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Kinder Morgan to buy Arizona carbon dioxide - helium field


A subsidiary of Kinder Morgan is buying the St. Johns Dome carbon dioxide and helium field in eastern Arizona and other properties from Enhanced Oil Resources Inc. (EOR), for $30 million, according to recent news reports.

EOR subsidiary Ridgeway Arizona Oil Corp. has been developing the field for a number of years, intending to use the CO2 for enhanced oil recovery projects in New Mexico and Texas. However, a worldwide shortage of helium has pushed the price high enough that it's become a valuable commodity as well.

In addition, Utah-based GreenFire Energy has a partnership with EOR for development of a CO2-based demonstration geothermal power plant near St. Johns Dome, using the CO2 from the field instead of steam to generate electricity. There's no immediate word on how the Kinder Morgan deal may affect this project. US DOE granted GreenFire $2 million towards testing the technology.

EOR CEO Barry Lasker is quoted as saying the financing of the St. Johns Dome project was "too onerous on a company of our size" so the expectations are that Kinder Morgan can bring the resources to bear to complete it.

The purchase is scheduled to close on Dec. 1.
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Return of the Dust Bowl to the American West


The cover story in the November issue of AGI's EARTH magazine offers a grim prediction of the "Return of the Dust Bowl in the American West" that includes Arizona.

The article says researchers from a variety of disciplines concur that "Over the next two or three decades, the American West...will transition to a climate that may make the 1930s Dust Bowl seem mild and brief."

This summers multiple haboobs in southern Arizona are given as examples of what the future may increasingly hold for us.

The cause is a combination of natural and human causes. "Persistent drought, increasingly violent and variable weather, urban and suburban development, off-road recreational vehicles, and even the installation of large-scale solar energy arrays threaten to shroud the West in dust."

One of the biggest factors, and biggest unknowns, is the Pacific Decadal Oscillation (PDO) that moves on a cycle of 20-50 years. A favorable PDO is described as the source of the anonymously wet 20th century, on which we based a lot of our water planning.

In addition to drought-related effects, longer dry seasons lead to more wildfires. And the increase in dust brings more respiratory ails such as carrying more Valley Fever spores.

It's possible there will be a change in trajectory of one or more of the causal factors, but the article cautions that none of that seems to be happening.
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End of Russian uranium exports impacts global supplies



If you want a better understanding of the forces at work that are helping drive the mining industry's interest in the rich uranium deposits of northern Arizona, read a recent investment analysis posted on Mineweb.com. [Right, uranium ore. Credit, USGS]

"...nuclear warheads that were once on Russian ICBMs aimed at American cities are now providing 50% of the electricity produced by America's nuclear power plants." And the supplies of this uranium are running out. Here are some excerpts:

When the USSR collapsed Russia inherited over a thousand tons of weapons-grade uranium and a massive nuclear refining and fabricating infrastructure - 40% of world total.

During the twenty year Megatons to Megawatts Program Russia will have converted 500 tonnes of highly enriched uranium (HEU - uranium 235 enriched to 90 percent) from dismantled Russian nuclear weapons into low enriched uranium (LEU - less than 5 percent uranium 235) for nuclear fuel and sell it to the US.

The Megatons to Megawatts Program, according to the US Enrichment Corp (USEC, the government created entity to buy and transport the uranium) was supplying roughly 50% of the US's LEU demand. Mining accounted for 8% with the rest coming from other sources (rapidly depleting utility and government stockpiles).

The world's uranium miners currently produce 40 million pounds less than the world's nuclear power plants need - this figure doesn't include the [42+] power plants under construction or the hundreds in planning stages.

RBC Capital Markets believes there is not enough uranium production from current or planned mines to; satisfy current reactor needs, meet new reactor start up initial core requirements (3x normal load for startup), and to build inventories for new reactors. RBC estimates there will be a global uranium shortfall of over 70 million pounds by 2020 and says that the uranium market will require substantial new sources of uranium to fuel the projected growth in the global nuclear reactor fleet.
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Use of coal ash in construction

The ash left over from burning coal in power plants to generate electricity is used in the construction industry, especially in making concrete for transportation infrastructure.

A new study sponsored by the foundation of the American Road and Transportation Builders Association, concludes that "infrastructure costs would rise by $5.2 billion annually if coal ash were unavailable for construction purposes," according to an item in the newsletter from the Interstate Mining Compact Commission. "More than 75% of concrete used to build and maintain U.S. transportation infrastructure relies on coal ash as a component in its cement blend, according to the foundation." Some ash is also used in roofing and wallboard, but a lot stays in ponds or dry landfills.

