Notice of Intent To Prepare an Environmental Impact Statement and To Conduct a Public Scoping Meeting, and Notice of Floodplain and Wetlands Involvement To Support Construction and Startup of the Mississippi Gasification, LLC, Industrial Gasification Facility in Moss Point, MS, 58262-58265 [E9-27165]

Download as PDF 58262 Federal Register / Vol. 74, No. 217 / Thursday, November 12, 2009 / Notices employment choices available for consumers and of the financial resources the project can leverage in order to provide the services the consumer needs; (5) Provide training on how the AIVRS projects can improve inter- and intra-tribal communication regarding confidentiality and the development of cooperative agreements with State VR agencies and Federal entities (e.g., the Department of Interior and the Bureau of Indian Affairs); (6) Provide technical assistance on methods associated with measuring project performance, including the development of goals, performance measures, and efficiency models, and on the reporting of performance data; (7) Identify other technical assistance and training needs of the AIVRS projects; and (8) Provide technical assistance to build an infrastructure that sustains training and technical assistance for these projects. jlentini on DSKJ8SOYB1PROD with NOTICES Types of Priorities When inviting applications for a competition using one or more priorities, we designate the type of each priority as absolute, competitive preference, or invitational through a notice in the Federal Register. The effect of each type of priority follows: Absolute priority: Under an absolute priority, we consider only applications that meet the priority (34 CFR 75.105(c)(3)). Competitive preference priority: Under a competitive preference priority, we give competitive preference to an application by (1) awarding additional points, depending on the extent to which the application meets the priority (34 CFR 75.105(c)(2)(i)); or (2) selecting an application that meets the priority over an application of comparable merit that does not meet the priority (34 CFR 75.105(c)(2)(ii)). Invitational priority: Under an invitational priority, we are particularly interested in applications that meet the priority. However, we do not give an application that meets the priority a preference over other applications (34 CFR 75.105(c)(1)). Final Priority We will announce the final priority in a notice in the Federal Register. We will determine the final priority after considering responses to this notice and other information available to the Department. This notice does not preclude us from proposing additional priorities, requirements, definitions, or selection criteria, subject to meeting applicable rulemaking requirements. VerDate Nov<24>2008 16:12 Nov 10, 2009 Jkt 220001 Note: This notice does not solicit applications. In any year in which we choose to use this priority, we invite applications through a notice in the Federal Register. Executive Order 12866: This notice has been reviewed in accordance with Executive Order 12866. Under the terms of the order, we have assessed the potential costs and benefits of this proposed regulatory action. The potential costs associated with this proposed regulatory action are those resulting from statutory requirements and those we have determined as necessary for administering this program effectively and efficiently. In assessing the potential costs and benefits—both quantitative and qualitative—of this proposed regulatory action, we have determined that the benefits of the proposed priority justify the costs. We have also determined that this regulatory action does not unduly interfere with State, local, and tribal governments in the exercise of their governmental functions. Executive Order 13175: Executive Order 13175 (‘‘Consultation and Coordination with Indian Tribal Governments’’) provides that each Federal agency must have an accountable process to ensure regular and meaningful consultation and collaboration with Indian tribal governments or their representative organizations in the development of regulatory policies that have tribal implications. Because Indian tribal governments will be the beneficiaries of any project funded under this priority and because Indian tribal governments are eligible applicants for any award made using this priority, we are specifically inviting input from Indian tribal officials concerning this notice of proposed priority as part of the process of consultation required by the Executive order. Intergovernmental Review: This program is subject to Executive Order 12372 and the regulations in 34 CFR part 79. One of the objectives of the Executive order is to foster an intergovernmental partnership and a strengthened federalism. The Executive order relies on processes developed by State and local governments for coordination and review of proposed Federal financial assistance. This document provides early notification of our specific plans and actions for this program. Accessible Format: Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape, or computer diskette) on request to the program contact PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 person listed under FOR FURTHER INFORMATION CONTACT. Electronic Access to this Document: You can view this document, as well as all other documents of this Department published in the Federal Register, in text