City council wants more information

Will Portland put a moratorium on geological carbon sequestration projects?

City council members want to hear more before they decide.

Following a public hearing Monday, Portland City Council voted to send the issue back to the city’s plan commission to seek a recommendation on a proposed one-year moratorium.

The plan commission now has 45 days to meet and potentially make a recommendation to the council, which would then hold another public hearing to consider a moratorium.

What is carbon sequestration?

Carbon sequestration is the process of storing carbon dioxide, which can be captured from industrial projects, power plants and other facilities. 

For geologic carbon sequestration, which is being discussed locally, it involves injecting the carbon dioxide deep underground into porous rock formations in which it becomes physically trapped. It eventually reacts to form stable minerals.

Project planned

Consideration of a moratorium — a pause on projects to allow the city to develop an ordinance regulating carbon sequestration — comes as POET Bioprocessing is working toward a project. (The facility is located outside of the city limits to the southwest but falls within its 2-mile buffer for zoning.)

Adam Homan, general manager of the Portland facility, noted that POET has gone through a feasibility study to ensure that such a project would be safe. He said it will be a positive for POET, the landowners involved and the community.

Geologist Matt Hemenway of Michigan-based DTE Vantage, the firm that is working with POET on the proposed project, explained that a seismic survey (essentially an ultrasound of the subsurface geology for the project area) and drilled a stratigraphic test well (a borehole drilled to gather geological information about subsurface formations).

He said some landowners in the project area — it covers about 1,000 acres — have already been contacted and that plans are to get to everyone in the next three to six months.

He told council members that there is about a two-year review process for the proposed project by the Environmental Protection Agency. (POET and DTE plan to submit the application to start that process by the end of the year.) He said the EPA review period also has a community engagement and public review aspect as part of the approval process.

Additional wells would be drilled for post-injection monitoring. A bond is also required to ensure that if there are problems, funding is available for mitigation.

Filling in details after the meeting, Tony Muzzin of DTE Vantage said the project would involve 12 years of injecting carbon dioxide. Five to 50 years of monitoring would follow.

Council questions

Council members Kent McClung, Michele Brewster, Matt Goldsworthy, Dave Golden, Mike Aker, Ashley Hilfiker and Ron May had various questions about the project. 

May asked if carbon dioxide will be transported from other sites to be injected locally and if other chemicals would be involved? Homan said carbon dioxide set to be injected will be from the Portland facility and it will be “nearly pure.”

Hilfiker’s concerns centered on water and livestock. Hemenway said DTE must issue regular compliance reports with the EPA and that notification is typically required within hours if there is any problem. He said the number of issues with water related to carbon sequestration projects is “very low,” and that if any such issue arises the facility would be shut down immediately. Any water impacted would go through a mediation process to remove the carbon dioxide and new wells could be drilled, if needed. He said he did not have an answer on her question regarding livestock but would follow up.

McClung asked about the geology of the area that makes it a viable site for carbon sequestration. He also asked about the risk of earthquakes. Hemenway responded that most wells are in the 150-foot range whereas the porous Mount Simon Sandstone formation where the carbon dioxide would be injected is at about 3,200 feet deep. He added that earthquake risk is minimal and that any such activity that would reach surface level would result in the project being shut down.

Golden asked about the benefits of the project. Homan said carbon sequestration would open the door for POET to offer lower-carbon fuel, aviation fuel and maritime fuel, putting it at a competitive advantage. He estimated the project as a $50 million to $75 million investment, resulting in increased property tax revenue locally. He also noted that payments would be made to participating landowners. (Officials would not specify payment amounts for landowners, but Muzzin indicated that it would be multiple millions as a whole over the course of the project.)

Public comment

Two local residents who live in the area of the proposed project spoke during the hearing, with Chris Lutes in support and Rodney Miles saying he would like more information.

Lutes indicated that he was initially on the fence but feels POET and DTE have been up front and provided information. He expressed his feeling that the planned project is a good opportunity for the city and county.

Miles said he still has questions and asked about the potential impact on the city’s water, specifically the water tower located along Tyson Road. He suggested monitoring near that tower

John Hemmelgarn, director of Jay/Portland Building and Planning, also commented, indicating that he has been against the project from the beginning. However, he said DTE officials have been willing to work with his office thus far and he hopes that will continue. He suggested that a geologist not connected with DTE be brought in to confirm the information that the firm has been providing.

Process

Portland Plan Commission discussed a potential pause on carbon sequestration projects during its June meeting.

Opinions at that time varied, with plan commission member and former mayor Randy Geesaman speaking in favor of the POET project and against a moratorium. McClung said he is not against such a project but wanted more time to review details.

A vote at that meeting against recommending a moratorium failed 3-2. No further motions were made, leaving no recommendation from the plan commission to the city council on the matter.

At Monday’s council meeting, Golden spoke against a moratorium. He said EPA rules are strict and he would prefer to work with POET rather than putting a pause on projects.

Hilfiker indicated that she would like the issue to be sent back to the city’s plan commission for further review. She said she felt the initial process via the plan commission was rushed and she would like to get more information from a third party.

May agreed, suggesting Purdue professor of geophysics and physics Doug Schmitt.

Hilfiker then made a motion to send the issue back to the plan commission. It passed on a 6-1 vote with Golden dissenting.

Jay County Plan Commission and Jay County Commissioners also considered a moratorium on carbon sequestration but voted against putting one in place. (See related story.)

On Monday, Randolph County Commissioners lifted a moratorium on carbon sequestration that they had put in place just two weeks earlier. They indicated that state and federal regulations are in place to govern and monitor such facilities.

The Indiana Natural Resources Commission approved new, permanent regulations on carbon sequestration last week. The regulations are 30 pages long and address various issues including transporting carbon dioxide, permitting and financial responsibility.

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For coverage of Portland City Council’s regular meeting Monday, see Thursday’s edition of The Commercial Review or visit thecr.com.