South Heart Comments & Objections FINAL

8/7/2019 South Heart Comments & Objections FINAL

http://slidepdf.com/reader/full/south-heart-comments-objections-final 1/22

JamesR.DeutschDirector,ReclamationDivisionNorthDakotaPublicServiceCommission600E.BoulevardAve.Dept.408Bismarck,ND58505-0480

March15,2011

Re:SouthHeartLigniteMineApplicationInformalConferenceRequest,

CommentsandObjections

DearMr.Deutsch:WetheundersignedindividualsandorganizationsrespectfullysubmitthesecommentsonandobjectionstotheminepermitApplication(“Application”)submittedbySouthHeartCoalLLC(“Applicant”)andrequestaninformal

conferenceonthematteratSouthHeart,fortheconvenienceofthosemostaffected.Wealsorequestaccessforourselvesandourexpertstotheminesite(“Site”),forthepurposeofgatheringinformationrelevanttotheforeseeableimpactsoftheproposedminingactivities.Inaddition,werequestthatacopyofanelectronicorstenographicrecordoftheinformalconferencebemadeavailabletotheundersignedassoonaspossibleaftertheinformalconference.WeidentifyourselvesasObjectorstotheproject,andourinterestsinthematterinclude:

• Detrimentalimpactstoourresidencesandpersonalhealthfromthe

proximityofamassivestripminingoperation(“Mine”),blasting,hauling,processing,fugitivedust,wateraccess,watercontamination,etc.,causeddirectlybytheminingoperation;

• DetrimentalimpactstolocalwaterrecreationalopportunitiescausedbydisruptionofanaturalhydrologicalsystemandintroductionofpollutantsintolocalwatersbytheMine;

• Detrimentalimpactsonouragriculturalandbusinessinterests,includingtourismattractedbytheBadlandsandTheodoreRooseveltNationalPark,aswellasthehealthoflivestock,bycommencementofminingactivitiesinproximitytoanareathatiscurrentlyapristineandwildlandscape,withattendantimpactstoairqualityandqualityoflifegenerally;

• DetrimentalimpactsonenjoymentoftheBadlands,TheodoreRooseveltNationalPark,andothernaturalresourcesbyNorthDakotaresidentsandvisitorsfromaroundthecountry;

• Thelikelihood,giventhepatternestablishedtodatebyNorthDakotacoalmineoperators,thatreclamationactivitieswillbewhollyinadequatetorestorethesitetoitscurrentstateanduse,andtheresultingprospectofpermanentdegradationofthelandandwateronandneartheMine;and



SouthHeartCoalitionCommentsandObjectionstoSHLMApplication

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• GlobalclimateimpactscausedbycombustionofcoalminedatSouthHeartandmethanereleasedduringtheminingprocess,includingchangesinweatherpatternsthatwilldetrimentallyimpactagricultureinourregionandincreasedlikelihoodofnaturaldisastersduetodisruptedclimatepatterns.

AftermanyvolunteerandprofessionalhoursspentreviewingthelengthyApplication,weconcludethattheApplicationinitscurrentformisincompleteduetomanyomissions,oversights,andincompleteanalyses,includingthelackofotherrequiredenvironmentalpermittingthatwouldprovideimportantinsightintotheactualimpactstobeanticipated.ThereforewerequestthatthePSCreviseitsfindingthattheApplicationiscompleteandsuspendthereviewpendingcompletionofallrelevantenvironmentalpermittingprocesses.Foreaseofreview,weincludeaTableofContentsasaguidetothesecomments:

TableofContentsCOALBEDMETHANERECOVERYACTIVITIES ..............................................................................3

HYDROLOGICALIMPACTS...................................................................................................................3SUMMARYOFOVERBURDENCHARACTERISTICSISINADEQUATE....................................................................3BASELINEMONITORINGANDTHEPROPOSEDMONITORINGPLANAREINADEQUATE ...............................5

GroundwaterMonitoring..................................................................................................................................6 SurfaceWaterMonitoring................................................................................................................................7

IMPACTSTOGROUNDWATERQUANTITY ............................................................................................................7IMPACTSTOGROUNDWATERQUALITY ...............................................................................................................8ALLUVIALVALLEYIMPACTS ....................................................................................................................................8PROBABLEHYDROLOGICCONSEQUENCESANDCUMULATIVEHYDROLOGICALIMPACTASSESSMENT. .10

HYDROLOGICALDAMAGEPREVENTIONRECOMMENDATIONS ...................................................................... 11

OTHERIMPACTSOFMININGACTIVITY....................................................................................... 12URANIUMRELEASE ................................................................................................................................................ 12PALEONTOLOGICALRESOURCES.......................................................................................................................... 12CLIMATEIMPACTS.................................................................................................................................................. 12

RECLAMATIONISSUES....................................................................................................................... 13HYDROLOGICRECLAMATIONPLANISINADEQUATE ....................................................................................... 13SOILRECLAMATIONPLANISINADEQUATE....................................................................................................... 14NORTHDAKOTAHASAPATTERNOFINADEQUATECONTEMPORANEOUSRECLAMATION...................... 16

ECONOMICANDSOCIALIMPACTS ................................................................................................. 16

IMPACTSTOAGRICULTURE .................................................................................................................................. 16IMPACTSTOTOURISM ........................................................................................................................................... 17IMPACTSONLOCALCOMMUNITY,INFRASTRUCTURE,SOCIALSERVICES .................................................... 17COALVALUEISOVERESTIMATED ....................................................................................................................... 18ECONOMIC&TECHNICALFEASIBILITYOFCOALPROCESSINGPLANSAREQUESTIONABLE ................... 18

PROCEDURALANDETHICSISSUES................................................................................................ 19OMITTEDANALYSISOFBLMUNSUITABILITYDETERMINATIONANDFEDERALCOALIMPACTS ........... 19CORPORATEDISCLOSURE ..................................................................................................................................... 20




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GTLENERGYCOALDRYINGPLANTISAMINEMOUTHFACILITYIMPROPERLYEXCLUDEDFROMTHEAPPLICATION........................................................................................................................................................... 20PSCCOMMISSIONERS’CONFLICTSOFINTEREST ............................................................................................. 20

ContributionstoCramerCampaignbySouthHeartFinanciallyInterestedParties:..........21ContributionstoKalkCampaignbySouthHeartFinanciallyInterestedParties: ................ 21

CONCLUSION ......................................................................................................................................... 21

CoalBedMethaneRecoveryActivitiesTheApplicationincludesinsufficientanalysisofanymethanepresentattheSiteandofanycoalbedmethanerecoveryactivitiesthatmaytakeplace.Ifsignificantamountsofmethanearepresent,eithermethanerecoverywilltakeplace,whichwillcausequantifiableimpacts,orrecoverywillnottakeplace,whichwillresultinreleaseofapotentgreenhousegasdirectlytotheatmosphere.Somediscussionofthefutureofanymethanecontainedatthesiteisappropriateinanyevent.If

ApplicantshavedeterminedthatthereareonlynegligibleamountsofmethaneattheSite,thosefindingsshouldbenotedintheApplication.WerequestananalysisofmethaneattheSiteandhowitwillbehandled.

HydrologicalImpactsFederalandstatesurfacemininglawsexplicitlyrequireprotectionofthehydrologicbalance.Damagetothehydrologicbalancemustbeminimizedwithinthepermitarea.Outsidethepermitarea,materialdamagetothehydrologicbalanceisprohibited.Thehydrologicbalanceconsistsofthewaterquantityandqualityofeachelementofthehydrologicbalance(i.e.,eachaquifer,eachspring,eachstream,

eachpond,etc.),theflowamongorbetweentheindividualelements,andseasonalvariationsofquality,quantity,andinter-elementflows.TheApplicationassubmitteddoesnotfulfilltheseminimumcharacterizationrequirements.TheProbableHydrologicConsequences(PHC)statementistheApplicant’sintegratedstatementoftheexpectedconsequencesoftheminingandreclamationoperationsproposedintheApplicationtoreducethedamagetothehydrologicbalancetoacceptablelevels.Withoutathoroughunderstandingofthehydrologicbalance,anyprojectionsofconsequencesarespeculative,withnobasisfortheoperatortoassertthatdamagetothehydrologicbalancewithinthepermitareaisminimizedandthatmaterialdamagetothehydrologicbalanceoutsidethepermitareawillnotoccur.ThePHCstatementis,therefore,inadequateandprecludesapprovaloftheApplication.WerequestmodificationofthePHCinresponsetothesecommentsorrejectionoftheApplicationasinadequate.