or Adobe Portable Document Format (PDF) on the Internet at the following site: https://www.ed.gov/news/ fedregister. To use PDF you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S. Government Printing Office (GPO), toll free, at 1– 888–293–6498; or in the Washington, DC, area at (202) 512–1530. Note: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal Regulations is available on GPO Access at: https://www.gpoaccess.gov/nara/ index.html. Delegation of Authority: The Secretary of Education has delegated authority to Andrew J. Pepin, Executive Administrator for the Office of Special Education and Rehabilitative Services, to perform the functions of the Assistant Secretary for Special Education and Rehabilitative Services. Dated: November 6, 2009. Andrew J. Pepin, Executive Administrator for Special Education and Rehabilitative Services. [FR Doc. E9–27197 Filed 11–10–09; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY Notice of Intent To Prepare an Environmental Impact Statement and To Conduct a Public Scoping Meeting, and Notice of Floodplain and Wetlands Involvement To Support Construction and Startup of the Mississippi Gasification, LLC, Industrial Gasification Facility in Moss Point, MS AGENCY: Department of Energy, Loan Guarantee Program. ACTION: Notice of Intent to Prepare an Environmental Impact Statement and Conduct a Public Scoping Meeting, and Notice of Proposed Floodplain and Wetlands Involvement. SUMMARY: The U.S. Department of Energy (DOE) announces its intent to prepare an environmental impact statement (EIS) pursuant to the National Environmental Policy Act (NEPA) of 1969, as amended, the Council on Environmental Quality (CEQ) NEPA regulations, and the DOE NEPA implementing procedures to assess the E:\FR\FM\12NON1.SGM 12NON1 jlentini on DSKJ8SOYB1PROD with NOTICES Federal Register / Vol. 74, No. 217 / Thursday, November 12, 2009 / Notices potential environmental impacts for its proposed actions of issuing a Federal loan guarantee to Mississippi Gasification, LLC, (MG) and providing co-funding in a Cooperative Agreement with Leucadia Energy, LLC (Leucadia) and Denbury Onshore, LLC (Denbury) (DOE/EIS–0428). In addition, the U.S. Army Corps of Engineers and the U.S. Coast Guard will be cooperating agencies in the preparation of the EIS. MG, a wholly-owned subsidiary of Leucadia National Corporation, submitted an application to DOE under the Federal loan guarantee program pursuant to the Energy Policy Act of 2005 (EPAct 2005) to support construction and startup of the MG Industrial Gasification Facility (the Facility) in Moss Point, Mississippi. Leucadia and Denbury submitted an application to DOE for a cost-shared Cooperative Agreement pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA 2009) and Section 703 of the Energy Independence and Security Act of 2007 for a two-phase project to support carbon dioxide (CO2) capture at the Facility and subsequent enhanced oil recovery (EOR) sequestration. The EIS would also help DOE decide whether to fund the Leucadia-Denbury application. The Facility would be designed to produce upwards of 120 million standard cubic feet per day (MMSCFD) of pipeline-quality substitute natural gas (SNG) from approximately 7,000 tons per day of petroleum coke (petcoke) using gasification technology, coupled to acid gas recovery, and methanation. Marketable byproducts would include sulfuric acid, CO2, argon, and a small amount of electric power. MG plans to capture nearly 90% of the CO2 produced and sell it to Denbury under a long-term contract for use in EOR. The EIS will evaluate the potential impacts of DOE issuing MG a Federal loan guarantee for the proposed project, the funding of a DOE Cooperative Agreement with Leucadia and Denbury, and the range of reasonable alternatives. The purpose of this Notice of Intent is to inform the public about the DOE proposed actions, invite public participation in the EIS process, announce plans for a public scoping meeting to solicit public comments for consideration in establishing the scope and content of the EIS, and provide notice of the intent to prepare a floodplain and wetland assessment. DATES: To ensure that all of the issues related to this proposal are addressed, DOE invites comments on the proposed scope and content of the EIS from all interested parties. Comments must be VerDate Nov<24>2008 16:12 Nov 10, 2009 Jkt 220001 58263 postmarked, or e-mailed by December 14, 2009 to ensure consideration. DOE will consider late comments to the extent practicable. In addition to receiving written comments (see ADDRESSES below), DOE will conduct a public scoping meeting at which government agencies, private-sector organizations, and the general public are invited to provide comments or suggestions regarding the alternatives and potential impacts to be considered in the EIS. Further details about the public scoping meeting will be announced through local-area media and on the DOE Loan Guarantee Program Office Web site (https:// www.lgprogram.energy.gov/NEPA2.html) at least 15 days prior to the meeting. Advance requests to speak at the public scoping meeting may be sent to Dr. Alistair Leslie at the address indicated below prior to the meeting. Requests to speak may also be made at the time of registration for the meeting. However, persons who submitted advance requests to speak will be given priority if time should become