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


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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.

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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 (http://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: [email protected]. 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: [email protected]. 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: [email protected] 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

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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 (http://www.lgprogram.energy.gov/NEPA-2.html) and in 
local media in the Moss Point, MS, area. Members of the public

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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