SummaryofOverburdenCharacteristicsIsInadequate

TestingconductedonoverburdenmaterialsthatwillbedisturbedduringminingindicatedhighpotentialforSHLMtoimpairsurfaceandgroundwaterqualitywithinandoutsideofthepermitarea.Sodiumadsorptionratio(SAR)testingwas




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performedbytheapplicantonoverburdensoilslocatedabovetheDcoalseamasrequiredbyNDAC69-05.2-08-05-2(c).ResultsoftheSARtestingreportedinthepermitApplication(Section2.3.4.2)establishedthatapproximately57%ofthesampleshaveSARvaluesgreaterthan12and35%haveSARvaluesgreaterthan20.PSCPolicyMemorandumNo.3setsaSARvalueof12asthethresholdfortoxic

overburdenmaterials.Incasessuchasthis,wheretoxicoverburdenmaterialispresent,supplementalinformationisrequiredtoevaluatethehydrologicconsequencesofmining.SyntheticPrecipitationLeachingProcedure(SPLP)testingwasconductedtoevaluatefurtherthepotentialforoverburdenmaterialstoimpactwaterquality.TheSPLPisanon-buffered,short-duration,highliquid-to-waste,agitated,laboratoryleachingprocedureusinganextractingfluidtheapproximatecompositionofprecipitation.ThetestusestheanalyticalproceduresofEPAMethod1312,anacceptedUnitedStatesEnvironmentalProtectionAgencymethod.WhiletheSPLPprovidesanindicationofthetypeandrelativeconcentrationsofcontaminantsthat

mightbeexpectedtoleachfromoverburdenmaterialsaswatertravelsthroughoverburden,liketheTCLP,itcannotpredicttheconcentrationsinleachatethatdoesform.AmongthefindingsoftheSPLPanalysesreportedinSection2.3.4.9are:

• ElevatedTotalDissolvedSolids(TDS)concentrations,16ofwhichwereabovetheEPASecondaryDrinkingWaterStandardof500mg/l,weredetectedintheSPLPleachate.TheApplicationacknowledgesthatanincreaseinTDSisexpectedduetodissolutionofsaltsandmineralsintheoverburdenmaterials.

• Selenium(2samples)andzinc(43samples)weredetectedintheSPLPleachateatconcentrationsgreaterthantheirNorthDakotaAcuteAquaticLife

Standards(NDAC33-16-02.1).Othermetalsincludingcadmium,copper,leadmercury,andnickelweredetectedinconcentrationsinexcessoftheNorthDakotaChronicLifeStandards(NDAC33-16-02.1).IneachofthesecasestheApplicantstheorizethatmixingofthere-placedoverburdenwilleffectivelydecreasetheconcentrationsofthesemetalsinfieldleachatetobelowapplicablestandards.Thispostulationiscuriousbecause,a)theSPLPleachateconcentrationsareoftensignificantlybelowtheconcentrationsthatactuallyforminthespoilduetotheextremelylongcontacttime(essentiallyforever)andhighsolid/liquidratioexperiencedbygroundwaterflowingthroughreclaimedoverburdenrelativetothetestprotocol,andb)thepatternsofexceedancesofgroundwaterandsurfacewaterqualitystandards,

asisseenatotherpreviouslyminedlocationsinNorthDakotawithsimilaroverburdenstrata.

• Arsenicwasdetectedin105of122leachatesamplesand66ofthosewereabovetheEPAPrimaryDrinkingWaterStandard0.01mg/l.TheApplicantshypothesizethatactualfieldconditionsliketherock/waterratioandhigherpHofstockpilerunoffwillresultinlowerarsenicconcentrationsthanweredetectedbytheSPLP.Studiesofarsenicmobilityingeologicsystemsestablishthatneitherhigherrock-to-waterratiosinthespoilnorhigherpH




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argueforlowerarsenicconcentrationsthanreportedfromSPLPtests.Further,otherfieldconditionssuchasthepresenceofacid-formingmaterialsinoverburden,competingspeciesforadsorptionsites,andextremelylongcontacttimesmayalsoproducemoreconcentratedfieldleachatethanSPLPleachateandresultinwaterqualitythatexceedsstandardsmoreoftenorat

higherlevels.

ResultsoftheSPLPtestpromptedtheApplicantstodevelopandruntheGroundWaterLeachProcedure(GWLP)test.1GWLPisanunofficialandun-reviewedleachingtestdevelopedbyGolderAssociatesandNorthernAnalyticalpurportedlytodevelopabetterunderstandingofthehighlevelsofleachedarsenicfromSHLMoverburden.TheGWLPusedwaterobtainedfromoneon-sitewell,ratherthansyntheticprecipitation,asthelixiviantintheSPLPprocedure.ResultsobtainedfromtheGWLPshowedlower,butstillsignificantconcentrationsofarsenicinsimulatedleachate.Theobviousunderstandingfromthealternativetest–thatdifferentleachingfluidsleachdifferentconcentrationsunderlaboratoryconditions–does

nothelppredictactualimpacts.UnfortunatelyeventhesomewhatlowerlevelofarseniccontaminationpredictedbytheunofficialGWLPtestisnotlikelytoberealized.Forwaterqualityaftermining,thecontrollingfluidwillbespoilleachatereactingwithspoilatrock-to-waterratios50-foldthatofthelaboratoryconditionsovervirtuallyunendingperiodsoftime.ThelaboratoryleachingtestsconfirmthatTDSandmetalmobilityarealikelyproblemforthesespoils.Post–mininggroundwaterwillbeofsignificantlydifferentchemistrythanthepre-mininggroundwaterusedintheGWLP.Theleachingandacidformingpotentialofreclaimedoverburden,notedabove,islikelytoresultindegradationofgroundwaterandsurfacewaterqualityin

theareaofSHLM.ApplicantsdoconcedethatatleastarsenicshouldbeexpectedtobedetectedinthesurfaceandgroundwatermonitoringprogramsatSHLM,evenifnosuchconcessionismadewithregardtoothermetalslikelytodegradethegroundwaterandsurfacewatersystemsinthearea.TheabilityoftheproposedmonitoringsystemtodetectcontaminationfromSHLMwillbediscussedinaseparatecomment.

BaselineMonitoringandtheProposedMonitoringPlanAreInadequate

Applicants’waterlevelmonitoring,whichtookplace“monthlybetweenNovember2006andOctober2007andquarterlyfromthefirstquarterof2008throughthe

fourthquarterof2009”isinadequatebecausetheareawasexperiencingdroughtconditionsduringmostofthisperiod.Duringthefewtimeswhenwaterwasplentiful,anumberofmonitoringstationsbecameinundatedandlikelyprovided

1The relationship between the GWLP of the Applicants and the synthetic groundwater leaching procedure

(SGLP), a procedure developed in the mid-1980s by the Energy and Environmental Research Center at the

University of North Dakota (David Hassett, 1987) has not yet been determined. The SGLP has similar

design and has demonstrated similar problems to the SPLP and the TCLP.




