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. THE COAL RESOURCE AND LOCATION OF COAL GASIFICATION N .- ~ .- In the disaggregation of the U.S. Department of Energy (DOE) projections for coal gasification, a number of factors in the loca- tion of coal gasification plants were taken into account. A nearby supply of coal is only one criterion, though this was the primary basis for the disaggregation of the DOE projections. The environmental impact statements by the U.S. Bureau of Reclamation (1976, 1977) on the proposed Western Gasification Company (WESCQ) and El Paso coal gasification pro- jects indicate a number of varying factors in their choices of locations. The impetus for coal gasification stems from many practical and political considerations. Chief among these is the increasing shortfall of natural gas supplies nationwide. Political decisions to reduce the United StateS dependence on foreign imports of petroleum and liquid natural gas has led to increased emphasis On coal and the most abundant domestic energy resources (U.S. Bureau of Reclamation, 1976). . These decisions have been coupled with reduced discovery of new natural gas supplies. The need for gas supply companies to hold delivery rates at pre-1969 levels, despite increased user demand, has increased the interest of private companies in production of synthetic natural gas (SNG) from coal as a possible alternative source to meet demands. Once private industry became concerned about the need for production of SNG, it began searching for other sources for production of SNG. The case of '..lESCO, a subsidiary of Utah Construction and lUning Company (UII), is an example. UII had negotiated a coal mining lease for a surface mine on the Navajo Reservation in northwestern New Mexico. Shortly thereafter, a contract was negotiated with the U.S. Department of the Interior to purchase water from the Navajo Reservoir. With both coal and water supplies confirmed, UII entered into a contract with Pacific Lighting [sic] to pursue coal gasification, which "appeared to be the only new domestic source of high Btu gas." (U.S. Bureau of Reclamation, 1976, pp. 1-4). This location has the additional advan- tages of the existing net~ork of natural gas pipelines to service areas throughout the southwest. In-situ gasification of coal has also been considered and is tech- nologically feasible, though there are many "unkno;ms~' surrounding the full development of in-situ gasification as a totally reliable process. The location of such a gasification operation would depend on optimal supplies of coal and favorable environmental conditions such as minimal potential impacts. Water supply for this process probably does not . restrict the location, since this process uses, in part, available ground water. This method has not apparently been given as wide con- sideration as surface methods, perhaps since most research has been aimed at perfecting the more reliable surface processes first. As the . B-ll