West  Virginia  Division  of   Energy Of ice  of  Coal ield Community  Development About  us…

The  Of ice  of  Coal ield  Community   Development  (OCCD)  was  created   during  the  1999  legislative  session   to  assist  communities  affected  by   surface  mining  activity  throughout   the  state. The  legislation  was  effective  June   11,  1999,  and  the  OCCD  became   operational  July  1,  2000. In  July  2007,  the  OCCD  became   part  of  the  new  West  Virginia   Division  of  Energy,  under  the  West   Virginia  Department  of  Commerce. For  more  information,  contact  us  at   (304)  957-2000.

Of ice  of  Coal ield   Community  Development

Surface  Mine  Property   Information  Package   for  Future  Development
PVR  Partners,  Former  Slaughters   Creek  Surface  Mine  Site    Chelyan,  Kanawha  County   West  Virginia

Our  Mission...
The  mission  of  the  OCCD  is  to   identify  and  assist  communities   affected  by  surface  mining   activities    to  develop  plans  for   long-term  economic  viability  after   mining.

Prepared  in  partnership  with  Marshall   University’s  Center  for  Environmental,   Geotechnical,  and  Applied  Sciences  (CEGAS)   and The  West  Virginia  Brown ields  Assistance   Center  at  Marshall  University West  Virginia  Division  of  Energy     Of ice  of  Coal ield  Community  Development 1900  Kanawha  Blvd.,  East Main  Capitol  Complex Building  6,  Room  645 Charleston,  WV    25305-0311 (304)  957-2000 (800)  982-3386

PVR  Partners  -  Slaughters  Creek  Former   Surface  Mine  Property Chelyan,  WV
Site  Details: 

Potential  Reuse  Options:
Future  Housing  Development:
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Partnering  Opportunities: A  majority  of  the  Slaughters  Creek  prop-­‐ erty  has  completed  mining  operations.     Some  smaller  areas  have  approved  min-­‐ ing  permits.  If  market  conditions  in-­‐ crease  demand  for  coal  then  some   smaller  sections  of  the  property  may   become  active  mining  sites.  PVR  Part-­‐ ners  is  interested  in  entertaining  op-­‐ tions  for  redevelopment  and  investment   on  the  Slaughters  Creek  site,  speci ically   on  the  areas  of  the  property  where  min-­‐ ing  has  been  completed.  The    property   includes    three  phase  power,  water,   sewer,  and  access  to  Interstates  77/64.     PVR  Partners  may  be  able  to  assist  with   construction  of  a  site  access  road  to  ac-­‐ commodate  development  .

Upscale  Housing  Developments Multi/Single  Family  Housing

Over  300  acres  of  reclaimed  surface  mine   land  available  for  development 3-Phase  Power  on-site

Industrial  /  Commercial  Use:
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Warehousing  and  Distribution   Automotive Energy  Parks  (including  solar  farm) Bio  Chemical  and  Chemical  Processing   Natural  Gas  Related  Industries     Wood  products  

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Water  and  sewer  services  provided  by   Chelyan  Public  Service  District  and  West   Virginia  American  Water
Rail  Service  to  Area  Provided  by  CSX   Located  next  to  WV  State  Route  61 Near  I-77  /  I-64  interstate Close  proximity  to  Kanawha  River,  with   barge  and  dock  facilities,  plus  recreational   opportunities Property  owned  entirely  by  PVR  Partners Located  near  West  Virginia  University       Institute  of  Technology  in  Montgomery,   and  Yeager  Airport  in  Charleston

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Contacts: Rachel  Lester,  WVDOE,  OCCD                             (304/957-2000) Dennis  Jarvis,  II,  Upper  Kanawha  Valley  Eco-­‐ nomic  Development  Corporation               (304/981-6400) Gary  Begley,  PVR  Partners                                       (304/949-5630) George  Carico,  Marshall  University/                           WV  Brown ields  Assistance  Center                       (304/696-5456)

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Site  Owner: PVR  Partners  is  a  publicly  traded  limited  part-­‐ nership  that  owns  and  operates  a  network  of   natural  gas  midstream  pipelines  and  pro-­‐ cessing  plants,  and  owns  and  manages  coal   and  natural  resource  properties.    To  learn   more  about  PVR  Partners,  visit  their  website   at:    www.pvresource.com.

