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Thursday, September 02, 2010
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| 10/29/2009 8:31:00 AM | Email this article • Print this article | Development agreement starting to take shape on proposed LS Power
electric station
BY DENISE MARTIN
The Lent Township electric station development agreement, at the center of a whirlwind of public debate, is beginning to take shape. The most-recent version was reviewed by this paper. The document continues to be drafted but county commissioners have assured the public (see County Board story) the completed agreement will be open for public inspection.
State lawmakers in the latest legislative session granted a personal property tax exemption to LS Power, whereby the power plant is exempt from taxes on its attached machinery, etc. The exemption is only authorized on the condition that a development agreement with local authorities is adopted.
Legislation requires the electric station construction to be underway by March 1, 2014.
There's no deadline imposed on agreement adoption but it must be approved by a three-fourths vote of the County Board and two-thirds of the township supervisors must adopt it.
Some of the agreement conditions discussed and moving forward are:
Sunrise River Energy Station will not use groundwater for cooling.
Senator Rick Olseen and Rep. Jeremy Kalin plan to introduce legislation in St. Paul this winter extending Mt Simon-Hinckley aquifer protections to include a ban on LS Power's Sunrise River plant using this aquifer. LS Power has already issued a statement that no groundwater will be used for the electric stations major industrial water sources.
Also, the Sunrise River Energy Station will limit use of fuel oil to no more than 500 hours annually. The electric station is primarily natural gas-fired, but would rely on oil when gas is unavailable.
The height of emission stacks is regulated by the Pollution Control Agency, but the Sunrise River Energy Station designers will make air emissions modeling and designs available for public inspection and comment. The PCA will dictate distance from the ground needed for emissions. The limiting of stacks to no taller than tree height is not feasible, the agreement states.
Utility access routes may involve eminent domain.
It may not be possible for LS Power to buy easements over neighboring property for natural gas pipeline access, and the companies that own the gas pipeline must be able to use utility condemnation to construct those short connections from pipelines to the electric station.
Expenses of up to $100,000 will be reimbursed by the developer to Lent Township; and up to $300,000 reimbursed to the county for costs incurred related to the electric station.
Damages to county roads 14 and 15 and township roads occurring during construction will be repaired by LS Power. LS Power will seal coat CSAH 14.
The project's taxes will run about $2 million annually, with preliminary agreement that payments made in lieu of personal property tax ($600,000) will be divided between the school district, township and county. An environmental improvement fund overseen by the county will get $100,000 annually.
The agreement and plans for the site must be attached to Sunrise River Energy's application to the Minnesota Public Utilities Commission for a site permit for the project. The developer also agrees to provide the township and county with copies of all permit applications and plans submitted to the PUC and other agencies.
"Before the project is built Sunrise River Energy must receive a site permit and a certificate of need from the PUC," the agreement reads.
The Lent Town website should have the latest draft of the agreement at, www.lenttownship.com The LS Power company's site was being made available soon, try www.sunriseriverenergy.com.
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