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HomeMy WebLinkAboutAtqasuk Coal Project Phase II 1989NORTH SLOPE BOROUGH Atqasuk Coal Project Planning Department Grier) Rabel P.O), Box: 69 Barrow, Alaska 99723 PROJECT ATQASUK COAL PROJECT Phase Il PROJECT REPORT c= DECEMBER, 1989 PREPARED BY ARCTIC SLOPE CONSULTING GROUP Engineers e Architects « Scientists « Surveyors P.O. 650 Barrow, Alaska 99723 Telephone: (907) 852-4556 Fax: (907) 852-5733 NORTH SLOPE BOROUGH ATQASUK COAL MINE PROJECT - PHASE II RELI PROJECT # 13-127 PROJECT REPORT NSB Contract No 87-103 December 1989 Prepared For: NORTH SLOPE BOROUGH P.O. BOX 69 BARROW, ALASKA 99723 Prepared By: ARCTIC SLOPE CONSULTING GROUP P.O. BOX 650 BARROW, ALASKA 99723 38 —” ARCTIC SLOPE CONSULTING GROUP | . 7 ; Engineers * Scientists * Surveyors Rick Sampson, Acting Deputy Director Planning Dept North Slope Borough P.O. Box 69 Barrow, Alaska 99723 Subject: NSB Atqasuk Coal Mine Project Phase II RELI # 13-127, Project Report Dear Mr. Sampson: Arctic Slope Consulting Group is pleased to submit herein our Project Report on the Atqasuk Coal Mine Project, Phase III and supplemental documents entitled, North Slope Borough, Atqasuk Coal Mine Project Phase II - Project Installation Photographs and Checklists and Atqasuk Coal Conversion Preliminary Feasibility Study (Submitted July 89). The NSB Coal Project has built upon the results of the previous Phase I. Although there are many steps to be taken concerning the development of the local coal resource in the areas of coal quality and coal handling, this demonstration has made significant advances towards that end and continues to create interest and support from other public and private entities. We look forward completing Phase III and discussing future developments on this project with the North Slope Borough, City of Atqasuk, and the Atqasuk corporation. Kent M. Grinage North Slope Regional Manager KNG/jc P.O. Box 650, Barrow, AK 99723 ° PH (907) 852-4556 ° FAX (907) 852-5733 BA Re Ra O7 W ° ANC HO R#A GE . FAIRBANKS TABLE OF SECTION List of Tables. List of Figures 1 -@ NTRODUCTION Background. 7 : Project Objectives. Scope of Work I 1 1. 1 tite 1 Project Organization. PWN INING PROGRAM General Mobilization. Production Schedule Stripping M 2 2. 2 2 2 Mining. OPWNHE INSTALLATION REPORT. 3. General 3 3 3 s 1 | ll |e -2 Production Schedule 3 4 General . Observations. Pr Pad OAL UTILIZATION 1 2 PROJECT COST 5.1 General. . . 5.2 Cost Breakdown. PROJECT WORK FORCE 6.1 General... : 6.2 Work Force Profile. 6.3 Labor Cost. RECOMMENDATIONS. 7.1 Mining. CONTENTS Selection of Participants +i). Equipment Purchase and Transport. bp HR PRR RR WNrRRR NNNNNN toed NNNRP RR WWWwWww 1 WNNRFR Pe ' PRR aun 1 PRR AnaAD ' 1 NP RB nw to RR LIST OF TABLES No. Page 5-1 Project Cost Breakdown. ............ 2... 5-2 6-1 Project Personnel Employment List. .......... 6-2 6-2 Project Labor Cost .......... . 6-3 LIST OF FIGURES No. Page 2-1 Plan View of Mine Site ............2.2.2. 2. 2-3 2-2 Excavation Plan and Section. ............. 2-4 ii 1.@ INTRODUCTION 1.1 Background The high cost of fuel oil on the North Slope has created hardships amongst its residents and has suppressed economic development throughout the region. This problem has further been compounded by substantial decreases in state and local expenditures in capital projects which have provided cash income opportunities to many residents. Both the high cost of fuel oil and lack of cash income are the key factors that make up the energy problems prevalent throughout rural Alaska. Aware of this problem and in response to the villages’ request, the North Slope Borough (NSB) Assembly approved funds in June of 1987 for the NSB RELI Project 13-127, Atqasuk Coal Mine project. Upon successful completion of the project the NSB Assembly voted to continue with the project and on June 21, 1988 approved funding for a Phase II Project. The Phase II Project built on the work conducted under the Phase I effort. Mining was conducted in the same area of the old Meade River Coal Mine. As part of the project Arctic Slope Consulting Group (ASCG) worked with the City of Atqasuk and the Atqasuk Corporation to prepare a development plan entitled, Atqasuk Coal Conversion Preliminary Feasibility Study. 1.2 Project Objectives The overall objectives for the 1989 Program were similar to those of the 1988 Program. The purpose of the Phase II Project is to maximize on the use of the Atqasuk labor force and to mine and deliver to the village a minimum of 200 tons of coal for use ina pilot program to test the use of coal for residential heating. The project yielded information on costs and operating requirements which will assist in the analysis of mining methods best suited to recovery of the Meade River coal and the benefits which can be derived from its use. Other tasks of the project included installation of ten additional coal stoves and monitoring of coal use, and preparation of a development plan. 1.3 Scope of Work The major project tasks undertaken by ASCG are presented below: 1) Project Management The purpose of this task involves project administration, control and scheduling, preparation of monthly reports, and final project report including a coal development plan for the community of Atqasuk. 