Surface Mine Data Package for Future Redevelopment Slaughters Creek Site Chelyan, Kanawha County WV Owned by PVR Partners, L.P. (Site location maps provided in Appendix A) Contacts Rachel Lester West Virginia Division of Energy, Office of Coalfield Community Development Rachel.a.lester@wv.gov 304.957.2000 Gary S. Begley PVR Partners gbegley@pvrpartners.com 304.949.5630 George Carico Marshall University CEGAS / WV Brownfields Assistance Center carico@marshall.edu 304.696.5456 Damron Bradshaw Upper Kanawha Valley Enterprise Community bbradshaw@ukvec.org 304.595.5991 Dennis Jarvis II Upper Kanawha Valley Economic Development Corporation dennisjarvis2@gmail.com 304.981.6400

Property Size Initially the site is estimated to be +300 acres. The property can easily be divided to create multiple areas, up to 150 acres each.

Property Ownership The entire property is owned by PVR Partners. Photos are provided in Appendix B. Utilities Electric – The property has three phase power on-site, provided by American Electric Power

Water/Sewer – The Chelyan Public Service District provides sewer service for the region, with a main 8-inch line located near the property. The system has a capacity of over 2 million gallons per day. Water service for the region is provided by West Virginia American Water via a 6-inch main line, also located near the property.

Natural Gas – There are numerous gas lines throughout the property. Mountaineer Gas Company offers residential and commercial service in the area. A service line is located near the property on WV State Route 72. Eastern American Energy has a transmission line in the area that may be able to offer excess capacity.

Transportation Roads – The primary access roads are Slaughters Creek Road and Fields Creek Road. Both roads connect to State Route 61, and are in close proximity to Interstates 64 and 77. PVR Partners may be able to assist with building an access road onto the property to meet anticipated development needs, at an approximate maximum grade of 8%. Rail – CSX Rail provides rail service to the area. Navigable Water – The Kanawha River is nearby the property, with barging facilities available. Amherst Madison, among others, has barging facilities on the Kanawha River in this area. Commercial Airport – Yeager Airport is located in Charleston, a distance of approximately 15 miles away and offers general aviation service and commercial service. Commercial air service is available via American Airlines, United, Delta, Spirit and US Airways. Regional transportation distances include the following: Charleston Montgomery 15 miles 10 miles

Interstate 64 and 77 <2 miles Beckley 40 miles

Potential Development/Investment Opportunities Depending on current surface mine activities and future surface mine permit approvals, mining activities on small sections of the property could occur in the next several years. The property could have potential as an energy park development, including renewable energy sectors in the solar and/or biomass sectors. Solar Energy Resource Potential – The National Renewable Energy Laboratory (NREL) provides an on-line  solar  energy  production  calculator,  called  “PV  Watts”,  a  map-based interface performance calculator for grid-connected photovoltaic systems, which estimates monthly data output and yearly estimates (http://rredc.nrel.gov/solar/calculators/PVWATTS/version1/ ). An annual performance estimate of 4.35 kWh/m2/day (annual solar radiation average) is calculated for the region, using data from the closest available location (Charleston, WV). The highest averaged monthly solar radiation estimate is 5.34 kWh/m2/day (August); lowest averaged monthly solar radiation estimate is 2.37 kWh/m2day (December). These estimates are based on industry averages for solar panel output and fixed-axis support with normal operating losses; higher energy performance estimates may be realized using higher output solar panels, higher efficiency controls and/or rotating axis equipment. A summary of solar energy calculation tables, including estimated energy values, are provided in Appendix C. The site has multiple acres of ridgeline areas with, aside from some trees, minimal shading (i.e. no buildings or obstacles) that would shade solar panels and reduce solar energy collection. There are several excellent areas for potential photovoltaic energy collection system installations. Biomass – A number of sites similar to this area are currently being researched for the potential of raising/harvesting biomass energy crops. Possible biomass crops include switchgrass, miscanthus, and max arundo (giant reed). Hybrid tree plantings for fast growth and harvest are also being evaluated. Tree plantings using modified reclamation approaches, including Appalachian Regional Reforestation Initiative methods (www.ari.osmre.gov) using minimal soil compaction during reclamation, are being researched and evaluated on select reclaimed sections of similar properties.