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unreliableinformation.TheApplicationdiscussesneitherproblemanddoesnotappeartoaddresstheseissues.Upgradientanddowngradientgroundwatermonitoringarerequiredtoprovideacompletepictureofthewateraccessandqualityimpactsofminingactivities.The

Applicationprovidesinsufficientevidencethatmonitoringsitesadequatelyevaluatethehydrologicalfunctionofthefullareathatmaypotentiallybeaffectedbyminingactivities.ThemonitoringprogramsproposedintheApplicationarealsoinadequate.Themonitoringplanmustmonitoratallplaces,atalltimes,andforsufficientdurationsthatarenecessarytoidentifywhere/whenconditionsofconcernmayexistordevelopasaresultofminingandreclamation.Themonitoringplansmustcollectdataattimesandplacesthatallowtheapplicant(andtheagencyandpublic)toverifythattheactualimpactsofminingandreclamationareconsistentwiththeprojectedimpactslaidoutintheProbableHydrologicConsequences(PHC)

statement.IntheeventthattheresultsofminingandreclamationdepartfromtheprojectionsofthePHC,themonitoringplanmustbeabletodiscernchangesinquantityandqualitythatareofconcern.Further,that“concern”mustbequantifiedwithnumericalvalues,rangesofvaluesortrends(i.e.,standardsortriggerlevels)thatallowandcauseactionstobetakentopreventmaterialdamagetothehydrologicbalanceoutsidethepermitarea.Anadequatemonitoringplan,inconjunctionwiththeHydrologicReclamationPlan(HRP),willrequirethatspecificactionsbetakenwhenconcernsareidentifiedandwhatthoseactionswillbe.Themonitoringprogramsdelineatedaredeficientin,orsimplymissing,eachoftheseelements.

GroundwaterMonitoringTheApplicationdescribesgroundwaterflowintheOverburden–DCoalAquiferasgenerallynortheasttowardtheHeartRiver.DischargefromtheOverburden–DCoalAquiferismainlytotheHeartRiverthroughalluviumandsubsurfaceoutflowtothenortheast(Section2.5.2.7).Unfortunately,duringactivemining,groundwaterflowinthealluvialandshallowbedrockaquifers(abovethebaseoftheDcoal)willbedominatedbypumpingattheactiveminepits.Aconeofdepressionwilldevelopthatwillinducegroundwaterflowtowardthepitswithexcesswaterbeingdischargedunderasurfacedischargepermit.Thisinwardflowtowardtheconeofdepressionwillbringunimpactedwaterfromsurroundingareas,pasttheperimetermonitoringwells,effectivelyrenderingtheproposedgroundwatermonitoring

systemunabletodetectgroundwaterdegradationcausedbymineoperationsuntilminingoperationsarecompleteandsufficientrechargehasoccurredtore-introduceoutwardflowfromtheminedarea.Onceminingiscompleteandpumpingisterminated,groundwaterwilleventuallyreboundtoequilibriumconditions,ultimatelyexitingthesitepastthepermitboundaryorintotheSouthHeartRiveroritstributaries.However,bythetimeequilibriumflowconditionsarere-established,themonitoringsystemwillhave




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beenremovedandbondsreleased,leavingthelocalresidentsandStatetodealwiththeresults.Hydrologicconditionsmustbemonitoreduntilthefinalequilibriumconditionhasbeenestablishedifatrueindicationoftheeffectsofminingongroundwaterqualityistobeobtained.TheApplicationshouldbedeniedunless,amongotherthings,themonitoringplanrequiresmonitoringuntilequilibrium

conditionsarere-establishedandthefateandtransportofcontaminantsisunderstood.

SurfaceWaterMonitoring

ThesurfacewatermonitoringplanprovidedwiththeApplicationprovidesacursorydescriptionofaminimalsurfacewaterflowandqualitymonitoringthatmightbeimplementedunless“analternative(i.e.,reduced)listofmonitoring

locationsandparametersmaybeimplementedifwarrantedandapprovedbythe

PSC.”ThesurfacewatermonitoringprogramdescribedincludesonlyonemonitoringpointontheHeartRiverlocatedwelldownstreamofthesiteinthetownofSouthHeart.Thatmonitoringpointwillbeinsufficienttodetectdepletionof

baseflowintheHeartRivernearthesitecausedbydewateringactivitiesatSHLM.Monitoringofsurfacewaterisproposedtooccuronlythroughcompletionofthe“active(e.g.,non-reclamation)miningperiod” .Directdischargefromthereclaimedoverburdenaquiferisnotexpectedtobeginuntilequilibriumconditionsareestablished,wellaftertheplanneddiscontinuanceofsurfacewatermonitoring.Inaddition,therearenoproposedmonitoringlocationsalongtheHeartRiveradjacenttotheSHLMtodetectdischargefromgroundwaterintotheriver.TheproposedsurfacewatermonitoringplanwillnotsampleattheappropriatetimesorlocationsnecessarytodetectimpactstotheHeartRiverfromminingatSHLM.TheApplicationprovidesnoevaluationoftheamountofexpectedHeartRiver

baseflowdepletionthatwillbeinducedbyactiveminedewatering.Neitherdoesitcontainanevaluationoftheeffectofdischargeofcontaminatedgroundwateronpost-miningwaterqualityintheHeartRiver.TheApplicationshouldbedenieduntilthesurfacewatermonitoringplanrequiresmonitoringintheHeartRiverattimesandlocationscapableofdetectingdepletionofbaseflowduringmining,anddischargeofcontaminatedgroundwaterpost-mining.Wethereforerequestmodificationoftheproposedmonitoringprogramsandaugmentationofthebaselinemonitoringsubmitted,orrejectionoftheApplicationbasedonthelackthereof.

ImpactstoGroundWaterQuantity

ThetextdescribesaconeofdepressionthatwillresultfromdewateringtheDCoalandoverlyingunitsthatwillextendtothedepthofexcavation(bottomoftheDCoal)andclaimsthattheextentofsignificantdrawdownwill“likelybewithinonemileoftheminepits”.Noexplanationofhowthisestimatewasdevelopedisprovided.Withdrawalofgroundwaterdoesmorethansimplycreateaconeofdepression.Itreducestheactualquantityofgroundwaterwithintheareaofimpact




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anditchangesthedirection(s)ofgroundwaterflow.Eachofthesemodificationstothehydrologicbalancehastheabilitytomateriallydamagethehydrologicbalanceorimpactgroundwaterusesandusers.Adetailedevaluationofthedecreaseingroundwaterquantity,includingthedistancethattheconeofdepressionwillextendpastthepermitarea,aswellastheeffectsthatthewithdrawalofgroundwaterwill

haveontheSouthHeartRiver,otherareasurfacewaterbodies,andhuman,animal,andenvironmentalusesandusersofthegroundwaterisneededtoadequatelydeveloptheProbableHydrologicConsequencesoftheSHLM.

ImpactstoGroundWaterQuality

TheApplicationstatesthat,“BasedonliteratureandobservationsatotherNorthDakotacoalmineoperations,TDSconcentrationsmayincreasetwotothreetimesrelativetopre-miningconditions”.Thisistheonlyquantificationprovidedfortheexpecteddegradationofgroundwaterquality,eventhoughtheoverburdentestingperformedbytheApplicantsconfirmsthatmetalswillbeleachedfromtheoverburdenandcriticalsoilchemistryproperties,e.g.,SAR,maybeunacceptable.No

evaluationorplanstomitigatetheseimpactsareidentified.Nostandardsortriggerlevelsthatcauseactionstobetakenbeforematerialdamagetothehydrologicbalanceoccursoutsidethepermitarea,nostandardsortriggerlevelsthatcauseactiontominimizedamagewithinthepermitarea,andnospecificactionsareincludedthatwouldbetakenwhentrendsindicatematerialdamageislikelyoutsidethepermitarea.Thetimeperiodoverwhichgroundwaterqualitywillbeimpactedisdescribedasbeingtemporary,witheventualequilibriumwaterqualityconditionsbeingsimilartopre-miningwaterquality.Whatisnotmentionedisthattheactiveminelifeisplannedtobe30yearsandthatreturningthegroundwatersystemtoany

equilibriumchemicalconditionswillrequiremanydecadesafterthat,letalonereturningittoconditions“similartopre-mining.”Ineffect,thegroundwaterresourceoftheSHLMmineareaandtheSouthHeartRiverwillremainimpactedforseveralgenerationsofNorthDakotans.AcompletediscussionofProbableHydrologicConsequencesmustidentifytheexpectedflowdirection,flowrates,contaminantconcentrations,contaminantfatesandseasonalvariationthereofthatareexpectedasaresultofmining.Itmustthen,inconjunctionwiththeHydrologicReclamationPlan,identifystepstobetakentomitigateimpactstooff-sitegroundwaterresourcessufficientlytopreventmaterialdamagetothehydrologicbalanceoutsidethepermitarea.Noneofthisisinthis

Application.TheApplicationisdeficientandtheagencyisrequiredbylawtodenythepermituntiltheminingplanactuallyaddressesprotectionofthequantityandqualityofgroundwater.

