Office of the Attorney General

Governor
Matthew H. Mead
Attorney General
Peter K. Michael
F iled via hand delivery
Water and Natural Resources Division
123 S tate C ap itol
C heyenne, Wyoming 82002
307-777-6946 Telep hone
3()7-777-3542 F ax
S ep tember 8, 2014
Mary Abrams, Director
Kirk J arvie, Northern Region Manager
Oregon Dep artment of S tate Lands
775 S ummer S treet NE, S uite 100
S alem, OR 97301-1279
C hief Dep uty Attorney General
J ohn G. Knep p er
Division Dep uty
J ames Kaste
Re: Ap p eal from denial of C oyote I sland Terminal, LLC ' s removal-fill p ennit
ap p lication 49123-RF .
Dear Director Abrams and Mr. J arvie:
The S tate of Wyoming ap p eals from the Dep artment of S tate Lands' August 18,
2014, decision denying C oyote I sland Terminal, LLC ' s ap p lication for a removal-fill
p ermit. The Dep artment's decision has stop p ed an imp ortant international commercial
exp ort p roj ect that will benefit the S tate of Wyoming and its citiz ens, based on the
Dep artment's ap p arent dislike for the commodity that will p ass through the p ort,
rather than the statutory factors it must consider. However, one state cannot
unilaterally stop interstate and foreign commerce to the detriment of its sister states.
Therefore, the S tate req uests that the Dep artment refer this matter to the Oregon
Office of Administrative Hearings for a contested case hearing.
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8 , 2014
Page 2 o f 10
St andi ng
The St at e i s an adv e r se l y affe c t e d par t y wi t h st andi ng t o appe al fr o m t he
D e par t me nt 's pe r mi t de ni al , be c ause t he D e par t me nt 's de c i si o n has har me d and
de gr ade d t he St at e 's l e gal l y pr o t e c t abl e i nt e r e st s. Or . Admi n. R. 141-08 5-0575(2),
(3 )(a). The D e par t me nt has de ni e d a pe r mi t i t asse r t s i s ne c e ssar y fo r c o nst r uc t i ng a
do c k t hat Co y o t e I sl and Te r mi nal , LLC wi l l use t o shi p Wy o mi ng c o al o n wat e r s o f
t he Uni t e d St at e s t o fo r e i gn mar ke t s. The St at e has l e gal l y pr o t e c t e d i nt e r e st s i n
mai nt ai ni ng t he r e v e nue st r e ams ge ne r at e d fr o m t he e x t r ac t i o n o f Wy o mi ng's l o w-
sul fur c o al t hat Co y o t e I sl and Te r mi nal , LLC wi l l shi p t hr o ugh t hi s do c k. Se e Wy o .
St at . Ann. 3 9-11-102; 3 9-14-101 t hr o ugh 3 9-14-711; Gr e nv i k Aff. 5-10;
Car r o l l Aff. i n 8 -17.
Co y o t e I sl and Te r mi nal , LLC's do c k and po r t fac i l i t y wi l l pr o c e ss
appr o x i mat e l y e i ght mi l l i o n me ga-t o ns o f l o w-sul fur c o al e ac h y e ar fr o m mi ne s i n t he
i nt e r mo unt ai n we st . Se e J o i nt Pe r mi t App. Fo r m at 2; D e par t me nt Fi ndi ngs and Or de r
at 4. Wy o mi ng pr o duc e s mo r e l o w-sul fur c o al t han any o t he r st at e i n t he
i nt e r mo unt ai n we st . Car r o l l Aff. I N 8 , 11, 13 . Addi t i o nal l y , t he mi ne s i n Wy o mi ng and
t he r ai l r o ad l i ne s t hat wi l l t r anspo r t Wy o mi ng's c o al di r e c t l y t o t hi s po r t hav e mo r e
e x c e ss c apac i t y t han t hi s po r t c an handl e e ac h y e ar . I d. 11-17 . The r e fo r e , Wy o mi ng
mi ne s do no t suffe r fr o m a c apac i t y pr o bl e m; t he c o al i s av ai l abl e fo r e x po r t wi t ho ut
t he ne e d fo r addi t i o nal c api t al o r i nc r e ase s i n pr o duc t i o n. I d. I nst e ad, t he Wy o mi ng
mi ne s ar e i n ne e d o f a mar ke t fo r t hi s e x c e ss c o al and t he D e par t me nt 's pe r mi t de ni al
di r e c t l y i mpac t s ac c e ss o f Wy o mi ng's c o al t o fo r e i gn mar ke t s. I d.
Be c ause t he D e par t me nt 's de ni al i mpe de s t he e x po r t o f Wy o mi ng c o al t hat i s
r e ady fo r t r anspo r t t o fo r e i gn mar ke t s, t he D e par t me nt 's de c i si o n di r e c t l y i mpac t s t he
St at e 's r e v e nue fr o m t hat c o al . The Wy o mi ng D e par t me nt o f Re v e nue e st i mat e s t hat
e i ght mi l l i o n me ga-t o ns o f c o al has a ge ne r at i v e v al ue o f appr o x i mat e l y $9. 7 t o $3 0. 3
mi l l i o n i n se v e r anc e and ad v al o r e m t ax r e v e nue t o t he St at e . Gr e nv i k Aff. 10.
Co nse que nt l y , be c ause a c o nsi de r abl e po r t i o n o f t he c o al pr o c e sse d by Co y o t e I sl and
Te r mi nal , LLC's fac i l i t y wi l l be Wy o mi ng c o al , t he D e par t me nt 's de c i si o n has
har me d and de gr ade d t he St at e 's i mpo r t ant and l e gal l y pr o t e c t abl e r e v e nue st r e ams.
The St at e has st andi ng i n i t s o wn r i ght t o appe al fr o m t he D e par t me nt 's de ni al o f
Co y o t e I sl and Te r mi nal , LLC's r e mo v al -fi l l pe r mi t appl i c at i o n.
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8 , 2014
Page 3 o f 10
Re aso ns fo r Appe al
I . The D e par t me nt l ac ks j u r i sd i c t i o n t o r e vi e w Co yo t e I sl and Te r mi nal ,
LLC's pe r mi t appl i c at i o n.
As appl i e d i n t hi s c ase , t he D e par t me nt 's pe r mi t t i ng r e gi me vi o l at e s t he
Co mme r c e Cl au se o f t he Uni t e d St at e s Co nst i t u t i o n. Se e U. S. Co nst . , ar t . I , 8 , c l . 3.
I n i t s at t e mpt t o r e gu l at e fi l l ac t i vi t y fo r t he c o nst r u c t i o n o f Co yo t e I sl and Te r mi nal ,
LLC's d o c k o n t he Co l u mbi a Ri ve r fo r t he spe c i fi c pu r po se o f t r anspo r t i ng c o al t o
fo r e i gn mar ke t s, t he D e par t me nt i s i mpe r mi ssi bl y se e ki ng t o r e gu l at e c hanne l s and
i nst r u me nt al i t i e s o f i nt e r st at e and fo r e i gn c o mme r c e . Und e r t he Co mme r c e Cl au se ,
o nl y Co ngr e ss has t he au t ho r i t y t o r e gu l at e c hanne l s and i nst r u me nt al i t i e s o f i nt e r st at e
and fo r e i gn c o mme r c e . F u r t he r , as appl i e d t o t he Co yo t e I sl and Te r mi nal , LLC's
appl i c at i o n, t he D e par t me nt i s at t e mpt i ng t o r e gu l at e ar e as i n whi c h i t has be e n
pr e e mpt e d by Co ngr e ss, i nc l u d i ng t hr o u gh t he F e d e r al Wat e r Po l l u t i o n Co nt r o l Ac t ,
33 U. S. C. 1251 t hr o u gh 138 7, and t he Ri ve r s and Har bo r s Ac t o f 18 99, 33 U. S. C.
401 t hr o u gh 426p. Und e r t he u ni qu e c i r c u mst anc e s o f t hi s c ase , o nl y t he fe d e r al
go ve r nme nt may r e gu l at e t he ac t i vi t y u nd e r l yi ng t he pe r mi t appl i c at i o n. The r e fo r e , t he
D e par t me nt has o ve r st e ppe d i t s j u r i sd i c t i o n i n t hi s d e c i si o n.
