MVCAC August 2008

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Longview Cancels 49% Auction
by Paula Hunt 17 Aug '08

17 Aug '08

Longview Cancels Auction An August 15, 2008 article states that the owners of Longview Pwer, LLC, First Reserve Corp. (90% owner) and GenPower Holdings (10% owner), cancelled the auction of a 49% minority stake in the power plant because several bidders wanted equal control. The article also says that the original financing agreement states that if the ownership changes, First Reserve must pay back $1.15 billion to Goldman Sachs. Now Longview will go for "mezzanine financing." Apparently they had abandoned this type of financing in June due to tight credit. The details are reportedly still being worked out, but they hope to close the new financing in September 2008. The article says Longview is expected to start up 2011, has a guaranteed heat rate of 8,564 Btu per kWh, and has a five-year contract with PPL EnergyPlus for 300 of the plant's 695 megawatts, with the rest being sold on a merchant basis "on the grid" into the western PJM market.

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Re: [MVCAC] Longview Power in the news
by James Kotcon 10 Aug '08

10 Aug '08

The Daily Mail article says the cooling water willl come from the Monongahela River (abnout a mile to the east". This implies that the intake will be in WV, contrary to the article in the Greene County paper last month. The article fails to mention the support from the WV Economic Development Office. I wonder if UMWA is happy with state support for a non-union, out-of-state mine? JBK >>> Paula Hunt <pjhunt(a)xemaps.com> 08/09/08 6:59 PM >>> I am subscribed to Google News Alerts for "Longview Power" and recently received alerts for what is essentially the same article by the same author in three different news outlets. The first is August 8, 2008 Charleston Daily Mail: http://www.dailymail.com/Business/200808070355 . The other two are http://www.istockanalyst.com/article/viewarticle+articleid_2491731.html and http://www.redorbit.com/news/business/1515457/mammoth_power_plant_taking_sh… . It says Longview is a "sprawling" complex and "... the 10,000 tons of steel used in the boiler building and the 2,800 tons in the turbine deck were made and fabricated in China, shipped to Houston, then trucked overland to the construction site." How many West Virginia workers were in China for the fabrication, I wonder? Longview Power's general manager Charlie Huguenard claims that the project "is ahead of schedule and on budget. " I suppose that depends on which schedule and which budget you choose. .... certainly not the $940 million plant that will be online in 2007 budget and schedule we were told originally. Duane sent out a July 30, 2008 letter to this list from Longview's attorney (Leonard Knee) to the WV Public Service Commission that said, Longview is about 40% complete with the construction of the Power Plant. Most of the foundations have been constructed, and steel erection is well under way. To date, Longview has spent about $770 million of the anticipated $1.8 billion construction cost, About 550 craft workers are currently employed. By the end of the year, approximately 1500 craft workers will be working, with the number growing to about 2000 craft workers in 2009. Plant construction is ahead of schedule, and the plant is on track to be operational in the last quarter of 2010. It will be interesting to see if there ever will be 1,500 or 2,000 workers on that site. Nothing else they have said has come to pass. The photos in the article show the steel frame. A resident of the Fort Martin Community pointed out to me that no equipment (boilers, etc.) is on site, and wonders how the large equipment will be squeezed into the erected steel frame if it ever does get on site. Apparently, power plants are usually built one floor at a time with the equipment being installed as they go up with the steel. It doesn't look 40% done. The coal is apparently all coming out of Pennsylvania and will be delivered to the site by a 4+ mile conveyor and by truck. I assume there will be no WV severance tax on that coal (?). How does that work? - paula

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Longview Power in the news
by Paula Hunt 09 Aug '08

09 Aug '08

I am subscribed to Google News Alerts for "Longview Power" and recently received alerts for what is essentially the same article by the same author in three different news outlets. The first is August 8, 2008 Charleston Daily Mail: http://www.dailymail.com/Business/200808070355 . The other two are http://www.istockanalyst.com/article/viewarticle+articleid_2491731.html and http://www.redorbit.com/news/business/1515457/mammoth_power_plant_taking_sh… . It says Longview is a "sprawling" complex and "... the 10,000 tons of steel used in the boiler building and the 2,800 tons in the turbine deck were made and fabricated in China, shipped to Houston, then trucked overland to the construction site." How many West Virginia workers were in China for the fabrication, I wonder? Longview Power's general manager Charlie Huguenard claims that the project "is ahead of schedule and on budget. " I suppose that depends on which schedule and which budget you choose. .... certainly not the $940 million plant that will be online in 2007 budget and schedule we were told originally. Duane sent out a July 30, 2008 letter to this list from Longview's attorney (Leonard Knee) to the WV Public Service Commission that said, Longview is about 40% complete with the construction of the Power Plant. Most of the foundations have been constructed, and steel erection is well under way. To date, Longview has spent about $770 million of the anticipated $1.8 billion construction cost, About 550 craft workers are currently employed. By the end of the year, approximately 1500 craft workers will be working, with the number growing to about 2000 craft workers in 2009. Plant construction is ahead of schedule, and the plant is on track to be operational in the last quarter of 2010. It will be interesting to see if there ever will be 1,500 or 2,000 workers on that site. Nothing else they have said has come to pass. The photos in the article show the steel frame. A resident of the Fort Martin Community pointed out to me that no equipment (boilers, etc.) is on site, and wonders how the large equipment will be squeezed into the erected steel frame if it ever does get on site. Apparently, power plants are usually built one floor at a time with the equipment being installed as they go up with the steel. It doesn't look 40% done. The coal is apparently all coming out of Pennsylvania and will be delivered to the site by a 4+ mile conveyor and by truck. I assume there will be no WV severance tax on that coal (?). How does that work? - paula

