Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Donlin Creek Power Feasibility Study Volumes 1 & 2
Donlin Creek Mine Power Supply Feasibility Study Volume 1 Report Volume 2 Appendix A Public Draft March 20,2004 Donlin Creek Mine Power Supply Feasibility Study Nuvista Light &Power,Co. 301 Calista Ct. Anchorage,AK 99518-2038 Volume 1 Report Public Draft March 20,2004 Bettine,LLC -1120 E.Huffman Rd.Pmb 343 Anchorage,AK 99501 907-336-2335 DISCLAIMER The information provided in this document is intended as a general referencefor Calista Corporation and Nuvista Light &Power Co.All parties that participated in preparation of this document have made reasonable efforts to insure the information and cost estimates contained herein-are consistent with the level of accuracy anticipated in a feasibility level study.No warranty or guarantee of any kind is made that the power costs developed in this study will accurately reflect the actual power costs that may be ultimately charged to wholesale customers. TABLE OF CONTENTS VOLUME I PAGE NO. SECTION I -EXECUTIVE SUMMARY.........Lee ceceeeeeens I-1.1 1.CONCLUSION &RECOMMENDATIONS.............02ceeeeeees I-1.1 2.INTRODUCTION .......ccc cc cee een e ete eeneees I-1.2 A.BACKGROUND.........0...cc cece ec cee cece eect een eens I-1.2 B.PURPOSE OF STUDY.........0...ccc eect eee teeees I-1.4 C.STUDY METHODOLOGY .............cece eee ee ee eee eens I-1.43.DESCRIPTION OF POWER SUPPLY ALTERNATIVES eee eee ees I-1.5A.COAL-FIRED PLANT AT BETHEL.............2.000 eee eee eee I-1.5 1.Site Location...2...ee ce eee eee e eee eeas I-1.7 2.Coal Selection........cece ccc cee eee eee eee eeeeee I-1.7 3.Coal Demand and Storage Requirement ..................-000-I-1.8 4.Coal Transportation..........0...eee cece cece nec eeeane I-1.9 B.COMBINED-CYCLE COMBUSTION TURBINE PLANT..........1-1.9 1.Site Location 22....cece cece eee ee eee eee teen eee I-1.11 2.Fuel Alternatives .......0...eee eee ee eter e ee eneee I-1.11 C.OTHER POWER SUPPLY ALTERNATIVES................0000-I-1.12 1.Importing Rail-belt Power...1...0...eee eee eee eee eens 1-1.12 2.Holitna Basin or Cook Inlet Natural Gas I-1.12D.BETHEL TO DONLIN CREEK 138-kV TRANSMISSION LINE......I-1.12 E.PROJECT SCHEDULE.I-1.13 F.ECONOMIC ANALYSIS and COST ESTIMATES...............4.I-1.131.Capital Costs...2...cece ccc ce eee re cece ence teens J-1.13 2.Wholesale Power Costs ......05.0...cc cece ee cece eee cee ences I-1.14 3.20 Year Accumulated Donlin Creek Mine Power Costs...........I-1.16 4.Fuel Price Sensitivity Analysis...0.2.0.0...0c cece e ee eee eee J-1.185.Mine Demand Sensitivity Analysis ..........0.eee eee eee eee I-1.186.Coal-fired Plant Generation Efficiency .............000s eee eee I-1.19 7.Waste Heat Recovery ........0.cece cece ee eee ee eee »..1-1.19 8.50-Year Regional Power Costs ............ccc cee cece ee ee eee I-1.20 G.ENVIRONMENTAL ASSESSMENT REVIEW.............00505-I-1.21 1.NEPA Compliance.......0.0...e cece eee eee e eee eeeees J-1.22 2.Scope of NEPA Consistency Review............vet eeeeeeeeaes J-1.22 3.Land Ownership.......0..ccc cee cece eee reece I-1.24 4.Project Permits...0...0...ccc cee cece eee eee e eet eeees I-1.25 -TableI-1.1 |Power Costs $per KW-Selected coals..............I-1.8 Table I-1.2 Fuel Price Summary .....0.0....0.cece eee eee eee I-1.11 Table J-1.3 Capital Costs....0...eee cece ee ee ee ene I-1.14 Table I-1.4 Wholesale Costs Years 1-20 ..............-..205.I-1.15 Table I-1.5 Donlin Creek Mine Accumulated Power Costs Years 1-20...0.0...cee cece eee ee eee I-1.17 Table I-1.6 60MW Average Mine Demand -$150 Million Grants..I-1.17 Table I-1.7 Savings Associated With Coal Fired Generation......1-1.18 Table I-1.8 Mine Demand Sensitivity...................--2...1-1.19 Table I-1.9 Generation Efficiency.........0.0.20.eee eee eee I-1.19TableI-1.10 50 Year Regional Savings Associated With Coal Fired Generation..............0c cece ee eee eee eee I-1-21 Table J-1.11 Segments With Landownership...................I-1.25TableI-1.12 Transmission Line Permits................0.00005 I-1.26 Table J-1.13 Bethel Power Plant Permits....................--.I-1.28 Figure I-1.1 Calista Region/Location Map Figure I-1.2 Route Overview Donlin Creek Transmission Line Figure I-1.3 Proposed Bethel Power Plant Location Figure I-1.4 Power Cost Comparison Years 1-20 Figure J-1.5 50 Year Regional Power Costs SECTION IT -INTRODUCTION ........0.ccc ccc cee eee II-1.1 1.BACKGROUND .....2...cee ccc cece cee een teenies O-1.12.PURPOSE OF STUDY.........0.ccc ccc cece ener eee eeee eens II-1.3 3.STUDY METHODOLOGY bene eee cece ee eect eee cent eens II-1.4 SECTION III-POWER SUPPLY ALTERNATIVES Iil-1.1 1.BETHEL COAL-FIRED POWER PLANT............2.00 e eee eens TI-1.1A.BACKGROUND _.....eee ccc ee ete ee ee eee eeeees I-1.11.General......necesenee cece cee eee tere eee tee eee eeeeeenee Il-1.1 B.LAND-BASED COAL-FIRED PLANT .........0...e cece eee eee Ii-1.2 1.Design Philosophy .........0...cece eee eee eee eee eens IH-1.3 2.SiteLocation ..........cece ee eee eee e eee nee eeeneeees Iil-1.4 C.BARGE-MOUNTED POWER PLANT ...........02sec cece eee eee III-1.4 1.Transporting Barges to Bethel .......0...ccc cece eee ee oe TII-1.5 2.Barge Mooring.........-cee cece eee eee eee eee teen e ees III-1.6 D.TECHNICAL DISCUSSION ..........0...eee cece eee eee Ii-1.7 1.Coal Selection,Procurement and Transportation..................-1.7 a."Coal Selection..........bee e cent eee ee nee ee ee eneteeees Iil-1.7 b.Coal Demand and Storage Requirement ..................08.II-1.10 c.Shipping Coal to Bethel....0.0....cece cece ce eee ees II-1.10 i.Ocean Transportation...2.0.0...cece eee ce eee eee TH-1.10 ii.Lightering by Specialized Marine Contractors..............TH-1.11 iii.Lightering by Nuvista Light &POWEF ..0.eee eee eens eee T-1.122.Coal Unloading Equipment ..:.........0.cee cee eee ee eee T-1.12 3.Coal Storage...ceceecceeteeneneeeeee I-1.13 4.Fire Prevention and Coal Dust Control...........0.0.000.c eee eee DI-1.13 ii 5.Description of Power Plant Facilities .,beeeeeeee cece eee e ee eues IiT-1.14 a.General Description ........0.cc eee cee cece teens TiT-1.14 b.Generation Efficiency ......0.0...cee cee ee eee eee eee IH-1.14 c.Make-up Water Source,Treatment,Filtering and Blow-down Disposal .........0...ccc eee cee ee ee nees I-1.14 d.Steam Turbine and Generator System....-occa eee cece eee eee IqI-1.15 e.Environmental Control System...................--Le eeeees IlI-1.16 1.Effluent Discharge........-0...cee eee ee eee ete eeee IiI-1.17 2.Solid Waste &Sewage Sludge Disposal ..................IH-1.17 3.Ash Handling and Utilization System.....................IH-1.18 f.Standby Turbine System and Diesel Fired Boiler...............IH-1.18 g.Instrumentation and Controls,Central Control. Room and Motor Control Center ............-22.e ee eee eee TH-1.19 h.Fire Protection System .......00...ce cece eee eee ee eee TI-1.19 i.Maintenance Shop.....Lene e eee eens Lace eee cece see e ee eees TI-1.19 E.REDUCED GENERATION OPTION ...2.0...ce see cece ee ee eens I1]-1.20 F.RELIABILITY ......2.0...cee eee teens I1]-1.20 Table IlJ-1.1 Comparison of Selected Coal.....................II-1.8 Table I-1.2 ADEC Standards...2.2.0...cece eee eee eens II-1.16 Table II-1.3 Loss of Load Expectations ................-00-005-II-1.21 Figure HJ-1.1 Gillette Twin 90 MW Coal Plant _Figure III-1.2 Proposed Bethel Power Plant Location Figure III-1.3 Bethel Wind Rose Figure III-1.4 Photo of Air-Supported Coal Storage Structure Figure III-1.5 Location Map -Goodnews Bay and Security Cove Figure II!-1.6 Hely-Patterson Barge Unloader Figure III-1.7 Dry Tow Vessel Drawings:Overall Site General Arrangements Coal Fired Plant General Arrangements Barge Concept Site Plan Barge Concept General Arrangement Plan SECTION ITI-2................00005 Leccecenceeeeeeeenenaee IH-2.1 2.COMBINED-CYCLE COMBUSTION TURBINE PLANT.............TiJ-2.1 A.LAND-BASED MODULAR PLANT...0.2...cece ee eee eee T-2.1 1.Bethel Combined-Cycle Plant.......20...0.cece cece eee eee II-2.1 a.Design Philosophy.........2...cece eee e eee cet e eens II-2.2 b.Site Location...6...eceeeeetereteeens IiI-2.3B.BARGE-MOUNTED POWER PLANT..........0:ee cece cence eee TII-2.4 C.TECHNICAL DISCUSSION ......0...cece eee eee ee eee IiI-2.5 1.Fuel Selection,Procurement and Transportation...............66.TI-2.5 a.Comparison of Various Fuels.........0.00 eee ccc eee eee eee TJ-2.5 ili b.Fuel Shipping ......0.0...0.cc cece cen cence nee I-2.6 1.FuelOil oo...cece eee eee eee eaes T-2.6 2.Propane 1....cece eee cee ee eee ete e eens Il-2.6 c.Fuel Receiving and Storage System Propane .................I-2.7 lL.FuelOiw 2.0...ccc cece eee ene eas II-2.7 2.Propane .......cece eee eee eeeec eee e eee eee eee I-2.7 2.Description of Power Plant Facilities...................been sees III-2.8 a.General Description .......0...cece eee eee tee eee IN-2.8 b.Prime Movers ......0...cece eee teen cee e eee e eee eees IN-2.9 c.Comparison of Combustion Turbines with Diesel Engines...:...III-2.10 1.Combustion Turbine Advantages ...............cee ee eeee T-2.11 a.High Efficiency When Applied in the Combined-Cycle....III-2.11 b.High Reliability...0...eee ee ees I-2.11 c.Multi-Fuel Capability .............0.0 -2.11 d.Low Weight...2.0...ccc cece eee cee eee eens TiI-2.11 _2.Combustion Turbine Disadvantages .............000ecece TiI-2.11 a.Lower Efficiency.....2.0....0.cee cece eee eee en ees I-2.11 "b.Maintenance...2...ceceeeeeeeeeens T-2.12 3.Advantages of Slow Speed Diesel Engines.................I-2.12 a.High Efficiency..................beeeeeeees I-2.12b.Multi Fuel Capability...0.0...ec eee IiI-2.124,Drawbacks of Diesel Engines............0.0.2 c cece eens T-2.12 a.Weight .......cece ce cee ee eect eee ee eeeeaee I-2.12 b.Foundation Construction Cost I-2.12 c.Lower Combined-Cycle Efficiency ....................TH-2.13. d.Lubrication O11...eeeees T-2.13 @.Maintenance...00...ccc ete eee enees T-2.13 f.NOK.0...ccc ccc cece eee eee e ene eeee ence THI-2.13 d.Comparison Summary.......0.0...ce cece ee cee eects e eens II-2.13 e.Comparison of the Alstom GTX100 &GE LM 6000 Turbine......TH-2.14 f.Heat Recovery Steam Generator System .............000 ee eeeTH-2.15 g.Steam Turbine and Generator Module..................00000-T-2.15 © h.Steam Condensing (cooling)System................-eee eee ee TH-2.15 i.Demineralizing System.......0...0.cece ee eee eee eee eee III-2.15 j.Phosphate Feed System ..........00...cece eee eee eens IN-2.15 k.Instrumentation and Controls including the DCS System..........IH-2.16 1.Environment Protection System ...........0.0.cece eee ee eee TI-2.16 1.Emissions to the Ambient Air....0.0...0.02.cece III-2.16 2.Liquid and Solid Waste....2.0...0.0...cece eee eee e eee II-2.17m.Auxiliary Boiler.....02...0.cece eee eee eee eee eee eee +LI-2.18 n.Fire Protection System.......0.0...cece eect eee eee IH-2.18 o.Civil Works,Buildings and Other Enclosures..................TI-2.18 p.Maintenance Shop.........0...cece cece ee cee eect e eens T-2.19 C.RELIABILITY ANALYSIS.20.0...cc ccc cece cence ener eens TiI-2.19 iv Table IJ-2.2 Bethel Power Plant Alternatives..................TH-2.10 Table W-2.3 Crooked Creek Power Plant Alternatives...........TiI-2.10 Table III-2.4 Loss of Load Expectation.............--0-.000es III-2.19 Figure II-2.1 Alstom Gas Turbine With Heat Recovery Steam Generator Figure III-2.2 Proposed Location of Crooked Creek Power Plant Figure III-2.3 Sound Pressure Levels Drawings:District Heating/Trunk Lines Bethel Modular Facility General Arrangement Crooked Creek CT Modular Facility General Arrangement SECTION ITI-3....0.0...eee ce cee eee eee e ences III-3.1 3.DISTRICT HEATING SYSTEM..............0c cece eee eee eee IH-3.1 A.INTRODUCTION.........0.ccc eee eee tte teen eens ...DI-3.1 B.System Specifics...0...0...ccc eee eee beeen renee I-3.3 1.Pipes &PumpS........0...cece eee ete eee eee eeeee III-3.3 2.Heat Exchangers.......cee cence cece eee eee e eee eeeeees II-3.3 3.Backup System......0.0...cc ccc eee eee eect eee eeee IlI-3.4C.SYSTEM INSTALLATION ............2.0 c eee e eee eee eee ee eees III-3.4 D.WASTE HEAT SALES.........20...ec e cee cece eee nee II-3.4 SECTION TlI-4......0...c eee cece cece eee nee ence ence nes TII-4.1 4.OTHER POWER SUPPLY ALTERNATIVES...........-..00020seee Ii-4.1 A.INTRODUCTION........0...0c cece ee ee ence eee ee eees TiT-4.1 B.TRANSMISSION LINES BUILT FROM NENANA................6-IH-4.1 1.+100-kV,DC Transmission Line.......cece cee een erences Ii-4.1 Fak)0)9 (05 CN a Ii-4.1 b.Option 2...0...ccc cc ee eee eee eee ee ee enees Iil-4.2 2.230-kV,AC Line Built from Nenana......2...ccc eee eee eee IT-4.2 Fa ©)0)6 C0)10S(RP TI-4.2 ;b.Option2..0...ceceeteeeeeeteeeeeneeeeneTi-4.2 C.NATURAL GAS SUPPLY......0...0.cc cece e ee eee e ee eens II-4.3 1.Cook Inlet Pipeline.......cneteeeeeeeeeeenee eee eee Til-4.3 2.Holitna Basin Natural Gas.....2.0.0...cece cece ee eee eee Iil-4.3 Figure II-4.1 Cook Inlet Historic &Forecast Gas Production 1958-2022 Figure III-4.2 Cook Inlet Gas Production Forecast SECTION IV -138-kV TRANSMISSION LINE &SUBSTATIONS.....IV-1.1 SECTION IV-1 -ROUTE SELECTION........0...cece cee cee eee IV-1.1 b>Q)7iINTRODUCTION.........0.cece ec ce cece eee ee ten ee eetees IV-1.1 METHODOLOGY..........0.cece ce cee eet e eee nett teen eens IV-1.1 1.General 2...cece cece eee eee eee ene nenes IV-1L.1 TRANSMISSION LINE CHARACTERISTICS.........0.0.00.0 eee IV-1.2 1.General Characteristics.......Lecce eee eee e eee e ee ee eeeees IV-1.2 2.R.O.W.Requirements.................6..eee e cece eee "tetas IV-1.3 3.Visual Impact...0...ceceeeeeeeeeeeeeeeensIV-1.3 4.EMF Affects.20...0c cc cee re ee ee eee e nee ennes IV-1.4 CORRIDOR CHARACTERISTICS .........2-2-0 eee e cece eee eeeIV-1.8 1.Soil Conditions.........0...ccc ccc cee ee cee eee eens IV-1.8 2.Wetlands...2.0...cece ccc eee eee rete e nee e nee IV-1.9 3.Forest Cover...2...cece cece ee eee eee ee ee eeee IV-1.10 4.Fish and Wildlife Habitat....0.0...0.0...cee ee eee ee eens IV-1.11 5.Navigable Rivers...2.0...cc cece cc cece eee eee eee eee renee IV-1.11 6.Floodplain........0...ceceeeeeeteeeeeeeeeee IV-1.127.Threatened and Endangered Species .............cece ee ee eee eee IV-1.12 8.Essential Fish Habitat .....2.2....cece eee eee eee eee eeeIV-1.129.Anadromous Fish Streams.............00ccceeceeeeeeeeees «..-LV-1.12 TRANSMISSION LINE CONSTRUCTION IMPACTS ...............IV-1.13 ROUTE SELECTION CRITERIA......0...cee ec ccc eee eens IV-1.14 DESCRIPTION OF ROUTE SEGMENTS ..........-2 cee eee eee eee IV-1.141.Segment A-B.....cc ccc eee cece nce c cent eee eeeneeenenees IV-1.15 2.Segment B-C....eee cece cee cere eee tee enna IV-1.15 . 3.Segment C-D......ecceeeeeeeeeeeeens IV-1.164.Segment D-E.......ck cece ccc cece eee t ec eee eeeeeecceees DWHL IT 5.Segment E-F i...ecceeeeeeeeeeenaee IV-1.17 6.Segment F-G......ce cc ec cee ce ee eee ee ences IV-1.17 7.Segment G-H.1...ccceeeeeeeeeeeneees IV-1.17 8.Segment H-L....eceeeeeeecteeeeenee IV-1.18 9.Segment I-J.oc.cc eee ee ee ee eee ee een enes IV-1.18 10.Segment J-K...ccceeeeeeeeeeeens IV-1.18 11.Segment K-L.0...cececeeeeeeeeeeeeeeeeee IV-1.18 12.Segment L-M......eee ec eee cece ee cette erences IV-1.19 13.Segment M-N.....0...cee ec cece eee cee cece eee eens oe.IV-119 Table IV-1.1 Magnetic Field Levels Common Appliances..........IV-1.6 Table IV-1.2 Magnetic Field Levels Near TransmissionandDistributionLines............0.02 eee ee eens IV-1.7 Table IV-1.3 Magnetic Field Strength at Ground Level............IV-1.8 Table IV-1.4 Summary of Selected Information for Each Route Segment .....0...0.cece eee cee ee eens IV-1.16 Map Donlin Creek Route OverviewMap1=Map!of 13Map1A Map 1B vi Map 1C Maps 2 through 13 SECTION IV-2 -TRANSMISSION LINE FEASIBILITY DESIGN.....IV-2.1 A.INTRODUCTION...........-....2-2 eee eeeee cee eee cece IV-2.1 B.VOLTAGE SELECTION..........2...eee eee ee ee eee eeeveseeee IV-2.1 1.Donlin Creek Mine Transmission Line.................-.000000-IV-2.1 C.SUMMARY OF ELECTRIC POWER SYSTEMS,INC.(EPS)STUDY..IV-2.1 1.Power Flow Simulations..........0.0...cee eee ce eee eee e eens IV-2.2 2.Transient Stability Simulations..........0.0.0...cc eee e eee eee IV-2.3 a.Loss of Generation.....0...0.eee eee eee eee IV-2.3 b.Loss of Mine Load.......0...cece cee eee eee eee eee IV-2.3 c.Motor Starting...0.0....ec ccc cee eee ee eee eee 22.1V-2.4 d.138-kV Line Energization............00 eee eee eee ee ete IV-2.4 3.Short Circuit Simulation........0.0.0 cece eee ee cee ee ee eens IV-2.5 D.DESIGN CRITERIA ........0.cece ce cee eee e eee eens IV-2.5 1.Electric Loading ...........ccc cece eee eee eee eee eee IV-2.5 2.Ampacity................eee eee ee cee ee cere eee eee ees IV-2.5 E.WEATHER DATA ..........0 cece ccc ete eee ence eeeeee IV-2.6 1.General...cccceceeeeeeeeeeeeeeeteee IV-2.6 2.Ambient Temperature...2.0.0...eee cee rete eee ee eee IV-2.7 3.Snow Ground Cover........02.cece cece eee eee eee eens IV-2.8 4.Conductor Ice and Snow Accumulation.................-02.0-005-IV-2.8 5.Extreme Wind .....2.....cece ce eee eee eee ee eeeees IV-2.9 F.DESIGN LOADING AND LOADING ZONES ..............2c e ee IV-2.10 1.Overload Capacity Factors...22...cece el ccc e eee e eee IV-2.11 2.Conductor Sag and Tension Limits ......02...0...cece ee eee eee IV-2.11 G.ELECTRICAL CLEARANCES......0...cece cece ce eee eee eee e nee IV-2.13 1.Foundations,Guys and Anchors..........02...eee eee ee eee eee IV-2.13 2.Insulator Assemblies..........0...cee eee ee eect eee eens IV-2.14 3.ROW.Width.....00.ccc cc ce eee eee teen eee ne eees IV-2.14 H.CONDUCTOR SELECTION..........2.cece e eee eee e eee eee eeee IV-2.16 1.Voltage Drop and Power Loss Comparison ..............ese05 oe IV-2.162.Conductor Sag &Characteristics...0.0.0...cece eee e ee eee eee',IV-2.16 3.Phase Spacing.....0...0...cece ccc ee ee eee eee een eeees IV-2.17 4.Optical Ground Wire (OPGW)Selection ................0.000005 IV-2.17 §.Conclusion.............00.ececeeeeeee eee ce ee cece nee eens IV-2.18 I.STRUCTURE SELECTION........0...ccc cece eee reece eee eee IV-2.18 1.Single Wood and Steel Pole Structures...............eee eeenee IV-2.18 2.H-frame Structures...0.0.0...ccc eee cee ee eee teen eees IV-2.20 3.Steel X-frame Towers......0...cc cece eee ee ee eee ee eeees IV-2.22 J.DONLIN CREEK TRANSMISSION LINE DESIGN ALTERNATIVES..IV-2.23 1.Single Pole +H-frame Structures..........0...cece cece ee eee eens IV-2.23 2.Single Pole +Combination of X-towers and H-frame Structures.....IV-2.23 3.Life-Cycle Costs...2.0...cece cece ee cence rece eees IV-2.24 vii 4.Conclusion ......0...eee cee ee cee ete ee eee eenes IV-2.24 K.STRUCTURE FOUNDATIONS AND ANCHOR SELECTION........IV-2.24 1.Structure Foundations........0...0.0.c eee eee eee ene eees IV-2.24 2.Amchors ..........eee eee te tee ee cette eee eneeaes IV-2.25 L.FEASIBILITY STUDY CONSTRUCTION PLAN ...........0000005 IV-2.26 1.Construction Zones......2...eee ete eee eee eee IV-2.26 2.River ACCESS.........0 cece cece eee e eee e eee eneees veeeeee IV-2.27 3.Road and Trail Access.........0...c eee eee eee teen eee IV-2.27 4.Foundations..........0.0...cece eee eee ete eee eee ee ees IV-2.28 5.Structure Erection......0.0...cece eee ee eee e eee ee ees IV-2.29 6.Conductor and OPGW Stringing ............0.2 cece eee eee IV-2.30 Table IV-2.1 Temperature and Snow Depths.....................IV-2.7 Table IV-2.2 Wind Speeds ...........cece cece eee eee eens IV-2.9 Table IV-2.3 Assumed Study Design Criteria.................6.IV-2.10 Table IV-2.4 Overload Capacity Factors ..............----000e-IV-2.11 Table IV-2.5 Conductor Tension Limits....................0005 IV-2.12 Table IV-2.6 OHGW Tension Limits................0.00.00 eee IV-2.12 Table IV-2.7 Electrical Clearances.......eee e eee ee eee eeeeeas IV-2.13 Table IV-2.8 ROW Width Requirement for Given Span...........IV-2.15 Table IV-2.9 Maximum Sag Comparison ...........0..-+e-eeeee IV-2.16 Table IV-2.10 Pole Length With and Without Dampening .IV-2.17 Table IV-2.11 Single Wood &Steel Pole Structures Comparison...TV-2.19 Table IV-2.12 H-Frame Wood &Steel Structure Comparison....IV-2.21 Table IV-2.13 Number of Structures/Pile Foundations..............IV-2.24 Sketches:Typical Single Pole Structure Type A Typical Single Pole Structure Type B Typical H-Frame Tangent Structure Typical X-Frame Tangent Structure Right-of-Way Cross-Section SECTION IV-3 -SUBSTATION FEASIBILITY DESIGN..............IV-3.1 A.BACKGROUND.....2...cece ee cece ee ce nee eee e eres IV-3.1 B.BETHEL POWER PLANT SUBSTATION...........-.0:eee eeeeees IV-3.2 1.Land-Based Power Plant.......0.20...2.cece ccc cee ee eee eee IV-3.22.Barge-Mounted Power Plan..........0...cee ec cee eee eensIV-3.2C.DONLIN CREEK MINE SUBSTATION ..........0.cece eee eee eensIV-3.3 D.VILLAGE SUBSTATIONS .......00...cee eee cette een neces IV-3.3 E.INTERFACE WITH EXISTING VILLAGES DISTRIBUTION SYSTEMS.......0...cece cece ee cece eee neces IV-3.4 F.BETHEL UTILITIES EXISTING DIESEL PLANT SUBSTATION .....IV-3.5 Figure IV-3.1 System Oneline Diagram Coal-Fired Generation Alternative Figure IV-3.2 System Oneline Diagram Combined-Cycle Generation Alternative Vili Figure IV-3.3 Substation Conceptual Layout Land-Based Generation Plant Alternative Figure IV-3.4 Substation Conceptual Layout Barge-Mounted Generation Plant Alternative Figure IV-3.5 Substation Conceptual Layout Donlin Creek Mine Figure IV-3.6 Village Stepdown Substation Conceptual LayoutFigureIV-3.7 Aniak Stepdown Substation Conceptual Layout SECTION V -PRELIMINARY ENVIRONMENTAL PLANNING......V-1.1 SECTION V-1 -TRANSMISSION LINE ENVIRONMENTAL PLANNING.....2...cece cee cee eee eee e eee ennes V-1.1 A.INTRODUCTION ...........00.e eee cece ee cece ee nnn ence V-1.1 B.TRANSMISSION LINE ENVIRONMENTAL REQUIREMENTS ASSESSMENT.2.0...2c cee cee ce cece cree eee eee e cent eee eenees V-1.1 1,Land Use Impacts.....0...cece ce cece cee tence tent eees V-1.2 2.Wetlands...0.0...ccc ccc cee ce tee eee eee tee eeeeeeee V-1.4 3.Navigable Rivers.......00...ccc cece ce cece cece tenet eeeeees V-1.4 4.Floodplain Management.............cece cece eee ee eee eeeeee V-1.4 5.Threatened and Endangered Species................20005 tenes V-1.5 6.Essential Fish Habitat..........0.ccc cee cee cee eee eee V-1.57.Amnadromous Fish Streams...........00.0 eee cece eee eee ee eens V-1.5 8.State Lands/State Parks...2...ccc ec cece cee eee eee e ee eees V-1.6 9.Coastal Zone Management..........2...eee ee eee ee eee es V-1.6 10.Historic,Architectural,Archaeological,and Cultural Resources V-1.6 11.Construction Impacts.........0...cc eect cece ee eee eeeeeee V-1.6 12.Cumulative and Secondary Impacts ...........0..cee cece erence V-1.7 13.Federal Process......0.cee cece eee eee eee cece eee enee V-1.8 14.Anticipated Permits...20...0...cece cece eee eee reece cence V-1.9 Table V-1.1 Landownership Rights.................2¢Meee eee V-1.4 Table V-1.2 Potential Permits and Approvals.................04-V-1.9 SECTION V-2 --POWER PLANT ENVIRONMENTAL PLANNING....V-2.1 A.BETHEL POWER PLANT ENVIRONMENTAL REQUIREMENTS ASSESSMENT.......0.0 cece eee cence eee eet e eee e eee ene V-2.1 1.NEPA Compliance 2.2...0...ee ee eee eee eees V-2.12.Scope of NEPA Compliance Review ..........0...cee eee eee eee V-2.2 3.Agency Comments.........0.cece eee ee eee e eee eee eens V-2.3 a.State of Alaska...0...cece eee eee e eee V-2.4 b.federal Agencies...0...cece cee eee eee V-2.5 c.Others.................eeeeeeneneeeeteeeeenes V-2.6 B.ENVIRONMENTAL ISSUES &MAJOR PERMITTING REQUIREMENTS.......cece eee eee ee center eee eens V-2.7 1.Alaska Coastal Zone Management..........0.cece eee eee eee V-2.7 ix 2.Air Quality...0...ce eee eect eee teenies V-2.7 3.Water Quality...2.0...eee cece eee cence eee e eens V-2.8 4.Wetlands and Navigable Waters........0...c cc ceec cece cece eeee V-2.9 5.Fish Habitat.......0...2.ee eee eee eee ene nenes V-2.10 6.Floodplain Development......02...00.c cece cee cece eee V-2.11 T.FAA wo ieee eee cece eee ee eens "Lecce eensoe eees V-2.11 8.Permits...0...ec cee cette ee ee ee eee eee ee eeees V-2.11 Table V-2.1 Potential Permits and Approvals for Bethel Power Plant...V-2.12 SECTION VI-PROJECT COST ESTIMATES................000005 VI-1.1 1.INTRODUCTION &BACKGROUND..............cece ee eee neee VI-1.1 A.INTRODUCTION........0.0...cc cece cee cee teen eee eee ence VI-1.1 B.COAL-FIRED GENERATION PLANT LOCATED AT BETHEL ......VI-1.1 1.Land-Based Power Plant..........0...c cece cece cece eee eenes VI-1.2 2.Barge-Mounted Power Plant...0.2.0....cece eee e cece eee e ence VI-1.2 3.Capital Cost Implications of the Application of Usibelli Coal .......VI-1.3 4.Possible Savings from Utilization of Healy Clean Coal Power Plant Equipment..0.0.0...cece ccc cece ce eee eee cece eee eee eens VI-1.4 5.Coal-Fired Plant O&M Estimates,Less Fuel Costs ..............0-VI-1.5 C.COMBINED-CYCLE COMBUSTION TURBINE PLANT ............VI-1.7 1.Bethel Power Plant..........0...ccc cee ce cece en eee e ee nees VI-1.7 2.Bethel Land-Based Power Plant..............0c ccc ce cececeeees VI-1.8 3.Bethel Barge-Mounted Power Plant...............00 eceeeeeceee VI-1.10 4.Crooked Creek Power Plant -Land-Based Option Only.............VI-1.95.Combustion Turbine Plant O&M Estimates,Less Fuel Costs........VI-1.9 D.DISTRICT HEATING SYSTEM...........0...eee cece e eee e eens VI-1.11 E.FOUNDATION AND FUEL STORAGE COSTS..............00000-VI-1.11 1.Coal-Fired Plant......0...cece cece cee tence eee eenes VI-1.11 2.Combustion Turbine Plant.....0...0...cece cece eee e eee eens VI-1.12 F.TRANSMISSION LINE COSTS........0.002.ce cece een eee ee eeee VI-1.13 1.Construction Costs........0.0.c cee cece cee ce eee eect ee neenes VI-1.13 2.Transmission Line O&M Costs ...........cee cece ce eee eee eeneee VI-1.15 3.Transmission Line Costs for Other Alaska Projects ................VI-1.16 G.SUBSTATION COSTS..........ccc cece een eee eee nee eeeenes VI-1.17 1.138kV Bethel to Donlin Creek Mine Transmission Line Substation Costs..............cece eee eeee eee ee eens VI-1.17 2.Nenana to Donlin Creek Mine Transmission Line Substation Costs...VI-1.18 Table VI-1.1 Bethel-Donlin Creek 138 KV Transmission Line - Alternatives Pre-Design Construction Cost Estimate...VI-1.14 Table VI-1.2 |Nenana-Donlin Creek Transmission Line Alternatives Pre-Design Construction Cost Estimate .............VI-1.15 Table VI-1.3.Cost Comparison of Tranmission Lines iin CentralFUE)<n VI-1.17 Table VI-1.4 Bethel-Donlin Creek Mine Substation Costs.........VI-1.18 Table VI-1.5 |Nenana-Donlin Creek Mine Substation Costs........VI-1.18 SECTION VII -PROJECT MANAGMENT &SCHEDULING VII-1.1 1.PROJECT OPTIONS AND ASSUMPTIONS.............0022 eeeee Vi-1.1 A.INTRODUCTION.....0...cece cece cee en eee eee eens VI-1.1 B.PROJECT MANAGEMENT OPTIONS............02-2 c eee eeeaes VII-1.11.Nuvista Acts as Project Manager.........0...ce ccc eee eens VU-1.1 2.Nuvista Contracts with Project Management Firm.................VI-1.2 3.Nuvista acts as Project Manager +Turnkey (Design/Build)..........VII-1.2 C.SCHEDULE ASSUMPTIONS..........0...ee eee eee ee ee eee eae VII-1.2 1.Project Financing.............ccc ccc ce cece ee ene eenees VII-1.2 2.Environmental Impact Statement/Permitting..................05.VII-1.2 3.Right-of-way Easement and Power Plant Site Acquisition..........VI-1.3 4,Preliminary Design........0.0...cece cee eect eee ene eaes VU-1.3 5.Final Design......2.0....ccc cece ec eect cence ence ee eenees Vi-1.36.Major Equipment Lead Times...........0...cece cece ee eee eens Vo-1.4 D.PROJECT SCHEDULE SUMMARY.........-....eee ee cece eensVII-1.4 Figure VII-1.1 Donlin Creek Abbreviated Project Schedule Figure VII-1.2 Donlin Creek Transmission Line Project Schedule Figure VII-1.3 Bethel Barge Based Coal Plant Schedule Figure VII-1.4 Bethel Land Based Schedule Figure VII-1.5 Bethel CT Modular Power Plant Schedule SECTION VII -PROJECT FINANCING..................000000eeVOl-1.1 1.FINANCING ALTERNATIVES...........0...c cee cee ec ence eeeVIll-1.1 A.INTRODUCTION.....0...cece cece ee eee eee ete e ee eaee VIn-1.1 B.CONGRESSIONAL APPROPRIATIONS...........0.002 eee e eens VIU-1.1C.RURAL UTILITY SERVICE............eee cee cee eensVI-1.1 1.Rural Electrification Loans........0.0...cece eee eee ences VII-1.2 a.Hardship Loans..........cc eee ee cee cette eee eens VII-1.2 b.Municipal Rate Loans.........0...cece eee eee eee ees VII-1.2 c.Treasury Rate Loans........cece ccc eee eee eee teens VUI-1.3 d.Guaranteed Loans........0...cece cee eee eee eens VII-1.3 2.Direct Learning and Telemedicine Program................-000-VIUI-1.3 D.AIDEA 2...ee ccc cc ce ce cee reece rete eee eeeneee VIU-1.5 E.ALASKA RAILROAD BONDS........0.0...cece cece eee e eee VII-1.6 F.STATE OF ALASKA GENERAL OBLIGATION BONDS............VIII-1.6 G.LEGISLATIVE APPROPRIATIONS ........0.2.0.2 cee ee eee eee VII-1.7H.PCE FUNDING.......occ ccc cc cee cee ee ene e een e ene VII-1.7 xi SECTION IX -ECONOMIC ANALYSIS OF POWER SUPPLY ALTERNATIVES...............02.c eee eee IX-1.1 1.ECONOMIC ANALYSIS.2...0.ccc cee cen eee ee nee IX-1.1 A.OVERVIEW .......2c.cc cece cee en eee e nee teen een ee nees IX-1.1 B.POWER REQUIREMENTS OF DONLIN MINE,BETHEL&8 VILLAGES...2.0 cece ce cece cece ee eee eee e eee ees veces IX-1.1 C.PRINCIPAL ASSUMPTIONS.............cece cece eee eee teenies IX-1.2 1.General Assumptions........0.0...cece eee ee cee eee enees IX-1.2 2.Capital Costs...0.0...cece cee cee eee eee eee e eee eens IX-1.4 3.Annual O&M Costs....0.0...cc cee cece cee eee eee tee ee eees IX-1.5D.COMPARISON OF ECONOMIC RESULTS ............20 eee eee eee IX-1.6 1.Capital Costs...0.2...cece ccc cee eee eee rece eee e nes IX-1.7 2.Coal Supply Sensitivity Analysis.............002s cece e eee eee IX-1.7 3.Wholesale Power Costs........0...eee cece cee e ee eee eee eaes IX-1.8 4.20-Year Accumulated Donlin Creek Mine Power Costs..........IX-1.10 5.50-Year Accumulated Regional Power Costs...............--.-0.-IX-1.12 6.Fuel Price Sensitivity Analysis.............00-2.eee ee eee ence IX-1.147.Mine Demand Sensitivity Analysis..........0.00.cece cece eens IX-1.158.Coal-fired Plant Generation Efficiency ..............0c eee e eee eeeTX-1.15 9.Waste Heat Recovery...2...cc ccc cece cee e eee eee eens IX-1.16 E.CONCLUSION....20.0...cece ce cece ee eee eee een nes IX-1.16 Table IX-1.1 Projected kWh Requirements.....................-IX-1.2 Table IX-1.2 Projected KW Demand..............0.eee e eee eeeIX-1.2TableIX-1.3 Capital Costs...0.0...cece eee eee eee IX-1.7TableIX-1.4 $/kWh Selected Coals ........00...cee eee ee eee IX-1.8Table[IX-1.5 |Wholesale Power Costs Years 1-20................IX-1.9 Table IX-1.6 Donlin Creek Mine Accumulated Power Costs 1-20 ...IX-1.11 Table IX-1.7 Savings Associated with Coal-Fired Generation 1-20 ..IX-1.10 Table IX-1.8 |Accumulated Regional Power Costs Years 1-50.......IX-1.13 Table IX -1.9 50 Year Regional Savings Associated with Coal Fired Generation................Seceeeeeees ween IX-1.14 Table IX-1.10 Fuel Costs Sensitivity Analysis..................6.IX-1.14 Table IX-1.11 Mine Demand Sensitivity .............0.00.e eee IX-1.15TableIX-1.12 Generation Efficiency ............-.sees eee eee IX-1.16 Figure IX -1.1 Power Cost Comparison -Years 1-20 Figure IX -1.2 50 Year Regional Power Costs Figure IX -1.3.Power Cost Breakdown GLOSSARY OF TERMS Xii VOLUME 2 Appendix A -Coal Plant Feasibility Design and Report Prepared by PES VOLUME 3 Appendix B -Modular Plant Feasibility Design and Report Prepared by PES VOLUME 4 Appendix C -138 kV Transmission Line Feasibility Design Information Appendix D -Electric System Studies Prepared by EPS Appendix E +Foundation and Fuel Storage Feasibility Design Reports Prepared by LCMF VOLUME 5 Appendix F -Preliminary Environmental Assessment Review Appendix G -Economic Analysis Appendix H -Miscellaneous Information AppendixI-Public Comments xiii Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 SECTION I EXECUTIVE SUMMARY 1.CONCLUSION &RECOMMENDATIONS Of the numerous power supply alternatives investigated to provide power to the Donlin Creek mine and the Calista region,the power supply alternative that produces the lowest wholesale power cost is the construction of coal-fired generation plant at Bethel plus construction of a 191 mile long,138-kV transmission line between Bethel and the Donlin Creek mine.This power supply alternative would provide power to the Donlin Creek mine,Bethel and 8 villages located between Bethel,and the mine.It is,therefore, recommended that Nuvista proceed with the initial environmental studies,data acquisition,permitting and design processes for this power supply alternative. Assuming the coal-plant and the transmission line are financed using $150 million in grant funds with the balance of the $370 million project financed at 5%,wholesale power cost would be in the range of 8.1 cents per kWh using Luscar Coal Valley coal from British Columbia.It may be possible to decrease the wholesale power cost by as much as one cent per kWh by slightly reducing generation capacity,improving plant efficiency,selling waste heat from the plant and lowering design loadings on the transmission line.The decisions concerning these factors and their effect on power costs and reliability are,however,best reserved for the final design phase and it would be premature to assume power could be produced for less than 8.1 cent per kWh at this stage of study. Coal is by far the cheapest source of fuel per million BTU delivered to Bethel, averaging less that 1/3 the cost of petroleum based products.Today 23 of the 25 lowest operating cost electric generation plants America are fueled by coal.Coal generates more than 50 percent of America's electricity and 40%worldwide. Eight coals,including Usibelli coal from Alaska,were evaluated as part of this study.Canadian coals from either the Fording Black Bear mine or the Luscar Coal Valley mine produce the lowest cost power.Because of the high moisture content and the relatively low Btu value of Usibelli coal,a power plant requiring approximately 300,000 tons of Canadian coal per year will require approximately 500,000 tons of Usibelli coal to produce the same amount of power.The larger volume of coal would require physically larger and more costly coal storage facilities,boilers,ducts,emission control equipment and higher expenses for moving coal,air and combustion gases,all of which increase capital costs by approximately $35,000,000.In addition,the increased volume of Usibelli coal that must be handled will increase O&M by approximately $500,000 per year and lightering cost between Security Cove or Goodnews Bay and Bethel by approximately $1,100,000 per year.These additional costs combine to increase power costs when using Usibelli coal. EXECUTIVE SUMMARY Section J-1.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Importing power from the rail-belt via a transmission line between Nenana and Crooked Creek results in the highest wholesale power cost.A combined-cycle combustion turbine plant,whether constructed at Crooked Creek or Bethel,providespoweratessentiallythesamecost. There are numerous reasons why Bethel is the location of choice for constructing a coal-fired power plant to supply the energy needs of the mine and the Calista region. Bethelis a thriving community with a population of approximately 5900 people.Itiis theninthlargestcommunityinAlaskaandthelargestcommunityinwesternAlaska.'It has a substantial infrastructure including an all-weather airport and port facilities.Bethel has all the amenities of a large community,but on a smaller scale.Bethel is the transshipment point for all cargo and fuel moving up the Kuskokwim River.Ten thousand ton oceangoingbargescanreadilybetoweduptheKuskokwimtoBethel,where the cargo is off-loaded on to smaller river barges for transportation further up-river. The waste heat captured from a power plant located at Bethel could be distributed throughout the community via a district heating system to lower the cost of space heating in:the community.The waste heat would displace fuel oil presently used for space heating.Utilization of waste heat for space heating has the potential to lower the total costs paid by consumers for heating their homes and business in excess of one-million dollars annually.The revenues generated by the sales of waste heat would be used to offset power costs,which would in turn lower the cost of power to all consumers. 2.INTRODUCTION A.BACKGROUND One of the largest undeveloped gold deposits in the world is located in the Calista region of southwestern Alaska.The proposed Donlin Creek mine project is located'approximately 280 miles west of Anchorage and 14 miles north of Crooked Creek on Calista Corporation lands.The village of Crooked Creek is located on the Kuskokwim River,approximately 180 river miles upstream of Bethel.A Calista Region/location map is attached at the end of this section as Figure I-1.1. The Placer Dome,Inc and Nova Gold,Inc.joint venture is presently evaluating the feasibility of developing a mine.to extract the gold resources.Resource estimates include,Measured and Indicated Resources of 11.1 million ounces of gold grading an average of 3.0 g/t (grams/tonne)gold.The Inferred Resource is estimated at 14.3 million ounces of gold grading 3.1 g/t. 'http://eire.census.gov/popest/data/cities/tables/SUB-EST2002-10-02.pdf EXECUTIVE SUMMARY Section I-1.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 To date,the joint venture has spent in excess of US$50 million on the project and Placer Dome will be spending an additional US$30+million to complete a Feasibility Study and make a decision,prior to November 2007,whether to construct a mine. It is anticipated that the Donlin Creek mine project will have a maximum load demand of approximately 70+megawatts with an average load demand in the range of 60 megawatts.There are no existing power supply facilities in the region that can provide this power demand and new power supply facilities must be constructed.These new facilities must provide the mine with low cost power for the Donlin Creek mine project to be economically feasible to develop. Nuvista Light &Power,Inc.(Nuvista),using grant funds provided by the Alaska Legislature,commissioned an energy-needs study,which was completed in July 2002. The study identifies a comprehensive energy strategy that will provide low cost power totheDonlinCreekmineprojectandtothe40+villages in the Calista region.”Nuvista is a non-profit organization formed by Calista Corporation to function as a regional Generation and Transmission Utility.Nuvista would wholesale power directly to the Donlin Creek mine,and to existing utilities for resale to their customers. The Energy-Needs Study forecasted the power and energy requirements of the Calista region both with and without the development of the Donlin Creek mine project. The forecasted power demand with development of the Donlin Creek mine project,in the year 2020,is 96 MW as compared to 30 MW projected load without the mine development.Energy requirements are forecast at approximately 700,000 MWHs with the mine as compared to 150,000 MWHs without the Donlin Creek mine development. Development of the Donlin Creek mine project will triple the power demand in the region and energy requirements will increase by almost five fold when compared with power and energy requirements without the mine development. Two general categories of alternatives were investigated to satisfy the electric power and energy requirements of the proposed Donlin Creek Mine project and the Calista region.These categories include: °Constructinga Power Supply in the Calista Region °Importing Power from the Rail-belt Region Of the numerous power supply alternatives evaluated in the Energy Needs Study, the identified preferred alternative for supplying the power needs of the Donlin Creek mine project and the Calista region was:Construction of a Coal-Fired Plant at Bethel +191 mile long 138-kV transmission line to the mine site.The study recommended that Nuvista proceed immediately with the planning,development and implementation of the preferred alternative,commencing with the commissioning of a feasibility study.Based on this recommendation Nuvista obtained additional grant funding,from the Alaska legislature,to proceed with this Feasibility Study. ?Calista Region Energy Needs Study,Part I and II,July 1,2002. EXECUTIVE SUMMARY Section I-1.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 B.PURPOSE OF STUDY A primary goal of this Feasibility Study is to explore the feasibility of constructing a power plant in Bethel,Alaska and a 138-kV transmission line from Bethel to the proposed Donlin Creek gold mine project site.The transmission line will be located along the northern bank of the Kuskokwim River.The proposed transmission line routing is shown in Figure I-1.2,located at the end of this section.Power will be supplied from a power plant at Bethel,to serve Bethel,Akiachak,Akiak,Tuluksak,Lower/Upper Kalskag,Aniak,Chuathbaluk,Crooked Creek and the proposed Donlin Creek gold mine. This study defines the basic design criteria and estimated costs associated with the construction of the preferred power supply alternative,which has been identified as the construction of 100+MW coal-fired plant at Bethel and a 191 mile long,138-kV transmission line (the Donlin Creek Transmission Line)from Bethel to the Donlin Creek mine.As an alternative to the coal-fired plant at Bethel the study will also identify the basic design and cost associated with the construction of a combined-cycle combustion turbine plant at Bethel or Crooked Creek.The study will compare and assess the capital costs and power costs associated with these three alternatives with each other and with other selected power supply alternatives. C.STUDY METHODOLOGY The feasibility study involved the efforts of several engineering firms and environmental specialists.Bettine,LLC served as project manager and developed the Donlin Creek transmission line route alignment,preliminary transmission line and substation designs,evaluated power supply alternatives,conducted the economic analysis,and prepared the draft and final report.Precision Energy Systems,Inc.(PES) developed the designs,construction and operational cost estimates and construction schedules for the Bethel coal-fired plant and combined-cycle combustion turbine power supply alternatives.Dryden and LaRue,Inc.(D&L)prepared cost estimates for the 138- kV Donlin Creek transmission line.In addition D&L prepared cost estimates for a + 100-kV DC and a 230-kV AC transmission line built from Nenana to the Donlin Creek mine.The engineering firm of LCMF prepared preliminary designs and costs estimates for power plant foundations and fuel storage facilities.Electric Power Systems,Inc.(EIS) conducted electrical systems studies.Travis/Peterson,Inc.and Steigers Corporation provided separate environmental reports addressing basic environmental factors and permitting requirements for the transmission line and power plant,respectively. This study assumes the Donlin Creek gold mine will begin full scale mining operations in mid-year 2010,with a peak demand of 70+MWs and an average demand of 60 MWs.Placer Dome,Inc.has,however,indicated that it may want power at the mine prior to 2010.Realistically it will be difficult to construct a coal-fired power plant at Bethel and a 191 mile transmission line to provide 70+MWs of power to the mine site prior to 2010. EXECUTIVE SUMMARY Section J-1.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Several practical criteria were established to provide a guide for selecting a transmission line route between Bethel and the Donlin Creek mine site.However,the overriding directive followed for locating the transmission line was to avoid crossing lands administered by the U.S.Fish and Wildlife Service,(i.e.lands within the Yukon- Delta Wildlife Refuge)by placing the power line within the corridor of private lands owned by the various native corporations. This study did not prepare an independent power requirements forecast but will instead rely on the forecast prepared in the Calista Region Energy Needs Study,Part I, dated July 1,2002. 3.DESCRIPTION OF POWER SUPPLY ALTERNATIVES The primary purpose of this study is to examine the technical and economic feasibility of constructing either a coal-fired power plant or a combined-cycle combustion turbine plant at Bethel along with a 138-kV transmission line from Bethel to the Donlin Creek mine.The generation/transmission system would provide power to the Donlin Creek mine,Bethel,and eight villages located along the transmission line route. The report also briefly discusses several other power supply alternatives that have been previously evaluated and determined to produce more expensive power than the Bethel coal-fired generation alternative.These alternatives include: *Combined-Cycle Power Plant at Crooked Creek ¢Oil Fired ¢Natural gas-fired from a pipeline built from Cook Inlet to Crooked Creek or using gas produced in the Holitna Basin «+100-kV,DC transmission line built between mine site and Nenana *230-kV,AC transmission line built between mine site and Nenana A.COAL-FIRED PLANT AT BETHEL The power plant would utilize Pulverized Coal (PC)combustion technology.PC is a proven technology that has been used in the USA for the last 40 years and is characterized by high combustion efficiency and low-cost emission controls.Coal pulverized in specially designed crusher/grinders is blown into the boilers combustion chamber and the coal behaves like a gaseous fuel. Both land-based and a barge-mounted power plant alternative have beeninvestigated.The coal-fired power plant would consist of two atmospheric pulverized coal-fired boilers each powering a 48.5 MW steam turbine,plus one 46 MW diesel-fired simple-cycle combustion turbine,for a total installed capacity of 143 MW.To improve EXECUTIVE SUMMARY Section I-1.5 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 reliability,the coal-fired portion of the plant will consist of two separate process lines, each including one boiler and steam turbine-generator set and ancillary equipment.Each process line and steam turbine-generator set can,however,be operated at a maximum output of 55 MW for moderate periods.Under normal operating conditions the steam turbines will provide the required output.If one steam turbine is off-line,the remaining steam turbine will be operated at its maximum output of 55 MW and the simple-cycle turbine will be placed on-line to supply the additional output.The power plant would initially generate approximately 700,000 MWh annually.The two coal-fired steam turbines would provide primary power,with the combustion turbine providing standby/backup and peaking generation.It is estimated that the combustion turbine will generate approximately 3 percent of the annual generation. The barge-mounted power plant alternative would occupy two barges.The dimensions of each barge would be approximately 110 feet wide by 440 feet long,with a draft of about eight feet.The barges would be equipped with the intended systems,at a shipyard on the West Coast USA or Canada and shipped on dry dock vessels to the vicinity of Security Cove or Goodnews Bay,Alaska,from where the barges will be offloaded and towed to Bethel. The barges would be set in place by digging a channel into the river bank of sufficient width,length,and depth to float the barges into position.Once the barges are towed and pushed into place,an armored berm would be built between the barge channel and the river to protect the barges from ice flow during spring breakup and to provide an earthen platform for unloading supplies.The barges would be located in the river floodplain at a location where there is little elevation difference between the bank and the river. Currently,barge mounted power plants include combustion turbines or diesel engines as motive power,working in simple or combined cycle.They are predominant in areas with developing power grids and areas without access to sources of low-cost and clean fuels such as natural gas and coal.Barge-mounting of a coal-fired power plant has not yet been done,however,there are many possible examples including steam ships and barge-mounted Kraft pulp plants with recovery boilers. The U.S.Department of Energy,National Energy Technology Laboratory (NETL)has proposed a similar barge mounted coal-fired power plant concept using a Pressurized Fluidized Bed Combustor (PFBC)Design.The PFBC design was investigated by the feasibility team and it was determined the design represents new and unproven technology.No PFBC plant has ever been built and operated.Due to the substantial unknowns and uncertainties associated with the technical performance of such a plant and the cost of constructing,operating and maintaining a PFBC power plant,it is recommended that PFBC plant design not be used in this project. In the event Placer Dome reduces mine power demand,a reduced generation alternative was investigated.Under this alternative,a plant with only 80 +MW of coal- EXECUTIVE SUMMARY Section I-1.6 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 fired capacity would be built.The plant would consist of two atmospheric pulverized coal-fired boilers each powering a 40 MW steam turbine,a 25 MW diesel-fired simple- cycle combustion turbine,plus this option would rely on the existing Bethel diesel plant for 10 MW of diesel generation,for a total installed capacity of 115 MW.In all other respects it would be identical to the coal-fired plant described above.The capital cost of this reduced capacity plant would be approximately $18 million dollars less than the 100 +MW land-based plant and $13 million less than a 100 +MW barge mounted plant. 1.Site Location The preferred location for the Bethel Power Plant is a site approximately one mile south of Bethel in Section 20 of Township 8 North,Range 71West of the Seward Meridian.See Figure I-1.3 at the end of this section.The proposed site,of the plant and dock facilities,is located on private lands.Elevation of the site varies between 50 and 100 feet mean sea level.The proposed land-based power plant site will be located approximately 500-1000 feet west of the Kuskokwim River.The dock will be used to offload equipment and materials during and after plant construction and to offload annual coal shipments.The dock will be connected with the site by a road and with the coal storage building by a covered conveyor system.A road will also be constructed from the site to the existing fuel dock area where it will interconnect with Bethel's road system. The coal plant facilities will require an area of approximately 80 acres.The barge mounted alternative would be located slightly further south.The two barges would be located in the floodplain,while coal storage and other facilities would be located on higher ground. 2.Coal Selection Eight coals from various mines and seams were evaluated.The evaluated coals include: Fording Coal Type A,thermal,Black Bear Mine Fording Coal Type B,thermal,Coal Mountain Mine Luscar Obed Mountain Mine Luscar Coal Valley Mine Usibelli Coal Mines Quinsam Coal Kennecott Energy,Spring Creek Mine Kennecott Energy,Colowyo Minemomoaoop Quinsam,Fording and Luscar are Western Canadian coal mines located in British Columbia.The Kennecott Energy Coal Mines are located on the Wyoming/Colorado border.Usibelli coal is mined at Healy,Alaska.Fording Coal from the Black Bear seamwasselectedasthebaselinecoalforthisstudy.All other coals are compared against the Black Bear coal. EXECUTIVE SUMMARY Section I-1.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Of the coals examined,Black Bear coal has the lowest potential risk for spontaneous combustion,while Usibelli coal is at higher risk.According to Westshore Terminals,Black Bear coal can be stored without compacting or other major fire prevention means for periods exceeding one year.Based on budgetary costs provided by coal producers,it is estimated that Black Bear coal can be delivered to Goodnews Bay or Security Cove for $55.00 per ton or approximately $2.25 per million Btu.Luscar Coal Valley coal for 43.25 per ton or $1.99 per million Btu.Usibelli coal at $28.70 per ton or $2.00 per million Btu.These prices were effect as of January 2004. TABLE I-1.1 60 MW Average Mine Demand Power Costs $/kWh -Selected Coals '97 MW Barge-Mounted Coal Plant Fording @ $55.00/ton _Luscar @ $43.25/ton _Usibelli @ $28.70/ton 5%$0.103 $0.102 $0.111 - $100 M Grants,Bal.5%$0.090 $0.088 $0.097 $150 M Grants,Bal.5%$0.083 $0.081 $0.090 $200 M Grants,Bal.5%$0.076 $0.074 $0.083 $250 M Grants,Bal.5%$0.069 $0.067 $0.076 Coal Cost per U.S.ton delivered to Security Cove or Goodnews Bay Prices as of January 2004 Although Usibelli coal is essentially the same cost per million Btu as Luscar coal delivered to Security Cove or Goodnews Bay,a review of Table I-1.1 reveals that Usibelli coal produces the highest power costs of the three coals averaging nine-tenths of a cent greater than Luscar coal and seven-tenths of a cent greater than Fording coal. The heating value of Usibelli coal,as mined,is 7,128 Btu/lb vs.12,284 Btuw/lb of Fording coal and 10,843 Btu/Ib for Luscar Coal Valley coal.In addition,the high moisture content of Usibelli coal reduces boiler efficiency.A power plant requiring approximately 300,000 tons of Fording coal will require approximately 500,000 tons of Usibelli coal to produce the same amount of power.This larger volume of Usibelli coal would require physically larger and more costly coal storage facilities,boilers,ducts, emission control equipment and higher expenses on moving coal,air and combustion gases,all of which increase capital costs by approximately $35,000,000.In addition,the increased volume of Usibelli coal that must be handled will increase O&M and by approximately $500,000 per year and lightering cost between Security Cove or Goodnews Bay and Bethel by approximately $1,100,000 per year.These factors combine to increase power costs when using Usibelli coal. 3.Coal Demand and Storage Requirement Coal demand of the Bethel Power Plant,based on using Fording Coal Type A,is estimated in excess of 300,000 tons per year at 80%of plant demand,and 375,000 tons when operating a full plant capacity of 97 MW.Since the navigation season on the EXECUTIVE SUMMARY Section I-1.8 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Kukokwim River is approximately three months,storage capacity must provide space for storing nine months worth of coal usage or approximately 300,000 tons. To minimize coal-dust pollution and keep the coal pile free of rain and snow,the coal will be stored in an enclosed,air-supported or modular steel structure approximately 1400 ft.x 300 ft.x 30 ft.in height.With uncovered outdoor storage,the winds will pick up coal dust and deposit it on adjacent lands.The estimated amount of dust that could be blown away from an uncovered coal pile is up to 5%,especially during stacking and reclaiming operations.This represents a loss of 15,000 tons or an estimated $800,000 annually.The cost of a covered structure,estimated at $7.5 million,will pay for itself,in coal savings,in approximately nine years. 4.Coal Transportation Coal will be transported by 35,000 DWT bulk freighters.to Security Cove or Goodnews Bay.The freighters will be equipped with continuous unloading capabilities. Goodnews Bay is located approximately 135 miles south of Bethel on the western coast of Alaska.Security Cove is approximately 25 miles further south than Goodnews Bay.At either of these transload points the coal will be off-loaded from the freighters into barges and lightered into Bethel.Security Cove and/or Goodnews Bay were chosen as possible transloading point because waters of the Kuskokwim Bay and the mouth of the Kuskokwim River are too shallow for deep water freighters to enter.Either of these two bays should provide reasonable protection from rough seas. To minimize coal lightering cost it is recommended that Nuvista lighter the coal from Security Cove or Goodnews Bay to Bethel.To accomplish this,Nuvista would purchase 3 (three)pre-owned barges with 10,000 to 12,000 DWT capacity,maximum draft 12.5 feet,and one pre-owned tug boat with a 3000 to 4000 hp engine.The Nuvista transport option results in significant savings as compared to contracting with an independent barging firm to lighter the coal. A continuous barge unloader will be used to unload coal from barges arriving at Bethel.The unloader would be mounted on a catamaran.It will be capable of off-loading 2000 ton per hour.The catamaran and unloader combination will be towed into position by a tug each spring and secured to the dock.Each fall it will be towed to a slough for winter storage. B.COMBINED-CYCLE COMBUSTION TURBINE PLANT The study evaluates two sites for a modular combined-cycle combustion turbine power plant,Bethel and Crooked Creek.The Modular Power Plant (MPP)at Bethel or Crooked Creek will consist of a combined-cycle combustion turbine plant,equipped with three simple-cycle combustion turbines plus a heat recovery boiler and steam turbine generator.The use of low-speed diesel generation was examined as part of the study,but this alternative was rejected in favor of combustion turbines.The Power Plant will use a EXECUTIVE SUMMARY Section I-1.9° Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 modular design,to the extent practicable,to reduce on-site construction costs,minimize construction time and facilitate handling and transporting of major equipment. The power plant would burn #2 diesel fuel or possibly propane.Installed generation capacity at Bethel would be 150+2 MW depending whether Alstrom or GE turbines are selected.At Crooked Creek the plant capacity is 110 MW.The Bethel plant would generate approximately 650,000 Mwh annually,the Crooked Creek plant 550,000 MWh annually.The Bethel plant would consume approximately 32 million gallons of diesel fuel or 50 million gallons of propane annually.The Crooked Creek plant would consume 31 million gallons of diesel fuel.Propane was not considered for use at the Crooked Creek plant.The large amount of fuel needed to fire the combustion turbine plant would be delivered by barge to the facility dock and pumped to the above-ground diesel storage tanks via an above-ground pipeline.Annual fuel storage requirements at Bethel are 25 million gallons of diesel fuel or 38 million gallons of propane.Annual fuel storage requirements at Bethel and Crooked Creek are essentially the same.Fuel oil would be stored in eight,3.1 million gallon tanks.Propane will be stored in three,13 million gallon tanks. The use of a barge-mounted plant was investigated as a means of reducing the high cost associated with constructing a land-based power plant.Barge mounted combustion turbine power plants are common.A barge-mounted power plant is suitable for Bethel,but not Crooked Creek.Barge mounting the power-plant is estimated to reduce Bethel plant construction cost by approximately $11 million.The barge-mounted power plant alternative would occupy one barge 100 feet wide by 350 feet long.As with the land-based turbine plant,the total installed capacity for the barge-mounted alternativewouldbe150MW. The barge would be equipped with the intended systems at a shipyard on the West Coast USA or Canada and shipped on dry dock vessels to the vicinity of Security Cove or Goodnews Bay,Alaska,from where the barge will be offloaded and towed to Bethel. Fuel storage would be located on the adjacent river bank directly above the barge, and these would be connected to the generating facilities by a short pipeline.Other auxiliary features of the barge-mounted power plant alternative,including the blowdown pond and the electrical switchyard,would also be located in this area,which would occupy approximately 80 acres.The barge would occupy less than 1 acre. As with the barge mounted coal plant,the barge would be set in place by digging a channel into the river bank of sufficient width,length,and depth to float the barge into position.Once the barge is towed and pushed into place,an armored berm would be built between the barge channel and the river to protect the barge from ice flows during spring breakup and to provide an earthen platform for unloading supplies.The barge would be locatedin the floodplain of the river at a location where thereis little elevation differenceinthebankandtheriver. EXECUTIVE SUMMARY Section I-1.10 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 - 1.Site Location The preferred Bethel location for modular power plant is the same as for the coal- fired plant.See Figure I-1.3.An alternative location for the plantis Crooked Creek,AK,about 180 miles up river from Bethel. 2.Fuel Alternatives The following table summarizes the evaluation of various applicable fuels for the MPP.All of the listed fuels can be used for firing the combustion turbines. Table I-1.2 Fuel cost per MM Btu gross Btu/lb $/pal $/MM Btu |$/gal incl $/MM Btu $/gal incl.$1 palsAllBtu/bb or gallon values are Btu/gal Ib /gal at re Fa excl,shipping to in Bethel shipping to chin sin .NET LHV TY]shipping |Bethel ©cc on Diesel Fuel No.2 (TESORO)|138524 7.07 0.85 6.53 1.04 7.99 1.25 9.60 Diesel Fuel No.1 gross evel 6.74 0.90 7.19 1.09 8.71 130|10.39 ___-OF?25%)Oil (DFI 75%,;see 6.86 0.87 6.87 1.06 8.37 1.27 10.03 Jet B ;iets 6.30 0.88 1.79 1.07 9.47 1.28 11.33 ALASKA).FUEL (WILLIAMS oes 7.15 0.87 6.58 1.06 8.03 1.265 9.63 yp-4 late 6.30 0.87 1.69 1.06 9.36 1.27 11.22 19,743Naphthaeon 6.09 0.82 6.82 1.01 8.40 1.22]10.14 Heating fuel Product Nr.43 eel «6:96 0.86 6.79 1.05 8.29 1.26 9.95 Propane een.4.20 50 10 65 1.65 80 9.41 Fuel Prices as of January 2003. Transporting the fuel oil from Cook Inlet or West Coast USA/Canada to Bethel or Crooked Creek requires up to three steps:(1)Linehaul barge transportation from Seattle or Cook Inlet into the Kuskokwim River to Bethel and if transported to Crooked Creek then it will be necessary to (2)off-load,temporary storage and transfer the fuel to smaller barges,(3)transport in smaller barges from Bethel to Crooked Creek.The shallow nature of the Kuskokwim above Aniak (between Bethel and Crooked Creek)provides the greatest challenge,both physically and financially,to this endeavor.The cost estimate for delivering,with specialized shallow-draft tugs and barges that can operate between Bethel and Crooked Creek,approximately 32,000,000 gallons to Crooked Creek is $12,800,000,not including fuel cost.Delivery of the same quantity of fuel oil to Bethel will cost approximately $6,720,000 less -a large incentive for the Bethel location. EXECUTIVE SUMMARY Section I-1.11 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Cc.OTHER POWER SUPPLY ALTERNATIVES 1.Importing Rail-belt Power Two transmission line alternatives capable of delivering power to the Donlin Creek mine from the rail-belt were previously investigated as part of the Calista Region Energy Needs Study,dated July 1,2000.These alternatives include a 230-kV,AC transmission line or a +100-kV,DC,transmission line from Nenana to the mine site. These power line alternatives are revisited as part of this study.Both of these alternatives provide substantially more expensive power than a coal-fired plant located at Bethel. 2.Holitna Basin or Cook Inlet Natural Gas Holitna Energy,a newly formed company,has recently announced its intention to explore the Holitna Basin for natural gas.Three major oil companies,ARCO,Unocal and Sohio (now BP)independently evaluated the Holitna basin during the 1980s.At the time this report was printed virtually no physical exploration of the basin by Holitna Energy, has been accomplished.Presently no natural gas resource has been demonstrated.The potential for finding an economic and commercially developable natural gas deposit is unknown and the Holitna basin cannot presently be considered a natural gas resource. The Cook Inlet alternative involves constructing a natural gas pipeline from the Cook Inlet gas fields to Crooked Creek.The pipeline would be 300 miles long and essentially follow the Iditarod trail through the Alaska Range.After exiting the AlaskaRangeonthenorth,the pipeline would turn southwest to Crooked Creek.A combined- cycle combustion turbine plant would be constructed at Crooked Creek to supply electric power to the Donlin mine project,Bethel and eight villages via a 138-kV transmission line.Not only is this alternative one of the most capital intensive examined,production from the Cook Inlet gas fields is expected to decline dramatically in 2010,which is the very time the Donlin Creek mine will need power.Because of the high cost of this alternative,the steep decline in gas production and the uncertainty as to the availability and cost of natural gas from the Cook Inlet field,this alternative is not considered to be practicable. D.BETHEL TO DONLIN CREEK 138-kV TRANSMISSION LINE The 191 mile long,138-kV transmission line would be located along the northern bank of the Kuskokwim River.(Figure J-1.2).The power line would serve Bethel, Akiachak,Akiak,Tuluksak,Lower/Upper Kalskag,Aniak,Chuathbaluk Crooked Creek and the proposed Donlin Creek gold mine.As discussed above the proposed power plant would be located south of Bethel. Two basic transmission structures could be used for constructing the 138-kV transmission line.Single pole structures would be used for the initial 6 miles of the power line,i.e.line Segment A-B,as it traverses south to north through the City of Bethel. EXECUTIVE SUMMARY Section I-1.12 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Using single pole structures would limit right-of-way requirements to less than 50 feet. Typical structure height would be 50-60 feet and span length,i.e.distance between structures,would be in the order of 300 feet. The next 80 miles of power line,i.e.line Segments B-C through F-G,extends between Bethel and Upper Kalskag.This portion of line traverses marshy,tundra covered lowlands underlain with permafrost.Terrain elevation for this portion of the line varies from a minimum of 13 feet to a maximum of 73 feet.A driven pipe-pile supported,steel H-frame structure,is recommended for use on this portion of the line.The driven pile supported steel structure has been used in the construction of most major power lines in Alaska,in this type of terrain.R.O.W.width requirements when using H-frame structures would be 125 feet.Using a nominal structure height of 70+20 feet,a typical span length of 1,200 feet can easily be achieved along this portion of the route. The portion of power line located between Kalskag and Donlin Creek Mine,i.e. line segments G-H through L-N,traverses hilly terrain and better drained soils.It is anticipated that granular,moderately drained soils will be encountered,along this portion of the route and therefore,it would be possible to utilize direct imbedded steel H-frame structures,rather than driven pile supported structures.Typical R.O.W.width requirements when using the H-frame structures would be 125 feet.Terrain elevation for this portion of the line varies between a minimum of 59 feet to a maximum of 950 feet. Due to the hilly terrain along this portion of the route,a typical span length along this portion of the route would decrease to 1,000 feet.Typical tower heights would be 70+20 feet. E.PROJECT SCHEDULE It is estimated the permitting,design and construction of a coal-fired plant at Bethel and a 138-kV transmission line from Bethel to the Donlin Creek mine site will required approximately 6 to 6-1//2 years.If the goal is to deliver power to the mine project by 2010,the EIS process must begin early in the year 2004. The above schedule assumes the project does not encounter any unexpected delays or impediments.Few projects of this magnitude are,however,permitted,designed and built without encountering some unexpected delays. F.ECONOMIC ANALYSIS and COST ESTIMATES 1.Capital Costs Eight different generation alternatives were investigated as part of this study. These eight alternatives,along with their respective capital costs are listed in Table I-1.3. Alternatives 1,2 &3 investigate various scenarios for a coal-plant located at Bethel, while alternatives 4 &5 investigate two combined-cycle combustion turbine alternatives EXECUTIVE SUMMARY Section I-1.13 SECTION I Public Draft 03/20/04 Nuvista Light &Power,Co.--Donlin Creek Mine Power Supply Feasibility Study located at Bethel.These alternatives include the cost of constructing a 138-kV transmission line between Bethel and the Donlin Creek mine and associated substations. Alternative 6 examines a combined-cycle combustion turbine plant at Crooked Creek. The last two alternatives,7 &8,examine importing power from the rail-belt.These two alternatives include the cost of constructing a 138-kV transmission line between the Donlin Creek mine and Bethel.Except for Alternative 6,all alternatives are evaluated with the premise that each alternative must supply power to the Donlin Creek mine, Bethel and the eight villages located between Bethel and the mine site.Alternative 6 supplies power only to Crooked Creek and the mine. Table I-1.3 Capital Costs Does Not Include Interest During Construction 97 MW Coal Plant 97 MW Coai Plant 80 MW Coal Plant 150 MW CT Plant +46 MW CT +46 MW CT +25 MW CT Bethel Bethel-Land Based Bethel-Barge Mounted Bethel-Barge Mounted Land-Based Alt.1 Alt.2 Alt.3 Ait.4 $392,282,800 $369,487,800 $351,237,800 $307,077,800150CTPlant110MWCTPlant230kV,AC +100 kV,DC Bethel Crooked Ck T-Line T-Line Barge Mounted Land-Based from Nenana from Nenana Ait.5 Ait.6 Alt.7 Alt.8 $296,577,800 $140,632,600 $494,648,260 $521,946,800 Table I-1.3 reveals that importing power from the rail-belt using either a 230-kV, AC transmission line or a +100-kV,DC transmission line are the two most capital intensive alternatives proposed,while constructing a power plant at Crooked Creek to serve only the mine load is the least capital intensive alternative. 2.Wholesale Power Costs Table J-1.4 summarizes and allows for a ready comparison of the wholesale - power cost,expressed in dollars per kilowatt hour,for the various alternatives,based on an average mine demand of 60 megawatts.Wholesale power costs are derived by adding one-half cent to power production costs.Power costs for five different financing options are included.The table only contains the power cost for the Bethel barge-mounted power plant alternatives.The Bethel land-based power plant alternatives (Alt.1 and Alt.4)are not included as they are more expensive to construct and would,therefore,produce more expensive power than their barge-mounted counterparts. A review of Table I-1.4 discloses that the Bethel coal-fired plant alternatives produce the lowest cost power for all financing options,while importing power from the rail-belt results in the highest cost power.Alternatives 7 and 8 assume firm power can be purchased at the Nenana substation for 4.5 cents per kWh and $11.25 kW demand charge.Alternative 7A assumes non-firm power can be purchased at the Nenana substation for 4.5 cents per kWh with no demand charge.Even when purchasing non- firm power (Alternative 7A)the cost of power imported from the rail-belt is 2 cents per EXECUTIVE SUMMARY Section I-1.14 SECTION I Public Draft 03/20/04 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study kWh more expensive than power produced by the Bethel coal plant alternative,for all financing options. Table I-1.4 60 MW Average Mine Demand Wholesale Power Costs Years 1-20 97 MW Coal Plant 80 MW Coal Plant 150 MW CT Plant 150 MW CT Piant +46 MW CT +25 MW CT Bethel -#2 Fuel oil Bethel -Propane Bethel-Barge Mounted Bethel-Barge Mounted Barge Mounted Barge Mounted Financing Option Alt.2 Alt.3 Alt.5 Ait.5A 5%$0.103 $0,101 $0.113 $0.111 $100 M Grants,Bal.5%$0.090 $0.087 $0.099 60.097 $150 M Grants,Bal.5%50.083 $0.080 $0.092 50.090 $200 M Grants,Bal.5%50.076 $0.073 $0.085 50.083 $250 M Grants,Bal.5%$0.069 $0.066 $0.078 $0.076 110 MW CT Plant 230 kV,AC 230 kV,AC +100 kV,DC Crooked Ck T-Line T-Line T-Line Land-Based w/Demand Charge wio Demand Charge w/Demand Charge Financing Option Alt.6 Alt.7 Alt.7A Alt.8 5%$0.112 $0.136 $0.123 $0.128 $100 M Grants,Bal.5%$0.096 $0.122 $0.109 $0.114 $150 M Grants,Bal.5%$0.090 $0.116 $0.102 $0.107 $200 M Grants,Bal.5%|$0.090 $0.109 $0.095 $0.100 $250 M Grants,Bal.5%$0.090 $0.102 $0.088 $0.093 Power costs associated with two different coal plant sizes are listed in Alternatives 2 and 3.Alternative 2 represents power cost for a plant with a total installed capacity of 143 MW,while Alternative 3 is for a plant with an installed capacity of 105 MW.The power cost for these two alternatives are identical for all practical purposes, varying by no more than three-tenths of a cent.Reducing the installed generation capacity of the coal plant by 39 MW or 27%has only a minor impact on the cost of power.Since the power costs associated with Alt.2 and 3 are essentially equal,Alt.3 will no longer be included in this discussion as a separate alternative.The final installed capacity of the coal plant will be determined after Placer Dome more accurately ascertains the peak and average mine demand,however,it is expected to fall between the upper and lower limits established by Alt.2 and Alt.3. Alternative 5 and 5A examine the cost of power associated with a Bethel-based combined-cycle combustion turbine plant.The two alternatives differ only in that Alternative 5 examines power cost associated with using #2 fuel oil,while SA scrutinizes the cost of power connected with using propane fuel.An examination of the power costs associated with these two alternatives discloses propane produces power at two-tenths of one cent lower than fuel oil. Finally,Alternative 6 lists the cost of power associated with constructing and operating a combined-cycle power plant at Crooked Creek to supply the Donlin Creek mine and the village of Crooked Creek.Power costs for this alternative are effectively equal to the cost of power from Alternative 5A.Power costs for the Cooked Creek plant EXECUTIVE SUMMARY Section I-1.15 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 remain constant for the last three financing options.This is because the capital cost of the Crooked Creek plant is less than $150 million. Figure J-1.4 graphically displays power cost,in dollars per kWh,associated withfourselectedalternativesforthefivefinancingoptions.This graph clearly illustrates that Figure I-1.4 Power Cost Comparison-Years 1-20 60 MW Average Mine Load 20 Year Mine Life$0.140 $0.120 $0.100 x $0.080 4 oe $0.080 4 $0.040 + $0.020 4 . $0.00 +:.a i a ial me 5%$100 M Grants,Bal.5%|$150M Grants,Bal 5%|$200M Grants,Bal.5%|$250 M Grants,Bal.5% |mm.97 Mw Coal Plant(ALT.2)$0,103 $0.090 $0.083 $0.076 $0.068 le 150 MW CT Plart (AR.5A)$0.11 _$0.097 $0.090 $0.083 $0.076|m§110 Crooked Ck Plant (Ak6)$0.112 $0.098 $0.090 $0.080 $0.090 [230 kV,AC Tine (Ak 7A)$0.123 $0.108 $0.102 $0,095 $0.088 the coal-plant alternative provides the lowest cost power,at any financing option,and importing power from the rail-belt via a transmission line produces the highest cost power. 3.20 Year Accumulated Donlin Creek Mine Power Costs Table I-1.5 lists the accumulated mine power cost for the various generation alternatives and financing options for 60 MW average mine load and a 20 year mine life. The magnitude of 20 years of accumulated power cost are truly astonishing.The accumulated costs range between a maximum of $1,520 million ($1.52 billion)dollars forAlt.8 to a low of $735 million for Alt.2.Assuming $150 million in grant funds'can be obtained to finance construction of Alternative 2,a coal-plant at Bethel +the 138-kV transmission line,the projected 20 year accumulated mine power cost would be approximately $885 million dollars,for an average power cost of $44 million dollars per year. 3 The $150 million grant fund option was selected as it produces power cost for Alt.2 in the price range that may be economically acceptable to Placer Dome. EXECUTIVE SUMMARY Section J-1.16 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION I Public Draft 03/20/04 Table I-1.5 60 MW Average Mine Demand 20 Year Mine Life Donlin Ck Mine Accumulated Power Costs Years 1-20 97 MW Coal Plant 150 MW CT Plant 150 MW CT Plant 110 MW CT Plant +46 MW CT Bethel -#2 Fuel oil Bethel -Propane Crooked Ck Barge Mounted Barge Mounted Barge Mounted Land-Based Financing Option Alt.2 Alt.5 Alt.5A Alt.6 5%|$1,110,512,156 51,204,682,971 $1,183,673,214 $1,180,224,519 $100 M Grants,Bal.5%$960,508,237 6 1,054,679,052 $1,033,669,295 $150 M Grants,Bal.5%$885,506,278 $979,677,093 $958,667,336 - $200 M Grants,Bal.5%$810,504,319 $904,675,133 $883,665,377 - $250 M Grants,Bal.5%$735,502,359 $829,673,174 $808,663,417 - 230 kV,AC 230 kV,AC +100 kV,DC T-Line T-Line T-Line w/Demand Charge wio Demand Charge w/Demand Charge Alt.7 Alt.7A Alt.8 5%1,458,404,593 b1,314,192,234 $1,518,302,581 $100 M Grants,Bal.5%1,308,400,674 51,164,188,315 5 1,368,298,662 5150 M Grants,Bal.5%1,233,398,715 5%$1,158,396,756 § E $1,089,186,356 $1,014,184,396 61,218,294,743 q $200 M Grants,Bal. $250 M Grants,Bal.5%)$1,083,394,796 $939,182,437 E $1,293,296,702 [ q $1,143,292,784 Table I-1.6 illustrates the saving associated with Alternative 2,the 97 MW barge- mounted coal-fired generation alternative,as compared to other generation alternatives, for the same twenty year period.When compared to the Crooked Creek alternative (Alt. 6),the coal plant (Alt.2)is estimated to save the mine $295 million dollars in power costs,or $14.7 million dollars a year.Compared to the least cost combined-cycle Table I-1.6 60 MW Average Mine Demand 20 Year Mine Life -$150 Million in Grants Saving Associated with 97 MW Coal-Fired Generation vs.Other Alternatives 97 MW Coal Plant 150 MW CT Plant 150 MW CT Plant 110 MW CT Plant +46MWCT Bethel -#2 Fuel oil Bethel -Propane Crooked Ck Barge Mounted Barge Mounted Barge Mounted Land-Based Alt.2 Alt.5 Alt.5A Alt.6 (1) Total Saving $0 $94,170,815 $73,161,058 $294,718,241 Average Annual Savings $0 $4,708,541 $3,658,053 $14,735,912 230 kV,AC 230 kV,AC +100 kV,DC T-Line T-Line T-Line w/Demand Charge wio Demand Charge wiDemand Charge Alt.7 Alt.7A Alt.8 Total Saving $347 892,437 $203,680,078 $407,790,424 Average Annual Savings $17,394,622 $10,184,004 $20,389,524 (1)Savings calculated using accumulated power cost for 5%Financing Option for Crooked Creek alternative, as it is presumed only minimal grant funding will be available for this alternative EXECUTIVE SUMMARY Section J-1.17 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 generation alternative (Alt.5A),the coal plant (Alt.2)is estimated to save the mine $94 million dollars in power costs,or $4.7 million dollars per year.Comparing Alt.2 to the 230 kV transmission line non-firm power option,(Alt.7A),the estimated savings are $203 million,or $10.1 million per year. The costs shown in Table I-1.6 were calculated using a 60 MW average mine demand,20 year mine life and $150 million in grant fund financing,except for Alternative 6.The Crooked Creek column assumes this alternative must be entirely funded with 5%interest loans.It is presumed that since a power plant at Crooked Creek would essentially only serve the mine load,little if any grant funding would be available for the Crooked Creek plant alternative.Savings for other finance options can be determined from using the data in Table I-1.5. 4.Fuel Price Sensitivity Analysis The sensitivity of wholesale power cost to fuel cost is examined in Table I-1.7. The table lists wholesale power costs for both the "base”fuel price used in this study and for base price plus 25 percent,for the five financing options.An examination of the data reveals that the percentage increase in wholesale power costs for combined-cycle combustion turbine plant is approximately 1.75 times that of a coal plant.This is because fuel cost represents a greater portion of the wholesale power cost for a turbine plant than it does for a coal-plant. Table I-1.7 60 MW Average Mine Demand 20 Year Mine Life Fuel Cost Sensitivity Analysis -25%Fuel Price Increase Coal Plant (Alt.2)CT Plant (Alt.5A) 25%Price Increase|%Increase 25%Price Increase|%Increase Financing Alternatives!$55.00/ton $68.75/ton Wholesale Power}$0.65/gal $0.82/gal|_Wholesale Power 5%50.103 50.1711 7.8%O.111 0.124 1.79 $100 M Grants,Bal.5%0.090 50.097 7.8%50.097 0.110 4% 150 M Grants,Bal.59 0.083 50.090 B49 50.090 0.104 6Y 200 M Grants,Bal.5%50.076 50.083 9.29 50.083 0.097 5.9" 250 M Grants,Bal.5%50.069 30.076 10.1%50.076 0.090 8.49 5.Mine Demand Sensitivity Analysis To determine the effects of variations in mine demand,wholesale power cost for Alt.2 were examined using average mine demands of 50,60 and 70 MW for three financing options.The results of this analysis are summarized in Table I-1.8.On average,wholesale power costs will increase nine-tenths of a cent if the mine demand decreases from 60 MW to 50 MW,and cost will decrease by six-tenths of a cent if mine demand increases from 60 MW to 70 MW.Other alternatives would experience similar cost changes. EXECUTIVE SUMMARY Section I-1.18 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Table I-1.8 Mine Demand Sensitivity Mine Demand Wholesale Power Cost 50 MW 60 MW 70 MW 5%$.119 $0.103 $0.093 $150 Grants,Bal.5%$0.095 $0.083 $0.075 $250 Grants,Bal.5%$0.079 $0.069 $0.063 6.Coal-fired Plant Generation Efficiency A coal-fired plant generation efficiency of 31%was used to calculate power costs for the various coal-fired power plant alternatives investigated in this study.This nominal efficiency was calculated by PES,as being typical of coal-fired plants using common off-the-shelf equipment.However,it is possible,through careful engineering,to readily increase generation efficiency to 35%and in some cases to 40%.These include installing boilers that operate at higher pressures,using a second reheat stage and installing variable speed drives.Efficiency in the range of 40%can be achieved using supercritical steam systems,however,operating such a system requires highly skilled personnel.Increasing efficiency is one of the less expensive ways of reducing pollution emissions.Appropriate equipment will be selected during the actual design process that achieves a balance between thermal efficiency,capital costs,and personnel requirements. Table I-1.9 shows the relationship between power costs and generation efficiency. Increasing efficiency to 35%will reduce wholesale power cost by approximately $0.004 cents per kWh.While this may not seem like a substantial reduction,it would reduce power cost to the mine by $2.4 million dollars annually or by $48 million dollars over the 20 year life of the mine.Increasing plant efficiency to 40%would reduced power costs by $0.007 per kWh or by $4.9 million dollars annually,which equates to $98 million dollars over the 20 year life of the mine. Table I-1.9 Generation Efficiency Wholesale Power Cost 31%35%40% 5%$.103 $0.10 $0.097 $150 Grants,Bal.5%$0.083 $0.079 $0.076 $250 Grants,Bal.5%$0.069 $0.065 $0.062 7.Waste Heat Recovery The effect of waste heat recovery and sales on wholesale power costs was also examined.The analysis indicated that for every one million dollars of waste heat sales, power cost were lowered by one-tenth of a cent. EXECUTIVE SUMMARY Section J-1.19 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 8.50-Year Regional Power Costs The useful life of the transmission and generation facilities presented and discussed in this study is projected to be 50 years.Therefore,it is necessary to investigate the power costs associated with the proposed alternatives for the entire 50 year period. Figure I-1.5 illustrates the power cost for selected alternatives for a 50 year period, beginning in 2010 Figure I-1.5 50 Year Regional Power Costs 60 MW Average Mine Demand $150 Million Grant Funding,Bal .@ 5%Unless Noted Otherwise wm So/_*©>©+ c emcee be ba si E soon A---s---4 -4msSs s--4 $0.040 i $0.020 $0.000 -r r r r r 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 Year --@-CP{Alt.2)-20 Yr Mine Life --CP(Alt.2)-50 Yr Mine Life wong CP(Alt.2)-50Yr Mine Life,30 MW In 2031 %- CT(Alt.5A)-20 Yr Mine Life -B-230kV Tline(Alt.7A)-20 Yr Mine Life The graph demonstrates that wholesale power costs remain relatively constant over the first twenty years for all alternatives.This corresponds to the estimated life of the mine.After 20 years,when capital costs are fully amortized,there is a step change in power cost.The graph shows power cost changing gradually over a five year period between 2030 and 2035.However,in reality the power costs will change to the 2035 cost levels in 2031.However,the graphics software cannot easily show this step change. Wholesale power costs after 2030 are calculated by adjusting fuel cost,operational and maintenance cost as appropriate,to reflect cost changes in these items associated with reduced generation requirements. The following can be determined from reviewing Figure I-1.5.When the Donlin Creek mine ceases operations at the end 20 years,in the year 2030,the wholesale power cost for the coal-plant alternative (Alt.2)and the combined-cycle alternative (Alt.3)will increase to 10.5 cents and 13.7 cents per kWh,respectively.The power cost for the 230- kV transmission line alternative (Alt.7A)will decrease to 5.5 cents per kWh,assuming no demand charge.These costs assume that no other loads but Bethel and the eight villages are served by the power system after 2030. EXECUTIVE SUMMARY Section I-1.20 SECTION I Public Draft 03/20/04 Nuvista Light &Power,Co.--Donlin Creek Mine Power Supply Feasibility Study If the mine life extends for 50 years,power cost for Alt.2 would decrease to 5.7 cents per kWh.The graph also establishes that if the mine remains operational after 2030, but at a reduced demand of 30 MW,or if a new load or loads equal to 30 MW can be served,wholesale power costs will decrease to approximately 6.6 cents per kWh.This is not an unlikely scenario as it is most probable that additional villages in the region will be connected to the power system prior to 2030 and that additional gold deposits located in the Calista region will be developed and mined once low cost power is available. Table I-1.10 illustrates the Fifty Year Regional Power cost saving associated with Alternative 2,the 97 MW barge-mounted coal-fired generation alternative,as compared to other generation alternatives.Implementation of Alt.2 results in the lowest 50-year accumulated power costs,saving the region over $181 million when compared to the next lowest cost alternative,which is Alt.7A.Although Alt.7A provides lower cost power to the region following closure of the mine (See Figure I-1.5)it cannot be economically implemented because power costs,for this alternative during the initial 20-year period, are significantly in excess of those provided by Alt.2.No costs are listed in the Crooked Creek Plant column (Alt.6)as it is assumed this alternative would only serve the mine load and would be decommissioned at the end of 20 years. ENVIRONMENTAL ASSESSMENT REVIEW TABLE I-1.10 60 MW Average Mine Demand 20 Year Mine Life -$150 Million in Grants 50 Year Regional Saving Associated with 97 MW Coal-Fired Generation vs.Other Alternatives 97 MW Coal Piant 150 MW CT Piant 150 MW CT Plant 110 MW CT Plant +46 MW CT Bethel -#2 Fuel oil Bethel -Propane Crooked Ck Barge Mounted Barge Mounted Barge Mounted Land-Based Alt.2 Alt.5 Alt.5A Ait.6 Total Saving $0 $227,606,055 $204,775,121 - Average Annual Savings $0 $4,552,121 $4,095,502 - 230 kV,AC 230 kV,AC +100 kV,DC T-Line T-Line T-Line w/Demand Charge wio Demand Charge w/Demand Charge Alt.7 Alt.7A Alt.8 Total Saving $436,808,100 $181,657,253 $352,441,323 Average Annual Savings $8,736,162 $3,633,145 $7,048,226 As part of the environmental assessment review process,input from interested parties was solicited.To accomplish this,separate letters were developed and presented to potentially interested parties,one for the transmission line project and a second for the Bethel power plant project.These parties include the State of Alaska,federal resource and regulatory agencies,municipalities in the vicinity of the proposed project,potentially affected native communities,and other stakeholders.The initial consultation letter included the project description,and solicited input from recipients. EXECUTIVE SUMMARY Section I-1.21 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 1.NEPA Compliance Major federal actions require compliance with the National Environmental Policy Act (NEPA).Major federal actions include authorizing development of public lands, federal funding of a project,or issuance of a federal permit that authorizes activities with the potential for environmental effects.As currently envisioned,partial funding of the Bethel Power Plant Project would be provided through the U.S.Department of Agriculture (USDA),Division of Rural Utilities (RUS).Thus,federal funding would likely be one of the triggers for NEPA compliance."An EIS will normally be required in connection with proposed actions involving the following types of facilities:(1)New electric generating facilities of more than 50 MW (nameplate rating)other than diesel generators or combustion turbines.All new associated facilities and related electric power lines shall be covered in the EIS ...”Therefore,an Environmental Impact Statement (EIS)must be prepared for the transmission line and power plant.Agencies responding to the feasibility letter agreed that the proposed project will require an EIS. A simplified version of the EIS process is as follows: e Determine the Lead agency for the transmission line and Bethel power plant project.The RUS would be the lead agency of choice for this project but it has not agreed to serve as the lead agency; The lead agency submits a Notice of Intent (NOI)to the Federal Register; Complete the Scoping Process (Identify significant issues,translate the issues into the purpose and need for the action,introduce alternatives and non-alternatives, and introduce the impacts); Develop alternatives; Prepare a draft EIS; Notice of Availability 45 day review period; Hold a public hearing; Incorporate comments; Finalize EIS and circulate the final document for 30 days;and RUS issues a Record of Decision (ROD). 2.Scope of NEPA Consistency Review An issue that has arisen in assessing the feasibility and permittability of the Bethel Power Plant is whether development of the power plant and appurtenances and the associated transmission line can be separated from development of the Donlin Creek gold mine,at least from a NEPA compliance standpoint.The development of the Bethel Power Plant is seen by certain agencies to be closely tied to development of the gold mine in that the mine would constitute the majority consumer of the power producedunderthecurrentdevelopmentscenario,and providing the power to the mine is thepredominantfactorintransmissionlinerouting. EXECUTIVE SUMMARY Section I-1.22 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 In response to the initial consultation letter for the Bethel Power Plant,the USFWS commented that it believes that the entire scope of the project should be comprehensively evaluated,including direct,indirect,and cumulative project impacts, "as is required under [NEPA]...when project components are so interrelated as to be inseparable"(USFWS 2003).According to the USFWS,this:would include the transmission line,power plant and other power generation alternatives,the Donlin Creek mine,the road to the mine,and secondary power distribution to Yukon Delta and Kuskokwim River villages. With regard to the scope of the NEPA assessment,the Corps stated in its response to the initial consultation letter that,when the Corps has jurisdiction over NEPA review, it is precluded from "piecemealing"”projects for analysis and permitting."If the power plant and mine are in fact tied together in an economic analysis,we cannot separate the power plant from the mine.The power plant must demonstrate an independent utility to be permitted as a separate action ....To consider the Bethel power generation facility a separate project the plant must be an economically viable project independent of the mine."The response concluded that it appears that the Donlin Creek Gold Mine is an integral part of the Bethel Power Plant Project and that the Corps is not convinced that the power generation facility and the mine are independent projects. Although some parties have suggested that the gold mine and power plant/transmission line projects be evaluated together,there are a number of important reasons for treating them independently. e First,scheduling constraints require that environmental review and permitting of the power plant and transmission line must proceed ahead of those for the mine so .that these facilities can be constructed and operational by the time power is needed for mine construction and operation.If not,the mine would need to permit and operate its own power generating source until the Bethel Power Plant and transmission lines were completed,which would preclude the need for an alternative power source and would likely preempt development of the Bethel Power Plant as proposed. e Second,development of the Bethel Power Plant,as proposed,represents only one of several alternative sources of electrical power for the gold mine;therefore, analysis of the power plant in the context of the environmental assessment for the mine is not likely to be as thorough as would be possible under an independent review. e Third,the entirely different functions of the facilities and the considerable distance between the gold mine,the (majority of the)transmission line,and the proposed power plant location suggest few synergies to be realized from coordinated review of these facilities.Other than regarding socioeconomic considerations,few similar impacts are expected from the three projects,and EXECUTIVE SUMMARY Section I-1.23 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 these could be evaluated under the cumulative impacts assessment for each,as appropriate. e Finally,the power plant could be developed independent of development of the gold mine,and vice versa;e.g.,a power plant could be constructed to serve just the local community and other communities in the region along the transmission line route. The issue of how NEPA compliance for the Bethel Power Plant Project can be structured to both accomplish a valid environmental analysis of the project and preserve the necessary project schedule needs further investigation.It is possible that providing an enhanced treatment of cumulative impacts in the NEPA analysis for the power plant/transmission line,along with tiering of any subsequent NEPA analysis for the gold mine,would be a satisfactory approach. For the purpose of this study it is assumed the scope of the NEPA review will only include the Bethel Power Plant Project,its appurtenances and the associated transmission line. 3.Land Ownership The USFWS indicated that any lands in a NWR that have been selected but not conveyed to a native corporation are managed as any other refuge lands under their jurisdiction.The development on those lands will require a R.O.W.permit. The USFWS will require a review of the alternatives,along with their impacts,to assure that the use of the refuge land is compatible with the mandated purposes of the Yukon Delta NWR.Only the alternative that meets the mandated purposes of the NWR system and would not adversely impact the refuge values would be permitted (USFWS, 2003a). This project will affect mainly the surface estate,but some subsurface lands will be affected due to required material sources.Table I-1.11 displays a breakdown of the transmission line and the ownership rights within each segment of the affected lands.See Figure I-1.2 for map of transmission line route and segments. EXECUTIVE SUMMARY Section J-1.24 Nuvista Light &Power,Co.Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 PROPOSED ROUTE SEGMENTS with Land Ownership TABLE I-1.11 Length Accumulated Minimum MaximumSegment(miles)Length (miles)|Elevation (ft)|Elevation (ft)|Land Ownership Comments A-B 6 6 24 66 City of Bethel;{|Power Plant 138 kV Step- BNC;Private up Substation at Mile 0.0 Parcels;Native Allotments B-C 15.9 21.9 13 61 BNC;Akiachak Akiachak Substation at Mile 19.7 C-D 16.0 37.9 19 48 Akiachak;Akiak Substation at Mile Kokarmiut;Mile 26.2 Tuluksarmute D-E -16.6 $6.5 39 61 Tuluksarmute Tuluksak Substation at Mile 43.4. E-F 15.6 70.1 39 59 Tuluksarmute; TKC &4.2 mi. TKC Selected F-G 15.5 85.6 36 73 TKC &2.8 mi.Kalskag Substation at TKC Selected Mile 85.6 G-H 15.3 100.1 59 415 TKC;11 Native Allotments H-I 16.1 117 83 477 TKC;10 Native Aniak Substation at Mile Allotments 110.6 I-J 15.8 132.8 87 497 TKC &1 mi.Chuathbaluk Substation at TKC Selected;6 Mile 123.4 Native Allotments J-K 13.3 146.1 103 700 TKC &3.4 mi. TKC Selected;5 Native Allotments K-L 14.4 160.5 124 717 1 mile BLM; 4.2 miles State; TKC L-M 17.0 177.5 161 556 2.1 miles State; TKC;2 Native Allotments M-N 13.7 191.2 140 947 TKC;1 Native |Crooked Creek SubstationAllotmentatMile177.8;Donlin Ck Mine Substation at Mile 191.2 4.Project Permits Project permits will require detailed design information.Project specifics, alternatives,and work time frames will need to be completed according to permit specifications.Tables I-1.12 and 13 summarize the potential permits required for this ”project and the regulatory agencies that approve them. EXECUTIVE SUMMARY Section I-1.25 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION I Public Draft 03/20/04 Table I-1.12 Transmission Line Permits Agency Name Type of Reason for Permit/Approval Permit/Approval Federal Agencies ' Dept.of Agriculture,RUS |Location Approval.Lead Agency approves the NEPA document. U.S.Army Corps of Section 404 A Section 404 permit is required for authorization of Engineers wetland fills. Section 10 A section 10 Permit is required for any work performed in a navigable river below the OHW mark or for any structures placed within a navigable river. U.S.Fish and Wildlife Endangered Species Protection of endangered and threatened species. Service Refuge Crossing Permit |Any transmission lines across wildlife refuges require approval. U.S.National Marine and |Essential Fish Habitat Minimize impacts to fish habitats. Fisheries Service Assessment State Agencies - Alaska Department of ADEC Wastewater A general permit is for similar situations with standard Environmental General conditions,such as excavation dewatering,floating Conservation and non-permanent shore-based camps.The permit tells what limits must be met,what measures must be taken,which types of discharges are covered by it. Food Service A permit must be obtained for permanent,temporary, limited or mobile food service operations serving 11 or more persons per day.(May apply to construction camp) Certificate of ADEC must issue a 401 Certificate to accompany anyReasonableAssurance|federal permit issued under the Federal Clean Water (401 Certificate)Act.For example,a COE Section 404 permit would trigger the need for a state certificate. Title V Air Quality for |ADEC must issue an air quality control permit to power plant construct and operate a power plant. Alaska Department of (Title AS 41.14.870)|A General Waterway/Water body Application must be Natural Resources,"Anadromous Fish submitted if heavy equipment usage or construction OHMP.Passage”activities disturb fish habitat and anadromous fish habitats.These permits also stipulate how stream In Cooperation with water withdrawals may be conducted. Or Or Alaska Department of (Title AS 41.14.840)|The above information dealing with only non- Fish &Game "Fish Passage”anadromous fish passage. Alaska Department of Coastal Project '|A project application that is filled out to help Natural Resources,Questionnaire determine what state and federal permitting is OPMP necessary to proceed with a project located within the Coastal Zone Management Area. Alaska Department of Temporary Water Use j|This permit is required if water withdrawals will occur Natural Resources,during construction.The permit lasts for the length of DMLW a temporary project. Materials Sale &Purchase of required materials from state lands. Mining Plan Alaska Department of Land Use A land use permit is required for use of state lands Natural Resources,along the proposed ROW. EXECUTIVE SUMMARY Section I-1.26 Nuvista Light &Power,Co.-Donlin Creek Mine . Power Supply Feasibility Study SECTION I Public Draft 03/20/04 DMLW ROW A ROW is required for construction of transmission lines or other improvements that cross state lands. Alaska Department of Cultural Resource For any federally permitted,licensed,or funded Natural Resources,SHPO |Concurrence Section project,the SHPO must concur that cultural resources 106 Review would not be adversely impacted,or that proper methods would be used to minimize or mitigate_impacts that would take place. Alaska Department of Utility Permit on State |Required before construction on DOT&PF managedTransportationandPublic|ROW state lands or for structures crossing DOT&PF ROWs. Facilities City of Bethel Planning Department Building Permission is required to build transmission lines across City land. Calista Corporation Land Department |ROW |Administrative approval for crossing Calista Lands. Village Approvals ROW and Easements Village corporations and councils issue permission for Akiachak,Akiak,Tulusak,utility crossings of village lands., Lower/Upper Kalskag, Aniak,Chuathbaluk,and Crooked Creek ROW and Easements |Permission is required to build transmission lines Private Individuals across private lands unless ROW is secured eminent domain process. EXECUTIVE SUMMARY Section I-1.27 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 Table I-1.13 ; Bethel Power Plant Permits Agency Name Permit/Approval Federal Agencies U.S.Environmental Protection Agency National Pollutant Discharge Elimination System (NPDES)Wastewater Discharge Permit. U.S.Department of the Army,Army Corps of Engineers Clean Water Act Section 404 Nationwide and/or Individual Permits. U.S.Department of the Army,Army Corps of Engineers Rivers and Harbors Act Section 10 Permit. U.S.National Oceanic and Atmospheric Administration,National Marine Fisheries Service Essential Fish Habitat Assessment. Federal Emergency Management Agency Flood Hazard Permit and "No-Rise"Certification. U.S.Department of Transportation,Federal Aviation Administration Notice of Proposed Construction or Alteration. U.S Department of Agriculture,Division of Rural Utilities National Environmental Policy Act (NEPA)Compliance, including field data collection. U.S.Department of the Interior,U.S.Fish and Wildlife Service Endangered Species Act (ESA)Section 7 Consultation. U.S.National Oceanic and Atmospheric Administration,National Marine Fisheries Service Endangered Species Act (ESA)Section 7 Consultation. State Agencies Alaska Department of Natural Resources, Office of Project Management and Permitting Alaska Coastal Management Program (ACMP) Consistency Review. Alaska Department of Environmental Conservation,Division of Air and Water Quality Air Quality Construction Permit,including monitoring programs. Alaska Department of Environmental Conservation,Division of Air and Water Quality Clean Water Act Section 401 Certification(s). Alaska Department of Environmental Conservation,Division of Air and Water Quality National Pollutant Discharge Elimination System Stormwater Discharge Permit for Operations. Alaska Department of Natural Resources, Office of Habitat Management and Permitting Fish Habitat Permit. Alaska Department of Natural Resources, State Historic Preservation Officer National Historic Preservation Act (NHPA)Section 107 Consultation. EXECUTIVE SUMMARY Section I-1.28 apAAA,Nsnnveaysf 'Georgetow f;we ts Fdviet a.Ene! wag Calista Region/Location -<Map Figure I-1.1 af Donlin Creek Transmission Line2,Preliminary Route Alignment Figure J-1.3-Aerial Photo of Bethel and Vicinity Showing Proposed Bethel Power Plant Locations Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study _Public Draft 03/20/04 SECTION II INTRODUCTION 1.BACKGROUND One of the largest undeveloped gold deposits in North America and in the world is located in the Calista region,of southwestern Alaska.The Donlin Creek gold deposit is located on Calista Native Corporation's 6.5 million acres of private lands. The proposed Donlin Creek mine project is located approximately 280 miles west of Anchorage and 14 miles north of Crooked Creek.The village of Crooked Creek 'is located on the Kuskokwim River approximately 180 river miles upstream of Bethel.A location map is attached at the end of Section I as Figure I-1.1. The joint venture of Placer Dome,Inc and Nova Gold,Inc.is presently evaluating the feasibility of developing a mine to extract the gold resources.Resource estimates confirm a Measured and Indicated Resource of 11.1 million ounces of gold grading an average of 3.0 g/t (grams/tonne)gold.In addition,the Inferred Resource is estimated at 14.3 million ounces of gold grading 3.1 g/t.The resource remains open,with potential to define additional ounces with further drilling.Seven additional potential resource areas occur on the property,all of which have significant high-grade drill results of >5 g/t over significant widths that are not included in the current resource estimate."he a Sen titi oc ala Currently,the joint venture has & spent in excess of US$40 million on the project and Placer Dome will be spending an additional +US$30 million to complete a Feasibility Study and make a decision to construct the mine prior to November 2007. It is anticipated that the Donlin Creek mine project would have a ;eeemaximumloaddemandofDonlinCreekProjectookingnorthatthemainresource area.approximately 70 megawatts with an average load demand of in the range of 60 megawatts.There are no existing power supply facilities in the region that can provide this power demand and new power supply facilities must be constructed.In order for the Donlin Creek mine project to be © economically feasible these new power facilities must provide the mine with reasonably cost power. INTRODUCTION Section II-1.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 Nuvista Light &Power,Inc.(Nuvista),using grant funds provided by the Alaska legislature,commissioned an energy needs study,in the year 2000,to identify a comprehensive energy strategy that would provide low cost power to the Donlin Creekmineprojectandtothe40+villages in the Calista region.'Nuvista is a non-profitorganizationformedbyCalistaCorporationtofunctionasaregionalGenerationand Transmission utility.Nuvista would wholesale power directly to the Donlin Creek mine, and to existing utilities for resale to their customers. The energy needs study forecasted the power and energy requirements of the Calista region both with and without the development of the Donlin Creek mine project. The forecasted power demand with development of the Donlin Creek mine project,in the year 2020,is 96 MW as compared to 30 MW projected load without the mine development.Energy requirements are forecast at approximately 700,000 MWHs with the mine as compared to 150,000 MWHs without the Donlin Creek mine development. Development of the Donlin Creek mine project would triple the power demand in the region and energy requirements would increase by almost five fold when compared with power and energy requirements without the mine development. Two general categories of alternatives were investigated to satisfy the electric power and energy requirements of the proposed Donlin Creek mine project and the Calista region.These included: °Construct Power Supply in the Calista Region. °Import Power From the Railbelt Region. In-region power supply alternatives investigated to satisfy the electric power and energy requirements of the proposed Donlin Creek Mine project,Bethel and the regional villages include: °Coal-Fired Plant at Bethel +191 mile long transmission line to the mine site. e Combined-cycle combustion turbine plant located at Bethel utilizing fuel oil or propane +191 mile long transmission line to the mine site. °Combined-cycle combustion turbine plant at the mine site +coal plant at Bethel+191 mile transmission line to mine site. °Coal-Fired Plant at Railroad City +50 mile long transmission line to the mine site., e Combined-cycle combustion turbine plant located at Railroad City powered by fuel oil or propane +50 mile long transmission line to the mine site. 'Calista Region Energy Needs Study,Part IJ and II,July 1,2002. INTRODUCTION Section IJ-1.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IT Power Supply Feasibility Study Public Draft 03/20/04 e Combined-cycle combustion turbine plant at mine site powered by fuel oil. Power supply alternatives investigated that import power from the railbelt include: °The Construction of either an AC or DC transmission line,from Anchorage or the Fairbanks region,to supply the power requirements of the mine project and the region. e Natural gas pipeline from Cook Inlet to Crooked Creek Of the numerous power supply alternatives evaluated,in the energy needs study, the identified preferred alternative for supplying the power needs of the Donlin Creek mine project and the region is:Construct_a Coal-Fired Plant at Bethel +191 mile long 138-kV transmission line to the mine site,The study recommended that Nuvista proceed immediately with the planning,development and implementation of the preferred alternative,commencing with the commissioning of a feasibility study.Based on this recommendation,Nuvista obtained additional grant funding from the Alaska legislature to proceed with this Feasibility Study. 2.PURPOSE OF STUDY A primary goal of this Feasibility Study is to explore the feasibility of constructing a power plant in Bethel,Alaska and a 138-kV transmission line from Bethel to the proposed Donlin Creek gold mine project site.The transmission line would be located along the northern bank of the Kuskokwim River.Power would be supplied from a power plant at Bethel,to serve Bethel,Akiachak,Akiak,Tuluksak,Lower/Upper Kalskag,Aniak,Chuathbaluk,Crooked Creek and the proposed Donlin Creek gold mine. This study will define the basic design criteria and estimated costs associated with the construction of the preferred power supply alternative,which has been identified as the construction of 100 MW coal-fired plant at Bethel and a 191 mile long,138-kV transmission line (the Donlin Creek transmission line)from Bethel to the Donlin Creek mine.As an alternative to the coal-fired plant at Bethel the study will also identify the basic design and cost associated with the construction of a combined-cycle combustion turbine plant at Bethel.The study will assess and compare the capital costs and power costs associated with these two alternatives with each other and with other selected power supply alternatives.This feasibility study includes the following principal tasks: 1.Review routing alternatives for the 138-kV Donlin Creek Transmission line and define a preferred alternative. 2.Develop a feasibility level design for the Donlin Creek transmission line. INTRODUCTION |Section JI-1.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 3.Develop a feasibility level design for a 100+MW coal-fired plant at Bethel. 4.Develop a feasibility level design for a 100+MW combined-cycle combustionturbineplantatBethel. 5.Develop construction cost estimates for the Donlin Creek transmission line, the coal-fired plant and the combined-cycle plant at Bethel. 6.Develop construction and operating cost estimates for the Donlin Creek transmission line,the coal-fired plant and the combined-cycle plant at Bethel. 7.Develop a design and construction schedule including environmental review 8.'.Conduct a basic review of environmental factors and permitting requirements related to construction of the transmission line and power plants. 9.Conduct electrical system studies to evaluate the steady-state and transient responses of the power systems. 10.Conduct an economic analysis comparing the 40 year costs of the Bethel coal plant and the combined-cycle plant alternatives with each other and with other selected power supply alternatives. 11.Identify potential financing sources and options. 12.Prepare a draft report summarizing the findings of the feasibility study. 13.|Conduct a public meeting at Bethel and Aniak to present findings contained in the draft feasibility study and solicit public comments. 14.'Prepare a final report following the receipt of comments on the draft report. 3.STUDY METHODOLOGY The feasibility study involved the efforts of several engineering firms and environmental specialists.Bettine,LLC developed the Donlin Creek transmission line route alignment,preliminary transmission line and substation designs,evaluated power supply alternatives,conducted the economic analysis,and prepared the draft and final report.Precision Energy Systems,Inc.developed the designs,construction and operational cost estimates and construction schedules for the Bethel coal-fired plant and combined-cycle combustion turbine power supply alternatives.Two separate reports,one for each power plant alternative,are included in a separate appendix.Dryden and LaRue, Inc.(D&L)prepared cost estimates for the 138-kV Donlin Creek transmission line.In addition D&L prepared cost estimates for a +100-kV DC and a 230-kV AC transmission INTRODUCTION Section II-1.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 line from Nenana to the Donlin Creek mine.These costs will be used in the economic analysis.The engineering firm of LCMF prepared preliminary designs and costs estimates for power plant foundations and fuel storage facilities,which are included in a separate appendix.Electric Power Systems,Inc.conducted electrical systems studies andprovidedareport,which is included in a separate appendix.Travis/Peterson,Inc.and Steigers Corporation provided separate environmental reports addressing basic environmental factors and permitting requirements for the transmission line and power plant,respectively.These are included in a separate appendix. This study assumes the Donlin Creek gold mine would begin full scale mining operations in mid-year 2010,with a peak demand of 70 MW and an average demand of approximately 60 MW.Placer Dome,Inc.has,however,indicated that the mine may be operational prior to 2010.Realistically it will be difficult to permit and construct a coal- fired power plant at Bethel and a 191 mile long transmission line to provide 70 MW of power to the mine site prior to this date.It may,however,be possible to provide power to the mine by mid-2009 if environmental studies and preliminary engineering beginning no later than the first quarter of 2004. Several practical criteria were established to provide a guide in the route selection process,which are discussed in Section IV-1.However,the overriding directive followed for siting the transmission line was to avoid crossing federal lands within the Yukon-Delta National Wildlife Refuge,by placing the power line within the corridor of private lands owned by the various native corporations that are located adjacent to the Kuskokwim River. This study did not prepare an independent power requirements forecast but will instead rely on the forecast prepared in the Calista Region Energy Needs Study,Part I, dated July 1,2002. The economic analysis conducted for this study determines the power cost per kWh associated with each of the various power supply alternatives for a 50-year period, beginning in 2010 and ending in 2060.The economic analysis assumes a 20 year mine life. Methodologies and assumptions used in the study are identified in the applicable sections. -INTRODUCTION . Section JI-1.5 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION ITI Power Supply Feasibility Study Public Draft 03/20/04 SECTION III POWER SUPPLY ALTERNATIVES 1.BETHEL COAL-FIRED POWER PLANT A.BACKGROUND 1.General The primary purpose of this study is to examine the technical and economic feasibility of constructing either a coal-fired power plant or a combined-cycle combustion turbine plant at Bethel along with a 138-kV transmission line from Bethel to the Donlin Creek mine.The generation/transmission system would provide power to the Donlin Creek mine,Bethel and eight other villages located along the path of the transmission line.The firm of Precision Energy Services (PES),located in Coeur d'Alene,Idaho,was retained to provide feasibility level design and cost estimates for constructing the coal- fired plant alternative and the combustion turbine plant alternative.The complete reports from PES for each of these two alternatives are attached as Appendix A and B, respectively.These two reports are summarized in the subsequent pages.A short discussion of the proposed district-heating system is also included.The 138-kV transmission line is discussed in detail in Section IV of this report. This section of the report also briefly discusses several other power supply alternatives that were previously evaluated and determined to produce more expensive power than the Bethel coal-fired generation alternative.However,these alternatives are included for comparison purposes and include: ¢Combined-Cycle Combustion Turbine Power Plant at Crooked Creek ¢Oil Fired *Natural gas fired from a pipeline built from Cook Inlet to Crooked Creek *+100-kV,DC transmission line between mine site and Nenana *230-kV,AC transmission line between mine site and Nenana One additional alternative,a natural gas-fired combined-cycle plant at Crooked Creek,using gas production from the Holitna Basin,is also briefly discussed. Figures referenced in the subsequent discussion,if not located in the text body, can be found at the end of each subsection.Reference drawings are attached after the Figures. BETHEL COAL-FIRED POWER PLANT II-1.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 B.LAND-BASED COAL-FIRED PLANT The power plant would utilize Pulverized Coal (PC)combustion technology.PC is a proven technology that has been used in the USA in the last 40 years and is characterized by high combustion efficiency and low-cost emission controls.Coal pulverized in specially designed crusher/grinders is blown into the boiler's combustion chamber.The coal behaves like a gaseous fuel. Both pulverized coal combustion and fluidized-bed combustion technologies were examined.The pulverized coal combustion technology was selected as the most appropriate for a Bethel based coal-fired plant.See Appendix A for a more thorough comparison of these two combustion technologies. The proposed land-based coal-fired power plant would consist of two atmospheric pulverized coal-fired boilers each powering a 48.5 MW steam turbine,plus one 46 MW diesel-fired simple cycle combustion turbine,for a total installed capacity of 143 MW. The power plant would initially generate approximately 700,000 MWh annually.The two coal-fired steam turbines would provide primary power,with the combustion turbine providing standby/backup and peaking generation.It is estimated that the combustion turbine will generate approximately 3 percent of the annual generation,or about 20,000 MWh per year.The proposed land-based coal-fired power plant facility would occupy approximately 80 acres.Exhaust stack height is estimated at approximately 120 feet. The coal-fired portion of the plant will consist of two separate process lines,each including one boiler.and steam turbine-generator set and ancillary equipment.Each process line and steam turbine-generator set can,however,be operated at a maximum output of 55 MW for moderate periods.A photograph of a modern 100 MW coal plant is shown in Figure IJI-1.1. The Power Plant will include the following primary systems: .Coal receiving and unloading dock. °Coal storage area including stacking and retrieving equipment,and conveyors for delivering fuel to the boilers. .Two pulverized coal combustors with integrated boiler,superheater, economizer and air heater,and feedwater system. °Two steam turbine and generator process lines including switchgear as well as steam condensers with cooling towers and cooling water circulating pumps. .Air pollution control system including baghouse,SCR system,ducting and stack. .Simple-cycle combustion turbine with 3 million gallons of fuel oil storage. BETHEL COAL-FIRED POWER PLANT II-1.2 Nuvista Light &Power,Co.Donlin Creek Mine SECTION ITI Power Supply Feasibility Study Public Draft 03/20/04 °Auxiliary equipment and installations such as loaders,diesel fuel storage tank,stand-by diesel fired combustion turbine,diesel fired boiler for start up and auxiliary steam demand. .Instrumentation and controls,central.control room and motor control center. °Maintenance shop with tools. Buildings for the power plant will be modular steel construction with appropriate thermal insulation.The buildings will house all equipment and systems except for cooling towers. The buildings will also include facilities for the office personnel -locker rooms, lunchroom,etc.The plant may also be partially housed on power barges in which case the on-shore power plant buildings will be reduced to modular structures to house the related needs. 1.Design Philosophy The Bethel Coal-Fired Power Plant design philosophy is based on the following principles: a.Utilize modularized design to the extent reasonably possible to minimize on-site construction cost.This includes the alternative of constructing two power barges in a West Coast port that could be towed to Bethel., b.Utilize a coal with a both a high Btu and low sulfur coritent to minimize both operating and capital cost. c.Construct a power plant with utility grade reliability. d.Construct the coal-fired portion of the power plant with sufficient installed capacity to supply the long term power and energy needs of the Calista region.Regional generation requirements have been determined to be as follows: Required electric power supply at the Donlin Mine MWe 60!(Avg) Transmission line losses MWe 5 Local usage (Bethel,villages)MWe =22 In plant usage MWe 8 Required electric power output,net at transformer MWe 97 1 Estimated at 80%of connected load. BETHEL COAL-FIRED POWER PLANT ; IlI-1.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 2.Site Location The preferred location for Bethel Power Plant is a site approximately one mile south of Bethel in Section 20 of Township 8 North,Range 7 West of the Seward Meridian.The proposed site is located on private lands.Elevation of the site varies between 50 and 100 feet mean sea level.A photograph showing the proposed location of the facility and the associated facility dock,access roads,and potential cooling pond is shown in Figure II]-1.2.The proposed site is located approximately 1000 feet west of the Kuskokwim River.The proposed plant site may be shifted to the east,toward the river, by 500+feet following detailed soil investigations.The dock will be used to offload equipment and materials during and after plant construction and to offload annual coal shipments.The dock will be connected with the site by a road and with the coal storage building by a covered conveyor system.A road will also be constructed from the site to the existing fuel dock area where it will interconnect with Bethel's road system.Two drawings of the site layout are attached at the end of this subsection. The site is also close to a 78-acre pond,which could be utilized for disposal of plant's waste water,mainly inert blow down from the cooling towers,or it could possibly be used as a cooling pond.The pond is located generally southwest of the proposed facility site.Use of a cooling pond rather than forced-air cooling towers could reduce construction costs and could also substantially reduce annual operating costs.The determination of whether to using cooling towers or a cooling pond will be made during the final design and permitting process. A 3-million-gallon fuel tank will also be built at the site to store fuel oil for the combustion turbine. C.BARGE-MOUNTED POWER PLANT A second option that was investigated and evaluated to reduce the high cost associated with constructing a land-based power plant is barge mounting of the power plant.Barge mounting the power-plant is estimated to reduce plant construction cost by approximately $20 million.The barge-mounted coal-fired power plant alternative would occupy two barges.Each barge is 100 feet wide by 300 feet long and has a draft of about 8 feet.Each barge would accommodate a 48.5 MW atmospheric pulverized coal-fired power plant.One of the two barges would also accommodate a 46 MW diesel-fired simple-cycle combustion turbine for standby/peaking generation.As with the land-based coal plant,the total installed capacity for the barge-mounted alternative would be 143 MW.See Figure III-1.2 and attached drawings for conceptual design and site plan forbarge-mounted power plant concept. The barges would be equipped with the intended systems,at a shipyard on the West Coast USA or Canada and shipped on dry dock vessels to the vicinity of Security Cove or Goodnews Bay,Alaska,from where the barges will be offloaded and towed toBethel. BETHEL COAL-FIRED POWER PLANT IJ-1.