Assu mi ng t he D e par t me nt had j u r i sd i c t i o n, i t mi sappl i e d t he l aw, abu se d
i t s d i sc r e t i o n and e xc e e d e d i t s au t ho r i t y whe n d e nyi ng Co yo t e I sl and
Te r mi nal , LLC's pe r mi t appl i c at i o n.
Assu mi ng wi t ho u t c o nc e d i ng t hat t he D e par t me nt d o e s have j u r i sd i c t i o n t o
r e vi e w t he pe r mi t appl i c at i o n, t he D e par t me nt 's d e c i si o n sho u l d be c o mpl e t e l y r e vi se d
and t he D e par t me nt sho u l d i ssu e t he fi l l pe r mi t . I n i t s d e c i si o n, t he D e par t me nt
c o nsi d e r e d a nu mbe r o f i ssu e s and fac t s u nr e l at e d t o t he fi l l t hat Co yo t e I sl and
Te r mi nal , LLC r e qu e st e d a pe r mi t t o u se t o bu i l d a d o c k, and u nr e l at e d t o t he d o c k
pr o j e c t t hat t he fi l l wi l l fac i l i t at e . I n d o i ng so , t he D e par t me nt mi si nt e r pr e t e d and
mi sappl i e d t he l aw and t he age nc y sho u l d r e vi se i t s d e c i si o n u si ng a c o r r e c t
i nt e r pr e t at i o n o f t he fi l l pe r mi t st at u t e s. Or . Re v. St at . 18 3. 48 2( 8 ) ( a) . F u r t he r ,
be c au se t he D e par t me nt e xc e e d e d i t s au t ho r i t y, i t s d e c i si o n fal l s o u t si d e t he r ange o f
d i sc r e t i o n d e l e gat e d t o t he age nc y by l aw, i s i nc o nsi st e nt wi t h t he age nc y's
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8 , 2014
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r e gu l at i o n s, an d i s i n v i o l at i o n o f t h e st at u t o r y pr o v i si o n s fo r r e v i e wi n g fi l l pe n- n i t
appl i c at i o n s. Or . Re v . St at . 18 3 . 48 2( 8 ) ( b) .
Th e Or e go n L e gi sl at u r e r e q u i r e s t h e D i r e c t o r o f t h e D e par t me n t o f St at e L an ds
t o i ssu e fi l l pe r mi t s i f t h e appl i c an t me e t s c e r t ai n c r i t e r i a. E x ami l o t i s v . D e p't o f St at e
L an ds, 244 P. 3 d 8 8 0, 8 8 7 ( Or . App. 2010) ( c i t i n g Or . Re v . St at . 196. 8 25( 1) &( 3 ) , as
ame n de d) . Th e D e par t me n t mu st appr o v e t h e fi l l pe r mi t i f t h e pr o j e c t i s " c o n si st e n t
wi t h t h e pr o t e c t i o n , c o n se r v at i o n an d be st u se o f t h e wat e r r e so u r c e s o f t h i s st at e " an d
" [w]o u l d n o t u n r e aso n abl y i n t e r fe r e wi t h t h e par amo u n t po l i c y o f t h i s st at e t o pr e se r v e
t h e u se o f i t s wat e r s fo r n av i gat i o n , fi sh i n g an d pu bl i c r e c r e at i o n . " Or . Re v . St at .
196. 8 25( 1) ( a) &( b) . To de t e r mi n e wh e t h e r t h e pe r mi t i s c o mpat i bl e wi t h t h e se po l i c y
o bj e c t i v e s, t h e Or e go n L e gi sl at u r e di r e c t e d t h e D e par t me n t t o an al y z e n i n e l i mi t e d
fac t o r s. I d. 196. 8 25( 3 ) . Fo r e i gh t o f t h e fac t o r s, t h e D e par t me n t mu st c o n fi n e i t s
r e v i e w t o t h e c h ar ac t e r i st i c s o r e ffe c t s o f t h e pr o po se d fi l l , i n t h i s c ase t h e fi l l mat e r i al
pr i mar i l y c o n si st i n g o f c o n c r e t e pi l i n gs. E x ami l o t i s, 244 P. 3 d at 8 8 8 ; Or . Re v . St at .
196. 8 25( 3 ) ( a)- ( b) & ( d) - ( i ) . Fo r t h e o t h e r fac t o r , t h e D e par t me n t mu st c o n si de r " t h e
av ai l abi l i t y o f al t e r n at i v e s t o t h e pr o j e c t fo r wh i c h t h e fi l l . . . i s pr o po se d. " Or . Re v .
St at . 196. 8 25( 3 ) ( c ) ( e mph asi s adde d) . Th e t e r m " pr o j e c t " i n t h at fac t o r i s l i mi t e d t o
" t h e de v e l o pme n t fac i l i t at e d by t h e pr o po se d fi l l . " E x ami l o t i s, 244 P. 3 d at 8 8 8 .
Ac c o r di n gl y , t h e D e par t me n t e x c e e ds i t s st at u t o r y au t h o r i t y wh e n i t c o n si de r s pr o j e c t
i mpac t s o r i mpac t s fr o m mat t e r s be y o n d t h e pr o po se d pr o j e c t wh i l e an al y z i n g a fac t o r
l i mi t e d t o i mpac t s fr o m t h e fi l l ac t i v i t y . I d. at 8 8 7. D e spi t e t h i s c l e ar pr e c e de n t an d
i n t e r pr e t at i o n o f t h e pe r mi t t i n g r e gi me 's pl ai n l an gu age , t h e D e par t me n t 's de c i si o n
we n t be y o n d i mpac t s fr o m t h e c o n c r e t e pi l i n gs an d t h e do c k pr o j e c t .
Th e D e par t me n t mi si n t e r pr e t e d an d mi sappl i e d t h e l aw i n e ac h o f t h e n i n e
fac t o r s. Co mpar e Or . Re v . St at . 196. 8 25( 3 ) ( a) t h r o u gh ( i ) ; wi t h D e par t me n t Fi n di n gs
an d Or de r at 2- 11. Spe c i fi c e x ampl e s o f t h e D e par t me n t 's l e gal e r r o r s i n c l u de :
A. Al t h o u gh Or . Re v . St at . 196. 8 25( 3 ) ( a) an d Or . Admi n . R. 141- 08 5-
0565( 4) ( a) l i mi t t h e D e par t me n t 's an al y si s t o t h e " pu bl i c n e e d fo r t h e
pr o po se d fi l l o r r e mo v al an d t h e so c i al , e c o n o mi c o r o t h e r pu bl i c be n e fi t s
l i ke l y t o r e su l t fr o m t h e pr o po se d fi l l o r r e mo v al [,]" t h e D e par t me n t
e x pan de d i t s sc o pe o f an al y si s u n de r t h i s se c t i o n an d c o n si de r e d fac t o r s
r e l at i n g t o a c o mpl e t e d an d o pe r at i o n al c o al po r t , su c h as " [de du c e d
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8, 2014
Page 5 o f 10
l i v abi l i t y and pr o pe r t y v al u e s i n t h e ar e a du e t o i nc r e ase d t r ai n and bar ge
t r affi c and po t e nt i al l y c o al spi l l / r e l e ase s" ; no i se s, l i gh t , and v i br at i o ns
e manat i ng fr o m fac i l i t y o pe r at i o ns; " i nc r e ase d bar ge i nt e r fe r e nc e " ; and
" c o st s t o t h e pu bl i c o v e r t h e 20 y e ar l i fe o f t h e pr o j e c t i f i t we r e
c o nst r u c t e d. " D e par t me nt F i ndi ngs and Or de r at 2- 3 .
