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Chignik Lagoon Project Coal Bed Methane 1996
April 23,1996 yee To:Merideth Sandler..Coyr (MJSandler@aol.com) BA Mt From:Percy Frisby,Director Division of Energy Alaska Department of Community and Regional Affairs Subject:Alternative Energy --Funding for Coal Bed Methane Development Energy costs in rural Alaska far exceed the norm in the rest of the United States. Diesel fuel is the dominant energy source both for heat and electricity and its cost, including the cost of delivery over vast distances and storage throughout the winter,is a major contributor to the problem.Coal bed methane could be a cost effective energy alternative --it is typically found at shallow depths,the technology to drill,produce,and use the fuel is relatively simple,and it may be widely available in association with Alaska's vast deposits of coal. The Administration has submitted a $1.6 million request to the State legislature to support an initial exploration and assessment program involving a single site to be selected during the first year.Experience gained from this initial pilot project will be valuable,but by itself will not be enough to determine whether coal bed methane can provide widespread economic benefits. To augment this effort,we request that the federal government contribute an additional $1.6 million to develop two additional sites.This will allow us to determine whether coal bed methane represents a commercially viable alternative on a broad scale in rural Alaska with the potential to reduce energy costs by a significant amount.While the results ofa single pilot project will be instructive, favorable results will need to be reproduced and verified at other locations before commercial viability can be established.The exploration and assessment program will be conducted by the Department of Natural Resources in cooperation with the Division of Energy and with rural land owners. Background Production of coal bed methane in the lower 48 United States increased from fewer than 50 wells in the early 1980s to over 6600 wells in 1993.Currently there is ne coal bed methane production in Alaska although mining of surface and near surface coal for direct combustion has taken place for over 100 years.Alaska's Marideth Sandler April 23,1996 Page 2 coal resources are estimated at over 3.7 trillion short tons with the potential for up to 1000 trillion cubic feet of coal bed methane gas.How many of Alaska's coal basins are methane gas-bearing is mostly unknown and the actual extent and magnitude of producible gas is untested.However,if only 10%of the estimated 1000 trillion cubic feet of methane gas is recoverable,this resource would triple current proven conventional gas reserves for Alaska.- In 1994,the State of Alaska funded and operated the first dedicated coal bed methane bore hole,drilled by the Department of Natural Resources northwest of the community of Wasilla.This project demonstrated good coal bed methane potential in the northern portion of Cook Inlet basin and led to the first private coal - bed exploration in the area.This well was designed to acquire subsurface coal samples for determination of gas content.The well was not flow tested to evaluate its commercial viability,although the sample results are encouraging. Limited knowledge of Alaska's coal resources discourages private industry exploration.The purpose of this project is to demonstrate coal bed methane potential in rural Alaska and thereby encourage private investment.Similar small two-to-four well projects have been effectively used in Oklahoma,West Virginia, and Alabama to power small towns and school buildings.If developed by the private sector,coal bed methane gas wells stimulated by this project could be a significant factor in reducing rural energy costs. ;|LRKFT Learr Peover Sack Siege / Fact Sheet Seal ZY /97S Chignik Lagoon Coal-Bed Methane/Fuel Cell Project Seu (77E Project Objective/Description The objective of the project is to produce clean and efficient electricity (and heat)for the Native Alaskan village of Chignik Lagoon using energy resources indigenous to the region (i.e.coal-bed methane linked to a fuel cell and at considerably lower cost than electricity is currently available.The completed project will be the primary electric generation system for the village.A new diesel generator cogeneration system being installed by the Lake and Peninsula Borough will be the back-up system for the village.The project will have several additional benefits beyond energy cost reduction.These benefits include:(1)improved environmental conditions in the village;(2)the creation of jobs for the villagers;and (3)the potential to attract businesses to the village because of the availability of low cost energy. The overall U.S.Department of Energy,Morgantown Energy Technology Center (METC) Alaska program,including this project,is being coordinated by the Energy and Environmental Research Center (EERC).This project is being sponsored by METC and contracted to the College of West Virginia (College).To be successful,the project must be well coordinated with and conducted in concert with the village of Chignik Lagoon,the Bristol Bay Native Corporation,the Lake and Peninsula Borough,the Lake and Peninsula School District and the Alaska Department of Community and Regional Affairs.The State of Alaska is providing the power distribution system and the Borough is providing a new diesel generator for the village.The College,through funding from METC will provide an operating coal-bed methane production well.The College and EERC will assist the village in obtaining and installing the fuel cell.Once in operation,ownership of the systems will be transferred to local authorities. The Chignik Lagoon site was selected by the College of West Virginia after conducting a review of approximately 30 potential project sites on Native Alaskan lands which were identified as potential candidates by the Native Corporations of Alaska.Screening of each site against criteria,including the potential of the coal-bed methane resource and the proximity of the end users to the coal-bed methane led to the identification of 5 sites which were more thoroughly analyzed.The Chignik Lagoon site was selected because of the size of the coal-bed methane reserve in close proximity to the village,the amount of analysis which had been conducted at the village,and the indication of interest of the Native Alaskans in the village for the project. The Chignik Lagoon coal-bed methane/fuel cell project (hereafter referred to as the "project")will consist of the following unit operations which will be integrated to meet the needs of the villagers: Pevisias Be PrsouetC¥islom :be elucle D)Project o hyevesties ofavihreda)S276 ee Meo theo tes yr,A dat SemmaryDhaedBaytate. One coal-bed methane production well (or possibly two,depending upon the availability of funds for a second well)with a capacity of approximately 50,000 cubic feet of methane gas per day (60,000 cubic feet per day,total,if a second well is drilled).The well will be designed to produce approximately 45,000 cubic feet of methane