2) Mobilization Planning of the mining operation and procurement of the supplies and equipment required for performance of the mining. Obtain all appropriate permits. 3) Mining Using local labor and NSB heavy equipment excavate 200 tons of coal and stockpile at the gravel stockpile area adjacent to the village. 4) Installation Using local labor install ten (10) new coal-fired residential heating units in selected participating homes under the supervision of a qualified technician. 5) Coal Utilization Devise a method for delivery of the coal to the residents which provides for a continuous supply and a method for measurement of coal used at each installation. 1.4 Project Organization Funding for this project was provided by the NSB. ASCG were the recipients of the NSB grant and were therefore responsible for the Management of the overall project, installation equipment procurement, installation supervision, mine planning and supervision and final report preparation. Local hiring, project coordination within the village, and selection of demonstration participants were performed in the village by a Project Coordinator residing in the community. 2.1 2.@ MINING PROGRAM General The 1988 - 1989 Atqasuk Mining Program was the continuation of a North Slope Borough (NSB) funded program to utilize the local coal resource to supplement and/or offset the heavy reliance on diesel fuel for residential heating by local residents. The goal of the 1988-89 program was to mine and stockpile 200 tons of coal for use during the 1989-90 heating season. The program was begun in November, 1988, but not completed due to engine failure in the Caterpillar D-7 being used for ripping and dozing the overburden. No replacement machine was available, so the project was shut down until repairs were made. Mobilization Steve Denton of Denton Civil and Mineral (Steve supervised the 1987 mining program) met with Kent Grinage, Project Manager and Gene Grisel, Mining Supervisor, on November 3 to discuss the mining programs for the NSB Western Arctic Coal Demonstration Project and the Atqasuk Coal Project. On November 5, Mr. Denton and Mr. Grisel flew to Atqasuk and met with Mr. Leroy Gunderson, Village Project Coordinator, and Jimmy Aikens, NSB Equipment Supervisor. Maintenance and operation of the equipment, supplies required and personnel were discussed. The mine site was visited to familiarize Mr. Grisel with the area. Work was begun on November 6. 2.4 Production Schedule Nov 6/88 Open road to mine site; locate materials. Nov 7/88 Construct temporary bridge, begin stripping operations. Nov 8/88 No work - blizzard. Nov 9/88 Engine failed in Caterpillar D-7 dozer. Nov 10/88 Moved D-7 to NSB shop, boxed supplies and closed down operation. Mar 16/89 Began work again. Opened road to mine and dozed snow from pit. Mar 17-22/89 Ripping and dozing overburden on pit. Mar 23/89 Began hauling coal - 9 loads. Mar 24/89 Hauling Coal - completed 18 loads. 1 load to Mrs. Burnell’s. Mar 25/89 Backfilled pit, demobilized. Stripping A total sum of 2700 yd*> of overburden was removed in approximately 73 hours by the D-7 and 50 hours by the 966 (See Figure 2-1). Overall, these numbers represent about 37.2 yd’ excavated per hour of dozer operation time. Mining Old workings were encountered in the Southeast corner of the pit, resulting in about a 50% loss of minable coal in the pit due to the restrictions in equipment mobility caused by the cramped work area (See Figure 2-2). Also, lower seams of higher quality coal could not be effectively mined. RECOMMENDED / FUTURE MINING AREA OLD WORKINGS 1988 - 1989 PIT PIT FROM 1987 SEASON (BACKFILLED) UNDERGROUND WORKINGS (INTERSECTED 1987 SEASON) HAUL ROAD “7 PREPAREO BY ARCTIC SLOPE CONSULTING GROUP Plan View of Mine Site 1988-1989 SEASON ATQASUK COAL MINE D B NO. DATE ” 3663 SEPT. 1989 ~ WASTE (OLD WORKINGS) PIT OUTLINE AT TOP OF COAL PLAN SCALE:1"= 20' SECTION A-A N.T.S. iyure 2 - 2 Excavation Play PREPARED BY and Section 1988-1989 SEASON ARCTIC SLOPE CONSULTING GROUP ATQASUK COAL MINE ella SEPT. 1989 3.@ INSTALLATION REPORT General All installations were done in accordance with NFPA 211. Selection of stoves for Phase II of this project was based on results from Phase I. Most of the new participants have had the benefit of seeing the previous project stoves in use, and already had a good idea which stove would fit their needs the best. Only two different stoves were installed, the Ashley CW85 and the Harman Mark III. The Ashley and the Harman stoves have an effective efficiency rating of 55% to 65%. This figure is relative and comparable to other units on the market. The Ashley CW85 was chosen most frequently because of its double wall construction and relatively cool exterior surface. This made the CW85 particularly attractive to participants with small children. On the preliminary visit to Atqasuk, I conferred with the participants and with them determined the best installation location, keeping in mind optimum heat distribution and space usage. The layout of most homes limited the choice of installation locations, to one, and in some cases two areas. Once the stove and it’s location were decided on, a materials list was compiled. 