limited during the meeting. ADDRESSES: Written comments on the proposed scope of the EIS and requests to speak at the public scoping meeting should be addressed to: Dr. Alistair Leslie, Loan Guarantee Program Office (CF–1.3), U.S. Department of Energy, 1000 Independence Avenue, SW., Washington, DC 20585. Electronic submission of comments is encouraged due to processing time required for regular mail. Comments can be submitted electronically by e-mail to: MG-EIS@hq.doe.gov. All comments should reference Project No. DOE/EIS– 0428. FOR FURTHER INFORMATION CONTACT: To obtain additional information about the MG project or this EIS, the public scoping meeting, or to receive a copy of the draft EIS when it is issued, contact Dr. Alistair Leslie by telephone: 202– 287–5620; toll free number: 800–832– 0885 ext. 75620 or e-mail: alistair.leslie@hq.doe.gov. For general information on the DOE NEPA process, 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; e-mail: askNEPA@hq.doe.gov or leave a toll-free message at 800–472– 2756. SUPPLEMENTARY INFORMATION: projects that employ innovative technologies. Title XVII of EPAct 2005 authorizes the Secretary of Energy to make loan guarantees for various types of projects, including those that ‘‘avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse 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.’’ A principal goal of the loan guarantee program is to encourage commercial use in the United States of new or significantly improved energy-related technologies. DOE believes that accelerated commercial use of these new or improved technologies will help sustain economic growth, yield environmental benefits, and produce a more stable and secure energy supply. Pursuant to the provisions of Titles XV and XVI of the ARRA 2009 and Section 703 of the Energy Independence and Security Act of 2007, DOE has competitively solicited applications for a requirement titled: ‘‘Carbon Capture and Sequestration from Industrial Sources and Innovative Concepts for Beneficial CO2 Use.’’ One of the objectives of this solicitation is to demonstrate advanced technologies that capture and sequester CO2 emissions from industrial sources into underground formations. Background EPAct 2005 established a Federal loan guarantee program for eligible energy Proposed Action The DOE proposed action is to issue a loan guarantee to MG to support PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 Purpose and Need for Agency Action MG submitted a Part I application to DOE for a loan guarantee on December 18, 2008, and submitted a Part II application on March 23, 2009, to support construction and startup of the Facility. Leucadia and Denbury jointly submitted an application to DOE on August 6, 2009, for a two-phase project for compression power supply studies at the Facility; a measurement, monitoring, and validation study (MMV) for the utilization of recovered CO2 in EOR; compression and metering equipment at the Facility; and a 110-mile CO2 pipeline to be funded, in part, with funds appropriated by ARRA 2009. The purpose and need for agency action is to comply with DOE’s mandates under EPAct 2005 and ARRA 2009 by selecting eligible projects that meet the goals of these Acts. DOE is using the NEPA process to assist in determining whether to issue MG a loan guarantee to support the proposed project and whether to provide funding for a Cooperative Agreement with Leucadia and Denbury to support the work they proposed. E:\FR\FM\12NON1.SGM 12NON1 jlentini on DSKJ8SOYB1PROD with NOTICES 58264 Federal Register / Vol. 74, No. 217 / Thursday, November 12, 2009 / Notices construction and startup of the MG Facility in Moss Point, MS, and to provide funding to Leucadia and Denbury to partially support a twophase project for compression power supply and MMV studies, compression and metering equipment at the Facility, and construction of a 110-mile CO2 pipeline. As proposed the Facility would produce upwards of 120 MMSCFD of SNG from approximately 7,000 tons per day of petcoke using gasification technology, coupled with acid gas recovery, and methanation. The SNG would be the primary product and would be delivered to one or more nearby natural gas pipelines. Marketable byproducts would include sulfuric acid, CO2, argon, and a small amount of electric power. MG plans to capture nearly 90% of the CO2 produced and sell it to Denbury under a long-term contract for use in EOR. Leucadia and Denbury plan to undertake compression power supply studies at the Facility, install compression and metering equipment at the Facility, construct a CO2 pipeline from the Facility to an existing Denbury pipeline 110 miles to the north that already distributes CO2 for use in EOR, and undertake MMV for the utilization of the recovered CO2 in EOR. MMV for injection of at least 1 million tons of CO2 would be conducted at Denbury’s EOR projects at the Heidelberg, Soso and/or the Eucutta oil fields in Mississippi and in the Citronelle oil field in Alabama. Approximately 119 tons per day of slag—the non-hazardous vitrified (glassy) solid product of gasification— would be shipped off-site for sale or disposed of as a non-hazardous waste. Up to 12 million gallons of water per day would be supplied from the Escatawpa River supplemented by water from the Pascagoula River, well water, and treated water near the site. Operation, maintenance, and general