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[Federal Register Volume 77, Number 121 (Friday, June 22, 2012)]
[Notices]
[Pages 37661-37663]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15374]

[[Page 37661]]

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DEPARTMENT OF ENERGY

Amended Notice of Intent To Prepare the Environmental Impact 
Statement for a Proposed Federal Loan Guarantee for the Indiana 
Gasification, LLC, Industrial Gasification Facility in Rockport, IN, 
and CO2 Pipeline; Conduct Additional Public Scoping 
Meetings; and Issue a Notice of Floodplains and Wetlands Involvement

AGENCY: Loan Programs Office, DOE.

ACTION: Amended notice of intent.

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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to 
expand the scope of an environmental impact statement (EIS) (DOE/EIS-
0429) to analyze the environmental impacts for its proposed action of 
issuing a Federal loan guarantee to Indiana Gasification, LLC, (IG) for 
the construction and startup of both a proposed coal-to-substitute 
natural gas (SNG) gasification facility in Rockport, Indiana, and a 
proposed carbon dioxide (CO2) pipeline. On November 12, 
2009, DOE issued a Notice of Intent (NOI) to prepare an EIS, titled 
``Environmental Impact Statement for a Proposed Federal Loan Guarantee 
for the Indiana Gasification, LLC, Industrial Gasification Facility in 
Rockport, Indiana,'' to analyze the construction and startup of the SNG 
facility. The NOI invited comments on the proposed scope and content of 
the EIS. DOE also conducted a scoping meeting in Rockport on December 
3, 2009. IG originally intended to capture and sell the CO2 
produced during the gasification process to a third party, Denbury 
Resources, Inc., (Denbury), which would construct a pipeline to 
transport CO2 from the SNG facility in Rockport to storage 
facilities or oil fields, where it would be used for enhanced oil 
recovery (EOR) operations. In the event a CO2 pipeline was 
not constructed by Denbury and there was no other reasonable 
alternative to sequester the CO2, the CO2 would 
have been released to the atmosphere.
    In October 2011, IG requested an increase in the amount of DOE's 
loan guarantee for the proposed project to cover additional costs to 
incorporate the construction and startup of a proposed 441-mile 
CO2 pipeline. This pipeline would transport as liquefied gas 
85% to 90% of the CO2 generated at the proposed SNG facility 
(approximately 6.4 million tons annually), from Rockport, Indiana, 
across Kentucky and Tennessee, to Tinsley in Yazoo County, Mississippi. 
At Tinsley the pipeline would connect to Denbury's existing Delta 
CO2 Pipeline for distribution of CO2 for eventual 
use by Denbury in EOR operations in the Gulf Coast region.
    Accordingly, DOE is issuing this Amended NOI to invite Federal 
agencies, state and local governments, Native American tribes, other 
organizations, and members of the public to submit comments that 
identify environmental issues associated with adding the CO2 
pipeline to the original project (the SNG facility). DOE hereby invites 
public participation in shaping the broadened scope of the ongoing EIS, 
now retitled ``Environmental Impact Statement for a Proposed Federal 
Loan Guarantee for the Indiana Gasification, LLC, Industrial 
Gasification Facility in Rockport, Indiana, and CO2 
Pipeline.'' DOE also provides notice of the intent to prepare a 
floodplain and wetland assessment. DOE invites those agencies with 
jurisdiction by law, or special expertise related to the modified 
proposed action, to request cooperating agency status to assist with 
the preparation of the EIS.

DATES: To ensure that all of the issues related to this proposal are 
addressed, DOE invites comments from all interested parties on the 
addition of the proposed CO2 pipeline and expanded scope of 
the EIS. Comments must be postmarked or emailed by July 23, 2012 to 
ensure consideration. Late comments will be considered to the extent 
practicable.

ADDRESSES: Public comments can be submitted by mail or email. Written 
comments about the alternatives and potential impacts to be considered 
in the expanded scope of the EIS should be addressed to: Dr. Alistair 
Leslie, Loan Programs Office (LP-10), U.S. Department of Energy, 1000 
Independence Avenue SW., Washington, DC 20585. Please submit one signed 
original paper copy. Submission of comments by email to: IG-EIS@hq.doe.gov is encouraged due to security processing time required 
for regular mail. All comments submitted by mail and email should 
reference Project No. DOE/EIS-0429.
    DOE will also conduct public scoping meetings at locations along 
the proposed 441-mile route of the CO2 pipeline as 
additional opportunities for the general public, private-sector 
organizations, and Government agencies to provide oral or written 
comments about the alternatives and potential impacts to be considered 
in the expanded scope of the EIS. The dates, times, and locations of 
the these public scoping meetings will be announced in local news media 
and on the DOE Loan Programs Office ``NEPA Public Involvement'' Web 
site (https://lpo.energy.gov/?page_id=1502) at least 15 days prior to 
the date of these meetings. Comments submitted by mail, email, or at 
the scoping meetings orally or in writing, including any attachments 
and other supporting materials, will become part of the public record 
and subject to public disclosure.

