Only quibble with that is that we don't really have an energy policy.
It's just consume consume consume, and damn the cost.

JJJN wrote:
> 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whose air quality permit, DEQ says, is no longer valid because it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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>>
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>>
>>
>> 
>>
> 
> 
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