B. Al t h o u gh Or . Re v . St at . 19 6 . 825( 3 ) ( d) and Or . Admi n. R. 141- 085-
056 5( 4) ( d) l i mi t t h e D e par t me nt 's anal y si s t o t h e " av ai l abi l i t y o f
al t e r nat i v e si t e s fo r t h e pr o po se d fi l l o r r e mo v al [ ,] " t h e D e par t me nt
c o nc l u de d u nde r t h i s se c t i o n t h at " t h e appl i c ant di d no t de mo nst r at e t h at
t h e Po r t o f Mo r r o w was t h e si t e o f t h e pr ac t i c abl e al t e r nat i v e wi t h t h e
l e ast i mpac t t o wat e r s o f [ Or e go n] " and t h e r e fo r e t h e D e par t me nt wo u l d
no t " [ make ] a spe c i fi c fi ndi ng fo r t h i s c o nsi de r at i o n. " D e par t me nt
F i ndi ngs and Or de r at 6 - 7 . By fo c u si ng o n al t e r nat i v e s t o l o c at i ng t h e
pr o j e c t at t h e Po r t o f Mo r r o w, t h e D e par t me nt i mpr o pe r l y e xpande d i t s
anal y si s t o t h e pr o j e c t l o c at i o n i nst e ad o f l i mi t i ng i t se l f t o c o nsi de r i ng
t h e av ai l abi l i t y o f al t e r nat i v e si t e s fo r t h e pr o po se d c e me nt pi l i ngs.
C. Al t h o u gh Or . Re v . St at . 19 6 . 825( 3 ) ( e ) and Or . Admi n. R. 141- 085-
056 5( 4) ( e ) l i mi t t h e D e par t me nt 's anal y si s t o " [ w] h e t h e r t h e pr o po se d
fi l l o r r e mo v al c o nfo r ms t o so u nd po l i c i e s o f c o nse r v at i o n and wo u l d no t
i nt e r fe r e wi t h pu bl i c h e al t h and safe t y [ ,] " t h e D e par t me nt e xpande d i t s
sc o pe o f anal y si s u nde r t h i s se c t i o n and c o nsi de r e d fac t o r s r e l at i ng t o
" adv e r se e ffe c t s t o aq u at i c h abi t at , fi sh i ng o r pu bl i c h e al t h and safe t y "
r e su l t i ng fr o m " t h e c o nst r u c t i o n o r o pe r at i o n o f t h e [ c o al po r t ] fac i l i t y "
i nc l u di ng " [ c ] o al du st be i ng di sc h ar ge d fr o m t r ai ns, and du r i ng l o adi ng
o f and t r anspo r t wi t h bar ge s" ; an " i nc r e ase i n ai r po l l u t i o n fr o m di e se l
e xh au st [ e manat i ng fr o m t r ai ns and bar ge s] bo t h i n t h e i mme di at e
v i c i ni t y o f t h e do c k and e l se wh e r e i n t h e Co l u mbi a Ri v e r basi n" ; and
" [ b] ar ge nav i gat i o n i nt e r fe r i ng wi t h nav i gat i o n fo r t r i bal fi sh i ng bo t h i n
t h e i mme di at e v i c i ni t y o f t h e do c k and e l se wh e r e i n t h e Co l u mbi a Ri v e r
sy st e m. " D e par t me nt F i ndi ngs and Or de r at 7 - 8.
D . Al t h o u gh Or . Re v . St at . 19 6 . 825( 3 ) ( f) and Or . Admi n. R. 141- 085-
056 5( 4) ( f) l i mi t t h e D e par t me nt 's anal y si s t o " [ w] h e t h e r t h e pr o po se d fi l l
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8, 2014
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o r r e mo val i s i n c o n fo r man c e w i t h e x i st i n g pu bl i c u se s o f t h e w at e r s an d
w i t h u se s de si gn at e d fo r adj ac e n t l an d. i n an ac kn o w l e dge d
c o mpr e h e n si ve pl an an d l an d u se r e gu l at i o n s," t h e D e par t me n t e x pan de d
i t s sc o pe o f an al y si s u n de r t h i s se c t i o n an d c o n si de r e d fac t o r s r e l at i n g t o
" o pe r at i o n o f t h e do c k fac i l i t y c au si n g n o i se , l i gh t an d vi br at i o n an d
i n c r e ase d bar ge i n t e r fe r e n c e . " D e par t me n t F i n di n gs an d Or de r at 8- 9 .
Addi t i o n al l y , t h e D e par t me n t mi sappl i e d t h e l aw t o t h e pe r mi t t i n g r e gi me ' s
po l i c y o bj e c t i ve s. Eve n t h o u gh Or . Re v. St at . 19 6. 825 ( 1) ( a) an d Or . Admi n . R. 141-
085 - 05 65 ( 3) l i mi t t h e D e par t me n t an al y si s t o w h e t h e r t h e fi l l ac t i vi t y " Ws c o n si st e n t
w i t h t h e pr o t e c t i o n , c o n se r vat i o n an d be st u se o f t h e w at e r r e so u r c e s o f t h i s st at e [ ,] "
t h e D e par t me n t e x pan de d i t s sc o pe o f an al y si s an d c o n si de r e d fac t o r s r e l at i n g t o t h e
avai l abi l i t y o f r ai l w ay ac c e ss at al t e r n at i ve si t e s fo r t h e t r an spo r t at i o n o f c o al .
D e par t me n t F i n di n gs an d Or de r at 14- 16.
Ac c o r di n gl y , t h e D e par t me n t mi si n t e r pr e t e d an d mi sappl i e d t h e l aw an d abu se d
i t s di sc r e t i o n w h e n i t de n i e d Co y o t e I sl an d T e r mi n al , LLC' s fi l l pe r mi t appl i c at i o n
base d o n al l e ge d i mpac t s o u t si de t h e sc o pe o f t h e D e par t me n t ' s r e gu l at o r y au t h o r i t y .
T h e D e par t me n t sh o u l d r e vi se i t s de c i si o n u si n g t h e c o r r e c t l e gal i n t e r pr e t at i o n o f t h e
fi l l pe r mi t st at u t e s an d t h e D e par t me n t sh o u l d c o n fi n e i t s an al y si s t o t h o se mat t e r s
w i t h i n t h e age n c y ' s l i mi t e d au t h o r i t y .
T h e D e par t me n t ' s fac t u al fi n di n gs c o n t r adi c t t h e e vi de n c e be fo r e t h e
age n c y .
I n se ve r al i n st an c e s, t h e D e par t me n t ' s fi n di n gs an d c o n c l u si o n s di r e c t l y
c o n t r adi c t t h e e vi de n c e be fo r e t h e age n c y . Be c au se t h e D e par t me n t l ac ks su bst an t i al
e vi de n c e t o su ppo r t i t s fac t u al fi n di n gs, t h e D e par t me n t sh o u l d r e vi se i t s de c i si o n t o
c o n fo r m t o t h e e vi de n c e . Or . Re v. St at . 183. 482( 8) ( a) .
T h e D e par t me n t ' s de c i si o n c o n t ai n s n u me r o u s fac t u al c o n c l u si o n s t h at pay
sh o r t sh r i ft t o t h e e vi de n c e pr e se n t e d by Co y o t e I sl an d T e r mi n al , LLC i n i t s
appl i c at i o n . D e par t me n t F i n di n gs an d Or de r at 2- 17 . Spe c i fi c e x ampl e s o f t h e
D e par t me n t ' s fi n di n gs t h at ar e u n su ppo r t e d by t h e e vi de n c e c o n t ai n e d i n t h e r e c o r d
i n c l u de :
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8 , 2014
Page 7 o f 10
A. The D e par t me nt was r e q u i r e d t o make fi nd i ngs c o nsi d e r i ng t he
"e c o no mi c c o st t o t he pu bl i c i f t he pr o po se d fi l l o r r e mo val i s no t
ac c o mpl i she d . " Or . Re v. St at . 19 6 . 8 25 ( 3 ) ( b) ; Or . Ad mi n. R. 141-08 5 -
05 6 5 ( 4) ( b) . The D e par t me nt fo u nd he r e t hat "t he r e i s l i t t l e , i f any,
e c o no mi c c o st s t o t he pu bl i c i f t he pr o po se d fi l l o r r e mo val i s no t
ac c o mpl i she d . " D e par t me nt Fi nd i ngs and Or d e r at 3 . The D e par t me nt 's
fi nd i ng i s c o nt r ar y t o t he c o nsi d e r abl e e vi d e nc e sho wi ng t hat t he fi l l
ac t i vi t y wi l l c r e at e a nu mbe r o f jo bs and i nfu se t he l o c al c o mmu ni t y wi t h
c api t al , al l o f whi c h wi l l be l o st t o t he pu bl i c i f t he r e mo val -fi l l pe r mi t i s
d e ni e d . I d . at 2-3 .
