HomeMy WebLinkAbout5.c. Resource Recovery Facility � : ` • � � P O, BOX 510
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March 3, 1989 ITEM 5. c
T0: Mayor Hoke
Councilmembers: Napper
Oxborough
Walsh
Wippermann
FROM: Stephan Jilk, Administra�or/Clerk
RE: Oxbaw Power Corporation
Cogeneration Project
Attached find two doeuments relating to the above referenced
projeet. These two documents are :
1 . A draft EIS (Environmental Tmpact Statement) . This
document , as presented to the Metropoli�an Council, was
drafted by the Minnesota Environmental Quality Review
• Board. The EQB is the designated "responsible
Governmental Unit" on this project. As you know
Councilmember Napper serves on the Site Evaluat3on
Committee for the EQB on the project .
2. The second document is a notice, from the EQB, of
several meetings regarding the siting selection of the
project and for purpases of hearing comments on the
draft EIS for the project .
Councilmember Napper and staff will present verbal comments
regardin� the notices, the meetings and the project at the
Tuesday council meeting.
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METROPOLITAN CQUNCIL �trears Park cenrre, 230 F.ctsi�fth Street, St. Paul, MN. 55101 612 291-6359
1TL�L., ! Y L.�
February 28, 1989 h��� � � ����
CLERK'� E�FFtCE
CITY OF R�SEMOUNT
To Whom It May Concern:
RE: Oxbow Power Corporation
Draft Environmental Impaet Statement
Power Plant Siting Program
Rosemount Gongeneration Projeet
Rosemount, Minnesota
Received 02/24/89
Metropolitan Couneil Referral File No. 14771-1
The Nyetropalitan Couneil has received the above Dra:Ft Environmental Ic�aat
St�tBYD@Mt.
The Council will be reviewing this in the nex� few weelts and wauld weloome any
oammente yau may wiah to make. Any aotaments should be �ent witMin one week for
input Qn the Councsil's response to the Draft Environmental Imp�et Stat�ment. A
separate opportunity to eomment direetly to the preparer of' the DraPt
Environmental Impaet Statement is also provided as a requirement of
Environmental Quality Board Rules.
Thank you.
Sineerely,
METROPOLITAN COUNCIL
,,
-- C�-�C�t!
John Rutford
Referral Coordinator
JR:eh
ec: Patrick Seu11y� Metropolitan Couneii Distriet 16
• � METR�POLtTAN COUl�1C11.
REFERRAL
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February 22, 1989 , �
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For Your Information:
Enclosed is a copy of the Draft Environmental Impact
Statement for the Rosemount Cogeneratian Project, MEQB
- Docket # OPB-P-1. A meeting to receive comments will be
held sometime after March i5, 1989. Written comments will
be received until the close of the oral portion of the
public hearing required by the Power Plant Siting Act.
Notice of the comment meeting and the hearing will be
forthcoming.
For additional infarmation please contact Bob Cupit (612)
296-2096.
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An Equai O�anortuniry Emp�ov�r
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DRA�'T ENVIRONMENTAL IMPACT STATEMEN�
ROSEMOUNT COGENERATION PROJECT
MINNESOTA ENVIRONMENTAL QUALITY BOARD
POWER PLANT SITING PROGRAM
February 1989
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'� � DRAFT ENVIRONMENTAL IMPACT STATEMENT ;� M�������-��`AN CQUNCIL
.�' � REFERfZAL
� FILE N0. '"
RESPONSIBLE GOVERNMENTAL UNIT: -
Minnesota Environmental Quality Hoard
CONTACT: Bob Cupit
300 Centennial Office Hldg.
658 Cedar Street
St. Paul, rIIJ 55155
Telephone - 296-2096 ,
PRQJECT TITLE:
Rosemount Coqeneration Project
Rosemount, Dakota County
Minnesota .
