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ECONOMIC, ABUNDANT/SECURE AND ENVIRONMENTALLY SOUND 2008 Membership Directory Issue 1 • 2008 A Coal Powered North America In this issue... FutureGen Update Fuel Flexibility Climate Change

America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

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Page 1: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

Economic, AbundAnt/SEcurE And EnvironmEntAlly Sound

2008 Membership DirectoryIssue 1 • 2008

A Coal Powered North America

In this issue...FutureGen Update

Fuel Flexibility

Climate Change

Page 2: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

DTE Coal Services’ Chicago Fuels Terminal is thenewest transshipment facility on the Great Lakes.Located on the Calumet River, the Chicago FuelsTerminal provides a host of customer benefits:

State-of-the-art facilities which offer optimumsolid fuel blending, including simultaneousblending of up to four different fuels at greaterthan 99% accuracy.

Its large size means more storage options and flexibility for various coal and petroleum coke supplies.A wide range of transportation options for inbound and outbound deliveries:

Rail: Access to Powder River Basin, Colorado, Utah, Montana, Illinois Basin and Central Appalachian coal.Vessel: Direct shipment from rail or stockpile into Great Lakes vessels.Barge: Access to the Mississippi and Illinois Rivers.Truck: On-site certified scales to facilitate regional deliveries.

DTE Coal Services is the ideal partner to help you manage costs and maximize the reliability of your fuel supply. As one of the largest third-party marketers of coal andtransportation in the country, DTE Coal Services is the one-stop coal solutions provider for utility and industrial customers. Contact us today.

www.DTECS.com734.887.4223

F o r a l l t h e e n e r g y y o u ' l l e v e r n e e d e = D T E ®

For all your coal...and alternative fuel needs.

Page 3: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

Economic, AbundAnt/SEcurE And EnvironmEntAlly Sound

1american coal council

Published for:AmericAn coAl council1101 Pennsylvania Ave. N.W., Suite 600 Washington, DC 20004Tel: 202-756-4540 Fax:202-756-7323 Fax: 732-231-6581 www.americancoalcouncil.org

ACC Editorial Review BoardJanet Gellici, American Coal CouncilJason Hayes, American Coal CouncilRick James, We EnergiesAndy Marti, Martin EngineeringBeth Sutton, Peabody Energy

Published by:Lester Publications, LLC 2131 NW 40th Terrace – Suite A Gainesville, FL 32605 Main line: (352) 338-2700 Toll Free: (877) 387-2700

President Jeff Lester | (866) 953-2189

Publishing DirectorSean Davis | (888) 953-2190

managing editor Bonnie Winter Fedak | (866) 953-2181

Graphic DesignerJohn Lyttle | (204) 953-2180

Account executivesQuinn Bogusky, Jeanine English, Shannon Evans, Mike Mechaney, Louise Peterson, Toban Vexzon

© 2008 American Coal Council. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the ACC.

DisclaimerThe opinions expressed by the authors of the editorial articles contained in American Coal magazine are those of the respective authors and do not necessarily represent the opinion of the American Coal Council or its member companies

Printed in CanadaPlease recycle where facilities exist.

ContentsMessage from ACC President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Message from ACC CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Message from ACC Communications Director . . . . . . . . . . . . . . . . . . . . . . . 7ACC Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9ACC Vision and Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102008 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10ACC Member Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11ACC Champion & Patron Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11FutureGen Update: Progress Toward Near Zero-emissionsUnique Program Researches Technology to Reduce Emissions . . . . . . . . . . . 13Blueprint for a 2009 National Energy Policy . . . . . . . . . . . . . . . . . 15Should We Be Concerned?Coal Plant Cancellations: Will we figure it out in time? . . . . . . . . . . . . . . . . 19Generation & Transportation FuelsWhy is Fuel Flexibility Like a Shock Absorber? . . . . . . . . . . . . . . . . . . . . . . 23Dominion Energy’s Virginia City Hybrid Energy Center: Using CFB to meet energy and environmental needs . . . . . . . . . . . . . . . . 27Coal Liquids in America’s Energy Future . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Reducing Greenhouse Gas Emissions Through Coal Ash Utilization: New task team preparing industry for a cap and trade future . . . . . . . . . . 33Regulatory Firestorm Looms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Book ReviewsRe-examining “Consensus” and the Drivers of Climate Change . . . . . . . . . . 41Future Energy: How the New Oil Industry Will Change People, Politics, and Portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47ACC Excellence Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Supplying Coal to the MarketThe Path to Improved Mine Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Energy Demand vs. Environmental Responsibility: The promise of cleaner coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Index to Advertisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Membership Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Insert

On the cover: The cover of this issue of American Coal illustrates the connection between North America’s energy

needs and the coal industry. Photographer John Mueller

took the original photo of the train.

ECONOMIC, ABUNDANT/SECURE AND ENVIRONMENTALLY SOUND

2008 Membership Directory

A Coal Powered North America

In this issue...FutureGen Update

Fuel Flexibility

Climate Change

DTE Coal Services’ Chicago Fuels Terminal is thenewest transshipment facility on the Great Lakes.Located on the Calumet River, the Chicago FuelsTerminal provides a host of customer benefits:

State-of-the-art facilities which offer optimumsolid fuel blending, including simultaneousblending of up to four different fuels at greaterthan 99% accuracy.

Its large size means more storage options and flexibility for various coal and petroleum coke supplies.A wide range of transportation options for inbound and outbound deliveries:

Rail: Access to Powder River Basin, Colorado, Utah, Montana, Illinois Basin and Central Appalachian coal.Vessel: Direct shipment from rail or stockpile into Great Lakes vessels.Barge: Access to the Mississippi and Illinois Rivers.Truck: On-site certified scales to facilitate regional deliveries.

DTE Coal Services is the ideal partner to help you manage costs and maximize the reliability of your fuel supply. As one of the largest third-party marketers of coal andtransportation in the country, DTE Coal Services is the one-stop coal solutions provider for utility and industrial customers. Contact us today.

www.DTECS.com734.887.4223

F o r a l l t h e e n e r g y y o u ' l l e v e r n e e d e = D T E ®

For all your coal...and alternative fuel needs.

Page 4: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South
Page 5: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

if there is one thing that helps us to maintain our focus and to confirm where we need to be directing our

energy, it is taking the time to ask, “What are the needs of our member compa-nies?” Where industry is focused on pro-viding a necessary product and address-ing shareholder concerns, our focus – as an association – is mainly on serving our members.

To accomplish that goal, the ACC has sought out your thoughts and feelings on several issues and then, in response to your replies, made many changes or upgrades in our offerings over the past few years.

One consistent theme in your replies was the need to stay on top of the rapid-fire policy changes occurring on the energy and environmental fronts. In the past year we have, therefore, finalized our work on creating a “beltway” presence. We opened our office in the Washington D.C. area and are now better able to keep our fingers on the “pulse” of these policy changes.

Another area of concern for our mem-bers is the challenges that utilities are facing as government enacts more and more stringent environmental regulations. With increasing pressure being placed on

We’re Focused on You – the MemberTom Vorholt, ACC President & Vice President Dry Cargo Sales, Ingram Barge Company

A MeSSAge frOM The ACC PreSIDeNT

government and industry to develop detailed carbon dioxide reduction legisla-tion, our utility members are on the front of a major policy battle that will permanently impact our energy supply and the costs of energy across the country. It is critically important that our utility members have an information source that helps them to stay informed on new research and tech-nologies, as well as changing regulations. They also need more and more opportuni-ties to network with other utilities, their suppliers, and service providers.

In response, we have expanded our focus on providing information and services to our utility members. We have tailored our conference programs – changing the struc-ture, timing, and formats. We are now offering our Spring Coal Forum in March to help you avoid the clutter of other conference programs that have previously clogged your schedules. We have also cre-ated a Fuel Flexibility Conference that will help utilities to better understand their fuel choice options. We’re continuing with our Coal Market Strategies Conference, as well as our strategic alliance with the Coal Trading Association to co-host the Coal Trading Conference.

In all of our conferences, we are also now offering utilities a “2-for-1” pricing structure. By doing this, we’re working to ensure that utilities have immediate access to the most up-to-date research and infor-mation, as well as abundant networking and information-sharing opportunities.

But we’re not stopping there. We are also seeking out new research, reports, and information on policy, environmen-tal regulations, environmental science, and industry operations. We then make sure that we have descriptions and links to that information on our Web site and in the Coalblog so our members and the public can stay up to date on industry information by going to one easy-to-use

Web location. For those members who are not interested in using our Web-based resources, we continue to expand on the information in our monthly and quar-terly email newsletters and our magazine, American Coal.

Lastly, as I noted in the initial sentences of this message, we’re staying focused on our membership as a whole. In a specific attempt to meet the member base and to try to understand your needs, ACC employees are traveling to your locations, sitting down with you, and asking you point-blank, “What do you need from us?” Our goal is to find out from you, face-to-face, what you need and how we can help you achieve your goals. When added to our normal methods of online membership surveys, conference evalua-tion forms, Web site comments, and other information gathering tools, we’re pushing the boundaries to ensure that we better understand where you are coming from.

The overriding challenge that we face as an association is to ensure that our mem-bers’ needs – your needs – are being met. We’re making the changes and working to ensure that your membership dollar is coming back to you several times over in information and services.

But all of these new programs, initia-tives, and our member-focused outlook will not work if we don’t get your feed-back. Please make sure to let us know how we can serve you better. While we go out of our way to contact you, we also encour-age you to get in touch with us.

Call us at our offices (202-756-4540); e-mail us at [email protected] and [email protected]. You can also fill out our conference evaluations, respond to our surveys, or even get involved on our board of directors.

The more we can get in touch with you, the more we can learn how to serve you better.  u

3american coal council

Page 6: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

OVER 9,139,500 HOURSOF COAL ENGINEERING

EXPERTISE.

RO

BE

RT

S

&

SC

HA

EF

ER

For more than 100 years, Roberts & Schaefer has been the leader for quality engineering solutions in all phases of coal drying, coal preparation and material handling. From small, specialized projects, to total turnkey operations, we have the experience you need.

To learn more about Roberts & Schaefer; contact us today.

Full Service Engineering

ENI Coal Dryer Systems

State-of-the-Art Coal Prep Plants

Plant Layout and Material Handling

Architectural Design of Facility Shops and Offices

PRB Handling Issues

Civil, Structural, Mechanical, Piping, and HVAC

Process Engineering

Electrical Transmission and Distribution

Process Control and Automation

Coal Transportation and Delivery Solutions

Project Management, Procurement, Expediting, and Construction Management

C O A L E X P E R T I S E & P R O J E C T S W O R L D W I D E

Roberts & Schaefer Company10150 South Centennial Parkway, Suite #400Sandy, Utah 84070801-984-0900 phone801-984-0909 [email protected] Coal Dryers

Page 7: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

A few months ago I read Walter Isaacson’s biography of Albert Einstein. I’d always been in-

trigued by Einstein’s capacity to make sense out of non-logical and non-linear systems; to connect seemingly random, chaotic dots. His efforts were instru-mental in the formation of what we now know as chaos theory.

By its very definition, chaos would seem to defy logic. The classic definition of chaos is “a state of utter confusion or disorder; a total lack of organization or order.” Modern-day chaos theory focuses on the relationship between seemingly insignificant events in the universe that have the potential to trigger a chain reaction that will change the whole system. A well-known saying in connection with this issue is “a butterfly flapping its wings in one part of the world can cause a hurricane on the other side of the earth.” This is also known as the “but-terfly effect.”

So, why all this pondering about chaos? Well these days, I find myself wondering if even Einstein could make sense of the appar-ent chaos in today’s coal industry. I think he would certainly appreciate the manifestation of the butterfly effect in our global market-place and public policy arenas.

The explosive growth in emerging economies such as China and India is well documented. The resultant increase

Cause and effectJanet gellici, CAe, CeO, American Coal Council

A MeSSAge frOM The ACC CeO

in demand for more electricity and more transportation fuels is undisputed. Less clear is how recessionary factors here in the U.S. are likely to affect energy demand. A $3-per-gallon price for gasoline hasn’t seemed to squelch our use of SUVs. Will a $4-per-gallon price increase our use of mass transit systems? We may be pinching pennies by eating out less, but we’re staying home watching more programs on our flat screen TVs, recharging our cell phones and logging on to the Internet.

Global thermal and met coal markets have been directly impacted by economics, as well as politics and weather conditions. On the thermal side: Harsh winter conditions and a booming economy in China have resulted in brownouts and a government halt of exports to conserve stockpiles. In response to low coal inventories and increasing demand, India’s Power Ministry has called on utilities to increase coal imports. Power outages in South Africa and price majeure initiatives in Venezuela have further disrupted traditional supply flows.

In met markets: Steel prices are increas-ing in response to economic growth and coke makers’ inventories have reached criti-cal levels, while global coke prices and met coal demand are surging. China has become a net importer of met coal and imposed a tax on met coal exports. Mine explosions in the Ukraine, rail problems in Russia and declines in Polish reserves have curtailed met supplies from these regions. Australia con-tinues to struggle with flooding issues and rail and port capacity constraints.

U.S. suppliers’ efforts to fill the gap in both global thermal and met coal demand is drawing Eastern coal into international markets with, as yet, untold implications for domestic utilities and electricity consumers. Future production in our nation is being pressured by increasingly stringent mine safety requirements, curtailed permitting of new mines and geological constraints.

Bearing the brunt of much of this chaos, U.S. utility generators and industrial coal consumers are attempting to make sense of how to meet anticipated increased demand

in light of fluctuating supply factors, increasing prices for fuel, transportation and infrastructure development, and compliance with pending environmental require-ments. The sheer number and complexity of the variables affecting fuel choice and development decisions is taxing the most sophisticated “what if” computer models.

In the midst of all this apparent chaos, what is clear is that decisions we make today have profound and far-reaching – butterfly – effects. Beijing’s efforts to advance the well-being of its citizens through increased electrification, mobility (transportation) and infrastructure development, have significant global environmental implica-tions and a direct impact on the cost of energy and consumer goods for citizens in Athens, Ga. Similarly, a judge’s deci-sion to deny permitting of a coal mine in West Virginia, and a politician’s decision to curtail development of a new coal power plant in Kansas, will also impact citizens in Athens, Ga.

Actions – even well intentioned – have consequences. Perhaps our intention is to curtail CO2 emissions in an effort to reduce global warming. Are we willing to curtail our nation’s economic prosperity to achieve that objective? Are we willing to increase our reliance on foreign energy sources to achieve that objective? Are we willing to decrease our use of electricity to achieve that objec-tive? Are we willing to pay more for gasoline, consumer goods and air travel to achieve that objective? Are we willing to constrain our national prosperity while other nations advance theirs?

Maybe we are; maybe we aren’t. Maybe there’s a balance that needs to be struck between our intentions and the reality of their effects. Yes, it’s chaotic. In our efforts to make sense of it all, it’s important to keep questioning, to consider the consequences of our actions, to strive toward an under-standing of cause and effect, to achieve an acceptable balance.

As Einstein said,“Life is like riding a bicycle. To keep your

balance you must keep moving.”  u

OVER 9,139,500 HOURSOF COAL ENGINEERING

EXPERTISE.

RO

BE

RT

S

&

SC

HA

EF

ER

For more than 100 years, Roberts & Schaefer has been the leader for quality engineering solutions in all phases of coal drying, coal preparation and material handling. From small, specialized projects, to total turnkey operations, we have the experience you need.

To learn more about Roberts & Schaefer; contact us today.

Full Service Engineering

ENI Coal Dryer Systems

State-of-the-Art Coal Prep Plants

Plant Layout and Material Handling

Architectural Design of Facility Shops and Offices

PRB Handling Issues

Civil, Structural, Mechanical, Piping, and HVAC

Process Engineering

Electrical Transmission and Distribution

Process Control and Automation

Coal Transportation and Delivery Solutions

Project Management, Procurement, Expediting, and Construction Management

C O A L E X P E R T I S E & P R O J E C T S W O R L D W I D E

Roberts & Schaefer Company10150 South Centennial Parkway, Suite #400Sandy, Utah 84070801-984-0900 phone801-984-0909 [email protected] Coal Dryers

5american coal council

Page 8: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

Chevron Mining Inc.

More than one hundred and twenty years of operating excellence, now more than 1500 employees strong. A company committed to safety above all else - that was P&M Coal. And today, we are Chevron Mining Inc.

Our name has changed, but our values remain the same: Protecting our people, our communities and our environment - that’s the Chevron Way.

Founded in 1885, P&M Coal is one of the oldest continuously operating mining companies in the United States. Striving to be the mining company most admired for our People, Partnership and Performance, Chevron Mining Inc. is a proud member of the Chevron family of companies.

�e Pittsburg & Midway Coal Mining Co. is now Chevron Mining Inc.

Same great company, new exciting possibilities.

Our Power is Our People.

Page 9: America - c.ymcdn.comc.ymcdn.com/sites/ · DTE Coal Services’ Chicago Fuels Terminal is the ... Coal Liquids in America’s Energy Future ... Roberts & Schaefer Company 10150 South

A MeSSAge frOM The ACC COMMuNICATIONS DIreCTOr

Chevron Mining Inc.

More than one hundred and twenty years of operating excellence, now more than 1500 employees strong. A company committed to safety above all else - that was P&M Coal. And today, we are Chevron Mining Inc.

Our name has changed, but our values remain the same: Protecting our people, our communities and our environment - that’s the Chevron Way.

Founded in 1885, P&M Coal is one of the oldest continuously operating mining companies in the United States. Striving to be the mining company most admired for our People, Partnership and Performance, Chevron Mining Inc. is a proud member of the Chevron family of companies.

�e Pittsburg & Midway Coal Mining Co. is now Chevron Mining Inc.

Same great company, new exciting possibilities.

Our Power is Our People.

This edition of American Coal initially presented a formidable challenge. Last year was a great year for our

publications, and expectations are always for more and better. For the ACC, 2007 was also a banner year; we had established our presence in D.C. and were celebrating our 25th anniversary. That enthusiasm bled over to the magazines and both issues repre-sented a high water mark for advertiser and editorial interest. Last year also gave us the opportunity to move the magazine toward a more reader-oriented style and a more per-sonal feel – yes those were our children on the cover of the spring issue.

With an updated Web site and newsletter for-mat, we have begun to see some fruit from our work toward becoming the “go to” information source for the coal industry. With that as a basis, coming up with something new and interesting for the magazine meant I had my work cut out for me. I needed to find a way to keep things moving forward.

Things were similar in our industry. Coming into 2007, we were experiencing a more buoyant and upbeat attitude; we were looking forward to the many coal-fueled plants that had been pro-posed. Additionally, forecasts for rapid increases in demand had all of our industry sectors try-ing to figure out how they would help to supply the coal that would be needed. Topping things off, there was also a healthy and growing com-mitment to investment in research by industry, academia, and government.

suffered last year, the industry and government worked cooperatively to implement new regula-tions that are, right now, improving miner safety and bettering industry responses to accidents. Additionally, despite massive setbacks, industry alliances are pushing forward, looking for ways to make carbon dioxide sequestration a reality.

The short version of that story is that although we’re facing challenges, the coal industry is pro-actively addressing safety, environmental, and social challenges. The assembled articles in this magazine are proof of that reality.

I noted before that a lull isn’t surprising after a banner year. Unfortunately, it’s also to be expected that some will take great pleasure in seeing you go through a valley and will use your down time as an excuse to gloat. Many in the media and special interest groups have used broad market downturns, changing political realities, and coal plant permit denials as fodder for their anti-coal attacks and calls for stringent regulations on coal-fueled energy.

What coal’s detractors have missed, however, is that coal powers half of our growing demand for energy and all of their protestations are not going to change that fact. In fact, as the ACC and others continue to provide up-to-date, accurate, and balanced information on how coal is our most abundant, affordable/secure domestic energy resource, and as our industry continues to provide energy in an increasingly clean and efficient manner, the anti’s will be forced to admit their plans to abandon coal are unrealistic and overly expensive.

