U.S. Coal Consumption. Coal consumption in the electric power sector rose by 5 percent in the first half of this year compared with the first half of last year, primarily the result of higher electricity consumption. EIA forecasts that higher electric power sector coal consumption will continue for the remainder of the year, with the total annual increase projected at nearly 7 percent. Despite a very slight decrease (0.3 percent) in electricity consumption in 2011, projected coal-fired electricity generation and related coal consumption will decline at a higher rate, primarily because of forecast increases in nuclear and renewable-based generation (U.S. Coal Consumption Growth Chart).
U.S. Coal Supply. Coal production for the first 6 months of 2010 fell by 3 percent despite a 5 percent increase in U.S. coal consumption. Drawdowns in inventories (U.S. Electric Power Sector Coal Stocks Chart) are forecasted to meet the majority of the increased coal consumption in 2010. Projected coal production increases in the second half of 2010, with annual growth projected at 1 percent. EIA projects another 1-percent increase in coal production in 2011 (U.S. Annual Coal Production Chart).
U.S. Coal Trade. The United States is a net exporter of coal, averaging 3.4 percent of production in 2009. Projected coal net exports increase by 58 percent in 2010, then decline by 17 percent in 2011. Metallurgical coal exports have nearly doubled in the first half of 2010 compared with the first half of last year. Metallurgical coal's share of total coal exports has grown from 52 percent in 2008 to a projected 74 percent in 2010. EIA projects coal imports to decline by 17 percent in 2010 recover next year with growth of 37 percent. However, the annual import tonnage (26 million short tons) remains significantly below the 2005-through-2008 average of 34 million short tons.
U.S. Coal Prices. The electric-power-sector coal price rose by 1.3 percent in the first half of 2010 compared with the first half of last year. This higher cost of delivered coal reflects the effect of longer-term power sector coal contracts initiated during a period of high prices, rising transportation costs, increased consumption, and increases in spot coal prices. The projected electric-power-sector delivered coal price averages $2.26 per MMBtu in 2010, and then declines to an average of $2.23 per MMBtu in 2011.
Friday, October 15, 2010
Top 10 Most Efficient Coal Stocks: NRP, PVR, WLT, CLD, BTU, ARLP, AHGP, HNRG, CNX, JRCC
Below are the top 10 most efficient Coal stocks, based on earnings per employee for the last 12 months.
Natural Resource Partners LP (NYSE:NRP) is the 1st most efficient company in this segment of the market. Its earnings per employee was $1,933,986 for the last 12 months. Its revenue per employee was $3,899,572 for the same period. Penn Virginia Resource Partners L P (NYSE:PVR) is the 2nd most efficient company in this segment of the market. Its earnings per employee was $472,565 for the last 12 months. Its revenue per employee was $4,390,800 for the same period. Walter Energy, Inc. (NYSE:WLT) is the 3rd most efficient company in this segment of the market. Its earnings per employee was $103,080 for the last 12 months. Its revenue per employee was $589,162 for the same period. Cloud Peak Energy Inc. (NYSE:CLD) is the 4th most efficient company in this segment of the market. Its earnings per employee was $99,939 for the last 12 months. Its revenue per employee was $880,229 for the same period. Peabody Energy Corporation (NYSE:BTU) is the 5th most efficient company in this segment of the market. Its earnings per employee was $79,247 for the last 12 months. Its revenue per employee was $876,466 for the same period.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is the 6th most efficient company in this segment of the market. Its earnings per employee was $77,232 for the last 12 months. Its revenue per employee was $446,224 for the same period. Alliance Holdings GP, L.P. (NASDAQ:AHGP) is the 7th most efficient company in this segment of the market. Its earnings per employee was $76,533 for the last 12 months. Its revenue per employee was $446,110 for the same period. Hallador Energy Co (NASDAQ:HNRG) is the 8th most efficient company in this segment of the market. Its earnings per employee was $72,983 for the last 12 months. Its revenue per employee was $424,857 for the same period. CONSOL Energy Inc. (NYSE:CNX) is the 9th most efficient company in this segment of the market. Its earnings per employee was $52,698 for the last 12 months. Its revenue per employee was $606,987 for the same period. James River Coal Company (NASDAQ:JRCC) is the 10th most efficient company in this segment of the market. Its earnings per employee was $28,563 for the last 12 months. Its revenue per employee was $393,928 for the same period.
Natural Resource Partners LP (NYSE:NRP) is the 1st most efficient company in this segment of the market. Its earnings per employee was $1,933,986 for the last 12 months. Its revenue per employee was $3,899,572 for the same period. Penn Virginia Resource Partners L P (NYSE:PVR) is the 2nd most efficient company in this segment of the market. Its earnings per employee was $472,565 for the last 12 months. Its revenue per employee was $4,390,800 for the same period. Walter Energy, Inc. (NYSE:WLT) is the 3rd most efficient company in this segment of the market. Its earnings per employee was $103,080 for the last 12 months. Its revenue per employee was $589,162 for the same period. Cloud Peak Energy Inc. (NYSE:CLD) is the 4th most efficient company in this segment of the market. Its earnings per employee was $99,939 for the last 12 months. Its revenue per employee was $880,229 for the same period. Peabody Energy Corporation (NYSE:BTU) is the 5th most efficient company in this segment of the market. Its earnings per employee was $79,247 for the last 12 months. Its revenue per employee was $876,466 for the same period.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is the 6th most efficient company in this segment of the market. Its earnings per employee was $77,232 for the last 12 months. Its revenue per employee was $446,224 for the same period. Alliance Holdings GP, L.P. (NASDAQ:AHGP) is the 7th most efficient company in this segment of the market. Its earnings per employee was $76,533 for the last 12 months. Its revenue per employee was $446,110 for the same period. Hallador Energy Co (NASDAQ:HNRG) is the 8th most efficient company in this segment of the market. Its earnings per employee was $72,983 for the last 12 months. Its revenue per employee was $424,857 for the same period. CONSOL Energy Inc. (NYSE:CNX) is the 9th most efficient company in this segment of the market. Its earnings per employee was $52,698 for the last 12 months. Its revenue per employee was $606,987 for the same period. James River Coal Company (NASDAQ:JRCC) is the 10th most efficient company in this segment of the market. Its earnings per employee was $28,563 for the last 12 months. Its revenue per employee was $393,928 for the same period.