AlluvialValleyImpacts

IntheApplicationasaccepted,ApplicantshavenotsubstantiatedtheirclaimsthattheSiteisnotanalluvialvalleyfloor.Objectorsrequestacopyofanyinformation




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submittedtothePSConthequestionofalluvialvalleyimpacts,andsubmitthefollowingobjectionstotheApplication.Thestructureoftheminingoperation(seeApplicationFig.3.1-1)appearsdesignedtoallowconvenientaccesstothefirststrippingandminingareawithrelatively

loweroverburdentocoalseamratio(easternhalfofPitNo.1inSection22)bysitinghaulroad,holdingponds,andminingoperationsbuildingswithintheSouthBranchHeartRiver(SBHR)alluvialvalley.Infurtheranceofthisgoal,mineoperatorshave(a)soughtadeclarationfromtheNDPublicServiceCommission(PSC)thattheSBHRalluvialvalleyisnotanalluvialvalleyforlegalcoalstripminingpurposes,and(b)bypositioningtworelativelysmallproposedminingareas(No.3,2038-2040,andNo.4,2040-2042)tothesoutheastsideoftheSBHRalluvialvalley,expandingthecontiguousproposedpermitareatotheoppositesideofthevalleyfromthemuchlargerproposedminingareas,No1(2014-2021)andNo2(2021-2038).OfparticularnoteisamassivehaulroadproposedtobebuiltthroughtheSBHRalluvialvalleywithonesectiontightlywedgedbetweenportionsoftheSBHR

andtheeasternedgeofproposedPitNo.1,attheedgeofwhichminingoperationsareslatedtobegin.Aspartofstripminingoperations,watersflowingintotheactivepitfromsurfaceandgroundsourcesareremoved(dewatered)toholdingpondsforsettlingofsuspendedsolidsandthendischargedtosurfacewaters.ProposedPondsNo.1andNo.2arelocatedwithintheSBHRalluvialvalleyinSection22withshortdischargeditchestotheriver.Qualityofwaterspumpedtoholdingpondsfrompitdewateringcanbeinferredfromanalysesofgroundwaterinbothoverburdenandthe“D”coalstratumtargeted

formining(Section2.5.2.5).Overburdenwaterswerevariableintotalsaltload(measuredaselectricalconductivity,EC),buttendedtohaveelevatedsodicity,meaningthattheanionicratioofsodiumtocalciumplusmagnesium(measuredasthesodiumadsorptionratio,SAR)iselevated.Watersincoalstratawerehighlyvariable,butmanysamplesshowedelevatedECandSARvalues.Thequalityofsurfacewatersresultingfromcontactwithstripminedoverburdenmaybeinferredfromleachingtests(Section2.3.4.9):

• 25%ofsamplesshowedSARvaluesgreaterthan12,anelevatedbenchmarkvalueindicatinglackoffitnessforirrigation,animal,orhumanuse;

• Totaldissolvedsolids(TDS)ofmultiplesampleswereaboveEPAsecondarydrinkingwaterstandards;

• Multiplesampleshadmaximumleachateconcentrationsofaluminum,iron,andmanganeseaboveEPAsecondarydrinkingwaterstandards;

• RelativetoNDchronicaquaticlifestandardsdefinedinthestateAdministrativeCode,severalmaximumleachatetestsexceededsetlevelsforthefollowingelements:cadmium,copper,lead,mercury,nickel,selenium,andzinc;and




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• 66outof122leachatetestsyieldedarseniclevelsaboveEPA’sdrinkingwatermaximumcontaminantlimit(MCL).

Asnotedabove,proposedholdingpondsaredesignedtoreceivepitwatersandactivepitzonerunoffwaters.Aftersedimentationiscompleted,dischargewill

occur.Asnotedinthedraftpermitnarrative,inordertocomplywithwaterqualitystandards“…ponddischargewaterwillbedilutedwithothersources.”Injudgingenvironmentalrisksfromwatercontroloperationsconductedaspartofcoalstripmining,oneimportantconsiderationistherelativehydraulicconductivitiesofvarioussoilandlandtypes.Unminedalluviallands,suchastheSBHRalluvialvalley,haverelativelyhigherhydraulicconductivity,andholdingpondsmayingeneralbe“leaky”unlessprovisionsaremadeintheirconstructiontoachieverelativeimpermeability.UnmineduplandsintheSouthHeartareahavegenerallylowsubsoilpermeabilityduetodominancebysmectiticclaymineralogy,howeverpermeabilityisconferredbysuchfactorsasdeeprootpenetrationandsoil

animalaction.Sodicminespoils,thetypethatwouldpotentiallybecreatedbytheproposedminingactivity,arerelativelyimpermeable,butaresubjecttocatastrophicpipingerosionthatcanemptywaterimpoundmentsveryquickly.

ProbableHydrologicConsequencesandCumulativeHydrologicalImpact

Assessment

Thepermittingagencyisrequiredtoconsiderthehydrologicimpactsofall anticipatedmininginacumulativehydrologicalimpactassessment,orCHIA.NDCC§38-14.1.21(3)(c).The7000acrefootprintofthesiterezonedforminingraisesthepossibilitythattheminingApplicationisincompleteinscopeanddoesnotevaluatethefullimpactsofminingactivitiescontemplatedbyApplicants,includingthosethat

mayaffectfederalcoalatthesite.TheApplicationdescribesconsiderablecharacterizationofthecurrentflowandchemistryoftheHeartRiver,itstributaries,andotherpondsspringsandseeps.ThecurrentHeartRiverisdescribedasagainingstreaminthevicinityoftheproposedmine,meaningthatgroundwaterdischargestoriversedimentsandaddswatertoriverflow.Section2.6.3describesflowintheHeartRiverashavinganaveragebaseflowof1.1cubicfeetpersecond(cfs),excludingthemonthsofMarchandAprilwhenstreamflowisdominatedbysnowmelt.TheeffectthatdewateringoftheOverburden–D

CoalaquiferwillhaveonflowintheHeartRiverinnotincludedasaPHC.DevelopmentoftheconeofdepressionintheOverburden–DCoalaquiferwillreducegroundwaterheadinthataquiferuptoamile(unsupportedestimate,seecommentonSection2.5.3.1)awayfromthemine.ThelocationoftheHeartRiverimmediatelyadjacenttotheentirenorthernpermitboundary,andwithintheconeofdepression,willreducegroundwaterdischargetotheHeartRiverandpotentiallyturnseveralmilesoftheHeartRiverintoalosingstream.Alosingstreamisonein




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whichwaterisleavingthestreamtorechargegroundwater.LossofbaseflowintheHeartRivertogroundwaterrechargeinducedbyminedewateringhasthepotentialtosignificantlyreduceandpossiblyeliminateflowinlongstretches(miles)oftheHeartRiverneartheSHLMandimpactdownstreamwaterrightswithrespecttoquantity,timing,andquality.Interactionbetweenthegroundwaterandsurface

waterflowsystemsarenotevaluated,norevenacknowledged,asPHCsoftheproposedSHLM.TheApplicationshouldbedenieduntiltheeffectofdewateringtheOverburden-DCoalAquiferonflowintheHeartRiverisfullyevaluated,quantified,andunderstood.Equilibriumconditionswillslowlyredevelopinthereclaimedoverburdenaquiferonceminingiscompleteandthedewateringpumpsareturned-off.GroundwaterdischargefromthereclaimedoverburdenaquifertotheHeartRiverwilltransportcontaminantsintotheriverthat,asdiscussedpreviously)hasverylowbaseflowduringmuchoftheyear.DirectdischargeofcontaminatedgroundwaterintotheHeartRiverisnotevaluated,norevenacknowledged,asaPHCoftheproposed

SHLM.TheApplicationshouldbedenieduntilthepost-miningeffectofdirectdischargeofcontaminatedgroundwaterintotheHeartRiverisfullyevaluated,quantified,andunderstood.