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 The coal storage and a single 3-million-gallon fuel storage tank would be located on the adjacent river bank directly above the barges,and these would be connected to the generating facilities by a short conveyor and pipeline,respectively.Other auxiliary features of the barge-mounted coal-fired power plant alternative,including the blowdown pond and the electrical switchyard,would also be located in this area,which would occupy approximately 80 acres.The barges would occupy less than 2 acres.Exhaust stack height for the barge-mounted plant is estimated at approximately 120 feet,which will place the top of the stack 60 to 70 feet above the top of the adjacent river bank. The barges would be set in place by digging a channel into the river bank of sufficient width,length,and depth to float the barges into position.Once the barges are towed and pushed into place,an armored berm would be built between the barge channel and the river to protect the barges from ice flows during spring breakup and to provide an earthen platform for unloading supplies.The barges would be located in the floodplain of the river at a location where there is little elevation difference in the bank and the river. Currently barge-mounted power plants include combustion turbines or diesel engines as motive power,working in simple or combined cycle.They are predominant in areas with developing power grids and areas without access to sources of low-cost and clean fuels such as coal and natural gas.Barge-mounting of a coal-fired power plant has not been done yet,however,there are many examples of this being possible,for example: steam ships,and a barge-mounted Kraft pulp plant with a recovery boiler. The U.S.Department of Energy,National Energy Technology Laboratory (NETL)has proposed a similar barge-mounted coal-fired power plant concept using a Pressurized Fluidized Bed Combustor (PFBC)Design.However,the PFBC design represents new and unproven technology.No PFBC plant has ever been built and operated.Due to the substantial unknowns and uncertainties associated with not only the technical performance of such a plant but also the cost of constructing,operating and maintaining a PFBC power plant,it is recommended that PFBC plant design not be used in this project. 1.Transporting Barges to Bethel There are two methods for transporting barges.The first simply involves towing the completed power plant barge from the construction/assembly port to Bethel.Barges towed from construction/assembling port would have to be built to satisfy the Standards and requirements for ocean navigating vessels,including US Coast Guard regulations and other.This requirement makes the barge significantly more costly and heavier due to strength requirements,even though the barges will only make one trip. On the other hand,shipping barges on a "Dry Tow"vessel eliminates all of the above requirements because the power barges are cargo.The navigability requirements of the barges are reduced to those for river shipping;these requirements are significantly less demanding than for ocean-going barges.A "Dry Tow”vessel is capable of BETHEL COAL-FIRED POWER PLANT I-1.5 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 transporting fully loaded barges on its deck.To load the barge on the Dry Tow vessel, the elevator deck of the Dry Tow vessel is lowered below the level of the barge bottom and the barge or barges are positioned over the deck of the Dry Tow vessel.The deck is then elevated to lift the barges above the water line.The reverse occurs to offload the barge(s).A photograph of a "Dry Tow:vessel is attached as Figure III-1.7 Using this scenario,the power plant barges would be Dry Towed from their construction/assembly ports to the vicinity of Security Cove or Goodnews Bay where they would be offloaded and towed to Bethel. At present,practically all dry-dock type vessels are foreign flagged and because of the Jones Act cannot be used for shipping between U.S.ports.From a practical standpoint,the barges would have to be built and assembled in an overseas location, preferably Canada.One company,Jumbo Shipping,has been looking into getting a U.S. flagged heavy lift vessel built in the next few years.Depending on the project timeline, this company may be able to accommodate our needs. 2.Barge Mooring Two options for mooring the barges are being considered.In both options the harbor canal would be trenched so the barges would be out of the main channel of the Kuskokwim River.After the barges are towed and pushed into the canal,the inlet would be sealed off from the main river. The first option involves pumping out the water in the harbor channel and letting the barges settle on the bottom of the canal.A support structure will have to be designed so the barge is settled as deemed vital by the requirements of a steam power plant.Since the bottom of the canal would be below the level of the river,it would be necessary to continually operate pumps to keep the canal free of water. The second option involves letting the barge float on the water in the canal,where the temperature of the water in the canal would be maintained above freezing through the year using waste heat from the plant. The second option is attractive in that this is a steam generation plant and there is a substantial amount of low-temperature waste heat (for instance,from steam condensing)that can be easily utilized for maintaining the water surface free of ice and at a constant level.Proper anchoring and stabilization of the barges would be an important task for barge engineers. For the purpose of mounting the power plant,pre-owned (used)barges can be procured.The structure of the barges will be enhanced appropriately to facilitate mounting of the heavy equipment.Preferably,the construction could take place in one of the U.S.or Canadian West Coast shipyards,such as: BETHEL COAL-FIRED POWER PLANT II-1.6 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 Shipyards on the Coast of the Gulf of Mexico (Texas,Louisiana)have also been considered,however,barges built there will have to be towed through the Panama Canal, where the allowable width of <105 ft precludes the use of dry-dock vessels with 100 foot wide barges set on top.This adds to the significant cost of transportation. Far East shipyards in China (specifically Shanghai,with the world known Shanghai Boiler Works,that manufactures boilers for North American boiler makers,and which is located at the Yangtze River waterfront)or Indonesia may also be a consideration. The barge sizes evaluated for this purpose are 300'x 100'up to 450'x 100'. These barge sizes are presently very popular with the barge shipping companies;as a result,their availability on the pre-owned barge market is almost non-existent.Barge cost is in the range of $2,250 to $2,500 per short ton of barge weight,which translates into $7.5 to $9.5 million per barge.On the pre-owned barge market,appropriate equipment can be purchased at $750,000 to $1,250,000 per barge;repairs,enhancing the structure and preparation for mounting the power plant equipment will cost up to $1,500,000. Effectively,the suitable equipment will cost between $2 million and $3 million.In the Capital Cost estimate,the cost for two barges was assumed at $5 million each plus $2,500,000 for dry shipping. D.TECHNICAL DISCUSSION 1.Coal Selection,Procurement and Transportation -Fuel selection is the most important activity in the development of a new power plant.The cost of fuel is the largest portion of the plant's operating and maintenance cost. The characteristics of the fuel are very important in the selection of the combustion technology;not every fuel is suitable for the most efficient technology.For instance,high moisture coal should not be used in pulverized coal furnaces.The fuel composition, specifically its Sulfur,Nitrogen and Chlorine content,is very important to the selection of emission control systems.Also,the fuel properties have a large impact on the method and cost of storage. a.Coal Selection Eight coals from various mines and seams have been evaluated.The coal cost data has been obtained in the form of budgetary quotes.The evaluated coals include: Quinsam Coal Kennecott Energy,Spring Creek Mine 1.Fording Coal Type A,thermal,Black Bear Mine 2.Fording Coal Type B,thermal,Coal Mountain Mine 3.Luscar Obed Mountain Mine 4.Luscar Coal Valley Mine © 5.Usibelli Coal Mines 6. 7. BETHEL COAL-FIRED POWER PLANT IfI-1.7 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION III Public Draft 03/20/04 Table I]-1.1 8.Kennecott Energy,Colowyo Mine Quinsam,Fording and Luscar are Western Canadian coal mines located in British Columbia.The cost of shipping these coals to a sea port would therefore be lower than that for Kennecott Energy Coal Mines,which are located on the.Wyoming/Colorado border. The most feasible coal is the one that has the highest heating value and the lowest sulfur content,such as the type A thermal coal from Fording's Black Bear seam.The sulfur content is sufficiently low so that no SO,scrubbing is required to perform according to applicable Alaska emissions standards. Comparison of Selected Coals 1 Fording Coal Luscar Usibellt Coat Usibetti Coal 'Sub-bituminous, 2 Type,thermal Coal Val Sub-bituminous,as-|Washed &dried (Black Bear)ey mined EstimatedCompositionand Costs 3 |Heating value,net as received Btu/tb 12,284 10,800 4 THuV as received oun 10,500 5 |Hv Me(moisture free)Btu/lb 43,352 11,520 7,800 6 |MAF (moisture and ash free){Btu 10,800 10,800 TI\c {Dulong)HHV Btu/lb 12,264 10,843 7,168 11,124 9 |Pr 10|Tota!moisture 8.0%10.0%|26.0%12.0% 41|Ash (MF)11.9%10.2%|9.0%9.0% 12]Fixed carbon (air dry)65.0%48.4%29.0%29.0%! 13 |Votatite matter (air dry)23.0%33.2%36.0%38.0% 21 22 |Carbon 71.0%!63.5%45.2%)55.3% 23 {Sulphur 0.29%|0.25%0.20%0.24%| 43 |Coal demand for Bethel 92.8 MW plant district heating 44 |Nat heat demand MM Btu/he 1,041 1,041 1,041 1,041 45 |Steam ¥(baller system)89.1%|88.7%|83.44%86.20% :0.809%86.87%83.44%!82.63% 46 |Bethe!power plant heat energy gross MM Btu/he 1,168 1,200.73 __4,247.20 4,207.27 47 |Required fuel b>95,081 111,178 159,898 114,97848[US tons @86%,reduced summer demand for DH TY 412,300 478,005 687,474 494,344 48 [MT -matric tons @ 99%,reduced summer for DH MT 374,000 433,600 623,700 448,500 50 |Lime supply MOY )[)0 51 |Coat cost52|Cost FOB Sea-going port (MT =matric ton)$/MT 45.00 32,00 19.00 37.90 §3 |Cost of lime I$(MT 54 FoR Westshore T.or Roberta Bank,Vancouver BC,Canada Seward,AK Seward,AK §5 |Shipping to Bethel Inctuding deep sea buk freighter,transioading at Security Cove|$/MT 12.50 12.50 12.50 12,50 56 [Loading at Roberts Bank,Vancouver BC Is (MT 3.00 3.00 |0.00 0.00 57 |Total coal cost Security Cove IS (MT 80.50 47.50 31.50 50.40 sus T 54.88 43.09 28.58 45.72 Lightering to Bethet by Marine Contractor 3 /MT 26.00 26.00 28.00 26.00 'Total shipping &barging To Bethel i$¢MT 86.50 73.50 57.50 78.40 s/US T 78.64 66.82 62.27 69.45 1 |Total fuel and lime cost $/year $32,421,773 $31,939,455 $35,936,118 $34,334,404 2 |Unit cost at Port site (FOB deep water ship)i$7M Btu 179 1.47 4.14 1.84 3 |Total unit cost delivered to Bethel i$7M Btu $3.23 $3.10 $3.36 $3.31 4 |Lightering to Bethel by NUVISTA barges IS 7M $7.60 $7.60 $7.80 $7.60 'Total shipping &bargingTo Bethel Is /MT.$68.10 $55.10 $39.10 $58.00 Tota!cost per US Ton Nuvista Barges $US T $81.78 $49.99 $35.47 $52.62 Total fuel and lime cost Siyear $25,469,400 $23,891,360 $24,386,670 $26,013,000 Coat per MM Btu at 99%$MM Btu +$2.51 $2.29 $2.25 $2.48 Shipping cost savings using Nuvista Barges $(Year $6,952,373 $8,048,095 $11,549,448 $8,321,404 BETHEL COAL-FIRED POWER PLANT Tl-1.8 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION It Power Supply Feasibility Study Public Draft 03/20/04 Black Bear coal also has the lowest content of volatile matter and moisture.This by itself significantly reduces storage and fire prevention costs.According to Westshore Terminals,this coal can be stored without compacting or other major fire preventionmeansforperiodsexceedingoneyear.Young,lignite-type coals (Vsibelli coal)exhibit inherent tendency to localized overheating and auto-ignition after short periods of time. Table III-1.1 compares the cost and certain other properties of Fording-Black Bear coal,Luscar-Coal Valley coal and Usibelli coal.There are two columns for Usibelli coal.The first column is for coal as mined.The second column assumes the coal is "dried”to reduce its moisture content and increase its BTU content from approximately 7,200 Btu/Ib to 11,100 Btu/Ib at an estimated cost of $0.90 per million Btu. PES has carefully investigated the potential for using Usibelli coal rather than Fording coal,The heating value of Usibelli coal,as mined,is 7,168 Btu/Ib vs.12,284 Btu/Ib of Fording coal.In addition we must also take into the account the fact that there is a 5.5%difference in the boiler efficiency,89.1%for Fording coal versus 83.4%for Usibelli coal,due to the higher moisture and oxygen content in the fuel.A power plant operation that required 412,300 tons of Fording coal would require approximately 687,000 tons of Usibelli coal.This fact dictates a much larger (and more costly)coal storage facilities,boilers,ducts,emission control equipment and higher expenses on moving coal,air and combustion gases,which increases capital cost by approximately $35,000,000.If Usibelli coal were dried,to obtain an energy content of 11,100 BTU/b, which would approximate the BTU content found in Luscar coal from Canada,capital cost would increase by less than 5 million dollars. In addition Usibelli coal,as mined,is high in moisture and oxygen content and volatile matter.Coal with a high volatile matter,oxygen and moisture content will naturally produce combustible gas and heat in an exothermic process when stored in undisturbed piles for periods as short as a few weeks.This creates localized gas pockets and hot spots within the coal pile.These hot spots are extremely prone to spontaneous ignition,which in addition to causing a fire in the coal pile,may cause combustible gases trapped in the small pockets within the coal pile to explode. According to Fording,they have stored the Black Bear coal for up to two years without detecting hot spots or auto-ignition of the coal pile.Base on comparable data of other coals (Envirocoal from Indonesia),the Usibelli coal cannot be stored without extensive monitoring and safety measures for a period of more than 60 days. The Luscar-Valley coal and the dried Usibelli coal will need to be compacted to reduce air infiltration into the pile during long term storage.However,when properly compacted it will be possible to store these coals for a minimum period of 9 months,as will be required at Bethel. BETHEL COAL-FIRED POWER PLANT I-1.9 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IT Power Supply Feasibility Study Public Draft 03/20/04 Use of Usibelli coal,as mined,will also increase O&M cost by approximately $500,000 per year.This increase would be the direct result for having to handle the additional volume of Usibelli coal and the constant requirement to locate and uncover hot spots within the coal pile and then re-compact the coal pile.This cost would be reduced to roughly $270,000 per year if the coal were dried.: As a design baseline,the Black Bear coal supplied by Fording (Elk Valley Coal Corporation)will be used.Other coals can be used but at increased capital cost. b.Coal Demand and Storage Requirement The coal demand of the Bethel Power Plant based on using Fording Coal Type A, from the Black Bear Mine is as follows: At 99%availability 412,300 short ton (ST) 374,000 metric ton (MT) At 80%demand 333,170 ST and 99%availability 301,700 MT Since the navigation season on the Kukokwim River is approximately three months,storage capacity must provide space for storing nine months worth of coal usage or approximately 310,500 ST.The balance,approximately 101,800 ST,will be delivered directly to the coal bunkers or used to replenish the coal in storage during periods of waiting for incoming barges. Coal will have to be stored in an enclosed,air-supported or modular steel structure approximately 1400 ft.x 300 ft.x 130 ft.in height.This is a requirement resulting from continuous winds that blow in the Bethel area and the desire to keep the coal pile free of moisture.The average annual wind speed in Bethel is 12.7 mph.A wind rose for the Bethel area is shown in Figure III-1.3.A wind rose displays the percentage of time the wind blows from a given direction with a given velocity.With uncovered outdoor storage,'the winds will pick up coal dust.The estimated amount of dust thatcouldbeblownawayfromanuncoveredcoalpileisupto5%,especially during stacking and reclaiming operations.At eight percent demand,this represents a loss of 17,000 ST or an estimated $1,180,000.The cost of a cover structure,estimated at $7.5 million,will pay for itself,in coal savings,in less than seven years.Equally as important,a covered storage will prevent coal dust from entering and polluting the air-shed.A photograph of an air-supported structure is shown in Figure II-1.4. c.Shipping Coal to Bethel "i.Ocean Transportation Two options of shipping coal from Canada to Bethel were considered.These are shipping coal in barges or shipping coal in larger ocean going freighters: BETHEL COAL-FIRED POWER PLANT TH-1.10 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION ITI Power Supply Feasibility Study Public Draft 03/20/04 Barge Shipping -Barges would be loaded at Vancouver Port,Roberts Bank, or Westshore Terminal,and towed directly to Bethel.After a brief evaluation of this option,it was decided not to proceed with further research for barge shippingasitbecameapparent,at a very early stage,that this approach would resultin thehighestshippingcosts,estimated at $42.550 per ton. Deep-Sea_Bulk Freighters For ocean shipping from the coal ports near Vancouver,BC,Canada it is recommended to employ 35,000 DWT bulk freighters with continuous unloading capabilities.This type of ship will be able to transport 30,000 tons of coal.Five thousand DWT is dedicated to the weight of the ship's own personnel and supplies,fuel,food and other items.The freighters would travel to Security Cove or Goodnews Bay.See Figure II-1.5.Security Cove and/or Goodnews Bay were chosen as the transloading point because waters of the Kuskokwim Bay and the mouth of the Kuskokwim River are too shallow for deep water freighters to enter.Either of these two bays should provide reasonable protection from rough seas. Goodnews Bay is approximately 25 miles closer to Bethel and would be the preferred transloading point.At this transload point the coal will be off-loaded from the freighters into barges and towed to Bethel.The distance from Goodnews Bay to Bethel is approximately 135 miles. The cost of shipping from Vancouver,BC to Security Cove or Goodnew Bay was determined to be in the range of $12.50 per ton.The cost for shipping Usibelli coal from Seward to Bethel via freighter is also estimated to be in this range. ii.Lightering by Specialized Marine Contractors Two options for transporting coal from Security Cove or Goodnews Bay to Bethel to barge have been evaluated as discussed below. Under this option Nuvista would contract with an existing barge company to lighter the coal from Security Cove and/or Goodnews Bay to Bethel.Lightering costs for this option are estimated in the range of $23-24 per ton.The following companies are capable of providing the lightering services. Seabulk Systems,Inc. Crowley Maritime Corporation Bering Marine Corporation,a Division of Lynden Incorporated Northland Services,Inc. Foss Maritime Company BETHEL COAL-FIRED POWER PLANT -1.11 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION I Power Supply Feasibility Study Public Draft 03/20/04 iii.Lightering by Nuvista Light &Power There are significant questions regarding the accuracy and reliability of the quotes provided by the marine contractors for lightering the coal.Therefore,a second option for lightering coal was investigated:The second option is for Nuvista or a subsidiary of Nuvista to lighter the coal from Security Cove or Goodnews Bay to Bethel.Nuvista would purchase 3 (three)pre-owned barges with 10,000 to 12,000 DWT capacity,maximum draft 12.5 feet,and one pre- owned tug boat with a 3000 to 4000 hp engine.The Nuvista transport option results in significant savings.Lightering costs are calculated at approximately $6.90 per ton using this approach. 2.Coal Unloading Equipment Once the loaded barges arrive at Bethel the coal must be unloaded.Three options were examined for unloading the coal. Self-unloading barges -barges that are equipped with unloading equipment.Coal is stowed in large hoppers that discharge onto a conveyor at the bottom of the barge.The conveyor delivers the coal to an elevator (bucket or two-belt conveyor),which discharges the coal to a transporter delivering the coal to a place on the shore most often being a hopper for a subsequent conveyor.This would be the most expensive of the three options as the unloading equipment would be built into each barge.This would increase the weight of each barge and reduce the tonnage that it could carry. Crane _un-loaders -are usually simple and the initial cost is most likely the lowest;however they are relatively slow.Crane unloading rate is in the range of up to 500 ton/br.Evaluation of the system has lead us to conclude that the minimum unloading rate should not be lower than 1,500 tons/hr.The equipment cost of cranes for an application of this size is very close to that of a continuous unloader. Continuous barge unloader A barge unloading system suitable for the application at Bethel would be similar to the Hely-Patterson unloader shown in Figure IlJ-1.6 except the unloader would be mounted on a catamaran rather than installed in a fixed position.It will be capable of off-loading 2,000 TPH.The catamaran and unloader . combination will be towed into position by a.tug each spring and secured to the dock and each fall it will be towed to a slough for winter storage. Although slightly more expensive than cranes,continuous unloaders have many advantages.They are much faster than other unloading methods;continuous un-loaderswillbeabletosustainanunloadingrateof2,000 TPH.Continuous un-loaders require only 1-2 operators to run,thereby reducing manpower costs compared to other unloading methods.Currently the cost of a catamaran mounted un-loader is in the range of 5-7 million dollars. BETHEL COAL-FIRED POWER PLANT I-1.12 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 3.Coal Storage The delivery conveyor from the continuous unloader discharges into a receiving hopper and onto the main coal conveyor to the coal storage yard.For this task a covered belt conveyor 60”wide by the appropriate length will be used.The belt will deliver the coal to the storage yard via a stacking system., The bucket-wheel stacker/reclaimer can reclaim coal from both packed and un- compacted piles;however,being two-in-one systems,it can not stack and simultaneously reclaim.During the shipping season when it will be stacking coal,a portion of the coal flow from the barge unloader will bypass the stacker and be conveyed directly to the coal bunkers for feeding the boilers. Also,as indicated earlier,coal will have to be stored in a covered facility, primarily to,prevent coal fines from being blown and lost due to high winds blowing continuously in the area.Covering of the coal pile will also protect coal from deterioration under the influence of the elements and prevent weathering and absorption of moisture from precipitation.This should eliminate coal-pile runoff and the need for a - sophisticated and expensive water drainage,collection and disposal system. Four options were investigated to house coal.These are Pre-Fabricated Steel Building,Air Supported Structures,Concrete Domes and Aluminum Frame Domes. Most likely either a pre-fabricated steel building or an air supported structure will be used to house the coal.Selection of the most appropriate building will be made during final design phase.°: From the storage building,the coal will be reclaimed and delivered to two bunkers per each boiler via a system with dual conveyors,one conveyor will be stand-by. The conveyors will deliver coal to the bunkers via grizzlies,which will serve as a backup system for filling the bunkers in case of a reclaimer breakdown.There will also be auxiliary feed hoppers that can be used in the event the stacking and reclaiming system is down for maintenance.For this purpose,the plant will be equipped with CAT 980G or comparable front-end loaders. 4.Fire Prevention and Coal Dust Control The coal storage building will also include a fire prevention and suppression system.The most important issue in fire/explosion prevention is controlling coal dust. For this purpose,a detailed procedure will be developed.Prevention of coal dust explosions and fire will be the most important safety precaution undertaken in the Bethel Coal-Fired Power Plant,therefore,the coal storage and handling system will include several dust control methods and equipment. BETHEL COAL-FIRED POWER PLANT IH-1.13 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 5.Description of Power Plant Facilities a.General Description The proposed land-based coal-fired power plant would consist of two atmospheric pulverized coal-fired boilers each powering a 48.5 MW steam turbine,plus one 46 MW diesel-fired simple cycle combustion turbine,for a total installed capacity of 143 MW. The power plant will include two pulverized coal combustors with boilers and auxiliary equipment (superheater,economizer,air heater;fans and blowers for combustion air,flue gas induced draft,and feedwater system).The superheated steam generation and steam turbine system works in simple Rankine cycle without or with reheat.The two coal-fired steam turbines would provide primary power,with the combustion turbine providing standby/backup and peaking generation,. The coal-fired portion of the plant will consist of two separate process lines,each including one boiler and steam turbine-generator set and ancillary equipment.Each process line and steam turbine-generator set can,however,be operated at a maximum output of 55 MW for moderate periods. Under normal operating conditions the steam turbines will provide the required output.If one steam turbine is offline,the remaining steam turbine can be operated at its maximum output of 55 MW and the simple-cycle turbine will be placed on-line to supply the additional output. b.Generation Efficiency Using standard off-the-shelf components in the plant,as described in this section, is calculated to operate at a 31 percent overall thermal efficiency.A kWh of electricity is equivalent to 3,412 Btu.For every kWh of electricity generated,11,006 Btu of fuel, which equates to approximately 0.9 Ibs of Black Bear coal,must be consumed.However, there are many improvements that can be integrated into the final plant design that will increase the plant's overall thermal efficiency to the range of 35-36 percent,with only a deminimus increase in capital costs.These include installing boilers that operate at higher pressures,using a second reheat stage and installing variable speed drives.Efficiency in the range of 40 percent can be achieved using supercritical steam systems.Increasing efficiency is one of the less expensive ways of reducing pollution emissions.Appropriate equipment will be selected during the actual design process to maximize thermal efficiency.The effects of thermal efficiency on power costs will be examined in Section IX.Generation efficiency of the simple-cycle turbine will be in the range of 35 percent. c.Make-up Water Source,Treatment,Filtering and Blow-Down Disposal Total make-up water requirement is estimated at 1,475 gpm.The plant will include a boiler make-up water treatment system,which will include at a minimum,a BETHEL COAL-FIRED POWER PLANT Ti-1.14 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 dual ion bed system.The possible sources of make-up water for the Bethel power plant include: Drilling of water wells.This option may provide water that is low in impurities and would likely require the least treatment.° The second option is drawing water from the Kuskokwim River.This option could prove to be more difficult than drilling wells.Due to the large percentage of suspended and dissolved solids in the river water the cost of treating this water will be substantial. The third option is drawing water from a natural or artificial (built)cooling pond. This option will experience problems similar to drawing water from the Kuskokwim River.Unless the pond is sufficiently deep,water in the pond may freeze over during winter and require thawing.Also,excavation of a sufficiently large pond may be significantly more expensive that drilling a water well or upgrading the quality of the Kuskokwim River water. Water supply may also be a combination of two methods;for instance drawing boiler make up water from a well and obtaining cooling tower make up water from the cooling pond. Geotechnical and hydrological investigations will have to be conducted to determine related items,such as water availability and required treatment. d.'Steam Turbine and Generator System As with the boilers,two trains of Steam Turbine and Generator systems will be included in the Power Plant;each train will consist of: .Turbine 1,HP16 -high speed,high efficiency turbine .Turbine 2,LP190 -synchronous speed turbine receiving lower pressure steam from the HP turbine. .Complete stand-alone digital control system .Cooling Tower System -one per train;fiberglass structure, stainless steel connecting hardware,heavy duty PVC film pack fill, fans,fire-retardant,FRP fan cylinders for velocity recovery,etc. As an alternative to the cooling tower system,the use of once-through condenser cooling should be considered,in which the water will be taken from the pond located south of the plant site in Bethel.This option will be evaluated in the environmental impact study. BETHEL COAL-FIRED POWER PLANT I-1.15 Nuvista Light &Power,Co.--Donlin Creek Mine Power Supply Feasibility Study SECTION ITI Public Draft 03/20/04 e.Environmental Control System The Bethel Coal-fired Power Plant will be built to satisfy stringent ADEC air and water quality standards.With today's technology coal-fired power plants can provide 'mexpensive and environmentally friendly electric power. standards along with the expected performance of the coal power plant. Table II-1.2 lists ADEC TABLE II-1.2 ADEC Performance Standards Alaska State Standard |ExpectedPerformance Comments Sulfur dioxide SO2 |500 ppm dry volume |less than 250 To achieve this performance the ppmdv plant will need to use Fording's Black Bear coal with a sulfur content of 0.29%or an equivalent coal. Sulfuric Acid To prevent precipitation of sulfuric acid the minimum flue gas exhaust temperature will be limited to 272°F. Particulate matter 0.05 gr/dscf '|0.05 gr/dscf To achieve this performance the PM plant will include a cyclonic type collector (single cyclone or multi- cyclone)and a baghouse (filter) type collector. Opacity 20%for less than3 |20%for less than 3 |To reduce opacite excursions the minutes in 1 hour.minutes in 1 hour.|boilers will include acousticcleaningsystemsworking continuously instead of soot blowers,which cause excursions during soot blowing operations. CO None 0.10 Ib/million Btu fired =118 ppmdv NOx None 0.30 Ib/million Btu fired =215 ppmdv CO reduction is achieved by boiler chamber design that will provide a minimum of 0.5 seconds residence time for the combustion gases before entering the water-walled section.The longer the residence time the better probability of CO reacting with oxygen and or using catalytic converter for afterburning CO to CO. BETHEL COAL-FIRED POWER PLANT TH-1.16 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION ITI Power Supply Feasibility Study Public Draft 03/20/04 For NOx reduction,flue gas recirculation can be used,which reduces the amount of free ionized oxygen in the flame zone,thereby reducing the amount of oxygen available for reaction with nitrogen.Selective catalytic or non-catalytic reduction (SCR or SNCR)could also be used to substantially reduce NOx and CO. 1.Effluent Discharge The continuous liquid discharges (effluents)from the plant are: Boiler blow-down water Cooling tower blow-down water Ion exchange regeneration waste water Sanitary (sewage)water The intermittent discharge wastewater includes: Boiler and condenser chemical cleaning solvents Boiler fire-side wash water _ Boiler blow-down,cooling tower blow-down water and ion exchange regeneration waste water are neutralized with chemicals and deposited in a settling pond. Neutralization results in large quantities of precipitating solids,which settle in the settling pond.Water from the pond can be reused in the cooling tower system or can be disposed of to a local waterway -Kuskokwim River or a nearby pond. The settling pond solids will be periodically removed and deposited locally in a landfill or quarry.The solids are neutral and do not require disposal in a sanitary landfill. 2.Solid waste and Sewage Sludge disposal One of the power plant boilers will include a capability to feed and burn local municipal solid waste (MSW)and partially dried sewage sludge excavated from a drying lagoon.The plants Emission Control System will be capable of handling the extremely small additional load,which is in the range of 0.11%of the weight fuel input or 0.03%of the thermal input. To facilitate this feature the plant will need to be equipped with: °MSW and sludge receiving station, °Sorting station to remove tramp metals,rocks and non-combustible demolition waste (concrete pieces) °Shredder °Pneumatic system for conveying and injecting the refuse derived fuel into thefurnace. BETHEL COAL-FIRED POWER PLANT I-1.17 Nuvista Light &Power,Co.Donlin Creek Mine SECTION ITI Power Supply Feasibility Study Public Draft 03/20/04 The Power Plant's solid waste includes ash from coal combustion and general human-generated garbage (municipal solid waste:trash,locker and lunch room waste).If the plant is equipped to burn municipal waste and sludge,it can consume most of the solid waste generated at the plant.If the plant is not equipped to burn waste and sludge, the general waste produced by the plant shall be collected and disposed of by the City of Bethel Sanitary Services. Sanitary water includes only effluent from facilities for the personnel at the power plant.It is recommended that sanitary water disposal is contracted to the sanitary services of the City of Bethel. 3.Ash Handling and Utilization System The Black Bear coal to be utilized in the Power Plant contains on average 11% ash.The content of silica (SiO2)and alumina (AJ,03)in this ash is high;as a result of this,the ash is suitable for the production of concrete aggregate that can be used as a substitute for gravel. The above ash composition is of good quality for utilization both as cement substitute and as filler material.The ash production is estimated at 36,000 tons annually. The ash can be mixed with Portland cement and water to produce an aggregate with characteristics similar to small gravel.It is estimated that approximately 60,000 tons (40,000 cubic yards)of concrete aggregate can be produced annually from the ash generated by the plant.In order to increase to volume of the aggregate,some local sand and gravel could be used to reduce the percentage of this highly cementaceous ash.The specific formula for aggregate production will be determined at a cement laboratory based on physical tests. The system will include: .Pneumatic ash collection system extracting fly ash from various points on the boiler,economizer,baghouse and other.The system will include appropriate low pressure rotary blowers equipped with intake filter/silencer and exhaust mufflers. .Ash silo capable of holding eight-month supply of ash. "Portland cement silo with holding capacity for 3,700 tons. .Agglomerating machine that will produce the aggregate. .Aggregate storage. The aggregate can be produced from ash coming straight from the collection system or from the silo.It is proposed to produce the aggregate seasonally for direct usage locally. f.Standby Turbine System and Diesel Fired Boiler One 46+MW diesel fired combustion turbine,such as an Alstom GTX100 or a BETHEL COAL-FIRED POWER PLANT T-1.18 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 GE LM6000,will provide stand-by and peaking capacity.The system will be activated in case of outage or routine maintenance of one of the steam powered generation process lines,boilers or steam turbine generators or for peaking.As a stand-by/peaking system, the combustion turbine will not include a heat recovery steam generator.The combustion turbine start-up time could be as short as 2 minutes.' A diesel-fired boiler will be installed to provide for start up and auxiliary steam demand,including district heating steam during outage of one boiler.Steam produced by the stand-by boiler will be used at plant start-up for steam blows (cleaning of steam lines),turbine trials and district heating system start-up. g.Instrumentation and Controls,Central Control Room and Motor Control Center The Power Plant will be equipped with all instrumentation and controls necessary for trouble-free operation of the Plant.The central control room (CCR)will include operator stations with color monitors,keyboards,track balls and event and alarm printers.The CCR will also house the output and monitoring devices of the steam turbine power generating system. h.Fire Protection System The fire protection systems will include redundant water pumps including a dieselengine-driven unit.The 100,000-gallon raw water storage tank will serve as a source of fire-fighting water.As an alternative,water from the cooling pond or make-up water well will be used.Appropriate detection and alarms will be included in strategic locations and system actuation will be automatic when and where necessary.For the main electric systems,automatic extinguishers will be used. i.Maintenance Shop Due to the limited capabilities for local fabrication and repair,the plant will have to include a reasonably sized and well-equipped maintenance facility.This facility will be able to service both basic plant equipment and the rolling stock on the premises. It is planned that the maintenance facility will be housed in a land-based building with an area of 100'x 240'.Housing a portion of the shop on the power barges shouldalsobeconsidered.The facility will include appropriate equipment and tools. In addition to the above shop,a rolling stock garage is planned and will be equipped with the necessary equipment to maintain the rolling stock. 'BETHEL COAL-FIRED POWER PLANT TiI-1.19 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 E.REDUCED GENERATION OPTION Under this option a plant with only 80 +MW of coal-fired capacity would be built.This option was developed to explore the economics of an 80 +MW plant ascomparedtothe100+MW plant.The economic comparison Of the two plants is discussed in Section IX.The plant would consist of two atmospheric pulverized coal- fired boilers each powering a 40 MW steam turbine,a 46 MW diesel-fired simple-cycle combustion turbine,plus this option would rely on the existing Bethel diesel plant for 10 MW of diesel generation,for a total installed capacity of 136 MW.In all other respects it would be identical to the coal-fired plant described above.The cost of this reduced capacity plant would be approximately $18 million dollars less than the 100 +MW land- based plant and $13 million less than a 100 +MW barge mounted plant.Power demand would be as follows: Net,at the Donlin Mine .MW 60.0 Available to Bethel &villages MW 8.0 Transmission losses MW 5.0 Plant parasitic power MW 7.0 Total power demand MW 80.0 Subtracting parasitic power used in-plant and line losses,the net available power is 68 MW.The estimated combined demand,in the year 2010,for the mine,Bethel and the villages is 70 MW.To make up the 2 MW generation deficit,the coal-fired plant can be operated at slightly in excess of its nominal output rating of 80 MW.However,as the load continues to increase it will be necessary to operate the existing Bethel diesel plant. F.RELIABILITY The 100 +MW coal fired power plant will be designed to operate with a reliability consistent with a utility grade power plant.Total installed plant capacity will be 143 MW.There will be two independent process lines,each including one boiler and steam turbine-generator set.Each steam turbine-generator set will have a rated design output of 48.5 MW,for a total output of 97 MW under normal operating conditions. Each process line and steam turbine-generator set can,however,be operated at a maximum output of 55 MW for moderate periods of time.One simple-cyéle 46 MW _"standby”combustion turbine will provide hot standby and peaking power and can be -placed on-line in less than two minutes.A reliability analysis performed by PES has determined the availability of the plant to generate at least 100 MW of power at 99 percent,which means the plant will be unavailable to serve the load for 1%of the time. On an annual basis a 1%unavailability rate equates to a period of 87.6 hours per year or 3.7 days per year. Bettine,LLC conducted.an independent reliability analysis to determine the number of hours per year the plant could not adequately serve the mine demand and the BETHEL COAL-FIRED POWER PLANT TH-1.20 SECTION II Public Draft 03/20/04 Nuvista Light &Power,Co.--Donlin Creek Mine Power Supply Feasibility Study total system demand.The results of this analysis are shown in Table [II-3.This basic reliability analysis assumes a forced outage rate of 5%for each of the steam turbines and their respective process line,and a forced outage rate of 2%for the combustion turbine. These are typical forced outage or unavailability rates for well maintained plants.Two alternatives are investigated.The 100 +MW "Base-Case”option-assumes 97 MW of coal-fired generation capacity plus a 46 MW standby/peaking combustion turbine.The 80+MW "Reduced-Generation”option assumes 80 MW of coal-fired generation capacity,a 46 MW standby/peaking combustion turbine and relies on the existing Bethel diesel plant for 10 MW of diesel generation.The analysis also assumes that during forced outage conditions,the steam turbines in the Base-Case option can be operated at a maximum rated output of 55 MW and in the Reduced-Generation option at a maximum rated output of 45 MW.A modified binomial distribution model was used to calculate the number of hours per year the plant would be unable to generate a specified MW output.The results of the analysis are listed in the Loss of Load Expectation (LOLE) table,designated as Table II-1.3.LOLE is the number of hours per year the power system cannot serve the expected system demand.Supporting calculations can be found in Appendix H. Also included in the table is the estimated forced outage time associated with the 190 mile transmission line.This estimate is based on data obtained from Chugach Electric Association.Chugach experiences on average about six outages a year on the three transmission lines,totaling 150 line-miles,that extend between its Beluga powerplantandtheTeelandsubstationlocatedjustsouthofWasilla.?This line section is considered representative of the terrain conditions along the route of the Donlin Creek transmission line.Most of these outages are of short duration,30 minutes of less,and are the result of birds contacting the center phase conductor,which is located within the upper basket of the X-tower formed by the cross-arm and angled upper leg assemblies. Assuming 30 minutes per outage this equates to 6 hours of outage annually for 150 line- miles.For 190 mile transmission line the proportional number of hours would be 7.6 hours or say 8 hours annually. TABLE IZI-1.3 LOSS OF LOAD EXPECTATION IN HOURS PER YEAR Total 100+MW Base-|.80+MW System Case Option Reduced Gen. Demand?T-Line Total Option T-Line Total 50 MW 39 8 47 9 8 17 100 MW 109 8 117 125 8 133 A review of Table III-1.3 reveals that both the Reduced Generation and for the Base-Case alternative can reliably supply a 50 MW system-demand.LOLE is in the range of 1 to 2 days per year.At 100 MW system-demand the calculated LOLE for the ?Source:Dora Gropp,Transmission Dept.,Chugach Electric Association.3 Includes line losses and in-plant usage. BETHEL COAL-FIRED POWER PLANT UI-1.21 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION Il Power Supply Feasibility Study Public Draft 03/20/04 Reduced Generation Case is 133 hours per year.For the Base-Case Alternative,the LOLE for 100 MW system-demand is 117 hours with the transmission line and 109 hours without the transmission line.This equates to an unavailability rate of 1.2%per year as compared to 1.0 percent by PES.Differing methodologies used by PES and Bettine,LLC to predict LOLE has produced these slightly different results.: The above LOLE are representative of the two generation options.A more in- depth reliability analysis will need to be conducted as the project moves from the feasibility stage toward the final design phase.As with any plant design,an acceptablecompromisebetweenreliabilityandcapitalcostwillneedtobeachieved.However,until the Donlin Creek power requirements are better defined,it is pointless to refine the analysis. BETHEL COAL-FIRED POWER PLANT TH-1.22 ii:i}i|fHHEsob.LbSunol Figure Ill-1. of Bethel and Vicinity Showing Proposed Bethel Power Plant Locations Figure Ill-1.3 Bethel Wind RosepAAASARASSAALAAMASSAATAAANADLVARAHA:ca ay teS,Re 5 +Pe&srge "adsipeeortedSt ry »ag Figure III-1.4 -Photo of an Existing Air- Supported Coal Storage Structure FIGURE III-1.5 Location Map -Goodnews Bay and Security Cove toatl MapPone FIGURE III-1.6 Hely -Patterson Barge Unloader FIGURE III-1.7 | Dry Tow Vessel t38 KV T SD Hen rk eet ee UneRotts ; A ambi dee astel? [PortA @ 0.0 nal TFL__SZ, a beeen PRECISION ™BETHEL ALASKA COGENERATION PLANTeReSINC.OVERALL SITE P.O.BOX 1004 HAYDEN LAKE,1D 83835 MAIL:energy@pes-world.com GENERAL ARRANGEM ENTPhone(208)772-4457 Fax (208)762-1113 URL:www.pes-world.com DRAWN BY:TND APPROVED BY:RB DATE)APR 29,2003 THIS DRAWING [S THE PROPERTY OF PES.THE DESIGN [SCALE 1.=1/2 Mi.PLOT SCALE:1=31680 FILE:BT 20089-O00-000---002-A AND IDEAS SHOWN HEREON ARE CONFIDENTIAL AND SHALL DRAWING NO.SHEET: NOT BE COPIED OR DISCLOSED TO OTHERS, OR IN|WHOLE IN PART,WITHOUT WRITTEN PERMISSION FROM PES."BT20089 00-000-002 1 OF1 A REV. )| ic ilsi4 3) os sazi]S Bl-3aHSelaBruce s|Sze - Sees Bea ||» waeizaug oSag).|S84||3#3|Ssaisaf|seggee383]SzeBeeeeRGo 2 HE Re ; yf? acl ,"__} 5/01/03]THO |RS TenantaTHOwe|com [ocad1 ©100:* CATE NBER AT COVED AB 20.EtWTUOUTETTDNPONMIESIONFRcPES. a REVISION Lo) woe IZZa A |(SSUED FORREVIEWANDCOMMENT shareeacvosie0 . a! 7 o/ - _ -f= - °ed -_--? on,"Ay -\ {.---------_--_--_--_--_-------ee + .. AY aN.\ 4 NS . - >\*3 /: \ NY Wa \ he SO Te \ SERVICES INC, PRECISION _P.O,BOX 1004 HAYDEN LAKE,10 63035 ENERGY Phone (208)772-4487 =Fax (208)762-1113 RES. Wed Site:hitp-Muwwwpes-workd.com BETHEL ALASKA COGENERATION PLANT E-malt:energy@pes-workd.com 8 ry. TLE W120000090010038. l38e DATE:AUG.11,2003 wae SITE PLAN, TAT SAL 1-0 939-000-003 400°x 100°BARGE CONCEPT )aesxewe.BT20089 12/03]THO |Re bate Crdcminteed fowe ©[WAS J7Rx00.4"BARGE,GRAPHEC SCALE WAS 30°8/12/03]TO |ReA|FOR REWOW AND COMMENTOLY mun Pe me Se,---,fl125-2 ar MAJOR EQUIPMENT LIST TEM |QTY DESCRIPTION WEIGHT |TEM |QTY DESCRIPTION 'WEIGHT ©1 __|_140r_|bom rncartes euceane CONCASTE S Stem,7 z TAB GOAL TAANSPORT FAN Bs Tonea?iJ COCK FACKITIES -GARGE UNLOADING SYSTEM 420 TONS 2 t BOLEA Bip.1.82 STACK .'190 TONE: *o 2 TRANSFOR war |1__|[nena $00 TOs Czy .TRANSFER worse |7__|0€MOOsL Me.Uumooe TUREeE 100 Tosa*s 2 COAL STORAGE -PLE,130 WIDE x 1,400 LONG (02.875 TORS EACHG '30°C a 1 OE Lassoug TURBINE STACK '80 TONS:NN we 1 _|RECAAMER-UCKET WHEEL STACKERMECLAMIER Toros |2 1 |ASH sTOnMde840 Cin a?«oce ae ME 7__|eooune Tower 00 Tooy3_|CONVEYOR.BTORAGE TO BUNKER TRANSFERS wor |+_|BTAWOBYOOLERANDSTACK PRECISION Ex)THSTER Ci EJ 1 __|Mod OSE FURL STORAGETAC -300 Tose REG Beeae(CONVEYOR .M2 BUNGCER FEED TRANSFER 006 oUF =1__|CO0UNGPonPUMHOUSE SERVICES INC. "COAL BURMA 1067 nO TALL win |on +__|TANC RAW WATER STORAGE 30 OWA 5 48 TAL 260 Toe 7.0,BOX 1004 HAYDEN LAKE.10 83615 ae (COMVEYOR -BUNKER OUTFEED B't LONG wer 2 1 DEMINUMALZED WATER STORAGE 20 DW.2 20 TALL $50 TONE Phone (200)772-4457 Fax (200)782-1413 a 2 __[coweron,8 LOM wor ]3 _]PROCESS PUMP STATION.FEED WATER CRULATION..rons >sue wie Tne Tre E-malt:energy@ipes-workd.com Web She:hip:/hwww.per-world.com| "©_|PULVERGER.ano CesTRORUTION.'TOMS a $__|BOLER SOLOING 250 SPAN 207 La 137 H 2190 Toes z og Oe BETHEL ALASKA COGENERATION PLANTc's 2 OMEN 420 TONS =1 "TUREING BALDING (27 SPAN AZ Lx PTH 1.100 TONS.. g 400'x 100'BARGE CONCEPTBR|GENERAL CONCEPT REVISION O772603 |TNO La*2__|AR HEATER 16 Tos 1_|WATEN TREATMENTICHEMUCALSBURLING07OFANE280La70H 100 Tors GENERAL ARRANGEMENT-PLAN. 7 2 |saonnse wTos EJ 1_|STAND SY SOLER BURDENS TOTAL WT.=8,576T 'A_]FOR REVIEW AND COMMENTOWLY orcs |TNO |PS Toa THO APPROVEDIY.AB DATE:JULY23,2003ry2FORCEDAAFTFAN31TONSry-REVIBION DATE wv OM [SAL wre PLOT SCALE:Set PLE BT290898S90100720 bi]a IMDUCE ORATT FAN eros =©DEMOTES TEMS NOT SHOWN ON TIRE SHEET AAS ALL OT DRANG 00 oan fs}a ownsneanran mina Ta REFER TO PES OWO.Dn.OT20088-01-000-00"BHT?8720089 99.001-002 tor a 4a Nuvista Light &Power,Co.-Donlin Creek Mine .SECTION II Power Supply Feasibility Study Public Draft 03/20/04 SECTION III-2 2.COMBINED-CYCLE COMBUSTION TURBINE PLANT A.LAND-BASED MODULAR PLANT The study evaluates two sites for the location of the Power Plant,one at Bethel and one at Crooked Creek.Two technologies for power generation are assessed.These are 1)generation of power by combined-cycle combustion turbine, and 2)power generation by diesel engines.The power plant will be modularized to the highest possible degree,such that it can be shipped in major assemblies minimizing field installation work.Figures referenced in the subsequent discussions, if not located in the text body,can be found at the end of each subsection. 'Referenced drawings are attached after the Figures. 1.Bethel Combined-Cycle Plant The Modular Power Plant (MPP)at Bethel or Crooked Creek will consist of a combined-cycle combustion turbine plant,equipped with three simple-cycle combustion turbines plus a heat recovery boiler and steam turbine generator.The use of low-speed diesel generation was examined as part of this study,but this alternative was rejected in favor of combustion turbines for reasons subsequently discussed.The Power Plant will use a modular design,to the extent practicable,to reduce on-site construction costs,minimize construction time and facilitate handling and transporting of major equipment.The complete report from PES for Modular Plant Alternative is attached as Appendix B.A photograph of a modern combined-cycle combustion turbine plant is shown in Figure II-2.1. The power plant would burn #2 diesel fuel or possibly propane.The economic impact of firing the plant with diesel fuel oil versus propane will be examined in Section IX.Installed generation capacity at Bethel is 150+2 MW depending whether Alstrom or GE turbines are selected.At Crooked Creek the plant capacity,will be 110 MW.The Bethel Plant plant will generate approximately 650,000 MWh annually,the Crooked Creek plant 550,000 MWh annually.The Bethel plant would consume approximately 32 million gallons of diesel fuel or 50 million gallons of propane annually.The Crooked Creek plant would consume 31 million gallons of fuel oil or 47 million gallons of propane.The large amount of fuel needed to fire the combustion turbine plant would be delivered by barge to the facility dock and pumped to the facility above-ground diesel storage tanks via an above-ground pipeline.The fuel pipeline will be 8 to 12 inches in diameter and will be elevated 2 feet above the ground.The fuel pipeline will parallel the new road between the dock and the plant site mentioned above.Annual fuel storage requirements at Bethel are 25 million COMBINED-CYCLE COMBUSTION TURBINE PLANT IiI-2.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION UI Power Supply Feasibility Study Public Draft 03/20/04 gallons of diesel fuel or 38 million gallons of propane.Annual fuel storage requirements at Bethel and Crooked Creek are essentially the same.Fuel oil would be storedin eight,3.1 million gallon tanks.Propane will be storedin three 13 milliongallontanks.: The Power Plant will include the following primary systems: °Fuel oil receiving and unloading dock. °25 million gallon fuel .oil storage tank farm or 39 million gallons of propane storage. °Three simple-cycle turbines,one heat recovery steam generator and one steam turbine,with switchgear,steam condensers with cooling towers and cooling water circulating pumps. °Air pollution control system including SCR system,ducting and stack as required. °Auxiliary equipment. .Instrumentation and controls,central control room and motor control center. °Maintenance shop with tools. Buildings for the power plant will be modular steel construction with appropriate thermal insulation.The buildings will house all equipment and systems except the cooling towers.The buildings will also include facilities for the office personnel -locker rooms,lunchroom,etc.The plant may also be partially housed on power barges,in which case,the on-shore power plant buildings will be reduced to modular structures to house the related needs. 'a.Design Philosophy The Bethel Power Plant design philosophy is based on the following principles:a 1.Utilize modular design to the extent reasonably possible to minimize on- site construction cost. 2.Construct a power plant with utility grade reliability. 3.Construct the power plant with sufficient installed capacity to supply the long term power and energy needs of the Calista region.The region's generation demand with the Donlin Creek mine was determined to beasfollows: COMBINED-CYCLE COMBUSTION TURBINE PLANT TT-2.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 Required electric power supply at the Donlin Mine MWe 60! (Avg) Transmission line losses .MWe 5 Local usage (Bethel,villages)"MWe 22 In plant usage MWe 3 Required electric power output,net at transformer MWe 92 a.Ifthe plantis constructed at Crooked Creek to servere only the mine load,the demandis as follows: Required electric power supply at the Donlin Mine MWe _60 (Avg) | Transmission line losses MWe _0.5 Local usage Crooked Creek MWe 0.5 In-plant usage .MWe 3 Required electric power output,net at transformer MWe 64 b.Site Location The preferred location for the Bethel Power Plant is a site approximately one mile south of Bethel in Section 20 of Township 8 North,Range 7 West of the Seward Meridian.The proposed site is located on private lands.Elevation of the site varies between 50 and 100 feet mean sea level.A photograph showing the proposed location of the facility and the associated facility dock,access roads,and potential cooling pond is shown in Figure III-1.2.The proposed site is located approximately 1,000 feet west of the Kuskokwim River.The proposed plant site may be shifted to the east, toward the river,by 500+feet following detailed soil investigations.The dock will be used to offload equipment and materials during and after plant construction and to offload annual fuel shipments.The dock will be connected with the site by a road and with a 25 million gallon fuel oil tank farm or a 39 million gallon propane tank farm by a fuel pipeline that will be elevated 2 feet above the ground.A road will also be constructed from the site to the existing fuel dock area where it will interconnect with Bethel's road system.Two drawings of the site layout aree attached at the end of thissubsection. The site is also close to a 78-acre pond,which could be utilized for disposal of plant's waste water,mainly inert blow down from the cooling towers,or it could possibly be used as a cooling pond.The pond is located generally southwest of the proposed facility site.Use of a cooling pond rather than forced-air cooling towers could reduce construction costs and could also substantially reduce annual operating 'Estimated at 80%of connected load. COMBINED-CYCLE COMBUSTION TURBINE PLANT II-2.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 costs.The determination of whether to use cooling towers or a cooling pond will be made during the final design and permitting process. An alternative location for the plant is Crooked Creek,AK,about 150 miles up river from Bethel.There are no reliable ground condition data;therefore a full geotechnical study of the ground conditions will be required.However,an onsite examination of the borrow pit located at Crooked Creek indicates the soils consist of fractured rock,sands and silts.Based on these examinations it is expected that the soil conditions at Crooked Creek will be substantially improved over-those at Bethel. B.BARGE-MOUNTED POWER PLANT A second option that has been investigated and evaluated to reduce the high cost associated with constructing a land-based power plant is barge mounting of the power plant.Barge mounted combustion turbine power plants are common.A barge- mounted power plant is suitable for Bethel,but not Crooked Creek.Barge mounting the power-plant is estimated to reduce plant construction cost by approximately $11 million.The barge-mounted power plant alternative would occupy one barge 100 feet wide by 350 feet long.The estimated cost for a refurbished barge of this size is$4.5 million.As with the land-based turbine plant,the total installed capacity for the barge-mounted alternative would be 150 MW.The barge mounted turbine plant - would be sited in the same location as the barge-mounted coal plant shown in Figure Il-1.2. The barge would be equipped with the intended systems at a shipyard on the West Coast USA or Canada,and shipped on dry dock vessels to the vicinity of Security Cove or Goodnews Bay,Alaska.At this location the barges will offloaded and towed to Bethel.It may be possible to install the cooling towers on the barge(s). This decision will be made during the engineering design phase. Fuel storage would be located on the adjacent river bank,directly above the barges,and these would be connected to the generating facilities by a short conveyor and pipeline,respectively.Other auxiliary features of the barge-mounted power plant alternative,including the blowdown pond and the electrical switchyard,would also be located in this area,which would occupy approximately 80 acres.The barges would occupy less than I acre. As with the barge-mounted coal plant,the barge would be set in place by digging a channel into the river bank of sufficient width,length,and depth to float the barges into position.Once the barge is towed and pushed into place,an armored bermwouldbebuiltbetweenthebargechannelandtherivertoprotectthebargesfromiceflowsduringspringbreakupandtoprovideanearthenplatformforunloading COMBINED-CYCLE COMBUSTION TURBINE PLANT III-2.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 supplies.The barges would be located in the floodplain of the river at a location where there is little elevation difference between the bank and the river. The barge would be transported to Security Cove or Goodnews Bay by a Dry Tow Vessel.1,off-load and then towed to Bethel,in the same manner as described in Section III-1 for the barge mounted coal plant.Barge mooring options would be the same as for the barge mounted coal plant. C.©TECHNICAL DISCUSSION 1.Fuel Selection,Procurement and Transportation Fuel selection is the most important activity in the development of a new power plant.The cost of fuel is the largest portion of the plant's operating and maintenance cost.The characteristics of the fuel are very important in the selection of the combustion technology;not every fuel is suitable for the most efficient technology.The fuel composition,specifically its sulfur content,is very important to the selection of emission control systems., TABLE III-2.1 Fuel Costs (Prices as of Jan 30",2003) Fuel cost per MM Btu gross.|Btw/Ib $a |SMM Btu]$/gal incl |59a peu |S gal incl rariAllBtu/b or gallon values are Btu/gal Ib /gal at reFa excl _|shipping to in Bethel shipping to shippin.aNETLHV"TY)shipping |Bethel cc re Diesel Fuel No.2 (TESORO)|36°34 7.07 0.85 6.53 1.04 7.99 1.25 9.60 Diesel Fuel No.1 gross Patt 6.74 0.90 719 1.09 8.71 130 10.39 Or 28%Oil (DF1 75%,106679 6.86 0.87 6.87 1.06 8.37 127/'10.03 Jet B 909 6.30 0.88 1.19 1.07 9.47}1.28]11.33 NASA).FUEL (WILLIAMS 3.360 7.15 0.87 6.58 1.06 8.03)1.265 9.63 1P-4 eat 6.30 0.87 7.69 1.06 9.36 127)11.22 19,743Naphthaeon 6.09 0.82 6.82 1.01 8.40 122]10.14 Heating fuel Product Nr.43 13630 6.96 0.86 6.79 1.05 8.29 1.26 9.95 Propane feaon 4.20 50 10 65 7.65 80 9.41 a.Comparison of Various Fuels Table II-2.1 summarizes the evaluation of various applicable fuels for the MPP.All of the listed fuels can be used for firing combustion turbines.All fuelsexceptNaphthacanbeusedtofiredieselengines.The list was put together as a result COMBINED-CYCLE COMBUSTION TURBINE PLANT TH-2.5 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 of evaluating various fuels.Some fuels with prices significantly above the indicated range were not included. Other fuels that could be used have not been included due to their low availability and/or high cost.For example fuel oil No.4 could be a better fuel than DF2,however,its availability in Western Alaska is low,therefore,it is moreexpensive,expressed in $/MM Btu than DF2. The evaluation presented in Table [I-2.1-is reduced to the common denominator of delivered cost per million Btu for each fuel..7 As indicated in Table III-2.1,Diesel Fuel No.2,Fuel Oil No.2 and propane are the most feasible fuels.In addition to excellent combustion properties (heating value,density,flash point),these fuels have good transport properties (low viscosity). The sulfur content of the diesel fuels is limited to 0.5%;however,the sulfur content ©of the Tesoro DF2 is typically in the range of 0.1%.The low percentage of sulfur results in low SQ:concentration in the flue gas;thus,expensive flue gas desulfurization systems (FGD)are not needed.Emissions that are significantly below standard can be used as environmental credits to offset other pollution sources of the company or to trade with other companies.Propane will produce the lowest emissionsofanyofthefuelslistedinthetable. b.Fuel Shipping 1.Fuel Oil Transporting the fuel oil from Cook Inlet or West Coast USA/Canada to Bethel or Crooked Creek requires the following steps:(1)linehaul barge transportation from the supply source across open ocean and up the Kuskokwim River to Bethel,(2)off-load and temporary storage at Bethel,and (3)transfer of fuel to smaller river barges and delivery to':Crooked Creek.The shallow nature of the Kuskokwim River above Aniak (between Bethel and Crooked Creek)provides the greatest challenge,both physically and financially,to delivering fuel to Crooked Creek.The cost estimate for delivering 32,000,000 gallons of fuel to Crooked Creek, using specialized shallow-draft tugs and barges between Bethel and Crooked Creek is approximately $12,800,000,not including fuel cost.Delivery of the same quantity of fuel oil to Bethel will cost approximately $6,720,000 less -a large incentive for the Bethel location. Both Yukon Fuel Company and Crowley Marine each operate 10 million gallon tank farms in Bethel and with some alterations these tank farms could serve as a safety cushion in case unforeseen events. COMBINED-CYCLE COMBUSTION TURBINE PLANT IIT-2.6 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 Diesel fuel costs contained herein are based on the assumption that Cook Inlet or the West Coast would be the source of most of these products.Depending on world and domestic market conditions,bringing tanker ships into Dutch Harbor, discharging their cargo into shore-based storage and lightering the product to Bethel may be a viable alternative. While the marine operations companies believe that it is possible to move the required fuel volume from Bethel to Crooked Creek,the operators are nevertheless concerned about the practicality of fitting all of the additional traffic onto the river. Fuel barges are much more efficient than freight barges because of their lack of need for deck strength and unloading equipment,and further,lend themselves more easily to rafting.The scenarios proposed by Yukon and Crowley assume that they can raft up to four barges per tug.Any freight operation will be hard pressed to handle morethantwobargespertug.The fuel shipping operations will be conducted annuallybetweenJune.1*and September 30".The project owner may want to consider purchasing barges and tugs. 2.Propane Propane will be delivered to either Security Cove or Goodnews Bay by deep- draft tankers..From these locations the propane will be transloaded into a propane barge and towed by tug boat into Bethel.Two propane barges with a capacity of 3- 3.5 million gallons each,and a single tug will be needed to lighter the 55 million gallons of propane required annually.As with fuel oil,shipping operations will beconductedannuallybetweenJune1*and September 30". If the power plant were located at Crooked Creek,demand would be reduced to 50 million gallons annually.Delivery to Cooked Creek would be by 4-6 smaller river-barges and two tugs.Propane would be transloaded from the tankers into smaller river-barges and towed directly to Crooked Creek.The estimate of additional cost of delivering a gallon of propane to Crooked Creek as compared to Bethel is twelve cents per gallon or $6,000,000 annually for 50 million gallons.As with fuel oil,this is a large incentive for locating the power plant at Bethel. c.Fuel Receiving and Storage System 1.Fuel Oil The Fuel Receiving and Storage System would include a fuel barge off- loading dock with a marine header located on the west bank of the Kuskokwim River at Bethel or the north bank of the river at Crooked Creek.The dock design was developed by Peratrovich,Nottingham and Drage,Inc.for the Donlin Creek MineLateStageEvaluationStudyandproposedbyLCMFLLC.An 8-inch pipeline would connect the marine header to the bulk fuel facility.A bulk fuel tank farm facility COMBINED-CYCLE COMBUSTION TURBINE PLANT I]I-2.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION UI Power Supply Feasibility Study Public Draft 03/20/04 would consist of approximately 25 million gallons of fuel storage at Bethel and 22 million gallons at Crooked Creek.This equates to a nine-month supply of fuel at either Bethel or Crooked Creek.A fuel reserve of 3.2 million gallons (1 tank)will becreatedinthefirstyearoffuelshipping.The tank farm will consist of eight insulated tanks at Bethel and seven at Crooked Creek,each 120 feet in diameter and 40 feet high with a nominal storage capacity of 3.2 million gallons.The tanks will be heated with waste heat from the heat recovery system of the prime movers to keep the fuel above the specified minimum temperature of 20°F.A 100,000 gallon insulated intermediate fuel tank will be located near the power plant.The tank wii be heated to the temperature of 70°F to improve fuel handling and injection into the engines of the prime movers.A transfer pump will deliver the fuel from the bulk fuel tank facility headers to the intermediate storage tank via a 4-inch delivery pipe insulated with removable panels.A standby transfer pump will also be included.The fuel tanks will require 121,000 Btu/hr,averaged annually to maintain the minimum internaltemperatureof20°F.The intermediate fuel tank will require 7,330 Btu/hr averaged annually,to maintain the 70°F internal operating temperature.The heat will be provided by power plant the heat recovery system.Specific information relating to tank design and construction is provided in the Report:Site Development,Earthworks -Foundations and Bulk Fuel;Conceptual Design Report By LCMF,LLC. 2.Propane As in the fuel oil option,the propane barge would off-load at a marine header located on the west bank of the Kuskokwim River at Bethel and the north bank of the river at Crooked Creek.A pipeline will connect the marine header to the fuel storage facility.A bulk propane tank farm would store approximately 39 million gallons of fuel at Bethel or 34 million gallons at Crooked Creek.This equates to a nine-month supply of fuel at either Bethel or Crooked Creek.The tank farm will consist of three un-insulated tanks,each with a storage capacity of 13 million gallons.Heating coilswillbeplacedintheoutletofoneofthetankstowarmthepropane,should ambientairtemperaturedropbelow-40°F.A transfer pump will deliver the fuel from thebulkfueltankfacilitytotheturbines. 2.Description of Power Plant Facilities a.General Description The Modular Power Plant (MPP)at Bethel will consist of a combined-cycle combustion turbine plant,equipped with three simple-cycle combustion turbines plus a heat recovery boiler and steam turbine generator.The combustion turbine-based plant is a 2-on-]non-reheat combined-cycle Power Plant designed to generate the required electrical power with one train (CT and HRSG)out of service.The normal plant operating configuration will consist of two combustion turbine generators, COMBINED-CYCLE COMBUSTION TURBINE PLANT WY-2.8 . Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 (CTG),one dual-pressure-level,HRSG with the option of being duct-fired (HRSG), one induction/condensing steam turbine-generator (STG). The use of low-speed diesel generation was examined as part of this study, but this alternative was rejected in favor of combustion turbines for reasons subsequently discussed.The power plant will use a modular design,to the extent practicable,to reduce on-site construction costs,minimize construction time and facilitate handling and transporting of major equipment.Installed generation capacity will be approximately 150 MW if the plant is built at Bethel and 110 MW if built atCrookedCreek.Each combustion turbine will be fitted with a generator driven directly by the turbine's shaft through a gear reducer.Exhaust gases from each CT are directed via a collector duct to one HRSG for steam generation.The turbine exhaust gases can be discharged via a diverter damper to the atmosphere.This is required in case the steam turbine cannot receive the full design flow of steam or the STG is shut down. Under normal conditions,the power plant at Bethel will operate with 2 GTX100 or LM6000 combustion turbine generators +1 HRSG +1 Steam turbine -generator to achieve nominal output with one stand-by GTX100/LM6000 system. When the steam turbine is unavailable due to repair/maintenance all three GTX100/ LM600 machines can operate in simple cycle configuration to achieve the nominal output. At the Crooked Creek location,under normal conditions two GTX100 or LMG6000 turbines +1 HRSG +1 Steam turbine generator will provide the required power output.When the steam turbine is unavailable,the two GTX100/LM6000 machines can operate in simple cycle configuration to achieve the required output. b.Prime Movers .Based on the design philosophy discussed above the following arrangements of prime movers as listed in Tables III-2.2 and 2.3 were selected for examination: COMBINED-CYCLE COMBUSTION TURBINE PLANT TiI-2.9 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION HI Power Supply Feasibility Study Public Draft 03/20/04 TABLE III-2.2 Bethel Power Plant Alternatives :Total Installed Option Description 'Capacity in MW 1 3 each,Alstom 42 MW,simple-cycle combustion turbines +one heat recovery boiler +one 25 MW steam 151 turbine 2 3 each,GE LM6000 46.5 MW,simple-cycle combustion turbines +one heat recovery boiler +one 10.6 MW steam 150turbine, 3 6 each,MAN B&W 18V48/60,18.4 MW diesel generator 110 sets 4 7 each,Wartsila 18V46/60,16.5 MW diesel generator |-116 sets TABLE I-2.3 Crooked Creek Power Plant Alternatives Total Installed Option Description Capacity in MW 1 2 each,Alstom 42 MW,simple-cycle combustion turbines +one heat recovery boiler +one 25 MW steam 110 turbine 2 2 each,GE LM6000 46.5 MW,simple-cycle combustion turbines +one heat recovery boiler +one 10.6 MW steam 104 turbine 3 5 each,MAN B&W 18V48/60,18.4 MW diesel generator 92 sets 4 6 each,Wartsila 18V46/60,16.5 MW diesel generator 99 sets c.Comparison of Combustion Turbines with Diesel Engines Combustion turbines have become a widely accepted technology for producing power,especially when there is a need for small efficient power plants working in the combined-cycle.Diesel engines have been proven over numerous years as a reliable source of power in Alaska.Both technologies demonstrate advantages and disadvantages,as outlined below. COMBINED-CYCLE COMBUSTION TURBINE PLANT III-2.10 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION OI Power Supply Feasibility Study Public Draft 03/20/04 1.Combustion Turbine Advantages a.High Efficiency when applied in the combined-cycle The exhaust gas temperature in a combustion turbine is very high,in the range of 900°F to 1100°F,which makes recapturing the heat for cogeneration and production of additional power in a steam turbine relatively easy.Typical combined-cycle efficiencies are in the range of 48-55 percent.In the case of the MPP,where there is need for recovering low temperature heat for tank and space heating,the thermal efficiency depends only on the minimum allowablestacktemperaturedeterminedbytheSO,content.In the MPPa total thermalefficiencyof84%is possible. b.High Reliability Combustion turbines are well known for their excellent reliability, approaching 100%(see attached charts for the GE LM2500 turbine,- Appendix).The reliability of GE's LM6000 and Alstom's GTX100 is in the same range. c.Multi-Fuel Capability Combustion turbines offer the abilityto burn various fuels ranging from natural gas,propane,Naphtha and diesel fuel.Relative efficiency remains comparatively consistent for all fuels and only varies with the heating value of the fuels.The multi-fuel capability makes the CT a reliable choice for Alaska, where during certain times some fuels may not be readily available. d.Low Weight Combustion turbines exhibit low unit mass per MW output,especially when compared with diesel engines. 2.Combustion Turbine Disadvantages a.Lower Efficiency The combustion turbine exhibits a lower efficiency when operated in simple cycle as compared to diesel engines.For a combustion turbine plant to operate at peak efficiency it must be operated as a combined-cycle. COMBINED-CYCLE COMBUSTION TURBINE PLANT II-2.11 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 b.Maintenance Requires and experienced and trained staff.Combustion turbines require specialized parts,which are only obtainable from the manufacturer. 3.Advantages of Slow Speed Diesel Engines a.High Efficiency Slow-speed diesel engines,operating at 514 RPM,offer the best simple cycle thermal efficiency of any technology readily available.This means thatevenwhentheheatrecoverysystemisinoperable,the engines can operatewith48%efficiency.Thisis much higher than the combustion turbines,whichhaveasimplecycleefficiencyof37%. b.Multi Fuel Capability Slow speed diesels are able to burn every fuel we have investigated except Naphtha.Again,since fuel availability may change in a remotelocationlikeBethel,thisis a benefit. 4.Drawbacks of Diesel Engines: a.Weight The Diesel engines are extremely heavy,which means moving them on and offsite will require very large cranes.The 18 MW diesel engines evaluated in this study (18V46 or 18V48)weigh in excess of 260 tonnes (570,000 Ibs)each, or roughly 16 tons of weight per MW of output,which makes moving them difficult.For comparison;a combustion turbine of twice the output weighs less than 40 tons or roughly one ton of weight per MW of output. b.Foundation construction cost Foundation costs are closely tied to the weight and vibrations generated by the engines.Due to their low rotational speed in the range of 514 RPM,their low frequency vibrations are significantly closer to the natural frequency of the support structures and more likely to cause resonance.The foundations required for the diesels must be highly engineered;they are significantly larger and more .complicated than those for CTs.There will also be a need for an increased number of piles to account for the additional weight and vibration loads._ COMBINED-CYCLE COMBUSTION TURBINE PLANT II-2.12 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 c.Lower Combined-Cycle Efficiency In combined cycle with district heating,the thermal efficiency of the dieselsislowerthanacombinedcyclecombustion'turbine arrangement.This is due to the lower temperature exhaust heat available from the diesels and large losses in the lubricating oil and jacket water cooling systems.With the highest possible degree of waste heat recovery,the thermal efficiency of the system with the diesel engine is up to 10%lower than the equivalent thermal efficiency of a combustion turbine applied in the combined cycle. d.Lubrication Oil Slow speed diesels require massive amounts of lubrication oil to operate.At full load the lubricating oil consumption is 0.8 gram/kWh (0.00176 Ib/kWh), which for the Bethel located plant operating at average 80%capacity will amount to 556 tons,over 3500 barrels of lubricating oil per year. e.Maintenance Diesel engines require more maintenance than combustion turbines.This means that there is more downtime associated with each engine and more staff will be required. f.NOx Diesel engines generate large quantities of NOx in the range of 940 to over 1,000 ppm.Even if a SCR system is used on the engine,a system which is both capital and operating cost intensive,it cannot sufficiently reduce the NOx performance to the level the combustion turbine,which is in the range of 35 ppm vol.This performance is guaranteed by both GE and Alstom without an SCR system. , d.Comparison Summary Experience in other Northern countries,such as Sweden,Finland,and Iceland,has established that combined cycle plants are winning the market against diesel engines.The significantly lower weight of combustion turbine plants makes them much easier to transport and install at Bethel or Crooked Creek.Both Chugach Electric Association and Anchorage Municipal Light and Power,the two major generating utilities in Alaska,generate their power usingcombined-cycle generation.Experience shows that diesel engines require substantially more maintenance and continuous supervision by mechanics andoperators,whereas,combustion turbines can work with only once-a-week supervision.The diesel engines require a staggering amount of lube oil,while COMBINED-CYCLE COMBUSTION TURBINE PLANT IWI-2.13 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IOI Power Supply Feasibility Study Public Draft 03/20/04 turbines require almost none.Diesel produce substantially more pollutants, especially NOx.Because combined-cycle technology has several advantages over diesel generation and few disadvantages,it has been selected for generating the power needs of the Donlin Creek mine and the Calista region. e.Comparison of the Alstom GTX100 &GE LM 6000 Turbine The turbines are comparable in size -the rated Alstom CT output is 42 to 43 MW,the equivalent output of GE's LM6000 is 46.5 MW. The net heat rates in Btu/k Wh generated differ somewhat:-GTX100 7,683 Btu/kWh (at LHV), -LM6000 8,323 Btu/kWh (at LHV) The Alstom GTX100 machine has been engineered for the specific purpose, combined-cycle power generation.The GE LM6000 machine is aero-derivative which means that the original design objective was an aircraft engine,where the weight and turbine shaft output are the predominant requirements.Ability to work in the combined-cycle was not among the objectives during the design phase. In the proposed Alstom system the generated steam is routed to a double steam turbine,which drives the generator.The high-pressure steam supplies the HP turbine,and the low-pressure steam supplies the LP turbine.Up to 165,000 Ib/hr (in : winter)of steam is extracted for district heating.The HRSG also has a supplementary liquid fuel -fired duct burner section,which will allow the steam output to be increased if the DH demand increases above available steam supply.For the GTX 100 Turbine,the heat rate remains practically constant when the turbine is loaded _above 73%. The LM6000 turbine reaches its highest efficiency/lowest heat rate at almost 100%of its output capability,whereas the GTX100 turbine maintains a steady heatrate/efficiency between 73%and 100%nominal capacity. The Alstom machine is built for stationary duty therefore it is heavier than the LM6000.However,the GTX100's are more efficient over a wider range of operating loads. Price wise,the LM6000 is about $680,000 ($16,000/MWe)less expensive than the GTX100.The cost difference on 3 turbines,of $2,040,000 will be paid off by fuel savings within 6 months. COMBINED-CYCLE COMBUSTION TURBINE PLANT III-2.14 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 f.Heat Recovery Steam Generator System The Alstom HRSG will produce superheated steam using heat from the exhaust stream of the GX100 turbines.The generated steam is routed to high and low pressure sections of the steam turbine,which drives an electric generator through a reduction gear box.Maximum output is 25 MW,which requires the exhaust stream from two GTX100 turbines. GE proposed an unfired HRSG,single-pressure,two drum,natural circulation, top supported unit.Heat absorption surfaces will be mounted in factory-assembled modules to facilitate construction.Output is 10.6 MW at full duct firing,which requires the exhaust stream from two LM6000 turbines. g.Steam Turbine and Generator Module Factory assembled,complete with steam inlet valves and servo motors, piping,instrumentation and wiring to junction boxes.The STG will be supplied with standard stand-alone control system handling all closed and open loop turbine controls. h.Steam Condensing (cooling)System Water for the cooling towers will either be drawn from wells or the river.As an alternative to cooling towers,the cooling system may consist of once-through water cooling from a nearby pond in Bethel.Although the once-through cooling system is attractive from the cost and operation point of view,it may have environmental drawbacks,which will need to be addressed in environmental reports. A once through cooling system could reduce construction costs and lessen plant parasitic power. i.Demineralizing System Two (2)100%makeup water demineralizer systems with capacity of 50 USgpm each will be provided.The systems will include a 100,000-gallon makeup water storage tank from where makeup is pumped to the deaerator.The system will also provide,if required,water for injection in the CTG to control NOx emissions. j-Phosphate Feed System .Phosphate feed to the HRSG steam drum will be controlled to maintain thedesiredphosphateresidualandalkalinityintheboilerwater. COMBINED-CYCLE COMBUSTION TURBINE PLANT TH-2.15 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 k.Instrumentation and Controls Including the DCS System The combustion turbine generators and steam turbine are controlled through an advanced distributed control system (DCS)consisting of an ABB Advant DCS equipment package.The Advant system is designed to provide automated start-up and shutdown of the CTGs and the STG from the control room.The DCS provides supervisory oversight,monitoring,and set point regulation for local controls devices. The supervisory function allows operation of major plant processes and equipment from the local control room.Processing units function independently and the exchange of signals across the communications network for control purposes is avoided wherever possible.Controls for the District Heating system and the BOP systems will also be integrated into the DCS system. The CTG will be designed for a "pushbutton”start locally or from the control room.Its operation is fully automatic.The remote control from the control room is accomplished from the plant control system CRTs via a digital link from the CTG control system.The plant control system logs analog and digital data.Under abnormal conditions the CTG output may be lowered for short durations;during that time,the units will operate at a lower efficiency. All required plant parameters would be monitored and indicated,alarmed and/or recorded in the control room to facilitate the plant operator with control of the plant.The gas turbine will be interfaced to the plant control system for monitoring and trending. 'L Environment Protection System The Environment Protection System of the combustion turbine-driven Modular | Power Plant is simple and requires little or no controlling systems to maintain highestperformanceinAlaska.The Modular Plant will not generate emissions above the best performance of other type power plants.As a matter of fact,the factual emissions will comply with the BACT philosophy (best available control technology).It will generate practically no hazardous liquid or solid waste. 1.Emissions to the Ambient Air Alstom Power as well as GE Power are ready to guarantee emissions as listed below using Diesel No.2.The following table is the performance guarantee issued by Alstom Power.. GTX100 AEV Burner System NOx ppm vol at 15%O2 35 Co ppm vol at 15%O2 5 COMBINED-CYCLE COMBUSTION TURBINE PLANT TII-2.16 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION OI Power Supply Feasibility Study Public Draft 03/20/04 UHC -ppm vol at 15%O2 5 VOC ppm vol at 15%O2 4 PM10 mg/Nm'*8 SO,ppm vol at 15%O2 +<200 UHC Unburned hydrocarbons;components are measured as C3Hg VOC Non-methane,Volatile organic compounds; components are measured as C3H¢ GE Power Systems'stated performance is as follows: NOx ppmdv 42 NOx Ib/hr 53 CO ppmdv 6 CO Ib/hr 5 HC ppmdv 2 HC Ib/hr 1 SO,-ppm <200 The GE values are based on dry volume (commonly used in the USA), whereas Alstom is based on total volume (commonly used in Europe).The values are comparable;practically the same. Neither NOx nor CO emissions need to be controlled.For comparison,the performance of diesel engines installed in Alaska without a tail-end treatment systemsisintherangeof900to1,000 ppm vol.Diesel engines even with a tail end controlsystem-Selective Catalytic Reduction (SCR)do not perform as well as thecombustionturbines. Sulfur dioxide (SO2)emissions depend entirely on the sulfur content in the fuel to be used in the Plant.The selected fuel (DF2 supplied by Tesoro)has an average measured sulfur content of 0.1%-one fifth of the permitted value. Particulate matter is produced from the incomplete combustion of fuels, additives in fuels and lubricants,and worn material that accumulates in the engine lubricant.These additives and worn materials also contain trace amounts of various metals and their compounds,which may be released as exhaust emissions. As the Alstom performance guarantee,shows,the PM emissions from aGTX100turbineisintherangeof8mg/Nm'.The most stringent PM emissionstandards(for hazardous waste incineration)set the limit at 25 mg/Nm'(for Environment Canada Standard). COMBINED-CYCLE COMBUSTION TURBINE PLANT II-2.17 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 2.Liquid and Solid Waste The plant produces negligible amounts of liquid or solid waste: ° ? -Blow down water from the HRSG at the estimated rate of 420 gallons per hour.This stream can be normally discharged to the sewer system,settling pond or can be recirculated back into the make-up water demineralization system. -Blow down (bleed rate)from the cooling tower circulating cooling water at the estimated rate of 10,000 gallons per hour.This stream is also non-hazardous and can be normally discharged to the sewer system,to a settling pond or recirculated. Normally treatment of this stream is not required. -The plant will generate a very small amount of filtrate from filtering fuel before injecting to the combustion chamber.This waste will be placed in containers for disposal at an appropriate disposal facility. Other waste generated at the plant will be sewage and typical municipal garbage, which will be disposed of at the City of Bethel disposal facilities. m.Auxiliary Boiler Diesel fuel and used lube oil-fired boiler working in standby duty.The boiler will be used during plant start-up for steam line blowing and to provide heating of the fuel and plant.During normal operations of the plant,the boiler will be used sporadically during periods with very low ambient temperatures,when the heat recovery system cannot provide sufficient heat for space heating and the district heating system.The paged,water-tube boiler will be equipped with all necessary controls and instrumentation. n.Fire Protection System The fire protection systems will include redundant water pumps including a diesel engine -driven unit.The 100,000-gallon raw water storage tank will serve as a source of fire-fighting water.As an alternative,water from the cooling pond or make- up water well will be used.Appropriate detection,alarms will be included in strategic locations and system actuation will be automatic when and where necessary.For the main electric systems,automatic extinguishers will be used. o.Civil Works,Buildings and Other Enclosures To minimize the cost and promote modularization all equipment of the Modular Power Plant will be housed in modular structures that will allow easy access to the equipment and also relocation of the plant.The structures will be thermally and COMBINED-CYCLE COMBUSTION TURBINE PLANT IiI-2.18 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 sound insulated as needed.Control Room,office and utility space will also be provided in modular units. For a listing and specifications of site development,earthworks,foundations and tank farm,please see the attached Conceptual Design Report by LCMF,LLC of Anchorage,Alaska. p.Maintenance Shop Due to the limited capabilities for local fabrication and repair,the plant will include a reasonably sized maintenance facility.This facility will be able to service both basic plant equipment and the rolling stock on the premises.See attachment Maintenance and Repair Shops. C.RELIABILITY ANALYSIS The CTG power plants will be designed to operate at a reliability consistent with a utility grade power plant.Total installed plant capacity at Bethel will beapproximately150MWandatCrookedCreek,110 MW.A reliability analysis performed by PES determined the availability of the Bethel plant to generate at least 100 MW of power at 99.4 percent,which means the plant is unavailable to serve the load for 0.6%of the time.On an annual basis,a 0.6%unavailability rate equates to a period of 52.5 hours per year or 2.2 days per year. _Bettine,LLC conducted an independent reliability analysis to determine the number of hours per year the plant cannot adequately serve the mine demand and the total system demand.This basic reliability analysis assumes a forced outage rate of 1%for each for the combustion turbines and 1%for the steam turbine and the HRSG. These are typical forced outage or unavailability rates for well-maintained plants. Two alternatives are investigated.A modified binomial distribution model was used to calculate the number of hours per year the plant would be unable to generate aspecifiedMWoutput.The resultsof the analysis are listed in the Loss of LoadExpectation(LOLE)table,shown in Table IIJ-2.4.LOLE is the number of hours per year the power system cannot serve the expected system demand.SupportingcalculationscanbefoundinAppendixH. As discussed in Section II-1 the forced outage time associated with the 190 mile transmission system is estimated a 8 hours per year.For the 15 mile segment between Crooked Creek and the mine this equates to one hour per year. COMBINED-CYCLE COMBUSTION TURBINE PLANT II-2.19 SECTION III Public Draft 03/20/04 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study TABLE III-2.4 LOSS OF LOAD EXPECTATION IN HOURS PER YEAR Total 110 MW System 150 MW Crooked Demand?Bethel Plant T-Line Total Creek T-Line Total 50 MW 3 8 11 88 1 89 85 MW 5 8 13 88 1 89 100 MW 90 8 98 _--- A review of Table III-2.4 reveals that the Bethel plant can reliably supply a 50 MW system-demand,suffering a LOLE of less than one-half day per year.The Crooked Creek plant with its reduced generation capacity would experience a LOLE of 89 hours per year.At 85 MW system-demand the Bethel plant LOLE increase slightly,to 13 hours per year.Because of the generation mix at Crooked Creek the LOLE remains at 89 hours per year.At 100 MW system-demand the Bethel plant experiences a LOLE,including the transmission line,of 98 hours per year and 90 hour per year when the transmission line is not included.This equates to an unavailability rate of 1.0%per year as compared to 0.6 percent by PES.Differing methodologies used by PES and Bettine,LLC to predict LOLE has produced these slightly different results. The above LOLE are representative of the two generation options.A more in- depth reliability analysis will need to be conducted as the project moves from the _feasibility stage toward the final design phase.As with any plant design,an acceptable compromise between reliability and capital cost will need to be achieved. However,until Placer Dome can better define the Donlin Creek power requirements, it is pointless to refine the analysis. ?Includes line losses and in-plant usage. COMBINED-CYCLE COMBUSTION TURBINE PLANT ITI-2.20 re Figure III-2.2 ear eeESGohasae Proposed Location of Cooked Creek Power Plant and Fuel Storage Facility FIGURE II-2.3 : MAIN TRUNK LINES 5-7Perrg PRECISION SERVICES INC, P.O,GOX 1004 HAYDEN LAKE,©)A383 Fen (208}762-1313Phuone(208)772-4487 B-mal:Ttapee-workd.com Web Sie:hip-tnewpes-wortd.cont Pra: g ware |im]Pe BETHEL ALASKA COGENERATION PLANT ;MODULAR CT FACILITYREOEStore:|me |xe OISTRICT HEATING -TRUNCK LINESi[Cac erin,CAT Sar)|Be |St Ponsawe ost [aronesey 43 oatewmREVIone|oat |om far vaanss POT ICAR t.ie 8 8 st se nei a [OKO CRANES TI,P]COPE:OR DDC LATO 10 TALS,Pe WIC TE A PART,an THEN WORTTEN RANE EOR FRUS P ccz0090 00-000-001 ttt.Le ry PROPOSED m4ACCESS ROAD mN BARGE N a OFFLOADINGFUELLINE ===Ld-_--<d=\.(eI I I I INTERMEDIATE FUEL _STANKSUPPLY GLYCOL HEAT | CIRCULATION PIPES ]]]] 4 a ep |a H | j i i j MEL Mt_dorps pci na sor pee PRECISION He ENERGY |b-SERVICES INC,3 LSJ P.O.BOX 1004 HAYDEN LAKE,{0 83835Phone(208)772-4457 Fax (206)762-1113bddcGchbbsbdHTYYYT)E-rek:soerpyCpes-nert com Web Ske:wortd. aS eo oe od BETHEL ALASKA COGENERATION PLANT\raw WATER MODULAR GT FACILITY _-qe =aets onienat AaieeverrFUELTANKwant22TeeREVISIONcare|oy |com ae ee _-{eS =yODALL308DRANG'SHEET: : : -e i c¢20090 00-000-002 18s sflLe | | |t | -_-_1--}367"GENERAL NOTES IRE. P.O.BOX 1004 HAYDEN 1 83635 Prone (208}772-4457 Fax (208)762-1113E.melk:energy @pee-world.com PRECISION ENERGY SERVICES INC. LAKE, 'Wed Sita:hitptwww.pee-world.com TwoTmo fxs} T™OD mim CROOKED CREEK COGENERATION PLANTMiLARCTFACILITYDEL2TANKS6TeMt|08903 IODUt6[concertun paart |owz1n0 aa]GENERAL IGEMENT ta REVISON DATE BY |CHK [DRAW BY.THO.[epnoven ay:LT DATE:JUNE IF,2507'THS DRAWING12THEPROPERTYOF PES THE DEmGAAND [CAE T=000 PLOTSCAE tet FRE:CC20080-09.090-003.2DEASPOHEREONARECOMETEITLAADSHALLMOTrrTerNNO.oar 2ruaEPeasoOnREAPER€C20090 00-000-003 tors = Nuvista Light &Power,Co.-Donlin Creek Mine SECTION ITI Power Supply Feasibility Study Public Draft 03/20/04 SECTION III-3 3.DISTRICT HEATING SYSTEM A.INTRODUCTION The generation of electricity using fossil fuels is less than 100 percent efficient. Typical efficiencies are in the range of 35%for coal-fired plants and 50%for combined- cycle combustion turbine plants.The used energy will escape into the atmosphere as used "waste heat”.However,a large percentage of this waste heat can be recovered and used to provide space heating in buildings and domestic hot water.To distribute this recovered heat throughout the community,it is necessary to construct a network of pipes known as a district heating (DH)system. The power plant will include provisions for capturing this waste heat and using it to supply thermal energy to a district heating system that will serve the space and domestic water heating needs of Bethel.The proposed system will be capable of supplying every reasonably accessible building in Bethe!with heat and hot water.This includes all residential housing,schools,the community college buildings,government buildings,city buildings,hospital,jail,airport,and local businesses.The system could also provide heat to an existing or new swimming pool and sports complex for the general population of Bethel.Additionally,there will be huge quantities of waste heat in the 85°F temperature range available to heat greenhouses built in the immediate vicinity of the power plant. Based on the heating oil usage records and projected city and surroundings growth,the future thermal energy requirements are estimated as follows: Yearly average heat supply million Btu/hr 1 Average summer supply million Btu/hr Average winter supply.million Btu/hr 1 Maximum winter supply million Btu/br -1 Extremely low winter temperatures million Btu/hr 1 Utility water for consumption Ib/hr 151 Gpm Since the above numbers represent monthly averages,the actual minimums and maximums may differ significantly from the given amounts.It is planned that during a 2 to 3 week period in July or August,the system will be shut down for maintenance.The maximum winter demand of 180 million Btu/hr is estimated based on recorded low temperatures. DISTRICT HEATING SYSTEM III-3.1 28.9 91.1 42.2 69.0 80.0 ,400 303 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 The DH system will use hot water systems.Outgoing water temperature will be between 170 -175°F at 100 psi.Return water will be in the range of 125 -130°F at 20 psi.Heating of the hot water will be achieved primarily by utilization of condensing heat exchanger utilizing latent heat of condensation of the steam cycle. " The development of the Bethel Power Plant,coal-fired or combustion turbine, will include the construction of trunk pipelines shown in drawings attached to the end of this subsection.Heat will be supplied to one Central Heat Exchange Station located at the power plant.From there,one main trunk line will serve the airport and one will serve the City.The pipeline to the City will branch out to the North and East and supply major loads and several distribution centers.Smaller distribution lines will connect to the distribution centers to supply buildings or groups of buildings.It is anticipated that these smaller distribution lines will be constructed by the City or by private enterprise. Heating of buildings is accomplished by circulating hot water that is heated in a condensing heat exchanger by steam,which is extracted from the power plant's steam turbines,and then piped to receivers around whole districts.Providing both heat and hot water is an extremely efficient use of fuel and demands coordination of energy supply with local physical planning.There are over 30,000 district heating systems in the USA. Hot water district heating meets the thermal energy needs of residential,commercial and industrial users from the same distribution line. The overall thermal efficiency of a combined-cycle combustion turbine driven MPP,can be increased to approximately 84%if waste heat from the plant is used to supply heat to a district heating system.For the coal-fired plant,thermal efficiency should exceed 40%if waste heat is used to supply heat to the district heating system. The Bethel district heating system will be based on using hot water instead ofsteamasthethermalenergycarrier.Older district heating systems use steam for thispurpose,however,there has been a general movement towards using hot water,whichis recommended by the Intemational Energy Agency -an international body with headquarters located in Europe that promotes energy efficiency by using district heating and heat pumps.The advantages of water heating over steam heating are several,the most important of which are: 1.Safety.Water is used in district heating systems with temperatures in the range of 170 -194°F (77 -90°C),which is sufficiently below the water boiling temperature.A leak in the piping,whether outside or inside the heated space,will not . resultin rapid conversion of water to steam,which reduces the possibility of scalding ora steam explosion. 2.At working pressures the volume of steam is 180 times larger than the volume of the same mass of water.This means that water requires smaller diameter piping and valves,as well as smaller pumping and heat exchange equipment.Smaller diameter piping results in lower overall heat losses;hot water systems lose only a maximum of DISTRICT HEATING SYSTEM ,HiI-3.2 Nuvista Light &Power,Co.Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 10%of their energy before it is delivered to the desired location,whereas same duty steam -based systems lose as much as 30%of their energy to ambient air. 3.Due to safety considerations,pressurized steam systems must be built according to the ASME Code;as a result,they are significantly more expensive in both capital and operating cost terms.Steam systems are also more expensive due to larger pipe sizing and the requirement for larger pumping equipment.The maintenance cost of steam-based systems is also significantly higher than that of water-based systems. B.SYSTEM SPECIFICS - 1.Pipes &Pumps Sizing pipe for the district heating system was determined by the estimated heat usage of the Bethel community.The heat capacity of the Bethel district heating system - was based on the average heating oil usage,accounting for 20%growth over 10 years. We estimated a heat delivery rate of 128 MM Btwhr average load in winter,:with amaximummomentarywinterloadof180MMBtwhr.The heat load also accounts for - utility hot water usage.Heating water delivery rate is based on the heat demand and thetemperaturedifferencebetweenthedeliveryandreturnlines. For supplying pipe we have contacted several manufacturers that are familiar withdistrictheatingpipe.Prices for the pipe ranged from $25 per linear foot for 10-inch pipeto$83.00 per linear foot for 24-inch pipe.Based on pumping requirements a 16-inchdiameterpipeappearstobetheeconomicalchoice. 2.Heat Exchangers The District Heating system will include main heat exchangers where the district heating water is heated with heat supplied from the power plant.The size of the heat exchanger was determined by the average winter heat rate of 128 MM Btu/hr.However, the system will have sufficient capacity to allow for heating demands during extreme low temperatures.The heat exchanger is a condensing type that make use of the latent heat of vaporization. After the main exchange station at the power plant,there will be several local exchange stations to deliver heat to individual or groups of houses.These stations willhaveheatexchangersthattransfertheheattoalowerpressureloopthatdelivershotwaterbelow15psi.The reason for the low-pressure loopis to meet the 15 psi limit for ASME building codes.The size of the intermediate heat exchangers will be determined by the heat requirements of the surrounding structures. Using water directly from the DH system should be avoided to prevent contamination of the water in the main trunk lines,and to extend the life of the system. Contaminated water increases maintenance costs and causes premature failure in the DISTRICT HEATING SYSTEM TII-3.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION HI Power Supply Feasibility Study Public Draft 03/20/04 main distribution lines.Also,the pressure for delivery water needs to be kept low for safety reasons.Since the delivery pressure in the main lines will be above 70 psi,an intermediate loop will allow the pressure to be dropped to a reasonable level for safety. At the final delivery point,radiant heaters willbe installed ir individual buildings for heating.These heaters will run off the intermediate exchangers that are linked to the main trunk lines.In some cases,forced air heating units can be retrofitted for district heating. 3.Backup System A stand-by package oil-fired boiler will be installed to supply heat for district heating when the plant is shut down for maintenance. C.SYSTEM INSTALLATION The scope of the feasibility study only covers the basics of main trunk piping, primary heat exchangers at the power plant and exchange stations.A more thorough investigation will be needed to obtain a better knowledge of the customer base and the engineering specifics of a complete district heating system. The overall capital equipment cost,estimated at $11 million,includes the maintrunklines,the delivery pumps and the primary heat exchangers at the power plant and exchange stations.It does not include the cost of installing the smaller distribution pipes. _The installation costs for a district heating system will be significant,-as several miles of main trunk lines will have to be laid.With our current information,we estimate that laying the main trunk line,installing the central exchange station,and insulating pipe joints will take about 40,000 man-hours.Additional residence and hookup costs will depend on the size and demand on the district heating system. The only needed regular maintenance for the district heating system will be on the primary feed pumps and heat exchangers at the power plant.Main trunk lines for district heating will have to be inspected yearly,as will intermediate heat exchangers. D.WASTE HEAT SALES Nuvista does not intend to operate the district heating system.Instead Nuvista would wholesale the waste heat produced by the plant to a private or public entity that would be responsible for distribution and retail sales.Based on fuel oil prices for January 2003,wholesale rates are estimated at $7.70 per million Btu,which equates to selling fuel oil at a price of $1.00 per gallon.Given that fuel oil prices in Bethel are in the range of $2.00 per gallon for large users and $2.50 per gallon for small users,the capture and use of waste heat from the power plant has the potential for significantly lowering heating costs in the Community of Bethel. DISTRICT HEATING SYSTEM II-3.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION ITI Power Supply Feasibility Study Public Draft 03/20/04 The income generated from the sale of waste heat will be used to offset plant operating costs,which will in turn lower the cost of electric power to all consumers. Using this approach,all consumers will share in the revenues generated from the sale of waste heat.,: : Waste heat sales can lower the cost of electricity to all consumers.The greater the amount of waste heat sales the lower the cost of electricity.The economics of waste heat sales and the impact on electric costs are addressed in Section IX. DISTRICT HEATING SYSTEM III-3.5 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 SECTION III-4 4.OTHER POWER SUPPLY ALTERNATIVES A.INTRODUCTION Two transmission line alternatives that would deliver power to the mine from the railbelt were previously investigated as part of the Calista Region Energy Needs Study, dated July 1,2000.These power lines were determined to provide less economical power than a coal-fired plant located at Bethel.However,these alternatives are revisited.Two natural gas supply alternatives are also investigated. B.TRANSMISSION LINES BUILT FROM NENANA GVEA (Golden Valley Electric Association)estimated that it would take approximately eight years to permit,design and construct a power line between Nenana and the Donlin Creek mine.D&L estimates that it would take four winters to construct the power line,which is consistent with GVEA's eight year estimate.In addition,D&L has serious concerns about the logistics of building this line due to access,weather, environmental constraints,etc.The most likely scenario for building this line is via ice roads constructed from both Nenana and Donlin Creek over four winters.Finding adequate water sources along the route for the ice roads could be problematic.The logistics of moving men and materials across hundreds of miles of roadless wilderness will present a monumental task.Also,the uncertainty of weather conditions suitable for ice road construction and use would add additional risk. 1.+100-kV,DC Transmission Line a.Option 1 The option would provide power only to the mine site.The transmission line would originate at Nenana and proceed southwesterly to Crooked Creek and then on to the mine site.The estimated 385 mile transmission line would serve no other load other than the mine.The estimated cost of the power line is $733,700 per mile for a total cost of $282.5 million.This figure includes all construction,freight,engineering and permitting costs associated with building the power line.AC-DC convertor stations must be built at bothNenanaandtheminesiteforatotalcostof$100 million dollars.'Total project cost for a power line between Nenana and the mine site would be $382.5 million.The convertor station located at the mine site would supply the mine at an AC voltage of 13.8-kV.Power would be purchased from 'Source:GVEA OTHER POWER SUPPLY ALTERNATIVES Iil-4.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION II Power Supply Feasibility Study Public Draft 03/20/04 Golden Valley Electric.The cost of power at the Nenana substation would be4.5 cents per kWh plus $11.25 per kW monthly demand charge.” b.Option 2 The 370 mile DC transmission line would originate at Nenana and terminate at a convertor station located at Crooked Creek that would convert the +100kV DC voltage to an AC voltage of 138-kV.A 138-kV transmission line would be built from Crooked Creek to the mine and between Crooked Creek and Bethel.The 138-kV line would provide power to Bethel and 8 villages.The total cost of this option is $501.5 million.Of this total,$271.5 million is for the DC line,$100 million for the convertor stations and $130 million for the 138-kV transmission line and the village step-down substations.Power costs are as stated above.This is the most expensive option examined for providing power to the region. 2.230-kV,AC Line Built from Nenana a.Option 1 The transmission line would originate at Nenana and proceed southwesterly to Crooked Creek and then on to the mine site.The estimated 385 mile transmission line could serve the community of McGrath,Crooked Creek and the mine site.The cost of this power line is estimated at $930,200 per mile for a total cost of $358 million.This figure includes all construction, engineering and permitting costs associated with building the power line. Substation costs are estimated $5 million dollars.The step-down station located at the mine site would supply the mine at an AC voltage of 13.8-kV. Total cost would be $363 million.Power would be purchased from GVEA. The cost of power at the Nenana substation would be 4.5 cents per kWh plus $11.25 per kW monthly demand charge. b.Option 2 The 370 mile AC transmission line would originate at Nenana and terminate at a step-down substation located at Crooked Creek that would convert the 230kV AC voltage to an AC voltage of 138kV.A 138-kV transmission line would be built from Crooked Creek to the mine and between Crooked Creek and the Bethel.The 138-kV line would provide power to Bethel and 8 villages.The total cost of this option is $479 million. Of this total,$344 million is for the 230-kV line,$5 million for substations and $130 million for the 138-kV transmission line and the village step-down substations.Power costs are as stated above. 21d. OTHER POWER SUPPLY ALTERNATIVES UI-4.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION III Power Supply Feasibility Study Public Draft 03/20/04 C.NATURAL GAS SUPPLY 1.Cook Inlet Pipeline This option was presented by VECO,Inc.It involves constructing a natural gas pipeline from the Cook Inlet gas fields to Crooked Creek.The pipeline would be 330 miles long and essentially follow the Iditarod trail through the Alaska Range.After exiting the Alaska Range on the north,the pipeline would turn southwest to Crooked Creek.A 150 MW combined-cycle combustion turbine plant would be constructed at Crooked Creek to supply electric power to the Donlin mine project,Bethel and eight villages via a 138-kV transmission line.The cost of the pipeline is estimated at $210 million in the VECO study.The study estimates the cost of the power plant at $135 million and the transmission line between Crooked Creek and Bethel at $130 million,for a total cost of $500 million,which is comparable to the DC option at $475 million. Not only is this option among the most expensive options examined,production from the Cook Inlet gas fields is predicted to decline dramatically by 2010,which is the very time the Donlin Creek mine will need power.Figures III-4.1 &2 clearly show the decline in the Cook Inlet field production,from a high of 221 Bcf in 2002 to a less than 22 Bcf in 2022.Because of the high cost of this alternative,the steep decline in gas production,and the uncertainty as to the availability and cost of natural gas from the Cook Inlet field,this alternative is not considered to be a practical. 2.Holitna Basin Natural Gas Holitna Energy,a newly formed company,has recently announced its intention to explore the Holitna Basin for natural gas.The Holitna Basin is located about 50 miles southeast of Crooked Creek.Three major oil companies,ARCO,Unocal and Sohio (now BP)independently evaluated the Holitna basin during the 1980s and decided not to drillanyexploratorywells.At the time this report was printed,virtually no subsurface exploration of the basin,of any kind,by Holitna Energy,has been accomplished.The potential for finding an economic and commercially developable natural gas deposit is unknown.At this point in time the Holitna Basin cannot rationally be considered a natural gas resource. 3Source:Petroleum News,November 2,2003 OTHER POWER SUPPLY ALTERNATIVES IlI-4.3 FIGURE III-4.1 Cooked Inlet Gas Production Forecast (Alaska Division of Oil and Gas 2002 Report) Cook Inlet (Billion Cubic Feet per Year) Cook Iniet Historic and Forecast Gas Production 1958 -2022 OProven Undeveloped BAI Other OSwanson River Okenai IN200.0 +-OM cArthur River OBeluga River OiNorth Cook tniet 250.0 +-=wabadoBcfperYear-_°badoi§0.0 + 0.0 +rrrt Pererrr Tre rrr)ttl hl lll)ll PTEPPOESSEPEEEEESS FIGURE III-4.2 Cooked Inlet Gas Production Forecast (Alaska Division of Oil and Gas 2002 Report) Cook Inlet (Billion Cubic Feet per Year) Be uae "AT Seth See ott Resta!Abcmer |Porn!TT eefewer"Revat Cook Rree”Unde reancnd MEY TEL takes” Eretotess Perea SCARTer FEM COOKiSvesiSalt Ate:Retna Sh Ct Pigeeet Ui erred 1955 .-ao -::ao 19 .:-ao :--eo 1960 --::-: 1981 -3 G2 -.ws 1982 .:-is 18 oo -33 1983 og .-12 3¢ag :43 1984 OT --16 45 oi -62 1965 --v4 60 o2 .73 19686 -*-4 14 -W264 17 02 a2 --Se go -ay 1958 2a a2 ..#0 m2 .ats 19 30 142 79 -#3 as .aga 1970 36 17 ae -ae 44 -12 ist ai 183 460 .722 aa -1By 1972 41 187 ai -760 ws °1485 1973 49 m1 427 :vig 13.4 -1076 1974 $6 196 ae]°oa &no -arcas]1975 Ta 18 ee :772 106 -148 1976 W2 190 et *WSS ws -143 wr 134 197 a2 :aig ws .18146 1978 143 WE ee .wa 93 .i791 1979 wo 166 Ba :wo 56 -1847 1900 wo 158 are -we gi .183 1961 wW2 182 ws -wa aT .1929 Bh 79 187 182 Be -159 73 -196.1 1963,1at tad aro 22 30 2 -2107 1984 Ise tsa azn 30 VOT wT :any 1965.226 10?a8 37 1158 BS .2169 1966 wa 136 438 18 B25 ae -1973 1987 240 143 acd aa wo wi .1993 1968 Poot we?ao as 763 Dz .1966 1985 wot nO ea (a7)es?m0 -1984 1980,cy sts eo it 8)ma RN?-285190135e812aa?(0 t)28 2 -20841982BSwtaha10.4 22 w4 .2045 1983 317 828 eS 46 238 x3 :20051904Ba?0 S27 27%188 ao .2140 1905 Bea £49 $35 37 165 Bi .2145 1996 Be 473 60 a3 133 G2 °2220 1997 mo 6648 S25 287 127 Bo -2147 198 3a waa sao ws oF a2 -2180 1994 360 mo S14 293 sa 183 .212.6 a00 337 456 va)as7 128 167 .até8 2007 aig 6272 FG 220 mo 184 .2197 2007 ao S20 tad 406 wa ae 60 sas 7003 me 490 0 ws 193 aia 100 2189 204 339 420 830 tao 193 rod tao Picky 2005 341 0 $30 122 193 mo 210 1967 2006 267 200 530 86 93 wy 270 12 27 Ba iad 820 a9 154 ws 306 178.3 200s 243 ia ay 43 123 we 260 17 0p ag wm?ate 16 95 3 286 1266 BRIO aos ag v2 -79 wo 230 17 011 188 :330 :63 as 2106 oi aig 174 .23 -$i a7 190 Ha ai3 160 -64 .40 as 170 17 as 17 .232 -32 7%180 m6 ais W365 -wa -74 140 Be ange Pa!-1843 --ae w30 m4 aot?115 *163 --a4 920 ai ais 1O5 144 -4g 41a ao mie v7 -128 +.30 186 BS rey.a se .Ws --.6 a3 a1 a2 .if :--&6 3 rired 75 >ed +:-£6 as peacey*Production assumed to decline af 9.2% per year afier 2009. ?Exponential decline afer 2007,basedonactualdata1996-2001 and DNRestmatesfor2002-2007. 7 ONR estimate,decline rate of 11.6% afier 2007. "Net gas injections reported for Swanson River 1966-62.Exponential Gecine afer 2003,based on actual data 1996-2001 and estimate for 2002. *Kenai includes Stering #3,4,5.1,5.2, and 6 Pools,Beluge Undefined,andTyonek.Forecast besed on assumptionthatKenaiproductionislevelat2004 fevels with decine aRer 2006. ©All Other inchudes Beaver Creek, Cannery Loop,Grante Poin,Lease R, Lone Creek.MGS.Nicola Creek,North Trading Bay,Sieting.Trading Bay.W MeArtur R and Woll Lake. *DNR estimates based primaniy on gas Proapectivity in the Nindchik and Kasilof exploration units and other explorabon areas.on the Kenai Peninaula. Source of Hialone Data.Alaska Of and Get Conservation Commission,"Atasha Production Summary by Fie and Poot". Morihy Reports.Forecast prepared by DNR based on reasonable asaumptons about feld decine tates and zero feserves appreciation beyond exiating proven and undeveioped rerserves. Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 SECTION IV 138-kV TRANSMISSION LINE & SUBSTATIONS SECTION IV-1 -ROUTE SELECTION A.INTRODUCTION A primary goal of this study is to explore the feasibility of constructing a power plant in Bethel,Alaska and a 138-kV transmission line from Bethel to the proposed Donlin Creek gold mine project located approximately fourteen miles north of Crooked | Creek,AK.The transmission line would be located along the northern bank of the Kuskokwim River as shown in Figure IV-1.1.Power would be supplied from a power plant at Bethel,to serve Bethel,Akiachak,Akiak,Tuluksak,Lower/Upper Kalskag, Aniak,Chuathbaluk,Crooked Creek and the proposed Donlin Creek gold mine.This section of the study examines the transmission line route alignment and the feasibility level designs for the transmission line and its associated substations. There is a possibility that a combined-cycle combustion turbine power plant would be constructed near Crooked Creek to supply the Donlin Creek mine rather than at Bethel.This would only occur if sufficient quantities of natural gas were discovered in ©the Holitna Basin to supply the energy needs of the project and the natural gas could besuppliedatcompetitivepricesascomparedtootherfuelsourcesaddressedinthisstudy.Under this scenario the 138-kV transmission line as discussed in this report would still be constructed.The only difference would be that power generated at the Crooked Creek power plant would flow north to the Donlin Creek mine and south to Bethel and the above-named eight villages,rather than all power flowing north from Bethel. B.METHODOLOGY 1.General The process of route selection requires input from various stakeholders and decision makers to select a route location.These sources include federal,state and local government agencies,the general public,environmental groups,land owners,affected utilities,and transmission line designers.Final route alignment will be made during the EA/JEIS process. 'The potential for the Holitna Basin to produce sufficient quantities of natural gas at competitive prices to sustain the power generation needs of mining operation for 20-30 years and the region for the next 40 years is virtually unknown at this time.Efforts to collect preliminary seismic data on the basin may begin in _early spring of 2004. ROUTE SELECTION Section IV-1.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 The preliminary route alignment is as shown on the seventeen maps included at the end of this section.In April 2003,a scoping letter was sent out to numerous agencies, individuals,utilities,and land owners soliciting their comments regarding an initial alignment for the 138-kV transmission line between Bethel and the Donlin Creek minesite.In March,2004 a draft of this report was released for review by the public and various government agencies.During the second quarter of 2004,public meetings will be conducted in Bethel and Aniak.The preliminary route alignment will be presented and comments will be solicited.It is important to recognize that modifications to the route can be expected as a result of the public comment process,the EA/EIS process,and during the final design phase,as the route alignment is fine tuned. C.TRANSMISSION LINE CHARACTERISTICS 1.General Characteristics Various transmission structures that could be used for constructing the 138-kV transmission line were evaluated.The evaluation suggests that single pole structures be used for the initial 6 miles of the power line,i.e.line Segment A-B,as it traverses the City of Bethel.Using single pole structures would limit right-of-way requirements to 50 feet.Typical structure height would be 50 feet and span length,ie.distance between structures,would be in the order of 300 feet. The next 80 miles of power line,i.e.line Segments B-C through F-G,extends between Bethel and Upper Kalskag.This portion of line traverses marshy,tundra covered lowlands underlain with permafrost.Terrain elevation for this portion of the line varies from a minimum of 13 feet to a maximum of 73 feet.A driven pipe-pile supported,steel H-frame structure is recommended for use on this portion of the line.The driven pile supported steel structure has been used in the construction of most major power lines in Alaska,in this type of terrain.R.O.W.width requirements when using H-frame structures would be 125 feet.Using a nominal structure height of 70 feet,a typical span length of 1,200 feet can easily be achieved along this portion of the route. The portion of power line located between Kalskag and Crooked Creek,i.e.line segments G-H through L-M,traverses hilly terrain and better drained soils.It is .anticipated that granular,moderately drained soils will be encountered,along this portion of the route and therefore,it would be possible to utilize direct imbedded steel H-frame structures,rather than driven pile supported or X-frame structures.Typical R.O.W.width requirements when using the H-frame structures would be 125 feet.Terrain elevation for this portion of the line varies between a minimum of 59 feet to a maximum of 717 feet. Due to the hilly terrain along this portion of the route,a typical span length along this portion of the route would decrease to 1,000 feet.Typical tower heights would be 70+20 feet. Between Crooked Creek and the mine site,line segment M-N,available R.O.W. width will dictate the type of structure that would be used.If the power line must be built ROUTE SELECTION Section IV-1.