PROPOSER: Joint Venture (1) Oxbow Power Corporation
200 South Virginia Street
Suite 450
Reno, Nevada 89501
. Contact: Lori Orser
(702) 322-1300
(2) Biosyn Chemical Corporation
P.O. Hox 9950
Minneapolis, I�T 55440
Contact: Luther Towner�
(612) 3�4-5771
ABSTRA�,�: The Rosemount Cogeneration Project is proposed for
construction in the Pine Bend area of Dakota County. The facility
will use natural gas as a fuel to generate �lec�ricity as a p�imary
output and produce either steam tor sale or food qrade C�2 as a
byproduct. Three sitea have been proposed for the facility. The two
northernmost sites, the CNR alternate site and the preterred ait�
have similar environmental impacts, which are less than at th�
southern alternate site.
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�, .° ,.. l.0 SUI�SARY
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The Rosemount Cogeneration Project is being developed through a
joint venture formed by Biosyn Chemical Corporation and Oxbow Power
Corporation. The Project will use natural gas to fire a combustion
turbine to produce electricity for sale to Ncrthern 5tates Power
Company (NSP) and steam for sale o� for use in a carbon dioxida
(CO2) recovery and processing plant (CO2 plant) which will be
. constructed adjacent to the cogeneration facility. Approximately 50
megawatts (MW) of electricity will be sold to NSP. If the steam
sales option is chosen, the likely buyer is Continental Nitrogen and
Resources, Inc (CNR) . The CO2 plant, if built, will produce
approximately 50,000 tons/year of food-grade liquid Co2.
Commercial operation of the project is expected in late 1990.
oxbow Power Corporation (oxbow) , as the lead entity in the jaint
venture, applied to the Minnesota Environmental Quality Bo�rd (MEQH)
for a Certificate of Site Compatibility (�iting permit) . The MEQS's
� siting process requires the preparation o� a draft and final
Environmental Impact Statement (EIS) .
The initial application included Oxbow's Applicant's preferred
site and. an alternative site, and proposed only the CO2 plant an an
, auxillary component of tha cogeneration facility. After the sitinq
process and EIs preparation were initiated, the Applicant became
aware of the pos$ibility ot a ,steam salee aqreement with CNR.
Because a steam sales would require lesa capital inveatment than a
CO2 auxiliary plant, and beeause likaly Co2 buyers have not yet
been identified, the Applicant amended their apglicaticn to include
as a third possible site the existing CNR plant site. o�ow and CNR
indicated they are neqotiating both a ateam sal�s contract and an
agreement to build the facility within CNR's existinq plant site,
The Applicant is continuinq to consider their oriqinal Applieant's
preferred site as such in the amended application, allowinq that if '
negotiations with CNR are succesaful, they would likely changa their
preference before the siting process concluded. This EIS r�tains the
Applicant's initial site labelinq ot the Applicant's preferred site
_. to be consistent with the application. Th� site referred to as the
alternate site in the application is labeled the south�rn alternata
i-1
� site in this EIS, � the third site added in � application
" 'amendment is labeled the CNR alternate site.
The use of the Applicant's preferred site wiil require the
removal of a single family dwelling, which is a rental unit and
unoccupied as of January, 1989. It is owned by a willing seller, whQ
has optioned the property to Oxbow/Biosyn. While no actual dweiling
will be displaced at the southern alternate site, the project will be
located closer to several residences at the southern alternate site
which increases the potential tor impaets. The CNR alternate site
would have the least impact of the three sites on residences.
The impact on local communities and institutions will be similar
in magnitude for all three sites. They are all located in the same
community of Rosemount and wi11 have minimal impact on community �
services.
The poten�ial health impact associated with the pro�ect will be
the same for all sites. The project will not have an impact on
health since the preject will be emitting regulated pollutants at
levels below state and federal standards which are designed to
protect the public health and welfare. Emission rates for some
pollutants such as SOZ and ammonia are less than the most
restrictive regulationa.
The southern alternate site will result in the removal of tall
grass prairie which is a unique vegetation type. The prior farming
activities at the Applicant's preferred site have removed the native
vegetation and preclude any potential impacts on rare/unique
vegetation. The CNR alternate site is an existinq chemical plant and
supports very limited vegetation.