HydrologicalDamagePreventionRecommendations

AlargerbufferzoneshouldbeconsideredbetweenpermitboundariesandthealluvialvalleyoftheSouthBranchHeartRiver(SBHR)tothewestsideofthiswaterbody.WebelievethatproposedPitsNos.3and4,whichappeartobeservingasmerelandpositioners/holders,shouldbeabandoned.PermitboundariesshouldalsobedrawnbackfromtheHeartRivertothenorthofproposedPitNo.2inSections9and10withabufferzonealsoestablished.Alluvialvalleysandthewater

coursestheybeararetooimportanttolocalagriculturetobepollutedanddamagedbymassivehaulroadsandminingsupportfacilities.Sedimentationpondsholdingpitwatersandminespoilrunoffmustnotbesitedinsuchamannerthatthereisappreciableriskoftheircontentscontaminatingalluvialwatercourses.DownstreamusesintheHeartRiverdrainage,whetheranimalorhuman,currentorfuture,mustbeprotectedfrompollution.BetterandsaferdesignofholdingpondsmustberequiredofApplicants,includingsitingpondsawayfromdrainagewaysthataresubjecttofloodingandcarefulreviewofponddesigntoensuresafetyunderstressofhighervolumestorms.Asageneralcomment,thewholesystemofmanagingsurfaceandgroundwaterin

coalstripminingneedstoberethought.Pitdewateringandrunoffcapturepondsshouldbekeptseparatedifwaterqualitydifferencesinthesetwotypesofwatercanbeshowntowarrantit,asappearslikely.ThePSCshouldactivelystudyandpromotetheconceptofpitwatersbeingreintroducedtocoalseamaquiferstotheextentthatthiscanbeshowntolowerenvironmentalriskswithoutraisingcountervailingrisks.Runoffandsedimentcontrolpondsshouldbedesignedtofeeddesignedwetlandareas,spreadingwatersothatevaporationismaximized,wildlifeissupported,anddownstreampollutantriskislessened.




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ThekindofproblemsandcontradictionsuncoveredintheexaminationoftheproposedreclamationofPitNo.1indicatetheneedforthoroughredesignofthebasicplanforthisarea.Perhapstheplancouldstartwithalongerinitialcutalonganortheast-southwestaxislocatedmorenearthemiddleofthepitarea.Shapedspoil

dumpsandsurfacematerialsstockpilescouldbelocatednearertonorthandsouthboundariesthaninthepresentpermitdraft.Higherriskdewateringpondscouldbelocatedupgradientofactivecutandspoilingormaterialpilesformaximumriskreduction.Longercutsorientedonamorenortheast-southwestoreast-westaxisthanthepresentplanwouldcutacrosslocalareaswithagreaterdiversityofreclamationdepthrequirementsandsuitablerespreadmaterialdepthsthanthecurrentplan,perhapsallowinggreateropportunityforshorteningstripping/stockpiling/respreadingcycles.Cutting/spoilingwouldproceedtotheeastandthesouthortoboththeeastandthewest.SuchaplanwouldaffordmuchgreaterprotectiontotheSBHRalluvialvalley.

OtherImpactsofMiningActivity

UraniumRelease

LocalresidentshaveexpressedconcernaboutthepresenceofburieduraniumattheSiteandthepotentialpublichealthimpactsofconstantexposuretoairborneuraniumreleasedbyminingactivities.WerequestinclusionintheApplicationofaliteraturesearchaboutthepublichealthimpactsofuraniumreleasedduringsurfaceminingactivities,andproposalsformitigationofanyknownrisks.

PaleontologicalResources

A100footavoidancezonearoundareaswithknownpaleontologicalorarcheologicalvalueappearsinadequateinlightoftheheavyindustrialactivity–blasting,hauling,etc.-tobeconducted.FossilsandartifactshavebeenrecoveredatandneartheSite.Werequestdocumentationsupportingthe100footavoidancezoneanddemonstratingthatitwillbeprotectiveoftheseresources.

ClimateImpacts

TheproposedproductionoftheSouthHeartLigniteMineis2.4milliontonsperyearoflignitecoal,whichwillproduceroughly218.8poundsofCO2permillionBtuwhencombusted,2barringuseofCO2capturetechnologiesthathavenotyetproveneconomic.TheenergycontentofligniteconsumedintheU.S.averages13million

Btuperton.Basedonthataverage,SouthHeartlignitewillreleasemorethan3milliontonsofCO2peryear.Stripminingwillalsoreleasemethane,afarmorepotentgreenhousegasthanCO2.TheMinethereforehasthepotentialtobethesourceofannualgreenhousegasemissionsroughlyequivalenttothoseofNepal,orapproximately.01%ofcurrentannualUSgreenhousegasemissions,forthenext30

2http://www.eia.doe.gov/cneaf/coal/quarterly/co2_article/co2.html




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years.Thisisanontrivialsourceofgreenhousegasemissionsthatshouldbeconsideredinthepermittingdecision.Werequestsuchananalysis.

ReclamationIssues

HydrologicReclamationPlanIsInadequate

Federalandstatesurfacemininglawsexplicitlyrequireprotectionofthehydrologicbalance.Damagetothehydrologicbalancemustbeminimizedwithinthepermitarea.Outsidethepermitarea,materialdamagetothehydrologicbalanceisprohibited.TheProbableGroundWaterHydrologicConsequences(Section2.5.3.2)areincompleteandarenotadequatelyaddressedintheGroundWaterHydrologicReclamationPlan(2.5.3.3).Interactionsbetweengroundwaterandsurfacewatersystemshavebeenparticularlyneglected.Inadequatelyaddressedgroundwaterhydrologicconsequencesinclude:

• TheconeofdepressioncausedbydewateringoftheOverburden–DCoalaquiferwilldiminishandpotentiallyremovegroundwaterfromalluvialandOverburden–DCoalaquifersinareasonandadjacenttothepermitarea.TheHydrologicReclamationPlandoesnotaddresshydrologicchangestotheseaquifersorprotectionofthehydrologicbalanceoutsidethepermitarea.TheHRPmerelycommitstoprovidealternativewatersuppliesforusersoftheresource.ThereisnoactivitydescribedintheHRPtopreventreductioningroundwaterquantityinareasofftheminepermitunderanticipatedminingoperationsandnothingdescribedintheeventthatthemonitoringprogramshowsthatimpactsfromminingaregreaterthanthoseanticipatedinthePHC. • TheconeofdepressioncausedbydewateringoftheOverburden-DCoalaquiferwillreduceflowonandaroundthepermitareainthealluvialaquifersassociatedwiththeHeartRiverandSouthBranchHeartRivers.ThisreductioningroundwaterflowhasnotbeenaddressedineithertheProbableGroundWaterHydrologicConsequencesortheGroundWaterHydrologicReclamationPlan.

• Groundwaterflowduringactiveminingwillbeprimarilytowardtheactivepit.Oncedewateringisstoppedflowdirectionswilleventuallyreestablishequilibriumandmigrationfromtheminedareawillbegin.TheProbableHydrologicConsequencesacknowledgethatdowngradientgroundwaterqualitywillbeimpactedbymining,butwithnoassessmentastothedegree

ofimpact.TheGroundWaterHydrologicReclamationPlanidentifiesnoactionsaspartofminingoperationstominimizedamagetothehydrologicbalancewithinthepermitareaandnoactionstopreventmaterialdamagetothegroundwatercomponentsofthehydrologicbalanceoutsidethepermitarea.TheHRPforgroundwaterissimilarlysilentonfurthermeasuresthatwouldbeavailableaspartofthereclamationplantoremediateimpactsweredatafromthemonitoringplantoindicategroundwaterimpactsbeyondthoseprojectedinthePHC.