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 within the Crooked Creek to Donlin Creek mine road R.O.W.,then a single pole design would be used.Typical span lengths for a single pole line would be in the order of 400 feet.Ifa separate 125 feet wide R.O.W.can be obtained for the power line,which would be far more desirable than building in the road right-of-way,direct embedded steel H- frame structures would be used.Maximum elevation is 950 ft.Typical span length along this portion of the route would be 1,000 feet.Typical tower heights would be 70+20 feet. The route alignment for this section presently assumes a separate 125 feet wide R.O.W. can be obtained. 2.R.O.W.Requirements Single pole structures would be used in line Segment A-B to limit right-of-way requirements to 50 feet.Segment A-B is that 6 mile segment of line,which traverses south-to-north through the community of Bethel.Typical structure height would be 50 feet and span length would be in the order of 300 feet.No clearing should be required in this section of the transmission line corridor. It is anticipated that H-frame structures would be used to construct the remaining 185 miles of transmission line.Typical R.O.W.width requirements when using the H- frame structures would be 125 feet.Little if any R.O.W clearing would be needed on line Segments B-C through F-G,which collectively extend between Bethel and Upper Kalskag.This portion of line traverses marshy,tundra covered lowlands underlain with permafrost,which is basically devoid of trees. The portion of power line located between Kalskag and Crooked Creek,i.e.line segments G-H through L-M,traverses hilly terrain and better drained soils.Spruce forests are encountered at Upper Kalskag.The sparse spruce forest of the Kalskag area gives way to an ever increasing forest cover,with maximum forest density occurring between Aniak and Crooked Creek.R.O.W.clearing requirements will increase in direct proportion to the forest density.Between Cooked Creek and the Donlin Creek mine site, the terrain climbs rapidly in elevation,from 200 feet at Crooked Creek to approximately 1,000 feet above-mean-sea-level at the mine site.The relativelydense forest of theCookedCreekarearapidlygiveswaytosparseforestcover,tundra covered slopes andbarrensastheelevationincreases,reducing R.O.W.clearing requirements. Clearing of the R.O.W.would,to the maximum extent practicable,be limited to structure locations and danger trees that may contact phase conductors.A sketch of a typical R.O.W.cross section is attached at the end of this Section. 3.Visual Impact The visual impact of a transmission line is always an issue.It is recognized that a power line built along the proposed route would be visible,for the most part,from the Kuskokwim River.The transmission line has in fact been routed as close to the river as practicable,to improve access and reduce construction costs.Weathering steel towers, ROUTE SELECTION Section IV-1.3 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 which turn a rusty-brown color when exposed to the elements,would be used to reduce visual impact. The Kuskokwim River is the second largest drainage in the state of Alaska.The giacially turbid mainstem is approximately 900 miles long,originating from the interior headwaters of the Kuskokwim Mountains and the northern foothills of the Alaska Range. The Kuskokwim River is the major transportation artery in the Calista Region.During the open water period,generally occurring between mid-May through mid-October,shallow draft river barges ply the waters of the river,delivering fuel oil and supplies to villages located upstream of Bethel.Bethel is the furthest inland point on the Kuskokwim navigable by ocean-going barges and is the primary transshipment point for marine cargo moving up the river.It has been estimated that about 25 percent of the general cargo and 50 percent of the fuel delivered to Bethel is offloaded onto river barges and redistributed for shipment to the upstream villages.The most intensive period of inter-village travel is during the summer months when local residents travel up and down the river in small boats and skiffs.During the winter months,when the river is frozen,travel between villages is accomplished by snow machine and all-terrain vehicles. . This visual impact of a transmission line may reduce the opportunities for wilderness experiences and the appeal to tourist.However,because the Kuskokwim is gilacially turbid river there is little sports fishing on the mainstream river.Most sports fishing occurs on the clear water tributaries.Therefore,it is not anticipated existing or future tourism along the river would suffer,to any significant extent,as a result of building a transmission 'line along the northern bank of the Kuskokwim River. Subsistence fishing,hunting and gathering occurs along the entire length of the river. However,it is not anticipated that the construction of a power line and the associated visual impact would,to any measurable degree,affect subsistence activities. 4.EMF Affects Many people are concerned that exposure to electromagnetic fields (EMF) represents an increased health risk.EMFs are invisible lines of force that are produced bypowerlinesandvirtuallyeveryapparatusthatuseselectricity.EMFs consist of twocomponents,an electric field and a magnetic field.The electric field is related to the magnitude of the voltage,while the magnetic field is related to the magnitude of current in amperes flowing through the conductors.Studies to determine the affect of EMF on human health have been inconclusive.. Electric fields from power lines are measured in kilovolts per meter (kV/m). Electric fields are easily shielded (blocked)by most objects and materials such as trees or houses.Electric fields decrease rapidly as the distance to the power line increases.| Electric field strengths at ground level,at the edge of a 50 feet R.O.W.,for a 138-kV line are less than one kV/m and typically less than one-half kV/meter for a compact line design.Public perception of health risks associated with EMF from power lines are generally not associated with electric fields but are focused on the magnetic field ROUTE SELECTION 7 Section IV-1.4 Nuvista Light &Power,Co.Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 component.Magnetic field strength is typically measured in milligauss (mG)or microTeslas (uT)where 1 mG is equal to 0.1 uT.Magnetic fields are not blocked by most objects or materials.Magnetic field strength also decreases rapidly as the distance to the power line increases. No national limits have been established by federal authorities that limit the public's exposure to EMF produced from electric power lines.However,other countries have established exposure guidelines.The Australian exposure guidelines (described as "interim")were set by the National Health and Medical Research Council in 1989.They are similar to some other countries.For the general public,the limits are:Electric fields: 5 kV nr!for 24 hours a day exposure,10 kV mz for a few hours per day,both limits can be exceeded for a few minutes per day.Magnetic fields:100 pT (1000 mG)for 24 hours a day exposure,1000 nT (10,000 mG)for a few hours per day. The national Italian EMF limits currently in force were set by Decree of the Prime Minister in August 2003,replacing a previous decree of 1992.For the general public,the limits are:Electric fields:5 kV m™;Magnetic fields:100 pT (1000 mG).In addition,for magnetic fields,that apply to overhead power lines only,there are two further values:The attention value:10 »T (100 mG)applies where exposure is for more . than 4 hours per day.The quality target:3 pT (30mG)applies to new lines and to new homes only.(both these values are limits on the daily averages,values at times during the day can be higher). Switzerland is,as far as we know,the only country in the world to have set national limits at power frequencies based on a precautionary approach to childhood cancer.The limits were set by an Ordinance of December 1999.It came into force 1 Feb 2001 and existing installations have three years to meet its requirements.The basic limits are similar to many other countries -5 kV nx!and 100 pT (1000 mG). In 1992,the U.S.Congress authorized the Electric and Magnetic Fields (EMF) Research and Public Information Dissemination Program.The Congress instructed the National Institute of Environmental Health Sciences (NIEHS),National Institute of Health and the DOE to direct and manage a program of research and analysis aimed atprovidingscientificevidencetoclarifythepotentialofhealthrisksfromexposuretoElectricandMagneticFields.In 1999,the NIEHS reported to the U.S.Congress that the overall scientific evidence for human health risk from EMF exposure is weak. Many people believe that burying electric power lines will reduce magnetic fields at ground level.However,thisis not the case.Measurements taken at ground level overundergrounddistributionlinesshowmagneticfieldscomparabletothosebeneath overhead distribution and transmission lines.The determining factors for these field levels are current in the wires,depth of wire burial,geometry of the wires,and whether shielding practices are employed. ROUTE SELECTION Section IV-1.5 Nuvista Light &Power,Co.-Donlin Creek Mine -SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 The largest natural source of magnetic fields that we are exposed to is created by our Earth.In nature,magnetic fields are what keep compass needles pointed north.In your home,appliances produce the highest magnetic field levels.At work,computers and other electrical equipment produce magnetic fields.Table IV-1.1 lists types and levels of magnetic field strengths in milligauss for common household appliances. Table IV.1.1 SET NTE TOCommonAppliances Baez: 'Mic Magnetic field strength decreases as the distance from the source increases.This chart shows magneticfield levels,measured in milligauss,from tiree distances. Outside of your home or office,electric transmission and distribution lines produce magnetic and electric fields as they carry electricity from power stations to your home,business,and community.The earth's magnetic field averages 500 milligauss. Table IV-1.2 shows typical levels of magnetic fields,measured in milligauss, produced by electric transmission and distribution lines. ROUTE SELECTION Section IV-1.6 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 Table IV-1.2 Wianshisston&Disa bution LinesRBEIS e centerline 50ft*100 ft*..200 ft fieminoneae 2:whilethe serimctures aresi This chart shows magneticfield levels,measuredinmilligauss,at ground level near electric transmission and distribution lines.These calculations were taken under normal weather conditions.Readings may vary with changes in the height of the line and ternperature. The levels of EMF from power lines can be reduced in three primary ways.These are shielding,field cancellation or through increased distances.Shielding is effective for electric fields but is of limited effectiveness for magnetic fields.However,field cancellation and increasing the distance to the power line are both effective in reducing magnetic field strengths.Magnetic field strength is proportional to the square of the distance from the line to the point of interest.Therefore,doubling the distance reduces the field strength by a factor of four.Field cancellation can be achieved by passive and active means.Passive cancellation is achieved by arrangement and spacing of the phase conductors.A significant reduction in magnetic field strength at the edge of the R.O.W. can be achieved by proper arrangement and spacing of the phase conductors.Active cancellation can be used in certain limited situations.Active cancellation is achieved by constructing a system of energized electric coils surrounding the area where field reduction is desired.The system tracks the power line magnetic field and instantaneously adjusts to compensate for changes.Under optimum conditions,active systems have reduced the field in the treated area to less than 0.1 mG.Each application is uniquebecausefieldintensity,field angles,and available space vary widely. 2 Source:EMF Services,3100 Seasons Way #111,Estero,FL 33928,Ph.888-840-0668,FAX 239-949. 4674,info@emfservices.com ROUTE SELECTION ,Section IV-1.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 It is recommended that between point B to the end of the power line at point N,as shown on the attached route maps,that steel H-Frame structures,similar to the structure | shown in the above table for a 138-kV transmission line,be used to construct the power line.(See Section IV-2.).For this type of structure configuration,the power line will rely primarily on separation between known occupied structures and the centerline of the R.O.W.to mitigate EMF strength.A review of the attached route maps shows that for the most part,from point B to the end of the transmission line at point N,the line is routed some distance away from most villages that are situated along the route of the transmission line. In line Section A-B where the transmission line traverses north to south through Bethel,the power line would be built utilizing single pole structures that would support both the 138-kV transmission line with a 13.8-kV underbuild circuit.In this section of line magnetic field strength reduction would primarily be accomplished by proper arrangement and spacing of the phase conductors.Table IV-1.3 lists the calculated magnetic field strengths at ground level,at maximum load conditions,for both the 138- kV transmission line and the 13.8-kV circuit.A significant reduction in magnetic field strength can be readily achieved by increasing structure height.Supporting calculations can be found in Appendix C. Table IV-1.3 Magnetic Field Strength at Ground Level Distance from Centerline 0 ft 25 ft 50 ft 100 ft 50 ft Pole Height 75 mg 56 mg 31 mg 11 mg 60 ft Pole Height 49 mg 40 mg 25 mg 10 mg %Decrease due to 10'increase in 35%29%.20%10% Pole Height D.CORRIDOR CHARACTERISTICS 1.Soil Conditions The delta lowland area is a lake-dotted marshy plain with many low hills of basalt and volcanic cinder cones and craters.Elevation is less than 400 feet (120 m).The lowland is underlain by Quaternary sands and silts to unknown depth.Basalt flows and cinder cones of Tertiary and Quaternary age exist.Other bedrock consists of Cenozoic sedimentary rocks with inclusions of various other assemblages.Dominant soils are Histic Pergelic Cryaquepts and Pergelic Cryofibrists.Soils are shallow over permafrost and consistently wet., .; The river bottomlands represent a collection of flat bottomlands along the larger rivers of interior Alaska.Although nearly level,broad valleys and basins are typical, ROUTE SELECTION Section IV-1.8 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 some low rolling hills and piedmont slopes do occur.Riparian features,such as meandering streams and side sloughs,are prevalent.Oxbow,thaw,and morainal lakes are abundant.Elevation generally ranges from 100 feet (30 m)in the west to 1,640 feet (500 m)in the east.Alluvial fan and basin fill of late Tertiary and Quaternary age are mostcommon.The bottomlands are underlain mainly by post-accretionary Cenozoic deposits and various terranes.The dominant soils are Aquepts that have pergelic temperature and aquic moisture regimes.Specifically,Histic Pergelic Cryaquepts,Pergelic Cryaquepts, Aquic Cryochepts,Typic Cryochepts,and Typic Cryofluvents predominate.Most soils were formed by loess and alluvial materials.Loess is a geologic term that refers to deposits of silt (sediment with particles 2-64 microns in diameter)that have been laid down by wind action. 2.Wetlands The proposed transmission line would parallel the north bank of the Kuskokwim River between Bethel and Crooked Creek.There are many small streams entering the Kuskokwim River from the north.There are swamps,bogs,sloughs and other wetlands in the area.Alaskan wetlands include salt and freshwater areas influenced by tides, temperate rain forests and slopes along the southeastern and south central coastlines, extensive rivers and streams,large river deltas,large and small complexes of lakes and ponds,and extensive areas of boreal forest and tundra. Wetland mapping has not been completed along the project corridor.Therefore, wetland areas will need to be delineated and mapped.All fill material placed on wetlands will require a permit from the United States Army Corps of Engineers (USACE)(USAE, 2003).This includes temporary fills for access roads,boat ramps,and temporary bridges. Because the overhead lines and support structures will require minimal fill,most of the impacted wetlands should have negligible or minimal impacts to their overall functions In order to regulate dredge and fill permits under Section 404 of the 1977 Clean Water Act,a more concise definition is required:The U.S.Army Corps of Engineers (Federal Register 1982)and the U.S.Environmental Protection Agency (Federal Register 1980)define wetlands as:Those areas that are inundated or saturated by surface or ground water at a frequency and duration sufficient to support,and that under normal conditions do support,a prevalence of vegetation,typically adapted for life in saturated soil conditions.Wetlands generally include swamps,marshes,bogs,and similar areas. (Corps Regulation33 CFR 328.3 and EPA Regulations 40 CFR 230.3). The delta lowlands consists of wet tundra communities composed primarily of sedge mats,moss,and low-growing shrubs.Alder,willows,and scattered,stunted spruce and birch grow along the major streams.The lowland is crossed by meandering streams_of extremely low gradient.Many are tributaries or former channels of the Kuskokwim River.Wetlands occupy over 78 percent of the area.Due to the consistently wet soil -conditions the occurrence of wildfires is low.Surface water in streams,lakes,and bogs is ROUTE SELECTION Section IV-1.9 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 abundant in most of the area.Permafrost is widespread but discontinuous.Soils are poorly drained where permafrost exists. The dominant vegetation in the river bottom communities spans a moisturegradientfrommesictohydricandincludesspruce-poplar forests;open black spruce forests,floodplain thickets of willow and alder,and graminoid marsh. 3.Forest Cover Vegetation in the region reflects drainage conditions.The lower poorly drained soils typically support wet tundra communities of sedge mats and mosses.In moderately well-drained soils,alder,willow and stunted spruce and birch share the land with wet herbaceous tundra.Well-drained lowlands usually exhibit stands of white spruce,willow and paper birch.Alternatively,in the higher elevations,black spruce forest tends to dominate certain hills and ridges while alder tends to grow along major rivers.Above treeline,the mountain peaks and ridges support tundra meadows and barrens. The route between Bethel and Lower/Upper Kalskag lies in the tundra covered marshy lowlands where the elevation is typically less than 50 feet above mean-sea-level. This section of the route is essentially barren of trees.There are willow and alder growths within a quarter to one-half mile corridor along the river that often reach several feet in height.This section is heavily dotted with numerous large and small lakes.At Lower/Upper Kalskag there is an abrupt transition between the lowlands and the borealforestofthemountainoushighlands.From Upper Kalskag to Crooked Creek,white and black spruce dominate with quaking aspen,balsam poplar and paper birch present locally as predominate species.The elevation slowly rises from approximately 100 feet at Upper Kalskag to 200 feet at Crooked Creek.Simultaneously,the sparse forest of the Kalskag area gives way to an ever increasing forest cover,with maximum forest density occurring between Aniak and Crooked Creek.Between Cooked Creek and the Donlin Creek mine site,the terrain climbs rapidly in elevation,from 200 feet at Crooked Creek to approximately 1,000 feet above mean-sea-level at the mine site.The relatively dense forest of the Crooked Creek area rapidly gives way to sparse forest cover,tundra covered slopes and barrens as the elevation increases. There may be areas between Aniak and Crooked Creek that contain commercial stands of merchantable timber.The ADNR Division of Forestry will make this determination during the permitting process.State regulations (Sec.41.17.082)require the removal of commercial timber if it is economically feasible to do so.State regulation 11 AAC 95.195 requires special treatment of white spruce to limit the spread of the spruce bark beetle infestation.For spruce trees or limbs greater than five inches in diameter,allowable treatment includes manufacturing into cants,lumber,houselogs, firewood,control burning,chipping and spreading,chemically treated or stored in an approved manner.No special treatment is required for black spruce. ROUTE SELECTION Section IV-1.10 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 4.Fish and Wildlife Habitat The lakes,streams,and tidal flats of the delta lowlands are interspersed with tundra and sedge flats,making this area an exceptional habitat for waterfowl,shorebirds, and furbearers.The Yukon-Kuskokwim Delta supports the highest:densities of nesting tundra swans,most of the world's population of emperor geese,and one-half of the total - _population of black brant.All of North America's cackling Canada geese are produced in these coastal lowlands. The lakes and wetlands associated with the river bottoms support breeding populations.of common loons,horned grebes,red-necked grebes,and common goldeneyes.Ruffed grouse,belted kingfishers,alder flycatchers,and Hammond's flycatchers also frequently breed in the forests of these river valleys.Ptarmigan can be found both on the tundra covered lowlands and forested regions. Raptors are uncommon on the delta,but the rough-legged hawk,marsh hawk,and peregrine falcon in the lowlands and gyrfalcon at higher elevations have been observed. Bald and golden eagles are rarely seen on the delta although they are common in inland areas.Snowy and short-eared owls also occur with the latter more common,particularly in years when rodents are numerous. All three forms of Arctic char (anadromous,resident stream,resident lake)occur here.Sheefish are associated with the Kuskokwim River.All five species of North American Pacific salmon are indigenous to this area;chum salmon are the most abundant.- The broad valleys of the middle Kuskokwim River,where tundra begins giving way to timber,support higher mammal populations than the tundra covered lowlands. These valleys are covered with mixed spruce-hardwood and muskeg-bog vegetation,and provide year-round range for moose.Caribou are found in the mountain ridges in the middle to upper reaches of the Kuskokwim River drainage.This habitat supports red squirrels and furbearers such as beaver,river otter,muskrat,mink,martin,ermine,fox, lynx,and wolverine and wolf.Beaver,muskrat,and fox are the primary furbearers harvested in the region.River otters are abundant;short-tailed and least weasels are common.Wood frogs have been reported in the eastern portion of this area. Wolves and wolverines forage year-round in various habitats from the main river channels to high mountain ridges.Brown bear and black bear are encounter in these same areas. 5.|Navigable Rivers The Kuskokwim River is considered a navigable river.Two other major navigable rivers,the Gweek and Owhat Rivers,will be crossed by the transmission line. Many other small creeks will be crossed that may be classified as navigable.Section 10 ROUTE SELECTION ; Section IV-1.11 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 of the Rivers and Harbors Act requires a permit for any structures placed within or work performed below the high water mark of a navigable river (USACE,2003).It is anticipated that all rivers and creeks will be spanned. 6.Floodplain ° ' The power plant and transmission lines would be located within the Kuskokwim River floodplain.Neither the transmission line nor its support towers would restrict flow. Ice flows are common within the Kuskokwim River floodplain.Support towers vulnerable to ice flows and flood events will be engineered to withstand these events. 7.Threatened and Endangered Species According to the USFWS,there are no threatened or endangered species of plants or animals found to occur within the project area.Mr.Greg Balogh and Mr.Michael Jimmy of the Yukon Delta NWR were contacted to confirm this finding.The USFWS and National Marine Fisheries Service (NMFS)internet website was used to confirm that there are no threatened or endangered species within the project area.Jeanne Hanson (NMFS)indicated that NMFS did not expect any threatened or endangered species under their jurisdiction. 8.Essential Fish Habitat NMFS considers the Kuskokwim River as Essential Fish Habitat (EFH)under the Magnuson-Stevens Act.Many creeks and rivers draining into the Kuskokwim River also appear to have EFH.According to the NMFS web pages,the following essential fish species may inhabit these streams:chinook salmon,coho salmon,sockeye salmon,chum salmon,and pink salmon.Over-water work will be necessary to complete the free-span transmission line.Over-water work does not require a permit from NMFS or the Alaska Department of Fish and Game (ADF&G).An EFH assessment will be required to determine EFH impacts and what mitigation measures will required.The construction of temporary ramps,river access points,small bridges,and river crossings will require EFH - assessments.°, 9,Anadromous Fish Streams A search of the ADF&G "An Atlas to the Catalog of Waters Important to the Spawning,Rearing or Migration of Anadromous Fishes (AWC)”found that the Kuskokwim River is a cataloged anadromous fish stream (335-10-16600).The Kuskokwim River supports sheefish,whitefish and spawning whitefish,chinook salmon,sockeye salmon,coho salmon,chum salmon,and pink salmon.There are other anadromous fish streams in the area but the ADF&G has not catalogued the streams located to the north side of the Kuskokwim River. ROUTE SELECTION Section IV-1.12 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 E.TRANSMISSION LINE CONSTRUCTION IMPACTS The section of the power line between Bethel and Upper Kalskag traverses marshy lowlands composed of fine-grain sands and silts that are dotted with numerous small lakes,small streams and sloughs.It is anticipated that this section of the line would be built during the winter months when the ground is frozen and there is sufficient snow cover to protect the vegetation.Terrain along the remainder of the proposed route appears suitable for year-round construction. Construction of the transmission line will require temporary access points from the Kuskokwim River.Special use permits (SUPs)and R.O.W.permits will be required from the land owners to access and perform construction within the transmission line R.O.W.Temporary ramps,roads,supply and housing structures will be needed to stage the construction effort for this project.Temporary fill may be placed in wetlands to build ramps and roads for construction of the transmission lines.The fill will be removed aftertheconstructioniscomplete.No permanent roads will be built to maintain the transmission line.However,a primitive 12-feet travel way would be grubbed,i.e.stumps removed,within the R.O.W.,to allow movement of construction and maintenance equipment where terrain permits.The transmission lines would be maintained via off- road vehicles,boats and helicopters.Clearing of the R.O.W.will,to the maximum extent practicable,be limited to structure locations and danger trees that may contact phase conductors. Trees and undergrowth would be removed from access points and during construction of the transmission lines.Temporary impacts to wildlife are expected during the construction phase of the project.Construction may temporarily disrupt normal wildlife activities.The impacts could temporarily affect subsistence hunting at communities where construction occurs.These impacts are not expected to be long term and should dissipate after the construction phase.Some construction could occur during the winter months utilizing frozen ground or ice-roads.Winter construction efforts would minimize erosion and adverse effects on tundra,birds,fish,wetlands and EFH. Construction activities may impact water quality due to erosion and runoff.The contractor will minimize these impacts by implementing Best Management Practices (BMPs)for erosion and pollution control in accordance with the Environmental Protection Agency under the National Pollution Discharge Elimination System (NPDES) General Permit program for Alaska.A Storm water Pollution Prevention Plan (SWPPP) and an Erosion Control Plan (ESCP)will be implemented to minimize water quality impacts during the construction phase. Construction will generate some solid waste.The waste will be disposed of in nearby community landfills or removed off-site to Bethel. ROUTE SELECTION Section IV-1.13 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 F.ROUTE SELECTION CRITERIA Several practical criteria were established to provide guidance in the route selection process.To the maximum extent reasonable,without jeopardizing the economic or technical feasibility of the transmission line,the following criteria-were used: 1.Site the line on private lands owned by the various native corporations. 2.Ifthe line cannot be sited on native corporation owned land,site the line on lands that have been selected by the corporations or are owned by the state of Alaska. 3.Avoid placing the line,to the maximum extent reasonable,on native allotment lands. 4.Avoid placing the line,to the maximum extent reasonable,on federally owned or controlled lands. 5.Wherever practical,locate the line within one-half mile of the Kuskokwim River. 6.Site the line to avoid conflicts with known or planned airports and runways. 7.To the extent reasonably possible,avoid river crossing,avalanche chute andunstablesoils. 8.Conform with construction recommendations from the public,consistent with other selection criteria. G.DESCRIPTION OF ROUTE SEGMENTS Based on the above criteria this study has identified a single preferred route alternative,which is approximately 191 miles in length.One purpose of this route selection is to allow further identification of typical transmission components and develop cost estimates.The line is divided into thirteen segments.Except for segment A-B,the segments range between 13 to 17 miles in length.For the most part the route traverses private lands owned by various native corporations that have either been conveyed to the various native corporations or have been selected for conveyance.Except for 11.4 miles of lands selected by TKC that have yet to be conveyed,a mile section of BLM land and 6.4 miles of State lands,the remainder of the line corridor traverses native corporation owned lands.To minimize permitting efforts,the transmission line was intentionally routed to avoid crossing Yukon-Kuskokwim Delta Wildlife Refuge lands and,to the maximum extent possible,state and other federal lands.At approximately line mile 113,the transmission line corridor exits the boundaries of the Yukon-KuskokwimDeltaWildlifeRefuge. ROUTE SELECTION Section IV-1.14 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 It is anticipated the entire route between Bethel and Upper Kalskag is underlain with permafrost soils.At Kalskag the terrain increases in elevation as the route enters the foothills of the mountainous highlands.It is anticipated that between Kalskag and the Donlin Creek mine site,granular,moderately drained soils will predominate with interspersed areas of permafrost.Maps at the end of this section show the various route segments.Table IV-1.4 summarizes selected information for each segment,including land ownership status.Each route segment is discussed individually following the table. 1.Segment A-B (Length 6.0+0.2 miles) 'This 6.0+0.2 mile segment originates south of Bethel at the proposed location of the new power plant.Depending on the exact location of the power plant,the transmission line route will proceed west for approximately 0.5+0.2 mi before turning north and traversing south to north through the community of Bethel.The route attempts to follow existing property lines and roadways to the extent reasonable,which produces several large line angles.In certain locations,it may be difficult to guy these large angles and self supporting steel towers may be required.However,this decision will be made during the final design phase.A compact line design will be used in this segment to limit right-of-way width requirements to fifty feet.A 13.8-kV circuit would be under-built along the first 2.0+0.2 miles of the transmission line.At this point the under-build distribution line would turn east for approximately 1,500 feet where it would connect into the existing Bethel Utilities power plant substation through a step down transformer.This segment traverses lands owned by the Bethel Native Corporation,privately owned parcels,including native allotments and the City of Bethel. 2.Segment B-C (Length 15.9 miles) This segment veers east-northeast for approximately 9.5 miles toward the village of Akiachak.A step-down substation would be constructed at line mile 19.7,to serve the electrical needs of the village.A 12.47/7.2-kV distribution line,approximately six-tenths of a mile in length,would be constructed to connect the village with the step-down substation.This segment of line then continues on for another 2.2 miles to Point C.This segment of line crosses marshy lowlands composed of fine grain sands and silts that aredottedwithnumeroussmalllakesandsmallstreams.This segment traverses lands owned by the Bethel Native Corporation and Akiachak Ltd and avoids native allotments and privately owned lands. ROUTE SELECTION Section IV-1.15 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 TABLE IV-1.4 -Summary of Selected Information for Each Route Segment Length Accumulated Minimum Maximum Segment (miles)Length (miles)|Elevation (ft)|Elevation (ft)|Land Ownership Comments A-B 6 6 24 66 City of Bethel;Power Plant 138 kV Step- BNC;Private up Substation at Mile 0.0 Parcels;Native Allotments B-C 15.9 21.9 13 61 BNC;Akiachak Akiachak Substation at Mile 19.7 C-D 16.0 37.9 19 48 Akiachak;Akiak Substation at Mile Kokarmiut;Mile 26.2 Tuluksarmute D-E 16.6 56.5 39 61 Tuluksarmute Tuluksak Substation at Mile 43.4 E-F 15.6 70.1 39 59 Tuluksarmute; TKC &4,2 mi. TKC Selected F-G 15.5 85.6 36 73 TKC &2.8 mi.Kalskag Substation at TKC Selected Mile 85.6 G-H 15.3 100.1 59 415 TKC;11 Native Allotments H-I 16.1 117 83 477 TKC;10 Native |Aniak Substation at MileAllotments110.6 I-J 15.8 132.8 87 497 TKC &1 mi.Chuathbaluk Substation at TKC Selected;6 Mile 123.4 Native Exits Y-K Refuge at Mile Allotments 113.2 J-K.13.3 146.1 103 700 TKC &3.4 mi. TKC Selected;5 Native Allotments K-L 14.4 160.5 124 717 1 mile BLM; 4.2 miles State; TKC L-M 17.0 177.5 161 556 2.1 miles State; TKC;2 Native Allotments M-N 13.7 191.2 140 947 TKC;1 Native Crooked Creek SubstationAllotmentatMile177.8;Donlin Ck Mine Substation at Mile 191.2 3.Segment C-D (Length 16.0 miles) This segment veers east for approximately 4.3 miles to a point near the village of Akiak.A step-down substation would be constructed at line mile 26.2,to serve the electrical needs of the village.A 12.47/7.2 kV distribution line,approximately nine- tenths of a mile in length,would be constructed to connect the village with the step-down substation.This segment of line then turns north and continues on for another 11.7 miles to Point D,paralleling the west bank of the Kuskokwim River.This segment of line crosses marshy lowlands composed of fine grain sands and silts that are dotted with numerous small lakes,small streams and sloughs.This segment traverses lands owned by ROUTE SELECTION Section IV-1.16 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 the Akiachak Ltd.,Korarmiut Corp.,and Tuluksarmute,Inc.and avoids privately owned parcels. 4.Segment D-E (Length 16.6 miles) This segment continues north for approximately 5.7 miles where a proposed step- down substation will be constructed to serve the electrical needs of Tuluksak at line mile 43.4 A 12.47/7.2-kV distribution line,approximately 2.4 miles in length,would be constructed to connect the village with the step-down substation.This overhead distribution line would span the Kuskokwim River.The transmission line then continues northeast for another 10.9 miles to point E.This segment of line crosses marshy lowlands composed of fine grain sands and silts that are dotted with numerous small lakes,small streams and sloughs.This segment traverses lands owned by the Tuluksarmute,Inc.and avoids privately owned parcels. 5.Segment E-F (Length 15.6 miles) This segment continues north for 15.6 miles.This segment of line crosses marshy lowlands composed of fine grain sands and silts that are dotted with numerous small lakes,small streams,sloughs and side channels of the Kuskokwim River.This line segment traverses lands owned by Tuluksarmute,Inc.,The Kuskowkwim Corporation as well as 4.2 miles of land selected by TKC that has not been conveyed.No private parcels are traversed by this segment of line. 6.Segment F-G (Length 15.5 miles) This segment continues north for 3 miles before turning northeast toward the villages of Upper and Lower Kalskag,terminating at Point G,which is located _approximately one-fourth of a mile north of Upper Kalskag.A step-down substation would be constructed near point G,line mile 85.6,to serve the electrical needs of the village.A 12.47/7.2-kV distribution line,approximately one-half of a mile in length, would be constructed to connect the village with the step-down substation.This segment of line crosses marshy lowlands composed of fine grain sands and silts that are dotted with numerous small lakes,small streams,sloughs and side channels of the Kuskokwim River.At Point G the line route climbs out of the lowlands and enters the foothills of the Portage Mountains.This line segment traverses lands owned by the TKC as well as 2.8 miles of land selected by TKC that has not been conveyed.No private parcels are traversed by this segment ofline. 7.Segment G-H (Length 15.3 miles) From Point G the line travels east along the north bank of the Kuskokwim RivertoPointH.This line segment traverses lands owned by TKC and eleven native allotmentparcelslocatedonthenorthbankoftheKuskokwimRiver.The elevation of this segment -ROUTE SELECTION Section [V-1.17 Nuvista Light &Power,Co.-Donlin Creek Mine .SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 rises rapidly as the line climbs out of the Kuskokwim River delta lowlands and enters mountainous terrain. 8.Segment H-I (Length 16.1 miles) This segment of line proceeds east along the north bank of the Kuskokwim River for a distance of 9.8 miles where a proposed step-down substation will be constructed to serve the electrical needs of Aniak at line mile 110.6.A 12.47/7.2-kV distribution line, approximately 3.2 miles in length,would be constructed to connect the village with the step-down substation.Approximately one-half mile of this line would be constructed overhead and would span the Kuskokwim River.The remainder of the line will be constructed underground to avoid.conflict with aircraft traffic arriving and departing the Aniak airport.From the substation location,the line continues eastward for another 6.3 miles to Point I,traversing lands owned by TKC and ten native allotment parcels located on the north bank of the Kuskokwim River.The transmission line exits the Y-K Delta Wildlife Refuge at approximately line mile 113.2 9.Segment I-J (Length 15.8 miles) This segment of line proceeds east along the north bank of the Kuskokwim River for a distance of 6.8 miles where a step-down substation will be constructed to serve the electrical needs of Chuathbaluk at line mile 123.4.A short 12.47/7.2-kV distribution line will be constructed to connect the village with the step-down substation.The line continues eastward,from the substation,for another 9 miles to Point J,traversing both lands owned by TKC and lands selected by TKC that have not been conveyed.The route also crosses six native allotment parcels located on the north bank of the Kuskokwim River., 10.Segment J-K (Length 13.3 miles) This segment of line proceeds east along the north bank of the Kuskokwim River for a distance of 13.3 miles to Point K.The line traverses both lands owned by TKC and lands selected by TKC that have not been conveyed.The route also crosses five native allotment parcels located on the north bank of the Kuskokwim River. 11.Segment K-L (Length 14.4 miles) This segment of line proceeds northeast along the bank of the Kuskokwim River for a distance of 14.4 miles to Point L.The line traverses over one mile of BLM lands and 4.2 miles of State lands.The remaining line segment traverses lands owned by TKC but does not cross any native allotments. ROUTE SELECTION Section IV-1.18 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 12.Segment L-M (Length 17.0 miles) This segment of line proceeds north along the bank of the Kuskokwim River for a distance of 17.0 miles to Point M,which is located 1.4 miles southwest of Crooked Creek.The line crosses 2.1 miles of state lands.The remaining line segment traverses lands owned by TKC and two native allotments. 13.Segment M-N (Length 13.7 miles) This segment of line proceeds north for a distance of approximately 0.4 miles where a proposed substation will be constructed to serve the needs of Crooked Creek at line mile 177.A 12.47/7.2-kV distribution line,approximately 1.5 miles in length,will be constructed to connect the village with the step-down substation.The line continues north from this point to the Donlin Creek mine where the line will terminate in a step- down substation constructed by Placer Dome,Inc.The line segment traverses lands owned by TKC and one native allotment.' ) ROUTE SELECTION Section IV-1.19 {Preliminary Route Alignment3RouteOverview Shy uA * Figure IV-1.1 Le PointA@aomie, F505 Ae Light &Power,Co.? Plant This Areafs Donlin Creek Transmission Line .+Preliminary Route Alignment "<**Line Section A-B Map 1 of 13 So hia So te setaeay "2 Bettine,LLCMeayerenses ™ sn@2002DeLorme,3-D TopeQueds ®Dain copyright of contem owner.|wow.Gelarme.com at SEC. ehtee. q 138 kV Transmissiongit+13.8 kV underbuild aeme ars #3 Land-BasedPowerPlant¢'%+Fuel Storage This Area +Fuel Storage This Area Barge Mounted Power Plant TESTE] HSLA Sue fe S55 PROPOSED ACCESS ROAD EER a aat d Suet hc pote cal inarteManca|ee Ft Li 230 3,Nuvista Light&Power,Co.Fs Oonlin Creek TransmissionLinePreliminaryRouteAlignment "ExpandedViewLineSectionA-Btec"Map1A fal 9 Bettine,LLC s 5 alt Waa . SEA Btn ee 2iP *POR S -- 3 Scale |9 Rae ee "4 Nuvista Light&Power,Co.} .4 Donlin Creek TransmissionLine38heedPreliminaryRouteAlignment5AgelExpandedViewLineSectionA-Boe$8 Map1B a re Ly Baws eat EsES Bb iii bie,Deen :cAhe Oi Cera .:"6 ee:te fl hicdpimailaonalZyteeNaeSWZCRISpeesirens;cet)ShatiGot a3 Nuvista Light&Power,Co.?en LE aan "§Doniin Creek TransmissionLineMESAakPrineRodeAton AL:Bettine LIC i ,A BEeSceDemeans WSS EW O1O ROAdOA®89109 19 WIR AOS FEO TE FPENOP SOL O-£"PEF WE LOOT a P. ET romaeccngeawes PEE MO PANE COR eevee ota.1 AWHOTAd & *098 @ wiod Smwecy109 Re:;afaeesspb.§Tp tanteelL} ele 4 eee ; £*2$e Salil fulsi@one Pade ee ne etdhearin | ee Gi ®OuzuSg S " ' ¥ 5 ey i =:2:aEyceaEse9OEQo83a) es Gh)CaN eae O71 'eumeg eyes O-g uoRDagour}|waunibityanoyAeURUIFa jSu]UOFSSIUSURY)48010 UILUON Point D @37.9 mi. perl pero W G1"§.69) <a ;: BieiinaseSe 'E[neo*58.137 |{wiettanie At 87 mieA =I WietF 14.304; ey Ae i reaaWoeseAE »1 Nuvista Light&Ps is£4 Donlin Creek Transmission Line ©Preliminary Route AlignmentLineSectionC-D a = VA.elorm e.cam®2603 Gelorme 3-6 Topetunds&,Bate copyright sf santent ewner.Game ==| N61*43.715"W160"47.883" le |Ge 12 PointD@ eeoie="f- Donlin Creek Transmission Line Line Section D-EiMap4of13 X55 Bettina,LLCcaneaseva ©2002 DeLorme.3-0 TopoQuads &,Data copyright of content owner.www.datorme.cont int E@ 54.5mi,YP, ? SMa :4 aa re Nuvista Light &Power,Co. \.Donlin Creek Transmission Line>Preliminary Route AlignmentLineSectionE-F Map5 of 13 So Betting,LLC @ 2002 DeLorme,3-0 Tapocuens &Data copyright of content owner. wenn,detorme,com Hel?32.558. "[W160"21.667 SaaS om / :*ite LES ks: Sz ,é F _1.01 ttl @73.7on<<f N61"32.525"|!W160"18.521 elected 2.8 mi.aS Ra a hee PointF@70.1 mi. ee LEB Ss "] uvista Light &Power,rn{|Donlin Creek Transmission Line &<3]Preliminary Route Alignment » "4 Line Section F-G # <y:|Map 6 of 13 . 21 Bettine,LLC "NSS es OL ONOO PASTAANTENLawe 2 2002 DeLarme,3-0 TopeQuada 02 Data cepytight of santent owner.:WWW.Helerms.oom f hat ae afh439mi@ 05. Ag Point H @ 100.9 atri@ a2 V4PgRaeSETNS34 64865)1.19mi@ 41.2)7 eabi wisor 54014Oger@811f AK 0.84 mi @ 79.4 ='¢.feos :Nae waa ei Nuvista Light &Power,Co.Gecepce&2002 DalLortne,3-D TopeQueds 0),Data topytigit of content dwiter, WW.Belerme.som Daeepeneewe AL9S0:* 11812 35.734W150?44.532 38.4 : 3847.35.3 fis @ 1188 189°azetr oy geet 1°.36,184'4. TNA 35721WIE9*27:302 7 &DELORME @ 2002 DeLorme,3-D Top verw.delorme.com owner, 6.184"foo25660'lt s ach Ae ere eee 7 an! Net Be aueHofapf BS35.943 1S (2.28 VREPA204mi@72148 zi ;PORE et rd SR SS Wi59"0.Sere pe CBI NET 35:938".-cm V158°58.239 bhHAR!eyekAna oeFaroe Ya temi @ 644 ; *ee'head4procesaegeIDa?faye |Task bac %Nuvista Light&Power,Co.: Donlin Creek Transmission Line Preliminary Route AlignmentLineSectioni-J LA faa]PointJ@132.8 mlAlremes7 xFTIL418mi@goFR= Ate od @DELORME henizieeelanl x |74?2002 Dalerme.3-0 TopeQuada #2 Date copyright af sentent ewer.i Peal jWW.Delormas.com 7 wse i ated Lands |}1 See PointJ@132.8 mi. we2h0.98 mi@ 98 Point K @ 146.1 mi. Light &Power,Co.! Donlin Creek Transmission Line Preliminary Route Alignment ,Nuv ta5 " ar &TopoQuads 4 Reta copyright of content awner4@2062GaLerme. wwe delorme.cort NW1582:16.856)] yy a N64 36.41.93 mi@ B3|>LIWASB\23.705)eA XY2amas. ction K-L @? uy ayoiDWy Ista Light &Powe! Map 11 of 13 gaat ra Betting LLC .yrs sa p="PointK @ 14 "ree fe0.75miwy ru.e y ree Noy gl?be °weer dd ae 2.ee ELS Sig.ae *=AALS :: --e =,_ 'RetTeset Pea i DELORME &2603 BeLerma.$-8 TapeSueds &Data sopyright of eantent gener.Ween.delorm.com | Ne teels ay bie087 mi @ 333 3-8 ENP MAG van 'Point M@ 477.5 mi. 2.67mi@ 89,jNE fo52'Re veA936 ABS bse 1:5 .41.92 mi @ 36.835 5.73mi@360)y SN EESN :ie rar aN Ni Re 3 .Peas i= asaq Nuvista Light &Power,Co. @ Donlin Creek Transmission Line ::a”:ree ::<8 Preliminary Route Alignment x *CEs eS iow :SGU Uf SI Line SectionL-M a a ad .NN ha Set Le ei.¥as if Map12of13 ree oS SET TNT EL ed FRNA SP Betine,uc DELORME ==:|™: ;:°F)'*'” ®2002 DeLorme,3-0 TapoQuads %&Data copyright of content owner,o www.delarme.cam ane Sy ned ok epee - <cecenas Oh itaOe aeSENNESCSNPointN@191.2mi.Ef &N62°0.723 ERR 3 W158"11.822". ES he re6.9f f 1973mi@1.7} TAN a 1.4 mi.12.47/7.2 kV ea Overhead/Underground .3ETAOTERO S8mi @ AL pula TNg1°°51,869' SSN Seal cee W158?9.025" "hcl Proposed Crooked Creeke®ae ee<<Substation D mi.177.8 pm 7 10.87 mi @ 333.3 Te Li!Donlin Creek Transmission Line &755 &5 eZ iB Pretiminary Route Alignment Rete Bee e be ; : =Neate me f SY oy Point M @ 177.5 mi. @ 2002 DeLorme,3.0 TopoeQuads @.Data copyright of cantent owner,|ween.delarmecom Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 SECTION IV-2 TRANSMISSION LINE FEASIBILITY DESIGN A.INTRODUCTION Nuvista Light &Power,Co.is proposing to construct a centralized power plant at -Bethel in combination with a 191 mile,138-kV transmission line from Bethel to Donlin Creek mine,as a means of providing power to the Donlin Creek mine and eight villages. The feasibility design for the 138-kV Donlin Creek transmission line portion of this project is discussed below. B.VOLTAGE SELECTION 1.Donlin Creek Mine Transmission Line There were three transmission voltage levels investigated during the conceptualstudy'for supplying power to the Donlin Creek gold mine project,from a centralizedpowerplantlocatedinBethel.Voltage levels considered were 69-kV,138-kV and 230- kV.Initial power flow studies revealed that a transmission voltage of 69-kV provided unacceptable performance.Additional power flow studies indicated that a transmission voltage of either 138-kV or 230-kV would provide satisfactory electrical performance. Several factors were then examined to determine which of these two voltage levels should be selected.These factors included system electrical performance,line losses, transmission line construction costs,and associated substation construction costs.Based on these factors the 138-kV transmission voltage level was selected as most appropriate voltage level. Additional system studies were conducted by Electric Power Systems,Inc.(EPS) as part of this feasibility study to confirm that a 138-kV transmission voltage would adequately serve the assumed long-term power needs of the Donlin Creek mine and the Calista region.These studies have confirmed that an average mine load of up to 70 megawatts can satisfactorily be supplied by a 138-kV transmission line using a conductor size of 954 ACSR or equivalent.The system studies are discussedin subsequent sections of the report.;, C.SUMMARY OF ELECTRIC POWER SYSTEMS,INC.(EPS)STUDY' EPS was retained as a subconsultant to perform electrical system studies on the proposed 138-kV Donlin Creek transmission line,Bethel power plant alternative.These studies included steady-state power flow,short circuit,switching and transient stabilitysimulations.The system as modeled for each study included the proposed 138-kV 1 Calista Region Energy Needs Study Part J,July1,2002.?See Appendix D for complete EPS study. TRANSMISSION LINE FEASIBILITY.DESIGN Section IV-2.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 transmission line and either a coal-fired or combined-cycle combustion turbine plant located at Bethel. Results of the study shows that the proposed 138-kV Donlin Creek transmission line is technically feasible and provides acceptable steady-state performance under various load levels.The study assumes a Static Var Compensation (SVC)station is constructed at the Donlin Mine substation by Placer Dome,Inc. Transient stability studies indicate that a 10 MVA reactor should be installed at the Aniak substation to limit voltage rise to acceptable limits when energizing the transmission line.These studies assume that the 138-kV line is de-energized and all load and transformers along the load are offline.The line is then energized by closing the 138- kV breaker at Bethel,picking up the line all the way to Donlin Mine on the 138-kV side. Should the average mine demand exceed approximately 60 megawatts,the results of the study show that it would be prudent to install an SVC station at Aniak,although a. series of switchable capacitor banks could be used.While a bank of switchable capacitors would provide acceptable steady state voltages,an SVC would provide better control oftransientvoltage,especially when controlling voltage during mine outages or when energizing the line. 1.Power Flow Simulations Power flows were run for the proposed system with Bethel and village loads at year 2040 projections and mine loads of 0,55,70,and 85 MW.The three mine loads of 55,70 and 85 MWs were included to span the possible load demand range of the mine. Placer Dome,Inc.engineers have indicated that the connected mine load would most like range between 70-85 MWs,with approximately 80%of the connected load operating at any one time.Therefore,this study assumes that for 70 MWs of connected mine load,the actually operating demand would be approximately 55 MW,and for 85 MW of connect load the operating demand would be approximately 70 MWs and that the maximum possible mine demand would be 85 MWs,which represents the maximum anticipated connected load. The initial power flow results indicated a need for additional voltage support along the 138-kV transmission line during heavy mine loading periods.Jt was assumed that Placer Dome,Inc.would install an SVC at the mine substation.The size of the SVC to be provided at Donlin Mine was unknown.Power flows with the mine load at 55 MW and only one SVC located at the mine showed low voltages on the 12.47-kV distribution bus at Crooked Creek of 95.7%,with full tap changer control,with the mine SVC output of 31.7 MVAR.The SVC was set to regulate the mine 13.8 kV,low-voltage bus,to 1.0 per unit.When the mine load increased to 85 MW,with only one SVC located at the mine,all voltages decreased with the 12.47-kV bus at Crooked Creek decreasing to 88.5%,with a Donlin Mine SVC output of 81.5 MVAR.Under heavy loading conditions it would be necessary to install an SVC or a bank of switchable capacitors at the Aniaksubstation,which is located roughly midway along the transmission line.While a bank of TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 switchable capacitors would provide acceptable steady state voltages,an SVC provides better control of transient voltage,especially when controlling voltage during mine outages or when energizing the line. The calculated voltages on the 12.47-kV buses at the remote village substations are based on using typical distribution transformer impedances (from American National Standard C57.12.10 and Industrial Power System Handbook by Beeman)and based on using a transformer with LTC capability of +10%tap.All distribution voltages were regulated to the range from 99%to 101%voltage within available taps.Voltages could be improved further by improving the load power factor,and/or adding distribution capacitors.The loads used in these studies are worst case maximum peak scenarios, expected in the year 2040.The most significant voltage problem occurs at Crooked Creek on the 12.47-kV bus.The power flow results indicate a need to provide some corrective action or replace the Crooked Creek transformer with a larger transformer if the mine load and Crooked Creek loads begin to approach their maximum assumed values. 2.Transient Stability Simulations Transient stability simulations were conducted using the PSS/E software. Simulations included loss of generation,loss of mine load,motor starting,and line energizing.Typical dynamics data from other generators of comparable size were used for the proposed generating units at Bethel Power Plant. a.Loss of Generation Transient stability analysis assuming the loss of the largest on-line unit at Bethel Power Plant was conducted.This outage was run for the maximum load case,Donlin mine at 85 MW.In order to survive this outage,load shedding must occur somewhere in the system.For study purposes,load shedding relays were placed at the Donlin mine,in 3 stages.Each stage sheds 25%of the mine load,with stages set at 59.0,58.7,and 58.4 Hz.These settings are somewhat arbitrary,but show that a unit loss can be survived with appropriate load shedding.Load may be shed on the distribution system or at the mine. The only significant issue is to have enough load on load shedding to exceed the largest anticipated loss of generation.Transient stability results show a frequency decay to just below 58.4 Hz,with all three stages of load shedding picked up.The frequency then recovers to 60 Hz. b.Loss of Mine Load The transient stability simulation for the complete loss of the mine load represents a 138-kV breaker opening at Donlin Mine.The mine load is lost along with the Donlin SVC.Simulations were run at both 55 and 85 MW of mine load.Simulations show a transient frequency rise to around 61.5 Hz for a mine load of 55 MW,and 62.7 Hz for a mine load of 85 MW,returning to nominal in 11 seconds.The Aniak SVC regulates the138-kV line voltage very quickly back to near 1.0 per unit.The transient frequency rise is significant due to the large percentage of total system load residing at Donlin Mine. TRANSMISSION LINE FEASIBILITY DESIGN .Section IV-2.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 Remedial action schemes have not been studied to reduce the over-frequency conditions, but a remedial action trip of one or more Bethel units would significantly reduce the over-frequency magnitude.Alternately,staggered over-frequency relaying of the Bethel units could be used to trip generation without a transfer trip signal from the mine. Acceptable over-frequency conditions for the generating units should be discussed withgenerator/turbine suppliers.- c.Motor Starting Transient stability simulations were run for a motor starting condition at Donlin Mine from preliminary mine load estimates the largest single load appears to be the Sag Mill,sized at 9.12 MW.It may be unrealistic to expect the total Sag Mill load to be a single motor,started under full load,but this case was used to define the worst case motor starting scenario.An induction motor was used to represent the Sag Mill load,and was started under full load.Typical induction motor parameters were used for the model. The initial simulations showed a prolonged under-voltage condition during the motor start.A subsequent simulation was run using a reduced voltage start for the motor,at 60%nominal voltage.The initial condition power flow case had a mine load of 70 MW,with the motor providing an additional 9.12 MW of load when started.The Donlin Mine SVC was included in the simulation.Simulations show a prolonged under-voltage condition in the system during the motor start.Simulations show the Donlin 138-kV bus voltage below 90%for almost 10 seconds.The motor takes nearly 12 seconds to reach full speed.In order to refine these studies and determine the actual system impact of a large mine motor start,a better understanding is needed of the largest expected motor and its load at startup.A motor start condition at Donlin Mine may be the worst case scenario in terms of voltage,and may be the defining case for sizing the Donlin Mine SVC system. d.138-kV Line Energization Transient stability simulations were run to evaluate the system voltage profile when the 138-kV transmission line is energized.These cases assume that the 138-kV line is de-energized and all load and transformers along the load are offline.The line is then energized by closing the 138-kV breaker at Bethel,picking up the line all the way to Donlin Mine on the 138-kV side.Discussions with SVC manufacturers indicated that the usual method for starting a line with SVC systems along the line and voltage control issues was to use a small fixed reactor on the secondary of the SVC transformer,and then switch out the reactor when the SVC comes online.To simulate this,cases were run with no fixed reactor at Aniak,and then again with a 10 or 20 MVAR fixed reactor at Aniak, to determine the line voltage profile and the required size of the secondary reactor.The case with no reactor showeda transient voltage of nearly 118%at Donlin on the 138-kVbus,with a steady state voltage of 114%.The case with a 10 MVAR showeda transientvoltageof110%and a steady state voltage of 108%at Donlin.The case with a 20MVARreactorshowedatransientvoltageof103%anda steady state voltage of 103%at _TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 Donlin.The 10 MVAR reactor should provide acceptable voltage performance for the short time before the mine SVC can come online and regulate voltage. 3.Short Circuit Simulation Short circuit current analysis was conducted on the system.The primary purpose was to determine the required short circuit rating of equipment.Of special concern is the magnitude of short circuit currents at the existing Bethel Utilities diesel substation bus. EPS has calculated the maximum three-phase short circuit fault current at the Bethel substation 4.16-kV bus at approximately twenty thousand amperes.Should this fault current exceed the short-circuit rating of the existing Bethel diesel plant substation equipment,corrective measures will need to be undertaken that limits fault current energy.One method to limit fault current energy is by using current limiting device on the 4.16-kV bus.A second method would be to increase the impedance of the 4.16-kV transformer winding., D.DESIGN CRITERIA 1.Electric Loading The Donlin Creek transmission line would be designed to serve an average mine load in the range of 60 MW,with the capability of serving a maximum mine load of 85 megawatts.However,electrical performance at the 85 MW demand level would be marginal and would require the addition of a large SVC system at the Aniak substation. The basic conductor selected for the transmission line is 954 ACSR,Cardinal,or equivalent.Based on supplying a steady state mine load of 60 MWs,the anticipated average mine demand,at 0.95 power factor,line losses are in the range of about 5%and maximum voltage drop calculated at any of the eight village substation bus is 4.7%, which occurs at Crooked Creek.These calculations assume an SVC system is installed at the mine substation to maintain a one per unit voltage at the mine substation under normal operating conditions and that all village loads connected to the transmission line, including the Yukon SWGR feeder,are at year 2040 projected load levels.Calculated line losses of 5%and maximum voltage drop of 4.7%are within the range of acceptable values for a feasibility level study. 2.Ampacity The conductor selected for the Donlin Creek transmission line is 954 ACSR or its equivalent.The approximate ampacity rating of this conductor is 1010 amperes.This assumes a conductor temperature of 75°C,an air temperature of 25°C,and a 1.4 miles per hour wind.Resistance of the conductor is 0.1035 ohms per mile.Based on supplying a steady state mine load of 57.5 MVA,plus village and Yukon Feeder SWGR loads totaling 10 MVA,for a total of 67.5 MVA,per phase current is calculated at 275 amperes.This is approximately 27%of rate current capacity.Assuming a maximum mine demand of 85 MWs or 89 MVA,plus village and Yukon Feeder SWGR loads TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.5 Nuvista Light &Power,Co.Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 totaling 10 MVA,loading on the conductor is calculated at 415 amperes,or about 41%of rate current capacity.A maximum ambient temperature of 90°F has been selected for computation of maximum conductor temperature for the 138-kV transmission line.Usinga90°F ambient temperature and assuming a Donlin Creek mine load of 85 megawatts,themaximumconductortemperatureof122°F *4 will not be exceeded for 954 ACSR or anelectricallyequivalentconductor. E.WEATHER DATA Weather data is critical for determining reasonable physical loading criteria.This includes information on ambient temperatures,windspeed and direction,ice and snow accumulations,snow depths,and isokeraunic levels (i.e.thunderstorm activity).Weather data along the proposed transmission line corridor is limited.Weather data has,however, been collected from a variety of sources for ten different western Alaska locations that are listed in Table IV-2.1.Four of these recording stations,Bethel,Aniak,Crooked Creek and McGrath are considered representative of the weather that will be encountered alongvarioussegmentsoftheroute.The collected weather data and its application informulatingreasonablephysicalloadingcriteriaarediscussedinthesubsequent paragraphs. 1.General The 138-kV transmission line corridor spans two distinct climate and topographic zones.The "southern”portion of the transmission line or zone is defined as the section of the line located between Bethel and Upper Kalskag.Upper Kalskag is situated on the Kuskokwim River approximately 75 miles upstream of Bethel and 25 miles down stream of Aniak.Upper Kalskag is located on the foothills of the Portage Mountain range.The "southern”zone is located in the Kuskokwim River delta region,with a maximum elevation of less than 100 feet MSL.The "southern”zone is characterized by somewhat milder temperatures and decreased snow depths as compared to the "northern”section. The "northern”zone is the section that extends from Upper Kalsag to the Donlin Creek mine site.At Kalskag the terrain along the route of the transmission line gradually rises from 100 feet.above mean sea level (MSL)to an elevation of approximately 1,000 feet above MSL at the Donlin Creek mine site. Temperature and snow depth records for ten different western Alaska locations are listed in Table IV-2.1.Four of these recording stations,Bethel,Aniak,Crooked Creek and McGrath are considered representative of the temperatures and snow depths that would be encountered along the route of the 138-kV transmission line between Bethel and the Donlin Creek mine site.Of these four stations,McGrath and Crooked Creek have 3 It is anticipated that the 138-kV transmission line will be built using 954 ACSR or an equivalent conductor.Final conductor selection will be made during the design phase. "Maximum conductor temperature estimated from information discussed in Westinghouse Electrical Transmission and Distribution Reference Book,Chapter 3,1964. TRANSMISSION LINE FEASIBILITY DESIGN ,Section IV-2.6 Nuvista Light &Power,Co.--Donlin Creek Mine Power Supply Alternatives Feasibility Study SECTION IV Public Draft 03/20/04 recorded the most extreme high ambient temperature of 90°F with McGrath and Aniak recording extreme low temperatures of -75°F and -72°F,respectively. TABLE IV-2.1 Temperature (degrees Fahrenheit)* _and Snow Depths (inches) Station Period of Temp.-Extreme |Temp.-Monthly Temp.-Annual SnowdepthRecords°F Mean °F Mean °F (Inches) Highest/Lowest Highest/Lowest Highest/Lowest Extreme/Max. :Monthly Avg. Aniak 1949-1990 87/-72 65.2/-7.3 36.8/19.7 75/20 Bethel 1949-2001 86/-48 62.7/-0.8 36.8/22.1 45/10 Crooked Creek 1949-1974 90/-55 69.7/-14.5 38.2/17.3 34/15 McGrath 1939-2001 90/-75 68.5/-17.3 35.4/16.0 70/26 Emmonak 1977-1994 80/-50 60.7/-1.7 36.0/21.4 62/26 Holy Cross 1931-1975 89/-62 66.7/-7.0 37.0/20.4 130/39 Mekoryuk 1949-1973 76/-39 54,5/2.5 34,9/23.5 47/19 Mountain Village 1949-1963 83/41 61.5/-4.2 35.3/20.8 57/25 Platinum 1949-1964 82/-29 57.5/6.7 37.7/25.6 21/7 St.Mary's 1967-2000 84/-44 63.7/-0.8 37.5/21.8 42/17 Source:Alaska Climate Summaries at www.wrcc.dri.edu/summary/climsmak.html 2.Ambient Temperature Several ambient temperatures are of interest in evaluating transmission line designs.These include maximum summer temperature for determining maximum operating temperature,extreme minimum temperature for evaluating uplift on transmission structures,and the average annual minimum temperature (AAMT),which is used to evaluate tension limits to control aeolian vibration for certain types of conductors. A maximum ambient temperature of 90°F has been selected for computation of maximum conductor temperature for the 138-kV transmission line.Using a 90°F ambient temperature and assuming a Donlin Creek mine load of 85 megawatts,the maximumconductortemperatureof122°F *©will not be exceeded for 954 ACSRor electrically equivalent conductors. An extreme minimum temperature of -70°F would typically be used to investigate sag-tension limits for that "northern”section of the 138-kV transmission line.An extreme minimum temperature of -50°F would normally be used to investigate sag-tension limits for that "southern”section of the 138-kV transmission line.However,for the purposes of this study a single extreme minimum temperature of -70°F will be used.A single extreme 5 It is anticipated that the 138-kV transmission line will be built using 954 ACSR or an equivalent conductor.Final conductor selection will be made during the design phase. §Maximum conductor temperature estimated from information discussed in Westinghouse Electrical Transmission and Distribution Reference Book,Chapter 3,1964. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 minimum temperature is being used because this temperature extreme will not control sag-tension limits,except in very short spans and in uplift situations. The AAMT is used to establish aeolian vibration limits.In areas prone to aeolain vibration it is recommended that a value of approximately 20 percent at AAMT,if other means of controlling vibration are not used such as dampers or self-damping conductors. For this feasibility study an AAMT temperature of -15°F will be used for the entire length of the 138-kV transmission line. 3.Snow Ground Cover Table IV-2.1 also list the extreme maximum and maximum monthly snow depth for the ten recording stations.The extreme maximum snow depth recorded at any of these locations was 130 inches at Holy Cross,which is located on the northern bank of the Yukon River some 50 miles north of the nearest approach of the transmission line. Extreme snow depths for the remaining nine locations range between 21 inches and 75 inches.Using the average of the extreme snow depths for Bethel,Aniak,Crooked Creek and McGrath,rounded to the nearest foot,design value of 5 feet or 60 inches will be used for the entire length of the transmission line.This design value will be used to establish NESC clearances between the overhead conductors and the top of the snow pack. 4.Conductor Ice and Snow Accumulation The selection of ice and snow loading criteria has long been a subject of discussion in Alaska.Significant accumulations of ice and snow have been observed on several lines,including the Healy-Willow intertie,the Glennallen-Valdez intertie,the Terror Lake transmission line and the Tyee Lake intertie located in Southeast Alaska. Although each of these lines have experienced excessive sags due to excessive accumulation of ice and snow,no outright failures have been experienced. CEA,MEA,CVEA and AVEC design their distribution lines to NESC Heavy loading conditions and reportedly these utilities have suffered few if any failures attributable to excessive ice and snow loading.The 8.5 mile SWGR transmission line built in 1981,between Bethel and Napakiak,was designed to accommodate NESC Heavy loading and has not suffered any failures attributable to excessive snow and ice loading. The recently constructed Northern Intertie,built between Healy and Fairbanks was designed for an extreme ice loading of one (1)inch radial ice along the non- mountainous Tanana Flats section of the route.The elevation of this section of the transmission line varies from approximately 400 to 800 feet MSL. An extreme ice loading design criteria of one (1)inch of radial ice will be used for the 138-kV transmission line.This is typical of the extreme ice loading design used on other major transmission lines in Alaska as discussed. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.8 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 Selecting design criteria always involves a trade-off between reliability and costs. It is reasoned that,although it is possible to design the 138-kV transmission line to accommodate a greater ice loading or an equivalent ice and snow loading,it is recognized that it is better to accept the risk of greater than anticipated ice loading and consequent conductor snow/ground contact and/or conductor failure than the certainty of increased capital cost for improved reliability.Although the above-selected .extreme ice loading criteria is representative of the ice loading that could be expected during the life of the transmission lines,it.is recommended that a meteorological consultant be hired to confirm these loading criteria prior to final design. 5.Extreme Wind Record maximum one-minute hourly winds and average annual wind speeds at 30 feet above ground for six recording stations are listed in Table IV-2.2,columns (2)-(4). Based on the maximum one-minute hourly winds an estimated extreme 5-second gust has been calculated and listed in column (5). TABLE IV-2.2 Wind Speeds (1)(2)(3)(4)(5) Max.Wind Max.Wind Speed Speed Avg.Annual Estimated -Location Speed MPH/Dir.|Speed MPH Wind Extreme Through 1998 |Through 1977 Speed MPH 5-Second Gust MPH Bethel TUS 62 12.7 104 McGrath 75/?75 5.2 101 Kotzebue T2/E 72 12.9 97 St.Paul Island 84/SW 82 17.2 113 King Salmon TI/E 71 10.6 96 Cold Bay 75/8 73 16.9 101 The Rural Utility Services Bulletin (RUS)1724E-200,Design Manual for High Voltage Transmission Lines,recommends all transmission lines be designed to meet extreme wind conditions.Using Figure 11.2 from RUS Bulletin 1724E-200,which depicts the predicted extreme wind speed at 33 feet above ground for a 50-year mean recurrence interval,an extreme wind design speed of 100 mph was selected as appropriate for the entire transmission line.The 100 mph extreme wind design speed recommended in Figure 11.2,correlates closely with the estimated extreme 5-second wind gust speeds listed in Table IV-2.2,Column 5. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.9 Nuvista Light &Power,Co.Donlin Creek Mine Power Supply Alternatives Feasibility Study SECTION IV Public Draft 03/20/04 F..DESIGN LOADING AND LOADING ZONES Table IV-2.3 summarizes the design loading conditions that will be used for the two loading zones. TABLE IV-2.3 © Assumed Study Design Criteria ParameterLoadingConditions Units Southern Northern Zone Zone NESC HEAVY Radial Ice inches 0.5 0.5 Wind Speed mph 40 40 _Wind PSF Ibs/sf 4 4 Temperature °F 0 0 High Wind Wind Speed mph 100 100 Wind PSF lbs/sf 25.6 25.6 Temperature °F 32 32 Extreme Ice or -Radial Ice inches 1 1 Ice/Snow Wind Speed mph 20 20 Equivalent +Wind Wind PSF lbs/sf 1 1 Temperature °F 30 30 Ambient AAMT °F -15 -15 Temperature Maximum °F 90 90 Minimum °F -70 -70 Snow Depth Maximum inches 60 60 Elevation Maximum ft above 100 1000 MSL Conductor Temp.Maximum °F 122 °F 122°F TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.10 Nuvista Light &Power,Co.Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 1.Overload Capacity Factors The overload capacity factors listed in Table IV-2.4 will be used to design the transmission line structures,guys and anchors. TABLE IV-2.4 © Overload Capacity Factors Steel Structures' Overload Capacity Factor Transverse Vertical Wire Loading Condition Wind Load Tension NESC Heavy,Grade B 2.50 1.50 1.65 Extreme Wind 1.00 1.00 1.00 Wood Structures® Overload Capacity Factor Transverse Vertical Wire Loading Condition Wind Load Tension NESC Heavy,Grade B 4.00 4.00 2.00 Extreme Wind 1.50 1,33 1.33 Guys,Anchors and Foundations” Overload Capacity Factor Transverse -Longitudinal Transverse Loading Condition Wind Load Tension NESC Heavy,Grade B 4.00 2.00 2.00 Extreme Wind 1.5 1.33 1.33 2.Conductor Sag and Tension Limits Conductor tensioning limits are summarized in Table IV-2.5.The selection of tension limits depends on the type of conductor and the associated risk of aeolian vibration.For standard ACSR,a non-Self Damping Conductor,installed with out dampers,in areas that may experience aeolian vibration,RUS recommends an initial unloaded tension limit of 20%of ultimate rated strength (URS)at the AAMT.However, use of this limit will result in increased sag and shorter spans,resulting in greater costs. RUS recommends the initial unloaded tension should not exceed 33%URS or 25%URS under final unloaded conditions at 0°F for the NESC Heavy loading.The NESC stipulates a tension limit of 35%initial and 25%final conditions at 60°F.Manufactures have indicated that self-dampening type conductors can use the NESC limits.Vibration dampers can be used on non-self dampening conductors to increase tension limits,but a ™NESC 2002 Edition ®RUS Bulletin 1724E-200,8/92 Revision,Table 11-3 TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.11 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Alternatives Feasibility Study SECTION IV Public Draft 03/20/04 vibration analysis would need to be performed to determine the type,quantity and placement of dampers on the conductor.This study presumes that vibration dampers will be installed on the conductor so that the increased tension limits may be used.Increased tension limits will result in decreased sag and longer spans,and lower construction costs. Where there is a conflict between NESC and RUS tension limits,RUS tension limits shall control.. Table IV-2.5 Conductor Tension Limits” Loading Condition Southern Zone |Northern Zone Self-Non-Self Non-Self Dampening Dampening Dampening Types Conductors Conductors NESC Heavy 50%(0°F)50%(0°F)50%(0°F) Extreme Wind,No Ice 60%(32°F)60%(32°F)60%(32°F) Extreme Ice,No wind 60%(32°F 60%(32°F)60%(32°F) Combined Extreme Loading 60%(32°F)60%(32°F)60%(32°F) Initial Unloaded Tension 33%(0°F)20%(-5°F)20%(-15°F) Final Unloaded Tension 25%(0°F)------ Overhead Ground Wire tensioning limits are summarized in Table IV-2.6.Where there is a conflict between NESC and RUS tension limits,RUS tension limits shall control. Table IV-2.6 OHGW Tension Limits'?. OHGW High OHGW Extra Loading Condition Strength High Strength Steel Steel NESC Heavy 50 (0°F)50%(0°F) Extreme Wind,No Ice 80%(32°F)80%(32°F) Extreme Ice,No wind 80%(32°F 80%(32°F) Combined Extreme Loading 80%(32°F)80%(32°F) Initial Unloaded Tension 25%(-15°F)20%(-15°F) Final Unloaded Tension 25%(-15°F)20%(-15°F) °RUS Bulletin 1724E-200,8/92 Revision ,Table 9-2 ©RUS Bulletin 1724E-200,8/92 Revision,Table 9.2 TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.12 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 G.ELECTRICAL CLEARANCES (FT) Electrical clearances to grade or top of snow cover,for a transmission line energized at 138 kV for various locations,are set forth in the NESC Rule 232.Clearance requirements required by RUS can be found in Table 4-1,RUS Bulletin 1724E-200. Both sets of clearances are listed in Table IV-2.7,below. TABLE IV-2.7 Electrical Clearances Nature of Crossing NESC Section 232 RUS Clearances (ft)"Clearances (ft)'? Major Roads 22.2 23.1 Minor Roads &Driveways 22.4 23.1 Land Accessible to Vehicles 22.4 23.1 Land Inaccessible to Vehicles 18.4 18.1 Water Bodies-No Boating 20.9 19.1 The greater of NESC or RUS clearances will be maintained above grade or top of snow under NESC Heavy loading,i.e.0.5 radial ice at 32°F and maximum estimated operating temperature,i.e.122 °F.Under extreme ice loading condition,i.e.1.0 radial ice at 32°F.,NESC clearances for land inaccessible to vehicles will be maintained. 1.Foundations,Guys and Anchors It is anticipated that both direct embedment of structures in granular soils and driven pipe pile foundations will be used in permafrost and muskeg locations.Pipe piles were selected over H-Piles due to their omnidirectional strength properties.For the purpose of this study a typical pile length of 40 feet is assumed to provide for a minimumof35feetofembedment.”Past design practices have typically assumed pile lengths of twenty to twenty-five feet,and a corresponding embedment depth of fifteen or twenty feet.An assumed pile length of 35 feet has been selected for this study for two reasons. First,inspections conducted by personnel of Golden Valley Electric Association (GVEA)and Copper Valley Electric Association (CVEA)revealed that anchor and support piles for transmission structures that have been driven to twenty feet or less have significantly higher "jacking”rates than piles driven in excess of twenty feet.Jacking is the term used to describe the phenomenon by which piles are pushed upwards out-of- ground due to forces that are developed in the soils during freeze-thaw cycles.A study "NESC 2002 Edition 2 RUS Bulletin 1724E-200,8/92 Revision,Table 4.1 '3 Discussions with personnel from the engineering firm of Dryden &LaRue,Inc.,the firm that designed the recently constructed 230-kV Healy to Fairbanks,"Northern Intertie”transmission line,resulted in the selection of a typical pipe pile length of 40 feet.. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.13 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 conducted by CVEA personnel in 1988",as part of the five-year inspection program,for the Glennallen to Valdez,138-kV transmission line,revealed that out of 468 anchor piles driven to a typical depth of 12 feet,64 piles or eleven percent had jacked one inch or more within the first five years.Out of 396 support piles driven to depth of 22 feet,23 or 5.2%had jacked in excess of one-inch,with one pile having jacked 44 inches.Only 0.4% of piles driven to an embedment depth greater than 22 feet jacked.one inch or greater during the same five year period. The second reason for increasing pile embedment depth is to insure the pile will provide adequate support in permafrost locations in the event the permafrost begins to degrade.The permafrost in the Calista region exists at a temperature that is only slightly below freezing.A small increase in the average annual air temperature will result in degradation of the permafrost.Increased pile embedment depths were used on the recently constructed 230-kV Healy to Fairbanks transmission line to compensate for thispotentialproblem.”® 2.Insulator Assemblies In the past several high-voltage transmission lines in Alaska and in the "lower 48 states”have been constructed using polymer insulators.However,their history of performance is short and testing procedures to determine "in-service”conditions are just beginning to be developed.Porcelain has a long history of excellent performance. Therefore,the study assumes that porcelain insulator suspension strings will be used, except for areas that may be at a higher risk from gunshot damage,such as areas located near villages.In high risk areas,polymer insulators will be used. 3.R.O.W.Width There is no industry standard for R.O.W.widths.Typical R.O.W.widths for a 138-kV transmission lines located in undeveloped areas range between 100-150 feet.In developed areas typical R.O.W.widths are 40-50 feet.This study assumes a R.O.W. width of 125 feet for undeveloped areas and 50 feet for developed areas. R.O.W.width provides a corridor for construction of a transmission line, containment of energized conductors under extreme wind conditions,containment of structure failure,access for maintenance and control over development within the R.O.W. The R.O.W.must be of sufficient width to contain the line conductors within the R.O.W. under extreme wind conditions (i.e.conductor blowout)while simultaneously providing the necessary electrical clearance between the conductor and the edge of the R.O.W.. This requires that wider R.O.W.be acquired for longer spans.Recent perception by the public that electric and magnetic (EMF)fields,associated with a power line,may pose a health risk has played a role in determining R.O.W.widths.However,no EMF limits have been adopted by either the State of Alaska or the federal government and no field 14 Solomon Gulch Transmission Line Inspection Report PS11 Substation to PS12 Substation,March 1988.15 Source -Dryden &LaRue,Inc. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.14 Nuvista Light &Power,Co.--Donlin Creek Mine Power Supply Alternatives Feasibility Study SECTION IV Public Draft 03/20/04 limits have been used,in this feasibility study,to determine R.O.W.width requirements. The accompanying tables list the required R.O.W.width for different structure types and for two different conductors,with and without conductor dampening.Placing dampers on the conductor allows the conductor to be operated at increased tension,which in turn reduces both conductor sag and conductor blowout and results in decreased R.O.W. width requirements., Table IV-2.8 ROW Width Requirement for Given Span(1) in feet Single Pole Structures Types A Span In Feet 200 300 400 500 600 700 800 No Dampening 795 ACSR Mallard 48.1 51.9 56.5 61.7 67.6 74.2 81.3 954 ACSR Cardinal 48.7 52.8 57.7 63.3 69.8 77 84.7 With Dampening 795 ACSR Mailard 46.9 49.7 53.5 57.6 62.4 67.7 73.4 954 ACSR Cardinal 47.3 50.5 54.5 59.2 64.2 70 76.3 (1)ROW widths controlled by extreme wind blowout ROW Width Requirement for Given Span(1) in feet Single Pole Structures Types B Span In Feet -200 300 400 500 600 700 800 No Dampening 795 ACSR Mallard 38.1 41.9 46.5 n/a n/a n/a n/a 954 ACSR Cardinal 38.7 42.8 47.7 n/a n/a n/a n/a With Dampening 795 ACSR Maliard 36.9 39.7 43.5 n/a n/a n/a n/a 954 ACSR Cardinal 37.3 40.5 44.5 n/a n/a n/a n/a (1)ROW widths controlled by extreme wind blowout ROW Width Requirement for Given Span(1) in feet H-Frame and X-Frame Structures Span In Feet 600 700 800 900 1000 1100 1200 No Dampening 795 ACSR Mallard 85.6 92.2 99.3 107 115.5 124.6 134.4 954 ACSR Cardinal 87.8 95 102.7 111.4 120.8 130.9 141.7 With Dampening_ 795 ACSR Mallard 80.4 85.7 91.4 97.5 103.9 110.9 118.4 954 ACSR Cardinal 82.4 88 94.3 101.3 108.7 116.6 125.1 (1)ROW widths controlied by extreme wind blowout Table IV-2.8 shows that fora R.O.W.width of 125 feet,a 1,200 foot span can be achieved,if dampers are installed,with 954 ACSR,Cardinal,the conductor selected for use as the phase conductor on the Donlin Creek transmission line.As stated previously, this study assumes a 125 feet R.O.W.width in undeveloped areas and a 50 feet R.O.W.in TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.15 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 developed areas.These R.O.W.widths may be increased or decreased as part of the final design process. H.CONDUCTOR SELECTION Two conductors,795 ACSR,Mallard,and 954 ACSR,Cardinal,were investigated for use as phase conductors.These conductor sizes are in common use throughout Alaska. 1.Voltage Drop and Power Loss Comparison The resistance of 954 ACSR,Cardinal at 0.1178 ohm per mile is approximately15%less than the resistance of 795 ACSR,Mallard at 0.1384 ohms per mile.'®This translates into a 15%decrease in line losses and voltage drop.Line losses using 954 ACSR,Cardinal,were calculated at 4.9 MW in the EPS study with a 55 MW mine load. Line losses with 795 ACSR,Mallard,would be 15%greater or 5.8 MW.Assuming the incremental generation cost of energy is $0.03 per kWh for a coal-fired plant and $0.06 per kwh for a combined-cycle combustion turbine plant,the use of 954 ACSR reduces the cost of line losses by $236,000 to $472,000 per year. 2.Conductor Sag &Characteristics Sag and tension calculations were made for both 795 ACSR,Mallard and 954 ACSR,Cardinal.The following table IV-2.9 summarizes sags for the two conductors for span lengths between 200 and 1,200 feet,both with and without dampening,Sag andtensioncalculationscanbefoundinAppendixC. Table IV-2.9 Maximum Sag Comparison(1) Sag in Feet -No Dampening Span in feet 200 400 600 800 1000 1200 Mallard 795 ACSR 2 -6.4 12.4 19.8 28.7 39 Cardinal 954 ACSR 2.3 7 13.4 21.5 31.2 42.6 (1)Sag at NESC Heavy 0.5 radial ice,32 degrees F,no wind,final condition. Maximum Sag Comparison(1) Sag in Feet -With Dampening Span in feet 200 400 600 800 1000 1200 Mallard 795 ACSR 1.3 4.6 9.3 15.1 21.8 29.5 Cardinal 954 ACSR 1.5 5.1 10.1 16.4 24.1 32.8 (1)Sag at NESC Heavy 0.5 radial ice,32 degrees F,no wind,final condition. 16 Source -Aluminum Electrical Conductor Handbook,September 1971. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.16 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 The use of Cardinal conductor results in slightly greater sags.For a typical span length of 1,000 feet,the Cardinal conductor's sag will be approximately 24.1 feet,or about 10%greater,than for Mallard conductor.As shown in the following table the small increase in sag for Cardinal as compared to Mallard does not affect structure height requirements for dampened conductors. Table IV-2.10 Pole Lengths With and Without Dampening IH-FRAME STRUCTURES -| Calculation of Poie Length for 954 ACSR Cardinal Calculation of Pole Length for 795 ACSR Mallard No-Dampening With-Dampening No-Dampening With Dampening Span Length 4000'1000'1000'1000' To Top of Pole 2 2 2 2 Insulator Length 5 5 5 5 Sag 31.2 24.1 28.7 21.8 Snow Depth 5 5 5 5 Minimum Conductor 23 23 23 23 Height AGL . Minimum Pole Length 66.2 59.1 63.7 56.8 12'Embedment 78.2 71.1 75.7 68.8 Use Pole Length (ft)80 70 75 70 3.Phase Spacing Phase spacing was computed in two ways:(1)by performing gallop calculations, and (2)by using RUS methods for computing spacing,which is based on conductor sags. (Appendix C).For both conductors,phase spacing is in the range of 15 to 17 feet,which is typical of the phase spacing for a 138-kV transmission line. 4.Optical Ground Wire (OPGW)Selection A single overhead OPGW will be installed on the transmission structures.OPGW is an overhead ground wire that contains a fiber-optic bundle in the core of the ground wire.There are two primary purposes of the OPGW:(1)to provide communications circuits for relaying,command and control of the power system,and (2)to interconnect the eight villages located along the transmission line route and Donlin Creek mine,with the community of Bethel and each other,using fiber-optics,rather than satellite communications.This should improve the quality and speed of communications and hopefully lower the cost of communications for consumers living in the eight villages. The isokeraunic level along the transmission line corridor is very low,therefore,the OPGW is not required for lightning strike protection. An optical ground wire such as that provided by Brugg Telecom,similar to 27AW/59ACS,with a 48 or 60 fiber count,is recommended as the OPGW for use on the transmission line.Similar OPGW products are available from Corning Cable Systems. These products have sag and tension characteristics that closely match the sag and tension characteristics of ACSR conductors.Final OPGW selection will be made during final design. TRANSMISSION LINE FEASIBILITY DESIGN _Section IV-2.17 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 5.Conclusion There is little difference in the sag and tension characteristic of 954 ACSR, Cardinal conductor and 795 ACSR,Mallard conductor.However,the use of Cardinal 954 ACSR conductor results in decreased line losses and voltage drop.Therefore,954 ACSR,Cardinal was selected by this feasibility study as the recommended phase conductor.It should be emphasized that an optimal phase conductor and OPGW selection will be made during the final design phase,as changes in assumptions used for the final design could affect final conductor and OPGW selection. 1.STRUCTURE SELECTION Three primary structure types were evaluated as part of this study.These are single-pole wood or steel,H-frame wood or steel,and X-frame steel structures.Typical structure outlines are shown at the end of this section. 1.Single Wood and Steel Pole Structures Single pole structures are common on 138-kV transmission lines,especially in urban areas.Two type of single pole designs,designated Type A and B were examined. Sketches of these structures are included at the end of this section.Spans of 200-400 feet are typical.Single-pole structures are used when the structure must accommodate an underbuild circuit and/or the lines must be built in a reduced R.O.W.widths.The single pole structure Type B would primarily be used on Line Section A-B,which is the 6.0 mile section of transmission line that extends from the power plant,located south of Bethel to the north side of Bethel.A compact line design will be used in this segment to limit R.O.W.width requirements to no more than fifty feet.A 13.8-kV circuit would be under-built along the first 2 miles of the transmission line.At this point the under-build would turn east for approximately 1,500 feet where it would connect into the existing Bethel Utilities diesel plant substation.Structure Type A would be used in line Section M-N if the power line is built within the Crooked Creek to Donlin Mine road R.O.W.. Tangent single wood pole structures were evaluated based on ground line moment capacity for Douglas fir.The largest class of wood pole evaluated was H2.This self- imposed restriction was based on the premise that wood poles in the H2 class are readily available,while wood poles in the H3 class range and above are in lesser supply.Tangent steel poles were selected based on applying steel overload factors to determine wood pole equivalent.Pole sizing was accomplished by performing computations to determine the proper pole class versus pole height for both NESC Heavy and Extreme Wind condition. Computations were made to determine maximum span length based on ground line moment capacity,sags and clearances,and R.O.W.widths.Sample calculations can be found in Appendix C.Maximum horizontal spans for both wood pole and steel pole are TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.18 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 shown in Table IV-2.11.Span lengths for steel poles are in the order of 1.6 times the span lengths for wood poles. The route through Bethel attempts to follow existing property line and roadways to the extent reasonable,which produces several large line angles.In certain locations it may be difficult to guy these large angles and self supporting steel towers may be required.However,this decision will be made during the final design phase. TABLE IV-2.11 -Single Wood &Steel Pole Structure Comparison Wood Pole NESC Heavy Loading Extreme Wind Loading (100 mph) Pole Height AGL Pole Height AGL C2 C1 H1 H2 C2 C1 H1 H2 173 207 247 301)45"Pole 129 157 189 234)45'Pole Hs 167 208 246 297 ft 50'Pole og 123 156 186 229 ft 50'Pole =; 55'Pole'? | 44.55'Pole16420324728760'Pole 118 149 185 217 60'Pole 162 199 241 289)114 143 177 216) Steel Pole (Wood pole Equivalent) NESC Heavy Loading Extreme Wind Loading (100 mph) Pole Height AGL Pole Height AGL C2 Ci Hi H2 °°.C2 C1 Hi H2 282 338 401 488)45!Pole 209 253 302 370)\45'Pole Hs 276 341 401 484 ft 50'Pole 201 252 299 364 ft 50'Pole =55'Pole'?= 55'Pole27233440546960'Pole 195 243 299 349 60'Pole 270 329 397 474)191 237 290 349) Steel poles were selected for use on the single pole line because steel poles exhibit several advantages over wood poles.These advantages include: *Steel allows for the design of a product that can be protected against deterioration. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.19 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study ;Public Draft 03/20/04 ¢An additional groundline barrier coating provides extra protection at the most corrosive location. ¢When damaged by overload conditions,steel will tend to yield locally rather than "break”or "collapse”,often times allowing the line to remain in service. ¢Steel poles are readily available in a wide variety of sizes and heights and are approximately 40%lighter than their wood pole equivalent.. 2.H-frame Structures The selection of a wood H-frame structure was accomplished by performing computations to determine the proper pole class versus pole height for both NESC Heavy and Extreme Wind condition.Computations were made to determine maximum span length based on ground line moment capacity,sags and clearances,and ROW widths. Sample calculations can be found in Appendix C.Tangent single wood pole structures were evaluated based on ground line moment capacity for Douglas fir.Tangent steel poles were selected based on applying steel overload factors to determine a wood pole equivalent.Maximum horizontal spans for both wood pole and steel pole are shown in Table IV-2.12.Allowable span lengths for steel poles are in the order of 1.6 times the span lengths for wood poles. The largest class of wood pole class evaluated was H2 the smallest was C2.This self-imposed restriction was based on the premise that wood poles in the H2 class are readily available,while wood poles in the H3 class range and above are generally in lesser supply.Both braced and unbraced wood H-frames were examined.Only unbraced steel H-frames were considered. H-frames are simple,standard structures that are used throughout the electric utility industry.Several utilities in Alaska use H-frame structures.These include GVEA, HEA,CEA and others.H-frame structures,wood or steel,can be direct-embedded in rock and good native granular type soils,where the active layer is shallow.In poor soils,they can be direct-embedded using gravel or rock backfill,inserted in pipe-piles that are driven into good soils and backfilled with gravel or other selected materials.Where pile supports are required,the self-support H-frame requires only two driven piles.Pipe-piles ranging between 20-30 inches in diameter are typically used because of their omni- directional strength.Once the pipe-piles are installed,the soil inside the pipe-pile is removed with an auger,if required,to the appropriate depth and the structure legs are placed in the pipe-piles and backfilled with gravel,in much the same manner as if the structure legs were direct-embedded. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.20 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 Table IV-2.12 -H-frame Wood &Steel Structure Comparison Wood Pole NESC Heavy Loading Extreme Wind Loading (100 mph) Pole Height AGL Pole Height AGL Co C1 Ht oH2 C2 C1 H1 H2 609 753 917 1067)55'Pole 439 556 689 812) 605 740 892 1063 65'Pole 418 525 648 787 55'Pole HS =ft 75'Pole HS =ft 65'Pole 589 740 857 1077 35 Pole 386 505 598 776 75'Pole 582 725 888 1043)361 473 602 725)65'Pole Steel Pole NESC Heavy Loading Extreme Wind Loading (100 mph) Pole Height AGL Pole Height AGL C2 C1 H1 H2 C2 C1 Hi H2 1017 1250 151 5 1758\55'Pole 729 909 1115 1304)55'Pole 1020 1238 1486 1764|65'Pole 712 879 1070 1284 65'PoleWS=|4003 1248 1440 17971"75'Pole MS!oe ger so12 1287 |"75°Pole85'Pole 85'Pole1001123515011755)659 835 1037 1230) There are potential problems associated with using direct-embedded H-frames in wet,fine grain silty soils,with deep active layers.These types of soils are highly susceptible to frost-heaves.Uneven frost jacking action of the legs can create unbalanced forces and excessive strain on the structures.Unbraced H-frames appear to tolerate these unbalanced forces better than braced H-frames,whose stiffness is a distinct disadvantage in frost-heave susceptible soils. Another disadvantage of H-frames is that repair of a jacked structure leg or foundation pile will require removal of at least one leg of the structure,to either redrive the foundation piles or re-auger the hole for direct-embedded structures.These potential TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.21 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 disadvantages are,however,offset by the fact that using steel H-frame structures results in the lowest construction cost for the Donlin Creek transmission line.See Section VI. The calculated average span length using H-frame structures on the Donlin Creek line is approximately 955 feet. 3.Steel X-frame Towers The guyed X-tower tangent structure has been widely used throughout Alaska.It was used on the Glennallen-Valdez,the Tyee Lake,Anchorge-Fairbanks Intertie,the Northern Intertie,the Bradley Lake,and three Beluga to Anchorage lines.The primary advantages of the X-tower design are its longitudinal stability,its flexibility and the relative ease that a tower can be re-leveled when support piles have jacked and the structure requires re-leveling.Inspection of the Glennallen to Valdez 138-kV transmission line in 1988 revealed that frost-jacking action on the support piles had resulted in as much as 44 inches of differential leg height on one particular structure.The X-frame structure withstood these differential forces without damage. Originally X-towers were constructed of latticed aluminum and as a result,the towers were relatively light weight.Aluminum lattice towers were used to construct the Beluga to Anchorage transmission lines.However,several years past,manufactures stopped making the aluminum lattice towers.On new transmission line construction the heavier steel X-tower is used. The X-frame tower is also a more complicated structure to design,fabricate and assemble than a typical H-frame structure.Normally,loading tables are developed and provided to the manufacturer.The manufacturer uses the loading tables to design the X- tower assembles.Unfortunately the recent trend by manufacturers has been towarddesigningandfabricatingevenheaviertowers.'”The increased weight of the steel X- framed towers has largely eliminated the advantages of using X-towers,especially in remote areas such as western Alaska,where freight and labor costs are substantially greater than for projects constructed in more developed areas of Alaska. There are two primary disadvantages of steel X-structures as compared to the steel H-frame structure.First,each X-frame structure typically requires two support © piles,ranging between 8-12 inches in diameter and two anchor piles,ranging between 8- 10 inches in diameter,are required,for a total of four driven piles.Second,X-towers cannot be direct-embedded in soils,support piles and anchor piles must be installed regardless of the soil conditions.This requirement increases construction costs,compared to direct-embedded H-frames,in areas where good granular soils are encountered.The calculated average span length using X-frame towers on the Donlin Creek line is approximately 955 feet,which is identical to the average span length for H-frames. 7 Source:Dryden &LaRue,Inc. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.22 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 J.DONLIN CREEK TRANSMISSION LINE DESIGN ALTERNATIVES The engineering firm of Dryden &LaRue,Inc.was subcontracted to prepare construction cost estimates for X-frame and H-frame alternatives.See Appendix C. These alternatives are discussed in the following paragraphs. 1.Single Pole +H-frame Structures In this alternative,direct-embedded single poles would be used in Line Section A- B,which is the 6 mile long section of transmission line that extends from the power plant, located south of Bethel,to the north side of Bethel.Average span length in the single pole section is 295 feet.The remaining 185 miles of transmission line will be built using steel H-frame structures. Two foundation alternatives were examined for supporting the steel H-frame structures.Alternative 1 assumes pipe-pile foundations would be used to support the H- frame structures along the entire length of the route.Alternative 2 assumes pipe-pile foundations would be used to support the H-frame structures in the 80 miles of marshy, frost-heave susceptible soils found between Bethel and Upper Kalskag and direct- embedded H-frames would be used for the remainder of the line route.The number of structures and pile foundation for these two alternatives are summarized in Table IV- 2.13.Average span length for either of this two foundation alternatives is approximately 955 feet. '2.Single Pole +Combination of X-towers and H-frame Structures In this alternative,direct-embedded single poles would be used in Line Section A- B,which is the 6 mile long section of transmission line that extends from the power plant, located south of Bethel,to the north side of Bethel.Average span length in the single pole section is 295 feet.The remaining 185 miles of transmission line would be built using steel H-frame and steel X-towers. X-tower pipe-pile supported structures would be used to construct the power line in the 80 miles of marshy,frost-heave susceptible soils found between Bethel and Upper Kalskag.Pipe-pile supported H-frame structures would be used along the remainder of the route.The number of structures and pile foundations for this alternative is also summarized is also included in Table IV-2.13.Average span length for this alternative is also approximately 955 feet. For comparison purposes the average span length for the X-tower section of the Glennallen-Valdez transmission line is approximately 960 feet,which equates to 5.5 structures per mile.Of the numerous transmission lines previously built in Alaska,the Glennallen to Valdez 138-kV transmission line is considered the most comparable to the proposed Donlin Creek transmission line.Soils and weather conditions between Glennallen and the Thompson Pass area are comparable to the soils and weather conditions found along the Donlin Creek transmission line route.The Glennallen-Valdez TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.23 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 line was constructed with a combination of steel X-frame structures and wood H-frame structures with steel crossarms.X-tower structures were used for a distance of about 50 miles,in the frost-heave susceptible soils found in the Copper River Basin.H-frame structures were used in the foot-hills of the Chugach mountains,where soils were suitable for direct-embedment.Massive steel X-towers and A-frames were used to traverse the Thompson Pass area where snow depths often reach fwenty feet or more.Such massive structures will not be required on the Donlin Creek transmission line. Table IV-2.13 Number of Structures/Pile Foundations Alternative SP H-frame |X-towers |3-Pole Angle |Pile Fdns SP+H-frame all Pile Fdns 100 943 0 83 2133 SP+H-frame,Pile Fdns +DE |100 942*0 83**893 SP+H-frame+X-towers 100 530 412 83 2133 DE=Direct-Embedded (*)412 structures on Pipe-Pile Foundations,530 structures Direct-Embedded (**)23 structures on Pipe-Pile Foundations,60 structures Direct-Embedded 3.Life-Cycle Costs Past studies have found the 100 year-life cycle cost for H-frame and X-towers tobenearlyidentical.'®Therefore,from a long-term life-cycle perspective,there is no decided advantage to using steel X-frame structures over steel H-frame structures. 4.Conclusion Two types of tangent structures would be used to construct the Donlin Creek Transmission Line.Single pole structures are recommended for use for constructing the initial 6 miles of power line to limit R.O.W.width requirements for that section of line that traverses south-to-north through the community of Bethel.Steel H-frame structures are recommended for use on the remaining 185 miles of the transmission line.The use of self-supported steel H-frame was evaluated to have the lowest construction cost per mile, primarily because H-frames can be direct-embedded in granular soils while X-frames require more costly pile supports in these same soils.The one hundred-year life-cycle cost of both structure types has been determined to be nearly identical. K.STRUCTURE FOUNDATIONS AND ANCHOR SELECTION 1.Structure Foundations The Donlin Creek transmission line corridor traverses two distinct soil zones. The "southern zone”is defined as the section of the line located between the Bethel power plant and Upper Kalskag.Except for the immediate area surrounding Bethel,the 18 Copper Valley Intertie Feasibility Study,R.W.Beck,April 1994. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.24 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 southern zone consists of marshy,tundra and lake covered lowlands,composed of fine grain sands and silts,and underlain with moderately deep permafrost.It is anticipated the depth of the active soil layer in this zone would be in the range of 3-5 feet.This type of soil is typically unsuitable for direct-embedded structures.Deep driven pipe-piles would be used in this zone to support transmission structures.Pile supported structures have been used in the construction of most major power lines in Alaska,in this type of terrain. Terrain elevation for this portion of the line varies from a minimum of 13 feet to a maximum of 73 feet.Typical steel pipe pile supports would be 40 feet in length,between 18-24 inches in diameter,with a one-half inch wall thickness,driven 35 feet into the permafrost.In general the pipe pile inside diameter should be four inches greater than the diameter of the pole inserted into the pipe.Each H-structure would require two pipe piles. Driving the pipe pile typically causes the soils within the pile to subside so that augering to remove soils from within the pipe is not required.After the pile is driven,a pole is inserted into the pipe pile.The pole is supported by continuous steel strap that extends from the lip of the pipe and cradles the bottom of the pole to prevent it from settling below a predetermined depth.Once the steel pole is centered in the pipe,the pipe is filled with gravel to "lock”the pole into position within the pipe pile.The gravel also transfers external stress imposed on the pole from various horizontal and vertical loads,to the pipe pile and the earth. The community of Bethel is,for the most part,located on slightly "higher”and "drier”ground than encountered elsewhere along the "southern zone”line corridor.It is anticipated that direct-embedded foundations,with poles embedded to a depth of 15 feet, would be used on the first 6 miles of single pole transmission structures (i.e.line Section A-B).Bethel Utilities,Inc.directly embeds its distribution poles and while the utility has experienced pole jacking problems,the number of poles affected has not been excessive. The "Northern Zone”is that portion of power line located between Upper Kalskag and the Donlin Creek mine.The terrain along the transmission corridor in this zone rises gradually from 100 feet at Upper Kalskag to an elevation of approximately 1,000 feet at the Donlin Creek mine site.It is anticipated that more granular,moderately drained soils would be encountered,along this portion of the route and therefore,it would be possible to directly embed structure legs into the earth,rather than using driven piles to support the transmission structure.Direct embedment requires augering or digging to sufficient embedment depth,typically 9 to 15 feet,setting the poles or structure,backfilling and tamping.There may be areas within the "northern zone”that sound rock is encountered. Direct embedment in rock generally requires holes to be drilled,blasted,excavated and then backfilled. 2.Anchors _Anchor selection would be highly influenced by soil conditions.Except for the initial 6 miles of transmission line (i.e.liné Section A-B),anchors in the "southern zone” would primarily consist of driven pipe-piles.The typical anchor pipe-pile would have a diameter of 8 to 10 inches,with a one-half inch wall thickness. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.25 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 Anchors in the Bethel area could consist of driven pipe piles,log anchors, expanding anchors,or perhaps deep driven manta ray anchors.Log anchors,where excavation is practical,have been in favor in Alaska due to their exceptional holding capacity.Selection of appropriate anchor type will be made during final design. Anchor selection in the "northern zone”could consist of log anchors,expanding anchors,screw anchors,driven manta ray anchors and rock anchors.Selection of appropriate anchor type(s)will be made during final design,following a more detailed soil investigation along the route corridor. L.FEASIBILITY STUDY CONSTRUCTION PLAN Several factors will determine how the Donlin Creek transmission line will be constructed.A project schedule is presented in Section VII and is based largely on the below discussed assumptions. 1.Construction Zones The Donlin Creek Mine transmission corridor can logically be divided into two construction zones.The "Southern Construction Zone”and the "Northern Construction Zone.”The Southern Zone,as previously defined,is the section of the line corridor located between the Bethel power plant and Upper Kalskag.The southern zone consists of marshy,tundra and lake covered lowlands,composed of fine grain sands and silts,and underlain with moderately deep permafrost.It is anticipated that a minimum of two contractors would be employed to construct the transmission line.One contractor would be responsible for construction in the Southern Zone and the second contractor for the Northern Zone. Structure foundations in the "Southern Zone,”outside the community of Bethel, would consist primarily of deep driven pipe-piles.Because the southern zone consists of marshy,tundra and lake covered lowlands,construction activities in this zone could occur only during the winter months,when the streams and ground are frozen and covered with a protective layer of snow.Since there are very few trees along this section of the line corridor,ROW clearing would be minimal.There are several anadromous fish streams that must be spanned in this section of the corridor. The "Northern Construction Zone”is that portion of the power line located between Upper Kalskag and the Donlin Creek mine.It is anticipated that more granular, moderately drained soils would be encountered along this portion of the corridor and direct-embedment of structures would be possible.At Upper Kalskag there is an abrupt transition between the lowlands and the boreal forest of the mountainous highlands.From Upper Kalskag to Crooked Creek,white and black spruce dominate with quaking aspen, balsam poplar and paper birch locally present.The elevation slowly rises from approximately 100 feet at Upper Kalskag to 200 feet at Crooked Creek.Simultaneously, the sparse forest of the Kalskag area gives way to an ever increasing forest cover,with maximum forest density occurring between Aniak and Crooked Creek.Between Crooked TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.26 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 Creek and the Donlin Creek mine site,the terrain climbs rapidly in elevation,from 200 feet at Crooked Creek to approximately 1,000 feet above mean-sea-level at the mine site. The relatively dense forest of the Crooked Creek area rapidly gives way to sparse forest cover,tundra-covered slopes and barrens as the elevation increases.Construction activity in this zone could continue year-round. 2.River Access The proposed transmission line route parallels the north bank of the Kuskokwim River from its origin at the power plant substation located south of Bethel to Crooked Creek,a distance of approximately 178 miles.The Kuskokwim River will be used to move material,equipment,construction camps and labor to several staging/marshalling areas along the river.Once construction has moved a few miles outside of Bethel,it will be necessary to establish marshalling areas at about 10 mile increments.A total of 18-20 marshalling areas would be required.This would allow the construction contractor to off- load necessary materials to work 5 miles in either direction from the marshalling areas. Since the Kuskokwim River freezes during the winter month,all material would need to be transported and off-loaded at the marshalling areas between late-May to mid- September.Marshalling sites would need to be located on dry ground sufficientlyelevatedabovetherivertopreventflooding,during high water periods.This should notposeaproblemintheNorthernConstructionZone,but it could be difficult to locate suchsitesintheSouthernConstructionZone. Although the corridor parallels the Kuskokwim River,it is located at some distance from the river in certain areas of the "Southern Construction Zone.”The maximum distance the line veers away from the main river channel is approximately 4.7 miles.This occurs at a location slightly north of Pot F.From just east of Upper Kalskag to Crooked Creek,the line corridor is typically less than one-half mile from the river.(See Maps at the end or Section IV-1.) At Crooked Creek the route turns north for a distance of approximately 14 miles to the Donlin Creek mine site. 3.Road and Trail Access From reviewing topographic maps,supplemented by aerial reconnaissance,itdoesnotappearthattherearemanytrailsthatleadfromtheKuskokwimRivertothe construction corridor.To access the transmission line corridor,the contractor must construct access roads from the marshalling areas to the transmission line corridor. Temporary ramps and roads may be needed for staging the construction effort. Temporary fill may need to be placed in wetlands to build ramps and roads for construction of the transmission lines.The fill must be removed after the construction is complete.No permanent roads would be built for maintaining the transmission line. However,a primitive 12-feet travel way may need to be grubbed in certain areas,i.e. stumps removed,within the ROW,to allow movement of construction and maintenance TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.27 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 equipment where terrain permits.Only minimal grubbing,if any,would be required in the treeless Southern Construction Zone. Because the terrain in the Southern Construction Zone consists of marshy,tundra and lake covered lowlands only winter construction is possible.Prior to the commencement of construction access roads,the soils,lakes and rivers must freeze to a depth sufficient to support heavy equipment and sufficient snow cover must exist to prevent damages to the vegetation.If snow cover is insufficient,then ice roads must be constructed.Typically,government agencies will require twelve inches of frost and twelve inches of snow before allowing construction activity to proceed on wetlands.In a typical winter season,construction activities probably would not commence until December and would need to end by mid-April,to prevent damage to the vegetation.It is anticipated that ice roads would be built in December to allow construction activities to begin by mid-January. 4.Foundations Direct-embedment and deep driven pipe-pile foundations would be used to support the transmission structures.Direct-embedment is typically the most cost-effective foundation.Direct-embedment is,however,only practical where granular soils or fractured rock allow the soil to be readily augered and the soil provides sufficient resistance to overturn forces.As discussed in previous sections,direct-embedment appears to be appropriate for the Northern Construction Zone,which extends from Upper Kalskag to the Donlin Creek mine,a distance of approximately 106 miles.Due to the remoteness of the Northern Zone it is anticipated that relatively light weight and easily transportable augering equipment would be used.This type of augering equipment is limited in the amount of down-pressure it can apply to auger a hole,which in turn increases the time required to auger a hole.Based on the augering rates on the recently constructed Northern Intertie,it is estimated that an augering crew can auger,on average,two holes per day.'” Deep driven pipe-pile foundations would be used in the Southern Construction Zones to support transmission structures,except within the community of Bethel where direct-embedment would be used.Efficient and productive pile-driving depends largely on the type and size of equipment used for the task.There are two broad categories of pile drivers that are generally used to install piling on transmission line.The first category makes use of a vibratory hammer and the second category uses a hydraulic hammer.There are of,course,variations of each of these categories.Both vibratory and hydraulic hammers are suitable for installing the 40 feet sections of pipe-pile recommended by this study. Regardless of whether a vibrator or hydraulic pile-driving equipment is used,the equipment is typically large and heavy and travels slowly along the ROW.Based on the pile driving rates on the recently constructed Northern Intertie,it is estimated that a pile 19 Source:Dryden &LaRue,Inc. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.28 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 driving crew can,on average,install 2 piles per day.*”As previously discussed a typical steel pipe-pile foundation would be 40 feet in length,between 18-24 inches in diameter, with a one-half inch wall thickness,driven 35 feet into the permafrost §.Structure Erection Three basic methods for structure erection can be used on H-frame and single pole structures.The first of the two methods involves delivering the disassembled structure to the structure site location prior to or at the time the foundation is completed. The disassembled structure is field assembled,erected,with travelers,and set in place immediately after the foundation is completed.The second method can only be used on sectional steel poles and involves delivering the butt section of the structure to the site location prior to or at the time the foundation is completed.The butt section of the steel pole is inserted immediately after the foundation is completed.The remainder of the pole is attached to the butt section at a later time.The third method involves assembling structures at a marshalling yard and transporting the fully assembled structure,with travelers,by helicopter to structure sites after a number of foundations have been complete. All three methods are suitable for both pipe-pile and direct-embedment foundations.However,in soil conditions where direct-embedment is used,but the augered hole tends to collapse,the first and second method are the most appropriate.If method three is used with this soil condition,then it would be necessary to shore or case the augered hole,which would increase construction costs,to prevent its collapse until the structure is delivered,typically by helicopter,and placed into position. The first method typically suffers from inefficiencies because uneven terrain and field conditions,such as snow and mud,make it difficult to assemble structures on-site. In addition,the structure erection crew may remain idle while waiting for the foundations to be completed;especially in areas where pipe-pile foundations are installed,as H-frame 'structures can be erected in a significantly shorter period of time than it takes to install a pipe-pile foundation. The second method is probably best suited for direct-embedded structures.This method allows the butt section of the steel pole to be installed and backfilled immediately after the hole is augered.Final structure assembly can be completed at a later date by the erection crew.The remaining pole sections,crossarms,and other H-frame structure components can be delivered unassembled by vehicle and final assembly of the structure accomplished on-site,with the aid of a crane.In the alternative,the remaining portions of the H-frame structure can be assembled at a marshalling area,transported and installed with the assistance of a helicopter.This would involve lowering the upper position of the H-frame onto the previously installed butt sections.This method increase efficiency because the erection crew need not be dispatched until several structures are ready for 20 jd. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.29 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 final assembly.It is not unreasonable to expect that a helicopter could deliver,at a minimum,2-3 structures per hour,assuming a well-organized operation. The third method entails the complete assembly of structures at one of the 18-20 marshalling areas required for this project.Assembling structures at a marshalling area is typically more efficient and cost effective than field assembly.The disadvantage is that a large area may be needed to store the completely assembled structures until they are helicopter delivered to structure site locations.Assembly would include insulator strings, stringing travelers and fixed climbing devices for steel structures if required.This method allows for efficient use of helicopter services,and virtually eliminates standby time for the helicopter.This method is particularly suited for pipe-pile foundations,since the pile can be installed early in the project,even before structures have been manufactured and shipped.Once the structure components are delivered to the marshalling areas they can be assembled,delivered and placed in the pipe-pile foundations by the helicopter.It is not unreasonable to expect that a helicopter could deliver,at a minimum,2-3 structures per hour,assuming a well organized operation. . The study assumes either the second or third method is used for all structure erection,except for the immediate vicinity of Bethel,where single pole structures are used.It is assumed that method one would be used to erect single pole structures in Bethel. -6.Conductor and OPGW Stringing Conductor and OPGW stringing involves the installation of travelers on the insulator string,pulling in a pilot line,then pulling in,splicing and sagging the conductor and OPGW.Later operations include clipping in the conductor/OPGW and installing vibration dampers if required. Conductor/OPGW stringing and sagging would normally occur in late spring through early fall,when the air temperatures are above freezing.Sagging during periods when the temperature is above freezing is preferred,to avoid the possibility of frost or ice build up on the conductor/OPGW during sagging operations. TRANSMISSION LINE FEASIBILITY DESIGN Section IV-2.30 Typical Single Pole Structure Type A NV<-5'-8'Typical OPGW 5'Typical +138 kV Phase Conductor 55'-80'Typical Ground Line NTS Nuvista Light &Power,Co. Typical Type A Singe-Pole Tangent Structure Bettine,LLC NTS Single Pole Structure Type B 5'Typical}<- 5'Typical a 138 kv Phase Conductor so>+13.8kv underbuild (as required) 50'-65'Typical P OPGW +Telephone Ground Line Nuvista Light &Power,Co. Typical Type B Single Pole Tangent Structure Bettine,LLC H-Frame Structure 32'+2'Typical --- NZ 5"Typical 50-90'Typical OPGW Wy, 5!Typical es 138 kV Phase Conductor Optional Bracing (Wood Pole Only) 18"-24"Pipe Pile Foundation As Required Ground Line|_-------_[J- ------_|___]Nuvista Light &Power,Co. Typical H-Frame Tangent Structure Bettine,LLC NTS X-Frame Structure' 32'+2'Typical ---}} SL OPGW 5'Typical L \5'Typical -138 kV Phase Conductor NO Guys Fore &Aft | ! ! J I50'-90'Typical ]Pin Connection | .10"Pipe Pile Footing (Typical) Ground Line 1 |_L 10”Pipe Pile AnchorLLFore&Aft (Typical) Nuvista Light &Power,Co. Typical X-Frame Tangent Structure Bettine,LLC 125°Typical H-Frame Structure K-----.32°+2"Typical --- NY PGW5*Typical OPG NV Danger Tree To Be Removed Stabile Low Growth Vegetation Can Remain Nuvista Light &Power,Co. Donlin Creek Transmission Line Right-of-Way Cross-Section Bettine,LLC Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 SECTION IV-3 SUBSTATION FEASIBILITY DESIGN | A.BACKGROUND The 138-kV transmission line would originate at the Bethel Power Plant substation located south of Bethel and terminate at the Donlin Creek gold mine substation,located approximately 14 miles north of Crooked Creek.Seven step-down village substations would be constructed along the route of the transmission line to serve the needs of the communities located adjacent to the route of the transmission line.In addition a 13.8-kV express feeder would be under-built on the transmission line structures from the power plant substation,for a distance of approximately two miles, terminating with an interconnection to the existing Bethel Utilities,Inc.diesel plant substation.In reviewing the following drawings it should be recognized that the suggested substation layouts represent only one of many possible arrangements and that the final substation arrangements will likely differ in detail but not function from the suggested arrangements.Figures referred to in the discussion can be found at the end of the Section. Figures IV-3.1 shows the one-line system configuration of the proposed Bethel to Donlin Creek mine transmission system with a coal-fired power plant alternative.The one-line system configuration for a combined-cycle combustion turbine power plant is shown in Figure IV-3.2.The only difference between the two system configurations is the amount and type of generation listed. An optical ground wire (OPGW)would be installed along the full length of the 138-kV transmission line to provide for communication and control with Donlin Creek Mine substation and the seven village substations,from the Bethel Power plant. Although the 138-kV transmission line is operated radially from the Bethel Power Plant, current backfeeding back into the transmission line from various large motors located at the mine-site and from standby village and mine-site generation will require the system to be treated as a dual source system for protective relaying purposes..The recommended protective relaying system will utilize micro-processor based technology,with communications required between each terminal.A distance relaying scheme will be used for protection of the transmission line.Each of the three-phase multi-rated 30/40/50 MVA main power transformers will be protected by use of micro-processor based transformer differential protection schemes.Standard generator protection schemes,using microprocessor based relay technology,will be implemented to provide the necessary generator protection. SUBSTATION FEASIBILITY DESIGN ]Section IV-3.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 B.|BETHEL POWER PLANT SUBSTATION 1.Land-Based Power Plant Figure IV-3.3 shows a general equipment layout of the substation,for the land- based power plant alternative.To facilitate the take-off of the 138-kV transmission line from the proposed plant site location,it is recommended the substation be located in the northwest quadrant of the plant site.The substation as proposed would occupy an area of approximately 115 feet x 135 feet.The layout of the substation would be the same for both the coal-fired and the combined-cycle combustion turbine generation alternative. Three each,30/40/50 MVA transformers operating in parallel would be used to supply power to the 138-kV bus.To maintain a high degree of reliability,it is recommended that each of the transformers be connected to the 13.8-kV bus by double circuit underground feeders and that the 13.8-kV bus be connected to each generator by a double circuit underground feeder.The transformers would be equipped with multiple stage forced air cooling fans to provide for continuous operation at up to 50 MVA under emergency conditions.Using multi-stage cooling,any two of the three transformers operating in parallel would be capable of supplying the 30-year peak load projection. Station service power would be provided by two 7.5 MVA,13.8-kV to 4.16-kV transformers for the coal-plant alternative,one connected at each end of the 13.8-kV bus. For the for the combustion-turbine plant alternative,station service would be provided by two 3.5 MVA,13.8-kV to 4.16-kV transformers.Oil containment for the transformers would be provided as required. Indoor metal-clad switch gear,located in the power plant,would be used on the 13.8-kV bus to provide system protection and switching flexibility,while outdoor SF¢ breakers would be used on the 138-kV bus.Disconnect switches would be installed on either side of the three SF¢bus breaker to provide a means of isolating breakers for maintenance and repair.Bypass switches are not considered necessary on these three bus breakers.A single disconnect switch is installed on the line side of the SF,out-going line breaker.A bypass switch is included on the line breaker to provide for maintenance and repair on this breaker without having to de-energize the transmission line. 2.Barge-Mounted Power Plant The main power substation would be located on the bluff area above the barges. Figure IV-3.4 illustrates the general equipment layout of the substation,for this power plant alternative.This arrangement differs from the land-based arrangement in three ways.First,the 138-kV takeoff A-frame structure would be located in-line with the transformer bus rather than at a ninety degree angle.Second,each barge-mounted generator would be connected to the 13.8-kV bus by a single overhead circuit consisting of two 954 ACSR bundled conductors per phase.To accomplish this,a steel A-frame | structure would be constructed on each barge and a similar A-Frame constructed on the bluff.The overhead conductors installed at a low tension would span between the two SUBSTATION FEASIBILITY DESIGN Section IV-3.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 sets of A-frames.Metal-clad switch gear,located on the barges,would be used on the 13.8-kV bus to provide system protection and switching flexibility.Lastly,the substation as proposed would occupy an area of approximately 110 feet x 180 feet,which differs from the dimensions of the substation for the land-based power plant alternative.In all other aspects this substation would be identical to the main power substation as it is described in the land-based power plant option. C.DONLIN CREEK MINE SUBSTATION A 138-kV to 13.8-kV step-down substation would be constructed at a suitable location at the Donlin Creek mine site to be selected by Placer Dome,Inc.Electrical system studies conducted by Electric Power System (EPS),see Appendix D,indicate that a sizeable Static-Var-Compensation (SVC)system would need to be installed at the Donlin Creek mine substation to maintain the mine's power factor and system voltage fluctuations to within acceptable limits.The substation and SVC system will be designed, constructed and maintained at Placer Dome's expense.The substation and SVC systemmustbedesignedinaccordancewithstandardsandoperatingparametersacceptableto both Placer Dome and Nuvista.A typical equipment layout for the substation is shown in Figure IV-3.5.The incoming line breaker and bypass switch would remain under the direct control of Nuvista.This breaker would open automatically in the event of a system fault or it can be opened manually,by remote control,at the discretion of the Bethel power plant operator. D.VILLAGE SUBSTATIONS Seven villages would be provided power from the 138-kV transmission line.A typical village substation is shown in Figure IV-3.6.The primary equipment at each substation would consist of a 138-kV circuit switcher,a 138-kV to 12.47-kV step-down transformer rated at either 500 or 1,000 KVA,an electronically controlled recloser and a disconnect switch,necessary metering and control instrumentation,and a security fence. Oil containment for the transformer would be provided as required.A typical village substation would occupy an area of about 35 feet x 70 feet.The Kalskag substation would include accommodations for a future SWGR feeder.The Aniak substation would also need to accommodate additional equipments as described in the subsequent paragraph. The Aniak substation is located roughly half-way between Bethel and the Donlin mine.This substation would,in addition to the primary equipment found in each village substation as described in the preceding paragraph,include an additional 138-kV circuit switcher and a 10 MVA reactor as shown in Figure IV-3.7.A 10 MVA reactor must be connected to the transmission line to limit peak transient voltages to an acceptable level, when the transmission line is initially energized.(See Appendix D).The reactor would be connected and disconnected from the 138-kV bus by a circuit switcher.The above described design for the Aniak substation assumes a peak connected load at the mine of 70 megawatts with a typical load demand of approximately 55 megawatts.If the load SUBSTATION FEASIBILITY DESIGN Section IV-3.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 demand at the mine and/or the load connect to the northern end of the line increases appreciably,it would be necessary to install a bank of switchable capacitors at Aniak to maintain adequate steady state voltages.However,the installation of an SVC system would be the preferred,but more expensive solution,as an SVC would provide better voltage support and control than a switchable capacitor bank(s).(See.Appendix D). E.INTERFACE WITH EXISTING VILLAGES DISTRIBUTION SYSTEMS Except for Aniak,a 3-phase 4-wire 12.47/7.2-kV overhead distribution line,the interface feeder,would be constructed from each of the seven step-down village substations to connect the substation with the existing village distribution system.The point-of-connection with the village distribution system or power delivery point,will be at a location deemed to be reasonable and prudent by Nuvista.In most cases the delivery point would be at the existing diesel plant substation.The exception to this general statement may be at Upper/Lower Kalskag,as discussed below.At the delivery point, Nuvista would install a deadend structure and a three phase disconnect switch. Connection to the village distribution system,downstream of this switch,would be the responsibility and at the expense of the village utility. Alaska Village Electric Cooperative has or is planning to relocate the new diesel- generation plant about half-way between Upper and Lower Kalskag and rebuild and operate the overhead distribution system at 12.7/7.2-kV.The step-down substation for Upper/Lower Kalskag would be located north of Upper Kalskag.The delivery point for Upper/Lower Kalskag would most likely be to a point on the northern end of Upper Kalskag were the distribution line from the step-down substation can be easily connected to a 12.47/7.2-kV village distribution feeder. In the case of Aniak,the step-down substation would be located on the north bank of the Kuskokwim River,slightly downstream of Aniak.A 12.47/7.2-kV overhead distribution line would be constructed to span the river at this point:The span length across the Kukokwim at this point is estimated at 1,000 feet.Once on the south side of the river,the line would convert to a three phase underground feeder and be routed parallel to the airport into town,where it would be connected the village distribution system. The substation for Tuluksak would be located on the west bank of the river.A 2.4 mile overhead interface feeder would be constructed to connect the step-down substation with the village.The line would span the Kuskokwim River downstream of Tuluksak. The river-crossing span is estimated at 1,200 feet. The length of the connecting interface feeder from the step-down substation to the village would vary from between three-quarters of mile for Akiachak to 5 miles for Tuluskak. SUBSTATION FEASIBILITY DESIGN Section IV-3.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IV Power Supply Alternatives Feasibility Study Public Draft 03/20/04 F.BETHEL UTILITIES EXISTING DIESEL PLANT SUBSTATION A dedicated 13.8-kV distribution feeder originating at the Bethel Power Plant Substation will provide power to Bethel Utilities'existing diesel plant substation.To interface the 13.8-kV dedicated feeder to the existing Bethel Utilities substation,it would be necessary to install a 15 MVA three winding transformer at the existing Bethel Utilities substation,as shown in one-line diagrams in Figures IV-3.1 and 3.2.Bethel Utilities presently distributes power to the community at 12.47-kV and 4.16-kV,using a delta connected system.About two-thirds of the community load is served by 12.47-kV feeders,with the remaining one-third load served by 4.16-kV feeders.This three winding transformer would step-down the voltage from 13.8-kV to 12.47-kV and 4.16-kV.The transformer would also provide isolation between the 13.8-kV wye-grounded generation system and the 12.47-kV delta distribution system operated by Bethel Utilities.Based on typical transformer and generator impedances,EPS has calculated the maximum three- phase short circuit fault current at the Bethel substation 4.16-kV bus at approximately twenty thousand amperes.Should this fault current exceed the short-circuit rating of the existing Bethel diesel plant substation equipment,corrective measures would be undertaken to limit fault current energy.One method to limit fault current energy is byusingcurrentlimitingfusesonthe4.16-kV bus.A second method would be to increase the impedance of the 4.16-kV transformer winding. SUBSTATION FEASIBILITY DESIGN . Section IV-3.5 4.16/2.4KV Bus Donlin Creek Mine Substation To Be Constructed by Placer Dome _________Detail B_Oneline Diagram -Aniak Substation =YA 13.8 kV Bus || Bethel P PI I BB KV Circut 40 MVA Reactor4.16/2.4KV Bus EEO ethel Power Plant |To Bethel Power Piant Vertical Tap | and Substation \To Doniin Creek |UDS'138 KV Transmission Line4ABKVITZATRV-7.5 MVA : tapkvirexy |Vertical Tap |Station Service '0ia 438WV Creat 498 KVIN2.47 KV Xie Motor Operated )Coat Fired Steam Turin |_Switcher 2 ¢|im oO To Aniak |Qt -o-4 5|year Ww | |a | 1K 38KV presiContFredSteamTurin19mi.6.5 mi,954 ACSR'"@ S <o>To Donin Creek Mine, and Villages q anee Turbine L -Aklachak Sub.Akiak Sub.Tutuksak Sub. 45 MW on 500 kVA Ximr 500 KVA Ximw 500 kVA Xime 42.1 mi.-"@-«o»«a»3 +138 KV Bus ADDITIONS TOBETHEL UTILITIES SUBSTATIONa713,BVE12.47KV-4.16KV iia Exating Desasal Power PieriSubciaton 3 faanvnomva (47 vem ||.-_FutwreAddition |<0)j |SWGR Transmission Lineee3677GareBUYukonRiverFeederAABKVIN2.ATKV-7.5 MVA i AABKVIS MVA SKY Bus 138kV1B UL |Station Service |Future Additions ||:1 akV 16L-G13.6KV 1B LL foe |: :10 BOK 19 L-G Kalskag Sub.a 3 |500 KVA Xtme /|Leos SWGR South Feeder |Detail A f3eKv 38K .138KV Oneline Diagram-All Village Substations Except Aniak Switcher SwitcherCircuitpeoneeeee4--St |Switcher ||Vertical Tap to 138 kV Power Line Seite !,wero |0 BOK 1tJ |198 KV Crreuit 138 KW/12.47kVXime ' |€Cp>3 SWGR West Feeder ||Switcher ¢a To Vilage 25 mi :438KV .I C |Circuit |c 12.47Lo||A-Electronic Controlled | |Insert 4 ¥re |See Detail BiiAnakSub.[-BRavitaey |1000 kVA Xtmr 'ay .Gro Se SIDKWAXine500kVAXtme|Mnne Feeder 1 <3 po |+|Mine Feeder 2 1g BKVITSEKY ara 55-85 MW load 13.5 ni.|54.3 mi 12.9 mi. .To Bethel Power Plant--o ran a-¥||<a»>-3 -]}-"138 KV BreakerandBypasaSwitch Figure IV-3.1SVCSystem13.8 kV Bus |Under Nuvista Light &Power Control Nuvista Light &Power Co. 138 kV Bus System Oneline Diagram Coal-Fired Generation Alternative BETTINE,LLC 9/04/03-FJB 4,16/2.4KV Bus FeoAAGKVITZATIV3.5 MVR a'Combustion Turbine 4.16/2.4KV on j-3 ---DetaliB___Oneline Diagram-Aniak Substation,_§-=aT now ee 138 kV Clrout l Bethel Power Plant |pomrnee Tae 1OMVA Reactor | i on i |and Substation |se wimenmanine To Doniin Creek !PCy a |veraTeay Cireut 138 KVI12.47 KV Xirne Motor Operitod i ' /a-¥|Switcher 2 ¢iLey9|3 a we !SBP nm ! |a-¥Reciosure |fe 13,BKV/138KV jtneert 2 |yAMA ff ET >19 mi.65m.954 ACSR 173 mm.t+-<eT}5 Nf}Te Doniin Creek Mine and Villages a SaLa-Akiachak Sub.Akiak Sub.Tuluksak Sub,of 500 kVA Xf 500 kVA Xime 500 kVA Xtme 42.1 mi. --<<0>)-{}-" 138 KV Bus ADDITIONS TO BETHEL UTILITIESSUBSTATIONa713.BV-12.47KV-4,16kV | |Connect to BU |Future AdditionYExatngDeaalPoserPidSubetaton{3 qaanvnowva |A7KVBus |-_<h ]|SWGR TransmissionLiner----ee To 3 --Famectee BU ||Yukon River Feeder °|teween :. |138KV 47)LLFutureAdditions||:to BOKV 19 L-G13.8KV 16 LL Jo |to BOKV 19 LGfect SWGR South Feeder |Detall'A iw Oneline Diagram -All Village Substations Except AniakieleaeengSwitcher||Vertical Tap to 138 kV Power Line |13.8KV 1PLA {:0 B0KV 19 LG |438 WY Circuit 138 KVN2.47 kV Xie Motor Operated|<p>3 SWGR West Feeder ||Switcher i 2 ¢-ToVilege 95 mi 38kGirout 42.47 KV[Po ee A Electronic Controlledinserts¥!See Detail B a ea Aniak Sub.[1B aKvrtsakY |1000 kVA Xie |"a¥;Crookad Creek Sub.Chustholuk Sub500KVAXfre|sara Feder <3 po |m |Mine baad spy mre |55-85 MW load 135 mi.|54.3 rl 129m. ay -To Bethel Power Plant --»|[<P ayy -_--NC eedopmanan Figure IV-3.2 .real .sSVCSystem138kVBus|Under Nuvista Light &Power Conta Nuvista Light &Power Co. 438 KV Bus Donlin Creek Mine Substation To Be Constructed by Placer Dome System Oneline Diagram Combined-Cycle Generation Alternative BETTINE,LLC 9/04/03-FJB SubstationFenceLinewith 13.8 kV Underbuild to Bethe!Utilities'Existing Diesel Plant Substation r-a &mo85 =eis fs ee Double Circuit g ss >¥LH LH UG Feeder X2s _s8 tt 4 &¥2 t Pyae Tl "1 %|es = A A A |%+5 |Turbine4-Combution Turbine7rxiat=a &|Alternative Only -DoubleD_-..a 0)a Ce ee 9c-F a }---; _-3s=Fe ome Double Circuit L%8 |Turbine3-Double §e e e LA UG Feeder Lg 4 |Circuit Feeder @-_i i -Ls C7 54 =x x 3 LA e +-- _1!8 8 2 ®je e Be -&|Turbine2-Double°|&|Circuit Feeder+--_#6.=oo i 65 oo FA 3 j_----apsSF6CBDs13.8kV/138KV +--_oS st -XFMR-40 MVA ze?f q a -_-__IY 8 -_-_Ls -3 |Turbine1 -Double ne 7 sef-ss [Double Circuit ||*>|Circuit Feeder---udIe Uircul OT s :s a UG Feeder g ao 3 ----oa ||>aeSipee "|TN FE -S|=x 4 |i H 5 A ©Ze5°7 LEGEND: aH ¥3 a &2 CB -138 kV Circuit Breaker.¢13.BKV/138KV "3 z DS -138 kV Disconnect SwitchDSSF6CBos XFMR -40 MVA 85 es LA-138 KV Lightning Arrester|$$2 a O -Bus Support 12 SF6 CB |"o i)Ze}CD With Bypass . Switch |' 138 kV and 13.8kv 12.47 KV Express Feeder|Vertical Mount Disconnect -_to Bethe!Utilities'Existing |/|Switches Diesel Plant Substation :ae Bese Pant substation poceeee \B)p alll A-Frame Takeoff Structure \Is for 138 kV and 12.47 kV so(Circuits "20'Double Gate / / Li. 138 kV Transmission Line Figure IV-3.3ToDonlinCreekMine&Villages Nuvista Light &Power Co.SUBSTATION CONCEPTUAL LAYOUT Land-Based Generation Plant Alternative BETTINE,LLC 9/04/03-FJB NorthToDonlinCreekMine&VillagesPlantSubstationwith13.8kVUnderbuildtoBethel!Utilities'ExistingDiesel138kVTransmissionLineSubstationFenceLine20'DoubleGateq :ie c 3 ce ! °q Turbine 3 -Overhead Feeder A e e Stack Span to Barge Mountedpl.A-Frame A a |A-Frame withs13.8 kV Circuit Breaker "Frame wiSF6CBDsXENaowa,with Bypass Switch Disconnect co tenn 7 fi le C 7 c +e;i LA e 3 q Turbine 2 -Overhead Feeder|ti}4 ary Slack Span to Barge Mounted e A-Framele¢e jaan,c a|='We.A-Frame withTUa13.8 kV Circuit Breaker : =_r -----,5 Ds ._SF6 CB DS NOM A KWA with B Switch Disconnect q q es 8 a TTT TTT a 6 13.8 kV Risers228a&&sa O88 oS =Bai Se &S3 = 5 BS 3 d Turbine1-Overhead Feeder55ParSlackSpantoBargeMounted:z eee A-Frameg2TeaSec uy |12.47 kV Express Feeder :nan aint Cr a ire i A-Frame withcatoBethe!Uitilties'Existing bs SF6 CB s wnewisay 138 cys on Disconnect Diese!Plant Substation XFMR -40 MVA LEGEND; CB -138 kV Circuit Breaker DS -138 kV Disconnect Switch[7 ' _LA-138 kV Lightning ArresterJ0-Bus Support"« a NX A \ rocco i Iit eo Figure [V-3.4 Nuvista Light &Power Co,SUBSTATION CONCEPTUAL LAYOUT Barge-Mounted Generation Plant Altemative BETTINE,LLC 9/04/03-FJB Incoming138kVTransmissionLineSubstation Fence Line a=E 138kV/12.47kV XFMR t ala Ds _ DS 40 MVAcant7alg°ss =UG _|__|13.8kV Metal Clad;'alz a A i 1 17)SwitchGearandH={5 1 H H LA a Control Building _z a t=[mn =+rx SSS es or ce oa ajE€5 ==od LA Double Girouit i;HE 5 $.UG Feeder 3|_USFecdert |a a =o a eee To i as |@aseSF6CBBSSF6CB3A-Frame with Vertical itt BYPASS 218 1 4138KV/12.47kV XFMRMountDisconnectSwitchSwitch=ul)5 Ds DS |;|UG Feeder 2 _" 40 MVA 4<+-_S oo fee cE |Sprtttttt b- H LH H LA Double Cjrcuit PsUGFeeder9 =rx)os oe ry LA;ss iio i H L H -tJouL- q |i rT |1 x oem - oe LA UG)| SF6 CB |) vv To SVC System Tray 41 1 1 i ',Ai\'' '\/{ ]a J t 20°Double Gate LEGEND: CB -138 kV Circuit Breaker Figure 1V-3.5 DS -138 kV Disconnect Switch Nuvista Light &Power Co. LA-138 kV Lightning Arrester©-Bus Support ToDonlinCreekMinePowerDistibutionCenterSUBSTATION CONCEPTUAL LAYOUT Dontin Creek Mine BETTINE,LLC =:9/04/03-FJB |2saan||5 7 a Motor Operated|é _we os}de Disconnect Switch |2 cC - 8 e ee @7 |fe)66 oo}"ee e ee |ky ;[t .°|_|-|3 r iA Recloser |&see €@e138kVCircuit138kV/12.47 kV Xfmr - !Switcher AK / LA-138 kV Lightning Arrestor f To Village Figure I\V-3.6 Nuvista Light &Power Co. Village Stepdown Substation Conceptual Layout Bettine,LLC 9/043/03-FJB Motor Operated Disconnect Switch ée67¢LA-138 KV Lightning Arrester | | |_ |[_-sé«a@/»we se ee oo a |1 F 7 |oo -_s0=78 ee-ttes "oo ° C is |es:wea -s8 wea ee "ae |10 MVA Reactor 138 kV Circuit 138 kV Circuit 138 kV/12.47 kV Xfmr |Switcher Switcher Aa-¥ | | Recloser To Village Figure {V-3.7 Nuvista Light &Power Co. Aniak Stepdown Substation Conceptual Layout Bettine,LLC 9/043/03-FJB Nuvista Light &Power,Co.Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 SECTION V PRELIMINARY ENVIRONMENTAL PLANNING | SECTION V-1-TRANSMISSION LINE ENVIRONMENTAL PLANNING A.INTRODUCTION Nuvista Light &Power,Co.(Nuvista)is investigating the feasibility of constructing a power plant in Bethel,Alaska and a 138-kV transmission line from Bethel to eight rural communities along the Kuskokwim River and the proposed Donlin Creek gold mine project.Nuvista is a non-profit corporation created to serve as a regional generation and transmission utility for the Calista region.The transmission line would be located along the northern bank of the Kuskokwim River.The power line would serve Bethel, Akiachak,Akiak,Tuluksak,Lower/Upper Kalskag,Aniak,Chuathbaluk Crooked Creek and the proposed Donlin Creek gold mine.The proposed power plant would be located south of the Bethel. Travis/Peterson Environmental,Inc.was retained to conduct a preliminary environmental planning review of the proposed transmission line project,while the firm of Steigers,Inc.was retained to conduct a preliminary environmental planning review of the proposed Bethel power plant alternatives.The reports received from each of these two firms are contained in Appendix F. The purpose of the planning reviews is to identify,at the outset of the project,those issues that could potentially delay or hinder the permitting and construction of the power generation and transmission facilities.The transmission line project is discussed first followed by the power plant project. B.TRANSMISSION LINE ENVIRONMENTAL REQUIREMENTS ASSESSMENT A preliminary review was performed by contacting agencies,stakeholders researching publications and internet web sites,and reviewing comments from agencies and stakeholders.A letter was sent to environmental agencies,the affected communities, landowners,and other interested groups to introduce the proposed transmission line and power plant project and request comments.The following summarizes the environmental issues identified by the environmental agencies and the other interested parties. e The ADF&G publication "State of Alaska Refuges,Critical Habitat Areas,and Sanctuaries”found that there are no State Refuges,Critical Habitat Areas,or Sanctuaries in the project vicinity; TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 e The ADNR Division of Parks and Outdoor Recreation "Individual State Park Units in Alaska”was reviewed and it was found that there are no State Parks in the proposed project vicinity.There are state appropriated lands along the proposed alignment; e The "Coastal Zone Boundaries”atlas found that the proposed project area is within the Coastal Management Area.The project affects two Coastal Zones;the City of Bethel Coastal Management District,and the Cenaliulriit CRSA.A CPQ will need to be filled out and submitted to the OPMP; e NMFS and USF&WS revealed that there are no threatened or endangered species existing in the vicinity of the proposed project area. e The Kuskokwim River is considered EFH.Several creeks and rivers draining into the Kuskokwim River also appear to have EFH.According to the NMFS,and the USF&WS web pages,the following essential fish species may inhabit these streams:. chinook salmon,coho salmon,sockeye salmon,chum salmon,and pink salmon. e A search of the ADF&G "An Atlas to the Catalog of Waters Important to the Spawning,Rearing or Migration of Anadromous Fishes (AWC)”found that the Kuskokwim River is a cataloged anadromous fish stream (335-10-16600).There are other anadromous fish streams in the area but the ADF&G has not catalogued the streams located to the north side of the Kuskokwim River.The Kuskokwim River supports sheefish,whitefish and spawning whitefish,chinook salmon,sockeye salmon,coho salmon,chum salmon,and pink salmon;and e The USF&WS web site indicates that approximately 7 miles of the preliminary power line routing would cross lands,within the Yukon Delta NWR,that have been selected by TKC but have not been conveyed. e Construction of the transmission line may require an EIS that evaluates the proposed transmission line,power plant,Donlin Creek Mine and access road,and the Crooked Creek runway extension project; e The EIS will also require a discussion of alternate routes and associated impacts; e Construction of the proposed power plant may require purchasing or leasing lands owned by the BNC and private individuals; e Construction of the proposed transmission lines will require R.O.W.s across native lands,private lands,state and federal lands;andThetransmissionlinewillrequiremanydifferent permits for its completion. A more thorough discussion of each of the above issues follows in subsequent paragraphs., 1.Land Use Impacts The feasibility study has identified an alternative that is approximately 191 miles in length.Except for a one mile section of the United States Bureau of Land Management (BLM)land and 6.4 miles of State lands,the route traverses private lands that have either been conveyed to the various native corporations or have been selected for conveyance. The design team intentionally routed the transmission line through private lands,to the TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.2 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 maximum extent possible,to avoid crossing Yukon Delta National Wildlife Refuge (NWR)lands,state and other federal lands. The proposed project may affect five groups of land owners.These are regional corporations,village corporations,native allotments,state and federal land owners.The majority of the lands over which the transmission line would be built are owned by private landowners and village corporations.The Kuskokwim Corporation (TKC)owns the majority of the surface estate along the proposed route.For the most part Calista owns the subsurface rights along the future route.The proposed transmission route would also cross native allotments.Two federal agencies administer lands along the proposed route. The BLM manages unappropriated federal lands and the United States Fish and Wildlife Service (USFWS)manages the Yukon Delta NWR.Distribution lines feeding power to the seven villages would cross village corporation lands. No permanent roads would be maintained on the transmission line right-of-way (ROW).The transmission line would require a R.O.W.width of 40 to 50 feet within the Bethel City limits and a 125-foot width for the remainder of the line.Once the transmission line is in operation,the power line would be maintained using a combination of helicopters,boats and tracked vehicles. Landownership consists of surface rights and subsurface rights.This project would affect mainly the surface estate,but some subsurface lands would be affected due to required material sources.The ownership rights within each segment of the affected lands can be found in Section IV,Table IV-1.4. The following are responses from landowners located within the proposed transmission route.The USFWS indicated that any lands in a NWR that have been selected but not conveyed to a native corporation are managed as any other refuge lands under their jurisdiction.The development on those lands will require a R.O.W.permit. The USFWS stated that a review of the alternatives along with their impacts is necessary to assure that the use of the refuge land is compatible with the mandated purposes of the Yukon Delta NWR.Only the alternative that meets the mandated purposes of the NWR system and would not adversely impact the refuge values would be permitted (USFWS,2003a).The State of Alaska Department of Natural Resources (ADNR)Division of Mining,Land and Water (DMLW)indicated that a R.O.W.permit would be required to cross state owned lands and any RS 2477 trails (ADNR DMLW, 2003a).The Bethel Native Corporation (BNC)explains that landownership is complicated around the City of Bethel.There are many private allotments,city-owned lands,and BNC owned land located near Bethel.Table V-1.1 lists the surface and subsurface landownership rights. TRANSMISSION LINE ENVIRONMENTAL PLANNING V-13 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 TABLE V-1.1 LANDOWNERSHIP RIGHTS Owner Surface Rights Subsurface Rights .Explanation Calista Regional Corporation Yes Yes Calista Owns Both Rights Village Corporations Yes No Calista Owns Subsurface City Lands Yes No Calista Owns Subsurface Native Allotments Yes No Subsurface Ownership Varies USFWS Yes Yes USFWS Owns Both Rights State Lands Yes Yes State Owns Both Rights BLM Yes Yes BLM Owns Both Rights Federal Townsites transferred Yes Yes Muni.Governments Own .to Municipal Governments Both Rights Federal Townsites held in trust Yes Yes Federal Government Owns by Federal Government Both Rights 2.Wetlands The proposed transmission line would parallel the north bank of the Kuskokwim River between Bethel and Crooked Creek.There are many small streams entering the Kuskokwim River from the north.There are swamps,bogs,sloughs and other wetlands in the area. ) Wetland mapping has not been completed along the project corridor.Therefore, wetland areas would need to be delineated and mapped.Ali fill material placed on wetlands will require a permit from the United States Army Corps of Engineers (USACE)(USACE,2003).This includes temporary fill for access roads,boat ramps,and temporary bridges.Most of the impacted wetlands should have negligible or minimal impacts to their overall functions because the overhead lines and support structures would require minimal fill.Mitigation and minimization measures need to be discussed in the permit application. 3.Navigable Rivers The Kuskokwim River is considered a navigable river.Two other major navigable rivers,the Gweek and Owhat Rivers,will be crossed by the transmission line.Many other small creeks will be crossed that may be classified as navigable.Section 10 of the Rivers and Harbors Act requires a permit for any structures placed within or work performed below the high water mark of a navigable river (USACE,2003).It is anticipated that all rivers and creeks will be spanned. 4.Floodplain Management The power plant and transmission lines would be located within the Kuskokwim River floodplain.Neither the transmission line nor its support towers would restrict flow. TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 Ice flows are common within the Kuskokwim River floodplain.Support towers vulnerable to ice flows and flood events would be engineered to withstand these events. 5.Threatened and Endangered Species According to the USFWS,there are no threatened or endangered species of plants or animals within the project area.Three different sources were consulted to make the determination.TPECI consulted Mr.Greg Balogh and Mr.Michael Jimmy of the Yukon Delta NWR (USFWS,2003b)and (USFWS,2003c).The USFWS (USFWS,2003d)and National Marine Fisheries Service (NMFS)(NMFS,2003a)internet website was used to confirm that there are no threatened or endangered species within the project area. Jeanne Hanson (NMFS)indicated that NMFS is not aware of any threatened or endangered species under their jurisdiction (NMFS,2003a). 6.Essential Fish Habitat NMFS considers the Kuskokwim River as Essential Fish Habitat (EFH)under the Magnuson-Stevens Act.Many creeks and rivers draining into the Kuskokwim River also appear to have EFH.According to the NMFS web pages,the following essential fish species may inhabit these streams:chinook salmon,coho salmon,sockeye salmon,chum salmon,and pink salmon.Over-water work will be necessary to complete the free-span transmission line.Over-water work does not require a permit from NMFS or the Alaska Department of Fish and Game (ADF&G). An EFH assessment will need to be performed to determine what EFH will be impacted and what minimization and mitigation measures will be performed to offset the impacts.The construction of temporary ramps,river access points,small bridges,and river crossings will require EFH assessments.Once the EFH assessment is complete,the Lead Agency for the NEPA document will send it to NMFS for review.The review process can take up to 60 days to complete.If NMFS agrees with the results and the recommended mitigation,they will concur with the assessment enabling the construction effort to proceed.Mitigation may be necessary (NMFS,2003a). 7.Anadromous Fish Streams A search of the ADF&G "An Atlas to the Catalog of Waters Important to the Spawning,Rearing or Migration of Anadromous Fishes (AWC)”(ADF&G,2003a)found that the Kuskokwim River is a cataloged anadromous fish stream (335-10-16600).The Kuskokwim River supports sheefish,whitefish and spawning whitefish,chinook salmon, sockeye salmon,coho salmon,chum salmon,and pink salmon.There are other anadromous fish streams in the area but the ADF&G has not catalogued the streams located to the north side of the Kuskokwim River.This does not mean that there are no anadromous fish streams to the north.Mr.Wayne Dolezal (ADF &G)informed us that ADF&G is in the process of cataloguing the streams to the north (ADF&G,2002b).The work will not be completed by ADF&G because this responsibility has been taken over TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.5 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 by the ADNR Office of Habitat Management and Permitting (OHMP).There are no set dates for completion of this task. Any anadromous fish streams that may be impacted within the project area will be reported to ADNR OHMP for approval.ADNR OHMP indicated that they need to know the following information for any work conducted below the Ordinary High Water (OHW)mark. If ADNR concurs with the results then the project may proceed (ADNR OHMP, 2003b). 8.State Lands/State Parks The ADNR Division of Parks and Outdoor Recreation website and the ADF&G State of Alaska Refuges,Critical Habitat Areas,and Sanctuaries Database (ADF&G, 2003c)were consulted to determine that there are no state parks,refuges,sanctuaries,or critical habitat areas in the area.Mr.John Zimmerly,Park Ranger,with the Alaska State Parks Service confirmed via phone that there are no Alaska State Parks in the subject area (ADNR,2003d).The response from ADNR DMLW indicated that some of the work will be performed on state lands (ADNR DMLW,2003e). 9.Coastal Zone Management A review of the "Coastal Zone Boundaries”atlas found that the proposed project area is within the Coastal Zone Management Area (ADNR ACMP,2003f).The project affects two Coastal Zone Management Areas;the City of Bethel Coastal Management District,and the Cenaliulriit Coastal Regional Service Area (CRSA). A Coastal Project Questionnaire (CPQ)will need to be completed and sent to the ADNR,Office of Project Management and Permitting (OPMP)for review.The OPMP helps determine the federal permitting requirements for the project.The OPMP willmakethedeterminationthattheprojectdesignisconsistentornotconsistentwiththe Alaska Coastal Zone Management Program (ACMP). 10.Historic,Architectural,Archaeological,and Cultural Resources The State Historic and Preservation Office (SHPO)anticipates there will be many areas of cultural significance.Once the final transmission line route is chosen cultural surveys may be necessary to determine areas of cultural significance (SHPO,2003). 11.Construction Impacts The section of the power line between Bethel and Upper Kalskag traverses marshy lowlands composed of fine grain sands and silts that are dotted with numerous smal]lakes,small streams and sloughs.It is anticipated that this section of the line would TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.6 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study'Public Draft 03/20/04 be built during the winter months when the ground is frozen and there is sufficient snow cover to protect the vegetation.Terrain along the remainder of the proposed route appears suitable for year-round construction. Construction of the transmission line will require temporary access points from the Kuskokwim River.Special use permits (SUPs)and R.O.W.permits will required from land owners to access and perform construction within the transmission line R.O.W. Temporary ramps,roads,supply and housing structures will be needed for staging the construction effort for this project.Temporary fill may be placed in wetlands to build ramps and roads for construction of the transmission lines.The fill will be removed after the construction is complete.No permanent roads will be built to maintain the transmission line.The transmission line would be maintained via off-road vehicles,boats and helicopters. Trees and undergrowth would be removed from access points and during construction of the transmission lines.Temporary impacts to wildlife are expected during the construction phase of the project.Impacts could temporarily affect subsistence hunting at communities where construction occurs.These impacts are not expected to be long term and should dissipate after the construction phase.Some construction could occur during the winter months utilizing frozen ground or ice-roads.Winter construction efforts would have fewer adverse effects on tundra,birds,fish,wetlands,EFH,and erosion. Water quality could temporarily be impacted during the construction phase from erosion and runoff from construction areas.The contractor would minimize these impacts by implementing Best Management Practices (BMPs)for erosion and pollution control in accordance with the Environmental Protection Agency under the National Pollution Discharge Elimination System (NPDES)General Permit program for Alaska.A Storm water Pollution Prevention Plan (SWPPP)and an Erosion Control Plan (ESCP)will be implemented to minimize water quality impacts during the construction phase. Construction will generate some solid waste.The waste would be disposed of in nearby community landfills or removed off-site to Bethel. 12.Cumulative and Secondary Impacts The USACE 'and the USFWS stated that they are very concerned about cumulative and secondary impacts (USACE,2003 &USFWS,2003a).These agencies have suggested that any environmental analysis and permitting may need to consider the transmission line,the power plant,Crooked Creek airport expansion,mine access road, and Donlin Creek gold mine as a single project. The proposed power plant and transmission line would supply the power necessary to operate the Donlin Creek Mine.Donlin Creek Mine would consume over 80 percent of the electrical power transmitted along the new power grid.Donlin Creek Mine TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 would utilize Crooked Creek's airport to supply fuel,cargo,and passengers.The airport will need to be expanded to accommodate large cargo aircraft.A new road would be built to link Donlin Creek Mine with the airport.The close proximity of the mine to the village would generate business within Crooked Creek.Operation of the mine will increase supplies and the number of travelers through Crooked Creek. In the future,the power plant may supply energy for communities away from the primary corridor.It is possible transmission lines may be built to supply communities to the west or north of Bethel to provide a cheaper and cleaner source of power for those communities.The opportunity for cheaper power in some of these other towns could lead to an increase in population in these areas. 13.Federal Process Since it is anticipated that federal money would be used to finance the electrical system,the project must comply with the NEPA.It is anticipated that the proposed power plant and transmission line will be classified as a major federal action that will significantly affect the human environment.7 CFR 1794.25 states in relevant part,"An EIS will normally be required in connection with proposed actions involving the following types of facilities:(1)New electric generating facilities of more than 50 MW (nameplate rating)other than diesel generators or combustion turbines.All new associated facilities and related electric power lines shall be covered in the EIS ...” Therefore,an Environmental Impact Statement (EIS)must be prepared for the transmission line.Agencies responding to the feasibility letter agreed that the proposed project will require an EJS.These agencies also suggested that the Cumulative Impact Section must address the transmission line,power plant,Donlin Creek Mine,the expansion of Crooked Creek Airport,and the construction of the new road between the airport and the mine (USFWS,2003a &USACE,2003).Nuvista,however,disagrees with the position taken by these agencies. A simplified version of the EIS process is as follows: e Determine the lead agency for the transmission line and Bethel power plant project.The RUS would be the lead agency of choice for this project but it has not agreed to serve as the lead agency ; e The lead agency submits a Notice of Intent (NOJ)to the Federal Register; e Complete the Scoping Process (Identify significant issues,translate the issues into the purpose and need for the action,introduce alternatives and non-alternatives, and introduce the impacts); Develop alternatives; Prepare a draft EIS; Notice of Availability 45 day review period; Hold a public hearing; Incorporate comments; TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.8 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 e Finalize EIS and circulate the final document for 30 days;and e Lead agency issues a Record of Decision (ROD). A copy of the USDA,RUS,and NEPA policies and regulations are attached in Appendix F.Assuming there are no significant obstacles encountered during the EIS process,Travis/Peterson estimates the entire environmental process to take approximately 2.5 years to complete. 14.Anticipated Permits It is anticipated that the required environmental studies and location engineering for the 138-kV transmission line would begin during early 2004 and would be completed by the end of 2006.To proceed with construction in a timely manner,it is anticipated that an approved EIS and all required permits would be required on or before the end of 2006. It is anticipated final engineering and construction of the selected power supply alternative and the Bethel to Donlin Creek mine 138-kV transmission line would occur between 2007-2010,with all systems fully operational by late spring 2010. Table V-1.2 summarizes the potential permits required for this project and the regulatory agencies that approve them. TABLE V-1.2 POTENTIAL PERMITS AND APPROVALS Agency Name Type of Reason for Permit/Approval Permit/Approval Federal Agencies : Dept.of Agriculture,RUS |Location Approval.Lead Agency approves the NEPA document. U.S.Army Corps of Section 404 A Section 404 permit is required for authorization of Engineers wetland fills. Section 10 A section 10 Permit is required for any work performed in a navigable river below the OHW mark or for any structures placed within a navigable river U.S.Fish and Wildlife Endangered Species Protection of endangered and threatened species Service Refuge Crossing Permit |Any transmission lines across wildlife refuges require approval. U.S.National Marine and |Essential Fish Habitat |Minimize impacts to fish habitats. Fisheries Service Assessment State Agencies Alaska Department of ADEC Wastewater A general permit is for similar situations with standard Environmental General conditions,such as excavation dewatering,floating Conservation and non-permanent shore-based camps.The permit tells what limits must be met,what measures must be taken,which types of discharges are covered by it Food Service A permit must be obtained for permanent,temporary, limited or mobile food service operations serving 11 TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.9 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION V Public Draft 03/20/04 or more persons per day must.(May apply to construction camp) Certificate of Reasonable Assurance (401 Certificate) ADEC must issue a 401 Certificate to accompany any federal permit issued under the Federal Clean Water Act.For example,a COE Section 404 permit would trigger the need for a state certificate.Title V Air Quality for |ADEC must issue an air quality control permit to power plant construct and operate a power plant. Alaska Department of (Title AS 41.14.870)|A General Waterway/Water body Application must be Natural Resources,"Anadromous Fish submitted if heavy equipment usage or construction OHMP.Passage”activities disturb fish habitat and anadromous fish 'habitats.These permits also stipulate how stream In Cooperation with water withdrawals may be conducted. Or Or Alaska Department of (Title AS 41.14.840)|The above information dealing with only non- Fish &Game "Fish Passage”anadromous fish passage. Alaska Department of Coastal Project A project application that is filled out to help Natural Resources,Questionnaire determine what state and federal permitting is OPMP necessary to proceed with a project located within the Coastal Zone Management Area. Alaska Department of Temporary Water Use |This permit is required if water withdrawals will occur Natural Resources,during construction.The permit lasts for the length of DMLW a temporary project. Materials Sale &Purchase of required materials from state lands. Mining Plan Alaska Department of Land Use A land use permit is required for use of state lands Natural Resources,along the proposed ROW. DMLW ROW A ROW is required for construction of transmission lines or other improvements that cross state lands. Alaska Department of Cultural Resource For any federally permitted,licensed,or funded Natural Resources,SHPO |Concurrence Section project,the SHPO must concur that cultural resources 106 Review would not be adversely impacted,or that proper methods would be used to minimize or mitigate impacts that would take place. Alaska Department of Utility Permit on State |Required before construction on DOT&PF managedTransportationandPublic|ROW state lands or for structures crossing DOT&PF ROWs. Facilities _ City of Bethel Planning Department Building Permission is required to build transmission lines across City land. Calista Corporation Land Department |ROW |Administrative approval for crossing Calista Lands. VillageApprovals Akiachak,Akiak,Tulusak,|ROW and Easements |Village corporations and councils issue permission for Lower/Upper Kalskag,utility crossings of village lands. Aniak,Chuathbaluk,and Crooked Creek Private Individuals ROW and Easements |Permission is required to build transmission lines across private lands unless ROW is secured eminent domain process. TRANSMISSION LINE ENVIRONMENTAL PLANNING V-1.10 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 SECTION V-2 POWER PLANT ENVIRONMENTAL PLANNING A.BETHEL POWER PLANT ENVIRONMENTAL REQUIREMENTS ASSESSMENT As stated previously,Steigers Corporation was retained to conduct a preliminary environmental requirements assessment for the Bethel power plant alternatives.As part of the process,input from interested parties was solicited.To accomplish this,a letter was developed and presented to potentially interested parties,including State of Alaska and federal resource and regulatory agencies,municipalities in the vicinity of the proposed project,potentially affected native communities,and other stakeholders.The initial consultation letter included the project description and solicited input from recipients regarding: e federal,state,or local permits that will or may be required for the construction and operation of any of the three alternatives e general or specific resource issues and concerns that should be addressed in the environmental analysis of any of the three alternatives e existing information that would help in conducting accurate and thorough analysis of the effects of the project e specific resource studies that will or may need to be conducted e existing or reasonably foreseeable projects or activities that should be considered in the assessment of cumulative impacts. The initial consultation letter described why Nuvista is proposing that -development of the Bethel power plant,the Donlin Creek Gold Mine,and the transmission line from Bethel to the mine be evaluated independently and requested cooperation of recipients with this approach. 1.NEPA Compliance Major federal actions require compliance with the National Environmental Policy Act (NEPA).Major federal actions include authorizing development of public lands, federal funding of a project,or issuance of a federal permit that authorizes activities with the potential for environmental effects.As currently envisioned,partial funding of the Bethel power plant Project would be provided through the U.S.Department of Agriculture (USDA),Division of Rural Utilities (RUS).Thus,federal funding would likely be one of the triggers for NEPA compliance.Other federal actions related to the three proposed alternatives for the Bethel power plant that could result in a NEPA compliance requirement are EPA NPDES permitting and Corps Section 404 permitting, primarily due to development of the cooling pond.Federal regulations stipulate that issuance of an NPDES permit to a new source by EPA may be a major federal action and, as such,could be subject to the environmental review provisions of NEPA. POWER PLANT ENVIRONMENTAL PLANNING V-2.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study ,Public Draft 03/20/04 2.Scope of NEPA Compliance Review The development of the Bethel power plant is seen by certain agencies to be closely tied to development of the gold mine in that the mine would constitute the majority consumer of the power produced under the 'current development scenario,and providing the power to the mine is the predominant factor in transmission line routing. Therefore,from a NEPA compliance standpoint,of the foremost issue that must be immediately addressed and resolved is whether development of the power plant and appurtenances and the associated transmission line can be separated from development of the Donlin Creek Gold Mine. In response to the initial consultation letter for the Bethel power plant,the USFWS commented that it believes that the entire scope of the project should be comprehensively evaluated,including direct,indirect,and cumulative project impacts, "as is required under [NEPA]...when project components are so interrelated as to be inseparable"(USFWS 2003).According to the USFWS,this would include the transmission line,power plant and other power generation alternatives,the Donlin Creek mine,the road to the mine,and secondary power distribution to Yukon Delta and Kuskokwim River villages. With regard to the scope of the NEPA assessment,the Corps stated in its response to the initial consultation letter that,when the Corps has jurisdiction over NEPA review, it is precluded from "piecemealing"projects for analysis and permitting."If the power plant and mine are in fact tied together in an economic analysis,we cannot separate the power plant from the mine.The power plant must demonstrate an independent utility to be permitted as a separate action....To consider the Bethel power generation facility a ._Separate project the plant must be an economically viable project independent of the mine."The response concluded that it appears that the Donlin Creek Gold Mine is an integral part of the Bethel power plant Project and that the Corps is not convinced that the power generation facility and the mine are independent projects. Although some parties have suggested that the gold mine and power plant/transmission line projects be evaluated together,there are a number of important reasons for treating them independently. e First,scheduling constraints require that environmental review and permitting of the power plant and transmission line must proceed ahead of those for the mine so that these facilities can be constructed and operational by the time power is needed for mine construction and operation.If not,the mine would need to permit and operate its own power generating source until the Bethel Power plant and transmission lines were completed,which would preclude the need for an alternative power source and would likely preempt development of the Bethel power plant as proposed., POWER PLANT ENVIRONMENTAL PLANNING V-2.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 e«Second,development of the Bethel power plant,as proposed,represents only one of several alternative sources of electrical power for the gold mine;therefore, analysis of the power plant in the context of the environmental assessment for the mine is not likely to be as thorough as would be possible under an independent review. e Third,the entirely different functions of the facilities and the considerable distance between the gold mine,the (majority of the)transmission line,and the proposed power plant location suggest few synergies to be realized from coordinated review of these facilities.Other than regarding socioeconomic considerations,few similar impacts are expected from the three projects,and these could be evaluated under the cumulative impacts assessment for each,as appropriate. e Finally,the power plant could be developed independent of development of the gold mine,and vice versa;e.g.,a power plant could be constructed to serve just the local community and other communities in the region along the transmission line route. A number of reviewers have pointed out that the scope of the NEPA analysis will be delineated by the lead federal agency in charge of the review.However,selection of the lead federal agency will likely be determined by the scope of the NEPA review.The most likely lead agency candidates would be the U.S.Department of the Interior or the Army Corps of Engineers. The issue of how NEPA compliance for the Bethel power plant Project can be structured to both accomplish a valid environmental analysis of the project and preserve the necessary project schedule needs further investigation.It is possible that providing an enhanced treatment of cumulative impacts in the NEPA analysis for the power plant/transmission line,along with tiering of any subsequent NEPA analysis for the gold mine,would be a satisfactory approach.A meeting among the potentially affected parties and agencies to discuss and define the fundamental issue of project scope at this early stage in project planning would be useful in resolving this issue early in the permitting process for the Bethel power plant Project. For the purpose of this review of NEPA compliance requirements for the Bethel power plant Project,we will continue to assume that the scope of the NEPA review will include only the power plant and its appurtenances and the associated transmission line. 3.Agency Comments Written responses were received from 11 entities contacted by means of the initial consultation letter.These responses are summarized below,and copies of the letters are provided in Appendix F. POWER PLANT ENVIRONMENTAL PLANNING V-2.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 a.State of Alaska Three responses to the initial consultation letter were received from the Alaska Department of Natural Resources (ADNR). Ms.Kerry Howard,ADNR Office of Habitat Management and Permitting, referred future consultation on the project to Mr.Robert F.McLean,ADNR Office of Habitat Management and Permitting,Fairbanks Area Office,and to Ms. Sue Magee,ADNR Office of Project Management and Permitting,for coordination of project review for consistency with the Alaska Coastal Management Program (ACMP)(ADNR 2003a).These individuals have been added to the project distribution list. Ms.Sue Magee and Ms.Cynthia Zuelow-Osbome,ADNR Office of Project Management and Permitting,ACMP,each provided a copy of the Coastal Project Questionnaire and Certification (CPQ)form that is used to determine whether the final proposal will require a coordinated review for consistency with state and local standards of the ACMP (ADNR 2003b,ADNR 2003c). Ms.Zuelow-Osborne also referred the project to sources of information on local standards and requirements as Mr.John Malone,City of Bethel Planning Department,and,outside the City of Bethel,Mr.John Oscar,Cenaliulritt Coastal Resource Service Coordinator.These individuals have been added to the project distribution list. One response to the initial consultation letter was received from the Alaska Department of Environmental Conservation (ADEC). Tom Chapple,Director,ADEC Division of Air and Water Quality,indicated that ADEC will require an air quality control construction permit and an air quality control operating permit for the project (ADEC 2003).These may be subject to federal Clean Air Act New Source Performance Standards (NSPS),in which case the project may be required to collect ambient air quality data and meteorological data representative of the airshed in the vicinity of the project and to conduct a case-by-case assessment of control technologies for the project. With regard to water quality permits,ADEC may,depending on the design flow and cooling water discharge conditions,require a state non-domestic wastewater discharge permit or (more likely)an Environmental Protection Agency (EPA) National Pollutant Discharge Elimination System (NPDES)permit;water quality standards for temperature and thermal discharge would apply.If a Clean Water Act Section 404 permit is required by the U.S.Army Corps of Engineers (ACOE), ADEC water quality staff would need to evaluate and certify compliance with state water quality standards under Section 401 of the Clean Water Act. POWER PLANT ENVIRONMENTAL PLANNING V-2.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study . Public Draft 03/20/04 b.Federal Agencies Six responses to the initial consultation letter were received from federal resource and regulatory agencies. e Mr.Bill Allen,State Director,U.S.Department of Agriculture,Rural Development,stated that his office supports the state administration concerning resource development.He had no specific recommendations (USDA 2003). e Mr.William W.Wood,State Biologist,U.S.Department of Agriculture,Natural Resources Conservation Service (NRCS),indicated that the agency has an established field office in the town of Bethel and that a copy of the initial consultation letter would be forwarded to the District Conservationist in charge of that service area (NRCS 2003). NRCS's initial interest in the Bethel power plant Project would focus on: administration and documentation of the public participation process;potential impacts to private property natural resources;potential impacts to wetland,water, plant,soil erosion and sedimentation;and wildlife and fisheries resources. e Ms.Nora J.Braman,Contracting Officer,Acquisition and Real Estate,U.S. Department of Transportation,Federal Aviation Administration (FAA)provided an FAA form that must be completed for coordination and evaluation by the FAA Air Traffic and Frequency Management Divisions and submitted with a topographic map marked with the location of the plant site (FAA 2003). The FAA expressed concerns over the potential for the power plant to generate ice fog that could adversely affect the Bethel airport and the possible adverse affects _ on instrument procedures at the Bethel airport. e Mr.James W.Balsiger,Administrator,Alaska Region,National Marine Fisheries Service (NMFS),identified NMFS's two areas of concern related to the project as the potential impact on Essential Fish Habitat (EFH)for salmon in the Kuskokwim River and all tributaries within the project boundaries and the potential impact on marine mammals. e Mr.Gary Edwards,Acting Regional Director,U.S.Fish and Wildlife Service (USFWS),stated that the USFWS believes that the entire scope of the project should be comprehensively evaluated,including direct,indirect,and cumulative project impacts,"as is required under [NEPA]...when project components are so interrelated as to be inseparable."According to the USFWS,this would include the transmission line,power plant and other power generation alternatives,the Donlin Creek mine,the road to the mine,and secondary power distribution to Yukon Delta and Kuskokwim River.villages.The scope of the NEPA analysis would be determined by the lead federal agency. POWER PLANT ENVIRONMENTAL PLANNING V-2.5 Nuvista Light &Power,Co.Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 Mr.Edwards reiterated comments on the project previously provided by Michael B.Rearden,Yukon Delta National Wildlife Refuge Manager),i.e.,lands within National Wildlife Refuge selected by but not yet conveyed to Alaska Native corporation are managed as any other refuge land and any development on such lands would require a right-of-way (ROW)permit from USFWS;decision on a R.O.W.permit would look at the existence of feasible and prudent alternatives that would not impact refuge values;refuge use must be compatible with the purposes for which the refuge was established and with the mission of the refuge system as a whole.If a R.O.W.permit is required,feasibility study and environmental analysis of the project will need to be prepared for the USFWS permit application. e Mr.Don R.Rice,Lead Project Manager,U.S.Army Corps of Engineers (ACOE, "the Corps"),U.S.Army Engineer District,Alaska,outlined Corps jurisdiction pursuant to Section 10 of the Rivers and Harbors Act of 1899 for permitting certain structures or work in or affecting navigable waters of the U.S.The Kuskokwim River is a navigable waterway as defined by ACOE,Alaska District. Mr.Rice also outlined Corps jurisdiction pursuant to Section 404 of the Clean Water Act for permitting placement or discharge of dredged and/or fill material into waters of the U.S.,including wetlands. A number of criteria that would establish Corps jurisdiction over the federal (NEPA)review of the project were discussed.With regard to the scope of the NEPA assessment,the Corps is precluded from "piecemealing"projects for analysis and permitting."If the power plant and mine are in fact tied together in an economic analysis,we cannot separate the power plant from the mine.The power plant must demonstrate an independent utility to be permitted as a separateaction....To consider the Bethel power generation facility a separate project the plant must be an economically viable project independent of the mine." Mr.Rice concluded that to date it appears that the Donlin Creek Mine is anintegralpartoftheBethelpowerplantProjectandthattheCorpsisnotconvinced that the power generation facility and the mine are independent projects. c.Others A letter was received from Ms.Meera Kohler,President and CEO,Alaska Village Electric Cooperative,Inc.(AVEC)in which she provided suggestions for revising Figure I-1.3 of the project description that was included with the initial consultation letter.Figure I-1.3 is an aerial photograph of Bethel and vicinity showing the proposed Bethel power plant locations. POWER PLANT ENVIRONMENTAL PLANNING V-2.6 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 B.ENVIRONMENTAL ISSUES &MAJOR PERMITTING REQUIREMENTS Because the Bethel power plant is in the initial feasibility design phase and because a number of alternatives are still being considered,final selection,design, location,and operation of project facilities are not known.Consequently,it is not possible to precisely delineate all environmental issues that may arise as a result of the project as it will ultimately be defined.However,it is anticipated the major environmental issues likely to be associated with one or more of the power plant alternatives will include the following: Alaska Coastal Zone Management Air Quality _ Water Quality Wetlands and Navigable Rivers Fish Habitat Floodplain Development Air Traffic NEPA Compliance 1.Alaska Coastal Zone Management The sites proposed for development of the Bethel power plant fall within the State of Alaska's Coastal Zone (ADNR 2003c).The project would likely affect two coastal zone management areas,the City of Bethel Coastal Management District and the Cenaliulriit Coastal Regional Service Area. . 2.Air Quality As a new fossil-fuel-fired source of air pollutant emissions with a heat input rating of more than 250 MMBtv/hr and the potential to emit more than 100 tons per year of nitrogen oxides (NO,),carbon monoxide (CO),sulfur dioxide (SO2),and particulate matter (PMjo),the Bethel power plant will require a Prevention of Significant 'Deterioration (PSD)air quality construction permit. The boilers will be subject to federal NSPS,Subpart Da,which sets the upper limits for the emission rates of NOx,PMio,and SO2.The NSPS limits that apply to the boilers are:, e NO,=0.18 1b/MMBtu ¢PMjo=0.03 Ib/MMBtu (99 percent control efficiency) e SO,=0.60 lb/MMBtu (70 percent control efficiency). PSD review for the Bethel power plant will likely require several types of analyses,including assessment of the Best Available Control Technology (BACT)for POWER PLANT ENVIRONMENTAL PLANNING V-2.7 Nuvista Light &Power,Co.Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 NOx,PMio,SO2,and carbon monoxide (CO).Technologies that may need to be addressed in the BACT analysis include: NO,--selective non-catalytic reduction (SNCR) CO --good combustion control , PMjo --baghouse SO.--limestone injection. The Bethel power plant may also emit sufficient quantities of acid gases (hydrogen chloride,hydrogen fluoride)and heavy metals (e.g.,beryllium)and thus be classified as a major source of hazardous air pollutants (HAPs).Major HAP sources may be subject to Maximum Achievable Control Technology (MACT)requirements.It is expected that the emission controls that would be installed as BACT to control criteria air pollutants would also constitute MACT for acid gases and heavy metals under Section 112(g)of the Clean Air Act. The primary task in the construction permit application process involves dispersion modeling of NOx,CO,PMjo,and SO2 emissions to demonstrate that the proposed Bethel power plant will comply with NAAQS and PSD increments.It is expected that EPA's refined dispersion model for industrial sources,AERMOD,will be adequate to demonstrate compliance.The surrounding terrain is not hilly or mountainous,so use of a complex terrain model should not be required. A PSD construction permit applicant must perform an AQRV (Air Quality Related Values)analysis to ensure that environmental values (i.e.,visibility,flora,fauna, etc.)are not adversely affected by the total pollutant concentration they will experience as a result of emissions from the proposed source,any recently permitted (but not yet operating)sources in the area,and existing sources.The AQRV analysis must include a cumulative air quality analysis in which the proposed source and any recently permitted (but not operating)sources in the area are modeled.This total modeled concentration is then added to measured ambient levels to assess the effect of all anticipated ambient concentrations on AQRVs. No Class I air quality areas (certain specified national parks,wilderness areas, national wildlife areas,or native American lands)exist in close proximity to the proposed locations for the Bethel power plant.Furthermore,no other large sources of pollutants that might potentially contribute to cumulative air quality impacts occur in the area. _Finally,because the project will utilize BACT,impacts to soil and vegetation are not anticipated to be significant.Therefore,it is not likely that an AQRV analysis would result in adverse impacts to AQRVs. 3.Water Quality All three alternatives for the Bethel power plant have proposed to utilize an approximately 79-acre naturally occurring freshwater pond for the recirculation of POWER PLANT ENVIRONMENTAL PLANNING V-2.8 Nuvista Light &Power,Co.Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 condenser cooling water from the steam turbines.Because of the preliminary nature of this evaluation,the facility's wastewater discharge has not yet been thoroughly characterized.Likewise,the biological characteristics of the proposed cooling pond, including fisheries,other aquatic species,and wildlife,are not known,so potential impacts to these systems from wastewater discharge to the pond cannot be predicted at this time.Also,the proposed cooling pond may be hydrologically connected to local groundwater aquifers and the nearby Kuskokwim River,and the potential for impacts to these systems from changes in the cooling pond temperature would need to be investigated. An alternative to use of the proposed cooling pond is the installation of forced-air cooling towers to provide all of the necessary cooling for plant operations.Installation of forced-air cooling towers would eliminate the need for the cooling pond and,likewise, the need for an NPDES permit and Section 401 Certification for cooling water. Elimination of these permitting requirements could significantly reduce the overall permitting effort and its associated cost. If the 79-acre pond for the recirculation of condenser cooling water from the steam turbines is selected as the preferred alternative,the Bethel power plant Project would be required to submit an NPDES permit application to EPA prior to commencement of plant operations.It will be necessary to collect on-site data and conduct thermal modeling,including information on the quantity and quality of raw water to be withdrawn from the cooling pond,as well as the quantity and quality of effluent and other related information,prior to developing the NPDES permit application. Following receipt of the application,EPA will prepare the NPDES Wastewater Discharge Permit.Section 401 Certification will be required.The Section 401 Certification would be completed concurrently with the draft NPDES permit and would identify any potential water quality problems with the proposed discharge. As an industrial facility,the Bethel power plant will need an NPDES Permit for stormwater discharges associated with industrial operational activities.This permit is administered by EPA and would be authorized under a Multi-Sector General Permit that has been issued to the State of Alaska.The major requirement for this permit will be a demonstration that stormwater discharged from the facility and its associated property to waters of the State does not contain pollutants.It is possible to include the analysis and application for the NPDES Stormwater Discharge Permit with that for the NPDES Wastewater Discharge Permit. 4,Wetlands and Navigable Waters The site proposed for construction of the three Bethel power plant alternatives occupies low-lying tundra areas,wetlands,and ponds.The barge-mounted power plant option proposes construction and/or dredging and filling within the floodplain of the Kuskokwim River to accommodate barge-mounted power plant units.These activities POWER PLANT ENVIRONMENTAL PLANNING V-2.9 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V Power Supply Feasibility Study Public Draft 03/20/04 would likely trigger federal permitting under the Clean Water Act and/or the Rivers and Harbors Act. The nature and extent of the wetlands to be developed have a significant influence over the permitting requirements and degree of permitting difficulty.Under many circumstances,temporary disturbance to wetlands resulting from certain construction and development activities can be completed under a Corps Section 404 Nationwide permit (Nationwide permit)to meet federal regulatory requirements.Securing a Nationwide permit generally is a straightforward procedure requiring minimal time,effort,and expense to complete and,as a rule,does not require wetlands mitigation. Significant disturbance to wetlands typically requires a Section 404 Individual permit (Individual permit),and the level of effort necessary to secure an Individual permit can vary greatly but usually requires a fairly significant permitting effort. Assuming that an individual permit is required,it is likely that the Corps would include all wetland-related impacts from project development under the Individual permit in order to evaluate all project-related impacts cumulatively.Approval of an Individual permit from the Corps would also require securing a Section 401 Certification from ADEC as mandated by the Clean Water Act. 'Corps jurisdiction under the Rivers and Harbors Act is limited to "navigable waters"or to waters subject to the ebb and flow of the tide shoreward to the mean high water mark that may be used to transport interstate or foreign commerce.The Kuskokwim River is a navigable waterway as defined by the ACOE,Alaska District. All three alternatives propose the construction of at least dock and barge- unloading facilities adjacent to the Kuskokwim River,and Alternative 2 proposes construction and/or dredging and filling within the river floodplain.Tradeoffs between the Clean Water Act Section 404 and the Rivers and Harbors Act Section 10 permitting requirements for the different alternatives could become a significant factor in the final choice of Bethel power plant alternatives. 5.Fish Habitat All three alternatives for the Bethel power plant involve aquatic habitats and, therefore potentially,fish habitat.The Kuskokwim River,which would host at least dock and barge-unloading facilities under all alternatives and also constructed mooring accommodations for the barge-mounted power plants under Alternative 2,is considered by NMFS to be Essential Fish Habitat (EFH)for five species of salmon under the Magnuson Stevens Fishery Conservation and Management Act.NMFS requires the federal agency authorizing the project to prepare an EFH Assessment for any action that may adversely affect EFH.Once it has reviewed the EFH Assessment,NMFS may offer conservation recommendations to protect EFH to the federal action agency.The Kuskokwim River is also catalogued as an anadromous fish stream by the Alaska Department of Fish and Game (ADF&G)(ADF&G 2003).Because of its classification POWER PLANT ENVIRONMENTAL PLANNING V-2.10 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION V> Power Supply Feasibility Study Public Draft 03/20/04 as an anadromous fish stream,construction activities in the Kuskokwim River under any of the three alternatives would likely require application for a Office of Habitat Management Permitting (OHMP)Fish Habitat Permit.Depending on the fisheries characteristics of the proposed cooling pond,wastewater discharges into the pond might also require this permit.: 6.Floodplain Development All alternatives for the Bethel power plant propose the construction of at least dock and barge-unloading facilities along the Kuskokwim River,and Alternative 2 proposes construction and/or dredging and filling within the Kuskokwim River floodplain to accommodate the barge-mounted power plant.The approximate elevation of the designated mapped floodplain near Bethel is 17 feet mean sea level (HDR 2003),so,at approximately 50 feet mean sea level,most of the construction for Alternative 1 or Alternative 3 would likely be outside the Kuskokwim River floodplain. Prior to issuing any building,grading,or development permits involving activities in a regulatory floodway,the project must provide certification that the proposed development will not impact the pre-project base flood elevations,floodway elevations, or floodway data widths.A "no-rise”assessment would need to be conducted to meet this certification requirement.In addition to the "no rise”certification,an Application for Flood Hazard Permit must be completed and submitted to the local municipality. 7.FAA The FAA letter expressed concern over possible adverse effects on instrument procedures to the Bethel airport and the potential for the power plant to generate ice fog that could adversely affect the airport.Form 7460-1 will be provided to the FAA,along with a topographic map with the plant site identified,for a determination of any aircraft safety considerations associated with constructing the Bethel power plant stack(s).Based on the relatively short stacks envisioned at the facility,it is not at this time anticipated that there will be difficulty in receiving FAA approval.Considering the proximity of the proposed facility to Bethel Airport,it is realistic to assume that the Bethel power plant stacks will require some form of marking to meet FAA approval.The issue of potential ice fog formation from power plant operation would also be investigated as part of the meteorological/air quality analysis in the NEPA assessment. . 8.Permits Table V-2.1 summarizes the potential permits required for power plant and the regulatory agencies that approve them.Many of the permits required for construction of the power plant are also required for the construction of transmission line. POWER PLANT ENVIRONMENTAL PLANNING __.V-2.11 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION V Public Draft 03/20/04 TABLE V-2.1 Potential Permits and Approvals For Bethel Power plant Agency Name Permit/Approval Alaska Department of Natural Resources,Office of Project Management and Permitting Alaska Coastal Management Program (ACMP) Consistency Review Alaska Department of Environmental Conservation,Division of Air and Air Quality Construction Permit,including monitoring programs Water Quality U.S.Environmental Protection National Pollutant Discharge Elimination Agency System (NPDES)Wastewater Discharge Permit Alaska Department of Environmental Conservation,Division of Air and Water Quality Clean Water Act Section 401 Certification(s) Alaska Department of Environmental Conservation,Division of Air and National Pollutant Discharge Elimination System Stormwater Discharge Permit for Water Quality Operations U.S.Department of the Army,Army |Clean Water Act Section 404 Nationwide and/or Corps of Engineers Individual Permits U.S.Department of the Army,Army _|Rivers and Harbors Act Section 10 Permit Corps of Engineers Alaska Department of Natural Resources,Office of Habitat Management and Permitting Fish Habitat Permit U.S.National Oceanic and Atmospheric Administration,National Marine Fisheries Service Essential Fish Habitat Assessment Federal Emergency Management Agency Flood Hazard Permit and "No-Rise" Certification U.S.Department of Transportation, Federal Aviation Administration Notice of Proposed Construction or Alteration U.S Department of Agriculture, Division of Rural Utilities National Environmental Policy Act (NEPA) Compliance,including field data collection U.S.Department of the Interior,U.S. Fish and Wildlife Service Endangered Species Act (ESA)Section 7 Consultation U.S.National Oceanic and Atmospheric Administration,National Marine Fisheries Service Endangered Species Act (ESA)Section 7 Consultation Alaska Department of Natural Resources,State Historic Preservation Officer National Historic Preservation Act (NHPA) Section 107 Consultation POWER PLANT ENVIRONMENTAL PLANNING V-2.12 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 SECTION VI PROJECT COST ESTIMATES 1.INTRODUCTION &BACKGROUND A.INTRODUCTION This section presents the assumptions and summarizes the project cost estimates prepared for this report.Project costs include all costs required to plan,develop,engineer, build,operate and maintain the 138-kV Donlin Creek transmission line and the two primary generation alternatives investigated as part of this report for supplying power to the mine,which are:(1)a coal-fired power plant located at Bethel;and (2)a combined- cycle combustion turbine plant located at Bethel or Crooked Creek. Project cost estimates were also prepared,but with a lesser degree of accuracy,for a combined-cycle combustion turbine power plant at Crooked Creek,a +100-kV DC transmission line from Nenana to the mine site and a 230-kV AC line built from Nenana to the mine site.These three power supply alternatives were investigated as part of the Calista Region Energy Needs Study,dated July 1,2000,and were determined to provide less economical power than a coal-fired plant located at Bethel.However,updated costs for these three alternatives were prepared as part of this study to re-evaluate the economic feasibility of these alternatives. B.COAL-FIRED GENERATION PLANT LOCATED AT BETHEL'© The following cost estimates for the project were based on equipment quotations obtained from major equipment vendors and estimates.The estimates below include all cost components such as:engineering,procurement,installation,allocated foundation and common system cost,construction management and all other related cost items.Cost of equipment and system installation was based primarily upon vendor estimates;some costs were estimated as a percentage of equipment cost,based on average industry data. Start-Up and Commissioning includes labor and consumable costs during the six months start up/run-in period.Cost estimates are provided for both a land-based power plant and a barge-mounted power plant.Land acquisition costs are not included. 'See report prepared by PES in Appendix A. PROJECT COST ESTIMATES Section VI-1.1 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 1.Land -Based Power Plant Fuel Receiving and Storage”$33,267,400 Steam Plant $55,466,300 Generating System $23,509,200 Ash Handling &Disposal System $626,200 Environmental Systems &Controls $4,085,300 Rolling Stock $2,142,500 Plant Utilities &Services $13,590,600 Civil &Structural $5,253,000 LCMF Foundations and Civil Work $39,651,100° Project Services and Facilities $16,793,600 Start-Up and Commissioning $4,876,100 Total Systems Contingency 10% Sub-Total Plant Cost per Kilowatt @ 96.6 MW Gross Output Stand-by Combustion Turbine CTG (GTX100 /LM6000) Total Capital Cost Land-Based Plant $199,261,300 $15,961,000 $215,222,300* $2,227/kW $16,862,000 $232,084,300 Not included in the above is $3,000,000 in Owner costs for Environmental Studies and Permitting. 2.Barge -Mounted Power Plant The following cost schedule is for the Power Barge Option.As above,the cost of the district heating system,stand-by CTG,and Environmental Impact Study are listed separately. Fuel Receiving and Storage Steam Plant Generating System Ash Handling &Disposal System Environmental Systems &Controls Rolling Stock Plant Utilities &Services Civil &Structural Barges (2)including cargo-shipping to Bethel ?Includes cost of dock facilities 3 Includes 10%Contingency"Assumes covered but unlined coal storage. $33,267,400 $47,156,800 $20,896,700 $626,200 $3,003,000 $2,142,500 $9,684,100 $2,123,800 $9,600,000 PROJECT COST ESTIMATES Section VI-1.2 Nuvista Light &Power,Co.-Donlin Creek Mine .SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 LCMF Foundations and Civil Work (coal storage &dock only)$31,355,300° Project Services and Facilities $13,812,700 Start-Up and Commissioning $3,876,100 Total Systems , ;$177,544,600 Contingency 10%14,618,900 Total Plant $192,163,500° Cost per Kilowatt @ 96.6 MW Gross Output $1,989/kW Stand-by Combustion Turbine CTG (GTX100 /LM6000)$16,862,000 Total Capital Barge-Mounted Plant $209,025,500 Not included in the above is $3,000,000 in Owner costs for Environmental Studies and Permitting. The cost difference between the land-based and barge-mounted power plants is $23,058,800.The difference in cost is the result of savings obtained from eliminating high-cost foundations,for the steam and power generating plants,and the increased productivity associated with assembling the power plant at a shipyard rather than in the field. 3.Capital Cost Implications of the Application of Usibelli Coal PES has carefully investigated the potential for using Usibelli coal rather than Fording coal.The heating value of Usibelli coal,as mined,is 7,168 Btu/Ib vs.12,284 Btu/Ib (Calculated DuLong HHV)of Fording coal.In addition we must also take into the account the fact that there is a 5.5%difference in the boiler efficiency,89.1%for Fording coal versus 83.4%for Usibelli coal,due to the higher moisture and oxygen content in the fuel.A power plant operation that required 412,300 tons of Fording coal would require approximately 687,000 tons of Usibelli coal.This fact dictates a much larger (and more costly)coal storage facilities,boilers,ducts,emission control equipment and higher expenses on moving coal,air and combustion gases,which increases capital cost by approximately $35,000,000.If Usibelli coal were dried,to obtain an energy content of 11,100 BTU/Ib,which would approximate the BTU content found in Luscar coal from Canada,capital cost would increase by less than 5 million dollars. The cost of the storage building would be about $25,000,000 higher.The storage building cost increase includes material handling equipment inside the building.Other additionally required capital items would include: 5 See Footnote 3 6 See Footnote 4 PROJECT COST ESTIMATES Section VI-1.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 i.Larger boiler due to larger flows and required larger heat transfer surface (lower quality coal burns at lower temperature with lower heat transfer coefficient);estimated cost increase:$5,800,000 il.Larger flue gas ducts outside boiler,passages and stacks $1,500,000 ill.Higher cost of conveying system $1,000,000 iv.NOx Control System $920,000 V.Coal bunkers with dust control $1,000,000 Total estimated Capital Cost increase,including coal storage cost $35,220,000 4.Possible Savings from Utilization of Healy Clean Coal Power Plant Equipment Only preliminary investigations were carried out;they consisted of contacting the persons responsible for the project on the part of AIDEA (Alaska Industrial Development and Export Authority)and the Federal Department of Energy,as well as reading progress reports of this project.The conclusions/recommendations presented herein are preliminary;an in-depth evaluation of the plant is required. The Healy Clean Coal Power Plant (HCCP)was designed to use 50%Usibelli run-of-the-mine coal and 50%waste coal.The applied technology is TRW's "entrained/ slagging”combustion and B&W's spray drier absorber desulfurization system.The technology was designed for burning high ash and moisture content coal.The B&W spray drier absorption system is not suitable for use in the Bethel project.Before actually inspecting the boiler it is impossible to state its suitability for the Bethel project,however, for the purpose of this study it is assumed the boiler is not suitable. Of the steam plant,some of the boiler ancillary equipment may be utilized: -Combustion air blowers -Feedwater pumps -Boiler controls and instrumentation -Induced draft fan -Filter baghouse -De-aerator -A significant portion of the coal delivery and feeding system -Portions of the ash handling system -depending on the design of the existing one. The turbine generator side of the HCCP can most likely be utilized in its entirety. During the design and procurement of the second steam-generator line,care must be applied to equipment selection so that the Bethel Plant will not need to warehouse double amounts of spare parts. PROJECT COST ESTIMATES Section VI-1.4 Nuvista Light &Power,Co.Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 The equipment would have to be delivered to a Southern Alaska port (Seward) where it would be put on a barge and shipped to a West Coast shipyard (Vancouver,BC, Anacortes,WA,or other)where the boiler and the rest of the equipment would be assembled on the power barge. The savings are estimated as follows: Expenses 1.Acquisition at no cost 2.Disassembly,shipping to Seward ($1,450,000) 3.Preliminary mounting on barge and shipping to West Coast port ($730,000) Other installation and shipping cost items will be the same as for a new plant. Avoided equipment cost,estimate $11,700,000 Estimated savings $9,520,000 Remark:This amount is an estimate of possible savings.It will be confirmed only after a thorough investigation of the Healy Plant. 5.Coal-Fired Plant O&M Estimates,Less Fuel Costs The following estimate was based in part on information obtained from a power plant in Gillette,WY where B&W PC boilers are working,PES'experience with a 100 MW CEB coal-fired plant,and other industry sources.Adjustments were made to labor costs for the plant location.The cost of ash disposal is assumed to be neutral due to proposed ash utilization option. Gross Power Produced:96.6 MW including 5 MW for transmission losses and 8.5 MW parasitic load (for plant internal usage).Net Power Produced for sale:82.8 MW including 70 MW to supply peak demand of Donlin Mine and 12.8 MW for the City of Bethel and the Villages. PROJECT COST ESTIMATES Section VI-1.5 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 Positions No.of Employees Yearly Cost Management Plant Manager ; 1 120,000 Production Manager 1 .72,800 Shift Hourly Personnel Shift Supervisor (4)4 210,413 Auxiliary Operator (4)4 190,861 Fuel Handler (4)4 151,174 Equipment Operator (4)4 148,595 Scheduled OT4 shifts 8.8%use 10%115,672 Hourly personnel Administrative Assistant 1 42,390 Purchasing and Coal &Ash Administration 1 54,080 Fuel Barge Unloaders (6)Part-time 6 85,442 Journeyman Mechanic 1 51,189 Millwright Machinist 1 52,104 Apprentice Mechanic 1 36,150 Garage Mechanic 1 45,531 Journeyman Welder I 47,840 Journeyman Electrician 1 48,776 I&C Technician (2)2 133,120 Total Direct payroll employees and cost 28 1,405,023 Burden Rate %32%449,607 Scheduled OT &Part Time 201,114 Non-Scheduled OT 55,579 Total Personnel Cost 2,111,324 'Other Operating and Yearly Cost Fuel for rolling stock and standby utility boiler 118,000 Technical Services and Outside Support 300,000 Testing,outside Lab Analysis,Inside water Lab and testing supplies 25,000 Travel,Training and Safety $0,000 Contact services-Janitorial 24,000 Consumables office 5,000 Consumables plant.including water treatment chemicals ;200,000 Urea cost 1500 tons per year 150,000 Ash disposal (ash to be made into aggregate,concrete cost)-neutral 0 Replacement tools and equipment 15,000 Phone,mail and express service 12,000 PROJECT COST ESTIMATES ;Section VI-1.6 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 Parts and materiel shipment to port,annual barge and misc.air 350,000 Water -no cost included in maintenance &station power 0 Spare parts &maintenance cost (Eqt 5%,Bldg 1%,El.10%,Rolling Stock 10%)+Reserve of $500,000 Annually -3,200,000 Waste removal &disposal (except ash)15,000 Property lease 0 Insurance fee (Fire,Accident)300,000 Taxes 0 Miscellaneous contingency 5%238,200 Subtotal other operating cost 5,002,200 Total O&M $7,113,524 Power production per year at net 100%sales MWh99%availability 718,075 O&M cost per net MWh $/MWh 9.91 $/kWh 0.0099 Estimated major additional operating cost resulting from the application of Usibelli coal: i.Due to dusting and the tendency to spontaneous heating and auto-ignition,storage of the Usibelli coal would require constant monitoring of hot spots and pile compacting,yearly $250,000 il.Additional maintenance of materials handling equipment and rolling stock,including spare parts, yearly Total additional operating cost $280,000 $530,000 Cc.COMBINED-CYCLE COMBUSTION TURBINE PLANT' 1.Bethel Power Plant The following cost estimates for the project were based on equipment quotations obtained from major equipment vendors and estimates.The estimates below include all cost components as:engineering,procurement,installation,allocated foundation and common system cost,construction management and all other related cost items.Cost of equipment and system installation was based primarily upon vendor estimates;some costs were estimated as a percentage of equipment cost,based on average industry data. The position Start-Up and Commissioning includes labor and consumable cost during the 7 See report prepared by PES in Appendix B. PROJECT COST ESTIMATES Section VI-1.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 six months start up/run-in period.Cost estimates are provided for both a land-based power plant and a barge-mounted power plant. 2.Bethel Land-Based Power Plant Combustion Turbine Equipment $51,300,000 Steam Co-Generating System 18,809,600 Combustion &Steam Turbine Additional Equipment 11,162,800 Civil &Structural,including LCMF scope 44,585,000 Plant Services 3,470,650 Rolling Stock 585,000 Project Services and installations 14,771,113 Start up and commissioning 398,420 Total Plant 145,083,000 -Contingency 10%14,508,000 Grand Total Plant $159,591,000 Cost per Kilowatt @ 150 MW Gross Output $1,064/kW Not included in the above is $3,000,000 in Owner costs for Environmental Studies and Permitting The equipment cost of the diesel-based power plant is in the same order as the cost of the CT-based power plant,however,the installation cost,including bringing in cranes of sufficient lifting capacity,is significantly higher than that for the CT-based plant. 3.Bethel Barge-Mounted Power Plant The following cost schedule is for the cost of a Barge-Mounted Modular Plant. The fuel storage Tank Farm,the 100,000 gallon water tank,as well as the maintenance shop will be located on shore. Combustion Turbine Equipment $49,117,500 Steam Co-Generating System 16,112,000 Combustion &Steam Turbine Additional Equipment 9,208,900 Civil &Structural,including LCMF scope 38,335,000 Plant Services 2,674,825 Rolling Stock 385,000 Project Services and installations 14,771,100 Start up and commissioning 398,425 PROJECT COST ESTIMATES Section VI-1.8 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 Cost of barge 4,500,000 Total Plant 135,502,750 Contingency 10%;13,450,250 Grand Total Plant $148,953,000 Cost per Kilowatt @ 150 MW Gross Output $993/kW The capital cost of the barge mounted power plant is $10,638,000 lower than the cost of land-mounted plant. 4.Crooked Creek Power Plant -Land-Based Option Only ° Combustion Turbine Equipment $34,500,000 Steam Co-Generating System 18,809,600 Combustion &Steam Turbine Additional Equipment 11,162,800 Civil &Structural,including LCMF scope 32,700,000 Plant Services 3,470,650 Rolling Stock 585,000 Project Services and installations 10,800,000 Start up and commissioning 398,420 Total Plant 112,426,470 Contingency 10%11,242,000 Grand Total Plant $123,669,000 Cost per Megawatt @ 110 MW Gross Output $1,124,264 Cost per Kilowatt $1124/kW Not included in the above is $3,000,000 in Owner costs for Environmental Studies and Permitting 5.Combustion Turbine Plant O&M Estimates,Less Fuel Costs Personnel #Employees Cost per Year Management Plant Manager incl.Safety and Environmental 1 120,000 Production Manager 1 72,800 Shift Hourly Personnel . Shift Supervisor 4 210,413 Auxiliary Operator 4 190,862 8 Estimates based on Bethel Land-Based Combined-Cycle Combustion Turbine Power Plant option.Cost estimate prepared by Bettine,LLC PROJECT COST ESTIMATES ;Section VI-1.9 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 Equipment Operator 4 148,595 Hourly personnel Administrative Assistant,Purchasing &Records 1 42,390 Millwright Machinist 1 52,104 Journeyman Welder 1 47,840 Journeyman Electrician 1 48,776 1&C Technician (2)2 133,120 Total Personnel Full Time 22 Total Direct payroll cost 1,066,900 Burden Rate %32%341,408 Scheduled OT &Part Time 90,728 Non-Scheduled OT 100,029 Total Personnel Cost 1,599,065 Equipment O&M Fuel and lube oil for rolling stock and boiler 208,000 Technical Services and Outside Support 300,000 Testing,outside Lab Analysis,Inside water Lab and testing supplies 25,000 Travel,Training and Safety 50,000 Contact services-Janitorial *6,000 Consumables office 4,000 Consumables plant including water treatment chemicals 150,000 Replacement tools and equipment 15,000 Phone,mail and express service 12,000 Parts and Mat'l shipment to port,annual barging and misc.air 150,000 Water-No cost included in Maint.&station power 0 Spare parts &maintenance cost +Reserve of $500,000 Annually 2,650,000 Waste removal &disposal 7,500 Property lease 0 Insurance fee (Fire,Accident)250,000 Total O&M 3,827,500 Taxes (No taxes in Bethel)0 Miscellaneous contingency 5%271,330 Total Annual O&M Cost including labor $5,697,895 O&M cost per kWh generated In Bethel $0.0073 In Crooked Creek -$0.0089 | PROJECT COST ESTIMATES Section VI-1.10 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 D.DISTRICT HEATING SYSTEM The plant will include provisions for supplying thermal energy to a district heating system for the City of Bethel.The system will meet the diverse thermal energy needs of Bethel's residential,institutional,commercial and industrial customers.It will include a heat exchanger for heating water circulating between the plant and the heat receivers in the neighboring communities.The circulating water will be heated with extracted steam in condensing heat exchangers.The district heating system will provide energy for both space heat and hot water consumption.The power plant can supply sufficient heat to the district heating system to displace the equivalent of 4.5 million gallons of fuel oil per year,that would be otherwise be burned to by the residents of Bethel to provide for space heating and hot water consumption. The overall capital equipment cost includes the main trunk lines,the delivery pumps and the primary heat exchangers.It does not include the cost of constructing smaller distribution lines and the costs of connecting the numerous business and household to the system.It is estimated that laying the main trunk line,installing the central exchange station,and insulating pipe joints will take about 40,000 man-hours. Estimated Cost of District Heating System as $11,600,000 described above. E.FOUNDATION AND FUEL STORAGE COSTS' 1.Coal-Fired Plant Budgetary construction cost estimates were prepared by LCMF for the construction of the proposed site development,building foundations,coal storage area,3,000,000 gallon bulk fuel facility,intermediate fuel tanks,water tanks,access roads,pipelines,and coal and fuel barge off-loading dock.These costs have been incorporated into the overall power plant costs listed above.The estimates were developed based on historical pricing for similar work in Bethel with a 6.5%overhead for profit,bonding and insurance.A construction contingency of 15%has been factored into the estimates.A freight rate of $0.20 per pound,Seattle to Bethel,was provided by Bettine,LLC.These estimates do not include costs for the buildings,power generation equipment,conveyors, stacker/reclaimer,or coal barge unloading system;their transportation to Bethel,nor their mobilization to the site and setup.The estimates do not include the costs of land purchase,leases or right-of-ways.The Budget Construction Cost Estimates are summarized below. *See Appendix E for Foundation and Fuel Storage Feasibility Design Reports prepared by LCMF PROJECT COST ESTIMATES Section VI-1.11 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 Power Plant &Buildings,Founded on Permafrost $21,000,000 Barge Mounted Power Plant Option $13,800,000 3,000,000 Gallon Bulk Fuel Facility : .$4,125,000 Lined Coal Storage w/Maintaining Permafrost Integrity $19,200,000 Lined Coal Storage w/Pre-thaw of Permafrost $15,800,000 Unlined Coal Storage w/Allowing Natural Thaw of Permafrost $7,300,000 Cooling Lake Option $5,450,000 Cost estimates have also been prepared for the design,permitting and project management for the proposed power plant facility,coal storage area,bulk fuel facility, intermediate fuel tank,raw water tank,access roads,pipelines,and coal and fuel barge off-loading dock.These estimates do not include costs for the power plant equipment, buildings,conveyor,stacker/reclaimer and barge unloading systems,as well as,land purchase,lease and right-of-way costs.The estimates were developed based on historical pricing for similar work in Bethel.The design,permitting and construction management cost estimates are summarized below.The cost is the same for either the power plant founded on permafrost or barge mounted option. Estimated Design Cost .$900,000 Estimated Permitting Cost $100,000 Estimated Project Management Cost $350,000 The cooling lake option requires additional design,permitting and project management.The following cost estimates were developed for the cooling lake option. Estimated Design Cost $100,000 Estimated Permitting Cost $50,000 Estimated Project Management Cost $100,000 2.Combustion Turbine Plant Budget Construction Cost Estimates were also prepared by LCMF for the construction of the proposed bulk fuel facility,module foundations,intermediate fuel tank,raw water tank,access roads,pipelines and fuel barge off-loading dock.These costs have been incorporated into the overall power plant costs listed above.The estimates were developed based on historical pricing for similar work in Bethel with a 6.5% overhead for profit,bonding and insurance.A construction contingency of 15%has been factored into the estimates.A freight rate of $0.20 per pound,Seattle to Bethel,was provided by Bettine,LLC.These estimates do not include costs for the combustion turbine modules or power generation equipment,their transportation to Bethel,nor their mobilization to the site and setup:The estimates do not include the costs of land purchase,leases or right of ways.The Budget Construction Cost Estimates are summarized below. PROJECT COST ESTIMATES Section VI-1.12 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 Estimated Construction Cost (Power Plant Facility)$8,330,000 Estimated Construction Cost (Bulk Fuel Facility). ; $25,000,000 Estimated Construction Cost (Cooling Lake Option)$3,050,000 Cost estimates have also been prepared for the design,permitting and construction management for the site development,proposed bulk fuel facility,module foundations, intermediate fuel tank,raw water tank,access roads,pipelines and fuel barge offloading dock.These estimates do not include costs for the facility design,combustion turbine modules,power generation equipment,land acquisition or leases.The estimates were developed based on historical pricing for similar work in Bethel.The design,permitting and project management cost estimates are summarized below. Power Plant &Bulk Fuel Facilities Estimated Design Cost $700,000 Estimated Permitting Cost $50,000 Estimated Construction Management Cost $350,000 Cooling Lake Option Estimated Design Cost ;$100,000 Estimated Permitting Cost $25,000 Estimated Project Management Cost $100,000 F.TRANSMISSION LINE COSTS” 1.Construction Costs Transmission line costs for the three Donlin Creek transmission line alternatives investigated are listed in Table VI-1.1.Construction costs cover all the materials,labor and equipment required to build the transmission line facilities.Overhead and profit are included.Engineering,construction management,and owner costs are also included as separate line items.Right-of-way acquisitions costs are not included. 10 Transmission Line Cost Estimates provided by Dryden &LaRue,Inc.See Appendix C for detail cost breakdown. PROJECT COST ESTIMATES Section VI-1.13 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION VI Public Draft 03/20/04 TABLE VI-1.1 BETHEL -DONLIN CREEK 138 KV TRANSMISSION LINE ALTERNATIVES PRE-DESIGN CONSTRUCTION COST ESTIMATE . STEEL H-FRAMES,STEEL H-FRAMES,STEEL X &H-FRAMES, DIRECTED BURIED+All PILE FOUNDATIONS All PILE FOUNDATIONS ITEM PILE FOUNDATIONS Clearing $3,435,000 $3,435,000 $3,435,000 Driven Piles $12,807,798 $31,841,302 $31,447,800 H-Frame Structures $35,129,920 $27,834,850 $15,703,750 [3-Pole Structures $3,748,975 $2,558,950 $2,558,950 X-Frame Structures $0 $0 $13,588,000 Single-Pole Structures $2,830,600 $2,830,600 $2,830,600 Framing $5,860,310 $5,860,310 $5,904,310 OPGW $7,723,060 $7,723,060 $7,723,060 Conductor $25,833,775 $25,833,775 $25,633,775 Anchors $1,328,700 $1,328,700 $1,328,700 Miscellaneous $1,012,940 $1,012,940 $2,779,740 Subtotal $99,711,078 $110,259,487 $113,133,685 Mobilization,staging,work camps,etc.$4,985,554 $5,512,974 $5,656,684 Pianning-level contingency:15%$15,704,495 $17,365,869 $17,818,555 Freight $2,163,800 $2,382,400 $2,254,000 SubTotal $122,564,927 $136,533,671 $138,862,925 Engineering/Design @ 2%$1,994,222 $2,205,190 $2,262,674 Environmental Studies/Permitting $3,000,000 $3,000,000 $3,000,000 Construction Mangement by Owner @2.5%$2,492,777 $2,756,487 $2,828,342 TOTAL $130,051,925 $144,495,347 $146,953,940 Costimile $680,900 $756,520 $769,392 [Average Span Length 950 ft 950 ft 950 ft Transmission line costs for the two,385 mile,Nenana to Donlin Creek transmission line alternatives investigated are listed in Table VI-1.2.Construction costs cover all the materials,labor and equipment required to build the transmission line facilities.Overhead and profit are included.Engineering,construction management,and owner costs are also included as separate line items.Right-of-way acquisitions costs are not included. The reader will observe that a fifteen percent contingency is added to the cost of the Donlin Creek transmission line while a twenty-five percent contingency is used for the two Nenana to Donlin Creek transmission lines.The increased contingency for the Nenana to Donlin Creek lines is justified due to the increased uncertainties associated with construction of these two lines.(See D&L report in Appendix C.)These uncertainties include serious concerns about the logistics of building either of these two lines due to access,weather,environmental constraints,etc.The most likely scenario for building these lines is via ice roads constructed from both Nenana and Donlin Creek over an estimated four winters.Finding adequate water sources along the route for the ice roads could be problematic.Setting up and operating work camps along the route will PROJECT COST ESTIMATES Section VI-1.14 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 create some challenges.(See D&L report in Appendix C.)The logistics of delivering equipment and materials will also prove demanding. TABLE VI-1.2 : . NENANA -DONLIN CREEK TRANSMISSION LINE Alternatives PRE-DESIGN CONSTRUCTION COST ESTIMATE +100 kV DC Line 230 kV AC Line Single Steel Pole W/Direct Steel H-Frames W/Direct ITEM Embedded+Pile Foundations Embedded+Pile Foundations Clearing $7,244,160 $8,753,360 H-Frame Structures Direct Embedded $0 $31,492,638 H-Frame Structures w/piles $0 $79,766,104 Single-Pole Structures Direct Embedded $21,051,710 $0 Single-Pole Structures wipiles $54,919,862 $0 Framing $10,505,410 $14,456,984 OPGW $16,462,278 $16,154,410 Conductor $35,856,118 $48,450,792 Anchors $10,048,598 $12,745,080 Miscellaneous $3,998,992 $3,005,787 Ice Roads $30,464,000 $30,464,000 Subtotal $190,551,128 $245,289,155 Mobilization,staging,work camps,etc.$15,953,812 $18,165,877 Planning-levei contingency:25.00%$53,580,226 $68,216,632 Freight $7,815,965 $9,411,494 SubTotal $267,901,131 $341,083,158 Engineering/Design @ 2%$3,811,023 $4,905,783EnvironmentalStudies/Permitting $6,000,000 $6,000,000 Construction Mangement by Owner @2.5%$4,763,778 $6,132,229 TOTAL :$282,475,932 $358,121,170 Cost/mile $733,704 $930,185 Average Span Length 800 ft 950 ft The above construction costs are representative of transmission lines built with a 50-100 year design life.It is necessary to design and build the transmission line to these standards for three reasons.First,the actual life of the Donlin Creek mine is uncertain.It is anticipated the mine will have a minimum life of 20 years,but the maximum life span of the mine is unknown.It would not be surprising for the mine to remain operational for a period of 30-40 years as additional deposits are discovered in the area.Secondly, additional mining development may occur north of the Donlin Creek.Therefore,it is necessary to build a transmission line that will serve the long-term needs of the area. Lastly,it is necessary to construct a transmission line that is exceptionally reliable to minimize outages and future repair costs.Minimizing future repair cost is an important design consideration as repairing remote transmission lines in Alaska has historically proven to be an extremely expensive proposition. PROJECT COST ESTIMATES Section VI-1.15 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 2.Transmission Line O&M Costs Based on the design parameters used for the Donlin Creek transmission line O&M costs of $500 per mile per year is assumed to be reasonable for the purposes of this study. 3.Transmission Line Costs for Other Alaska Projects Transmission line cost for projects recently completed in central Alaska are listed _in Table VI-1.3 and provide a basis for comparison with the cost estimates provided for the 138-kV Donlin Creek transmission line and the 230-AC and +100-kV DC line described above.The cost listed in Table VI-1.3 are actual construction costs obtained from bid documents.These costs do not include engineering/design,and environmental study/permitting or construction management costs. Although the Northern Intertie was built using steel X-towers,it is considered a representative comparison for the construction costs associated with Donlin Creek transmission line and the two proposed railbelt intertie alternatives.The soil and terrain conditions for the Northern Intertie are similar to those that would be encountered along route of the Bethel-to-Donlin Creek transmission line and the route of a transmission line from Nenana to the mine.The conductor used on the Northern Intertie is 954 ACSR, which is the conductor selected for use on the Donlin Creek mine transmission line and the railbelt intertie alternatives.The average per mile cost for the 89 mile long,230-kV Northern Intertie is $710,000.This cost does not include clearing costs, engineering/design,environmental study/permitting or construction management costs. This compares to $681,000 per mile for the 138-kV Donlin Creek line,which does include all of the above mentioned costs.Considering the remote location of the Donlin Creek transmission line,coupled with the slightly reduced cost associated with steel H- frame construction and lower operating voltage,a total per mile cost of $681,000 is not unreasonable.° Similarly a per mile cost of $734,000 for a two conductor single pole +100-kV DC line and a per mile cost of $930,000 for a 230-KV AC transmission line,built of 'the region,difficult terrain and complete lack of any road or river transportation systems along the majority of the transmission line route. PROJECT COST ESTIMATES Section VI-1.16 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 TABLE VI-1.3 COST COMPARISON OF TRANSMISSION LINES IN CENTRAL ALASKA Project Name}Northern Intertie,Flats_|Northern intertie,Foothilis Jarvis Creek to GMD Pogo Mine Nearest City/Town Fairbanks,Alaska Healy,Alaska Delta,Alaska Delta,Alaska Voltage}230 kV 230 kV 138 kV 138 kV Line Length 64.1 miles 24.9 miles 6.0 miles 47.0 miles Construction Period!Dec,01 -March,03 Aug.02 -Sept,03 May,03 -Sept,03 Jan,04 Oct,04 Design Life 100 years 100 years §0 years 15 years Typical Terrain flat,boggy wetlands rolling hills to mountainous flat to rolling hills rolling hills,some wetlands Typical Soils silts,permafrost dense sands,graveis sands,gravels sands,gravels Typical Access ice roads mostly helicopter off existing roads Spur roads off mine road Typical Foundation driven pipe piles drilled and grouted pipe piles direct embed direct embed Typical Structure tubular steel X-tower tubular steel X-tower wood H-frame wood H-frame Typical Span 970 feet 1060 feet 600 feet 800 feet Conductor}954 kcmil ACSR,Cardinal |954 kcmil ACSR,Cardinal 795 kcmil ACSR,Drake 336 kemil ACSR,Oriole OHSW,fiber optics,|towers designed for double|towers designed for doubie one cable of fiber optic none underbuild,etc]|OPGW,none installed OPGW,none installed underbuild Clearing Cost!$2,000 /acre $1,500 /acre $1,200 /acre Construction Cost $40,000,000 $23,250,000 $1,316,000 $10,000,000 {excludes clearing) Avg.Cost/Mile $624,025 $933,735 $219,333 $212,766 %Foundation Cost 36%41%part of structure cost part of structure cost %Structure Cost 37%36%24%41% %Framing Cost 5%3%31%18% %Wire Cost 17%19%44%40% %Miscellaneous Cost 5%1%1%1% Special Considerations|-_all winter construction very difficult fdn.construction 4 mi.very high wind,5 mi. due to access and terrain winter construction G.SUBSTATION COSTS Construction costs cover all the materials,labor and equipment required to build the substation facilities.Overhead and profit are included.Engineering,construction management,and owner costs are not listed as a separate line item but are included as part of the overall transmission line and power plant costs previously listed. 1.138-kV Bethel to Donlin Creek Mine Transmission Line SubstationCosts! Table VI-1.4 lists the construction costs for the substations and associated 9.5 miles of distribution feeders required to connect the villages to the step-down substations. 'Substation Costs Estimates provided by Dryden &LaRue,Inc.See Appendix C for detail costbreakdown. PROJECT COST ESTIMATES Section VI-1.17 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VI Power Supply Feasibility Study Public Draft 03/20/04 TABLE VI-1.4 Bethel-Donlin Creek Mine Substation Costs DESCRIPTION COST Bethel Power Plant Substation $4,100,000 Bethel Diesel Substation $500,000 7 Village Substations 7@$585,000 =$4,100,000 10 MVA Reactor at Aniak $350,000Substation!” 9.5 miles of Interface Feeders $2,800,000 Donlin Creek Mine Substation To be Provided by PlacerDome $0 2.Nenana to Donlin Creek Mine Transmission Line Substation Costs The cost of the substations associated with these two power line alternatives are listed below in Table VI-1.5. TABLE VI-1.5 Nenana-Donlin Creek Mine Substation Costs Description COST +100-KV AC-DC Conversion Stations $100,000,000° 2 Required -Nenana &Donlin Creek 230 KV Substation at Nenana $4,000,000 Donlin Creek Mine Substation To be Provided by Placer Dome $ '2 Estimate prepared by Bettine,LLC3CostestimateobtainedfromGVEA letter to Placer Dome,Inc. PROJECT COST ESTIMATES _.Section VI-1.18 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VII Power Supply Feasibility Study Public Draft 03/20/04 SECTION VII PROJECT MANAGMENT & SCHEDULING se PROJECT OPTIONS AND ASSUMPTIONS A.INTRODUCTION The following project schedules assume that an EJS must be prepared to comply with the NEPA process.Five project schedule sheets are presented and are attached as Figures VII.1-1 through 5.The abbreviated schedule shows the estimated completion time for each of the three power supply alternatives and 138-kV transmission line, including the time allocated for the completion of the EIS.A separate schedule for the 138-kV transmission line and each of the three power supply alternatives is provided. The abbreviated project schedule shown in Figure VII-1.1 assumes the environmental and permitting work will begin on the transmission line in June 2004 and on the preferred generation alternative on or about October 2004.The schedules,as prepared,assume that it will take thirty months to prepare and obtain approval of an EJS.The remaining four schedules display elapsed time from the start of preliminary engineering. B.PROJECT MANAGEMENT OPTIONS The project can be organized and managed in three basic ways.Nuvista can act as the project manager using in-house and/or contract employees to manage the project. Nuvista could contract with a firm to provide contract-management.It could contract with a firm for a tumkey design/build of the project after it has obtained the required permits.The three alternatives are discussed below.The project schedule is,however, based on Nuvista acting as the project manager. 1.Nuvista Acts as Project Manager Under this option Nuvista would maintain management control of the project. This approach would probably result in the lowest project management related costs. Since Nuvista presently does not have any employees skilled in project management,it would need to hire highly qualified in-house staff and/or contract employees to administer project management responsibilities.As project manager,Nuvista would retain the greatest degree of control over the project.Nuvista would select and contract with various firms to form a project team to perform the required work.To avoid adversarial confrontations,as is often present in the owner/contractor relationship, Nuvista should consider entering into a partnering arrangement with the selected team members. PROJECT MANAGEMENT &SCHEDULING VII-1.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VII Power Supply Feasibility Study Public Draft 03/20/04 2.Nuvista Contracts with Project Management Firm Under this option Nuvista would contract with a single outside project management (PM)firm.The PM firm would be responsible for all aspects of the project to include progress,control,environmental permitting,design,construction and energization of the project.The PM firm would perform some duties and contract out for others.Nuvista would be relieved of the day-to-day management responsibilities associated with the project under this option,but would still retain some input and limited control.The use of a PM firm will,however,add another layer of administration and cost to the project. 3.Nuvista acts as Project Manager +Turnkey (Design/Build) Under this option Nuvista would serve as project manager throughout the permitting and initial design stage of the project and then contract with a single entity for final design,construction and energization of the project.Once a design/build contract is selected Nuvista would have very limited input on decisions.This type of contract is also more difficult and costly to suspend or modify in the event unforeseen circumstances require an alteration to the design or the scope of the project work. C.SCHEDULE ASSUMPTIONS The following assumptions underline the development schedules found in Figures VII-1.1 through 4. 1.Project Financing This Feasibility Study in its final form is assumed to be completed on or about June 1,2004.Assuming feasibility is demonstrated,a plan of finance would need to be prepared.However,before proceeding with the development of a finance plan,Nuvista will need to procure a power purchase agreement with Placer Dome.While several options for financing have been addressed in Section VIII,it is not clear at this stage how or where financing will be obtained or how long that it will take to obtain the financing. 2.Environmental Impact Statement/Permitting Discussions with key environmental agencies and a review of existing regulations indicate an EIS,which incorporates the cumulative impact of both the transmission line and preferred power supply alternative,must be prepared to comply with.the NEPA process.The attached schedule assumes that $1.5 million in funds are presently available to move forward with the environmental permitting of the 138-kV Donlin Creek transmission line.It further assumes that additional funding will become available on or about mid-2004 that will allow Nuvista to continue with permitting the transmission line and to begin the environmental permitting work for the preferred power plant alternative. PROJECT MANAGEMENT &SCHEDULING VII-1.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VII Power Supply Feasibility Study Public Draft 03/20/04 It is estimated that securing the necessary permits and processing of the EIS will require thirty months and be completed by year end 2006. 3.Right-of-way Easement and Power Plant Site Acquisition It is assumed that acquisition of right-of-ways and property for the plant site will be accomplished by a skilled land agent or agents.Once the final route corridor and plant location has been identified,land owner contacts would be made and temporary access agreements obtained.It is assumed that acquisition of property for the plant site and right-of-way could be completed in eighteen months.Because the corridor will cross several native allotments,BIA will be involved. 