gas per day,the amount of gas required by the fuel cell. (The purpose of a second well,if implemented,would be to provide a greater margin of safety in the event the first well does not perform as designed). The well will be located approximately 8,000 feet from the Chignik Lagoon school,the proposed site of the fuel cell.It is expected that the well will produce at 50,000 cubic feet per day for 15 to 30 years. The well is anticipated to be 1,400 feet in depth.The gas,as produced,is expected to be of high enough quality to use directly for producing electricity from a fuel cell without the need for process steps to clean the gas,other than to separate out the normally entrained water,which is expected to be clean and relatively easy to dispose of.The subsurface rights to the gas are held by the Bristol Bay Native Corporation.It will charge a royalty for the gas produced from the site.The Borough will also levy a modest Resource Royalty Tax on the gas produced.The surface rights to the land that the well will be located on are held by the Chignik Tribe. It is currently envisioned that a pipeline approximately 8,000 feet in length and 2 inches in diameter,buried approximately 3 feet underground will transport the produced gas to the fuel cell.The pipeline will be located along the side of an existing road. The fuel cell will be a 200 kilowatt (kW)phosphoric acid variety which will be located on a pad at the site of the village school and in housing.The fuel cell will convert the gas to electricity and waste heat.It is anticipated that the fuel cell will produce ample waste heat to supply the schools needs.The electricity will be supplied to the residents of Chignik Lagoon through a distributionsystemcurrentlybeinginstalledbytheStateofAlaska. If funds are not available to install a fuel cell,a dual-fired diesel generator will be installed instead.It is proposed that the diesel generator currently being considered by the Borough will be modified to be dual fuel capable (i.e. natural gas and diesel oil).The gas will be used as the primary fuel to the generator and diesel fuel the back-up. A distribution system to transfer the electricity produced from the fuel cell (or generator)throughout the village will be provided by the State of Alaska to the village of Chignik Lagoon as a grant. Project Implementation To assure the success of the project,several steps,no different than those for any commercial project of this type,must be undertaken.These steps are outlined below: o Preparation of a feasibility study describing the preliminary design of the individual component operations and of the integrated system.(Completed) oO Preparation of a detailed cost estimate for the overall project.(Completed) oO Preparation of a financing plan.(Completed) oO Obtaining Federal,state and local permits.(In process) )Fulfillment of the National Environmental Policy Act (NEPA)requirements. (In process) oO Obtaining financing and/or grants consistent with the financing plan.(In process) o Awarding of contracts for construction and operation of the project. (Planned) o Drilling and completion of the wells;procurement and installation of the fuel cell and integration of the entire system.(Planned) fe)Ownership of the entire energy system must be transferred to,operated by, and maintained by local authorities.(Planned) Project Status For the past 7 years,the College of West Virginia has been exploring the possibility of producing coal-bed methane and for the last two years,in remote regions of Alaska.It has gathered large amounts of information on the coal and potential coal-bed methane resource base in the vicinity of Chignik Lagoon.With this information as the basis,the project has progressed to the point that permit applications can be requested and the NEPA process begun.The current status of each of the major elements of the project is summarized below. o The feasibility study has been completed for each component of the system. The site for the production well has been identified and the parameters for drilling and finishing the well completed.The location of,and materials to be used for,the pipeline to transport the gas from the well to the fuel cell have been determined.The type of fuel cell to be purchased and the site for its location have been established.A plan for the integration of the of the production and energy conversion system with the distribution system has also been developed. o Detailed cost estimate and financing plans for the project have been developed.Each element of the cost estimate has been developed with Alaskan drilling and construction experts.noon *T:ws? o The Bristol Bay Environmental Corporation has/been hired by the College to obtain the permits for the project.The critical path permits which must be secured are:(1)the environmental permits from the Alaska Department of Natural Resources,and (2)the Coastal Zone Management permit.Because of the small size of the project,the environmental improvements that the project is expected to bring about,and the location of the project on Native Alaskan property,it is anticipated that permitting will be routine,taking4betweenoneandthreemonthstocomplete. oO NEPA will apply to this project since Federal funds from the Department of Energy,and possibly other Federal sources will be used.An Environmental Report has been prepared by the College of West Virginia and submitted to METC as the basis for the NEPA document.It is unclear at this time what level of NEPA documentation will be required for the project. Oo Procurement and installation of hardware required for the gas wells and pipeline will be conducted on a competitive basis.The fuel cell will be provided by International Fuel Cells,Inc.,the only U.S.supplier of commercially available phosphoric acid fuel cells. Project Schedule The project schedule is uncertain at this time due to factors out side the control of the project developers.However,the following provides a range of estimates for the permitting, construction and initial operation of the project. re)Permitting--Initiated August 15,1995.Completion expected between September 30 to November 15,1995. Sittacd &E AWSA propuhy -4 )Sihucg 66 A wlte pprecedé Pt srbe9fins)Linn >xed,Uma €1h fe)NEPA--Initiated July 1995.Completion expected between October 1,1995 to June 1,1996. oO Procurement of hardware--Expected thirty days from date of issuance of bids which will follow NEPA clearance. oO Construction and initial operation of production well--Expected 30 days after initiation of drilling. oO Construction and installation of fuel cell--Expected 30 days after ordering the equipment. oO Complete system integration--Expected two weeks after production well in operation and fuel cell installed. As a result of these estimates,the time anticipated to complete the project to the point that it will be producing electricity to be provided to the distribution system ranges from December 15,1995 to September 1,1996.The critical path item is compliance with NEPA requirements. Project Costs Based upon the detailed cost estimate,the total cost for drilling and finishing the well, reducing the water