Nuclear Skepticism and Chadux Ops at the April Galena City Council Meeting
4-18-08
Tim Bodony (KIYU)

Audio version from the April 18, 2008 newscast

At this week’s Galena City Council meeting, some of the strongest skepticism to date emerged concerning the chances of the 4-S nuclear reactor solving the problem of rising energy costs.   

The manufacturer of the 10 megawatt nuclear reactor, Toshiba, appears committed to getting its technology approved for use in the United States.  The company has informed the Nuclear Regulatory Commission that it intends to submit a formal permit application for the 4-s at some point in 2009.  Several pre-application meeting between company scientists and the NRC have already occurred, and another will take place next month.   

But along side that process, the City of Galena, as the proposed site of the first 4-s reactor has to apply for a site permit, and come up with a plan for financing and insuring the multi-million dollar nuclear facility.   

The City of Galena’s Washington DC lobbyist, John Roots, recently presented the City with a cost estimate of 2-point-8 million dollars over a two-year period, which the City would have to secure in order to pay for environmental studies at the sites where the nuclear reactor could potentially be located.   

Faced with the task of getting that much money from state or federal funding agencies, along with the uncertainties about who would own and pay for the nuclear plant, City Manager Walt Wilcox told the Council that he would rather concentrate on other technologies to help alleviate rising energy costs. 

Wilcox: Not everybody agrees with me, but I think we need to focus on what we can get our arms around. I can get my arms around in-river turbines, with somebody else paying for them. The Denali Commission is currently supporting that study.  I can get my arms around coal bed methane, because it doesn't cost very much. But these big projects...that's how you bankrupt little towns."

Arguably the council’s strongest supporter of nuclear power for Galena, Tom Johnson, was not present at the April 15 meeting. 

In the meantime, Galena officials are still seeking funds for coal bed methane exploration around Galena.   

The renewable energy fund bill that passed the legislature last week includes an exemption for subsurface gas development, even if the gas is not technically a renewable resource.   

The final draft of the bill states that a community can seek state funding for gas projects if that community has a population of less than 10 thousand, and if no other renewable sources of energy are viable.   

The bill calls for the gradual creation of a renewable energy endowment fund, with projects funded each year using the interest generated by the fund.  The state would put 50 million dollars into the fund each year for at least five years.  Governor Palin has yet to sign or veto the bill.   

Galena representatives are meeting with the Alaska Energy Authority to argue for a 2 million dollar project to locate and quantify the coal and coal bed methane reserves within a few miles of Galena, to determine the feasibility of converting Galena’s power plant from diesel to methane gas. 

Chadux Ops 

The Galena City Council voted to authorize the City to enter into an oil spill response contract with the Alaska Chadux Corporation.   

The corporation is a not-for-profit cooperative, based in Anchorage.  They also have oil spill response equipment staged in regional hubs like Barrow, Nome, and Bethel.   

City Manager Walt Wilcox told the council that the need for a new oil spill contingency plan arose from the departure of the Air Force from Galena.

Wilcox: The Air Force had always backed up Crowley [Marine Services] and the City to where if there was a major oil spill, there was a reciprocal agreement where they would fly big heavy equipment in - suckers, skimmers, bird cleaners, and other really cool stuff - and we don't have that capacity. When the Air Force leaves, we will not have that available to us.

The State Department of Environmental Conservation requires communities to have on oil spill contingency plan in place.  Communities can either enter into a contract with an outfit like Alaska Chadux, or purchase the required equipment themselves.   

Wilcox recommended Alaska Chadux based on its existing relationship with Crowley, and its ability to respond with a wide variety of equipment in a timely manner.

Wilcox: We join these guys, and pay them a $10,000 entry fee, and then we have an oil spill, they are Johnny-on-the-spot. They charge us for the jet to bring out the skimmers and such. They have a rate that they charge per day. These guys are the best, as far as I can understand, in the state. It's a co-op, and the reason I chose to recommend this one is because it's the one Crowley uses and is very satisfied with. They can be here in an hour if we have a very large oil spill.  We can take the big rigs and build dikes to keep the oil out of the Yukon, but we do not have the capacity to clean up with spill

The $10,000 dollar entry fee for joining Alaska Chadux Corporation goes largely to covering the fixed costs of the operation, according to Wilcox.   

The previous oil spill contingency plan relying on the Air Force did not cost the City anything.   

Wilcox did not have to obtain quotes from other spill response companies because the value of the contract is less than $25,000 – the level at which city department heads must consider price quotes from more than one vendor.