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
this Amended NOI, the public scoping meetings, or to receive a copy of 
the draft EIS when it is issued, contact Dr. Alistair Leslie by 
telephone: 202-287-5620; or email: alistair.leslie@hq.doe.gov. For 
general information on the DOE NEPA process, please 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; email: 
askNEPA@hq.doe.gov; or leave a toll-free message at 800-472-2756.

SUPPLEMENTARY INFORMATION:

Background

    The proposed SNG facility in Rockport would use gasification 
technology with Illinois Basin coal as feedstock to produce raw 
synthetic gas (syngas), which would be further processed to produce 
pipeline-quality SNG. The facility could produce up to approximately 
145 million standard cubic feet of SNG per day. The SNG would be 
transported for sale from the SNG facility to one or both of two nearby 
natural gas pipelines, the Midwestern Gas Transmission line (3 miles 
distant) and/or the ANR Pipeline (4.5 miles distant). IG also proposed 
a change in the feedstock in which Illinois Basin coal and up to 49% 
petroleum coke would be used as feedstock for the SNG facility.
    Approximately 125 individuals attended the December 3, 2009, 
scoping meeting in Rockport, with 26 individuals presenting oral 
comments and 6 submitting written comments. In addition, during the 
public scoping period, DOE received 26 comment documents via mail and 
email. Commenters requested that DOE consider other alternatives, 
project financial and feasibility concerns, as well as various local 
socioeconomic and environmental concerns.
    Title XVII of the Energy Policy Act of 2005 (EPAct 2005) 
established a Federal loan guarantee program for financing energy 
projects employing innovative technologies that ``avoid, reduce, or 
sequester air pollutants or anthropogenic emissions of greenhouse

[[Page 37662]]

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.'' The two principal goals of the loan 
guarantee program are to encourage commercial use in the United States 
of new or significantly improved energy-related technologies and to 
achieve substantial environmental benefits. In September 2008, the DOE 
Loan Programs Office issued a solicitation for coal-based power 
generation and industrial gasification facilities. A portion of the 
funds made available in the solicitation come under the authority of 
the Consolidated Appropriations Act, 2008, Public Law 110-161, which 
provides loan guarantee support for advanced coal gasification 
projects. The proposed project with the addition of the proposed 
CO2 pipeline qualifies under this provision of the loan 
guarantee authority.

Purpose and Need for Agency Action

    The purpose and need for agency action is to comply with DOE's 
mandate under Title XVII of EPAct 2005 by identifying and providing 
loan guarantees to projects that meet the goals of the Act. DOE has 
determined that the project, comprising the construction and startup of 
the proposed SNG facility, meets the two principal goals of Title 
XVII--encouraging commercial use of new or significantly improved 
energy-related technologies, and achieving substantial environmental 
benefits.

Proposed Action

    DOE's proposed action is to issue a loan guarantee to IG to support 
the construction and startup of the SNG facility and a CO2 
pipeline. The proposed construction and startup of the SNG plant was 
described in the NOI published on November 12, 2009 (74 FR 58265). The 
proposed pipeline would run approximately south-south-west from 
Rockport, Indiana, across Kentucky and Tennessee, to Tinsley in Yazoo 
County, Mississippi. This CO2 pipeline would be known as the 
Denbury Midwest Pipeline. At Tinsley the proposed CO2 
Pipeline would connect to Denbury's existing Delta Pipeline to further 
transport CO2 to oil fields in the Gulf Coast for use in 
EOR.
    The 20-inch diameter pipeline would require a typical right-of-way 
(ROW) width of 95 feet for construction and a 50-foot wide permanent 
right-of-way for operation. Additional temporary work space would be 
acquired for the pipeline construction at crossings (i.e., roads, 
railroads and significant waterbodies) and where full ROW width topsoil 
segregation is required in agricultural areas.
    A map showing the proposed pipeline route can be found on the DOE 
Loan Programs Web site at https://lpo.energy.gov/nepa/ig-pipeline.pdf. 
The proposed pipeline would be co-located alongside existing adjoining 
utility corridors for 428 miles of the proposed 441-mile route (i.e., 
for 97% of the route). These adjoining corridors comprise sections of 
the existing BP/Amoco Oil Pipeline, Boardwalk/Texas Gas Pipeline, 
Shell/Capline Oil Pipeline, Panhandle/Trunkline Gas Pipeline, and 
Denbury/Delta Tinsley CO2 Pipeline. The initial northern 13 
miles of the proposed pipeline would be outside of existing adjoining 
utility corridors. The proposed route would cross 6.1 miles in Indiana, 
137.1 miles in Kentucky, 117.5 miles in Tennessee, and 180 miles in 
Mississippi. It would pass through the following states and counties: 
Indiana: Spencer; Kentucky: Daviess, McLean, Webster, Hopkins, 
Caldwell, Lyon, Livingston, Marshall, and Graves; Tennessee: Obion, 
Weakley, Gibson, Dyer, Crockett, Haywood, Tipton, and Fayette; and 
Mississippi: Marshall, Tate, Panola, Yalobusha, Tallahatchie, Grenada, 
Carroll, Holmes, and Yazoo. The proposed route would cross primarily 
rural land, of which 52% is classified as agricultural.
    The proposed route would cross three federal enclaves: the Clarks 
River National Wildlife Refuge in Kentucky, the Obion River Wildlife 
Management Area and the Tigrett Wildlife Management Area in Tennessee; 
one state administered enclave: the John W. Kyle State Park in 
Mississippi; and an existing conservation easement crossing private 
land and the Wolf River in Fayette County, Tennessee. It would cross 
three Interstate Highways, 19 US Highways, 89 State Highways, 397 other 
roads, and 17 rail lines. It would cross several waterways including 
the Ohio River, Tennessee River, and Cumberland River, as well as the 
Hatchie River and Cypress Creek, both of which are classified as 
Kentucky Special Use Waters. This proposed IG-Denbury route is the 
preferred alternative. The EIS will also evaluate other reasonable 
route alternatives.