content of the gas,laying the pipeline for transporting the cleaned gas from the well to the fuel cell,purchasing and installing the fuel cell and installing the distribution system is estimated to be $2.27 million.Of that amount,approximately $1.225 million will be required for the drilling and finishing of the well and the costs incurred by the College of West Virginia in overseeing the project.An additional approximately $90,000 will be required for the disposal of produced water and laying the pipeline.A summary of thecostsforthisaspectoftheprojectisprovidedasAttachment1. Of the $1.225 million required for the drilling activities,$978,000 will be provided by the College of West Virginia through a contract with the U.S.Department of Energy's Morgantown Energy Technology Center (METC),contingent upon the availability of funds. The remainder will either have to be financed,provided by some other source or come from cost reductions in carrying out the well activities. The Alaska Department of Community and Regional Affairs will provide a grant of approximately $225,000 to cover the cost for installing the distribution system.In addition, a grant of $200,000 will be requested as a part of a fuel cell subsidy program run by METC for the Department of Defense.(This grant has been guaranteed by EERC,subject to the availability of funds,even if the College of West Virginia is unsuccessful in securing the subsidy).The $90,000 to cover the cost of the water disposal and pipeline would also have to be obtained.Finally,requests have been made to non-profit organizations and the Departments of Energy and Defense to provide the fuel cell to the village at no cost.Ifa fuel cell is not available at zero cost,a contingency plan to finance the fuel cell with a 10.25%,30-year loan from the Bureau of Indian Affairs has been verbally approved. However,if a loan is necessary,it has not been determined what organization would secure it.Another option is to modify the diesel generator being installed by the Borough to allow it to burn the coal-bed methane.The latter option will add approximately $5,000 to the cost of the diesel generator. Project Benefits If successful,this project will result in many benefits to the Native Alaskans of Chignik Lagoon,the Bristol Bay Native Corporation,the State of Alaska,and others in the U.S.and elsewhere.These benefits include: oO Reduced electricity costs to the residents of Chignik Lagoon.Currently the residents of Chignik Lagoon generate their own electricity using diesel generators at a cost of between $.29 and $.76 per kWh.The new central diesel generator cogeneration system being installed by the Borough is anticipated to produce electricity at a price of about $.30 per kWh.This includes the cost of the fuel ($.08-$.11 per kWh),capital charges of a few cents per kWh to build and maintain a capital reserve,and normal operating, administrative and overhead charges.: If the proposed coal-bed methane/fuel cell project proceeds as currently planned,the cost of electricity is estimated to be $.07 per kWh (plus the administrative and other charges levied by local authorities).This assumes that a loan for the fuel cell is not required and: -a royalty fee of $.20 per thousand cubic feet of gas produced (10%of the value of the gas produced)is levied by the Bristol Bay Native Corporation for their rights to the coal-bed methane; -a 2%(i.e.$.04 per thousand cubic feet of gas)Resource Royalty Tax is levied by the Borough;and -well operating and maintenance costs of $.50 per thousand cubic feet of gas is assumed. -the fuel cell operates 100%of the time. If a free fuel cell can not be obtained,and if the costs of the water disposal and pipeline and the cost of the well activities not funded by the Department of Energy were financed,debt service on a 10.25%a 30-year,$887,000 loan would have to be included in the cost of electricity calculations.This would raise the cost of electricity to approximately $.20 per kWh (plus local charges), assuming the fuel cell operates 100%of the time. The waste heat from the fuel cell will be provided to the Chignik Lagoon school to met its heating needs at no cost.This will not result in any savings since the current diesel system provides free heat to the school. Pollution at Chignik Lagoon will be reduced as a result of substituting clean and efficient locally produced gas based energy for higher polluting diesel fuel systems. New businesses will be attracted to the region as a result of the availability of low cost gas (above the needs for the fuel cell )and electricity. Based upon analysis conducted by the College of West Virginia,the potential exists to replicate this project,if it is successful,at an additional 10 to 15 Native Alaskan sites.In addition,many other opportunities exist for replicating this project throughout the remainder of the U.S.and many other parts of the world. Projects Risks Some risks are associated with the project.They include: 10]Inability to obtain permits.This is a low risk based upon initial feedback from the Bristol Bay Environmental Corporation. Delays in the NEPA process.There is no way at the present time to accurately predict how much time the NEPA process will require.However, recognizing the small size of the project,the support that the project has received from the residents of Chignik Lagoon,the fact that the project will be located on Native American lands,and the environmental benefits anticipated from the project should help to expedite the process. Funds committed to the College of West Virginia from the Department of Energy for the project may not be forthcoming.Although a contract between _the DOE and the College exists for the production well,and some of the funds have been transferred to the College,the potential always exists that DOE may not be able to live up to its out-year funding requirements. Technical problems.Although the site has been well characterized for methane production,the potential exists that the well will not produce the amount of gas needed to supply the fuel cell or the generator.In addition, the possibility exists that the fuel cell will not operate as designed.Both of these concerns have a low probability of happening based upon past experiences. Funding the fuel cell.It is possible that grants will not be available for funding the fuel cell.In addition,an uncertainty exists regarding who would finance the funds for the fuel cell not available from grants.Finally,the availability of funds at EERC to guarantee the $200,000 for the fuel cell subsidy is uncertain. The cost of the project assumes that the water produced during the drilling and production of the coal-bed methane will be nearly potable.If it is contaminated,the costs of disposal could increase significantly. Attachment 1 Cost Estimate for Coal-bed Methane Production Chignik Lagoon Project Well Subcontractors (includes labor) -Site prep/dozer $15,000 -Drilling $60,000 -Casing/tubing $11,000 -Fracing $24,000 -Cementing $15,000 -Surface Equipment $16,000 -Plugging $10,000 -.Reclamation $14,000 Permits/bonds/survey $13,000 Leases/Insurance $4,000 Mobilization of equipment $470,000 Analysis $11,000 Housing for workers $118,000 Logging $45,000 Consultant $29,000 Total Directly Related Costs $855,000 Costs of College of West Virginia (salaries/travel/fringe benefits/indirect costs) $370,000 Grand Total $1,225,000 a CHAI WE Gel ClayOkShansrhicleche.,-/,7 - wh@to De 6 VO"W0Ak swe WF Ae ow DIF Coit emparie.2 @ Oticlyencuts 5 /?