Legalectric

Ya’d think that with all the jawing about public participation and open and transparent process that Intervention for affected parties would be a given, that people on the ground could participate in the process… well, I certainly don’t take that for granted because the reality is a long ways from the hype. Today we get to address, among other things, Intervention of mncoalgasplant.com in the Excelsior PPA docket before the PUC. For the Excelsior filings, go to mncoalgasplant.com and scroll down. Here are their filings since the application.

Our Intervention Petition: Download file

Their Objection to our Intervention: Download file

They rely on a prior Denial of Intervention in an unrelated EQB siting docket some time ago, and are saying that the denial was because the Petitioner did not demonstrate why non-party status was insufficient. They also complain that there are no members of the group identified — and that’s not a requirement for Intervention. This, when Micheletti announces at public meetings that he will not take questions from me because I represent people up there?!?!? Uh-huh, right…

And here’s my Response: Download file
Response to Objection – Attachment A: Download file

Response to Objection – Attachment B: Download file

What Excelsior must not have known, in citing the SW MN EQB Siting Denial, was that it was my Petition that was denied. I had submitted the Petition to Intervene after being denied participation as a non-party at the hearing, shut out completely, so I got out my computer on the spot and drafted the Petition and turned it in. Nevermind that prior to that hearing I had been given assurances that I’d be able to participate as a party, and though locals would get priority, there was no one clamoring to be heard, no line of citizens wanting to comment who might be shut out if I was questioning witnesses — it was a farce, participation was not possible, the ALJ would not allow it. Because non-party participation had already been attempted and was not possible, it makes no sense to have to demonstrate why non-party participation was not sufficient — the record reflects that! Not a good move, Excelsior!

Naaaaah… it wasn’t one of THESE!

Cliche, but really, I’ve received three reports now of black helicopters flying the proposed routes for the pipeline and transmission lines for Excelsior Mesaba power plant project. The sources were reliable, credible, and it’s not really suprising, because that’s how they did it on the Arrowhead project. One observer said, “My 5 yr old asked why it couldn’t fly away to India or Spain (in her mind that must be the end of the earth).” And I have a sighting of my own to report — on the way up to Thursday’s meeting, I saw a very shiny black helicopter, small, not at all like the one pictured above, on a yellow trailer being pulled by a big white pickup traveling the lawful limit (so I didn’t have much time to get a look as I blew his doors off), and it caught my attention and I even wrote down the name of the company… on a napkin… location unknown, and I’m not about to dig under that car seat and find it, eeeeeeeuw.

There were two Mesaba editorials in the Grand Rapids Herald-Review:

Energy crisis needs creative thinking

Editor:

Most people like to see themselves as independent. Yet we live a society based on addictions-alcohol, drugs, money, and power, both the personal kind as well as the energy kind.

All corporations want us dependent on them, because it pays. True independence is not based on what one has, as much as what one can do without. The proposal to build the coal-fired power plant by Taconite is just another way for another corporation to keep people dependent on them. Besides the fact that it fosters dependency, the main problem I have with any kind of centralized power system is that all it would take is one bomb or one disaster, to put this, or any area, in deep trouble.

The whole concept of using coal, as well as oil and gas, is based on dependency. We are first dependent on one company for power, for trains to bring the coal to us, on miners to dig the coal, and so on. All of these processes require energy to make energy, and all of them create waste from the exhaust of what is burned to acquire the coal, as well as burning the coal itself. Also, if any part of the process is interrupted, our power supply is immediately threatened. Maintenance costs would include the mines, miners, railroads, and the plant itself.

I have seen plans for a wind generator that costs about $1 million to build, and started generating electricity with a 2 mph breeze. With the money this corporation wants for their power plant, we could put up 550 wind generators. Once a wind generator is up, all it requires is wind. There are no waste gasses produced and maintenance is limited to the generators alone.

Every Range town has hills or tailing dumps above them, or a lake by them, where the wind blows steadily. If every town erected the optimum number of wind generators their hills and lakes would allow, we would immediately become less dependent. Clay Boswell could be used strictly for emergencies.

Not only could we power every Range town, the generators would create enough electricity to sell back to the power companies, which have to buy it. Wind generators would pay for themselves. Given the continuous and never-ending operating costs involved in a coal-fired power plant, it would never pay for itself. We would continue to pay for it until this country ran out of coal, and then we’d have to put up wind generators away.”

