--- On Wed, 3/18/09, James Kotcon jkotcon@wvu.edu wrote: From: James Kotcon jkotcon@wvu.edu Subject: Re: Important development in Mingo TransGas To: Andrea.Issod@sierraclub.org, bill.price@sierraclub.org, glen.hooks@sierraclub.org, tim.guilfoile@sierraclub.org, jkotcon@wvu.edu, jim_scon@yahoo.com Cc: emily.ulmer@sierraclub.org, Pat.Gallagher@sierraclub.org Date: Wednesday, March 18, 2009, 4:07 PM

Please note that HB 3081 was introduced in the WV Legislature on March 11. It would exempt the first "Coal-To-Liquid" facility in the state that produces at least 30,000 barrels per day from corporate net income tax for four years, exempts severance taxes on the coal mined for such a plant, and guarantees that the State would purchase all of the gasoline or diesel fuel from such a plant for four years "at the price of $2.25 per gallon or at a competitive rate as deemed by the state".

Sponsors are Delegates McGeehan, Kominar, Moore, Boggs, Armstead, Shott, and Shook.

The good news is that none of these guys are high up in the leadership, so we have a chance to kill it. Start pouring in those letters and phone calls.

Jim Kotcon

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Sent by Andrea.Issod@sierraclub.org 3/18/2009 3:49 PM >>>

Emily just learned from WV DAQ engineer Joe Kessler that TransGas is trying to get its Mingo plant permitted as a minor source. A minor source is not subject to Prevention of Significant Deterioration (PSD) requirements to use Best Available Control Technology (BACT) to set emission limits, and it does not have to perform any air quality analysis. Thats right, they are saying they are not requiring any modeling from this monster.

The reason we're given is because it's using a new process called Methanol To Gas (MTG) instead of the more common Fischer-Trope process. Where Fischer-Trope generates a lot of excess tailgas that must be disposed of through flaring (burning it up), they say the MTG process is more efficient because the off-gas from the process is continually re-circulated and emissions are thus much reduced.

We have retained an engineer to look at the application to advise us the best arguments to submit to DAQ on why this should be treated as a major source. Hopefully we will have those comments into DAQ in the next few weeks before any further permitting activity -- and you all can do some organizing and press about these.

You all might want to contact the DAQ about this issue and express that all similar sources are treated as major sources, demand more information, etc. Definitely let us know what you find

Joe Kessler, PE Engineer West Virginia Division of Air Quality Phone: (304) 926-0499 x1219 Joseph.r.kessler@wv.gov

Also, last month we requested certain information that TransGas marked as confidential in the application and the company has finally responded that it will release some of this information. We'll send out when we get it.

Best, Andrea Issod Staff Attorney Sierra Club Environmental Law Program 85 Second Street, 2d Floor San Francisco, CA 94105-3441 Phone: (415) 977-5544 Fax: (415) 977-5793

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