Historical Acquisitions by ARLP
The story of Alliance begins in 1971 when MAPCO Inc., then a Fortune 500 diversified energy company, entered the coal-production business, acquiring the Dotiki mine. This underground operation in Webster County, Kentucky, soon became, and remains to this day, one of the most productive coal mines in the country.
By the time the company reached its silver anniversary, MAPCO Coal owned five mining complexes in three states — Kentucky, Illinois, and Maryland. It also owned the Mt. Vernon Facility, a rail-to-barge loading terminal on the Ohio River. Located in Indiana, the Mt. Vernon facility is capable of handling 8 million tons of coal per year.
In 1996, management formed Alliance Coal Corporation and led a buyout of MAPCO Inc.'s coal operations with the financial support of The Beacon Group. Within two years, Alliance acquired Hopkins County Coal, a surface/underground operation in Hopkins County, Kentucky, and opened MC Mining, an underground mine in Pike County, Kentucky. In 1998, Alliance sold 15.1 million tons of coal and was recognized as the sixth-largest coal producer in the eastern United States.
During 1999, Alliance Resource Partners, L.P. was formed, and after completion of its initial public offering as a publicly-traded master limited partnership, acquired the coal operations of Alliance Coal Corporation. The new company soon broke ground for a new underground mining complex in Gibson County, Indiana. Production began at Gibson County Coal the following year.
ARLP began a $30 million extension of its Pattiki mine in southern Illinois during 2000. Construction of a new mine shaft and ancillary facilities began in 2001 at the Dotiki mining complex. Both of these projects were completed during the second quarter of 2003 and positioned Alliance Coal to meet increasing demand for its coal.
In 2002, management purchased all of The Beacon Group's interest in ARLP. The acquisition was not funded or secured with any of Alliance's assets.
In February 2003, ARLP completed a secondary public offering. Proceeds from this offering were used in part to purchase Warrior Coal, LLC. Warrior operates an underground mining complex located near Madisonville, in Hopkins County, Kentucky, between and adjacent to our other western Kentucky operations. Warrior has since become one of the most productive mines in the state of Kentucky.
The late 2000s saw Alliance in an aggressive growth period. Acquisitions of the reserve that became the River View Mine, which opened in 2009, and the Tunnel Ridge and Penn Ridge reserves have positioned Alliance to meet the nation's energy needs well into the future.
By the time the company reached its silver anniversary, MAPCO Coal owned five mining complexes in three states — Kentucky, Illinois, and Maryland. It also owned the Mt. Vernon Facility, a rail-to-barge loading terminal on the Ohio River. Located in Indiana, the Mt. Vernon facility is capable of handling 8 million tons of coal per year.
In 1996, management formed Alliance Coal Corporation and led a buyout of MAPCO Inc.'s coal operations with the financial support of The Beacon Group. Within two years, Alliance acquired Hopkins County Coal, a surface/underground operation in Hopkins County, Kentucky, and opened MC Mining, an underground mine in Pike County, Kentucky. In 1998, Alliance sold 15.1 million tons of coal and was recognized as the sixth-largest coal producer in the eastern United States.
During 1999, Alliance Resource Partners, L.P. was formed, and after completion of its initial public offering as a publicly-traded master limited partnership, acquired the coal operations of Alliance Coal Corporation. The new company soon broke ground for a new underground mining complex in Gibson County, Indiana. Production began at Gibson County Coal the following year.
ARLP began a $30 million extension of its Pattiki mine in southern Illinois during 2000. Construction of a new mine shaft and ancillary facilities began in 2001 at the Dotiki mining complex. Both of these projects were completed during the second quarter of 2003 and positioned Alliance Coal to meet increasing demand for its coal.
In 2002, management purchased all of The Beacon Group's interest in ARLP. The acquisition was not funded or secured with any of Alliance's assets.
In February 2003, ARLP completed a secondary public offering. Proceeds from this offering were used in part to purchase Warrior Coal, LLC. Warrior operates an underground mining complex located near Madisonville, in Hopkins County, Kentucky, between and adjacent to our other western Kentucky operations. Warrior has since become one of the most productive mines in the state of Kentucky.
The late 2000s saw Alliance in an aggressive growth period. Acquisitions of the reserve that became the River View Mine, which opened in 2009, and the Tunnel Ridge and Penn Ridge reserves have positioned Alliance to meet the nation's energy needs well into the future.