The potential for visual and audible impingements on public
areas will be less at the CNR alternate site than at the Appiicant's
preferred site or the southern alternate site. The locatior� ot the
CNR alternate site in a previously developed ir�dustrial area will
allow the pro�ect to blend in with the existing landscape. The
Appiicant's preferred site is within sight of the CNR alternate site
and has only slightly more impact potential. The southern alternate
site being located within an agricultural area will result in a
project which contrasts with the existing adjacent landscape and wili
be observable from a large area.
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he Applicant's �eferred site, while curre�y under
�ivation, is not considered to be a siqnificant resource due to
,��limited size and location Wl'tY11A an industriaily zoned area. The
. outhern alternate site, while not a siqnificant agricultural
r8source because of its erodible soils and �teep slopes, is located
within a significant agricultural area. The introduction oP
��industrial activities within this area has the potential to remov�
` ����valuable farmland from cultivation by encouraginq industrial growth
�, of the area. There wili be no removal of valuable €armland at the
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"="' CNR alternate site.
The volume and source of water used by the pro�ect will be
. similar at all sites. The project will use ground water for prolect
needs and then discharge the treated water to the Mississippi River,
The quality of the discharge will be monitored and regu�ated by
conditions imposed by the project's Nationai Pollution Discharge
Elimination System (NPDES) Permit.
The impact to geological resou=ces will be greater at the
southern alternate site. Potential extraction of sand and gravel �
will be eliminated if the facility is constructed over the exi�ting
deposits. The slope of the southern alternate site will requir�s more
earthwork and excavation which increases the potential impact tv the
geology of the site.
� Opportunities for significant conservation of energy,
cogeneration, and development of waste-to-energy systems are similar
for all sites. The project is a cogeneration facility which will
generate steam for sale or liquid Co2 in addition to electricity.
None of the sites contains a currently operatinq industrial
facility. However, the CNR alternate site is an existinq industrial
facility which will restart in the near future. The Applicant's
preferred site is located within a larger industrially zoned area.
The existing tranBportation and utility systems ars .better at
the CNR alternate site and the Applicant's preferred site than at the
southern alternat� site. This allows the project a� these two sites
to better utiliz� existing �acilities thereby reducing ita overall
impact on the environment.
The cost of eonstruction and operation at the CNR alternate site
and Applicant's preferred site is expected to be similar and less
than at the southern alternative site. The significant factors which
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� reduce the cost of t�project at these two sitc�re an existinq
. wastewater discharge pipeline and less excavation and earthwork. ,
The ro ect at the A licant's t
P � pp preferred or CNR alternat� site t
maximizes the o 4
pportunities for community benefits whil� minimizing
adverse community impacts. The Applicant's preferred site is zoned
for the project, which minimizes adverse impacts while providinq tax ;
revenue to Rosemount and increasinq its economic diversity. �
Overall, the CNR alternate sita would have 7.ess environmental
impact than the Applicant's preferred site if the staam sale� option ,
is chosen by the Applicant, and the Applicant's preferred site would
have less environmental impact than the southern siternate site if
the CO2 plant option is chosen.
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� • 2. 4 PROJECT DESCRIP:ION �
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This section describes the facilities which have been proposed
by the Applicant. The primary facility for whieh a Certificnte of
site Compatibiliy is required from the EQB is a 50-60 megawatt (MW)
power plant. Because the project is proposed to be a cogeneratoz,
-�-- excess thermal energy from the power plant will be used as a
byproduct, requiring auxillary gacilities which would be construct�d
in proximity to the electric power plant.
The Applicant has two options on the type of byproduct it may
pursue. The original intent was to produce food grade carbon
dioxide. After filing of the application which described the
auxillary facilities needed to produce CO2, the Applicant was
appreached by Continental Nitrogen and Resourcea Corporation with an
interest in purchasing steam from the App3icant, to be used in
producing a fertilizer product at its existing plant in Roaemount.
The sale of steam to CNR is an option which the Applicant will
continue tc discuss with CNR as the EQB'a sitinq proce��� conti�u+�s.
