ELK HILL REGIONAL INDUSTRIAL PARK CLAY COUNTY ENERGY PROJECT SITE SUITABILITY 2009 Department of Energy Development and Independence Energy and Environment Cabinet Commonwealth of Kentucky FOREWORD The Manchester-Clay County Chamber of Commerce and County Government submitted this site for evaluation for potential development as an alternative energy facility. The site was evaluated against preliminary criteria which identifies characteristics beneficial for development of a wind, solar, biomass, nuclear, or coal-to liquid (CTL) / coal-to-gas (CTG) facility. This site benefits from its available acreage, location within the Eastern Kentucky Coal Fields, and location within an industrial park created from a mountain top removal mine site. Geological assets for the site also rank well for potential carbon sequestration. Cover photo (2006) - Proposed development site The Manchester-Clay County Chamber of Commerce and County Government offers available acreage at the Elk Hill Regional Park (also referred to as the Clay County Industrial Park) for evaluation as a potential energy facility. The development of an energy facility, whether for CTL/CTG, wind, nuclear, solar or biomass, must consider basic common factors which include assets like access to transportation, general topography, proximity to public access areas, and available utilities. GENERAL SITE CONSIDERATIONS Ownership The site property is owned in fee by the Elk Hill Regional Industrial Authority. Aerial photograph of the site Elk Hill Regional Industrial Park - Clay County Page 1 Size The available site area is 1,000 acres. The site is located five miles east of Manchester in Clay County and sits south of the Hal Roger Parkway, north of US 421, and east of KY 149. The Elk Hill Regional Industrial Park was a former mountain top removal mine site, and has been redeveloped for industrial use. A former veneer plant is currently an out-parcel of the available acreage, but could be obtained if needed. The site is removed from residential areas by its elevation and location and there are no nearby residential areas. Adjoining properties include mine sites and undeveloped land. Adjacent out-parcel Topography The site elevation depicted on a United States Geological Survey (USGS) topographic map is between 1,400 and 1,800’ above mean sea level (AMSL); however, due to the recent mining, the current elevations are relatively flat with large areas prepared for development. Site development should take into consideration those areas which are Elk Hill Regional Industrial Park - Clay County Page 2 filled in determining appropriate foundation design. The site is configured in two large flat areas with a ravine between the areas. Currently the road access between the two areas is by gravel road. Portions of development site Floodplain and Wetlands The site was evaluated for impact to floodplains and wetlands. Based on the US Fish and Wildlife’s digital wetlands data, no wetland areas have been identified at the site. The site is not identified as within floodplain areas on the Flood Insurance mapping for the area. Site observations confirm the site is on a ridge top with no depressions or low areas noted. Site Hazards Environmental databases were reviewed to determine if there was regulatory evidence of an environmental impact at the site or a nearby property. Based upon a review of a 2006 FirstSearch Technology Corporation Environmental Database Report, the site was not listed in any of the environmental databases searched, nor were there any listed Elk Hill Regional Industrial Park - Clay County Page 3 facilities within the search radius. Site observations did not identify any obvious evidence of environmental impact. A former veneer plant was observed within the industrial park, but detailed information regarding this facility was not obtained. Oil and Gas Wells Data maintained by the Kentucky Geologic Survey (KGS) and site observations indicate that there are two or more gas wells and one or more 'incomplete' and/or 'other' wells located on the site. The locations of any wells should be determined to evaluate whether wells or gathering lines must be closed or relocated for the development of an energy facility. Sensitive Areas The proximity of non-attainment areas and Class I Visibility Areas to the site was examined for potential impacts to air quality or limitations on a required air permit for a CTL/CTG or biomass facility. This site benefits by being located more than fifty miles from the nearest air pollution non-attainment area, Ashland, KY – Huntington, WV. The site also benefits from being greater than 130 miles east of Mammoth Cave, the closest Class I Visibility Area. State water data was searched to determine if designated impaired streams in the area might affect discharge requirements for an energy facility. The site location is approximately 15 miles south of the confluence of Red Bird River and the South Fork of the Kentucky River. The local