€4- @ tt TUE Cortpetuatet7 (if?>)OVA CY]O27 Ln)Dukes ° &2D Covet wedesBhrb(Ol ry o4EH:thyarln ce Pour of - O Cow we Pew THE Fea @ bho 7h Draft Letter Dear Representative Ogen: The division is very interested in the potential for coal-bed methane. Small coal deposits are widespread and abundant across Alaska.Past efforts indicate that many of these deposits are too expensive to mine as a fuel for nearby communities.It has been suggested that a potential may exist to economically draw methane gas from the coal seams,and use this gas to make electricity and heat homes.The Division would like to develop a comprehensive evaluation of potential rural host sites for coal-bed methane and small natural gas,and determine if in these communities coal-bed methane or natural gas represent cost-effective alternatives to diesel fuel.Preliminary results by the division indicate,however,that coal bed methane potential is limited to a small number of sites, and that the development risks are high. Through our own efforts and through a Cooperative Research and Development Agreement (CRADA)with the Morgantown Energy Technology Center in Morgantown West Virginia initial investigations have begun to identify potential host sites. These investigations involve accumulating data through a variety of methods.The division is seeking additional funds to complete a careful evaluation of maps,logs, drilling records,core data,and other existing information. A completed study would provide: a presentation of the geological and engineering data indicating gas potential. a methodology to identify and rank potential host sites background on the benefits of the technology and the reliability of the fuel source. discussion of applicability to Alaska and market potential. Development of project plans to include exploration and production cost estimates. Because of the costs associated with bringing a well,or wells into production,and the costs of collecting and distributing the gas,when compared to the long-term costs of continuing to use diesel fuel,it appears that the potential for this technology may be limited. Much of the initial work on coal-bed methane deposits in Alaska was performed by Tom Smith at the Division of Oil and Gas,Department of Natural Resources in Anchorage. Tom has been interested in coal-bed methane for at least the last five years,and is responsible for the a successful demonstration project in Houston.Although the Houston site provided essential information and demonstrated that the gas could be produced,this discovery was made in the competitive energy environment of the Railbelt,where electricity,coal and natural gas compete with low priced diesel fuel for home heating. Proposals from qualified engineering firms to determine the cost of producing a natural gas or coal-bed methane well under ideal conditions are expected the second week of March.I have enclosed a copy of the proposed scope of work. I believe that a report from the Morgantown Energy Technology Center may be available in the near future.If you have comments,or additional thoughts and would like to discuss them,I would be interested in talking with you. Respectfully, Dennis Meiners Attachment 1 Cost Estimate for Coal-bed Methane Production Chignik Lagoon Project Well Subcontractors (includes labor) -Site prep/dozer $15,000 -Drilling $60,000 -Casing/tubing $11,000 -Fracing $24,000 -Cementing $15,000 -Surface Equipment $16,000 -Plugging $10,000 -.Reclamation $14,000 Permits/bonds/survey $13,000 Leases/Insurance $4,000 Mobilization of equipment $470,000 Analysis $11,000 Housing for workers $118,000 Logging , $45,000 Consultant $29,000 Total Directly Related Costs $855,000 Costs of College of West Virginia (salaries/travel/fringe benefits/indirect costs) $370,000 Grand Total $1,225,000 i As or 156 AStewsrt Cabing 7 , Creek > Anguvik 4-24, « xe iRabbitaE"Ph sae Negroheadas) Northwest Arm co 7 Pa=| segfoolJi Chankliut |t"800000FEET(ZONE)+56°00' 1500 000 FEET (ZONE 7)158°00' @ INTERIOR GEOLOGICAL SURVEY WASHINGTON D C -1968 SCALE 1:250000 LOCATION INDEX i)5 10 15 20 25 MILES 1eV 158°Ss |)Sees eames eee awn eRe /hesis 7<fAy.f 2) ) ,IF L2 206 i | fh f ;iy f(*.oo fehee|needa Crepe cut [Vz 00 3 sood fdeo el Ares A ene ke Stare £--)|dv }v)Here e [ole 'aeeeaoe ar Lat bom/.'shat Pave.ppb ,Rio Ibe tae Fin Mur Uwe cat shart Prsrly- >i rn one ver al tehiley,Gath, -J ,pp ee )beg fo ME ae Abt oe. 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Department of Natural Resources Phone #Phone # Fax #Fax # Ths TS 0 L4LAFT tM Lethe TFse?Fy HenSu?Dear Tom: Recently I passed on to you a request by the College of West Virginia for funding to locate and extract coal-bed methane gas for use as a rural energy source.Although this request fits with the mission of the Division of Energy to assist with the development of low cost,reliable energy systems,which includes the development of local fuels,no information I have seen provides a basis uppai witch to support a funding recommendation.Our current research indicates that coal bed methane doesnot offer significant benefits for rural Alaska.And the proposal by the College of West Virginia doesnot include any clear justification for a coal bed methane exploratory drilling program. The division has been working on a comprehensive evaluation of potential rural host sites for coal-bed methane and small natural gas development.Preliminary results from this work indicate,that coal bed methane potential is limited to a very small number of sites,and the development risks are quite high. Your department has been assisting and is familiar with these efforts.So far,no evidence has been produced which indicates that coal bed methane technology has the potential to provide any long-term benefit to rural Alaska.If other information is available to your department or from the College of West Virginia which indicates otherwise it would have bearing on our support. co co My understanding is that if the CoWV is successful with its funding efforts,the funds will be used for a drilling program at Chignik Lagoon.Before the division would consider funding a site specific drilling program or a demonstration project,we would first determine if there was community or utility support. This raises a concern that the CoWV maynot have contacted important community leaders,as the community has made a request to the division to assist in the development of a hydroelectric project. Also important to an investment decision and the success of this project would be:a presentation of the geological and engineering information indicating gas potential,a methodology to identify and rank a range of potential sites,some background on the benefits of the technology and the reliability of the fuel source,as well as a comparative analysis of