Both option� for production of a byproduct will be de�cribed in this
5eetion.
2. 1 PROJECT IACATION
The three sites which are be�,ng considered are in the
northeastern portion of the City of RoBemount, near the Kach
Refinery/Pine Bend area. They are shown in Figure 2. 1-1. The
Applicant's greferred and southexn alternate sites were deseri.}aed in
the original agplication, The second alterndte �ite, r�ferXed �o as
the "CNR" alternate, was added in an amendment to the agplicatfon.
The design of the primary facility, the electric generator, will be
the same at each oP the three sites proposed. Because of the
uncertainty ot aueceBaful negotiations for sale of steam to CNR, the
Applicant haB proposed variations of auxillary facility design for
the three sites.
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SOUTNEAN ROSEYOtlM
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• 1 A CO2 auxilla�lant would be constructe�►nly if the
� �� ►Applicant's preferred or the southern alternate site is designated by
� the ERB. A steam-for-sale auxillary option would be construct�d or�ly
if the Applicant's preferred or CNR alternate sita is designated.
Thus either option is available for the Applicant's preferred site,
� the southern alternate site would involve only a CO2 suxillary
plant, and the CNR alternate site would involve only a steam-for-sals
byproduct.
This situation exists becaus� a COZ plant could be anyw�ere
except on the CNR alternate site, and the southern alternate is too
far away from the potentiai steam buyer to be feasible. The
centrally located Applicant's preferred site is close enouqh to pipe
the steam to the potential buyer.
2 .2 DESCRIPTION OF THE COGENERATION FACILITY
� 2.2.1 Description of the Electric Generator
�
The electric generator will consist ot a single combustfot�
turbine generator (CT) , a supglementary-fired heat recevery �team
generator (HRSG) , and a steam turbine generator �ST) . The flow
diagram showing the ma�or equipment and flow paths far the facility
is shown on Figure 2,2-1, A site arrangemenfi for the Applieant's
preferred site is shown on Fiqure 2.2-3. It includes the CflZ
option.
Th� CT will burn natural qas or propane (backup fuel� to driv+� a
q�nerator to produce electricity. The hat exhaust gases from the CT
will flow fnto a FiRSG whieh producQs hiqh-pre�sure and
infiermediate-prea�ure �steam, Thie ateam wil,�. be used by the ST �o
drive a generator to produce electricity. A portior► of the steam
will be extracted from the ST and used by the CO� plant for procesa
needs or tor steam sales to CNR. The remain�ng steam wili be
exhausted from the ST to a condenser. The circulatinq we�er passing
through the condenser will absorb the waste h�at of the steam. A
cooling tower wili be used to diasipate the heat absorbed by the
circulating water.
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� �; _ 7. 0 ALTERNATIVES
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The alternatives which have potentially significant
env,ironmental impacts that were evaluated during conceptual design of
the pro�ect are discussed below.
7.1 ALTERNATIVE SITES
The two alternative sites selected by the applicant are
discussed in Sections 4.2/5.2 and 4.3j5.3.
No additional sites were proposed by the MEQB's Siting Evaivation
Committee, a group of citizens appointed to review the applicant's
proposals and recommend other sites if they so chose.
Staff of the MEQB's Power Plant sitinq Program identified no
compelling reasons to add additional sites to the site selection
process.
No proposals of other sites were received by the MEQB during the
70 day period after acceptance of the application, which is provided
by statute for additional site proposals by the general public and
state agencies.
7.2 ALTERNATIVE FUEIS AND METHODS OF GENERATION
Alternate Euels were evaluated far the projaet. Biosyn
originally propoeed the uae ot procesaad orgmn.ic mdterial as n tu*l.
The use oE this Puel was determined not to be economicaily fsaeible
at this time. Fuel oil which is commonly a backup tuel tor natural
gas fired combuation turbinea was not selected due tv environmental
impacts, sinee the project ar�a is a S02 nonattainment nre�t. Coal
was also not selected as a fuel by the Applicant due to qreater
environmental impacts as compared to natural gas.