In my movement around the Internet, I have often seen the ad for a humorous poster that shows a diamond set against a background of coal. The text under the picture reads, “Pressure: It can turn a lump of coal into a flaw-less diamond or an average person into a basket case.” Far from becoming the latter, the people throughout the coal industry are once again addressing numerous challenges and showing their diamond-like character.

Claiming the “flawless” aspect for some of us might be a hard sell, but as I have told many people in discussions about coal and the coal industry, they can keep the pressure up; we’re not all that concerned.

In the long run, they’re only making us more effective. In the long run, they’re actually turning us coal-types into diamonds.  u

It’s not unusual to experience a lull after having an “up” year, so I wasn’t surprised to see that when we started production of this first edition of 2008, things appeared a little less organized. We had changed the dates of our Spring Coal Forum from May to March. That change prompted a three-month rush on our Excellence Awards program dates and then pushed the normal release dates for this maga-zine around by about two months. Additionally, several of the authors I contacted for this edition were just too busy to provide editorial for the magazine. Some were even forced to pull out after having committed to preparing articles. The combination of changing dates and dead-lines, along with difficulties keeping pages stocked with editorial, proved challenging.

The ACC was not alone in this lull, however. The industry also had momentarily slowed its stride. While most industry experts and fore-casters are still upbeat about coal’s future, there is no denying the fact that addressing last year’s safety issues, changing world-market conditions, and staring impending carbon dioxide reduction regulations in the face has changed the topic of water cooler discussions across the industry. Changing times have captured our attention.

It is in these lulls, however, that those affected pull themselves up by their boot-straps and come up with new and better ways of achieving their goals and objectives. At the ACC, we worked through evolving member needs and changing timelines to host a very successful Spring Coal Forum in Miami this March. We were also pleased and proud to present five Excellence Awards to a very deserv-ing group of organizations. On the magazine front, we were fortunate to have another group of industry experts that were willing to offer their research and opinion for this edition.

As the articles in this edition show, utilities and producers are addressing economic and environmental concerns by tightening belts and looking for ways to improve the efficiency and overall performance of our mines and genera-tion fleet. As has always been an industry habit, we are moving ahead of expected regulations to propose more efficient and clean generation and transportation fuel options. Industry experts are discovering ways to maximize fuel flexibility while still keeping power affordable for utility customers. Moving past the tragic accidents

Keep Your Pressure Up – We’re Making Diamonds in HereJason hayes, M.e.Des., Communications Director, American Coal Council

7american coal council

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DO YOU KNOW WHAT’SAROUND THE CORNER?

Whether you are looking for trading opportunities, running forecasts, monitoring policy developmentsregarding emissions or mine safety, looking at production and consumption trends or keeping up todate with M & A activity, you can rely on Platts. For nearly one hundred years, energy and financialprofessionals have trusted Platts for its comprehensive news, data and pricing information.

Platts provides coal executives with the information they need to keep up to speed with marketdevelopments, enabling them to make better trading and investment decisions.

Find out more about Platts solutions for coal executives www.coal.platts.com

COAL OUTLOOK - COAL TRADER - INTERNATIONAL COAL REPORT COAL TRADER INTERNATIONAL - ENERGY ADVANTAGE - EMISSIONS DAILY

HISTORICAL PRICE DATA - FORWARD CURVE COAL

DON’T LET YOUR BUSINESS BE DERAILED.

www.coal.platts.com 1-800-PLATTS8 [email protected]

07-acc-one.qxd 2/28/07 3:43 PM Page 6

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2008 event Datesspring Coal ForumMarch 10-12, 2008 – Miami, FL

Fuel Flexibility ConferenceJuly 29-30, 2008 – Baltimore, MD

Coal Market strategiesOctober 6-8, 2008 – Williamsburg, VA

Coal trading ConferenceDecember 10-11, 2008 – New York, NY

For additional information visit www.clean-coal.info or call 202-756-4540

Name ________________________________________________________

Title __________________________________________________________

Company _____________________________________________________

Address ______________________________________________________

City _______________________State _____________ Zip _____________

Phone ______________________ Fax ______________________________

E-mail ________________________________________________________

please send memembership information!Yes,

Mail or FAX to: American Coal Council1101 Pennsylvania Ave. N.W., Suite 600 • Washington, D.C. 20004 • 732-231-6581 ~ Fax

Membership benefi ts include educational programming and

technical seminars, advocacy support, broad-based networking, Web site,

electronic and printed membership directory inclusion, newsletter and

members-only electronic updates, database resources, policy input, refer-

rals and discounts on events and industry publications.

Membership Coupon

Join the 170 companies that recognize the importance of belonging to an Asso-ciation that serves as the pre-eminent business voice of the American coal industry and advocates for coal as an economic, abundant/secure and environ-mentally sound fuel source.

The American Coal Council (ACC) is an alliance of coal, utility, trading, transpor-tation, terminal and coal support service companies, advocating a non-adversial, partnering approach to business.

The ACC facilitates the lawful exchange of ideas and information regarding the American coal industry. It serves as a essential resource for companies that mine, sell, trade, transport or consume American coal. The ACC also serves as a resource for those wishing to expand or enhance business relationships in North American and international coal markets.

9american coal council

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coal SuppliersBill DavisonVice President Sales & MarketingFoundation Energy (2007-2009)VP Coal Suppliers & Membership Chair

Matt LevarGeneral Manager Sales & MarketingRio Tinto Energy America (2007-2008)

Tim WhelanVice President SalesAlliance Coal LLC (2008-2010)

coal consumersBud WalkerRegional Vice President, FuelsMidwest Generation (2006-2008)VP Coal Consumers

Dan LidiskyManager Coal Supply & Business DevelopmentAmerenEnergy (2008-2009)

Jeff WallaceVice President Fuel ServicesSouthern Company (2008 - 2010)

energy TradersSteve MillerPresidentCOALTRADE, LLC (2007-2009)President-Elect 2009, Treasurer, Chair HR & Compensation

Dan VaughnDirector Coal ServicesUnited Power/ICAP (2007-2008)

TransportationBob BrautovichAVP Coal Marketing-WestBNSF Railway (2007-2009)

Danny SmithSenior VP Energy & PropertiesNorfolk Southern Corporation (2006-2008)VP Transportation

Jim GarrettPlant ManagerAEP MEMCO LLC (2008-2010)

coal Support ServicesMike DurhamPh.D., PresidentADA-ES, Inc. (2006-2008)VP Coal Support Services

Scott HutterPresident & CEOMartin Engineering (2008-2010)

immediate Past PresidentKeith DrohanSenior Market OriginatorDominion Energy (2007-2009)

At largeTom VorholtVice President Dry Cargo SalesIngram Barge Company (2007-2009)ACC President 2008

Am

eri

can C

oal

Council

Vision StatementThe American Coal Council

(ACC) strives to serve as the

pre-eminent business voice of

the American coal industry.

Mission StatementThe American Coal Council

(ACC) is dedicated to advanc-

ing the development and

utilization of coal as an

economic, abundant/secure

and environmentally sound

fuel source. The Association

promotes the lawful exchange

of ideas and information

regarding the coal industry.

It serves as an essential

resource for companies that

mine, sell, trade, transport,

or consume coal.

The ACC provides educational

programs, advocacy support,

peer-to-peer networking

forums and market intelligence

that allow members to

advance their marketing and

management capabilities.

American Coal Council 2008 Board of Directors

thank You editorial Review Board

• Janet Gellici, American Coal Council• Jason Hayes, American Coal Council• Rick James, We Energies• Andy Marti, Martin Engineering• Beth Sutton, Peabody Energy

10 american coal council

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ADA Environmental Solutions, Inc.

AEP MEMCO LLP

AEP Memco LLP

Alliance Coal, LLC

Alliant Energy

Alpha Natural Resources LLC

ALSTOM Power, Performance Projects

Ameren Energy Fuels & Services Co.

American Coal Ash Association

American Commercial Lines LLC

American Electric Power

Arch Coal, Inc.

Argus Media, Inc.

Arizona Public Service

Basin Electric Power Cooperative

Benetech, Inc.

BHP Billiton

Black & Veatch

BNSF Railway Co.

Boral Material Technologies

Cargill, Inc.

Carpenter Creek, LLC

Center for Energy & Economic Development (CEED)

Central Coal Company

Chevron Mining Inc.

Coal Marketing Company (USA), Inc.

Coal Utilization Research Council

CoalTek, Inc.

Commonwealth Coal Services, Inc.

Compass Coal Services, LLC

CONSOL Energy, Inc.

Constellation Energy

Crounse Corporation

CSX Transportation

Dakota, Minnesota & Eastern Railroad Corp.

David J. Joseph Company

Dayton Power & Light Company

Dominion Energy

Drummond Company, Inc.

DTE Coal Services

DTE Rail Services

Dynegy Coal Trading & Transportation LLC

E.ON U.S. LLC

East Side River Transportation

Emery Energy

Entergy

Ernst & Young

Evergreen Energy, Inc.

Evolution Markets LLC

Fervim Ingenieria SA DE CV

Fine Coal Inc.

FirstEnergy Generation Corp.

Foundation Energy Sales, Inc.

FreightCar America

Fuel Tech, Inc.

Gainesville Regional Utilities

GE Rail Services

Glencore Ltd.

Global Energy Decisions

Golder Associates Inc.

Grain Processing Corporation

Great River Energy

Hazen Research, Inc.

Headwaters Incorporated

Hellerworx, Inc.

Helm Financial Corporation

Hill & Associates, A Wood Mackenzie Company

Holcim (US) Inc./St. Lawrence Cement Co.

ICAP United, Inc.

ICF Consulting

Indianapolis Power & Light Company

Ingram Barge Company

Interlake Steamship Company

Intermountain Power Agency

James River Coal Company

James River Coal Sales, Inc.

John T. Boyd Company

Kansas City Southern Railway

KCBX Terminals Company

Kiewit Mining Group, Inc.

Kinder Morgan Bulk Terminals, Inc.

Koch Carbon LLC

Lakeland Electric

Louis Dreyfus Highbridge Energy

Lower Colorado River Authority

Luminant Energy

Marston & Marston, Inc.

Martin Engineering

McGuireWoods LLP

MidAmerican Energy Company

Midwest Energy Resources

Midwest Generation EME, LLC

Mineral Resource Technologies, A CEMEX Co.

Minnesota Power

Mitsui Rail Capital, LLC

Montana Rail Link, Inc.

Murray Energy Corporation

Natural Resource Partners L.P.

Newmont Mining Corporation

NexGen Coal Services Ltd.

Norfolk Southern Corporation

Norwest Corporation

NRG Energy, Inc.

Omaha Public Power District

Orlando Utilities Commission (OUC)

Pace Global Energy Services

Pacifi Corp

Peabody Energy

Pincock, Allen & Holt

Platte River Power Authority

Platts

PNC Bank N.A.

Portland General Electrric

Powerspan

PPL Energy Plus

Pratt & Whitney

PricewaterhouseCoopers LLP

Progress Energy

Progress Fuels Corporation

Public Service Company of New Mexico

Railroad Financial Corporation

Rentech

Resource Technologies Corporation

Rhino Energy

Rio Tinto Energy America

Roberts & Schaefer Company

Salt River Project

Sampling Associates International

Savage Services

SCANA Corp.

SCH Terminal Co., Inc.

Sempra Energy Trading

Separation Technologies LLC

SGS Minerals Services

Southern Company

SSM Coal Americas, LLC

Standard Laboratories, Inc.

Storm Technologies, Inc.

Taggart Global, LLC.

TECO Coal Corp.

Th e C. Reiss Coal Company

Th e Coal Association of Canada

Th e McCloskey Group

Th under Bay Terminals Ltd.

TrinityRail

Troutman Sanders LLP

TTI Railroad, Inc.

Tucson Electric Power Company

Union Pacifi c Railroad Company

United Maritime Group

University of Kentucky - Center for Applied Energy Res.

University of North Dakota, Energy & Environmental Research Center

URS Corporation

Usibelli Coal Mine, Inc.

We Energies

Westar Energy

Western Region Ash Group (WRAG)

Western Research Institute

Westmoreland Coal Sales Co.

WPS Resource Corporation

WV University, Nat’l. Research Center for Coal & Energy

Xcel Energy

Xcoal Energy & Resources

American Coal Council Member Companies

thank You ACC Champion & Patron sponsors 2008!

Champion Sponsors

James TurnerVice President Sales & Marketing One Martin Place Neponset , IL 61345www.martin-eng.comPhone: (309) 594-2384 x. 295

Katrina Sumey3333 Walnut St.Boulder, CO 80301www.platts.comPhone: 720-548-5665

Marc RademacherVice President Business Development West4665 Paris St., B-200Denver, CO 80239-3117www.us.sgs.com/mineralsPhone: (303) 373-4772

Patron Sponsors

Michael Durham, Ph.D.President8100 SouthPark Way, Unit BLittleton, CO 80120www.adaes.comPhone: (303) 734-1727

Christopher BlazekVice President Marketing1851 Albright Rd.Montgomery, IL 60538www.benetechusa.comPhone: (630) 844-1300 x214

Stevan BobbGroup Vice President-Coal MarketingPO Box 961051Ft. Worth, TX 76161-0051www.bnsf.comPhone: (817) 867-6253

Ken FraileyPresident10653 S. Riverfront Parkway, Ste. 300South Jordan, UT 84095www.headwaters.comPhone: 801-984-9400

Andrew Cox3120 Wall Street, Suite 310Lexington, KY 40513www.rhinoenergyllc.comPhone: (859) 519-3610

11american coal council

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Focusing on partnerships...Bringing value to our energy customers to help them succeed

www.cargill.com

Through Cargill’s worldwide presence in the coal industry, and our ability to move physical power across the North American Power grid, we are well positioned to anticipate market challenges and provide unique customer solutions to our coal customers and suppliers. Based on Cargill’s core competency in risk management, Cargill’s experienced energy team has a deep knowledge base in proprietary trading, market assessment, risk management, supply chain and global logistics across the complex energy world.

For more information: email [email protected]

Geneva • Johannesburg • Minneapolis • Moscow • Mumbai • Singapore • Tokyo

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Focusing on partnerships...Bringing value to our energy customers to help them succeed

www.cargill.com

Through Cargill’s worldwide presence in the coal industry, and our ability to move physical power across the North American Power grid, we are well positioned to anticipate market challenges and provide unique customer solutions to our coal customers and suppliers. Based on Cargill’s core competency in risk management, Cargill’s experienced energy team has a deep knowledge base in proprietary trading, market assessment, risk management, supply chain and global logistics across the complex energy world.

For more information: email [email protected]

Geneva • Johannesburg • Minneapolis • Moscow • Mumbai • Singapore • Tokyo

Unique Program

Throughout history, every genera-tion has faced unique challenges. From reaching the moon to re-

building societies and economies from the devastation of world war, to raising the lifestyles of all people on earth by pro-viding aff ordable energy. One of this gen-eration’s greatest challenges is clear: Th e need for electricity is growing each year and we must address society’s expectation for reduced carbon dioxide (CO2) emis-sions while providing citizens with aff ord-able, secure and clean energy.

Indeed, many leaders in the United States government and industry recognize that advancements in technology, similar to what industry and governments have achieved over the past century, must continue to address the energy needs of society.

Researchers and industry have made great progress in advancing tech-nologies to support coal-fueled electricity generation and lower carbon emissions; yet, while these technologies exist today, they have yet to be integrated and tested in a commercial-scale power plant, which is essential in proving technical and eco-nomic viability. FutureGen is the fi rst such major facility that will combine and test these technologies at a single plant.

FutureGen, the fl agship U.S. program to advance power production technology

and reduce CO2 emissions, integrates coal gasifi cation to generate electricity and carbon capture and sequestration (CCS) technology to eliminate virtually all of the emissions associated with generating electricity using one of the world’s most abundant and secure fuel sources – coal.

No other project like FutureGen is underway in the United States or around the world. In 2003, the Department of Energy (DOE) approached the coal mining and utility industry to work coop-eratively to push technology, design, build and operate a fi rst-of-its-kind, near-zero

emissions coal-fueled power plant. Th e federal government sought a public-private partnership for obvious reasons. First, building a fi rst-of-its-kind facility carries risk and should not be born by any one set of shareholders or electricity ratepayers. Second, once built, the lessons learned from the ongoing testing of tech-nology at the plant would be shared with the world to replicate it around the globe to reduce costs.

Industry rose to the challenge and cre-ated a global alliance to partner with the DOE. When announcing the formation of the public-private partnership, then Energy Secretary Spencer Abraham said, “FutureGen will be one of the boldest steps our nation has taken toward a pollution-free energy future. Knowledge from FutureGen will help turn coal from an environmen-tally challenging energy resource into an environmentally benign one. Th e proto-type power plant will serve as the test bed for demonstrating the best technologies the world has to off er (Department of Energy

Release, Feb. 27, 2003).”Many of the largest coal producers

and users in the world quickly signed on to take part in funding and plan-ning the FutureGen project. Over the next four years, 13 companies and four countries pledged support for

the FutureGen project. Th e public-private partnership ensured that all of these entities assumed funding and risk for the project and would also be provided with the technology after completion. Twelve candidate sites applied to be considered and after a first round of investigation, four fi nalist sites were selected. In March 2007, DOE signed on to its next phase of a legally binding cooperative agreement with the FutureGen Alliance to carry out the project, while the Alliance was con-

By Michael J. Mudd, futuregen Alliance

Researches technology to Reduce emissions

13american coal council

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posal to restructure FutureGen is vaguely defi ned and falls short in several ways.

Th e DOE proposal delays technology development and integrated demonstra-tion of commercial scale CCS by five years or more. FutureGen is further along than any other proposed CCS plant and can be operational by 2012. Th e Alliance has delivered fi ve years of progress, includ-ing contract negotiations, an enthusiastic and committed local community, a site that is technologically and legally ready to go, a design and cost estimate, a fi nal environmental impact statement, vendor relationships, and a team of 50 engineers and scientists. No other near-zero emis-sion power-plant project in the world can compete with FutureGen in terms of this timeline.

Th e DOE’s plan also reduces – if not eliminates – sharing of important technol-ogy and international participation because it relies on a commercial for-profi t structure for the projects. Companies participating in DOE’s restructured program would likely hold the technology for themselves. On the other hand, one of the hallmarks of the Alliance is, as a nonprofi t organiza-tion, it will broadly share lessons learned through research and operation of the facility, facilitating the deployment of com-mercial, near-zero emission power plants throughout the world. Th is is especially important for developing countries such as China and India. Th e DOE’s new plan provides no such public benefi t.

Th ere are other complex issues that make the DOE’s proposal defi cient, such as not addressing liability protection for injecting CO2 into the ground, tax issues, and the expectation that commercial projects will not be able to achieve removal of 90 per-cent of total CO2 generated by the facility.

ducting a rigorous environmental review of the candidate sites. DOE issued the Final Environmental Impact Statement in November 2007, which found all four sites were acceptable for the facility. After its thorough review in December 2007, the Alliance selected Mattoon, Ill., as the fi nal site for the facility.

Weeks after the Alliance announced the selection of Mattoon as the winning site, the DOE said that the program may need to be restructured because of cost concerns and refused to release the Record of Decision, the fi nal step in completing the National Environmental Policy Act (NEPA) environmental permitting pro-cess. Th is was a surprise to the Alliance, since the DOE fully reviewed the $1.8 billion cost estimate before it signed the cooperative agreement. Furthermore, in the fi nal environment impact statement that DOE released in November 2007, it said all four sites were acceptable from an environmental perspective.