energy options.This information would be very useful to all of us,and vital to supporting a funding request. The Division of Energy wants to encourage the efforts of the CoWV's in developing,Alaska's rural energy resources.We would like to become more productively involved in understanding the opportunities for coal-bed methane development.While the division is not in a strong position to assist with funding for this project given our other responsibilities,we would like to help in whatever way we can to make this work successful.But right now,we don't have enough information to evaluate the merits of this proposal. Respectfully, Dennis Meiners C5 C -Department of Community &Regional Affairs TO:Dick Emerman DATE:April 13,1995 Senior Economist SUBJECT:Fuel Cell and Coalbed Methane power system for Chignik Lagoon FROM:Penny Haldane Engineering Analyst The Polarconsult draft,p.223,speaks briefly about USDOE's plans to drill two coalbed methane wells in the Chignik area.It is noted that the funds have conditions dictating that the land drilled must belong to a native corporation and that a fuel cell be used.The Polarconsult report says that the State of Alaska should direct the location of these Federal DOE operations and that the criteria should be: 1.High cost of currently used diesel fuel 2.Community size should be large 3.The community should not have a means of acquiring renewable resources such as hydroelectric power or be connected to a central power grid 4.There should be a reasonable chance of finding the gas resource Conclusion of the Polarconsult report:Fort Yukon fits this criteria.Chignik does not. My comment:Earle wants Polarconsult to put in a hydroelectric project at Chignik and to put in a coal bed methane project at Ft.Yukon.These are his goals.Questions back to DOE regarding Chignik Lagoon Village Council,Chignik,Alaska Small-scale hydroelectric feasibility study:(See attached first page from USDOE Jan./Feb.publication) 1.What are the details on this hydroelectric feasibility study (Contractor,$amount, timing)? 2.Would both fuel cell/coalbed methane drilling and the hydroelectric feasibility study be done? 3.If both are still moving forward how do they plan to deal with what will likely be a considerable surplus of power (population within 10 mile radius;Chignik 183, Chignik Lake 131,and Chignik Lagoon <100). Tom Smith at DNR says that Chignik Lagoon has the right type of coal directly under Chignik Lagoon.However,the coal is likely to be lenticular and discontinuous which may result in the need to drill several wells during a 20 year period.Tom Smith did not know anything about the 8 volumes of proprietary information made available to Jim Weekly,by the Bristol Bay Native Corporation.Regarding the 80%probability estimate that coal bed methane could be produced from coalbeds around Chignik Lagoon;Tom Smith says maybe 80%chance of hitting coal but uncomfortable with such a high probability for producing coalbed methane.He would have to see more on exactly what they say is 80% and what they base this estimate on to be more definitive. cc: ©© |talked with Dennis about the Chignik Lagoon fuel cell/coal bed methane USDOE project. He said he would send us the project description,backup information and budget summary when he receives them. The economics of the project cannot be determined without additional information.The information coming from USDOE will hopefully shed some light on the economics.Also if the Polarconsult report is significantly revised we should be able to do a rough estimate from a cost table.The current Polarconsult draft has nothing that can be used for this rough estimate. Dennis Meiners,Department of Community and Regional Affairs Oe Oo MEMORANDUM DATE:April 20,1995 TO:Dick Emerman,Senior Economist FROM:Dennis Meiners,Development Specialist Bi ' RE:Chignik Lagoon Fuel Cell cc:Penny Haldane,DoE,Tom Smith DNR Monday,|received several copies of a proposal by the College of West Virginia entitled "Alaska Multiple Strata Exploration and Production Study.” The proposal is to the Department of Natural Resources,requesting cost share funding to test drill for coal bed methane at Chignik lagoon.The purpose of this project is to demonstrate both the viability of coal bed methane as a fuel,and the value of the associated technology for use in developing local energy sources for isolated,predominantly native,rural communities in Alaska. The College of West Virginia (CoWV)has partial funding for this drilling program through a previous contract with the Morgantown Energy Technology Center for similar work in the state of West Virginia. The reasons for choosing Chignik Lagoon are not clear.This total project, coalbed methane wells and fuel cell installation,could cost in excess of $3 million.The community has around 60 residents.The Division has recently provided assistance to complete a basic electrical distribution system.An assessment of the hydro development has been completed and will compete with this proposal. The College of West Virginia may have done a considerable amount of careful background work.Before the division could make any recommendations in support of this project a complete disclosure of the background assessments that led to this development would need to be presented. |believe that the division could best assist the METC/CoWV efforts by making certain that the contract scope of work includes: 1.A comprehensive evaluation of potential host sites for coal bed methane development. 2.Presentation of geological and engineering information which indicates coal bed methane potential., 3.Creation of a methodology to identify and rank potential development sites. 4.An economic assessment of alternatives in potential host communities. 5.Development of project plans to include exploration and production cost estimates. Oo 6.Funding of a demonstration project based on potential benefit and economic evaluation. |will be discussing this approach with Tom Smith,DNR. Dennis: I have attached the original statement of work tor the College ofWestVirginiacontract.Note this contract has been in place Since 1989.On page 4 you will note at there existed an optional fourth test well.What we did was excise the option.I included (last 2 pages of fax)the new 1994 write-up for the optional well.The Task 10 clarification and specific definition places this well in Alaska. Don Bonk RQ /¢Z #4'OfR7COb/NA -VI 'WINT-T *Rory +vi:10 TAMIC ALASKA OIL AND GAS LEASING PROGRAM178V4170/tHe 162 138 164 146"tae”I 138°434°130°W265"tee°418°od°C.A R;C TIC gi 86 irowaesne8 Gy CE A ON i a /81 pe "!ArorT e4 |ALASKA ©a ;DEPARTMENT OF\io S 7 So :NATURAL RESOURCES °é =a ional etroieum --s,='* '\oe"§"Reserve Aluske =coos Area)\DIVISION OF OIL AND GAS |* a Sy |Col;=.JAMES E.EASON,DIRECTOR cs 4 i)ville é \7 ,Arctic National -1993 SALES re Wildlife Refuge .