B. The D e par t me nt was r e q u i r e d t o make fi nd i ngs c o nsi d e r i ng t he
"avai l abi l i t y o f al t e r nat i ve s t o t he pr o je c t fo r whi c h t he fi l l o r r e mo val i s
pr o po se d . " Or . Re v. St at . 19 6 . 8 25 ( 3 ) ( c ) ; Or . Ad mi n. R. 141-08 5 -
05 6 5 ( 4) ( c ) . I n ac c o r d anc e wi t h t hi s se c t i o n, Co yo t e I sl and Te nni nal ,
LLC c ar e fu l l y d e sc r i be d i n e x hau st i ve d e t ai l why o t he r l o c at i o ns and
al t e r nat i ve s fo r t he pr o po se d fi l l-r e mo val ac t i vi t y ar e u navai l abl e .
D e par t me nt Fi nd i ngs and Or d e r at 4-6 . Ho we ve r , t he D e par t me nt
su mmar i l y d i smi sse d t he c o mpany's r e po r t i n a t wo-se nt e nc e par agr aph
by si mpl y c o nc l u d i ng t hat t he c o mpany has no t e st abl i she d t hat t he
"pr o po se d fi l l i s t he pr ac t i c abl e al t e r nat i ve wi t h t he l e ast i mpac t t o
wat e r s o f t hi s st at e . " I d . at 6 . The D e par t me nt 's t e r se fi nd i ngs ar e agai nst
t he gr e at we i ght o f e vi d e nc e i n t he r e c o r d . Al t ho u gh t he D e par t me nt
r e fe r s ge ne r al l y t o t he "D e par t me nt 's D e t e nni nat i o ns" se c t i o n o f i t s
Fi nd i ngs and Or d e r as su ppo r t fo r i t s abbr e vi at e d fi nd i ngs and
c o nc l u si o n u nd e r t hi s fac t o r , t he D e par t me nt 's d e t e r mi nat i o ns l i ke wi se
fai l t o sho w t hat i t s fi nd i ngs have su ffi c i e nt e vi d e nt i ar y su ppo r t . I d . at
13 -17.
C. The D e par t me nt was r e q u i r e d t o make fi nd i ngs c o nsi d e r i ng t he
"avai l abi l i t y o f al t e r nat i ve si t e s fo r t he pr o po se d fi l l o r r e mo val . " Or .
Re v. St at . 19 6 . 8 25 ( 3 ) ( d ) ; Or . Ad mi n. R. 141-08 5 -05 6 5 ( 4) ( d ) . D e spi t e
t he fac t t hat Co yo t e I sl and Te r mi nal , LLC d i sc u sse d nu me r o u s
al t e r nat i ve s fo r t he fi l l and t he r e aso ns why t ho se al t e r nat i ve s wo u l d no t
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8 , 2014
Page 8 o f 10
wo r k, t h e D e par t me nt c o nc l ude d unde r t h i s se c t i o n t h at "t h e appl i c ant
di d no t de mo nst r at e t h at t h e Po r t o f Mo r r o w was t h e si t e o f t h e
pr ac t i c abl e al t e r nat i v e wi t h t h e l e ast i mpac t t o wat e r s o f [Or e go n]" and
t h e r e fo r e t h e D e par t me nt wo ul d no t "[make ] a spe c i fi c fi ndi ng fo r t h i s
c o nsi de r at i o n. " D e par t me nt Fi ndi ngs and Or de r at 6 - 7 . He r e , t h e
D e par t me nt pr o v i de d a c ur so r y e x pl anat i o n fo r wh y i t di d no t make any
de t e r mi nat i o n unde r t h i s fac t o r , de spi t e t h e fac t t h at Co y o t e I sl and
Te r mi nal , LLC pr o v i de d c o nsi de r abl e di sc ussi o n o f wh y no al t e r nat i v e
si t e s ar e av ai l abl e . I d. Th e D e par t me nt 's c o nc l usi o n t h at i t c anno t make
fi ndi ngs unde r t h i s fac t o r i s i nappo si t e t o t h e c o nsi de r abl e e v i de nc e
c o nt ai ne d i n t h e r e c o r d. I d.
D . Th e D e par t me nt was r e q ui r e d t o make fi ndi ngs c o nsi de r i ng "[w]h e t h e r
t h e pr o po se d fi l l o r r e mo v al i s i n c o nfo r manc e wi t h e x i st i ng publ i c use s
o f t h e wat e r s and wi t h use s de si gnat e d fo r adj ac e nt l and i n an
ac kno wl e dge d c o mpr e h e nsi v e pl an and l and use r e gul at i o ns. " Or . Re v .
St at . 19 6 . 8 25 ( 3 ) ( f) ; Or . Admi n. R. 141- 08 5 - 05 6 5 ( 4) ( f) . Th e
D e par t me nt c o nc l ude d t h at t h e si t e i s h o me t o an i mpo r t ant t r i bal fi sh i ng
gr o und t h at wi l l be adv e r se l y i mpac t e d by t h e pr o po se d fi l l . D e par t me nt
Fi ndi ngs and Or de r at 8 - 9 . Ho we v e r , wi t h i n t h i s same se c t i o n, t h e
D e par t me nt al so fo und t h at t h e si t e i s al r e ady i ndust r i al / c o mme r c i al i n
nat ur e , suc h t h at t h e pr o j e c t wo ul d mat c h adj ac e nt l and usage . I d. Th e
D e par t me nt al so r e c e i v e d a numbe r o f c o mme nt s and affi dav i t s fr o m a
di v e r se ar r ay o f e nt i t i e s wh i c h st at e d t h at t h e r e i s l i t t l e , i f any , t r i bal
fi sh i ng o c c ur r i ng at t h e si t e . I d. at 9 . Th e D e par t me nt 's fi ndi ng t h at an
i mpo r t ant t r i bal fi sh i ng gr o und e x i st s i s i nc o nsi st e nt wi t h no t o nl y t h e
e v i de nc e be fo r e t h e age nc y , but i s al so i nc o nsi st e nt wi t h t h e
D e par t me nt 's o wn fi ndi ng t h at t h e sur r o undi ng c o mmuni t y i s al r e ady
h i gh l y i ndust r i al i z e d and c o mme r c i al i n nat ur e .
E. Th e D e par t me nt was r e q ui r e d t o make fi ndi ngs c o nsi de r i ng "[w]h e t h e r
t h e appl i c ant h as pr o v i de d al l pr ac t i c abl e mi t i gat i o n t o r e duc e t h e
adv e r se e ffe c t s o f t h e pr o po se d fi l l o r r e mo v al i n t h e manne r se t
fo r t h i n ORS 19 6 . 8 00. " Or . Re v . St at . 19 6 . 8 25 ( 3 ) ( i ) ; Or . Admi n. R.
141- 08 5 - 05 6 5 ( 4) ( i ) . Th e D e par t me nt ac kno wl e dge d t h at i t r e c e i v e d a
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8, 2014
Page 9 o f 10
numbe r o f pr o po sal s fr o m Co yo t e I sl and T e r mi nal , LLC t h at ad d r e sse d
pr ac t i c abl e mi t i gat i o n und e r t h i s se c t i o n, ye t t h e D e par t me nt c o nc l ud e d
t h at t h e c o mpany fai l e d t o me e t i t s o bl i gat i o n und e r t h i s fac t o r be c ause
t h e c o mpany d i d no t pi c k wh i c h o pt i o ns i t wo ul d i mpl e me nt . D e par t me nt
F i nd i ngs and Or d e r at 10- 13 . Ho we ve r , t h e c o mpany was no t r e q ui r e d t o
so l i d i fy i t s mi t i gat i o n pl ans at t h i s st age . Mo r e o ve r , t h e D e par t me nt 's
fi nd i ngs summar i l y d i smi sse d t h e c o mpany's e x pl anat i o n o f pr ac t i c abl e
mi t i gat i o n o pt i o ns wi t h o ut pr o vi d i ng a r e aso ne d basi s fo r i t s d e ni al .