Managing costs is not an issue unique to the FutureGen project, and the proj-ect’s scope and cost in constant dollars as currently confi gured, is consistent with the original scope that DOE laid out prior to the formation of the Alliance. However, every major infrastructure project in the world is experiencing inflationary costs due to rising materials and labor costs. To help share this cost burden, the Alliance proposed absorbing a larger portion of the infl ation costs, however, DOE did not respond to the Alliance’s proposal.

In January 2008, the administration sud-denly pulled support for the project, citing cost “overruns” and it issued a Request for Information on its restructuring proposal to break up FutureGen into several smaller CCS-only projects. Th e department’s pro-

One of the greatest challenges presented by DOE is its destruction of public trust. By restructuring FutureGen, DOE has dem-onstrated that it is willing to walk away from public-private partnerships, thereby jeopardizing the viability of the commercial power plant upon which DOE proposes to add CCS.

Despite DOE’s actions, the Alliance remains committed to the original proj-ect and has engaged several Members of Congress to craft a legislative solution to keep FutureGen at Mattoon on track. Key decisionmakers understand that the federal government and private compa-nies will need to invest in excess of $10 billion over the coming decade to develop, prove and deploy CCS technologies in the marketplace. Th e price tag of FutureGen at Mattoon is necessary in order to provide a working model of CCS technology that other companies and countries can use to develop subsequent plants. Th e FutureGen Alliance has already pledged approximately $400 million under its current cooperative agreement with DOE. Th is level of fi nan-cial contribution by industry to a DOE program and without any opportunity for direct fi nancial return on its donation, is unprecedented.

Given the urgency of developing and deploying technology to reduce carbon emissions from power plants, we are optimistic that Congress will continue to support FutureGen. Th ere is no project in the world that can produce a near-zero emission power-plant faster than FutureGen at Mattoon. FutureGen is a non-profi t entity, includes unprecedented international involvement and information sharing, and has a site that is technically and legally ready to go. Alternatives will cost the country fi ve years or more of delay and will deliver less in terms of results. FutureGen at Mattoon must be maintained as a global fl agship project for advancing near-zero emission coal technology; other projects should be a complement to – not a replacement for – FutureGen.

FutureGen is an international response to one of the world’s greatest challenges. It is up to Congress and the current admin-istration to recognize the importance of CCS technology and the FutureGen proj-ect, and to provide the global community with a solution to climate change.  u

Michael J. Mudd is CEO of the FutureGen Alliance (www.futuregenalliance.org/).

FutureGen Alliance Member Companies

American electric Power

Anglo American LLP

BhP Billiton

China huangeng group

CONSOL energy Inc.

e.ON u.S.

foundation Coal Corporation

Luminant

Peabody energy

PPL Corporation

rio Tinto energy America

Southern Company

Xstrata Coal Pty Limited

14 american coal council

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Blueprint for a 2009 national energy PolicyThe Institute for 21st Century Energy, an affi liate of the U.S. Chamber of Commerce

Th is article is an adaptation of Frederick C. Smith’s remarks to the ACC’s 2008 Spring Coal Forum in Miami. Mr. Smith is the vice president at Th e Institute for 21st Century Energy – an affi liate of the U.S. Chamber of Commerce (www.energyxxi.org).

energy is a huge enterprise. It is, by itself, an estimated $6-trillion global commodity business, re-

quiring massive amounts of capital; large, complex, interdependent infrastructure systems; highly trained work forces; and continuously evolving technology. Few understand the scale of the energy enter-prise, the challenges confronting it, and the diffi culty of transforming it.

Like a heavily laden supertanker or a 100-car coal train, this enterprise operates with tremendous inertia – its path cannot quickly be changed. Even if we enjoyed the perfect confl uence of the right mar-ket signals, adequate capital, favorable public opinion, determined political will, and emerging technologies, it would take years – perhaps decades – to substantially modify the global energy enterprise.

Society currently possesses few of the ele-ments needed to drive this change. Rather

than working together to fi nd sensible solu-tions to our pressing energy problems, we remain mired in a clash of policy issues and priorities. For example, we demand more energy, but allow less energy exploration and production. Likewise, we embrace the promise of energy effi ciency and conserva-tion, but we aspire to buy larger homes and more powerful automobiles. Furthermore, we take electricity for granted and, despite the need for more energy, we oppose the construction of new power plants and transmission lines. We are betting on the development of a host of emerging energy technologies, but we fail to adequately fund the research and development neces-sary to bring them about.

While the picture for the energy enter-prise appears daunting, the situation actually presents many opportunities. Th e technological advances needed to meet energy policy challenges off er opportuni-ties for innovation; new forms of energy create new businesses and employment; and the international challenges will allow the United States – if it so chooses – to re-assert its global leadership position in solving critical energy and environmental problems.

To take advantage of these opportunities, however, the next president’s administra-tion must promote a common sense and comprehensive energy plan that recog-nizes the fundamental necessity of having a reliable and diverse supply of energy for strong economic growth. Moreover, the plan must include measures to enhance energy security and protect the environ-ment. To be successful, this plan must take into account the following major areas of consideration.

First, the plan must clearly address the global demand for energy. As the global economy expands to accommo-date rising human aspirations and the addition of 70 million people each year, global energy use could easily double by 2050 and triple by 2100, with the larg-est projected increase in the non-OECD (Organisation for Economic Co-operation and Development) countries, particularly China and India.

Second, the plan must recognize the fact that current energy supplies are not expected to meet projected demands in the near future. That “delta” – or gap – can be reduced by technology, effi ciency, greater production of existing sources, and fi nding new alternative

15american coal council

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forms of energy. We will need to take advan-tage of all sources of energy, including the continued use of fossil fuels for the foreseeable future. There is no single solution to providing adequate supplies of energy – we must rely on all possible sources.

Third, domestic energy problems require global solutions and, therefore, the plan must consider the international context of these issues. We cannot have a national energy pol-icy that does not take into account the global economy and worldwide demand for energy.

Fourth, an energy policy must take into account environmental concerns, including climate change. These concerns must also be addressed in a global context and in terms of maintaining economic growth, meeting national security needs, providing for the increased energy needs of a larger population, as well as improving the environment.

Fifth, an energy policy must promote tech-nology and innovation as the keys to finding more energy, using it efficiently, and lowering greenhouse gas emissions. An R&D portfolio of technologies must include affordable car-bon capture and sequestration technologies; nuclear energy technology; technologies for solar, wind, biomass, and geothermal energy; as well as transportation fuel technologies (cellulosic biofuels, hydrogen, electricity, and other fossil fuel substitutes).

Sixth, no plan will be complete if it does not address the country’s critical energy infra-structure. As the demand for energy grows and greater supplies are needed to meet that demand, we must ensure we have an adequate infrastructure to produce, transport, deliver, and store the needed energy. In the United States, the existing infrastructure, as extensive as it is, is decaying and not adequate to meet future demands. It takes years to plan and build infrastructure – and we’re not making the investment today to improve the situation for tomorrow.

Perhaps the most divisive topic in develop-ing a national energy plan is climate change. Partisan politics and conflicting policy posi-tions surround this issue. Fighting the scientific premise of this issue is essentially a losing proposition. The majority of the American people, scientists, and members of Congress – including the three remaining presidential candidates – believe climate change is real and that humans are to blame.

Several recent scientific studies have con-cluded “the world must bring carbon emissions down to near zero to keep temperatures from rising further.” Zero – or near zero – emissions is impracticable. There will be a significant reduction, however. The Senate is poised to vote on legislation that would reduce U.S. emissions by 70 percent by 2050. Senators Clinton and Obama back an 80 percent cut, and John McCain supports a 60 percent reduction.

Prior to voting on any such legislation, Congress needs to take into consideration the intended and unintended consequences of congressional action on energy supplies and the economy. A vigorous debate on emission-reducing proposals would afford everyone the opportunity to weigh the pros and cons of each measure and to make an educated and informed decision before the enactment of legislation that would affect the economy – as well as the environment – for decades to come.

It’s also a reality that we must rely on the continued use of fossil fuels for the foresee-able future. The best example is coal, which is abundant in the United States and the source of energy that generates more than half of our electricity. The coal business, therefore, must ask itself, how it can best continue to prosper and grow in a carbon-constrained world. The coal industry is in the best position to chart a new course to keep coal a strong and growing part of our nation’s energy mix.

If the coal industry does nothing, the choice by default of utility executives likely will be natural gas-fired generation, along with more nuclear, some wind, and a little biomass. We need more natural gas, nuclear, wind, and bio-mass – but we also need coal if we’re expected to have a balanced, resilient power system. For coal to prosper, we must develop and deploy carbon capture and sequestration, at gigaton scale, in multiple geologic structures, in many regions of the country, at a reasonable price. That’s a huge order. It requires new technolo-gies, new regulatory and liability regimes, new infrastructure, and a level of public under-standing and confidence that we simply don’t possess today.

A national energy policy must build on a positive program of efficiency, technology, and inclusive global action – if it is sensible, rational, and would constructively speed our transition to a low-emission, carbon-constrained economy, while securing our energy supply and maintaining economic competitiveness. That’s a handful of key objectives, but they’re all necessary com-ponents of a comprehensive energy policy package if we are to succeed.

This effort to maintain economic growth, enhance energy security and protect the environment must begin with determined leadership by the White House and the Congress – but it cannot end there. This is a challenge that must be met through the efforts of the private sector, government at all levels, and civil society at large for decades to come. To succeed, we must disrupt old, comfortable orthodoxies and challenge deeply held values. Various interests will have to seek compromise with traditional adversaries. We will need to be patient, because there are no easy answers, no short-term solutions, and no technological silver bullets. Yet, unless we manage these chal-lenges, they will ultimately manage us.  u

Spin it, shake it, sample it.For coal or other mineral processing solutions.

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email: [email protected] page: www.tema.netPhone: 513-489-7811 • Fax: 513-489-48177806 Redsky Drive, Cincinnati, OH 45249

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Kathleen M. Putek

16 american coal council

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!@#Audit • Tax • Transaction Advisory Services

© 2007 ERNST & YOUNG LLP

When our people shine, so do our clients.

Why does it matter that we’re one of FORTUNE®Magazine’s “100 Best Companies To Work For”?Because you see it reflected in every person onour team and in everything we do for our clients.We attract high caliber professionals, people withsuperior skills who pursue the highest levels ofintegrity and provide your company with highquality services. It’s all part of our commitment toprofessional excellence. Because when we’re atour best and brightest, you are too. ey.com

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Coal Plant Cancellations: Will we fi gure it out in time?By Jason hayes, American Coal Council

our society runs on cheap, af-fordable electricity. When it stops, much of our life grinds

to a halt and this brief description of life in South Africa isn’t all that far removed from what life in North America could soon resemble.

California residents are familiar with the potential for rolling black outs being imposed as an electrical system-saving mea-sure. If the California Independent System Operator had not imposed them in 2005, increasing demand, driven by high tem-peratures and growing populations, could have caused widespread system instability and power failures.

But that’s not news to 50 million people in the northeastern states and the Canadian province of Ontario who expe-

rienced the largest power outage in North American history on Aug. 14, 2003. Transmission line troubles compounded by computer glitches worked together to cause a cascading failure in the system and pushed much of the eastern seaboard into the dark.

Unfortunately, the lessons learned from those and other blackouts do not appear to be sinking in. A Feb. 3 Washington Post article noted that skyrocketing electricity prices have not slowed growing demand in the D.C. area. At the same time, environ-mental groups and legislators have worked to stop utilities from building new genera-tion sources. Growing demand and limited supply must eventually collide and energy industry experts now predict that without immediate action on new generation and

transmission capacity, Virginia, Maryland, and the D.C. areas could face power short-ages and rolling blackouts within the next four years.

Th e basic laws of supply and demand are presented to most of us by the time we reach junior high; it’s not rocket science. Limit supply and grow demand and the two, eventually, will meet up. Regulators, however, are still listening to environmen-tal groups and pressuring utilities to drop or postpone their plans for building coal-fueled generation stations.

Coal is our most abundant and aff ord-able domestic energy resource. It currently provides half the country’s electricity needs, but the current fl eet of coal-fueled plants can’t last forever. They will need to be replaced. Undoubtedly, regulators,

!@#Audit • Tax • Transaction Advisory Services

© 2007 ERNST & YOUNG LLP

When our people shine, so do our clients.

Why does it matter that we’re one of FORTUNE®Magazine’s “100 Best Companies To Work For”?Because you see it reflected in every person onour team and in everything we do for our clients.We attract high caliber professionals, people withsuperior skills who pursue the highest levels ofintegrity and provide your company with highquality services. It’s all part of our commitment toprofessional excellence. Because when we’re atour best and brightest, you are too. ey.com

At the big Sandton mall in northern Johannesburg, shoppers stroll in darkness. Th ey have been caught in one of the many blackouts that have plagued South Africa for three weeks. Shops are closed, unable to open their tills or process credit cards. Ice-cream shops watch their merchandise dissolve; food stalls are unable to off er coff ee or anything hot to eat. In Cape Town, a power cut trapped tourists in the cable car that goes up Table Mountain, and in Pretoria, angry commuters whose trains stopped running, set them on fi re.

– Economist Magazine 2-2-08, p. 75

19american coal council

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NGOs, and members of the public think they’re performing a public service when they suggest we remove coal from the list of replacement options. It’s questionable, however, as to whether they have seriously considered the long-term implications of their decision to limit our energy choices.

Energy forecasts repeatedly tell us that the demand for energy in North America will continue to grow – rapidly – well into the future. Th e Energy Information Administration (EIA) predicts in its 2007 Annual Energy Outlook that demand for energy in the United States will increase by an average of 1.1 percent per year every year out to 2030.

In the early 2000s, there was a recog-nition of that demand and utilities and government were working together to ensure suffi cient generation capacity was being permitted so that demand would be met. With high gas prices, public concern over nuclear waste disposal, and the inabil-ity of renewables to meet growing baseload demands, much of the proposed capacity additions were coal-based. Since that time, however, coal has been assaulted by climate change concerns and changing political cli-mates. As a result, 54 percent of all coal plants ordered since 2000 have had their permits denied or postponed.

In one case last year, Secretary of the Kansas Department of Health and Environment (KDHE) Roderick Bremby, denied an expansion permit for an existing coal plant solely because of CO2 emis-sions. In his ruling, Bremby argued that he “(believed) it would be irresponsible to ignore emerging information about the contribution of carbon dioxide and other greenhouse gases to climate change.” Kansas Governor Kathleen Sebelius, recently vetoed a state bill that would have allowed the coal plant expansion to go for-ward by removing the power of the KDHE to make this type of broad ruling.

In response to proposed carbon restric-tions, four major U.S. banks recently stated

they would inject a cost of carbon-dioxide emissions premium into any decisions they make on fi nancing power projects. A February Wall Street Journal article belabored the obvious by reporting that “this will make them less likely to underwrite fi nancing on conventional coal-fi red power plants.”

All of these factors are dulling utility and investor desire to propose new coal-fueled power. Many are treading water right now, holding off on new plants and promoting conservation programs among their cus-tomers. At best, this is a stopgap measure as demand for energy continues to grow.

A lack of excitement on the part of some does not mean that nothing is being done

on the utility front. Several utilities already have permitted plants and are working to bring that power online. A recent Wood Mackenzie report on the issue of coal plant cancellations reported that over the next few years already-permitted coal capacity will cushion the impact of permit deni-als. In the longer term (i.e., past 2012), increased demand for natural gas brought about by coal permit denials will cause signifi cant pressures on gas supplies and prices. Wood Mackenzie forecasts suggest that growing competition for natural gas between industrial users, home users, and utilities will run headlong into slowing domestic natural gas production by 2013. Greater levels of imports will be required and prices will rocket to $8.50/mmbtu and higher. Slow development timeframes for LNG import facilities will only serve to exacerbate price volatility and spikes.

Moving beyond 2017, Wood Mackenzie forecasts suggest that if coal-fueled power remains restricted, there will be serious negative impacts on the gas and energy markets as demand and prices continue to surge. This scenario was echoed by American Electric Power (AEP) CEO Michael Morris, in a February Reuters article. Morris argued that we would fi nd ourselves in a “classic electric short-age” if we refused to make use of our coal

resources. Predicting economic problems, he noted “you simply can’t pare off plant after plant and have the U.S. economy leap forward in any way, shape or form.”

Th e fact that coal’s bad press is rooted in its past only adds to the frustration. Peabody Energy Chairman Greg Boyce, noted in a March 2008 Christian Science Monitor article that current technologies are “15 to 20 percent more carbon-effi cient than the plants they replace” and can serve as an excellent and aff ordable transition strategy until the time when carbon cap-ture technologies, or some other means of addressing carbon emissions, becomes mar-ket-ready. Ironically, canceling new plants ensures that the less effi cient technologies will remain in operation, welcomes higher fuel prices, ensures our sustained reli-ance on foreign energy sources, and – as noted above – courts electrical system instability.

While news of coal’s recent setback has given environmental and special interest groups a few months worth of schaden-freude, all is not lost; there are still many bright points on which the industry can focus. First, if 54 percent of proposed plants in the past eight years have been postponed or canceled, that means the other 46 percent are being approved or are still in process. In fact, the U.S. energy industry is currently carrying out the larg-est buildout of new coal-fueled plants in a generation! For example, an advanced ultra-supercritical 600 MW plant proposed by an AEP subsidiary has just received approval from Arkansas’ and Louisiana’s public service commissions. Further requests are pending in Texas and with the Arkansas Department of Environmental Quality, but company representatives are confi dent they will receive fi nal approvals in 2008. Secondly, recent research from the Natural Environment Research Council has suggested that water and minerals in deep layers of porous sandstone are likely to react quickly with sequestered CO2, forming a stabilized product that could not seep back to the surface. Research like this will help move us closer to addressing the demand that coal-fueled power provide carbon capture and sequestration options. Finally, the input of industry experts and academics near to the issue is still being heard by offi cials. Energy Secretary Samuel Bodman received a report last year from the National Petroleum Council that described how our energy appetite will expand by 60

Again, there are bright points on which the industry

can focus, but there is a lot of work to be done

correcting perceptions and encouraging people to look

beyond knee-jerk and unfounded rejections of coal.

20 american coal council

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percent to 2030; fossil fuels are expected to make up 83 percent to 87 percent of that growth. Report authors made it clear to the secretary that “fossil fuels will remain indispensable.”

Again, there are bright points on which the industry can focus, but there is a lot of work to be done correcting perceptions and encouraging people to look beyond knee-jerk and unfounded rejections of coal. As the advocates for the aff ordability, abundance, and rapidly improving envi-ronmental record of coal and coal-fueled

energy, our industry cannot aff ord to drop the ball.

I believe that it was Albert Einstein that defi ned insanity as doing the same thing over and over again and expecting diff er-ent results. Other countries, such as South Africa, are currently experiencing the power shortages and rapid price increases associ-ated with limited coal-based generation. Th e opening sentences of this article paint a graphic picture of what we will need to accept should we continue down our short-sighted path of canceling coal plants. We

can choose to learn from the mistakes and misfortunes of others, or we can trundle along after them, hoping that for some rea-son our experience will not be the same.

We know that we can use our domes-tic coal resources cleanly and effi ciently; choosing to ignore the benefi ts of using that resource would be – to use Mr. Einstein’s phrase – insane.  u

Jason Hayes is the communications director for the American Coal Council (www.clean-coal.info).

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A number of years ago, analysts be-gan publishing materials on struc-tural changes then occurring in

the coal and transportation markets that were going to essentially take the “shock absorbers” out of the supply chain. The forecasts predicted greater coal price vola-tility; they were right. We are now living in that world.

This article explores steps that electric generators should consider to restore the shock absorbers that producers, transpor-tation companies, and power companies removed. The suggestions fall under the rubric of “fuel flexibility.”