3.3 Production Schedule Jul 5/88 Travel to Barrow (meet with Project Manager). Jul 6/88 Travel to Atgqasuk (meet with Mayor Kignak). Jul 7-9/88 Survey housing and select participants. Jul 20-25/88 Prepare materials list. Aug 10/88 Bids due. Aug 14/88 Awards bid. Sept 10 - Oct 3/88 Received installation materials and prepared them for shipment to Atgasuk Oct 5/88 Travel Atqasuk Oct 6/88 Hold employee safety meeting and organize installation materials. Oct 7-13/88 Stove installations and build storage bins. Oct 14/88 Travel to Barrow. Selection of Participants Residents of Atqasuk were notified of the project by the village coordinator by means of written notices posted in Prominent locations throughout the village. Persons interested in participating in the coal project were requested to contact the village coordinator. The coordinator compiled a list of 21 interested persons. Unfortunately the budget only allowed for 1@ installations. The applicants were screened and 10 final participants were selected. The screening was done with the input of the village coordinator, the Mayor and the installation supervisor. When screening applicants the selection was based on; 1) anticipated participation; 2) economic need: and 3) desire. The final participants and the stove of their choice are listed below: 1. Janey Itta Ashley CW85 2. Robert Itta, Sr. Ashley CW85 3. Sam Hopson, Sr. Ashley CW85 4. Mary Gunderson Harman Mark III 5. Thomas Itta, Jr. Ashley CW85 6. Thomas Kanayurak, Sr. Harman Mark III 7. Jimmy Nayukok Ashley CW85 8. Elizebeth Hollingsworth Ashley CW85 9. Jacob Shugluk Ashley CW85 10. Mike Shugluk Ashley CW85 Equipment Purchase and Transport Because of the wide variety of materials needed the bid list was divided into seven sections. With prospective bidders encouraged to bid on all or any of the individual sections, each of the seven sections received a minimum of two competitive bids and were awarded to the low bidder with the exception of Section 7 (Misc. Installation Materials). In which case there were four bids, none of which were complete. Thus, materials for this section were made at the discretion of the installation supervisor using portions of the respective bids where applicable. Due to the similarities of the NSB Western Arctic Coal Demonstration Project and the NSB Atqasuk Coal Project the Materials Bid Lists were combined and materials consolidated in Fairbanks for volume shipment to the respective villages. To standardize bids and simplify logistics all bids were F.0O.B. Fairbanks. It was determined that the most economical way to deliver the installation materials to Atqasuk would be via Northern Air Cargo direct. In some cases stoves were installed in locations that wood heaters were previously installed, thus having chimneys and in some cases full installations to contend with. This proved to be a detriment rather than advantage. Prior to April of 1987 NFPA regulations allowed coal heating appliances to be installed on Class A chimneys. Coal heating appliances installed after this date are required to have a higher rating of U.L. Standards - 108-HT, thus making it necessary to remove existing chimneys to install chimneys with U.L. 103-HT rating. All Chimneys installed were Security brand model ASHT having U.L. 103-HT approval and were installed with the required minimum 2’ air space. This 2’ air space is an area of definite heat loss. But necessary! To minimize heat loss all ceiling trim collars were therefore eliminating filtration heat loss. Chimney were installed so that they terminated a minimum of two feet above the peak of the roof to minimize the possibility of down drafts. Chimney that penetrated the roof line more than six feet were secured with a chimney brace. To connect the stoves to the chimneys - Security double wall connector pipe was used. Securities double wall pipe far Surpasses NFPA’s required standard 24 gage single wall stove pipe minimums and has many features that make it outstanding for the application: 1) Inner liner is stainless steel all but eliminating the need for replacement; 2) Outer wall is aesthetically pleasing black finish and vented to allow cooling and heat distribution through convection; 3) Available in a section of lengths and slip sections eliminating the need for cutting; 4) Reduced clearances to combustible 6" rather than 18" for single wall; 5) Unique twist lock for tight joints. (Although not required for twist lock pipe - three screws were placed on each joint); and 6) Cool exteriors minimize the possibilities of burns to small children. Wall protection. NFPA standards state that the stoves clearances to combustibles may be reduced by 2/3 (from 36’ without protection, to 12" with protection) by installing a noncombustible material with one inch of air space behind it, provided that noncombustible spacers are used. All installation utilized this practice in order to minimize the loss of living space. In many cases installation would not have been possible without this practice. 