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    Morgantown Coal Barge Unloading Facility

    Environmental Review Document

    Application for Approval to Modify a Generating Station:

    Mirant Mid Atlantic is seeking approval from the Maryland Public Service

    Commission (PSC) to modify the existing Morgantown Generating Station by

    adding a new coal barge unloading facility under the requirements of a non-

    utility generator in Subtitle 79 of the Title 20 Code of the Maryland Regulations

    (COMAR). The approval in this case would be based on recommendations from

    interested local, state and federal agencies to ensure compliance with federally

    delegated, state regional and local environmental laws and regulations. This

    Environmental Review Document submitted with the modification application is

    filed with the PSG, pursuant to the PSG Regulations found in COMAR 20.79.01

    through 20.79.03. The application and environmental review document includes

    a description of the site and existing power plant installations, all proposed

    changes or alterations of the site and plant, the new or altered associated

    facilities, the environmental and other impacts of the project, and the

    environmental and other benefits to be realized from the project.

    Facility Description:

    The Morgantown Generation Station is 525 acre site on the Potomac River, just

    south of Route 301 at the Potomac River Nice bridge near the town of Newburg,

    Maryland. The facility consists two base loaded 620 MW coal and residual oil

    fired boilers, six peaking #2 oil fired combustion turbines (2x20 MW Frame 5 and

    4x65 MW Frame 7), two auxiliary boilers, associated fuel handling and storage

    facilities and electric transmission facilities. Coal is delivered to the Morgantown

    Station by CSXT unit train. The coal is unloaded using an enclosed rotary railcar

    dumper and is either transferred by conveyor directly to the station bunkers or

    placed into storage using a stacker reclaimer. Residual oil is delivered to the

    Station by pipeline and No.2 oil is delivered barge.

    Constructing the coal barge unloading facility at Morgantown will expand and

    diversify the coal supply base for both the Chalk Point and Morgantown Stations.

    These Stations were designed in the 1960-1970s to burn Northern Appalachian

    coal (Pennsylvania, Western Maryland, and Northern West Virginia). The

    Northern Appalachian coal region production has undergone significant changes

    during the last 3-4 decades characterized by mine closures, reduced production

    and the consolidated of producers. These changes have resulted in fewer mines

    producing the quality of coal to meet both Morgantown and Chalk Point's coal

    quality requirements. Additionally, Morgantown and Chalk Point are captive to a

    single delivering railroad, CSX Transportation.

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    The coal barge unloader will allow Mirant to diversify its coal supply base by

    accessing the Central Appalachian Region (Central and Southern West Virginia,

    Southern Virginia and Kentucky) and offshore coal supply from Columbia and

    Venezuela. Central Appalachian coal will be transported by rail to the Tidewater

    Piers in Virginia by either CSX Transportation or Norfolk Southern, loaded into

    barges and shipped to Morgantown. Offshore coal will be off loaded from ocean

    going vessels at a deepwater port (Tidewater Virginia or Baltimore) and then

    transferred to barges for shipment to Morgantown. Both of these scenarios will

    significantly expand Morgantown and Chalk Point's coal supply base and create

    a transportation alternative resulting in optionality for both facilities.

    The Morgantown Generating Station new coal barge unloading facility will consist

    of a dock, unloader, a transfer and distribution system and a rail loading facility.

    The coal barge unloading facility is sized to unload 5.0 million tons of coal per

    year, the annual consumption rate of both Morgantown and Chalk Point. In

    addition, Mirant will maintain the capability of the existing Morgantown railcar

    unloading system for back up capability. An overall site plan of the barge

    unloading facility is shown on drawing SP-1. The barge unloader's overall flow

    schematic is shown in drawing FS-1.

    The coal barge unloader's transfer and distribution system will be integrated into

    Morgantown's existing coal handling system as much as possible. The coal

    transfer system is designed to provide the capability to transfer coal from barges

    directly to the plant, to on-site storage or to railcars for transport to Chalk Point.

    The railcar loading capability allows the barge unloader to transfer coal directly to

    railcars for transport to Chalk Point or reclaim coal from on-site storage for

    transport to Chalk Point.