How did this happen?Over the past decade a series of devel-

opments – independent of each other but cumulative in their effects – have resulted in an approach to mining, transporting, storing and burning coal that has left many coal consumers increasingly vulnerable to supply interruptions and price volatility. Examples include:

1. Changes in mining to make greater use of highly capital intensive techniques such as longwalls, super sections and large surface mining operations, which operate round-the-clock and minimize production costs, but also eliminated surge capacity.

2. The consolidation of smaller mining operations into larger often publicly traded entities, which are sensitive to Wall Street pressure to grow earnings

on a regular basis, have shown a hesitancy to expand capacity in a fash-ion that could undermine favorable market pricing.

3. The abandonment or sale of rail assets that were deemed not sufficiently profitable reduced excess capacity and improved rates of return, but also limited the ability of rail-roads to handle traffic peaks.

4. The consolidation of barge companies and scrapping of barges to reduce excess capacity and take advantage of high scrap steel prices improved returns, but limited the ability to handle traffic increases.

5. The paring of coal stockpiles to comply with Public Service Commission man-dates or to reduce inventory-carrying costs removed a key buffer.

6. The implementation of more stringent envi-ronmental standards and the addition of complicated pollution control related equip-ment on power plants profoundly affected a utility’s coal choices.

The first four items all had the effect of making the producers and transporters less able or willing to respond to short-term demand fluctuations in a manner that would avoid supply shortages or congestion. The fifth item represented a calculated risk taken by consumers to reduce costs, and the sixth item should actually improve fuel flexibility, but may not. It is this last item on which this article focuses.

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Why is Fuel Flexibility Like a

shock Absorber? By Jamie Heller, Hellerworx, Inc.

Editor’s Note: Jamie will be addressing this issue at the ACC’s 2008 Fuel Flexibility Strategies & Tactics for Coal Consumers Conference, July 29 to 30, 2008 at the The Sheraton Inner Harbor Hotel – Baltimore, Md. Conference information is available on the ACC’s Web site: (www.clean-coal.info).

23american coal council

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Why is fuel fl exibility so important?

Four of the previously listed items, which have tended to create supply side inelasticity, are largely beyond the control of coal-fueled generators. Consolidation among suppliers and transporters could be off set, for example, by utilities re-enter-ing the mining business (a largely failed proposition when last tried), or build-ing connections to multiple rail carriers (impractical in some instances and with unclear benefi ts in the current environ-ment). Th ese strategies, however, have a high probability of failure.

In the past, competition among produc-ers from the same region for new business would usually be suffi cient to force prices down to cost-based levels, which are the hallmark of a competitive market. (Th ese costs may or may not include the full rate of return on invested capital depending on market conditions). Currently, a dearth of competitors or a lack of interest in new business because better opportunities exist elsewhere for the suppliers (e.g., coal exports) or transporters (e.g., intermodal

traffi c), may result in bids for new busi-ness that are unrelated to costs, or simply “no-bids.”

Th ose generators that have the capabil-ity and willingness to reach beyond their traditional supply sources and expand the fi eld, will likely be better off than those without that freedom or motivation. Th e key question is “What must one pay for this fl exibility, and is the gain in reduced fuel prices and increased availability worth the cost?”

As shown in Figure 1 (below), during the last two years, the spread between the coal prices from the major U.S. coal sup-ply basins have changed dramatically. In June 2006, the price diff erence between an Illinois basin coal (ILB) and a northern Appalachia coal (NAPP) was less than $5/ton. In March of 2008, that diff erence had more than quintupled to $28/ton. Between January 2007 and March 2008, the spread between a central Appalachia coal and a PRB coal increased by $40/ton from $30/ton to $70/ton. During this same period, import coal prices (not shown on the chart) more than doubled.

Potential Savings: An ExampleUsing price data like that in the chart,

Figure 2 (right) shows what the advantages of switching fuels would have been over 18 months to:

• A scrubbed unit located in the Mid-Ohio river region that was burning a NAPP coal in September 2006 that switched to an ILB coal by March 2008.

• An unscrubbed unit located in the Mid-Ohio river region that was burning a CAPP coal in September 2006 that switched to a PRB coal by March 2008.

The red arrows show how much the cost/MMBtu would have increased had the generator stayed with the same coal type. Th e blue arrows show how the costs would have changed had the generator switched to a cheaper coal. Th e green shaded cells show that the potential annual savings from switching at the scrubbed unit from NAPP to ILB coal would have been $23 million. At the unscrubbed unit the value of switching from CAPP to PRB coal would have been $37 million per year. In the case of the unit switching to PRB coal, costs would actually decline.

Responding to Price VolatilityTh e example excludes analysis of many

key factors including, for example:

• What capital investment is required to enable fuel switching?

• What technical boiler (e.g., ability to prevent slagging) or coal yard (e.g., lack of space) constraints may make a switch infeasible?

• What regulatory constraints (e.g., permits) exist to fuel fl exibility?

• Do existing fuel contracts shield the generator from the market?

• How would a different fuel affect the long-term maintenance and outage costs for the unit?

• Will the current fuel price differentials that make a switch favorable prevail long enough to ensure a payback?

• Will the costs of switching be borne by the same group (e.g., customers) that benefi ts from the fuel savings or will it be borne by shareholders?

• Will the change in fuel costs affect unit dispatch and opportunities for off-system sales?

Figure 1Spot Coal Prices (March 2006-March 2008)

Source: EIA Web site

Average Weekly Coal Commodity Spot PricesBusiness Week Ended April 18, 2008

24 american coal council

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Th e answers to these questions are admit-tedly company, plant and unit specifi c. Th e general proposition that increased coal price volatility, coupled with large changes in the spreads among coal types calls for – at a

Figure 2Potential Savings from Fuel Flexibility

minimum – re-examining the economics of fuel fl exibility at potentially aff ected units.

Some mistakes that have and are likely to be made through insuffi cient attention to this issue, include:

• Constructing a scrubber that cannot burn high chlorine content coal, thereby losing access to a cheap coal source.

• Rejecting the PRB coal option based on the assumption that having installed a scrubber the least cost option will be high sulfur coal.

• Assuming that the “easy to burn” U.S. coals will not be exported long term, creating price and availability problems.

This analysis focuses simply on the relationship between capital expenditures (capex) and fuel cost savings. The next frontier for plant managers will be a better understanding of how the mix of fuels used, plus unit operation and maintenance practices, aff ect unit output and availability. In a world where it may be very diffi cult to construct new coal-fi red units, natural gas power is likely to be more costly than in the past. Th e costs of coal-unit failure are very high; understanding how to extract the maximum from this endangered species of generating unit will be critical.  u

Jamie Heller is president of Hellerworx, Inc.(www.hellerworx.com).

March 2008

Btu 11,800 13,000SO2 5.00 3.00

Commodity Price $52.00 $80.00 Transportation Rate $5.80 $4.60 Delivered Price/ton $57.80 $84.60

$2.45 $3.25

$1.75 $1.05 $4.20 $4.30 $2.66 $3.47

September 2006

Btu 11,800 13,000SO2 5.00 3.00

Commodity Price $34.00 $39.00 Transportation Rate $5.80 $4.60 Delivered Price/ton $39.80 $43.60

$1.69 $1.68

$1.75 $1.05 $3.44 $2.73 $1.86 $1.81

Savings/Yr by ILB Switch $23 MSavings/Yr by PRB Switch

Mid-Ohio River Coal Delivery Point

Components of Delivered Coal Price

Illinois Basin Coal

Northern Appalachian

Coal

Delivered Price ($/MMBtu)

SO2 Allowance Cost/MMBtuTotal Cost/MMBtu UnscrubbedTotal Cost/MMBtu Scrubbed

Delivered Price ($/MMBtu)

SO2 Allowance Cost/MMBtuTotal Cost/MMBtu UnscrubbedTotal Cost/MMBtu Scrubbed

Note: EIA webste, SNL Data, Hellerworx estimates. The above estimates assume that Flue Gas Desulfurization (FGD or "scrubber" equipment) with a 95% SO2 removal capability is installed at each location.

8,800 12,5000.80 1.20

$14.05 $84.30 $27.10 $3.00 $41.15 $87.30

$2.34 $3.49

$0.28 $0.42 $2.62 $3.91 $2.47 $3.69

8,800 12,5000.80 1.20

$9.75 $54.00 $27.10 $3.00 $36.85 $57.00

$2.09 $2.28

$0.28 $0.42 $2.37 $2.70 $2.21 $2.42

$37 M

Powder River Basin Coal

Central Appalachian

Coal

Delivered Price for:

9

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25american coal council

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Just over the fi rst ridge beyond the Wise County, Va. town of St. Paul, lies a reclaimed mine site known

as Virginia City. Once – back in the days when coal was pulled from the rich seams and miners worked round the clock – Vir-ginia City was a bustling community. But times changed, the seams were exhausted and the mines and the jobs moved else-where. For decades, Virginia City lay aban-doned.

But that image is changing. Today, huge earthmovers push dirt, leveling the land for the construction of a 585-megawatt coal-powered electric generation station. Dominion, a Richmond-based energy company, has chosen the site for its pro-posed Virginia City Hybrid Energy Center.

The energy center, scheduled to come online in 2012, will be a state-of-the-art facility demonstrating that coal can be pro-tective of the environment while supplying electricity to meet the commonwealth’s growing demands.

“The Virginia City Hybrid Energy Center will make use of the very latest envi-ronmental controls to reduce emissions,” said James K. Martin, Dominion’s senior vice president of business development and generation construction. “It will also use a boiler technology called circulating fl uid-ized bed (CFB) that has been approved by the Department of Energy as a ‘clean-coal’ technology. In addition, the CFB design gives us the ability to burn a wide variety of coals and other fuels, including waste coal,

as well as biomass, or waste wood.”Th e station will have two CFB boilers

that will power a turbine and produce 585 megawatts of electricity – enough electricity for about 146,000 homes at peak demand. Martin said CFB is the right choice for the Virginia City site because it has the ability to burn a wide variety of coals.

“While Southwest Virginia still has ample resources of coal, it has a wide variety of coals – coals with diff ering Btu values, ash contents and sulfur contents. CFB technology gives us the option of using all those coals and it is partly that fl exibility that makes the station economi-cally feasible.”

In addition to economics, the facility has strong environmental promise, as well.

Dominion energy’s Virginia City Hybrid energy Center: Using CFB to meet energy and environmental needsBy Dan genest, Dominion energy

The site of the proposed Virginia City hybrid energy Center

27american coal council

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New design technologies mean that it will be able to capture carbon dioxide for storage when carbon capture technologies become commercially viable. CFB boilers also reduce many other emissions – particularly sulfur dioxide and nitrogen oxides in the boiler. Its clean burning nature has led the Department of Energy to bestow the title of clean-coal technology on CFB boilers.

CFB technologies will also allow the station to burn waste coal, or “gob.” Gob piles are a major environmental challenge throughout Southwest Virginia as acids and chemicals from the gob leach into groundwater and taint rivers and streams.

“By burning gob, we will help rid the region of a major environmental problem and help clean up rivers and streams,” said Pamela F. Faggert, vice president and chief environmental offi cer for Dominion.

CFB TechnologyTh e technology works like this:1. Fuel and crushed limestone are fed

into the combustion chamber of the boiler while air is blown in which “fl uidizes” the mixture, making it act almost like a liquid.

2. Th e mixture burns at a relatively low temperature reducing the formation of nitrogen oxides. At the same time, the limestone chemically reacts with the sulfur dioxide allowing it to be removed with the ash.

3. Heat from the combustion process is used to produce steam that spins the turbine to produce electricity.

4. As the fl ue gases exit the boiler a selec-tive non-catalytic reduction process further reduces NOx.*

5. The flue gas stream then travels through a dry scrubber where lime-stone powder is injected to further reduce SO2.

6. Finally, the gasses pass through a fabric fi lter, commonly know as a bag house, which reduces particulate matter by about 99.999 percent.

7. The gasses then exit through the stack.

8. Th e combination of the desulphuriza-tion processes and the bag house also reduce mercury emissions by about 98 percent.

In addition, Faggert said the company plans to add a technology called activated carbon injection (ACI) to remove even more mercury from fl ue gases. Th e hybrid energy center will be the fi rst CFB boiler in the country to use this technology.

“Since ACI has never been used on a CFB before, we can’t predict the results, but we are excited about investigating the use of this technology,” Faggert said. “CFB technology and the other controls we will install will ensure that this power station does better than required by any state or federal regulations in reducing emissions.”

Dominion selected circulating fl uidized bed technology for the Virginia City site after studying the applicability of traditional pulverized coal (PC), supercritical PC, and integrated gasifi cation technologies.

Pulverized coal, while an effi cient and proven means of coal-powered generation, requires wet scrubbers with corresponding increased water consumption to achieve SO2 reductions.

“Water minimization is critical to the successful use of the Virginia City site,” Martin said. “CFB boilers using air-cooled condensers and dry scrubbers are clearly the best choice for the site.”

Pulverized coal units require a consistent quality higher Btu-type coal than CFB boilers.

* In selective non-catalytic reduction, NOx emissions are converted into nitrogen and water by injecting urea or ammonia into the fl ue gas.

“While there are high Btu coals in the Virginia coalfi elds,” Martin said, “it is not clear if there is enough high quality coal that is economically available over the projected life of the station.”

Integrated coal gasification combined cycle (IGCC) systems are an emerging and promising technology. Th ese stations have a chemical plant that converts coal to synthetic natural gas – syngas – and then uses that gas to run turbines that produce electricity.

After a considerable amount of research and study, Dominion concluded IGCC also was not a good option for the Virginia City location.

“Essentially,” Martin said, “as an evolving technology, IGCC does not yet have the track record on units of the size we are proposing. In addition, it requires a constant and consis-tent quality of coal for conversion to natural gas. Th at would not allow us the fuel fl exibil-ity inherent with CFBs. It is the CFB’s ability to use a wide variety of fuels that makes this project economically feasible.”

Global warming is becoming a much larger issue nationally and the public outcry to reduce carbon dioxide emissions is grow-ing. Dominion’s Jim Martin believes that national legislation requiring C02 reduc-tions is inevitable. Th e answer, however, he said is not to burn less coal but to fi nd ways to burn it more cleanly.

“We believe the Virginia City Hybrid Energy Center will be among the cleanest coal-powered stations in the country. More importantly, it has the potential to demonstrate through carbon capture and sequestration that coal can and must be a viable energy source for decades to come.”  u

Dan Genest is senior corporate communications specialist at Dominion Generation (www.dom.com).

“By burning gob, we will help rid the region of a major environmental problem

and help clean up rivers and streams”– Pamela F. Faggert, Dominion’s vice president and chief environmental offi cer

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TEMA Systems Inc.7806 REDSKY DRIVECINCINNATI, OH 45249Phone: 513-489-7811 Fax: 513-489-4817

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ECONOMIC, ABUNDANT/SECURE AND ENVIRONMENTALLY SOUND

2008 Membership DirectoryIssue 1 • 2008

A Coal Powered North America

In this issue...FutureGen Update

Fuel Flexibility

Climate Change

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CONTENTSACC Vision and Mission Statement ............. 1Board of Directors .............. 1Membership Coupon and Information .................. 2ACC Events ......................... 2Buyers’ Guide Listings ................................ 5

On the cover: � e cover of this issue of American Coal illustrates the connection between North America’s energy needs and the coal industry. Photographer John Mueller took the original photo of the train.

Published for:AMERICAN COAL COUNCIL1101 Pennsylvania Ave. N.W., Ste. 600Washington, DC 20004Tel.: 202-756-4540Fax: 732-231-6581

ACC Editorial Review BoardJanet Gellici, American Coal CouncilJason Hayes, American Coal CouncilRick James, We EnergiesAndy Marti, Martin EngineeringBeth Sutton, Peabody Energy

Published by:Lester Publications, LLC2131 NW 40th Terrace – Suite AGainesville, FL 32605Main line: (352) 338-2700Toll Free: (877) 387-2700

PresidentJeff Lester | (866) 953-2189

Sales DirectorSean Davis | (888) 953-2190

Managing EditorBonnie Winter Fedak | (866) 953-2181

Graphic DesignerJohn Lyttle | (204) 953-2180

Account ExecutivesQuinn Bogusky, Jeanine English, Shannon Evans, Mike Mechaney, Louise Peterson, Toban Vexzon

© 2008 American Coal Council. All rights reserved. � e contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the ACC.

Disclaimer� e opinions expressed by the authors of the editorial articles contained in American Coal magazine are those of the respective authors and do not necessarily represent the opinion of the American Coal Council or its member companies

Printed in CanadaPlease recycle where facilities exist.

Coal SuppliersBill DavisonVice President Sales & MarketingFoundation Energy (2007-2009)VP Coal Suppliers & Membership Chair

Matt LevarGeneral Manager Sales & MarketingRio Tinto Energy America (2007-2008)

Tim WhelanVice President SalesAlliance Coal LLC (2008-2010)

Coal ConsumersBud WalkerRegional Vice President, FuelsMidwest Generation (2006-2008)VP Coal Consumers

Dan LidiskyManager Coal Supply & Business DevelopmentAmerenEnergy (2008-2009)

Jeff WallaceVice President Fuel ServicesSouthern Company (2008 - 2010)

Energy TradersSteve MillerPresidentCOALTRADE, LLC (2007-2009)President-Elect 2009, Treasurer, Chair HR & Compensation

Dan VaughnDirector Coal ServicesUnited Power/ICAP (2007-2008)

TransportationBob BrautovichAVP Coal Marketing-WestBNSF Railway (2007-2009)

Danny SmithSenior VP Energy & PropertiesNorfolk Southern Corporation (2006-2008)VP Transportation

Jim GarrettPlant ManagerAEP MEMCO LLC (2008-2010)

Coal Support ServicesMike DurhamPh.D., PresidentADA-ES, Inc. (2006-2008)VP Coal Support Services

Scott HutterPresident & CEOMartin Engineering (2008-2010)

Immediate Past PresidentKeith DrohanSenior Market OriginatorDominion Energy (2007-2009)

At LargeTom VorholtVice President Dry Cargo SalesIngram Barge Company (2007-2009)ACC President 2008

American Coal CouncilVision StatementThe American Coal Council (ACC) strives to serve as the pre-eminent business voice of the American coal industry.

Mission StatementThe American Coal Council (ACC) is dedicated to advancing the development and utilization of coal as an economic, abundant/secure and environmentally sound fuel source. The Association promotes the lawful exchange of ideas and information regarding the coal industry. It serves as an essential resource for companies that mine, sell, trade, transport, or consume coal. The ACC provides educational programs, advocacy support, peer-to-peer networking forums and market intelligence that allow members to advance their marketing and management capabilities.

American Coal Council 2008 Board of Directors

12008 MEMBERSHIP DIRECTORY

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2008 Event DatesSpring Coal ForumMarch 10-12, 2008 – Miami, FL

Fuel Flexibility ConferenceJuly 29-30, 2008 – Baltimore, MD

Coal Market StrategiesOctober 6-8, 2008 – Williamsburg, VA

Coal Trading ConferenceDecember 10-11, 2008 – New York, NY

For additional information visit www.clean-coal.info or call 202-756-4540

Name ________________________________________________________

Title __________________________________________________________

Company _____________________________________________________

Address ______________________________________________________

City _______________________State _____________ Zip _____________

Phone ______________________ Fax ______________________________

E-mail ________________________________________________________

please send memembership information!Yes,

Mail or FAX to: American Coal Council1101 Pennsylvania Ave. N.W., Suite 600 • Washington, D.C. 20004 • 732-231-6581 ~ Fax

Membership benefi ts include educational programming and

technical seminars, advocacy support, broad-based networking, Web site,

electronic and printed membership directory inclusion, newsletter and

members-only electronic updates, database resources, policy input, refer-

rals and discounts on events and industry publications.