4.Preliminary Design The preliminary design phase includes aerial surveys,geotechnical investigations, final power plant site selection,final route selection,permitting support,value engineering,identification and selection of major system components,additional system studies,meteorological studies,and plan/profile preparation.Preliminary design is considered an integral part of the EIS process.It is assumed that the necessary Project team members,except for the construction contractor(s),have already been retained,at this stage,under a partnering arrangement,to provide input and supply the essential skills needed to perform preliminary design. 5.Final Design This includes final power plant,transmission line and substation design,drawing, and plant preparation,issuance of procurement contracts.It is assumed that prior to commencing final design,a construction contractor or contractors will be retained as part of the Project team under a partnering arrangement.It is assumed that at least four prime construction contractors will be required to complete the project in a timely manner.It is assumed that at least two prime contractors will be retained to construct the power plant and two contractors will be employed to construct the transmission line.One transmission line contractor will construct the southern portion of the line and the second contractor the northern portion.It is essential that the construction contractors have input at this stage of the project design.Coordinating with the contractors at this stage will typically minimize risks and reduce construction costs. PROJECT MANAGEMENT &SCHEDULING VH-1.3 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION VII Power Supply Feasibility Study Public Draft 03/20/04 6.Major Equipment Lead Times Estimated lead times for major equipment items are as follows.Lead -times include Shop Drawing review. Item Lead Time Weeks Power Plant Related Boilers 52 Steam Turbines 52 Combustion Turbines 36 HRSG 36 Barges 36 Cooling Towers 36 Switchgear 36 Transmission Line Related Power Transformers 48 Switchgear 36 Conductor 24 Steel Structures 24 Pipe Piling 12 Substation Structures 30 Multiple power plant and transmission line contracts are planned,to lower risks of late completion,and because it is unlikely that any local Alaskan contractor alone could support the bonding requirements of the full project.Installing the pipe pile foundations on the section of power line located between Bethel and Upper Kalskag will driving the transmission line schedule. D.PROJECT SCHEDULE SUMMARY This schedule assumes that $1.5 million in funds are presently available to move forward with the environmental permitting work for the 138-kV Donlin Creek transmission line.It further assumes that additional funding will become available on or about mid-2004 that will allow Nuvista to continue with permitting the transmission line and to begin the environmental permitting work for the preferred power plant alternative. The schedule assumes that the EIS process will be completed and required permits issued by year end,2006.As shown on the attached schedules,and specifically on Figure VII-1.1,the transmission line will require approximately three additional years to design and construct following the conclusion of the EIS process.The land-based coal-fire plant alternative will require an additional 3 years and 3 months,the barge-mounted alternative,33 months and modular combustion turbine plant 2 years.Scheduled PROJECT MANAGEMENT &SCHEDULING '-VIT-1.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VII Power Supply Feasibility Study Public Draft 03/20/04 completion date for the land-based coal plant is July 2010,for the barge-mounted coal- plant alternative,January 2010,and for the modular combustion turbine plant April, 2009. The above schedules assume the project does not encounter any unexpected delays or impediments.Few projects of this magnitude are,however,permitted,designed and built without encountering some unexpected delays.Allowing for a six month delay in the project schedule would be prudent. PROJECT MANAGEMENT &SCHEDULING VII-1.5 [||| FIGURE VIF-1.1 ||[| Donlin Creek Power Supply Alternatives[Abbreviated Project Schedule2004);2005]2006 2007!2008 2009 2010} Task 'Duration jQtr4 Qtr 2 Qtr 3 Ob 4 Qtr 4 Qu2 [Qu 3 Qu 4 Qt 4 Qtr 2 Qtr 3 Qu4 Qtr 4 Qtr 2 Qtr 3 Qe 4 Qt 4 Or 2 Qt 3 Qtr 4 Qtr 4 Qt&2 Qu 3 Qtr 4 at 1 Or2EIS/ Line+Subststions [30 mth Power Plant 30 mithPreliminaryDesignissionLine21mth 13 mth 19 mth 12 mth 9 mth 27 mth =Barge Mounted or 27 mth neeCombuatonTurbing22mth: ction/Procurement/TestinLine 39mth ||42 mth 9 mth 39 mith33mth : .;.=24 mth .:-. Bettine,LLC FIGURE VII-1.2 |||| ||l [. Donlin Creek Transmission Line . Project Schedule a Year 1 Year 2 Year 3 :Year 4 Year 5 Year § Task uration [Otr 1 Qtr 2 Otr3 Qtr 4 Qtr 1 Qtr 2 Qr 3 Qtr 4 Qtr 4 Qt 2 Qtr 3 Qtr 4 Qtr 4 Qtr2 Qu 3 Qtr 4 Qtr 1 Qtr2 Qtr 3 Qtr 4 Qtr4 Qtr 2 Preliminary Oesign Stage|Final Route mh a |_T-Line Design 4 mth --'|ig:mth a = _t logical Study 6 mth EEE :Design 12 mth -- Final Design Stage a |Fina!Design Tranmission Line 12 mth 7_Plan&Profile Drawings 9 mth EE ereAerialSurvey&Control Panels 6 mth a |_Final Design Major Substa 8 mth /|Final Design Vilage Substatic 6 mth a ° |_Structure Staking/C.L.Survey 8 mth Tranmi Line Equip Specs.'3 mth : a LF station Equip.Specs 3 mth a __Final System Studies 3.mth ee _Es P _Substation Major Equip.3 mth __Pipe Pile for For ions IS mth a T Line Major Equip.6 mth __-7 3 nMinor Equip!3 mth Line Minor Equip.3 mth eee 1 Sel 3 mth a 3 mth je Pile Delivery 6 mth a _Foun Southem Zone 7 mith "Structure Delivery 3 mth _Structure |4 mth Stringing 6 mth 2 3 mth a3mth -_-|Fou ins Northern Zone 15 mth Structure Delivery 6 mth Eee Structure Ins 6 mth|Conductor Stringing smth .Testing iimth re Contractor Selection -3 mth ane Power Plant,Bethel &Aniak S[Ste Work 6 mth pment E 3.mthTesting{mth - |Vilage §: [Site Work 3 mth = Equipment Erection 3 mth _ Testing Imth _ Bettine,LLC Figure Vil-4.3 Bethel Barge Based Coal Piant (Time For P 9 Not ) Year!JYeer2 Yeas|1 iTekNeme Cu : Gt I @ ]a i Gi a I )i Ot |at Lo @[777 |ProjectGoAnead on = Ligier Bectgs "7 ¥"F-7]Engineeringtorperiting(By others)on||”Process Engineering PFD,P&IO's 7 : LJ "System,Equipment Specifications 7 7]71-Detaled ' an 2 v ' 'C } Co : []:L -_J : -1 :SSS]; -=_]: ;bh } ::J :t :CC . [] :CC J ;[] [; :(|:__Coneiruction Camp &Uttites incl water supply :7 J :ltt Hestng en nn -::a : |"36°Construction&inetatstion ”v :.] ,:|od C4 :[] :,C a ] 'C7]:{J 3 C ][ :¥v ou ProjectDats:Tus Jan 27Constached 29 11 18 Barge Tow Progress eS Bommery py isemitexs §=ESREESERLA 9 Oseaine og Wlesione ¢Project Summary QP Exsemel Micsione @ Pagel Figure Vil -1.4 Bethel Land Based Coal Piant {Time for Permitting Not Included) [Year 1 [Yeer2 ]¥eer 3 'Yea 4 ae a ]ai I a i ay La {a I a I a Hi I ai a3 H Gi rc on Lsor"} eee J ba d b v arr SE 7 J a J C od EE ] cE _} |} {} C i - -J {|p33 Cansiruction Camp &Uilities incl water supply dona tue Mar ¢Sat ui 2 CoEyDietrictHeatingSystem@mone!Wed Jun §”Thw Oct §ret ||re|ane er aa elas ee CE eninernerienn 30 |Construction&instaflation LaFuslHendiing&Storage Equiprent |-=-' 551 asa Pata yor =ES JSES,ve iahieExulpmert Bokers)= y [wos |oe|Co) [ C=ne ed f a . =_-y om Project:Constr sched 20 11 18 land Task Progress EES Summrery Qe extemal Tasks SDMA Testing & Rate:Tue Jon 27 Spm mmreasonenne -MaeBtON ¢Project Surrey QNERERY Exemal Minsione Figure Vil -1.5 Bethel CT Modular Plant S:(Time For Permitting Not I TYeart [Yeer2 J Qi I @ I a3.of [2]H a3 [oF44 Ls on v "”Pracesa Engineering PFO,P&ID's”tae _Equlpment &Le ase ee aa ne Detailed Design Procurement:lacus RFQ's,Select Suppliers 57 mons)”"Yue Feb J fc Sep 2 :L JDieselTankFarm.3mone; TusFeb1 WedMay4 .oe} 'Combusiion Turbines @ mona}”"Tue Feb 4 Bat juan4 5 -a|"”Btoam Turbine GeneratingSystem WHRSG ==A mone Tue Feb 1°Sat an 4 eas| Stand-by Generation&Steam SystemPiantUtitiesandServicesChall&StructuralWork&Equipment ae District Heating System |Construction&InstallationOleselTenkFarm9" Combustion Turbines Steam Turbine Generating System WHRSG 'Stend-ty Generation&Steam System Plort Ulfities and Services * ”Clvl &StructuralWork&Equipment" Rolling Stock "on Gai iidea'ined washer suappby oT" District Heating System Wad Nov ¢Won san 1WedNov{Mon Jan 1 Project Gonstr ached 29 11 19 Moduta|Task oan Teen 27 Solt -o Project Summary NF Extemel Miesione @ Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VIII Power Supply Feasibility Study Public Draft 03/20/04 SECTION VIII | PROJECT FINANCING 1.FINANCING ALTERNATIVES A.INTRODUCTION This section identifies and briefly discusses the most likely financing sources potentially available to fund the design and construction of a power plant at Bethel and the 138-kV Donlin Creek transmission line. B.CONGRESSIONAL APPROPRIATIONS Alaska's Senator Lisa Murkowski has introduced the ''Calista Energy and Economic Revitalization Act''to appropriate $100,000,000 in grants and $50,000,000 for loan guarantees that are to be used for the purpose of constructing power generation and transmission facilities within the Calista region.The bill has been read twice and referred to the Committee on Energy and Natural Resources for further action. C.RURAL UTILITY SERVICE Providing reliable,affordable electricity is essential to the economic well-being and quality of life for all of the nation's rural residents.The electric program of USDA's Rural Utilities Service (RUS)provides leadership and capital to upgrade,expand, maintain,and replace America's vast rural electric infrastructure.Under the authority of the Rural Electrification Act of 1936,RUS makes direct loans and loan guarantees to electric utilities to serve customers in rural areas.The federal government,through RUS, is the majority note holder for nearly 750 electric systems. Since the start of the program,USDA has approved approximately $57 billion in debt financing to support electric infrastructure in rural areas.Of these rural systems, about 96 percent are nonprofit cooperatives,owned and operated by the consumers they serve.The remaining 4 percent include municipal systems,Native American tribal utilities,and other entities.These electric systems provide service to more than 90 percent of the nation's counties identified by the Economic Research Service (ERS)as having persistent poverty,out-migration,and/or other economic hardship. Most RUS-financed systems have a two-tiered organizational structure.Retail consumers are members of the distribution cooperative that provides electricity directly to their homes and businesses.Most distribution cooperatives,in turn,are members of power supply cooperatives,also called "generation and transmission"or "G&T" cooperatives,which generate and/or procure electricity and transmit it to the distribution member systems. PROJECT FINANCING .Section VII-1.1 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VIII Power Supply Feasibility Study Public Draft 03/20/04 The Electric Program makes loans and loan guarantees to finance the construction of electric distribution,transmission and generation facilities,including system improvements and replacement required to furnish and improve electric service in rural areas,and for demand side management,energy conservation programs,and on-grid and off-grid renewable energy systems. RUS makes loans to corporations,states,territories and subdivisions and agencies such as municipalities,people's utility districts,and cooperative,nonprofit,limited- dividend,or mutual associations that provide retail electric service needs to rural areas or supply the power needs of distribution borrowers in rural areas.RUS also provides financial assistance to rural communities with extremely high energy costs to acquire, construct,extend,upgrade,and otherwise improve energy generation,transmission,or distribution facilities.RUS services approximately 686 active electric borrowers in 47 states. 1.Rural Electrification Loans Specific language on loan eligibility and terms can be found in 7 CFR Part 1714. Loan policies and application procedures can be found in 7 CFR Part 1710.Information regarding the various loan programs is summarized below. a.Hardship Loans Hardship loans are used to finance electric distribution and sub-transmission facilities.These direct loans are made to applicants that meet rate disparity thresholds and whose consumers fall below average per capita and household income thresholds.They may also be made if the RUS administrator determines that the borrower has suffered a severe,unavoidable hardship,such as a natural disaster. On November 1,1993,the Rural Electrification Loan Restructuring Act, Pub.L.103-129,107 Stat.1356,(RELRA)amended the Rural Electrification Act of 1936,7 U.S.C.901 et seq.,(RE Act)to establish a new interest rate structure for insured electric loans.Insured electric loans approved on or after this date,are either municipal rate loans or hardship rate loans.Borrowers meeting the criteria set forth in §1714.8 are eligible for 5 percent hardship rate loans. b.Municipal Rate Loans Like hardship loans,municipal rate loans are used to finance electric distribution and sub-transmission facilities.The interest rate is based on interest rates available in the municipal bond market for similar maturities.In most cases borrowers are required to seek supplemental financing for 30 percent of their capital requirements under this program.Borrowers may choose from several maturities that will determine the interest rate,which changes quarterly. PROJECT FINANCING Section VHI-1.2 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VIII Power Supply Feasibility Study Public Draft 03/20/04 For the fourth quarter of calendar year 2003,interest rates for a 20 year loan were 5 percent.Interest rates are established in accordance with 7 CFR 1714.5. c.Treasury Rate Loans Like hardship and municipal rate loans,Treasury rate loans.are used to finance electric distribution and sub-transmission facilities.The standard interest rate on direct Treasury rate loans will be established daily by the United States Treasury.The borrower will select interest rate terms for each advance of funds.The minimum interest rate term shall be one year.Interest rate terms will be limited to terms published by the Treasury (i.e.1,2,3,5,7,10,20,and 30).Interest rate terms to final maturity date,if other than published by Treasury,will be determined by RUS.Interest rates for terms greater than 30 years will be at the 30-year rate.There will be no interest rate cap on Treasury rate loans.Unlike the municipal rate loan program,supplemental financing will not be required in connection with Treasury rate loans. These rates change daily.Treasury semi-annual interest rates for a 20 year loan are presently in the range of 5.3 percent,while FFB quarterly rates,for a 20 year loan,are in the 5.1 percent.The interest rates applied to the loan are the rates in effect at the time the loan funds are advanced. d.Guaranteed Loans RUS will provide guaranteed loans through the Federal Financing Bank (FFB),Rural Utilities Cooperative Finance Corporation (CFC),and the National Bank for Cooperatives (CoBank).Guaranteed loans are generally used to finance generation and transmission facilities.The FFB is an instrument of the Treasury Department,providing funding in the form of loans for various government lending programs,including the RUS guaranteed loan program.FFB loans are guaranteed by RUS and are available to all electric borrowers.The interest rate is the prevailing cost of money to the U.S.Treasury, plus one-eighth of 1 percent.Under this program,the loan comes from the bank and is guaranteed by RUS. These rates change daily.Treasury semi-annual interest rates for a 20 year loan are presently in the range of 5.3 percent,while FFB quarterly rates,for a 20 year loan,are in the 5.1 percent.The interest rates applied to the loan are the rates in effect at the time the loan funds are advanced. 2.Direct Learning and Telemedicine Program To be eligible to receive financing under the DLT Program,the applicant must be organized in one of the following corporate structures: «Be delivering or proposing to deliver distance learning or telemedicine services.In this case by using the fiber-optics contained in the overhead OPGW; PROJECT FINANCING Section VII-1.3 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VIII Power Supply Feasibility Study Public Draft 03/20/04 =Be legally organized as an incorporated organization or partnership;an Indian tribe or tribal organization,as defined in 25 U.S.C.450b (b)and (c);a state or local unit of government,a consortium,as defined in § 1703.102;or other legal entity,including a private corporation organized on a for profit or not-for profit basis;and *Be operating a rural community facility or be delivering distance learning or telemedicine services to entities that operate a rural community facility or to residents of rural areas at rates calculated to ensure that the benefit of the financial assistance is passed through to such entities or to residents of rural areas. =Generally,the maximum amount for a loan that will be considered for funding during FY 2003 is $10,000,000.However,RUS may fund a project greater than $10,000,000 subject to the project's feasibility and the availability of loan funds. «Note:RUS electric or telecommunications borrowers are not eligible for grants. Combination loan-grant financial assistance can be used for the following purposes: 1.Purchasing medical and educational equipment (in addition to telecommunications equipment that directly encodes or decodes data)shown to be necessary to implement the project; 2.Providing links between teachers and students or medical professionals located at the same facility as long as the facility is part of a distance learningandtelemedicinenetwork(formerly,single sites could not be funded in this manner); 3.Providing for site development and alteration of buildings necessary for the project but not reflecting a major portion of the financial assistance; .5.Purchasing of land and/or buildings,or building construction necessary but not reflecting a major portion of the financial assistance (the applicant must demonstrate that the financial assistance for this purpose is not available elsewhere at an economic cost);and, 6.Acquiring telecommunications transmission facilities where such facilities cannot be obtained at a cost that does not impact the economic viability of the project; 7.Fund Operations costs incurred during the first two years of operation of the project provided they are shown to be necessary,financing is not available elsewhere,and such costs do not exceed 20 percent of the loan financial assistance provided.Salaries and administrative expenses are not eligible for funding;and, PROJECT FINANCING Section VIII-1.4 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VIII Power Supply Feasibility Study Public Draft 03/20/04 8.Costs needed to provide distance learning broadcasting to rural areas subject to the requirements in the regulation. The interest rate for the loan (portion)is based on the cost of money to the United States Treasury at the time of draw down of funds.The maximum amortization period for the loan (portion)is up to 10 years or the economic life of the facilities being financed, whichever is less. D.AIDEA The Loan Participation Program provides long-term financing to Alaska businesses for new or existing projects,or for the refinancing of existing loans.The Loan Participation Program has been highly successful since its inception in the early 1980's. This program has helped diversify the Alaskan economy by providing financing for a large variety of commercial facilities ranging from office buildings,warehouses and retail establishments to hotels,fishing vessels and manufacturing facilities.AIDEA is not a direct lender,but through the Loan Participation Program,AIDEA purchases a portion of a loan that is sponsored and originated by an eligible financial institution.In most cases the interest rate on the AIDEA portion of the loan is slightly lower than the rate on the bank's portion.The term of the AIDEA portion of the loan can also exceed the term of the bank portion.This can result in lower scheduled payments for the borrower. AIDEA provides fully amortizing,long term financing,up to 25 years for real property,based on a maximum loan-to-value of 75%.) e AIDEA offers either a fixed or variable interest rate. e The term of the AIDEA portion of the loan can exceed the bank's portion,thereby lowering the scheduled payments. e AIDEA provides a secondary long-term market for eligible financial institutions. e The originating financial institution retains a portion of the loan and also services the entire loan (i.e.,payments are made to the bank,not to AIDEA). e The project must be in Alaska.i e Loan amounts in excess of $10,000,000 must be approved the Legislature. As of 10/03 the interest rate for a fixed rate loan is approximately 7.3 percent for a 20 year loan and for a variable rate interest rate it is less than four percent. Projects which are eligible under the Internal Revenue Code of 1986 can qualify'for tax-exempt financing under AIDEA's Conduit Revenue Bond Program.To qualify for this program an organization must have first obtained a determination by the IRS that it qualifies as a 501(c)(3)tax exempt organization.Under this program,AIDEA acts only as a conduit for the issuance of either taxable or tax-exempt bonds.Neither the assets nor credit of AIDEA is at risk in this program;the creditworthiness of the project and credit enhancements offered by the applicant are essential to the underwriting and placement of bonds. PROJECT FINANCING ;Section VIII-1.5 Nuvista Light &Power,Co.--Donlin Creek Mine SECTION VII Power Supply Feasibility Study Public Draft 03/20/04 e A business enterprise may request the adoption of an eligibility resolution for tax- exempt financing by submitting a preliminary application and nonrefundable $500 application fee to AIDEA on a form provided by AIDEA.If the board of directors adopts an eligibility resolution for a project,an applicant then submits an application for financing for the project.A preliminary application is also required for the issuance of taxable bonds,however,the board of directors do not need to adopt an eligibility resolution.In addition to third-party costs,the applicant will pay a financing fee to AIDEA. The interest rate on tax-exempt debt is typically about 2 percent below the cost of conventional taxable financing. E.ALASKA RAILROAD BONDS The railroad has special authority to provide tax-exempt economic development financing,granted by Congress in 1983 when the railroad was transferred from federal to state ownership.Congress took away most powers for states and municipalities to issue tax-exempt industrial development bonds in the 1986 tax reform act,but the special provision for the Alaska Railroad was one of three exceptions allowed in 1986.Congress included the provision in enabling legislation that transferred the federally-owned railroad to state ownership in 1983.The authority was reaffirmed by Congress in 1986 as one of three exceptions to the elimination of most tax-exempt economic development financing in the Tax Reform Act of 1986. The state-owned railroad has the unique ability to do this kind of financing without limit as to amount or geographic scope.The railroad would issue "conduit"bonds to provide the financing,meaning that the credit of neither the railroad nor the state would be at risk.Similar conduit tax-exempt financing has been done for years in Alaska for various private projects that qualify under the Internal Revenue Service code. Similar procedures have been used by the state in issuing tax-exempt bonds to assist mining development and airport-related projects.The state has also carried out tax- exempt financing to build road and port infrastructure to support mine development,and docks and harbors. The interest rate on tax-exempt debt is typically about 2 percent below the cost of conventional taxable financing. F.STATE OF ALASKA GENERAL OBLIGATION BONDS General obligation bonds create a state debt for capital improvements.The State of Alaska sold $461,935,000 of general obligation bonds in 2003.The bonds were authorized by voters in the general election to pay for a wide range of new schools, building upgrades,highway projects,port and harbor improvements and other transportation projects.This was Alaska's first GO bond sale in 20 years.The interest rate for Series A bonds was 4.069%. PROJECT FINANCING Section VII-1.6 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION VIII Power Supply Feasibility Study Public Draft 03/20/04 G.LEGISLATIVE APPROPRIATIONS The state legislature could directly appropriate funds to construct the proposed power generation and transmission facilities.The legislature has,over the past two decades,appropriated millions of dollars,in the form of grants and low interest loans,to various utilities throughout the State of Alaska to construct generation and transmission facilities. H.PCE FUNDING The State of Alaska spends approximately $4.3 million per year in the Calista region to finance the Power Cost Equalization Program.Bethel and the seven villages that would be served directly from the Donlin Creek transmission line account for approximately $1.2 million of this total.The project goal is to sell power to the Donlin Creek mine,Bethel and the seven villages at eight cents per kWh or less.At that power cost PCE payments for Bethel and the seven villages,if not totally eliminated,should decrease drastically.As more power lines are built out to connect additional villages to the power grid,PCE payments to the region would continue to decline.However,to achieve a delivered power cost of seven cents per kWh the project will need substantial grant funding.The legislature should consider advancing a portion of projected future PCE payments as a grant,to aid in constructing the power project.) PROJECT FINANCING ) Section VII-1.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 SECTION IX ECONOMIC ANALYSIS OF POWER SUPPLY ALTERNATIVES 1.ECONOMIC ANALYSIS A.OVERVIEW The primary purpose of this section of the report is to examine the economicfeasibilityofconstructingeitheracoal-fired or a combined-cycle combustion turbine plant at Bethel along with a 138-kV transmission line from Bethel to the Donlin Creek mine.In order to evaluate the economic benefits of the Bethel coal-fired plant or combustion turbine plant,additional alternatives that supply an equivalent amount of power to the Calista region are included.In addition,the Crooked Creek generation alternative that provides power only to the Donlin Creek mine is evaluated.This section of the report summarizes the economic analysis of the various power supply alternatives. B.POWER REQUIREMENTS OF DONLIN MINE,BETHEL &8 VILLAGES Many assumptions have been used in preparing the economic analysis.Chief among these are the projected power requirements of the Donlin Creek mine.At this stage of development,the peak and average mine demand is not known with any degree of certainty.Information obtained from Placer Dome suggests an average mine demand in the range of 60 megawatts.Because the average mine demand can greatly influence the results of the economic analysis,the study will evaluate the financial impact of a 50 MW average mine demand and a 70 MW average mine demand. The proposed Bethel power plant and Donlin Creek transmission line will serve Bethel,Akiachak,Akiak,Tuluksak,Lower/Upper Kalskag,Aniak,Chuathbaluk, Crooked Creek and the proposed Donlin Creek gold mine project.The projected kWh and kW requirements for these 9 communities are listed in the following two tables,[X-1.1 &2.These projections were obtained from a previous study.' 'See Calista Regional Energy Needs Study,Part J and II,July 2002. ECONOMIC ANALYSIS OF POWER IX-1.1 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 TABLE IX-1.1 Projected kWh Requirements KWH REQUIREMENTS Year 2010 2020 2030 2040 Akiachak 1,432,766 1,861,297 2,160,111 2,506,897 Akiak 1,217,687 1,593,862 1,849,742 2,146,701 Aniak 3,363,400 4,112,668 4,772,919 5,539,168 Chuathbaluk -260,202 311,869 361,937 420,043 Crooked Creek 1,839,600 2,409,000 3,416,400 3,416,400 Tuluksak 685,005 1,031,768 1,197,409 1,389,642 Lower/Upper Kalskag 1,496,763 1,949,325 2,262,272 2,625,459 Total 10,295,423 13,269,790 16,020,790 18,044,309 Bethel 54,546,206 70,664,781 82,009,364 95,175,214 TOTAL 64,841,628 83,934,571 98,030,154 113,219,524 TABLE IX-1.2 Projected KW Demand KW DEMAND Year 2010 2020 2030 '2040 Akiachak 327 425 448 477 Akiak 278 364 384 408 Aniak 768 939 991 1,054 Chuathbaluk 60 71 75 80 Crooked Creek 350 500 .650 650 Tuluksak 156 236 249 :264 Lower/Upper Kalskag 342 445 470 500 Total 2,281 2,980 3,266 3,433 Bethel 9,580 12,410 14,403 16,715 TOTAL 11,861 15,390 17,669 20,148 C.PRINCIPAL ASSUMPTIONS Principal assumptions used in the economic analysis of the power supply alternatives are summarized below. 1.General Assumptions e The expected year of commercial operation for the Donlin Creek mine is 2010. ECON OMIC ANALYSIS OF POWER IX-1.2 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 The study period begins in 2010 and ends in 2060,a fifty year period,which covers the expected useful life of the transmission and generation facilities presented in this study. The Donlin Creek mine is assumed to have a minimum commercial life of 20 years. A zero percent per year real escalation rate is assumed,therefore all costs are stated in unescalated 2003 dollars. A zero percent per year discount rate is assumed. Capital costs are amortized over a 20 year period. Regional energy and demand requirements are held constant following decommissioning of the Donlin Creek mine,assumed to occur at the end of 2030, except where noted otherwise. Plant Efficiency/Heat Rate Coal Plant Fording Coal -31%/11,000 Btu/k Wh Luscar Coal -31%/11,000 Btw/kWh Usibelli Coal -28%/12,140 Btu/kWh 25%/13,645 Btu/kWh-All coals following shutdown of Donlin Creek mine Combustion Turbine Plant Combined-Cycle Bethel Plant -55%/6,200 Btu/kWh Crooked Creek Plant -48%/7,100 Btu/kWh Simple-Cycle -35%/9,750 Btu/kWh Fuel Btu Content Coal Btw/Ib (Calculated Dulong HHV) Fording Coal -12,264 Btu/lb Luscar Coal -10,843 Btu/Ib Usibelli Coal as mined -7,128 Btu/Ib #2 Fuel Oil -130,000 Btu/gallon ECONOMIC ANALYSIS OF POWER IX-1.3 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IX Power Supply Feasibility Study . Public Draft 03/20/04 Propane -85,000 Btu/gallon e Following decommissioning of the Donlin Creek mine,appropriate adjustments to reflect increases in fuel costs,decreases in O&M costs and generation efficiencies are made in the analysis. 2.Capital Costs a.Coal-Fired Plant 97 MW Land-Based Coal-Fired Plant with 46 MW Standby CombustionTurbine (143 MW total) 97 MW Coal-Fired Plant Fording Coal -$211.1 million or $2,175/kW _Luscar Coal -$215.8 million or $2,225/kW Usibelli Coal -Not Considered 46 MW Standby Turbine -$17 million or $370/kW 97 MW Barge-Mounted Coal-Fired Plant with 46 MW Standby CombustionTurbine (143 MW total) 97 MW Coal-Fired Plant Fording Coal -$188.1 million or $1,940/kW Luscar Coal -$193.0 million or $1,990/kW Usibelli Coal -$223.1 million or $2,300/kW 46 MW Standby Turbine -$17 million or $370/kW 80 MW Barge-Mounted Coal-Fired Plant with 25 MW Standby CombustionTurbine (105 MW total) 80 MW Coal-Fired Plant Fording Coal -$175.1 million or $2,190/kW Luscar Coal -$179.2 million or $2,240/kW Usibelli Coal -Not Considered 25 MW Standby Turbine -$9.9 million or $395/kW 10 MW Bethel Utilities diesel plant -$2.5 million ECONOMIC ANALYSIS OF POWER IX-1.4 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 b.Combined-Cycle Combustion Turbine Plant at Bethel 150 MW Land-Based Combined-Cycle Turbine Plant $134 million or $890/KW ,. 150 MW Barge-Mounted Combined-Cycle Turbine Plant $123 million or $820/KW 2°Combined-Cycle Combustion Turbine Plant at Crooked Creek 110 MW Land-Based Combined Cycle Turbine Plant $98.7 million or $900/KW [ov.Coal Lightering Equipment 3 Barges and 1 Tug @ $11.6 million e.Transmission Lines 138-kV Donlin Creek transmission line @ $680,900/mile 230-kV Nenana to Donlin Creek Transmission line @ $930,185/mile +100-kV,DC,Nenana to Donlin Creek transmission line @ $733,700/mile f.Substations Power Plant Substation @ $4.1 million Bethel Utilities Diesel Plant modifications @ $0.5 million Aniak Substation @ $0.93 million 6 Village Substations @ $0.585 million each 9.5 miles 12.47 kV interface feeders @ $2.8 million Donlin Mine SVC and substation to be constructed by Placer Dome 230 kV,AC,Substation at Nenana $4 million AC-DC Conversion Equipment @ $100 million g.District Heating System Bethel @ $11.6 million h.Fuel Oil or Propane Storage 25 million gallon fuel oil tank farm @ $25 million or $1.00 per gallon 3 million gallon fuel oil tank farm @ $4.1 million or $1.37 per gallon 37 million gallon propane tank farm @ $27.8 million or $0.75 per gallon Coal storage included in item l.a. 3.Annual O&M Costs a.Fuel Costs . #2 Fuel Oil delivered to Bethel @ $1.04 per gallon #2 Fuel Oil delivered to Crooked Creek @ $1.25 per gallon ECONOMIC ANALYSIS OF POWER -IX-1.5 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 Propane delivered to Bethel @ $0.65 per gallon Coal price per U.S.ton delivered to Security Cove or Goodnews Bay i.Fording Coal -$55.00 ii.Luscar Coal -$43.25 iii.Usibelli Coal -§28.70 Coal prices increased $15 per ton following shutdown of Donlin Creek mine o.Purchased Power Costs at Nenana Substation 4.5 cents per kWh $11.25 per KW monthly demand cost c.Coal Plant Personnel Cost @ $2.1 million Equipment/Supply Costs @ 5 million using Fording Coal Additional Cost for using Usibelli coal @ $500,000 Additional Cost for using Luscar coal @ $200,000 d.Nuvista Barging Option O&M i.Fording Coal -$1,567,000 ii.Luscar Coal -$1,770,000 iii.Usibelli Coal -$2,695,000 e.Combined-Cycle Combustion Turbine Plant Personnel Cost @ $1.6 million Equipment/Supply Costs @ $4.1 million f.Nuvista AdministrativeCost @ $400,000 g.Transmission Line and Substations @ $500 per transmission line mile h.EIS and Permitting Costs Donlin Creek Transmission Line @ $3 million Bethel or Crooked Creek Power Plant @ $3 million Nenana to Donlin Mine Transmission Line @ $6 million D.COMPARISON OF ECONOMIC RESULTS Detailed spreadsheets containing the results of the economic analysis can be found in Appendix G.The following discussion,tables and graphs summarize the results of the analysis., ECONOMIC ANALYSIS OF POWER IX-1.6 SUPPLY ALTERNATIVES SECTION IX Public Draft 03/20/04 Nuvista Light &Power,Co.--Donlin Creek Mine Power Supply Feasibility Study 1.Capital Costs Eight different generation alternatives were investigated as part of this study. These eight alternatives,along with their respective capital costs,are listed in Table IX- 1.3.Alternatives 1,2 &3 investigate various scenarios for a coal-plant located at Bethel, while,alternatives 4 &5 investigate two combined-cycle combustion turbine alternatives located at Bethel.These alternatives include the cost of constructing a 138-kV transmission line between Bethel and the Donlin Creek mine and associated substations. Alternative 6 examines a combined-cycle combustion turbine plant at Crooked Creek. The last two alternatives,7 &8,examine importing power from the rail belt.These two alternatives include the cost of constructing a 138-kV transmission line between Donlin Creek mine and Bethel.Except for Alternative 6,all alternatives are evaluated using the premise that each alternative must supply power to the Donlin Creek mine,Bethel and the eight villages located between Bethel and the mine site.Alternative 6 supplies power only to Crooked Creek and the mine. Table IX-1.3 Capital Costs _Does Not Include Interest During Construction 97 MW Coal Piant 97 MW Coal Plant 80 MW Coal Plant 150 MW CT Plant +46 MW CT +46 MW CT +25 MW CT Bethel Bethel-Land Based Bethel-Barge Mounted Bethel-Barge Mounted Land-Based Alt.4 Alt.2 Alt.3 Alt.4 $392,282,800 $369,487,800 $351,237,800 $307,077,800 150 CT Plant 110 MW CT Plant 230 kV,AC +100 kV,DC Bethel Crooked Ck T-Line T-Line Barge Mounted Land-Based from Nenana from Nenana Alt.5 Alt.6 Alt.7 Alt.8 $296,577,800 $140,632,600 $494,648,260 $521,946,800 Table IX-1.3 reveals that importing power from the rail-belt using either a 230- kV,AC transmission line or a +100-kV,DC transmission line are the two most capital intensive alternatives proposed,while constructing a power plant at Crooked Creek to serve only the mine load is the least capital intensive alternative. 2.Coal Supply Sensitivity Analysis Coals from three different mines were examined and compared to determine the sensitivity of power costs to coal costs and Btu content.The three coals examined are from the Fording,Luscar and Usibelli mines.The cost per U.S.ton,delivered to Security Cove or Goodnews Bay and the calculated Dulong HHV in Btu per pound for these three coals are as listed below.Table [X-1.4 summarizes the results of this comparison. Fording Coal -$55.00/ton -12,264 Btu/lb Luscar Coal -$43.25 -10,843 Btu/Ib Usibelli Coal -$28.70 -7,128 Btu/Ib ECONOMIC ANALYSIS OF POWER SUPPLY ALTERNATIVES IX-1.7 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 TABLE IX-1.4 60 MW Average Mine Demand Power Costs $/kWh-Selected Coals 97 MW Barge-Mounted Coal Plant Fording@ $55.00/ton _Luscar@ $43.25/ton _Usibelli @ $28.70/ton5%$0.103 $0.102 $0.111 $100 M Grants,Bal.5%$0.090 $0.088 $0.097 $150 M Grants,Bal.5%$0.083 $0.081 $0.090 $200 M Grants,Bal.5%$0.076 $0.074 $0.083 $250 M Grants,Bal.5%$0.069 $0.067 $0.076 Coal Cost per U.S.ton delivered to Security Cove or Goodnews Bay A review of Table [X-1.4 reveals that Usibelli coal,although the lowest cost per ton,produces the highest power costs averaging nine-tenths of a cent greater than Luscar coal.Fording and Luscar coals produce essentially the same power costs,with Luscar coal producing power at approximately two-tenths of a cent below the cost of power produced by Fording coal.Because Fording and Luscar coal produce essentially the same power costs,Fording coal will remain the baseline coal and is utilized in the calculations to generate the subsequent tables. 3.Wholesale Power Costs Table IX-1.5 summarizes and allows for a ready comparison of the wholesale power cost,expressed in dollars per kilowatt hour,for the various alternatives,based on an average mine demand of 60 megawatts.Wholesale power costs are derived by adding one-half cent to power production costs.Power costs for five different finance options are included.The table only contains the power cost for the Bethel barge-mounted power | | plant alternatives.The Bethel land-based power plant alternatives are not included as they are more expensive to construct and would,therefore,obviously produce more expensive power than their barge-mounted counterparts. A review of Table IX-1.5 discloses that the Bethel coal-fired plant alternatives produce the lowest cost power for all financing options,while importing power from the rail-belt results in the highest cost power.Alternatives 7 and 8 assume firm power can be purchased at the Nenana substation for 4.5 cents per kWh and $11.25 kW demand - charge.Alternative 7A assumes non-firm power can be purchased at the Nenana substation for 4.5 cents per kWh but there is no demand charge.Even when purchasing non-firm power (Alternative 7A)the cost of power imported from the rail-belt is 2 cents per kWh more expensive than power produced by the Bethel coal plant alternative,for all financing options. Power costs associated with two different coal plant sizes are listed in Alternatives 2 and 3.Alternative 2 represents power cost for a plant with a total installed capacity of 143 MW,while Alternative 3 is for a plant with an installed capacity of 105 ECONOMIC ANALYSIS OF POWER IX-1.8 SUPPLY ALTERNATIVES SECTION Ix Public Draft 03/20/04 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study MW.The power cost for these two alternatives are identical for all practical purposes, varying by by no more than three-tenths of a cent.Reducing the installed generation capacity of the coal plant by 39 MW or 27%has only a minor impact on the cost of power.Since the power costs associated with Alt.2 and 3 are essentially equal,Alt.3 will no longer be included in the discussion as a separate alternative.The final installed capacity of the coal-plant will be determined after Placer Dome more accurately ascertains the peak and average mine demand.It is,however,expected to fall between the upper and lower limits established by Alt.2 and Alt.3. Alternative 5 and SA examine the cost of power associated with a combined-cycle combustion turbine plant.The two alternatives differ only in that Alternative 5 examines power cost associated with using #2 fuel oil,while SA scrutinizes the cost of power connected with using propane fuel.An examination of the power costs associated with these two alternatives discloses propane produces power at two-tenths of one cent lower than fuel oil. Table IX-1.5 60 MW Average Mine Demand Wholesale Power Costs Years 1-20 97 MW Coal Plant 80 MW Coal Plant 150 MW CT Plant 150 MW CT Plant +46 MW CT +25 MW CT Bethel -#2 Fuel oll Bethel -Propane Bethel-Barge Mounted Bethel-Barge Mounted Barge Mounted Barge Mounted Financing Option Alt.2 Alt.3 Alt.5 Alt.5A 5%$0.103 $0.101 $0.113 $0.111 $100 M Grants,Bal.5%$0.090 $0.087 $0.099 $0.097 $150 M Grants,Bal.5%$0.083 $0.080 0.092 $0.090 $200 M Grants,Bal.5%|$0.076 $0.073 '0.085 $0.083 $250 M Grants,Bal.5%$0.069 $0.066 '$0.078 $0.076 110 MW CT Plant 230 kV,AC 230 kV,AC +100 kV,DC Crooked Ck T-Line T-Line T-Line Land-Based w/Demand Charge wio Demand Charge wiDemand Charge Financing Option Ait.6 Ait.7 Alt.7A Alt.8 5%$0.112 $0.136 $0.123 $0.128 $100 M Grants,Bal.5%|$0.096 $0.122 $0.109 $0.114 $150 M Grants,Bal.5%$0.090 $0.116 $0.102 $0.107 $200 M Grants,Bal.5%}$0.090 $0.109 $0.095 $0.100 $250 M Grants,Bal.5%|$0.090 $0.102 $0,088 $0.093 Finally,Alternative 6 lists the cost of power associated with constructing and operating a combined-cycle power plant at Cooked Creek to supply the Donlin Creek mine.Power costs for this alternative are effectively equal to the cost of power from Alternative 5A.Power costs for the Cooked Creek plant remain constant for the final three financing options.This is because the capital cost of the Crooked Creek plant is less than $150 million dollars. Figure IX-1.1 graphically displays power cost,in dollars per kWh,associated with four selected alternatives for the five financing options.This graph clearly illustrates that the coal-plant alternative provides the lowest cost power,at any financing option,and ECONOMIC ANALYSIS OF POWER SUPPLY ALTERNATIVES IX-1.9 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 importing power from the rail-belt via a transmission line produces the highest cost power. Figure IX-1.1 Power Cost Comparison-Years 1-20 60 MW Average Mine Load 20 Year Mine Life $ikwHee © $0.920 4 ns Bae i BegFeces$0.000 +iid ee m dig . $100 M Grants,Bal.5%$150 M Grants,Bal.5%$200 M Grarts,Bal.5%$2! |m97 MW Coal Plart(ALT.2)$0.090 $0.083 $0.076 $0.069 |m 150 MW CT Phare (AR.5A)$0.097 $0.090 $0.083 $0.076 js 110 Crooked Ck Plant (Alt.6)$0.096 $0.090 $0.090 $0.090 [230 KV,AC Tine (Alt 7A)$0.109 $0.102 $0.095 $0.088 4.20-Year Accumulated Donlin Creek Mine Power Costs Tables [X-1.6 lists the accumulated mine power costs for the various generation alternatives and financing options for 60 MW average mine load and a 20 year mine life. The magnitude of 20 years of accumulated power cost is truly astonishing.The accumulated costs range between a maximum of $1,520 million ($1.52 billion)dollars forAlt.8 to a low of $735 million for Alt.2.Assuming $150 million in grant funds”can be obtained to finance construction of Alternative 2,a coal-plant at Bethel +the 138-kV transmission line,the projected 20 year accumulated mine power cost would be approximately $885.6 million dollars,for an average cost of $44.2 million dollars per year. ?The $150 million grant fund option was selected as it produces power cost for Alt.2 in the price range that may be economically acceptable to Placer Dome. ECONOMIC ANALYSIS OF POWER IX-1.10 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION IX Public Draft 03/20/04 Table IX-1.6 60 MW Average Mine Demand 20 Year Mine Life Donlin Ck Mine Accumulated Power Costs Years 1-20 97 MW Coal Plant 150 MW CT Plant 150 MW CT Plant 110 MW CT Plant +46 MW CT Bethel -#2 Fuel oil Bethel -Propane Crooked Ck Barge Mounted Barge Mounted Barge Mounted Land-Based Financing Option Alt.2 Alt.5 Alt.5A Alt.6 5%)$1,110,512,156 $1,204,682,971 $1,183,673,214 $1,180,224,519 $100 M Grants,Bal.5%$960,508,237 $1,054,679,052 $1,033,669,295 - $150 M Grants,Bal.5%!$885,506,278 $979,677,093 $958,667 ,336 - $200 M Grants,Bal.5%$810,504,319 $904,675,133 $883,665,377 - $250 M Grants,Bal.5%|$735,502,359 $829,673,174 $808,663,417 - 230 kV,AC 230 kV,AC +100 kV,DC T-Line T-Line T-Line wiDemand Charge wio Demand Charge wi/Demand Charge Ait.7 Alt.7A Alt.8 5%1,458,404,593 $1,314,192,234 $1,518,302,581 $100 M Grants,Bal.5%1,308,400,674 51,164,188,315 b 1 368,298,662 $150 M Grants,Bal.5%$1,089,186,356 $200 M Grants,Bal.5%1,158,396,756 61,014,184,396 51,218,294,743 $250 M Grants,Bal.5%! 4 3 $1,233,398,715 [ [51,083,394,796 $939,182,437 4 E $1,293,296,702 g 4 51,143,292,784 Table IX-1.7 illustrates the saving associated with Alternative 2,the 97 MW barge-mounted coal-fired generation alternative,as compared to other generation alternatives,for the same twenty year period.When compared to the Crooked Creek alternative (Alt.6),the coal plant (Alt.2)is estimated to save $294.7 million dollars in - power costs,or Table IX-1.7 60 MW Average Mine Demand 20 Year Mine Life -$150 Million in Grants Saving Associated with 97 MW Coal-Fired Generation vs.Other Alternatives . 97 MW Coal Plant 150 MW CT Plant 150 MW CT Plant 110 MW CT Plant +46 MWCT Bethel -#2 Fuel oil Bethel -Propane Crooked Ck Barge Mounted Barge Mounted Barge Mounted Land-Based Alt.2 Alt.5 Alt.5A Alt.6 (1)Total Saving $0 $94,170,815 $73,161,058 $294,718,241 Average Annual Savings $0 $4,708,541 $3,658,053 $14,735,912 230 kV,AC 230 kV,AC +100 kV,DC T-Line T-Line T-Line wiDemand Charge wio Demand Charge w/Demand Charge Alt.7 Alt.7A Alt.8 Total Saving $347 892,437 $203,680,078 $407 ,790,424 Average Annual Savings $17,394,622 $10,184,004 $20,389,521 (1)Savings calculated using accumulated power cost for 5%Financing Option for Crooked Creek alternative, as it is presumed only minimal grant funding will be available for this alternative $14.7 million dollars a year.Compared to the Alt.SA,the next lowest cost alternative, Alt.2 is estimated to save $94.2 million dollars in power costs,or $4.7 million dollars a ECONOMIC ANALYSIS OF POWER SUPPLY ALTERNATIVES IX-1.11 Nuvista Light &Power,Co.-Donlin Creek Mine SECTION Ix Power Supply Feasibility Study Public Draft 03/20/04 year.Comparing Alt.2 to the 230 kV transmission line non-firm power option,(Alt. 7A),the estimated savings are $203 million,or $10.2 million per year. The costs shown in Table [X-1.7 were calculated using a 60 MW average mine demand,20-year mine life and $150 million in grant fund financing,except for Alternative 6.The Crooked Creek column assumes this alternative must be entirely funded with 5%interest loans.It is assumed that since a power plant at Crooked Creek would essentially only serve the mine load,little if any grant funding would be available for the Crooked Creek plant alternative.Savings for other finance options can be calculated using the data in Table IX-1.6. 5.50-Year Accumulated Regional Power Costs The useful life of the transmission and generation facilities presented and discussed in this study is projected to be 50 years.Therefore,it is necessary to investigate the regional power costs associated with the proposed alternatives for the entire 50 year . period.Figure [X-1.2 illustrates the power costs for selected alternatives for a 50 year period,beginning in 2010. Figure [X-1.2 50 Year Regional Power Costs 60 MW Average Mine Demand $150 Million Grant Funding,Bal .@ 5%Uniess Noted Otherwise . $0.120 $0.100)}-gp ==ae o +o o5iaxA'the 4 raM080m=r r) $0.040 $0.020 $0.000 :-r .:.: 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 Year . -O-CP(Alt.2)-20 Yr Mine Life -B-CP{Ait.2)-50 Yr Mine Life sa CP{Alt.2)-50Yr Mine Life,30 MW in 2031 - #i- - -CT(Alt.5A)-20 Yr Mine Life -M-230kKV Tline(Alt.7A)-20 Yr Mine Life The graph demonstrates that wholesale power costs remain relatively constant over the first twenty years for all alternatives.This corresponds to the estimated life of the mine.After 20 years,when capital costs are fully amortized,there is a step change in power cost.The graph shows a change in the cost of power occurring gradually between 2030 and 2035,while it actuality this step change would occur in 2031,as soon as the capital costs are fully paid.However,the graphics software cannot easily show this step ECONOMIC ANALYSIS OF POWER IX-1.12 SUPPLY ALTERNATIVES SECTION IX Public Draft 03/20/04 Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study change.Wholesale power costs after 2030 are calculated by adjusting fuel cost, operational and maintenance costs as appropriate,to reflect cost changes in these items associated with reduced generation requirements. The following can be determined from reviewing Figure :IX-1.2.When the Donlin Creek mine ceases operations at the end 20 years,in the year 2030,the wholesale power cost for the coal-plant alternative (Alt.2)and the combined-cycle alternative (Alt. 3)will increase to 10.5 cents and 13.7 cents per kWh,respectively.The power cost for the 230-kV transmission line alternative (Alt.7A)will decrease to 5.5 cents per kWh, assuming no demand charge.These costs assume that no other loads but Bethel and the eight villages are served by the power system after 2030. If the mine life extends for 50 years,power cost for Alt.2 would decrease to 5.7 cents per kWh.The graph also establishes that if the mine remains operational after 2030, but at a reduced demand of 30 MW,,or if a new load or loads equal to 30 MW can be served,wholesale power costs will decrease to approximately 6.6 cents per kWh.This is not an unlikely scenario as it is most probable that additional villages in the region will be connected to the power system prior to 2030 and that additional gold deposits located in the Calista region will be developed and mined once low cost power is available. Table IX-1.8 lists the 50 year accumulated regional power costs for several power supply alternatives.The highest accumulated power cost are associated with importing power into the region via a transmission line from Nenana,and the lowest costs with in- region power supply alternatives.No costs are listed in the Crooked Creek Plant column as it is assumed this alternative would only serve the mine load and would be decommissioned at the end of 20 years. Table IX-1.8 60 MW Average Mine Demand 20 Year Mine Life Accumulated Regional Power Costs Years 1-50 97 MW Coal Plant 150 MW CT Plant 750 MW CT Plant 110 MW CT Plant +46 MW CT Bethel -#2 Fuel oil Bethel -Propane Crooked Ck Barge Mounted Barge Mounted Barge Mounted Land-Based Financing Option Alt.2 Alt.5 Alt.5A Alt.6 5%$1,841,649,438 $2,069,255,493 $2,046,424,559 $100 M Grants,Bal.5%$1,631 ,012,647 1,858,618,701 $1,835,787 ,767 - $150 M Grants,Bal.5%$1,525,694,251 1,753,300,306 $1,730,469,372 - $200 M Grants,Bal.5%$1,420,375,855 1,647,981,910 $1,625,150,976 - $250 M Grants,Bal.5%!$1,315,057,460 $1,542,663,514 $1,519,832,580 - 230 kV,AC 230 kV,AC +100 kV,DC T-Line T-Line T-Line wi/Demand Charge wio Demand Charge w/Demand Charge Ait.7 Alt.7A Alt.8 5%$2,278,457,538 $2,023,306,691 $2,194,060,761 $100 M Grants,Bal.5%$2,067,820,747 $1,812,669,900 $1,983,423,969 $150 M Grants,Bal.5%$1,962,502,351 $1,707,351,504 $1,878,105,574 $200 M Grants,Bal.5%$1,857,183,955 $1,602,033,109 $1,772,787,178 $250 M Grants,Bal.5%$1,751,865,560 $1,496,714,713 $1,667,468,782 ECONOMIC ANALYSIS OF POWER IX-1.13 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.-Donlin Creek Mine Power Supply Feasibility Study SECTION IX Public Draft 03/20/04 Table IX-1.9 illustrates the saving associated with Alternative 2,the 97 MW barge-mounted coal-fired generation alternative,as compared to other generation alternatives,for the fifty year period.Implementation of Alt.2 results in the lowest 50- year accumulated power costs,saving the region over $181 million when compared to the next lowest cost alternative,which is Alt.7A.Although Alt.7A-provides lower cost power to the region following closure of the mine (See Figure IX-1.2)it cannot be economically implemented because power costs,for this alternative during the initial 20- year period,are significantly in excess of those provided by Alt.2. Table IX-1.9 60 MW Average Mine Demand 20 Year Mine Life -$150 Million in Grants 50 Year Regional Saving Associated with 97 MW Coal-Fired Generation vs.Other Alternatives 97 MW Coai Piant 150 MW CT Plant 150 MW CT Plant 110 MW CT Plant +46 MW CT Bethel -#2 Fuel oil Bethel -Propane Crooked Ck Barge Mounted Barge Mounted Barge Mounted Land-Based Ait.2 Alt.5 Alt.5A Ait.6 Total Saving $0 $227,606,055 $204,775,121 - Average Annual Savings $0 $4,552,121 $4,095,502 - 230 kV,AC 230 kV,AC +100 kV,DC T-Line T-Line T-Line w/Demand Charge wio Demand Charge wiDemand Charge Ait.7 Alt.7A Alt.8 Total Saving $436,808,100 $181,657,253 $352,411,323 Average Annual Savings:$8,736,162 $3,633,145 $7,048,226 6.Fuel Price Sensitivity Analysis The sensitivity of wholesale power cost to fuel cost is examined in Table IX-1.10.The table lists wholesale power costs for both the "base”fuel price used in this study and for base price plus 25 percent,for the five financing options.An examination of the data reveals that the percentage increase in wholesale power costs for combined-cycle combustion turbine plant is approximately 1.75 times that of a coal plant.This is because fuel cost represents a greater portion of the wholesale power cost for a turbine plant than it does for a coal-plant.This relationship is illustrated in Figure IX-1.3,which breaks Table EX-1.10 60 MW Average Mine Demand 20 Year Mine Life Fuel Cost Sensitivity Analysis -25%Fuel Price Increase Coal Plant (Alt.2}CT Plant (Alt.5A) 25%Price Increase %increase 25%Price Increase;%Increase Financing Alternatives}$55.00/ton $68.75iton Wholesale Power}$0.65/gal $0.82/gal]Wholesale Power 5%50.103 50.111 78%$0.11 30.124 1.7% $100 M_Grants,Bal.5%]50.090 50.097,7.8%0.097 50.110 3.4% $150 M Grants,Bal.5%]50.08:$0.090 8.4%0,090 50.104 5.8% $200 M Grants,Bal.5%50.07 0.083 9.2%0.083 0.097 16.9% -$250 M Grants,Bal.5%50.06:0.076 10.1%0.076 0.090 18.4% SUPPLY ALTERNATIVES Nuvista Light &Power,Co.--Donlin Creek Mine :SECTION Ix Power Supply Feasibility Study Public Draft 03/20/04 down the percentage of wholesale power cost allocated to capital cost,O&M (Fuel included)and profit. Figure IX-1.3 Power Cost Breakdown $150 Millon Grants,Balance at 5%-Financing Option 100% 90% 60% 7% e8 om = 50%4 3 40% *30% 20% 10%i %fled ie Coat Plant (Alt.2) (wm Pron $0.05 [woam $0047 |W Capital Cost $0.030 7.Mine Demand Sensitivity Analysis To determine the effects of variations in mine demand,wholesale power costs for Alt.2 were examined using average mine demands of 50 MW and 70 MW for three financing options..The results of this analysis are summarized in Table IX-1.11.On average wholesale power costs will increase 1.2 cents per kWh if mine demand drops to 50 MW and cost will decrease by seven-tenths of a cent per kWh if mine demand increases to 70 MW.Other alternatives would experience similar variations is power costs. Table IX-1.11 Mine Demand Sensitivity Mine Demand Wholesale Power Cost 50 MW 60 MW 70 MW 5%;$.119 $0.103 $0.093 $150 Grants,Bal.5%$0.095 $0.083 $0.075 $250 Grants,Bal.5%$0.079 $0.069 $0.063 8.Coal-fired Plant Generation Efficiency A.coal-fired plant generation efficiency of 31%has been used to calculate power costs for the various coal-fired power plant alternatives investigated in this study.This nominal efficiency was calculated by PES for a coal plant that uses common off-the-shelf equipment.However,it is possible,through careful engineering and selection of ECONOMIC ANALYSIS OF POWER IX-1.15 SUPPLY ALTERNATIVES Nuvista Light &Power,Co.-Donlin Creek Mine SECTION IX Power Supply Feasibility Study Public Draft 03/20/04 equipment,to increase generation efficiency to near 40%.However,higher efficiency plants are more costly to construct and are more sophisticated to operate.Table [X-1.12 shows the relationship between power cost and generation efficiency.Increasing plant efficiency to thirty-five percent will reduce wholesale power cost by approximately $0.004 per kWh.While this may not seem like a substantial reduction,it will reduce power cost to the mine by $2.4 million dollars annually or by $48 million dollars over the 20 year life of the mine. Table [X-1.12 Generation Efficiency Wholesale Power Cost 31%35%40% 5%$.103 $0.10 $0.097 $150 Grants,Bal.5%$0.083 $0.079 $0.076 $250 Grants,Bal.5%|$0.069 $0.065 $0.062 9.Waste Heat Recovery The effects of waste heat sales on wholesale power costs were also examined.The analysis indicated that for every one million dollars of waste heat sales,power cost were lowered by one-tenth of a cent. E.CONCLUSION The power supply alternative that produces the lowest wholesale cost power cost is coal-fired generation at Bethel plus construction of a 191 mile,138-kV transmission line between Bethel and the Donlin Creek mine. The power cost estimates were developed using constant dollars.The cost of power includes permitting,engineering and design,construction,operation & maintenance,fuel,annual debt service,interest during construction,and applicable purchased power costs.This power supply alternative would provide power to the Donlin Creek mine,Bethel and 8 villages located between Bethel and the mine. Importing power from the rail-belt via a transmission line built between Nenana and Crooked Creek results in the highest wholesale power cost. A combined-cycle combustion turbine plant,whether constructed at Crooked Creek or Bethel,provides power at essentially the same cost. ECONOMIC ANALYSIS OF POWER IX-1.16 SUPPLY ALTERNATIVES AAC AAMT AC ACMP ACOE ACSR ADEC ADF&G ADNR AGL Al,02 AIDEA ASME AVEC AWC BACT BLM BMP BNC BTU CCR CEA CFC CFR co CPQ CRSA CT CTG CVEA dB(A) DC DCS DF2 DH DMLW DWT EA/EIS EFH EMF EPA ERS Glossary GLOSSARY Alaska Administrative Code Average Annual Minimum Temperature Alternating Current : Alaska Coastal Zone Management Program U.S.Army Corp of Engineers Aluminum Conductor Steel Reinforced Alaska Department of Environmental Conservation Alaska Department of Fish and Game Alaska Department of Natural Resources Above Ground Level Alumina . Alaska Industrial Development and Export Authority American Standard Mechanical Engineers Alaska Village Electric Cooperative An Atlas to the Catalog of Waters Important to the Spawning,Rearing orMigrationofAnadromousFishes Best Available Control Technology Bureau of Land Management Best Management Practices Bethel Native Corporation British Thermal Unit Central Control Room Chugach Electric Association Cooperative Finance Corporatoin Code of Federal Regulations Carbon Monoxide Coastal Project Questionnaire Cenaliulriit Coastal Regional Service Area Combustion Turbine Combustion Turbine Generators Copper Valley Electric Association Decible Direct Current Distributed Control System Diesel Fuel District Heating Division of Mining,Land and Water Dead Weight Tons Environmental Assessment/Environmental Impact Statement Essential Fish Habitat Electromagnetic Field Environmental Protection Agency Economic Research Service Page 1 Erosion Control Plan Federal Aviation Administration Federal Financing Bank Gallons Per Minute Grams/Tonne Hazardous Air Pollutants Hydro Carbons Healy Clean Coal Power Plant Horse Power Heat Recovery Steam Generator Kilovolt Kilovolt per meter Loss of Load Expectation Liquid Propane Maximum Achievable Control Technology Matanuska Electric Association Milligauss Modular Power Plant Mean Sea Level Municipal Solid Waste Mega Watt Mega Watt Hours Metric Ton National Electrical Standards Code National Energy Technology Laboratory National Marie Fisheries Service Nitrogen Oxide Notice of Intent National Pollution Discharge Elimination System Natural Resources Conservation Service New Source Performance Standards National Wildlife Refuge Ordinary High Water. Office of Habitat Management and Permitting Optical Ground Wire Selection Office of Project Management and Permitting Pulverized Coal Power Cost Equalization Precision Energy Services Pressurized Fluidized Bed Combustor Particulate Matter Parts Per Million Prevention of Significant Deterioration Microtesla Rural Electrification Loan Restructuring Act Right of Way Page 2 RPM RUS ROD SCR SHPO SNCR SiO, SOQ, STG ST SUP SVC SWPPP SWGR TKC UHC USACE USDA USFWS Voc uT Glossary Revolutions Per Minute Division of Rural Utilities Record of Decision Selective Catalytic Reduction The State Historic and Preservation Office Selective Non-Catalytic Reduction Silica Sulfer Dioxide Steam Turbine Generator Short Ton Special Use Permits Static Var Compensation Storm Water Pollution Prevention Plan Single Wire Ground Return Kuskokwim Corporation Unburned Hydro Carbons U.S.Army Corp of Engineers U.S.Department of Agriculture,Rural Development U.S.Fish and Wildlife Service Volatile Organic Compounds microtesla Page 3 Donlin Creek Mine Power Supply Feasibility Study Nuvista Light &Power,Co. 301 Calista Ct. Anchorage,AK 99518-2038 Volume 2 Appendix A Public Draft March 20,2004 Bettine,LLC 1120 E.Huffman Rd.Pmb 343 Anchorage,AK 99501 907-336-2335 TABLE OF CONTENTS VOLUME I SECTIONI -EXECUTIVE SUMMARY SECTION II -INTRODUCTION -SECTION II -POWER SUPPLY ALTERNATIVES SECTION IV -138-kV TRANSMISSION LINE &SUBSTATIONS SECTION V -PRELIMINARY ENVIRONMENTAL PLANNING SECTION VI-PROJECT COST ESTIMATES , SECTION VII-PROJECT MANAGMENT &SCHEDULING SECTION VIII-PROJECT FINANCING SECTION IX -ECONOMIC ANALYSIS OF POWER SUPPLY ALTERNATIVES GLOSSARY OF TERMS VOLUME 2 Appendix A -Coal Plant Feasibility Design and Report Prepared by PES VOLUME 3 Appendix B -Modular Plant Feasibility Design and Report Prepared by PES VOLUME 4 Appendix C -138 kV Transmission Line Feasibility Design Information Appendix D -Electric System Studies Prepared by EPS Appendix E -Foundation and Fuel Storage Feasibility Design Reports Prepared by LCMF ; VOLUME 5 Appendix F -Preliminary Environmental Assessment Review Appendix G -Economic Analysis Appendix H -Miscellaneous Information Appendix I-Public Comments BETHEL COAL-FIRED POWER GENERATION PLANT FEASIBILITY STUDY FOR NUVISTA LIGHT AND POWER March 18,2004 Prepared By: Precision Energy Services,Inc. Project Development Division PRECISION ENERGY SERVICES INC. P.O.Box 1004 «Hayden,Idaho 83835 (208)772-4457 www.pes-world.com TABLE OF CONTENTS I. Il. TH.PROJECT SPECIFICATIONS .00.0.....c.cccssssssscccocsecsscsstsccersscecsecsscscseccecceseseesessatcessnsssacssesessacesescouensnssscacsseassoseeeas 4 A.REQUIREMENT SPECIFICATIONS B.LOCAL CONDITIONS .........csssssesosseccesesersessesneres ses we C.OTHER DESIGN REQUIREMENTS .......ccccssssessecseccssserssssecsnccceescssrscssesuausecessesesvacsseenesenseeseeseucscssaneesssessenorecsseseenes 5 D.EMISSION STANDARDS TV.DESIGN PHILOSOPHY Vv.FUEL SELECTION,PROCUREMENT AND LOGISTICS OF SUPPLY A.-SELECTION OF COAL.........B.COAL DEMAND AND STORAGE REQUIREMENT D.COAL TRANSPORTATION PROCEDURE .....:c00seee0 E.--_SCHEDULE...sscscsocsssrserscnecceverstcectesessceressnecceucscssessseceesenseasensnseaseoess VI.DESCRIPTION OF THE POWER PLANT......... A.COAL STORAGE..B.PULVERIZED COAL COMBUSTORS WITH INTEGRATED BOILER ......cccccceesssoecrccceesssesesessescnsnconeesauccenens 35 C.STEAM TURBINE AND GENERATOR SYSTEM...seve ves 38 D.ENVIRONMENTAL CONTROL SYSTEM.......ssccssssssessssssssesseesrseeesenserseeteonacsesersnsneatsnsesaransesees aeceeveseeseeneessesseneeseats 39 E.AUXILIARY EQUIPMENT AND INSTALLATIONG........scscccosesesecccesnerecsescersseccecesecatenscsensanecsacescnsanseceaseseauseesesassess 45F.INSTRUMENTATION AND CONTROLS,CENTRAL CONTROL ROoM AND MoTor CONTROL CENTER .....2ccc0se000 47 G.MAINTENANCE SHO ........ccsecsssssessencessssvesscescessnesconssssseeeneees sees ..52 H.SITING OF THE POWER PLANT......ccssccscccscsesnccececssserscsncerenseceesenssceceseccssatsssscoeeesecnssssscsessaneesecsessessensanstesssssesees 54 VIL DISTRICT HEATING SYSTEM .............cccsscsssccccsssssssssssscesescessesenessneseesnteorerssssustseaussontseesnecssessteessensossssssesneces 58 A.PIPES &PUMPS....ssesees soveescesevecsuscessceesesseceneecssauseccsssrssecsucesssenesacesessncessrsaeseenacsesescsaarsees 59 B.HEAT EXCHANGERS ."sesssseesersucessccsasecsccesescescescceseeseesencsscsecusceseccesssesereee 60 C.BACKUP SYSTEM.......ccccsccssssssssssssceseeeees soscteseccsecececcecesscesenceneeeesscesensncesseseessaerss wes ..60 VIII.CAPITAL COST ESTIMATE ...........csccssssssssssssssscsecscsssssnscsssscrcsnsonsosscssctapsesssssesersuseasaceeseeceasecsensussacessnacesseseees 62 A.LAND- -MOUNTED POWER PLANT ........sssrssscccsesseseesensssseeeeeses .seseccesesscsecsesesescecessecessesces 62 B.BARGE MOUNTED POWER PLANT .......cscccccssesssccssescsssesscucesescessrecssvovesstcersesssuuessesarsseacsescusessceaseseuseassenssarones 63 IX.O&M ESTIMATE secacesscensesececeeceseuscevesssceussensssseotscsnsescessnennenseasecs ...66 X.POWERPLANT PERFORMANCE EFFICIENCY .........00 ...68 A.FACTORS IMPACTING PERFORMANCE OF THE STEAM POWER PLANT ......csssccsosesescesscesocvesssessossnsceseeseeseesoesass 68 B SUMMARY OF BETHEL POWER PLANT PERFORMANCE .......sssssccoveseccesssaccenasecsesseceseceserscecossesascarsceanesessssesseseoes 71 XI.RELIABILITY AND AVAILABILITY STUDY...........c:cccssssssssessseees 12 MAIN CONCERNS ...ccsscssscsccevecrssssceccccreccssssssscececsessecssssscscccescersctessnsescnecsssesecensnsessesenscessscnanerscsaesssssscesoesenssensese 78 ESTIMATION OF AVAILABILITY OF EQUIPMENT AND SYSTEMS;ADDRESSING THE CONCERNS ........:scsesecesseese 80 ESTIMATION OF PLANT AVAILABILITY AND POWER SUPPLY RELIABILITY .........sscscscscssssesccscsectscssnecsvecscesensees 81QAM>NnQie}bas)tmuttryZ=2SyOn OANNAMPYWNEATTACHMENTS Table of Contents Schedule Drawings Coal Suppliers Combustion Technologies Babcock &Wilcox Alstom Power Heyl &Patterson Man Takraf Martin Engineering FEECO Metso Minerals Continental Conveyor Garco Radian Geometrica Standby Turbines LCMF Report PRECISION ENERGY ,SERVICES INC. I.INTRODUCTION This report has been prepared as part of a feasibility study of a power plant proposed for the development near the City of Bethel for the supply of electric power to Placer Dome's Donlin Mine and to the City of Bethel,Alaska and neighboring native villages.The power plant under study will be coal fired.In addition to evaluating power generation,the feasibility of providing district heating to the residents of Bethel,local institutions (schools, community college,hospital,local prison)and local businesses is being evaluated.The goal of this report is to provide the project developers with sufficient information,including specific recommendations to identify the most feasible,long-term power production options that would result in generating electric and thermal energy at competitive pricing and facilitate reduction of State payments in the framework of the Power Cost Equalization Program.Permitting standards and expected performance related to the operation of the power plant have been noted to make the developer aware of the possible requirements. The primary step of the Feasibility Study was determining the best fuel for the plant.Section V of this Report evaluates seven coals from USA (3 coal sources)and Canada (4 coal sources).In this section the cost of coal delivered to Bethel in dollars per million Btu fired is determined,on which basis a recommendation is made for the selection of coal.The criteria used for the evaluation,the effective cost per million Btu,is considered to be the broadest because it takes into account the procurement cost,cost of shipping from the mine-side to Bethel,sulfur content,and possible requirement for an FGD (flue gas desulfurization) system including SO,scrubbing material demand,ash and moisture content,and net heat recovered from the coal.One of the analyzed coals is mined in Alaska. Based on the fuel and emissions requirements at Bethel,an evaluation of the two best combustion technologies for the application,pulverized coal and fluidized bed,was made. Based on the available fuel and plant requirements,it was found that pulverized coal technology best fit the plant requirements and conditions at Bethel.The discussion of the two technologies can be found in the attachment section under "Combustion Technologies.” Costing information herein is based on the application of the pulverized coal firing technology. The PC combustion is a modern technology that has been proven in the USA in the last 40 years and is characterized by high combustion efficiency and low-cost emission controls. The technology has become an industry standard for coal-based power generation.Bids have been obtained from the most advanced and experienced vendors:Babcock &Wilcox and Alstom,formerly Combustion Engineering. The evaluations also include the supply of heat energy and hot utility water to a district heating system in the City of Bethel.The study does not evaluate the feasibility of the application of district heating for specific thermal energy recipients;there is included, however,sufficient information to conduct such evaluations for most of the potential customers of the district heating system. The Study addresses two options of siting of the power plant.First option is based on siting PRECISION ENERGY SERVICES INC. the entire plant on land,south of the City of Bethel.The second option is based on siting the coal storage facility and some other bulky systems like cooling towers on land and the steam and generation plant on barges.Advantages and drawbacks of both options are evaluated in Section VI.H.Siting of the Power Plant.Barge-mounted power plants (Power Barges)based on combustion turbine or diesel motive power have been popular,primarily in less developed areas and where and at the time when fuel prices are very low.The Feasibility Study shows that coal-fired power barges may be an economically viable option for remote locations where the cost of skilled labor is two to three times as high as in Mainland USA. The power plant specifications are provided in Section III. The study also includes in Subsection D.Environmental Control System of Section VI Description of the Power Plant,a viable business option for ash utilization instead of landfilling or ocean dumping.Due to its high content of silicon dioxide (SiO2),aluminum oxide (AI,03)and iron oxide (in excess of 87%combined content)the ash will be a good pozzolanic material to be used as a Portland cement substitute and admixture. The thermal system (boiler)of the Power Plant will include a capability to feed and burn local municipal solid waste and partially dried sewage sludge excavated from drying lagoon. This will eliminate the garbage and sewage sludge disposal problem typical for Northern locations with permafrost under layer. During the work on the feasibility study,a significant effort has been made to determine the applicability of local (Alaskan)coal for the power plant.Although there are large coal deposits in Alaska,most of them are not easily accessible,at large distances from Bethel,or not developed.Evaluation of the Usibelli coal led to the conclusion that this coal is not acceptable for the Bethel plant due to its low quality (over 60%more of Usibelli coal is needed than of Fording coal)and its tendency to develop hot spots and spontaneous combustion.Specific details are provided in the report. PRECISION ENERGY SERVICES INC. Il.GLOSSARY CHP Cogeneration Heat Plant CT Combustion Turbine CTG Combustion Turbine and Generator ASL Elevation Above Sea Level DH District Heating Gpm or gpm US Gallon Per MinuteHRSGHeatRecoverySteam GeneratorMPPModularPowerPlant MWe Mega Watt electric =1000 kilowatt (kW) PM Prime Mover -primary equipment for energy conversion (combustion turbine or diesel engine) STG Steam turbine and Generator MM Btu Million Btu SCR Selective Catalytic Reduction (of NOx) BOP Balance of plant Ppm Parts per million -unit for measuring concentration of a pollutant in flue 'gas Ppmvol __sParts per million by volume Ppmdv Parts per million by dry volume (water content not included in the total) ACI American Concrete Institute AISC American Institute of Steel Construction ANSI American National Standards Institute ASME American Society of Mechanical Engineers ASME B31.1 Power PipingASTMAmericanSociety for Testing Materials AWS American Welding Society CTI Cooling Tower InstituteHEIHeatExchangeInstituteHISHydraulicInstituteStandards IEEE Institute of Electrical &Electronic Engineers ISA Instrument Society of AmericaNECNationalElectricCode NFPA National Fire Protection AgencyNFPCNationalFireProtectionCode OSHA Occupation Safety &Health ActTEMATubularExchangersManufacturer's AssociationUBCUniformBuildingCodeUMCUniformMechanicalCode UPC Uniform Plumbing Code UL Underwriters Laboratory -industrial insurance company FM Factory Mutual -industrial insurance company PRECISION ERERGY SERVICES INC. Il.PROJECT SPECIFICATIONS A.Requirement Specifications Required electric power supply at the Donlin Mine MWe 70.0 Transmission line losses , -MWe 5.0 Local usage (Bethel,villages)MWe 9.3 Parasitic power (power plant use)MWe 8.5 Required electric power output,net at transformer MWe 92.8 Thermal energy supply to the District Heating (DH)system Yearly average heat supply million Btu/hr 128.9 Average summer supply million Btu/hr 91.1 Average winter supply million Btu/hr 142.2 Maximum winter supply million Btu/hr 169.0 Extremely low winter temperatures million Btu/hr 180.0 Utility water for consumption Ib/hr 151,400 Gpm 303 .Assumed that all utility water is consumed,0 return .Heating water 20%losses,80%return The DH system will use hot water as the energy carrier (see System Description): .Water temperature,outgoing °F 170 -175 .-Return °F 125 -130 -Water pressure,out psig 100 .Return,design psig 20 Heating of the hot water will be achieved primarily by utilization of condensing heat exchanger utilizing latent heat of condensation of the steam cycle. B.Local Conditions Elevation above sea level ft ASL 100 Temperatures -see graph on the following page Average humidity:range:60%(summer)to 85%(winter) IPE: rk)&.,Temperatura(F/C}asoa8PRECISION ENERGY SERVICES INC. Average Temperatures and Records for Bethel,AKCc 32 23 Ni AAASuw Spi 15 ,tN tl ne -wet ah I heetrctuctinartn yatind Lepore -fh ia,,a Tae ls _many?Wan |WA i.al BXShempfataabaw en Soe AT Wma cry Mo, 26 anfaN My Ae [iF ww-34 The Hy upear Jan Feb Mar Apr May Jun Jul flug Sep Oct Nov Dec Average High Average Low Record High/Low Month Figure 1 Other Design Requirements Job Conditions: .Electrical 460 V,4160 V,3 ®,60 Hz .Equipment Location Indoors .Insurance Codes/Requirements UL,FM,NFPA Emission Standards The most likely standards that the Power Plant will have to comply with are: SO,500 ppm molar fraction Remark:To comply with this standard,the sulfur content in the coal should not exceed 0.5%weight.The sulfur content in the recommended coal is below 0.3% CO There is no State standard for CO emissions from solid fired power generation equipment;however,exceeding 100 tons per year may trigger the requirement for a New Source Review and setting of a performance standard for the plant. NOx The State of Alaska does not have a standard for NOx;however,the standard to be used here will most likely be 0.065 lb/million Btu or 35 ppm vol.at 3% QO2. PRECISION ERE. SERVICES INC. PM The standard for particulate matter (PM)is 0.10 grain per cubic foot at standard conditions averaged over 3 hours. The values for expected standards were obtained from the Alaska Department of Environmental Conservation as guidelines for plant design.The actual performance requirements will be determined based on application for the Permit to Construct and Permit to Operate. woe AY MET lc os eReokwagoneFUKUKeaAfingPax iN Speer Be Figure 2 Location of the City ofBethel PRECISION ENERGY SERVICES INC. of: DESIGN PHILOSOPHY The Bethel Coal-Fired Power Plant design philosophy is based on the following premises: 1.Utilization of the best value coal -fuel cost amounts to around 65%of the total plant operating cost and cost of money combined,therefore fuel efficiency becomes the primary objective of the project. 2.Because of the plant location in Western Alaska and its duty,the required reliability of power supply both to the Donlin Mine and the City must be almost 100%. 3.Modularize as much as possible to be capable of erecting the plant in a short time and in Western Alaska conditions taking into account the short season for shipping supplies to the site.Also,consideration should be given to locating the plant or a significant portion thereof on one or two power barges that can be assembled in a West Coast port and tugged to Bethel. As a result,in the fuel selection process we evaluated various coals from the point of view .High and Net heating value (HHV and LHV) "Sulfur content -requirement for a flue gas desulfurization system and S02scrubbingmaterial.Moisture and ash content,both of which are of negative values and are shipped at high cost .Procurement cost and .Shipping cost As the result of the evaluation,the selected coal must be characterized by the lowest cost per million Btu. Also,as a result of the above assumptions,the pulverized coal combustion technology was elected. To achieve the required reliability and availability,it was decided to recommend two parallel _ process lines,each generating 50%of the demand with each being capable of increasing its capacity by a minimum of 5 MW and supplying 100%of the thermal demand for the district heating system. The study also includes a business-viable option for ash utilization instead of landfilling. Cost,operability,and protection of the permafrost considerations were applied to engineering of the coal delivery,storage,and reclamation system.Foundations and enclosure for this system alone amount to approximately 10%of the entire plant cost.For instance,the study evaluates air supported structure versus prefabricated steel structure;also PRECISION EXERGY SERVICES INC. use of a layer of coal as the permafrost insulating layer versus other insulation methods is being evaluated. PRECISION EBRERGY SERVICES INC. Vv.FUEL SELECTION,PROCUREMENT AND LOGISTICS OF SUPPLY Fuel selection is the most important activity in the development of a new power plant.It impacts the following: 1.The cost of fuel is the largest portion of the plant's operating and maintenance cost including cost of money. 2.The characteristics of the fuel are very important in the selection of the combustion technology;not every fuel is suitable for the most efficient technology.For instance, high moisture coal should not be used in pulverized coal furnaces. 3.The fuel composition,specifically its Sulfur,Nitrogen and Chlorine content,is very important to the selection of emission control systems. 4.Also the fuel properties have a large impact on the method and cost of storage.For example,coal with a high volatile matter and moisture content will naturally produce combustible gas in an exothermic process,which means that not only will the coal pile heat up locally,but there is also a hazard of spontaneous ignition and explosion of the gas at hot spots.- In consideration of the Bethel Power Plant conditions,selection of the best value coal becomes an utmost requirement.Due to large fluctuations of the cost of diesel fuel, procurement and delivery of coal to Bethel became one of the most challenging parts of the feasibility study. Fuel selection is impacted by: .General fuel properties (heating value,proximate and ultimate analysis,ash characteristics,moisture content and other) .Project specific issues such as: .Delivery is difficult due to distance,climatological,and navigational limitations. .Volume problems -The amount of fuel that has to be delivered to Bethel is the largest volume shipping companies active in Western Alaska have ever had to consider.This creates problems resulting from the lack of experience. Initial evaluation of fuels has shown that the cost of producing electric power in a coal-fired plant is significantly lower than the cost of power generated from liquid fuel,even though the capital cost of such a plant is appreciably higher than that of the liquid fired plant. The following comparison is provided for the purpose of better understanding of the advantages that coal-based power generation provides. Input energy needed to produce equivalent 1 MW of electric power: PRECISION ERERBY SERVICES INC. Remark:1 MWe is equivalent to 3.412 MM Btu. I.in coal-fired cycle (with heat supply to District Heating):9.55 MM Btu at a cost of $2.13 /MM Btu (Fording coal)$20.34 /MWe 2.in combustion turbine with combinéd cycle:.5.00 MM Btu at a cost of $7.96/MM Btu (Diesel Fuel DF2)$39.80 /MWe The CT combined cycle option,which is significantly more thermally efficient than the coal-fired option but is still more than twice the cost of the coal fired option due to the large difference in the cost of fuel:$2.13 per MM Btu for coal vis-a-vis $7.96 per MM Btu for diesel fuel,delivered to Bethel. In the coal-fired option two cost alternatives are provided;they are based on the way coal barging is organized: -The lower cost is with coal barging being operated by Nuvista or its” subsidiary or sister company. -The higher cost is for coal being barged by an outside marine contractor. For further details see Section C.Shipping Coal to Bethel These values include all thermal energy expenses (fuel)including energy for the district heating system and heat recovery.The DH heat is converted to MWe by dividing net heat supply by 3.412 E6.The net electric power includes only the 70 MW sent to the Donlin mine and the supply of 9.3 MW for the City of Bethel and the villages. The difference on a kWh basis is $19.44 per MW.The cost of generation in a significantly more efficient cogeneration system is 96%higher in comparison to coal-fired generation solely due to the difference in delivered fuel cost on a "per million Btu”basis.The difference becomes smaller after the operating cost and the financing cost are taken into account.See feasibility evaluation. The two most important cost factors in the procurement of coal are: .The cost of coal in $per million Btu ($/MM Btu) .The cost of shipping of coal to the plant site This section describes,to the best of our knowledge,coal supply to Bethel and is based on numerous discussions and correspondence with representatives of mining and shipping companies,specifically those that are in the business of shipping bulk material on the Kuskokwim River and other navigational waters in Western Alaska. A.Selection of Coal 10 PES=receayeSERVIVICES INC. The basis for coal selection is essentially one factor:the cost of one million Btu obtained from coal.The factor is calculated from a variety of components that are discussed briefly herein. The tables on the following pages show step-by-step the calculation of the final cost of energy obtained from coal.Eight coals from various mines and seams have been evaluated.The table shows coal demand for power generation and district heating of Bethel.The coal cost data has been obtained in the form of budgetary quotes. For the purpose of this study the following coals were analyzed: Quinsam CoalKennecottEnergy,Spring Creek Mine Kennecott Energy,Colowyo Mine 1.Fording Coal Type A,thermal,Black Bear Mine 2.Fording Coal Type B,thermal,Coal Mountain Mine 3.Luscar Obed Mountain Mine 4.Luscar Coal Valley Mine 5.Usibelli Coal Mines 6. 7. 8. Quinsam,Fording and Luscar are Western Canadian coal mines located in British Columbia.The cost of shipping of these coals to a sea port would therefore be lower than that for Kennecott Energy Coal Mines,which are located on the Wyoming/Colorado border. The price of all coals except for Quinsam and Usibelli have been adjusted by the suppliers to reflect the recent increase of the motor fuel prices.Whenever possible,the shipping cost was determined based on motor fuel prices as of January 30",2003. The boiler efficiency given in the table on the following pages was as per Babcock &Wilcox handbook "Steam”. It should be noted that the most feasible coal is the one that has the highest heating value and the lowest sulfur content,the type A thermal coal from Fording's Black Bear seam.The sulfur content is sufficiently low so that no SO2 scrubbing is required to perform according to applicable Alaska standards for emissions;as a matter of fact,the sulfur content provides for a sufficient margin in case the Alaska Department of Environmental Control decided to apply a more stringent sulfur dioxide emission standard. It should be noted that the Black Bear coal has the lowest content of volatile matter - and moisture.This by itself,as described above,significantly reduces storage and fire prevention costs.According to Westshore Terminals,this coal can be stored without compacting or other major fire prevention means for periods exceeding one year.Young,lignite-type coals (Usibelli coal)exhibit inherent tendency to localized 11 PRECISION ENERGY SERVICES INC. overheating and auto-ignition after periods as short as 72 hours. For further considerations,the Black Bear coal supplied by Fording (Elk Valley Coal Corporation)will be used.The currently mined seam has an estimated life of 13 years.There are in the vicinity of the Black Bear mine coal seams that will be opened for exploitation as the demand grows. 12 BETHEL ALASKA POWER GENERATION PROJECT Table 1.COST OF COAL ANALYSIS 1 Fording Coal Luscar Quinsam Coal Kennecott Energy Usibelli Coat Usibelit Coal Sub-bitumii Sub-hi 2 eck Bern (Cea 8,sorta)Coal Valley Obed Mountain Mine Colowyo Spring Creek mined as washed &dried 3 |Heating value,net as received Btu/ib 10,620 4 |HHV as received Btu/ib 12,284 11,130 10,800 11,160 "10,450 8,360 7,800 40,500 5 |HV MF (moisture free)Btu/lb 13,352 12,164 11,520 10,000 11,680 12,551 12,447 6 [MAF (moisture and ash free)Btw/ib 12,240 13,468 13,128 10,800 10,600 7 |Catculated (Dulong)HHV Btu 12,264 11,458 10,843 9,881 11,224 10,559 9,207 7,168 11,142 7 |Calculated (Steinmueller)LHV =equiv.Net HV Btu/tb 11,952 11,120 10,500 9,461 10,806 10,092 8,708 6,819 10,160 8 |Fuel usage per MM Btu ib/MM Btu 72.3 76.1 63.0 87.4 62.4 90.1 102.5 118.4 66.5 9 |Proximate Analysis :Estimated 10|Total moisture 8.0%85%10.0%13.0%9.0%18.7%24.8%26.0%12.0% 11|Ash (MF) ° 11.9%16.5%10.2%12.4%"43.5%5.7%3.9%9.0%9.0% 12}Fixed carbon (air dry)-65.0%55.0%46.4%41.6%47.0%45.0%38.5%29.0%29.0% 13]Volatite matter (air dry)23.0%medium 33.2%33.0%35%32.6%32.4%36.0%36.0% 14 |Product Size 15 |50mmx0mm (Luscar 50 x 25)100%100%6.4%5%100%100% 16 [25 mmx 5mm 51.0%35%100.0% 47 |5 mm x3 mm (Luscar5x2)15.5%30% 18 |2.0mmxOmm_(Luscar 2.0 x 0.5)16.5%20%30% 19 {6.5 mm x 0.2 mm 5.8%6% 20 |0.2 mm x0 48%4% 21 22 |Ultimate Analysis Carbon 71.0%66.0%83.5%57.3%63.8%60.8%53.9%45.2%55.3% 23 Sulphur 0.29%0.27%0.25%0.50%0.71%04%0.3%0.20%0.24% 24 H,3.7%3.7%3.9%3.9%4.19%4.1%3.7%2.9%6.9% 25 Na 1.0%0.6%0.95%1.2%0.62%1.4%07%0.6%0.7% 26 Q2 5.0%5.9%14.2%11.7%9.2%14.0%12.6%16.1%15.8% 27 a 0.0%0.0% 28 MC 8.0%8.5%,10.0%13.0%9.0%16.7%24.8%'26.0%12.0% 29 Ash 11.0%15.1%10.2%12.4%12.3%5.7%3.9%9.0%9.0% 30 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% 31 }SO,Ib/MM Btu SO,0.48 0.49 0.46 1.00 1.34 0.73 0.71 0.50 0.45 32 CA mt %XA XAir %20%20%22%25%22%25.0%30.0%35%25% 33 Ib/MM Btu 910.90 937.79 933.96 939.97 976.56 959.06 975.18 965 971 34 |Products of Combustion Ib /MM Btu .955 971 990 1,463 988 1,029 2,504 998 988 35 |PoC Volume SCFH per MM Btu 12,178 12,434 12,675 18,362 12,714 13,241 30,857 13,024 43,000 36 |PoC %volume co,13.4%12.8%13.2%8.6%13.1%13.1%5.7%}©12.8%11.7% 37 H,0 6.3%6.5%74%5.6%.7.6%8.8%48%14.0%11.6% 38 Na 76.9%77.5%75.8%52.7%79.0%74.5%32.5%76.2%76.8% 39 OQ,3.4%3.1%3.6%33.1%0.3%3.6%57.3%0.0%0.0% 40 SO,0.021%0.020%0.019%0.028% : 0.055%0.031%0.013%0.021%0.019% ay 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% 42 |SO,ppm vol.dry basis at 12%CO,.221 213 209 299 590 336 136 232 211 Bold requi ,ime 1.6x st Ib/MM Btu 0.33 43 |Coal demand for Bethel 92.8 MW plant Including district heating 44 |Net heat demand MM Btwhr 1,041 1,041 1,041 1,041 1,041 1,041 4,041 1,041 4,041 45 |Steamg (boiler ay )08.3%88.3%86.7%85.9%87.5%65.1%84.3%83.44%86.20% 46 |Bathel power plant heat energy demand,gross MM 8tu/hr -1,178 1,178.69 1,200.73 1,212.05 1,189.61 1,223.45 1,235.22 1,247.20 1,207.27 47 |Required fuel tb/hr 95,896 105,902 191,178 121,205 112,016 117,077 131,967 159,898 114,978 49 JUS tons @ 99%,red DH afd 412,300 455,322 478,005 $21,116 481,608 503,366 567,387 687,474 494,344 Coal data29 09 03,Coal cost anal Page 1 of 2 11/20/2003 BETHEL ALASKA POWER GENERATION PROJECT Table 1.COST OF COAL ANALYSIS 1 Fording Coal Luscar Quinsam Coal Kennecott Energy Usibelli Coal Usibelll Coal Sub.Ft Sub-bi 2 Ty Rlaek*aie (oatMoneta)Cost Valley [Obed Mountain Mine Colowyo Spring Creek Inined |washed &dried 48 |MT -metric tons @ 99%,reduced summer DH demand |MT/Y 374,000 413,100 433,600 472,700 436,900 456,600 514,700 623,700 448,500 50 |Lime supply MT 1,527 51 jCoal cost 52 |Cost FOB Sea-going port (MT =metric ton}$/mT 35.00 35.00 32.00 28.50 37.00 45.30 27,00 19,00 30.69 53 |Cost of ime $/MT 120.00 FOB 'Westshore Terminals or Roberts Bank,Vancouver BC,Canada Texada Is,BC Roberts Bank,Vancouver,BC Seward,AK Seward,AK Shipping to Bethel ity Core ed ant bulk meignier,|S¢MT 38.50 38.50 38.50 38.50 38.50 38.50 38.50 37.00 37.00 56 jLoading at Roberts Bank,Vancouver BC S/MT 3.00 3.00 3.00 3.00 3.00 3.00 3.00 57 |Total caal cost $/MT 78.50 76.50 73.50 70.00 78.50 86.80 68,50 56.00 67.69 58 |Total cost UST 69.40 69.40 66.68 63.50 71.21 78.74 62.14 50.80 61.41 59 |Total fuel and ime cost S/year 28,611,000 31,602,150 31,869,800 33,089,000 34,543,306 39,632,880 35,256,950 34,927,200 30,360,000 60 |Unit cost at Port site (FOB deap water ship)$/MM Btu 1.41 1.55 1.47 1.43 1.58 2.10 1.46 411 4.33 61 |Total unit cost delivered to Bethel $/MM Btu 2.83 3.12 3.09 3.18 3.38 3.77 3.32 3.26 :2.93 62 |Percentage shipping cost in total coal cost .54.2%54.2%56.5%59.3%52.9%47.8%80.6%66.1%54.7% 63 |Shipping to Bethel by NUVISTA barges $/MT 7.80 7.60 7.60 7.60 7.60 7.60 7.60 7.60 7.80 64 |Total shipping &barging SiMT 58.10 58.10 55.10 51.60 60.10 68.40 50.10 37.60 49.29 65 |Fuet cost with NUVISTA shipping 21,729,400 24,001,110 23,891,360 24,391,320 26,349,480 31,231,440 25,786,470 23,451,120 22,107,600 66 |Shipping cost savings $/Year 6,881,600 7,601,040 7,978,240 8,697,680 8,193,826 8,401,440 9,470,480 11,476,080 8,252,400 67 |Cost per MM Btu at 99%availability 2.13 2.35 2.29 2.32 2.55 2.94 2.41 2.17 2 68 |Percentage shipping cost in total coal cost '39.8%39.8%41.9%44.8%38.4%33.8%46.1%49.5%37.7% 69 |Power generation kw ;92,801 . 70 |Equivatent DH energy Btwhr/3412 kw 37,778 71 |Total equivalent power output kW 130,579 72 \Thermal efficiency with district heating Without 37.82%37.80%37.11%36.76%37.45%36.42%36.07%35.72%36.90% 73 |Thermal efficiency without district heating reheat 29.55%29.53%26.99%28.72%29.26%28.45%28.18%28.09%28.83% 74 |Thermal efficiency with district heating With reheat 39.37%39.34%38.62%38.26%38.98%.37.90%37.54%37.18%38.41% 75 |Thermal efficiency without district heating 31.02%31.01%30.44%30.15%30.72%29.87%29.59%29.30%30.27% Coal data2909 03,Coat cost anal Page 2 of2 11/20/2003 IDES PRECISIONENERGY 4 SERVICES INC. Type A thermal coal is supplied by the Black Bear Mine of Fording Type B thermal coal is supplied by the Coal Mountain Mine of Fording Fording and Luscar mining companies have merged into Elk Valley Coal Corporation The preceding table shows cost in the first year at 99%availability for 20 year cost structure;see attached spreadsheet for 20 year supplies The following items should be added to the calculation of the cost of Quinsam coal: -Capital cost of flue gas desulfurization system estimated $4,600,000 capital including installation;assumed 20 year life of the scrubbing system, cost of money at 5.5%: $0.018 /MM Btu -Operating cost -manpower,repairs (cost of consumables included above)$0.012/MMBtu Total additions $0.030 /MM Btu Effective cost of Quinsam coal $3.39 /MM Btu Please also see Section VII,Para C.regarding capital and operating cost implications for the use of the Usibelli coal Attachments 1 to 8 to Section VII.Fuel includes the coal specifications for the various coals,as follows: Attachment 1 Fording,Black Bear coal Attachment 2 Fording Coal Mountain coal Attachment 3 Luscar,Obed Mountain Mine Attachment 4 Luscar,Coal Valley Attachment 5 Usibelli Coal Mine Attachment 6 Quinsam Coal Attachment7&B Kennecott Energy,Spring Creek and Colowyo coal 14 ME PRECISION SERVICES INC. Coal Demand and Storage Requirement The coal demand of the Bethel Power Plant is: At 100%boiler output:95,900 lb/hr (Fording coal)(at 85%steam generation efficiency) At 99%availability 412,300 short ton (ST) 374,000 metric ton (MT) At 80%demand 333,170 ST. 301,700 MT Required storage capacity has been determined based on the following assumptions: .The navigational season lasts from the last ten days of May to the first ten days of October -about 4'4 months .To account for unforeseen circumstances,such as late start of the navigating season,an early winter,or for security of supply reasons, it was assumed that the fuel delivery season would last 3 months. Consequently,the storage capacity must provide space for storing nine months worth of coal usage or 310,500 ST.The balance,approximately 101,800 ST,will be delivered directly to the coal bunkers or used to replenish the coal in storage during periods of waiting for incoming barges.In calculating the amount of coal in storage, differencesin usage of district heating heat and hot water over the year were alsotakenintoaccount. Coal will have to be stored in an enclosed,air-supported or modular steel structure. This is a requirement resulting from continuous high winds (see Figure 3),which will cause major pollution and economical problems.With uncovered outdoor storage,the winds will pick up coal dust.The estimated amount of dust that could be blown away from an uncovered coal pile is up to 5%,especially during stacking and reclaiming operations.This represents a loss of 22,000 ST or an estimated $1,530,000.The cost ofa cover structure of $7.5 million will repay itselfjust in coal savings within less than five years.Prevention of coal dust air pollution iis difficulttoexpressinmonetaryunits,but it is at least as important. The coal demand and storage capacity required for the plant is provided in Table 2. Following Table 2 are two pages which provide the cost of barging coal from Security Cove to Bethel plus six pages of coal transportation schedules and equipment requirements discussed in Section C. 15 PRECISION ENERGY SERVICES INC. Table 2 Coal Demand in Months and Required Storage Capacity Coal demand ST Required storagecapacity Month PP DH PP +DH ST January 32,451 3,222 35,673 35,673 February 29,311 2,725 32,063 32,063 March 32,451 2,682 35,133 35,133 April 31,405 2,595 34,000 34,000 May 32,451 2,346 34,798 34,798 June 31,405 2,271 33,675 33,675 July (3 weeks DH maintenance)32,451 587 33,038 Direct supply toAugust32,451 2,346 |34,797|eeSeptember31,405 2,595 34,000 October 32,451 2,682 .35,133 35,133 November 31,405 2,919 34,324 34,324 December 32,451 3,222 35,673 35,673 Totals 382,089 30,191 |412,280 310,445 Volume CY 460,000 |CFt 12,420,000 PP =Power Plant demand (power generation);DH =District Heating system demand; PP +DH =total plant demand; ST =short ton Bethel Windrose - 16 COST OF BARGING COAL FROM SECURITY COVE TO BETHEL Capital cost and cost of money | Pre-owned barge,including overhaul 3 2,800,000 8,400,000 All tons are metric =2205 Ibs unless indicated otherwise Pre-owned tug boat,including overhaul 1 2,200,000 2,200,000 Shipping to Security Cove includes $3.00 per ton loading charge at respective cog Other cost 1,000,000 Total Capco 11,600,000 Grant 67%7,730,000 Total requiring financing 3,870,000 Equity 25%of remaining 25%967,500 Loan _ 2,902,500 Interest on loan 5.0% ; At the beginning of Year Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Remaining principal to be repaid 2,902,500 2,671,738 2,429,438 2,175,023 1,907,887 1,627,394 1,332,877 1,023,634 Interest payment 145,125 133,587 121,472 108,751 95,394 81,370 66,644 51,182 Principal repayment 7 230,762 242,300 254,415 267,136 280,493 294,517 309,243 324,705 Total yearly payment on loan 375,887 375,887 375,887 375,887 375,887 375,887 375,887 375,887 et yeat delivery of 100%coal Second to Twentieth Year;Piant operating at 80%capacity OPCO seasonal only 110 days}May 25 -Sept 88 days|May 25 -Aug.24 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Hours 2,640 2,112 2,112 2,112 2,112 2,112 2,112 2,112 Personnel tug 3 barges 6 9 Man-hours 23,760 19,008 19,008 19,008 19,008 19,008 19,008 19,008 Rate incl.O/T and other.$40.00 |$950,400 |$760,320 |$760,320 |$760,320 |$760,320 |$760,320 |$760,320 |$760,320 | Fuel usage gal/year $159,700 |$124,500 |$124,500 |$124,500 |$124,500 |$124,500 |$124,500 |$124,500 Fuel at $1.25 /gallon $199,625 |$155,625 |$155,625 |$155,625 |$155,625 |$155,625 |$155,625 |$155,625 Lubeoil 1,0421$2,605.00 2,031 2,034 2,031 2,031 2,031 |2,031 2,031 Other consumables 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Maintenance . 159,726 159,726 159,726 159,726 159,726 159,726 |159,726 159,726 Insurance 2.5%of value 2.50%327,250 Cost of money +principal 375,887 375,887 375,887 375,887 375,887 375,887 375,887 375,887 Total expenses $2,035,493 |$1,473,589 |$1,473,589|$1,473,589 |$1,473,589!$1,473,589|$1,473,589|$1,473,589 Coal barged tons 374,000 299,200 299,200 299,200 299,200 299,200 299,200 299,200 Cost per ton $/ton $5.4415 4.93 |$4.931 $4.93 |$4.93 |$4.93 |$4.93 |$4.93 Charge to Bethel Power $/ton $7.60 |$7.60 |$7.60 |$7.60 |$7.60 |$7.60 |$7.60 |$7.60 Fuel cost (Fording)$/ton $35.00 |$35.00 |$35.00 |$35.00 |$35.00 |$35.00 |$35.00 |$35.00 Shipping to Security Cove*$/ton $15.50 |$15.50 |$15.50 |$15.50 |$15.50 |$15.50 |$15.50 |$15.50 Total fuel cost at Bethel $/ton $58.10 |$58.10 |$58.101 $58.10 |$58.10 |$58.10 |$58.10 |$58.10 Barge OPCO 19 11 2003 11/20/2003 COST OF BARGING COAL FROM SECURITY COVE TO BETHEL Capital cost and cost of money Pre-owned barge,including overhaul Pre-owned tug boat,including overhaulil terminal Other cost Total Capco Grant Total requiring financing Equity 25%of remaining Loan Interest on loan At the beginning of Year Y9 Y 10 Total paid Remaining principal to be repaid 698,928 357,988 Interest payment 34,946 17,899 856,370 Principal repayment 340,941 357,988 2,902,500 Total yearly payment on loan 375,887 375,887 Second to Twentieth Year;Plant operating at 80%capacity OPCO seasonal only 88 days|OPCO seasonal only May 25 -July 7 Y9 Y 10 Y 11 Y 12 Y 13 Y 14 Y 18 Y 19 Y¥20 Hours 2,112 2,112 2,112 2,112 2,112 2,112 2,112.2,112 2,112 Personnel - : Man-hours 19,008 19,008 19,008 19,008 19,008 19,008 19,008 19,008 19,008 Rate incl.O/T and other $760,320 |$760,320 |$760,320 |$760,320 |$760,320 |$760,320 |$760,320 |$760,320 |$760,320 Fuel usage .$124,500 |$124,500 |$124,500 |$124,500 |$124,500 |$124,500 |$124,500 |$124,500 |$124,500 Fuel at $1.25 /gallon $155,625 |$155,625 |$155,625 |$155,625 |$155,625 |$155,625 |$155,625 |$155,625 |$155,625 Lubeoil 2,031 2,031 2,031 2,031 2,031 2,031 2,031 2,031 2,031 Other consumables 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Maintenance 159,726 159,726 159,726 159,726 159,726 159,726 159,726 159,726 159,726 Insurance 2.5%of value Cost of money +principal 375,887 375,887 0 0 0 0 0 0 0 Total expenses $1,473,589 |$_1,473,589|$1,097,702|$1,097,702|$1,097,702|$1,097,702|$1,097,702|$1,097,702|$1,097,702 Coal barged 299,200 299,200 299,200 299,200 299,200 299,200 299,200 299,200 299,200, Cost per ton $4.93 |$4.93 |$3.67 |$3.67 |$3.67 |$3.67 |$3.67 |$3.67 |$3.67 Charge to Bethel Power $7.60 |$7.60 |$5.70 |$5.70|$ 5.70)$5.70 |$5.701 $5.70 |$5.70 Fuel cost (Fording)$35.00 |$'35.00 |$35.00 |$35.00 |$35.00 |$35.00 |$35.00 |$35.00 |$35.00 Shipping to Security Cove*$15.50 |$15.50 |$15.50 |$15.50 |$15.50 |$15.50 |$15.50 |$15.50 |$15.50 Total fuel cost at Bethel $58.10}$58.10 |$56.20 |$56.20 |$56.20 |$56.20 |$56.20 |$56.20 |$56.20 Barge OPCO 19 11 2003 11/20/2003 PRECISION EMERGY SERVICES INC. The next issue relating to estimating the required storage capacity is the coal pile configuration.As discussed on the following page,the issue is important because of the required space and related cost,as well as safety reasons. Coal should be stored in compacted piles to eliminate air pockets and reduce water access to coal or in un-compacted piles to facilitate good air flow through the piles. High rank coal with low moisture content may be stored in un-compacted piles. 18 IPE:PRECISION ENERGY SERVICES INC. cs)ZO 25 0.233 | 1.0 Figure 4 Coal Pile Configuration Figure 4 shows a comparison of coal piles'cross-sectional areas and related proportions.The one with the 25°angle of incline is for a compacted (packed)pile. The angle is dictated by the capability of compacting equipment to work safely.The other,with the 38°incline,is an un-compacted coal pile,in which the angle is created by coal's natural angle of repose.The cross-sectional area of un-compacted coal pile is 67%larger than the cross-sectional area of the packed coal pile. After taking into account the cross-sectional area proportions and the bulk densities of compacted and loosely deposited coal (70 and 50 Ib/cubic foot,respectively),it was determined that an un-compacted pile will store 20%more coal on the same horizontal area than the packed coal pile.This is concluded with the following brief economic analysis: Capital Expenditure Savings with uncompacted storage versus compacted pile: .Due to smaller building (shorter by 20%)$1.2 million .Due to less working equipment,no D8-R Cat required $500,000 "Due to foundation cost reduction $1.8 million Total capital cost savings $3.5 million Operating Cost Savings for uncompacted pile versus compacted pile: .Reduction of building maintenance cost $25,000/year .Elimination of operation of D8-R Bulldozer (120 days/yr)$100,000/year Total operating cost savings $125,000/tear The above analysis is valid for coal that can be stored un-compacted,such as Fording Black Bear coal.Lower rank coals,especially those with high intrinsic moisture, require compacting for safety purposes,mainly prevention of low-temperature release of combustible gases due to reactions between water and CO)creating methane,prevention of localized self-induced heating,and spontaneous ignition and explosion hazards. 19° IPES PRECISION ERERGY SERVICES INC. Coal Storage on Permafrost-related Issues No geotechnical or survey information is available for the proposed plant sites.For this report,we have assumed the plant area to consist of ice-rich,warm permafrost sandy-silts.Foundations will typically corisist of a thick layer of compacted sand with a layer of rigid board insulation installed in the pad to limit seasonal thaw to within the sand fill.To preserve the integrity of the underlying permafrost, foundation designs utilize passive refrigeration,thermo siphon flat loop systems and/or thermo helix-piles as deemed necessary.The refrigeration systems will use the phase change properties of CO2 to remove heat from the ground whenever the air temperature is below freezing.The cost of constructing foundations in permafrost soils is substantially greater than on non-permafrost soils.It is estimated that the cost of constructing foundations and associated passive refrigeration systems at Bethel will be roughly 2.64 times ($19.2 million vs.$7.3 million)that of constructing conventional foundations in non-permafrost soils of average load bearing capacity, such as firm clays,sands and gravels. Shipping Coal to Bethel -see Spreadsheet following page 16 Two options of shipping coal to Bethel were considered: .Load barges at the port of shipping -Vancouver Port,Roberts Bank,or Westshore Terminal,Seward Coal Terminal or Texada Island,B.C.(for Quinsam coal)and tug them directly to Bethel.Following a brief evaluation (presented below),it was decided not to proceed with further research of this option as it became apparent at a very early stage that it is inherently a high cost option.This results from: -Extended shipping time and -On long distances barge +tug shipping is less fuel efficient than large vessel shipping. According to Foss Maritime Company the cost of shipping coal by barge from Vancouver will be as follows: 20 PES PRECISION ENERGY SERVICES INC. 5 barge-tug teams are needed to deliver the coal to Bethel during the shipping season of 150 days.One round trip from Vancouver to Bethel will take approximately 21 days;the following cost items are included: -Mobilization at $190,000 per barge/tug 950,000$ -Cost to modify existing equipment $3,000,000 -150 days at 80%utilization,$15,750 per barge perday $9,450,000 -Waiting time at $12,750 per barge per day (20%)$1,912,500 -Demobilization at $200,000 per barge -tug $1,000,000 Total cost $16,312,500 This cost does not include wharfage,moorage,pilotage assist tugs,local or state taxes or misc.port fees.These items would add as much as $2,175,000 ($5.00 per ton) The resulting shipping cost per ton:$18,487,500 /435,000 =$42.50 The highest cost of shipping using other arrangements,outlined below,is between $20.56 to $37.65 per US ton. Transport all coal on Handysize type (10,000 to 35,000 DWT)deep-sea bulk carrying vessels to Security Cove or Goodnews Bay,where coal would be transloaded (lightered)onto barges and tugged to Bethel.The waters of the Kuskokwim Bay and the mouth of the Kuskokwim River are rough making transloading from bulk freighter to barges very difficult if not entirely impossible.Additional impact is exerted by the heavy winds in the Kuskokwim Bay area.Both the Goodnews Bay and the Security Cove provide good conditions for lightering. At the time of writing this report,there was no information available about the navigability of Goodnews Bay.All cost data and scheduling is based upon transloading in Security Cove. 21 PRECISION ERGRSY SERVICES INC. STATES. *@oednews Bay aManekgtae SSco Figure 5 Location of Security Cove and Goodnews Bay The cost of shipping from Vancouver,BC to Security Cove was determined to be approximately $12.00 to $14.50.The lower cost was provided by Seabulk Systems, Inc.of Richmond,BC and World Wide Shipping &Chartering Ltd.also of Vancouver,BC;Navio Corporation of Connecticut quoted the higher price.After lengthy discussions with the bulk shipping companies,we concluded that the price would be in the range of $12.50 when all additional costs are taken into account, including higher fuel cost. Two variants of this option have been evaluated: 1.Barging coal by specialized marine contractors 2.Barging coal by Nuvista or a subsidiary/sister company thereofThefollowingcompanieswereapproachedtoprovidetheshipping cost fromSecurityCovetoBethel. 7 Seabulk Systems,Inc. .Crowley Maritime Corporation .Bering Marine Corporation,a Division of Lynden Incorporated .Northland Services,Inc. "Foss Maritime Company Seabulk Systems is an engineering company,which also provides shipping services 22 PES PRECISION EREREY SERVICES INC. by subcontracting.All other companies have their own fleet or will expand their fleet to fulfill obligations if employed for the job. All of the shipping companies have experience in barging materials up the Kuskokwim River or in other areas of Western Alaska,however,at present the only company with significant Kuskokwim related experience is Northland Services. Northland Services sister company,Yukon Fuel,has been shipping large amounts of fuel to Bethel and other villages on the Kuskokwim river for years.Yukon fuel has been shipping fuel barges from 7,700 dead weight tonnage (DWT)up to 9,000 DWT. Yukon Fuels has submitted the most competitive and comprehensive quote for supplying fuel for the MPP. Foss Maritime's experience includes continuous shipping of lead/zinc concentrate from the Red Dog Mine.The conditions for shipping from the Kivalina port,North of the Kotzebue Sound,are different from those on the Kuskokwim River.Shipping there involves mainly open sea navigation as opposed to traveling on a river with a significant number of shallow places.Also the shipping is done in the other direction, the material is shipped from the mainland to receiving locations outside Alaska.Red Dog Mine owns the self-unloading barges operated by Foss Maritime. Bering Marine (Lynden)provides specialized contract marine services,delivering building materials,equipment,sand,rock and gravel to Alaska's isolated places.The fleet of shallow-draft equipment supports construction of docks,roads,and airstrips. Because they own floating construction equipment,Lynden would possibly be a good choice for bringing in and unloading plant equipment during construction. Crowley Maritime Corporation is the largest barging contractor in the West Coast waters,specifically in the Alaskan waters .Other companies (for instance Northland Services)often lease equipment from Crowley.The company does not have the local experience in shipping on barges large quantities on a continuous basis,as does Northland (Yukon Fuel);however,due to this company's size and involvement in all kinds of shipping,it is our belief that Crowley can provide this service with the same success rate as Northland. The second variant of this option is to ship the coal from Security Cove or Goodnews Bay by a subsidiary or sister company of Nuvista Corporation.This undertaking would be carried out as follows: Nuvista would purchase 3 (three)pre-owned barges with 10,000 to 12,000 DWT capacity,maximum draft 12.5 feet,and one pre-owned tug boat with a 3000 to 4000 hp engine.In the first year operation four Handysize freighters (Handysize is a bulk carrier vessel of 10,000 to 35,000 DWT)will deliver the freight to the Security Cove or Goodnews Bay according to a predetermined schedule (see attached schedules). The coal will be unloaded onto the barges so that the bulk carrier will not have to wait for unloading.The tug boat will tow the barges one at a time to Bethel where 23 IPE reneeENCESERvicesINT. they will be unloaded.After delivering the first barge the tug boat will travel empty to pick up the next barge and will travel back with the first barge.After delivering the third barge,the tug boat will tow two barges.The arrival at Security Cove of the next freighter will be scheduled to coincide with the arrival of the barges at this point. In the first year (supply of 412,300 US tons)4 freighters will be employed;two freighters will make four trips each and two freighters will make three trips each. One trip will bring 7,500 tons more than required;this amount will be stored at Bethel.In the second through twentieth years three freighters making three trips each and one freighter making only 2 trips will be employed. The attached schedule of the cost of barging shows that this option will result in significant savings.The trip time includes 8 hour contingency for waiting for tide. Other possibilities were also discussed,for instance: -Partial unloading of the deep-sea freighters onto barges at Security Cove and then move the ship to a location near Eek Island for unloading the remaining coal.This could save some shipping and barging costs,but would require shipping on larger vessels,such as Panamax size (60 to 75 thousand DWT) and is dependant on the allowable ship draft.After several discussions,this option has been abandoned because of the expected higher cost of freighter shipping and lightering operations. -Barging from Vancouver or Seward to Bethel -this option was abandoned early due to cost -see considerations on page 20 and 21. Coal Transportation Procedure After many discussion with all companies we have decided on the following procedures: 1.Navigational Conditions From its mouth to Bethel,the Kuskokwim River includes several shallowplaces(sand bars)that reduce the allowable vessel draft to below 6 ft.The most severe conditions exist at Johnson's Crossing and Oscar's Crossing. The beginning and end of the shipping season may vary.The best estimate ofthenavigationalseasonisfromapproximatelyMay25"to October 5%.Navigation ofthe Kuskokwim River:is strongly related to tides;a sample tide schedule for July 18,2003 at the Apokak Creek entrance is shown in Figure6.The tide increases the allowable draft to 12.5 feet in low-water season. 24 PRECISION ENERGY SERVICES INC. The navigational season includes two low water periods when the depth is in the range of 12 to 12.5 feet with tide.The periods are: .Mid July to third week of August,due to the dry season »Mid September to the end of the season due to water freezinginmountainstreams Lsrenleiitand Eide a Eason]Eigeal bEztenl sien Eitdenl [gon s ams joonpm duly 18 2003-Apokak Creek entrance,ALASKA Kuskokwim Bag and RiverHigh:07418 5:07 am.1.8 ft «=Low:07418 11:53 pm,0.3 Ft - Figure 6 Kuskokwim River Tide Schedule for July 18,2003 at the Apokak Creek Entrance 2.Equipment Barges and Freighters Due to the short navigating season,draft limitations and the amount of coal that has to be delivered to the power plant site it is recommended that large deck or hopper barges are used.The coal supply schedule presented herein was prepared based on the Crowley 400 ft x 100 ft deck barge.The carrying capacity of this barge in DWT (see next page schematic and specifications) is: .At high water up to 12,000 short tons (ST)(10,870 MT). .At low water -assumed for 11.5 feet 8,800 ST (8,000 MT) Crowley's 400 x 100 barge is representative of the large barges;although other barge dimensions are also used,for instance 418.5'x 75'x 29',14,500 DWT (Portsmouth and Bridgeport type),420'x 80”17,193 DWT,550'x 80” at 33,700 DWT and other.The 550 ft barge is designed as an articulated barge and tug tandem.It is typical for petroleum products shipping with double wall hull and has a draft of over 24 feet,which practically eliminates it from navigating on the Kuskokwim River. Consideration was also given to self-unloading barges of the type being used for shipping Red Dog Mine's concentrate.These barges are significantly more expensive and due to the specifics of their design,have reduced payload tonnage. For ocean shipping from the coal ports near Vancouver,BC,Canada it is recommended to employ 35,000 DWT bulk freighters with continuous 25 PES PRECISION EMERBY SERVICES INC. unloading capabilities.This type of ship will be able to deliver to Security Cove 30,000 tones of coal and load to the barges.Five thousand DWT is dedicated to the weight of the ship's own personnel and supplies -fuel,food and other items. Barge Availability Virtually every one of the above shipping companies will have to obtain barges for this job.At present,possibly only Crowley Maritime has sufficient equipment,which still have to be outfitted for shipping coal. There is a broad range of available pre-owned barges and tug boats.Attached are 2 pages printout of examples of available equipment.In the attached spreadsheet "Coast of Barging Coal ...”it was assumed that the barges can be purchased at $2.8 million each including overhauling and adapting to coal transporting. Unloading Equipment Ocean-going bulk freighters are equipped normally with unloading/barge loading equipment and only such will be hired for delivering coal to Security Cove.Unloading equipment is required for barges. a.Self-unloading barges barges that are equipped with unloading equipment.Coal is stowed in large hoppers that discharge onto a conveyor at the bottom of the barge.The conveyor delivers the coal to an elevator (bucket or two-belt conveyor),which discharges the coal to a transporter delivering the coal to a place on the shore most often being a hopper for a subsequent conveyor.This would be the most expensive of the three options as the unloading equipment would be built into each barge.This would increase the weight of each barge and reduce the tonnage that it could carry. b.Crane un-loaders are usually simple and the initial cost is most likely the lowest;however they are relatively slow.Crane unloading rate is in the range of up to 500 ton/hr.Evaluation of the system has lead us to conclude that the minimum unloading rate should not be lower than 1500 tons/hr.The equipment cost of cranes for an application of this size is very close to that of a continuous unloader. c Continuous barge unloader,supplied by Heyl-Patterson and proposed for application at Bethel is shown in Figure 7. 26 IPE PRECISION ENERGY SERVICES INC. Figure 7Heyl-Patterson Stationary Barge Unloader The system is anchored one side on shore and the other on a concrete pile in the water.The system's capacity is up to 2,000 ton/hr.It is powered by electric power with stand-by diesel generator. This unloader is a permanent installation and cannot be moved for winter, therefore,it requires protection against damage caused by ice,specifically at the beginning of the cold season during ice build up and in the spring during ice break up (ice floes). Another unloading system for the application at Bethel is a Catamaran Transfer Vessel (CTV);see picture in Figure 8. The CTV is a mid-stream floating structure supported by columns erected on a pair of self-propelled hulls capable of trans-shipping bulk cargo from barges into Cape/Panamax size vessels or to the shore.The first CTV with an unloading capacity of 3,000 tons/hour (30,000 ton per day)is workinginIndonesiatransloadingcoalontoocean-going coal freighters. 27 IPE!PRECISION ENERGY SERVICES INC. The reclaimer is capable of unloading at a design rate of 2,000 tph of coal and can achieve effective cleaning without front-end loader assistance.The daily average load rate of the CTV is estimated at 20,000 tpd of coal. The upper deck supports a unique chain bucket reclaimer with a dual-head moving on a separate trolley across the width of barges. The vessel is capable of unassisted maneuvers along the length of ships and barges using an onboard Dynamic Positioning System of thruster drives.The thrusters enable the vessel to mobilize between transshipment sites at a nominal speed of 6 knots and effectively station-keep during operations as well as mooring.It will be possible to move the CTV for the winter and early spring months into a slough,where ice damage would be prevented. A fully integrated navigation bridge includes a separate cargo control center directly above the bulk/container operations.A satellite communication system on the CTV is used for data management and shore interface.Due to the fact that the CTV,if selected for the Bethel site as barge unloading equipment,will be stationary and the only required movement would be translocation to a slough for winter storage,these features will not be required. Although slightly more expensive than cranes,continuous unloaders have many advantages.They are much faster than other unloading methods; continuous un-loaders will be able to sustain an unloading rate of 2,000 TPH. Continuous un-loaders require only 1-2 operators to run,thereby reducing manpower costs compared to other unloading methods.Currently the pricing for continuous un-loaders is in the range of 5-7 million dollars. Schedule Please see attached schedules. For scheduling purposes it was assumed that 400 x 100 barges with respective tugs are used and that the payload of the barges will be 10,000 MT during normal water level period and 7,500 MT during low water level period. 28 PRECISION ENERGY SERVICES INC. Other assumptions made for scheduling are: Average loading and unloading times of barges,including maneuvering to and away from freighter and dock site in Bethel are as follows: -10,000 MT barge 6.0 hours -7,500 MT barge 5.0 hours -5,000 MT barge 4.0 hours -At maximum velocity of 7.5 knots upriver and 8.7 knots downriver (empty) the average loaded trip time is 21 hours one-way.Empty trip down river is assumed at 19 hours.This time includes some contingency for unexpected events that would delay operations. -In trip planning 8 hours was added as a contingency for waiting for the tide. ;Figure 8 Catamaran Barge Unloading System Shown in Ship Loading Service,with a Helipad All scheduling presented in the Report or attached documents is based on the 29 PRECISION ENERGY SERVICES INC. lightering operations being done at Security Cove.There is a possibility that lightering will be possible to be done at Goodnews Bay which is some 30 to 35 miles closer to Bethel.Conducting lightering operations in the Goodnews Bay would reduce the barge trip time by four hours and proportionally the cost of barging.The Goodnews Bay navigational conditions must be farther investigated. 30 IPE:PRECISION ENERGY SERVICES INC. DESCRIPTION OF THE POWER PLANT A complete coal fired power plant has been evaluated for the production of 97 MW of electrical power and required heat for the district heating system.The plant will include two separate process lines,each including one boiler and steam turbine to allow independent operation of the plant on one system at 55 MW and 177 million Btu of heat for the district heating system. The Power Plant will include the following systems: 9. Coal receiving and unloading dock.-Included in Section V Coal storage area including stacking and retrieving equipment,and conveyors for delivering fuel to the boilers.-Included in Section A Two pulverized coal combustors with integrated boiler,superheater,economizer and air heater,and feedwater system.-Included in Section B Two turbine and generator process lines including switchgear and substation,as well as steam condensers with cooling towers and cooling water circulating pumps.- Included in Section C Air pollution control system including baghouse,SCR system,ducting and stack - Included in Section D Auxiliary equipment and installations such as loaders,diesel fuel storage tank,stand by diesel fired combustion turbine,diesel fired boiler for start up and auxiliary steam demand and other.-Included in Section E Instrumentation and controls,central control room and motor control center.- Included in Section F Maintenance shop with tools.-Included in Section G Siting of the Power Plant -Included in Section H The plant will be housed in appropriate buildings.The buildings will also include facilities for the office personnel -locker rooms,lunchroom,etc.The plant may also be partially housed on power barges in which case the on-shore power plant buildings will be reduced to modular structures to house the related needs.-Included in Section J A.Coal Storage The delivery conveyor from the continuous unloader discharges into a receiving hopper and onto the main coal conveyor to the coal storage yard.For this task a covered belt conveyor 60”wide and approximately 1200'long is being recommended.The belt will deliver the coal to the storage yard via a stacking system. 