management of the Facility are estimated to require 177 full-time employees. The Facility would utilize approximately 115 acres of the 205-acre site at Moss Point, known as the Moss Point Industrial Technology Complex. The site is in southeastern Mississippi along the Gulf of Mexico, and is generally bounded by the Escatawpa River to the north, the Pascagoula River to the east, Grierson Street to the south, and an abandoned rail right-of-way to the west. The site has a designated industrial use, was previously the location of a paper mill, and has undergone remediation for past site contamination. Part of the proposed site at Moss Point is within a 100-year VerDate Nov<24>2008 16:12 Nov 10, 2009 Jkt 220001 floodplain and other parts are within a 500-year floodplain. There are also wetlands on the site. Therefore, DOE will include in the EIS a floodplain and wetland assessment prepared in accordance with the DOE Regulations for Compliance with Floodplain and Wetland Environmental Review Requirements (10 CFR part 1022). The EIS will analyze supporting infrastructure and facilities, including rail interconnections with an extended rail spur and unloading facility; existing local roads and regional highways; an upgraded barge dock and unloading facility on the Escatawpa River; interconnection to an onsite 115 kilovolt transmission line or a 230 kilovolt transmission line within 2 miles; interconnection to one or more nearby natural gas pipelines; and an existing CO2 pipeline network 110 miles to the north to which an interconnecting pipeline from the Facility fence line would be constructed. Alternatives In determining the range of reasonable alternatives to be considered in the EIS for the Facility, DOE identified the reasonable alternatives that would satisfy the underlying purpose and need for agency action. DOE currently plans to analyze potential impacts of the projects as proposed by MG and by Leucadia and Denbury, and the noaction alternative. To the extent appropriate, DOE will also analyze design options available to MG and to Leucadia and Denbury, within the scope of the proposed actions (such as disposing slag and sulfur, transporting petcoke, and alternative pipeline corridors) and mitigation measures. Under the no-action alternative, DOE would not issue MG a loan guarantee and the project would not be constructed as part of the DOE loan guarantee program. This option would not contribute to the Federal loan guarantee program goals to make loan guarantees for energy projects that ‘‘avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies.’’ In addition DOE would not provide partial funding to Leucadia and Denbury, and the demonstration of advanced technologies that capture and sequester CO2 emissions from industrial sources into underground formations would not be advanced. Preliminary Identification of Environmental Issues DOE has tentatively identified the following environmental resource areas for consideration in the EIS. This list is PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 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 the EIS should consider other resource areas or potential issues. Public Scoping Process To ensure that all issues related to DOE’s proposed action are addressed, DOE seeks public input to define the scope of the EIS. The public scoping period will begin with publication of this Notice of Intent and end on December 14, 2009. Interested government agencies, private-sector organizations, and the general public are encouraged to submit comments concerning the content of the EIS, issues and impacts to be addressed in the EIS, and 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. Comments must be postmarked, or emailed by December 14, 2009 to ensure consideration. (See ADDRESSES above). Late comments will be considered to the extent practicable. DOE invites those agencies with jurisdiction by law or special expertise to be cooperating agencies. A public scoping meeting will be held in the Moss Point area. Further details about the public scoping meeting will be announced at least 15 days prior to the meeting on the DOE Loan Guarantee Program Office Web site (https:// www.lgprogram.energy.gov/NEPA– 2.html) and in local media in the Moss Point, MS, area. Members of the public E:\FR\FM\12NON1.SGM 12NON1 Federal Register / Vol. 74, No. 217 / Thursday, November 12, 2009 / Notices and representatives of groups and Federal, state, local, and Tribal agencies are invited to attend. Displays and other forms of information about the proposed agency action, the EIS process, and the Facility will be available, with DOE personnel available for discussions with attendees. DOE requests that anyone who wishes to present oral comments at the meeting contact Dr. Alistair Leslie by phone, or e-mail (see ADDRESSES above). Individuals who do not make advance arrangements to speak may register at the meeting. Speakers who need more than five minutes should indicate the amount of time desired in their request. DOE might need to limit speakers to five minutes initially, but will provide additional opportunities as time permits. Written comments regarding the scoping process can also be submitted to DOE officials at the scoping meeting. Issued in Washington, DC, on November 4, 2009. Steve Isakowitz, Chief Financial Officer, Office of the Chief Financial Officer. [FR Doc. E9–27165 Filed 