INTRODUCTION 



BACKGROUND 



In 1974, Ureyer Brothers, Inc., a wholly-owned subsidiary of Bur- 

 lington Northern, Inc., notified the state that it proposed to develop 

 a coal processing facility in McCone County, Montana. Governor Thomas L. 

 Judge subsequently designated the Department of Natural Resources and 

 Conservation (DiNRC) as the lead agency in any actions taken on the pro- 

 posal. Since that time, DNRC has coordinated its activities on the pro- 

 posal with all state agencies involved and developed an overall study 

 plan that would acquire information sufficient for all state agencies. 

 In the event tnat Dreyer Brothers, Inc. decides to proceed with the Circle 

 West project, DNRC would continue to coordinate state agency action in 

 developing a joint environmental impact statement. 



At the time this study was made, Dreyer Brothers, Inc. had not 

 applied to DNRC for a certificate under the Major Facility Siting Act. 

 However, in accordance with the act, the company chose to contract with 

 DNRC to initiate the portions of studies which would ultimately be re- 

 quired by law if the project proceeds. In general, the contract called 

 for a baseline study and the coordination of DNRC action with all levels 

 of government as well as other interested parties. Consequently, DNRC 

 conducted baseline studies resulting in information that will be available 

 for preparation of any environmental impact statements. Also, since the 

 contract called for DNRC to consult all levels of government, DNRC contacted 

 the affected federal, state, and local agencies and sought their continued 

 involvement in developing the study plan and conducting studies. 



CIRCLE WEST PROJECT 



Although an application for the project had not been submitted at 

 the time this study was made, long-range plans which Dreyer Brother, Inc. 

 provided to DNRC (pursuant to provisions of the Montana Major Facility 

 Siting Act) outlined the scope of the proposed action. The long-range 

 plans for the Circle West Project, as submitted by Dreyer Brothers, Inc. 

 include: 



1. The manufacture of up to 3,000 tons per day of ammonia, requiring 

 up to 9,000 tons per day of lignite and up to 9,000 acre feet per year of 

 water; 



2. The manufacture of up to 5,000 tons per day of methanol -methyl 

 fuel, requiring up to 10,000 tons per day of lignite and up to 8,000 

 acre-feet per year of water. 