T h e r e fo r e , t h e D e par t me nt 's fi nd i ng i s c o nt r ar y t o t h e e vi d e nc e i n t h e
r e c o r d .
Ac c o r d i ngl y, t h e D e par t me nt fai l e d t o suppo r t i t s d e ni al o f t h e Co yo t e I sl and
T e r mi nal , LLC' s fi l l pe r mi t appl i c at i o n wi t h subst ant i al e vi d e nc e . T h e D e par t me nt
sh o ul d r e vi se i t s fi nd i ngs i n c o nfo r mi t y wi t h t h e fac t s be fo r e t h e age nc y.
I V. Ot h e r e r r o r s o r vi o l at i o ns o f l aw.
T h e St at e h as at t e mpt e d t o i d e nt i fy al l l e gal and fac t ual e r r o r s i n t h e
D e par t me nt 's d e c i si o n wi t h i n t h e t we nt y- o ne d ay pe r mi t appe al pe r i o d . Sh o ul d t h e
St at e i d e nt i fy ad d i t i o nal e r r o r s o r vi o l at i o ns wh i c h we r e no t r e aso nabl y appar e nt
d ur i ng t h i s pe r i o d , t h e St at e r e se r ve s t h e r i gh t t o r ai se ad d i t i o nal i ssue s o r r e aso ns fo r
appe al , o r i ssue s r ai se d by o t h e r par t i e s, l at e r i n t h e c o nt e st e d c ase pr o c e ss.
Co nc l usi o n
T h e D e par t me nt fai l e d t o c o mpl y wi t h t h e l aw and t h e age nc y's o wn fi l l pe r mi t
r e gul at i o ns wh e n i t d e ni e d Co yo t e I sl and T e r mi nal , LLC' s appl i c at i o n. T h e
D e par t me nt l ac k s j ur i sd i c t i o n t o r e vi e w Co yo t e I sl and T e r mi nal , LLC's fi l l pe r mi t
appl i c at i o n und e r t h e fac t s o f t h i s c ase . Eve n i f i t h ad j ur i sd i c t i o n, t h e D e par t me nt 's
mani fe st mi si nt e r pr e t at i o n o f t h e l aw, mi sappl i c at i o n o f t h e r e l e vant fac t o r s, and
r e l i anc e o n i nfo r mat i o n wh i c h t h e age nc y h as no aut h o r i t y t o r e gul at e o r c o nsi d e r i n
r e vi e wi ng a fi l l pe r mi t appl i c at i o n war r ant a c o mpl e t e r e vi si o n o f t h e D e par t me nt 's
d e c i si o n. F ur t h e r , be c ause t h e D e par t me nt 's fac t ual fi nd i ngs si mpl y i gno r e t h e we i gh t
o f e vi d e nc e , t h e D e par t me nt sh o ul d r e c o nsi d e r t h e appl i c at i o n. Be c ause Co yo t e I sl and
D i r e c t o r Abr ams, e t al .
Se pt e mbe r 8 , 2014
Page 10 o f 10
Te r mi nal , LLC me t t he pe r mi t t i ng r e qui r e me nt s, t he age nc y must i ssue t he fi l l pe r mi t
aft e r i t fi x e s t he se e r r o r s.
Fo r t he St at e o f Wyo mi ng:
))A44
Pe t e r K. Mi c hae l (WSB# 5-2309)
Wyo mi ng At t o r ne y Ge ne r al
Mi c hae l J . Mc Gr ady (WSB# 6-4099)
Se ni o r Assi st ant At t o r ne y Ge ne r al
Bl ake Kl i nkne r (WSB# 7-5070)
Assi st ant At t o r ne y Ge ne r al
Wyo mi ng At t o r ne y Ge ne r al 's O ffi c e
123 St at e Capi t o l
Che ye nne , WY 8 2002
(307)777-6946
Fac si mi l e (307)777-3542
pe t e r . mi c hae l @wyo . go v
mi ke . mc gr ady@wyo . go v
bl ake . kl i nkne r @wyo . go v
a e t E. Ne uman
8 13258 )
o nko n To r p, LLP
1600 Pi o ne e r To we r
8 8 8 So ut hwe st Fi ft h Ave nue
Po r t l and, O R 97204
(503)8 02-5722
Fac si mi l e (503)972-7422
j ane t . ne uman@t o nko n. c o m
AFFIDAVIT OF CRAIG GRENVIK
Cr a i g Gr envi k, b ei ng f i r s t d u l y s wor n, d epos es a nd s t a t es of h i s own
knowl ed g e t h a t :
1 . I a m t h e Ad mi ni s t r a t or of t h e Mi ner a l Ta x Di vi s i on of t h e Wy omi ng
Depa r t ment of Revenu e. I h a ve h el d t h i s pos i t i on s i nc e 2004. I a m over 1 8 y ea r s of
a g e, I h a ve knowl ed g e of t h e f a c t s s t a t ed h er ei n ei t h er f r om my own per s ona l
knowl ed g e, or f r om t h e r ec or d s of t h e Wy omi ng Depa r t ment of Revenu e, a nd a m
c ompet ent t o t es t i f y t h er et o.
2. I h ol d a B a c h el or s Deg r ee i n Pet r ol eu m Eng i neer i ng a nd a Ma s t er s of
B u s i nes s Ad mi ni s t r a t i on. B ot h d eg r ees a r e f r om t h e U ni ver s i t y of Wy omi ng , 1 988
a nd 1 995 r es pec t i vel y .
3 . In my pos i t i on wi t h t h e Depa r t ment of Revenu e, I over s ee a s t a f f t h a t
a d mi ni s t er s t h e S t a t e of Wy omi ng 's mi ner a l t a x l a ws , i nc l u d i ng c ol l ec t i on of
s ever a nc e t a xes i mpos ed f or t h e pr i vi l eg e of r emovi ng , mi ner a l s a nd ot h er va l u a b l e
d epos i t s , i nc l u d i ng c oa l . S ee Wy o. S t a t . Ann. 3 9-1 1 -1 02; 3 9-1 4-1 01 t h r ou g h 3 9-
1 4-7 1 1 .
4. Th e Depa r t ment of Revenu e's Mi ner a l Ta x Di vi s i on c ol l ec t s a nd
ma i nt a i ns d a t a r el eva nt t o t h e a s s es s ment a nd c ol l ec t i on of mi ner a l s ever a nc e a nd
Pa g e 1 of 4
ad valorem t ax es . This in f ormat ion is s t ored elec t ron ic ally on t he Min eral Tax
D ivis ion ' s c omput er s y s t em (MTS I I ) .
5 . The St at e as s es s es a s even perc en t s everan c e t ax on t he f air market
value of all c oal ex t rac t ed f rom a s urf ac e min e. Wy o. St at . An n . 3 9 - 1 4 - 1 0 3 (a) , -
1 0 4 (a) . I t als o impos es an ad valorem t ax on t he f air market value of t he g ros s
produc t of all min es in Wy omin g . Wy o. St at . An n . 3 9 - 1 3 - 1 0 2(m) . The t ax rat e
f or ad valorem t ax es is b as ed on t he mill levy f or t he c oun t y where t he min e is
loc at ed. See g en erally , Wy o. St at . An n . 3 9 - 1 3 - 1 0 4 .
6 . The St at e of Wy omin g ' s s everan c e an d ad valorem t ax es are
dis t rib ut ed t o b en ef it s t at e prog rams , c it ies , c oun t ies , pub lic s c hools an d
in s t it ut ion s of hig her learn in g . Wy o. St at . An n . 3 9 - 1 3 - 1 1 1 , 3 9 - 1 4 - 8 0 1 .
Addit ion ally , t he t ax es pay f or wat er an d hig hway in f ras t ruc t ure proj ec t s , an d als o
f un d t he St at e of Wy omin g ' s reven ue ac c oun t s in c ludin g t he St at e' s perman en t
min eral t rus t f un d, perman en t min eral t rus t f un d res erve ac c oun t , g en eral f un d an d
b udg et res erve ac c oun t . I d.