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Lung disease in WV and US
by Duane330＠aol.com 04 Aug '08

04 Aug '08

_Two New Asbestos Suits Filed in West Virginia_ (http://www.asbestos-post.com/two-new-asbestos-suits-filed-in-west-virginia.…) July 26th, 2008 Two new asbestos-related lawsuits filed in West Virginia in June name more than 100 defendants between them. The first was filed by Mary Kathryn Black on behalf of the estate of her deceased husband, Steve Black. The second was filed on behalf of Joseph M. Hutchison III and his wife, Ann Hutchison. Both lawsuits were filed in Kanawha County Circuit Court on June 6. Mary Kathryn Black, the widow of steelworker Steve Black, claims that her husband died as a result of asbestos exposure which caused him to develop lung cancer and esophageal cancer. Steve Black worked for companies such as Armco Steel. Other defendants in the suit include six corporations which reside in West Virginia: McJunkin Corporation, Ohio Valley Insulating, State Electric Supply, Union Boiler Company, Vimasco Corporation and West Virginia Electric Supply. The suit alleges that Steve Black developed asbestos-related cancers as a result of working for companies involved in the manufacture, distribution, sale, installation, and removal of products containing asbestos. According to the lawsuit, Steve Black’s lifespan and enjoyment of life was greatly diminished as a result of his asbestos exposure. His widow, Mary Kathryn Black, is seeking compensatory and punitive damages. The second lawsuit was filed on June 6 on behalf of Joseph M. Hutchison III and his wife, Ann Hutchison. The lawsuit names a total of 79 different defendant companies, and claims that the defendants are responsible for Joseph M. Hutchison III having developed asbestosis and mesothelioma. Joseph Hutchison worked in South Charleston as a laborer, and was employed with Union Carbide. Hutchison was also student and faculty member of West Virginia University. The lawsuit claims that Joseph Hutchison was exposed to asbestos while working with and around products in use at sites where he was employed. The sites were located in and across West Virginia. The suit includes fifteen counts, relating to the financial, physical, and emotional losses suffered by both Joseph and Ann Hutchinson. They are seeking compensatory and punitive damages for their losses. [Note. Joseph Hutchinson died July 26th in Morgantown, as shown in the Obituary below. He was a leader in the founding of the National Youth Science Camp, held each year at Bartow in West Virginia. For the National Youth Science Camp, see the following: _http://www.nysc.org/_ (http://www.nysc.org/) ] >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> _Mass Asbestos Lawsuit Dismissal in West Virginia_ (http://www.asbestos-post.com/mass-asbestos-lawsuit-dismissal-in-west-virgin…) July 18th, 2008 A mass dismissal of asbestos-related lawsuits in West Virginia has left many plaintiffs dismayed over the decision. People suffering from asbestos-related diseases such as asbestosis and mesothelioma must now wait much longer for their day in court. The West Virginia Supreme Court of Appeals this week dismissed more than one thousand asbestos-related lawsuits laid by railroad workers against the companies they once worked for. The more than one thousand plaintiffs had filed lawsuits against their employees, CSX Transportation and Norfolk Southern. Previously, Circuit Judge Arthur Recht of Wheeling had dismissed the lawsuits. Following an appeal by plaintiffs, the West Virginia Supreme Court of Appeals upheld Circuit Judge Arthur Recht’s decision to dismiss all one thousand suits. In upholding the decision, the Supreme Court of Appeals has rejected a plea that the United States Constitution provides every American with the right to sue in West Virginia, regardless of whether or not they have a real connection to the state. In West Virginia, as in many other states, a plaintiff can file a lawsuit even if they live out of state. To do so, however, they must be able to show that either a plaintiff or a defendant in the case has some type of connection to West Virginia. The Court chose to ignore a 2006 decision known as Morris vs. Crown Equipment, which had granted West Virginia jurisdiction to a dispute which originated in another state. The Court says that this decision did not apply because in the Morris case, one of the defendants was a West Virginia corporation. The claims were filed under the Federal Employers Liability Act, which applies to railroad and some other types of workers, regardless of where they live. After the suits had been filed, the Supreme Court of Appeals consolidated them into the Kanawha County Circuit Court, and assigned them all to Judge Recht. The railway companies had already asked for a move to dismiss the cases while the Supreme Court of Appeals was discussing whether or not the plaintiffs could file their suits in West Virginia. Judge Recht then granted the defendants ’ motion, saying that the Morris case was not applicable, and that the railroad workers could not file suit in West Virginia. The plaintiffs’ appeal was subsequently rejected, and now all one thousand cases have been freed and may be tried in other state courts. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> _ALA Report finds Deaths from Lung Disease Increasing_ (http://www.asbestos-post.com/ala-report-finds-deaths-from-lung-disease-incr…) July 26th, 2008 The latest report from the American Lung Association, entitled Lung Disease Data, indicates that death rates due to lung disease are on the increase, and death rates due to other leading causes of death, such as cancer, heart disease, and stroke, are decreasing. The American Lung Association publishes the Lung Disease Data report periodically to provide a resource with information about information about lung disease trends in the United States for the media, healthcare professionals, researchers, patients, and the public. The report indicates that lung disease rates are increasing so rapidly that chronic obstructive pulmonary disease may be the third leading cause of death as early as 2020. Lung diseases include any diseases or disorders in which impairment of lung function is an effect or result of the condition. Lung diseases may be caused by cigarette smoking, exposure to smoke, air pollution, and exposure to occupational hazards such as asbestos and silica dusts. Bernadette Toomey, President and CEO of the American Lung Association, says, “Every year, about 400,000 Americans die from lung disease. With our report, Lung Disease Data, we hope to provide valuable information on lung disease to the public, especially to people who become ill and their family members who are caring for them.” Types of lung disease covered in the ALA report data include the following: • Obstructive lung diseases such as chronic obstructive pulmonary disease and asthma, as well as chronic bronchitis and emphysema. All of these diseases affect the person’s airways, and limit or block the flow of air in or out of the lungs. • Lung cancer, caused by uncontrolled growth of abnormal lung cells. Lung cancer may be caused by a variety of factors, including cigarette smoking and exposure to asbestos. • Infectious diseases such as influenza, pneumonia, respiratory syncytial virus, and tuberculosis, caused by viruses or bacteria which can affect both lung tissue and the membrane which surrounds, protects, and supports the lungs. • Respiratory failure, pulmonary edema, pulmonary embolism and pulmonary hy-pertension. These diseases are caused by problems with gas exchange and blood flow in the lungs. • Pulmonary fibrosis and sarcoidosis. These diseases are characterized by stiffen¬ing and scarring of the lungs, which prevents normal lung function. • Occupational diseases, such as mesothelioma and asbestosis, caused by expo¬sure to hazardous substances such as asbestos and silica dust. These occupational diseases have no other known causes apart from exposure to inhalable toxic dusts. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Source of above three entries: _http://www.asbestos-post.com/_ (http://www.asbestos-post.com/) >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Submitted by: Duane Nichols, Ph.D., President of CLEAR [Cheat Lake Environment & Recreation Assn.] and Spokesperson for MonValley Clean Air Coalition [MVCAC], Address: 330 Dream Catcher Circle, Morgantown, WV 26508 Phone: 304-599-8040 >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> OBITUARY FOR JOSEPH HUTCHINSON **************Looking for a car that's sporty, fun and fits in your budget? Read reviews on AOL Autos. (http://autos.aol.com/cars-BMW-128-2008/expert-review?ncid=aolaut00050000000… )