    The barge unloader's 600-foot long dock will extend approximately 11OO-feet

    channelward into the Potomac River parallel to Morgantown's existing oil barge

    channel. No dredging will be required to deepen or expand the existing Potomac

    River or Morgantown channels. The dock will be able to accommodate two

    15,000 DWT hopper barges. The 600-foot long dock includes a 50 X 42 foot

    main platform constructed on steel pipe piles, a concrete deck, a fender system

    and four 48 diameter steel pipe monopile dolphins. The main dock platform

    supports the unloader, acts as a fender structure and supports the receiving

    conveyor gallery that transfers the coal to the transfer tower on shore. A 1,200

    TPH pedestal-mounted vertical-screw mechanical unloader is installed on the

    dock. During the unloading process the barge will shift along the fender line

    using a continuous cable haul system. Barge unloading will be conducted as a

    drop and swap operation. A tug will bring a loaded barge to the dock and take

    the empty barge back to its supply point. Approximately 265 to 350 barges

    deliveries per year will be needed to meet the two Station's coal supply.

    The dock unloader will feed an approximate 860 foot long 1200 TPH enclosed

    conveyor BC-1 which conveys the coal to the on shore transfer tower TT -1. An

    2

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    approximate 1850-foot enclosed and covered conveyor BC-2 (350-foot enclosed

    and 1500-foot covered) will transfer the coal from transfer tower TT -1 to transfer

    tower TT -2. An approximate 760-foot covered conveyor BC-3 will then transfer

    the coal to the existing coal yard transfer tower at the breaker house where the

    process will be integrated into the existing Morgantown coal handling system. At

    that point coal can be transferred directly into the plant, placed in onsite storage

    using Morgantown's existing stacker-reclaimer or transferred to railcars for

    shipment to Chalk Point. The general arrangements of conveyors BC-1, BC-2

    and BC-3 are shown in drawings GA-1 through 3.

    There are two rail loading options being considered. Option 1 is directly

    connected to the transfer station at the breaker house and allows for direct

    transfer from barge to railcar. Option 2 is a satellite operation that does not allow

    for direct barge to railcar transfer. Both railcar loading systems require two 1000

    TPH approximately 600-foot (BC-4) and approximately 400-foot (BC-5) covered

    conveyors that transfer coal to an elevated railcar loader.

    Mirant is projecting to start construction in mid-2006 and commission the barge

    unloader in the fourth quarter of 2007. A conceptual schedule for the permitting

    and construction of the project is presented in Attachment A.

    Air Emission Sources:

    The barge unloader and its associated conveyor system and railcar loader will be

    a source of fugitive particulate matter (PM) and particulate matter with a diameter

    less then 10 um (PM-10) emissions. Fugitive PM and PM-10 emissions will

    occur at several points of the barge's coal unloading, transfer and railcar loading

    operations. The barge unloader will not be a source of any other pollutants.

    The barge unloader has 7 activities that will be a source of fugitive PM and PM-

    10 emissions. They are the conveyor's 4 transfer towers, the dock unloader, the

    railcar transfer, and the railcar loader. These 7 emission points are projected to

    emit a total of 3.33 tons/year of PM and 1.15 tons/year of PM-1O. These

    emissions were determined using EPA AP-42 emission factors and a maximum

    coal throughput of 5.0 million ton/year. The emissions by activity and back-up

    emission calculations are presented in Attachment B.

    The actual emission increases from the proposed project will be less than what is

    reported above. With the barge unloader in operation, Morgantown's existing

    railcar unloading operation and its associated emissions will be reduced or

    eliminated all together. Because of Mirant's desire to maintain rail as a coal

    delivery option, the Company will not propose netting emissions from the

    reduced or discontinued rail operations.

    To determine if the emission increases associated with barge unloader are

    considered a significant modification to an existing major source and must under

    3

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    go Prevention of Significant Deterioration (PSD) [40 CFR 52.21 & COMAR

    26.11.06.04] review, the emission increases are compared to PSD Significant

    emission thresholds. Table 1 shows the barge unloaders emission increases

    are well below the PSD emission thresholds 25 tons/yr for PM and 15 tons/yr for

    PM-10. The barge unloader is considered a minor modification and will not have

    to undergo PSD review.

    Table 1: Emission Increase Summary

    Additional minor sources have also been permitted at Morgantown in the recent

    years. They include the new auxiliary boiler and the Snyfuel Process. These two

    sources are permitted to emit a total of 5.05 tons/yr of PM and 4.71 tons/year of

    PM-10. The permitted emissions from these sources are presented in Table 2.