\76 Cook Inlet 1-93 "Aa - \67A-W Cook Inlet 1-93 * ",8 ¢.77 Nanushuk 5-93 |\yceu \70A-W Kuparuk Uplands 5.93 |% ih ee 57 North Slope Foothills 9-93 Arctic Circle \st @ Fort Yukon!1994 SALES E-\D4 y ;78 Cook Inlet 1-94 |\ 79 Cape Yakataga 7-94 80 Shaviovik 11-94 ayer”1995SALES ETUR81BeaufortSea 4-95 82 Icy Cape 7-95 83 Western Beaufort Sea 11-95 1996 SALES [J 84 Copper River 4-96 Mc Grathe 85 Cook Inlet/Shelikof Strait 7-96 |& 86 Western Beaufort Sea 11-96 am 1997SALES [|__| a ask 87 Kuparuk Uplands 4-97 50°N 88 North Slope Foothills 7-97 %'89 Eastern Beaufort Sea 11-97Seaeé©Bethel SCALE 1:10,100,000 , of \Base Map:Transposed from AK DNR LRIS,Abers Equal Area Projection.©)1 Redrawnin Autocad &A.Freehaneby M.Pritchard &O.D.Smith.9/92:SLT WEXS;."Juneauer;Dillingham,ee , wh pv SS .fa 85°I ;In 4 fe °6vaes)Sp Petersburg)oe 7 Phyat4i2\ 56°pris!.Ketchikane Miof i Cold Bay gS C oce AN Unalaska @ i550 a 162°158°1549 150°146°142°138°134° led C2nbn,Fal Ge sbi 7 Weary Gl_DMs oh.fal,- -_pelleoorhe.te pTtoyL-LWh _gDY-W9D oe SOME-Lun2d.CayA ae -Coll b.Swept7 ___ , af ;4 ,&,gy Pcl Cups po CME welts Oe LLE Cnet OY:Lo Et a po EEE LIAS -ee iharieg Oy te.nee GscP,;ee eeeeee_Pee hl,He.wy,cevennd too #Yon t,he ae_an ple._i ce ev eee opeenon ne epee ees pe ry ffaYLaeoresSenBree."Ay vetste Cuthea7”Lb wkaeLair.ipo LeeordAr A,a te.Com prceor »Loe io ne ''#;Sere 4 Ope Lie be.fo tol ry Ltao b Qotlesn fie hom -O%-238 WB HL.-22¢-G 0% -9B -_re SUAVE OF ALASKA DEPARTMENT OF NATURAL RESOURCES. DIVISION OF GEOLOGICAL &GEOPHYSICAL SURVEYS Office:(907)474-7147Fax:(907)479-4779 JAMES G.CLOUGH Geologist Carbonate sedimentology °Basin analysis »Coal resources State of Alaska Department of Natural ResourcesDiv.of Geological &Geophysical Surveys 794 University Avenue,Suite 200 . *)Fairbanks,Alaska 99709-3645 Dennis -. _l enqoyed fe lens wy eel WALTER J.HICKEL,GOVERNOR & 794 UNIVERSITY AVENUE,SUITE 200FAIRBANKS,ALASKA 99709-3645PHONE:(907)474-4147; FAX:479-4779 Swe oe GEOLOGIC MATERIALS CENTER P.O.BOX 772116 EAGLE RIVER,ALASKA 99577-2116 PHONE:(907)696-0079 FAX:696-0078 QO 400 WILLOUGHBY AVENUE,3RD FLOOR JUNEAU,ALASKA 99801 PHONE:(907)465-2520 Bhaut Frel cells.Here "She -¢oa|me p.Tve ge a Cal|LA +."Tein,S nich me abwth the gas "N Copper +o Cs]i Center - "Nim C Lovey iets!ert Crell ye stud a Coe!fb f?fe dlLhes,ANT sé indian Ny ary 2 oa ,/Pnwtffe ."?wen Lyte gy SMe gh aoa,Cf,HF eter(Tovace pee &"7 af a COY - Bon ©FO [lor go Coe,[jot CEHE Cee od-2OCSA? AY -790-OFF Sot H POl-VCP (FRY) 4 07/06/94 09:27 --CREP.NACLEAN >1 S07 4654650 i,eR "INDUSTRIUR'30°764""e@g:SseM NSB PNCA LIAISONS?Ls JUN 29°94 =1118 No.PTSeP01 NORTH SLOPE BOROUGH DEPARTMENT OF INDUSTRIAL DEVELOPMENT BARROW GAS FIELDS ANCHORAGE LIAIBON OFFICE P.O,Box 1120 9201 C Street,Ske 602 Ratt Barrow,Alaska 99723 Anchorage,Alaake 99603NIPhone:(807)052-0905 Phone:(007)661-8820Fax:(207)842-8071 Fan:(607)862-1949 BILL BROWER,Director 852-6395 MEMORANDUM TO:Dennis Roper,Government Affaira TYROM:BIN Brower,Directar Energy Management DATE:29 June,1994 ii SUB].Alaska Division of Energy Request,Item 4. T have attached a copy of the Project Summery Report from Barrow Technical Scrviccs thateddrosaosthecurrentstatusofCIPProject13-176,which deals with [caaibility far initiation of aproposedgasdevelopmentandtransmissionprojecl.This study will include mapping to tracepotentialproductivepashorizonsclosetoNuiqsut.The pasaibility of a cooperative *development with ARCO Alaska ts aluo being discussed. a The Department of Enorgy Management is also preparing to study feasibility regarding thedevalopmentofcompressednaturalgaainBarrowformunicipalandpublicuse,as a possiblealicrnativetothemoreexpensivadependencewuUguidfuels.This siidy will also beperformedbyBarrowTechnicalServices,data should become available by the and of the year. ]hope the attached information is of valuo to you for your response to Representative Macleansoffice.If you roquire additional information,or have any questions,please call at youreconvaniones. hy 87/06/94 @9:07 REP.MACLEAN *1 0?AEE08a ecion set --ree lg gan sapepentiis oo!7 JUN 29°94 11:18 No.BIyeP.OlINDUSTRUR30°74"eg:Ssan NSB PNGA LIAISONS?1 NORTH SLOPE BOROUGH DEPARTMENT OF INDUSTRIAL DEVELOPMENT BARROW GAS FIELDS ANCHORAGE LIAISON OFFICE P.O,Box 1120 9201 C Street,Suke 602tiiBarrow,Alaska 99723 Anchorage,Alaaks 93603iPhone:(907)952-0395 Phone:(907)681-8820Fax:(907)642-8971 Fax:(007)882-1949 BILL BROWER,Director 852-6395 MEMORANDUM 'TO:Dennis Roper,Government Affairs YROM:BM Brower,Directur ¢§yetEnergyManagement DATE:29 June,1994 Pe |SUB}.Alaska Division of Energy Raqueat,Itam 4. I have attached a copy af the Project Summery Report from Barrew Technics]Services thataddrossosthecurrentatatusofCIPProject13-176,which deals with fcasibility for inikation of aproposedgasdovelopmentandtransmissionprojecThisstudywillincludemappingtotracepotentialproductivegashorizonsclosetoNuiqsutThepassibilityofacooperative 7 development with ARCO Alaska is alao being discussed, a The Department of Enorgy Management is also preparing to study feasibility regarding thedevelopmentofcompressednaturalgaainBarrowformunicipalandpublicusc,as a possiblealfcrnativetothemoreexpensivedependenceuHquidfuels,This study will also beperformadbyBarrowTechnicalServices,data should becoms availablo by tho ond of the year. ]hope the attached information js of valuc fo you for your response to Ropresentative Macleansoffice.If you require additional information,or have any questions,please call at yourconveniences. 87/26/94 @9:88 REP.MACLEAN +1 937 4654658 ). Des . INDUSTRILN 387947 a9:O@AM NSE ASCHLIAISON?3 Ne See ICAL SERVICES INCORPORATED aieth June 16,1994 Chris Batchelor,Project Adminstrator North Slope Borough CIPM Barrow,Alaska PROJECT SUMMARY:Energy Assessment Project CIP Project No.13-176 Mr.Batchelor, Barrow Technical Services,with the cooperation of ARCO Aleska Inc.and the United States Geological Survey,has made significant progress In the data acquisition and initialinterpretationofthenaturalgaspotanualofthevillages,capecially,Wainwright,Aiqasuk,and Nuigsut,and to a lesser degres,Polnt Lay.A summary of our efforts to date and suggestions for some project changes would now be appropriate. ;NUIQSUT ey On February 25,1994,along with subcontracted geologist Teresa Imm,I algned a confidenilality agreement (copy enclosed)with ARCO Alaska giving ms accoss to propristary selamic,well log,and geologic map data from lands west of Nuiqsut.The agreement gives me and Teresa access to the data for review and interpretation of Nuiqsut gas potential,The agreement is fairly sirict;any analyses or compilations of the data are also confidomlal and we must run evory interpretative work by ARCO before we can rejease it to the public. As a result of the Nuiqsut agreement,BTS has planoed a mapping project to trace one and possibly two potentially productive gas horizons west and north of Nuiqaut,in areas where ARCO is prosently exploring,and to other nearby wells which contain publicly available information.This task has beon delegated to Teresa. Also,and possibly more importantly,there is a potentlal for cooperative development work near Nulqsut.ARCO drilled wells within 8 milea of the village last winter and, although no wells are planned for the upcoming season,it is thought that drillingexplorationintheNuiqsutareawillcontinue.ARCO agrees that it may be possible toworkwiththeBoroughtotestshallowgasintervalsinthairexplorationwolla,as well zs to leave tho well(s)suspended shoutd the gas Intervals look promising.This kind of cooperative work would Involve all sorts of pro-drilling arrangements,including co- funding of a portion of the program by the Borough,especially where it would deviate frora the routine exploration aperation.Dut it is sot out of the range of possibility,and is the moat direct way to assess Nulqsut gas potential,I will discuss this more with ARCO and report to you as the idess develop. at P.O”.Bax 955 Barrow,Alaska 99723 (907)8$2-8212 67/86/94 09:68 REP._BO4.4ceviewtienenmetencereetmeeccee woe neomeesooINDUSTRILR'30°754°"agtatam NSBTARSLINTSOI972 JUN 29°94 -LITLY NO.Beg US ATQASUK On April 29,1994 BTS entered into a licensing agreement (copy enclosad)with ARCO tohaveaccessto482milesofreprocessedNPRAseismicdatawhichcoverstheAtqasukateaandallnearbywellsforcontro!