Housing Development Opportunity The Slaughters Creek property could be utilized as a site for new housing development for the region. The Upper Kanawha Valley housing market is currently at a critical mass. During the last twenty years the region has not seen a significant investment made in single family housing, multifamily housing, or housing of any type. There are several factors that have contributed to lack of investment, including:  Job creation in the region  The current size of the existing housing market in the region  The age of the housing market in the region The job market of the Upper Kanawha Valley during the last decade has seen sort periods of growth, but stagnation or declines in jobs has been the standard. Job creation in the region has not

kept pace with other areas of Kanawha County, nearby Fayette County and region, or the state of West Virginia. The main industrial sector for the region is coal mining and related support industries, which has been stagnant or declining in recent years. This trend has not created the needed environment for investments in housing to be made. The current demand for coal is declining, however the region does boast an abundance of reserves of metallurgical coal. If demand for steel production increases with new economic activity, demand for these reserves should also increase. There have been small strides for new job growth and investment in retail and manufacturing in recent years. Since 2007, the region has witnessed several new investments in employment from state government, manufacturing and retail. In manufacturing, both Kureha and Dupont intend on hiring. Kureha is a new company in the area that announced 35 jobs at its new facility in Belle; the original announcement in 2007 stated 50 jobs. DuPont will have a need for hiring due to mass retirement over the next few years. Their announcement last year called for as many as 150 employees retiring. While DuPont may look for a reduction in cost through attrition, the facility will have to make hires as the 150 employees make up almost half of their current workforce. In a new market to the area, the West Virginia National Guard expanded their training facility near the Memorial Tunnel, located in the immediate region. The job impact is expected to be over 100 full time equivalents which will include trainers, mechanics and other support personnel. In retail, a new Wal-Mart has been built minutes from the PVR Partenrs Slaughter Creek site. This facility hired 200 people, mostly hourly employees, but also management that will have the income to have the ability to reach the median cost of housing in the area. By the mid third quarter of 2013 Tractor Supply is expected to open a new retail outlet in nearby Quincy, with plans for 35-40 employees. The Mt. Olive State Correctional facility in nearby Montgomery has been open since the mid 1990’s,  and employs several hundred people. A reoccurring problem for the facility has been employee retention and being fully staffed. In discussions with officials at Mt. Olive Correctional facility and local economic development officials, employees have indicated that finding affordable housing in the region is one reason why they choose not to stay employed with the facility. As of November 2012 the Mt. Olive Correctional facility had employees commuting over 90 minutes to work each way.

Current Size of the Housing Market Specific size of housing market data for the Upper Kanawha Valley is not available; however numbers are provided below for both Kanawha and Fayette County. The area has shown a weakness in the housing market that has been affected from economic downturn, similar to the rest of the U.S., since 2008. This could cause “red flags” that residents may have a desire to purchase a home, but would not have the financial capabilities (i.e. supply a down payment or meet the credit rating necessary to qualify for a housing loan).

Kanawha County

Data Source: U.S. Census Bureau, Building Permits Survey; adjustments by analyst Note: Data for 2012 is preliminary, through May 2012

Fayette County

Data Source: U.S. Census Bureau, Building Permits Survey; adjustments by analyst Note: Data for 2012 is preliminary, through May 2012

Age of the Housing Market Data on housing market age specific to the Upper Kanawha Valley is not available; however data on  the  age  of  housing  in  Charleston,  West  Virginia  is  available  in  Charleston’s  Consolidated  Plan, which can be expected to be similar to the Chelyan area. Their numbers are as follows:        0.8% of houses were built in 2005 or later 14% were built from 1980 to 2004 26% were built from 1960 to 1979 36.8% were built from 1940 to 1959 22.5% were built in 1939 or earlier 0.3% lack complete plumbing facilities 0.5% lack complete kitchen facilities

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Foreclosure rate is at 3.8% 35% of vacant properties are in need of major rehabilitation work 15-20% of the housing market are classified as economically infeasible to rehabilitate

There has been less current housing activity within the Upper Kanawha Valley than in Charleston, so the area in question would at least parallel the numbers above, and likely have an even older housing market and a higher percentage of houses that need major repair or are in disrepair.
2010 Housing Occupancy Data (Kanawha County)
Number Percentage OCCUPANCY STATUS Total housing units Occupied housing units Vacant housing units TENURE Occupied housing units Owner occupied Owned with a mortgage or loan Owned free and clear Renter occupied VACANCY STATUS Vacant housing units For rent Rented, not occupied For sale only Sold, not occupied For seasonal, recreational, or occasional use For migratory workers Other vacant 8,417 1,952 153 1,246 383 603 8 4,072 100.0 23.2 1.8 14.8 4.6 7.2 0.1 48.4 84,201 57,784 31,817 25,967 26,417 100.0 68.6 37.8 30.8 31.4 92,618 84,201 8,417 100.0 90.9 9.1