Miracle in Chile
After more than two months underground, all 33 miners have now emerged from the collapsed Chilean copper mine in the Atacama desert to the excitement and relief of waiting family and friends.
Rescue teams lifted the miners to the surface one by one in a narrow, missile-like capsule, nicknamed Phoenix. The operation, which rescuers originally said would take around two days, finished in 22 hours. Miners who were told they would be lucky to make it out by Christmas now all saw daylight by the third week of October.
Each miner stepping out of the capsule was greeted by three family members - and President Sebastian Pinera - before being seen by waiting doctors and flown to a triage centre for at least two days of check-ups.
In depth
Live blog: Latest events
Your views: Mine rescue
Q&A: Chile mine rescue
In pictures: Rescue drama
The 33rd and last miner to be rescued was Luis Urzua, 54, the shift supervisor who organised the miners and was credited as a calming presence in the mine. He reportedly would not let anyone eat until everyone's food had arrived through the rescue shaft.
The last of the rescue specialists involved in the extraction was lifted to safety early on Thursday, ending the ordeal.
The 32 Chileans and one Bolivian trapped in the San Jose mine in northern Chile were initially believed to have perished, but they had found refuge in an emergency shelter and survived by strictly rationing their food and water.
On Wednesday, Evo Morales, the Bolivian president, visited Carlos Mamani, his rescued compatriot, at the triage centre.
'All healthy'
Officials decided the order in which the miners would be pulled up based on their health and capacities. The first group would be the healthiest, the middle group comparatively infirm, and the last group also healthy.
Rescued miners
Florencio Avalos, 31
Mario Sepulveda, 40
Juan Illanes, 52
Carlos Mamani, 24
Jimmy Sanchez, 19
Osman Araya, 30
Jose Ojeda, 47
Claudio Yanez, 34
Mario Gomez, 63
Alex Vega, 31
Jorge Galleguillos, 55
Edison Pena, 34
Carlos Barrios, 27
Victor Zamora, 33
Victor Segovia, 48
Daniel Herrera, 27
Omar Reygadas, 56
Esteban Rojas, 44
Pablo Rojas, 45
Dario Segovia, 48
Yonni Barrios, 50
Samuel Avalos, 43
Carlos Bugueno, 27
Jose Henriquez, 54
Renan Avalos, 29
Claudio Acuna, 44
Franklin Lobos, 53
Richard Villarroel, 26
Juan Aguilar, 49
Raul Bustos, 40
Pedro Cortez, 24 or 26
Ariel Ticona, 29
Luis Urzua, 54
The first miner to be rescued was Florencio Avalos, a 31-year-old driver, chosen because he was considered among the most physically and mentally fit of the group.
He smiled broadly as he emerged and hugged his weeping seven-year-old son and wife. He then embraced president Pinera, who had been at the scene overseeing the rescue operation.
Mario Sepulveda, a 39-year-old electrical specialist, was the second to reach the surface.
After hugging his wife, he jubilantly handed souvenir rocks to laughing rescuers.
"I'm so happy!" Sepulveda yelled, punching his fist in the air and hugging everyone in sight.
The miners were pulled up through a 600m-deep shaft in a rescue capsule wide as the shoulders of an average built miner, designed specifically for the operation.
The miners communicated with rescue teams using an intercom in the capsule.
It took only 16 minutes for miners to be pulled up the shaft. It was originally estimated that the journey would take half an hour, though the final ascents lasted only around nine.
Avalos began his journey after a mining rescue expert and a paramedic were lowered down the rescue tunnel to prepare the miners for their rescue.
Rescue teams lifted the miners to the surface one by one in a narrow, missile-like capsule, nicknamed Phoenix. The operation, which rescuers originally said would take around two days, finished in 22 hours. Miners who were told they would be lucky to make it out by Christmas now all saw daylight by the third week of October.
Each miner stepping out of the capsule was greeted by three family members - and President Sebastian Pinera - before being seen by waiting doctors and flown to a triage centre for at least two days of check-ups.
In depth
Live blog: Latest events
Your views: Mine rescue
Q&A: Chile mine rescue
In pictures: Rescue drama
The 33rd and last miner to be rescued was Luis Urzua, 54, the shift supervisor who organised the miners and was credited as a calming presence in the mine. He reportedly would not let anyone eat until everyone's food had arrived through the rescue shaft.
The last of the rescue specialists involved in the extraction was lifted to safety early on Thursday, ending the ordeal.
The 32 Chileans and one Bolivian trapped in the San Jose mine in northern Chile were initially believed to have perished, but they had found refuge in an emergency shelter and survived by strictly rationing their food and water.
On Wednesday, Evo Morales, the Bolivian president, visited Carlos Mamani, his rescued compatriot, at the triage centre.
'All healthy'
Officials decided the order in which the miners would be pulled up based on their health and capacities. The first group would be the healthiest, the middle group comparatively infirm, and the last group also healthy.
