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Frequently Asked Questions
Q: When was the project initiated and what agreements are in place?
A: The Crow Nation and AAEC signed the original letter of intent in December 2007 and thereafter negotiated several definitive agreements (totaling almost 1,000 pages) that were executed and approved by the Executive Branch and Legislature Branch of the Crow Tribe with subsequent approvals by U.S. Department of Interior. Under these agreements, the Crow Nation has committed coal and water resources and AAEC has committed to provide funding for project development and management. These agreements provide the basis for the development, construction and operation of the mine and CTL plant as well as provides the profit sharing arrangements between the parties and future investors.
Q: Why was the Crow Reservation chosen for this project?
A: The coal located on the Crow Reservation represents a very large contiguous resource (approximately 3% of the total U.S. coal supply) that the Crow leadership wished to develop for the benefit of their people. AAEC has the technical expertise and project management experience as well as the shared vision of a collaborative project with the Crow Tribe to bring economic development to one of the highest unemployment regions of the country.
Q: What changes have been made to project since the original project announcement?
A: The Many Stars Project was announced in August 2008 as primarily a CTL (Coal-To-Liquids) project. However, project planners have recently augmented the focus of the Project to include much earlier development of coal mining operations. The recent surge in coal prices in the Asian markets coupled with advancements in beneficiation (coal upgrading) technologies now provide a faster path to first cash flow with significantly lower capital exposure. Furthermore, the US domestic utility sector is expected to transition away from Appalachian coal to Western US resources. Therefore, the Project’s near-term emphasis will be to provide needed supply to the US domestic market and the rapidly expanding international utility sector, while still continuing longer-term planning to develop a CTL plant as an added opportunity once market conditions and US Government energy policies provide an improved economic foundation for such CTL activities.
Q: What are the next steps?
A: During the upcoming 12–18 months, our project development continues along six fronts:
1. Coal resource assessment
2. Coal beneficiation planning
3. Off-take agreements planning
4. Environmental permitting
5. Mine planning
6. CTL long-term planning
Q: What is the plan for CO2 produced from the CTL plant?
A: The majority will be sequestered in deep saline aquifers below the Crow Reservation or will be captured and supplied by pipeline to regional oil fields for use in enhanced oil-recovery projects.
Q: Who will own and operate the mine and the plant?
A: Two private companies have been established to own and operate the mine and plant; Many Stars Mining LLC and Many Stars CTL LLC. Both companies will be managed by AAEC and the Crow Nation.
Q: How will the coal be mined?
A: The coal will be mined using surface mining methods currently in use on Crow Reservation lands. The coal will be transported to the plant by enclosed conveyors. Overburden is returned to the mine, graded to contour, and replanted with native trees and grasses.
Q: Where will the plant and mine be located?
A: A final decision on mine and plant locations will be made after additional evaluations over the next year. The plant and mine will be located in close proximity to each other to minimize coal transportation.
Q: Will the CTL plant burn coal to produce the power needed to run it?
A: No. The plant will ultimately produce all of its own power needs using byproduct fuel gas rather than coal. The fuel gas will be burned in gas turbines, rather than in conventional boilers, to maximize the energy efficiency of the process.
Q: What does the project give back to the community?
A: In addition to creating up to 2,000 construction jobs and up to 900 permanent jobs, the project will stimulate the creation of numerous regional support industries. The project will also directly provide scholarships for Crow Nation students to attend Montana universities, and will provide funding for training programs that will be needed to prepare future employees.
Q: How will the fuel be transported from the CTL plant?
A: Fuel will be transported by pipeline and rail.
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