11–10–09; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF ENERGY Notice of Intent To Prepare an Environmental Impact Statement for a Proposed Federal Loan Guarantee To Support Construction and Start-Up of the Indiana Gasification, LLC, Industrial Gasification Facility in Rockport, IN jlentini on DSKJ8SOYB1PROD with NOTICES AGENCY: Department of Energy, Loan Guarantee Program. ACTION: Notice of Intent to Prepare an Environmental Impact Statement, Conduct a Public Scoping Meeting, and Notice of Proposed Floodplain and Wetland Involvement. SUMMARY: The U.S. Department of Energy (DOE) announces its intent to prepare an environmental impact statement (EIS) pursuant to the National Environmental Policy Act of 1969, as amended (NEPA), the Council on Environmental Quality (CEQ) NEPA regulations, and the DOE NEPA implementing procedures to assess the potential environmental impacts for its proposed action of issuing a Federal loan guarantee to Indiana Gasification, LLC (IG) (DOE/EIS–0429). IG submitted an application to DOE under the Federal loan guarantee program pursuant to the Energy Policy Act of 2005 (EPAct 2005) to support construction and start-up of a coal to substitute natural gas (SNG) facility in Rockport, Indiana (the VerDate Nov<24>2008 16:12 Nov 10, 2009 Jkt 220001 Facility).1 The Facility would utilize gasification technology with Illinois Basin coal as the feedstock to produce SNG. Other products from the gasification process would be sulfuric acid, argon, and electric power, all of which would be sold. The EIS will evaluate the potential impacts of the issuance of a DOE Loan Guarantee for IG’s proposed project and the range of reasonable alternatives. The purpose of this Notice of Intent (NOI) is to inform the public about DOE’s proposed action; invite public participation in the EIS process; announce plans for a public scoping meeting; solicit public comments for consideration in establishing the scope and content of the EIS; and provide notice of a proposed floodplain and wetlands assessment. DOE invites those agencies with jurisdiction by law or special expertise to be cooperating agencies. DATES: To ensure that all of the issues related to this proposal are addressed, DOE invites comments on the proposed scope and content of the EIS from all interested parties. Comments must be postmarked or e-mailed by December 14, 2009 to ensure consideration. Late comments will be considered to the extent practicable. In addition to receiving written comments (see ADDRESSES below), DOE will conduct a public scoping meeting in the vicinity of the proposed project at which government agencies, private-sector organizations, and the general public are invited to provide comments or suggestions with regard to the alternatives and potential impacts to be considered in the EIS. The date, time, and location of the public scoping meeting will be announced in local news media and on the DOE Loan Guarantee Program’s ‘‘NEPA Public Involvement’’ Web site (https:// www.lgprogram.energy.gov/NEPA2.html) at least 15 days prior to the date of the meeting. ADDRESSES: Public comments can be submitted electronically or by U.S. mail. Written comments on the proposed EIS scope should be addressed to: Mr. Doug Boren, Loan Guarantee Program Office (CF–1.3), U.S. Department of Energy, 1000 Independence Avenue, SW., Washington, DC 20585. Please submit one signed original paper copy. Electronic submission of comments is encouraged due to processing time required for regular mail. Comments can 1 The amount requested for the loan guarantee is not being disclosed at this time because it is business sensitive. Moreover, should DOE approve a loan guarantee, the amount may differ from the original request. PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 58265 be submitted electronically by sending an e-mail to: IG–EIS@hq.doe.gov. All electronic and written comments should reference Project No. DOE/EIS–0429. FOR FURTHER INFORMATION CONTACT: To obtain additional information about this NOI, the public scoping meeting, or to receive a copy of the draft EIS when it is issued, contact Doug Boren by telephone: 202–287–5346; toll-free number: 800–832–0885 ext. 75346; or electronic mail: Douglas.Boren@hq.doe.gov. 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; electronic mail: askNEPA@hq.doe.gov; or leave a tollfree message at 800–472–2756. SUPPLEMENTARY INFORMATION: Background EPAct 2005 established a Federal loan guarantee program for eligible energy projects that employ innovative technologies. Title XVII of EPAct 2005 authorizes the Secretary of Energy to make loan guarantees for a variety of types of projects, including those that ‘‘avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse 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. On September 22, 2008, the DOE Loan Guarantee Program 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, P.L. 110–161, which provides loan guarantee support for advanced coal gasification projects. The proposed IG project qualifies under this provision of the loan guarantee authority. Purpose and Need for Agency Action IG submitted an application to DOE for a loan guarantee in March 2009, to support construction and start-up of the Facility. The purpose and need for agency action is to comply with DOE’s mandate under EPAct 2005 by identifying and providing loan E:\FR\FM\12NON1.SGM 12NON1

