Apr 28 - McClatchy-Tribune Regional News - Lauren Donovan The Bismarck Tribune, N.D.



For the first time in regulatory history, the Public Service Commission staff is reviewing two permit applications at the same time for new coal mines in North Dakota, one in Oliver County near Hannover and one in Stark County near South Heart.

Furthest along is a permit for the Otter Creek Mining Co., to remove lignite on 5,500 acres between Center and Hannover possibly starting later this year.

The process has advanced to the public review and comment period, which runs through June 7.

Otter Creek Mining Co. is a subsidiary of North American Coal Co., which operates the two biggest mines in North Dakota, the Freedom Mine in Mercer County with a 16-million-ton operation, and the Falkirk Mine in McLean County with a 7-million-ton operation.

 By comparison, the Otter Creek Mine would be relatively small, at a projected 2-million-ton output. The mine would be located in a six-mile area between Highway 31 (goes to Hannover) and Highway 48 (goes to Center) north of the communities.

The application doesn't list specific customers for Otter Creek.

Though the application is complete and the company has now filed for a mine permit, the project is still undergoing a technical review by the PSC's mining staff. Reclamation chief Jim Deutsch said depending on the scope of issues that surface in the technical review, it may be too late for the company to set up a shop and office building, equipment and build retaining ponds for active mining in this calendar year, though its application indicates it intends to.

At the same, the staff also is reviewing an application from Great Northern Power Development for a 4,600-acre coal mine southwest of South Heart. That application was filed March 29.

Great Northern is now in its third rejiggering of plans to use the coal as an energy fuel stock. It's now planning to build a coal-to-hydrogen plant rated at 175 megawatts, after discarding plans for a coal-to-synthetic natural gas plant and a lignite-fired power plant.

Deutsch said the mine staff should wind up the process of determining if the mine application is complete by the end of the week. A public comment period will open once the company returns a completed application to the PSC and Great Northern proceeds to file for a mining permit.

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