Membership Coupon

Join the 170 companies that recognize the importance of belonging to an Asso-ciation that serves as the pre-eminent business voice of the American coal industry and advocates for coal as an economic, abundant/secure and environ-mentally sound fuel source.

The American Coal Council (ACC) is an alliance of coal, utility, trading, transpor-tation, terminal and coal support service companies, advocating a non-adversial, partnering approach to business.

The ACC facilitates the lawful exchange of ideas and information regarding the American coal industry. It serves as a essential resource for companies that mine, sell, trade, transport or consume American coal. The ACC also serves as a resource for those wishing to expand or enhance business relationships in North American and international coal markets.

F:\MISC\ADS\LE-008\LE-008r.cdrMonday, November 12, 2007 9:49:46 AM

Color profile: U.S. - Web Coated (SWOP) v2Composite Default screen

2 AMERICAN COAL COUNCIL

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F:\MISC\ADS\LE-008\LE-008r.cdrMonday, November 12, 2007 9:49:46 AM

Color profile: U.S. - Web Coated (SWOP) v2Composite Default screen

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The bond between carbon atoms and other molecules is the chemical storehouse

for most of life’s energy. In the right places, carbon is vital. But too much in the

air, or in high levels in fly ash, is more than just harmful—it’s unacceptable. ■

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combustion. It doesn’t require additional air quality permits. And it doesn’t threaten

the loss of future emission credits. ■ Carbon is material to life. ■ At Separation

Technologies, our 100% solutions are material to life now—and in the future.

ProAsh® | Greencrete® | Ecotherm™ www.proash.com ©2008 Separation Technologies, LLC, a Titan America business.

Carbon: Powering the lifecycle

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Coal Suppliers

Alliance Coal, LLCwww.arlp.com

Tim WhelanVice President, Sales1717 South BoulderSuite 400Tulsa, OK 74119Phone: 918-295-7655Fax: [email protected]

Robert SachseExecutive Vice President, MarketingP.O. Box 22027Tulsa, OK 74121-2027Phone: 918-295-7615Fax: [email protected]

Alpha Natural Resources, LLCwww.alphanr.com

Ronald G. RossGeneral Manager Western RegionP.O. Box 839Price, UT 84501Phone: 435-637-8650Fax: [email protected]

Francis Frank-V. KellyManager, Midwest Sales2137 Vermillion St.Suite 150Hastings, MN 55033Phone: 651-437-9455Fax: [email protected]

Arch Coal, Inc.City Place One DriveSuite 300St. Louis, MO 63141www.archcoal.com

Andy BlumenfeldVice President, Market ResearchPhone: 314-994-2876Fax: [email protected]

Mark CanonVice President of Regional SalesPhone: [email protected]

BHP Billiton1150 Omega DrivePittsburgh, PA 15205www.bhpbilliton.com

George KarpakisPhone: 412-788-7170Fax: [email protected]

Carpenter Creek, LLC5799 Westchester Farm DriveWeldon Spring, MO 63304

Jerry DaselerVic President Marketing & SalesPhone: 636-399-7266Fax: [email protected]

Central Coal Company148 Bristol East RoadBristol, VA 24202

Clark WismanSales & MarketingPhone: 276-669-8599Fax: [email protected]

Chevron Mining Inc.116 Inverness Drive EastSuite 207Englewood, CO 80112www.chevrontexaco.com

James DeMinoGeneral Manager, SalesPhone: 303-930-4060Fax: [email protected]

Dave LofeSales ManagerPhone: 303-930-4050Fax: [email protected]

Coal Marketing Company (USA), Inc.1180 Peachtree St.Suite 2420Atlanta, GA 30309www.cmc-coal.com

Francisco GarciaMarketing ManagerPhone: [email protected]

CoalTek, Inc.2189 Flintstone DriveSuite ATucker, GA 30084www.coaltek.com

Christopher PoirierCEOPhone: 770-934-7030Fax: [email protected]

Rolando Sanz-GuerreroPresidentPhone: 734-227-0095Fax: [email protected]

Commonwealth Coal Services, Inc.5413 Patterson Ave.Suite 200Richmond, VA 23226-2023

T. Wallace TaylorVice PresidentPhone: 804-282-9833Fax: [email protected]

Robert H. ScottPresidentPhone: 804-282-9822Fax: [email protected]

Compass Coal Services, LLCP.O. Box K-206Richmond, VA 23288www.compassenergy.net

William E. Massey Jr.PresidentPhone: 804-288-9500Fax: [email protected]

CONSOL Energy, Inc.1800 Washington Road – Consol PlazaPittsburgh, PA 15241-1421www.consolenergy.com

Robert F. PusateriPresident – CONSOL Energy SalesPhone: 412-831-4401Fax: [email protected]

Drummond Company, Inc.530 Beacon Parkway WestSuite 800Vestavia Hills, AL 35209-3196www.drummondco.com

George E. WilbanksPresident, SalesPhone: 205-945-6410Fax: [email protected]

Evergreen Energy, Inc.www.kfx.com

Ted VennersChairman & CEO1225 17th St., Suite 1300Denver, CO 80202Phone: 303-293-2992Fax: [email protected]

Kevin CollinsPresident/CEO55 Madison St., Suite 745Denver, CO 80206Phone: 303-293-2992Fax: [email protected]

Fervim Ingenieria SA DE CV452 N. Washington St., PMB 138Eagle Pass, TX 78852

Fernando MendozaPhone: 512-440-1564Fax: [email protected]

2008 MEMBERSHIP DIRECTORY 5

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Foundation Energy Sales, Inc.www.foundationcoal.com

Larry DealVice President Sales391 Inverness ParkwaySuite 333Englewood, CO 80112 Phone: 303-749-8430Fax: [email protected]

Bill DavisonVice President Sales & Marketing999 Corporate Blvd.Suite 300Linthicum Heights, MD 21090Phone: 410-689-7657Fax: [email protected]

Glencore Ltd.301 Tresser Blvd.Stamford, CT 06901www.glencore.com

John McConaghyCoal ExecutivePhone: 203-328-4958Fax: [email protected]

James River Coal Company901 East Byrd St., Suite 1600Richmond, VA 23219

Peter SochaPresident/CEOPhone: 804-780-3003Fax: [email protected]

James River Coal Sales, Inc.120 Prosperous Pl., Suite 110Lexington, KY 40509

Mike WeberPresidentPhone: 859-543-0090Fax: [email protected]

Kiewit Mining Group, Inc.1000 Kiewit PlazaOmaha, NE 68131www.kiewit.com

Mike NimmoMarketing ManagerPhone: 402-536-3630Fax: [email protected]

John FaulconerDirector, Internal Audit & SecurityPhone: 402-536-3645Fax: [email protected]

Murray Energy Corporation29325 Chagrin Blvd.Suite 300Pepper Pike, OH 44122

Robert E. MurrayChairman, President/CEOPhone: 216-765-1240Fax: [email protected]

Natural Resource Partners L.P.

Nick CarterPresident/COO1035 � ird Ave.P.O. Box 2827Huntington, WV 25727-5401Phone: 304-522-5757Fax: [email protected]

Chuck KerrPresident, Great Northern Power Development601 Jeff erson St., Suite 3600Houston, TX 77002Phone: 713-751-7590Fax: [email protected]

NexGen Coal Services Ltd.www.nexgen-group.com

Charles S. McNeilPresident/CEO3300 S. Parker RoadSuite 520Aurora, CO 80014Phone: 303-751-9230Fax: [email protected]

Jon KellyManager500 S. Taylor St., Unit 246Amarillo, TX 79101-2446Phone: 806-371-7341Fax: [email protected]

Peabody Energy701 Market St., Suite 900St. Louis, MO 63101-1826www.peabodyenergy.com

James Campbell Jr.Senior Vice President Sales & MarketingPhone: 314-342-7525Fax: [email protected]

Vaughn MaversVice President Sales & MarketingPhone: 314-342-7522Fax: [email protected]

Steve MillerPresident, COALTRADE LLCPhone: 314-342-7590Fax: [email protected]

Progress Fuels CorporationP.O. Box 308Ceredo, WV 25507www.progressfuels.com

Butch SmithPhone: [email protected]

Rhino Energy3120 Wall St., Suite 310Lexington, KY 40513

Andy CoxPhone: 859-519-3610Fax: [email protected]

Nick GlancyPhone: 606-519-3601Fax: [email protected]

Rio Tinto Energy Americawww.riotinto.com

R. Michael KelleyDirector of Sales and MarketingBox 3009505 S. Gillette Ave.Gillette, WY 82717 Phone: 307-687-6121Fax: [email protected]

TECO Coal Corp.www.tecocoal.com

Joe W. LeeVice President Sales11523 Glen Abbey WayCharlotte, NC 28277Phone: 704-844-0407Fax: [email protected]

Edward L. BillipsDirector Utility & Industrial SalesP.O. Box 2135Pikeville, KY 41502Phone: 606-437-5910Fax: [email protected]

6 AMERICAN COAL COUNCIL

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Usibelli Coal Mine, Inc.www.usibelli.com

Steve W. DentonVice President Business DevelopmentP.O. Box 1000Healy, AK 99743Phone: 907-683-9710Fax: [email protected]

William S. BrophyVice President Customer Relations100 Cushman St., Suite 210Fairbanks, AK 99701-4674Phone: 907-452-2625 ext. 232Fax: [email protected]

Westmoreland Coal Company

A Trusted Name in Coal Since 1854

Westmoreland Coal Sales Co.2 North Cascade Ave.14th FloorColorado Springs, CO 80903

Todd MyersPresidentPhone: 719-448-5802Fax: [email protected]

Xcoal Energy & ResourcesP.O. Box 551Latrobe, PA 15650

Ernie L. � rasherPresidentPhone: 724-520-1630Fax: [email protected]

Coal Consumers

Alliant Energy4902 N. Biltmore LaneP.O. Box 77007 MSN GO 3SMadison, WI 53718-2148www.alliantenergy.com

Dan CheckiDirector, Fossil Fuel ProcurementPhone: 608-458-3125Fax: [email protected]

Ameren Energy Fuels & Services Co.1901 Chouteau Ave.St. Louis, MO 63101www.ameren.com

Mike MuellerPresidentPhone: 314-554-4174Fax: [email protected]

Jim SobuleVice President & Deputy General CounselPhone: 314-554-2276Fax: [email protected]

Dan LidiskyManager, Coal Supply & Business Development CounselPhone: 314-554-2645Fax: [email protected]

American Electric Powerwww.aep.com

Ron YoungManaging Director Transportation Services155 W. Nationwide Blvd.Suite 500Columbus, OH 43215 Phone: 614-583-6303Fax: [email protected]

Mike DeBordVP Transmission & Combustion ServicesP.O. Box 16036Columbus, OH 43216-0036 Phone: 614-583-7454Fax: [email protected]

Arizona Public Service400 North Fifth St., MS8974Phoenix, AZ 85004www.apsc.com

Matthew ReidFossil Fuel Procurement ManagerPhone: 602-250-3109Fax: [email protected]

Jennifer CannonCommodity LeadPhone: 602-250-3188Fax: [email protected]

Basin Electric Power Cooperative1717 East Interstate Ave.Bismarck, ND 58503www.basinelectric.com

Joe LeingangDirector Fuels & TransportationPhone: 701-355-5648Fax: [email protected]

Constellation Energy111 Market Place, Suite 200Baltimore, MD 21202www.constellation.com

John T. LongPresident, Power GenerationPhone: 410-230-4910Fax: [email protected]

Dayton Power & Light Company1065 Woodman DriveDayton, OH 45432

Teresa MarrinanVP, Commercial OperationsPhone: 937-259-7835Fax: [email protected]

Michael PerkinsManager, Structured TransactionsPhone: 937-259-7225Fax: [email protected]

Dominion EnergyP.O. Box 25652Richmond, VA 23260www.dom.com

Keith DrohanSenior Market OriginatorPhone: 804-787-5765Fax: [email protected]

DTE Coal Services414 S. Main St., Suite 200Ann Arbor, MI 48104www.dtecs.com

Matt PaulPresident, DTE Coal ServicesPhone: 734-887-2053Fax: [email protected]

E.ON U.S. LLC220 W. Main St., 4th FloorLouisville, KY 40202www.lgeenergy.com

Mike DotsonManager LG&E & KU FuelsPhone: 502-627-2322Fax: [email protected]

Caryl Pfeiff erDirector Corporate Fuels & By-ProductsPhone: 502-627-2274Fax: 502-627-3243caryl.pfeiff [email protected]

Emery Energy159 West Pierpont Ave.Salt Lake City, UT 84101www.emeryenergy.com

Benjamin PhillipsPresidentPhone: [email protected]

Harry GatleySenior Design & Test EngineerPhone: 801-364-8283

Entergywww.entergy.com

Michael KolbusPlant Manager555 Point Ferry RoadNewark, AR 72562Phone: 870-698-4500Fax: [email protected]

2008 MEMBERSHIP DIRECTORY 7

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James MarburyGeneral Manager, Nelson Plant3500 Houston River RoadWestlake, LA 70662Phone: 337-494-6100Fax: [email protected]

FirstEnergy Generation Corp.395 Ghent Road, #213Akron, OH 44333www.fi rstenergycorp.com

Jim MellodyDirector Fuel SupplyPhone: 330-315-7450Fax: 330-315-7464mellodyj@fi rstenergycorp.com

Bob CymborGeneral Manager Fuel ProcurementPhone: 330-315-7456Fax: 330-315-7464cymborr@fi rstenergycorp.com

Gainesville Regional UtilitiesP.O. Box 147117Station A 137Gainesville, FL 32614-7117www.gru.com

Karen AlfordFuels ManagerPhone: 352-334-3400, ext. 1730Fax: [email protected]

� omas FoxxCoal AnalystPhone: 352-334-3400, ext. 1736Fax: [email protected]

Grain Processing Corporation1600 OregonMuscatine, IA 52761www.graimprocessing.com

Leona FortenbacherEnergy BuyerPhone: 563-264-4776Fax: [email protected]

Bill ChrismanEnvironmentalPhone: 563-264-4776Fax: [email protected]

Great River Energy17845 E. Highway 10, P.O. Box 800Elk River, MN 55330-0800www.greatriverenergy.com

Carlyle SulzerManager Generation ServicesPhone: 763-241-2490Fax: [email protected]

Al ChristiansonNorth Dakota Business Services Representative2875 � ird St., S.W.Underwood, ND 58576-9659 Phone: 701-442-7031Fax: [email protected]

Holcim US Inc./St. Lawrence Cement Co.6211 Ann Arbor RoadP.O. Box 122Dundee, MI 48131www.holcim.com

Jim GilbertCommodity Manager, Solid Fuels & Raw MaterialsPhone: 734-529-4547Fax: 7340 [email protected]

Christian DuewekeCommodity Manager, N. American Procurement Org.Phone: 734-529-4537Fax: 7340 [email protected]

Indianapolis Power & Light Co.One Monument CircleIndianapolis, IN 46204www.iplpower.com

Dennis DiningerDirector, Fuel SupplyPhone: 317-261-8707Fax: [email protected]

Intermountain Power Agency10653 S. River Front Parkway, Suite 120South Jordan, UT 84095www.ipautah.com

Reed SearleGeneral ManagerPhone: 801-938-1333Fax: [email protected]

Lakeland Electric501 E. Lemon St.Lakeland, FL 33801www.lakelandelectric.com

Rick SnyderManager, Wholesale Energy & FuelsPhone: 863-834-6586Fax: [email protected]

Carol RowlandFuels CoordinatorPhone: 863-834-6583Fax: [email protected]

Louis Dreyfus Highbridge Energy

Ken JenkinsVP, Fuel Management Services1400 Urban Center DriveSuite 250Birmingham, AL 35242Phone: 205-445-0772Fax: [email protected]

Raphael PierceVP, Domestic Coal1400 Urban Center DriveSuite 250Birmingham, AL 35242Phone: 205-877-4501Fax: [email protected]

Lower Colorado River Authority3700 Lake Austin Blvd.Austin, TX 78703www.lcra.com

Ingmar SterzingManager FuelsPhone: 512-473-3527Fax: [email protected]

Gage DahmannFuels AdministratorPhone: 512-473-3578Fax: [email protected]

Luminant1717 Main St., Suite 1900Dallas,TX 75201www.luminant.com

Allen ChildressManager Fuels GroupPhone: 214-875-9739Fax: [email protected]

MidAmerican Energy Company106 E. Second St.Davenport, IA 52801www.midamerican.com

Robert QuastCoal Portfolio ManagerPhone: 563-333-8219Fax: [email protected]

Midwest Generation EME, LLC440 S. La Salle St.Suite 3500Chicago, IL 60605www.mwgen.com

Bud WalkerRegional Vice President, FuelsPhone: 312-583-6041Fax: [email protected]

Larry SilerManager Fuel TransportationPhone: 312-583-6068Fax: [email protected]

Minnesota Power1259 N.W. � ird St.Cohasset, MN 55721www.mnpower.com

8 AMERICAN COAL COUNCIL

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Kathy BenhamManager, Fuel ServicesPhone: 218-328-5036, ext. 4642Fax: [email protected]

Bill BoutwellPlant ManagerPhone: 218-328-5036Fax: [email protected]

NRG Energy, Inc.211 Carnegie CenterPrinceton, NJ 08540

Matt SchweiderPortfolio Director, Coal and EmissionsPhone: 609-524-4777Phone: [email protected]

Ginny FarrowDirector, Coal TransportationFax: 609-524-4991Fax: [email protected]

Newmont Mining Corporation

Gary E. KaliherDirector Global Logistics3719 Quail Hollow DriveBoise, ID 83703Phone: 208-853-7525Fax: [email protected]

Leeland KrugerudGroup Executive, Development 555 Fifth St.Elko, NV 89801Phone: 775-778-2502Fax: [email protected]

Omaha Public Power District444 S. 16th St. MallOmaha, NE 68102www.oppd.com

Ronald BoroManager, Fossil FuelPhone: 402-514-1041Fax: [email protected]

Orlando Utilities Commission (OUC)6113 Pershing Ave. 32822P.O. Box 3193Orlando, FL 32802www.ouc.com

Jan AspuruVP, Power ResouresPhone: 407-649-3944Fax: [email protected]

Pacifi Corp1407 W. North TempleSalt Lake City, UT 84116www.pacifi corp.com

Rod RobertsManager Engineering/Environmental Phone: 801-220-4577Fax: 801-220-4028roberts.rod_k@pacifi corp.com

Dave SmaldoneManaging Director Fuel HandlingPhone: 801-220-4607Fax: 801-220-4725dave.smaldone@pacifi corp.com

Platte River Power Authority2000 East Horsetooth RoadFort Collins, CO 80525www.prpa.org

Jason FrisbieDivision Manager, Power ProductionPhone: 970-229-1705Fax: [email protected]

Brian MoeckGeneral ManagerPhone: 970-229-5200Fax: [email protected]

Portland General Electrric121 S.W. Salmon St.Portland, OR 97204www.portlandgeneral.com

Terri PeschkaGeneral Manager, Power OperationsPhone: 503-464-8304Fax: [email protected]

Angeline ChongManager Fuels OperationsPhone: 503-464-7343Fax: [email protected]

PPL Energy Plus2 North Ninth St., PL 7Allentown, PA 18101www.pplweb.com

Ben E. StothartManager Coal Supply & TransportationPhone: 610-774-5500Fax: [email protected]

Progress Energy410 S. Wilmington St.Raleigh, NC 27601www.progress-energy.com

Sasha WeintraubDirector CoalPhone: 919-546-2400Fax: [email protected]

Brett PhippsCoal ProcurementPhone: 919-546-7750Fax: 919-546-2590410 S. Wilmington St.Raleigh, NC [email protected]

Public Service Company of New Mexico2401 Aztec Road N.E.Albuquerque, NM 87107www.pnm.com

