your crops to Archer Daniels Midland (to make ethanol)
> this gains us nothing. But biofuels can be an opportunity for
> farmers and communities to keep value-added dollars in the local economy.” 
>
> Bradley said that one coal to liquid fuels plant was projected to cost
> $3.3 billion to build and would produce 10,000 gallons of fuel per day.
> Assuming we could use this fuel in-state and not ship it off to the military,
> this still would cover less than 10 percent of Montana’s transport fuel 
> needs. 
>
> For much less than that amount, perhaps as little as $1.1 billion,
> Bradley figures we could build enough biofuels capacity eventually to
> furnish 100 percent of Montana’s liquid fuel needs. 
>
> Where to get a billion dollars? Bradley suggests we start by
> keeping 10 cents of every dollar of that gasoline price increase in state.
> That would raise $80 million per year in capital. 
>
> “The governor says, ‘Think big.’ So let’s think big with
> diverse and small scale systems, community owned, integrated with
> agriculture and local economic development strategies,” he said. 
>
> “Montana does not have to become a national sacrifice area
> for a faulty federal energy policy.”
>
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>  
>

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