Washington, D.C. - U.S. Senators Craig Thomas, Mike Enzi and U.S. House Representative Barbara Cubin, all R-Wyo., are working to reduce U.S. oil imports and better manage the nation’s energy future by helping 21st century projects develop in Wyoming.
The Wyoming delegation penned a letter to Secretary of the Treasury Henry Paulson supporting the Medicine Bow Fuel and Power coal-to-liquids facility located near Medicine Bow. The delegation urged the Department to accept an application to allow DKRW, the company building the facility, to access $350 million in investment tax credits to help with project financing that is estimated to total $1.3 billion.
"Wyoming has abundant natural resources that can further increase the independence of sourcing petroleum products in the United States, and this program is important to developing those resources for the benefit of both the state and the country as a whole," wrote the delegation. "By working together, we can begin to better manage our energy future and security."
The Medicine Bow Fuel and Power coal-to-liquids facility, upon completion, is projected to produce approximately 11,000 barrels per day of ultra-clean diesel fuel. Coal-to-liquid gasification technology converts coal into a synthetic gas. That gas is available for direct use or can be converted into materials such as diesel fuel.
The delegation supported including the coal project tax credit and a gasification project credit in the Energy Policy Act of 2005.
September 8, 2006
The Honorable Henry M. Paulson
Secretary of the Treasury
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Re: Medicine Bow Project Application under Section 48B(d)
Dear Secretary Paulson:
As the Members of the Wyoming delegation, we want to convey our support for the Medicine Bow Fuel and Power coal-to-liquids facility located near Medicine Bow, Wyoming. This project has submitted an application for tax credits under the new Section 48B(d) established by the Energy Policy Act of 2005 (EPACT), enacted August 8, 2005.
The new Section 48B(d) establishes a qualifying gasification project program for qualified investments eligible for tax credits. Wyoming has abundant natural resources that can further increase the independence of sourcing petroleum products in the United States, and this program is important to developing those resources for the benefit of both the state and the country as a whole.
We encourage the U.S. Treasury to give due consideration to the application by the Medicine Bow Project under Section 48B(d). The project would:
Expand refined capacity in the U.S.;
Produce refined products, like ultra low-sulfur diesel, to reduce air emissions;
Sequester carbon dioxide through enhanced oil recovery applications to produce more oil, and, in turn, reduce oil imports;
Increase tax base with a large infrastructure investment as well as increased residential and commercial base; and
Increase employment within the state.
Thank you for giving the Wyoming delegation the opportunity to communicate our support for this project as part of implementing EPACT and reducing U.S. oil and refined product imports in the future. By working together, we can begin to better manage our energy future and security.
Craig Thomas Michael B. Enzi Barbara Cubin
United States Senator United States Senator Member of Congress