Rescued miners
Florencio Avalos, 31
Mario Sepulveda, 40
Juan Illanes, 52
Carlos Mamani, 24
Jimmy Sanchez, 19
Osman Araya, 30
Jose Ojeda, 47
Claudio Yanez, 34
Mario Gomez, 63
Alex Vega, 31
Jorge Galleguillos, 55
Edison Pena, 34
Carlos Barrios, 27
Victor Zamora, 33
Victor Segovia, 48
Daniel Herrera, 27
Omar Reygadas, 56
Esteban Rojas, 44
Pablo Rojas, 45
Dario Segovia, 48
Yonni Barrios, 50
Samuel Avalos, 43
Carlos Bugueno, 27
Jose Henriquez, 54
Renan Avalos, 29
Claudio Acuna, 44
Franklin Lobos, 53
Richard Villarroel, 26
Juan Aguilar, 49
Raul Bustos, 40
Pedro Cortez, 24 or 26
Ariel Ticona, 29
Luis Urzua, 54
The first miner to be rescued was Florencio Avalos, a 31-year-old driver, chosen because he was considered among the most physically and mentally fit of the group.
He smiled broadly as he emerged and hugged his weeping seven-year-old son and wife. He then embraced president Pinera, who had been at the scene overseeing the rescue operation.
Mario Sepulveda, a 39-year-old electrical specialist, was the second to reach the surface.
After hugging his wife, he jubilantly handed souvenir rocks to laughing rescuers.
"I'm so happy!" Sepulveda yelled, punching his fist in the air and hugging everyone in sight.
The miners were pulled up through a 600m-deep shaft in a rescue capsule wide as the shoulders of an average built miner, designed specifically for the operation.
The miners communicated with rescue teams using an intercom in the capsule.
It took only 16 minutes for miners to be pulled up the shaft. It was originally estimated that the journey would take half an hour, though the final ascents lasted only around nine.
Avalos began his journey after a mining rescue expert and a paramedic were lowered down the rescue tunnel to prepare the miners for their rescue.
Trouble at Alliance
Federal mine regulators have cited the Dotiki Mine for not doing enough to prevent the underground roof fall that killed two miners on April 28.
Mine owner Alliance Resources Partners L.P. took issue with the citation, noting that the federal Mine Safety and Health Administration's investigation report declared that the accident came without warning.
The MSHA report, released Friday, also declared that the mine was obeying its federally approved roof control plan at the time of the accident.
Nonetheless, MSHA cited Dotiki because "(t)he roof was not adequately supported or otherwise controlled to protect persons from hazards related to falls of the roof."
An earlier state investigation resulted in a similar ruling.
The roof collapse killed miners miners Justin Travis, 27, of Dixon and Michael Carter, 28, of Hanson. Travis was a continuous mining machine operator with more than three years of mining experience; Carter, a continuous mining machine helper, had two years of experience.
Federal investigators concluded that the roof fall occurred shortly after the mining machine cut coal from a seam approximately 900 feet beneath the surface of the ground. Unknown to the miners, the shale in that portion of mine roof had been weakened by natural fractures or faults, resulting in hidden slickensides or "slips" in the roof.
Even though the roof immediately above Travis and Carter's heads had been reinforced with long bolts, the removal of coal nearby and the presence of the overhead slips resulted in the collapse of what MSHA called a "massive" section of roof -- up to 76 feet long, 19 feet wide and as much as 10 feet thick.
"The absence of any sign of 'slips' in the immediate roof gave no warning for the need to install supplemental or additional support," MSHA concluded in its report.
The coal company applauded the findings of the federal investigation but objected to being cited for a violation of mine safety law.
"The MSHA investigation confirms the factual findings of our own internal investigation -- this roof fall was an unpredictable accident involving unforeseeable geological conditions," Kenny Murray, vice president of operations at Webster County Coal (the Alliance subsidiary that operates Dotiki), said in a statement.
"At no time during its investigation did MSHA indicate that this accident was preventable or that Webster County Coal was in any way negligent," Murray continued. "To the contrary, the MSHA report specifically acknowledges" that the approved roof control plan was being followed and that there was no signs of slips in the roof before the accident.
"Furthermore, in its citation MSHA specifically found that Webster County Coal was not negligent. In light of these facts, we strongly believe the citation issued today by MSHA is not justified," he said.
MSHA's Office of Assessment will fine the company sometime later, according to spokeswoman Amy Louviere.
Alliance, meanwhile, can appeal the agency's citation.
"The company always has an opportunity to request a conference with the district (MSHA) manager," Louviere said in an e-mail message. "If the matter can't be resolved, the company can take the case before an administrative law judge with the Federal Mine Safety and Health Review Commission."
In July, the state issued a notice of non-compliance to Webster County Coal related to the April 28 roof fall, saying the company was in violation of Kentucky law that require companies to have a roof control plan that adequately provides protection to miners from falls of the mine's roof or ribs.
The company said at the time that "the accident was the result of unpredictable and unforeseeable geologic conditions that were highly unusual at the Dotiki mine."
A slickenside, as cited in the MSHA report, is an indication of a crack or fault line in rock, according to Kentucky State Geologist Jim Cobb, director of the Kentucky Geological Survey.
"It's a polished surface along a fracture" caused by friction when the two sides have "moved past one another," Cobb said.
MSHA's Louviere noted that "the slickensides were not evidenced until the roof fell. You had to look up over the fallen material to the newly exposed roof approximately 10 to 12 feet to see the slickenside. That is what made it unusual. Generally, the slickenside would be visible in the mine roof."
Dotiki, one of nine mining complexes operated by Alliance, employs more than 400 miners. It produced 4.2 million tons of coal last year, according to the company.
The mine has operated since 1966. Before the April roof fall, three miners had died in separate accidents: An electrocution in 1984, an underground tram accident in 1988 and an above-ground dozer accident in 1995.