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TheProbableSurfaceWaterHydrologicConsequences(Section2.6.5)areincomplete.NoSurfaceWaterHydrologicReclamationplanisprovidedwiththePermitapplication.Unaddressedsurfacewaterhydrologicconsequencesinclude:

• TheconeofdepressioncausedbydewateringoftheOverburden-DCoal

aquiferwillreducebaseflowintheoff-permitHeartRiverandtheon-permitSouthBranchHeartRiver.Reductioninbaseflowinthesestreamsduetodewateringisnotaddressednorquantifiedinthepermitapplicationasaprobablehydrologicconsequence.Thepermitapplicationissimilarlysilentwithrespecttoremedialplansaspartoftheproposedminingoperationsorcontingentplansintheeventofunanticipatedimpactsthatbecomedocumentedindatafromthesurfacewatermonitoringplan.

• SurfaceWaterProbableHydrologicConsequencesincludedintheapplicationdonotincludecontributionofcontaminantsfromgroundwaterthatwilldischargetotheHeartRiverandSouthBranchHeartRiveroncedewateringincompleteandtheminespoilhasrechargedtoitspost-miningequilibrium

levels,levelsthatpresumablywillagaindischargetotheserivers.Theeffectofdischargeofcontaminatedgroundwateronsurfacewaterqualityisneitherquantifiednoracknowledgedintheapplicationasaprobablehydrologicconsequence.Thepermitapplicationissimilarlysilentwithrespecttoremedialplansaspartoftheproposedminingoperationsorcontingentplansintheeventofunanticipatedimpactsthatbecomedocumentedindatafromthesurfacewatermonitoringplan.

SoilReclamationPlanIsInadequate

Theminingandreclamationprocessbeginswithdeterminationofdepthsofdevelopedsoilmaterials(suitableplantgrowthmaterials,SPGM)thataretobe

strippedoffthelandandstockpiledpriortomining(orinfavorablecircumstances,strippedfromonetractoflandandrespreadonanotherareawherestripmining,backfillingandreshapingofoverburdenhasbeencompleted).Topsoilandsubsoilmaterialsarestrippedandstockpiledseparately,anddepthsoftopsoilandsubsoiltobestrippedaremarkedininchesonthesoilsurveymapforeachsoilmappingunit(seeFigs.2.4-2aand2.4-2b).Thetotaldepthsofsoilandsoil-likematerialsthatmustberespreadonanyparticularpieceoflandisdeterminedfromanalysisofthechemicalandphysicalpropertiesoftheoverburdenmaterialandreferencetostandardssetinNorthDakotaAdministrativeCode(NDAC).ParticularlyrelevanthereisNDAC69-05.2-15-

04.Ifthereisaninsufficientdepthofregularsoilmaterials(SPGM)availableatagivenlocation,thenadditionalsuitableoverburdenmaterial(SOBM)mustbestripped,stockpiled,andrespreadaftermining.ThedraftpermithasanestimateofdepthsofadditionalSOBMmaterialthatneedstobeusedfortheentire5-pit,30-yearminingplaninSection3.Calculatedbytwodifferentmethods,thisdepthwaseither1.1feetorapprox.1/3foot.ThefirstareaproposedforproductionisPitNo.1,andwehavemadeanestimatehereofdepths




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ofadditionalSOBMmaterialneededforoperationsinthepitbecauseofinsufficientdepthsofregularSPGMtosatisfyrespreaddepthrequirementsmandatedbyprovisionsinNDAC.First,amapofthelocationsofoverburdensampling(Fig.4.1-10a)wasexamined

alongwiththetabulationofrelevantoverburdencharacteristics(Table4.1-1).Thedraftpermithasindicatedinthistablethatdepthsbetween2.5and10feetarebeingconsideredassourceforSOBM.Eachsampledlocationwasexaminedtodetermineifoverburdeninthisdepthintervalmetprincipalsuitabilitycriteria,whichare:salinity(EClessthan4)andsodicity(SARlessthan10).Anadditionalcriterionwasexamined:saturationpercentage(Sat%),ameasureofwateradsorption.HighSat%hasbeenshowntorendersoilmaterialsundesirableforsupportofplantgrowth,andSat%greaterthan90wasusedhere,withaccountingofsuitabilitybeingmadewithandwithoutthiscriterion.ItwasfoundthatoverburdencharacteristicsoftheeastsideofthePitNo.1area

weresomewhatdifferentfromthoseonthewestsideofthispit,andsoaccountingwascarriedoutseparatelyforthetwoportionsofthepitarea.Foreachoverburdensamplinglocation,thepercentageofoverburdenabove10ft.depththatmetsuitabilitycriteriawasdetermined.DepthsofSPGMdesignatedforstrippingandstockpilingweredeterminedfromthesoilsurveymaps(Figs.2.4-2aand2.4-2b)bysamplingoveragridpatternatapprox.30points.DepthsofoverburdenbelowSPGMstrippingdepthsthatmetsuitabilitycriteriawerethendetermined.Finally,requiredtotaldepthsofsoilrespreadmaterial(SPGMplusadditionalmaterial(SOVM))weretabulatedforeachsamplinglocationinPitNo.1fromFig.4.1-10a.FortheeasternhalfofPitNo.1,theaveragetotaldepthofsoilandnearsoil

materialsrequiredtobestrippedis3.50ft.Theaveragedepthofsoilmaterials(SPGM)designatedfromsoilsurveyasavailableis2.18ft.Thisleavesadifferenceof1.32ft.thatrequiresadditionalsuitableoverburden(SOVM).Ofoverburdenmaterialatdepthslessthan10ft.ontheeastside,wecalculatethat43.8%meetsthesuitabilitystandard,whichleavesadepthof3.42ft.ofSOVM,morethanenoughtomeettheneedfor1.32ft.OnthewestsideofPitNo.1,theaveragetotaldepthofsurfacematerialsrequiredtobestrippedis3.75ft.,andtheaveragedepthofSPGMavailableis1.51ft.,leavingadifferenceof2.24ft.needingtobesupplied.However,bythemostrealisticsetofsuitabilitystandardsthatincludesthe90Sat%cutoffcriterion,only6.3%ofthe

overburdenabove10ft.depthbutbelowSPGMissuitable(18.8%issuitablewithouttheSat%criterion).Thismeansthatonly0.53ft.ofoverburdenabovethe10ft.depthissuitableforreclamationpurposes,creatinganeedfor1.71ft.ofadditionalSOVMtobebroughtfromtheeastsideofPitNo.1tomeettherespreadrequirements.Thus,thesoilscientific,legal-administrative,andengineeringlogicoftheproposedreclamationplanforPitNo.1requirestheremoval,transport,stockpiling,




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retransport,andrespreadingofsome1,100,000tonsofadditionalsuitableoverburdenmaterial(SOVM)fromtheeastsidetothewestsideofthePitNo.1area(assuminganaveragemoistbulkdensityof1.8gpercm3).Thisistheequivalentof7300150-tondumptruckloadsor20,00044-cubicyardmotortractorscraperloads.IftheSat%criterionisnotusedfordeterminationofoverburdensuitability,

thenapproximately40%ofthisamountofmaterialneedstobetransportedfromtheeasttowestsidesoftheminingarea.Assumingamultiplierof1.5forroadtortuosity,thetotaldistancehaulvehicleswouldtraveltomakeoneaveragelengthroundtripfromtheeastsideofPitNo.1toSOVMstockpilessited(accordingtothedraftplan,Fig.3.1-1)approx.1/2milenorthofthesectionboundaryplusanotheraverageroundtripfromastockpiletothewestsidewouldamountto7.4miles.Thisisallinadditiontoanyoftheotherformsofmaterialstransportinvolvedinmineoperation.Thesefiguresbringoutaproblematiccontradiction.Difficulttoreclaimsodicminespoilsrequiregreaterdepthsofrespreadsoilmaterialstoachieveagivenlevel

ofsoilproductivity.However,areasofNorthDakotainwhichsodicminespoilsarelikelytobegeneratedbyminingtendtohavealowerpercentageofgoodquality,deepertypesoils.Achievingthesoildepthsrequiredbylawwillbecostlyandtheproposedminingplandoesnotbegintoaddressthescaleofreclamationeffortsneeded.Majormodificationstotheplanwillbenecessarytocomplywithstateandfederallaw.WerequestsuchmodificationsorrejectionoftheApplicationinlightofthelackthereof.