The study was prompted by anticipated EPA rules for regulating coal ash under the Resource Conservation and Recovery Act (RCRA). The study "claims road and bridge construction costs would soar if the EPA regulates coal ash as hazardous waste." The collapse of a coal ash pond in Tennessee in 2008, triggered a re-examination of similar ponds nationwide.

Two Arizona power plants, Cholla and Apache Station, have a total of nine coal ash ponds, that would be affected by the rules. [Right, Google Earth view of coal ash ponds at Cholla power plant]
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Rappeling into "The Cracks" near Holbrook


There was a comment added today to one of my blog posts from 2010, about "The Cracks" near Holbrook in eastern Arizona. The cracks are extension fractures over the Holbrook anticline.

Well, alerted by the post, J. Barr recently rappelled into some of them, going as much as 140 feet deep. He posted photos at the website Team Crowbar. [Right, credit Team Crowbar]

These are the first photos I've seen from inside the cracks and they are fantastic.

Kids, don't try this yourself. Note that these guys are well prepared and trained for this. This is not a place where you want to get stuck.
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Another reason to be thankful



On this Thanksgiving weekend, here is something else to be thankful for - life on Earth was not wiped out by a comet or asteroid impact, despite three close approaches in recent months.

On June 27, asteroid 2011 MD zoomed by at the "butt-clenchingly close distance of only 12,000 kilometers (7,500 miles)" without incident.

A couple weeks ago, on November 8, a 400-meter wide asteroid named 2005 YU55, came within 201,000 miles of Earth. [Right, Asteroid 2005 YU55. Credit, Arecibo Observatory/Michael Nolan]

But the one that generated the most consternation in the blogosphere was Comet Elenin that broke up on Sept. 10, on its way towards its closest encounter with Earth expected on Oct. 16.

Various doomsayers claimed Elenin would trigger 'catastrophic earthquakes' or that it was actually the mysterious Planet X, or Planet Zeta, or Nibiru which would cause the magnetic poles to flip, triggering the crust to shift 90 degrees, and devastating life on Earth. Whew! Guess we dodged the bullet on that one.

The Nibiru predictors have been justifying their predictions in part on the development of ground cracks reported around the world, including reports of earth fissures in Arizona. Supposedly the gravitational pull of Elenin (aka Nibiru) was triggering the crustal stresses that produce the cracks. However, a NASA scientist calculated that his Toyota Prius produced greater stresses on our planet than did the remote comet.

Since we are apparently still here and alive, the predictions are that the real comet/asteroid/planet collision will occur sometime in 2012. So, we can all be thankful yet again that we can celebrate through New Years apparently without fear of the end of the world!
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EPA and Asarco debate charges of air quality violations at Hayden smelter


The Arizona Business Journal has posted both the EPA letter to Asarco charging them with 6 years of violations of the Clean Air Act at the Hayden copper smelter [right], and Asarco's responses challenging the allegations. The EPA says the smelter is a "major source" of hazardous air pollutants (HAP) including Arsenic, Lead, Antimony, Beryllium, Cadmium, Chromium, Cobalt, Manganese, Nickel, and Selenium.

Asarco counters that they are no more than a 'minor source' and in compliance with Arizona Dept. of Environmental Quality standards.-
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M2.3 quake near Kaibab



A magnitude 2.3 earthquake struck about 8 miles WSW of Kaibab, in northwest Arizona last night at 10:20 PM. It's an area of modest low-level seismic activity. [Right, location of quake (star) and seismicity 1990-present. Credit, USGS]

This area is at the southern end of the Intermountain Seismic Belt.
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"Dirt tax" proposed on hardrock mining


The Obama Administration is proposing significant changes to hard rock mining laws but one called the Abandoned Mine Lands Hardrock Reclamation Fund, is generating angst in the mining community. Paraphrasing the legislative proposal, all operators of hard rock mining operations shall pay to the Secretary of the Interior, a reclamation fee based on the tons of material displaced by the operation at the rate of 7.8 cents per ton of material displaced for fiscal years 2012 through 2015. Beginning in 2016 and in each subsequent fiscal year, the Secretary may adjust the fee rate. The fees would go into the reclamation fund.

Opponents of the fee are calling it a "dirt tax" because it applies primarily to the dirt and rocks overlying an ore deposit, sometimes called overburden. In some cases, the amount of overburden can be a larger volume than the underlying ore-bearing rocks. Also, the overburden must be removed first to reach the ore, meaning additional upfront costs before any revenue is generated. [Right, Lavender Pit, Bisbee AZ]

The National Mining Association says the Administrations own estimate is that this will cost the mining industry an additional $1.8 billion.

This is separate from proposals to charge reclamation fees or royalties on the ore itself. Arizona produces a little over 10% of the non-fuel minerals of the nation, so I would imagine a comparable amount of the fees would come from Arizona mining companies.
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