Agencies

[Federal Register Volume 74, Number 217 (Thursday, November 12, 2009)]
[Notices]
[Pages 58262-58265]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-27165]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY


Notice of Intent To Prepare an Environmental Impact Statement and 
To Conduct a Public Scoping Meeting, and Notice of Floodplain and 
Wetlands Involvement To Support Construction and Startup of the 
Mississippi Gasification, LLC, Industrial Gasification Facility in Moss 
Point, MS

AGENCY: Department of Energy, Loan Guarantee Program.

ACTION: Notice of Intent to Prepare an Environmental Impact Statement 
and Conduct a Public Scoping Meeting, and Notice of Proposed Floodplain 
and Wetlands Involvement.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (DOE) announces its intent to 
prepare an environmental impact statement (EIS) pursuant to the 
National Environmental Policy Act (NEPA) of 1969, as amended, the 
Council on Environmental Quality (CEQ) NEPA regulations, and the DOE 
NEPA implementing procedures to assess the

[[Page 58263]]

potential environmental impacts for its proposed actions of issuing a 
Federal loan guarantee to Mississippi Gasification, LLC, (MG) and 
providing co-funding in a Cooperative Agreement with Leucadia Energy, 
LLC (Leucadia) and Denbury Onshore, LLC (Denbury) (DOE/EIS-0428). In 
addition, the U.S. Army Corps of Engineers and the U.S. Coast Guard 
will be cooperating agencies in the preparation of the EIS.
    MG, a wholly-owned subsidiary of Leucadia National Corporation, 
submitted an application to DOE under the Federal loan guarantee 
program pursuant to the Energy Policy Act of 2005 (EPAct 2005) to 
support construction and startup of the MG Industrial Gasification 
Facility (the Facility) in Moss Point, Mississippi. Leucadia and 
Denbury submitted an application to DOE for a cost-shared Cooperative 
Agreement pursuant to the American Recovery and Reinvestment Act of 
2009 (ARRA 2009) and Section 703 of the Energy Independence and 
Security Act of 2007 for a two-phase project to support carbon dioxide 
(CO2) capture at the Facility and subsequent enhanced oil 
recovery (EOR) sequestration. The EIS would also help DOE decide 
whether to fund the Leucadia-Denbury application.
    The Facility would be designed to produce upwards of 120 million 
standard cubic feet per day (MMSCFD) of pipeline-quality substitute 
natural gas (SNG) from approximately 7,000 tons per day of petroleum 
coke (petcoke) using gasification technology, coupled to acid gas 
recovery, and methanation. Marketable byproducts would include sulfuric 
acid, CO2, argon, and a small amount of electric power. MG 
plans to capture nearly 90% of the CO2 produced and sell it 
to Denbury under a long-term contract for use in EOR. The EIS will 
evaluate the potential impacts of DOE issuing MG a Federal loan 
guarantee for the proposed project, the funding of a DOE Cooperative 
Agreement with Leucadia and Denbury, and the range of reasonable 
alternatives. The purpose of this Notice of Intent is to inform the 
public about the DOE proposed actions, invite public participation in 
the EIS process, announce plans for a public scoping meeting to solicit 
public comments for consideration in establishing the scope and content 
of the EIS, and provide notice of the intent to prepare a floodplain 
and wetland assessment.

DATES: To ensure that all of the issues related to this proposal are 
addressed, DOE invites comments on the proposed scope and content of 
the EIS from all interested parties. Comments must be postmarked, or e-
mailed by December 14, 2009 to ensure consideration. DOE will consider 
late comments to the extent practicable. In addition to receiving 
written comments (see ADDRESSES below), DOE will conduct a public 
scoping meeting at which government agencies, private-sector 
organizations, and the general public are invited to provide comments 
or suggestions regarding the alternatives and potential impacts to be 
considered in the EIS. Further details about the public scoping meeting 
will be announced through local-area media and on the DOE Loan 
Guarantee Program Office Web site (https://www.lgprogram.energy.gov/NEPA-2.html) at least 15 days prior to the meeting. Advance requests to 
speak at the public scoping meeting may be sent to Dr. Alistair Leslie 
at the address indicated below prior to the meeting. Requests to speak 
may also be made at the time of registration for the meeting. However, 
persons who submitted advance requests to speak will be given priority 
if time should become limited during the meeting.

ADDRESSES: Written comments on the proposed scope of the EIS and 
requests to speak at the public scoping meeting should be addressed to: 
Dr. Alistair Leslie, Loan Guarantee Program Office (CF-1.3), U.S. 
Department of Energy, 1000 Independence Avenue, SW., Washington, DC 
20585. Electronic submission of comments is encouraged due to 
processing time required for regular mail. Comments can be submitted 
electronically by e-mail to: MG-EIS@hq.doe.gov. All comments should 
reference Project No. DOE/EIS-0428.

