Surface Mining
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Tri-State Seeking Air Permit for Its Colowyo Coal Mine, Colorado

Published: January 8, 2018 |

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Tri-State Generation and Transmission Association is pursuing a state air permit necessary for the long-term operation of its Colowyo Mine between Meeker and Craig amid questions about the future of the coal-fired power plant it serves.

The Colorado Department of Public Health and Environment has released the proposed air permit for what’s called the Collom development project at the surface mine, with public comments being accepted through Jan. 28.

The mine, along with the Trapper Mine near Craig, supply the nearby Craig Station coal-fired plant.

According to documentation that’s part of the state permit review, mining in Colowyo’s South Taylor Pit is expected to be completed by 2022. The Collom development would ensure the mine’s long-term future by providing access to about 25 to 30 years of reserves, the documentation says.

The state’s review of the permit has involved modeling and analyzing potential emissions from the mining operations and setting requirements to protect air quality, Tri-State said in a news release Wednesday. Excavation, drilling, blasting, hauling and other activities lead to emissions of particulate matter and other pollutants that are controlled through means such as spraying water as a dust suppressant.

“We commend state regulators for their thorough work on the permit,” Mike McInnes, chief executive officer of Tri-State, said in the release. “The permit sets stringent requirements and protects public health and the environment. With the issuance of the permit, operations can continue at Colowyo Mine.”

Tri-State said the mine provides more than 200 jobs, $12 million a year in local, state and federal tax revenues, and a $200 million annual regional economic impact.

Tri-State received federal approval a year ago of its mining plan for the Collom development, where it is seeking access to up to 79 million tons of coal. It has donated 4,543 acres of sagebrush habitat as part of the project to Colorado Parks and Wildlife, which will manage the land to benefit the greater sage-grouse.

Jeremy Nichols, with the conservation group WildEarth Guardians, questions Tri-State’s pursuit of the Collom project, given the uncertainty surrounding the power plant’s future.

“If Craig (Station) is on the outs why is it that Tri-State continues to invest in keeping Colowyo open?” Nichols said.

In 2016, Tri-State and other owners of the plant’s Unit 1 generating facility reached an agreement with CDPHE, WildEarth Guardians and others under which the unit will be retired by the end of 2025 to address regional haze issues. Tri-State also agreed to close its Nucla Station coal-fired plant in Montrose County by the end of 2022.

The Craig Station agreement doesn’t affect Unit 2 and Unit 3 at the station. But Nichols wonders what the future holds at least for Unit 2 given the initiatives of some of its partners in terms of exploring alternatives to coal power.

Units 1 and 2 comprise the Yampa Project, owned by Tri-State, PacifiCorp, Platte River Power Authority, Salt River Project, and Xcel Energy subsidiary Public Service Company of Colorado. Unit 3 is owned solely by Tri-State.

The Platte River Power Authority serves Estes Park, Fort Collins, Longmont and Loveland.

“They’re basically coming up with a plan to bail on coal and move beyond coal,” Nichols said.

Platte River spokesman Steve Roalstad said the authority commissioned a study this past summer to look for the lowest-cost model to reach zero net carbon power production. The concept involves a lot more reliance on renewable energy, while relying on natural gas as a backup electricity source due to the intermittent nature of renewables. Excess renewable power would be sold to zero out the carbon impacts of the gas-fired power it would use.

The modeling calls for retirement of all of Platte River’s coal-fired facilities, including in Craig, by 2030. Alternatively, Platte River could sell its ownership in Unit 2 rather than it being shut down, Roalstad said.

He emphasized that no decisions have been made.

“It’s just a model. It’s the first of a lot of different studies we’re going to have to do before we even start thinking about long-term plans,” Roalstad said.

He said factors such as the Craig Station’s great access to transmission lines also would be considerations.

Meanwhile, the Sierra Club said last month that PacifiCorp will do an analysis of the true cost of its coal for the Oregon Public Utilities Commission. PacifiCorp couldn’t be reached for comment Wednesday, but like other utilities it has been moving to reduce its reliance on coal.

Nichols said Xcel also put out a request for proposal for energy sources and heard back from companies offering wind and solar projects for far less cost than coal.

“If other owners of the Yampa Project have no stomach for coal, Tri-State’s going to have to go along with that, so I think the future of Craig (Station) is pretty uncertain,” he said.

Tri-State also has been turning increasingly to renewable energy.

But Tri-State spokesman Lee Boughey said Wednesday, “Even as Tri-State and our members continue to diversify our generation portfolio, which now includes nearly 30 percent renewable energy, we understand that coal remains an important part of an affordable and resilient power supply.”

Source: The Daily Sentinel


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