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<br />. <br /> <br />. <br /> <br />l:'- <br /> <br />:""'..; <br />"''-'~ <br /> <br />'1'"1 <br /> <br />Combustion-Engineering reports 100 percent success in using <br />a high-energy electric arc to ignite powdered coal in a <br />cold furnace, resulting in substantial savings in gas or <br />oil normally used to start gas boilers. No followup yet <br />to Combustion-Engineering's invitation to inspect the fine <br />coal handling system at the 900 MW TVA powerplant at Bull <br />Run, Tennessee. <br /> <br />\..1 <br /> <br />C) <br /> <br />Calculations indicate that favorable AQUATRAIN economics <br />depend to a great extent on cheap, dependable supplies of <br />CO? Factors for consideration include location, reserves, <br />purity, markets for enhanced oil recovery, and joint venture <br />partners. A large, and favorably located reserve exists <br />at the Riley Ridge natural gas project in southwest Wyoming. <br />Calculations indicate potential recovery of up to 30 MTPY <br />of CO2 - enough to transport 100 to 200 MTPY of coal. EXXON <br />U.S.A. (Midland, Texas) has substantial holdings in the <br />La Barge, Wyoming area south of Riley Ridge and have agreed <br />to discuss a possible joint venture for CO?/coal pipeline <br />with AQUATRAIN. A meeting date is being arranged. <br /> <br />Stearns Roger has suggested using powerplant stack gases <br />in a fluidized-bed combustion system to produce both power <br />and CO2, Coal would be used as the fuel to reduce the oxygen <br />of the stack gases to zero which is necessary to prevent <br />interference with the CO2 recovery process. <br /> <br />The Price, Utah area appears to be a potentially rich source <br />of CO , particularly for the early stages of AQUATRAIN. <br />Twelv€ wells (non-producing) have been identified through <br />information provided by the State of Utah, Department of <br />Natural Resources. Several of the wells are located near <br />coal which would be transported from Hiawatha Junction to <br />Intermountain Powerplant. The indicated purity of some <br />of the CO2 is 99+ percent. Reserves are unknown, but the <br />extent of the field indicates it may be a major, long-term <br />source of CO2 for enhanced oil recovery. <br /> <br />5.2 ANTICIPATED SEPTEMBER EVENTS <br /> <br />Complete design and cost estimates for Stage III system to Pacific <br />Coast. <br /> <br />Continue identifying CO2 sources. <br /> <br />Follow-up with Stearns Roger on fluidized-bed combustion for <br />power and CO2 production. <br /> <br />Arrange meeting with EXXON U.S.A. regarding CO2 supplies at Riley <br />Ridge, Wyoming. <br /> <br />3 <br />