Although the mine had been cited for violations at various times, the MSHA investigation reported that Dotiki's safety record, by at least one measure, was better than the industry average last year.
The mine experienced 3.68 injuries for every 200,000 hours worked in 2009, compared with the national average of 4.16 for underground mines.
Mine owner Alliance Resources Partners L.P. took issue with the citation, noting that the federal Mine Safety and Health Administration's investigation report declared that the accident came without warning.
The MSHA report, released Friday, also declared that the mine was obeying its federally approved roof control plan at the time of the accident.
Nonetheless, MSHA cited Dotiki because "(t)he roof was not adequately supported or otherwise controlled to protect persons from hazards related to falls of the roof."
An earlier state investigation resulted in a similar ruling.
The roof collapse killed miners miners Justin Travis, 27, of Dixon and Michael Carter, 28, of Hanson. Travis was a continuous mining machine operator with more than three years of mining experience; Carter, a continuous mining machine helper, had two years of experience.
Federal investigators concluded that the roof fall occurred shortly after the mining machine cut coal from a seam approximately 900 feet beneath the surface of the ground. Unknown to the miners, the shale in that portion of mine roof had been weakened by natural fractures or faults, resulting in hidden slickensides or "slips" in the roof.
Even though the roof immediately above Travis and Carter's heads had been reinforced with long bolts, the removal of coal nearby and the presence of the overhead slips resulted in the collapse of what MSHA called a "massive" section of roof -- up to 76 feet long, 19 feet wide and as much as 10 feet thick.
"The absence of any sign of 'slips' in the immediate roof gave no warning for the need to install supplemental or additional support," MSHA concluded in its report.
The coal company applauded the findings of the federal investigation but objected to being cited for a violation of mine safety law.
"The MSHA investigation confirms the factual findings of our own internal investigation -- this roof fall was an unpredictable accident involving unforeseeable geological conditions," Kenny Murray, vice president of operations at Webster County Coal (the Alliance subsidiary that operates Dotiki), said in a statement.
"At no time during its investigation did MSHA indicate that this accident was preventable or that Webster County Coal was in any way negligent," Murray continued. "To the contrary, the MSHA report specifically acknowledges" that the approved roof control plan was being followed and that there was no signs of slips in the roof before the accident.
"Furthermore, in its citation MSHA specifically found that Webster County Coal was not negligent. In light of these facts, we strongly believe the citation issued today by MSHA is not justified," he said.
MSHA's Office of Assessment will fine the company sometime later, according to spokeswoman Amy Louviere.
Alliance, meanwhile, can appeal the agency's citation.
"The company always has an opportunity to request a conference with the district (MSHA) manager," Louviere said in an e-mail message. "If the matter can't be resolved, the company can take the case before an administrative law judge with the Federal Mine Safety and Health Review Commission."
In July, the state issued a notice of non-compliance to Webster County Coal related to the April 28 roof fall, saying the company was in violation of Kentucky law that require companies to have a roof control plan that adequately provides protection to miners from falls of the mine's roof or ribs.
The company said at the time that "the accident was the result of unpredictable and unforeseeable geologic conditions that were highly unusual at the Dotiki mine."
A slickenside, as cited in the MSHA report, is an indication of a crack or fault line in rock, according to Kentucky State Geologist Jim Cobb, director of the Kentucky Geological Survey.
"It's a polished surface along a fracture" caused by friction when the two sides have "moved past one another," Cobb said.
MSHA's Louviere noted that "the slickensides were not evidenced until the roof fell. You had to look up over the fallen material to the newly exposed roof approximately 10 to 12 feet to see the slickenside. That is what made it unusual. Generally, the slickenside would be visible in the mine roof."
Dotiki, one of nine mining complexes operated by Alliance, employs more than 400 miners. It produced 4.2 million tons of coal last year, according to the company.
The mine has operated since 1966. Before the April roof fall, three miners had died in separate accidents: An electrocution in 1984, an underground tram accident in 1988 and an above-ground dozer accident in 1995.
Although the mine had been cited for violations at various times, the MSHA investigation reported that Dotiki's safety record, by at least one measure, was better than the industry average last year.
The mine experienced 3.68 injuries for every 200,000 hours worked in 2009, compared with the national average of 4.16 for underground mines.
Sunday, October 10, 2010
Regulation Affecting the Coal Industry
Because coal mining can have a number of significant impacts on the surrounding environment and miners, coal producers are required to go through a complicated process for obtaining local, sate, and federal permits to mine.
Coal mining is one of the most extensively regulated industries in the United States. Before one shovel of earth can be turned, or one ton of coal removed from the ground, a company must comply with literally hundreds of laws and thousands of regulations. Meeting all the requirements is arduous and time-consuming, even for the most efficient and well-managed companies. As long as 10 years can elapse between the start of planning a mine and mining the first ton of coal.
The process begins with a mining company providing detailed information about such activities as how the coal will be mined, and the land reclaimed; the quality and quantity of surface and underground sources of water and how mining activities will affect them; and how the coal will be transported from the mine and how that will affect the area.
Surface mining operators also must consider the soil and prevailing climatological conditions prior to mining, because the land has to be returned to approximately the same physical contour, and to a state of productivity equal to or better than the pre-mining condition. Wildlife habitats cannot be permanently disrupted, and archeological resources must be protected. The principal federal surface mining law sets forth 25 reclamation requirements for operators to meet. These include public hearings and procedures for obtaining permits. To make certain that lands being mined will be restored, the law requires companies to post bonds, as high as $10,000 per acre, to cover reclamation.