24 gage galvanized sheet metal with edges hemmed was used as the noncombustibles materials with hatchannel spacers secured with screws. Floor protection was fabricated from 5/8" Homasoto (a commercial grade noncombustible material that meets FNPA requirement for floor protection)d covered with 24 gage galvanized sheet metal. This protection extended a minimum of 16 inches in front of the stove door opening. Each participant was supplied with appropriate safety equipment for operation of his stove and instructed on the proper and safe use and maintenance of their stove. 4.@ COAL UTILIZATION 4.1 General This portion of the project involved the usage of coal by the selected demonstration participants. As part of the monitoring effort during this phase of the project, a fuel use monitoring report prepared by ASCG for the Western Arctic Coal Demonstration Project was utilized. These reports were used by the Village Project Coordinator to track performance of the stoves, amount of coal/oil consumed and comments of the participants. In addition to the monitoring reports two LoFlo Fuel oil meters were installed. Two houses of similar construction were selected to receive the meters. One house was a participant in the coal demonstration,the other was not. Meter readings were to be taken every two weeks. The consistency wasn’t there throughout the demonstration period, however, there were periods of consistency that makes the data valid. 4.2 Observations The following observations have been recorded: 1) All coal burning units selected for the demonstration performed well. 2) As in Phase I, the primary use of coal has been as a supplemental heating source to fuel oil, especially in the newer type NSB housing. 3) Due to the inconsistent use of the monitoring reports by the Coordinator, the data gathered is spotty. 4) Coal quality was not as good as Phase I. This was a constraint to its use. Apparently the mining operation hit the old underground tailings thus reducing the selection of the higher quality coal. As in the past coal was used as a supplemental fuel to oil. This was due to the area heating limitations of the stand alone conventional coal stoves used on this project and the style of housing which utilizes forced air or hydronic heating systems in order to reach all of the walled-in rooms in the house. From the fuel use monitoring reports the following examples give a representative picture of coal and oil use during’ the demonstration period from 9/20/88 to 12/12/88. Overall coal use provided from @% to 62% for the heating demand of 23 participants. The mean being 16%. During this period, for the 23 participants, coal displaced approximately 185@ gallons of fuel. Analyzing the two metered homes, the period of 11/1/88 to 12/12/88 was selected due to the quantity and quality of the data taken. During that 42 day period the coal participating home consumed 251 gallons of fuel and about 2290 pounds of coal. The non-coal Participant consumed 337.8 gallons. The non-coal user consumed 86.8 gallons of fuel oil more than the coal user. This represents about a 25% reduction in fuel oil usage for the coal-user. 5.@ PROJECT COST 5.1 General The Atqasuk Coal mine Project Phase II, as part of the overall energy resource development project, has provided much technical and social data required to, develop appropriate mining methods, demonstrate the applicability of modern coal stove technology and assess the social acceptance, desires, and capabilities of coal mining and end use by NSB residents. 5.2 Cost Breakdown The NSB demonstration project represents the second mining effort at the old Meade Rive Coal Mine. The project costs presented include the cost of stove installation, mining, coal distribution and project management. Total project costs were $210,000. The test mining cost category represented 25% of the total project budget. Table 5-1 presents the project cost breakdown. It should be noted the cost associated with all phases of the project except for the installation of stoves are not representative of cost conditions that would prevail under normal operating conditions. The project scale is to small to provide valid economic data to determine mining feasibility. Further, the field effort was a test mining one that contained non-productive costs that were necessary to get the field program up and running. Overall mining costs are lower compared to last year due to the elimination or reduction in non-recurring costs such as permitting and initial mine planning and reconnaissance performed during Phase I. TABLE 5-1 Project Cost Breakdown Project Management. .............48 2.84 8884 - $108,074.62 Administration $ 40,947.97 Project Coordinator 28,425.50 Development Plan 38,701.15 Mining Operation ...........0. 