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SOUTHERN NEW MEXICO

Project Jupiter permit trips over pipeline denial

Hearing officer orders response to motion to dismiss air permit application

Renderings depict Project Jupiter, the massive data center complex planned for Do帽a Ana County.
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The New Mexico Environment Department on Wednesday  to respond to a new motion to dismiss its air quality permit application by Tuesday.

Nonprofit clean energy advocate New Energy Economy Tuesday to dismiss a permit application from Yucca Growth Infrastructure essential for the construction of the power-generating facility serving the massive data center complex under construction in Santa Teresa.

The microgrid technology intended to fuel Project Jupiter envisions using fuel cell technology and requires a daily supply of 400 million cubic feet of natural gas.

However, that plan required permission for subcontractor Energy Transfer to build a pipeline across state trust land 鈥 a request that has twice been denied by the State Land Office, although the developers could contest the decision.

In her decision, State Land Commissioner Stephanie Garcia Richard found that the proposal鈥檚 revenue for the land trust was minimal compared to 鈥漷he burden that the project will impose on New Mexico鈥檚 water and other natural resources, and on the surrounding community.鈥

New Energy Economy argued that Garcia Richard鈥檚 decision left Project Jupiter without a fuel source, at least for now, and that the air quality permit was not ready for adjudication since the project cannot proceed unless either Garcia Richard鈥檚 decision is reversed or an alternative source for fuel is established. The group鈥檚 motion called either for dismissal or postponement of the application.

The application is set for a public hearing originally scheduled in October but recently moved up to September.

Hearing Examiner Max Shepherd on Wednesday ordered Yucca Growth to respond to the issues raised in the motion.

Specifically, Shepherd called on the developer to answer whether any 鈥渓egally obtainable alternative source of natural gas鈥 has been identified equivalent to the daily supply of 400 million cubic feet as presented in the application; whether an alternative route for the pipeline or another delivery system has been determined; how long before the source can be completed; and if the project as described in the application 鈥渞emains capable of being constructed.鈥

Further, Shepherd wanted an answer as to whether Energy Transfer is planning an administrative appeal of Garcia Richard鈥檚 denial of the pipeline鈥檚 route through state trust land.



Jennifer Bradfute, an attorney for Yucca Growth, said, 鈥淭he order issued today is a briefing schedule. It sets a deadline of August 11 for the parties to respond to New Energy Economy's motion and identifies the questions the hearing officer wants addressed. It does not rule on the motion.鈥 She said the company would file its response by the deadline.

New Energy Economy Executive Director Mariel Nanasi welcomed the order. 鈥淩ather than allowing the parties and the public to spend weeks preparing for an extraordinarily expensive evidentiary hearing, the Hearing Officer has required Applicants to answer the fundamental question at the heart of this case: Can Project Jupiter actually be built?鈥

Nanasi argued that the answer is no.

鈥淲ithout a lawful fuel supply, there is no power plant. Without a power plant, there is no Project Jupiter,鈥 she said.

A denial of the air quality permit could be a critical stumbling block for the controversial project, which would provide computing capacity for AI training for Oracle and OpenAI.

At a recent meeting of the Do帽a Ana County commissioners, Oracle Vice President Mahesh Thiagarajan admitted there was no immediate contingency plan if the air quality permit is not approved.

After suggesting the project might seek to purchase power from El Paso Electric and hearing some pushback from the commissioners, Thiagarajan said, 鈥淚 don鈥檛 know how to power the data center鈥 otherwise and suggested halting work would be a possibility.

Attorneys for Yucca Growth Infrastructure and representatives from Oracle did not immediately respond to queries from the Journal. 

This is a developing story and will be updated. 

Algernon 顿鈥橝尘尘补蝉蝉补 is the Journal鈥檚 southern New Mexico correspondent. He can be reached at adammassa@abqjournal.com.