The requirement for process steam limited the alternative
methods of generation which could be us�d by the project. Since coal
was excluded as a fuel source, the Apglicant determined tha� th� only
environmentally and economically feasible method of generation was
combustion turbines.
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? . 3 THE NO-HUILD AL'�NATIVE � '
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The alternative of not constructing the cogeneration plant has
only direct impacts on the applicant in the lose of potential
revenues which may be realized. Further, a decision now to not build
would involve direct loss of investments made to date ir� planning and
preliminary engineering.
Not building the cogeneration may have indirect effects in that
by nat selling the 50 megawatt output implies that NSP would' be
seeking other means of providing that 5Q megawatt increment as�
needed. It becomes very difficult to identify speaific impacts to
NSP, its customers, or to the environment if the applicant did not or
could nat build the plant. NSP, or any other potential buyer, would
obtain the capacity in a manner which may have much fewer impacts,
such as conservation, or much greater impacts, such as a coal�fired
plant.
Not building the auxiliary C0� plant would have minimal effect
on the availability of food grade carbon dioxid�a, but the small level
of waste generated by the facility would not have to enter the
environment.
If the option of steam sales to CNR was nct seleeted or
implemented, CNR has indicated that they would have to generate their
own proceas steam, posaibly uaing oil as a fuel. Though they have
existing permits to do Bo, the use of oil to fire boilers wQuld
produce dirtier emissiona than natural gas proposed for use by the
applicant.
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� Page 1 of 2
NT�L a���
NOTICE OF PUBLIC HEARING,
PUBLIC INFORMATION MEETING AND
DRAFT ENVIRONMENTAL IMPACT STATEMENT COMMENT MEETTNG
BEFORE THE MINNESOTA ENVIRONMENTAL QUALITY BOARD
ON THE PROPOSED ROSEMOUNT COGENERATION PROJECT
The Minnesota Environmental Quality Board {ME�B) will hold an
information meeting, a draft environmental impact statement comment
meeting, and a public hearing regarding the application by Q�tbow
Power Corporation and Biosyn Chemieal Corporation for a Certificate
of Site Compatibility for a 50-60 megawatt electric generating
plant. (Minnesota Statutes 116C.51 to 116C.69 and Minnesota Rule
� Chapter 4400)
The pro�ect will produce electricity for sale to Northern States
Power Company. In addition, it will produce steam for use in either
a new liquid carbon dioxide plant to be constructed ad�acent to the
generating plant or for sale to an �xisting industry. The three
sites being considered are located in Rosemount, MN, east and south
of Highways 52 and 55.
Pubiic Information Meeting - 7s00 PM, Wednesday, March 22, -1989
Rosemaunt City Council Chambers, 2875 i45th St. West, Rosemount, NIN
The information meeting is to explain the site designation
process, to present major issues and alternatives under
consideration by the MEQB and to respond to questions by the
publie.
Draft EIS Comment Meetinq - 8: 00 PM, Wednesday, March 22, 1989
Rosemount City Council Chambers, 2875 145th St. West, Rosemount, MN
The draft EIS comment meeting is to receive oral comm�nts
regarding the draft EIS prepared by the MEQH staff. Written
comments will be received at the MEQB office thrflugh Mareh 29,
1989.
Public Hearing - 7 :00 PM, Wednesday, March 29, 1989
Rosemount City Council Chambers, 28?5 345th St. West, Rosemount, MN
The public hearing is to collect and verify data and establi�h a
complete and accurate reeord upon which the MEQB will select a
site and issue a Certificate of Site Compatibility. Th�a Board�s
authority to hold the hearing is found in Minn. Stat. 116C.58 and
to take the action is found in Minn. Stat. 116C.53 and Minn.
Stat. 116C.57.
The hearing will be presided over by Allan W. Kline,
Administrative Law Judge (ALT) of the Office of Administrative
Hearings, 5th Floor, Flour Exchange Bldg. , Minneapolis, MN
55415. (612) 341-7609.