NorthDakotaHasaPatternofInadequateContemporaneousReclamation

ItisourunderstandingthatstripminereclamationeffortselsewhereinNorthDakotahavebeenlessthanfullysuccessful,tosaytheleast,inreturninglandtoits

prioruseorabetterone,andinmanycircumstanceshavenotbeencontemporaneous,asrequiredbystateandfederallaw.Thispatterndemonstratesaneedforaheightenedlevelofscrutinyforanynewreclamationplan.Werequestfromtheagencyacomparativediscussionofthesuccessandtimelinessofreclamationeffortsundertakenelsewhereinthestate.

EconomicandSocialImpacts

ImpactstoAgriculture

Asdescribedingreaterdetailabove,significantimpactstosurfacewatersand

alluvialvalleysurfaceandassociatedstreambedgroundwaterswillbefelt.Thesenaturalresourcesareimportanttoareaagriculturebecauseofrestrictedgroundwaterquantityandquality.Currently,cropproducersareundereconomicstressduetovolatilemarketsandescalatinginputcosts.Livestockproducersfacepricecyclesandmarketdominationbyaverysmallnumberofcorporationsempoweredbydecadesoffederalnon-enforcementofthePackersandStockyardsAct.Integratedcrop-animalagricultureoffersapathforwardforproducerstomakeprogressinovercomingproblemsofexternalmarketforcesandinputcosts.




Page 17 of 22

However,afullydevelopedintegratedcrop-livestocksystemdependsonlocalavailabilityofqualityanimalfeedsuchascornandalfalfa.Inasemiarid,northernlocalareawithrestrictedacreageofhigherqualitycropland,theavailabilityofalluvialvalleylandsbecomesveryimportanttotheeffectivefunctioningofsustainableintegratedcrop-animalagriculture.Werequestananalysisofimpactsto

agriculturepriortoanypermittingdecision.

ImpactstoTourism

Manylocalresidentsrelyinwholeorinpartfortheirlivelihoodsonthe475,000visitorswhocometotheBadlandsandTheodoreRooseveltNationalParkeveryyear.NoseriousanalysishasbeenperformedonthelikelyeffectonthetourismeconomyofamassivestripmineandassociatedprocessingfacilitiesvisiblefromtheapproachtoNorthDakota’smostvaluabletouristsites.Theeffectoftouristsfromotherpartsofthecountrygoinghometotelltalesofdustcloudsblowingacrosstheinterstate,blastingshakingtheearth,andiconicviewscloudedwithfugitivedustcanonlybeimagined.AccordingtoU.S.BureauofLaborStatistics,as

ofDecember2010,miningandloggingtogetheremployedonlyabout12,000NorthDakotans,afigurethatincreased75%inthelastyear.Atthesametime,leisureandhospitalitybusinessesemployedover35,000NorthDakotans,up3%overthelastyear.ThenumberstellusthattourismisbothamuchlargerandamuchmorestablesourceofemploymentforNorthDakotans.Tocompromisethestate’slargesttouristattractionforthesakeofaminingfacilityiseconomicallyfoolishindeed.Werequestananalysisofimpactstotourismpriortoanypermittingdecision.

ImpactsonLocalCommunity,Infrastructure,SocialServices

JobimpactsclaimedbyApplicantsareexaggerated.StatisticsprovidedbytheCityofDickinsonindicatethatmining,quarrying,andoilandgasextractiontogetheremployedonly11%oflocalmenfrom2005to2009,andonly3%statewide.WhilethepovertyrateintheDickinsonareahoversaround10%,theinfluxofout-of-stateworkersforthefossilfuelextractionindustryhascausedhousingpricestoshootupinthelastdecade.Themedianpriceofalocalhouseorcondoin2000was$70,500,whilein2010themedianpricewas$182,000.Thephenomenonhasbecomeevenmorepronouncedinthelastyear.Mediangrossrentin2009was$532,butcurrently,atatrailerparksiteinBelfield,FEMAcabinsarerentingfor$1200plusutilities.InthegreaterDickinsonarea,includingSouthHeart,thereisashortageofhousing,rentalunits,anddaycareservices.

Socialservicesandpublicschoolsarealsostrainedbyincreaseddemand,includingaquicklygrowingspecialneedspopulationthatisespeciallycostlytolocalschooldistricts.Thelocaltaxbaseisnotgrowingquicklyenoughtoprovidetheinfrastructureassociatedwithasuddenboom.Anotherwaytosaythesamethingisthattheoilandgasindustryisnotbringingenoughmoneyintothecommunitytopayfortheservicestheindustryanditsemployeesrequire.WeseelittleindicationthatthelocalcommunitywouldprofitsufficientlyfromtheMinetocounterbalance




Page 18 of 22

thesocialinfrastructureneedstheminingoperationwillcreate.TheApplicanthasofferednoanalysisofthehousing,educational,andsocialservicesneedslikelytobecreatedbytheminingoperation,noranydiscussionofhowsocialinfrastructurerequirementswillbepaidfor.Wethereforerequestsuchananalysispriortothepermittingdecision.

CoalValueIsOverestimated

If,asseemspossible,theproposedcoal-to-hydrogen-to-electricityprojectprovesnottobeviable,thentheMinewillserveasasourceofexportcoalinregional,national,andperhapsinternationalmarkets.Theeconomicsofthisscenarioareweak.AccordingtoGTLEnergy’sownpublishedresultsforitscoal-dryingprocess,driedligniteisnotcompetitivewithPowderRiverBasincoal.EvenwiththeGTLEdryingprocess,lignite’senergyvalueismerelyonparwithorslightlyhigherthanPRBcoal,whilethecostpertonforligniteremainsmorethan50%higher.Asignificantadditionalcost–notpubliclydisclosedtodate,asfaras

weareaware–islikelyalsoassociatedwiththedryingprocess.InmarketcompetitionwithPRBcoal,SouthHeartlignite,evendried,willbefarmoreexpensiveonaperBTUbasisandthereforeuncompetitive.Thisisanimportantreasontoensuretheviabilityoftheproposedgasificationplant,orareliablemarketforGTLE’sdriedlignite,beforeapprovingtheMineorinvestinganymoretaxpayerdollarsinwhatmaybealosingproposition.GTLEnergyDryingProcessResults3Typeofcoal Original

BTUsReductionofmoisture

IncreasedBTUsby%

FinalBTUValue

Average2009

costpershortton4

NDLigniteI 6000 71% 53% 9200 $19.61NDLigniteII

6600 67% 42% 9400 $19.61

PowderRiverBasin

8600 67% 25% 10800 $12.49

Economic&TechnicalFeasibilityofCoalProcessingPlansAreQuestionable

WeobjecttotheApplicationinpartbecauseitisbasedonthedeveloper’sunsupportedassertionsthatacoal-to-hydrogenfacilitywillbefeasibleattheSiteandaddvaluetowhatisotherwiselow-valuenaturalresourceextractionthatwillbeanetlosstothelocaleconomyandourqualityoflife.

3http://www.gtlenergy.com.au/technology/technical-results.html4http://www.eia.doe.gov/aer/txt/ptb0708.html




Page 19 of 22

The175MWcoal-to-hydrogen-to-electricityfacilitycontemplatedintheSouthHeartEnergyDevelopment,LLC(SHED)letterofintentfiledDecember13,2010withthePSCisonlythelatestinaseriesofpie-in-the-skyideasfloatedbyGreatNorthernPowerDevelopment(GNPD)anditsvarioussubsidiaries,whoseidentitiesseemtoshiftasfrequentlyasitsprojectvisions.Thefirstletterofintent,dated

August18,2005,contemplateda500MWlignite-poweredelectricgeneratingstationatthesite.ThenonJanuary23,2008,anotherLOIenvisionedacoal-to-syntheticnaturalgasfacility.TheonlyconsistentthingsabouttheselettersofintentaretheSouthHeartsiteandthelackofanytechnicalspecificationsorfinancingdetails.Atthispoint,theonlyprovenfeasibleprojectisalignitemine.Thereislittleinformationcurrentlyavailableaboutthepollutionprofileofproposedminemouthfacilities.Wearenotawareofanyanalysisofthepotentialeconomicimpactofairqualityregulationsanticipatedtotakeeffectpriortofinalpermittingforfacilitiesproposedattheminesite,whichcouldpotentiallyrendertheproposaluneconomic

duetotheunacceptablyhighcosttopublichealthandtheenvironment.