    These sources were minor sources or minor source modifications and were

    permitted as such.

    Table 2 : Previous Permitted Emission Increase

    Source

    PM (tn/yr)

    I

    PM 10 (tn/yr)

    Aux. I

    Boiler

    I

    snyfuel

    lrocess

    4.410 4.410

    0.640

    0.300

    ITotal

    5.050 4.710

    Applicable Air Emission Standards:

    Because the barge unloader is a minor modification under the PSD rules there

    are no Federal permitting or PSD related emission control requirements. Further

    there are no applicable Federal new source performance standards (NSPS) or

    hazardous air pollutants (HAPs) standards for this facility.

    The barge unloader will be subject to the following Maryland Department of The

    Environments Air Quality Regulations.

    Visible Emission Limit [COMAR 26.11.06.02C (1)] - Requires opacity to

    be less than 20 percent.

    .

    d

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    Visible Emission Limit [COMAR 26.11 .O6.02C (3)] - Requires no visible

    emission across property line from material handling actives.

    .

    Particulate Matter from Material Handling and Construction [COMAR

    26.11.06.030 (1 -(6)] - Requires reasonable precautions to prevent

    particulate matter from becoming airborne from material handling

    actives.

    .

    .

    Toxic Air Pollutants [COMAR 26.11.15.04 & .07] - Requires new

    sources to quantify toxic emissions and demonstrate compliance with

    toxic air pollutants screening levels.

    The Morgantown barge unloader is to incorporate the best engineering design

    and operational practices to minimize fugitive dust at all the unloading, loading,

    and conveyor transfer stations. The barge unloader will incorporate in its design

    the following fugitive dust suppression technology: (a) enclosed and covered

    conveyors, (b) enclosed transfer stations, (c) telescoping loader, and (e) a

    partially enclosed railcar loader. The control efficiencies for these designs are

    found in the following table.

    Table 3: Design Control Efficiencies

    Design

    Control Efficiency

    Enclosed Transfer Stations

    -

    90%

    75%

    75%

    Telescooina Loader

    Partially Enclosed Railcar Loadout /Loader

    The MDE Permit to Construction Form (Form 5) for the Barge Unloader is

    presented in Attachment C.

    The barge unloader's fugitives hazardous air pollutants emission rates were

    calculated and were compared to their appropriate toxic screening level emission

    rates. The hazardous air pollutant emissions rates are all well below the toxic

    screening levels. The MDE Toxic Emission Forms (Form 5A & 58) and back up

    calculations are presented in Attachment D.

    Water and Terrestrial Related Impacts:

    Station Location

    The Morgantown Station is located in Charles County Maryland on the northeast

    bank of the Potomac River. The Station is 41.5 nautical miles upstream from the

    confluence of the Potomac River with the Chesapeake Bay and 53.5 nautical

    miles downstream from Washington, D.C. Several small marinas are located

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    directly above and below the Station. The U.S. Naval Test Center at Dahlgren,

    VA lies directly across the river from Morgantown.

    Geomorphology and Flows and Obstructions

    In the vicinity of the plant, the Potomac River is approximately 1O,OOO-ftwide. A

    navigation channel, located closer to the Maryland bank, is maintained by the

    U.S. Army Corps of Engineers. Water depths vary from about 82-ft at mid-

    channel to 10-ft at the channel lines. The mean annual freshwater discharge is

    approximately 13,400 cfs. The spring tidal flow is approximately 220,000 cfs

    downstream during the ebb stage and upstream during the flood stage.

    At the Station, a dredged channel, 200 to 260 feet wide and perpendicular to the

    intake structure, is maintained out to a distance of approximately 1200 feet. The

    channel was originally dredged to 50-ft. Siltation over the years has reduced the

    depth at centerline to about 40-ft.

    The plant property extends for approximately 1/4-mi long the main stem of the

    Potomac River. Fifty percent of this length is hardened with riprap or concrete

    structures associate with the facility's intake and outfall. Dolphins are located off

    shore where the current barge docking area is, along the intake channel. \

    Sheet ice, in general, does not form in the Potomac River near the Station. .