An Equa/Caraoc�rttmity Employer �
. � � ,
� �age 2 of 2
The hearing may be recessed and reset by the hearing examiner
pursuant to Minn. Rule 1405. 1400 to 1405.2300. The conduct and
procedures of the hearing will be in accordanee with Minn. Rule
Chapter 1405 and contested case procedures of Minn, Sfiat. ChaptQr
14 .
The issues to be �onsiaerea at the publ.ic hearing ineiude wh�th�r
the proposed site� meet the crit�ria� establ�.shed undex Minn. Rule
44(30. 3304 and Minn. Stat. 116G.57(1988) , and comply with Minn.
Stat. 116D. 04, subd. 6 (1988) . Th� applicant, as prc�posear of the
sites under consideration, wil�. prefile its direct te�timony by
March 15, 1989. (Minn. Rule 1405. 1900)
All persons may present testimon�r, question witnesses, and
present exhibits. Al1 persons may be represented by legal
counsel but such representation is nat raquired. Al1 persons
have the right ta petition to intervene as a party through the
procedures in Minn. Rule 1405.0900. Parties are guaranteed the
right to present argument based solely on the hearing r�card to
the MEQB after it receives the AL7�s report.
As of February 28, 1989, the parties to this proceeding are:
l. Minnesota Environmental Quality Board Staff, John P. Hynes,
300 Centennial Office Bldg. , 658 Cedar St. , St. Paul, MN 55155,
2 . MEQB Site Evaluation Committee, Vernon Napper, Chairman,' 3405
145th St. , Rosemount, MN 55Q68
3 . Oxbow Power Corporation and Biosyn Chemical Corporation, I,cYri
Orser, 200 South Virginia St. , Suite 450, Reno, Nevada 89541
The Application and the Draft EIS are available for review at the
Dakota County Library system, Hastings Cammunity Library, Inver Gxove
Community College Library, Rosemount City Ha11, Dakota County O€�ices
in Hastings, and the MEQB affice in St. Paul. Copies of the
Applicant's prefiled testimony will be available for review after
March 15 at the MEQB office and at Rosemaunt City Hall.
The MEQB has designated Bob Cupit as Public Advisor (296-2096) to
assist and advise citizens on how to effectively participate in the
siting process.
Eldon Kaul, Assistant Attorney General may also be contacted on
matters of MEQB procedures at 520 Lafayette Road, St. Paul, MN 55i55
or by ealling 296-7341.
For more information about this project or copies af the procedural
rules, please contact Bob Cupit, Public Advisor, 296-2096 or John
Hynes, Project Manager, 296-2871, at the MEQB offiee.
MINNESOTA ENVIRONMENTAL QUALITY BOARD
300 CENTENNTAL OFFICE BUILDING
658 GEDAR STREET
SAINT PAUL, MINNESOTA 55155
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INFORMATI�N RELEASE
For Immediate Release: F�bruary 6, 1989
From: John P. Hynes 296-2871
The Environmental Quality Board�s Site Evaluation Committe� w9,11 mee�
on Thursday, March 9, 1989 at 7:00 PM in the Rosemount Fire Hall
meeting roam, 14425 Brazil Ave. West.
The Committee will be recommending a site for the Rosemount
Cogeneration Project proposed by Oxbow Power Corporation and Biosyn
Chemical Corporation. The Committee will also be drafting their
report to the Environmental Quality Board. The Report will be
presented at the Public Hearing scheduled for 7t00 PM, March 29 at
the Rosemount City Council Chambers.
The pro�ect includes a natural gas fueled 50-60 megawatt electric
generating plant and either a 120 ton per day liquid carbon dioxide
production plant or steam sales to Continental Nitrogen. Three sites
are currently being studied. The first is on th�e south side of
r
Highway 55 about one mile east of Highway 52, the second is on ths
south side of new County 42 about one and a half miles east of
Highway 52, and the third is on the praperty of Continental Nitragen
& Resources Corporat3,on at the southeast side of the �unction of
Highways 55 and 52.
****
An Eqtfal O�partur�ty Em�Oy�r