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Re: [MVCAC] Longview Power Plant Updates
by James Kotcon 04 Aug '08

04 Aug '08

This clearly demonstrates the flaws in Longview's "Desigh/Build" approach, and shows why the PSC should have required complete engineering plans up front, before the start of construction. Jim Kotcon >>> "Paula Hunt" <pjhunt(a)xemaps.com> 8/4/2008 9:11 AM >>> ================================================================ Updates on Longview's Continuing Troubles -- paula ================================================================ Longview Power plans to obtain its water from the Mon River, not from treated mine water. Longview obtained approval to do this from Pennsylvania, where the intake will be located. It turns out that treating all that water by the very expensive process of reverse osmosis is cost prohibitive. * As if they didn’t know that from the very beginning ….. * Construction on the Longview Power Plant, located in the Community of Fort Martin near Maidsville, WV (just north of Morgantown), has begun but is going very slowly. Rumor has it that they are fighting subsidence problems on site and are having trouble finding workers. * Where are all those unemployed union workers that packed the public meeting, I wonder… ? * Bids are being accepted until the end of August 2008 to buy part or all of Longview Power, LLC. Merrill Lynch is conducting the auction and PPL Corp (PPL EnergyPlus), FirstEnergy, PSEG, International Power America, and Energy Investors Funds are thought to be bidders. PPL EnergyPlus has already committed to taking 300 megawatts (MW) of the 695 MW. Goldman Sachs and WestLB have funded part of the construction, putting $1.15 billion into the project last year. Apparently that wasn’t enough, and another $950 million was supposed to come from other sources. The original $900 Million power plant has turned into a $2 Billion power plant (and counting). It appears that this new $950 Million funding is no longer available. Presumably this is why the auction is needed. GenPower supposedly wants $3,500 per kW or more, which is higher than the $3,000-3,250 per kW, which is usual for electricity from a new plant. ================================================= _______________________________________________ MVCAC mailing list MVCAC(a)cheat.org http://cheat.org/mailman/listinfo/mvcac

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MVCAC August 2008