watershed is the Red Bird River Watershed and the HUC 11 is 05100203010. Stream Use Designations for the South Fork of the Kentucky River (mile point 30) are warm water aquatic habitat, primary contact recreation, secondary contact recreation, and domestic water supply. Site drainage flows north into Hayes Fork and south into Lynn Log Fork. Hayes Fork flows into Hector Creek that flows to the Red Bird River. Lynn Log Fork flows into Elk Creek, which flows into the Red Bird River. None of the creeks for immediate discharge are identified as impaired. Elk Hill Regional Industrial Park - Clay County Page 4 Siting considerations for any energy facility include the presence of Threatened and Endangered (T&E) species in the area, the presence of significant cultural or historical resources in and around the project area, and proximity to public access areas and airports. Federal and state listings of T&E species were reviewed to determine if there is any documented evidence that a sensitive species has occurred on the USGS Ogle, Kentucky topographic quadrangle. No federally listed species are listed as present on the Ogle quadrangle. State listed species include the northern Breek Lamprey. Based on the site’s history as a mine site, it is unlikely that critical habitat occurs on the property; however, a thorough survey should be conducted prior to development. Site development area Based on reference to National Register Properties, National Register Districts, and Inventoried (potentially eligible) Sites, no previously recorded eligible or potentially eligible properties were identified at or within 100 meters of the project area. Additionally, the disturbance associated with mountain top removal mining methods indicates that it is unlikely that undisturbed cultural or archaeological areas remain. Elk Hill Regional Industrial Park - Clay County Page 5 Distance from public access areas and airports is critical for successful CTL/CTG or alternative energy sites to minimize environmental impact, hazards to air traffic, and to mitigate potential risks and costs associated with development. The site is located within the Daniel Boone National Forest. The Beech Creek Wildlife Management Area is located 2-3 mile to the north of the site and the Redbird Wildlife Management Area is located about 7 miles to the east of the site. No commercial airfields are located within 10 miles of the site. However, Sky Airport is mapped approximately 3 miles west of the site. Site contacts have reported that this is a grass landing strip that is not in service. The use of this field should be confirmed to ensure that hazards to small aviation from the processes and equipment at an alternative energy facility are addressed. Geological Assets Siting considerations for a biomass or CTG/CTL process must take into account available geological assets for potential sequestration. Analysis by the KGS ranked the geologic assets of the proposed site as good. Both deep and shallow oil fields appear in the vicinity, and target formations with the potential for sequestration are also located near the site. The graphic on the following page was prepared by the KGS to illustrate some of the geologic assets at the site, which is identified as L on the map. The proximity of faults to a site may impact the development of a nuclear, biomass, or CTL/CTG facility. According to information obtained from KGS (Seismic Risk Map of Kentucky), the site has low seismic risk. There are no reported faults within ten miles of the proposed site. The closest identified faults are the White Mountain Fault System, located 14 miles southwest of the site, and the Pine Mountain Fault, located 21 miles southeast of the site (KGS Petroleum Geology Map). Elk Hill Regional Industrial Park - Clay County Page 6 Utilities The site benefits because of its existing infrastructure. Broadband access to the internet by fiber optic cable was taken into consideration during the initial design and development of the industrial park. Additionally, potable water is available from the Elk Hill Regional Industrial Park - Clay County Page 7 Manchester system, as is sewage treatment. Natural gas is available from Wiser Gas by a 4 inch line, roads are adequate and electricity is provided by Jackson Energy by a 69 kV line. Site utilities are placed underground. Transportation Currently, site access is by US 421, a 2-lane paved road. An interchange with the Hal Rogers Parkway has been funded and road and right-of-way plans were due to Department of Highways Central Office in April and May 2007. Based upon information obtained from the Kentucky Transportation Cabinet in March 2009, construction has not been completed. The addition of the interchange with the Parkway will dramatically improve road access and make the site accessible from both sites of the industrial park. Interior roads within the site are asphalt in the section closest to US 421 and gravel in the section closest to the Parkway.