We, as a people, need to stop thinking inside the boxes we were socialized into, if we want to be less dependent on everything. In this case, we can either risk being more independent, or we can stay indebted to corporations for the rest of our lives, and our children’s lives. As has been said, we do not inherit the land from our fathers, we borrow it from our children. Is dependency the legacy we want for our children?

Gary Burt
Taconite

Here we go with a “wedge” letter:

What is best for northern Minnesota?

Editor:

It is with great interest that I read the opinion from Tim Zoerb (Wednesday, April 12) about the Excelsior project. I agree with him that we, as a state, have to be very careful with our air and water, and it is a hard pill to swallow when it is your land the government wants to take. Though, I wonder why someone with an Eden Prairie address cares if the water from the Canisteo Pit is routed through Trout Lake. Is an agreement with the Trout Lake Association the best thing for northern Minnesota? Why does the association feel that running the water through the lake they live on would help our area?

Getting back to the Canisteo Pit, does anybody know that the city of Taconite and the Iron Range Township pulled out of the Western Mesaba Mining Board, calling it a special interest group? It would be nice to see a few good jobs come to the area so we do not end up as a retirement retreat for the people from the Twin Cities.

“Better and less expensive ways to create good jobs,” as you quoted in your article. Mr. Zoerb, I believe there are probably a lot of people on the Range that would like to hear your ideas.

Oh yes, by the way, here it is, right on the Itasca County Web site: Parcel No. 40-430-0170. Timothy and Patricia Zoerb (Seasonal-Recreational-Residential) on Trout Lake. Maybe you could hire a Ranger this summer to take care of your lawn so at least one person could make a good living and raise their family in the area they grew up.

Robert A. Kyllander
Coleraine

Perhaps Mr. Kyllander could take note of the number of construction jobs created with the housing boom up north, because I’d bet it’s a lot more than those in Excelsior’s wildest dreams, or even its outrageous “Duluth study.” And we will need more information on why Taconite isn’t participating in various local groups, there was a similar report at the Trout Lake Township meeting, that Taconite had withdrawn from participating in, I think, a different local group. More on that later…

We’re having an information meeting about the Mesaba project:

May 16th at 6:30 p.m.
Trout Lake Community Center
County Rd. 10 – Trout Lake Township

Bring treats to share — we’ll have coffee & ?

At this meeting we’ll be going over the project, looking at all the venues available to participate and talking about process, and formulating questions for Excelsior and local governments about this project — we’re at a preliminary stage where people are learning about Excelsior’s Mesaba project, yet it is moving forward toward reality — when the black helicopters start flying, people start paying attention.

For more info on the Mesaba project, including PUC filings, check www.mncoalgasplant.com.

Here’s the site plan: View image

Actually it’s a Trout Lake resident and my clients’ website that’s in the news:

www.mncoalgasplant.com

Web site addresses Excelsior Energy issues

Last Updated: Friday, April 21st, 2006 04:10:28 PM

Editor:

In regards to a coal gasification plant proposed for our area: I just discovered, thanks to my local alert township supervisor, that there is and has been for quite some time, a Web site on the Internet concerning this plant. Some of the items on the Web site www.mncoalgasplant.com are as follows:

Section IV, Page 9: Mesaba One and Two would require 192 acres of someone else’s property, excluding construction and laydown areas.

Section IV, Page 12 shows Excelsior’s preferred natural gas route, completely across the middle of Trout Lake Township, and a power line from about the middle of Trout Lake Township north to Taconite.

Section IV, Page 14: Excelsior’s option agreement allows the company to purchase mineral rights on up to 500 acres of the property on which the power generation plant would be located.

Section IV, Pages 63 & 64 lists the residual chemicals and their amounts that will be discharged into the receiving bodies of water.

Section IV, Page 106: If the East Range site were used instead of the Taconite location, they would have used a zero discharge system for process and cooling water because of the stringent water quality criteria standards implemented in the Lake Superior Basin Watershed. The mercury content in the Cliffs Pitts is too high.