31 i! {ii|| i RES PRECISION ERERGY SERVICES INC. Several stacking systems were investigated: 1.Linear stacking systems that travel on a track and stack the coal in linear piles, 2.Radial-stacking systems that stack in radially arranged piles, 3.Linear bucket-wheel stacking/reclaiming systems,.which incorporate both stacking and reclaiming functions in one system. The first two systems require additionally reclaiming equipment such as: .Front end loaders, Portal reclaimer,whose reclaiming equipment is similar to that of a barge unloader, "Boom-mounted bucket wheel reclaimer. Both reclaiming systems are applicable only to loosely packed coal.They cannot be used for reclaiming compacted or frozen coal piles,which in Bethel may create a problem,especially because the storage building will not be heated.However,the stacking and reclaiming systems are independent of each other and can perform both operations at the same time. The bucket-wheel stacker/reclaimer can reclaim coal from both packed and un- compacted piles;however,being two-in-one systems,it can do only one kind of operation at the time.This may be problematic during the shipping season when it will also have to reclaim coal for power plant operation.An option is included,in which coal flow from the barge unloader will bypass the stacker and be conveyed directly to the coal bunkers for feeding the boilers. Attached is documentation from METSO Minerals,a USA materials handling equipment fabricating company and MAN TAKRAF,a German materials handling equipment builder and supplier.We have also discussed the application with Thyssen Krupp,another German materials handling equipment builder and supplier.We have not,however,received a quote from this company. Challenges relating to the long-term storage of coal have been mentioned in the section titled Coal Demand and Storage Requirement.Information provided both by the mining company (Fording Coal Mines)and Westshore Terminals indicates that the coal needs not to be compacted for extended storage,in excess of one year. Also,as indicated earlier,coal will have to be stored in a covered facility,primarily to prevent coal fines from being blown and lost due to high winds blowing continuously in the area.Covering of the coal pile will also protect coal from deterioration under the influence of the elements and prevent weathering and absorption of moisture from precipitation. The last will result in the elimination of the need for a sophisticated and expensive 32 IPE!PRECISION EMERGY SERVICES INC. water drainage,collection and disposal system. The coal pile configuration is shown on drawing No.01-000-001.The following four options for coal pile covering were investigated: 1.Pre-Fabricated Stee]Building This is one of the more attractive methods for covering the coal in Bethel.Although this method is more expensive than an air supported structure,it offers more flexibility once it is constructed.Steel buildings have good resistance to the elements,if needed,can be heated and can enable good ventilation of the coal pile.The foundations for a building of this type are also simple,making the building easy to erect.A building for the required size would cost roughly 5.5 to 6.5 million dollars,erection cost not included.Garco Buildings of Spokane,WA is a typical supplier of such buildings. Air Supported Structures These are structures in which air under slight pressure hold inflated a fabric roof and side walls.These buildings are easy to transport and offer a short erection time.The structure requires a continuous air supply to stay inflated,which adds a significant amount to the operating cost.The required air pressure is in the range of 2 to 2.5 inch WG. The air exiting the structure must be utilized as combustion air or cleaned before disposal.An air-supported structure of required size would cost about 4 million dollars before erection costs.This price was quoted by Radian Air Supported Structures. Concrete Domes offer a simple option for coal storage that provides a large volume for the space used.This structure is not recommended when compacting of coal is required.The cost ofa concrete dome built in the USA Mainland would range between 7 and 9 million dollars depending on the size. Taking into account Bethel conditions and availability of construction materials,the cost may easily double.The supplier of such structures is Dome Technology. Aluminum Frame Domes are similar to pre-fabricated steel buildings.These buildings have a dome shaped roof,but can have standard walls like a regular building.The major benefit of an aluminum frame dome design is that it can be used for large clear-span structures;clear spans of 350 feet or more are not uncommon.A budget materials price of about 6.5 million with an installed price of about $16 million was quoted by Geometrica.These structures are advantageous when structure weight is a major consideration.Otherwise steel prefabricated structures are faster and cheaper to assemble. The buildings will require inlets for the conveyor that brings coal from the dock,for the conveyor(s)transporting coal out of the building and for letting in and out selfpropelledworkingmachines(loader,bulldozer,etc.)and personnel. 33 PES PRECISION ENERGY SERVICES INC. From the storage building,the coal will be reclaimed and delivered to two bunkers per each boiler via a system with dual conveyors,one conveyor will be stand-by. The conveyors will deliver coal to the bunkers via grizzlies,which will be serve asa backup system for filling the bunkers in case of a reclaimer breakdown.There will also be auxiliary feed hoppers that can be used in the event the stacking and reclaiming system is down for maintenance.For this purpose,the plant will be equipped with CAT 980G front-end loaders for filing the hoppers. The coal storage building will also include a fire prevention and suppression system. The most important issue in fire/explosion prevention is controlling coal dust.For this purpose,a detailed procedure will be developed. Dust Control In the Coal Storage and Handling System Prevention of coal dust explosions and fire will be the most important safety precaution undertaken in the Bethel Coal-Fired Power Plant,therefore,the coal storage and handling system will have to include several dust control methods and equipment. a.Dust Control Transfer Points -sized and quoted by Martin Engineering.The technology associated with the Martin Engineering low dust transfer points is called PECS -Passive Enclosure Dust Control System.This technology allows transferring coal from one conveyor to another without stirring up excessive dust. The PECS Transfer System uses a "Hood”to control the material stream as it comes off a head pulley.It keeps the material tightly together through the drop chute and directs it onto a "Spoon”receiving chute.The spoon lays thematerialonthereceivingbeltatroughlythesamespeedanddirectionthatthe belt is traveling.This minimizes air entrainment and reduces impact that can wear the belt and drive dust into the air. The PECS Transfer System also incorporates seals at the entry to reduce air movement anda stilling zone at the exit to allow dust to settle from the air. b.Belt Cleaning -Keeping belts clean can drastically reduce lost coal especially during transport.The most common method for cleaning belts are stationary scrapers before the section of belt picks up another load of coal. Cc.Covered Conveyors -Because of Bethel's high wind conditions,all conveyors running outdoors will be covered.Special covers will be included at points where conveyors enter structures,especially if an air-supported structure is used.All covers should extend all the way to transfer points to control dust that is stirred up at the transfer points. d.Coal Buildings -discussed earlier;the advantages from both safety and environment protection point of view,as well as economical reasons cannot 34 ae - patStruc Geometrica Metal Concrete Domes weanrhmre eiee Fa IDE:PapeetesenivicesInc. be underestimated. e.Extraction of Air A system of air extraction from the coal-storage building air will be implemented.The air will be drawn out of the building and used. as combustion air. f.Some dust control measures inside the plant will be implemented by design. The measures will include sealing off areas with intrinsically high dust generation (e.g.coal pulverizers)from the rest of the plant. Pulverized Coal Combustors with Integrated Boiler The power plant will include two pulverized coal combustors with boilers and auxiliary equipment (superheater,economizer,air heater;fans and blowers for combustion air,flue gas induced draft,and feedwater system).The system will produce superheated steam at the following parameters: Per boiler Total Steam output,continuous design capacity lb/hr 354,000 708,000 (includes steam for district heating) Maximum capacity Ib/hr 390,000 780,000 Minimum capacity Ib/hr 240,000 480,000 Superheated steam pressure,design psig 1,100 maximum (MAWP)psig 1,375 maximum (testing)psig 1,650 minimum psig 1,000 Superheated steam temperature,design °F 1,000 maximum °F 1,100 Furnace thermal input MMBtu/br -_589 1,178 Feedwater temperature entering economizer °F 260 Feedwater temperature entering boiler °F S00 . Feedwater Pressure,deaerator exit psig 20 Economizer Exit Gas Temperature to Stack,not to exceed °F "280 Continuous Blowdown 1.75% The superheated steam generation and steam turbine system works in simple Rankine cycle without reheat.Boilers working at the above listed parameters do not normally include reheaters.Application of reheating is being considered together with Babcock &Wilcox and ALSTOM (Combustion Engineering)to improve the generating efficiency. 35 IPE!PRECISION ENERGY SERVICES INC. Pulverized Coal (PC)combustion is a modern technology that has been proven in the USA over the last 40 years and is characterized by high combustion efficiency (very low loss on ignition)and low-cost emission controls.Coal pulverized in specially designed crusher/grinders is blown into the boilers combustion chamber.The coal behaves like a gaseous fuel -both the speed and efficiency of combustion are high. Because of this,the process control are simplified.Means for the control of NOx generation can be used such as those for gaseous fuel combustion -flue gas recirculation,staged combustion with overfire air and other similar methods. Bids have been obtained from the most advanced and experienced vendors:Babcock &Wilcox,and Alstom Power,former ABB Combustion Engineering. The boiler system will include the following components: :Furnace/combustion chamber,which will provide a minimum of 0.5 seconds residence time for the combustion gases before entering the water-walled section. .Evaporator with steam drum,mud drums,tubing .Superheater with attemperator. »Steam heated and flue gas heated air heater .Economizer .Combustion Air Supply System for each boiler and one stand-by system "Feed Water Chemical Treatment .A complete feedwater system with one pump for each boiler and one stand- by,dual-drive (steam and electric)feedwater pump .One deaerator for each boiler including appropriate control valves The steam drum will be equipped with all ASME Pressure Vessel Code required trim. During the system engineering phase,consideration will be given to installing acoustic fire-side tube cleaning devices,which improve boiler performance. Combustion air will be supplied to the system both underfire and overfire to improve combustion performance and enhance NOx control. 36 Coal Pulverizer Babcock &Wilcox a McDermott international company BOTTOM SUPPORTED BOILER WITH LOW GRAVITY CENTER SUITED FOR BARGE MOUNTING Towerpak | |The versatile boiler to economically |burn virtually any fuel. IPE:PRECISION BMERGY SERVICES INC. Make-up Water Source,Treatment,Filtering and Blow-down Disposal Make-up water requirements are as follows: Boiler make up,1.75%of 2 boilers steaming capacity 11,314 lb/hr =22.6 gpm Cooling tower make-up Circulating water evaporation rate: 1.Condensing steam flow 531,062 lb/hr at 1,042 Btu/Ib 2.Heat to be removed 553.30 MM Btu/br 3.AT cooling circulating water 20 °F 4.Required flow of cooling water 27,666,000 Ib/hr =55,320 gpm 5.Evaporation rate 55,320 x 0.1%x AT =1,106 gpm Blow down bleed rate =Evaporation/(#of cycles -1) Bleed rate at 4 concentration cycles 369 gpm Total make-up 1,475 gpm The possible sources of make-up water for the Bethel power plant include: .Drilling of water wells.This option may provide water that is low in impurities and would likely require the least treatment. .The second is drawing water from the Kuskokwim River.This option could prove to be more difficult than drilling wells for several reasons: 0 The Kuskokwim River is over 1000 feet away from the power plant, meaning an 8”pipeline would have to be built from the river to the plant complete with pumps for pumping the distance and the head difference estimated 50 ft.This problem is minimized if the plant is barge mounted. )During winter the Kuskokwim becomes frozen,consequently,the water intake must be near the bottom of the river to prevent freezing. As a result of this,the water will contain a large percentage of suspended and dissolved solids.The cost of preparation of the make up water will increase significantly. )Spring breakup ice could damage the water intake and the piping. 7 Drawing water from an artificial (built)cooling pond.This option will experience problems similar to drawing water from the Kuskokwim River. Unless the pond is sufficiently deep,water in the pond may freeze over during winter and require thawing.Also,excavation of a sufficiently large pond may be significantly more expensive that drilling a water well or upgrading the quality of the Kuskokwim River water. 37 RES PRECISION ENERGY SERVICES INC. .Water supply may be also a combination of two methods;for instance:boiler make up water from well and cooling tower make up water,whose quality is significantly lower than the required quality of boiler water,drawn from the cooling pond. Geotechnical and hydrological investigations will have to be conducted to determine related items,such as water availability,required treatment and so on. The plant will include a boiler make-up water treatment system,which will include as a minimum dual ion bed system. Steam Turbine and Generator System As with the boilers,two trains of Steam Turbine and Generator system will be included in the Power Plant;each train will consist of: .Turbine 1,HP16--high speed,high efficiency turbine .Turbine 2,LP190-synchronous speed turbine receiving lower pressuresteamfromtheHPturbine. .Each turbine system includes a condensing steam exhaust and one steam extraction outlet with non-return valves for district heating and de-aerator. .Speed Reduction Gear Parallel arrangement ..Gland Steam Unit .Gland Steam Condenser .Lube Oil System on separate baseplate for lubrication and control oil with 'interconnecting piping and oil coolers sized for water temperature 85°F.Two main oil pumps and one emergency,DC-motor driven pump.Including Lube Oil Coolers and De-hydration system. .Hydraulic Oil Supply Unit .Required piping,insulation blankets,sheet metal lagging. .Generator,13.8 kV,60 Hz,3600 rpm,0.85 PF with brush-less excitation and coolers sized for water temperature 85°F.Generator shaft is monitored for vibrations. .Complete stand-alone digital control system handling all required turbine and generator controls (closed and open loop)and monitoring instrumentation (power output,pressures,temperatures,vibrations,etc.)of the steam turbine and generator unit.The control system includes a coordinating controller plus separate control units for the turbine governor function,steam turbine safety trip functions and generator voltage regulator functions. .Operator station with color monitor,keyboard,track ball and event and alarmprinter. .Unitis built for indoor installation with noise attenuation to 85 dBA. .Steam Surface Condenser with two liquid ring vacuum pumps,each with 100%capacity.The condenser is built of 304L stainless steel tubing and 38 i i RES PRECISION ENERGY SERVICES INC. tubesheets and coal tar epoxy coated water boxes. .Cooling Tower System -one per train;fiberglass structure,stainless steel connecting hardware,heavy duty PVC film pack fill,fans,fire-retardant FRP fan cylinders for velocity recovery and other. As an alternative to the cooling tower systern use of once-through condenser cooling should be considered,in which the water will be taken from the pond located near the plant site in Bethel.This option will be evaluated in the environmental impact study. Environmental Control System The Bethel Coal-fired Power Plant will be built to satisfy the best Alaskan environment protection standards.With today's technology coal-fired power plants can perform at highest industry levels at reasonable cost not exceeding average industry cost. 1.Emissions The performance of the plant will be as follows: Sulfur dioxide SO, Alaska State standard 500 ppm dry volume (ppmdv) Expected performance less than 250 ppmdv To achieve this performance the plant will be using Fording's Black Bear coal with a sulfur content of 0.29%.Even if more stringent standards are applied,which reduce the SO?allowable emissions by 4,the plant will still perform better than required by standards. To prevent precipitation of sulfuric acid,which causes corrosion and is harmful to the personnel,the minimum flue gas exhaust temperature will be limited to 272°F. a.Particulate matter PM Alaska State standard 0.05 gr/dscf (grains per dry standard cubic foot) Expected Performance The plant will perform at this very stringent standard. To achieve this performance the plant will include a cyclonic type collector (single cyclone or multi-cyclone)and a baghouse (filter) type collector. b.Opacity Alaska State standard 20%for less than 3 minutes in 1 39 RES PRECISION ENERGY SERVICES INC. Expected Performance The plant will perform better than this standard. To reduce opacity excursions the boilers will include acoustic cleaning systems working continuously instead of sootblowers,which cause excursions during sootblowing operations. CO and NOx The State of Alaska does not have standards for NOx and CO.We propose to implement the following standards: CO 0.10 Ib/million Btu fired =118 ppmdv NOx 0.30 Ib/million Btu fired =215 ppmdv The standards that the State may want to impose could be lower,as follows: CO 0.085 1b/million Btu fired =100 ppmdv NOx 0.150 1b/million Btu fired =108 ppmdv To achieve emission levels complying with these standards the plant will utilize the following technical means: For CO reduction/control .Pulverized coal combustion (PC)technology,which improves the combustion efficiency thereby reducing the CO content in the flue gas (CO is a product of incomplete combustion; improvement of combustion efficiency =CO reduction). .Combustion chamber design that will provide a minimum of 0.5 seconds residence time for the combustion gases before entering the water-walled section.The longer the residence time the better probability of CO reacting with oxygen. .Catalytic converter for afterburning CO to CQ}.See remark at the end of NOx reduction/control section (below) The PC technology will also allow minimization of the Loss on Ignition (Lol)to less than 0.5%of the fuel input.Reduction of Lol by 1%is equivalent to saving estimated $300,000 annually.In grate- fired power plants Lol of 2 up to 8%are not unusual. For NOx reduction/control .Flue gas recirculation,which reduces the amount of free 40 MES PRECISION EMERY SERVICES INC. ionized oxygen in the flame zone,thereby reducing the amount of oxygen available for reaction with nitrogen. .Staged supply of combustion air to the PC bumers and to the combustion chamber;the PC burners will receive below 75% of stoichiometric air.The balance.of air will be supplied through upper registers in the combustion chamber. .Selective catalytic or non-catalytic reduction (SCR or SNCR) -to be decided in the engineering phase. Catalytic reduction in an SCR or SNCR requires the supply of ammonia or urea (a compound containing ammonia)to the boiler. Even trace amounts of SO,created at a rate of 2 -5%of the amount of SO,during combustion of sulfur from the coal,react with ammonia and create ABS (ammonium bisulfate),which settles on external surfaces of economizer and air heater tubing causing accelerated corrosion.A catalytic converter,at the same time as it improves afterburning of CO to CO2,also promotes conversion of SO?to SO3,a negative effect of this application. Both the application of the catalytic afterburner and of the catalytic reduction of NOx will be evaluated in the engineering phase. There is a possibility that the Alaska Department of Environmental Conservation will impose on US EPA demand even more stringent standard;for instance NOx 25 ppmdv and CO 0.016 Ib/MM Btu (100 tons per year).To achieve this performance special technical means would be needed,such as Selective Catalytic Reduction System for NOx control and catalytic converter for CO. Dust blowing issues The dust blowing issues are very important for the Bethel area due to strong and constant winds blowing there (See Bethel Windrose, Figure 3).The American National Standard A.58.1 shows winds in this area of up to 100 mpg base speed. 41 IPE:PRECISION ENERGY SERVICES INC. The primary services of dust are: «Coal storage «Outside coal handling equipment,primarily conveyors and loading and discharging points »Ash handling system Prevention of dust blowing is addressed appropriately in the section on coal handling and storage and fire suppression.The general rule to be applied at construction of the plant is to enclose as much as possible and feasible of dust forming points and allow into the building outside air only in a controlled All conveyors working outside will be covered and will be equipped with passive dust control system discharges which significantly reduce the possibility of dust blowing. Effluent Discharge The continuous liquid discharges (effluents)from the plant are:. .Boiler blow-down water .Cooling tower blow-down water -Ton exchange regeneration waste water .Sanitary (sewage)water The intermittent discharge wastewater includes: "Boiler and condenser chemical cleaning solvents .Boiler fire-side wash water Boiler blow-down,cooling tower blow-down water and ion exchange regeneration waste water are neutralized with chemicals and deposited in a settling pond.Neutralization results in large quantities of precipitating solids, which settle in the settling pond.Water from the pond can be reused in the cooling tower system or can be disposed of to a local waterway - Kuskokwim River or a nearby pond. The settling pond solids will be periodically removed and deposited locally in a landfill or quarry.The solids are neutral and do not require disposal in a sanitary landfill. Sanitary water includes only effluent from facilities for the personnel at the power plant.It is recommended that sanitary water disposal is contracted to the sanitary services of the City of Bethel. 42 PRECISION ENERGY SERVICES INC. 3.The Power Plant's solid waste includes ash from coal combustion and general human-generated garbage (municipal solid waste:trash,locker and lunch room waste).General waste shall be collected and disposed of by the City of Bethel Sanitary Services. The power plant may also offer to the City of Bethel and neighboring villages a municipal waste disposal service,in which the plant will incinerate all of the City's combustible waste including sludge from sewage sludge drying lagoons. Ash Handling and Utilization System The Black Bear coal to be utilized in the Power Plant contains on average 11%ash.The content of silica (SiO)and alumina (AI203)in this ash is high;as a result of this,the ash is suitable for the production of concrete _aggregate. Table3 Ash Mineral Analysis (Dry Basis) %SiOz....ccc ccsccccccececcecccvccecesccneceessees 56.86 %ATrO3.....cceccececsceccececeesccseueceeeenenes 27.35 %TiO3....cccscccseccccccccccctecsvecvecectscseucs 1.81 %Fe.03 cere ence seen eaten acne cceecesesserenecsenae 3.42 %CaO.....cccssecccccceccecccccccessesscnseceesess 3.62 Yo MBO.......ccscsencecceessescenctcsesescesueeees 1.02 1.0)0 ener 0.65 WY Na2O......scenccccceccennccnnccsccsceecesereeness 0.60 %P2O5.....ecceeveccccccccecceccrssecseetevecsenees 0.41 %SOs...ccccceecccncsccecccceccccseseeceencenenes 2.30 %Undetermined............ccsescescceeeeeseeeees 1.96 The above ash composition shows its very good quality for utilization both as cement substitute and as filler material.The ASTM Standard C618-89a requires that fly ash to be used in Portland Cement Concrete must contain minimum 70%(Class N and F of mineral admixture)of combined silicon dioxide (SiO2),aluminum oxide (AI203)and iron oxide Fe203)(Please see attached Standard). The picture below shows approximate proportions in concrete production. Based on this,we estimated the input materials and possible concrete "aggregate production as follows: 43 DF patietataSERVIVICESINC. "41%Portland Cement +41%Gravel or Crushed Stone(Coarse Aggregate} 26%Sand (Fine Aggregate) 16%Water |Figure 9 Ash production at 100%plant output:45,600 US tons per year Portland cement 6.0% Ash (substituting cement and sand)77.0% Char (from incomplete combustion of coal)0.5% Water (balance) 16.5% At these proportions,approximately 59,220 tons of concrete aggregate can be produced.In order to increase to volume of the aggregate,some local sand and gravel should be used to reduce the percentage of this highly cementaceous ash.The specific formula for aggregate production will be determined at a cement laboratory based of physical tests. The ash production in the second to eighth years will be:36,500 tons The system will include: .Pneumatic ash collection system extracting fly ash from various points on the boiler,economizer,baghouse and other.The system will include appropriate low pressure rotary blowers equipped with intake filter/silencer and exhaust mufflers. .Ash silo capable of holding eight-month supply of ash. .Portland cement silo with holding capacity for 3,700 tons. .Agglomerating machine that will produce the aggregate. .Aggregate storage. The aggregate can be produced from ash coming straight from thecollectionsystemorfromthesilo.It is proposed to produce the aggregate | seasonally for direct usage locally. 44 PRECISION SERVICES INC. Solid waste and Sewage Sludge disposal One of the boilers of the Power Plant will include a capability to feed and burn local municipal solid waste (MSW)and partially dried sewage sludge excavated from drying lagoon.The plants Emission Control System will be capable of handling the extremely small additional load,which is in the range of 0.11%of the weight fuel input or 0.03%of the thermal input. To facilitate this feature the plant will be equipped with: -MSW and sludge receiving station, -Sorting station to remove tramp metals,rocks and non-combustible demolition waste (concrete pieces) -Shredder -Pneumatic system for conveying and injecting the refuse derived fuel into the furnace. E.Auxiliary Equipment and Installations Plant auxiliary systems include: Stand by diesel fired combustion turbine,GTX100 supplied by Alstom or LM6000 supplied by GE.The system will be activated in case of outage of one of the steam power generation process line,boiler or steam turbine generator.As a stand-by system,the combustion turbine will not include a heat recovery steam generator.The combustion turbine start-up time could be as short as 2 minutes. Diesel fired boiler for start up and auxiliary steam demand including district heating steam during outage of one boiler.Steam produced by the stand-by boiler will be used at plant start-up for steam blows (cleaning of steam lines), turbine trials and district heating system start-up. Diesel fuel storage tank.To enable very short combustion turbine start time, a portion of the diesel fuel will be stored in a separate compartment at 70°F. Rolling stock other than that used in the coal storage facility, Maintenance and repair shops,which is described separately in Section G. Buildings and foundations.Specifics on foundations specifically those built in permafrost conditions are provided in the LCMF LLC report.Covers for the coal storage facility have been described in Section A. Buildings for the power plant will be modular steel construction with appropriate thermal insulation.The buildings will house all equipment and 45 IPE:PRECISION EMERGY SERVICES INC. systems except for cooling towers. Fire Suppression System: The systems to be protected by the fir suppression system include: .Coal storage and handling system. .Coal handling system in the vicinity of the boilers -pulverizers and any other points where coal dust is created,for instance conveyor transfer points. .Liquid fuel tanks including fuel piping,especially points where leakscanoccur:fittings,valves and so on. .Electric systems listed below. .Stand-by combustion turbine compartment .Offices .Maintenance shops The electric systems with automatic release extinguishers include: .Control room electric and electronic equipment .Distributed control and supervisory system processor .Motor control centers .Boiler monitoring and control system .Turbine monitoring an control system .Station service transformer 13.8 kV /4160 V 60 Hz .Low-voltage distribution for auxiliary drives .DC supply system for monitoring and control systems .All other electrical equipment and installations requiringprotection The primary system requiring protection is coal storage and handling systems.Prevision of coal self-induced heating and spontaneous combustion, and dust formation and dust explosions is the most important activity in the plant protection system. Prevention of coal self-induced heating and spontaneous combustion is primarily accomplished by selecting medium to low -volatile bituminous coals with low inherent moisture.The tendency of such coals to self-heat is in the order of one tenth of that of high volatile,high moisture coals.The recommended Black Bear coal from Fording can be stockpiled for over 13 months without spontaneous combustion hazard,whereas,sub-bituminous coals,like Usibelli,should not be stockpiled for longer than 40 to 60 day periods. The subsequent step in the prevention practice is coal pile monitoring for hot 46 PES F. PRECISION ENERGY SERVICES INC. spots and removing those spots the moment they are discovered. As important as the above is prevention of dust formation and suppression of the dust that got formed in stacking,reclaiming and the transfer points from conveyors to hoppers -see sub-section Dust Control in the Coal Storage and Handling System in section VI.DESCRIPTION OF POWER PLANT. In all areas where there is a coal dust hazard electric motors will be explosion proof and rotating equipment such as fans and blowers will be of non- sparking construction. Also,a dry water-foam system will be provided for fire suppression at various points of the coal handling system.In this system,the water is supplied through the piping only at the time of need.The foam is mixed into water close to the discharge point at the fire site by an automatic mixing system.The outdoor piping will be heat traced to prevent freezing of residual water. The fire suppression system for the liquid fuel tanks will also be a dry water- foam system. The dry water-foam system will include redundant water pumps including a diesel engine-driven unit.A 100,000-gallon raw water storage tank with heating coils will serve as a source of fire-fighting water.As an alternative, water from the cooling pond or make-up water well may be used.The water inlet will be placed below the possible freezing level. Appropriate detection,alarms will be included at strategic locations and system actuation will be automatic when and where necessary. The fire suppression system for electric and electronic equipment and systems will employ Energen,which is an inert,non-poisonous gas or an FM-200 chemical-based system.The Energen system is more environmentally friendly.- The stand-by combustion turbine protection will include a CO2 (carbon dioxide)system,which in case of fire will flood the turbine compartment with dry CO2. The offices and the maintenance shops will be equipped with manual fire extinguishers in addition to a dry sprinkler system.A dry sprinkler system does not contain water,only when needed water is pumped into the system. The delay time is negligible. Instrumentation and Controls,Central Control Room and Motor Control Center 47 WOE PRECISION EMEREY SERVICES INC. The Power Plant will be equipped with all instrumentation and controls necessary for trouble-free operation of the Plant.The central control room (CCR)will include operator stations with color monitors,keyboards,track balls and event and alarm printers.The CCR will house also the output and monitoring devices of the steam turbine power generating system. A separate motor control center (one for the entire plant)will be provided in a separate room of the main building. 1.The Plant DCS System The combustion systems with coal feeding,PC burners,boiler as well as the steam turbine will be controlled through an advanced distributed control system (DCS)consisting of an ABB Advant DCS equipment package.The DCS provides supervisory oversight,monitoring,and set point regulation for local controls devices.The supervisory function allows operation of major plant processes and equipment from the local control room.Processing units function independently,however,the exchange of signals across the communications network for controls purposes is avoided wherever possible. Basic control functions of the boilers to be maintained by the DCS system are: -Steam flow is maintained as a result of power and thermal energy demand; -Steam pressure and temperature;these parameters are maintained constant. The fuel feed rate is automatically controlled as a result ofthe set parameters; operator's manual input is required only at unusual conditions that require setting the parameters outside the operating range;for instance,decreasing the boiler output below 70%nominal. Controls for the DH system and the BOP systems will also be integrated into the DCS system.The main functions of the DH system to be integrated into the DCS system are: -Steam supply to the Central Heat Exchange Station based on ambient conditions and demand signals from local heat exchange stations. -System circulating water parameters,and so on. The system will allow a large degree of independence of the DH system within the framework of the Power Plant operation requirements.The Control Philosophy is designed to the needs of the Bethel Power Plant. Process Controls 48 IPE:PRECISION ENERGY SERVICES INC. Major plant systems to be controlled and monitored include: a..Combustion System including fuel supply,operation of coal pulverizers and primary,secondary and tertiary combustion air supply at specified pressuresBoilerSystemwitheconomizer,evaporator,and superheater Steam Turbine Generator System Condensate,feedwater and demineralizer Systems District Heating Systemsaose The plant control system will interface with the Boiler Control System and the Turbine Generator Control System through data links. The Plant operation is designed for a "pushbutton”start locally or from the control room.Its operation is fully automatic.Remote control from the control room is accomplished from the plant control system CRTs via a digital link from the process control systems.The plant control system logs analog and digital data.Under abnormal conditions the output may be lowered for short durations during which time the process lines will operate at a lower efficiency. First time Start-up of the system /Start up after extended outage. PC burners will be used for start-up to gradually heat the furnace and boiler refractory lining to a temperature where fuel may be introduced and combusted properly. The two main considerations during start-up and heating up ofthe boiler are: a.The rate of warming of the refractory should be not more than 50- 100°F per hour (the applicable rate will depend on the specific properties of the selected refractory) b.The rate of warming of the boiler pressure parts should be 4°F per minute. 49 MES PRECISION ENERGY SERVICES INC. Steam Turbine Generators (STG): The STG will be supplied with standard stand-alone control system handling all closed and open loop turbine controls.The control system will include: Electronic Governor based turbine loop controls Allen Bradley PLC module for turbine safety trip functions Allen Bradley PLC for turbine auxiliary control Generator AVR Generator protection relays and synchronizing equipment.esAooPBoiler System Control of the boiler will consist of the following loops integrated into the plant DCS system to safely and efficiently maintain steam header and feedwater pressure to match turbine-generator requirements during start-up, normal operation,upsets,and shutdowns. Steam Drum Level Control System Steam Temperature Control Plant Service Steam Temperature Control Deaerator Level ControlooSo Steam Drum Level Contro!System The drum level control system will be a conventional three-element control system using main steam flow as the feed-forward signal;drum level and feedwater flow as the feedback signals.Based on demand,the system controls a feedwater control valve to adjust the flow to the boiler.The system is designed to operate on single element control using drum level only during start-up. Main Steam Temperature Control System The purpose of this system is to maintain the final superheater outlet temperature at a manually set value with minimum fluctuation.This is a single station,Cascade-type control system in which the final superheater outlet control unit serves as the primary control unit and the desuperheater outlet control unit serves as the secondary control unit. 50 RES PRECISION EMERGY SERVICES INC. District Heat Steam Temperature and Flow Control The DH steam will be extracted from the turbine at 120 to 150 psig through a pressure regulator and flow control valve (FCV).The FCV will be modulated by feedback from the Central Heat Exchange Station depending on ambient heating water return temperatures.: Deaerator Level Control System The deaerator level will be controlled from the control room.If the level is low,make-up will be admitted from the demineralized water storage tank. Overflow will be discharged to the condensate tank.Level switches will be provided to alarm high and low levels and to trip the feedwater pumps on low-low level. Feedwater System Boiler Feedwater systems will be provided with pump minimum flow control,which is furnished by the pump manufacturer.This consists of an automatic recirculation control valve,which will circulate water back to the © deaerator during periods of low feedwater demand -start-up,output reduction. Demineralizers The Demineralizer system will be equipped with a programmable controller (PLC).The water conductivity will be monitored in the control room. Plant Monitoring System All required plant parameters would be monitored and indicated,alarmed and/or recorded in the control room to facilitate the plant operator with control of the plant.The gas turbine will be interfaced to the plant control system for monitoring and trending. Local indicating devices,pressure gauges,thermometers,etc.,will be furnished for local monitoring of selected plant parameters.Grab sample ports will be provided on the condensate,feedwater and main steam lines for periodic analysis for other contaminants.Sample coolers,as required,will be provided. 51 PES PRECISION SERVICES INC. Maintenance Shop Due to the limited capabilities for local fabrication and repair,the plant will have to include a reasonably sized and well equipped maintenance facility.This facility will be able to service both basic plant equipment and the rolling stock on the premises. It is planned that the maintenance facility will be housed in a land-based building with an area of 100'x 240'.Housing a portion of the shop on the power barges should also be considered.The facility will include the following equipment and tools:nN-Welding shop 70'x 100'with roll-up doors 70'x 100'machine shop with roll-up doors This includes heat,sodium vapor lights,rest rooms,locker room,tool room,foreman's office,460 VAC welding equipment plugs in both shops and fire suppression system 10 ton bridge crane in welding shop 16”engine lathe,10'bed 10”bench lathe,5'bed 10”post radial drill press Small 5/8 drill press Vertical milling machine Horizontal milling machine Horizontal cut-off bandsaw Vertical band saw (steel) Iron worker 300 Amp wire feed welder (2) 300 Amp portable welder gas driven Oxyacetylene welding equipment (3) Steam "Jenney”cleaner 50 ton vertical press In addition to the above shop,a rolling stock garage is planned equipped as follows: 1.NNPYGarage shop 160'x 80'x 20”high,12,800 sq.ft. Includes heat,sodium vapor high lights,rest rooms,spare parts room, tire storage area,lubrication storage and 460 VAC welding plugs around shop . Outside weather shed for various mobile equipment with lights and extension cord connections for engine block heaters 100'x 40'x 15' 300 Amp stick welder Oxyacetylene welding equipment (1) Steam "Jenney”cleaner Spare parts,V belts,oil filters,tire chains,spark plugs,light bulbs and batteries Tires &tubes,chains,tire breaker,compressor,lift &impact wrench 52 IPE:PRECISION ERERGY SERVICES INC. 8. 9. 10. 11. 12. Work benches,tool cabinets,floor jacks,dollies,shop vacuum,tire racks,shelf racks.Jack stands,creepers,trouble lights,flash lights, bench vises,arbor press,light bulbs,show shovels,miscellaneous hand tools,drain pans,parts washer,miscellaneous nuts and bolts bin Hard hats,gloves,cold weather clothing,safety glasses,soap andpapertowels,safety shoesTwofuelpumpcovered island,pumps,"readout and totalizers, lighting and infrared heatingUndergrounddieselstoragetank including excavation,piping,etc.Underground gasoline storage tank including excavation,piping Maintenance and repair shops Tools and Consumables CHONAARWNeNeSRSRSRSSSeeSWANAMPYNSN-One year supply of welding wire 2 to 3 sizes One year supply of welding rod,various sizes and grades Bar steel storage rack Steel rounds,square,alloy,etc. Plate steel 3/16,4,1%,% Nuts &bolts,grade 5 &8 Set of 6”to 12”calipers Set of inside micrometers Safety glasses Hard hats Coveralls,welding leathers &gloves Steel work benches (4) Vises of several sizes Storage cabinets Milling machine attachments and milling cutters Various lathes attachments and carbide cutters Miscellaneous hand power tools Miscellaneous hand tools Miscellaneous instruments Spare parts and storage Miscellaneous shop furniture 53 IPE:PRECISION ERERGY SERVICES INC. Siting of the Power Plant The basic design has the Power Plant sited South of the City of Bethel -see drawing BT20089-00-000-002 and BT20089-00-000-003.The site is in close proximity of the planned dock for equipment and materials receiving during construction and coal receiving during operations.The dock will be connected with the coal storage building with a conveyor. The site is also close to a pond,which could be utilized for disposal of plant's waste water,mainly inert blow down from the cooling towers. A second option that has been investigated and evaluated herein is barge mounting of the power plant as a method of reducing the high costs of skilled installation and construction labor and construction equipment in Alaska and supplying of the plant's systems to Alaska. Two barges,on which most of the power plant would be mounted,would be equipped with the intended systems at a shipyard on the West Coast USA or Canada and shipped on dry dock vessels to the vicinity of Security Cove,Alaska,from where the barges will be tugged to Bethel.A canal-type harbor will be excavated in which the barges will be anchored and connected to the land-based coal storage building,make- up water supply and substation for power export.The inlet to the canal will be closed.Housing cooling towers on the barges is also considered as possible and feasible,however,due to space requirement it may be decided in the engineering phase to site the cooling towers on land,near the barges. Currently barge mounted power plants include combustion turbines or diesel engines as motive power,working in simple or combined cycle.They are predominant in areas with developing power grids and areas without access to sources of low-cost and clean fuels such as natural gas and coal.Barge-mounting of a coal-fired power plant has not been done yet,however,there are many examples of this being possible,for example:steam ships,barge-mounted Kraft pulp plant with a recovery .boiler. Realization of this option will encounter several challenges,the most important of which are listed below: a.Method of shipping to Bethel:barges towed from construction/assembling yard would have to be built to satisfy the Standards and requirements for ocean navigating vessels,including US Coast Guard regulations and other. This requirement makes the barge significantly heavier due to strength requirements,even though the barges will practically make only one trip. 54 TPE!PRECISION SERVICES INC. On the other hand,shipping barges ona "Dry Tow"vessel eliminates all of the above requirements because the power barges are considered to be cargo. The navigability requirements of the barges are reduced to those for river shipping -significantly less demanding due to better navigation conditions. Barge origin and shipyard where the power barges are assembled -at present,practically all dry-dock type vessels are foreign flagged and because of the Jones Act cannot be used for shipping between US port.Practically, the barges would have to be built and assembled overseas.One company, Jumbo Shipping,has been looking into getting a US flagged heavy lift vessel built in the next few years.Depending on the project timeline,this company may be able to accommodate our needs. Engineering design issues relating to the strength of the barges,distribution of weights,method of mooring the barges to eliminate the swell of the barges caused by winds. A very important issue relating to the stability of the barge mounted plant is prevention of barge movements during fall freezing and spring ice break-up.These issues will be further analyzed during the engineering phase.Three options for mooring the barges are being considered: i.After the barges are towed into the harbor canal,the inlet would be closed and the water pumped out.The barges would settle on the bottom of the harbor.A support structure will have to be designed so the barge is settled as deemed vital by the requirements of a steam power plant. ii,After the barges are towed into the harbor canal,the inlet would be closed and the water left in.A system for freezing the surrounding water will freeze the barges into place in a controlled way. iii.|The third option is a reverse of the second option:instead of freezing, maintain the water temperature above freezing year round. Each option has both advantages and disadvantages.In the first case the stability of the permafrost below the bottom will be of utmost importance. For creating the canal,a minimum of 12 feet would have to be excavated, which meansa layer of ground protecting the permafrost would be removed and the permafrost disturbed.We are not qualified to predict the consequences of this.One more option that may take place is that there may be no permafrost in area were canal would be excavated or it may be at a significant depth as water from river may have thawed this low ground creating a thaw bulb which is typical of areas adjacent to rivers.Only field investigation will provide info on this. Both the second and the third options are viable means of mooring the 55 RES PRECISION ENERGY SERVICES INC. barges.With appropriate maintenance of the ice build up around the barges the second option results in their good stabilization. The third option is attractive in this that in a steam generation plant there is a substantial amount of low-temperature waste heat (for instance,from steam condensing)that can be easily utilized for maintaining the water surface free ofice and ata constant level.Proper anchoring and stabilization of the barges would be an important task for barge engineers. For the purpose of mounting the power plant pre-owned (used)barges can be procured.The structure of the barges will be enhanced appropriately to facilitate mounting of the heavy equipment.Preferably,the construction could take place in one of the West Coast shipyards,such as: -Todd Pacific Shipyard Corp.in Seattle,WA -Nichols Bros.,Inc,Freeland WA -Gunderson,Inc.Portland OR Shipyards on the Coast of the Gulf of Mexico (Texas,Louisiana)have been also considered,however,barges built there will have to be towed through the Panama Canal,where the allowable width of <105 ft precludes the use of dry-dock vessels with 100 foot wide barges set on top.This adds to the significant cost of transportation. Far East shipyards in China (specifically Shanghai,with the world known Shanghai Boiler Works,that manufactures boilers for North American boiler makers,and which is located at the Yangtze River waterfront)or Indonesia may also be a consideration,however,at the time of writing of this Report,no response from Far East companies was received. The barge sizes evaluated for this purpose are 300'x 100'up to 450'x 100”.400 x 100 barges are presently very popular with the barge shipping companies;as a result, their availability on the pre-owned barge market is almost non-existing.Barge cost is in the range of $2,250 to $2,500 per short ton of barge weight,which translates into $7.5 to $9.5 million per barge.On the pre-owned barge market appropriate equipment can be purchased at $750,000 to $1,250,000 per barge;repairs,enhancing the structure and preparation for mounting the power plant equipment will cost up to $1,500,000.Effectively,the suitable equipment will cost between $2 million and $3 million.In the Capital Cost estimate,the cost for two barges was assumed at $5 million each plus $2,500,000 for dry shipping.Actually both costs can be reduced to a total of $7.5 million for two barges. 56 PRECISION ENERGY SERVICES INC. Fisigure Fi 0 Example of "Dry-dock”vessel shipping of power barges from Batangas/Phillipines and Singapore to Salvador (Baia de Todos os Santos),Brazil (via Cape of Good Hope)forNordesteGenerationLtd.,Singapore. Cargo Specifics: Length (m)Breadth (m)Height (m)Weight (MT) Power barge I 67.0 18.30 4.27 2274 Power barge II 82.3 21.33 5.60 2907 Power barge III 77.7 24.40 4.90 2132 Power barge IV 81.6 22.66 4.88 3300 Power barge V 81.6 22.66 4.88 ©3300 Fuel Barge 85.0 27.00 5.41 1500 Pump House Barge 26.8 9.15 4.70 500 Load-Out Operation: Loading float-on Discharging float-off Transit time Approx.30 days 57 PRECISION ENERGY SERVICES INC. VII.DISTRICT HEATING SYSTEM The plant will include provision for supplying thermal energy to a district heating system for the City of Bethel.The system will meet the diverse thermal energy needs of Bethel's residential,institutional,commercial and industrial customers.It will include a heat exchanger for heating water circulating between the plant and the heat receivers in the neighboring communities.The circulating water will be heated with extracted steam in condensing heat exchangers.At the maximum demand for heat,the plant will supply to the district heating system 230 MM Btw/hr. Based on the heating oil usage records and projected city and surroundings growth,we estimate that Bethel will require the following heat supply: .Summer supply,average:91.1 million Btu/hr averaged over 4 months for May-August »Winter supply,average:142.2 million Btu/hr averaged over January & December .Maximum winter supply 169.0 million Btu/hr »Extremely low winter temperatures,about 40°F 180 million Btu/hr .Yearly average supply:128.9 million Btu/hr The thermal energy supply rates include both heat and hot water for consumption.Since the numbers represent monthly averages,the actual minimums and maximums may differ significantly from the given amounts.It is planned that during a2 to 3 week period in July or August,the system will be shut down for maintenance.The maximum winter demand of 180 million Btu/hr is estimated based on recorded lowest temperatures. The system has been engineered so that every building in Bethel can be supplied with heat and hot water.This includes all residential housing,schools,the community college buildings,government and city buildings,the hospital,the prison,the airport,and local businesses.The system can also provide heat to an existing or new swimming pool for the general population of Bethel. The development of the Bethel Power Plant will include the construction of trunk pipelines (see drawing 89-00-00-01)for supplying heat to one Central Heat Exchange Station.From there one main trunk line will serve the airport and one will serve the City.The pipeline to the City will branch out to the North and East.Tie-ins for buildings or groups of buildings will be constructed by the City or by private enterprise.Buildings that include more than 3 recipients of heating service will be equipped with local heat exchange stations that supply heat and hot utility water to individual recipients. Heating of buildings is accomplished by circulating hot water that is heated in a condensing heat exchanger by steam,which is extracted from the power plant's steam turbines,and then piped to receivers around whole districts.Providing both heat and hot water is an extremely efficient use of fuel and demands co-ordination of energy supply with local physical planning.There are over 30,000 district heating systems in the USA.Hot water district 58 PRECISION EMERGY !SERVICES INC. heating meets the thermal energy needs of residential,commercial and industrial users from the same distribution line. The coal fired power plant if operating as power generator only has an efficiency of 29.6%; in a plant with thermal energy supply to the district heating system the efficiency goes up to 37.8%.In both cases the efficiency is calculated by dividing useful power (Donlin demand + Bethel demand+transmission loss +thermal energy supplied to DH)converted into thermal units (x 3.412 MM Btu/MWe)by the heat input. The Bethel district heating system will be based on using hot water instead of steam as the thermal energy carrier.Older district heating systems use steam for this purpose,however, there has been a general movement towards using hot water,which is recommended by the International Energy Agency -an international body with headquarters located in Europe that promotes energy efficiency by using district heating and heat pumps.The advantages of water heating over steam heating are several,the most important of which are: A.Safety:Water is used in district heating systems with temperatures in the range of 170 -194°F (77 -90°C),which is sufficiently below the water boiling temperature. A leak in the piping,whether outside or inside the heated space,will not result in rapid conversion of water to steam,which prevents the possibility of scalding or a steam explosion. B.At working pressures the volume of steam is 1 80 times larger than the volume of the same mass of water.This means that water requires smaller diameter piping and valves,as well as smaller size pumping and heat exchange equipment.Smaller diameter piping results in lower overall heat losses;hot water systems lose only a maximum of 10%of their energy before it is delivered to the desired location, whereas same duty steam -based systems lose as much as 30%of their energy to ambient air. C.Due to safety considerations,pressurized steam systems must be built according to the ASME Code;as a result,they are significantly more expensive in both capital and operating cost terms.Steam systems are also more expensive due to larger pipe sizing and the requirement for higher horsepower of drives for pumping equipment. The maintenance cost of steam-based systems is also significantly higher than that of water-based systems. System Specifics A.Pipes &Pumps Sizing pipe for the district heating system was determined by the estimated heat usage of the Bethel community.The heat capacity of the Bethel district heating system was based on the average heating oil usage,accounting for 20%growth over 10 years.We estimated a heat delivery rate of 169 MM Btu/hr average load in winter,with a maximum momentary winter load of 180 MM Btu/hr.The heat load 59 PES PRECISION ERERGY SERVICES INC. also accounts for utility hot water usage.Heating water delivery rate is based on the heat demand and the temperature difference between the delivery and return lines.At a AT of 65°F the required pipe size to avoid incurring excessive pumping costs while balancing capital costs is 16”pipe. For supplying pipe we have contacted several manufacturers that are familiar with district heating pipe.Prices for the pipe ranged from $25 per linear foot for 10-inch pipe to $83.00 per linear foot for 24-inch pipe. The pump size needed was also determined.The 16-inch pipe seems to be the most economic.The required horsepower at 169 MM Btu/hr is 500 HP and 600 HP for 230 MM Bhwhr.This gave us the general pump size and required operating energy. Heat Exchangers The District Heating system will include main heat exchangers where the district heating water is heated with heat supplied from the Power Plant.The size of the heat exchanger was determined by the average winter heat rate of 169 MM Btu/hr. However,the system will have sufficient capacity to allow for heating demands during extreme low temperatures.The heat exchanger is a condensing type to make use of the latent heat of vaporization. After the main exchange station at the Power Plant,there will be several local exchange stations to deliver heat to individual or groups of houses.These stations will have heat exchangers that transfer the heat to a lower pressure loop that delivers hot water below 15 psig.The reason for the low-pressure loop is to meet the 15 psig limit for ASME building codes.The size of the intermediate heat exchangers will be determined by the heat requirements of the surrounding structures. Using water directly from the District heating system should be avoided to prevent contamination of the water in the main trunk lines,and to extend the life of the system.Contaminated water increases maintenance costs and causes premature failure in the main distribution lines.Also,the pressure for delivery water needs to be kept low for safety reasons.Since the delivery pressure in the main lines will be above 70 psi,an intermediate loop will allow the pressure to be dropped to a reasonable level for safety. At the final delivery point,radiant heaters will be installed in individual buildings for heating.These heaters will run off the intermediate exchangers that are linked to the main trunk lines.In some cases,forced air heating units can be retrofitted for district heating. 60 PRECISION ENERGY SERVICES INC. Backup System For the modular Power Plants,we will include a stand-by package oil-fired boiler used to supply heat for district heating.This boiler will only be operated when the plant is down for maintenance. System Installation The scope of the feasibility study only covers the basics of main trunk piping,primary heat exchangers,and the average costs of hooking up a single household.A more thorough .investigation will be needed to obtain a better knowledge of the customer base and the engineering specifics of a complete district heating system. The overall capital equipment cost includes the main trunk lines,the delivery pumps,the primary heat exchangers and the hookups for households.At the time of construction there may be additional equipment costs. The install costs for a district heating system will be significant,as several miles of main trunk lines will have to be laid.With our current information,we estimate that laying the main trunk line,installing the central exchange station,and insulating pipe joints will take about 40,000 man-hours.Additional residence and hookup costs will depend on the size anddemandonthedistrictheatingsystem. The only needed regular maintenance for the district heating system will be on the primary feed pumps and heat exchangers at the Power Plant.Main trunk lines for district heating will have to be inspected yearly,as will intermediate heat exchangers. 61 PRECISION . ENERGY SERVICES INC. VII.CAPITAL COST ESTIMATE The following cost estimates for the project have been based on equipment quotations obtained from major equipment vendors and estimates.The estimates below include all cost components as:engineering,procurement,installation,allocated foundation and common system cost,construction management and all other related cost items.Cost of equipment and system installation was based primarily upon vendor estimates;some costs were estimated as a percentage of equipment cost,based on average industry data.The position Start-Up and Commissioning includes labor and consumable cost during the six months start up/run-in period. A.Land -Mounted Power Plant Fuel Receiving and Storage $33,267,400 Steam Plant $55,466,300 Generating System $23,509,200 Ash Handling &Disposal System $626,200 Environmental Systems &Controls $4,085,300 Rolling Stock $2,142,500 Plant Utilities &Services $13,590,600 Civil &Structural $5,253,000 LCMF Foundations and Civil Work $39,651,100 Project Services and Facilities $16,793,600 Start-Up and Commissioning $4,876,100 Total Systems $199,261,300 Contingency 10%$15,961,000 Total Plant $215,222,300 Cost per Megawatt @ 96.6 MW Gross Output $2,227,974 /MWe Total Plant cost excluding specific provisions $_172,554,000 for coal storage and permafrost protection Cost per Megawatt @ 96.6 MW Gross Output $1,786,300 /MWe Not Included In Total Plant: 1.District Heating System 2.Environmental Impact Assessment Study 3.Stand-by CTG (GTX100 /LM6000) Sub-Total Not Included in Plant $31,462,000 The following cost schedule is for the Power Barge Option.As above,the cost of the district 62 PRECISION ENERGY SERVICES INC. heating system,stand-by CTG,and Environmental Impact Study are listed separately. B.Barge -Mounted Power Plant Fuel Receiving and Storage $33,267,400 Steam Plant :.$47,156,800 Generating System $20,896,700 Ash Handling &Disposal System $626,200 Environmental Systems &Controls $3,003,000 Rolling Stock $2,142,500 Plant Utilities &Services $9,684,100 Civil &Structural $2,123,800 Barges (2)including cargo-shipping to Bethel $9,600,000 LCMF Foundations and Civil Work (coal storage &dock only)$31,355,300 Project Services and Facilities $13,812,700 Start-Up and Commissioning $3,876,100 Total Systems $177,544,600 Contingency 10%.$14,618,900 Total Plant $192,163,500 Cost per Megawatt @ 96.6 MW Gross Output $1,989,270 /MWe The cost difference between the land mounted and barge mounted power plants, $23,058,800,is the result of savings obtained from eliminating high-cost foundations of the steam and power generating plants and reducing the cost of manpower.During estimating the cost,the difference in productivity resulting from work in northern conditions,especially during the arctic fall and winter,was not taken into account.Some savings resulting from higher productivity of personnel assembling the power barges in milder climate (for instance Seattle)will most certainly result. C.Capital Cost Implications of the Application of Usibelli Coal The heating value of Usibelli coal is 7,800 Btu/Ib vs.12,284 Btu/lb of Fording coal.As a result (12,284 /7,800 =)1.57 times more Usibelli coal is needed.If we take also into the account the fact that there is a 5.5%difference in the boiler efficiency (89.1%versus 83.4%) due to higher moisture and oxygen content in the fuel,the proportion of Usibelli coal demand to that ofFording becomes in excess of 1.8 times.In fact,the power plant operation requires 412,300 tons of Fording coal or 687,500 tons of Usibelli coal.This fact dictates 80%physically larger (and more costly)coal storage facilities,boilers,ducts,emission control equipment and higher expenses on moving coal,air and combustion gases. The cost of the storage building only would be about $25,000,000 higher.The storage building cost increase includes material handling equipment inside the building. Other additionally required capital items would include: 63 PRECISION ENERGY SERVICES INC. i.Larger boiler due to larger flows and required larger heat transfer surface (lower quality coal burns at lower temperature with lower heat transfer coefficient); estimated cost increase:$5,800,000 il.Larger flue gas ducts outside boiler,passages and stacks $1,500,000 ili.Higher cost of conveying system : .$1,000,000 iv.NOx Control System $920,000 Vv.Coal bunkers with dust control $1,000,000 Total estimated Capital Cost increase,including coal storage cost $35,220,000 D.Possible Savings from Utilization of Healy Clean Coal Power Plant Only preliminary investigations were carried out;they consisted of contacting the persons responsible for the project on the part of AIDEA (Alaska Industrial Development and Export Authority)and the Federal Department of Energy,as well as reading progress reports of this project.The conclusions/recommendations presented herein are preliminary;an in-depth evaluation of the plant is required. The Healy Clean Coal Power Plant (HCCP)was designed to use 50%Usibelli run-of-the- mine coal and 50%waste coal.The applied technology is TRW's "entrained/slagging” combustion and B&W's spray drier absorber desulfurization system.The technology was designed for burning high ash and moisture content coal with a significant content of Sulfur. For the Bethel Coal-fired Power Project the TRW combustion technology is not suitable due to selecting a higher quality coal,which resulted in the following basic advantages: -Lowest cost fuel when the cost is expressed in $/million Btu -Flue gas desulfurization not required -Capability of applying the high efficiency pulverized coal combustion technology The B&W spray drier absorption system is not applicable either due to low sulfur content in the coal. Before actually inspecting the boiler it is impossible to state its suitability for the Bethel project;however,some assumptions can be made based on the coal characteristics.We are familiar with the characteristics of the Usibelli coal (see attachments);it is high ash and very high moisture ( 26%).In addition to this coal,50%of coal waste,which is usually very high in mineral matter content (rocks,silt and similar)and moisture,further deteriorates the value of the fuel.The boiler combusting such fuel should be designed for large flue gas volumes (moisture converts into water vapors at a rate of 130 cubic feet per pound of water; for comparison,combustion of one pound of Black Bear coal generates less than 4 of this amount).The boiler would have to be re-rated for the Bethel application.Of the steam plant,some of the boiler ancillary equipment may be utilized: -Combustion air blowers 64 PRECISION ENERGY SERVICES INC. -Feedwater pumps -Boiler controls and instrumentation -Induced draft fan -Filter baghouse -De-aerator -A significant portion of the coal delivery and feeding system -Portions of the ash handling system -depending on the design of the existing one. The turbine generator side of the HCCP can most likely be utilized in its entirety.During the design and procurement of the second steam-generator line,care must be applied to equipment selection so that the Bethel Plant will not need to warehouse double amounts of spare parts. The equipment would have to be delivered to a Southern Alaska port (Seward)where it would be put on a barge and shipped to a West Coast shipyard (Vancouver,BC,Anacortes, WA,or other)where the boiler and the rest of the equipment would be assembled on the power barge. The savings are estimated as follows: Expenses 1.Acquisition at no cost 2.Disassembly,shipping to Seward -$1,450,000 3.Preliminary mounting on barge and shipping to West Coast port -$730,000 Other installation and shipping cost items will be the same as for a new plant. Avoided equipment cost,estimate , $11,700,000 Estimated savings $9,520,000 Remark:This amount is an estimate of possible savings.It will be confirmed only after a thorough investigation of the Healy Plant. 65 PRECISION ENERGY SERVICES INC. IX.O&M ESTIMATE The following estimate was based in part on information obtained from a power plant in Gillette,WY where B&W PC boilers are working,PES'experience with a 100 MW CFB coal fired plant,and other industry sources.Adjustments were made to labor costs for the plant location.For the cost of coal see Section V.Fuel Selection,Procurement,and Logistics of Supply.The cost of ash disposal is assumed to be neutral due to proposed ash utilization option. Gross Power Produced:96.6 MW including 5 MW for transmission losses and 8.5 MW parasitic load (for plant internal usage).Net Power Produced fir sale:82.8 MW including 70 MW for the Donlin Mine and 12.8 MW for the City of Bethel and the Villages. Table 4 Operating Cost Items and Estimates Positions No.of Employees Yearly Cost Management | Plant Manager 1 120,000 Production Manager 1 72,800 Shift Hourly Personnel Shift Supervisor (4)4 210,413 Auxiliary Operator (4)4 190,861 Fuel Handler (4)4 151,174 Equipment Operator (4)4 148,595 Scheduled OT 4 shifts 8.8%use 10%115,672 Hourly personnel Administrative Assistant 1 42,390 Purchasing and Coal &Ash Administration 1 54,080 Fuel Barge Unloaders (6)Part-time 6 85,442 Journeyman Mechanic 1 51,189 Millwright Machinist 1 52,104 Apprentice Mechanic 1.36,150 Garage Mechanic 1 45,531 Journeyman Welder 1°47,840 Journeyman Electrician 1 48,776 I&C Technician (2)2 133,120 Total Direct payroll employees and cost 28 1,405,023 Burden Rate %32%449,607 Scheduled OT &Part Time 201,114 Non-Scheduled OT 55,579 Total Personnel Cost 2,111,324 66 PRECISION ENERGY SERVICES INC. Other Operating and Yearly Cost Fuel for rolling stock and standby utility boiler 118,000 Technical Services and Outside Support 300,000 Testing,outside Lab Analysis,Inside water Lab and testing supplies 25,000 Travel,Training and Safety .50,000 Contact services-Janitorial 24,000 Consumables office 5,000 Consumables plant including water treatment chemicals 200,000 Urea cost 1500 tons per year 150,000Ashdisposal(ash to be made into aggregate,concrete cost)-neutral 0 Replacement tools and equipment 15,000 Phone,mail and express service 12,000 Parts and materiel shipment to port,annual barge and misc.air 350,000 Water -no cost included in maintenance &station power 0 Spare parts &maintenance cost (Eqt 5%,Bldg 1%,El.10%,Rolling Stock 10%)+Reserve of $500,000 Annually 3,200,000 Waste removal &disposal (except ash)15,000 Property lease 0 Insurance fee (Fire,Accident)-300,000 Taxes 0 Miscellaneous contingency 5%238,200 Subtotal other operating cost 5,002,200 Total O&M ,$7,113,524 Power production per year at net 100%sales MWh99%availability 718,075 O&M cost per net MWh $/MWh 9.91 $/kWh 0.009 Estimated major additional operating cost resulting from the application of Usibellicoal: i.Due to dusting and the tendency to spontaneous heating and auto-ignition,storage of the Usibelli coal would require constant monitoring of hot spots and pile compacting,yearly $250,000 ii.Additional maintenance of materials handling equipment and rolling stock,including spare parts,yearly $280,000 Total additional operating cost . $530,000 67 IPE:PRECISION ENERGY SERVICES INC. POWER PLANT PERFORMANCE EFFICIENCYX. A.Factors Impacting Performance of the Steam Power Plant The power plant performance efficiency depends on several factors the most important of which are: 1.Boiler efficiency 2.Steam cycle 3.Steam turbine efficiency 4.Utilization of available thermal energy Boiler efficiency relates primarily to the process of conversion of the chemical energy contained in the fuel to thermal energy carried out of the boiler system in the superheated steam (heat absorbed).The process includes combustion and heat transfer from combustion gases to water/steam in the tubes. The losses inherent to this process are: -Losses with the flue gases -Losses due to evaporating and heating water in fuel and in combustion air -Losses due to moisture produced from combustion of hydrogen -Sensible heat loss with ash -Loss due to incomplete combustion -Loss due to radiation and convection to the outside of the boiler system Losses with the flue gases originate in the fact that the exhaust temperature of the 'flue gas must be usually above 280°F.This is primarily due to moisture and sulfuric acid precipitation,as well as extremely low efficiency of heat recovery at the temperature range below 300°F.The sulfur content normally determines the minimum exhaust temperature.For the Fording Black Bear coal,the H,SO,the precipitation temperature is 269°F;for the Usibelli coal the respective temperature is 276°F,which means that the exhaust temperature must be minimum 286°F.For the Bethel plant,the 6-degree difference in flue gas exhaust temperature is equivalent to 13 million Btu per hour larger loss -an equivalent of 10,000 lb of steam or 1500 kW generated.In general,these losses account for approximately 5 to 8%of heat input. Losses due to evaporating and heating water in fuel and in combustion air include heat dispensed to evaporate the water content and heat it up to the flue gas exhaust temperature.Heat of evaporation,which amounts to around 1000 Btu/Ib of water is not being recovered in boiler systems primarily due to reasons mentioned above.The higher the moisture content in the fuel the higher the loss.For example in case of the Bethel plant,the difference in thermal energy loss between the usage of the Black Bear coal and the Usibelli coal is 39.5 million Btuw/hr. 68 IPE:PRECISION ENERGY SERVICES INC. Losses due to moisture produced from combustion of hydrogen is of the same character as the loss due to evaporation;water produced in the reaction between hydrogen and oxygen is being evaporated and the heat used for this purpose is lost. The higher the proportion of hydrogen to carbon,the higher is this loss.Lower grade coals have high H2/C ratios. Sensible heat loss with ash is in the order of 0.3%of total heat input with coals containing around 10%ash.0.3%in the Bethel plant equals approximately 3 million Btuw/hr equals 3 tons of coal daily. Loss due to incomplete combustion is marginal when high-efficiency combustion process is utilized.The Bethel plant will utilize the pulverized coal technology that's one important characteristic is its low loss due to incomplete combustion in the order of 0.7%.This includes uncombusted solid fuel (char in the ash)and loss in the gaseous phase -incomplete conversion to CO instead of to CO2. Loss due to radiation and convection to the outside of the boiler system and with the boiler blow down could account for 1.5%to 3.0%.Good insulation of the boiler system reduces heat transfer to the surroundings.Good management and preparation of feedwater reduces blow down losses. Steam cycle The coal-fired power plant will operate in the simple Rankine cycle,the efficiency of which depends on the steam pressure and temperature.The Bethel plant will operate at 1100 psig and 1000°F.In this cycle,steam expands to 1.5 inch mercury (Hg)and is condensed for supply to the feedwater pumps.Partial expansion of steam in the steam turbine to 100 psig and its utilization for district heating (DH)improves the efficiency because the entire heat contained in the DH steam is utilized in a condensing heat exchanger as opposed to utilization of the steam energy only in the condensing turbine. Increasing the temperature and pressure beyond the above values would improve slightly the cycle efficiency;however,the associated materials cost and requirement for significantly high qualifications of operators make this method not feasible. Another method of increasing the efficiency of the steam cycle is to introduce a reheat step -see following section. Steam turbine generator efficiency accounts for the mechanical efficiency of the system,steam leaks through various seals and glands,as well as steam usage for air ejection.Modern steam turbine generator assemblies have efficiencies approaching 85 to 87%.The efficiency used in the system calculations is 85%. 69 IPE:PRECISION ENERGY SERVICES INC. Utilization of available thermal energy was partially mentioned in section 2,Steam Cycle -use of condensing heat exchangers for the district heating system.The latent heat of vaporization of water that has to be removed from steam in the condenser is the largest energy inefficiency -more than 60%of plant thermal input is dissipated (wasted)in the condenser and cooling tower. Other means of better utilization of the thermal energy are: -Partial preheat of combustion air and make up water by recovering heat from condenser circulating (cooling)water.This water removes heat given off by condensing steam.The return water temperature is in the range of 80°F.It is possible to pre-heat the combustion air by 10°F,which will save about 3 million Btu/hr and improve furnace performance particularly in cold winter. -Application of the Heat Pump technology to recovering low quality heat was evaluated,however,the conclusion reached was that this technology is still too expensive to provide a return on investment.A system with appropriate heat pumps would require the supply of 6 MW plus,which would allow recovering about 20 million Btwhr -basically a "zero balance”at an additional capital and operating cost. -Steam reheat -steam,after initial expansion in the turbine,is taken out and supplied to a separate section of the boiler,where it is reheated near the superheat temperature and directed back to the next lower-pressure section of the turbine.This is used in all large steam power plants. Introduction of steam reheating renders the capability to improve the heat rate by approximately 5%;that is increase the expansion efficiency by 4.5% to 89.5%.This improvement will reduce the amount of needed coal by near 16,000 tons or estimated $930,000 per year.We have requested both Babcock &Wilcox and Alstom (Combustion Engineering)to determine the implications of this improvement. 70 PRECISION ENMEROV SERVICES INC. B.Summary of Bethel Power Plant Performance Power demand net,Donlin Mine MW 70.00 Bethel &villages MW 9.30 transmission losses MW 5.00 parasitic power MW 8.50 Total power output MW 92.80 Heat rate without DH heat demand,simple cycle,Fording coal |Btu/kWh 11,547 Efficiency 29.6% Heat rate without DH heat demand,simple cycle,Usibelli coal |Btu/'kWh 12,145 Efficiency 28.1% Heat rate without DH heat demand,with reheat,Fording coal Btu/kkWh 10,998 Efficiency ..31.0% Heat rate without DH heat demand,with reheat,Usibelli coal Btv/kWh 11,647 Efficiency ,29.3% Heat rate with DH heat demand,simple cycle,Fording coal Btu/kWh 9,021 |Efficiency 37.8% Heat rate with DH heat demand,simple cycle,Usibelli coal Btu/kWh -9,551 Efficiency 35.7% Heat rate with DH heat demand,with reheat,Fording coal Btu/kWh 8,568 Efficiency 39.8% Heat rate with DH heat demand,with reheat,Usibelli coal Btu/kWh 9,176 Efficiency 37.2% ;,5 ;;Se etme te [aver |412300CoalconsumptionFordingcoalat89.5%steam turbine 396.400efficiency,first year with reheat , Coal savings ton/year 15,900 Coal consumption Fording coal at 85%steam turbine efficiency,ton/year 330,000year2™and beyond Coal consumption Fording coal at 89.5%steam turbine 317.300efficiency,year 2™beyond year with reheat , Coal savings ton/year 12,700 The coal consumption numbers account for reduced district heating demand in summer 71 DE PRECISION EXERGY SERVICES INC. XI.RELIABILITY AND AVAILABILITY STUDY A.Introduction The Feasibility Study of the Bethel Coal-fired Power Plant includes as an important section,Determination of the Plant's Predicted Availability and Reliability. Reliability is defined as the probability that an item (component,equipment,system or even an entire plant)will operate without failure for a stated period under specified conditions. Availability is defined as the fraction of the total time that a device or system is able to perform its required function.The availability can be expressed as a fraction (or percentage)as follows: MTTF MTTF+MTTR'Availability A = Where: MTTF =mean time to failure (mean time the items is working or available to do the work) MTTR =mean time to repair. MTTR +MTTF =total time Reliability is represented by:R =a Where: TT =total time in the period UPOT =unplanned outage time The reliability quotient includes planned outage (for instance,for planned maintenance or plant vacation shut down)in the time the system is ready to work. Only unplanned outages reduce the reliability factor. 72 PES PRECISION ENERBY SERVICES INC. Basis of High Availability and Reliability Plant operating availability and reliability depends on the following major areas:AMARWNEEngineering &Construction System/Equipment Redundancy Equipment and Manufacturers Maintainability and Operability Operating &Maintenance Practices Safety Engineering &Construction Desired plant availability and reliability starts at the drafting table and engagement of the design company of the project from the very beginning. This is done through contracting with a reputable engineering and construction company that has the characteristics outlined below.The desirable situation would be a construction company with a strong engineering division specializing in power generation projects. The characteristics of desirable engineering and construction contractors: .Extensive and recent experience on similar or comparable projects .Excellent track record and client references "High caliber staff of professional engineers and managers .Good Quality Assurance Program based on company's own experience ; .Use of good engineering and design practices including; constructability,operability,maintainability,and adherence to safety System /Equipment Design and Redundancy System/Equipment Design and Redundancy should provide for most efficient and reliable technology and layout,as well as for sufficient redundancy.One important ingredient of an efficient system is that it is based on equipment design that has been used extensively and successfully in similar applications with as much redundancy as practical. .Systems or equipment,which by their nature of service,require frequent maintenance or whose loss would cause unit or plant outage should be designed with inherent redundancy. .Use of system and equipment designs that have been applied and proven in similar applications exhibiting high availability andreliability. 73 IPE:PRECISION ERERGY SERVICES INC. 3.Equipment and Manufacturers The objective here is to procure reliable equipment and to shorten downtime with the availability of Service Representatives and proximity of service shops. .Procure equipment from leading and quality manufacturers that have excellent track record in the industry or similar applications .Proximity and responsiveness of manufacturer's Service Representatives when called to assist .Proximity of manufacturer's repair or overhaul shop 4.Maintainability and Operability The objective .of plant maintainability and operability is to minimize the complexity and time required for maintenance and to operate the plant with minimum number of operator surveillance.This is generally accomplished by the following: .Using equipment having features of low maintenance design .Equipment designed to be maintained in-place with minimum disassembly and minimum usage of temporary scaffolding/rigging _and handling tools. .Installation of permanent maintenance platforms where required .Accessibility and adequate space around equipment .Permanent cranes and hoists where practical .Environmental protection where necessary .Equipment and system design selections based on minimizing operator attention :Automatic startup and shutdown operation .Manual intervention features of automatic processes .Equipment capacity selection to provide maximum turndown,as may be required .Monitoring of systems and equipment to provide operators information for safety and indications for required maintenance .Remotely located control panels properly positioned for operator's visual and physical access in the control room .-Local control panels properly positioned for operator's visual and physical access .Adequate lighting,ventilation and acoustic softening on operational areas .Accessible valves,switches and other instruments 74 IPE: C. PRECISION ENERGY SERVICES INC. 5.Operating &Maintenance Practices Perhaps this is the most significant factor affecting the reliability and availability of a plant.The objective here is to minimize unscheduled shutdowns of the plant by well planned operating and maintenance procedures or practices.Some of the elements of good O&M practices are: 6.Safety Having operating staff with the right training and educational credentials Concise,easy to follow maintenance and operating procedures Diligent monitoring and trending the systems and equipment performance Preventive maintenance as recommended by equipment manufacturers Adequate spare parts inventory Membership in a spare engine pool Good housekeeping practices Prevention of accidents and resultant injuries contribute significantly to plant availability and reliability.Here are some key OSHA items to consider: Any hazardous materials should be stored and handled as required by applicable codes and standards Rotating equipment shall be provided with appropriate guards against accidental direct contact by operators and dropped tools that could ricochet to cause injuries or damage to sensitive equipment, instruments and devices. Surfaces that are warmer than 120°F that are accessible to operators during routine maintenance and inspection procedures should be insulated. Comfortable working environment Operators free of prohibited drugs and alcohol Adequate lighting and ventilation Good housekeeping practices Objectives of the Study Phase 1.Concept and Definition/Design and Development 1.Identify major contributors to risk and significant factors involved; 2.Provide input to the design process and to assess the adequacy of overall design; 3.Provide input to the assessment of the acceptability of proposed 75 IPE!PRECISION BRERGY SERVICES INC. _potentially hazardous facilities or activities; 4.Provide information to assist in developing procedures for normal and emergency conditions; 5.Evaluate risk with respect to regulatory and other requirements. Phase 2.Construction,Production,Operation and Maintenance 1.Monitor and evaluate experience for the purpose of comparing actual performance with relevant requirements; 2.Provide input to the optimization of normal and emergency procedures; 3.Update information on major contributors to risk and influencing factors; 4.Provide information on plant risk status for operational decision- making;, 5.Evaluate the effects of changes in organizational structure, operational practices and procedures,and plant and equipment. The project is at the first phase,Concept,Project Definition,and Development Decision;therefore,the study will concentrate on the predicted reliability and availability of the Power Plant from the standpoint of Project Concept,Input Design Specifications and Preliminary Selection of Equipment and Systems. Scope Definition Objectives: To define the system being analyzed; Describe the main concerns that originated the risk analysis; State assumptions and constrains governing the analysis; Identify the decisions that have to be made,criteria for these decisions,and the decision-makers; 1.Definition Of The System Summary Nuvista Light and Power is planning to construct and operate a new power plant in Western Alaska.The Plant will supply electric power to the Placer Dome's Donlin Mine,to the City of Bethel,and the neighboring villages and will supply steam and hot water to a district heating system for the City of Bethel.The subject of this Reliability Study is the Bethel Coal-Fired Power Plant option,in which PC-fired boilers with steam turbine generators would be applied for power and heat generation. Plant Description 76 RES PRECISION ENERGY SERVICES INC. For specifics of the Plant,please refer to Sections V and VI.The plant will be sited to the south west of the City of Bethel at an area sized at approximately 80 acres.The site is in the proximity of the Kuskokwim River.The site sub- surface conditions are silty ground on top of not fully stable Permafrost.The average temperature of the frozen ground is slightly below water freezing, around 30°F -31.5°F.Soil geotechnical conditions are generally known for preliminary design of foundations and support structures;however,more testing and evaluation is required to avoid errors in foundation design. Power Plant The Plant will include two independent,parallel generation lines,each consisting of a boiler system,steam turbine generator with condenser and cooling tower.The gross capacity of the Plant is 96.6 MWe +230 million Btu thermal. Fuel System Coal will be stored in a covered storage yard in two piles.Coal will be brought in during the Kuskokwim navigable period,between June 1 and September 30, by means of bulk barges with a capacity of approximately 10,000 ton each. During low water periods,the capacity of the barges will be reduced to 7,500 ton.The barges will be unloaded at the coal pier,from where it will be conveyed to the storage building and stacked by a stacker/reclaimer in two piles approximately 1200 feet long. In addition to coal,the plant will include one diesel fuel tank with a capacity of 1.5 million gallons.The tank will be replenished during the navigational season. There are two 10 million gallon tank farms located between the City of Bethel and the Power Plant operated by fuel shipping companies (Yukon Fuel Co. and Crowley Maritime Corp.)storing mostly diesel fuel. Other plant systems are described in Section VI.Description Of The Power Plant. The content of sulfur in fuel and resulting from this content of SO?in flue gas is such that the plant will perform below Environmental Standard requirements that will be imposed on the Plant,therefore,removal of SO2 from flue gas (FGD system)will not be required. Nitrogen oxides will be controlled by different means as described in Section D.Environmental Control System 77 }PRECISION ENERGY SERVICES INC. Plant Operation The Power Plant will be operated on a 24-hour,7 days/week basis with no planned shutdowns.The two generation lines can produce up to 55 MWe each, 10%above design output.Planned maintenance with shutdown will be conducted during months of reduced demand,July and August.The plant also includes one stand-by CTG unit,therefore,the plant can satisfy full demand even with forced outage of one process line. In a highly unlikely situation,when two steam generating lines are out of commission,the stand-by CTG will supply 42-46 MWe,a diesel fuel-fired stand-by boiler will provide all steam needs for heating.All of the generated electric power will be sent to the Donlin Mine and the City of Bethel will start up their stand-by diesel generator. E.Main Concerns 1.Power Supply Interruptions The Power Plant will produce electric power to be supplied to the City of Bethel,the Donlin Mine (82.8 MWe +5 MWe transmission loss)and villages,as well as thermal energy to be supplied to Bethel and the villages. Interruption of power and heat supply may be harmful to both the residents and to the mine operations.The related main concern is downstream of the process (supplying the customers). Ground Stability The plant will be built in the Kuskokwim delta where the ground is unstable permafrost with the top layer being siltous material.Localized damage to the permafrost caused by heating and unnecessary penetrations may result in extensive losses of foundation stability and permanent damage to the plant. With plant siting on barges,the exposure related to ground stability is increased in case of selecting the first option for power barge mooring (see Section H.Siting of the Power Plant).The other two mooring options reduce somewhat the impact of ground movements.The third option (barges moored in water-filled canal)introduces some low risk to plant stability due to sway caused by winds. 78 IPE:PRECISION ENERGY SERVICES INC. Fuel Supply As in any combustion power plant,fuel supply is critical for uninterrupted operation.This issue is described in full in Section V.Possible vulnerabilities are:: .Late start of fuel supply season due to navigating conditions on the Kuskokwim River .Shortage of fuel on the market due to international conditions. Inadequate fuel quality Late start of the navigational season due to weather conditions may result in disruptions of power generation near the end of May and into June.Shortage of fuel on the market is a real possibility in the liquid fuel market.The coal market is more stable and the availability of coal may be predicted many years in advance.The coal pile will include a compacted layer of coal, serving as a ground-insulating layer and as a coal reserve.The amount of coal in this layer is sufficient for over two months of operation. Inadequate fuel quality may result in increased fuel consumption (due to lower heating value),which in turn will result in faster depletion of the fuel stored in the tank farm.This,as with availability on the market,can be determined well ahead of time. Instrumentation and controls are extremely important to reliable operation of the system.The issue is flagged here to raise the awareness of the engineer during the design and system supplier selection process. Plant Operations Management and Control System (DCS) Even the smallest errors in process design including the distributed control system and in operating and maintenance procedures may result in extensive reduction of the system reliability and availability. Other Concerns Other concerns include factors whose impact on the plant reliability is presently perceived to be minimal yet in certain conditions could be detrimental to the availability.Included here are: .Make-up water supply and treatment;interruption of make-up water supply for a period longer than 48 hours will require shutting down the steam plant and,as a consequence,will eliminate stop power generation. 79 IPE:PRECISION ENEROY SERVICES INC. .Excessive snowfall may limit access to the equipment modules.The largest snow precipitation values are in the range of 3 to 5 feet over the winter period.Larger snowfalls,especially such that happen ina short time span may cause significant operating and maintenance problems. .Winds.The Bethel area has a very high proportion of strong winds. The Pressure Vessel design Code requires that structures be designed for winds up to 110 miles per hour. .Plant lighting and grounding *Fire prevention Estimation of Availability of Equipment and Systems;Addressing the Concerns In this study the main concem is the Reliability(R)and the Availability (A)of the entire power plant,not just single equipment items or even systems. 1.Power Supply Interruptions are the results of possible operating problems.As described above,the plant layout provides for various arrangement of equipment that result in high reliability.At normal operations and properly conducted planned maintenance and available stand-by CTG,the system will achieve a reliability factor approximating 100%.The main processing equipment -PC combustors with boilers and steam turbine generators, installed and commissioned properly,exhibit reliabilities in the range of 99.5%to 99.8% The plant has stand-by,redundant prime movers to eliminate any uncertainty of their operation. In light of this,the Availability of the prime movers,including generators, can be assumed as 100%.The Reliability of the prime moving system with redundant equipment,whose time from start to full capacity does not exceed two minutes due to "hot stand-by”,can also be assumed as 99.5%.The percentages are not for single equipments but for the entire prime power generation system.' Ground Stability In predicting the ground stability the most important step is selection of engineering and construction contractors with extensive and recent experience,excellent track record with high caliber staff of professional engineers and managers.Based on the predictions,the same team will design and build the foundations for the plant.It is proposed that the R and A factors for ground stability be assumed in the range of 99.5%. 80 PRECISION ENMERGY SERVICES INC. 3.Fuel Supply To prevent any process interruptions caused by fuel supply problems,some important measures will be undertaken,such as: .Enter into fuel supply agreements with a reputable company. .Acquire own fuel barges and a tug(s),which would be dedicated to bringing fuel to the plant. With all measures undertaken to assure fuel supply,the Reliability and Availability values are proposed to be 100%. 4.Instrumentation and Controls and Plant Operations Management and Control. The Reliability and Availability of the Plant due to these factors will be controlled by high quality engineering of the process and the control system, including where required sufficient redundancy,as well as procuring the equipment from the most reliable suppliers (ABB,Honeywell,Allan- Bradley,Emerson). It is proposed to assume the R and A factors as 100%... 5.Other factors Taking into account all auxiliary systems having impact on the Reliability and Availability of the plant and built in redundancy,it is proposed to assume the R and A factors as 100%.Some of the redundancies include: .Doubled water treatment and preparation system (100%redundancy) :All process equipment is housed in appropriate buildings. .Fire alarming and fighting systems as well as_stringent implementation of fire prevention means .Coal feeding system with built in redundancies (dual conveyors, bunkers capable of feeding to both process lines,bunker capacity sufficient for one day operation and other). G.Estimation of Plant Availability and Power Supply Reliability The plant consists of several in-line (series)and parallel systems. In-line:fuel supply >storage ->delivery to pulverizers >combustion inboilers>steam to steam turbines >power generation > substation (transformer and breakers)>supply to clients. Parallel:2 steam production and generation lines; 81 PRECISION ENERGY SERVICES INC. 1 stand-by CTG line Auxiliary systems. In line system reliability Fuel supply to coal storage 100% Fuel supply from storage to pulverizers 100% Process (boilers +generators +substation)99.5% Ground stability 99.5% All other factors combined 100% Total line reliability =100%x 100%x 99.5%x 99.5%x 100%=99.0% Forced Outage Rate (F.O.R.)=1-0.99 =0.01 Hours per year unavailable to serve load =0.01*8760=87.6 hrs/year The plant availability willbe reduced by planned maintenance of systems impactingtheoutputoftheentireplant.Since these systems include sufficient redundancy for maintenance work,it could be assumed that the Power Plant Availability =Power Plant Reliability =99.0% 82 ATTACHMENT 1 Bethel Barge Based Coat Plant (Time For P . |a4 i Q3 ai .y ==" Stand-by Gerreraton &ficam Sysiam : Plant Utiities and Services :oai777]CLR StructuralWork&Equipment ane asRatingStockmone:ai sia Conetuction Camp &Uttises incl weter supply 4 more!a on nena|Diavict Heating System a 77 Sinane;a |,|eR v ¥ ii] :] ia CG a [ :[ [J [a | es|es Co]a |CcCc_____d Die eating aye om J Quay > Project Conair ached 20 11 18Berge |Tekie11/19 Sem r Bethel Land Based Coal Plant S:(Time for Permitting Not included) JYear2.. Tyee 3 yreee4|a:Sen GO:me a)ma:nee a)a:ai {a Ss a -- -|Lai . ov ]: a J Waid J Pry :ow - 64 ., wa ; a :\ "4A : ani . "on ;:or :: "as ::ae .: ed i . se ° :b =- ; "7 7] :] :fu.j ] :C _] 'tL } :{A a [.).: .Ce] i {al [me ] :b v a] _t :,]. 'ee :f } :{;] ':ec :{] as ° ::Ce][J F . ry a) Project Cone eched 20 11 18 land Took [()Prepress CANNER |Sureary iene Tee Deane &Date 14/10 Spm aecencensonuneomenenven -SieSIONE ¢Project Summary Ey Exteel Missions @ Paget ATTACHMENT 2 EROSORre:ietad,|radiaiith a 138 kV TLine Route es AA."yi at | ¥ i 1636 @ 270)2 ° 21 ProposedDockLocation{\. (Parage:FT a 4 Proposed Coal Plant Location,80 Acre:"4.a ara ETO OE ,h/t PeTRANSFER |CONVEYOR+1 ad PPR OV Le PILE TO BDILER BUNKER G eyeRz yy NT BOLER &IT/G.a}2 ff Tt FACILITIES is ae PRECISION 0,BOX 1006 HYD om DRAWN.BY:TNO APPROVED 87:PES oar:APR 29,2003BES2c...ar BETHEL Ae or eatwa PLANT Feige 1"=2-MILES |Rot SWE 1=31,680 [nue BT20089-00-000-002-6THISDRAWING(S$THE PROPERTY OF PES.THE DESION AND IDEAS SHOWN 708 WO.mL ISSUED Pom Reve Wie.DeaLeS BREREONANECONTIDEayAnoSu4,ee CE oe eek Oeee TO GENERAL ARRANGEMENT BT20089 00-000-002 .PREV we cap + PRECISION ENERGY SERVICES INC, P.O.BOX 1004 HAYDEN LAKE.1D 83835 Phone (208)772-4487 Fax (206)762-1113E-mail energy @pes-world.com 'Web Site;http:www pes-world.comeeBETHELALASKACOGENERATIONPLANT400'x 100°BARGE CONCEPT SITE PLAN1/12/03)WAS 370.984"BARGE,GRAPHIG SCALE WAS.30"To |FeFORREVIEWANDCOMMENTONLY712/03]HO |Fleese DPIBrRBpare|wr |com facut+=000 Tut SCALE:tot FLL:_@1z0089#90010058Saox[28 80 Cw}wart Ls99-000-003 tor ey,$A5 I»fos an innth#ayTeuE| Sinead 400 -F « MAJOR EQUIPMENT LIST ITEM ]QTY DESCRIPTION WEIGHT |TEM |QTY DESCRIPTION WEIGHT wt 44007 |DOCK FACRITIES -BULICHEADS CONCARTE 4 STEEL tt 2 PULVERIZER HOT AMM COAL TRANSPORT FAN 26 TOMS a7 1 DOCK PACK ITS -BARGE UM.OACIIG SYSTEM 4m TONS 2 z DOLER Me.1B 2 STACK 196 TONS:#2 a CONVETOR -an.$TRANSFER TO STORAGE SUPPORTS OF OC a a 2 s TVA 190 TOMS ez]3S _]CONVEYOR two 2 TRANEDEA TO STOrMe KEPORTS oF OCe er EI 1 __|2 MOORNae Laan000 TURE vaio LAY *s 2 COAL STORADS «PLE,120 WIDE x 1,40 LONG (92.578 TONS BAC,Ci FE +GE.lae090 TURES STACK mona |7g ae 1 (RECLAMAER -BUCKET WHEEL STACKEMRECLAWER 7 TOMS cad 1 ASH ETORAGE $2.0 @ TONS ar ”Oca sar Ea 2 |coona tower a0 1s wt 2]CONVEYOR-STORAGE TO BUNKER TRANSFERS wom EI 1__[STAND-BY BORERANDBTACK PRECISION *?CONVEYOR -Mo.)GUNKER INFEED TRANSFER oes FL EY 1 No.2 ONESEL FUEL STORAGE TANK TOOK U8.GAL.990 TONS ENERGY *CONVEYOR -o.2 BUNKER INFEED TRANSFER,908 LF EY +'(COOLING POND PUM HOUSE SERVICES INC. A (COAL BUNKER -1007 5 07 TALL 980 TONS n 1 TANK -RAW WATER BTORAGE 90 DUA.«47 TALL 360 TONS P.O.BOX 1004 HAYDEN LAKE, ee CONVEYOR -BUNKER GUTFEED 9 LONG wore 2 1_|DEMMURAL CED WATER STORAGE 7 OW.a 36 TALL 100 TOM Phone (208)772-4487 Fax (208)782-1513 3 3_|COWEYOR.ULVERITERBEEED1901LONG WORF 3 3 _|PROCESS PUMPING BTATION-FEED WATER CIRCLLATION..TOME .seas ee um Tne Tr E-makt energy @pee-world.com Web Site:hiip:Ziwenw.pas world com "VERZER TONS »t BOILER BUILDING 2507 SPAN 2 200°L x 120°H 2.120 TONS ies ner eee ae €[ose eT!wma [rem]BETHEL ALASKA COGENERATION PLANT *2 |AnreaTer toro |=1 _|WATER TREATHENTICHENOCALSBUILDING80SPANEZaLat 100 Tore 0]GENERAL CONCEPT REVIBON Srizsms |Oo |fe GENERAL ARRANGEMENT-PLAN w a AGHOUSE Tone Ea 1 STAND-BY BOER BURDING TOTAL WT.=A_|FOR REVIEW AND COMMENTONLY orases |Two |m®ooner to APPROEDOY AB CATE AY2Foulcy2_|FORCE ONATT FAN MTom EJ "0.REVIBON pare |sy |cx ic Vie sr ROTA et TRE,etzcseescooD'i s z IHDUCE DRAFT FAM ato =®OENOTES TIES NOT BOveW ON THES SHEET MOL MOT 08 eo DRANG NO sar D x 7_|OvERFmEARFAS wins |«REFER TOPES DW.Ne.BYascne-1 400-081 BAT..|8T20089 99-001-002 oF Rev Proposed Barge Power Plant Location 2 Northpoint Drive,Suite 900 EN MA'CRI E WLEY Houston,Texas 77060 : A Subsidiary of Crowley Maritime Corporation www.crowley.com Sl TES uEEAE SUR EEE EAGGAEREEEERREROR EGE A A 4 ..:i k it a .R a , L Po TS:Se'99°6”x 20°)4007,x«: Specifications Summer Load Line Keel Draft 14'2.75" Summer Load Line Displacement 16,416 ST Summer Load Line Deadweight 12,035 ST Lightship Draft 405° Lightship Displacement 3,380 ST Lightship LCG 203.4 ft FWD of Transom °Lightship VCG 10.5 ft above BL Draft Mark Locations Fwd Marks 320 ft Fwd of Transom Aft Marks 50 ft Fwd of Transom Longitudinal Strength Data Maximum Allowable Still Water Bending Moments In Port 122,850 LT-ft AtSea 57,950 LT-f Maximum Allowable Stil Water Shear Force In Port 4,083 LT AtSea 1,897 LT TPI 104 102 100 |HalsluttuligsATAaeLLluluihitt i )7 >2 LOADING SCHEDtVc «6st Ort mn omy"4 a: ':feu Tov orscur non wear4--7" YS 1.COCK FALE =GUSCK CECMOK &FTE.é Pk ao on GOK FRAMES 1K &TERS ONC,Banc ares Oran |Gab EneECOREE-Ment Wei WW CRANE ROVONTS OF OC4 "a <=BeeOGs -tal WOU MS MEK BFHUTS SF OLS Lm|ty Con See -MLL 1B Od LOOT Low OLETe tod ia 4 °wd MT GR.TAPPER4C=eat-ame =wn |4 Be |coer -al Sowa STS OC!-E7 :meer»Fe OO ROO SOS Td van eer 2 tk -K Le Commer=al GOMER SUES WOEE ee J (eceeeen wen ann a Gre .W beet oo mL ot -''PER =COR GYR Ws nt war ;LECTION,BRITON VIED t .H UNCER =PAM OPE ITS (OS wee Dy A r RAMEE -SF MOO Oe se rere awe &'WOME 457 WOGR Ite,Cxad{'os Oe,Asn oon zres|i 'a 'woot&t 'tot et CIBe'H Ae OaeT tee we 3 ''t Coren tm = .t ol - .|serobocr 4 \ORANG el Cha,NNEC Fat 2iif,'moe ae i CUE 1 os *ae !1 r t 'Ree -Sire Wedd,te OS -ae vi ''64 wack,te Ute Rent anfos|&P H ''C8 Ure wert OK awe as wae t an Wee BS awe g bites deeeiee bebe a J or eee |H H 1 re oe 2 1 4 i 1 ''''i 1 37]-vwe ''t 'a!1 ''''Sao AD we pnt''''' -'''iH 't Bs OO AR Oe tow Dow BE OA rs ;H H ''id sample odo 7 'a H 'CoauntvedRawatry1atrr]t '1 29s a eZ ee t 'i]1)i 'a.1 Seman HE WE twat wT Be tL CK) '§t sad OKIE Saeed TOR -FED MR,cea re_,Sm:,'H Cn Gnas I wl we Lik wa'1 rT r]Spd eked lonteteny |Rene RR He wes Es 1.108 fonryH{'*]WAR DUTT/OOCAL BROS WY wes eT Ls We os 'tot 'Cokmntnfowevipeee}1 ''' 1 '{L ai]''LJ i]4 te a es ee '4 ">++++F (ite ' bwewwe senecnennee i<s2teSEB PPekekekrtonoyhe.Hy iwawnfa..'\e@ PS v @, -See ene 5 ye eee Ee P 2 eee oo if -fiIxa\if wais ¢OSSEPITIONSY)wed awedonnd ialee BUSRORJt SS oy ¢ q = '{''€S 6 't '4 SS a"LH bob bd . et ee ee ;i S r bescod whe ry PROJECT KEY PLAN we PRECISION a ENERGY En SERVICES INC,x.?.0.00K 14 HAYDEN L@.DD EtetePreneGnepTe-4emt Pan GMATPEHA113 ee Omete>'Wan Siac NiPren pee-ee.eee GETHEL ALASKA COGENERATION PLANTSTEAMPLANT9"ee &NT sce!'6 [RD POR ANS BO CMe WOT =£5)rent)OF A uw @?,towWieli{}it Cel om |w i Oe ixue ie AM CAE toh OS Ldees6eGOEOe2oeeeeeAreeaa"7 oanmentemeSeemROCCSMalema||STING 091-000-001 aweeeOES te Bee ey ByHOTEL AG HIEF. .sa"PeeabSENEATPRONEPRET:HieiSeepeOIEguageeaenaentLERTLN BP RINR I LTE LES PROJECT KEY PLAN 01-000-0016T20080 Ea Comet OOF can onneatan neh Sthe eth caeeeeeen ee ceenceeeoe eenwee ee .| mmsfoae --a we ----+- Ey SAREEEOEMego ece ag etal 'A \C | a. Id S 5 ¥ B) ACTRa= : | a| | ' i fi ™ : eine : ! Pees Po H ; 1 aa : ' a! 4f !ifeee1 i <:awt(j Cad1 bdmest: HE ' PR ESdd '" intiat - \_ Be ALtt1+:L: SAPRFas PEM Teeth go RaeSeeteenins mersVeecae ia Seieee aes )|>(a ES FZ -_-'LiSy U s..te.ene[if+@)4---THe)_/ZEPe-t-----nndneceeaowoornaeecreteaeenoecencewemeneomart-¥TeemeenceementsSpEREfeETEohISDEDTDENaESHENODSEENGsERINioEDGROUNDteAORNamomENERGY.fe)SERVICES INC.i 02.80K toe WAYOEN LG ©mensi7PrevenCRTE4067=Pax CEMETED-1113 * T Smet Wen Sr nipiewa.peeve ane t BETHEL ALASKA COGENERATION PLANT Z i pnw rtid3[mn POUKEEBOCORE oa]a =5 Sor . =C-=|#lon ve am wad tel AD ¥7 . . : ."3 =PO Os pe a8 4,a ae ees A fz S Byohne wae ATTACHMENT 3 COAL SUPPLIERS &SPECIFICATIONS The following is a list of coal suppliers,coal specifications,and cost per short ton FOB port of departure. Quinsam Coal Corporation PO Box 5000 Campbell River (Vancouver Island) B.C.Canada Type Thermal coal Heating Valve Gross (dry)12,240 Bty/Ib Gross (air dry)11,880 Btu/Ib Gross asrec'd 11,160 Btw/Ib Net as rec'd 10,620 Btuw/Ib Proximate Analysis Total moisture *9.0% Ash content (air dried)13.5% Fixed carbon (air dried)47.0% Volatile matter (air dried)36.5% Ultimate Analysis Carbon 70.1% Sulphur 0.8% Ash content 13.5% Product Size 100%-50 mm x 0 mm30%-2.0mmx0mm Cost FOB Texada Island F:\projectsiak\be20089\coal suppliers &specifications 12/3102 2.Fording Coal Limited2059™Ave.S.E. Calgary,Alberta Canada A Type -Thermal Coal (black bear) Heating Valve Gross (dry basis)13,352 Btu/Ib Proximate Analysis Total moisture (as received)8.0% Ash content (air dry)11.9-12.4% Fixed carbon 64-66% Volatile matter (air dry)22-24% Ultimate Analysis (dry base) Carbon 77.22% Sulphur 0.32% Ash content 11.92% Product Size 100%-50mmx0mm B Type -Thermal Coal (Coal Mountain) Heating Value Gross (Net as received)11,130 Btw/b Proximate Analysis Total Moisture (as received)8.5% Ash content (as received)*15% Fixed carbon (as received)54-56% Volatile matter -medium Ultimate Analysis basis Carbon 72.1% Sulphur 0.8% Ash content 16.5% F:\projects\ak\bc20089\coal suppliers &specifications 1231402 Product Size 100%-50 mmx 0 mm Cost FOB Westshore Terminals at Roberts Bank (Vancouver BC) 3.Luscar Ltd. 1600 Oxford Tower 10235 101 St. Edmonton,Alberta Canada Type -Thermal Coal (Obed Mountain Mine) Heating Value Gross as received 10,000 Btu/Tb Proximate Analysis (as received basis) Total moisture 13% Ash content 12.4% Fixed carbon 41.6% Volatile matter 33% Ultimate Matter Carbon 76.8% Sulphur 0.67% Ash content 12.4% Product Size 5%-50 mm x 25 mm 35%-25 mm x 5mm 30%-5 mmx 3mm 20%-2mmx.5mm 6%-.5mmx .2mm 4%-2mmx0mm Cost FOB Westshore Terminal at Roberts Bank (Vancouver B.C.). F:\projects\akibc20089\coal suppliers &specifications 123142 4.Usibelli Coal Mine Inc. PO Box 1000 Healy,AK USA Type -Sub-bituminous Heating Value Gross (as received) Gross (dry basis) Proximate Analysis (as received) Total moisture Ash content Fixed carbon Volatile matter Ultimate Analysis Carbon Sulphur Ash content uct Size Coal crushed to 2”x 0” 7,800 Btu/Tb 10,500 to 10,800 Btu/Ib 26% 9% 29% 36% 69.5% 0.3% 9% Screening circuit can reduce minus 4”to less than 10%with top size to 6” Cost FOB Port Seward Coal Terminal Alaska 5.Kennecott Energy Company P.O.Box 3009 Gillette,WY USA Type -Sub-Bituminous Thermal Coal Spring Creek Heating Value Gross (as received) Gross (dry basis) FAprojects\ak\bc20089\coal suppliers &specifications1231/02 9350 Btu/Ib 12447 Bty/Tb Proximate Analysis (as received) Total Moisture 24.80% Ash Content 3.90% Fixed Carbon 38.54% Volatile Matter 32.43% Ultimate Analysis Carbon 53.88% Sulfur 0.33% Ash Content 3.90% Product Size Coal Crushed to 3-inch minus _Cost FOB Roberts Bank Terminal $27/Short Ton 6.Kennecott Energy Company P.O.Box 3009 Gillette,WY USA Type -Sub-Bituminous Thermal Coal =Colowyo Heating Value Gross (as received)10450 Btw/Ib Gross (dry basis)12551 Btu/Ib Proximate Analysis (as received) Total Moisture 16.74% Ash Content 5.66% Fixed Carbon 45.02% Volatile Matter 32.57% Ultimate Analysis Carbon 60.78% 'Sulfur 0.38% Ash Content 5.66% Product Size Coal Crushed to 3-inch minus Cost FOB Roberts Bank Terminal F\projects\ak\be20089\coal suppliers &specifications 1231/02 ATTACHMENT 4 Pulverized Coal vs.Fluidized Bed Technology for Coal Combustion The pulverized coal (PC)furnace burns finely powdered coal and air in a gaseous torch.This is accomplished through pulverizing the coal by crushing,impact and attrition to a size finer than face powder (diameter <0.3 mm).Primary air dries and transports the coal through a burner into the furnace.The main attraction of pulverized-coal firing-is its capability of burning a solid fuel like a gas.Fires are easily lighted and controlled. In a fluidized-bed combustor (FBC),the velocity of combustion gas (air)entering the bottom of the fumace is maintained such that the coal and limestone/dolomite particles are suspended (resembling a boiling liquid).The boiler tubes can be immersed in the fluidized bed.Fluidized- bed combustion systems are categorized as pressurized vs.atmospheric bed systems,and circulating vs.stationary bed systems.Pressurized systems are still in the development phase. The combustion process occurs in the gaseous phase;oxygen gas reacts with molecules of carbon,hydrogen or sulfur or compounds thereof.Burning of a solid (coal)or liquid fuel occurs on the surface of the fuel particle.The objective of the PC technology is to supply to the flame coal particles that are so small that their behavior is close to that of gaseous molecules.In the FBC,the sand is brought to the fluidized state;it grinds (pulverizes)away from the surfaces of the solid fuel particle a thin layer of coal particles that start burning in the bed,and expose new surfaces to the flame. The advantages of a pulverized coal furnace include its ability to burn all ranks of coal from anthracitic to lignitic,and it permits combination firing (i.e.,can use coal,oil and gas in same burner).A change of coal upsets the operation of a pulverized-coal plant to a much smaller degree than it does a stoker-fired plant or even a fluidized bed furnace.Pulverized coal furnacescanbereadilyadaptedtoburnotherfuelsthatburnlikegas,and in that respect are capable of burning almost any fuel which is used to making steam.Because the process imitates combustion of gaseous fuels,the PC furnace is capable of very high volumetric heat release in it. The advantages of the PC technology are specifically prominent for burning high quality solid fuels such as high bituminous coal,anthracite and coke. The disadvantages of the pulverized coal furnace are that the coal pulverizer has a significant power demand of its own and requires a significant amount of maintenance;flyash erosion and pollution complicate unit operation and increase exhaust system maintenance requirements. Pulverized coal systems have higher initial cost than FBC.Also important is the fact that coals with higher moisture content are more difficult to pulverize. Due to high combustion temperatures,the PC furnace is predisposed to generating significant amounts of both fuel and thermal NOx.Therefore,fuels with very low nitrogen content are favored for this technology;also,NOx control in SCR or SNCR is practically a necessity.Again the capability of burning the fuel in quasi-gaseous state enables implementation of the NOx reduction technique,developed in the recent years for gas and oil burners,such as staged combustion with overfire air injection. The FBC technology is suited best for burning "difficult”fuels:low-grade waste coal,solid waste,wood waste,sludge and other such fuels.The fuel is encompassed by the sand of the fluidized bed,which brings practically instantaneously the particle to the combustion temperature and burns on the entire surface of it.Because of this the FBC furnace is capable of very high volumetric heat release in the furnace,approaching that of a gas or oil burner. The primary advantage of the FBC technology is its capability to generate less pollutant than in a PC furnace,that is: -Combustion in the FBC furnace is carried out at temperatures in the range of 1500 to 2000°F.The lower combustion temperatures bring about reduction in NOx production.At certain conditions,the plant may not require an NOx reduction system The low combustion temperature is at the same time a detriment responsible for generating N2O,which is an atmospheric ozone depleting gas.Higher temperature combustion does not produce N2O at considerable amounts. -The capability to control sulfur dioxide (SO2)pollutant in the process of its generation. Limestone (CaCQ3)and dolomite (Ca.Mg.(CO3)2)added to the fluidized bed together with the fuel,are reduced in the furnace to CaO and MgO (+COz),which react with SO2 to form calcium and magnesium sulfides,respectively,solids,which are removed from the stream by normal means (ESP or baghouse).This means the plant can easily use high sulfur coal without post-combustion FGD (flue gas desulfurization)outside the furnace. The in-bed control of SO2 requires between 1.8 (Bubbling FB)and 2.5 Ca (or Ca +Mg) to S ratio of supply to the furnace. Disadvantages of fluidized-bed systems include 1)erosion of tubes by the particles rubbing the tubes,2)requires more fan power to suspend the particles,and 3)high maintenance cost of tubes,cyclone and bed recirculation system. Conclusions relating to the Bethel Power Plant All things considered,the only significant difference between the two technologies for the Bethel application is the turn down rate.As a quasi-gas burner,the PC technology allows turn down rates in the order -75%to +25%from the 100%design capacity (25 to 125%of design).The power plant can reduce its output significantly without loosing significantly on the efficiency. _With an FBC furnace,the turn down rate is -30%to +20%;at the lower range of the tum down there is a hazard of loosing fluidization. The circulating fluidized bed (CFB)combustion technology was evaluated in an earlier stage of work (2000)on the development of the Donlin Mine power supply.The PC technology has more operating history than the CFB -50 years versus less than 20,of which only the last 8 -10 years have seen construction of CFB boilers with outputs in excess of 40 MWe equivalent.With the latest advances in pulverizing equipment both the cost of operating (power consumption)and maintenance (wear and breakage of parts)have been reduced significantly. As shown in the analysis of coal in the Feasibility Study,the most economical fuel is also the highest rank fuel,which is best suitable for the PC technology.The fact,that the sulfur content of the recommended coals (Fording Black Bear or Luscar Coal Valley)is sufficiently low so that an FGD system is not required,eliminates one reason for using the CFB technology,namely SO control in the furnace.Also recent advances in the PC technology indicate that it is possible, when needed,to control SO2 emissions by injecting,together with the pulverized coal, pulverized limestone and obtain control results similar to those offered by the CFB. Due to higher operating temperatures in the PC,heat transfer from combustion gases to the water and steam in the boiler including the superheater is more vigorous that in the CFB furnace. However,also due to the temperature difference,the passages in the PC fired boiler must be larger than those in the CFB fired boiler. To enable usage of the Usibelli coal in the PC furnace,it would have to be dried to around 12%. The preliminary design for the Feasibility Study was conducted in such a way that the heat supplied in the fuel is utilized to the maximum;as a result,the flue gas exit temperature is only 10 to 15°F above the dew point of SO;(approximately 272°F).Drying at the Bethel site would require larger fuel input.More investigation is required to determine the possibility of drying the coal utilizing flue gas at the Healy Power Plant. ATTACHMENT 5 ae Cee wee? dwidees ae ® , es :Operat )nts.WorlPigaeeameerucseitsenatetne :eBSadl"SofeoreaheTean Wh:-has b bs As y Sotey,Pape high,1,oa S feeek:iG a re "aRel ers Fay ene Rote31 iPThe B&W Advantage- Major international player - 250,000 megawatts of experience in 85 countries ®Worldwide marufacturing facilities and joint venture licensees 8.Globalsalesand agents coverage 8 Ability to structure projects to*attract export credit agency support ®Total-scopeservicecapabilities-from parts supply to turnkeyconstruction ; .Engineering excellence -innovative,cost-effective soludons «State-of-the-art research and development facilities B&W is a Developer BaW Power Systems has a proventrackrecordofdevelopingsuccessfulprojects,including the setup and management of efficient fuel sourcing |and mining operations.Backed by our extensive experience and flexibility,we fulfill diverse project requirements - from development and partnering to EPC contracting and plant operations. BW is a Partner,Owner and Asset Manager Our partnering philosophy is simple:to maximize project returns by selecting partners with congruent goals and structuring the project to meet those goals.We believe in maintaining a long-term ownership presence in our projects,as opposed to selling our ownership position when construction is complete. of a project and encourages a commitment to: ®Continuous and innovative improvemerts ™Project excellence and quality through long-term ownership and management B&W is.a Builder mamufacturing facilities,make us averycost-effectiveglobalpartner, «Talored project solutions _ «High-quality,on-schedule construction =Dedicated project managemert B&W is an Operator BaW Power Systems has extensive operating experience burning difficult fuels,while simultaneously achieving profitability,high plant availability and reliability,and meeting strict compliance with safety and environmental goals.This is accomplished through: =Sound management practices ®A trained and experienced staff ®Setting high safety and environmental standards and practices ®Integrated systems =Ongoing research and development In addition to this 1,600-megawatt pulverized coal-and oil-fired facility in indonesia,B&W is involved with projects in:Australia;the Czech Republic;Egypt; India;Mexico;the Middle East;North, South and Central America;Pakistan; the People's Republic of China;Poland;Russia;the United Kingdom;and Taiwan. act OSTHEL shad sa Sy SSOR THis)Sea.¥!alee we =: PcaSN bam a sieg ci vies QiaeDionNEBusPERASAN tuvtg a Project Development Expertise-The Key to Successful Projects In bringing our capabilitiestopowerProjectsworldwide,Babcock &Wilcoxfulfilsavitalrole:that of an experi-enced developer.Our goal is to createfinanceable,technically feasible andeconomicallyviableprojects. BaW Power Systems has the resourcesandexpertisetoassureaproject'ssuccess,from conception through itsentireoperatinglife.We can tailorsolutionstospecificprojectneedsandobjectivesbyofferingtheseflexible project approaches: =Build,own,operate ©Partnering a Engineer,procure,construct =Refurbishment =Repowering Multi-Skilled Development Team The BW Power Systems team consists team is experiencedincomplyingwithinternationalenvironmentalrequirements,working with labor andO&M practices uniqueto a country,and is backed by our extensive legalandfinancingresources. Experienced ProjectDevelopmentOrganization BaW''s experienced project development organization has the necessary insightandknowledgetorecognizethemanydevelopmentalandoperationalfactors that can impact operating revenues. Identifying potential problems andtisksearlyinthedevelopmentprocess minimizes costly changes later in theproject,and allows for a timely andefficientdevelopmentschedule. To further ensure success,BaW addresses the following development_Issues at the onset of a project:®Technical feasibility,screening and due diligence ®Structureandnegotiationofalloperativeagreements-power,fuel,EPC,O&M =tits ®Ownership structure =In-depthproformafinancial projections -7 ®Cost estimatesforconstructionandO&M ®Project financing ®Fuel procurement,mining_and management =Regulatoryandinternationalissues =Environmental permitting and compliance BeW developed and operates the cogeneration facility (left)inEbensburg,Pennsyivania,and main-tains a 50 percent ownership position.BsW also developed and operates theReviocreclamationoperation(above), which provides a reliable supply oflow-cost,quality fuel to the Ebensburg cogeneration facility while improving the environment. Owriership Through Partnering Spells Success Babcock&Wilcox knows that-intoday's world of power generation, it's difficult to go it alone. BaW Power Systems strives tostructurerelationshipsbased oncommonalityofinterests.We constantlyworktowardimprovingtheproject'sperformanceinthemostcost-effectivemanner.Additionally,Power Systemscandesignafinancialpackageandownershipstructuretailoredtoeachindividualproject. BaW's Partnering Benefits As a partner,B&W brings many benefits to a project: ®Financial and project accounting expertise =Asset management ®Plant operating and maintenance management experience ®Global procurement organization ®International manufacturing facilities allowing more financing alternatives Revitalizing problem projects is possible with BeW''s engineeringexpertiseandextensiveplantoper- ating experience with difficult fuels. Bankable Partnerships With single-point responsibility, BaW can provide lenders with the added comfort of conducting seamless transactions with a financially strong company.BaW also isable to draw upon the extensive technical and financial resources of its parent company,McDermott International,Inc. cePee BaW's Approach BaW's partnership approach offers: «Benefits from BaW's OEM expertise ©A good citizen commitment ail As a partner and operator of this facility in West Enfield,Maine,BaiW employed its circulating fluidized-bed technology to efficiently burn biomass for power production. S Pp Ei ees. Building Complete Power Plants Worldwide EPC Capabilities As a leading designer,manufactureranderectorofsteamgeneratingequip-ment and Babcock&Wilcoxtsfamiliarwithalltheequipmentandcomponentsrequiredtobuild,upgrade or repower a facility.Asalong-term owner and operator,BaWhasavestedinterestinensuringthesuccessfulexecutionoftheEPCcontract. As a worldwide EPC contractor,BaW is experienced in preparing financeable project packages based on price, performance and delivery.Our projects are enhanced further by our various support services: ®Project management =Project scope definition,planning and scheduling =Conceptual design ®Detailed engineering ®Global procurement and ®Permitting and environmeryal compliance "Construction management ®Start-up,performance testingandcommissioning International Operations Today's power generation products and projects require advanced engineering and manufacturing capabilities,as well as proven international experience and continuous research programs. To meet these demands,BaW has: =11 manufacturing facilities located in seven countries - all ASME code approved =Two dedicated research and development facilities =International licensees ®Joint venture products exported worldwide =Stringent quality assurance control BaW's engineering expertise,global procurement resources,constructioncapabilitiesandfinancialknow-how provide the foundation needed to successfully design and build power plarits woridwide. BeW is a leading single-source supplier of field construction,main- tenance services and construction management. BeW's manufacturing and distribution facilities,located in seven countries, support our global procurement resources.Pictured here is BaW's manufacturing plant in Beijing,People's Republic of China. 