(with the exception of Meade River No.1 whioh has no seismic tis lines).Seismic te lines include those to the Kugrua No.1,Peard No.1, South Meade No.1,ARCO Brontosaurus No.1 and Kuyanak No.1 wells.For access to the data,BTS agreed to pay approximately one-third of the reprocessing costs (350.00 permile)for a total cost of $24,125.BTS has alraady received paper and mylar copies of the data from ARCO,and digital backup for workstation work and archiving is being made now,The data itselfis confidential,but interpretative works which we derive from the data can be made public.Ths agreement with ARCO will terminate when BTS retums the data or when the data becomes publicly avallable by other meansBRE In addidion,BTS has received essential well datz from the USGS in Denver and Anchorage for the Atqasuk area,This data Includes the published goologic reports and the synthetic seismograms which tie the woll information to the selamic lines,With thess three components,the reprocessed seiamio,the well data and the synthetics,BTS can map all potential yas horizons in the Atqasuk area. WAINWRIGHT/POINT LAY BTS has obtained paper copy of NPRA sojammic from the Wainwright area from ARCO,ba and synthtetic scismogram and geologic woll data from the USGS in Denver and Anchorage.Subsurface mapping of prospective horizons In ths Walnwright area isalreadyunderway,The seismis data is of poor to good quality and useful as a prossmeppingtool.Reprocessing would greatly improve tha quality of this data,especiallywhencorrelatingseiamiclinesofdifferentage. 2 a On June 3,1994 BTS finalized the selection of NPRA seismic lines that cover the ae Wainwright/Icy Cape areas and'tle into al]local well control (memo oncloeed).ThesewellsinchideTunalikNo,1,Kugrua No,J,Peard No.1 and South Meade Na.1.The selected lines,totaling 572 miles,will be reprocossed by Western Geophysical in Houston. BTS will pay full price ($140.00/mile)for the reprocossing,for a total estimated cost of around $38,000,ARCO has proposed that,[{f BTS pays the full price for the reprocessing of the Walnwright area and shares the data with ARCO,then they will reprocess and share with BTS the NPRA data which is of similar size and lies betwoon the Atqasuk and Wainwright arcas.By this method BTS will pay half price for access to the two data sets. Also,asa result of thess proposed oxchanges,ARCO and BTS will have completa acosss to a uniform data set which covers a 15 mile X 80 mile belt from Deas Inlot to Icy Cape. This data set will provide the Borough with a state of Lhe art reference for evaluating the enorgy potential of northern NPRA.The date set will be of similar quality to the 10 milsX20mileareaofseismiccoveragecurrentlyarchivedbytheBarrowGasFields Department which contains the Barrow/Walakpa areas. it Q7/86/94 89:09 KEP.MACLEAN +1 927 4654658CenaerMemmess WALAKPA ARCO obtained gas and fluid samples from the Walakpa area in their ongoimg eveluation ofthe lands south and east ofthe Walakpa gas fiold.The initial results from their sampling program have given the Borough important Information regarding the nature of the reservoir,The results have already boon shared with Gas Field Department technical staff' as well as with Bill Brower,Diroctor. CHANGE ORDER NEENS As it slanda,there are not enough finds to cover the sciamic reprocessing costs within the BTS reimbursables budget for the Alternative Energy Study (Contract No.94-163, Project No.13-176), Ths Project Reimbursables Cost Detail (13-175-50-58-999)was Initially funded at ; $97,488,As of the April 30,1994 Invoice,thore is a balance of $91,710.Reprocessingcostswilltotalabout$115,000. BTS is requesting a line item change to reduce the Professional Service Detail of this project by $15,000,and requesting a transfer of $18,480 from the project contingency code.These two amounts should be added to the Project Reimbursables Cost Desai), giving it a balanco of $125,190.The small surplus in the relmbursables will be used for travel and report generation. Also,the timing of the reprocessing work (Late August,1994)will make it necessary toextendthadeadlineoftheprojectbeyandtheSeptember24,1994 project deadline,until about March of 1995. The amount of work Involved with sharing the Walakpa data with ARCO neods to berecognizedinanyfutureupfundingoftheproject.This work was not part of our originalproposalbuthasbecomeasignificantpartoftheinformationexchangoprocess.Atafuturetimeachangeordershouldbsemadetothescopeanddollaramountofthe Professional Services portion af this contract to recognize this additional work If you need any more infonnatlon or have any more questions please call me at yourconvenienec. Sincerely, Co Br Breen Richard Glenn,Project Managor cc: Teresa Imm Bil)Brower Das . INDUS TRIUN Sa 794°"a9:a2Am NSB ANCH LIATSON971 JUN 29°94 11:19 No.P.6-eP.04 = Facsimile Cover Sheet To:Don Bonk Company:METC Phone:304-291-4889 Fax:304-291-4469 From:Dennis Meiners Company:DCRA/Energy Phone:465-4632 Fax:465-4658 Date:07/01/94 Pages including this cover page:3 Comments:Don A packet of stuff will be coming your way.Which we can discuss.Yer pal Dennis Memo To:Don Bonk From:Dennis Meiners Date:July 1,1994 Subject:Various Yo Don: Have several leads out still checking on natural gas potential.I have asked other agencies and a few folks to look into some local reports of gas seeps and water wells which have had to be sealed or have produced gas.I cannot guarantee anything here but this I believe is where we might have some luck. Such locations are Beaver,and around Glenallen. There are a number of initiatives to identify potential deposits. First:The Energy Division through the Alaska Department of Natural Resources,Division of Mining in Fairbanks has contracted on our behalf for a Magnetic Survey of The Bethel Basin to locate potential drill- site locations for natural gas well which could be used for local energy production.This survey will be conducted this summer and the results will be available late this year or early next spring. Second:The Division of Energy has contracted to compile all known information on natural gas deposits across the state.This should collect all the information and present it in a usable form.This project will be completed by I think September. I have requested several documents which will be sent to you. Historical