7 . The s urf ac e c oal min es in Wy omin g c on t ain low amoun t s of s ulf ur
an d are g en erally loc at ed in n ort heas t an d s out hwes t port ion s of Wy omin g . The
c oal t hat c omes f rom min es in s out hwes t Wy omin g b urn s at a hig her B rit is h
t hermal un it (B t u) t han t he c oal ex t rac t ed f rom t he Powder R iver B as in in n ort heas t
Pag e 2 of 4
Wyoming. T h e r e f or e , t h e c oa l e x t r a c t e d f r om s ou t h w e s t Wyoming t yp ic a l l y h a s a
h igh e r f a ir ma r ke t v a l u e t h a n t h e c oa l e x t r a c t e d f r om nor t h e a s t Wyoming.
8. I n 2013, t h e c oa l mine s in Ca mp be l l Cou nt y in nor t h e a s t Wyoming
p r od u c e d 352, 804, 596 t ons of c oa l . T h is c oa l h a d a t a x a bl e v a l u e of
S 3, 297 , 7 83, 7 06. Fr om t h is p r od u c t ion, t h e S t a t e c ol l e c t e d $230, 844, 859.42 in
s e v e r a nc e t a x a nd $196, 999, 7 05.25 in a d v a l or e m t a x . T h e c ombine d t ot a l of
$427 , 844, 564.67 in s e v e r a nc e a nd a d v a l or e m t a x e s c ol l e c t e d in 2013 in Ca mp be l l
Cou nt y e q u a l s $1.212696 p e r t on of e x t r a c t e d c oa l .
9. Al s o in 2013, t h e c oa l mine s in s ou t h w e s t Wyoming p r od u c e d
9, 081, 508 t ons of c oa l . T h is c oa l h a d a t a x a bl e v a l u e of $255, 256, 855. Fr om t h is
p r od u c t ion, t h e S t a t e c ol l e c t e d $17 , 867 , 97 9.85 in s e v e r a nc e t a x a nd
$16, 591, 695.58 in a d v a l or e m t a x . T h e c ombine d t ot a l of $34, 459, 67 5.43 in
s e v e r a nc e a nd a d v a l or e m t a x e s c ol l e c t e d in 2013 in s ou t h w e s t Wyoming e q u a l s
$3.7 94488 p e r t on of e x t r a c t e d c oa l .
10. Ac c or d ing t o t h e Or e gon De p a r t me nt of S t a t e La nd 's Au gu s t 18,
2014, d e c is ion d e nying Coyot e I s l a nd T e r mina l , LLC's f il l p e r mit , t h e c omp a ny's
c oa l p or t w h e n c ons t r u c t e d c a n e x p or t e igh t mil l ion me t r ic t ons of c oa l p e r ye a r .
T h e p e r mit a p p l ic a t ion s u bmit t e d by Coyot e I s l a nd T e r mina l , LLC, r e c e iv e d by t h e
Or e gon De p a r t me nt of S t a t e l a nd s on Au gu s t 14, 2014, s t a t e s t h a t t h e c omp a ny
w il l e x p or t l ow- s u l f u r int e r mou nt a in c oa l . I f t h e e igh t mil l ion me t r ic t ons of c oa l
Pa ge 3 of 4
scheduled t o pass t hro ugh t he Co yo t e I slan d Termin al, LLC's po rt each year came
fro m n o rt heast Wyo min g, t he ex t ract ed co al wo uld gen erat e $9,701,564.42 in
sev eran ce an d ad v alo rem t ax es t o t he S t at e based o n t he 2013 co al v aluat io n . I f
t he eight millio n met ric t o n s o f co al scheduled t o pass t hro ugh t he Co yo t e I slan d
Termin al, LLC's po rt each year came fro m so ut hwest Wyo min g, t he ex t ract ed co al
wo uld gen erat e $30,355,906.02 in sev eran ce an d ad v alo rem t ax es t o t he S t at e
based o n t he 2013 co al v aluat io n . Therefo re, if t he co al t hat Co yo t e I slan d
Termin al, LLC, an t icipat es it will ex po rt fro m t his facilit y came fro m
Wyo min g, t he pro j ect ed an n ual eco n o mic ben efit t o t he S t at e o f Wyo min g fro m
t he facilit y wo uld ran ge bet ween appro x imat ely $9.7 millio n t o $30.3 millio n per
year.
DATED t his 5t h day o f S ept ember, 2014.
S TATE OF WYOMI NG
) S S
COUNTY OF LARAMI E
V
Craig aren v ik
The fo rego in g AFFI DAVI T OF CRAI G GRENVI K was subscribed an d
swo rn t o befo re me by Craig Gren v ik t his 5t h day o f S ept ember, 2014.
t i
A L. HOWA NOTARY PUBLI C
COUNTY OF
LARAMI E
S TATE OF
WYOMI NG
MY COMMI S S I ON E I RES MAY 3. 2018
No t ary Public
My Co mmissio n Ex pires: r() 3, )0
Page 4 o f 4
Wit n ess my han d an d o fficial seal.
N\S k-k\S QL.,d)
AFFIDAVIT OF CHRISTOPHER CARROLL
Ch r i s t o p h e r Cano 11, be i ng f i r s t duly s wo r n, de p o s e s and s t at e s o f h i s o wn
kno wle dge :
1. 1 am a ge o lo gi s t i n t h e Ene r gy and Mi ne r al Re s o ur ce s Di v i s i o n o f t h e
Wyo mi ng St at e G e o lo gi cal Sur v e y. I am o v e r 18 ye ar s o f age , I h av e kno wle dge o f
t h e f act s s t at e d h e r e i n e i t h e r f r o m my o wn p e r s o nal kno wle dge o r f r o m t h e r e co r ds
o f t h e Wyo mi ng St at e G e o lo gi cal Sur v e y, and am co mp e t e nt t o t e s t i f y t h e r e t o .
I gr aduat e d wi t h a B ach e lo r ' s De gr e e i n G e o lo gy f r o m t h e U ni v e r s i t y
o f Cali f o r ni a at Sant a B ar bar a i n 1982. I am r e gi s t e r e d as a Pr o f e s s i o nal G e o lo gi s t
i n Wyo mi ng, numbe r 3905. I am als o ce r t i f i e d by t h e Ame r i can Ins t i t ut e o f
Pr o f e s s i o nal G e o lo gi s t s as a Pr o f e s s i o nal G e o lo gi s t , numbe r 11633. I h av e wo r ke d
i n t h e p e t r o le um i ndus t r y and f o r Co lo r ado and Wyo mi ng s t at e go v e r nme nt s as a
ge o lo gi s t o v e r t h e p as t t h i r t y ye ar s . Dur i ng t h at t i me , I h av e wo r ke d o n mat t e r s
r e lat e d t o co al mi ni ng, co al ge o lo gy, and t h e co al i ndus t r y.
3. Pr i o r t o my e mp lo yme nt wi t h t h e Wyo mi ng St at e G e o lo gi cal Sur v e y,
I was t h e co al ge o lo gi s t f o r t h e Co lo r ado G e o lo gi cal Sur v e y f o r f o ur t e e n ye ar s . At
t h e Co lo r ado G e o lo gi cal Sur v e y I wo r ke d o n s t r at i gr ap h i c dat abas e s f o r
Co lo r ado ' s s e v e n co al bas i ns , and co nt r i but e d t o annual mi ne r al and e ne r gy r e p o r t s
t o t h e Co lo r ado Le gi s lat ur e .