Concern for the environment was not always a high priority for the coal industry or our society as a whole. Consequently, in some areas of the country abandoned mines dot the landscape. Their operators simply stopped mining because the coal seam was exhausted, they were bankrupt, or for some other reason they no longer could or would mine coal. To restore these "orphan lands," and eliminate unsightly and unsafe conditions, today's coal producers pay a special tax on every ton of coal they produce. The money, which goes into the federal Abandoned Mine Lands Fund, provides financing for reclamation projects initiated by state agencies.
Coal mining companies work hard to maintain the environment. The law requires it, but they also understand that the right to remove coal carries with it a great responsibility. Based on Office of Surface Mining data, it is estimated that mined lands totaling an area greater than the size of the state of Delaware have been reclaimed since 1977. Over time, as today's coal producers pay for the shortsightedness of their predecessors with their tax contributions to the Abandoned Mine Lands Fund, the percentage of lands reclaimed will rise.
As long ago as the 1930s some states had reclamation laws on their books. But in the late 1970s, when there was significant energy development activity in the West, Congress enacted the Surface Mining Control and Reclamation Act (SMCRA), which mandated strict regulation of surface mining. It because the first comprehensive national surface mining law, and a tough one.
The most extensive regulations affecting surface mining are a consequence of SMCRA. Under the law, individual states which establish federally approved enforcement programs have the primary responsibility for enforcing mining regulations in their jurisdictions. Where no such programs exist, the federal law is implemented by the Office of Surface Mining Reclamation and Enforcement in the Department of Interior.
Other federal laws with significant impact are the Clean Air Act, the Clean Water Act, and the National Environmental Policy Act. In addition, each state where surface mining occurs has its own set of laws and regulations.
Beyond the specific requirements of the federal laws already noted, many other legislative acts affect some or all surface mining in this country:
American Indian Religious Freedom Act of 1978
Antiquities Act of 1906
Archeological Nd Historical Preservation Act of 1974
Archeological Salvage Act
Bald Eagle Protection Act of 1969
Endangered Species Act of 1963
Fish and Wildlife Coordination Act of 1934
Forest and Rangeland Resources Planning Act of 1974
Historic Preservation Act of 1966
Migratory Bird Treaty Act of 1918
Mining and Minerals Policy Act of 1970
Multiple Use - Sustained Yield Act of 1960
National Forests Management Act of 1976
National Trails System Act
Noise Control Act of 1976
Resource Conservation and Recovery Act
Safe Drinking Water Act of 1974
Soil and Water Resources Conservation Act of 1977
Wild and Scenic Rivers Act
Wilderness Act of 1964
In directing the states to enforce the federal surface mining law, Congress recognized that effective coal mining regulation must take into account local conditions and problems unique to certain areas. To a large degree, that process has worked well. Where problems exist, they are generally caused by a handful of irresponsible operators, who flout the law and take the coal without preserving the land.
Coal mining is one of the most extensively regulated industries in the United States. Before one shovel of earth can be turned, or one ton of coal removed from the ground, a company must comply with literally hundreds of laws and thousands of regulations. Meeting all the requirements is arduous and time-consuming, even for the most efficient and well-managed companies. As long as 10 years can elapse between the start of planning a mine and mining the first ton of coal.
The process begins with a mining company providing detailed information about such activities as how the coal will be mined, and the land reclaimed; the quality and quantity of surface and underground sources of water and how mining activities will affect them; and how the coal will be transported from the mine and how that will affect the area.
Surface mining operators also must consider the soil and prevailing climatological conditions prior to mining, because the land has to be returned to approximately the same physical contour, and to a state of productivity equal to or better than the pre-mining condition. Wildlife habitats cannot be permanently disrupted, and archeological resources must be protected. The principal federal surface mining law sets forth 25 reclamation requirements for operators to meet. These include public hearings and procedures for obtaining permits. To make certain that lands being mined will be restored, the law requires companies to post bonds, as high as $10,000 per acre, to cover reclamation.
Concern for the environment was not always a high priority for the coal industry or our society as a whole. Consequently, in some areas of the country abandoned mines dot the landscape. Their operators simply stopped mining because the coal seam was exhausted, they were bankrupt, or for some other reason they no longer could or would mine coal. To restore these "orphan lands," and eliminate unsightly and unsafe conditions, today's coal producers pay a special tax on every ton of coal they produce. The money, which goes into the federal Abandoned Mine Lands Fund, provides financing for reclamation projects initiated by state agencies.
Coal mining companies work hard to maintain the environment. The law requires it, but they also understand that the right to remove coal carries with it a great responsibility. Based on Office of Surface Mining data, it is estimated that mined lands totaling an area greater than the size of the state of Delaware have been reclaimed since 1977. Over time, as today's coal producers pay for the shortsightedness of their predecessors with their tax contributions to the Abandoned Mine Lands Fund, the percentage of lands reclaimed will rise.
As long ago as the 1930s some states had reclamation laws on their books. But in the late 1970s, when there was significant energy development activity in the West, Congress enacted the Surface Mining Control and Reclamation Act (SMCRA), which mandated strict regulation of surface mining. It because the first comprehensive national surface mining law, and a tough one.