Duane J. FarmerDirector Fuels & Wholesale Market PolicyPhone: 505-855-6200Fax: [email protected]

Rentech1331 17th St., Suite 120Denver, CO 80439www.rentechinc.com

Richard SheppardSenior Vice PresidentPhone: [email protected]

Salt River ProjectMail Station POB001P.O. Box 52025Phoenix, AZ 85072-2025www.srpnet.com

Randy DietrichManager FuelsPhone: 602-236-4311Fax: [email protected]

Tom AbdaliSenior Fuels AnalystPhone: 602-236-4305Fax: [email protected]

SCANA Corp.www.scana.com

Sarena BurchSenior Vice President1426 Main St., MC 191Columbia, SC 29201Phone: 803-217-9321Fax: [email protected]

Gerhard HaimbergerGeneral Manager111 Research DriveColumbia, SC 29203Phone: 803-217-9548Fax: [email protected]

Southern CompanyP.O. Box 2641 Birmingham, AL 35242www.southernco.com

Susan ComenskyDirector Coal ServicesPhone: 205-257-0298Fax: [email protected]

Jeff WallaceVice Presdient Fuel ServicesPhone: 205-257-6111Fax: [email protected]

2008 MEMBERSHIP DIRECTORY 9

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Tucson Electric Power Company3950 E. Irvington RoadTucson, AZ 85714www.tucsonelectric.com

David JacobsDirector Fuel and Resource PlanningPhone: 520-745-7130Fax: [email protected]

Patricia RodriguezLead Fuels AnalystPhone: 520-745-3264Fax: [email protected]

We Energies333 West Everett St.Room A226Milwaukee, WI 53203www.we-energies.com

Klaus MylottaManager, Coal Resources & Emissions TradingPhone: 414-221-2620Fax: [email protected]

Westar Energy818 South Kansas Ave. P.O. Box 889Topeka, KS 66601www.wr.com

Jerry KroekerDirector, Coal Fuel ServicesPhone: 785-575-1864Fax: [email protected]

Dan HartzellManager, Coal Fuel ServicesPhone: 785-575-1893Fax: [email protected]

WPS Resource Corporation600 North Adams St.Green Bay, WI 54307-9002www.wpsr.com

Karen J. KollmannDirector, Fossil Fuel ServicesPhone: 920-433-1301Fax: [email protected]

Xcel Energy1099 18th St., Suite 3000Denver, CO 80202www.xcelenergy.com

Kathryn ValdezRegional Manager CoalPhone: 303-308-2830Fax: [email protected]

Energy Traders

Cargill, Incorporated12700 Whitewater Drive, MS 153Minnetonka, MN 55343

Peter HernkeSenior Coal TraderPhone: 952-984-3329Fax: [email protected]

Matt MooreCoal TraderPhone: 952-984-4181Fax: [email protected]

Dynegy Coal Trading & Transportation LLC1000 Louisiana St.Suite 5800Houston, TX 77002www.dynegy.com

West BoettgerManaging DirectorPhone: 713-767-6082Fax: [email protected]

Evolution Markets LLC10 Bank St.White Plains, NY 10606www.evomarkets.com

Stephen NesisManaging DirectorPhone: 914-323-0250Fax: [email protected]

Tom HiemstraVice President, Coal ServicesPhone: 914-323-0250Fax: [email protected]

ICAP United, Inc.www.upicoal.com

Ian TapsallManager Coal Desk187 Danbury RoadWilton, CT 06897Phone: 203-762-8493Fax: [email protected]

Daniel VaughnDirector, Coal Services250 Lakewood DriveSuite 5502Hollister, MO 65672Phone: 417-336-5582Fax: [email protected]

Koch Carbon LLC20 Greenway PlazaHouston, TX 77046www.kochind.com

Brad SpeerVice President Coal TradingPhone: 713-544-5678Fax: [email protected]

Lehman Brothers10350 Park Meadows Drive, 1st FloorLittleton, CO 80124www.lehman.com

Matt LevarCommodities SalesPhone: [email protected]

Jeff PriceVP CommoditiesPhone: 720-267-6910jeff [email protected]

SSM Coal Americas, LLC10500 Little Patuxent ParkwayColumbia, MD 21044www.ssmcoal.com

Charles E. RountreeVice PresidentPhone: 410-910-0640Fax: [email protected]

Sempra Energy Trading58 Commerce RoadStamford, CT 06905

Jeff MiddenRegional Vice PresidentPhone: [email protected]

Stephen SmithVice PresidentPhone: [email protected]

The C. Reiss Coal Companywww.kochcarbon.com

Fletcher Dennis General Manager Sales & Distribution2525 Harrodsburg RoadSuite 130Lexington, KY 40504 859-296-2100Fax: [email protected]

Bill ReissPresidentP.O. Box 688Sheboygan, WI 53082-0688Phone: 920-451-8910Fax: 920-457-4417

Transportation Companies

AEP/Cook Coal TerminalP.O. Box 870Metropolis, IL 62960www.aep.com

Chuck WestCoal RepresentativePhone: 618-524-1920Fax: [email protected]

10 AMERICAN COAL COUNCIL

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AEP Memco LLP16090 Swingley Ridge RoadChesterfi eld, MO63017www.memcobarge.com

Robert M. BlockerVice President Sales & LogisticsPhone: 636-530-2156Fax: [email protected]

Mike BrashierManager, Open Hopper Sales & LogisticsPhone: 636-530-2145Fax: [email protected]

James H. GarrettPlant ManagerP.O. Box 870Metropolis, IL 62960Phone: 636-530-2462Fax: [email protected]

American Commercial Lines LLC1701 E. Market St.Jeff ersonville, IN 47130www.aclines.com

Michael P. RyanSenior VP Sales & MarketingPhone: 812-288-1980Fax: [email protected]

Tom WatersDirector, Coal & EnergyPhone: 812-288-0542Fax: [email protected]

BNSF RailwayP.O. Box 961051Fort Worth, TX 76161-0051www.bnsf.com

Bob BrautovichAVP, Coal MarketingPhone: 817-867-6236Fax: [email protected]

Stevan B. BobbGroup Vice President, Coal MarketingPhone: 817-867-6242Fax: [email protected]

Crounse Corporationwww.crounse.com

Robert L. Englert Jr.Manager Maysville Division200 Commerce St.Maysville, KY 41056Phone: 606-564-6843Fax: [email protected]

Rob WebbManager Sales & Contract Administration2626 BroadwayPaducah, KY 42001Phone: 270-444-9611Fax: [email protected]

CSX Transportation500 Water St., J842Jacksonville, FL 32202www.csx.com

Chris JenkinsVice President Coal and AutomotivePhone: 904-366-5693Fax: [email protected]

Dennis DamronVice President Coal Sales & MarketingPhone: 904-359-3380Fax: [email protected]

Dakota, Minnesota & Eastern Railroad Corp.140 N. Phillips Ave.P.O. Box 1260Sioux Falls, SD 57101www.dmerail.com

Kevin V. Schieff erPresident/CEOPhone: 605-782-1206Fax: 605-782-1299kvs@dmerailcom

Lynn AndersonVice President, MarketingPhone: 605-782-1234Fax: [email protected]

East Side River Transportation#6 Executive Woods, Suite 3Belleville, IL 62226

Jim McEvillyPresidentPhone: [email protected]

Ingram Barge Company4400 Harding Road, 1 Belle MeadeNashville, TN 37205-2290www.ingrambarge.com

Tom VorholtVice President Dry Cargo SalesPhone: 615-298-8214Fax: [email protected]

Joe JohnsonDirector Utility SalesPhone: 615-298-8255Fax: [email protected]

Interlake Steamship Company4199 Kinross Lakes ParkwayRichfi eld, OH 44286www.interlake-steamship.com

John HopkinsVice President, MarketingPhone: 330-659-1402Fax: [email protected]

Kansas City Southern Railway427 West 12th St.Kansas City, MO 64105www.kcsr.com

Jim WochnerVice President Sales & MarketingPhone: 816-983-1324Fax: [email protected]

Darin SelbyDirector Coal Sales & MarketingPhone: 816-983-1040Fax: 816-983-1418427 West 12th St.Kansas City, MO [email protected]

KCBX Terminals Company3259 E. 100th St.Chicago, IL 60617www.kochind.com

Tom KramerGeneral ManagerPhone: 773-978-8317Fax: [email protected]

Kinder Morgan Bulk Terminals, Inc.www.kindermorgan.com

Brian Feyereisen1 Allen Center500 Dallas St., Suite 1000Houston, TX 77002Phone: 713-369-8766Fax: [email protected]

Midwest Energy ResourcesP.O. Box 787, W. Winters & Ajax RoadSuperior, WI 54880www.midwestenergy.com

Fred L. ShusterichPresidentPhone: 715-395-3516Fax: [email protected]

Daniel C. McDonaldVice President & ControllerPhone: 715-395-3506Fax: [email protected]

Montana Rail Link, Inc. P.O. Box 16390Missoula, MT 16390www.montanarail.com

Tom CostonMarketing ManagerPhone: 406-523-1410Fax: [email protected]

2008 MEMBERSHIP DIRECTORY 11

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Norfolk Southern Corporationwww.nscorp.com

Daniel SmithSenior Vice President Energy & Properties3 Commercial PlaceNorfolk, VA 23510-9205Phone: 757-629-2813Fax: [email protected]

Ronald A. (Ron) ListwakAssistant Vice President Utility Coal North1717 Arch St., 49th FloorPhiladelphia, PA 19103Phone: 215-448-4243Fax: [email protected]

Savage Services6340 South 3000 EastSuite 600Salt Lake City, UT 84121www.savageservices.com

David G. WolachExecutive VP DevelopmentPhone: 801-944-6613Fax: [email protected]

Charles O. Monroe Jr.Senior Vice President Coal Services Dev.Phone: 801-944-6629Fax: [email protected]

SCH Terminal Co., Inc.2850 N. Main St.Madisonville, KY 42431

Bill RagerVice President OperationsPhone: 270-821-5149, ext. 8131Fax: [email protected]

Gary QuinnVice President Utility ServicesPhone: 423-899-0591Fax: [email protected]

Thunder Bay Terminals Ltd.95 St. Clair Ave. WestSuite 1101Toronto, Ontario M4V 1N6CANADA

Hilary GoldenbergPresidentPhone: 416-515-7449Fax: [email protected]

TTI Railroad, Inc.205 Winchester St.Paris, KY 40361Phone: 859-987-1589Fax: 859-987-1625

C. Randall “Randy” [email protected]

Russell S. RogersVice President [email protected]

Union Pacifi c Railroad Company1400 Douglas St., Stop 1260Omaha, NE 68179-1260www.up.com

Doug GlassVice President & General ManagerPhone: 402-544-5678Fax: [email protected]

Jim LorenzSenior Business Manager EnergyPhone: 402-544-6272Fax: [email protected]

United Maritime Group

Brian MilesCorporate Sales2800 Veterans Blvd.Suite 255Metairie, LA 70002 Phone: 504-834-2274Fax: [email protected]

Cliff JohnsonVice President Sales702 N. Franklin St., Plaza 9Tampa, FL 33602Phone: 813-209-4258Fax: 813-273-0248cliff [email protected]

Coal Support Services

Analytical & Environmental Services

ADA Environmental Solutions, Inc.8100 SouthPark Way, Unit BLittleton, CO 80120www.adaes.com

Michael Durham, Ph.D.PresidentPhone: 303-734-1727Fax: [email protected]

Jon BarrVice President Sales & MarketingPhone: 303-339-8842Fax: [email protected]

Fine Coal Inc.6043 Triphammer RoadLake Worth, FL 33463

Alberto GamboaPresident/OwnerPhone: 561-296-2773fi [email protected]

Golder Associates Inc.44 Union Blvd., Suite 300Lakewood, CO 80228www.golder.com

Neil EurickBusiness Development ManagerPhone: 303-980-0540Fax: [email protected]

Bill � ompsonPrincipalPhone: 303-980-0540Fax: [email protected]

Sampling Associates InternationalP.O. Box 338Newport News, VA 23607

Paul ReaganPresidentPhone: 757-928-0484Fax: [email protected]

SGS Minerals Serviceswww.us.sgs.com/minerals

Dave SmercinaSenior Vice President Energy Minerals1919 South Highland Ave.Suite 210-BLombard, IL 60148Phone: 630-953-9300Fax: [email protected]

Marc RademacherVice President Business Development West4665 Paris St., B-200Denver, CO 80239-3117Phone: 303-373-4772Fax: [email protected]

Standard Laboratories, Inc.1880 North Loop DriveCasper, WY 82601www.standardlabs.com

Steve Miladinovich Jr.Western Division ManagerPhone: 307-234-9957Fax: [email protected]

Taggart Global, LLCwww.taggartglobal.com

David MorrisVice President Business Development2090 Greentree RoadPittsburgh, PA 15220Phone: 206-720-1899Fax: [email protected]

12 AMERICAN COAL COUNCIL

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Michael FergusonVice PresidentP.O. Box 584Goose Creek, SC 29445Phone: [email protected]

Equipment & Materials Suppliers

ALSTOM Power, Performance Projects2000 Day Hill RoadWindsor, CT 06095www.power.alstom.com

Patrick JenningsBusiness Development ManagerPhone: 860-285-4010Fax: [email protected]

David O’NeillGeneral ManagerPhone: 860-285-5012Fax: 860-285-9676dave.o’[email protected]

Benetech, Inc.1851 Albright RoadMontgomery, IL 60538www.benetechusa.com

Christopher BlazekVice President MarketingPhone: 630-844-1300, ext. 214Fax: [email protected]

Ronald PirconPresident/CEOPhone: 630-844-1300, ext. 213Fax: [email protected]

FreightCar AmericaTwo North Riverside PlazaSuite 1250Chicago, IL 60606www.freightcaramerica.com

Edward J. WhalenSenior Vice President, Marketing & SalesPhone: 312-928-0850Fax: [email protected]

Fuel Tech, Inc.512 Kingsland DriveBatavia, IL 60510www.fueltechnv.com

Chris SmyrniotisVice President Marketing & TechnologyPhone: 630-845-4461Fax: [email protected]

Steve BradySenior VP, Sales & MarketingPhone: 630-845-4420Fax: [email protected]

Martin EngineeringOne Martin PlaceNeponset, IL 61345www.martin-eng.com

Scott HutterPresident/CEOPhone: 309-594-2384Fax: [email protected]

James GassenVice President MarketingPhone: 309-594-2384, ext. 295Fax: [email protected]

Powerspan100 International DriveSuite 200Portsmouth, NH 03801www.powerspan.com

Stephanie ProcopisDirector of MarketingPhone: 603-570-3000Fax: [email protected]

Frank AlixCEOPhone: 603-570-3000Fax: [email protected]

Pratt & Whitney3633 136th Pl. S.E.Suite 310Bellevue, WA 98006www.shock-system.com

A. Tofa McCormickBusiness AnalystPhone: 425-278-2448Fax: [email protected]

Jim HochsteinManager, Sales & MarketingPhone: 425-278-2407Fax: 860-622-3467

Separation Technologies LLC101 Hampton Ave.Needham, MA 02494www.stiash.com

Dave TimmermanVice President Generation ServicesPhone: 781-972-2302Fax: [email protected]

Trinity Industries2525 North Stemmons Fwy.Dallas, TX 75207www.trinityrail.com

Randall � omureVice President Product MarketingPhone: 214-589-8405Fax: [email protected]

Financial, Capital & Marketing Associates

Boral Material Technologieswww.boralmti.com

Craig PlunkVice President Utility Relations45 N.E. Loop 410, Suite 700San Antonio, TX 78216Phone: 210-349-4069, ext. 119Fax: [email protected]

John ScogganSenior Vice President Utility Services1343 Canton Road, Suite CMarietta, GA 30066Phone: 770-423-1883Fax: [email protected]

David J. Joseph Company300 Pike St.Cincinnati, OH 45202www.djj.com

Trey W. SavageVice President Marketing & SalesPhone: 513-621-8770Fax: [email protected]

David ReddenPhone: [email protected]

DTE Rail Services13949 W. Colfax Ave., Bldg. One, Suite 120Lakewood, CO 80401www.dtets.com

John Pfi stererPresidentPhone: 303-216-4264Fax: 303- 216-4281pfi [email protected]

Nick KeysDirector of SalesPhone: 303-216-4269Fax: [email protected]

Ernst & Young190 Carondelet PlazaSuite 1300Clayton, MO 63105www.ey.com

J. Andrew MillerPartner, Mining Industry LeaderPhone: 314-290-1205Fax: [email protected]

2008 MEMBERSHIP DIRECTORY 13

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GE Rail Services161 N. Clark St., 7th FloorChicago, IL 60601www.gerail.com

James ZoellickAsset ManagerPhone: 312-853-5395Fax: [email protected]

Headwaters Incorporated10653 S. Riverfront ParkwaySuite 300South Jordan, UT 84095www.headwaters.com

Ken FraileyPresident, Headwaters Energy ServicesPhone: 801-984-9400Fax: [email protected]

Linda RathbunDirector, Marketing StrategiesPhone: 801-984-3793Fax: [email protected]

Helm Financial Corporation505 Sansome St., Suite 1800San Francisco, CA 94111www.hlmx.com

Ed GarveySenior Vice PresidentPhone: 415-229-1604Fax: [email protected]

Mineral Resource Technologies, A CEMEX Co.2700 Research Forest DriveSuite 150� e Woodlands, TX 77381www.mrtus.com

Mike SilvertoothBusiness Development ManagerPhone: 281-362-1060Fax: [email protected]

PNC Bank N.A.249 Fifth Ave.Pittsburgh, PA 15222-2707www.pncbank.com

Rick MunsickPhone: 412-762-4299

Pricewaterhouse-Coopers LLP1850 N. Central Ave., #700Phoenix, AZ 85004-4545www.pwc.com

Steve RalbovskyPhone: 602-364-8193Fax: [email protected]

Railroad Financial Corporation676 N. Michigan Ave.Suite 2800Chicago, IL 60611

Anthony KruglinskiPresidentPhone: 312-222-1383Fax: 312-222-1470tkruglinski@railfi n.com

David NahassSenior Vice PresidentPhone: 312-222-1383Fax: 312-222-1470dnahass@railfi n.com

Technical & Economic Consultants

Argus Media, Inc.1012 Fourteenth St. N.W., Suite 1500Washington, DC 20005www.argusonline.com

C. Miles WeigelSenior Vice PresidentPhone: 484-431-4208Fax: [email protected]

Black & Veatch11401 Lamar Ave.Overland Park, KS 66211www.bv.com

April Anderson-HiggsFuels Consulting Project ManagerPhone: 913-458-9740Fax: [email protected]

Kevin JennisonFuels Consulting Service LeaderPhone: 913-458-9762Fax: [email protected]

Global Energy Decisionswww.globalenergy.com

Gary HuntPresident2379 Gateway Oaks DriveSuite 200Sacramento, CA 95833Phone: 916-609-7750Fax: [email protected]

Hans DanielsManager Coal Advisory Services1495 Canyon Blvd.Suite 100Boulder, CO 80302Phone: 720-240-5544Fax: [email protected]

Hazen Research, Inc.4601 Indiana St.Golden, CO 80403www.hazenusa.com

Charles W. (Rick) KenneyVice PresidentPhone: 303-279-4501Fax: [email protected]

Robert A. ReevesSenior Project ManagerPhone: 303-279-4501Fax: [email protected]

Hellerworx, Inc.4803 Falstone Ave.Chevy Chase, MD 20815www.hellerworx.com

Jamie HellerPresidentPhone: 301-654-1980Fax: [email protected]

Hill & Associates, A Wood Mackenzie CompanyP.O. Box 3475Annapolis, MD 21403www.hillandassoc.com

Jeff ery A. WatkinsPresidentPhone: 410-263-6616Fax: 410-268-0923jeff [email protected]