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
the MG project or this EIS, the public scoping meeting, or to receive a 
copy of the draft EIS when it is issued, contact Dr. Alistair Leslie by 
telephone: 202-287-5620; toll free number: 800-832-0885 ext. 75620 or 
e-mail: alistair.leslie@hq.doe.gov. For general information on the DOE 
NEPA process, 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; e-mail: askNEPA@hq.doe.gov or leave a 
toll-free message at 800-472-2756.

SUPPLEMENTARY INFORMATION:

Background

    EPAct 2005 established a Federal loan guarantee program for 
eligible energy projects that employ innovative technologies. Title 
XVII of EPAct 2005 authorizes the Secretary of Energy to make loan 
guarantees for various types of projects, including those that ``avoid, 
reduce, or sequester air pollutants or anthropogenic emissions of 
greenhouse 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.'' A principal goal of the loan 
guarantee program is to encourage commercial use in the United States 
of new or significantly improved energy-related technologies. DOE 
believes that accelerated commercial use of these new or improved 
technologies will help sustain economic growth, yield environmental 
benefits, and produce a more stable and secure energy supply. Pursuant 
to the provisions of Titles XV and XVI of the ARRA 2009 and Section 703 
of the Energy Independence and Security Act of 2007, DOE has 
competitively solicited applications for a requirement titled: ``Carbon 
Capture and Sequestration from Industrial Sources and Innovative 
Concepts for Beneficial CO2 Use.'' One of the objectives of 
this solicitation is to demonstrate advanced technologies that capture 
and sequester CO2 emissions from industrial sources into 
underground formations.

Purpose and Need for Agency Action

    MG submitted a Part I application to DOE for a loan guarantee on 
December 18, 2008, and submitted a Part II application on March 23, 
2009, to support construction and startup of the Facility. Leucadia and 
Denbury jointly submitted an application to DOE on August 6, 2009, for 
a two-phase project for compression power supply studies at the 
Facility; a measurement, monitoring, and validation study (MMV) for the 
utilization of recovered CO2 in EOR; compression and 
metering equipment at the Facility; and a 110-mile CO2 
pipeline to be funded, in part, with funds appropriated by ARRA 2009. 
The purpose and need for agency action is to comply with DOE's mandates 
under EPAct 2005 and ARRA 2009 by selecting eligible projects that meet 
the goals of these Acts. DOE is using the NEPA process to assist in 
determining whether to issue MG a loan guarantee to support the 
proposed project and whether to provide funding for a Cooperative 
Agreement with Leucadia and Denbury to support the work they proposed.

Proposed Action

    The DOE proposed action is to issue a loan guarantee to MG to 
support

[[Page 58264]]

construction and startup of the MG Facility in Moss Point, MS, and to 
provide funding to Leucadia and Denbury to partially support a two-
phase project for compression power supply and MMV studies, compression 
and metering equipment at the Facility, and construction of a 110-mile 
CO2 pipeline.
    As proposed the Facility would produce upwards of 120 MMSCFD of SNG 
from approximately 7,000 tons per day of petcoke using gasification 
technology, coupled with acid gas recovery, and methanation. The SNG 
would be the primary product and would be delivered to one or more 
nearby natural gas pipelines. Marketable byproducts would include 
sulfuric acid, CO2, argon, and a small amount of electric 
power. MG plans to capture nearly 90% of the CO2 produced 
and sell it to Denbury under a long-term contract for use in EOR. 
Leucadia and Denbury plan to undertake compression power supply studies 
at the Facility, install compression and metering equipment at the 
Facility, construct a CO2 pipeline from the Facility to an 
existing Denbury pipeline 110 miles to the north that already 
distributes CO2 for use in EOR, and undertake MMV for the 
utilization of the recovered CO2 in EOR. MMV for injection 
of at least 1 million tons of CO2 would be conducted at 
Denbury's EOR projects at the Heidelberg, Soso and/or the Eucutta oil 
fields in Mississippi and in the Citronelle oil field in Alabama.
    Approximately 119 tons per day of slag--the non-hazardous vitrified 
(glassy) solid product of gasification--would be shipped off-site for 
sale or disposed of as a non-hazardous waste. Up to 12 million gallons 
of water per day would be supplied from the Escatawpa River 
supplemented by water from the Pascagoula River, well water, and 
treated water near the site. Operation, maintenance, and general 
management of the Facility are estimated to require 177 full-time 
employees.
    The Facility would utilize approximately 115 acres of the 205-acre 
site at Moss Point, known as the Moss Point Industrial Technology 
Complex. The site is in southeastern Mississippi along the Gulf of 
Mexico, and is generally bounded by the Escatawpa River to the north, 
the Pascagoula River to the east, Grierson Street to the south, and an 
abandoned rail right-of-way to the west. The site has a designated 
industrial use, was previously the location of a paper mill, and has 
undergone remediation for past site contamination. Part of the proposed 
site at Moss Point is within a 100-year floodplain and other parts are 
within a 500-year floodplain. There are also wetlands on the site. 
Therefore, DOE will include in the EIS a floodplain and wetland 
assessment prepared in accordance with the DOE Regulations for 
Compliance with Floodplain and Wetland Environmental Review 
Requirements (10 CFR part 1022).
    The EIS will analyze supporting infrastructure and facilities, 
including rail interconnections with an extended rail spur and 
unloading facility; existing local roads and regional highways; an 
upgraded barge dock and unloading facility on the Escatawpa River; 
interconnection to an onsite 115 kilovolt transmission line or a 230 
kilovolt transmission line within 2 miles; interconnection to one or 
more nearby natural gas pipelines; and an existing CO2 
pipeline network 110 miles to the north to which an interconnecting 
pipeline from the Facility fence line would be constructed.