The most extensive regulations affecting surface mining are a consequence of SMCRA. Under the law, individual states which establish federally approved enforcement programs have the primary responsibility for enforcing mining regulations in their jurisdictions. Where no such programs exist, the federal law is implemented by the Office of Surface Mining Reclamation and Enforcement in the Department of Interior.
Other federal laws with significant impact are the Clean Air Act, the Clean Water Act, and the National Environmental Policy Act. In addition, each state where surface mining occurs has its own set of laws and regulations.
Beyond the specific requirements of the federal laws already noted, many other legislative acts affect some or all surface mining in this country:
American Indian Religious Freedom Act of 1978
Antiquities Act of 1906
Archeological Nd Historical Preservation Act of 1974
Archeological Salvage Act
Bald Eagle Protection Act of 1969
Endangered Species Act of 1963
Fish and Wildlife Coordination Act of 1934
Forest and Rangeland Resources Planning Act of 1974
Historic Preservation Act of 1966
Migratory Bird Treaty Act of 1918
Mining and Minerals Policy Act of 1970
Multiple Use - Sustained Yield Act of 1960
National Forests Management Act of 1976
National Trails System Act
Noise Control Act of 1976
Resource Conservation and Recovery Act
Safe Drinking Water Act of 1974
Soil and Water Resources Conservation Act of 1977
Wild and Scenic Rivers Act
Wilderness Act of 1964
In directing the states to enforce the federal surface mining law, Congress recognized that effective coal mining regulation must take into account local conditions and problems unique to certain areas. To a large degree, that process has worked well. Where problems exist, they are generally caused by a handful of irresponsible operators, who flout the law and take the coal without preserving the land.
Commitment to Community and Strategic Partnerships
Alliance believes that being active in the community is imperative to being a great company. Below are just some of the examples of the ways in which Alliance helps out local and international communities.
Alliance has created and actively fosters close ties with the colleges and universities in the areas near our operations. Alliance maintains long-standing relationships with many of the top Mining Engineering programs in the nation and are very proud of their internship program. Alliance recently provided funding for a new Mining Engineering Lab at the University of Kentucky. In addition, Alliance has committed to the establishment of the Alliance Coal Chair in Mining Engineering at the University of Kentucky, pledging $1.2 million dollars to assist the University in attracting, hiring, and retaining the best and brightest mining engineering professors. The position is expected to be filled in time for the 2010 Fall semester.
Alliance is proud of its association with the Kentucky Community and Technical College System (KCTCS). Alliance and the KCTCS work together to train new and current employees. New employees are trained extensively so that they may enter the workplace capable of performing their job duties more safely and efficiently than typical novice miners. Current employees are eligible and encouraged to attend classes that will help them perform their jobs with an even higher level of confidence and skill. This allows Alliance to have a pool of possible employees trained and ready to work in the coal mining industry.
Alliance has created and actively fosters close ties with the colleges and universities in the areas near our operations. Alliance maintains long-standing relationships with many of the top Mining Engineering programs in the nation and are very proud of their internship program. Alliance recently provided funding for a new Mining Engineering Lab at the University of Kentucky. In addition, Alliance has committed to the establishment of the Alliance Coal Chair in Mining Engineering at the University of Kentucky, pledging $1.2 million dollars to assist the University in attracting, hiring, and retaining the best and brightest mining engineering professors. The position is expected to be filled in time for the 2010 Fall semester.
Alliance is proud of its association with the Kentucky Community and Technical College System (KCTCS). Alliance and the KCTCS work together to train new and current employees. New employees are trained extensively so that they may enter the workplace capable of performing their job duties more safely and efficiently than typical novice miners. Current employees are eligible and encouraged to attend classes that will help them perform their jobs with an even higher level of confidence and skill. This allows Alliance to have a pool of possible employees trained and ready to work in the coal mining industry.
Alliance Commitment to the Environment
Alliance is committed to restoring the areas around our mines upon completion of mining activities. Our goal is to leave the land in a better condition than it was prior to mining operations. Below are two examples of successful Alliance restoration projects.
During mining in Western Kentucky at Hopkins County Coal, Alliance impacted 660 acres of hardwood wetlands. After mining was completed, Alliance restored the wetlands with more than 40,000 seedlings, many of which are growing at the exceptional rate of 2-3 feet per year. Although Alliance only impacted 660 acres, we revitalized nearly 1,200 additional acres, meaning over 1,800 acres have been returned to a natural state as of 2009. Of this acreage, 734 acres have been transferred to the Kentucky Department of Fish & Wildlife for further use.
In Eastern Kentucky, Alliance successfully restored 200 acres of wetlands in the Dollar Branch area as part of a Compensatory Mitigation project. For this project, which was not on Alliance-mined lands, we worked with state and federal agencies, environmental groups, and the bankrupt owner of the Dollar Branch site. Prior to mitigation, the water in the Dollar Branch area was very acidic and high in iron content. After the efforts of Alliance and its partners on this project, the water was restored to normal pH and iron levels.
During mining in Western Kentucky at Hopkins County Coal, Alliance impacted 660 acres of hardwood wetlands. After mining was completed, Alliance restored the wetlands with more than 40,000 seedlings, many of which are growing at the exceptional rate of 2-3 feet per year. Although Alliance only impacted 660 acres, we revitalized nearly 1,200 additional acres, meaning over 1,800 acres have been returned to a natural state as of 2009. Of this acreage, 734 acres have been transferred to the Kentucky Department of Fish & Wildlife for further use.
