INTRODUCTION 



BACKGROUND 



In 1974, Dreyer Brothers, Inc., a wholly-owned subsidiary of Burlington 

 Northern, Inc., notified the state of Montana that it proposed to develop a 

 coal processing facility in McCone County. Governor Thomas L. Judge subse- 

 quently designated the Department of Natural Resources and Conservation (DNRC) 

 as the lead agency in any state actions taken on the proposal. Since that 

 time, DNRC has coordinated its activities on the proposal with all state 

 agencies involved and developed an overall study plan that would acquire in- 

 formation sufficient for all state agencies. In the event that 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 accor- 

 dance with the act, the company chose to contract with DNRC to initiate the 

 portions of the studies which would ultimately be required by law if the pro- 

 ject proceeds. In general, the contract called for a baseline study and the 

 coordination of DNRC 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 in conducting the studies. 



CIRCLE WEST PROJECT 



Although an application for the project nad not been submitted at the time 

 this study was made, long-range plans which Dreyer Brothers, 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. (1973) include: 



1. The manufacture of up to 27,216 metric tons/day (3,000 tons/day) of 

 ammonia, requiring up to 81,630 metric tons/day (9,000 tons/day) of lignite and 

 up to 1.1 X 10' m^/yr (9,000 acre-feet/yr) of water; 



2. The manufacture of up to 46,350 metric tons/day (5,000 tons/day) of 

 methanol -methyl fuel, requiring up to 90,700 metric tons/day (10,000 tons/day) 

 of lignite and up to 9.9 X 10^ m /yr (8,000 acre-feet/yr) of water; 



3. Tne manufacture of up to 30,000 barrels/day of synthetic diesel fuel 

 oil, requiring up to 149,655 metric tons/day (16,500 tons/day of lignite and up 

 to 1.8 X 10' m^/yr (15,000 acre-feet/yr) of water; 



