Roundup Power Project

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Roundup Power Project
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Development Participants
(Banks independent consultant)
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Bull Mountains MineLocation

• Bull Mountains Mine is located in Musselshell and
  Yellowstone Counties, Montana
• Southeast of the town of Roundup
• Approximately 35 miles north of the city of
  Billings, Montana

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Mine Status

• Mining began in August 2003
• Contracts in place
• First shipments in September 2003
• Test burns at major utilities
• Additional mineral rights purchased

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Technical Description of Roundup Power Project
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Roundup Power ProjectBasic Characteristics

• Mine mouth power generation facility
• 2 x 350 MW (net) units
• Pulverized coal, subcritical (2400
  psi/1000F/1000F)
• Pollution control
• Dry scrubber for SOx control
• Selective catalytic reduction for NOx control
• Baghouse for particulates
• Air-cooled condenser

FGS Associates, LLC
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Roundup Power ProjectBasic Characteristics

• Water supply from well field (3 wells _at_ 400 gpm
  each)
• Water collected and recycled zero discharge
• 35-mile transmission line to Broadview substation
• Coal transported by conveyor from mine wash plant
  directly to the power plant.
• Two 175-meter stacks

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Performance Data andMaterials Requirements

• 386 MW gross, 350 MW net per unit (9.3 aux.
  power)
• 9,840 Btu/kWh net plant heat rate (full load,
  including allowance for operating degradation)
• Coal consumption
• 165 tons/hour/unit (full load)
• 1.31M tons/year/unit (90 capacity factor)
• Air emissions (values for permitting, two units)
• SOx 0.12 lb/MBtu (2160 tons/year/unit)
• NOx 0.07 lb/MBtu (1260 tons/year/unit)
• Particulates 0.015 lb/MBtu
• CO2 211 lb/MBtu

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Plant Area
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Air Pollution Emissionsin Permit Application

• Pollutant Emissions Control Technologies
• Nitrogen Oxides 0.07 lb / MBtu Selective
  catalytic reduction 90 overall
  reduction Overfire air Low NOX burners
• Sulfur Dioxide 0.12 lb / MBtu Low sulfur coal
• 94 Overall Reduction Dry scrubber
• Particulate Matter 0.015 lb / MBtu Pulse-jet
  baghouse
• 99.8 overall reduction

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Source US EPA Environmental Scorecard 2000 Feb.
2002 Clear Skies Administration
Proposal US DOE 2002 Annual Energy Outlook
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Other Permits

• Water Rights
• FAA
• Letter from COE no permits required
• Others routine maximum 30 day lead time

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Key Milestones

• Began permitting July 2001
• Submitted air permit January 14, 2002
• Draft air permit issued August 12, 2002
• Record of decision January 31,2003
• Final awards major equipment packages Oct 2004
• Unit 1 boiler hydro test Mar 2007
• Commercial service for Unit 1 March 2008
• Commercial service for Unit 2 July 2008

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Overall Process - Traditional

1. Permitting
2. Final Engineering
3. Construction
4. Operation

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Overall Process - Current

• Permitting
• Lawsuits
• Final Engineering
• Construction
• Operation

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Permitting Status

• Permit filed 1/14/02
• Responded to questions from FLMs (issue is
  regional haze)
• Completion letter from MDEQ received on 8/1/02
• Draft permit issued 8/12/02
• Record of Decision 1/31/03

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Air Permit Appeal

• Filed 2/15/03
• Usual enviro groups
• Kitchen sink approach
• No new issues
• Hearing on June 4 6, 2003
• Board dismissed virtually all items in appeal

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Permit Lawsuit

• Filed 11/26/03 in Musselshell County
• Challenges Board of Environmental Review appeal
  decision
• Interventions in our behalf by WETA, and AFL-CIO
• Record is clear on all issues
• Court ruled strongly in favor of the permit on
  March 31, 2004

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MACT Letter Appeal

• Filed in December 2003
• BER appointed Hearing Examiner to hear appeal
• Stated issue is mercury control
• Another vehicle to try to stall the project
• Hearing held on April 20 21, 2004
• Hearing officer recommended denying all portions
  of the appeal.
• BER denied petition 7-0 on June 4, 2004

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EIS Status

• Not required under Montana rules
• Volunteered to do EIS
• Approved EIS for mine includes plant property
• Scoping Hearing 4/4/02
• EIS supplement submitted 5/21/02
• EIS draft to be issued 11/15/02
• Hearing 12/5/02
• Record of Decision 1/31/03

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EIS Lawsuit

• Filed in Lewis Clark County
• Motion to change venue to Musselshell County by
  MDEQ, BMDC1 and intervenors (WETA AFL-CIO)
  approved
• Court date set for 11/29/04

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DOI Lawsuit

• Filed October 29, 2003 by Nat. Parks Conservation
  Assoc., Greater Yellowstone Coalition, Wilderness
  Soc., private individual
• Objects to DOI finding of no significant impact
• BMDC1 to enter as intervenor

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Construction

• Engineering released in April
• 1st package to be released for bids in June
• Start late August
• 2nd package to be released for bids in August
• Start October

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Economic Impact of Roundup Power Project

• Taxes on 2.7 million tons/year of coal used
• Property and school taxes on 800 million
  investment
• Transmission taxes on 5.5 m Mwh/year
• Payroll and income taxes on 150 employees at
  about 40,000/year additional temporary
  maintenance activities
• Several million in direct local purchases and
  contracts
• Ripple or multiplier effect of payroll and local
  purchases ( 50m/yr)