ProceduralandEthicsIssues

OmittedAnalysisofBLMUnsuitabilityDeterminationandFederalCoalImpacts

TheApplicationprovidesinsufficientinformationabouttheMine’sprobableimpactsonfederalcoalandadjacentlanddesignatedbyBLMasunsuitableforcoalmining.AMarch3,2011letterfromtheBureauofLandManagement’sPhillipPerlewitztoJimDeutschstates:

UnleasedfederalcoalliesadjacenttoproposedminingoperationsinT139N,R98W,Sections14,20,28,and34.Itwasnotdiscussedinthepermitapplicationhowtheoperatorwillpreventthefederalcoalbearingformationsfrombeingwasted,damaged,ordegradedwhentheproposedminingoperationsapproachtheboundarylinesadjoiningfederalcoal.Thecurrentminingplanofoperationscannothinderthefutureminingoffederalcoal.ItisBLM’sdeterminationthatthisdiscussionbeincludedinthepermitapplication.

Withthisletter,BLMhasdeterminedthattheApplicationisincomplete.ObjectorshaverequestedinseparatecorrespondencethatthePSCdeclaretheApplicationincompleteinlightofBLM’sposition.TheApplicationisincompleteforthisand

manyotherreasons.ItisunclearwhetherornotBLMisawarethatGTLEnergy’sminemouthcoalprocessingplanthasalreadybeenconstructedatopfederalcoalresourcesandwhatimpactthisfactmayhaveonthelegalityofaminingpermit.InadditiontothemodificationrequiredbyBLM,werequestafullanalysisofimpactsonareasdesignatedunsuitableforsurfacemining,andfurtheropportunitiesforpubliccommentandhearingwhentheseanalyseshavebeensubmittedtothePSC.




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CorporateDisclosure

Theuseofnewlyformedcorporateentitiesmayinsomecasesobscuredevelopers’pastSMCRAviolationsthatshouldbealegalbarriertopermittinganewmine.Becausesomanynewlyformedentitiesarepartiestotheproposeddevelopment,werequestthatthePSCrequireallpartieswithownershipinterestsintheMineto

disclosefullyanyotherminingownershipinterests,pastorpresent,nomatterwhatthecorporateorpersonalformofownership.

GTLEnergyCoalDryingPlantIsaMinemouthFacilityImproperlyExcludedfrom

theApplication

BeginninginJuly2008,GTLEnergy(GTLE)hasrepeatedlyassertedinfilingsbeforethePSCthatitsSouthHeartcoaldryingplantisnotaminemouthfacilityandthereforeshouldnotbeevaluatedaspartoftheSouthHeartmineapplication,asfederalandstatelawwouldotherwiserequire.InspiteofthePSC’sjurisdictionalfindingsinGTLE’sfavor,GTLE’sownfilingsconfirm:

AftertheSouthHeartMinehasbeenpermittedandisinoperation,amajorityofthecoalwilllikelybesuppliedbythatmine.SHC(SouthHeartCoal)isanentityownedandcontrolledbyassociatesofGreatNorthernPowerDevelopmentLP(GNPD)andAlliedSyngasCorporation(Allied).SHCwillbeseekingacoalminingpermitfromtheNorthDakotaPublicServiceCommissionfortheSouthHeartMine.CoalwillthenbesuppliedtotheplantbySHC.

RepresentativesofGTLEnergyhavestatedinpubliconseveraloccasions,includinginmeetingswithBLM,thattheyplantomovetheircoal-dryingplanttothe

minemouthassoonasthemineisoperational.Theplantisclearlyintendedtobeacoalpreparationplant,eitherforon-sitecoaluseorforshippingofSouthHeartcoal.WeaskthatthePSCrevisititsdecisionthattheGTLEplantisnotaminemouthfacilityandrequireanalysisofthisfacilityaspartoftheApplication.

PSCCommissioners’ConflictsofInterest

Inthelastthreeyears,CommissionersCramerandKalkhavetogetheracceptedcampaigncontributionsfrompartieswithdirectfinancialinterestsinthedevelopmentoftheSouthHeartmineandadjacentfacilitiestotalingatleast$16,650.Onecontributor,CorbinRobertson,themanagingpartneroftheentitythatownsGreatNorthernPowerDevelopment,ofwhichSouthHeartCoalisasubsidiary,

isthesourceof$15,800ofthosefunds.Thesearesignificantsumsincampaignswhosetotalelectionyearcontributionswere$174,772(Cramerin2010)and$159,836(Kalkin2008).PartieswithadirectfinancialinterestintheproposedSouthHeartdevelopmentmadecontributionsinthelastthreeyearsequaltoatleast6.3%ofCramer’s2010campaigncontributionsand3.4%ofKalk’s2008contributions.




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ContributionstoCramerCampaignbySouthHeartFinanciallyInterestedParties:

ContributingParty NatureofInterest ContributionAmount

Date

BrianBjella,

Bismarck,ND

CounseltoGTL

Energy

$600 10/13/2010

CorbinRobertsonHouston,TX

Managingpartner,QuintanaCapitalGroup,ownerofGreatNorthernPowerDevelopment.ApplicantisasubsidiaryofGNPD.

$4800 9/7/2010

RobertFrench,

Wellington,COGTLEnergyCEO $250 8/25/2010

CorbinRobertson Seeabove $2500 8/6/2009

BarbaraRobertson SpouseofCorbinRobertson

$2500 8/6/2009

CorbinRobertson Seeabove $500 8/14/2008

ContributionstoKalkCampaignbySouthHeartFinanciallyInterestedParties:

ContributingParty NatureofInterest Contribution

Amount

Date

CorbinRobertson Seeabove $500 5/1/2009CorbinRobertson Seeabove $5000 8/24/2008

WebelievethatthesecontributionsbypartieswithdirectfinancialinterestsintheSouthHeartdevelopmentcreateconflictsofinterestforCommissionersCramerandKalk.WethereforerespectfullyrequestthatCommissionersCramerandKalkrecusethemselvesfromanyfurtherdeliberationonissuesrelatedtotheproposeddevelopmentatSouthHeart.

ConclusionThedraftpermitplanfortheMineisdeeplyflawedandmustnotbeacceptedbythePSC.Initspresentform,theplanappearsdesignedtomaximizeoperationalconveniencetothecorporateoperatorswhileforcingvariouspublicintereststobearenvironmentalrisksandcostsofnoxiousexternalities,includingdamagetothelargerlocaltourismindustry.




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Forthereasonsoutlinedinthesecomments,webelievethattheproposedMinewillhaveanetnegativeimpactontheSouthHeartcommunity,thatthemanyimpactshavebeeninadequatelyanalyzed,thatproposedmitigationsareinadequate,andthatremediationwillbeinadequatetorestorethelandtoitscurrentuseandvalue.WeaskthePSCtorequireApplicantstosubmittheadditionalinformationrequired

byapplicablelawandoutlinedinthesecomments,toprovidefurtherinformationrequestedofthePSC,toprovidefurtherpubliccommentandhearingopportunitieswhenrequestedinformationhasbeensubmitted,andultimatelytorejecttheApplication,fortheprotectionofNorthDakotans’health,economicinterests,andirreplaceablenaturalresources.Sincerelyyours,MaryHodellNeighborsUnited1189027thSt.SW

DickinsonND58601CarrieLaSeurPlainsJusticeP.O.Box1398Billings,MT59103NathanMillerNationalParksConservationAssociationMidwestRegionalOffice8S.Michigan,Suite2900

Chicago,IL60603WaydeSchaferDacotahChapterofSierraClub311EastThayer#113Bismarck,ND58501MarkTrechockDakotaResourceCouncilP.O.Box1095Dickinson,ND58602

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South Heart Comments & Objections FINAL

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