    However, sheet ice which has formed in the freshwater portion of the river

    upstream of the site near Washington, D.C. does accumulate along the shoreline

    at Morgantown.

    Siltation is a problem in the Potomac River. In the vicinity of the Morgantown

    Station, extensive shoaling has occurred. The siltation can be attributed to a

    decrease in river velocity as the estuary widens, allowing suspended particles to

    settle.

    Vegetated Habitat

    A littoral marsh area is located just south of the plant. The emergent species

    found there include: Spartina a Itern iflora. S. cynosuroides, S. patens, Atriplex

    patula, Eleocharis parvula, Typha angustifolia, Lilaeopsis chinensis, Iva

    frutescens, Scirpus american us, S. pungens, S. robustus, Acnida cannabina,

    Pluchea purpurescens, Kosteletzkya virginica and Rumexverticillatus.

    A Submerged Aquatic Vegetation (SAV) study was performed in the Spring (May

    25) and Summer (September 1) of 2004. A kayak was used to paddle transects

    of the shoreline from the discharge canal to the mouth of Pasquahanza Creek,

    out to a depth of about 6 feet. The only grass beds noted were concentrated at

    the mouth of Pasquahanza Creek. The beds continued north along the shoreline

    (to 30' offshore in places) for approximately 300 feet from the creek mouth. The

    most abundant species in the creek and along the shoreline was Myriophyllum

    fi

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    spicatum (Eurasian watermilfoil). To a lesser degree, Vallisneria americana (wild

    celery) was found mixed in with the milfoil in the creek and along the shoreline.

    Floating pieces of Ruppia maritima (widgeon grass) was found tangled in mats of

    other debris being pulled towards the Station's intake structure, but no beds of

    widgeon grass were noted during the survey.

    The project will take place well north of the SAV bed locations and should have

    no impact on the vegetation.

    Wildlife (fish/shellfish, birds, mammals)

    The Potomac River estuary at Morgantown Station falls into both the oligohaline

    and mesohaline salinity regimes, depending on the time of the year and flows. A

    number of fish and shellfish species are concentrated around the Station. Finfish

    are present either as generally permanent residents such as white perch and

    gizzard shad, seasonal residents like bay anchovy or juveniles of species

    seeking the protection of the estuary like menhaden, or as adults during

    spawning runs like striped bass or shad. Blue crab, American oyster and

    brackish water clam are the main shellfish found in the area. Fish and shellfish

    should not be impacted by this project. The biggest concern for a project such as

    this one would be oyster bed disturbances. This area is on the cusp of being too

    fresh for oyster production. The closest oyster beds (Pascahana bar) are located

    just south of the proposed structure.

    Waterfowl are abundant on the Potomac River during the winter months. The

    river around the project site is considered by DNR to be a waterfowl staging area.

    This project however, shouldn't have any impacts on the present waterfowl use

    of the area directly in front of the facility. There are already barges using the site

    and any additional lighting, structures in the river and traffic will be concentrated

    in these industrial use areas.

    There are probably no aquatic or semi-aquatic mammals using the present intake

    area where this work is proposed. Beaver, otter and muskrat activities are more

    likely concentrated further inland on the site or in the tidal wetlands found in

    PasquahanzaCreek.

    Recreational Uses (fishing, hunting, boating)

    The recreational uses of the Potomac River in the area surrounding the site are

    primarily fishing, hunting and boating. There is a good deal of fishing that takes

    place in the warm water plume of the facility's discharge. This area is located to

    the north of the proposed project and shouldn't be impacted by the proposed

    project. Neither will the new construction preclude small craft from being able to

    follow the shoreline along Mirant's waterfront.

    Hunting for waterfowl is allowed in the Potomac River. There are two blinds

    licensed near the facility, both around Pasquahanza Creek. In the past, the

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    company purchased the blind rights, but in recent years Mirant has stopped that

    practice. The proposed construction and associated extra barge traffic shouldn't

    have any impact on this activity.

    Recreational boat traffic in this part of the Potomac River is generally not

    concentrated. The activities at Dahlgren tend to keep people moving through the

    area and there are no attractions such as waterfront restaurants or sandy

    beaches that tend to draw boaters, other than the marina at Aqualand, which is

    located north of the 301 Nice Bridge. An increase in barges to the facility should

    not impede the flow of boat traffic in the area nor will the proposed pier and

    conveyor act as a barricade to small craft from hugging the shoreline along

    Mirant's waterfront in the case of inclement weather.