0.8 208 28 08 -$ 52,536.88 Field Supervisor 21,579.67 Supervisor Subsistence/Travel 5,940.12 Material 11,808.09 Rental 125.00 Labor 13,084.13 Coal Distribution ............0..0.2.222.288. -$ 5,687.99 Materials/Freight 4,859.99 Labor 828.00 Installation. ............ 2.0.28 084 2.2 eee -$ 43,700.57 Installation Supervisor 10,930.50 Supervisor Subsistence/Travel 7,114.59 Materials/Freight 18,324.17 Labor 7,331.25 Total $210,000.00 There were substantial increases in Project Management due to the Village Project Coordinator (VPC) performing the coal distribution tasks of the project. The VPC cost increased by 264% over last years Program while the coal distribution cost category decreased by 25% even though 100 more tons was extracted during Phase II. In addition the Project Management category included the new sub- category Development Plan. 6.@ PROJECT WORK FORCE 6.1 General All labor requirements, except for field and installation supervision were obtained through hiring North Slope residents from the village of Atqasuk. The Project Village Coordinator (PVC) maintained an employment list for the community. The PVC was responsible for selection of the workers when notified by the field supervisors that an employee was needed or a job became vacant. 6.2 Work Force Profile The NSB Atqasuk Coal Mine RELI Project Phase II employed 9 Atqasuk residents and four Barrow residents from September 12, 1988 to June 30, 1989. This project provided 1366 hours of work for the Atqasuk work force. The total hours are below the original proposed crew hour estimate of 1800 hours. This is due to the relative ease of mining the coal. The largest employment sector was in mining, with 6 workers, (46% of total). In addition to mining, there were employed 2 stove installers, (15 % of total), 1 project coordinator (8% of total), and 4 expediters in Barrow (31%). Personnel and job classifications are presented in Table 6-1. TABLE 6-1 Project Personnel Employment List Village Project Coordinator Leroy Gunderson Coal Mining Employees Alfred Shugluk Mike Shugluk Tommy Shugluk Robert Simmonds Paul Bodfish Mary Gunderson Village Installers Jack Ahkivgak Ronald Brower Expediters Joe Akpik Martin Oktolik, Jr. James Tegoseak Oliver Angashuk 6.3 Labor Cost Labor costs for the entire project amounted to 27% of the overall project cost. This is about 8% greater than Phase I. Labor cost are presented in Table 6-2. Labor cost associated with mining make up 23% of the total labor cost, a reduction of 15% over last year, and 25% of the mining costs. The lower labor cost percentage for mining reflects the additional labor required to distribute twice as much coal as in the previous year. Further the village project coordinator (VPC) distributed all the coal unlike the previous year, therefore the majority of the local labor costs for management and administration category is mostly the VPC’s efforts in distributing coal. Major Cost Categories Management Fees and Administration Cost and Mine Planning Mining and Stockpiling 20@ tons of coal Coal Distribution Stove Purchase and Development Plan TOTAL TABLE 6-2 Project Labor Cost 52,540 5,690 43,700 38,700 $210,000 Project Cost 2s 25 @3 21 Local Labor Cost $ 28,400 13,100 830 14,600 -Q- $ 56,930 7.@ RECOMMENDATIONS 7.1 Mining Future mining towards the South and West will have a high probability of intersecting the old underground workings. Opening a new pit away from the underground workings will be quite expensive, as some 12,000 yd’ of overburden excavation will be required, and the site would have to be drilled to establish stratigraphy and coal reserves. Due to the high cost of developing anew pit, it would be impractical to backfill it each season and, therefore, dewatering would be required. It is the writer’s opinion that in light of the present limited mining program, future mining be directed to the immediate Northwest of the old workings intersected during the 1987 season. The final pit size should be at least 60 foot by 6@ foot at the top the mining horizon. Any underground workings intersected should be checked for methane immediately upon their being located. A mechanic should be made available at the start of each shift’s work to help get the equipment running and, also, at the end of the shift to correct any problems that have developed. During the spring of 1989 operations, no transportation was made available for the mining supervisor. He subsequently used one of the DJB trucks. Arctic Sloped Consulting Group has two Sno Tracks available. One of these would work very well for transportation to the mine from Atqasuk.