In Eastern Kentucky, Alliance successfully restored 200 acres of wetlands in the Dollar Branch area as part of a Compensatory Mitigation project. For this project, which was not on Alliance-mined lands, we worked with state and federal agencies, environmental groups, and the bankrupt owner of the Dollar Branch site. Prior to mitigation, the water in the Dollar Branch area was very acidic and high in iron content. After the efforts of Alliance and its partners on this project, the water was restored to normal pH and iron levels.
Cap and Trade affects on the coal industry in Kentucky
Cap and trade is a system by which the government sets an arbitrary level, or “cap”, on the amount of carbon that companies are allowed to emit. Companies must then purchase credits from the government that represent the right to emit a specific amount. Companies that wish to increase their emissions must buy credits (the “trade”) from those who produce less.
Most energy production is from burning coal and natural gas. This produces a gas called carbon dioxide from the complete combustion of carbon with oxygen. Any utilities using coal or natural gas for electricity will be required by law to purchase "carbon credits" from the Federal Government to offset the carbon dioxide that is emitted from the combustion of carbon with oxygen when burned.
In an effort to maintain United State’s competitiveness and productivity, there is not a current cap and trade system in effect. Every cap and trade system proposed in the U.S. Congress has been rejected by not only members, but the general public as well.
Over 95 percent of Kentucky's electricity comes from coal generated power plants. Kentucky is third in the nation in coal production, generating over $3 billion in sales and hundreds of millions in tax revenue. The Kentucky coal industry employs more than 15,000 people.
The "cap and trade" provision will not only devastate the coalfield communities in eastern and western Kentucky, it will destroy large segments of Kentucky's manufacturing base, particularly energy intensive industries like steel and aluminum.
Cap and Trade would have a devastating effect on Kentucky economy. It wouldn't result in a world wide carbon reduction. The cap and trade program would put thousands of Kentuckians out of work, and would put thousands of Kentucky's highest paid union and engineering jobs at risk. The coal mines, power industry, chemical manufacturers, petroleum refineries, steel mines, and auto manufacturers would be put in an Obama made economic crisis. These businesses would end up closing, and would stop expanding. Many coal plants would go over seas where less efficient and less regulated overseas coal plants would produce our products and increase worldwide carbon emissions. Energy cost will increase as will prices.
Kentucky currently produces 30 percent of our nation's steel and aluminum. Together, these industries employ thousands of Kentuckians in communities like Ashland, Russellville, Sebree, Hawesville and Lewisport. The energy tax in the "cap and trade" provision will significantly increase the cost of producing steel and aluminum, putting our companies at a severe competitive disadvantage compared to their competitors in other countries.
High-end estimates suggest that Cap and Trade will cost the average Kentuckian an extra $1000 a year on their utility bills. This increase in cost may come to Kentuckians when they are already boiling over with the consequences of a weak economy and are least able to condone an attack on the Coal industry, the state's backbone.
While a Cap and Trade battle in Congress may or may not materialize; the EPA has reported that they may consider going around Congress via regulatory statute in the Clean Air Act.
Most energy production is from burning coal and natural gas. This produces a gas called carbon dioxide from the complete combustion of carbon with oxygen. Any utilities using coal or natural gas for electricity will be required by law to purchase "carbon credits" from the Federal Government to offset the carbon dioxide that is emitted from the combustion of carbon with oxygen when burned.
In an effort to maintain United State’s competitiveness and productivity, there is not a current cap and trade system in effect. Every cap and trade system proposed in the U.S. Congress has been rejected by not only members, but the general public as well.
Over 95 percent of Kentucky's electricity comes from coal generated power plants. Kentucky is third in the nation in coal production, generating over $3 billion in sales and hundreds of millions in tax revenue. The Kentucky coal industry employs more than 15,000 people.
The "cap and trade" provision will not only devastate the coalfield communities in eastern and western Kentucky, it will destroy large segments of Kentucky's manufacturing base, particularly energy intensive industries like steel and aluminum.
Cap and Trade would have a devastating effect on Kentucky economy. It wouldn't result in a world wide carbon reduction. The cap and trade program would put thousands of Kentuckians out of work, and would put thousands of Kentucky's highest paid union and engineering jobs at risk. The coal mines, power industry, chemical manufacturers, petroleum refineries, steel mines, and auto manufacturers would be put in an Obama made economic crisis. These businesses would end up closing, and would stop expanding. Many coal plants would go over seas where less efficient and less regulated overseas coal plants would produce our products and increase worldwide carbon emissions. Energy cost will increase as will prices.
Kentucky currently produces 30 percent of our nation's steel and aluminum. Together, these industries employ thousands of Kentuckians in communities like Ashland, Russellville, Sebree, Hawesville and Lewisport. The energy tax in the "cap and trade" provision will significantly increase the cost of producing steel and aluminum, putting our companies at a severe competitive disadvantage compared to their competitors in other countries.
High-end estimates suggest that Cap and Trade will cost the average Kentuckian an extra $1000 a year on their utility bills. This increase in cost may come to Kentuckians when they are already boiling over with the consequences of a weak economy and are least able to condone an attack on the Coal industry, the state's backbone.
While a Cap and Trade battle in Congress may or may not materialize; the EPA has reported that they may consider going around Congress via regulatory statute in the Clean Air Act.
Subscribe to:
Comments (Atom)