Section IV, Page 124: MESABA ONE is predicted, according to a study commissioned by Excelsior, to cause 1.5 fewer deaths due to downwind particulate exposure in Minnesota and 6.4 fewer deaths in the United States as a whole compared to the Alternative SCPC Plant. Project emissions are associated with approximately 3.0 fewer cases of PM 2.5 (particulate matter) associated with acute bronchitis and 2.4 fewer emergency room visits for asthma per year than the Alternative SCPC Plant. This information comes under the heading of “Health Benefits.”

Bob Norgord
Bovey

Trout Lake Township has invited an Excelsior Energy rep to make a presentation about infrastructure that is planned to go through the township, pipeline and transmission. Residents have learned about it and aren’t too happy and need more information. See ya there!

Thursday April 20, 2006
Trout Lake Town Hall on Co. Rd. 10
7 p.m. or earlier if they finish with township business

For more Mesaba information, go to www.mncoalgasplant.com

And the Mesaba project has made the news:

Pull the plug on Excelsior Energy

Herald-Review

Editor:

More reasons not to back the Excelsior Energy coal gasification plant: As restrictions on eminent domain are being considered in the State Legislature, the Mesaba project comes along using public tax dollars and eminent domain to obtain the land. This whole project will be tied up in the courts forever as lawsuit after environmental lawsuit are filed. As the state tries to clean up its air and water, here comes a proposed project which may emit airborne mercury to further taint our fish, and perhaps heavy metals in effluent water to eventually wind up in the Mississippi River where Minneapolis and other communities get their water supplies. Not to mention going back on an agreement with the Trout Lake Association to route excess Canisteo Pit water through Trout Lake.

Time to pull the plug on the Mesaba project before serious public money in taxes and court costs are wasted. There are better and less expensive ways to create good jobs.

Tim Zoerb
Eden Prairie

And in the Duluth newspaper:

Measure would help coal-to-gas plant

DEVELOPMENT:Two legislators from Grand Rapids are looking out after two major project in the region.
BY PETER PASSI
NEWS TRIBUNE STAFF WRITER

Minnesota state legislators from Grand Rapids are seeking more help for Excelsior Energy Inc.’s plans to build a power plant fueled by gasified coal.

Sen. Tom Saxhaug, DFL-Grand Rapids, and Rep. Loren Solberg, DFL-Grand Rapids, have introduced legislation that would relieve the company from paying personal property taxes on about $750 million worth of equipment it plans to install near Taconite. Tom Michelleti, Excelsior’s co-chief executive officer, expects his company to spend about$1.5 billion to put up the first of two units to be built on the site in phases.

The Grand Rapids legislative contingent also is seeking bonding money to help cover the cost of new infrastructure to support both Excelsior’s proposed power plant and Minnesota Steel’s proposed steel slab mill.

Itasca County has requested $56.6 million to help with the expense of extending sewer lines, natural gas pipes, water mains, roads and railroad spurs into the area.

Dave Christy, Itasca County’s highway engineer, said the power plant would require about $55 million in infrastructure alone, and the steel slab mill would take$59 million. By building a system to serve both large industrial projects jointly, however, the cost could be reduced to$92 million — a savings of$22 million, he said.

Itasca County’s request for state bonding assistance has received a lukewarm reception in the Legislature. The Senate has proposed providing $20 million for industrial infrastructure, and the House has proposed$9 million. Gov. Tim Pawlenty has called for $7 million in aid.

The county still has a bit of time to enlist additional help if legislative support for its infrastructure request comes in shy of its mark. Christy said the county could approach Iron Range Resources, the federal Economic Development Administration or the Minnesota Department of Employment and Economic Development for money.

Minnesota Steel plans to begin construction of its mill in 2007, and Excelsior aims to start groundwork in the first quarter of 2008.

Even though it appears unlikely Itasca County’s bonding request will be fully funded, Micheletti said any support is better than none.

“Every dollar is important when you’re undertaking a large project like this,” he said.

Regardless of what happens with bonding money, Solberg said he remains optimistic about relieving Excelsior of personal property tax obligations associated with the construction of the power plant at Taconite.

He said more than 20 other personal property tax exemptions have been granted for projects across the state. While taxes on Excelsior’s equipment at Taconite would be exempted if Solberg’s bill succeeds, the company still would pay property taxes on the real estate it owns.