Alternatives

    In determining the range of reasonable alternatives to be 
considered in the EIS for the Facility, DOE identified the reasonable 
alternatives that would satisfy the underlying purpose and need for 
agency action. DOE currently plans to analyze potential impacts of the 
projects as proposed by MG and by Leucadia and Denbury, and the no-
action alternative. To the extent appropriate, DOE will also analyze 
design options available to MG and to Leucadia and Denbury, within the 
scope of the proposed actions (such as disposing slag and sulfur, 
transporting petcoke, and alternative pipeline corridors) and 
mitigation measures.
    Under the no-action alternative, DOE would not issue MG a loan 
guarantee and the project would not be constructed as part of the DOE 
loan guarantee program. This option would not contribute to the Federal 
loan guarantee program goals to make loan guarantees for energy 
projects that ``avoid, reduce, or sequester air pollutants or 
anthropogenic emissions of greenhouse gases; and employ new or 
significantly improved technologies.'' In addition DOE would not 
provide partial funding to Leucadia and Denbury, and the demonstration 
of advanced technologies that capture and sequester CO2 
emissions from industrial sources into underground formations would not 
be advanced.

Preliminary Identification of Environmental Issues

    DOE has tentatively identified the following environmental resource 
areas 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 the EIS should consider other 
resource areas or potential issues.

Public Scoping Process

    To ensure that all issues related to DOE's proposed action are 
addressed, DOE seeks public input to define the scope of the EIS. The 
public scoping period will begin with publication of this Notice of 
Intent and end on December 14, 2009. Interested government agencies, 
private-sector organizations, and the general public are encouraged to 
submit comments concerning the content of the EIS, issues and impacts 
to be addressed in the EIS, and 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. 
Comments must be postmarked, or e-mailed by December 14, 2009 to ensure 
consideration. (See ADDRESSES above). Late comments will be considered 
to the extent practicable. DOE invites those agencies with jurisdiction 
by law or special expertise to be cooperating agencies.
    A public scoping meeting will be held in the Moss Point area. 
Further details about the public scoping meeting will be announced at 
least 15 days prior to the meeting on the DOE Loan Guarantee Program 
Office Web site (https://www.lgprogram.energy.gov/NEPA-2.html) and in 
local media in the Moss Point, MS, area. Members of the public

[[Page 58265]]

and representatives of groups and Federal, state, local, and Tribal 
agencies are invited to attend. Displays and other forms of information 
about the proposed agency action, the EIS process, and the Facility 
will be available, with DOE personnel available for discussions with 
attendees. DOE requests that anyone who wishes to present oral comments 
at the meeting contact Dr. Alistair Leslie by phone, or e-mail (see 
ADDRESSES above). Individuals who do not make advance arrangements to 
speak may register at the meeting. Speakers who need more than five 
minutes should indicate the amount of time desired in their request. 
DOE might need to limit speakers to five minutes initially, but will 
provide additional opportunities as time permits. Written comments 
regarding the scoping process can also be submitted to DOE officials at 
the scoping meeting.

    Issued in Washington, DC, on November 4, 2009.
Steve Isakowitz,
Chief Financial Officer, Office of the Chief Financial Officer.
[FR Doc. E9-27165 Filed 11-10-09; 8:45 am]
BILLING CODE 6450-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.