ICF Consulting9300 Lee HighwayFairfax, VA 22031www.icfconsulting.com

John BlaneyManaging DirectorPhone: 703-934-3367Fax: [email protected]

John T. Boyd Companywww.jtboyd.com

Bill WolfSenior Analyst1500 Corporate DriveSuite 100Canonsburg, PA 15317Phone: 724-873-4400Fax: [email protected]

Richard BateVice President Phone: 303-293-8988Fax: 303-293-2232999 18th St., 1400 S. Tower Denver Pl.Denver, [email protected]

14 AMERICAN COAL COUNCIL

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Marston & Marston, Inc.www.marston.com

Kip WilliamsVice President & Senior Geological Consultant3300 Nacogdoches RoadSuite 115San Antonio, TX 78217Phone: 210-655-1185Fax: [email protected]

Bill MeisterSenior Vice President & Senior Mining Consultant13515 Barrett Parkway Drive, Suite 260St. Louis, MO 63021Phone: 314-984-8800Fax: [email protected]

The McCloskey GroupUnit 6, Rotherbrook Court, Bedford RoadPetersfi eld, UK GU32 3QGHampshirewww.mccloskeycoal.com

Tony TabnerSales & Marketing ManagerPhone: +44 0 1730 265095Fax: +44 0 1730 [email protected]

Christian Griffi thsSales ManagerPhone: +44 0 1730 265095Fax: +44 0 1730 260044Christian.griffi [email protected]

McGuireWoods LLPwww.mcguirewoods.com

Leonard J. MarsicoPartner625 Liberty Ave., 2nd FloorPittsburgh, PA 15222Phone: 412-667-7987Fax: [email protected]

Leslie A. GrandisPartner901 E. Cary St.Richmond, VA 23219Phone: 804-775-4322Fax: [email protected]

Mitsui Rail Capital, LLC5215 Old Orchard RoadSuite 505Skokie, IL 60077www.mrc-rail.com

Yasushi ImaiPhone: 847-581-3834Fax: [email protected]

Norwest Corporation136 East South Temple12th FloorSalt Lake City, UT 84111www.norwestcorp.com

Kirk WeberVice President & General ManagerPhone: 801-539-0044Fax: [email protected]

Pace Global Energy Services4401 Fair Lakes CourtSuite 400Fairfax, VA 22033www.paceglobal.com

Mark BossardDirector Solid Fuels ServicesPhone: 703-227-8768Fax: [email protected]

Gary VincinusVice PresidentPhone: 703-227-8802Fax: [email protected]

Pincock, Allen & Holt165 S. Union Blvd.Suite 950Lakewood, CO 80228

Raja P. UpadhyayPresidentPhone: 303-986-6950Fax: [email protected]

Platts 3333 Walnut St.Boulder, CO 80301www.platts.com

Terry WalshPhone: 720-548-5776Fax: [email protected]

Mike McKevittPhone: 720-548-5573Fax: [email protected]

Resource Technologies Corp.P.O. Box 242State College, PA 16804-0242www.resourcetec.com

Jeff rey KernPresidentPhone: 814-237-4009Fax: [email protected]

David FalkensternSenior Geotechnical AnalystPhone: 814-237-4009Fax: [email protected]

Roberts & Schaefer Company10150 Centennial Parkway#400Sandy, UT 84070www.r-s.com

Steve CattaniBusiness Development ManagerPhone: 801-984-0900Fax: [email protected]

Brian PetersenSenior Vice President & General ManagerPhone: 801-364-0900Fax: [email protected]

Storm Technologies, Inc.P.O. Box 429Albemarle, NC 28002www.stormeng.com

Richard F. StormPresident/CEOPhone: 704-983-2040Fax: 704-982-9657

[email protected]

Troutman Sanders LLP401 Ninth St. N.W.Suite 1000Washington, DC 20004-2134

Sandra L. BrownPhone: 202-274-2959Fax: [email protected]

URS Corporationwww.urscorp.com

George WarrinerPower Business Sector Manager9400 Amberglen Blvd.Austin, TX 78729Phone: 512-419-5516Fax: [email protected]

Jerry HollindenSenior Vice PresidentWaterfront Plaza One 325 W. Main, Suite 1200Louisville, KY 40202Phone: 502-217-1516Fax: [email protected]

2008 MEMBERSHIP DIRECTORY 15

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An investment in America’s e

energy future

An investmentin America’s energy

utureAn investment

in America’s energy uture

Corporation

Contributing Supporters

American Coal Ash Association15200 E. Girard Ave.Suite 3050Aurora, CO 80013-3955www.acaa-usa.org

David GossExecutive DirectorPhone: 720-870-7897Fax: [email protected]

American Coalition for Clean Coal Electricity1110 Innsbrook LaneBuff alo, MN 555313www.cleancoalusa.org

Mark OuradaVice President External Aff airsPhone: 703-302-1213Fax: [email protected]

The Coal Association of Canada100, 205 Ninth Ave. S.E.Calgary, AB T2G 0R3CANADAwww.coal.ca

Allen WrightExecutive DirectorPhone: 403-262-1544Fax: [email protected]

George WhiteChairman of the Board of DirectorsPhone: [email protected]

Coal Utilization Research Council1050 � omas Jeff erson St. N.W.Washington, DC 20007www.coal.org

Ben YamagataExecutive DirectorPhone: 202-298-1857Fax: [email protected]

Shannon AngielskiAssociate DirectorPhone: 202-298-1825Fax: 202-338-2416

University of Kentucky – Center for Applied Energy Research2540 Research Park DriveLexington, KY 40511-8410www.caer.uky.edu

James C. HowerSenior ScientistPhone: 859-257-0261Fax: [email protected]

University of North Dakota, Energy & Environmental Research Center15 North 23rd St.Stop 9018Grand Forks, ND 58202-9018www.undeerc.org/carrc

Debra Pfl ughoeft-HassettProgram Manager Coal Ash ResearchPhone: 701-777-5261Fax: [email protected]

West Virginia UniversityNat’l. Research Center for Coal & EnergyP.O. Box 6064Evansdale DriveMorgantown, WV 26506-6064

Richard A. BajuraDirectorPhone: 304-293-2867Fax: [email protected]

Western Region Ash Group (WRAG)www.wrashg.org

Fred GustinKansas City Power & Light P.O. Box 418679Kansas City, MO 64141-9679Phone: [email protected]

Western Research Institute365 North Ninth St.Laramie, WY 82072www.westernresearch.org

Dr. Alan BlandVP Waste & Environmental Mgt.Phone: 307-721-2386Fax: [email protected]

ACC Staff

1101 Pennsylvania Ave. N.W.Suite 600Washington, DC 20004 Phone: 202-756-4540Fax: 202-756-7323www.americancoalcouncil.orginfo@americancoalcouncil.org

CEOJanet Gellici, [email protected]

Communications DirectorJason [email protected]

Conference DirectorTeresa Coff ertcoff [email protected]

Executive AssistantMichele [email protected]

Legal CounselBill WaltersKelly Garnsey Hubbell + Lass LLC1441 18th St., Suite 300Denver, CO 80202Phone: 303-296-9412Fax: [email protected]

Index to AdvertisersArch Coal, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front Cover

Foundation Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover

FreightCar America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outside Back Cover

LECO Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Separation Technologies LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

16 AMERICAN COAL COUNCIL

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An investment in America’s e

energy future

An investmentin America’s energy

utureAn investment

in America’s energy uture

Corporation

Index to Advertisers

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N ever has America needed clean coal liquid transport fuels more than in today’s global energy

environment. Clean coal needs to be an integral part of our energy future. Using proven gasification and liquefaction tech-nology, we can produce a clear and clean liquid transport fuel from America’s most abundant fossil fuel reserves with a rela-tively low carbon footprint. This fuel can be supplied into the existing transport fuel infrastructure at prices that are com-petitive with crude oil based fuels.

Market Forces are Driving America to Coal Liquids. The industrial revolution in China and India is pushing up energy demand. Conventional oil reserves are getting more costly to produce and more difficult to secure. These factors are helping drive oil prices higher. World oil demand is projected to increase by over 30 million barrels per day by 2030, from our cur-rent usage. At the same time, oil prices are expected to move toward $120 per barrel as world supplies tighten.

The United States is currently import-ing just under 14 million barrels of oil per day. At $100 per barrel this is costing the country $1.4 billion a day – a half a trillion dollars per year. This massive out-flow of cash is contributing to the U.S. trade deficit and weakening the dollar. It also provides direct financial support to economies of many countries that are not friendly toward the United States.

Coal is our largest fossil fuel reserve; it can help reduce our economic and national security vulnerability from oil import shocks. At 270 billion tons, the United States has 26 percent of the world’s coal reserves. At the current U.S. demand of 1.1 billion tons per year, the expected life of our reserves is 240 years. Those coal reserves would enable the United States to displace a portion of our oil imports and substantially reduce the geopolitical volatil-ity of U.S. oil supplies.

First U.S. Commercial Scale Coal-to-Liquids Facility. DKRW Advanced Fuels

is developing a coal-to-liquids (CTL) facil-ity in Carbon County, Wyo. The Medicine Bow Fuel & Power project would convert Carbon Basin bituminous coal into over 18,000 barrels per day of low sulfur gasoline when it comes on line in 2013. Key licensing agreements are in place and the company is working toward final permit approval so that site work can begin later this year.

Medicine Bow has optioned 180 million tons of coal from Arch Coal’s Saddleback Hills mine and Arch will operate the long-wall, mine-mouth operation. Starting with 8,000 tons of coal per day (11,725 Btu/lb, low moisture) the facility will incorpo-rate General Electric’s (GE) patented coal gasification technology to produce a raw syngas from the coal. The GE technol-ogy has over 50 years of development and operational experience, and there are over 60 similar units running worldwide.

The syngas is cleaned up and byprod-ucts such as CO2 are removed. The cleaned syngas is conditioned and modified in several chemical processes through reactor vessels loaded with various catalysts and

then converted to methanol. And, using Exxon Mobil’s proprietary technology, the facility will convert the methanol to gaso-line (MTG). The MTG technology was developed in the 1980s and produced com-mercial scale volumes in New Zealand.

Low Carbon Footprint. Considering that Medicine Bow can capture the major-ity of the CO2 in the conversion process, its environmental profile is very competi-tive. A study by the U.S. National Energy Laboratory shows that with sequestra-tion, a CTL facility can produce liquid transport fuels with a carbon footprint smaller than that of refined petroleum products imported from Saudi Arabia, the Canadian tar sands and Venezuelan syn-crude. Further, a recent analysis published in Science magazine indicated that CTL could have a much lower carbon footprint than ethanol, which has enjoyed tremen-dous support and subsidies.

The CO2 removed from the process will be used in the growing Wyoming enhanced oil recovery (EOR) industry. According to the Wyoming Enhanced Oil Recovery

Coal Liquids in America’s Energy Future By Kate Perez, DKRW Advanced Fuels

The United States is currently importing

just under 14 million barrels of oil per

day. At $100 per barrel this is costing

the country $1.4 billion a day.

31american coal council

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Institute, the state has eight billion bar-rels of oil recoverable via EOR that could require 48 tcf of CO2. DKRW Advanced Fuels is negotiating with major producers for this opportunity and certainly there are needs elsewhere in the U.S. oil industry, as this is a proven technology for production of certain reserves.

The gasoline produced by the MTG tech-nology is very high quality and contains only trace amounts of sulfur. Medicine Bow gas-oline will be significantly better than crude oil derived fuels because the CTL process makes it possible to remove contaminates that produce NOx, SOx and volatile organic compounds from the fuel.

Strong Project Economics. As owners of the coal source, the Medicine Bow Fuels & Power project is not at the mercy of market fluctuations. It also has a reserve that can carry the project for decades and still accommodate future expansions of up to a total of 40,000 bpd of output. Our gasoline product can be shipped out on the existing pipeline and/or rail infrastructure without vast new investment, and markets for refined products remain strong. The sale of CO2 and other byproducts such

as sulfur and slag support our strong eco-nomic profile.

The opportunity to convert coal to trans-portation fuels has been around for quite some time, but the relatively balanced cost of crude precluded any significant devel-opment of the technology. A variety of opinions exist as to what cost crude must be in order for CTL to be a viable alterna-tive. Our own modeling suggests that at a WTI equivalent in the high $20s/bbl, the Medicine Bow plant would break even. Increasing costs for petroleum, coupled with the more difficult job that major oil companies are having with replacing their reserves, help make this the right time to fully develop alternative conversion tech-nologies such as CTL.

CTL is Critical. This type of conversion will not displace huge amounts of petro-leum-based gasoline, but it can be a critical part of the U.S. energy future. The infusion of CTL into the energy mix can help stabi-lize oil prices and play a pivotal role in our energy and national security. Significantly, we can capitalize on this opportunity with one of America’s most abundant resources, using proven technology and existing infra-

structure in an environmentally responsible manner to produce a clean, market-ready transportation fuel at a competitive price.

DKRW Advanced Fuels is a devel-opment-stage hydrocarbon conversion company that is focused on the commercial development, construction, ownership and operation of facilities designed to convert lower-value hydrocarbons into products that traditionally have been produced by crude oil using commercially available tech-nologies. By using proven coal gasification and liquefaction technologies, they aim to convert more abundant resources, primar-ily solid hydrocarbons such as coal, into competitively priced products. In addition to the Medicine Bow project, they are also pursuing projects in other parts of the United States and exploring international opportunities. DKRW Advanced Fuels is a subsidiary of DKRW Energy LLC. Arch Coal, the second largest coal producer in the United States, is also a shareholder in Advanced Fuels.  u

Kate Perez is the director of communi-cations & publications at DKRW Fuels (www.dkrwadvancedfuels.com).

CONSOL Energy Inc.Consol Plaza, 1800 Washington Road, Pittsburgh, PA 15241412/831-4000 www.consolenergy.com

CONSOL Energy Inc., a high-Btu bituminous coal and coal bed methane company, is a member of the Standard & Poor’s 500 Equity Index and has annual revenues of $3.7 billion. It has 20 bituminous coal mining complexes in six states and reports proven and probable coal reserves of 4.5 billion tons. In addition, the company is a majority shareholder in one of the largest U.S. producers of coalbed methane gas, CNX Gas Corporation. CONSOL Energy was named one of America’s most admired companies in 2005 by Fortune magazine. Additional information about the company can be found at its web site: www.consolenergy.com.

32 american coal council

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A s newspaper headlines about climate change increasingly focus on technologies for carbon capture

and storage, the coal industry is already growing another strategy for reducing global carbon dioxide emissions by mil-lions of tons each year.

Coal combustion products such as fl y ash are created when coal is consumed to generate electricity. Th ese “CCPs” can be used in several ways to reduce or offset CO2 emissions from other processes.

For instance, fl y ash can be used to make concrete that is stronger and more durable than concrete made with cement alone. In the process, the amount of cement needed is reduced – creating substantial green-house gas emissions reductions.

In October 2007, former Vice President Al Gore received the Nobel Peace Prize for his role in bringing the issue of climate change to the top of the political agenda in the United States and internationally. According to the Pew Center on Global Climate Change, at least 36 states have begun or completed climate action plans

and five regional initiatives on climate change are under way. Th e United States Congress is also beginning to move for-ward more aggressively toward the creation of a national regulatory program for reduc-ing greenhouse gas emissions.

One likely feature of a national regula-tory program may be a cap and trade system for greenhouse gas emissions. Under a cap and trade system, the government sets an overall limit on emissions, but allows com-panies that can easily reduce emissions to sell credits to other companies for which reductions would be more diffi cult. Th is fl exible system encourages markets to fi nd the most cost-eff ective ways to reduce emis-sions. Cap and trade systems have worked well in the United States for reducing emis-sions of pollutants such as sulfur dioxide and nitrogen oxide.

Coal combustion product utilization could make a signifi cant diff erence in help-ing the United States to reduce greenhouse gas emissions. Th e reductions could come in a couple of ways.

First, the use of coal fl y ash in concrete displaces carbon dioxide emissions from cement manufacturing. Generally speak-ing, a ton of fl y ash can be used to replace a ton of cement in making concrete. By eliminating the need to manufacture that ton of cement, a ton of carbon dioxide

Reducing Greenhouse Gas Emissions Through Coal Ash Utilization: New task team preparing industry for a cap and trade future

Former Vice President Al GorePhoto by the World Resources Institute

By John Ward, 2006 ACC President and ACAA Government Relations Committee Chair

33american coal council

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emissions are avoided.1 Last year in the United States, we used about 15 million tons of fly ash for that purpose. That’s like eliminating the carbon dioxide emissions of 2.5 million cars for the entire year.

Another opportunity for coal combus-tion products is in the agricultural sector. For instance, synthetic gypsum from power plant scrubbers can be used as a soil amendment to enable no-till farming – another key greenhouse gas reduction strategy.

Acceptance of these strategies by regula-tory authorities is not assured, however. If a cap and trade system is enacted in the United States, projects seeking to par-ticipate may need to meet strict standards for scientific justification, project docu-mentation, third party monitoring and

verification, and other considerations. It is too early to know exactly what legislative and regulatory requirements will be estab-lished in the United States.

To prepare for this potential opportu-nity, the American Coal Ash Association Government Relations Committee has formed a Greenhouse Gas Emissions Trading Task Team. The team includes representatives of electric utilities, coal combustion products marketers, concrete producers, cement manufacturers, engi-neering companies, and academia.

The ultimate goal of this team is to prepare the coal combustion products industry for the emergence of green-house gas regulations in the United States. If the industry is properly pre-pared, those regulations could provide

a tremendous boost to increasing uti-lization of an under-utilized resource. And more aggressive utilization of this resource could go a long way toward helping the United States to achieve its climate change goals.  u

Participation in the ACAA Greenhouse

Gas Emissions Trading Task Team is open to all American Coal Ash Association members. For more information contact John Ward at [email protected] or Dave Goss at [email protected]

John N. Ward is the former vice president, Headwaters Incorporated (www.headwaters.com). John was also the 2006 president of the American Coal Council and is the ACAA government relations committee chair.

Coal combustion product utilization could make a significant difference

in helping the United States to reduce greenhouse gas emissions.

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1 Editor’s note: World cement production numbers indicate that between 0.8 to 1.25 tons of CO2 are produced in the production of each ton of Portland cement.

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Today, coal fuels more than 50% of U.S. electricity. America has the largest coal reserves in the world... and greater use of this clean and affordable fuel can reduce our reliance on foreign oil and liquefi ed natural gas.

Peabody Energy (NYSE: BTU) is the world’s largest provider of coal to fuel 21st Century energy solutions.

Peabody Energy is proud to be a member of the American Coal Council.

ENERGY FOR THE 21ST CENTURY

34 american coal council

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CoalCanDoThat.com

Yeah... coal can do that.

Flip a switch.

Fuel your car.

Play a tune.

Warm your home.

Today, coal fuels more than 50% of U.S. electricity. America has the largest coal reserves in the world... and greater use of this clean and affordable fuel can reduce our reliance on foreign oil and liquefi ed natural gas.

Peabody Energy (NYSE: BTU) is the world’s largest provider of coal to fuel 21st Century energy solutions.

Peabody Energy is proud to be a member of the American Coal Council.

ENERGY FOR THE 21ST CENTURY

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Investing in the Future of Coal

www.bnsf.com

BNSF Railway is proud to join with the American Coal Council in working to advance the development and utilization of coal as an economic, abundant and envi-ronmentally sound fuel source.

Growth depends in part on transportation capacity, and BNSF has a proven track record of leadership in providing that capacity. Over the past three years, BNSF has committed more than $1.22 billion for coal capacity expansion.

The 100 miles of new railroad we built between Gillette and Orin, Wyo., in the 1970s helped develop what has become the nation’s most important domestic energy source for generating electricity. That 100-mile line has grown to almost 400 miles of track, and the expansion continues.

