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<br />, <br /> <br />. <br /> <br />Page 2 <br /> <br />. <br /> <br />."" <br />~,., <br />C. \.} <br />...~ <br />c., <br />t..: <br /> <br />consulates general in San Francisco, Los Angeles, and New York City. <br /> <br />On November 2, 1982, Aquatrain, Inc., and Reclamation signed a Cooperative <br /> <br />Agre"",ent to study the Aquatrain concept and its various applications. As stated <br /> <br />in the agreement both "agree in principle to jointly conduct the Aquatrain Proj ect <br /> <br />studies" to determine the economic, environmental, and technical viability of the <br /> <br />concept. Both are interested in having others join with them to undertake the design, <br /> <br />construction and financing of the project. <br /> <br />One of Aquatrain, lnc.'s responsibilities under the agreement is to take the lead <br /> <br />role in assessing coal transportation technology. Arthur D. Little, Inc., of Cambridge, <br /> <br />Mass., has been working on coal/liquid C02 slurry technology since 1977. Since 1980, <br /> <br />W.R. Grace and Arthur D. Little have been jointly developing this technology. Recently <br /> <br />they announced the formation of a partnership called Carbon Dioxide Slurry System to <br /> <br />commercialize this technology. A pilot plant on coal/liquid C02 slurry technology at <br /> <br />Little's facilities has become operational recently and has confirmed laboratory <br /> <br />projections; in some areas, expecta~ions were exceeded. <br /> <br />While private industry's interests are in the reduction of the coal transportation <br /> <br />costs and reduced power costs to the consumer, Barrett emphasized that the value of <br /> <br />the project for the Bureau of Reclamation and the seven Colorado River Basin States <br /> <br />continue to be in the reduction of saline water flowing into the Colorado River. <br /> <br />Barrett and McKeever indicated that moving saline water to a point of use in a common <br /> <br />product pipeline with liquid carbon dioxide and coal may offer the promise of meeting <br /> <br />both objectives in a more cost-effective manner than the capsule. <br /> <br />II II 1/ <br />