Page 1 o f 8
4. For t h e p a s t t wo y e a rs , I h a ve be e n t h e Wy oming S t a t e G e ol ogic a l
S urve y 's c oa l ge ol ogis t . I ma na ge t h e a ge nc y 's c oa l re s e a rc h p rogra m, wh ic h
c ove rs t h e l a rge s t s t a t e p roduc e r of c oa l in t h e Unit e d S t a t e s . I p e rform q ua l it a t ive
a s s e s s me nt s for e ne rgy re s ourc e s in s e dime nt a ry ba s ins . I a l s o p e rform re s ourc e
a s s e s s me nt s of Wy oming's c oa l ba s ins from t h e Powde r Rive r Ba s in in nort h e a s t
Wy oming t o t h e G re a t e r G re e n Rive r Re gion in s out h we s t Wy oming. I de s igne d
a nd up da t e d t h e G e ol ogic a l S urve y 's c oa l we bs it e h t t p ://www.ws gs .uwy o.e du/
Re s e a rc h /E ne rgy /C oa l /D e fa ul t .a s p x a nd c oa l re s ourc e s umma ry re p ort s for t h e
S t a t e of Wy oming's C ons e ns us Re vie w E c onomic G roup (C RE G ) h t t p ://
www.ws gs .uwy o.e du/p ubl ic -info/onl ine p ubs /S umma ry -Re p ort s .a s p x . A ddit iona l l y ,
I ma int a in a nd ma na ge t h e N a t iona l C oa l Re s ourc e D a t a S y s t e m (N C R-D S )
c oop e ra t ive gra nt p roj e c t be t we e n t h e Unit e d S t a t e s G e ol ogic a l S urve y a nd t h e
Wy oming S t a t e G e ol ogic a l S urve y wit h ove r 24, 000 dril l h ol e s a nd me a s ure d
s e c t ion da t a p oint s .
5 . Th e Wy oming S t a t e G e ol ogic a l S urve y is a s e p a ra t e op e ra t ing a ge nc y
unde r t h e e x e c ut ive bra nc h of t h e S t a t e of Wy oming. S e e Wy o. S t a t . A nn.

9 -2-
801 t h rough 9 -2-810. Th e Wy oming S t a t e G e ol ogic a l S urve y 's p urp os e s a re : (1) t o
s t udy , e x a mine , a nd unde rs t a nd t h e ge ol ogy , mine ra l re s ourc e s , a nd p h y s ic a l
fe a t ure s of Wy oming; (2) t o p re p a re , p ubl is h a nd dis t ribut e (fre e or for s a l e )
re p ort s a nd ma p s of Wy oming's ge ol ogy , mine ra l re s ourc e s , a nd p h y s ic a l fe a t ure s ;
Pa ge 2-of 8
and (3) t o p r o v i de i nf o r m at i o n adv i c e , and s e r v i c e s r e l at e d t o t h e ge o l o gy, m i ne r al
r e s o u r c e s , and p h ys i c al f e at u r e s o f Wyo m i ng. Th e age nc y's s t at e d m i s s i o n i s t o
p r o m o t e t h e b e ne f i c i al and e nv i r o nm e nt al l y s o u nd u s e o f Wyo m i ng's v as t
ge o l o gi c , m i ne r al and e ne r gy r e s o u r c e s w h i l e h e l p i ng p r o t e c t t h e p u b l i c f r o m
ge o l o gi c h az ar ds . By p r o v i di ng ac c u r at e i nf o r m at i o n and e xp andi ng kno w l e dge
t h r o u gh t h e ap p l i c at i o n o f ge o l o gi c p r i nc i p l e s , t h e Wyo m i ng S t at e G e o l o gi c al
S u r v e y c o nt r i b u t e s t o t h e e c o no m i c gr o w t h o f t h e S t at e and i m p r o v e s t h e q u al i t y o f
l i f e f o r t h e S t at e 's r e s i de nt s .
6. Th e Wyo m i ng S t at e G e o l o gi c al S u r v e y p r o v i de s i nf o r m at i o n o n t h e
l o c at i o n o f p o t e nt i al nat u r al r e s o u r c e s , as w e l l as t h e p o t e nt i al q u al i t y and q u ant i t y
o f t h e nat u r al r e s o u r c e s i n a gi v e n ar e a. Th e Wyo m i ng S t at e G e o l o gi c al S u r v e y
gai ns i t s ge o l o gi c i nf o r m at i o n and dat a t h r o u gh f i e l d m ap p i ng, r o c k and m i ne r al
s am p l i ng and i de nt i f i c at i o n, gr o u ndw at e r s t u di e s , and t h r o u gh i ndu s t r y s o u r c e s t h at
p r o v i de i nf o r m at i o n t o t h e age nc y. Th i s c r i t i c al i nf o r m at i o n f e e ds i nt o o u r
u nde r s t andi ng and c h ar ac t e r i z at i o n o f t h e nat u r al r e s o u r c e s t h at e xi s t i n a gi v e n
ar e a.
7. A l l o f t h e i nf o r m at i o n and dat a t h e Wyo m i ng S t at e G e o l o gi c al S u r v e y
gat h e r s i s o p e nl y s h ar e d w i t h t h e p u b l i c , go v e r nm e nt l e ade r s and i ndu s t r y t h r Ou gh
w e b s i t e p o s t i ngs , c o ns u l t at i o ns , p r e s e nt at i o ns and f o r m al p u b l i c at i o ns . S t at e and
f e de r al age nc i e s u s e t h e i nf o r m at i o n and dat a p r o v i de d b y t h e Wyo m i ng S t at e
Page 3 o f 8
G e o l o g i c a l Surve y t o d e b a t e a nd d ra f t p o l i c y f o r f ut ure re ve nue p ro j e c t i o ns , a s w e l l
a s t o d e ve l o p p l a ns re g a rd i ng e ne rg y a nd o t h e r na t ura l re s o urc e s , i nc l ud i ng w a t e r.
I nd us t ry us e s t h e i nf o rm a t i o n g a t h e re d b y t h e Wyo m i ng St a t e G e o l o g i c a l Surve y t o
h e l p g ui d e t h e i r re s o urc e a s s e s s m e nt s , e x p l o ra t i o n p l a ns a nd a re a s o f c o m m e rc i a l
a c t i vi t y.
8 . I h a ve re vi e w e d Co yo t e I s l a nd Te rm i na l , LLC's a p p l i c a t i o n f o r a f i l l
p e rm i t f o r t h e c o a l p o rt a t t h e P o rt o f Mo rro w . Th e t e rm "l o w- s ul f ur i nt e rm o unt a i n
c o a l " us e d i n t h e a p p l i c a t i o n i s g e ne ra l l y und e rs t o o d t o re f e r t o c o a l b e d s f o und i n
t h e Ro c ky Mo unt a i n a nd No rt h e rn G re a t P l a i ns re g i o ns o f t h e s t a t e s o f No rt h
Da ko t a , Mo nt a na , Wyo m i ng , Ut a h , Co l o ra d o , a nd Ne w Me x i c o . Th e Cre t a c e o us
a nd Te rt i a ry c o a l s f o und i n t h o s e a re a s a re l o w s ul f ur i n na t ure .
9 . By d e f i ni t i o n, c o a l w i t h < 1. 2% s ul f ur c o nt e nt i s c o ns i d e re d l o w s ul f ur
f o r s t e a m c o a l p urp o s e s . Wyo m i ng c o a l i s s ub- b i t um i no us ra nk l o w s ul f ur c o a l
b e c a us e i t c o nt a i ns s ul f ur c o nc e nt ra t i o ns < 0. 7%. Co a l m i ne d i n t h e P o w d e r Ri ve r
Ba s i n t o d a y h a s p a rt i c ul a rl y l o w a m o unt s o f s ul f ur, ra ng i ng f ro m 0. 2% t o 0. 6%
(Ke ys t o ne Co a l I nd us t ry Ma nua l , 2010). Th e b i t um i no us c o a l s o f s o ut h w e s t
Wyo m i ng a re s i m i l a rl y c o ns i d e re d l o w s ul f ur i n na t ure b e c a us e s ul f ur c o nt e nt i s
c h a ra c t e ri s t i c a l l y re l a t e d t o t h e d e p o s i t i o na l h i s t o ry ra t h e r t h a n d i f f e re nc e s i n c o a l
ra nk.
10. Th e a m o unt o f s ul f ur i n a c o a l d e p o s i t i s i m p o rt a nt b e c a us e s ul f ur
P a g e 4 o f 8
compounds from power pl a nt emissions a re a source of a cid ra in. Low- sul fur coa l
use a nd upda t ed emission cont rol t ech nol og ies a re t h e t wo most import a nt
environment a l fa ct ors for reducing a cid ra in a nd ot h er h a za rdous a ir pol l ut a nt s.
