Water Development For Coal Pipelines: The ETSI Story

Material Information

Water Development For Coal Pipelines: The ETSI Story
ETSI Pipeline Co.


Subjects / Keywords:
Law -- Florida ( LCSH )
Lawyers -- Florida ( LCSH )
Rivers ( jstor )
Natural reservoirs ( jstor )
Coal ( jstor )
Spatial Coverage:
North America -- United States of America -- Florida


Water Development For Coal Pipelines: The ETSI Story New Sources of Water for Energy Development and Growth: Interbasin Transfers short course sponored by the Natural Resources Law Center University of Colorado School of Law June 7-10, 1982
General Note:
Box 6, Folder 3 ( Vail Conference 1983 - 1983 ), Item 88
Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.

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Source Institution:
University of Florida
Holding Location:
Levin College of Law, University of Florida
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All applicable rights reserved by the source institution and holding location.


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Wesley M. Witten
President, ETSI Pipeline Co.

New Sources of Water for Energy
Development and Growth: Interbasin Transfers

a short course sponsored by the
Natural Resources Law Center
University of Colorado School of Law
June 7-10, 1982



I Introduction

A. Pioneering History of Coal Pipelines

1. Initial patents granted in 1891.

2. First pipeline operated in 1914,

London England.

3. Consolidation Coal's East Lake

pipeline, Cadiz, Ohio, 1957.

4. Black Mesa pipeline, Arizona to

Nevada, 1970.

B. Impetus for Coal Pipelines

1. OPEC oil embargo 1973.

2. Abundant domestic coal reserves

3. Limitations of existing transporta-

tion systems.

4. Safety and environmental compati-


5. System reliability and cost efficiency.

C. ETSI Pipeline Project Description

1. Integrated 1,386 miles, 40 inch

diameter, pipeline to transport

coal slurry from Wyoming coal

mines to electrical utility

and industrial customers in

mid-south region.

2. Annual through put is 30 million

tons, which will require approx-

imately 20,000 acre-feet of

water per year.


3. Construction is expected to

commence in Spring of 1983 and

initial delivery to being in 1985.

4. Construction cost is approximately

$3 billion.

5. Venture partners in ETSI are

subsidiaries of:




Lehman Brothers Kuhn Loeb

Texas Eastern

D. Water Development Program

1. ETSI initially determined that

as an industrial water user it

would not. compete with agricul-

ture for scare surface water

supplies available within the

Powder River Basin of Wyoming.

2. Initially, Madison Formation

aquifer selected as primary

source with Oahe Reservoir as

backup supply.

3. 1974 Wyoming Legislature approved

use of water from Madison For-

mation aquifer under permit

conditions to be set by state


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4. 1980 South Dakota Legislature

authorized water permits for

energy industry use and ETSI

negotiated a contract to have

water right for 50,000 acre-feet

assigned to it by the State

Conservancy District.

5. Oahe Reservoir is now the primary

source of water for ETSI Project,

and example of state-industry


II. Oahe Reservoir Water Development

A. Necessary approvals for right to

divert water

1. South Dakota Water Management

Board Water right permit.

2. South Dakota Conservancy District -

Assignment Agreement.

3. U.S. Bureau of Reclamation -

Water Service Contract.

4. Corps of Engineers 404 permit

and real estate easement.

B. Water Availability in Main Stem

Missouri River.

1. Average annual flow at Oahe Dam

is 16,936,000 acre-feet/year.

2. Missouri River average annual

flow (at Sioux City, Iowa) 28.4

million acre-feet.

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3. Average storage in Oahe Reservoir

is 18 million acre-feet.

4. Six main-stem Missouri dams store

annual average of 60 million


5. ETSI's water right to 50,000

acre-feet per year is equal to

ten percent of net annual

evaporation loss from Oahe.

50,000 acre-feet per year is not

within the degree of accuracy

for measuring discharge through

Oahe turbines.

C. Earlier Energy Industry State Water

Permits and Federal Service Agreements

in Main-Stem Missouri River

1. Basin Electric Power Cooperative -

19,000 acre-feet/year.

2. ANG Coal Gasification Company -

17,000 acre-feet/year.

III. Conclusion

A. Allocation of Missouri River

1. As interstate stream rights of

all states must be respected by

sister states and federal government.

2. As individual projects show

feasibility and beneficial use I

under state law they should go


L-I-4 36

B. Benefits of ETSI Project

1. Additional mode of highly reliable


2. Delivery of water to western South

Dakota communities.

3. Technical Assistance Program for

water development.

4. Employment, property tax and other


C. Environmental compatibility

1. One million acre feet available

for energy development from

Missouri River System without

interfering with other users.

Water for Energy: Missouri River

Reservoirs, Final Environmental

Impact Statement, FEIS77-43, U.S.

Department of Interior (December 1,


2. ETSI EIS found widest range of

benefits and environmental protec-

tion would be .served by Oahe water


L-I-5 3as