    Commercial Uses (fisheries, barge traffic)

    According to the Potomac River Fisheries Commission (PRFC), the official body

    in charge of fisheries on the main stem of the Potomac River, no pound nets are

    typically located in the immediate vicinity of the proposed work. There are gill

    netters that set up near the facility during the season for that fishery (generally

    November through March), although it appears the fishing is more concentrated

    around the plant's discharge, north of the proposed work site. Crabbing is

    another commercial fishery in the river. Commercial crabbers in the Potomac

    River typically use pots and trot lines. Both can be run anywhere outside of the

    federally designated channel. The season generally runs from April through

    November. It is probable that crabbers work the shallow offshore areas in front

    of the Station during the commercial season, although the work proposed should

    have little impact on such uses. Commercial oyster harvesting in that part of the

    river is nonexistent at this time, according to the PRFC.

    Required Permits

    The construction of the Barge Unloader requires the submittal of a Joint

    Federal/State Application for the alteration of any floodplain, waterway, tidal or

    nontidal wetland in Maryland [40 CFR 233 and COMAR 26.23]. The application

    is presented in Attachment E. Both Federal and State agencies will review the

    permit. On the State level, this permit will be reviewed by MDE. Neither tidal nor

    nontidal wetlands will be impacted for this project, but the Department of Natural

    Resources will have input on time of year restrictions for the in-stream work to

    take place, as well as input on any species of concern that may be in the area. It

    is anticipated that the process should be fairly routine.

    The Army Corps of Engineers is the Federal reviewing agency and the lead

    agency for work in waterways. It is anticipated from conversations with the

    Corps that they will make the determination that the work meets the terms and

    conditions of the Maryland State Programmatic General Permit (MDSPGP-2).

    R

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    The Barge Unloader's onshore construction will take place within the Intense

    Development Overlay (100) portion of Morgantown's Chesapeake Bay Critical

    Area Plan. The barge unloader's construction and operation conform to activities

    allowed in the 100 area. The Morgantown Station has a Critical Area

    Conservation Plan in place and a bank of credit for permanent disturbances

    within the 100 of the Critical Area. Mirant will update the Critical Area Plan to

    include the additional impervious surface created by the Barge Unloader's

    construction.

    Summary of Additional Impacts-Effects:

    Aesthetic Impacts

    The Barge Unloader's construction footprint is within an existing developed

    industrial zone. There will be minimum additional environmental impacts from

    either the construction or operation of the barge unloader. No areas of

    previously undisturbed land will be required for the construction of the Barge

    Unloader. The bulk of the onshore project development will take place in

    Morgantown's existing coal and rail yard. The project will require no increased

    water use on the site, or create any new waste products or discharges.

    This portion of the Potomac River is developed on both sides. Dahlgren U.S.

    Naval Test Center, the Harry Nice Bridge, US Route 301 and multiple marinas all

    add to an overall industrial feel to the area surrounding the Morgantown

    Generating Station. The addition of the Barge Unloader will have only minimal

    impacts on the River's existing view shed and noise levels.

    Increased Barge Traffic Impacts

    The project will increase commercial river traffic by approximately one barge

    round trip per day. This portion of the Potomac River has only limited

    commercial water borne traffic. The additional impact on existing commercial or

    recreational river traffic in the Potomac River Channel will be minimal.

    Construction Impacts

    The Barge Unloader will be constructed over an 18-month period. All

    construction impacts will be temporary in nature. Construction materials will be

    brought to the site by truck, rail or barge. Morgantown's existing transportation

    facilities are all capable of accommodating this temporary increase in road, rail or

    barge traffic.

    There will be increases in storm water runoff from the new facility. The storm

    water runoff will be routed to the existing storm water collection system. The

    Storm Water Pollution Prevention Plan will be updated to include and identify the

    increased potential runoff from the project.

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    Economic Impacts

    Mirant expects that there will be no increase in employment at the Station for

    operating the Barge Unloader. With the Barge Unloader in operation, rail traffic

    into the Morgantown Station will decrease. There will no additional road traffic

    associated with the operation of the new facility.

    10