Armstrong Energy Resources; Notice of Intent To Prepare a Joint Environmental Impact Statement, Conduct Public Scoping Meeting and Site Visits, and Determine the Feasibility of Forming a Cooperative Consultation Process Team With Interested Parties

DEPARTMENT OF ENERGY

[Project Nos. 11499-000 and 11500-000-Tennessee]

Armstrong Energy Resources; Notice of Intent To Prepare a Joint

Environmental Impact Statement, Conduct Public Scoping Meeting and Site

Visits, and Determine the Feasibility of Forming a Cooperative

Consultation Process Team With Interested Parties

July 8, 1996.

The Federal Energy Regulatory Commission (FERC) and the Tennessee

Valley Authority (TVA) have received proposals from Armstrong Energy

Resources to construct and operate the 1,500 megawatt Laurel Branch

Pumped Storage Project, FERC No. 11499-000, and the 1,000 megawatt

Reynolds Creek Pumped Storage Project No. 11500-000. The Laurel Branch

Project would be located in Bledsoe County, Tennessee, seven miles

northeast of Dunlap, Tennessee. The Reynolds Creek project would be

located in Sequatchie County, Tennessee, approximately five miles

northwest of Dunlap, Tennessee.

The FERC staff has determined that Federally licensing these

projects pursuant to provisions of the Federal Power Act would

constitute a major federal action significantly affecting the quality

of the human environment. Additional federal involvement with these

projects include TVA's approval of project shoreline structures under

Section 26a of the TVA Act, providing the ``pump-up'' power for the

projects, and, possibly purchasing some of the generation from the

projects. Therefore, FERC and TVA staff intend to prepare an

environmental impact statement (EIS) on the hydroelectric projects in

accordance with the National Environmental Policy Act (NEPA). TVA has

requested that FERC be a joint lead cooperating agency in the

preparation of an EIS and FERC has agreed to become a joint lead

agency. Additionally, the U.S. Army Corps of Engineers has agreed to be

a cooperating agency because of its jurisdiction pursuant to Section

404 of the Clean Water Act.

The review process being utilized for the projects will initiate

environmental compliance under NEPA subsequent to the filing of the

Section 26(a) permit application with TVA and concurrently with the

preparation of a FERC license applications. Under the joint cooperative

EIS process, scoping and draft EIS preparation will occur prior to the

filing of a final license applications with FERC.

Active participation by interested federal and state agencies and

members of the public will be essential for this process to be

successful. TVA and FERC staff will determine at the scoping meetings

whether Federal and State resource agencies, local and regional

conservation organizations, local municipalities and other parties are

interested in participating in a Cooperative Consultation Team Process

(CCP) to assist the staff in development of the EIS scoping process.

CCP team members would assist in identifying areas of interests,

issues, required scientific study objectives and methodologies, provide

information or data, define project alternatives and other matters of

interest to all parties. To enhance public input the TVA and FERC staff

will actively engage and work with the participants throughout the

process.

The EIS will objectively consider both site-specific and cumulative

environmental impacts of the projects and reasonable alternatives. It

will also address economic, financial and engineering analysis. A draft

EIS will be circulated to all interested parties for review. Comments

will also be requested. FERC and TVA will also hold a joint public

meeting to elicit comments on the draft EIS. All comments filed on the

draft EIS will be analyzed by staff and will be considered in a final

EIS. The staffs' conclusions and recommendations will be presented to

the Tennessee Valley Authority and the Federal Energy Regulatory

Commission for consideration in reaching final permit and licensing

decisions, respectively.

Scoping Process

FERC and TVA will jointly conduct two scoping meetings on August 6,

1996. These meetings are scheduled as follows:

An agency scoping meeting will be held at Bledsoe County High

School, Highway 127 South in Pikeville, Tennessee, beginning at 10:00

a.m., CDT.

A public scoping meeting will also be held at Bledsoe County High

School with registration beginning at 5:00 p.m. and the meeting

scheduled from 5:30 to 9:00 p.m., CDT. It will not be necessary for

participants to stay for the whole meeting in order to have their

comments recorded. Anyone needed sign language interpretation or other

special arrangements, please contact Jill Elmendorf at (423) 632-6592

no later than Monday, July 29.

The meetings will be recorded by a stenographer and will become a

part of the formal record of the FERC and TVA proceeding. Individuals

presenting statements at the meetings will be asked to sign in before

the meeting starts and to clearly identify themselves for the record.

Interested individuals, organizations, and agencies are invited to

comment on the scope of the proposed EIS. Scoping will help ensure that

a full range of issues related to these proposals are addressed in the

EIS, an also will identify significant or potentially significant

impacts that may result from the proposed projects.

To help focus discussions at the meetings, a preliminary scoping

document (Scoping Document I) outlining subject areas to be addressed

on the EIS will be mailed to agencies and interested individuals.

Preliminary Scoping Document I will also be available at the scoping

meetings.

[[Page 36724]]

At the scoping meetings, FERC and TVA staff will: (1) Identify

preliminary environmental issues related to the proposed project; (2)

identify preliminary resource issues that are not important and do not

require detailed analysis; (3) identify reasonable alternatives to be

addressed in the EIS; (4) solicit from the meeting participants all

available information, especially quantified data, on the resource

issues; and (5) encourage statements from experts and the public on

issues that should be analyzed in the EIS, including points of view in

opposition to, or in support of, the staffs' preliminary views.

Persons choosing not to speak at the meetings, but who have views

on the issues or information relevant to the issues, may submit written

statements for inclusion in the public record at the meetings. In

addition, written scoping comments may be filed with Lois Cashell,

Secretary, Federal Energy Regulatory Commission, 888 First Street, NE.,

Washington, DC 20425, with Linda Oxendine, Senior Specialist, Tennessee

Valley Authority, 400 West Summit Hill Drive, WT8C-K, Knoxville, TN

37902. All written correspondence should clearly show the following

captions on the first page: Laurel Branch Pumped Storage Project, FERC

Project No. 11499-000, and Reynolds Creek Pumped Storage Project, FERC

Project No. 11500-000.

Site Visit

A site visit to the proposed project location is planned for

Monday, August 5 at 2:00 p.m. CDT. Participants will gather at Dunlap,

Tennessee. Please contact Jill Elmendorf at (423) 632-6592 no later

than Thursday, August 1 for reservations and information.

Consultation With the State Historic Preservation Officer

With this notice, we are initiating consultation with the Tennessee

State Historic Preservation Officer (SHPO), as required by Sec. 106 of

the National Historic Preservation Act, and the regulations of the

Advisory Council on Historic Preservation, 36 CFR 800.4.

Additional Scientific Study Requests

In accordance with Section 4.32(b)(7) of the FERC regulations, if

any resource agency, SHPO, Indian Tribe, or person believes that an

additional scientific study should be conducted in order to form an

adequate, factual basis for complete analysis of these projects on its

merits, they must file a request for the study with the FERC, together

with justification for such request, not later than 60 days from the

date of this notice and serve a copy of the request on the potential

applicant.

For Further Information on This Process, please contact Eddie R.

Crouse, FERC, (202) 219-2794, or Linda Oxendine, TVA, (423) 632-3440.

Lois D. Cashell,

Secretary.

[FR Doc. 96-17714 Filed 7-11-96; 8:45 am]

BILLING CODE 6717-01-M