5S Pee a f ani Sal : . sy vie : faperedesjte Soreness oor ceane EL isgaeeeetESTStewarts pee "3eehymee We ona . 4 q¥ win eenen asl cs. ae i tae? SEATS BSSobterete ityaa : ; ites,iiAg Bees aS2 ume Operations Safety,Environmental Compliance,igh Availability and Profitability outstanding safety and environmentalcompliancerecords.We have extensive operating experience with power plants utilizing difficult fuels,and the capability to revitalize problem projects.This,coupled with BaW's reputation for quality performance and engineering excellence,uniquelyqualifiesusforoperatinganyplant, including distressed or at-risk ventures. Our operating procedures include: =Extensive technical,financial andenvironmentalauditing ®A self-directed managementapproachwithkeysupportfrom the home office StdietCor whe SS aeenehee = ra=* BsW''s O&M staff works together with the owner to produce positive and profitable results throughreliableperformance,high availability,and continuous plant and process improvements. Staffing agd Training Expertise Maintenance.Management ;;..h A LJ e 2 Pl J BaW knows that people are the founda:”ues t EfficiencytionofanyexceptionalO&M program.BaW designs custom maintenanceTherefore,we offer an experienced care :programs to maximize availabilitygroupofoperatingpersonnelwhoarewhileoptimizingequipmentlife.cross trained at all staffing levels.To further enhance a maintenance services also are provided so the staffis computer-controlled parts inventoryfullycapableofoperatingaplantwhenitandprocurementprogramtoreduceachievescommercialoperation.oatSaletan&'JePaPrior to start-up,B&W conducts site-specific classroom training,hands-onequipmenttrainingandwalkdownsoftheplant's systems.Vendor-assisted training also is used when needed. From concept through long-term operation,BsW economically and efficientlycoordinatestheoptimalresources-equipment,services and personnel -to meet your needs.BzW Power Systems operates this 60-megawattrefuse-to-energy project in West Palm Beach,Florida,under a 21-year contract. ABS, 'aw Ve are developers,we are pariners,vhetNERCyemyRNoeRARERSE c.are operators.B&W,Power Systems dy tLRTePRSBRaaEEe4EAEneedsoftodayandfomorrow:We are where'thTAS,ES gy Tae "and succe Pay fi)Lenerev pr agntsuccessfulenergyprojegaeh-turn to PEMASSeee,eyquanti-8ie : " ie a'zsceEere:Pre Es 4 on,or:as ea Te es i :vy RO:Es ot SCE oT RA x ieigThroughteamworkandinnovation,and through building #5)7ameg,quality into all our projects and processes.Bal is.2hty tase: S633 committed to maintaining our global technology leadership. 7 and achieving ighest fevel of customer satisfactiOESaaggeeaayesBERieSeeifashhigthefi4ofCustomersaoe5aBsSSeSMEENAsidaya2tg,pees at For more information,or a complete listing ofourSalesandserviceofficesworldwide,call1-800-BABCOCK (222-2625)in North America. Outside North America,call (330)753-4511 orfax(330)860-1886 (Barberton,Ohio,USA). 'Sy aWOTALNETEISex esECoeeEiccewidMausvametaeMES Poweringthe WoridTeamworkandInnovatior” The Information contained herein is provided for generalinformationpurposesontyandisnotintendedortobeConstrued8Sawarranty,an offer,or any reoresentationofcontractualorotherlegalresponsibility. ©The Babcock &Wilcox Company.Al rights reserved. Powering the Workd Teanmworkandinnovetionis8servicemarkofThe&Wikox Compeny. E101-3151 4MOD6G %,- gs g Babcock &Wilcox Construction Co.Inc.os .t wed 7 oe eal wet eral gmye bv set twi.: -a 1B bane Bret Oe _me : s .Lepiy vie see ee er .aan :=-Vere Ae:we asyd foeBibi,aorfeBaseAS=u:na A Complete Range ofServicesfromOneSource Babcock &Wilcox Construction Co.,Ine.{BWCC) is a single-source supplier of a full range of field construction,construction management and main- fenance services.With more than 130 years of experience,we operate regional offices to serve customers anywhere in the United States.BWCC provides a qualified management team,skilled craftsmen and complete support fo assure the safe success ofyour construction or maintenance project. aConstructionExpertise boiler construction experi- ence,BWCC provides total construction services including the entire balance of plant.From environmen- tal projects,such as flue gas scrubbers or selective cat- alytic reduction systems,to complex coal gasification projects;from foundations... and structural through _ piping and instrumentation, BWCC delivers quality pro-jects on time and on budget with the safe performance you require from a construc- tion contractor.-This. includes: =Planningandscheduling #Proven safety programs8Dedicatedproject .Management"©Prompt estimating andproposalpreparation «Responsive site manage-""ment and field engineering 8 Automated project a Experienced procure- .Ment,transportation and material control systems ®Proactive labor relations and management ®Constructability reviews ®Rigging and heavy lift engineering and design ®Quality assurance Servicing Today'sIndustries the energy construction and maintenance needs of major industries,including: ®Utilities #Pulp &Paper ®Cogeneration ®Independent Power Producers =Refineries ®Chemical/Petrochemical Environmental UpgradesCapabilities Environmental equipment (and new con- struction)will help you comply with today's stringent environmental!requirements while increasing plant effi- ciency.BWCC's capabilities in this area include: 4 This limestone FGD conversion for a westernutilityisbeingdesignedandconstructedthrough@teamingarrangement. Ssfe,"ys }ie's 4 aes 'Modularized FGO scrubberbeingsetinplaceota1300-megawatt facility. §fe 4 BWCC helps itscustomersmeet today'sstringentenvironmental requirements.Here,an SCR system for NOxcontrolisbeingliftedintoplace. Opportunities ThroughTeamingandAlliances BWCC is an industryleader more than $350 millionincompletedteamingprojectsandmorethanacenturyintheindustry,BWCC is a companyyoucantrusttomanageandexecuteallfacetsofyourproject. Based on past and currentexperienceswithteamingarrangements,provenbenefitshaveincluded: ®Improvedcost,qualityandscheduling arrangement with thisBWCfserocidion5cBWCCisidingSCRandairheaterrepiace-ment utilizing largederricksonthefacility'sroofforcomponentplacement. Plant Maintenance BWCC has maintenance ex- perience with major utilities and refineries worldwide. Through maintenance contracts,BWCC provides the supervision,equipment and labor to supplement customers'in-house mainte- nance programs.Our goal is to increase productivity and reduce overall maintenance costs for our customers while offering comprehen- Sive services covering emergency,outage and non-emergency maintenance activities,We provide these services with the planning, quality and safety our cus- tomers expect. MillCare™Pulverizer Services Reliablecoalpulverizerper-formanceisessentialforsustainedfull-load opera-tion of your plant,We offertheMillCare™program to handle your requirements, inchuding i ae tory management,wear part replacement and component rebuilding. A Pulverizer maintenance Services can minimize your costs associatedwithdowntime,invento- ries,workforce utilization, equipment investmentandrecordkeeping. rN Complete installation of }-§BWCC's experience inCogenerationandtwelve(12)85-megawatt the cogeneration marketH - 'turbines at in heat-recCombined-Cycle Experience FO eae et rte,ineuuces hoot recoveryalargecogenerationcombined-cycle facilities.BWCC'sbroadcapabilities ©Gas turbines plant.. .are exemplified by our «Heat-recovery steamexperienceintheconstruc-generators 3 tion of cogeneration and ; combined-cycle facilites,"Associated sicam ee ;wed got Gis Pt Ee construction techniques and with i ive,high-qualityandcost-competitive and creative project solu-tions,as well as innovative cated team of experiencedsitemanagers,engineers flexible management capa- and project administrators,we provide consistent bilities allow for tailored disciplines necessary for any construction project. Let BWCC demonstrate how we can provide you long-term and short-term maintenance solutions. construction and both leadership and the varied 1Ons oa ee ee% a a&:he 28,a*.aa?*l,My Maintenance Agreement.designs.Directed by a dedi- ity Standards,Innovative SolutHigh-Qual Scheduling HHH. daaedllHalle|HAASedatEceaAEE& eaeeieeakt : Sibey SbocatabiasPaverBsiiberiisiigsay3Higazds abped ane BEae ¢9824 >etAp eeeucsees aeeetebaited Rigging/Heavy Lift Engineering and Design services for field operations through our Construction Technology Group.The group's mission is to provide technical direction in the preparation of proposals and execution of contracts, with the goals of reducing cost of field operations, span,constructing a quality product and providing a safe working environment.The services provided also include construction plan- ning,product configuration and constructability reviews. Safety Program ®Safety is a management responsibility. The management of BWCC -»Management has aiscommittedtosafetyasaresponsibilitytotrain | guiding |eed eae employees to work safely.eZero as a vision for continu-.parent againstoussafetyimprovement.comeructon hazards.time,BWCC will striveto -«*Working safely isaperformallworkactivitiesConditionofemployment.on all construction projects free of accidents.Manage- ment believes this vision is attainable.The guiding : principles to achieve this zavisionare:eety =All accidentsarepreventable. ®Preventing injuries ismorallyrightandisgoodbusiness.ENATSABINARYeonsoutesBENTAVAVONVessnpetamnenensayavAs an example ofBWCC's goal of reducingprojectspan,this boilerforasternpulp and paper companywasiground-assembledintwomajorsub-assem- blies:the turnace box as one assembly andthesteamdrumswith generator tubes anddowncomersasanother. The two systems wereliftedintoplaceonsuccessivedays,.significantly reducingconstructiontime. SE anbadORE.eset3 omy ee Be Awe'8 BWCC Is headquartered in Barberton, Ohio.Let us demonstrate how we can provide innovative,high-quality,safe and cost-competitive solutions for your construction needs. Babcock &Wilcox ConstructionCa.,inc.90 East Tuscarawas AvenueBarberton,Ohio 44203Phone:(330)753-4511Fax:(330)860-6248 For more information,or a complete listingofoursalesandserviceofficesworldwide,call 1-800-BABCOCK (222-2625)in NorthAmerica,Outside North America,call (330)753-4511 or fax (330)860-1886 (Barberton,Ohio,USA).Or access our Web site at httpy//www.babcock.com, The ined hereinis provided kor gararal indoneation purposes only and i notortbeaey,a0 offs,or ary repr of 'omar MBCae is 9 service mark of The Gaboock &Wi:Company.Primavera Project Plarmar aratJiandSureTrakProjectManageraawaderuerkofPromevera'Systema,re, ©1888 Baboodk &Wikcox Canatnction Ca.ine,All rights!reserved, E101-3174 ShDet afl ayXY eee"a a an 'x eae -4 wnaA:eo _ "\ai *, ate waeri 3; ant»:por ¥taeKeenaeaNu tne 1owerpak OOer Tealures &ta IUrnace WwoiGn proves a tur ty yaspathandpositivecirculationinallgeneratingtubes.This configuration -_enables complete combustion and total burnout ofsolid fuel particles.Emissioris and furnace exit temperatures ara jowered.Reduction to aminimumofsolidfuelcarryoverprotectsthegeneratingbankfrompluggageanderosion.End resuit:higher thermal efficiency.By increasing the length of the tubes,not the length of the drum ornumberoftubes,we improved performance and reduced additional machining and assembly complexities.Well-defined downcomers in thesecondgaspassrunthebank's full width.Circulating water doesn't have to run the length of the drum to reach the downcomers,eliminatingpossibledrumlevelgradients.The positive circulating head increases velocities which avoids the risk of stagnation in the generating tubes.All six sides of the furnace are water cooled.offering a heat absorbingsurtacethatminimizestheneedforrefractory.Maintenance costs are kept law.. B&W''s membrane wall design withstands high furnace pressures,making casing repairs a thing of the past.Uniform wall temperatures end therma!expansion/contraction problems.On smalier units tangent, tubewail construction with seal-weided,ten-gauge skin casing is available as an option., : Versatility the Towerpak can turn virtually any fuel into productive steam The Towerpak's capacity to efficiently burn unconventional fuels is particularly attractive as gas and oil prices continue to escalate.Hogged fuel,sander dust,wood shavings,bagasse,coffee grounds -all can be burned aione or in combination with equal facility. Towerpak boilers can be equipped to Introduce solid fuels to the furnace by a wide variety of methods -Dutch Oven,air-swept wood spouts,screwfeeder,travelling or vibrating grate stoker.The mostpreferablemethodoffeedinghoggedfueltothefurnaceisviaanunder-tloor screw conveyor.Its quiescent fuel entry eliminates suspension burning,reduces carryover and combines with maximum flame travel toburnfuelcleanly-critical in a small furnace. To further increase efficiency and fuel savings,additional!heat recovery equipment can readily be supplied such as tubutar air heaters, ragenerative air heaters and econcmizers.For superheated steam anaddedpendantsuperheatercanprovidesuperheattemperaturesto900°F(482°C). ae biases SeedeSESoatag Waste wood of varrous descripuons (overieat)6 fed to the Towerpak bosders via asophsheatedConveyingsystem,hom storage bin fo screwfeede?,supped by B&W Canadafaaove). a Economical,efficient,versatile -a unique boller designed to burn an unusual variety of fuels No other shop-assembied boiler can offer the advantages and benefits '-"B&W Canada's Towerpak.Features usually found only in larger field-ted units are combined: Fully membraned furnace enciosure ensures gas tightnessVerticalfurnaceflowforminimumparticulatecarryover Long flow bank to minimize erosion,pluggage and gas-side draft loss Bottom supported to eliminate grid steel ; 'Occupies minimal floor space Features such as these add up to lower erection and maintenance costs while delivering outstanding parformance from an unusually broad range of fuels.In addition to burning conventional fuels like oil and gas, the Towerpak can likely turn whatever is available in inexpensive local abundance -waste wood,coal,bagasse,sander dust,even waste like coffee grounds -into productive steam.Such versatility can Gramatically reduce dependency on traditional,but expensive,fossil fuels. B&W Canada can provide total project turnkey scope,on schedule.For F.F.Soucy Inc.,a major Quebec paper producer,we Supplied a complete boiler facility from the foundations to the sprinkler system.This includes controls,fans,flues and ducts,dust collectors,stack,and an all- encompassing fuel handling system -reciaim hopper,conveyors,bark hogger,pneumatic blowing system,storage bins and metering screw conveyors.All erection,installation and commissioning was includedinB&W Canada's scope of supply. At Soucy's paper mill 3.5 milllon pounds of steam par day wera required to help produce 500 tons of newsprint daily -7000 pounds per ton of paper.Two package boilers were providing the necessary Steam but in the process annuaily guzzied more than 8 million gallons"precious Bunker C oil.In an effort to cut prohibitive fuel costs Soucy..108e twin B&W Canada Towerpaks,each designed to generate 60,000 nds per hour of steam burning waste wood readily available intityfromSoucy's own chipping operation and from local sawmills. Time elapsed from order to first steam -just 15 months. +he turnkey proyect scope tor PP Saucy volved a complete boler factity trom foundations toOo”Svsiam The shop-assemoied Towerpak teatres a ngid sieel base frame snipped with the Oover fo accommodate hitng by crane trom rad caryolaundatonsbymeansofremtorcedkinnglugs Shop-assembly ensures rigid adherence to criticalspecificationsandavoidshighon-site erection costs B&W Canada has.been.the nation's leading boiler manufacturer fordecades.As a subsidiaryof Babcock &Wilcox.we are a vital part of a.""ypany that is one of the world's premier designers and buliders ofmngenerationsystems. _tese considerable resources and years of experience enabie us tosupplyourcustomerswithsinglesourceresponsibilityfortheirproject. B&W Canada's haif million square foot works in Cambridge,Ontario, louse some of the country's most advanced fabrication and qualitysontrotfacilitias.Precision assembly is completed to rigid shop standardsfifficulttomatchinthefield...|a 1&W Canaca's twin 60,000 PPH lowerpaks burn wasle wood and unnually save F F Soucy&.advan gations of oi Corrugated wealherpoof aluminum outer casings protect ihe bawer hom.e efemenis All sites leature high-temperature bkinkat msidanon [0 cut heat loss ind coo! uler casings.. BN *a Seat XM os°to'ag83&as2nee4_vin Towerpak boliers and associated juipment suppilled by B&W Canada Hydrauhc-ram operaled live-bottom wood wasle storage bin Slorage fin variable-speed teed .Fully membraned,water-cooled fusnace enclosure Auxrary bumers Sooiblowers high pressure overfire sir ports Low pressure overtire air ports 12.Farce draft fan -+indectlogr screw conveyor 14 Primary Dist Collector iom-tupported dosmgn '14 Senondary Dust Collector Op-assemoied tubular arfneater 1§Induced draft fan High presayre blower 18.Common stack wilh separate inner ftuce Cees 2 'ea o9:250"BAND RR Baertdnnanncuntere Caney effectivefy!* "allonstruction 'and |field 'operations are performed by ourinternationalService&Construction department.Nationally our servicesare-availabte through regional offices.in major Canadian cities.Overseascustomersarée-served through:a strategic network of agents and regionalalesofficeslocatedaroundtheworld. A wide range of services is offered: Turnkey project management Boiler arection and repair Field inspection,diagnostic testingUpgrades,rebuilds and supply of parts for any make or type <of boilerBalanceofplanterectionandrepairOperation,maintenance or plant 'upgrading -B&W Canada has the proven expertise to ensure peak performance. B&W Canada's versatile Towerpak boiler , "7 oe Mies,StI lta”:'i e4 oe y fe x *ond Se (MW SLE eo :; te ats ae an FuetRenge a:ws Prokanenth Rwtoage 7 .. :ide BPS ais Bree Capacity Range : p >; i pen ge Tamperature Range f ;ok oq SoePreasureRangean:RAE SAG IO DOG Scope of Supply F.F.Soucy Inc.,Riviere-du-Loup,Quebec Major Equipment Supply Two shop-assembied Towerpak watertube boilers each complete with Mountings,refractory,insulation and lagging Soatblowing system Auxillary gas and oil burners Duplex cil pumping and heating setRotaryundergratewoodscrewleeder complete with receiving hopper and motor drive Forced draft fan and motor drive induced draft fan with motor drive High pressure blower and motor driveFluesandductscompletewithinsulation and outer lagging Shop-assembied tubular air heater Steam coil heater Mechanical dust collectors Motorized rotary sea!valves Pneumatic combustion controls complete with 3-element feedwater control,indicators,recorders,transmitters,panel,0,analyser,steam coil air neater control and flame failure equipment Ash handling conveying systemCommonstack,125 ft.(38.1m)high,11 ft.(3.35m)in diameter withseparate4ft.6In.(1.7m)inner flues Balance of Plant Building.inciuding all foundations,building steel,walkways,stairs, roof,siding All electrical equipment including motor control centre,wiring, cabling and lightingAllinterconnectingpiping (steam,fuel,feed-water,cooling water, sprinkler) Complete waste wood handling system inciuding building,steelwork. raciaim hopper,conveyors,hog and pneumatic conveying system from wood preparation area to boiler house storage bins rt Ryne *. cat. a oS." = bee =ph 4 Ke Pod ¥ ? bh P 2 aif 7 *aeHRDSaha a (are.maa Xs 9 ra wotnetsfy Mapp te aRATAN Minsserinete: ' cman hak lerTheTowerpakShopAssembledWaterTubeBo Babcock &Wilcox Canada Ltd An exciting concept becomes an extraordinary boiler... The Babcock &Wilcox Towerpak. Even a cursory inspection tells you that this isnoordinaryboiler.{n tact,that unique,verticaldesignistheveryreasontorTowerpak's economy, versatility and outstanding performance.With the Towerpak boiler,Badcock &Wilcoxcreatedforthefirsttimeahigh-capacity design thatcouldbetransportedbyrailinonepackage,and stil! adhere to allowable shipping claarances.Ta achievethis,we built "up''instead of increasing length,placing the unit flat on its back while in transit.So ailtheadvantagesofashop-assembled boiler wereretained,but in a design capable of producing steamfromavarietyofsolid,liquid and gaseous fuels at arategreaterthanyouwouldnormallyexpectfromashopassembledboiler,. Once installed,the Towerpak's vertical designalsoachieves8standardofafficiencyand maintenance-free pertormance unusual in conven-tional!boifers in this capacity range.The same is truewhetheryou're buming conventional fuets such as oilandgas.or solid fuels such as wood,coal,bagasse,sander dust,even the office waste,coffee groundsandpaper-tor Towerpak is as versatile as it isefficient. More than 100 years of experience have goneintotheTowerpakdesign-that's how long Babcock &Wilcox have been producing economics!,dependablesteamgeneratingequipment.With such a history,unmatched In the industry,it's no wonder they cal!Babcock&Wilcox "the boiler peopie”. eshte SLieoeThien. tic 2 cadsake ean(AyIa?ateed Shop assembly... where the advantages of the Towerpak begin. In the following pages,you'll discover now asimple,but uniquely destgnad boiler can offer you unmatched economy and performance.But first,let's see why this Gabcock &Wilcox Towerpak boilerstartsmakingsuchgoodsenserigntintheGabcock&Wilcox plant.where the Towerpak is shapassembledtoexactspecifications. 1.Faster delivery Only with a factory-assembled boiler is specializedlaborandprecisionmachinerysoreadilyavailable.When this is the case,a Doiler can clearly be ready foroperationinlesstimethanon-site erection allows. Further,transportation of a complete unit meansthere's less fuss with fewer arrangements to be made. 2.Lower capital expenditure Because it goes on the line sooner,the shop assembied boiler puts investment dollars to work faster.And since the work :§dane in the Babcock & Wilcox plant,not yours,interference with your plantoperationsisreduced.Package boilers requireminimalspaceandarebottom-supported...a Peerat:jfé:GeyaReyaheeytetol?drastic savingon building costs,Engineering costsarealsosignificantlylower,as all units are "pre:engineered”. 3.Manufacturing Exceffence From initial design right (hrougn to final assembly,the constantattention of highty specialized per-sannel ensures standards of quality control!difficulttoattainwithfield-erected units.Shop assembly alsofacilitatestheswifthandlingofcustomdesignsandspecifications.You get the right boiler for the job attherighttime. 4.Future flexibility With its simple foundation and ¢ompact nature,apackageboilerisobviouslymoreportable.Thisbecomesanattractiveadvantageshouldyourplantbealtered,or even moved toa differant site.Again,shop assembly can save you time,trouble and expense. These are just some of the reasons for goingwithshopassembly.Your Babcock &Wilcox rep-resantative will give you many more.And withtoday's increasing capacity limits tor packagedwatertubeboilers,it makes more sense than ever, You'll see,as you read about the Babcock &Wilcox Towerpak.just what a shop-assembied boiler can do for you.: Unique design...so Towerpak offers you unmatched performance,economy,efficiency. Symmetrical furnace design means uniform heatabsorption. The arrangement of furnace and burner is ideal.Since all furnace wal's are equidistant from the flame centre line,an even heat load across the furnace is assured,as is uniform heat absorptian inallttswatercircuits.The hot flue gases exiting fromthefumaceanterthefullwidthofthegenerating bank perpendicular to the drums.Safe circulation results from uniform loading of the steam separatingequipmentlocatedinthesteamdrum. Maximurn flame travel allows complete fuelbumout.. The tail furnace design offers a long gas pathfarmaximumbumoutofsolidfuelparticles.In view of today's pollution concerns,this iga mostimportantfeatureinburningsolidwastefuels.Lower emissions,lower furnace exit temperatures,andhigherthermalefficiencyareachievedinthisway,while reduced carryover of solid tuel particlesprotectsthegeneratingbankfrompluggageand erosicn.ry Longitudinal ¢23 flow ensures maximum efficiency. ___Another important advantage of the TowerpakGesignisatotallyunobstructed,vertical gas flowthroughoutthegeneratingbank.By allowing the gastaflowalongthetudesratherthanoverthem,significantly tower draft loss and reduced furnacepressureareexperienced,with less chance for gussidepluggageanderosion.A conventional boiler oftheTowerpak's capacity would require a powerful andcostlyforceddraftfantoprovidecombustionairand drive the hot gases through the generating bank.Ouetoitsfreeflowingdesign.tha Towerpak requires a tunel-PSthsboadtawinsne ellh ? simpler,lower horsepower fan for maximum perfor-mance.Dependingon the type of fuel being fired,apressurizedorbalanceddraftsystemmayba ° emoloyed., Vertically orientated for positive circulation. Babcock &Wilcox designers found thatincreasingthelengthofthetubes,rather thaninereasingthelengthofthedrumsandthenumber oftubes,was a much more efficient and economical ageroach.The well defined downcomers are locatedinthesecondyaspass(the cotdest sactian of thegeneratingSank),and run the full width of the bank.To reach them,circulating water does not have to run the length of the drum,thus eliminating thepossibilityofdrumlevelgradients.Towerpak's heightgivesapositivecirculatingheadforgreatest velocities and minimum stagnation in all the steam generating tubes.: A TOWERPAK GC1l ER DESIGNED [0 BE O11 AND WCOD FIAED weit Bitares9 La Babcock &Wilcox keeps maintenance costs waydown. All six sides of the furnace are water cooled,offering maximum heat adsorbing surtace withouttheneedforrefractory.Complete water coolingkeepsfurnaceexittemperaturesbelowashfusion point,for cleaner generating banks and superheat-ers (if fitted).An erosion free gas path,uniform heatandsteam/water distribution and minimum refrac. tary combine to reduce maintenance costs. Shorter drums,fewer tubes cut initial outiay. Fabrication of the steam and mud drums, Grilting the tube holes,and the cutting.bending,assembling and expanding of the tubes are the mostcostlyoperationsinmakinganyboiler.In view ofthis,the Towerpak's shorter drums and fewer tubes represent a considerable reduction in capital ex-penditure.; L___ -JomC9:42m END Ww Mesa cfL£ ft7 5: : i 4¥, %.”NS Construction...indoor or outdoor installation, Babcock &Wilcox workmanship means you stay on line. 2 Types of construction available. Depending on your requirements,B&W cansupplyyouwith4Towerpakboilerinetheroftwobasicdesigns:membrane wall construction ar thetangenttubeinner-cased design.The membranewalldesign,a B&W exciusive,is generally recom-mended tor all Towerpak boilers,because it has been outstandingly successful in eliminating leak-age of noxious and corrosive combustion gases. Soap-sir test ensures gas-tight enciosure. B4&W's patented membrane construction is capable of withstanding higher furnace pressures THE BASIC CONSTRUCTION OF THE TOWERPAK BOILER Bptergeeatesfa5xAgoaET EET INNS WOAES)iene tees undlnvg o n¥:at,peinery , than other designs,thus etiminating the need forfuturecasingrepairs.Thermal expansion/contrac-tlon problems are also eliminated,as membranewalltemperaturesareuniform.Where tangent tudeCONSTIUCTIONisemployed,a completely weldedinner-casing 's supplied to form a gas-tight encio-Sure.In Doth instances,a stringent Soap-air test isCarriedoutbetoretheunitleavesthefactory,toensureagas-tight enclosure. Baw's EXCLUSIVE VEMBRAme RITIGHTWELOLDCONSTRUCTIONWALLOLSIGNFEATURES 4 GAS TO ENSURE A COMPLETELY GAS-TIGHT FURNACE ENCLOSLAE,TrtTOWEAPAMUNDERGOES&THOROUGH SOAP-AIR TEST BEF!LEAMINGTHE FACTORY bd EST BEFORE Sturdy,weatherproof exterior. Only B&W package boilers feature outer Casings of neat,Corrugated panels with no need forunattractivestiffeners.This aluminum weather- proof design allows the Towerpak to be locatedoutdoorswithoutspecialprotection.tn addition, the walls,floor and roof are insulated with hign-temperature dDlanket insulation to minimize radia- tion loss and keep the outer casings cool.For jotsiteslocatednearsaitwater,orwhen Towerpaks areshippedoverseas,the aluminum casings are sprayed with a special preservative coating topreventcorrosion. Water-coaled on six sides. All furnace walls of the Towerpak are com-pletely and efficiently water-cooled.Radiation lossancrefractorymaintenancearethusminimized. The furnace is equipped with many aspirated,wideangieobservationpartsfarcomplete,effective view:ing of combustion.Access doors are also providedwhereinternalinspectionisdsemednecessary. INL R CASING BEN:INSULATION \rl =r ConmucaTED ALUMINUM BSOUTERCASINGppbtSaw a 3, -CORAUGATED ALUMINUM CUTER CASIN By MEMBRANE CONSTRUCTIONWERSDEWALL,BaGOAEA REAR WALL,FUENACE SIOE WALL,FRONT WALL ANG ROOF INNER CASING BLANKET ;INSULATION bAEessCIKC CORAUGATES |;Ee ALUMINUM OUTER -PES casingq °C ye REFRACTORY|i (APPLIED FLUSA. ; ;wit SUTSIDE OF TUBES) ac 2 =ALINFCROINGffWiRESACK |:WELOES TS STUD»PLATES ON 3° CRATERS,Nae7renROSIQE SECTIONALFyivar1ON*. Co.SPalis TUSE-FLAyCTVOCED-30 1M CASEDCONSTRUCTIONBGILERSIDEWALL Versatility ...Towerpak deliversdependableperformanceonawide variety of fuets. Versatile.A word that is synonymous withtheBabcock&Wilcox Towerpak wherever steam isgeneratedinquantity.With rapidly rising oil andgasprices,particularly attractive is the Towerpak'sabilitytaburnsolidwastefuels.Canventional oil, g83 and coal,hogged wood,sander dust,wood shav-ings,bagasse...a)}these,aloneorin combination.can be burned with equal facility.Cansider thevarietyofapplicationstowhichtheTowerpakcan be SO ideally adapted. Towerpak boilers can be equipped to feedsolidfuelstothefurnaceInawidevarietyofways. These lactude Dutch Oven,screw feeder and travelling grate stoker,to name the more conven- tional methods.The actual design used on anyspecificboilerwoulddependonthetypeofsolidfueltobebumedandtherequiredlimitationsonemissions.The perfect boiler for the jobis furtherassuredbytheavailabilityofawiderangeofancillarycomponents,everything |from burners togasclean-up equipment. No other wood-fired boiler bums so cleanly An under-floor screw conveyor has proveditselftobeamostefficientwayofintroducinghoggedwoodfue!into the fumace.By this method, .Quiet entry of fuel,elimination of suspensionbuming,and reduced carryover or solid particles combine with maximum fiame travel to make Towerpak the cleanest Burning wood-firad boiler onthemarket. Having been introduced ta the furnace,the wood is then deposited on a pile on a stationary grate that covers the furnace floor,Since the woodisfedupfromthebottomofthepile,it can be WINDSWEPT SPOUTS 1$ONE AMONGST A WIDE VARIETY OF METHODS FOR FEEDING SOUIG FUEL TO THE FURNACE pre-dried with the help of not underfloor air fromtheairheater,introduced through pinholes in the grate. In the event of a momentary stoppage of thescrewfeeder,the pile will continue to burn, maintaining steam production for a short duration. Stationary grate allows maximum combustion withminimummaintenance. For better pila burning,the under-ficor grateairisdividedintotwosections.High pressure air istedtothecentreofthegrate,lower pressure air toitsperiphery.Capable of withstanding the ex-tramely high temperatures necessary for bettercombustion,the stationary grate is water cooled forlonglife,and employs no moving parts forminimummaintenance. Ease of cleaning is a further pius. With its self cleaning Venturi"air holes,the furnace floor grate remains in optimum operat-ing condition.The grate is sloped towards easilyaccessibleashcleanoutdoors,while sequentialsteamjetsassistashremoval.The amount of gratecleaningisdependantonthefiringrateandashcontentinthefuel. Coal-a fuel of the future. With the prospects of ever diminishing oil and gas reserves,many industrial customers areconsideringreturningtocoalfiring.As might-be expected,the versatile Towerpak can be readily adapted to coal by adding the necessaryequipment, ELIMINATION OF SUSPENSION BURNING AND REDUCEDCARRYOVEROFPARTICLESISACHIEVEDwiTHTHEUSEOFANUNDEAR-FLOOR SCREW CONVEYOR. THE FURNACE FLOOR GRATE [S SLOPED TOWARDS EASILY ACCES-S*@LE ASH CLEANOUT GOORS Equipment...full range of ancillary components tailors the Towerpak to your needs. Sootblowers:Towerpak boilers normailycomeequippedwithrotary,stationary scotbiowersforcleaningcftheboilertubesurfaces.Retractable sootblawers may be fitted to units where tempera-ture or contaminants in tha fue!make stationary sootbiowers impractical. On gas-fired jobs,with light oil standby,sootblowers ara not required.However,all Towerpaks are fitted with sootblower bearings in the generating bank,and wall boxes for futureinstallationifrequired.Heat recovery equipment For highest pos- sible efficiency and fuei savings,additional heatrecoveryequipmentcanreadilybeaddedtotheTowerpak.This incluces 6&W tubular air heaters or regenerative air heaters,and economizers. Superheaters;Whan supermeated steam is required,a pendant superheater can be added to the Towerpak for superheat temperatures up to900"F.All-weided constructian is used.All tubesarestrength-welded into the superheater headers topreventtubeleaks.On multipass superheaters,hand holes are provided for inspection.An access coor in the boiler setting allows easy access for superheater inspection. Installation... Towerpak can be installed simply and quickly. B&W engineers have designed the Towergakbailerfarthesimplest,most ecanomical instaila- tion possible.Oe Since the Towerpak is bottom supported, expensive structural steel normally associated withsolid-fuel-fired boilers of equivalent capacities is eliminated. ituses aminimum numberof transfer paintsatthepressureparts,allowing free expansianwithoutimposingunnecessarystresses.Thermalexpansianisallowedforbyspeciallydesignedlow-friction pads under sliding surfaces.;Lifting lugs are provided.so the entire unitcanbetiftedfromthetoptomakeunloadingand Placing extremely simple.The Towerpak is shop assembled in a rigidstae!base frame which can be shipped with the boiler to be used for transportation between the raiicarandthefoundations. ,When the boiler reaches the foundations,it can be turned and set in place using two medium oronelargecrane,depending on the size of the unit. JUL28°@3 @9:.47AMBANDWNAPAGA B&w Wich SUPPLY PANELS TOCONTROLAND MONITOR IMPORTANTFact7SOFBOILEROPERATION RY+HYov8.3.*e.»PS' eteege oe ie:eeShipeefacets:s¥ P.16/1A2 2ag ¥ iv ReaoesmeenosamBoaStTeeHPeeeeThe Venturi Burner...a Babcock &Wilcox exclusive, especially designed to complernent the Towerpak boiler. Wide choiceof fuels,The Venturi burner isengineeredtobefiredwithawidevarietyoffuels,including Bunker "C'"*oil,natural gas,crude oil.refinery gas.petraleum,naphtha,pyrolysis and mary others.Venturi Throat Burner-a B&W exclusive:Thisextremelyefficientbummerwasdesignedfor,and istheB&W standard,on all Towerpak boilers.it offersincreasedturndown,better fuet atomization,reducedsteamconsumption,simpler control,and is capableoftowexcessairoperation.it is specificaily designedtooperatewithintheconfinesofapackageboilerfurnacewithoutflameimpingement.Simple control &low maintenance arefeatures:The B&W Venturi Throat Burner can besuppliedtoburoi!only,gas only,or gas and oil incombination.For tiring fuel ails,a "Racer”style,steam-assisted atomizer is used,utilizing constantsteampressurethroughouttherangeofthebumer. This eliminates the need for a constant steam-to-oil pressure differential vaive,simplifying contro!and raducing maintenance.. Dual stomizers eliminate cleaning down- tire:The Venturi Throat Burner can be fitted with one or two atomizers;in the latter case,each one is capable of suppiying fuil load oil flow.The dual-atomizer system permits ane gun to be cleanedwhiletheotherisfiringtheboiler,so you experiencenofossinsteampressure., B&W oromises total balier-burner respansi- bility:B&W produces both bailer and burner.Thus, when you equip your Towerpak boiler with a B&W burner,total responsibility for design,installationandfuturemaintenancerequirementsareinoneset of hands ratner than severa)-by tar tha most effie cient and problem-free way of doing business. A wooo FIRLD TOWLNPAK SOILLN IN OPERATION AT A LUMBER:CoP COMPLEX oe Woy bascanags f \ The Babcock &Wilcox Professionals: They come as part of the package. When it Comes to selection and installation of a Batceck &Wilcox boiter,you can rely on (he adviceandsupervisionofthemostwidelyexperienced prafessicnais in the Susiness...THE BABCOCK &WILCOX PACKAGE BOILER TEAM.The men you seebelowarepartofit,and right down the line,they'liStaywithyoufor: 1.Equipment selection-Your bolier will be inServitetor2longtime,50 you want to be sure yougettheonethatsuitsyourexactneeds.Babcock &Wilcox mgkes Sure. 2.installation supercvision-Whether you require afullytrainedandexpenencederectioncrewto_handia camplete installation,or specialized on-site supervision,Babcock &Wiitox will willingly supplythebestthereis. 3.Start-up and training servica -Mambers of tne Babcock &Wilcox skied service force are avaiable ta you for start-up operations,cperater training -and,of course,service over your Towaerpak bailer's78. Babcock &Wilcox is Canada's largest boilermanufacturer,Our plant in Cambridge,Ontario isthemostmodemintheindustry,The most up-to- date production mathogs,together with the higheststandardsofqualitycontrol,assure in the Towerpak a boiler of the finest quality available today.- i ATTACHMENT 6 The Full-Service Provider in Power Generation ALSTOM "™" The Full-Service Provider ALSTOM's Power Sector offers the broadest scope of power generation systems,equipment and services in the industry. This uniquely comprehensive capability enables us to provide our customers with the maximum of options and the most economical and environmentally friendly technologies. We ore able to deliver total solutions,from componentstoturnkeypowerplants.But we cre not only @ productsandsystemssupplier,we wont ourcustomerstolookuponusasa'full service provider',helping to maximisethepotentialoftheirpowergenerationcapabilitiesandenhancetheir compelitive position. A Powerful Partnership For example,our services also include plont operation ond maintenanca,total plont manogement,and allioncsprogrammes,where we continuallystrivetoincreaseoutput,reduce outages and meet environmentalcompliance.All at reduced cost. We want to build longterm partnerships where we can help to ensurethatourcustomersareprovided with agoodreturnontheircapitalinvestments. Our rapidly developing e-commerce enabling us to work more efficientlywithbothourcustomersondsuppliers. www.power.alstom.com Delivering the Products and Services You Need Whetheryouare¢utility,anindependentpowerproducer,or inindustry,we con provide you with theproductsandservicesyouneed,PATERBaeALS Progress Through Technology The future developmentofflewondexistingproducts isgvorenteedthroughourincreased c.expacityin ResearchandDevelopment.ms The extensive resources of 12laborotoriesandover2,000 research -.technologistssupportthiscapability. Wit these facilities,we will continue todevelopourproducts,and therefore ; with technologythatisdesignedto In the technologies and products we 12R 8D Lobs develop,we ars committed to saving -energy,reducing harmful emissions,seine;.Jenfing noise and allother teen!Orgonisotions in £3 Countriesenvironmental,impocts. Our existing product range-erfibodiestheverybestoftheséworldleading In 2002,ALSTOMondRollsRoycetechnologies.signed a long term technologyagreementwhichwillenableAISTOMtouseRollsRoyesceroengine__technélogy in the developmentofitsheavydutygosturbineproductrange. Rolls Royce cercenginesopercteusingveryhightemperaturetechnologies,- temperature matericls. The expertise and knowledgeintheseoreasgainedbyRolls-RoyceindevelopingitsworldleadingoeroengineswillbeappliedtoALSTOM'sheavydutygasturbines to improve efficiency,power output ond durability. Our worldwide sales cre supported by our globe!presence. 54 Manutacturing Centres 70 Service Centres Where You Need Us, When You Need Us In terms of orders,presence and multicultural diversity we are the most intemational of the world's leading suppliers. With over 45,000.people in morethan70countries,we are able to combine our global expertise with exdensive knowledge of loco!markats. This expertise is delivered to our customers through our greatest resource,our people. Benefit From Our Experience We olso have our vast operationalexperiencetodrawupon.We havesuppliedalmost20%of the word'stotalinstalledcapacityinpower is used fo ensure that we provide ourcustomerswiththeoptimumsolutions. These capabilities,and ourcomprehensiverangeoftechnologies,products and services,make usconfidentthatwhateveryourrequirements,we cre equipped to the power generation industry. Orders by Product our customers,ond poss Ss-expertise in rywems Integrthrough-ife maintenance.and vices Market Overview |.* Increasing Demand During the next 25 years the world's the volatilityofsomefuelprices,installed power generation capacity is will strongly influencethedemand..expected to double,and most of thecurrentequipmentwillhaveto Accordingly,suppliers to the powerbereplaced.indusiry have to reflect these dynamicsinthemarketthroughbeingHesdble,Demand for power generation adaptableandinnovative,helpingequipmentwillbedrivenfirstlybythe|customerstoRindtheoptimumcontinuingneedfordevelopedcountriestomoderniseogingplonis,increaseefficiency,cut costs and reduce growing economiesandpopulationsofthedevelopingcountries.In addition,the availabilityofdifferenttypesoffuels and renewable energy,combined with Meeting the Challenge From fossil fuels to renewables such We believe that for each specificashydroandbiomass,we have world situation or need there is an appropriateleodingtechnologiesinailthekeysolutionthatwecanofferyou.oreas of power generation and the Supportedbyourglobalsalesanddeterminationtosustainthispositionservicenetworkcoveringmorethanthroughinvestmentinnewproducts70countries,we believe we provide and servicas.the most complete offeringto thepowergenerationindusiry,makingustheworld's foremost 'Full Service Provider'. TYPICAL VU40 BOILER DESCRIPTION Supplied by Alstom Power FURNACE The furnace features welded wall construction of 3"O.D.SA-192 seamless tubing on 4" centers.Welding of waterwalls provides structural rigidity to the construction,provides a positive seal from leaking furnace gases for greater personnel protection,eliminates casing hot spots and the need for an inner casing.The furnace wall tubing has a built-in thickness tolerance for long tube life and unit availability. The furnace setting height is measured from the centerline lower rear waterwall header to the centerlineofthelowerdrum.The furnace waterwall at the bottom of the unit are designed to accommodate various furnace bottoms including vibrating grates,stationary grates,traveling grate and furnace hopper floors with a scraper conveyor and the bottom (this is for PF Fired boilers). The furnace is designed for balanced draft operation and a pressure tap is provided at the furnace outlet.This pressure tap is linked to the LD.fan to maintain a constant-0.1”w.g.under all firing conditions.This design prevents the escape ofhot flue gases fromthecombustionchamberandalsodampenstheeffectofafurnace"puff”or excursion to positive pressure.The furnace buckstay system is designed for +/-26.5”w.g.at 100% yield. SUPERHEATER The superheater arrangement consists of two-stage platen and spaced sections.The first stage employs a parallel flow pattern superheater,which exposes the low temperature steam to the hottest flue gases and also takes advantage of the luminous radiation in the furnace.The final stage superheater is a counterflow arrangement,the optimum pattern -for heat transfer. The tubes are arranged in-line for ease of inspection,access,maintenance,and cleanability.The superheaters and boiler bank are separated by 24”access/sootblower cavities to provide ample access.Cable openings are provided in the furnace roof for ease of upper furnace maintenance.Observation ports are provided to inspect supetheater tubes. To provide a gas tight seal in the penthouse,the superheater assemblies will be suppliedwithshopinstalledhighcrownsealswherethetubespenetratethefimxmaceroof.A steamcooledspacerisbeingsuppliedtomaintainthelateralortransversealignmentofthesuperheatertubes.Flex ties ree being supplied to maintain the front to rear or longitudinalspacingofthetubes. Saturated steam from the drum is delivered to the first stage superheater inlet header via carbon steel connecting tubes.These connecting tubes are evenly spaced along the width of the unit to promote uniform steam flow distribution both through the drum internals and into the inlet header. The first stage platen superheater is designed to maximize heat transfer,prevent bridgingandfacilitateashdepositremovalfromthetubes.The platen design consists of pendanttubesarrangedin-line parallel to the direction of gas flow.The in-line tubes are arrangedon12"transverse spacing and spaced longitudinal son centers equal to the tube diameter plus 0.375”. The final stage spaced superheater tubes are placed on 6”transverse spacing andlongitudinalspacingoftwotimesthetubediameter. The Bidder utilizes internally established minimum tube wall thicknesses for bending to avoid excessive thinning of the tube during the bending process.This assures that the tube bends have sufficient thickness remaining to withstand unit design pressure as well as provide a margin of tolerance for high unit availability.All superheater elements shall be stress relieved. BOILER BANK A single pass,cross flow boiler bank design is used.The boiler bank,located after the superheater,features in-line carbon steel,SA-192 seamless,tubing arranged in two sections.The sections are separated by an 18”cavity,which allows installation of a sootblower and facilitates mamtenance and inspection.The tubes are rolled during erection into the upper and lower drums without any butt welds. The flue gas makes a single pass across the boiler bank,which contains saturated water or a steam/water mixture.The most active steam generating circuits are located in the front bank,where the hottest gas temperatures exist.The final few rear tube rows primarily act as downcomers.The boiler bank also acts as a heat sink to absorb any system transients. ECONOMIZER The final pressure part heat transfer surface is the economizer,which is located within ductwork following the boiler bank.The economizer contacts hot flue gas with the incoming feedwater to increase overall unit efficiency.The surface is arranged for countercurrent flow,with the flue gas flowing down over the tubes and feedwater flowing up inside the tubes., CIRCULATION SYSTEM The Bidder's design employs a natural circulation system.The feedwater is preheated intheeconomizer.Feedwater then enters the steam drum where it is distributed along the entire length via a distribution pipe.The feedwater then mixes with the saturated-liquidinthedrumandthesteam/water mixture rising from the generating circuits. The steamdrumis sizedto separate the maximum quantity of steam to be generated..The steam drum is supplied with a three fold set of drum internals,which include a hydraulic baffle,unitized perforated centrifugal separators,and secondary screens.Thedrum-internals are capable of handling load swings of +20%per_minute._The upperdrumissuppliedwiththecontinuousblowdown(CBD)comnection.-; The boiler bank acts as a heat sink and buffer between the superheater and economizer. The first halfofthe boiler bank tubes are essentially riser circuits between the upper andlowerdrums.The rear half of the boiler bank acts as heated downcomers feeding vwater,to thé lower drum The lower drum contains the chemical feed connection.By placing the chemical feed on the lower drum the chemicals combine with the circulating water and are better mixed before entering the steam drum.Also,the drum internals are protected from any possibleattackbythechemicalsandthereisnochanceofchemicalsshort-circuiting and being discharged through the continuous blowdown system.This can be an expensive and unneeded waste of chemicals. The preheated water is then fed through unheated downcomers,which supply the lower furnace headers.The lower furnace headers are connected form a ring to supply water to all four waterwalls.The 3"O.D.tubes on 4”centers provide a low tube velocity so as not to inhibit the natural circulation,but maintain a high enough velocity to prohibit'departure from nucleate boiling which can lead to overheated waterwall tubes. The waterwall tubes generate a steam/water mixture,¥whichis carried into the steam drumasfollows: The front wall tubes also form the partial roof and relieve directly into the steamdrum. 2.The rear wall tubes relieve into the lower drum where the steam/water mixture isbaffledintothefirstthreeboilerbanktuberowsandpassedtothesteamdrum. 3 The sidewall tubes relieve into upper headers (one on each side)which are in tumrelievedbyaseriesofrisertubesthatfeedintothesteamdrum. ATTACHMENT 7 See SeCie ere :.+B :'3 Se eon heeSet res.reneifeke7vahhspati5TEESTeDietos&43tyiedfils yr es "T.,gee ot p.Saas jen shineeeetb- é , ae a4 Bate,C *3 Bet aS s S 3 :oy 'J 2 is ie b . a > i . ' ee a ae ees ae °4 : ts 3 : Q i RIS pH 3 a 6 es +i pans "3 , :nb ak ee 9 . 3 = mAAtt4 Z iste Hit?i . ae Ket --*a "y *a z oe x in :s,-B. i 3 » oh ate Y .fe z -te ". A -i Jie2f.5 i +Be . -q.Ss; -i gan .ae "'i eo x Y,ry Ls |'W4de 'secyens She -*% "' - = 7 "og ”de:i a ¢}a-eb ee Sey -s -#f Since 1887, Heyl &Patierson'has designedandconsiructed Q@ full lineofihemost efficient,Tugged,-durable bargeunloadersinthe bulk material handling business Tne Heyl &Patterson line of high capacity machines has solveda variety of unloading problems for many customers. Diverse cargoes such as coal, iron ore,bauxite,clumina, com,wheat,soybean, agrcuttural by-products,woodchips and limestonearesuccessfullyunloaded. borpe wicths from 26 20 SO ft. ps Neixing'Nomadtimeformanuci et qt gece.oe,ee re 0h ge coe 4 Irarctied at Shigpingpart.PA nis-unlooderNes0freediggingrateofS000TPH,but overcoes ICCO TPH ine chonge of abeut 10 minutes {NsRasytape eh .p>.A "=eageaas aPaptAkOeeed Contievered Truss Buciat Sevator Cantinuous Unioacter for ExtremeIneTPHcodurioaderwes«Weta Levet Change:Design Pioneers ciovetowcvecad cowervacedasam SOIVING bulk materials. handling problems since 1887 soesoomers0NSFEIS50 zd oie '5 gz. bay -_a 3penedReet,AE ee 4 =-id --= sng 62 Ae ey aitShre RR PatEYCornsSoneos cet xegateeealy on Tom Monter From:Jerry Spehar [Jes@heyipatterson.com] "-at Wednesday,March 26,2003 11:45 AM :Tom.monter@pes-world.com subject:Tom Barge_Unioaders.p -. , . df Tom In response to our telephone conversation,I've attached a pdf of our barge unloader brochure.As discussed a ballpark price on an unloader delivered the jobsite in Alaska is $3.5 million.If you have any questions,please feel free to contact me. Regards Jerry Spehar Ph.724-743-1000 Fax 724-743-2850 verry Spehar 724 743.L000 Fax 724 743 225) Tom Monter From:-Jerry Spehar [Jes@heyipatterson.com]™*ent:Thursday,March 27,2003 4:06 AM - 0:Tom.Menter@pes-world.comsubject:RE:Tom Tom This equipment is in not portable in any way.It is to be mounted on substantial cells,which I have never hear of being damaged by weather conditions.See attached drawing for ageneralideaofequipmentsize.It usually costs 30%of the cost of the equipment to erect,however I suspect costs will be higher in Alaska. Jerry Spehar Ph.724-743-1000 Fax 724-743-2850 >>>"Tom Monter”<Tom.Monter@pes-world.com>03/26/03 03:37PM >>> Jerry, I did have a few additional questions for you.I wanted to know what the erection costs would be for a system like this (ballpark figure).What happens if we have to move it from the river each year? The belt from the unloader:is it a boom or would it be supported at both 'ends? ext question is,what kind of foundation does the unloader require?is it _Q pontoons or do you have to sink some type of pilings into the river.This last question concerns me the most as we have to deal with the river ice and sprink breakup which could damage permanent pilings.We may have to makepilingsthatcanberemovedattheendoftheshippingseasoniftheyarerequired. One final question would be what is the total power required to operate an unloader like this?This is important as we have to adjust power plant size and output based on equipment loads.Thanks. Tom Monter (208)772-4457 Precision Energy Services 10780 N,Highway 95 Hayden Lake,ID 83835 Tom.monter@pes-world.com .c----Original Message----- From:Jerry Spehar (mailto:Jes@heylpatterson.com) Sent:Wednesday,March 26,2003 11:45 AM To:Tom.monter@pes-world.com Subject:Tom TomInresponse to our telephone conversation,I've attached a pdf of our bargeunloaderbrochure.As discussed a ballpark price on an unloader deliveredthejobsiteinAlaskais$3.5 million.If you have any questions,please"feel free to contact me. Regards Tom Monter _From:Jerry Spehar (Jes@heyipatterson.com]"\Sent:Thursday,March 27,2003 10:05 AM n Tom.Monter@pes-world.com ibject:RE:Tom Tom Yes,all of our projects are custom designed for the client's application.Costs I gaveyouassumedwiderbargesthanshownontheprint.. regards ' Jerry >>>"Tom Monter”™<Tom.Monter@pes-world.com>03/27/03 11:56AM >>> Jerry, I did have one more question for you concerning this unloader:Can it be adapted for wider barges?the barges we.will likely be using are likely going to be 60-80ft wide not 30ft.Also what effect if any would this have on the capital costs?Thanks. Tom Monter -----Original Message----- From:Jerry Spehar [mailto:Jes@heylpatterson.com] Sent:Thursday,March 27,2003 4:06 AM To:Tom.Monter@pes-world.com Subject:RE:Tom Tom 'This equipment is in not portable in any way.It is to be mounted on ibstantial cells,which I have never hear of being damaged by weather mditions.See attached drawing for a general idea of equipment size.It usually costs 30%of the cost of the equipment to erect,however I suspect costs will be higher in Alaska. Jerry Spehar Ph.724-743-1000 Fax 724-743-2850 Tom Monter From:James J.Wallaert (James@heylpatterson.com] Sent:.Tuesday,April 01,2003 9:04 AM :Tom.Monter@pes-world.com we jcowies@heyipatterson.com;Jerry Spehar Subject:CBU Unloader for Alaska Tom, Jerry is on vacation this week so I am pinch-hitting to answer his email.Theapproximateweightofthemachineis: Boom,including buckets,chain and bucket drive..............265,000# Trolley,including boom hoist and discharge chute.............145,000% Main structure,including conveyor and positioner.............425,000% The approx.erection man-hours are;Structural/mechanical.......cccc csc e reer cece cece nen cccsese '....8500 mhr Electrical.........cece eee meee eee e erect r ee ene st ee enseseees oee-2 3000 mhrShouldyouneedadditionalinformation,please call.Regards, Jim Wallaert Tom Monter _.From:James J.Wallaert [James@heyipatterson.com] "SSent:|Wednesday,April 09,2003 6:21 AM :Tom.Monter@pes-world.com 3 Jerry Spehar Subject:RE:CBU Unloader for Alaska Tom, Our estimate would be that 5-40ft containers would be required.They would contain the following parts:Handrail,walkway sections with grating,buckets with chain,drives,wire rope,overhead crane,electrical equipment .The remainder of the equipment would be break-bulk and would include the following parts;Trolley,Boom structure,boom hangers, Bucket drive,main structural box members,conveyor structure with idlers attached,maintenance crane. Our budget price would include delivery to Bethel,Alasaka. Jim Wallaert >>>"Tom Monter”<Tom.Monter@pes-world.com>04/08/03 03:21PM >>> Jerry, Do you have any idea of how many containers would be required for shipping the unloader?(40 foot containers I assume).Also how much cf the assembly would not be shipped in containers.Also I was told the FOB price was delivered in Alaska,which port or was that delivered to Bethel?Thanks. Tom Monter dated Original ,Message----- From:James J.Wallaert (mailto:James@heylpatterson.com] 'Sent:Tuesday,April 01,2003 9:04 AM 1:Tom.Monter@pes-world.com i:jcowles@heylpatterson.com;Jerry Spehar Subject:CBU Unloader for Alaska Tom, Jerry is on vacation this week so I am pinch-hitting to answer his email. The approximate weight of the machine is: Boom,including buckets,chain and bucket drive..........«2.2265,000% Trolley,including boom hoist and discharge chute............-145,0008%Main structure,including conveyor and positioner.....+.+.++..425,0008Theapprox.erection man-hours are;. Structural/mechanical..........eeecesees abe ecccceees veeseees-8500 mhr Electrical.....-sssseeeeseecseeseecececeess oseee seem ever senseese es o 3000mhr**: Should you need additional information,please call.Regards, Jim Wallaert Tom Monter From:James J.Wallaert (James@heyipatterson.com] 's Gant:Friday,May 30,2003 1:20 PM :Tom.Monter@pes-world.com :jcowles@heyipatterson.com:Jerry Spehar Subject:Re:A few CBU questions conceming foundations. Hello,Tom,Concerning your attached email of 5/28,the supply of our continuous bucket unloader is generally limited to the machine only--we specify the size,number and location of anchor bolts but the design of the foundations is by others.Thus,the pile caps and number of piles are based upon our loads but the pile number,length and arrangement is by others.The additional loads to be considered would be the impact loads imparted to the foundation by the machine and we recommend that this be at least 25%. The general drawings which we had earlier sent was a "bridge-type”machine with two support columns located inshore and two support columns located offshore.Indeed,we have built machines were all four columns are located inshore which is called a "cantilever- type"machine.The loads previous given for the bridge-type would NOT apply to thecantilever-type.We are not familiar with piling design and the time necessary to install them. Regards, Jim Wallaert >>>"Tom Monter”™<Tom.Monterépes-world.com>05/28/03 05:26PM >>> We have some more specific questions concerning the continuous barge un-loader and the required dock &Piling mounting. Are there additional loads that must be considered before building a mounting for this?What type of loads do the pilings need to support?Are there any special considerations for the pilings?in the un-loader have one side mounted on the shore or should it be totallyoffshore? Is one method of mounting the un-loader preferable?(Offshore or partlymountedonshore?) For the pilings,how are they installed?Are the pre-fabricated and sunk asawholeorinsections? How many man-hours do the pilings for the Un-loader take?Also,how much concrete is required for the pilings? Should the pilings be shielded in case a barge bumps into them? Tom Monter (208)772-4457 Precision Energy Services 10780 N Highway 95 Hayden Lake,ID 83835 Tom.monter@pes-world.com Tom Monter From:James J.Wallaert (James@heylpatterson.com}'Sent:Monday,June 02,2003 11:36 AM :Tom.Monter@pes-world.com :jcowles@heyipatterson.com:;Jerry SpeharSubject:RE:A few CBU questions conceming foundations. Tom,. We are indeed familiar with this photo/picture,as it is a rendering of a bargeunloaderproposedbyacompanyinRichmond,B.C..Seabulk Systems.-We worked with them onaproposalandtheboomandtrolleythatisshownisa*Heyl Patterson".The supportstructureandcatamaranweredevelopedbySeabulk. Jim Wallaert >>>"Tom Monter"™<Tom.Monter@pes-world.com>06/02/03 11:10AM >>> James, I have a couple more questions concerning the unloader.Since we have the ice breakup problem in Bethel,would it be possible to modify the design tofittheattachedpicture.This isa picture of a catamaran barge unloader.Aunloaderofthistypedoesn't need to be seaworthy,just be able to be moved to a slough during the winter to prevent damage by river ice.Since we have so many issues with river ice,an idea such as this would be preferrable. Please let me know what you think.If you can,quote me on the additional cost compared to the shore and piling mounted version.Thanks. Tom Monter HEYL PATTERSON emnt|oo ee ee ee gen teHEYL PATTERSON ATTACHMENT8 . MAN TAKRAF,Inc.MANTAKRAF APRIL 25.2003 7995 East Prentice Avenue Suite 211 Greenwood Village,Colorado 80111Telephone:303 770 8161 Facsimile:303 770 6307 E-mail:ghertei@takraf.comPRECISIONENERGYSERVICES. 10780 N.HIGHWAY 95 HAYDEN LAKE,ID 83835 Attn.Mr.Tom Monter Tel.:208 -772 -4457 SUBJECT:STACKING /RECLAIMING SYSTEMS POWER PLANT,FUEL STORAGE SYSTEM MAN TAKRAF REF.:P306 -01 Dear Mr.Monter. We refer to your E-mail inquiry dated April 10.2003,and comment /quote as follows: We could propose 2 systems suited for your application.One system consists of 2 individual machines,.1 x Stacker and 1 x Portal Reclaimer.The second system would beonecombinedBucketWheelStacker/Reclaimer. SYSTEM #1: 1 X Traveling Luffing Stacker 1 x Full Portal Scraper Reclaimer The Stacker and the Reclaimer operate independent of each other.While one pile is being stacked,the other pile can be reclaimed.Both machines are even able to work on one : pile,since the Reclaimer has a special control logic to reclaim sections out of a pile. Each machine has its own conveyor and its own set of rails. We attach data sheets for the Stacker and the Portal Reclaimer . SYSTEM #2: -1X Bucket Wheel Stacker /Reclaimer. Here we assumed that stacking and reclaiming would not happen at the same time.The Bucket Wheel Stacker/Reclaimer is a combined machine with a reversible boomconveyor.This machine requires only one set of rails and one yard conveyor,which is used for stacking and reclaiming.The yard conveyor is not reversible. Page 1 of 3 i)MAN TAKRAF,Inc.MAN TAKRAF The machine is also equipped with a bypass/splitter gate,which allows the material flowtobesplitifrequired. This gate can be set to: -100%Bypass -100%Stacking-Splitin certain percentages for stacking and bypass The reclaim rate of SOOMTPH is small as to what a Bucket Wheel can achieve,howeverthiscombinedStacker/Reclaimer is attractive in the overall cost.Besides the lower machine price,only one conveyor and 1 set of rails are required. Attached is a data sheet with major technical data. SYSTEM #3: Besides the above 2.systems,some special designs are also available,such as using a Portal Reclaimer and attach a tripper and a stacker boom to it.These are however very special designs,and need to be specifically engineered for this application. STORAGE VOLUME: We attach a preliminary storage volume calculation,showing that with the given pile dimensions,a storage capacity of only 86,600MT can be achieved.These pile dimensions also result in a pile height of approx.24m,which is very high for a coal pile.The internalpressurewiththepresenceofairpocketsinthepilecouldleadtoinstantaneous combustion.One way to avoid this is to compact the pile with dozers,however this woulddeformthepile,make it difficult to be reclaimed by a Portal Reciaimer. We would recommend not exceeding a 18m pile height without compacting. DRAWINGS /SKETCHES: We attach 2 sketches madein VISIO,showing plan views of system #1 and #2.We alsoattach2drawings,one showing a Stacker and a Portal Reclaimer operating on one pile,and the second one showing a typical Bucket Wheel Stacker/Reclaimer. PRICING: SYSTEM #1: STACKER: -approx.weight:154 MT -machine ex-works:$1.85 million -set of rails:$500,000.- -appr.Freight to Port of Export ine!.Export packing:$120,000.- -approx.erection man-hours:7,500 hrs. Page 2 of 3 MAN TAKRAF,Inc.MAN }TAKRAF PORTAL RECLAIMER:, -approx.weight:285 MT -machine ex-works:$3.2 million -set of rails:$480,000.- -appr.Freight to Port of Export incl.Export packing:$160,000.- -approx.erection man-hours:12,000 hrs. SYSTEM #2: BUCKET WHEEL STACKER /RECLAIMER: -approx.weight:450 MT -machine ex-works:$4.4 million -set of rails:$500,000.- -appr.Freight to Port of Export incl.Export packing:$190,000.- -approx.erection man-hours:17,000 hrs. Please note that the above pricing is budgetary only with an accuracy of plus /minus 15% Delivery time for each system is approx.12 --14 months. We hope that the information submitted is still helpful for your studies.Please do not hesitate to contact us in case of any questions. SINCERELY MAN TAKRAF Inc. \oianot S Hented | GERHARD T.HERTEL Page 3 of3 PRELIMINARY STORAGE CALCULATION CONSULTANT: CUSTOMER: REFERENCE: LOCATION: EQUIPMENT: KRI -REF.#: DATE: MATERIAL: DENSITY: ANGLE OF REPOSE: NUMBER OF PILES PILE WIDTH: PILE LENGTH: DISTANCE BETW.2 PILES PILE WIDTH =a PILE HEIGHT =h ANGLE OF REPOSE =b TAN.ANGLE ANGLE OF REPOSE - 'PILE LENGTH =L FL CR.SECT.LENG=L1 CONE LENGTH =L2 CROSS SECT.PILE=A CONE VOL.=CV FULL CROSS SECT,PILE VOL. TOTAL PILEVOL.=PV - PILE CAPACITY ACTUAL PILE CAPACITY REQUIRED TOTAL STORAGE LENGTH PRECISION ENERGY SERVICES POWER PLANT USA COAL HANDLING USA STACKING /RECLAIM SYSTEMS P 306 -01 APRIL 24,2003 US -SYSTEMCOAL .50.00 PCF38DEGREE 4 200 FT 584 FT 6 FT 200 FT 78 FT 38 DEGREE 0.78 FACTOR 584 FT 384 FT 200 FT 7,813 SOFT 817,746 CUBFT 3,000,137 CUBFT 3,817,882 CUBFT 95,447 ST 3,817,882 CUBFT 137,787 ST 5,511,464 CUBFT 2,354 FT 61 24 38 0.78 178 17 61 726 23,168 84,954 108,122 86,600 108,122 125,000 156,065 17 M M DEGREE FACTOR CUBM 'MAN TAKRAF,,Inc.MAN TAKRAF MAY 21.2003 7995 East Prentice Avenue Suite 211 Greenwood Village,Colorado 80111Telephone:303 770 8161 Facsimile:303 770 6307 E-mail:ghertel@takraf.comPRECISIONENERGYSERVICES 10780 N.HIGHWAY 95 HAYDEN LAKE,ID 83835 Attn.Mr.Tom Monter Tel.:208 772 -4457 SUBJECT:BUCKET WHEEL STACKER/RECLAIMER POWER PLANT BETHEL,ALSKA,FUEL STORAGE _.MAN TAKRAF REF.:P306-01 Dear Mr.Monter. We refer to your E-mail dated May 15.2003,and comment as follows: 1.AVAILIBILITY: . We unfortunately do not have a data collection on operating Bucket Wheel Machines regarding the availability of these machines.Customers are not too keen to share theseintemaloperatingdata. We developed the availability factor of 95%based on the lifetimes of the mechanical and electrical components,the replacements during warranty and the spare parts ordered. This factor of 95%includes the operating time of the machine.The regular maintenance is not included in this figure.This factor is also based on proper maintenance being performed on a regular base.To give you an idea on the kind of maintenance,|attach a very general maintenance schedule.The time listed in each single category is for checking,lubrication,cleaning,etc.The time required for possible repairs is not included. 2.BELT SCHEME: The standard Bucket Wheel Stacker/Reclaimer operates with a non-reversible yardconveyor.The yard conveyor is looped around a tripper connected to the Bucket Wheel Machine.A diverter gate is installed undemeath the tripper discharge pulley,to direct the coal either onto the boom conveyor for stacking,or into a bypass chute system discharging the coal back onto the yard conveyor.When replacing this diverter gate with a splitter gate,the material flow could also be split in certain percentages between stacking to the pile and discharging back to the yard conveyor. Page 1 of 3 MAN TAKRAF,Inc.MAN TAKRAF A reversible yard conveyor is used when the reclaimed coal has to be conveyed back tothetransfertower.In this case the Bucket Wheel tripperis provided with it's own conveyor,and a collapsible tripperis locatedin the yard conveyor. When stacking,the tripper in the yard conveyor will discharge the coal onto the tripperconveyorandthentotheboomconveyor. When reclaiming,the tripper in the yard conveyor will be collapsed.Coal will bedischargedfromtheboomconveyor(reverse direction)directly onto the yard conveyor.The yard conveyor will be reversed. For better understanding |attach a sketch showing a Bucket Wheel Machine with a standard tripper,and a sketch showing a Bucket Wheel with a tripper conveyor and a collapsible yard conveyor tripper.Another sketch shows more details on thetripper/conveyor and the collapsible tripper. In all above cases only one yard conveyor is used. To have a redundant system,at least in the reclaim mode,a second parallel yard conveyor could be installed.On the Bucket Wheel Machine we would provide a chute system,allowing the reclaimed coal to be discharged to either conveyor.With this scheme you would have a redundant reclaim system,the stacking would still be based on one conveyor.. 3.TOWER HEIGHT: . As mentioned in my e-mail dated May 14,this machine would have a mast with a top elevation of approx.30m above top of rail.It is definately possible to reduce this height by using a different design,however this would require a detailed layout and some engineering. 4.DIFFERENT BUCKET WHEEL SYSTEM: This is just for your information.When |discussed your project in Germany with our engineers,they came up with another scheme.This is a circular storage system using a Bucket Wheel Stacker/Reclaimer.The machine has a pivot point where the yard conveyorends,andis traveling on a curved rail to built a kidney shaped pile.Through the slewingbucketwheelboom,any position in the pile can be reached. Let me know if thisis of interest to you. Page 2 of3 MAN TAKRAF,Inc.MAN TAKRAF We hope that the information submittedis helpful for your studies.Please do not hesitate to contact us in case of any questions. SINCERELY MAN TAKRAF Inc. \oriearat S.fenteZ- GERHARD T.HERTEL Page 3 of 3 PRELIMINARY MAINTENANCE CHECKLIST BUCKET WHEEL STACKER/RECLAIMER COMPONENT CHECK FOR DAILY VISUAL SYSTEM RUNNNING WEEKLY VISUAL SYSTEM RUNNING MONTHLY CHECK SYSTEM STOPPED MECHANICAL COMPONENTS ICLERS "NOISE [PROPERLY ROTATING p<][<)>>|badelPEDe)Dd]jadiIo]Jln]taaeta!|JbadWEYOR ORIVE ASSEMBLY SLEW ORUVE ASSEMBLY pstadLEVEL GREASE CONTAINER belted|PROPER FUNCTION [TRaveL DRIVE ASSEMBLY NOISE OlL LEVEL ALIGNMENT PROPER FUNCTION [rraver WHEELS NOISEONBEARINGSWHEELWEAR PROPERLY GREASED PIVOT POINTS EQUALIZER,BOGIES PROPERLY GREASED WEAR pxhepeil\.p<aLJ[9¢io<]><)veiatidel[BUCKET WHEEL DRIVE ASSEMBLY NOISE iOIL LEVEL ALIGNMENT hePROPER FUNCTION IBUCKET WHEEL BEARINGS NOISE tad1PROPERLY GREASED Page1of2 Above hours cover checking,cleaning and lubricating only.Maintenance,repeirs,repsicements,etc,are not included. Page 202 DAILY VISUAL T -WEEKLY VISUAL |MONTHLY CHECK |ANNUALCOMPONENTCHECKFORSYSTEM CHECK _RUNNNING |SYSTEM RUNNING]SYSTEM STOPPED |SYSTEM STOPPED \ =Ad BUCKETS WEAR x x [UNERS IN PLACE x 7 TRANSFER CHUTES WEAR ON LINERS x X ,MATERIAL BLOCKAGE x x -- CORRECT POSITION x 5ISPUTTERGATE[PROPER FUNCTION xWEARxra CORRECT POSITION x x RAL CLAMPS [PROPER FUNCTION x x ;ALIGNMENT - x [SEARING NOISE %xFANNOISExxJELECTRICALMOTORSALIGRRGENTTz PROPER OPERATION x ;x "4 x X x x x.x x x _x x x Xxmax Xx x x x x "x PROPER MOUNTING x x[LOCAL P.8.STATIONS PROPER FUNCTION x *Fhnceeeeatetuneernetenannsunenmaaynanna |a ey[CABLE /WARE TERMINATIONS IPROPERLY CONNECTED %x T -- [PERSONNEL /TIME REQUIRED -HRS:HRS HRS HRS OPERATOR {-*« ELECTRICIAN -2 )3MECHANIC."4 8 18 NOTE: MAN TAKRAF,INC, SERVICE REPRESENTATIVE COMMISSIONING ENGINEER AT THE CUSTOMER'S REQUEST,MT]WILL FURNISH THE SERVICES OF A COMPETENT SERVICEENGINEER,BASED ON THE FOLLOWING FEE SCHEDULE. THE CHARGE PER CALENDAR DAY,WHICH INCLUDES TRAVELING IS COST FORA SERVICE ENGINEER $1,200.00 PER 8 HOUR DAY/CALENDAR DAY,BASEDONA40 HOUR WORK WEEK(EXCLUDING ALL LOCAL TAXES ) . $150.00 PER HOUR THE MINIMUM CHARGE WILL BE AN 8 HOUR DAY(EXCLUDING ALL LOCAL TAXES } OVERTIME WILL BE CHARGED AS FOLLOWS 150%:FOR EACH ADDITIONAL HOUR OVERTIME PER OAY(EXCEEDING 8 HRS.PER DAY,MONDAY THROUGH FRIDAY,AND ALL SATURDAY)175%FOR ALL SATURDAYS,SUNDAYS AND HOLIDAYS SUITABLE HOTEL ACCOMMODATION,EXPENSES AND TRAVELING WILL BE AT THE ACTUAL INCURRED COST.(30 CENTS PER MILE FOR COMPANY OR PRIVATE AUTOMOBILE,RENTAL CAR INCLUDING GASOLINE AT ACTUAL COST).DOMESTIC AIR TRAVEL WRL BE IN COACH,OVERSEAS AIR TRAVEL WILL BE IN BUSINESS CLASS. LIVING ALLOWANCE WILL BE CHARGED AT A FIXED RATE OF $50.OO/PER CALENDAR DAY,INCLUDINGTRAVELDAYS. COST OF TELEPHONE CALLS,INTERNET SERVICE,TELEFAXES,ETC.WILL BE INVOICED AS PER ACTUALS. AFTER EVERY THREE MONTHS STAY ON SITE,SERVICE REPRESENTATIVEISENTITLEDTO ONE TRIPHOME.AIRFARE TO BE PAID BY CUSTOMER. THE CUSTOMER IS TO MAKE ALL PREPARATIONS IN SUCH AWAY THAT MTi SERVICE PERSONNELMAYCOMMENCEWORKANDPROCEEDWITHOUTDELAY. SINCE THE PER DIEM CHARGE DOES NOT COVER THE COST OF INSURING AGAINST THE RISK AND HAZARDS INVOLVED IN PROVIDING THIS SERVICE,THE CUSTOMER AGREES TO HOLD MTI FREE ANDHARMLESSAGAINSTALLCLAIMSANDACTIONSCONNECTEDWITHORARISINGOUTOFANYACTOROMISSIONOFSUCHPERSONINPERFORMINGSERVICESHEREUNDER. MTI WILL PROVIDE PURCHASER WITH EVIDENCE OF WORKER'S COMPENSATION INSURANCE ”COVERAGE,IN ACCORDANCE WITH THE LAWS OF THE STATE WITHIN THE USA UNDER WHICH SUCHCOMPENSATIONISPAYABLE,OR EMPLOYER'S LIABILITY INSURANCE TO PROTECT MTI REPRESENTATIVE.MT!WILL ALSO PROVIDE EVIDENCE OF GENERAL LIABILITY INSURANCE AND AUTOMOBILE INSURANCE COVERAGE AS NEEDED. ACCEPTANCE OF THE ABOVE TERMS FOR FIELD SERVICES SHALL CONSTITUTE AN AGREEMENT INDEPENDENT OF,AND SEPARATE FROM ANY CONTRACT TO FURNISH AND SELL EQUIPMENT. PAYMENT FOR SUCH SERVICES SHALL BE MADE WITHIN TWENTY (20)DAYS OF DATE OF INVOICE. THE ABOVE STATED RATES ARE SUBJECT TO CHANGE Rev.0643 : MAN TAKRAF,INC. SERVICE REPRESENTATIVE ELECTRICAL/CONTROLS /INSTRUMENTATIONSITEADVISOR AT THE CUSTOMER'S REQUEST,MTI WILL FURNISH THE SERVICES OF A COMPETENT SERVICE ENGINEER,BASED ON THE FOLLOWING FEE SCHEDULE. THE CHARGE PER CALENDAR DAY,WHICH INCLUDES TRAVELING !S COST FOR ASERVICE ENGINEER:$1,080.00 PER 8 HOUR DAY/CALENDAR DAY BASED ONA40 HOUR WORK WEEK(EXCLUDING ALL LOCAL TAXES ) $135.00 PER HOUR THE MINIMUM CHARGE WILL BE AN 8 HOUR DAY (EXCLUDING ALL LOCAL TAXES ) OVERTIME WILL BE CHARGED AS FOLLOWS: 150%:FOR EACH ADDITIONAL HOUR OVERTIME PER DAY (EXCEEDING 8 HRS.PER DAY,MONDAY THROUGH FRIDAY,AND ALL SATURDAY) 175%:FOR ALL SATURDAYS,SUNDAYS AND HOLIDAYS SUITABLE HOTEL ACCOMMODATION,EXPENSES AND TRAVELING WILL BE AT THE ACTUAL INCURRED COST.(30 CENTS PER MILE FOR COMPANY OR PRIVATE AUTOMOBILE,RENTAL CAR INCLUDING GASOLINE AT ACTUAL COST).DOMESTIC AIR TRAVEL WILL BE IN COACH,OVERSEAS AIR TRAVEL WILLBEINBUSINESSCLASS. LIVING ALLOWANCE WILL BE CHARGED AT A FIXED RATE OF $50.00/PER CALENDAR DAY,INCLUDING TRAVEL DAYS. COST OF TELEPHONE CALLS,INTERNET SERVICE,TELEFAXES,ETC.WILL BE INVOICED AS PER ACTUALS. AFTER EVERY THREE MONTHS STAY ON SITE,SERVICE REPRESENTATIVE IS ENTITLED TO ONE TRIP HOME.AIRFARE TO BE PAID BY CUSTOMER. THE CUSTOMER IS TO MAKE ALL PREPARATIONS IN SUCH A WAY THAT MTI SERVICE PERSONNEL MAY COMMENCE WORK AND PROCEED WITHOUT DELAY. SINCE THE PER DIEM CHARGE DOES NOT COVER THE COST OF INSURING AGAINST THE RISK AND HAZARDS INVOLVED IN PROVIDING THIS SERVICE,THE CUSTOMER AGREES TO HOLD MTI FREE AND HARMLESS AGAINST ALL CLAIMS AND ACTIONS CONNECTED WITH OR ARISING OUT OF ANY ACT OR OMISSION OF SUCH PERSON IN PERFORMING SERVICES HEREUNDER. MT]WILL PROVIDE PURCHASER WITH EVIDENCE OF WORKER'S COMPENSATION INSURANCE COVERAGE,IN ACCORDANCE WITH THE LAWS OF THE STATE WITHIN THE USA UNDER WHICH SUCH COMPENSATION IS PAYABLE,OR EMPLOYER'S LIABILITY INSURANCE TO PROTECT MTI REPRESENTATIVE.MT!WILL ALSO PROVIDE EVIDENCE OF GENERAL LIABILITY INSURANCE AND AUTOMOBILE INSURANCE COVERAGE AS NEEDED. ACCEPTANCE OF THE ABOVE TERMS FOR FIELD SERVICES SHALL CONSTITUTE AN AGREEMENT INDEPENDENT OF,AND SEPARATE FROM ANY CONTRACT TO FURNISH AND SELL EQUIPMENT. PAYMENT FOR SUCH SERVICES SHALL BE MADE WITHIN TWENTY (20)DAYS OF DATE OF INVOICE. THE ABOVE STATED RATES ARE SUBJECT TO CHANGE Rev.0503 MAN TAKRAF,INC. SERVICE REPRESENTATIVE MECHANICAL/STRUCTURAL SITE ADVISOR AT THE CUSTOMER'S REQUEST,MTI WILL FURNISH THE SERVICES OF A COMPETENT SERVICE ENGINEER,BASED ON THE FOLLOWING FEE SCHEDULE. THE CHARGE PER CALENDAR DAY,WHICH INCLUDES TRAVELING IS: COST FORASERVICE ENGINEER:$960.00 PER 8 HOUR DAY/CALENDAR DAY. BASED ON A 40 HOUR WORK WEEK (EXCLUDING ALL LOCAL TAXES ) $120.00 PER HOUR THE MINIMUM CHARGE WILL BE AN 8:HOUR DAY (EXCLUDING ALL LOCAL TAXES ) OVERTIME WILL BE CHARGED AS FOLLOWS: 150%:FOR EACH ADDITIONAL HOUR OVERTIME PER DAY (EXCEEDING 8 HRS.PER DAY,MONDAY THROUGH FRIDAY,AND ALL SATURDAY) 175%:FOR ALL SATURDAYS,SUNDAYS AND HOLIDAYS SUITABLE HOTEL ACCOMMODATION,EXPENSES AND TRAVELING WILL BE AT THE ACTUAL INCURRED COST.(30 CENTS PER MILE FOR COMPANY OR PRIVATE AUTOMOBILE,RENTAL CAR INCLUDING GASOLINE AT ACTUAL COST).DOMESTIC AIR TRAVEL WILL BE IN COACH,OVERSEAS AIR TRAVEL WILL BE IN BUSINESS CLASS. LIVING ALLOWANCE WILL BE CHARGED AT A FIXED RATE OF $50.00/PER CALENDAR DAY,INCLUDING TRAVEL DAYS.COST OF TELEPHONE CALLS,INTERNET SERVICE,TELEFAXES,ETC.WILL BE INVOICED AS PERACTUALS. AFTER EVERY THREE MONTHS STAY ON SITE,SERVICE REPRESENTATIVE !S ENTITLED TO ONE TRIP HOME.AIRFARE TO BE PAID BY CUSTOMER. THE CUSTOMER IS TO MAKE ALL PREPARATIONS IN SUCH A WAY THAT MTI SERVICE PERSONNEL MAY COMMENCE WORK AND PROCEED WITHOUT DELAY. SINCE THE PER DIEM CHARGE DOES NOT COVER THE COST OF INSURING AGAINST THE RISK ANDHAZARDSINVOLVEDINPROVIDINGTHISSERVICE,THE CUSTOMER AGREES TO HOLD MTI FREE AND HARMLESS AGAINST ALL CLAIMS AND ACTIONS CONNECTED WITH OR ARISING OUT OF ANY ACT OR OMISSION OF SUCH PERSON IN PERFORMING SERVICES HEREUNDER. MTI WILL PROVIDE PURCHASER WITH EVIDENCE OF WORKER'S COMPENSATION INSURANCE COVERAGE,IN ACCORDANCE WITH THE LAWS OF THE STATE WITHIN THE USA UNDER WHICH SUCH COMPENSATION IS PAYABLE,OR EMPLOYER'S LIABILITY INSURANCE TO PROTECT MT1 _REPRESENTATIVE.MTI WILL ALSO PROVIDE EVIDENCE OF GENERAL LIABILITY INSURANCE AND AUTOMOBILE INSURANCE COVERAGE AS NEEDED. ACCEPTANCE OF THE ABOVE TERMS FOR FIELD SERVICES SHALL CONSTITUTE AN AGREEMENT INDEPENDENT OF,AND SEPARATE FROM ANY CONTRACT TO FURNISH AND SELL EQUIPMENT. PAYMENT FOR SUCH SERVICES SHALL BE MADE WITHIN TWENTY (20)DAYS OF DATE OF INVOICE. THE ABOVE STATED RATES ARE SUBJECT TO CHANGE Rav.05/03 PLANVIEW BUCKET WHEEL STACKER /RECLAIMER SYSTEM #2 SLEWING 800mGUOGTWes.\_I -,{| s<_s00m SLewnaeae : a7PILE#1 bP .. gees woe ee ce ce ne ee oe po a gl ee mee ame omeseein coe ee om URN Oe eS oe==15-__-aan <a -' GUCKET WHEELSTACKER/RECLAIMER file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\PLANVIEW.SY..7/7/2003 PLANVIEW STACKER /PORTAL RECLAIMER SYSTEM #1 STACKER vA 1 -s por ae ee aa euCEER fete SIND CAD GALLE TE ET OS HUEY SOD SED MAY QUEERS GF GEES ame mee om - oo ek RECLAReSCROPERCad a PILE #1 | ee f -- PORTAL RECLAIMER MAN TASPAF ,Inc.APRIL2S.203 file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\PLANVIEW.SY...7/7/2003 (7 eeeaegee=CEeeGEOYDo CTR,RECLAIM CONVEYOR #2 - |Now . , \, 5 3 ploss oe | ito f !\|eeoeeeoeLL -ael.eniL/ r /4 5a)!i VOSteHLONSTTIa |Sr é 7171/2003file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\REV-LAYOUT.... PROPOSED LAYOUT CROSS SECTION TOTAL WETH 268 ; an !wen an WER a2R RECZAM CONVEYOR #9 STAQKNG ContVEYOR RECLAIMCONE YOR 82//f PILE #1 PILE #2 me / t file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\REV.LAYOUT....7/7/2003 CONVEYOR ARRANGEMENT UNDERNEATH BUCKET WHEEL STACKER/RECLAINER CONVEYOR#1:60"WIDESTACKING&SRECLAIM CONVEYOR#2:60"WIDERECLAIMONLY a J i ,| ;;SLEW BEARING f-- i To CONVEYOR #1 TRAVEL TRUCKS>a Loe [rele lre|oe |'o*e '--!wer H - [a "| 'i ' MAN TAKRAF.Inc.MAY 27.2003GTH file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\DUAL.CONV.A...._7/7/2003 RAILS , a Dual Yard Conveyor Reclaiming Yard Conveyor #1  100 %3 MAN TAKRAF,inc, MAY 21.2003 GTH YARD CONVEYOR rz YARD CONVEYOR #1 file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\DUAL.CONV R...7/1/2003 a >Dual Yard Conveyor Reclaiming Yard Conveyor #1 -100 Sq . MAN TAKRAF,inc.MAY 21.2003GTH| file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\DUAL.CONV.R.7/7/2003 Reclaiming Yard Conveyor #2 | ; i|)>Dual Yard Conveyor t % 100% MAN TAKRAF.inc.MAY 21.2003 GTH file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\DUAL.CONVR....7/7/2003 Stacking 100%"a >Dual Yard Conveyor ' A!100 %>3 a 4 4 4 $ t .J YARD CONVEYOR (2 YARO CONVEYOR MAN TAKRAF,Inc. .'MAY 21.2003 'GTH file//C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\DUAL.CONV.S.7/7/2003 a fia Dual Yard Conveyor 'Stacking 50% f , :Bypass 50% ' "* _A So 36 aa 120% ig |TRPPER: t ' .i] ': ,tYARDCONVEYOR#2 YARD CONVEYOR#1 MN on oDDsinc GTH file//C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\DUAL.CONV.S.7/7/2003 Bypass 100% .A {a ™Single Yard Conveyort T t 1 ' t t ? , i] 1 '' t Ly 1 i] i]' 1100 % (] 1 J 'PN srrreni i an i] t 'MAN TAKRAF,Inc. iH MAY 21.2003 'GTH YARD CONVEYOR Gile://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\SING.CONV.B..7/1/2003 Reclaiming 4 t 't '1-™Single Yard Conveyor ' , -400 %3 j t é 'J 4 .$100 %H ' LJ LJ aPh srereerH 5 . ' . 4 _MAN TAKRAFIne.;MAY 21.2003HGTH YARD CONVEYOR file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\SING.CONV.R.7/7/2003 RAILS i i §2_-oN Single Yard Conveyor Stacking 100% : t 3 t § : $ ' 2 A 100 %™ =ws i] +100 % ' 1 - '8 a |> , e a ' MAN TAKRAF,inc. MAY 21,2008 GTH :YARD CONVEYOR file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\SING.CONV.ST....7/7/2003 RAILS4(]'1 oN Single Yard Conveyor 4 1 Stacking 50% 'Bypass 50%60% ry 60%>: '400% 1 a ' ' ' 'MAN TAKRAF,inc. MAY 24.2003 GTH - YARD CONVEYOR file://C:\Documents%20and%20Settings\tmonter\Local%20Settings\Temp\SING.CONV.ST...7/7/2003 { CONSULTANT: CUSTOMER:_ REFERENCE:ILOGATION:(EQUIPMENT:MTl-REF.#. DATE:SCOPE: MATERIAL DATA MATERIAL: DENSITY: MOISTURE: LUMP SIZE: ANGLE OF REPOSE: STOCKPILE DATA __ STORAGE CAPACITY PER PILE (REQUIRED ) STORAGE CAPAGITY PER PILE (ACTU: NUMBER OF PILES: PILE WIDTH: PILE LENGTH: PILE HEIGHT: | TOTAL STORAGE LENGTH: RECLAIM CAPACITY (NOMINAL )_ ISTACKING CAPACITY (NOMINAL ) fo (INTO FLOW) RAIL GAUGE:aoeghrmenented"|IPOWER PLANTUSA COAL HANDLING USA - STACKER as P 306-01 a a _JAPRIL24.2003 |DL[DESIGN +SUPPLY Me Poe .o US -SYSTEM i METRIC COAL f=_COAL aE Bes 50.00 _PCF 70.80 -_TM3 6.00 %6.00 _% 2.00 INCH 50.60.|.MM |. 37.00 DEGREE 37.00:__|DEGREE 137,787 ST ;___125,000 __MT:. 5,511,464-CUBFT 156,065 CUBM We95,447 ST 86,600 MT3,817,880 _CUBFT 108,122 CUBM fs 7 200 C61 M J 584 |178 <M |78 '24 mM _'2,354 i 717 "_M _{851 STPH 500 "MTPH _|2,205 STPH 2,000 MTPH traveling Into]2,194 MTPH |yard _il conveyor _|26 8 Mu FT 4G [yFT50[") "INCH +524 Mad "FPM 3 MAEC MA MalCINCHTCateINCHate <eeeeete cuneate ceveeamnet HYDRAULIC o DEGREE 1 od3 42 woe, ELECTRO=MECHANK80 we 10 MOTOR RATING!_""18 BUCKET WHEEL -- KET WHEEL DIAMETER --i146 FT =ICKET WHEEL SPEED :406 hou 4.06 me mrssif {BUCKET VOLUME .17.66 |CUBFTNUMBEROFBUCKETS5 !_BUCKETDISCHARGES_20 IT MIN BUCKET WHEEL DRIVE.ce NUMBER OF MOTORS <r wee MOTOR RATING 100 _ HP : TRAVEL DRIVE reer |TYPEOF DRIVE ELECTRO-MECHANICAL Ware OPERATING TRAVEL SPEED 7800 FPM _MMIN NUMBER OFWHEELS MACHINE 32:Renee HEREOF DRIVEN:16 NUMBER OF WHEELS TRIPPER 8 HEREOF DRIVEN 6 _[WHEEL DIAMETER 24 INCH 610 TOTAL TRAVEL DISTANCE:|2,354 FT tif TRAVEL DRIVE STE =NUMBEROF MOTORS|'16 i |BAS ___._MOTOR RATING 75 HP rae Be RAIL CLAMPS :TTNUMBEROFRAILCLAMPS2eeSe ESE TYPE OF ACTUATION:HYDRAULIC:[RYBRADCIC "MOTOR RATING 5 a Ueto OPERATOR'S CABIN LEVELLING PE ka TYPE OF DRIVE HYDRAULIC.HYDRAULIC |_|...3 LEVELLING RANGE 2718 T0418 DEGREE " -18TO+18 |OEGREE| :”HYORAULIC PUMP DRIVE ae oe eT "NUMBER OF MOTORS i 8 Dee __,MOTOR RATING 5 HP:ft kW: TIP OF BOOM SKIRTBOARD RAISE/LOWER .ee ee TYPE OF DRIVE |HYDRAULIC PO RYDRAUOe To FED FROM SAME HYDRAULIC UNIT AS CABIN LEVELLING aa ee GENTER CHUTE SKIRTBOARD RAISE /LOWER _TYPE OF DRIVE ; HYDRAULIC HYDRAULIC PUMP DRIVE ||ee-_NUMBEROFMOTORS[=11 ee ___.__MOTOR RATING,3 :MISCELLANEOUS ITEMS a -BELT SCALE IN BOOM CONVEYOR _[_ TOTAL INSTALLED POWER |§60 MAXIMUM OPERATING POWER 480 GENERAL INFORMATION /DATA TRAVELING,LUEFING:STACKER.CONSULTANT:PRECISIONENERGY SERVCUSTOMER:_REFERENCE: eee tc aero 7[POWER PLANT USA _ LOCATION:...:” EQUIPMENT: MTl-REF.#:°TAPRIL 24,2003 7=[DESIGN +SUPPLY_is:an MATERIAL:GOAL DENSITY:50.00-0.80 6.00 -8.00 aMOISTURE:WeeSIZE:2.00 50.80.| ANGLE OF REPOSE:Bs te . "84aseindemandeassesses 37.00 >."(=37.00 STOCKPILE DATA ziSTORAGECAPACITYPERPILE(REQUIRED )_"37.787 25,000 t- 5,511 464:156,065STORAGECAPACITYPERPLE(ACTUALY 95,447 eee sre "3817,850 86,600408,122 | 4NONBEROFPRESSSerenErecaror200 4 0 61 584 78 178 24 ST 2,354 =MACHINE DATA SSRN AGENERAL_2,000 2418 -2,104 GANTRY SUPPORTING CONCEPT: [RAIL GAUGE:20 | "BOOM CONVEYOR BELT WIDTH:60 BELT SPEED:__ __ 620 LOCATION DRIVE PULLEY:TAIL LOCATION TAKE UP PULLEY:*TAILCENTERDISTANCEPULLEYS:[140DISCH.PULLEY TO BOOM.PIVOT;130:DISCH.PULLEY DIAM:,24 DISCH,PULLEY FACE WIDTH:c 66 DRIVE PULLEY DIAM.;24 * DRIVE PULLEY FACE WIDTH:2 66 CONVEYOR LIFT AT HIGHEST POSITION:40 BOOM CONVEYOR DRIVE eae NO.OF MOT 1 MOTOR RA)150 BOOM HOIST eee BOOM HOIST SYSTEM:HYDRAULIC [02 ee BOOM HIGHEST POSITION: BOOM LOWEST POSITION: BOOM LUFFING SPEED/BOOM TIP:. HYDRAULIC PUMP DRIVE x ; .NO.OF MOTORST a MOTOR RATING.4@- TRAVEL DRIVE OPERATING TRAVEL SPEED:REPOSITIONING TRAVEL SPEED:NO.OF WHEELS STACKER: HEREOF DRIVEN: NO.OF WHEELS TRIPPER. HEREOF DRIVEN:z WHEEL DIAMETER:24 REQUIRED SIZE OF RAILS 171 3-POINT TOTAL TRAVEL DISTANCE:os 2554 |rl. TRAVEL DRIVE.NO.OF MOTORS!._-.4 INSTALLED POWER _."HP [MAXIMUM OPERATING POWER "S22 260 HP.KW GENERAL INFORMATION /DATA _PORTAL RECLAIMER,SINGLE ARM,WITH BENT CHAIN OUTDOOR APPLICATION,TYPE VP =1BNT. CONSULTANT:PRECISION ENERGY SERVICESCUSTOMER:POWER FLANT USA ___|REFERENCE:COAL HANDLINGLOCATION:USA ||EQUIPMENT:A-FRAME PORTAL RECLAIMER TYPE;VP-1/BENT MTl-REF.4 P305-61 [| | DATE:APRIL 25.2003SCOPE:DESIGN+SUPPLY US -SYSTEM METRIC MATERIAL DATA : MATERIAL:COAL COAL.DENSITY:VOLUME;50.00 PCF:0.80 "TIM3 _LOAD 50.00 PCF 0.80 TM3MOISTURE:6.00 %|.6.00 % LUMP SIZE: |2.00 INCH |50.80 MM ANGLE OF REPOSE MAXIMUM 40,00 _|DEGREE|40.00__|DEGREE ANGLE OF REPOSE MINIMUM 36.00 DEGREE|36.00 |DEGREEANGLEOFREPOSE;USED 37.00 |DEGREE|37.00 |DEGREE _.STOCKPILE DATA | STORAGE CAPACITY PER PILE REQUIRED 137,787 ST 125,000 |MT |5,511,464 |CUBFT |156,065 |CUBMSTORAGECAPACITYPERPILEACTUAL95,447 ST 86,600 MT3,817,880 |CUBFT |108,122 |.CUBM NO OF PILES:4 4 PILE WIDTH (ACTUAL ):200 FT 61 M PILELENGTH:584.FT.17B M PILE HEIGHT;78 FT 24 M TOTAL STORAGE LENGTH:.2,354 FT 7 M ,St |SPH,200.STPHoa|FTt ; |GHAIN SPEED:at t "FemJRECLAIMBOOMLENGTHFROMPIVOT(CTR.SPR }re 2LENGTHINCLINEDSECTION(CTR.SPROCKET)46 er AECL.FLIGHT DIMENSIONS: ;I { LENGTH,7 =-HEIGHT)14 TOTAL SYSTEMOPERATINGLOAD |48000 |.TOTAL OPERATING LOAD PER STRAND |"83000,fCHAINBREAK.STRENGIWSTRANO :. CHAIN BREAK.STRENGTH SAFETY FACTOR TYPE OF CHAIN ___ROLLERCHAN, CHAIN PITCH .;__12.00 INCH :SCRAPER FLIGHT CENTER DISTANCE _-_|3860,"INCH | NUMBER OF MOTORS 1 ;vege agewie ae MOTOR RATING)250,uP ._HOIST RECLAIM BOOM : BOOM HOIST TYPE |ROPE : BOOM TIP SPEED REPOSITIONING ["35.60 fPM SOOM TIP SPEED OPERATING -L368"FPM BOOM LOWEST POSITION Q "DEGREE:"BOOM HIGHEST POSITION 4200 'DEGREE REPOSITIONING SPEED DRIVE oe , {NO.OF MOTORS,|:: OPERATING SPEED DRIVE _: NO.OF MOTORS i . -t >.OP wit&2a?gia|[eei-|333ri --REPOSITIONING SPEED 26 FPM ____MMIN OPERATING SPEED vee es TO FROM ANGLE OF REPOSE DOWN TO _.8 DEGREE DEGREE|"': TRAVEL SPEED[:6 FPM =x.)M/MINTRAVELSPEEDLOWERPILEPORTION|-s 3 "FPM «37 MIMIN .INO.OF WHEELS TOTAL:16 ae a Gee HEREOF DRIVEN:__8_-_WHEELSPERCORNERIA-SIDE:2 iWHEELSPERCORNER2ZA-SIDE:==-a)eeWHEELSPERCORNER1B-SIDE: .A oe. WHEELS PERCORNER2B-SIDE;1 marae NO.OF SINGLE WHEEL TRUCKS:=>os Rear ee NO.OF TWO WHEEL BOGIES:a Ee ee TOTAL TRAVEL DISTANCE:_2,354 FT MAINTENANCE BAY:el EP TRAVEL ORIVE REPOSITIONING -s NUMBEROF MOTORS!|...8.So , MOTOR RATING Fe"),8:"HP. TRAVEL DRIVE OPERATING oe .ESE a NUMBER OF MOTORS!Ee ee _MOTOR RATING[.=>4 HP INSTALLED POWER _ 390.00 HP MAXIMUM OPERATING POWER 330.00 "HP 250.00 Tom Monter From:Gerhard Hertel [ghertel@takraf.com]Sent:Friday,June 27,2003 2:57 PM . To:Tom MonterSubject:RE:STACKING /RECLAIMING SYSTEMS COMMISSIONING.E EL.CONTR.INSTR.A MECHAN.ADVISOR. : ' NGINEER.doc DVISOR.doc doc Dear Mr.Monter. Let's assume the installation of this machine takes 4 months.We would-recommend to have one mechanical /structural advisor on site during the entire erection period.One electrical site advisor would be required for 3 months.In addition to these 2 advisors one commissioning engineer is required for the testing,dry run,wet run and acceptance test of the machine,which should take another S weeks.Supplier representatives for the hydraulic system,VFD drives,etc.should also be on site when required.The daily costs of these specialist is around US$1,500.-per day. I attach MAN TAKRAF's site personnel rates which will be charged for each day on site.In addition there will be cost for lodging,rental car,meals,air fare and miscellaneous expenses,which we would charge at actual costs. Since I do not know the pricing structure in Alaska I cannot give you a lump sum price.I can follow up with a lump sum price if you can give me average costs for:Hotel -Rental car -meals. BEST REGARDS GERHARD T.HERTEL =----Original Message----- From:Tom Monter (mailto:Tom.Monter@pes-world.com] Sent:Thursday,June 26,2003 12:24 PM To:Gerhard Hertel , Subject:RE:STACKING /RECLAIMING SYSTEMS Mr Hertel, What would the supervisory Services cost for a bucket wheel stacker-reclaimer while it was being installed?I'm just looking to get a estimate for the final writeup on this alaska project.Thanks. Tom Monter Precision Energy Services Tom Monter From:Gerhard Hertel (ghertel@takraf.com]Sent:°Friday,June 27,2003 2:33 PM To:Tom MonterSubject:RE:STACKING /RECLAIMING SYSTEMS Dear Mr.Monter.It is very difficult to provide a yearly parts cost for the Bucket Wheel machine.In the first 2 years for instance,you should not have any need forpartsexceptthenormallubricationmaterialsuchasgrease,reducer oil, hydraulic fluid,etc.However for emergency you should have certain parts available.We usually split them in Commissioning parts,Parts for 2 years of operation and Insurance parts.Commissioning parts usually consist of PLC parts,some electrical field devices and some idlers.Parts for 2 years of operation usually include electrical /controls and instrumentation parts, some idlers,some seals and gaskets for reducers and hydraulic systems.The insurance parts contain a complete set of reducers,belting,travel wheels, hydraulic unit,hydraulic cylinder,motors,pulleys,etc.For the Bethel machine the commissioning parts would be roughly US$180,000.-the 2 years parts roughly 0S$280,000.-insurance parts roughly 0S$800,000.- With the above parts on site and an excellent maintenance on the machine should cover the operation of the Bucket Wheel machine. I hope this is of help for your study. BEST REGARDS GERHARD T.HERTEL ----Original Message----- 'From:Tom Monter [mailto:Tom.Monter@pes-world.com] Sent:Thursday,June 26,2003 12:26 PM To:Gerhard HertelSubject:RE:STACKING /RECLAIMING SYSTEMS I did have an addendium to my last question.Considering we can't ship equipment for 7 months out of the year,what would you estimate the yearlypartscostforabucketwheelstacker/reclaimer of the size for the Bethel project?Thanks again Tom Monter.Precision Energy Services Tom Monter +From:Gerhard Herte![ghertel@takraf.com] Sent Friday,May 23,2003 1:19 PMTa:TOM MONTER Subject:BUCKET WHEEL STORAGE,BETHEL ALASKA PRELIM.MAINT.CHE , ' CXCLIST.BUCKET.... Dear Mr.Monter. Attached is one excel file with a preliminary general maintenance schedulemfor a Bucket Wheel Stacker/Reclaimer.As listed in the spreadsheet, the hours mentioned only include the time for checking,cleaning and lubricating.Any time for replacements,repairs,overhaul are not included. BEST REGARDS GERHARD T.HERTEL P.S.I am still working on a sketch to show the conveyor arrangements underneath the Bucket Wheel machine,as well as a general sketch showing thevariousstackingandreclaimpossibilities. Tom Monter From:Gerhard Hertel (ghertel@takraf.com] Sent:Wednesday,May 21,2003 1:21 PM To:Tom Monter Ce:Mike Oswald;Sam Fulton;Rafal Berezowski Subject:RE:Stacker Availability &Bypass ¥FF 2 2 ® B.W.CIRGULAR.SY =Bekohi2.jpg Fe ee Ws eed atone H-SCHL 1.TIFSTEM.ipg _21.03.doe Dear Mr.MonterPLeasefindattachedexplanationsandsomesketchestoyourbelowquestions.I am still working on the maintenance schedule and the sketch for the belt scheme using 2 parallel conveyors.I will follow up with this information bytomorrowMay22. BEST REGARDS GERHARD T.HERTEL ----Original Message- ---- From:Tom Monter [mailto:Tom.Monter@pes-world.com: Sent:Thursday,May 15,2003 10:37 AM To:Gerhard Hertel Cc:Mike Oswald;Sam Fulton;Rafal Berezowski Subject:Stacker Availability &Bypass "Ir Hertel 4 had a few more questions concerning the stacker-reclaimer you have proposed.The first question is concerning the availability of the sStacker/reclaimer for our feasibility study.Do you happen to have some hard data on availability numbers for a system like this one?We would like to have this data for several reasons:First,we need to know how many hours a year we can plan on running loaders or another alternate means of reclaiming when the reclaim system is down for repairs or scheduled maintenance. Second,we need an idea of how much extra money we can plan to spend to keep the stacker-reclaimer running on a yearly basis.Third,we need the data to present to our client to show that we have investigated and planned for contingencies so that we can provide 99%power availability (not including scheduled maintenance or outages). The second question I had was concerning the belt feeding the stacker-reclaimer.Can this belt be doubled up to provide added reliability?The second belt could be just used for the reclaiming portion of the operation if need be,we would just like to have the added reliability built in.Also this stacker does include a bypass so that we can feed the bunkers directly from the coal incoming from the river correct?Could you provide a more detailed drawing or picture of how the conveyor system for the stacker-reclaimer works?We are curious so that we can design out storage area with this information in mind. My last question is what would the tower height be on this bucket wheel system?We just need to know so that if need be we can fit it under a 'building.Again any information you can provide about reliability in a document form would be appreciated since we need to provide this in ourreport.Thank you. Tom Monter . Precision Energy Services Tom Monter -From:Gerhard Hertel (ghertel@takraf.com]Sent:Wednesday,May 14,2003 7:02 AM To:Tom Monter Subject:RE: Dear Mr.Monter. Thanks for your e-mail.I am at our headquarters in Germany right now.In talking to our engineers,I can give you the following information:1.The rough weight of this machine is about 700MT (including - counterweight).The average wheel load for this kind of machine is in the range of 30 to 35MT. 2.Based on above weight,the shipping volume for this machine (excludingcounterweight)is in the range of 3,500 cubm.There is not much to be shipped in containers.Most of the shipments will be bulk,we may have about 4 x 20'containers for smaller mechanical items. 3.A very rough budgetary price for this Bucket Wheel Stacker /Reclaimer suited for cold weather is in the range of OS-Dollar 5.8 Million,FOB Seattle. 4.The highest point on this machine is the mast,holding the boom as well as the counterweight.The top of this mast is at an elevation of approx.30 m. If you have further questions,please send them to my e-mail address.I am -checking my e-mails daily.I am back in my Denver office next week Tuesday. BEST REGARDS. -GERHARD T.HERTEL -----Original Message----- From:Tom Monter [{mailto:Tom.Monter@pes-world.com Sent:Monday,May 12,2003 9:42 AM To:Gerhard Hertel Subject: Mr.Hertel, I was curious if you had the rough weight of the bucket wheel stacking/reclaiming machine.If you don't have the weight offhand could you possibly estimate (within 15%)what it will weigh?We are trying to get theapproximateweightssothatwecandesignfoundationsforBethelwhichhave special concerns due to permafrost conditions.Additionally,could you possibly estimate how many containers it will take to ship the equipment toAlaska,and the estimated price FOB seattle?The last question I had was how high for the machine you quoted would the tower for the reclaiming boom stick in the air?Thank You.. Tom Monter (208)772-4457 Precision Energy Services 10780 N Highway 95 Hayden Lake,ID 83835 Tom.monter@pes-world.com Tom Monter From:-Gerhard Hertel [ghertel@takraf.com]Sent:Tuesday,April 29,2003 7:11 AM To:Tom.Monter@pes-world.com Subject:STORAGE SYSTEM BETHEL ALASKA elcROSREV.LAYOUT.PLAN.i ' $.04.29.03.vsd 04.29.03.vsd Dear Mr.Monter. Thanks for your E mail yesterday.Reviewing your requirements of total storage volume,covered storage,reliable operation without major downtimes, and assuming that some redundancy in reclaiming is necessary,I do not believe that an automated reclaim system be it a Portal Reclaimer or BucketWheelSticker.Reclaimer would be suited.The Portal Reclaimer is the moze---reliable machine than the Bucket Wheel,due to its simplicity in design.It would certainly fulfill the requirement of high availibility,but when compacting the coal,the pile will change its shape,which requires a long -dressing time until material is being reclaimed.The height of the Portal Reclaimer would also require a much higher building.The Bucket Wheel could reclaim a compacted pile without any problem,however it requires more maintenance than the Portal Reclaimer.It also requires a higher building, and you cannot stack and reclaim at the same time.Both automated Reclaimers also have the disadvantage that,if a malfunction 'occurs,you are without any fuel feed to the power plant.Putting 2 machines in to have redundancy,bears a considerable price tag. In my opinion the ideal system for your application is stacking 2 parallelpileswithaslewingstackerinbetweenbothpiles.Reclaiming should be -done using Front End Loaders,which you already have in your plant.You may need to purchase one or two more to also cover the pile compacting.On theoutsideofeachpileyouwouldhaveonereclaimconveyor.Each reclaim conveyor has its own motorized Reclaim Hopper Car.Since your reclaim rateislow,one Front End Loader could easily achieve 500 MTPH.The Hopper Car would always be positioned to have the travel distance for the Loader as short as possible.The Loader Operator can reposition the Hopper car with radio control.Maintenance would not be a problem since you would only need one Loader for reclaiming. I attach 2 sketches showing the layout of the system.I will call you today to discuss the layout. BEST REGARDS GERHARD T.HERTEL =1s ° cd at om 4 "ween : ia a as eee : wee Tareisan eee,---_-ae r=oe ai, je vee ABanat4 . 2D00 s YU TUTTOTTT i} ATTACHMENT 9 pea SONG.beerneryerrerer ihCARREEESe Res SP A partnertin RhYad when they were introduced in Europe in 1971.Butsystemswereplaguedbytwoproblems:inconsistency inairflow,which reduced performance and increased problemslikebeltwander,and high costs for construction and operation. But through proper engineering and construction techniques,Martin Engineering has solved these problems with the S-Class”Air-Supported Conveyor. MARTIN?S-Class™ -Air-Supported Conveyor "anNegaate er geteeeogi Se eee ir-Supported Conveyor Air-supported conveyor systems were a revolutionary concept early Conveyor idle How it Works Air from a low horsepower fan is forced through a carefully calibrated series of holes undemeath the troughed surface. This air lifts the conveyor belt off the trough,so its only carrying side friction points are the head and tail pulley.- epee Se ee Conveyor running This film of air,only four-hundredths of an inch (one-millimeter)thick, supports the moving belt,eliminating the need for carrying idlers.The thin film of air will support loads up to 200 pounds per square foot (976 kg/m*) at high speeds with no mechanical friction.The air support system limits mechanical friction to the conveyor drive (typically at the head pulley),the tail pulley,and the take-up assembly.This results in a dramatic reduction in operating maintenance costs.: The system features interlocked controls,so the belt will not run without air pressure,and the air system does not operate without the belt running. Sr eneiRequired-Prove it to Yourself The first step may be to install one (or several) modular section of S-Class”Air Conveyor on an existing (conventional)belt conveyor structure. A -5 ' rs £ id {That way you'll see the effectiveness and efficiency of the S-Class”Air-Supported Conveyor without requiring a full conveyor system.- ;tg,bell caconveyorsito reliable and eMclent alrsippted conve;FOS It's Simple to Upgrade KISa)zEpoerMeyi(c'.tia to the sted Sand Step 2ngelity!fis;elasa[Selinasasee SChass”AlrSupported Conveyor Offers Benefits for Upgrading Existing Conveyors ©Econcuical ImprovencatSavemoneybyreusingexistingstringers,bell,and drive system Modularsecilonsdroponioexistingconveyorstringersforapriceconscioussetrafit.©Fits Exloling SirectarePatentedSClass”Retrofie System is designed to CEMA stumdardsandwillMhexitingstandardorwide-bese layouts, @ Use as Much as You NeodModularsasembiiesletyouinstall a 10foot (3048 majsectionaf8time.lectall a5 much as you Ihe now,extend the ait supported section anytime. ©@ Skilled lastallaiion Avaliable -Martin Services crews provide fastIectallationforopspecoperationwihelciddowntime. rycae aisarateuneneaNewConaConeseeeyarUpgradesSe¢tionfiakes d'e3syto turn fitBGreThe MARTINS 0 RRinstipparted Conveyor provideshighbravebwsecostsalutiontoconveyingproblems.In new construction,the S-Class'Conveyor is an engineered conveyor system designed to provide simplicity in design and economy In operation. .aphose-partatarty©Avaliable for belts trom 42 10 60 fol propery recsesed-candem-inches (900 to 1600 mmm)wicie. S-Class”Alr Supported ConveyorOffersBenefitsinEngineeringNewConveyors@AllowsGreaterLacilsesByelfaninatingloadagitation,S Class”Air SupportedConveyorcansabetyandeffectivelymoveloadsatanglesupto25degrees. ©@ Save Meacy ca WalkwaysBecauseieliminatesLeoughingidlers and se reduces theneedforroutinejubricatlonandconveyormainienance,the MARTIN®SClass”Conveyor may allow you toGspensewithcomveyorcalwalks. @ Allows Reversible . By the rechapd mumber of rolling components and,heace,the amount of friction,the SClass”Alr SupportedConveyorslanplifiestheprocessofchangingdirections. @ Allows Leng,SpenaThestrengthofthe¥Pleaum design allous spans of wpto40fect(12.2 meters)without requiring additional map i asoePretyetnaenoe (3 Ye spaae F fenelisisover a=ventional beltconveyor noemay)cea Benefits of S-Class”Conveyors:e ie a eetKei.tses Reduced Energy ExpenseThelow-friction S-Class”System can reduce conveyor powerrequirementsby30%on a horizontal installation.That means you paylessforenergy(and you may save more because you can buy a sinallerlower-cost drive). 'Reduced Maintenance ExpenseTherearenocarryingsideidlers.That means there are no expensiverollerstoreplaceandnoidlerlubricationrequired. Reduced Conveyor NetseNoidlerbearingnoise;no noisy compressor.The S-Class”Conveyoroperatesatthesoundoutputofanelectricfan(70 dBA)rather thanthetypicalconveyornoiselevel(85 dBA). LoagerBeltLifeWithfewerfrictionpoints,there is less wear on belt's bottom surface.And because there's no need for conveyor skirting,thereisnoabrasiononthecarryingsidefrommaterialentrapment inpinchpoints.Stabitizes Belt PathBecausethebeltiscarried on a smooth film of air over a smoothtroughedsurface,the belt's path is stable for improved dust control. Reduced SpillageBecauseitisfullyenclosed,the S-Class”Conveyor eliminates theneedforskirting. ImprovedDustCoatrolWiththeS-Class”Conveyor,the film of air is released below thebeltatsuchlowvolumestheairflowwillnotcarryfinesoffthetopofthebelt.The belt's smooth profile keeps fines cut of the airandonthebelt. Improved Prodact ConditionTheS-Class”Conveyor's air-supparted belt is gentle to the cargo.There is no bumpy "roller coaster”ride over the idlers,so there isnomaterialsegregation,no product degradation and no breakage.And because it is fully enclosed,there's no contamination ofconveyedmaterial. Fornearly60 years,Martin Engineering has focused on improving plant bulk solids handling operations. Around the corner.or around the world, MARTIN?®Systems and Services improve the movement,storage,recovery,and movement of bulk materials.Martin Engineering strives to reduce maintenance and downtime and improve efficiency and profitability. MARTIN?Products include: Belt Conveyor Cleaning Systems'@ Air Cannons TransferPointSealingSystems ©PneumaticandElectricVibrators @ Load Zone Impactand @ Dust Suppression Systems Belt Support Cradles @ Dust Collection Systems Belt Training Devices ©Air-Supported Conveyor SystemsMoldedUrethaneWearParts MARTIN?Services include: ©System Installation Specialized Maintenance Silo Cleaning ©Laser Conveyor SurveyingTurnkeyProject , System Design Engineering pripry MARTIAN ENGINEERING1SO-3001 Patent #5,829,577 Neponset,Illinois 61345-9768 USA Air-supported conveyor technology 800-544-2947 or 309-594-2384 potented by Grisiey Components,inc.'FAX:309-594-2432 Form No.L3578-3/02 WP ©Martin Engineering 2001 http:/Awww.martin-eng.com DANY CERTIFIED QUALITY SVETER Solutions for Bulk Solids HandlingFormorethan55yearsMartinEngineeringhasmadebulkmaterialshandlingcleaner,safer,and more productive.All MARTIN®Products and Services are backed by the company's Absolutely,Positively,No Excuses Guarantee. XHV BIG BLASTER®Ambient-Temp.Air Cannons XHV BIG BLASTER®High-Temp.Air Cannons XHD Bin Whip XHD Bin Drill and Chunk Buster Vibratory Systems _ ©MOTOMAGNETIC®Electric Vibrators ¢BRUTE™Motor-Driven Vibrators (Hydraulic,Pneumatic,and Electric) «VIBROLATOR?®Pneumatic Ball Vibrators ¢VIBROLLER®Pneumatic Roller Vibrators ¢VIBROTOR®Pneumatic Roller Vibrators ¢Pneumatic Piston Vibrators ¢Vibrator Mounts,Controls,and Accessories ¢Screen Vibrators and Retrofit Kits Bulk Transport Unloading Systems ¢BOOT-LIFT®Railcar Connector ¢BOOT-LIFT®Vertical Connector SR rec rene dire aeee tents»ang annepion iran baritone'SYSTEMS TO IMPROVE Here'BELT,CONVEYOR OPERATION ;: Beit Cleaning Systems¢S-CLASS™Air Supported Conveyor System ¢DURT HAWG®Belt Cleaning System »DURT TRACKER®Belt Cleaning System ¢IN-LINE Belt Cleaning System SAF Belt Cleaning System *XHD "Extra Heavy-Duty”Belt Cleaning Systern *SHD "Super Heavy-Duty”Belt Cleaning System *QC®"Quick Change”Belt Cleaning Systems¢ZHD Belt Cleaning System*PIGLET™Food-Grade Belt Cleaning Systems *Chevron Belt Cleaning System *Rotary:Brush Cleaning System _*Spray Wash Belt Cleaning System BE.Manrin ENGINEERING *CYA®Inspection Doors -Steel and Rubber °Tail Pulley Protection Plows ¢Vibrating Dribble Chute Transfer Point Systems *GUARDABELT®Impact Systems ¢GUARDASEAL™Beit Support Cradle ¢Catenary Idler Stabilizer Systems *TRAC-MOUNT Idler ¢DURT TAMER™Wear Liner e APRON SEAL™Skirting System ¢Tailgate Sealing Box ¢FOG Dust Suppression System ¢FOAM Dust Suppression System ¢Dust Bag and Curtains ¢Insertable Dust Collectors Beit Alignment Systems ¢TRACKER Belt Tracking System ¢SPIROLL GUIDE™Alignment Roller ¢Installation Service ¢Equipment Maintenance Service *Silo Cleaning Service ¢Laser Survey and Alignment Service ¢Engineered Systems Analysis 'REPAIRIWEAR PARTS S522 gees ¢Urethane Classifier Shoes e EZ-PATCH™Repair Kit ¢Sheet Urethane¢Urethane Spray Deflectors,Plow Tips,and Spinner Disks !MARTIN?CUSTOM SYSTEMSSeren Martin Engineering can design and build custom solidshandlingsystemstofitspecializedapplicationrequirements. For more information on our products,call 800-544-2947 (USA only)or 309-594-2384 martin-eng.com °e-mail:martinone@martin-eng.com Form No,L3281-4/02 ISO 9001 QUALITY SYSTEM CERTIFIED_£.NvGINEERING One Martin Place Neponset,IL 61345-9766 USA Phone:800-544-2947 or 309-584-2384 FAX:309-594-2432 Website:http:/www,martin-eng.com April 17,2003 DUST CONTROL THROUGH AIR SUPPORTED CONVEYORS Tom Monter mae ths Precision Energy Services S3910780N.Highway 95 :, vs Hayden Lake,UT 83835 Pe isProposalnumber:03125-AS AY Se Dear Tom,/-< We appreciate your interest in our Martin Engineering patented S-CLASS™Air-Supported Conveyor.Thisis a component-based method for upgradingtroughingconveyorstoamorereliableandcost-effective air-supported conveyor.Designed according to CEMA (Conveyor Equipment Manufacturers Association)standards,the S-CLASS™ ASC utilizes the troughing conveyor's existing support structure,drive mechanism,and belt. Using this technology is quickly making the S-CLASS™ASC the industry standard for high performance conveying.The S-CLASS™ASC is more efficient,reliable,and cost-effective than conventional conveying technologies.Our retrofit system not only simplifies the process of upgrading troughing conveyors,but by eliminating the source of wear (friction from moving parts),the S-CLASS™ASC will substantially reduce the conveyor's operating and maintenancecosts.. Martin Engineering has made the S-CLASS™ASC available at a per-section cost comparable tothatofaconventionalandregularlyscheduledretrofit.The "V”Plenum retrofit provides all of the inherent benefits of air-supported conveying,and it does so by using the troughing conveyor's existing structure,which results in a substantial reduction in installation costs and downtime. Based on the information provided Martin Engineering guarantees that this system will deliver the required capacity with no spillage due to this system and with no additional horsepower requiredbythesystemsdrivemotor. If you have any questions,please contact me 800-544-2947 Ext324. THINK CLEAN® MeV» hati.to OM.MARTIN oa.cornENGINEERING PROPOSAL SYSTEM PARAMETERS 60 Inch Belt Width 2000 TPH Design Capacity 2 Inch Minus Coal at 55 pounds per cubic foot 8%Moisture Content 450 FPM Belt Speed Single Load Zone I understand that power requirements are a big issue for this application.With the informationgivenIestimatethatthehorsepowersavingsforabeltofthissizewouldbeapproximately22% or 30 horsepower.Due to the length of this belt and the quantity of material conveyed,(4)30horsepowerfanswillberequiredtoliftandcarrythebeltplusmaterial.I realizethatthisis not the savings you were looking for but the numbers given are realistic. By reviewing the product information on our website you will be able to see that the S-CLASS™Air Supported Conveyor is a totally enclosed system eliminating the need for additional covers to protect the material conveyed from outside elements and keeps the conveyed material on the belt.I do understand that this application is close to a residential area and fugitive material could be an issue.The S-CLASS™Air Supported Conveyor System also will eliminate the need for maintenance on the trough side of the belt with the elimination of troughing rolls andin most cases a need for an access walkway.The elimination of toughingidlerswillalsoreducenoise. Scope of Equipment 1400 feet of 60 inch wide S-CLASS™Air Supported Plenums,each 5 foot section consisting ofthe following:e One-V-Plenum weldment assembly with 12 GA galvanized ""V”sheet and 3/8” thick carbon steel end laser cut end flanges."V”sheet continuously welded to inside of the flange.¢One-Pan weldment 12 GA galvanized attached to 3/8”thick end flanges with continuous seal weld on the inside,full length sheets with a relief ground on the 3/8”flange for continuous seal weld. @ Two -Cover Splice plate weldment 10 GA carbon steel with 1-1/2”bar chamel reinforcing. e Two --Galvanized Cover assemblies 14 GA. e Three -Support bracket assemblies carbon steel 2 '2x2 1/2"x /4”angle with as base angles and 3/8”bar pads.| Precision Energy Services Page 2 of 6 April 17,2003 .Proposal No.03125-AS The information contained herein is privilege and confidential information and is intended only for the use of the addressee's compeny.Anydissemination,distribution,or copying of this material to others,in whole or in part,is strictly prohibited without the written permission ofMartinEngineering,inc. bell.MARTINENGINEERING e All fabricated steel will be prepared to SSPC-SP2 ¥wire brush clean and-given one standard primer coat 1.5 2.0 mils DFT. Plenum parts will ship loose for assemblyin the field. Four -Pressure blowers evenly spaced to provide proper lift based on operatingdes!parameters.. e One -Smooth line loading spoon installed in the drop zone to alleviate any material impact. Budget price for required equipment each belt:$1,009,976.00 _STANDARD PAYMENT TERMS AVAILABILTY:8-10 Weeks SHIPPING:FOB:Point oforigin/Freight not included Above quote is for equipment only with standard Martin Engineering terms applying. All Prices are FOB Neponset,IL. Prices valid for 60 days from date of proposal.Equipment manufacturing to commence immediately upon receipt of purchase order.Quotation does not include shipping charges or federal and/or state sales or use taxes.All applicable taxes andfreight to be paid by Precision Energy.One complete set of equipment installation manuals and system requirements will beprovideduponreceiptoforder.Additional sets available upon request. Note:Above quote is based on information collected,if actual conditions vary Martin Engineering reserves the right to adjust this quote to ensure success of this project. Note:Dust Collection addressed by current system. Note:All electrical work to be the responsibility of the customer.The S-CLASS™™ Air-Supported Conveyor requires 230/460 three phase to operate the pressure blower and 110 single phase for the pressure switch that is used as an interlock into the customers existing logic system. GUARANTEE Martin Engineering offers an "Absolutely Positively No Excuses”Guarantee.Simply stated, "if the engineered system,installed by Martin Services or a Martin Service Technician,does not perform to the customer's satisfaction,the customer may return the equipment for cash or credit equal to the cost of the installed system.Martin Engineering has extensive experience in Precision Energy Services Page 3 of 6 April 17,2003 Proposal No.03125-AS The information contained herein is privilege and confidential information and is intended only for the use of the addressee'3 company.Anydissemination,distribution,of copying of this material to others,in whole or in part,is strictly prohibited without the written permission ofMartinEngineering,inc. .MARTIN ba ENGINEERING : |perv solving material build-up problems such as are experiencing.We warranty our products to befreeofdefectsinmaterialsandworkmanshipfortwelvemonthsafterdateofpurchase. Precision Energy Services , Page4of6 April 17,2003 Proposal No.03125-AS The information contained herein is privilege and confidential information and is intended only for the use of the addressee's company.Anydissemination,distribution,or copying of this material to othera,in whoie or in part,is strictly prohibited without the written permission ofMartinEngineering,Inc. mh | | ib Ba.MARTIN La ENGINEERING :DM, Reference List for MARTIN®S-CLASS™Air-Supported Conveyor System Bridgewater Power PO Box 678,Route 3 Ashland,NH 03217 Contact:Michael O'Leary Phone#:(603)968-9602 Three (3)conveyors installed in 1987,36”(hog fuel)wood chips CMC 33-3683 Hasting Street Vancouver,B.C.Canada Contact:Rene Wedding Phone#:(604)294-6483 Various installations;grain handling,petroleum,coke HCH A/S Ringsheduet 7-11 Soko,Denmark DK-4180Contact:Hans Houmand-Consulting Engineer knowledgeable iin the advantages ofASCPhone#:011-45-57-83-300 Various applications;cement,sugar,coal National Gypsum 2001 Rexford Rd Charlotte,NC 28211 Contact:Bob Piaseki Phone#:(704)365-7300 -Headquarters Phone#:(813)952-1100 -Apollo Beach,FL Three (3)conveyors 3M Company 900 Bush Ave,Bldg 21-1E-06 St Paul,MN 55133 Contact:Denny Helender Phone#:(651)778-5193 Eight (8)conveyors (roofing granules) Southern Company State Line Power 103™Street and Lake Michigan Hammond,IN 46320 Contact:Dave Matitevich Phone#:(219)473-6400,x6490 CONENTIONSOFSALESPrecisionEnergyServices Page 5 of 6 April 17,2003 Proposal No.03125-AS 'The information contained herein is privilege and confidential information and is intended only for the use of the addressee's company.Any dissemination,distribution,or copying of this material to others,in whole or in part,is strictty prohibited withoutthewrittenpermissionofMartinEngineering,Inc.; 4baa.MARTINENGINEERING TAXES AMD OTHER CHARGES:Agy manahcaser's wn,one tn,ethan tan,uty,or tn of ry eae whichonybemeeeepslseerofmech,sek be mente Ge prions eens &Srnines ad sha be pedoeateoncndamartetePoonamathTheCanpanypyayesuidadinmePumhesethallpouvidsTheCipescntmele= a a om RESERVATIONOFTITLETitswattoprshepal>pmad-tip ieee deartbrhoweme deraahprerer sy -wmciabet oewihthofeeigspurtywatewalisG8isetnbychecteofienntandeeCote,(hn dots andy wed Ont os pe a sone wn Sy bv tr comer ie et by The Cytsdeteetsofgenesofmyeninsexewedt,or epee teensafthe complyenutitiensofneyutecomes,The Companyuaeyutarywee,citar pumennty or by inn 2paws durdadinguchSeenasmaybseesnmerty,aoe io os wpen the renin whwe cond mectinery oF gonds ooy te,eh©wahews (emenened any wri oF rapierin,or undumnidng of any tagepeenes whemecem,andoteegetofanthaytawyoe:found.Acct Gr ap dang,The Company stall ont beIebde2aryexten2ewotinequity02OtptofhsPectinOreuchsetencionofinpepefeGeepeeofanyBene,@ Henin Vtieh bore hems paid by he Pescheset in ey pet er ed,euetinnryofwie,wt.thell ost ies of baieg simianyea!exeuse,bus muy be eaperaned Suan dhe real ammo and reviamad or mid by The Compmny ip smentaaseeatthefeesofanycaineomtran,and withers ebiltsy 08 he part af The Campuny of its aguss Rr sockousorvemewa, WARRANTIES:Now SquipmaasOndeDubeurTheCompanywemumesheequipement t te Ove Gum dodo 2 eid ond wortevmntip,ehinh'wapemty is insted wm defeats mparted whine 5 paved of ene (1)peeing sum or ot (@ eens bon hsonofeigeet,shieseeeOe,'The Company cttigqaian eater dais wereumry well tus exyruaty |lmead to repinsing,bun ont inendiing,7.0.8 pei of =famadyingaftewertmenstip.'Tht The Cammpasy easrane hat 2 hep tite wp he equgwem fur of amy ennmity neqent,ot achat Generuenvrenn, Fem Gor Prpeee:The C warents ofl wo be @ and miesbte fr he per frwhiehininoutibleytarexpeith©panied ©Os dean of OsPecteeee,Uf Povehoer io mote is shalbegreeTheComanywlSaymetscotTisCompmsPetemn(On eqeipes perhen aetetty ©Ol os The Canpenywiptugandthrtheen28romaningThe Compary.of bs oi fer gue ten thirtydoeheis ie ander epesutionof199donoferwhiebonrcanesGen,othe aoe iouel,staalbe(hig wasvensybesbowened, WARRANTEIE:Used Eqniganess Cate:Tee or weed al renay of tahe ond such atdish LMTATIONSAPPLICABLETOALLWARRANTIES: Ly Aaya on the par of Pesabnet,ar wsy esha panun t vapeir datoen in woxtomenship orcovtarsdafetivepartsshallmobstaraautypndanywengerioot2wre1pwteres,inn .asian owen te:Come.'Thas Poschans man provide Ciantly msimanes o thas tes Company anny ansiet ayequipment®be reamed &Ge Company,Te Comey om ey Gesee BugantnpeyhePevehasertrthevenopcunmmat,lous any emewen oving the Compeny, PS Pespenian of the equipmenn thr mare than thisty toys aber inatathasien ar epesuaion of 180 dopeaterhigment,winches eune Gra,wahett wane satin:of a wureny chem,shal teeenetaniveeidanneGentthieeurensybenbeepoetied. ry 'Thais warranty is cendisimnad chet the equipment be wed normaity,tes is be bagi propatyomabeamgouge &ones rag ingof &'Tiss werremcy dees net cutend cums a by be Gapey o- ef.Purchaser shell bove the bunsds of oil i wy 'ef suciy inmme and theowillamnietingthetenetsofsuchwareEneen.Cy ee eee eeetTheCompanydaytel memeprocessaldbytheComgunywhethereupwessarwhemlaupiiedwerruntionofmavrehastah@ityarGeveezfer0partieniarparpers. £aay ined by the to Pemtees snd ony éunipsions oy Daerween owecoiur.quality pa peat chshpepderei perpen ingrenrialyiae.orench and qundsiens by the Campers. %Ths compney wil wat he Rabie to Prurcanowy ©any Sird oarty tr €)soy Gesueet erdiearyoFspeenl,direst er whensGentageeforSaasofstanwrtumofeeicpunedpremasarmavengs(2)cay exer cians easarvedngudepurchaserby2shérdparty,ar (Hl)Gur ny phyatant Ingartes ev Genet,artaing,directly@&tedtrenty,cut of or te conection With the arunntoctere,aie,ase ar Gefen af the prudemnsubdbereuntes. iY ti The C 's osie Undiiiep fer amy predeat cok'parument to this7toRastted2cheaftheprodeator2retenéafthapurehamsprisespuit, CLADEANDSHORTAGES.ETC:'The Pupuhmer agress te innpeat off marehandins upen cescigi mad tp amily The Campuny of any divin orthartngs,Gags,of ethererns,nat Lote:han they (30)dna of sack coveigt. AGREEMENTS:'Tals exten,Ore f TS.00R)in ony yy abe of The Compunysad,if senegend,wih to condicmad by wm fom.This a cw pied me ey pres geGwentmaybewadepanof2eenbywwsighandficial ofa pia,ws chee or in pee,€pine!euige efparvothavvnlarewuld,unten arias inte the endar or te Attmoateigenam.Tes Company fo dag that fe eat wrinen imme che oder,ox thaAthytetgqanen, Precision Energy Services April 17,2003 :480-sogt |DNVCEATHIED |.{anaes eee--el INCONEISTENTTERMSSUPERSEDED:'The pasction of of os any gun of tn i om ti pafapidnand uedareashraneteireemtirn'ethey qqpeenemt,supremmpannen,of tames af ne,Peschaser's enter fomma ar ether oa tee povtians eowkfeaun gaaaeaninwaningbyefoutofTheCamebed DSLIVIRY:Dativary ao The Company's pas wil ounce of ether of tas ume thttowing eysinne:en2canmianefolksetvalidweideneeofmehdntivary.emminis vin The vou,Saye pryeryiert poomnpritely A pasting tan siguad by ts receiver wil AR Geljeay nn wh a Gem @s én of &af he ote.