Alternatives

    In determining the range of reasonable alternatives to be 
considered in the EIS, DOE identified alternatives that would satisfy 
the underlying purpose and need for agency action. DOE currently plans 
to analyze in detail the project as proposed by IG. If appropriate, DOE 
would also analyze alternatives to portions of the project that 
mitigate impacts to affected resources. Under the no action 
alternative, DOE would not provide the loan guarantee for the project 
and, for purposes of analysis, DOE assumes the project would not be 
constructed.

Notice of Floodplain and Wetland Involvement

    This NOI serves as a notice of proposed floodplain and/or wetland 
action in accordance with DOE floodplain and wetland environmental 
review requirements (10 CFR part 1022). The Draft EIS will include a 
floodplain and wetland assessment, and a floodplain statement of 
findings will be included in the Final EIS or may be issued separately 
(10 CFR 1022.14(c)). Interested parties may comment during the 30-day 
scoping period and will also be able to comment on the floodplain and 
wetland assessment when the Draft EIS is published. The Final EIS or 
record of decision will include a floodplain statement of findings.

Preliminary Identification of Environmental Issues

    The following environmental resource areas have been tentatively 
identified 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 other resource areas or potential 
issues should be considered in the EIS.

Public Scoping Process

    To ensure that all issues related to DOE's proposed action are 
addressed,

[[Page 37663]]

DOE seeks public input to define the modified scope and content of the 
EIS as described in this Amended NOI, specifically the addition of the 
proposed CO2 pipeline to the project. The public scoping 
period will begin with publication of this Amended NOI and end on July 
23, 2012. Interested government agencies, private-sector organizations, 
and the general public are encouraged to submit comments concerning the 
content of the EIS related to the addition of the proposed 
CO2 pipeline, issues and impacts to be addressed in the EIS 
and environmental impact mitigation 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 concerning the addition of the CO2 
pipeline to the proposed project. Comments must be postmarked or 
emailed by July 23, 2012 to ensure consideration. Late comments will be 
considered to the extent practicable.
    DOE has coordinated with Federal and state agencies in the proposed 
project area, and the United States Army Corps of Engineers is a 
cooperating agency for the preparation of this EIS. DOE invites any 
additional agencies with jurisdiction by law or special expertise to 
request cooperating agency status for the preparation of this EIS.
    The public scoping meetings will be announced as described in the 
DATES and ADDRESSES sections above. Members of the public and 
representatives of groups and Federal, state, local, and Tribal 
agencies are invited to attend. The meetings will include both a formal 
opportunity to present oral comments and an informal session during 
which DOE and personnel from IG will be available for discussions. 
Displays and other information about the proposed agency action, the 
EIS process, and the proposed project will be available. Individuals 
who wish to make oral comments during one of the scoping meetings may 
register at the meeting. To ensure that everyone who wishes to speak 
has a turn, DOE may need to limit speakers to three to five minutes 
initially, but will provide additional opportunities as time permits. 
Written comments may be submitted also to DOE officials at the scoping 
meetings. DOE will afford equal consideration to all comments whether 
mailed, emailed, or presented at the scoping meetings orally or in 
writing.

    Issued in Washington, DC, on June 19, 2012.
David G. Frantz,
Acting Executive Director, Loan Programs Office.
[FR Doc. 2012-15374 Filed 6-21-12; 8:45 am]
BILLING CODE 6450-01-P
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