and Projected Gas Consumption Coal Maps And community profiles for :Chignik,Chignik Lake,And Chignik Lagoon.Also Kaktovik,Anatuvik Pass,Nuiqsut,Atquasuk,Wainwright,Cape Lisburne,Point Hope,and Point Lay. I am very uncomfortable with a fuel cell being located in Houston,and the way this process is evolving. Houston is on the intertie.Communities on the intertie enjoy inexpensive electricity which is produce from state subsidized natural gas.The only ones to benefit from a fuel cell in Houston are Dave Lappe who is being provided with federal money to develop his coal leases,and potentially as an independent power producer selling fuel cell energy back into the grid.Which by the way is unlikely since the avoided cost is somewhere around 3 to 4 cents.I am having a very difficult time understanding the benefit of this project to the state of Alaska.Andif this is the only project we can identify perhaps someone can help me understand the benefit.Fuel cell technology in Alaska has already been demonstrated,and the coal bed methane is in an area that does need the fuel.So I would say if you are stuck on coal bed methane, we better get serious about Chignik and forget Houston. I have been told by a very reliable engineer and someone who is involved in the current upgrades of the intertie of the Anchorage-Fairbanks Intertie that the addition of a 200 kW fuel cell would not significantly offset line loss as to be noticeable. Various 07/01/94 Page 2 Options I believe that should be explored are:1.The shipment of natural gas,either in its compressed or liquefied form.2.The extraction of natural gas from the pipeline,and its use in communities along the way.I know Randy doesn't like this because it doesn't meet all the program criteria,but it may fit with what the needs in rural Alaska are. What is the extent of involvement of the University of West Virginia??Are they experts in coal bed methane?Why not the University of Alaska/Fairbanks. Anyway I apologize for not being able to get to this until now.I have made a number of calls and was hoping to hear back from some folks up north by now. -ayHISTORICAL ne AND |nary wren | PROJECTED OIL AND GAS CONSUMPTION FEBRUARY 1994 Wcd.(<'\kn.Yi+ eee nl Wes yar#Alas ent ofae Ls o>Syigdght oP ite). PDIVISION OF OIL' ,we ae te STATENORTHSLOPE ===PrudhoeBay ae or:rs = Tmt AEN Usa Sa WyYSap Lisbume \Milne Poin \ Sag Detta \SSS) TAYSchragerBlutt\ COOK INLET McArthur River Swanson River Middle Ground Shoal one \{A QBeaverCreek 199319901o06197019741978toe2tose10821950 16 4 HISTORICAL PRODUCTION OF NATURAL GAS Table 4 lists the volumes of gas extracted from and injected into each Alaskan field.The table includes regional subtotals for gross production,injection,and production net of injection. Figure 4-1 graphs production of North Slope gas,net of injection,from 1958 to 1993. Figure 4-2 graphs production of Cook Inlet gas,net of injection,from 1958 to 1993. All Alaska gas Is produced from the North Slope, mostly from Prudhoe Bay area,and from Cook Inlet,the same two regions that produce all the state's oil,The production regimes of the two regions are very different because their markets are very different.The primary market for North Slope gas is as fuel for oil production and related facilities.Most of the extracted gas Is injected back into the reservoirs.That gas is available for sale if and when a market develops.No gas currently is marketed off of the North Slope. Cook Inlet fields,however,tie near the Anchorage and Kenai commercial markets and two gas processing plants.Consequently, nearly all extracted gas has been consumed and very little has been injected. NORTH SLOPE North Slope gas production began in 1946 from South Barrow field,which produces gas for Barrow's local use.Prudhoe Bay oil field was discovered in 1968,and during the development of the field a small amount oil and casinghead gas was produced for fuel.When TAPS was completed in 1977 and commercial oil produc- tion began,a large amount of dissolved gas was produced along with it.Through seventeen years of production,as oil has been withdrawn and gas returned to the reservoir,gas has be- 17 come an increasingly greater proportion of field production.Since 1977,net gas production has grown in all but two years to 252 billion cubic feet in 1993 and is expected to increase for the next several years,whether or not a gas pipeline is built.North Slope fields have produced a cumulative net 2.1 trillion cubic feet by the end of 1993.North Slope lessees report NGL production as natural gas production. COOK INLET Cook Inlet gas production began with a small net production from SwansonRiver field in 1958 and remained low for several years.Regional production grew from 12.8 billion cubic feet per year in 1966 to 145.0 billion cubic feet per year in 1970 then rose more gradually to a peak of 217 billion cubic feet per year in 1985 and has generally declined to 196 billion cubic feet per year in 1993.Cook Inlet fields have produced a cumulative net 4.5 trillion cubic feet by the end of 1993. Since its early years,Swanson River gas and gas bought and "rented"from other fields has been injected into the Swanson River oil reservoir to maintain reservoir pressure.In late 1992 the operator ended the injection program and that gas is being produced now. 07/a5/94 14:87 D0 CAL GAS +1 987 4654658 NO.714 Facsimile Cover Sheet To:Dennis Meiners Company: Phone:907-465-4658 Fax: From:David Freer Company:Southern California Gas |Phone:202/662/1700 Fax:202/293-2887/2888 Date:07/05/94 Pages including this cover page:5 |Comments: D1 Lal,bleh!er 2 Wp <r Lyf 902.done&PrTay =Comuck Oy Pew 79029 fF phitud- oo J Ysy? )fo 259°Marnie abo l Ii Sten!rt,a wa 1h Li.Arta Usciay fll wbube cored as ;Matin Gas -lant a ain. Wt hbofin tasDan,toh bel cb Oo Gel fi tare Al Proper-Z My thee sfibves vile rbhe K col dyeriletoumpteKraynetcafOLpinehicAe,1CthelyquAdvillewoborMagespth whehehAAenbobelhicMS.ff fore Dh ecrnerChathpastif.brah,Pept en ce lestts wre c omee4 . Cdtwat Eu fic eek Titi Gon,+/yCozéJ2€Coyove Gel fl Mech, Cht6 WEE LUKE -Fac Cel tedacd cw ben hy Ania AE Nitin Gm 99 40 myer-Ton Sch Stef Plt ba,Lu Ph telay--Oharvacl bud,©pa bee yo 'ples. ..Seen any etha-cclenerably ek YOu -ponhl [ee ere wal pat Syl aiePhasampFuncuhs U.S.DEPARTMENT OF ENERGYMorgantownEnergyTechnologyCenter 3610 Collins Ferry Road .7 Morgantown,WV 26505 REC!DUP/FAXcouJul18PMI2#27 FAX TRANSMITTAL Number 'of Pages:_9J_(including Transmittal Sheet) DATE:OD /19/74 ro:DCRA G07)Ai 2.948CompanyFAXNo. "Dennis Mimeds - ladividual : FROM:ew Bask (304)COA Name Phone Mail Stop MESSAGE:_Seg AnacumeuT 262 Yowe.faaussT NOTICE:tt there is any problem with this transmission,please call us immediately. METC FAX INFORMATION FOR METC USE ONLY Machine 3M 9165 Sensitive:O Yes U No ETS Or Commercial Disposition:4 Retum to Sender Transmission (304)291-4469 Q Other (304)291-4403 Verification (304)291-4554 Transmission:Date: Time: By: METC F 5330.1 (10/92) 0d:Ad NGS/ R/T #:8bR2G9bL06 -O1AW 'WdOT:T $P6-8T-L thi épy -Coul bed 43 Laces ff Kop,Koy fleodeb tld(th beg ual La LL TEAE [Ca rayees rye L i whe seller aad pre liveshneygoleguevents bz,ah «)