(On eodam reqnisingeumampar's sqyourel of plane ar « i Gump he eameeer teGye he wen on eat one ee oetiskGeeirmenieeofapprerelwenpoovited,te 00 event wil 1Ths Campeny be curpansbte fy any tomo=the to dalbrary des. =fon Or 3 pain ont 2 ened iy OF) Quinss sosahed withent priet ender prevailing quemten wil be tilled a:euvens,gowvailing pram,'The mines met billing charge cs SSLOR,'The prin of ame prweheced ty The Company thr sunsie will ot off times bu Oat Noe i of Lad aga.apanem will be doe on nein Gem The Company thet he equipasem is rendy tr' san ef cn exdartadshmatby den dua ea nakofpastialpuyseenswillbodueonsasinefreTheConguny@@ohed, Ont ah daleyed tom 'tilted ot prises in ofan 30 GnDriertpdhedenscantresenee5mate,Peo ran guyprpents chal we expental br panied Sany enter put thaveet exami >mode int wining ond the PascoeresswpThCompanyttnoeluefrolheanownedandarenmets. prdsity Page 60f6 Proposal No.03125-AS The information contained herein is privilege and confidential information and is intended only for the use of the addressee's company.Anydissemination,distribution,or copying of this materia!to others,in whole or in part,is strictly prohibited without the written permission of MartinEngineering,Inc. By CONTINENTAL SCREW CONVEYORASubsidiaryofIPSGroep,Inc.4343 Easton Road St Joseph,MO 61503 USA May 1,2003 Precision Energy Services 10780 North Hwy.95 Haydon,Idaho 83835 Phone:208-772-4457 Fax:208-762-1113 Attention:Tom Montor Reference:60”Conveyor Truss and Supports Budgetary Quotation No.B-23 1-03 We are pleased to provide you this budgetary quotation for this equipment based on the information wediscussed.We are a sub-supplier to Martin Engineering for their "S”class air supported conveyorplemumsandhavesuppliedseveralprojectsoverthelasttwoyears.We will work closely with MarinEngineeringtoadheretothedesignrequirementsforairsupportedbeltconveyors. The conveyor we are proposing is complete excinding the carrying side plenum section,the trusssectionwillhaveholetoaccepttheplenumsupportlegs.The support trusses are capable of spanning75°,we have supplieda12”x 12'square support tower at each end in additions to "H”frame supportsevery75'with braces.Also included in the quote is 30”wide walkway systems and two MartinEngineeringV-plows and Martin Engineering dual belt cleaning systems.DESCRIPTION:ONE SLIGHTLY INCLINED NO MORE THAN TWO DEGREES CONVEYORFRAMEANDSUPPORTSFOR60”x 1400°-0”center-to-centerlength,with 60”deep truss frame. OPERATION:Conveyorto operate at approximately 600 FPM belt speed to convey 2,000 MT PHdesigncapacityofCoalat50-55 PCF with 50 PCF for capacity and 55 PCF for HP.Ambienttemperaturemax.material sized 3”minus with an angle of repose varying from 30 to 32 degrees. CONVEYOR DRIVE:200 HP 1800RPMTEFC motor 230/460volt,3 phase,60 cycle,with AllenBradleySMCFlexsoftstartratedat251Amps.Dodge TA9415H15 shaft mounted reducer with 109RPMoutputwithinternalbackstopandV-belt drive with 1.5 service factor,inchuding totally enclosedguard.Firced overhead motor mount with adjustable base. HEAD PULLEY:20”Dia.x 63”wide Crown face pulley with 1/2”thick Herringbane groovedvulcanizedlageingwith5.15/16"C-1045 sha@ with 4 15/16”mumndownforreducer.Dodge Type"E”$-15/16"4-bolt pillow block bearings with adjusting blocks.SNUB PULLEY:16”Dia.x 63"wide Flat face plain pulley with 1/4”plain lagging 3-7/16”C-1045shaftandDodgeType"E”3-1 4-volt pillow block bearings with adjusting blocks.eb Address E-mail AddressPh.816-233-1800 yore,donvevors comm ecBiconvevors,cone Fer 816-235-4315 MANUTACTURER of BULK MATERIAL HANDLING aad PROCESSING EQUIPMENT -ev=n°at?Pins Budgetary Quotation No.B-231-03 TAIL PULLEY:18”Dia.x 63”wide Crown face Wing pulley with fabricated rolled rings and47/16"C-1045 shaftwith4-7/16"Dodge Type "E”4-bolt pillow block bearings with adjusting blocks. GTU TAKE-UP'PULLEY:18”Dia.x 63”wide Crown face Wing puflleywithfabricated rolled ringsand4-7/16"C-1045 shaft with 4-7/16"Dodge Type "E”4-bolt pillow block bearings with adjustingblocics. GTU BEND PULLEY:18”Dia.x 63”wide Flat face plain pulley with 4-7/16"C-1045 shaft with4-7/16"Dodge "E”4-bolt pillow block bearings with adjusting blocks. GRAVITY TAKE-UP SYSTEM:Two GTU conveyor mounted frames with adjusting blocks,twoslideassembliesandpersonnelsafetybarrieratgrade.NOTE:The amount of GTU weight will becalculatedbuttheactualmaterialsuppliedinthefield. TRANSITION IDLERS:CEMA C-6"20 degree 3/4”seajed for life ball bearing idlers mounted at thehesdandtail. ROLLER RETURN:CEMA C-6”renurms mounted on 10'-0”centers with Trainer returns mounted every 150'. CONVEYOR BELTING:3 Ply 330 PIW MOR oil resistant belting 3/16”top x 1/16”bottom covers.Additional belting will be supplied for field vulcanized splice,material and labor "By Others”. BELT CLEANERS:Two Martin Engineering V-plows and dual belr cleaner system with QC #1primaryandQC#2 secondarywith tensioner. HEAD and TAIL PLENUM ASSEMBLIES:One-Head section 1/4”carbon steel x 10'-0”long with adaptor flange for air support conveyor framewithcombinationboltedtake-up frames,18"24"Manin Eng CYA door for inspection of beltcleanersandremovablepulleypanels. One-Tail section 1/4”carbon steel x 10'-0”long with adaptor flange for air support conveyor framewithcombinationboltedtake-up frames and pulley panels and discharge assembly.Inchiding18”x24”Martin Eng.CYA door and removable pulley panels. INTERMEDIATE PLENUM ASSEMBLIES:"By Others” CONVEYOR SUPPORT FRAME: 60”Deep Heavy-duty truss fabricated with A325 3/4”bolted joints madeupas follows:Top chards C8x11.5 with bottem chord 5”x 3”x 3/8”angle.Vertical walkway supports 3°x 3”x 3/8”angles back to backUpperpanelcrossbraces3°x 3”x 3/3”angies.Two side panel cross braces 3x 3”x 3/8”angles.3/8”Thick gusset plates typical.3/4”Thick splice plates at balted jomrts.Support beam assemblies at bent locations. 3 Precision Energy ServicesBudgetaryQuotationNo.B-23 1-03 SUPPORTS:12'-0"x 12°-0”x 20°-0”Tall support towers with platforms and handrail et head and tailHeavy-duty"H”frame supports x 20'-0”tall with knee braces spaced every 75'-0”. WALKWAY:Approximately 1390'-0"of 30”wide Gripserut 11 Ga galvanized walkway grating with42”double handrail and support system mounted to truss on 5°-0”centers. SAFETY EQUIPMENT:Eight Conveyor Components model RS-2 emergency pull switches withvinylcoatedsafetypullchordattachedtoconveyorframe.One Conveyor Components model CMSzerospeedswitchwithaccessories, COATINGS:All fabricated steel will be prepared to SSPC-SP2 wire brush clean and given onestandardprimercoatandonefinishcoatoflightgray1.5-2.0 mils DFT each.Guardsandsafetycoverswil]be given one coat of safety yellow.Vendor parts will remain their standard color and finish andnotbepainted. ASSEMBLY:Head and tail plemmn section will be assembled with pulley assemblies.Intermediate40'truss sections with return rolls mounted.Belting shipped in two section for two field vulcanizedspices,Plemum installation kits "By Others”and installed in the field. MISCELLANEOUS:Required hardware and assembly bolts,operation,maintenance and partsmama!with layout &erection drawings. Estimated Weight 361,750 pounds B PRI $697,100.00 AVAILABILTY:4-6 Weeks for approval drawings.12-14 Weeks for equipment after receipt of approval drawings. NOTES:Field engineering available for installation and/or startup service is$650.00 per diem phis travel and living expenses. Point of Origin freight not included. Payment terms will be finalized at time of order. As I am sure you are aware for a project of this magritude additional mformation would be required toproperlydesignandlayouttheconveyorsandthatanysignificantchangestothelayoutoftheconveyorscouldimpacttheprice.As this additional information becomes available please forward ittOmyattention.. Thanks for the oppornmity of providingthis budgetary quotation;if you have questions or needadditionalinformationpleasefeelfreetocall.uw) Chuck Leonard Manager of Bett Conveyor Systems 1S0-9001 'da pryENGINEERINGreoennoneen22001QUALITY SYSTEM CERTIFIED _One Martin Place Neponset,IL 61345-9768 USA Phone:800-544-. FAX:309-594-2432 Website:ntnJNewsnatnomeen May 5,2003 Mr.Tom Montor Precision Energy Services 10780 N.Highway 95 Hayden Lake,UT 83835 Phone:(208)772-4457 Fax:(208)762-1113 RE:PECS Systems for transfer between conveyors MS Proposal#:03156-PEC Ly -Dear Mr.Montor: Weare pleased to provide to you our proposal for your consideration. We appreciate your interest in our PECS (Passive Enclosure Dust Control System)Transfer System. The PECS Transfer System is a patented system and is the most exciting new technology we have had to offer in many years.This technology will revolutionize bulk material transfer chutes across a broad spectrum of industries. Should you have any questions or require additional information,you may reach me at 800-544-2947 Ext.467.Remember,Martin's strategic principle is "Applying MARTIN® Expertise and Products to the unique needs of individual customers”. Thank you for considering our technology,products,and service. Bae wantin ti ENGINEZRING ony MARTIN ENGINEERING Introducing the PECS Transfer System:The Passive Enclosure Dust Control System-PECS-is the most exciting new technology MartinEngineeringhasofferedinseveralyears.We feel this concept will revolutionize bulk materialtransferchutesacrossabroadspectrumofindustries. The PECS Transfer System will control the dust generated at the transfer between two conveyorssowellthattheneedforbaghousetypedustcollectorsmaybeeliminated.- The PECS Transfer System uses a "Hood”to control the material stream as it is comes off a head pulley.It keeps the material tightly together through the drop chute and directs it onto a "Spoon” receiving chute.The spoon lays the material on the receiving belt at roughly the same speed and direction as the belt is traveling.This minimizes air entrainment and reduces impact that can wear the belt and drive dust into the air. The PECS Transfer System also incorporates seals at the entry to reduce air movement and a stilling zone at the exit to allow dust to settle from the air. The PECS Transfer System is custom-designed for each specific application;there are no "stock”parts.These systems are typically capital projects requiring preliminary engineeringstudies.The preliminary study will give us the information required to generate each designandcreateafirmcostproposal. The features and benefits of the PECS Transfer System are numerous.The following summary touches on some of the areas worthy of mention: Economic Advantages: Reduced Energy Cost:No motors for dust collector fans so energy consumption is reduced.Reduced Dust Collector Costs:Eliminates the costs for service and replacement of baghousecartridges. Reduced Maintenance Expense:No more bag house service;no more labor for spillage cleanup. Extended Belt Life:Centralized loading prevents mis-tracking and edge-damage.Belt life can be extended by 40%due to minimal impact and cover wear. Eliminate Outages from Plugged Chutes:Inertia flow maintains controlled loading stream;no 90°comers or zero speed areas to clog or choke. No Need for Suppression:Dust is controlled without spray;reduced material degradation; no chemicals to buy. Reduced Wear and Material Degradation:"Soft loading”technology eliminates loading zone impact.Extended Liner Life:Sliding vs.impact abrasion iincreases liner durability up to eight times normal.Exclusive PECS.design allows 85%of material to ride on itself.VvVvVvVVWV.VWEnvironmental Advantages Precision Energy Services Page2of7 May 6,2003 =Proposal No.03156-PEC The information contained herein is privilege and confidential information and is intended only for the use ofthesddressee's company.Any dissemination,distribution,oc copying of this material to others,in whole or in part,is strictlyprohibitedwithoutthewrittenpermissionofMartinEngineering,Inc. pra MARTIN :48ENGINEERINGoyDM, >Reduces Employee Exposure to Respirable Dust. - >Reduces Fugitive Dust Emissions by four times when compared to a fully operational bag house system. >Best Available Control Technology:Rated BACT for belt-to-belt,belt to bin,and crusher to belt installations. >Reduces Air Quality Hassles:Controls dust to achieve regulatory limits and avoids "Potential to Emit”(PTE)triggering thresholds.. >Reduces Overall Point Source Emissions:Mitigates problems with Potential for Significant Deterioration (PSD)Permit Requirements. >Reduces Spillage:Central loading and reduced material turbulence keep material on the belt. >Reduces Air Speed:Primary and secondary stilling zones slow air velocity,reducingreleaseofdustandeliminatingneedforenergy-consuming dust collectors. PASSIVE ENCLOSURE CONTROL SYSTEM (PECS) THE PRODUCT: Material handling technology that affectively mitigates respirable and fugitive dust at conveyor transfers. HOW THE PRODUCT WORKS: The system keeps the material (that's being transferred from one belt to another)in a coherent stream,not allowing it to impact any conveyor structure.It then lays (no material- to-belt impact)the material stream onto the beltin the same direction and at the same speedasthereceivingbelt.Stilling zones within the enclosure further reduce air velocities and allow dust to agglomerate and fall to the belt prior to exiting the transfer zone. PRODUCT POSITION:PECSis positioned as the best available technology,on the market today,for controlling dust and spillage at conveyor transfers.This versatile technology can be used as a stand-alonesystemorinpart,with other MARTIN®Transfer Point Technologies. FEATURES OF THE PECS TRANSFER SYSTEM: -Hood and Spoon technology,used to maintain the material in a coherent stream,eliminate material impacts,and minimize the creation of positive air pressures. -Spoon also assures the material will be loaded properly in the center of the receiving belt. Precision Energy Services Page 3 of 7 May.6,2003 _,Proposal No.03156-PEC 'The information contained herein is privilege and confidential information and is intended only for the use oftheaddressee's company.Any dissemination,distribution,or copying of this material to others,in whole or in part,is strictlyprohibitedwithoutthewrittenpermissionofMartinEngineering,Inc. preeing MARTIN uwENGINEERING Entry seals are added at the entrance of the enclosure to reduce induced air. Still zones,primary and secondary,reduce air velocity within the transfer enclosure. Available for new or retrofit applications. Has received BACT approval in Wyoming,a state that has a more stringent dust control standard than that of the federal government. BENEFITS TO THE CUSTOMER FROM USING THE PECS TRANSFER SYSTEM: Eliminates dust -400%more affective in mitigating fugitive dust than a conventional transfer Meets regulatory standards. Eliminates safety issues related to dust -33%more affective in controlling respirable dust than a conventional transfer -Air quality compliance. Improves operating environment -30%quieter than a conventional transfer. Reduces maintenance expenses -Extend conveyor belt life by 40%. Reduces operating expenses -Either elimimates the need of a dust collection system, or lessens the burden of an existing system making it more efficient. Reduces maintenance concems /labor-Improves belt alignment.Reduces maintenance expenses --Eliminates cleanup,requires minimal systemmaintenance. Eliminates material degradation-Prevents material from free falling or impacting,in _the chute and on the belt. Eliminates plugged chutes-Inertia flow maintains controlled loading. Summary and Proposal:With the PECS (Passive Enclosure Dust Control System)Transfer System,we can control dustingandgreatlyreducetopcoverwear.With the PECS Transfer System you get improved center loading of the material for improved belt tracking.In order to ensure that acceptable dust levels are maintained the best approach to this project is to proceed in (2)two phases as follows: Phase I -Preliminary Engineering A complete set of 2-D Conceptual Drawings and a 3-D Conceptual Model will be created for the PECS Transfer System between conveyors.These drawings will be submitted for review upon completion.We will send a representative to your site to review drawings and verify field dimensions of the entire scope of work for this project.A schedule will be developed and submitted for approval.A final scope of work will be submitted for approval along with the final cost Precision Energy Services Page 4 of 7 May 6,2003 :'Proposal No.03156-PEC | The information contained herein is privilege and confidential information and is intended only for the use oftheaddressee's company.Any dissemination,distribution,or copying of this material to others,in whole or in part,is strictlyprohibitedwithoutthewrittenpermissionofMartinEngineering,Inc. Mae.ARTIN |gS ENGINEERING -canrweo proposal.Preliminary engineering will be billed upon notice to proceed and award of purchase order for this item.Preliminary engineering includes travel to your site,as well as vérification of field dimensions for the scope of work or this project.Conceptual drawings are included. Phase I Fabrication Upon completion of Phase I,we will fabricate the PECS Transfer System per the agreed uponschedule.Fabrication will be billed as per included payment schedule (see payment terms). Fabrication of the PECS Transfer System will include a new redesigned head chute,relocated magnet,Hood,new drop chute,Spoon,stilling zone,and a high speed belt cleaner system.All wear areas to be lined with AR 500 or a material best suited for the promotion of material flow and long wear liner life based on the material being conveyed. Cost Summary for conveyor to conveyor PECS Transfer: Phase I -Firm Price $9,600.00 Phase II -Budget Price $126,509.00 TOTAL for PECS Transfer $136,109.00 NOTE:Final price will be within plus or minus 10%of budget price excluding required structural changes discovered during Phase L SYSTEM DESIGN PARAMETERS 60”Belt 2000TPH 2”Minus Coal @S5 Ibs per cubic foot 8%of Moisture 450 FPM ; Single Load Zone STANDARD PAYMENT TERMS AVAILABILTY:PHASE I 3-4 Weeks for conceptual drawings after order Precision Energy Services Page 5 of 7 May 6,2003 Proposal No.03 156-PEC The information contained herein is privilege and confidential information and is intended only for the use of -the addressee's company.Any dissemination,distribution,or copying of this material to others,in whole or in part,is strictlyprohibitedwithoutthewrittenpermissionofMartinEngineering,Inc. we ENGINEZRINGmai.MARTIN th PAYMENT:.Net 30 days of original invoice. PHASE I 3-4 Weeks for approval drawings after order 10-12 Weeks for equipment after approval drawings PAYMENT:30%Due at order placement60%Due when PECS material arrives on site 10%Retained not to exceed 90 days of finished date SHIPPING:FOB Point of origin/Freight not included Prices are validfor 60 days from date ofproposal.Equipment manufacturing will commence immediately upon receipt offinal approval drawings.Quotation does not include shipping chargesorfederaland/or state sales or use taxes.All applicable taxes andfreight must be paid byPrecisionEnergyServices. .CONDITIONS OF SALES .airtel onion cher umee umare whatgorver enten which »cancun The Pewter en ="CaponondemamprovideGiendlyamintmeesoteattomyAAmemesomstufemprioginndtheTeeoe.eee eave nenencianara eeetoretehMastinonomerbondGuightceriandgoedchippingpaythewnardoy,ow teaing on Ce 'oe umount far ramen say sqnonant to be ssned i oe Campens.The Company wil pay te mane tuageanyentheCompanypays..bod hal »pwprnbalnpberamstad ta,en of o oumenty <<.:euems tral,wehentviewenties:ca,Unsil Pascivaner maken peyenent in fail.cite to all guads remeine in ton Canspuny aed Pesviuanr guants cumshesive evidaqen thes this wesrenty has been eminfiad,."- the Campany 0 seumsty jeterett im the poets wath off af tn thenterthepurieneesof@eUnionCommendCoden.Acy ean of check sccapent wil by educa a Cea anienat Gr tn oxnionnans be wad sorely.tnt i tn nyt propertyofdatentyilonbegeesoo,eee eee eaeouted om ch by Oe Coe lateioned,tet &be eperened in toa theCompmaybsgon-jn wining of the dates,ate rt or upen bebwe of:Wreheey *6 cmunply with amy ae oralleontitionnofmuyextecommen,the Cungenry will bows ofl by "was.i This wavenryeuan te wandbaleentreesSaycumede,On Conpeny stn net ts latte 2 ary oven a tow ars eembyen ihe (Gut Passtaser shell hove the tenets of all wenuntins wede by the qaanheeee of mah nomepanefnarteofnyGey,@ tod the Company wil maint Puntaner 10 sesmming ts benall of each wunraniat.Caine tone weno paid by r Peete in cap pust br any ouotuner)of ereaunna 'This wereny ini of tee pr WARRANTUES:Mow Requipazans Cnty:7.'The Compney prety iain ul ether warvenen of any Nand weamsovar 2 thaOnionsThemradomenswobeSunfemdethetsinenenssiadandcurtemensbip,aid by the C:'wethentwhichweseentypurewating0pastedofene(1)eparnting sem oF (2 eames cryecs warvestac of aavnmameatiy or Susan tw s purtuaner pattonSoe5FOprateclmeretenenteamspareme&ary manele sbasined Wy 2 Congeny to Prchens snd sey deaasipsions or Uhuerasives in-puut of : oe om Sees poten cae pat Gene ty Sa ean wesomypinn,ell an i 'Thier The Company wananes that it hes tite 10 the equipmam bus of avy sesnsity ieewen,or ott hee by te Conga.': ;Fina he Paspeme The Ca a -te th und oubaide fr the paspem ber La ee eee nea ee ae Wid vere tor ©)xy damage,uhint i in a]ming Or wen a'(0 drape of te Poche.piven agfacnenep utah naripastenays Aopen:Gumnesten,damage e suddpuet profits or aniogg,ony ober,'WARRANTIES:Used Bquipmnams Oniy:tater nmarted sqninat parchasar by ¢third party,or (IE)for eny yhyuien tujertas or .death,avtaing,Greuty or tutireety,emt of or in wah ths a'.Tae wanemay ter Guage the waremnty of tide and hewn ediicioned pura predaats seid berennder.'Denventes Gus ave wrinen jaan the eodar,.ue balan ™ ®@ ot Nabiitty.The C:2 code Bebiiity for amy product sid pursnaed to thisUMITATIONSAPPLICARLETOALLWARRANTIES:nareement is Genited to the replocument of the preduat or 2 refund of the purchess pricefwthepestofParehnem,or any ether prem ©rapair dou in wortmenship or La duties shed enaies yaamty eid an t mah dotnet anet pve om segewed ar'eramet at ory conahien,Guten ©pan eutecquanty sien ws teveming Gomged «rem 'PrecisionEnergyServices -Page6of7 May 6,2003 ;__Proposal No.03156-PEC The information contained herein is privilege and confidential information and is intended only for the use oftheaddressee's company.Any dissemination,distribution,or copying of this material to others,in whole or im part,is strictlyprohibitedwithoutthewrittenpermissionofMartinEngineering,Inc. Waal.MAATIN ENGINEERING CLAIMS AND SHORTAGES,ETC: Teh imupentoff svershandios upum cntnigt and to nasil the Company of samy oinian °or shemnge,domngs,of ctimarou,wet tener thoes 38 duyn of meamgs. PORCE MAMIURE:Pectsmnanse of the tous ond eondicinns hemel ic seensmedly aihjert 29 any dziny emuad ty fan,ae RS NT,oe other ter Gagan,leas,emma,ot stay afon,seoftn,nahitey w chnia exenial,war enhergs,or govemmon sumeuint and seysishion of(nd end ony ether quupaloftheComguny. Dis ote ont ee ee re omen yo mene anSaymsmae-a obepaval wie ot peteror'whesher eel of tonpiied,eunegs that say paeticuiereocreatptryelmayWeenpecoaswanwnigitanutemcomiedby0quelidintoffiaielaf@oCompuay. 'Thee wnens and covsiintuns of sole sieall bs governnel by cand consumed is coveedaes wish the lows anddemcinnsofthoSuseofHinais, amy ate ote plant,a2 a tins or in pe ae peelgmnpamensofpaseswendonewand,entes _@ 'Tha Compeny expamen nupeusihdiey only fer the quuns Gut am wuitten inee the enter o thee_ig ee, 'The ponshene of off or wy pan of the stait be fonh bowieandOnAte,dene soon Somes een te vane etwang,toanw9Separecebeeentourniixadysonpindinwaning by an mathestent odin of ths OaLIVERY: Ontrasy on te Ci 'Span will at af epithe at the C 'a ceeen:. oa Bennent cuter whnns seesipt thereat wil enastns befandwalleevedenesafdntivery. 2 ne ee er wee.Aa tn wa oll and walls ees af dative. Precision Energy Services July 21,2003 tS0-9001 ba ONY CERTIFIED Pecteey cope of pia of epee ae cs mint of Oe ent.-sae ;soqaned fam the Puchamar haters the enter enn te processed,abrary danes Ol be exbeaioted bom'thes tense dane fe op vet will hs Compnysepeecnforoylanordemegmn'hee 29 ah trey a sesh web Oe eoirary i Gate Cm wing.ay amg net, a7 tamavied thet may be chipped ensins the peupeeey mya vwuresd=Leena oy fie ant shall be . qumwel,The Pacheserwillpay a" weights 1 Gndves exhorenen semteat,aff yrinss queted osu fice ter 0 parted 200 to exmnnd 68 dove. 2 Cotas smbvad wathent provailing af puter quuation will be billed w aumam pouvadiing prices, 2.The ented om billing chap os $90.08, 4 'The pres of tom C 'for varain wilt a1 aff Gnas be then qewvadiing =hntionsafshigueent.* <The CompanyeeerenOnagft ©oes a gras eee vibes Senne inti. 6 éF:room fo Pertaser shar mntusase bas began,payeens'ull be oun on nouns Sum Gn Comgany te undy Sr 9.Weamypbeien of on enter is dotpet by ee hen ee colenies es ds ekaswelpapeswnwillbydnoonencien ben teCompaay&te aenw on tend, 8 Ontem samp wah doleyed bled an painas in effent 30 dupe qatar©6s Gm ent eles os ote,Po =for pas . CANCELLATION: Comanfienions or mup work vequasie en uny arder or part thereaf nunat be made ineeededeeeenmunaOftomualrunesforolaherontnmebanstheexbengsvainendervameuhingcharyus<f thse pet Page 7 of 7ProposalNo.:03156-PEC The information contained herein is privilege and confidential information and is intended only for the use of the addressce's company.Any dissemination,distribution,or copying of this material to others,in whole or in part,is strictly prohibited without the writtenpermissionofMartinEngineering,Inc. >:; fs ABSOLUTELY @ POSITIVELY #NO EXCUSES S "Our Engineered Systems will perform to:your satisfaction,or you may oa return our.equipment for credit or a cash refund.” :| Ed Peterson Chairman caewers-,Form L3}87-4/98-aigatematarasin,ares% io rape ay my ut PATE OS MBE oy RN ErutEAEaLN [Troeinwwspacey S Gar careswaeya hae ee WANTH Koos,MERI wa 28 UME LONE fa)ueL:se aeTTeteec| as 1aiilted>acs Suara Fareaita iE suey 'meee This complete transfer chute and enclosure system-precision-engineered Adjustment Control EntrySealsforeachapplication-provides the best system to controlfugitive -ofever weenyforopt Hood coe ow fre tale plematerialandachieveairqualitystandards.rial pl and reduced dust. Benefits of PECS #€Transfer Chutes -" @ Control Dust without Baghouses.Reduces the load on existing dust collectors.MayliminatetherequiforbeghorcanceltheReedtoupgradethesesytoimprovedusta @ Achieves Regulatory StandardsComplieswithairqualitystandards by providing,effective contol of respirable and fugitive dust. ®Reduces ExpenseNomovingparts.No fan to run.No baghcartridgestocleanorreplace.System operates withoutoutsideenergysupply. @ Reduces Maintenance Expense nineReducescostsforcleanuplaborandbaghousePEGS&needs minimal synemmaintenance..@ New or Retrofit Applications©Extends Belt Life Precislon-engineered to matchReducesImpactinloadsonetoreduceabrasionandquipment,and extend belt service life by 40 percent or more.@ Prevents Plugged ChutesCcliedflowimploading,which ControlledinertiaflowthroughsystemiipchingandpedgedisTintchuteblocka B €Js.CC ¢Ty,, Best Available Control Technology In testing at the Rochelle Mine on PRB Coal,designated "Best Available Control the PECS System (without dust collection)Technology”by the Wyoming Department of ©reduced the fugitive dust load by 75 percent Environmental Quality.The PECS System isincomparisontothesameconveyortheonlyenclosuresystemthathasbeenoperatingwithconventionaldustcollection.-_permitted as a replacement for baghouseAsaresult,the PECS System has been collectors in facilities handling PRB coal. ATTACHMENT 10 FEECO INTERNATIONAL INC. 3913 Algoma Road Green Bay,Wisconsin 54311-9707 920-488-1000 Fax:920-489-5110 www.feeco.com March 3,2003 Ref:#£001840 PRECISION ENERGY SERVICES 10780 N.Highway 95 Hayden Lake,ID 83835 Attention:Mr.Tom Monter Dear Tom: Enclosed please find our Budget Quotation E001840 covering 60”wide belt conveyors to handle 1200 TPH of coal @ 55 PCF.I selected three different lengths in an attempt to develop a price per foot that you could use for your project cost estimate.Please note that the total price listed is based on 2,050 feet of conveyor.Your e-mail stated 2500'to 2800'would be required for the project.: For your review,I have included detailed data sheets that describe each conveyor and it's components.The truss selectionis based on nominal 75'support spacing.I have not includedanytransfertowersinthepricing. Tom,we certainly appreciate the opportunity to bid on your requirements and hope you find our proposal useful in the development of this project.We would welcome the opportunity to discuss any items in more detail at your convenience. Sincerely, FEECO'0 INTERNATIONAL,INC. Regional Sales Encl:Quotation #E001840 €ce.Walter Hawkins -FEECO International,Inc. FEECO INTERNATIONAL GREEN BAY WI USA 3913 ALGOMA ROAD GREEN BAY,WI 54311-9707 PHONE:920-468-1000 FAX:920-469-5110 USA PRESENTS THIS QUOTATION TO: PRECISION ENERGY SERVICES 10780 N.HIGHWAY 95 HAYDEN LAKE,ID 83835 22 FOR YOUR PLANT AT: COVERING: 60”WIDE BELT CONVEYORS MARCH 32003 £001840DATEFEECOQuoteNo.. Your# EQUIPMENT DESIGNERS AND MANUFACTURERS www.feeco.com FEECO INTERNATIONAL "BUDGET”QUOTATION #E001840 PRECISION ENERGY SERVICES 10780 N.Highway 95 Hayden Lake,ID 83835 Attention:Tom Monter Monday,March 03,2003 The following items quoted are based on FEECO Intemational designs and shop practices. 1.Belt Conveyors: 1A)Three (3)60 "*wide beit conveyors per the enclosed FEECO International Belt Conveyor Specification Sheets.(Please note,the lengths selectedwerechosenarbitrarilytocomeupwithanaveragepriceperfoottouseforbudgetpurposes.The total price of $1,142,000.00 for 2,050'of conveyor equals $557.00 per foot)Transfer towers are NOT INCLUDED. TOTAL BUDGET SELLING PRICE EX-WORKS GREEN BAY,WISCONSIN:...........cccccccsssisevesstsssensescseeccesescnee $1,142,000.00 >ASSEMBLY:Conveyor Assembly Listing for Shipping -see attached data sheet. TERMS:Progress Payments 15%of order at time of award. 65%of order in equal monthly installments. 20%at time of shipment. Payment due net upon invoice.Vv>-TAXES:By Buyer >DELIVERY:Approval drawings 3 to 4 weeks after receipt of order. Equipment 12 to 14 weeks after approval of drawings. >STANDARD SURFACE PREPARATION:FEECO International prepares surfaces in accordance with SSPC-SP-6 with steel grit.This commercial blast is a method of preparing stee!surfaces which,when viewed without magnification,shall be free of ail visible oil,grease,dirt,dust,mill scale,rust, paint,oxides,corrosion products,and other foreign matter,except forstaining. Page1of4 >STANDARD PRIMER COAT:Sherwin Williams'Red Steel Spec Universal Primer (BSONV6227).FEECO International,Inc.applies 1-2 mils D.F.T.to ensure an effective coverage. >STANDARD PAINT FINISH:Quick Dry 350 Enamel Precaution Blue,an industrial finishing enamel,is a fast drying enamel intended for coating various metal,iron,and steel products.FEECO Intemational,Inc.applies 3 mils total D.F.T.over multiple passes to ensure an effective coverage.This paint offers versatility and efficiency of application because of its quick air drying properties and it is environmentally friendly because it is lead/chromate free and VOC compliant (Sherwin Williams Paint CC-B22). PAINT NOTE:Vendor supplied components come with their standard paint system.Vv>RETENTIONOF SECURITY INTEREST:Seller shall retain a purchase money security interest in the collateral,identified as the equipment listed in the purchase order and any and all proceeds of such collateral including,but not limited to,whatever is received upon the sale,exchange,collection or other disposition of collateral or proceeds.VvWELDING:FEECO Intemational,Inc.adheres to the nationally . recognized standard,ANSI/AWS D14.4-97 "Specification for Welded Joints in Machinery and Equipment",for weld design and quality control.Qualification of welders and the procedures employed in welding are done in accordance with ASME Section IX "Welding and Brazing Qualifications". >WELDING QUALITY CONTROL:All non-destructive testing is performed by a qualified third-party source. VALIDITY:Our quotation shall be valid for a period of 30 days.Acceptance of an order during that time period shall be subject to satisfactory credit approval by FEECO Intemational,Inc.yY>SERVICE RATES:FEECO Service Rates -see attached data sheet PRECISION ENERGY SERVICES FEECO INTERNATIONAL,INC,J 4,44 BY:A Lhe LA ee"TiMatzkeTITLE:Regional Sales DATE: NOTE:"Terms and Conditions”are attached Page 2 of 4 FEECO INTERNATIONAL 3913 Algoma Road *Green Bay,WI 54311«USA STANDARD CONVEYOR ASSEMBLY LIST FOR SHIPPING The conveyors of this quotation will be assembled as outlined below. 1 2. 9 The head section will have the pulley,shaft,and bearing mounted. The tail section will have the pulley,shaft and bearing mounted. In case of screw take-ups on the tail section,the screw.take-ups will be mounted. The gravity take-ups will have the pulley,shaft,and bearings mounted to the slide brackets. Conveyor frames will be assembled in 20-foct sections. "A'frames and other smail conveyor supports small enough to fit on truck will .be shipped assembled,but not attached. A”frames too large to fit on truck will be shipped in sections for field assembly with bolted connections. Transfer and any other towers will be shipped in pieces for field assemblywithboltedconnections. Skirtboards will be shipped loose for boited assembly in field. 10.ltems to be field mounted include,but are not limited to,the following: Idlers Covers Walkways and Grating Speed Switches,Cable Switches and Other Safety Devices Chutes and Hoppers Drives and Drive Guards Belting Page3of4 -EECO INTERNATIONAL 3913 Algoma Road+Green Bay,WI54311°USA Schedule of Charges For Technical Services Rendered in 2001 FEECO Intemational is committed to providing the highest level of service and training intheMaternalHandling/Processing Industries.Our qualified service representatives are a part of an overail effort to deliver quality continuing services.We are here to support our Customers in areas relating to installation,start-up,emergency trouble-shooting,diagnostics,routine maintenance,and training. DAILY FEESActualbillings for travel and site work are based on the rates below and are annuallyadjustedonthefirstofJanuary.All time accrued to the work is recorded into our computerized cost accounting system. Mechanical/Electrical Troubleshooting and Startup:$880/day Process Start-Up/Project Management:$1020/day _ Multipliers on the above rates are 1.2 and 1.4 for Saturdays and Sundays/Holidays, respectively..Excessive daily hours (more than 10)shall be charged out as an hourly adder equal to 1/8 of the relevant daily rate. REIMBURSEABLE EXPENSES Expenses which may be incurred in addition to the hourly fees above include: Travel:Air travel (coach class),car rental,gas,taxi,lodging Miscellaneous:Actual office expenses such as internal office support,long distance telephone charges,reproduction expenses,fax,postage, etc. Layover..A $350 per day fee applies should service personnel be required to stay a weekend day or holiday without productive duties. Schedule Changes:Daily service rates for weekday work shall be applied when service personnel are unable to perform work due to schedulechangesbeyondFEECO's control. Two week notice shall be given by purchaser to ensure personne availability and flighteconomies.Purchase order must be received prior to service being rendered. INVOICESBillingwill|will be generally on a menthly basis.Paymentis due and payable upon receiptCarryingchargesforoverdueaccountsbeyond30daysofbillingdatearechargedat(1) percent per month of amount due.Time sheets and copies of expense receipts will be provided only if specified on the purchase order. Page 4 of4 'weukRational,Inc.Confidential Estinale Na'EG Praciian Enargy Services Piactalencnatgy Carve Piselstn Eastay ServicersMatch&,2003 Match 3;2005 Marek 3,2003 Agate pane bdaho owe Hain Desrcrpan Teaciplion BescipianConveyeaea"re y Coe #F 28 [Cchicayay Fis VOR GU ich AGRE aca SOO,BO inchs Weak Sec oat TSO HBO teh Wiad Tact a7 iM pan,"Fer oe NF We Tad Sactioe Welles PUY Shae Relies lay waa,Wiehdes Pulay,shal,] :boars a msarated. biaasings all atsenibtod bearings all assembled teri Wail aeebor .aistbection on ted BaconTarPay420nthdamatarCWSOTMehdiaolerCWEWichDanielarCWSdievater.,wal ne Aree ' RE |Tad SHAT eb tea wird "Tans ae SASS aarndiameterSKFBAFofequalSHE-BAF o7 equal SHE-SAF ot equalbeatingspilewblocksperblackspillowblocksAV[Sel Cleaning Hy He NY td pualey.. ''”'33 (Tad Pillay Expanded Well Sa "Eipaaded Malay Siigud -Expanded Halal ShangusedSAPAGESSe'aes 'ST Scion ket fi He WwWaeat° OF |Haiaantal Br HA Bat) :ad BOY TGAStERG Apion Seal it WT gaa Rain or Eqizal Apron Seat wr 20 1g at Marin of Equal apeon Seal at One Poa §inch bight al fides seat Ona Pos.§lich high ad].subtie dante One Pee.6 tach high adj.nibber soakswidWi1/4 inch AVR Hines2 impacts:and wl 114 ith AUR ined €b hopactss -and wi 1/4 inch AR trier &impaxKisierngarrySOATTGEeckPale"EFAITGE Dock Plata Wr ar {20a Desk Pla ST WGN.Kaiti V-Piaw a7 EGial Wart V-Plow of Equal hai VPow a eqn3daliBOT,Shy,3H PA,RMAGe]iA ;6 COaa2 PIA,AA Gaciicalen.BNE fnch 5118 bh cowaes >”B16 lech x Vt kick covers |MBch4 Wd inedcovnen7.Vukantsed Spkoe By thurs Vulcanized Spica By Oinare -Vulcanized Spice By OtharePSE|Viesighing Wars CEEA CCS ticki dix:CERT,Uinsk dia.CEMAEBkehatsAUISdegtolls.wit jeter bearings,fede with tolled beatings.roils with caller beariigs.oe (Sided Rois},Béabod {Stet Rods),Badted (Staal ftotis},SeatedngsaiahaleTEAKOSackoa:Bb ineh ala,CEMACS ich aia.falls wiltt tofer bearlogs.polly willy roller Beathage.'Yells wath foller bearings. (Sow Rola}Gasted {Stat Rotts},Sealand _{Stoul Rolls),SealedatTrawngTOPCEMA,S hala:CICEMAC,ch dw,TO)CEMAC6 iach diawoughingfalewithfoliebearing:folis with roter baarlugs foils with roll?bearingskilere.Sled Raila),Sealed {Staal Rots),Samed (Btewt Rolls},SoatedaT[Tiasning TOT CERAT,Shah dia.GY CEMACb ich div Ta)CEMA,§a'tata,ols with tober bamings folte wilt toler Beerliga tolle with folley Geasingshier,(Sieid Ralis),Seated {Steel Floss),Baalod (Slew Rotts},SealedAT[Ea fais TYCEMAC,6 ich dis”"TS CEMATTSTickaie VW CERAT,§inch ia.under howd _OB with roller beariaya-toliy Wilh taller beatings vedte wiltt tolled bearingspalrite.(Rubber Gisa Ritts),Sealet «(Rubber Disc Rails)Seated {Rubber Nisa Fotis),SealedAtidlerSpacingaCariying:7a Caltying FT Cayhg10!Retucns,40!Aturns-10°Returns -FF Loading V Leading V'boading :AY [CORoF yee a cats giblenia WO a 22 falige pelvantaed 'JENa27 Gauge galvanizedcovers,""Nnged covers an.Cnty Drggaad CoversbatsidewaatiarNfaYU a7 [Special ranstay HA WY AAplalfostiwathnalingand Master.nis lnouthational,Inc,Confidential _103 EatingBe ERiainEnornyServices Precision Energy Services PieclsionEnuigyServices|March3 03 "March 3,#03 Maich 3,2003 © 'debe idana idaho Ho,Kam Deserpuai Deacipllan Deactiption ntremyae ®Cet TT Cari.2 Can.#4 Arabag " (e waaay lackacted "Trelaaeg Wakided ed railing. Hhead and Walkway wii,AY wi A supports and arghe saceag, ., .EY [Walkway wah TORE larg x 0 Wich wide SY WenigxTen wale TEC Weag ¥30 ach aseSupportsandOneBide"Gag Sada :Onw Side. |pipe rally ao ...- SP WWalkoay "Hisar Uae Har Giang at Sisal Wale War tiraling tar Weal Uinly Bar Usaling fav|grating |30 tots adda watkway 30 inch wide walkway 20 Inch wide watkwayLY:7 Bch nT .beads:ordfalling . ST adder tit Wy "Ti re Safety Gage .--.a SUPA Fane "Se TY Rak and teehee OF UF gk "one ke UP Tigh,end log ef ay ga cha FT a ig SE Angle leg Ht Bini wt suppcute,.su oe . : BE [Speckal tapparts...Hoad ETal Supported Heads Tat Siggarid Head &Tal Sopparted BT |2a ipead Ti}Process Conia Sytema TY Precast Conver Systane {T)Piccaks Ctakral Systems.britches Maxigatd A1500 yf boacked Maxigerd AiS00 a1 brackel _Masigard A150 wi bracket SE Eriaiganay”z Cone RET toniplite 1d Chand Cane RST congiala,Cap LT canplelesopsudicties,"cable ad bykts of Equal.wi gable end ries or Equal vd catde and tikds or EqualDnSideGeeBate.Gina Side"£3|Ball aelign TY Bar Csi Cone TAT Uh par Caw Care TAT (3)pae Conv Comp TATsvilchan,conyptete wih takie or Equal comptste wah brkis a6 Exquat”pomplete with brkis or EqualBYPkgChalemeames3.)NA Sadik |. : Cig GY)79 4 Fay BT Marg Sapo sry "BERUCSEE "BSP SFLslpainar""Brerais Villains Univeriat Primer STREET URIS Piner "Skarean Wilisnia Untvereal PrimerBH[dorm dal "RRC |;NA BS Finch Shaais Witenes Chick Diy IR)Enamel Gherain Wikies Guck Wry a Enamel StS Bona Wibarrie Chick Dry 328)EmailSa|Sateky Colors Fal HY FA " OT lGakanieng s her i;A 6S [Packing8TaadingER,2 ne Related eaeresTAsaaribaly*FEE Siahiaarg Ascari FEECU Mardad Assembly FEECH StandardAssamity laater.nls ATTACHMENT 11 q /I 1c tow>”minerals March 26,2003 Precision Energy Services,Inc. 10780 N.Highway 95 P.O.Box 1004 Hayden,1D 83835 - Attention:Mr,Sarn Futton Subject CoabFired Power Plant Barge Univading Equipment Bethel Alasia Metso Minerals Reference No,W-8S383 Gentiemen: tn accordance with our recent discussions,we are pleased to provide the following budget information fer the "To designandsupply,F.O.8.point of manufacture,one (1)2,000tohCoal,Barga Mounted Continucus BargeUnioader,to unicad 5,000 ton barges,with a 120 ft.boom to shore and a 2,500 ft ground conveyer,your budgetpricesare: Barge for mounting the Unicader ;.$1,900,000 Contr1uous Barge Unfoader,including a Barge Haul System and Boom to shora $3.600.000 2,500 ft,2.000 teh Coal,Ground Conveyor..$1.900.900 Total F.O.B.Budget Price $7,490,000" General Notes: 1.We expect that the barge unioader would be preassembled at a West Coast shipyard and then towed toAlaska.We estimate that this assembly would cost about $1 '800,000. 2,'The cenveyer equipment will require approximately 36 truck shipments.Twenty-one of the shipmentswouldmestlikelybefromastructuralfabricatorinBritishColumbia. $3.Cost for fleld advisory and start-up and commissioning people are not included in our budget drives. If there are any questions,or if additional information Is needed,please contact me at (412)269-5140. Sincerely,= METSO MINERALS|INDUSTRIES,INC. Metso Minerats industries,Inc,4800 Grand Avenum,Phoburgh,PA 1S522$-1599Tel.+3 412 269 5000 (Fax +1 412 169 1161]were.mecsominersia.com TOTAL P.@2 Tom Monter From:ben.dudek@metso.com Sent:Wednesday,May 14,2003 10:59 AM To:Tom.Monter@pes-world.com Ce:berezowski@pes-world.com;tim.sexton@metso.com Subject:89383-Coal Stacking-Reclaiming system Tom, After some consideration,we have come up with what think is a cost effective storage building solution The attached drawings provide the storage building clearance dimensions and the machine arrangement. The budget cost for this machine is e $US 4,400,000 (4 millions-4 hundred thousand US dollars) Price is FOB,Portland Oregon area.The price does not include rails and rail supports,yard conveyor,field wiring materials or equipment erection.Building cost is not included.- If you have any further technical questions,you may contact me.if you have commercial questions,you may contact Tim Sexton as listed below. Best Regards Ben Dudek Principal Engineer . Metso Minerals 4800 Grand Avenue Pittsburgh,PA 15225 e-mail:ben.dudek@metso.com phone:'412-269-5214 fax:412-269-5161 Tim Sexton,Proposal Manager e-mail:-Tim.Sexton@metso.com phone:412-269-5140 IMPORTANT.This email,including its attachments,is from Metso Corporation or its affiliate and is intended only for the named addressee(s).This email may contain confidential information and it may be subject to privilege,copyright and privacy.Unauthorized transmittal and other use are prohibited.If you © have received this email in error,please return it to Metso and delete it from your system without retaining copies thereof.Thank you. 7/10/2003 teh ifs5 . xe. Lx+E FRI }Hees \\; | PpaCesWile \\ i ed ai |Hf|we 4 allal i fipal ae | . mg¢ -_ i a 3 stay&AoFi5 - -ae 5 149'-0"|||||||||||||||||219'-9"i2ex°-¢° ax-6"os kee 'et 28 XY ; ONS NhiOX 9 A 3 2 °c i G Pl 3 z i ' j 5 i 7 D parle Mendingmetso|'deonuemineralsrompPa15228 PRECISION ENERGY SERVICES INC. SOM POWER PLANT BUCKET WHEEL STACKER/RECLATIMER cQweeveypeemea)ON =a 4 ras ane oO."Toa 4 migpeTages ay MS r-7 De 00 One rose,resiweld ©OER recs wt I -2 4 :S 3y .baer 68 yh @amc one :[-4 ar a 7 on ee ee ancem mS == 7 ""fae AS ORD ORA nQ j be rendoes mevaree [|od tS A a Eee weg3a3 89383-0-001_|0 4 |.3 {ji T ATTACHMENT 12 4238 incueritalDriveCONTINENTALCONVEYORPostOfficeBox400 &EQUIPMENT COMPANY nas0400ANESCOCOMPANYFax206/487-4233'The World Leaderin Conveyors and Conveyor Technology a.88 OPCES:SPRABIGHAM,AL-BOSTOR,MA-CORBIN,K¥--DELIA,BRETIEN COLUMBIA-GASSARUEY,WA-HOUBTON,TX-LAKEWOOD,CO-LOS ANGELES,CA-MT.VERNON IL--MEW YORK,INY-OAK HILL,WYOMABA,IE -PURLADELPISA,PA-PITTEERIRGIL,PY-PORTLADE OR-GALT WAKE CTY,UT-@ALYEREVALLEL VERMA,PL WOMEN,Al, March 10,2003 Precision Energy Services 10780 N Hwy 95 © Hayden Lake,ID 83835 Attention:Mr.Tom Monter Gentlemen: Thank you for your interest in our company.We are pleased to enclose the literature you requested about our products.After you have had an opportunity to review this material, we will be glad to answer any questions you may have and to assist you in any way possible with lowering the cost of your materials handling requirements.You may contact our field representative,whose name and address are shown below,or contact us there at the factory at 205-487-6492. If we can be of additional assistance,please let us know. Sincerely, CONTINENTAL CONVEYOR &EQUIPMENT COMPANY aeN.Atkinson Manager of Engineering/Engineered Systems njm Enclosure ce:Jerry Theusch,District Manager Jim Smothers J.T.Industrial Sales Mike Roberts 5319 S.W.Westgate Drive,Suite 105 . Portland,OR 97221 Telephone:503-297-5628 Fax:§03-297-5629 Tom Monter From:Russell Beach (rbcce@starband.net] Sent:Friday,March 28,2003 1:59 PM To:Tom.monter@pes-world.com Ce:Jim Smothers;Ron Stough;Mike Roberts;Nelda Madison;theusch@attglobal.net Subject:Budget for Coal Handling Conveyor,Bethel Ak Tom, We offer the following budget for the above referenced project. One (1)54 inch BW conveyor to handle 2,000 STPH of coal at 55 PCF to include the following: Terminals: One (1)Remote Dual 150 HP drive (motors,reducers,couplings),discharge pulley,discharge hood/chute,belt scrapers,tail loading section with impact idlers,pulley outfits,bearings,and gravity take-up. Intermediate Structure: 54 inch BW truss (elevated 20 'above grade)with 180 degree belt covers,safety switches with pull cord,walkway both sides,troughing and returm idlers,belt,and bents spaced at approximately 80°centers. Your Budget Price,FOB Factory,Winfield,Alabama is.) .$907 000.00 The above is based on 1,400'centers and elevated 20'above grade.Please call with any questionsyou may have or if you need additional information. Regards, Russell Beach 3/28/2003 Tom Monter From:Russell Beach [rbcce@starband.net] Sent:Friday,Apri 04,2003 1:46 PM To:Tom.Monter@pes-world.com Ce:Mike Roberts Subject:Bethel,Ak Coal Handling Budget Tom, !apologize for not responding to your request earlier this week. Estimated freight from Winfield,Alabama to Seattle port is $45,000.00 for the Bethel project. Erection should fall in the range of $300,000.00 to $400,000.00. Please let me know if you need more information. Regards, Russell Beach 7/21/2003 ATTACHMENT 13 Gareo, ProjectManegement 5 Designpecitications About Garca Partiaiio Our Builders Fabrication Contact Us What's New! Site Map Home Page searcn Garco Building Systems Address:. S.2714 Ga d. Airway Heights,WA 99001 Telephone: 509.244.5611 800.941.2291 Fax: 509.244.2850 http:/Awww.midcoinc.com/about/mbv.html Maximum GarcoBuildingValue-saerssoons Value means more than simply what you pay for a building right now.Garco builds in the flexibility and solid construction that keeps delivering over the long run... That's "Maximum Building Value”. Measurable Quality Maximum Building Value can be measured in many ways,beginning withquality.At Garco Building Systems,quality means each project receives thekindofattentionthatonlytheindustry's best engineers,detailers and craftsmen can provide.Garco's design policies exceed even the strictest ofgeneralengineeringguidelines.Our custom-tailored drawings anddocumentationaregenerally7TT'i og ne ew en re nna ee Olviewedasthebestinthe.BULEL OTR GS Nhe # industry.And our aggressive ivH LONG DALUE .iein-house quality management i program,as confirmed by certifications from the most exacting independent qualifiers,ensures the structural integrity of each client's final product. Garco is a member of the Metal Building Manufacturers Association and has American Inc,(AISC)Category MB Certification.Also,we maintain ICBO Fabricator status,Canadian Welding Bureau Certification and numerous other credentials of quality.This makes us part of a small,elite group who care enough about quality to put their products and people to the test. Diversity of Expertise Garco Building Systems continually demonstrates the ability to engineer and manufacture a full range of products,from our standardized "Express"structures to multi-faceted heavy industrial complexes;from attractive commercial centers and institutional facilities to sophisticated officebuildings.We have the proven ability to meet each client's unique set of needs -and the willingness to do it. Garco's staff acts in a supporting role to the overall project design team.Ourreadinesstoparticipatewithotherdisciplines,offering the experience gained on a wide variety of projects,is a valuable resource our clients depend on.Our experienced project coordinators act as the sole point of communication throughout the construction cycle.Garco's team approach, coupled with our respected ability to analyze,problem solve,visualize and design cost effectively,facilitates the successful completion of the most challenging projects. Ability to AdaptThekeytoGarco's success in providing quality products and customer _service is summed up in one important word...flexibility.We believe clients 7/31/2003 should not be asked to compromise the functionality oftheirbuildingtomeetthemanufacturer's standardized product formats. Garco provides buildings designed to meet each customer's needs,with every project viewed for its own set of peculiarities.We regularly customizeourprojectdrawingsanddesignstomeetclientrequests.We account for field construction requirements and special site conditions throughout the project,on everything from connection designs to the shipment of steel!for just-in-time arrival on site.Garco's manufacturing schedules are planned torespondtothemoststringentofconstructiontimetables. -Clients know that when Garco Building Systeme jjoins the project tear,theywillbeworkingwithanorganizationcommittedtosatisfyingtheirunique requirements. Capacity to Perform Our manufacturing facility is able to offer a wide variety of superior factory applied primary and secondary coatings designed to withstand the most severe environments.We have the ability to handle almost any size and shape structure required in our manufacturing area.And we have the tooling and machinery that gives our engineering staff the flexibility to design structures using the best possible solution rather than designs dictated by the limitations of equipment. From well maintained manufacturing equipment to continual computer upgrades that ensure the flexibility and power to efficiently handle compiex projects,Garco practices a philosophy of giving our people the tools to get the job done right.Reinvestment in the company is one example of Garco's commitment to meeting client needs today and in the future,ensuring our continued ability to provide leading edge product applications. Solutions Oriented Garco has beenin the metal building industry since 1958;many of our customers have been with us nearty as long.Clients tell us that they view Garco as an extension of their company when doing a building project.We believe this reflects our commitment to total customer satisfaction..,a record of outstanding service resulting from a strong sense of urgency throughout the company to provide the best value available in the time frame required. Over the course of the project,changes may occur for a variety of reasons;we accommodate these changes quickly and smoothly.Garco is a solutions company. Clients know when they come to us that we'll do more than design to meet specifications and codes.We will look for way'to respond to each of their needs in the most efficient and beneficial manner. Partnership ApproachUltimately,our goalis this:upon project completion,we want every client to walk away with absolute confidence they made the right decision to includeGarco¢on their project team.This means there are no unanswered,questions about the design or material provided<4;by Garco.They have a sense of security that their 47.structure will continue to perform as it was :intended long after building completion.They :know that future questions,modification requestsorClarificationswillbedealtwithquicklyand = completely. http:-//Awww.midcoinc.com/about/mbv.html 7/31/2003 This feeling of trust comes from Garco's strong adherence to the qualities ofintegrity,honesty and craftsmanship.We cultivate a relationship with our clients based on professional respect and mutual effort.Clients enjoy working with us and know we will always respond with excellence. Perfect Fit Just as each building projectis unique,so are the priorities eachprofessionalbringstotheproject.But when the focusis on quality,pesto:accuracy of fit,ease of erection,customer service gy and dependability,Garco has the proven ability to Faaj-=™perform.We believe that the combination of all 3g these factors is an accurate measure of Maximum Building Value. For an opportunity to experience working with an © organization that puts your needs first,from beginning to end,call your local Garco builders or Garco Building Systems.We look forward to providingyouwithMaximumBuildingValueonyournextbuilding,roof system orsteelstructure. Metal Building Systems !Maximum Building Value ProjectManagement|Design SpecificationsAbcutGarco|Portfolio |Our BuildersFabrication|ContactUs|What's NewSiteMap|Home Page !Search - Last Updated February,2002 All original graphics and text are copyrighted ©2002 by Garco Building System:and may not be used without permission. This site created for Garco Building Systems by:WebMaker -Web Site Productions http://www midcoinc.com/about'mbv.htm!, 7/31/2003 Tom Monter From: Sent: To: Subject: Tom: Mike Berry (Mike8@garcobuildings.com] Wednesday,May 21,2003 12:02 PM tom.monter@pes-world.com Coal Cover Building for power plant,Alaska Please note the following budget information regarding the coal cover building for Alaska power pliant. Feel free to Regards, Mike Berry Building Dimensions:250'wide x 1300'long x 45”eave height Building size:325,000 sq ft Frame type:-Gable clearspan rigid frame Roof &wail panel (full coverage):-24 GAcolor Roof snow load:50 psf Wind load:110 mph;Exposure "D* Seismic Zone:UBC Zone 3 Collateral load:10 psf on roof Building supply budget price:$12 per sq ft Building shipping costs:.$1.5 per sq ft Building erection hours:20,000 manhours Building erection costs:not included Building weight:18-19 ibs per sq ft contact me with any questions or comments.. Manager Heavy Industrial Tel:509-444-7106 © Cell:509-979-0628 7/3 1/2003 ATTACHMENT 14 eR=|d ioN Radian LLC is the Industrial AgentLLCForAirSupportedStructures Manufactured By Air Structures American Technology,Inc (A.S.A.T.J) SUBJECTIVE PROPOSAL AIR SUPPORTED STRUCTURE FOR CUSTOMER:Precision Energy Services APPLICATION:400,000 mt coal storage Date:15 April,2003 Size:300'W X1000'L X 125'High with rectangular 90 degree corners 'All of the structure's welded seams will be constructed to be stronger than the fabric. The total envelope will be pre-engineered to fit your site and anchorage grade beam. The vinyl coated polyester can have an optional clear hard barrier coating,"Stay Clean',formulated especially for air supported structures which keeps the structure clean and increases resistance to abrasion.The strength and specifications for the outer fabric are as follows: a.Total Weight:31 oz.Per yard b.Color:White Translucent Cc.Base Type:Polyester d.Trapezoid Tear 106/146 Ibs. e.Grab Tensile 934/923 Ibs. f.Strip Tensile 595/564 Ibs_/in. g.Fire Retardant:Meets NFPA 701,meets Calif.Fire Marshals Req. and Pass 2 sec.Flame-out Method 5903. h Operating Temp.Minus 40 degrees F.to +150 degrees F. Construction:The structure is to be fabricated by means of dielectric welded seams.| A.S.A.T.I.has the equipment and 40 years of experience to produce welded seams, which are as strong as the fabric itself.Heat sealed seams are used throughout the major portion of the structure envelope to provide maximum strength in high stressareasandtoserveasripstopstohelppreventtearpropagation.Larger buildings are made in sections and joined on site with our 35 year proven clamp system. Patented Bias Safety Net System:(100%Stress Relief) For 40 Ibs snow load and 110 mph windload.The bias hamess net system is prefabricated totally encapsulating the air structure envelope.This harness systemuniformlyreleasesfabrictensioninalldirections,transforming fabric loads directly tothehamess.When fabric stress is transferred to the hamess net system,fabric loadwillbeamaximumof6lbsperinchinalldirections.Roof convolutions are less than 4 inches when the structure is inflated to 1.5 -3.0°water static pressure.Low .Radian,LLC1195E.1100 N.,Shelley,Idaho 83274 USA,Phone 1 208 243 3450 -Fax 1 208 485 7808email:lfielding@radianlic.us convolutions prevent trapping of snow and water.The bias hamess net system shall be constructed of pre-stressed galvanized vinyl coated steel cable (3/8"diameter minimum)which is bias interlocked to form a complete encapsulating net so the net will lay evenly distributed over the total air structure fabric envelope.Proper distribution of the hamess net system is designed to allow the fabric to carry a minimum stress load during 110 mile per hour winds and an internal pressure of 1.5 3.0"wsp.The bias construction of the hamess system causes the wind load side and leeward side of the air structure to balance between opposite forces such that there is hardly any noticeable change in the structure's shape of stability during heavy wind load. Continuous Airtight Anchorage System: This method of continuous anchorage at the base of the structure has proven in actual usage to be extremely successful and the best that can be offered.The angle bar oraluminumextrusionissodesignedtoincorporateholddownrequiredforthehamess net system and the air structure envelope.This system eliminates the need forseparatelargeholddownpoints. *Seepage of water into the structure at the base from snow and rain will be minimized. *Air loss around the base perimeter is greatly reduced providing savings on inflation. *A.S.A.T.I.Anchorage system is designed to leave no protrusions above grade when the structure removed. *The Air Structure Institute Design and Standard Manual rates the continuous clamp anchorage system as the most airtight anchorage system available. *Buyer to provide concrete foundation with anchors and steel,or aluminum extrusion, for installation into grade beam.(Tum-Key Installation Estimate Available) Field Junction Seam Joints;4 A.S.A.T.I.engineered a mechanical field seam joint to allow the total envelope to be separated into smaller sections for easy erection and removal.The joints are mechanically sealed with aluminum non-rusting clamps.The Air Structure Institute Design and Standards Manual shows clamped field seam joints to be the most airtight seams available in the industry.The seams are extra protected from water leakage by an exterior seal flap,which locks over the mechanical joint. Entrance Openings And Fabric Boots:0 All door openings will be fitted with fabric roll-up flags,which will be laced closed when the structure is inflated.This allows the structure to be inflated without first connecting doors to the structure's fabric (which is a difficult job).The fabric flaps can also be rolled down and laced closed during the structure's use so that doors can be removedandrepairedwithoutcausinganairpressuredropiintheairstructure(a great safetyfeature). Personnel Exit Door:3 The primary purpose of this dooris to give an emergency means of egress.Due to theairstructure's static pressure on the interior side of the door,we have engineered anemergencydoorthatopensoutwardwithoutforce.The door automatically retums Radian,LLC 1195 E.1100 N.,Shelley,Idaho 83274 USA,Phone 1 208 243 3450-Fax 1 208 485 7808email:Ifielding@radiantiic.us closed against the air structure intemal air pressure.This design has receivedcompleteacceptancebytheBuildingCodeOfficialsandtheAirStructureInstitute's design standards. *All aluminum welded construction that never rusts and never needs paint. *Lightweight and easy to remove when the structure is removed. *Lexan vision panels are unbreakable and offer lifelong service. "Free standing with panic hardware and outward opening and self closing. "Emergency exit door with top panel for mounting ASATI's supplied emergency exitlighting. *Exit signs lights (pre-wired). Revolving Door:3Ourrevolvingdoorsare the most efficient method of moving peoplein and out of an air structure.As you enter or exit,each door vane acts as an airlock.Therefore,large numbers of people can move safely in and out of the structure without causing a pressure drop. *All aluminum welded construction that never rusts and never needs paint. *Lightweight and easy to remove when the structure is removed.*Lexan vision panel is unbreakable and offers lifelong service. Vehicular Airlock:2 (15°X 15'X 80') Two doors will be provided for each airlock for allowing vehicles and equipment to pass in or out of the air structure without changing the safe operating internal pressure.The pre-wired electric motors with push button stations are designed so that only one door: can electronically open at a time.Therefore,one door is always closed maintaining the air structure's internal pressure. «Complete with one U.L.approved electric motor,push button stations and steel roll updoors."Steel frame,fabric cover and hardware are pre-packed and complete for assembly. 'Manual pull chains are supplied for each door so doors can be opened manually should electric power fail.Primary Inflation System:1Thisinflationsystemsupplies internal air pressure to inflate and shape the structure envelope.When the structure is pressurized ta 1.5”wsp (internal pressure),the envelope of the structure is pre tensioned and stabilized to withstand aerodynamic forces imposed by 80 mph winds and live loads caused by snow load. *Complete package self containedin an exterior weatherproof housing.*Electric motors and components are UL listed. *Blowers are ratedin accordance with A.M.C.A.standards. «Electric motors voltage available to meet your specific requirements. Control Panel:(1) Provides a visual gauge and indicator lights to monitor operation of each blower and to show the level of operating pressure for the air structure building system. Radian,LLC1195E.1100N.,Shelley,Idaho 83274 USA,Phone 1 208 243 3450-Fax 1 208 485 7808 email:Ifielding@radianilc.us Secondary Pressurization &Auxiliary Backup System:1Thisbackupelectricandgasmotorinflationsystemispressure controlled to supplyinternalairpressuretoinflateandshapethestructureenvelopduringpressureloss or primary failure.When the intemal pressure drops below 1.0 w.s.p.or on electrical power failure,the unit will activate automatically and continue to supply additional c.f.m.until the high limit setting is tripped and resets the system or power is restored.>Complete package,self contained in an exterior weatherproof -housing.>Motors and components are UL listed. >Blowers are rated in accordancewith A.M.C.A.standards. >Electric motors voltage available to meet your specific requirements. >The system is complete with a 12 volt battery,automatic choke,automatic controls with pressure sensing probe and automatic regulating battery charger,all enclosed in a weatherproof enclosure. >Gaseous fueled engine designed to operate on propane or gasoline.(Choice of one upon placement of order:Diesel upon special request 1.Pre-packaged and pre-wired complete with electric motors,inflation fans,automatic dampers,all assembled into an insulated weatherproof exterior housing,painted with a corrosion and heat resistant finish complete with all required ducting. 2.All components U.L.listed.Factory Mutual Insurance and F.I.A.available onrequest.Inflation fans A.M.C.A.rated manufactured to meet N.Y.C.code. 3.Electric motors to meet site electric service.Natural gas,propane,oil (choice of one must be specified upon placement of order) *Engineering Drawings and Calculations stamped by A.S.A.T.N.Y Professional Engineer PRICE:$2,562,192.00 fob Upstate New York *Prices quoted do not reflect duties,federal,state or local taxes and are firm for 30 days. Lead Time:16 to 20 weeks after receipt of signed contract Warranty:10 years Pro Rata on air structure fabric envelope material &workmanship.1 year on all other mechanicals Terms:35%Upon signing of contract 30%Upon start of manufacturing 30%Upon completion of manufacturing , 5%Upon delivery or 30 days after completion of production,whichever comes first. Radian,LLC1195E.1100 N.,Shelley,Idaho 83274 USA,Phone 1 208 243 3450-Fax 1 208 485 7808email:|fielding@radianlic.us Final payment to be paid by certified check. Technician For [nstallation:Includedfor 10 days Any future services of a Field Technician will be provided at $600.00 per 8-hour weekday (overtime hours where applicable)plus direct travel,food and lodgingexpensestosuperviseyourlaborforspreadingandetectingoftheairstructure. Options: Daft Hang Lite 2000 Lighting System:The Hang Lite 2000 System is an integrated package of precision engineered components that require no ground support poles and consist of a complete light _ assembly,fixture,bulb,wiring and flexible hanging support system.Hang Lite,is so lightweight it can be hung from air structure fabric walls,roof,and or positioned wherever it will produce the maximum reflective retum of indirect lighting to the interior floor surface.Result:more interior foot candles of light with the expenditure of 20%to 30%less wattage. *No perimeter poles inside the structure. *Operational cost reduced by 20 to 30 percent while increasing foot candles of ilumination by 100%. *Can be removed by one person and stored iina closet size room if structureis to beremovedseasonally.*No support poles,eliminates possible damage to fabric structure.. Complete Turnkey Installations: e Price upon request &review of site.e Concrete foundation,anchorage,electrical work,fuel supply,mechanical equipmentstartupandlabor&equipment for unloading and installation of structure. Radian,LLC 1195 E.1100 N.,Shelley,Idaho 83274 USA,Phone 1 208 243 3450 -Fax 1 208 485 7808 email:Ifielding@radianilc.us bs *.ay)ASTeg Sea: bebessOe. ely.spe" ats x nay SeexF) Tom Monter From:Linden Fielding [Ifielding@radianilc.us] Sent:Monday,May 12,2003 3:16 PM To:Rafal Berezowski Ce:Tom Monter Subject:Re:Air supported structure Dear Rafal /Tom, I can answer some of your question now and hopefully can answer the rest tomorrow. 1 -The normal air pressure to maintain the structure is between:1.75 -2.50 water column inches.Thelowerendoftherangeissufficientincalmweather.The higher end of the range is needed to support the structure in high winds or when there is a snowload.Some operations choose to keep the pressure at the high end rather than change the pressure depending on the weather. 2 -The air leakage or make-up air for a structure this size would normally be 7,000 -10,000 cfm. However,in this case where you are concerned about a build up of combustible gasses it is necessary to vent much more air.About 2 years ago,Elk Run Coal Co.in Whitesville,West Virginia put up several ASATI air supported structures to cover their coal piles.I have a call in for the Chief Engineer,Mr.Kenny Williams,to discuss how many air changes per hour they use and also about their emergency fireplan.He was unavailable today and I will try again tomorrow.Feel free to call him yourself,ifyouprefer.His mumuber iis 304 854-1890 Ext 206.3 -The cost of the building resized to 300'W X 1600'L X 125'H would be $3,836,278.All of the items includes and excluded would remain as in the previous quote.In addition,the cost of the extra blowers and vents to provide the needed air changes are not included.We first need to determine what the target will be for the extra air volumn. I will put in the mail to you a couple of press releases about the Elk Run project. Sincerely, Linden PS.On another subject,have you been involvedin any power generation project that uses agriculturalwaste;i.e.straw,for a fuel source? |[x]Close Signature.JPG4 1/21/2003 Tom Monter From:Linden Fielding [Ifielding@radianilc.us} Sent:Friday,May 23,2003 11:38 AM To:Rafal Berezowski;Tom Monter Subject:Coal Storage Questions Hi Rafal /Tom,° |contacted Mr.Kenny Williams and Elk Creek Coal to discuss your concem about the amount of dust which mayescapefromaroundtheconveyorpenetration.Their solution to the problem was to construct a smail air lockaroundtheconveyoratthatpoint,then attach a small dust extraction filter to the air lock.He said it has workedverywellandhasnoconcemsaboutit. As to man power to erect the building,the 1600'long building,it will take about 1000 man-days.The crew will need to be a minimum of 30.However,up to 60 men could be utilized.The more men,the shorter the erection time.Depending on the crew size,erection will take from 3 to 6 weeks.The work will be mostty manual labor. This also assumes the men are physically strong and quite productive.|know in some cultures,you have to make adjustments to the required labor force due to the physical size,strength,and efficiency of the local labor force.Also needed will be 2 -all terrain,10 ton,forklifts. Please let me know if there are any other questions.Also,keep me in mind on any of your other projects thatmayneedaconcretedomeorairsupportedbuilding. Linden Fielding Executive Director Radian LLC ifielding@radianlic.us 'Ph 208 243-3450 Fax 208 485-7808 [x] | te] Pet Coke Storage, Concrete Domes,St,Croix, "Is. Fertilizer Storage,Air |Supported Building,Gulf Coast,USA||| 7/21/2003 Tom Monter From:_Linden Fielding [Ifielding@radianllc.us] Sent Thursday,May 15,2003 8:04 AM To:Rafal Berezowski Ce:Tom Monter Subject:Re:Air supported structure Dear Rafal /Tom, have a few more details about the operation of the Elk Run Coal facility.They store up to 60,000 tonsofcoal.Thisis at a mine so they are constantly filling and emptying the storage.Inside they have 2 - D10 Caterpillar dozers that push the coal into slide gates that lead to an undergound tunnel.With the 2dozers,they can load out 5000 tons per hour. They exhaust 35,000 cfm of air.This volumeis this high due to the constant operation of the dozers.Their coal is also giving off a significant amounts of methane gas since it is fresh out of a mine.I canseethattheamountofexhawstairneededwillvarygreatlydependingonthespecificenvironmentofoperation.If Bethal were to use an electric powered reclaimer,and,if the coal is being shipped in andbashadachancetoair-off,the amount of exhaust air could be reduced significantly.But,I believe you're the experts in this area. On another subject....'m involved with a company that has been running a County landfill operation in S.E.Idaho for the last 14 years.The landfill site is full and is closing down.This company is locking for another venture to get involved in.One idea we've discussed is a power generator that uses straw or other ag products for all or part of it's fuel.Hense,my previous question about your knowledge of such an operation.I suppose,since it may be considered altemmative energy,there may be some Government grants available.But the bottom line is still the same,can a generator using this type of fuel source be profitable???? I'd appreciate your insite on this matter.And,let me know if I can research any other questions concerning the Bethal Coal Storage Project. Linden fe]Close Signature.JPG 7/21/2003 Tom Monter From:Linden Fielding [fielding@radianilc.us] Sent:Friday,May 09,2003 7:21 PM To:Tom Monter Subject:Re:New Specifications for an air supported structure Hi Tom,. I've attached a picture showing how conveyors are run in and out of an air supported building.To remove the combustable gasses,we could add some additional volumn capacity to the inflation fans.Then attached special vents onto the building that will exhaust the proper amount of air whilemaintainingtheneededpressureinsidethebuilding.You tell us how many air changes per hour you need and we will supply the proper sized fans and venting to achieve it. The flamibility of the fabric we use is discribed as "difficult to ignite or resists flame."We can treat the fabric with an additive that improves the flamibility to "non-combustable".This treatment also improves the UV and dirt resistance,which extends the life of the fabric.However,the fabric will melt or disinigrate if it is exposed to continuous flame or extreme heat. I willgoto work on an estimate for the new size and will respondassoonas possible.I will also talk toothercompanieswhoareusinganairstructuretocovercoalandaskthemabouttheirfirefightingplan. Be sure to view the attached pictures of the conveyor treatments. Sincerely, Linden [x]Close Signature.JPG 7/21/2003 CALIFORNIA DRPARTMENT OF FORESTRY snd FIRE PROTECTIONOFFICEOFTHESTATEFIREMARSHAL REGISTERED FLAME RESISTANT PRODUCT Product:Registration No. DURASKIN Fa&-63001 Product Marketed By: VERSEIDAG INDUTEX GMBH INDUSTRIESTR58 This product meets the minixann requirements of flame resisters excablisbed by the California 'State Fire Massbal far products identified in Sectian 13115,California Beatth and Safety Code. 'The scope of the approved use of this product is provided in the cunrst edition of the CALIFORNIA APPROVED List OP FLAME RETARDANT CHEMICALS AND FABRICS, GENERAL AND LIMITED APPLICATIONS CONCERNS published by the California State Fire Marshal.. Alu tWy-2-Firpires:86'30/2003DepryBidenFire,Sd archal . | vee *d "9E'73 80/ST/S8 VaSPcesrts twee % 31 oz.ASAT Stay Clean Structural Fabric Specifications Pass Meets Cafit.Fire Marshal Req.,UL 214,NFPA-701 tests. STviz STANDARD Base -T PolyesterFabric-Weight 10 oz/sq.yd. *Transtucency 14% Fished Coad ey Method 5047 oz/sq.yd. Tongue Tear 290/285 ibs. Method 5134 &x 10°sample size Trapezoid Tear 106/146 Ibs. Method 5138 ASTM D5733-95 Grab Tensile 934/923 ibs. Method 5100 Strip Tensile 595/564 Ibs-in. Method $102 Adhesion (min.}12 bs fin.Method 5970 HydrostaticResistance 500 psiMethod5512 Dead Load 2°seamRoomT268Ibs. 180°F716 133 its. Cold Crack MIL-C-20696C Pass -40°FPara.446 Rame Sample not consurnedResistancewithin2minutesFR2sec.Fame-out Rell Specitics 211 South Ridge Street,3rd Foor,Pye Brook,New York 10573 (914)337-4500 1-800-AIR-SLDG FAX:(814)937-6331 . :were.airbidg.com ngSIGSote COAL MINE OPERATOR WILL STRIVE TO KEEP DUST UNDER BIG BUBBLE supported structures without ground orheightrearictions,The dames can with gand snow andice loads to 50 th per sqftandwindspeedsto150mph.dexign-ers chim,"This technology allows fabric loads to transier from the fabric to the bias cablenet astem.so the envelope is GoadnowunderthesamepressureasitwouldBz he without the net.”sivs Donato Fraioli Se.ASATT CEO and cabkanet inventor. The domes are guaranteed for 10) years and are expected to last 20.Once a dome is pressurized.contractors willinsallaventiadensstemtofilerpar ticukates frown the air.A Xhip blower willneveupte120.000 cu ft ol air per hour §and prinide three air changes cach hourinthestructures,Each dome hasa spare.The US.Mine Safety and Health Adminisriion and the state Dept.of Environmental Protection apprwed the plans in March."Our current project isaperimeterfoundationlorthelingdome,requiring mininiul excavadon and 1.000 .ca yd of concrete.”sivs Renny Willkuns,EIK Run propect manager und chief eng+neer.Ie includes a (H1t-high retaining wall.Williams saws the biggest challenge Was engiveering around convevurs and sucking whes that will remain in con-tinuous operation."The dome wouldhavebeenmuchcheaperhadwebuiltthefacilitypriortobuildingthestackingtubes,”he says.The job is scheduled towrapby.mid-May. sesWorldTideGenter :a By Tudor Hampton RAISING A DOME Fabric bundies are placed and unrotedbycranepositionedtoreachcenterofconveyorfloor(1).Spreader bars Eft News «News *News *News ©News =News Elk Run Constructing High-Tech Dome Facility Elk Run is currently constructing an air-supported building to coverthedirectshipstockpilesadjacenttotheChessProcessingPlant.The -building,when complete,will be supported only by air pressure supplied by an electric blower.This blower will also supply fresh air whileequipmentisinoperationinthefacility.It will be equippedwithtwoadditionalback-up blowers and a back-up power generatorto ensure that no mechanical failure or power outage will cause the dome to deflate. When completed,the facility will measure 490'L X 240'W X 111)'H;;this is approximately 2.7 acres and will require 9 million cubic feetofairtoinflate.To make room for the building a retaining wall 360 feet in length and up to 24 feet in height has been built.The foundationforthebuildingwillcontainnearly1,000 cubic yards of concrete and.be more than a quarter of a mile around the outside of the building. Construction began in January and is on schedule to be completedsoon.The facility will allow Elk Rum to enhance the quality of its direct Earty construction of the Kigh-tech dome facilisyshipcoalbyareductioninmoisturecontent Kenny Williams ChiefEngineer,Elk Run Model ofhigh-tech dome facility.Fondationof high-tech dome facility at later stagesofconstruction. ATTACHMENT 15 1)@Geometrica 10 July,2003 Mr.Tom Monter, Project Engineer Precision Energy Services 10780 N.Highway 95 Hayden,ID 83835 Dear Mr.Monter: More and more plants and mines worldwide have realized the benefit in covering their stockpiles with a Geomerrica dome. Until recendy,covering large volumes of bulk materials was not affordable.Geomerrica offers cost efficient dome covers for the largest capacity stockpiles;from under 10,000 tons in simple conical stockpiles to over 250,000 tons in circular automated piles. Addirional vaiue our structures have to offer: Custom designs -In addition to our standard domes,the versatile Geometrica®system make it possible to manufacture highly customized structures.We can meet special requirements such as covers for uneven slopes and/or irregular shaped stockpiles as well as specialized accessories likeload-release panels or load bearing platforms. Corrosive resistant and maintenance-free covers -manufactured in aluminum or galvanized stee! Geometrica structures can resist the harshest environments and require no maintenance. Easy Installation in most cases,assembly is performed by local labor,requires no special lifting equipment and may be scheduled without interruption to the plant's day-to-day operations. Optimized designs -the efficiency of the dome's geometry and of the Geometrica system allow for coverage of large spans with particularly lightweight structures,minimizing material and foundationcosts.Aesthetically appealing -in addition to the practical application of a storage cover,the image and quality of the workplace are substantially enhanced with a Geometrica dome. We estimate,preliminarily,that a dome like you describe might run in the range of US$30.00/sq.ft. installed in Alaska. It makes good business sense to think of Geomertrica for your bulk material covers.To request more information or a firm proposal,please contact us by phone,fax or e-mail. -Sincerely, Geomerrica,Inc. Francisco Castano, President Geometrica,Inc. 908 Town &Country Bivd.,Suite 330 Houston,Texas 77024 USA ph:(713)722-7555 fax:(713)722-0331 e-mail:geoine@ geometrica.comhttp://www.geometrica.com --ppecialists Coomnetrice specializes in long spen bulk socage exciosuses for the power,cament,suring, agricultural and other ledustlal and commercial industries,We serve them by supplying cost alficient solutions in the form of steel or ahuminumn doenes and enciosuses.The inherent economy of the dome shape conserves esterials and eliminates wasted spect,éeving you.the dient,tune tnd money, Dose structures have been used for canturias,but the Gecunetrica system is dierent.Absence of welding makes thea fast and simple to install.The doubly-curved geometry distribuies loads moreelticiantiythanconventionalstruchansst«leaction ofthe weight.The patented Geometrica connector is one of the strongest and most versetile joints known.Geometricsdomesemulatenaturewith Basic geometrical shapes provide the most efficient and elegant templates for man-made forms. Geometzica hes applied and refined this principle with a single goal:To bring economical and A 'J eobutions to industrialand asch J applications.To do this Geomatics hes spent counties hourson ch and development of new technology such as the Preedome',our nique connector,and our is house design,deling and facturing soft Because you need the fastest service,best possible solution and safest storage alternative,we are dedicated to bring you Storage Domes,Pre-blanding Domes,Freedoene's and Longitudinal Structures with the cnost efficient shape at the most effective cost.We are Goometrica, For the coverage of coal,lienesioas,camant,fertilizer,grein,wood pulp and other exw moterials,there is «Geometrica sohution.With the largest availeiste spans,from 30 m 0 300 mi in diameter,no stockpile or application is oe big.Versatile designs.Fast assecnbly. 'Cont elective sebutions.All youneedknowis Geometrice. cre ae Pisa' oO | Longitudinal structures are ideal for covering homogenizing beds of raw materials like coal,limestone and ores.Open ended or completely enclosed,these structures may be designed with different sectional profiles to provide the most efficient envelope over materials,machinery and vehicles. arn ee ee oe me "in 29 gt attaBsSeon-ie eseaeaespeSee.EAE MISES aSon4,A BT ae ee a he er =te A f-.25.=kT =z ":4ésff2NOSa: :==efremonct.5 Se Sore aa a3' ; = -z s i? :=2ig cies ee.-bial a.=I sre 2 i rh Seatere eee,on rt tet pelt eee Vitel :2 'm "ress a)Segee OE sO ee eTi ie:eto etaparn ee _-eee ST ATTACHMENT 16 GE Power Systems GE Aero Energy Products | LM6000 Overview Jim Canon -Western Region Account Manager LM6000 Gas Turbine Generator Set Steams |MAYO Bet eernee wal Sprint™ 47.3MW -PB Dry Low Emissions Concept ©CEa 1985 1990 1992 1995 2000 Continuous Product Improvements to Grow with Customer CTQs LM6000 9200 8900 |an =i Fleet Experience <I vel Units Fleet Hours High Time nn 8200 Hours oo 559 5,795,000 77,900 20008 °a0 Mampershire TF s a)SPRINT Fleet Experience Product Capability/Availability Units Fleet Hours High Time Output Efficienc Emissions Delive(MWe)(%)y {NOx ppm ref 18%02)(Months.Mo)5 1,000,000+25,000+ Gas-DLE 41.9 «At 25 Inquire GE Sales Gas-Wtr 43.5 40.2 25 Inquire GE Sales Gas-Stm 43.5 43.4 25 Inquire GE Sales Liq-DLE 39.9 40.1 104 Inquire GE Sales Liq-Wtr 43.6 39.5 42 Inquire GE Sales Full Portfolio of Configuration Options to,Enable Customer Specific Needsfy.Vial Sprint™Features Uses less than 5m*/hr of deionized water a, 1 era yi oS ii hs wire Me NGM:PONG OU Soe: ue f ns i ater&Air"Manifolds HPC SPRINT™ Nozzles LPC SPRINT™Nozzles Performance -LM6000-PC vs.PC+Sprint™ 52000 50000 48000 46000 44000 kWe)42000 40000 Power(38000: 36000 34000 32000 30000 28000 -| chillers | Sea Level 60%Relative Humidity 5 In.H,0 Inlet;6 In.H,0 exhaust losses Natural Gas Fuel -LHV 19000 Btu/Ib Water Injection to achieve 25ppm NOx; No ViGVs,60Hz,13.8kV,0.9PF 20 30 40.50 60 70 80 90 Inlet Temperature °F 0 5 10.15 20,25 380-85 Was bela 400° 5000-PC Doc-number .Edition -PageGTX100-GENERAL &COMMERCIAL ITH1i0066 3 1 (28)ALSTOM = "Craton ar SnProject:GTX100 Standard 2/24/2003 Scope of Supply Project Name:GTX100 Standard Customer:BETHEL STAND-RY Reference Number: Type of Installation:MAS 102 Modified Turbine Type:GTX100-PG Table of contents GTX100 GAS TURBINE,GENERATOR DRIVE 2 SCOPE OF SUPPLY AND TERMINAL POINTS 2 Part 1 General 2 Basic definition:2 Part 2 Technical specification 2 Terminal Points to Customer 6 Outlets to Atmosphere.7 Scope of supply 9 Part 3 Gas turbine -Principal components 9 Part 4-Auxiliary systems 11 Part 5 -Generator 16 Part 6 -Electrical and control equipment 18 Part 7 -Installation and building 23 Part 8 Inspection,erection,testing and commissioning 25 Part 9 Documentation,operation and maintenance 26 Main exclusions 28 Page 2 (28)ifA L ST ©M GTX100 -GENERAL &COMMERCIAL TH40066Project:GTX100 Standard 2/24/2003 Scope of Supply Comment GTX100 Gas Turbine,Generator Drive Scope of Supply and Terminal Points Part 1 General Basic definition: This Scope of supply forms a functioning unit within the terminal points (utilities/consumables such as auxiliary power, fuel,water,hubricating oil and grease are excluded).Alternative configurations are available. Part 2 Technical specification Application -Onshore (simple cycle delivery) 'Operating mode -Continuous base load Units US-units Nominal Output -43 MW electrical ISO (59°F,sea level,no inlet and exhaust pressure losses,60%relative humidity)and 70.5 MW heat (related to ambient conditions)with 269 Ib/s at 1013°F exhaust gas flow. Design conditions -5 to 104°F ambient temperature. -Moderate dust loading Installation -Outdoor Based on edition 24 1/23/2003 :ALSTOMPowerSwedenAB'Scidediure Gas Tusbanes\Product informesonGTX100\dudget Pricing Industrial ine SegmentToota\ScopeofSupptyStandard GTX100 (TH110088 Ed S.doe Turbine . Page 3 (28).i.ALSTOM GTX100 -GENERAL &COMMERCIAL .ITH10066Project:GTX100 Standard 2/24/2003 Scope of Supply Comment Wind speed and seismic zone -<=131 ft/s and UBC code (1997)zone 1,S3 (foundation not considered). . Site forces -Site 0.5 x g in any horisontal direction and 0.5 x g in vertical direction. Area classification -Safe area Surface treatment -Indoor or outdoor inland (>5 km/>3 miles from sea). Corrosivity category C3 medium.The internal equipment is treated for corrosivity category C2. -Corrosivity factors according to ISO 12944-2:1998 Design sound level -85 dB(A)near field at 3 ft distance (outside the GT enclosure wall and 5 ft above ground level),far field 65 dB(A300 ft.Measured according to ANSI S 12.36 and ISO 3746-1995.: Combustion chamber -Dry Low Emission system Fuel -Gas fuel,fulfilling ALSTOM gas fuel specifications (GTI X241010E)or accepted project fuel data sheet (GTI W241009E). Lubricating oil cooling -Water (water /antifreeze fluid TEMPER or equivalent), cooling media,supply temperature <95 °F Generator cooling /protection form -Protection/cooling form:TEPV Generating voltage /frequency -13.8kV/60 Hz flesed on eve ection 24 1/25/2003 ALSTOMPowerSwedenAB SAddedasn GasT:Product GTX 100\Buciget Priceng,Industrial thine SegmentTeote\Scope of Supply Standart GTX100 [TH10088 Ed 3.doc Ta A LSTO:M GTX100-GENERAL &COMMERCIAL ITH10066 3 4 (28) Project:GTX100 Standard 2724/2003 Scope of Supply Comment Auxiliary voltages,frequency and standards for motors . -440-480 VAC,60 Hz,(TN-C-S system)start motor 690 VAC,3-phase.240 VAC UPS.Standards:EN/IEC.' Emergency battery voltage -440 VDC Shutdown system -"1 out of 2"and "1 outof1 Control system -ABB Advant providing a fully automatic unit. Vibration probes -Vibration transducers (accelerometer type). Designation system-German based KKS tag number system.The components are identifiedin a hierarchical system according to the functional placement in the plant. Codes and standards =Drawings:_. 1S05457-1980 -Noise emissions ISO03746-1995 and ANSI S ;12.36 -Exhaust emissions:1S09096-1992 and ISO10849- 1996 -Pressure vessels in .ASME Section VIII (excl.U- auxiliary systems:stamp). -Pipes (dimensions):DIN or ANSI,on-skid/off-skid -Pipes (design):Swedish pipe code RN-78 and AFS 1999:6,on-skid.Swedish pipe code RN-78,AFS 1999:6 and ASME B31.3 (gas fuel system),off-skid. Flanges (dimensions):DIN,ANSI (fuel systems), on-skid/off-skid -Flanges (design):Swedish pipe code RN-78, AFS 1999:6 or ANSI B16.5,on-skid/off-skid -Steel beams:-EN287/EN288 Based on ection 24 1/29/2003 ALSTOM Power Sweden ABSAddediumGeeTurbines\Product infonnasonnsTX11OO\budget Puan Industrial Turbine SegmentTookeScapeofSupplyStandardGTX100(TH10088 Ed S.doo ALSTO'M GTX100 -GENERAL &COMMERCIAL ITH10066 -3.5(28) Project:GTX100 Standard 2724/2003 Scope of Supply Comment -Terminal point flanges ANSI (dimensions): -Terminal point flanges |Swedish pipe code RN-78,(design):AFS 1999:6 and ANSI B16.5_ for fuel systems -Pipe coupling threads:ISO 228:1-1994 and SMS 2165 -Fire extinguishing SBF 110 or NFPA 12 with (design):-exceptions -Gas detection:EN 50018 Explosion group IC (zone 1) Gas fuel system:Swedish standard (NGSN:1987 andSAIFS:1996/8) -Pumps:DIN and/or ISO -Bolts/nuts:DIN - -Vibration:1SO10816-4,1998 © -Gear:AGMA 421.06 &API 613 ,with E &C -Generator:NEMA MGI-1993 rev.1 -MCC:TEC/EN60439 part1, TEC/EN60529,IEC/EN60947 - part 2,3 and 4-1 Control cubicles:.TEC/EN60439 partl, IEC/EN60529,IEC/EN60947 part 2,3 and 4-1 , -Control system:TEC/EN50081,IEC/EN50082, TEC/EN60068 part 2, IEC/EN60439-1, IEC/EN60950,IEC/EN61010- 1. Power cables:IEC/EN60227,IEC/EN60228, TEC/EN60331,IEC/EN60332, TEC/EN60502,IEC/EN60811 Control cables:IEC/EN60227,IEC/EN60228, TEC/EN60331,IEC/EN60332, TEC/EN60502-1 Cables joints of MM-IEC ENS0262 type:. Frequency converters:|EN60204 part 1,EN60529. EN61800 part 3. -Otherelectrical .Applicable IEC/EN-code equipment:. -Enclosure and base BSK-1994 (corresponding to frame:1S02394-1986) Based on sconedatabase edition 24 1/22/2003 ALSTOM Power Sweden AB Sechium Gas TI IIA TXTools\ScopeofSupplyStandard GTX100 ITH100€6Ed S.doa industrial Turbine Segment Doc-menberALSTOMGTX100-GENERAL &COMMERCIAL ITH10066 431 Project:GTX100 Standard 2/24/2003 Scope of Supply 3 6 (28) Balancing:ISO 1940-1 and ISO 11342. 1998 Lubricating oil system:API614 wihE&C -Gas turbine:API 616 with E&C Vibration monitoring:API 670 with E &C Welding procedures:EN 287/288 The Package is complying with the Machinery Directive,the Low Voltage Directive,the EMC requirements and the ATEX Duective 94/9/EC valid within the European Community. A classification plan of the installation according to the European standard EN 60079-10,as well as a Risk Analysis which is the base for the Certificate of Conformance according to the Machinery Directive,are available. A life cycle assessment study (LCA)according to ISO 14040-43 is available.It contains quantifications of the resource depletion, generation of waste and emissions to the environment caused by the manufacturing,use and disposal of the product. Enclosure - -For the Gas Turbine,Auxiliaries,Speed reduction gear and Generator. -Signal treatment module located adjacent to the GT enclosure. Exhaust direction from the Gas Turbine outlet -Horisontal,axial Maintenance opening . -Left side (looking from the exhaust towards the air inlet) Delivery -Delivery acc.to INCOTERMS 2600 as per tender letter. .Terminal Points to Customer For data at the terminal points,please refer to separate document. Gas Fuel System -Gas fuel connection,upstream the gas isolation valve located at gas fuel unit,auxiliary skid side acc.to the layout drawing. Comment ALSTOM Power Sweden ABBasedonscanedstahaseedition241/7¥2003SlideduanGasTustenes\Prockat infonresicrwGTX O0\aciged PrangTootaScapeofSupplyStandardGTX100[TH10088 Ed 3.doc industrial Turbme Segment Doc-number Edition PageALSTOMGTX100-GENERAL &COMMERCIAL ITH10066 3 7 (28)f ;Creation cate SignatureProject:GTX100 Standard 2/24/2003 Scope of Supoly Comment Cooling Water System 491 590 626 684 -Incoming/outgoing water connection flanges for water cooled lube oil cooler located close to the auxiliary skid. Instrument Air -Common connection located at the GT enclosure wall, auxiliary skid side. Drains Connection for emptying of the drain tank located at the enclosure wall,auxiliary skid side. Medium Voltage -Generator lineside,busbars located inside the AC Generator MV terminal box. Auxiliary Power '-Terminals on motors and heaters -Terminals in electrical panels. Control &Instrumentation -Terminals in the skid mounted signal treatment module. -Terminals in control panels. Grounding -Grounding connections on delivered equipment. Interface to Foundation -Lower end of multi point support for the GT and driven equipment -Lower end of the support structures for: -Air intake system. -1x100%watercooled cooler for the lubricating oil system. -Gas filter skidforgas fuel system Outlets to Atmosphere. For data at the outlet points,please refer to separate document. Lubricating oil Basedon scapedatabase edition 24 1/23/2003 ALSTOM Power Sweden AB 'S.iecaum Gas 7 TX 100\Bucget Peng Industial Turbine SegmentTooofSupplyStandardGTX100ITH10066Ed3.00¢ ALST OM GTX100-GENERAL &COMMERCIAL ITH10066 3;OB 28)Creation cate SignatureProject:GTX100 Standard 2/24/2003 Scope of Supply Comment Outlet from lubricating oil system ventilation fan,located on the GT enclosure roof. 423 Ventilation Outlet from the GT and EG enclosure to atmosphere, downstream the weather louvers,located on the enclosure roof ; 431 Gas fuel system -Gas fuel ventilation,located above the GT enclosure roof. 438 Purge air -Purge air ventilation,outlet located above the GT enclosure roof. ALSTOM Power Sweden ABBasedonscopedstabassédition241/72/2003S:Meauum Gas Turpines\Prodauct imonnasoniGTX100BudgetTofSupplyStandardGTX10017110088Ed3.doc Industrial Turbine Segment Gec-sumberALST'ay M GTX100 -GENERAL &COMMERCIAL ITH10066 300 330 Project:GTX100 Standard 2/24/2003 Scape of Sunny Scope of supply Part 3 Gas turbine -Principal components Single shaft,ALSTOM Power GTX100,modular concept industrial design,consisting of: -Compressor inlet casing and inlet bellmouth casing. -Thrust bearing #1 (tilting pad,directed mineral oil lubrication)combined with radial journal bearing #1 (tilting pad,directed mineral oil lubrication),located in the inlet bellmouth casing. -15-stage axial flow compressor with 3 rows of variable guide vanes (AC servo motor driven),electron-beam welded compressor rotor,inner stator casing with vane carriers forming air flow path,vertically split outer casing -2 bleed valves (pneumatically actuated)for air bleed during"Start-up and shutdown. -Central casing with diffuser for compressor discharge air. -2 ignition burners and 2 high energy spark plugs for engine Start-up. -1 annular combustion chamber incl.30 low emission AEV burners and 2 optical flame detectors. -3-stage bladed turbine rotor,connected to the intermediate shaft by tie-bolts. -Turbine casing with gas flow path and 3 stages of turbine guide vanes. -Radial journal bearing #2 (directed mineral oil lubrication), located in the turbine exhaust diffuser casing. Turbine exhaust casing with exhaust diffuser. -Drain valves (manually operated)from compressor inlet plenum,compressor bleed cavities #1 ,central casing and exhaust casing. -BN,accelerometer type,vibration probe:!off in bearing #1 and 1 off in bearing #2 Speed reduction gear (6600/1800 rpm),double helical design. -High speed side,quillshaft connection to the gas turbine. -Low speed side,quillshaft connection to the generator. 4 journal bearings of sleeve type for mineral oil lubrication. P&ID 993800 P&ID 993804 ALSTOM Power Sweden ABSaeedonadaneedition241/23/2003S.\Median Gas Turtenes\Product informasons TX 100\Gudiget PriangTools\Scope of Supply Standard GTX100 [714110088EdI.doc Industrial Turbine Segment Doc-number Eaton==-ss PageALSTOMGTX100-GENERAL &COMMERCIAL ITH10066 3 10 (28) ;Creation dass SignatureProject:GTX100 Standard 2/24/2003 Scope of Supply Comment 1 temperature transducerineach ofthe four bearings 1 BN,accelerometer type,vibration probe located on the casing at the high speed (pinion)turbine side. 380 Mounting details -Pendelum supports,spring loaded supports,fix point support and side support for the gas turbine,down to the main baseframe.Supports for the diffuser,down to the foundation. Turbine base frame -Welded I-beam baseframe for the GT driver unit Insulation Insulation of the Gas Turbine (including exhaust casing)for personnel safety,heat and noise reduction. Based on sconedatebese edition 24 1/23/2003 ALSTOMPowerSwedenABPTMGPEerSAMedhumGesTurtanes\Proguct indormemnn\sTX100\Budget Pricing industrial Turbine SegmentToots\Scope of Supply Standard GTX100 ITH 10086 fd 3.doc u Ooc-cumber Esttion PageALSTOMGTX100-GENERAL &COMMERCIAL ITH10066 3 11 (28)q ; Crwntion cate SignatureProject:GTX100 Standard 2/24/2003 Scope of Supply Comment Part 4 -Auxiliary systems Some auxiliary systems and parts of the control system aremountedonaseparateskidlocatedsidebysidewiththeGT unit.See layout and General Arrangement drawings. Instrumentation Instrumentation pipes,instrument valvesand fittings in 316L stainless steel Cooling &Sealing air system,with valves and piping for the P&ID 993801 gas turbine Extraction from compressor stage #3 for external turbine stator cooling and sealing air around bearing #2 during operation,including temperature measurement,strainer with diff.pressure transmitter,butterfly valve and orifice. Extraction from compressor stage #5 for bleed to exhaust, external turbine stator cooling and sealing air around bearing #2 during start-up and shutdown -and cooling to turbine stator stage #3 during start-up and shutdown,including temperature measurement,strainer with diff.pressure transmitter,butterfly valve,orifice and bleed valve. '-Extraction from compressor stage #10 for bleedto exhaust during start-up and shutdown -and cooling of turbine stator stage #2 and air supply to the balance piston during start-up, operation and shutdown,including temperature measurement, strainer with diff.pressure transmitter,butterfly valve,orifice and bleed valve. -Instruments and components for standard cooling and sealing air system Electric Start &Barring system including:P&ID 993804 -Static Frequency Converter (SFC). -Electric start and barring motor with gearbox. Driver shaft with bearings and free wheel (SSS-type)clutch. -Instruments and Components for Electric Starting &Barring Based on scopedstabase efiion 24 1/2¥2003 ALSTOMPowerSwedenABScudedhanGesTirOcctTX100urigesPrangIndustrialTurbineSegmentTools\Scupe of Supply Standard GTX100 1711100088 Ext 3.doe . T Goc-number Edition=PageALST&M GTX100-GENERAL &COMMERCIAL "TTH10066 3 12 (28) Project:GTX100 Standard 2/24/2003 "me Scope of Supply Comment Lubricating Oil System designed for ISOVG46 mineral oil P&ID 993813 fulfilling ALSTOM specification 8121-09 -Covering: -The Gas Turbine -The Speed Reduction Gear -The Generator Carbon steel lube oil tank with 2 heaters. Supply piping for the lube oil system in carbon steel,stainless steel downstream the filter to the GT. Discharge piping in stainless steel. Pumps and fan with redundant power supply. -3x 80%AC motor driven centrifugaltypepumps (2 inoperationand|in stand-by mode).The pumps are normally utilised to 2 x 50%but the SFC's and motors are designed to increase the capacity of the pumps during tranfer from the operational to the stand-by pump. 1x100%AC motor driven oil system ventilation fan. -Oil system ventilation filter with filter housing in stainless steel Each pump and the fan is driven by a Static FrequencyConverter.DC back-up is provided on each pump and the fan by the 440VDC battery feed to the SFCs. 1x 100 %water cooled lube oil cooler (plate type)designed for +95°F cooling media inlet temperature,including lub.oil piping -2x 100%lube oil filter with delta P transmitter. -Instruments and Components for standard Lubricating Oil system. Fire Extinguishing System,CO2 P&ID 993836 -Fire detection and extinguishing system for the GT enclosure. -Fire detection system for the generator. -According to NFPA 12 (US code) -1x 100 %discharge for fire protectionas above. -Piping,valves and nozzles.-Fire detection and portable Fire extinguishing iincontrol . module.-5 IR detectors,6 heat detectors coveringthegasturbine and auxiliaries located inside the enclosure. Saved on edition 241/23/2003 ALSTOM Power Sweden AS S.Wdediurn Gee Tute roduct TD get Pricing indusinial Turbine SegrnentTouScapeofSupplyStanderdGTX100ITH10088Ed2.00 T AL ST )M__ST%100--GENERAL &COMMERCIAL rat{10066 3 43 (28)Project:GTX100 Standard 2/24/2003 Scope of Supply Comment -4smoke detectors in the generator enclosure 4smoke detectors in the control module -2 waming lights located outside the GTencosure and 2 acoustic alarms (one COQ2-driven and one electrically driven) located inside the GTenclosure. -1 warming light,1 CO2 blocked indication light and 1 manual release button,located outside each normal entrance door of the GT enclosure. -Central fire suppression unit for alarm and automatic extinguishing.The central unit is connected to the Advant control system for alarm announciation. -Instruments and Components for standard Fire Extinguishing system. 423 , Ventilation system P&ID 993826 Weather louvers at the ventilation inlet and outlet of the GT enclosure. -Weather louvers at the ventilation inlet and outlet of the generator enclosure. -Silencers as required for the specified sound level,on ventilation inlet and outlet of the GT enclosure. -1 stage air filter (barrier type,disposable)for the GT enclosure. -1 stage air filter (barrier type,disposable)for the aircooled P&ID 992889/- generator air inlet. -Shut off dampers on the ventilation inlet and the ventilation outlet of the GT enclosure. -1x 100%AC motor driven fan placed in the ventilation outlet of the GT enclosure,i.e.GT enclosure subatmospheric pressure. -Airconditioning unit (1x100%)for the signal treatmentmodule -1x 100%AC driven fan placed in the ventilation inlet of the generator enclosure,i.e.generator enclosure overpressure. -Ventilation ducts in Carbon steel. 424 Gas Detection System P&ID 993829 -2 semi-conductor gas detectors,located in the ventilation outlet from the GT enclosure (one in low position and one in high position). Based on scovedetabeee edition 24 1/23/2003 ALSTOMPowerSwedenAB"SaMedaamGes Turtines\roduct InformmaaanG1X100SudgerPricing industrial Turbine SegmentTonte\Scape of Supply Standant GTX100 [1410086 Ed 3.doo Ooc-number .|Edition PageALSTOMGTX100-GENERAL &COMMERCIAL TH10066 3 14 (28) . .Creabon cate SignetureProject:GTX100 Standard 2/24/2003 Scope of Supply Comment The detectors are connected to the Advant control system via the gas detection central unit.Each gas detectorhasanalarm and an engine shutdown level. Gas Fuel System , P&ID 993809 Gas fuel unit 1 Gas isolation valve (spring closing,pneumatically operated) Connection for N2 purging located at filter,for maintenance purpose, 1 x 100%(3 micrometer)last chance coalescer filter with deltaP transmitter. Total gas flow meter Stainless steel piping downstream filter. Gas Fuel unit 1,located outside the enclosure acc.to ALSTOM standard layout. Gas fuel unit2 Two quick shut-off valves in series (spring closing,© pneumatically operated). Ventilation valve between the quick shut-off valve. Ventilation valve between the isolation valve and the first quick shut-off valve Gas control valve (AC-servo motor operated)with position transducer,for the 2 pilot gas manifolds. Pilot gas flow meter. 2 pilot gas manifolds with 18 and 12 connection points respectively from each manifold to the 30 bumers. 1 main gas manifold with 30 connection points to the 30 Gas control valve (AC-servo motor operated)with position transducer,for main gas manifold. All piping in gas fuel unit 2 and internal GT-skid piping in stainless steel Ventilation lines to atmosphere,standard location above the air intake filter. Purge Air System )|)P&T 993802 All internal piping. 3 shut-off valves (spring closing type),|on main supply line for pilot and main,|on pilot line and 1 on main line. Based on scopedatabase ection 24 1/2/2003 ALSTOMPowerSwedenAS S:\deduumGas Turbinas\Product informmetanGTX 100\Auxiget Pricing :industrial Turbine SegmentTofSupplyStasGTX1001TH10088Ed3.doc A L ST OM GTX100 -GENBRAL &COMMERCIAL TH10066 439 442 482 491 Project:GTX100 Standard 2/24/2003 Scape of Supply Page 3 15 (28)Signeare Ventilation line with ventilation valve (spring opening type) to atmosphere. Ignition System -Natural gas fuel for gas supply to ignition bumers during startup. -Shut-off and vent valves (spring closing,pneumatically operated). -Pressure regulators. -Ignition burners and high energy spark plugs (see Item 300) Cooling water system Terminal point at the lube oil cooler. Instrument air system Internal piping in stainless steel. Instrument air supply by customer. Compressor washing system Washing unit for compressor washing,consisting of: -Water tank with heater,level gauge and temperature gauge. -Filter. AC driven pump (reciprocating type). -Pressure regulating valve and pressure gauge. -Piping,inlet manifold and injection nozzles for offline -7 manually operated drain valves with piping,to common location at skid edge,from the Gas Turbine (see Item 300 and 310)-; -Drain tank with transparent cover for level check and level gauge,including drain pump. -Instrumentation and piping according to P&ID Equipment acc.to "Safe area”area classification. Comment P&ID 993837 P&ID 993818 P&ID 993828 Detergent tank with heater,level gauge and temp.gauge. ALSTOM Power Sweden AB Gas T Pr TX 100 uaget ProngBasedonedition241/23/2003 Su T of Supply GTX100 (11110066 Ed 3.d0c Industrial Turbine Segment Doc-tumber Eaition PageANLSTO'M GTX100-GENERAL &COMMERCIAL ITH10066 3 46 (28).Creation date SignatureProject:GTX100 Standard 2/24/2003 Scope of Supply Comment Part 5 -Generator Equipment according to MV Single Line Diagram W500046E 580 Generator type AMS 1250 A LG 50,0 MVA at 104°F cooling air temperature and PF.0.8. Frequency/speed/voltage:60 Hz/1800 RPM/13.8 kV. Standard,NEMA. Four pole (salient)three phase synchronous generator. Protection/cooling form:TEPV Brushless AC-exciter with rotating rectifier. PMG for excitation power supply. Insulation according to class F. Temperature rise at rated output and PF.0.8 within class B absolute according to §16.3.4.0f IEC 34-1 within the ambient temperature range. Temperature monitoring by RTD. Vibration monitoring by accelerometers. Lube oil supply from the turbine system. Line and neutral side termination points for MV terminal enclosure. Anti condensation heaters in the main machine,exciter and MV terminal box. Separate junction boxes for instruments,excitation and heaters. Excitation and voltage regulator system The system consists of an ABB AC100 Controller and a power and measuring unit.The system includes the following: One single-phase thyristor rectifier bridge. Automatic Voltage Regulator (AVR): Manuai Voltage Regulator (MVR,Field current control). Power factor control. Reactive power control. Excitation current limiter with cooling air bias. 'Stator current limiter with cooling air bias 3BSM003582-A -Under excitation limiter. Basad on scovedatabese edition 24 1/7/2003 ALSTOM Power Sweden ABS.\Medium Ges Turtsnes\Product Informasons1X1 OO\Sudget Pricing Industrial Turbine SegmentToots\Scope of Supply Standard GTX100 ITH10086 Ed 3.doc Boc-numberALSTa)M GTX100 -GENERAL &COMMERCIAL ITH10066 590 Project:GTX100 Standard 2/24/2003 Scope of Supply Generator Medium Voltage (MV)terminal enclosure Enclosure for line and neutral side MV equipment.Phase conductors of solid copper bars. Design prepared for various earthing options. Equipment data: Rated voltage:13,8 kV Rated current:Max FLC (Full Load Current) _Rated frequency:60 Hz Highest system voltage:15kV Rated insulation level,1 min 38 kV 50/60 Hz: Impulse 1.2/50 microseconds,95kV peak: Short circuit current,1 sec.:40 kA Short circuit current,peak:-100kA Degree of protection:P55 The enclosure accomodates the following: Undrilled Cu busbars at lower end of enclosure suitable for cable or busduct connection. Lightning/surge arrestors,line side.(3 nos.single phase units, connected YN). Voltage transformers line side (3 nos.single phase units, connected YN). Current transformers line side.(3 nos,3 secondaries,1 A/phase). Generator stator terminals (6 nos.). Generator star point. Current transformers neutral side.(3 nos,3 secondaries,1A /phase).. Neutral point resistor,10A,10 sec. . Excitation rectifier module with transducers for electricalquantities.. Mobile earthing tool for maintenance work. Comment ALSTOM Power Sweden ABBasedonection24$/23/2003Ss:Gas Ti roduct indomrnedoniG7X100\sunget PricingTootsScopeofSupptyStandardGTX100ITH10088Ed3.doc Industrial Turbine Segment Deoo-numberALSTOM S7100-ceNERAL &COMMERCIAL ITH10066 348 (28) Project:GTX100 Standard 2/24/2003 Scope of Supply Comment Part 6 -Electrical and control equipment 620 Electrical auxiliary systems Electrical auxiliary systems as specified below:SLD X620029E 626 Motor Control Centre ABB MNSLight W MCC board,Isc =35 kA. Supplies all consumers (except starting system)within the scope of supply andis provided with:-Withdrawable load break switchincomer with Volt-and Ammeters.-Withdrawable fuseless motor starters and MCCB feeders. Protection class IP21,IP31 on the front and IP 20 internally. 625 Lube oil and control system Power Supply System The system provides AC and back-up DC power to the ACmotordrivenlubeoilpumpsandtheoilventilationfanoftheturbinepackage. A UPS unit and a UPS distribution board for supply of the I&C equipment of the turbine is as well integrated within the free standing panel arrangement. The system is completely self contained and designed with low voltage panels from the ABB MNS Light W switchgear family - and have protection class IP21,(IP31 on the front and [P20 internally) The panel arrangement contains the following equipment: -One AC power distribution board with MCCB breakers supplying the frequency converters,and the emergency battery charger. One DC power distribution board with MCCB breakers supplying the frequency converters. Static frequency converters for the lube oil pumps. -Static frequency for the oil ventilation fan. -One UPS unit with internal back-up battery.1 hour autonomy Based on scopedatebese edition 24 1/23/2003 ALSTOMPowerSwedenAB"S.AMadiumGasTurtnes\Product informmsornGTX10o\Budget Priang industrial Turbine SegmentTonte\Scope of Supply Standard GTX100 1TH10088 Ed 3.doe A LST OM GTX100-GENERAL.&COMMERCIAL ITH10066 3 19 (28) Project:GTX100 Standard 2/24/2003 Scope of Supply Comment One UPS power MCB breaker board for I&C equipment. Emergency battery charger,440 VDC. PLC based emergency back-up operation system. 440VDC sealed lead acid emergency battery. Capacity for a complete 10h emergency cool down cycle. Frequency converter(s). -Starting frequency converter,ABB ACS607,690VAC 50/60 Hz supply,protection class IP21. Control equipment for automatic start-up,operation and shut down. Micro Processor based control,supervision and protection system with a PC based operators station.The systemis designed for highest possible operators friendliness with colour process graphics,log and alarm /event displays,printer for listsandhardcopiesfromthescreen.The system has variousopeningstoexternalcomputersystems.The system program provided is in the US English language. The following division of functionality described below constitutes the turbine control system: Operators station PC based (Windows 2000)operators interface,ABB process PortalAwithnecessary softwareto operatetheGTinalloperationmodes.Midi tower type computer with redundant Hot-Swop,RAID controllers.Software for on-line programming of the control system is included.A conventional hard wired back- up operation panel with instrumentation further described below is also included. The PC based operators interface consists of:-Desk mountedturbineHMIwith 19"TFT screen,keyboard, mouse and inkjet colour printer. -MB300 interface to turbine controllers. Based on scopedatabese eciion 24 1/23/2003 ALSTOMPowerSwedenAB"S.Medamn GesTurbnes\ProductIvormasonvGTX100\udget Pricing Industrial Turbine SegmentTeotSupplyStarGTX100(1110088 Ed 3.doa Doc-numberALSTOMGTX100-GENERAL &COMMERCIAL ITH10066Project:GTX100 Standard 2/24/2003 Scope of Sunply The OS station performs apart from providing normal operators dialogue: --Trending and storing of process parameters. -Self diagnostics and displays of system and individual board: Status. The back-up panel includes the following: -Synchronisation instruments. -Generatorf,U,P and Q meter. -Turbine "Start"/"Stop”push buttons. -Turbine "Trip reset”push button. -Governor "Increase"/"Decrease”push buttons. -AVR/MVR "Increase"/"Decrease”push buttons. -Generator CB "Open"/"Close"push buttons. -Synchronising mode selector,"Auto"/"Manuai”. -Synchronising "By-pass"push button. -Selector switch,"Local"/"Remote"operation. -Back-up panel "Enable"switch. -Start counter. Operating,equivalent operating hour and cycle counter. -MWh and MVArch counters. Main process controllerABB Advant AC400 The main Advant controller contains system and application programs to run the turbogenerator set,the programs are stored in Flash EPROM's.The main tasks of the AC400 controller are: -Analogue and Binary I/O handling. -Sequencer for start and stop. -Gas turbine set monitoring. Digital fuel governor The AC160 controller contains system and application program for the correct governing of the GT set.The controller serves as well as the second channel of the dual channel GT protection system.The programs are stored in Flash EPROM's.The main .tasks of the cntroller are: -Frequency/load control. -Gas turbine speed and temperature control control. -Gas turbine acceleration and deceleration control. Based on scayedatabeseedition241/2/2003 Comment ALSTOM Power Sweden AB SAMedusnGasTurtines\Produat informasomnGTX100\@udget PricingTofSupplyStarGTX100(TH10088 Ed 3.dos industrial Turbine Segment Ooe-numher Edition PageALSTOMGTX100-GENERAL &COMMERCIAL ----s[TH10066 3 21 (28)Creationda:Project:GTX100 Standard 2/24/2003 Scope of Supply Comment 631 Unit protection system 631 Two ABB AC160 controllers (2 independent processcontrollers)working with the principle "1 out of 1”or "1 out of All trip signals works with the principle of "fail safe”,i.e. signal loss generates a turbine trip. The "fail safe”principle is also valid for alarms.The system operates with 24VDC Following signals are duplicated and works with the "1 out of 2”principle: -Turbine overspeed. -Flame supervision. -Purge time monitoring. -Ignition failure. -High exhaust gas temperature. Low lubrication oil pressure. -High lubrication oil temperature. -Control equipment failure. All protection system actions are registered and informed to the operator on the main operators station. Generator protection system Modularised micro processor based generator protection system (ABB Combiflex).Protection functions by dedicated protection modules,Tripping circuits,power supplies and protection modules in two sub systems as indicated below. . IEEE-code(Sub) Differential protection 87G (1) -Stator earthfault protection 59N (1) -Voltage restraint over S51V (2) current protection . Negative sequence 46 (2) protection Under excitation protection 40(1). Over/umder voltage 59/27 (2) protection . : Reverse power protection 32 (1) Sasad on ase edition241/24/2003 ALSTOM Power Swaden AB SAM Gas Turdi TOLGE TX 100Buage PhangToois\ScopeofSupplyStandand GTX100 [TH 10068 E¢J.doe industrial Turbine Segment A LST ©:M GTX100 -GENERAL &COMMERCIAL ITH10066 3.pe(28) Project:GTX100 Standard 2724/2003 Scope of Supply Comment -Rotating diode fault 58 (1) protection -Over/under speed protection 12/14*.(1) *)GT control system function Synchronising equipment Automatic and manual (semiautomatic)synchronising system for the Generator Circuit Breaker (GCB).The system is provided with a "Synchronising by-pass”switch for breaker closing against a "dead bus”. Electrical installation -Control and instrumentation cables on the turbine and auxiliary systems skid to the signal treatment module. Based on scopedatanass eciition 24 1/23/2003 ALSTOM Power Sweden AS S:Wdecium Gas Tutwies\Product inomanon\G TX100\uaget Prang Incustnal Turbine SegmentToatstSofSupety11GTX100[TH 10066 Eq 3.doc ; . . Beo-sumber Editon oomALSTOMGTX100-GENERAL &COMMERCIAL ITH10066 3 23 (28) Project:GTX100 Standard 2/24/2003 Scope of Supply Comment Part 7 -Installation and building Enclosures -Weather proof,outdoor: -Acoustic enclosure for the Gas Turbine,auxiliaries,gear and Electric Generator. -Complete with access doors,emergency doors,walkways, stairs,internal lighting and a 8 tonnes maintenanceoverheadcraneintheGTenclosure.| Signal treatment module located on the auxiliary skid,outside the GT enclosure. -Maintenance door for GT removal on left hand side (lookingfromtheexhausttowardstheairintake). Electrical and control equipment module(s) -Signal treatment module on the auxiliary systems skid containing: -Connection and turbine controler cabinets with Advant Fieldbus connection to the main controler and Operators station. Weather proof,outdoor enclosure for the following electricalandcontrolequipment: -Operators station -Control panels. -MCC -Starting frequency converter Lube oil drive system -Emergency back-up battery (If includedin the scope ofsupply) -UPS-unit for turbine controls (If included in the scope of supply) -Fire fighting panel (If included in the scope of supply) The module is provided with internal lighting,heating and air conditioning systems.All systems are tested together with the GT and auxiliary systems (factory tests). Foundation ) -Outline drawing of the foundation with static and dynamic loads Basedon scopedatabase edition 24 1/23/2003 ALSTOM Power Sweden AB S:\MediurnGasTurnines\Product informasonisTX100\Busiget ProngTootatS.ot Suppty Standard GTX100 FTH10066Ed3.doc industrial Turvine Segment Doc-numberALSTOMGTX100-GENERAL &COMMERCIAL -ITH10066CreationdewProject:GTX100 Standard 2/24/2003 Scope of Supply Edition Page 3 24 (28)Signature 731 Static air intake system Two stage filter elements -Prefilter of disposable barrier type -High efficiency filter:Inland(>3 miles from sea) /City/Light Industy Ducting for standard outdoor installation with support structure. Acoustical lined duct and silencer for the air intake Comment Based on scovedstabase aciition 24 1/22/2003 ALSTOM Power Sweden AB S:AMecwumn Gas Turbines \Product inforrussoniG TX10C\Buage:PaangToots\Scape of Suppty Standard GTX100 ITH10066 Ed 3.00c industrial Turbine Segment : Deo-nemberALSTO1M 97%100-GENERAL &COMMERCIAL ITH10066 3°25 (28) Project:GTX100 Standard 2/24/2003 Scope of Supply Comment Part 8 Inspection,erection,testing and commissioning Transport -Packaging for sea transport and maximum 3 months storage -Delivery acc.to INCOTERMS 2000 as per tender letter. -Rental of lifting tools for on/off loading during the erection period.The tools are propertyofALSTOM. -Rental of transport/storage cover for main machinery unit and auxiliary unit.The weatherproof cover equipment is property of ALSTOM. Inspection -Quality control acc.to standard Inspection Plan 852 Factory tests -Balancing and overspeeding of the turbine and generator rotors. -Standard Gear test at the subsupplier's workshop -Standard Electric generator routine test at the subsupplier's workshop ; -Stationary testing: -System tests of the assembled equipment,includmg sequence test up to GT ignition (without engine rotation), with contract auxilliary systems and contract control equipment." Based on scovedatabase edition 24 1/23/2003 ALSTOM Power Sweden AS S.\Macuum GasT roduct GTX100 ;. §-Sei mei00 FTHt10088 arp Prong . industrial Turbine Segment A LST6:M GTX100 -GENERAL &COMMERCIAL ITH10066 3.26 (28)' .Creation date SignatureProject:GTX100 Standard -2/24/2003 Scope of Suppiy Comment Part 9 Documentation,operation and maintenance Customer training -Customer training is excluded.For the safe and reliable operation it is recommended that training is included Spare parts 980 Documentation The Final Documentation is divided into four classes A,B,D and I: -A=Operating and Maintenance Documentation produced by ALSTOM Power -Bl =Technical Documentation produced by ALSTOM 'Power,used in Operation and Maintenance documentation B2=Technical Documentation produced by ALSTOM Power,not used in Operation and Maintenance documentation -Di =Component Documentation provided by subsupplier, used in Operation and Maintenance documentation -D2 =Component Documentation provided by subsupplier, not used in Operation and Maintenance documentation -I =Test and Inspection documentation The Final Documentation includes the following documentationblocks:; 1.Documentation overview. This is an introduction to the final documentation structure and comprises key information on how to recognize and find the appropriate documents and how to understand the typical symbols used.” Based on scovedstatrase edition 24 1/22/2003 'ALSTOM Power Sweden AB S:\Mecum Gas T:informanpon\G TX 100\Sudg,.r s as Lstanes\Procucs Kéorn poltiesied et Prong Industnai Turbine Segment ALSTO:M GTX100-GENERAL &COMMERCIAL ITH10066 3 27 (28)Creation dute StonstursProject:GTX100 Standard 2/24/2003 Scove of Sunnly Comment -Documentation overview.Document class A. 2.Operator documentation. The Operator Documentation serves as the manual for operationofthegasturbineandforhandlingtheunitinemergencies.The included System Descriptions,P&IDs and technica!data lists form an appropriate level of information for understanding the basic systems design and function.This part is mainly intended for the operation personnel. Operation instruction,including fault procedures.DocumentclassA. System description.Document class B1. -P&ID drawings.Document classBl. -Setting list and electrical load list.Document class B1 3.Maintenance and Technical Documentation. The Maintenance and Technical Documentation is structured as an introducing Maintenance Documentation and the associated Technical Documentation contains detailed technical information.The technical part is further divided into documentation related to Components,Electrical-,Control-andBuildingItems.This part is mainly intended for the maintenancepersonnel. -Maintenance documentation.Document class A. -Component documentation-Component documentation,technical information and data sheets (subsuppliers excluded).Document class B2. -Component documentation from subsupplier,Operation and Maintenance instructions.Document class D1 -Component documentation from subsupplier,technical information and data sheets.Document class D2 -Electrical documentation.Document class B2.' -Control documentation.Document class B2.. -Building documentation.Document class B2. Test and inspection documentation This includes inspections plans,different types of certificates for the electrical and mechanical equipment,and when these options are included,documentation regarding the erection and commissioning. -Test and inspection documentation.Document class I. Basad on scovedstabase scition 24 1/22/2003 . .ALSTOM Power Sweden AB S:\Wedasn Gas Ti jon TX100\Budget Prag dustrial ine SegmentToals\Scopeof Supply Standardierd GTX100 ITH10066 Ed 3.00 in Turine ALST&:M GTX100-GENERAL &COMMERCIAL 1TH10066 3°28 (28) Project:GTX100 Standard 2/24/2003 Scope of Supply Comment Language and number of binders: Documentation in English for class A,B,D and I. 3 copies of documentation for class A . 3 copies of documentation for class B 3 copies of documentation for class D Binders Documentation Class A,B &D 1 copy of binders for class I Documentation in binders. Main exclusions Supply of auxiliary power Drain from terminal point MV connection (cabling or busduct)between the generator and the generator cicuit breaker or step-up transformer. Generator circuit breaker. LV power cables,installation materials and installation external of the GTG package. Signal and control cables,installation materials and installation external of the GTG package. Earthing network extemal to GTG set All civil works including foundations Embedded steel plates - Counterflanges,gaskets and bolts at terminal points -if not specifically agreed in final scope of supply. Trial run Training Exhaust system downstreamthe GT exhaust diffuser flange.The equipment downstream the GT exhaust diffuser flange "must be designed and manufactured to meet the overall plantnoiserequirements. Basedon scocedatabase edition 24 1/2/2008 ALSTOM Power Sweden AB SiMecum Ges Turouves\Product InommasonisTX100\Budgat PrangOfSupplyStaGTXK100ITH10066Ed3.doc industrial Turbine Segment ATTACHMENT 17 .(See LCMF Report Appendix E)