Great Plains Coal Gasification Project - Historical Overview and Progress

The Great Plains Coal Gasification Project is the first commercial scale grass roots synthetic fuels (SNG) plant to be built in the United States. The plant will be constructed in two phases, with each phase producing 125 million cubic feet per day of pipeline quality (970 BTU per cubic foot) substitute natural gas from lignite coal. The plant is located north of Beulah in Mercer County, North Dakota. The first phase complex, when completed, will cost about 1.2 billion dollars and will include all necessary process units, oxygen production, steam generation, coal handling and preparation, utilities and infrastructure. The plant will be owned and operated by, the Great Plains Coal Gasification Associates, a partnership consisting of the following companies: ANG Coal Gasification Company, Mid Con Corporation, Tenneco, Inc., Transco Energy Company and Pacific Lighting Co. The Project began in late 1973 with a Phase I feasibility study and site selection study. The feasibility study was completed in 1975, at which time Kaiser Engineers and C. E. Lummus, the two engineering contractors, proceeded with a Phase II conceptual engineering design for the project. The culmination of the Phase II work was the publication of a detailed scope definition and control estimate, which was to become the cost guideline for procurement and plant construction. Following an engineering slowdown period in 1979, due to continuing delays in regulatory procedures, detailed engineering effort was reinstituted in early 1980 and by mid-1981 was approximately 35 percent complete. The total home office engineering effort amounts to approximately 3.5 million man hours of work split between Kaiser Engineers and Lummus. These totals exclude the engineering effort expended by Lurgi of Germany in the process design. The gasification plant shares the site and certain other facilities with the Basin Electric Power Station. Among these facilities are the plant access railroad, peripheral drainage ditch and raw water supply system. In addition, the gasification plant will draw its power directly from the Basin main substation, and Basin will receive coal from the gasification plant, consisting of the coal fines which cannot be gasified in the Lurgi units. The overall construction program covers a period of approximately 44 months with mechanical completion and initial gas production slated for late 1984. Craft labor requirements amount to approximately 11.5 million man hours and the work force peaked in excess of 4,500 people. In anticipation of an early resolution of both Federal Energy Regulatory Commission ruling and Department of Energy loan guarantee commitments, certain work on the site was commenced during 1980. This work consisted of site rough grading, driving of piles, and erection of three of the plant auxilliary buildings. Orders and subcontracts were placed for compressors, pumps, electrical equipment, material handling equipment, piping, structural steel, boilers, oxygen plant and cooling towers. Over 40 major Federal, State and local permits were required. Among these were such diverse permits as: ? Soil conservation ?Railroad and pipeline rights of way ? Certificates of site compatibility ? Permits for structures in areas controlled by the ? U.S. Army Corps of Engineers ? Environmental permits required by the North ? Dakota Department of Public Health. The preparation of an Environmental Impact Report began in September of 1973. FPC (now FERC) guidelines and North Dakota special requirements were followed except that, at the time, the highly structured form of environmental impact statements we know today was not in use. We were required to develop a number of new sampling and evaluation techniques and reporting procedures at a time when the requirements were vague and often contradictory. In March 1975, field studies were completed and submitted to the Bureau of Recla¬mation, which then began to prepare its own EIS. Two years later, in May 1977, public hearings began on the Project. The hearings and public review of the report drew over 400 comments or questions. Responses o the comments were in¬corporated in a Final Environmental Impact Statement issued in January 1978. In March 1975, the original filing was made for an FPC Certificate of Public Convenience and Necessity which included: ? A technical feasibility study ? An Environmental Impact Assessment ? An Economic and financial feasibility assessment. An amended filing was submitted in 1976 to build the plant in two phases because studies then indicated that the cost of the plant had increased substantially. A second amended filing was submitted in 1977 to reflect the involvement of Peoples Gas (now Mid-Con Corporation) in the Project. At the time, it was believed that an FPC Certificate could be issued by December 1977. However, approval would be contingent on the U.S. Bureau of Reclamation having a complete Final Environmental Impact Statement for the Project. In 1977, with the formation of the Department of Energy, the FPC