Excelsior previously had obtained legislative relief from personal property tax to build on land formerly occupied by LTV Steel Mining Co. in Hoyt Lakes. But when other redevelopment plans for the area began to emerge, the company shifted its focus to a location north of Taconite. As the original legislation applied only to the previous site, Saxhaug and Solberg have proposed companion bills that would amend the old bill, tailoring it to the Taconite location and extending the timeline to allow for construction of the first 500-megawatt unit by no later than Jan. 1, 2010.

Even if the state Legislature approves personal property tax relief for Excelsior, the company will need to negotiate a host-community agreement with local government representatives before the exemption takes effect, Micheletti said. A host-community agreement sets forth a reduced payment to be made in lieu of personal property taxes to support the county, schools and any other local entities that rely on property taxes.

Rusty Eichorn, chairman of the Itasca County Board of Commissioners, said he and his colleagues remain supportive of the request for granting Excelsior personal property tax relief.

Micheletti anticipates Excelsior will employ about110 people in the first unit of its Taconite power plant and about 200 people when the second unit is completed. During construction, the project could create work for about 1,500 people.

Half Moon Lake — I know, it’s “East Range” but it’s one of my all time favorite photos

(Here’s the short report, will fill out sometime when I’m not breaking out in coughing fits)

It’s not too bad a day when PUC Commissioners use the words “Intervenor Compensation” without visibly gagging, and to have “consideration” of Intervenor Compensation actually written into an order… not that it will ever really be ordered. It was good to see some recognition of what it takes, the effort and resources to intervene in this, where all the “players” are well-funded corporations, profit and “non-profit” alike. Will post the Order when it’s official.

Saxhaug’s SF 2570 got through tax, and the amendment providing for local government approval and Host Fee Agreement remained intact.

County will not likely foot charge for aeriel photography bill for infrastructure work

And my LTE of the day:

Why give up tax revenue for Mesaba?

Editor:

Iâ??m an â??outsider,â? as Tom Micheletti says, â??Sheâ??s from Red Wing!â? But utility personal property tax is an issue from my own backyard. In 1997, I argued with Micheletti against cutting the rates paid by utilities because that tax was â??compensationâ? for life with a nuclear power plant. Tom, as NSPâ??s main lobbyist, succeeded in slashing the tax. Goodhue County, Red Wing and the school district lost over $10 million annually!

Utility personal property tax came up again last year, when I represented a client who lived near a proposed power plant near Waseca. Her legislators introduced a bill exempting that plant from millions in tax, and they did not inform the local governments. Those legislators gave away tax revenue, and worse, they left out any requirement that the power plant negotiate a Host Fee Agreement. We worked hard, scrambling to bring the county and township up to speed, and they passed resolutions requiring a Host Fee Agreement.

And yet here we go again — your legislators did the same thing to you. Sen. Saxhaug and Rep. Solberg, joined by Dill, Anderson and Moe, â??authoredâ? and introduced bills to exempt Excelsiorâ??s plant from millions of dollars annually utility personal property tax. They did this without consulting local governments and without giving them notice.
Wasnâ??t this project going to provide community benefits, not take them away? In addition, the RAMS lobbyist, Ron Dicklich, didnâ??t let Itasca County know, and theyâ??re paying him to protect local interests and keep them informed. And it gets worse — these bills were introduced at the same time that legislators and local governments were meeting regularly about the $55 million Excelsior bonding bill, so it seems that they can communicate when they want the county to ask for Excelsiorâ??s infrastructure funding, but they canâ??t say â??by the way, thereâ??s this exemption billâ?¦â?
Keep a watch on SF 2570 and HF 3020.

Meanwhile, the Public Utilities Commission is reviewing Excelsior’s petition to force Xcel to sign an agreement to purchase the capacity of the Mesaba plant. This Power Purchase Agreement will provide equity necessary for Mesaba to go forward. Iâ??ve requested that they send all documents to local libraries. Have they? Information is available at www.puc.state.mn.us and click on â??eDocketsâ? and plug in the Docket No. 05-1993. Thursday, the PUC will determine how this matter will proceed.

Please tell your legislators and county commissioners what you think about the impacts, costs and benefits of this project. Itâ??s our job as citizens to speak up. The county board has demonstrated its ability to step up and protect the county, and they deserve loud and hearty thanks.

Carol A. Overland
Representing local landowners near the â??westâ? site
Red Wing