Most of t h e coa l produced in t h e ea st ern Unit ed S t a t es must be cl ea ned a nd wa sh ed
in prepa ra t ion pl a nt s for use a s st ea m coa l beca use t h e a vera g e coa l produced in
t h ere is > 0. 8% sul fur. I n cont ra st , bit uminous coa l s from Ut a h a nd Col ora do, sub-
bit uminous coa l s from t h e Powder River Ba sin, a nd t h e T ert ia ry l ig nit es from
Nort h Da kot a a l l cont a in l ow a mount s of sul fur a nd t ra ce el ement s of h a za rdous a ir
pol l ut a nt s.
1 1 . I n t erms of product ion, Wy oming is t h e l ea ding coa l producing st a t e
wit h 388 mil l ion sh ort t ons of coa l produced in 201 3. T h is a mount of product ion
wa s down 3% from t h e 201 2 product ion of 401 mil l ion sh ort t ons, but is st il l more
coa l t h a n t h e next six h ig h est coa l producing st a t es combined (West V irg inia ,
Kent ucky , Pennsy l va nia , I l l inois, T exa s, a nd Mont a na ). I n 2008 Wy oming coa l
mines produced a record 466. 3 mil l ion t ons of coa l from t h e sa me coa l mines t h a t
a re a ct ive t oda y .
1 2. T h ese product ion fl uct ua t ions a re driven by ma rket dema nd for coa l ,
not t h e mines' ca pa cit y t o produce t h e coa l . According l y , t h e 3% decl ine in
product ion from Wy oming coa l mines from 201 2 t o 201 3 represent s a ma rket
dema nd ch a ng e. I f new ma rket s open up, or t h e current dema nd for Wy oming coa l
Pa g e 5 of 8
i n c r e a s e s , t h e Wyomi n g c oa l mi n e s c oul d r e s ume h i gh e r p r oduc t i on r a t e s t o me e t
t h e n e w ma r ke t de ma n ds . I f a ma r ke t be c a me a v a i l a bl e n e xt ye a r , Wyomi n g mi n e s
h a v e t h e c a p a c i t y t o e f f e c t i v e l y s up p l y up t o s e v e n t y- f i v e mi l l i on t on s of c oa l
a n n ua l l y f r om t h e s t e a m c oa l mi n e op e r a t i on s ys t e m i n Wyomi n g's Powde r Ri v e r
B a s i n .
1 3 . I n t e r ms of r e s e r v e s , Wyomi n g h a s 1 6 5 .1 bi l l i on s h or t t on s of
r e c ov e r a bl e c oa l , a n d 1 2 6 .5 bi l l i on t on s of t h a t a r e f oun d i n t h e Wyomi n g p a r t of
t h e PoWde r Ri v e r B a s i n (modi f i e d f r om USGS, 2 01 3 ). I n t e r ms of c oa l t h a t me e t s
e n v i r on me n t a l c omp l i a n c e r e qui r e me n t s (c oa l < 1 .2 % s ul f t i r ), Wyomi n g's Powde r
Ri v e r B a s i n i s t h e l e a di n g c oa l ba s i n i n t h e i n t e r moun t a i n we s t . Ov e r 90% of
Wyomi n g's Powde r Ri v e r B a s i n c oa l r e s e r v e s c on t a i n < 1 .2 % s ul f ur . On l y
Mon t a n a a n d I l l i n oi s r i v a l Wyomi n g f or r e s e r v e s . Howe v e r , 90% of I l l i n oi s c oa l
c on t a i n s > 1 .2 % s ul f ur . F ur t h e r , i n dus t r i a l c oa l c on s ume r s f a v or c oa l f r om
Wyomi n g's Powde r Ri v e r B a s i n ov e r a n y ot h e r p r oduc t i on l oc a t i on i n t h e
i n t e r moun t a i n r e gi on be c a us e of f a v or a bl e c os t s a n d a v a i l a bl e t r a n s p or t a t i on a n d
mi n i n g i n f r a s t r uc t ur e .
1 4 . Wyomi n g's Powde r Ri v e r B a s i n h a s n ume r ous r a i l r oa ds a n d c oa l
l oa di n g a n d h a n dl i n g f a c i l i t i e s . Nor t h e r n Powde r Ri v e r B a s i n c oa l c a n be s h i p p e d
t o t h e Por t of Mor r ow f a c i l i t y i n Or e gon on t h e B ur l i n gt on Nor t h e r n Sa n t a F e
(B NSF ) a n d Un i on Pa c i f i c (UP) r a i l l i n e s t h a t r un t h r ough Mon t a n a , I da h o, a n d
Pa ge 6 of 8
Washington. Southern Powder River Basin c oal c an be shipped to the Port of
Morrow on UP l ines that run through Utah, Idaho, and Oregon.
1 5 . Instead of opening new c oal mine fac il ities in Washington or Montana
to provide c oal to the Port of Morrow for the Coyote Isl and Terminal proj ec t, it is
c onsidered muc h more ec onomic al to produc e c oal from the ex isting Powder River
Basin c oal mines that are al ready operating bel ow c apac ity. Surfac e disturbanc e
woul d al so be minimized by util izing ex isting, permitted c oal mines. Coal
shipments to the Port of Morrow from Wyoming's Powder River Basin, as
opposed to most other intermountain c oal mines, is al so c onsidered muc h more
ec onomic al bec ause of short transportation routes and the ex istenc e of substantial
rail infrastruc ture in the Powder River Basin.
1 6 . When c ompared to other c oal deposits in the intermountain region, it
is more l ik el y than not that the c oal antic ipated to be shipped through the Port of
Morrow wil l c ome from mines in Wyoming. A higher vol ume of c oal c an be
produc ed faster from the Wyoming Powder River Basin c oal mines than anywhere
el se in the United States. Moreover, this high vol ume of c oal c an be shipped to the
Port of Morrow in a shorter period of time mak ing the c oal from ac tive Wyoming
c oal mines the most ec onomic al l y pl ausibl e sourc e for the Coyote Isl and Terminal
proj ec t.
1 7 . Other states suc h as Col orado and Utah have higher heat val ue c oal ,
Page 7 of 8
b u t t h e mine s in t h o se st a t e s l a c k t h e r a il l ine inf r a st r u c t u r e a nd dir e c t r a il se r v ic e
t o t h e P a c if ic No r t h we st t h a t t h e mine s in t h e Wyo ming P o wde r Riv e r B a sin' s
h a v e a l r e a dy in p l a c e . F u r t h e r , no c o a l p r o du c t io n a r e a o t h e r t h a n Wyo ming' s
P o wde r Riv e r B a sin h a s t h e e x c e ss c a p a c it y o r t h e a b il it y t o r a mp u p p r o du c t io n t o
t h e a mo u nt o f c o a l ne c e ssa r y t o se r v ic e t h e Co yo t e I sl a nd Te r mina l p r o j e c t .
Ac c o r dingl y, t h e c o a l mine s in Wyo ming' s P o wde r Riv e r B a sin a r e c u r r e nt l y r e a dy
a nd a b l e t o p r o v ide t h e P a c if ic Rim ma r k e t wit h e nv ir o nme nt a l l y c o mp l ia nt c o a l .
DATED t h is 8 t h da y o f Se p t e mb e r , 2014.
STATE OF WYOMI NG
) SS
COUNTY OF ALB ANY
Th e f o r e go ing AF F I DAVI T OF CHRI STOP HER CARROLL wa s
su b sc r ib e d a nd swo r n t o b e f o r e me b y Ch r ist o p h e r Ca r o l t h is 8 t h da y o f
Se p t e mb e r , 2014.
B r ia n Le Ja mb r e - No t a r y P u b l ic
Co u nt y o f
Al b a ny
St a l e o f
Wyo ming
Co mmf a a E e a Se p t o mt a w 23 , 2017
My Co mmissio n Ex p ir e s:
~~~~~~~~
Wit ne ss my h a nd a nd o f f ic ia l se a l .
No t a r y P u b l ic
P a ge 8 o f 8