2000 Housing Occupancy Data (Kanawha County)
HOUSING OCCUPANCY Total housing units Occupied housing units Vacant housing units For seasonal, recreational, or occasional use Homeowner vacancy rate (percent) Rental vacancy rate (percent) Numbers Percentage 93,788 86,226 7,562 564 1.9 8.5 100.0 91.9 8.1 0.6 (X) (X)

HOUSING TENURE Occupied housing units Owner-occupied housing units Renter-occupied housing units Average household size of owner-occupied unit Average household size of renter-occupied unit 86,226 60,618 25,608 2.38 2.06 100.0 70.3 29.7 (X) (X)

Location Proximity Information
Proximity to Populations Population percentage within 500-mile radius of Charleston United States - 60% Canada - 30% Proximity To Markets United States Purchasing and Industrial Sectors Percentage of market within 500-mile radius of Charleston Industrial Expenditures - 52.0% Personal Consumption Expenditures - 47.1% Motor Vehicle and Car Bodies - 82.1% Motor Vehicle Parts and Accessories - 78.0% Pharmaceuticals - 74.0% Industrial Organic and Inorganic Chemicals - 63.5%

Miscellaneous Information EPA Designated Brownfield – The federal Environmental Protection Agency has identified surface mine complexes for coal mining in Appalachia as potential “brownfields”.    This  designation  allows   for potential future funding sources and possible tax incentives. Community Support/Interaction – This area has three economic development agencies, including: 1. Charleston Area Alliance, which covers the Charleston Metropolitan Statistical Area 2. Upper Kanawha Valley Enterprise Community, a federally funded agency with a goal of enhancing economic development in the area 3. Upper Kanawha Valley Economic Development Corporation, focused on local and regional economic development, community revitalization and recreation/tourism-based initiatives

Additional investment opportunities can be considered with the targeted industries of the state of West Virginia, Department of Commerce. Recreation – Recreational activities and areas of interest abound in the Kanawha County region. The Kanawha River is noted for its fishing and boating opportunities, with several river access points available. Other notable recreational destinations in the area and region include: Summersville Lake - http://corpslakes.usace.army.mil/visitors/projects.cfm?Id=H117740 New River Gorge National River - http://www.nps.gov/neri/index.htm Hawks Nest State Park - http://www.hawksnestsp.com/ Kanawha State Forest - http://www.kanawhastateforest.com/ Additional recreational opportunities in the region include white water rafting on the New and Gauley rivers, plus hiking, camping, fishing, hunting, and skiing.

APPENDIX

Appendix A - Site Maps Appendix B - Site Photos Appendix C - Solar Energy Calculation Table

Appendix A - Site Maps

(Tographic map of area with Slaughter Creek Property shown)

(Aerial photo of Slaughter Creek site)

Appendix B - Site Photos

(Access roads present throughout the site)

(Large sections of ridge-top land suitable for development)

Appendix C Solar Energy Calculations, Charleston, WV (based on NREL PV Watts Calculations)

Station Identification City: State: Latitude: Longitude: Elevation: PV System Specifications DC Rating: DC to AC Derate Factor: AC Rating: Array Type: Array Tilt: Array Azimuth: Energy Specifications Cost of Electricity: 9.0 ¢/kWh 4.0 kW 0.770 3.1 kW Fixed Tilt 38.4° 180.0° Charleston West Virginia 38.37° N 81.60° W 290 m

Results Month 1 2 3 4 5 6 7 8 9 10 11 12 Year Solar AC Energy Energy Value Radiation (kWh) ($) (kWh/m 2/day) 3.01 3.44 4.51 5.13 5.20 5.24 5.34 5.30 4.93 4.46 3.15 2.37 4.35 290 291 412 443 454 431 451 442 409 400 280 223 4527 26.10 26.19 37.08 39.87 40.86 38.79 40.59 39.78 36.81 36.00 25.20 20.07 407.43