As our nation’s demand for an environmentally friendly, domestic energy source continues to grow, BNSF is delivering more coal than ever. BNSF has set annual coal tonnage records for each of the past four years.

With our investments in capacity, and with the expertise of the BNSF team, we’re prepared to handle even more American coal in the future.

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A s environmentalists ratchet up their campaign of increasing taxes and regulation in the guise

of global warming mitigation, their scare tactics are increasingly being exposed – and opposed.

A recent example comes from an Indian reservation in Bonanza, Utah, in the east central part of the state. The U.S. Environmental Protection Agency’s (EPA) regional office last year issued a federal Clean Air Act permit to the Deseret Power Electric Cooperative located there.

Review of the EPA’s issuance of such permits is supposed to be narrow, but in January 2008, the Sierra Club objected because the permit does not contain lim-its on carbon dioxide emissions. Joined by a who’s who of environmental groups and state attorneys general in what is obvi-ously an orchestrated attack on the Deseret plant, they argued to an appeals board within EPA that carbon dioxide limits are

required because carbon dioxide is an “air pollutant” that the U.S. Supreme Court says EPA can regulate.

The court ruled last year that carbon dioxide is an “air pollutant.” It had no choice but to do so, because the legal defi -nition is so broad: “any physical, chemical, [or] biological ... substance which is emit-ted into or otherwise enters the ambient air.” Under this defi nition, EPA could reg-ulate almost anything, including perfume, aftershave, and the scent of lilacs wafting through your backyard. For that reason, the Clean Air Act limits EPA’s regulatory powers to “air pollutants” that “may rea-sonably be anticipated to endanger public health or welfare” as determined by the EPA administrator.

EPA is now considering whether carbon dioxide presents such risks. Until now, EPA has regulated only air emissions that are inherently dangerous, such as carbon mon-oxide, ozone, and lead. But carbon dioxide

is diff erent. It is emitted not only by indus-try, but also every time a human exhales or pops open a can of soda. It is emitted by every building heated with natural gas and by every gas range in America.

If the Deseret plant is required to control carbon dioxide emissions, so will hundreds of thousands of other sources, according to the Competitive Enterprise Institute (CEI) – and 13 other groups that fi led a brief in the Deseret case. Th ese include apartment buildings, hotels, enclosed shopping malls, colleges, hospitals, large churches, domed sports stadiums, restaurants, soda manu-facturers, bakers, breweries, and wineries, to name just a few.

A decision that Deseret must regulate its carbon dioxide emissions would touch off a regulatory fi restorm that “would rever-berate across the economy,” CEI and the others noted.

Th e environmentalists involved in the case seek to skip over these realities. Instead

Regulatory Firestorm LoomsBy Maureen Martin, The Heartland Institute

“It is an embarrassment to science

that hype has replaced reason in

the global debate over so important

an issue” – Dr. S. Fred Singer

37american coal council

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of going toe-to-toe with skeptics over the causes of climate change and whether it is manmade, and without grappling with the vast regulatory consequences, they simply argue that extreme measures are needed or else life as we know it will end.

The Heartland Institute argued to the board in Deseret: “Heartland trusts the EAB will readily recognize that any rule-making conducted by it on this massive and immensely complicated subject, under the guise of a permit appeal, would be unconstitutional, illegal, and void. It would take place without a proper administrative record, in the wrong forum, without proper notice to the parties affected – which num-ber in the hundreds of thousands – and without providing those parties with an opportunity to be heard. And no party will know the terms of any CO2 rule that might emerge from this void until after-wards. By then it will be too late. Any such ‘rulemaking’ would make a mockery of Due Process.”

Heartland also submitted an abun-dance of scientific research establishing the planet is beginning to cool and that evidence of any current warming being manmade is “very weak,” as demonstrated by the eminent climate physicist Dr. S. Fred Singer and 22 other climate change experts in the March 2008 report “Nature, Not Human Activity, Rules the Climate,” published by The Heartland Institute for the Nongovernmental International Panel on Climate Change.

The report debunks the use of comput-erized climate models to predict future climate trends – the lynchpin of global warming “alarmism” – which even alarm-ists admit are unreliable. Even more troubling are the other questions raised in the report, including the shoddy way in which planetary temperatures have been measured.

Dr. Singer perhaps said it best: “It is regrettable that the public debate over climate change, fueled by the errors and exaggerations contained in the reports of the IPCC, has strayed so far from scientific truth. It is an embarrassment to science that hype has replaced reason in the global debate over so important an issue.” The Deseret case proves just how important this issue really is.  u

Maureen Martin is senior fellow for legal affairs at The Heartland Institute (www.heartland.org).

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few years back, I was asked to give a few presentations on the science of climate change. So I discussed

the claims that a broad scientific consen-sus existed on the causes of global climate change. Proponents of that theory argued that science had determined human use of fossil fuels was releasing CO2 into the atmosphere, thereby, causing unprece-dented and potentially dangerous warming. This theory is often called anthropogenic global warming (AGW).

I suggested that the average person could be excused for thinking that AGW was the cause for our changing climate. Governments, media and NGOs all swore that was the case and since then, their rhet-oric has become even more pervasive. They also informed us that so-called skeptics who questioned their theory were isolated loners, resident on the outermost fringes of the discussion. They have also created and presented expensive and prestigious awards for their frightening epics on AGW that depict the dangerous outcomes of using of fossil fuels. Some have even charged skeptics as being morally akin to holocaust deniers, actually borrowing and reworking the term into “climate denier.” It is their influence that has brought on a call for the immediate enacting of carbon-control legislation that is making its way through governments around the world.

Given those circumstances, no one could still seriously consider questioning the sci-ence. What would be the point? Even if the science weren’t settled when I gave my presentations a few years ago, it has to be now, so raising the question again would be a waste of time, right?

The authors of a newly released book would tell you that thought is wrong.

In their just-released, updated and expanded edition of Unstoppable Global Warming Every 1,500 Years, Dr. S. Fred Singer and Dennis T. Avery enthusiastically dig into the foundations of the claimed scientific consensus on AGW. Singer and Avery fill their book with citations to hun-dreds of peer-reviewed, published research papers from respected scientific journals. Ironically, they have used the research of the climate scientists that make up the alleged “consensus.” In this activity, Singer and Avery have performed an important public service. They have empowered the average citizen – granting him/her access into the complex and often inhospitable clique of climate science. This is the same person who is expected to quietly accept the “consensus view” because (s)he is not the professional; the same person who will be expected to pay the bills for whatever AGW policy that is finally enacted.

A reasonable person can, after reading this book, ask why people claim that the

Re-examining “Consensus” and the Drivers of Climate Change: Well researched review of the science questions humanity’s role

Review of: Unstoppable Global Warming Every 1,500 Years (updated & expanded edition)By S. Fred Singer and Dennis T. AveryRowman & Littlefield, 2008 Review by Jason Hayes, M.E.Des., Communications Director, American Coal Council

A

In late 2007, we began publishing book reviews to the ACC Web site as a means of promoting a discussion on energy and environmental policy and looking into what others are saying about these issues. We have included a few of these reviews in this edition of American Coal magazine.

We invite you to read through these reviews here and to look for new reviews being published regularly on the ACC Web site. We also invite readers to contact us and suggest other titles that you might like us to review.

41american coal council

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“science is settled” and why we are rush-ing to implement expensive carbon control legislation if thousands of published, peer-reviewed studies have contradicted the claims of a scientific consensus on AGW.

Answering three big questionsIn Unstoppable Global Warming, Singer

and Avery look into a vast ocean of scientific literature to answer three key issues. First, what is causing the measured warming of the earth? Second, what is the likely outcome of the warming? Third, what are the potential costs of addressing the warming and do the benefits of suggested climate change mitiga-tion strategies justify the expenses?

It is worthwhile to note first that the authors do not challenge the idea of global warming. They state early in the book, “ … the Earth has recently been warming. This is beyond doubt.” What sets their work apart is that they move forward to question whether the warming is due to human activity, rather than simply assuming it is.

The title of the book, in part, reveals their contention that global warming is caused by naturally occurring, 1,500-year Dansgaard-Oeschger (DO) cycles. DO cycles were first noticed in ice cores extracted from the Greenland ice sheet in 1983. By measuring the ratios of oxygen 18-isotopes and oxygen 16-isotopes, Denmark’s Willi Dansgaard and Switzerland’s Hans Oeschger out-lined a detailed temperature record for the Greenland area. That record showed a dis-tinct 1,500-year-long cycle of warming and cooling had occurred several times over the past 250,000 years.

Other researchers found similar warm-ing and cooling patterns in the Antarctic’s Vostok Glacier, the Sargasso Sea, and the upwelling region off the coast of West Africa. In fact, DO cycles have since been tracked all around the world – in Greenland, Africa,

North America, the North Atlantic, North Pacific, the Philippines, and Europe. Singer and Avery, as well as many other climate scientists, point to this natural 1,500-year cycle as a primary driver in global climate throughout world history.

They don’t stop there, however; they also focus on the role of the sun. Where much of the discussion around climate change seems to ignore the sun’s input into the equation, research indicates that the sun is bathing the earth in varying levels of solar rays, also known as the “solar wind.” Solar winds act as a shield for other cosmic rays that create low clouds when they come through the earth’s atmosphere. Those clouds reflect visible-range heat away from the earth, leading to increased cool-ing. Stronger solar activity means more solar winds, fewer cosmic rays, fewer low clouds, increased solar radiation, and heating of the earth’s surface.

One study, published in Geosciences Canada supported this theory and stated, “empirical observation on all time scales point to celestial phenomena as the prin-cipal driver of climate ... with greenhouse gases acting only as potential amplifiers.” The study author, Jan Veizer – a recognized expert in isotope geochemistry – continued the celestial driver theory by describing how the carbon cycle actually piggybacks on other cycles. Later in Unstoppable Global Warming, Singer and Avery expand on this assertion by showing that carbon diox-ide levels actually lag behind temperature changes by as much as 800 years. This means that global warming produces more CO2, not the other way around.

The book reviews numerous other impor-tant theories and research, such as the highly controversial “hockey stick” graph, widely promoted as a foundational piece of evi-dence for the 2001 Intergovernmental Panel

hat sets their

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warming is due to human

activity, rather than

simply assuming it is.

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on Climate Change (IPCC) science report. The graph and research that produced it have been the focus of a multi-year sta-tistical battle, as well as charges of flawed calculations and serious data defects. Singer and Avery also investigate the reliability of Global Climate Models (GCM) versus real-world research and empirical data. They look at the controversy surrounding urban heat islands and how they have impacted ground-based temperature readings. Compared with ground-based readings, weather bal-loon and satellite records show remarkably stable ground and atmospheric temperatures. Singer and Avery wrap up this discussion by considering the difficulties that GCMs have with modeling atmospheric moisture and clouds.

Having presented a defensible basis for the earth’s changing climate, the authors turn their attention to answering what the likely outcome of the warming will be. One example – sea level rise – will suffice to show how they have handled this and other controversies.

The concern over rising sea levels has become a lightning rod issue in the cli-mate change debate. Stories of 20-foot increases and a flooded Manhattan have been splashed around the news. Singer and Avery, however, look to published research to determine the real potential for such dras-tic outcomes. They report IPCC findings of a maximum potential sea level rise of 23.2 inches by 2100, and then look to data from the International Union for Quaternary Research (INQUA), a group founded for the purpose of studying sea level change. INQUA and IPCC differ markedly. Where one claims two feet is possible, the other suggests that expected “sea level rise is ‘10 cm – plus or minus 10 cm.’ ”

One of the most visible (potential) vic-tims of sea level rise – the tiny Pacific Islands nation of Tuvalu – is also considered. Tuvalu has been highlighted by media, NGOs, and politicians, as facing imminent inundation because of the developed world’s fossil-fuel use. Avery and Singer describe however, that “satellite radars found that Tuvalu’s sea levels have fallen four inches over a decade.”

They close out this section on fears about global warming by reviewing a variety of published research that questions reports of coming famine, drought, massive species extinction, extreme weather events, and increasing human mortality.

Next they consider the costs of address-ing AGW. If global warming is as Avery

and Singer contend – a 1,500-year, natural, moderate, worldwide phenomena – reason-able readers will ask how spending billions and hampering our global economy in an attempt to stop CO2 production, will aid in adapting to something we cannot change? On the other hand, if AGW proceeds with the media-presented cause – primarily human activity – they will ask if spending billions and hampering our global economy will be sufficient to stop the warming.

Any discussion of attempts to address AGW cannot ignore the centerpiece treaty

aimed at stopping climate change – the Kyoto Protocol. Designed as only a “first step” in reducing global greenhouse gas (GHG) emissions, the Kyoto Protocol required developed countries to reduce their CO2 emissions by 5.2 percent below 1990 levels by the year 2012. Developing nations were actually allowed to increase emissions under the treaty.

After looking into the origins, history, implementation, and final costs of Kyoto, Singer and Avery determined that it would not be an effective measure to reduce

43american coal council

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climate change. For example, if it were fully implemented and fully effective, it would reduce global average temperatures by less than 1 C over the next 100 years. Recognizing that fact, they suggest that Kyoto would require expenditures that far outweigh its potential benefits. They also note that the proponents of Kyoto predict serious costs if the protocol is not implemented. Singer and Avery contend, however, that those costs are predicated on worst-case scenario warming predic-tions and that they ignore the potential economic, social, and environmental ben-efits of warming. Additionally, Singer and Avery note only two Kyoto signatories – Britain and Sweden – expect to meet their reduction targets. (Recent news suggests, however, that Great Britain’s reporting scheme has left off reporting much of the emissions from their transportation sector.) They also note that other economic studies – such as the Copenhagen Consensus – have rated other environmental and social concerns – like AIDS, malaria, malnutri-tion, and the provision of clean water – as far more pressing concerns.

Since renewable energy has been pre-sented as one key means of weaning our

society from fossil fuels, Singer and Avery close out their book by taking a frank and informative look at the costs and ability of renewable energy sources to cleanly and economically meet the world’s bur-geoning demand for abundant electricity. Many people sincerely believe that renew-able energy sources and conservation measures will allow the developed and developing world to enjoy abundant and affordable energy now and well into the future. The reality is, however, in their current state, most renewables cannot provide baseload energy and they cannot compete economically without substan-tial subsidies and tax credits. The truth of the matter is we will need a diverse supply of energy from all our energy sources – renewables, fossil fuels, nuclear, hydroelectric, oil, and gas – to meet our growing demand; Avery and Singer rec-ognize that fact.

In closing, it is worthwhile to consider that some have dismissed this book out-of-hand because of an alleged tie to the fossil fuels industry. Those criticisms, however, assume what they are trying to prove – that a strict allegiance to the cause of fighting climate change is inherently correct and any

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attempts to question that allegiance must be immediately suppressed. Clearly this is an irrational view. As Singer and Avery demonstrate, there are ample, economic, rational, and scientific reasons to question proposed climate change policies. Additionally, one can reasonably assume that if it is irrational to immediately suppress dissent, then there is nothing wrong with the fossil fuel industry defending its hard-won rights to provide society with a necessary and very much in demand product.

Additionally, the attempts to label skeptical views as biased because of a tie to industry are irrational, as government- or NGO-funded research is no less likely to hold biases. The battle for budget dollars and potential for personal prestige associated with that research are no less a temptation than grants given by industry. In fact, they are potentially even more of a temptation as one realizes that if the issue of AGW is ever solved, then the need for climate change research vanishes.

Simply dismissing this book on a whim or through the applica-tion of guilt-by-association fallacies is a profoundly weak argument. Given the fact that Singer and Avery have used as the book’s founda-tion, the same science and research that is so often presented as proof of the broad consensus on AGW, there is no reasonable justification for simply dismissing the book out of hand.

Singer and Avery have produced a solid, well-researched and voluminously footnoted review of the science, policy, and concerns related to global warming. Those with a reasonable mind will take the time to honestly consider what they have written.  u

Jason Hayes is the communications director for the American Coal Council (www.clean-coal.info).

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Future Energy: How the New Oil Industry Will Change People, Politics, and Portfolios

Author Bill Paul Publisher: John Wiley & Sons, Inc. (2007) Language: English ISBN: 978-0-470-0642-0 Review by Jason Hayes, M.E.Des., Communications Director, American Coal Council

Energy supplies are tightening and prices are skyrocketing. Civil unrest, conflict, and acts of terror – often

related to the free flow of energy – are spreading around the world. Environmental concerns and our ability to produce and use energy efficiently only serve to compound the challenges. As greening markets and environmental regulation make energy development, generation, and transmission more expensive and more difficult, pressures increase. Sitting atop of it all are the fears of climate change; rising sea levels, famine, drought, pestilence, and the list goes on.

If you have turned on the news or opened a newspaper in the past several years, that opening paragraph should outline much of what you will have read or heard. If one concentrated solely on the media headlines and sound bites, they might be tempted to throw up their hands, move to the hinter-lands, and become a hermit.

There are, however, a few remaining opti-mists out there. Despite the challenges our society faces in providing affordable, abun-dant and clean energy sources to meet our meteoric growth in demand, there is still hope. Bill Paul’s Future Energy provides one starting point in the search for new, abundant and affordable energy sources (or information about those sources).

To be honest, Future Energy was a bit of a surprise to me. When I first picked it up, I expected to find another “how to” book. I expected policy and politics and instructions detailing Paul’s thoughts on “the best way” to obtain energy for our future. Again, I was surprised because while Paul does provide many ideas and suggestions on how things could be done, he clearly did not write Future Energy as an instruction manual.

Instead, it reads as more of a “who’s who” in the buildup of the next generation of energy producers.

Paul runs through a detailed list of companies that will make up the “New Oil Industry.” In fact, Appendix A of the book could be described as basic reading for anyone seriously interested in investing in future energy development. True to his journalistic roots, Paul quite thoroughly and fairly investigates most – if not all – of the emerging energy trends and provides names and Web sites for any company he deems worthy of second or third looks by investors. He gives fair reviews of these energy sources, considering their costs and likely ability to play a role in energy pro-duction. Then he moves through a mix of established and emerging players, reviews 15 categories of energy technologies, and ranks 100 companies on their ability to play a significant role our future energy.

The most interesting portion of Future Energy was Paul’s assertion that the actual 2006 price of gasoline was over $11 a gallon. I won’t steal Paul’s thunder by revealing everything that went into his cost calculations. He argues, however, that the defense-related expenses required to ensure the free-flow of oil, along with lost eco-nomic activity incurred by sending money out of the United States to the banks and governments of other oil-producing com-panies, represents a significant hidden cost to all American energy consumers.

Unfortunately, Paul does not recount how many of those banks and oil-producing companies are sending a lot of that money back to the United States in the form of wages, capital, and investments. That returning investment does serve to limit

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some of these financial impacts. Paul does have, however, a good point that developing domestic resources will do more to benefit the economy overall.

Coming from a coal perspective and knowing that coal-to-liquids (CTL) is competitive with oil at around $45 to $50 per barrel – which leads to $2 to $3 gas at the pumps – $11 gas makes the choice to develop and use our massive domestic coal resources for energy production (such as CTL) a no-brainer.

Many in the environmental movement or the more socially con-scious (so-called) will criticize Future Energy and Paul for some of his bedrock assumptions. For example, he takes as a basic fact that economic growth is a good – or necessary – thing and that we will need to continue supplying abundant and affordable energy

to meet American and worldwide energy demand. Additionally, his choice of the Chevrolet Corvette as embodying the “spirit” that should motivate the new oil industry should prove especially galling to some.

Those criticisms should, however, be balanced against the reality that the developed world is doing more with less and doing so much more efficiently than it ever has. For example, our air is cleaner than it has been in decades and we have more forested area than when Columbus first landed. We enjoy unparalleled abundance and are learning to have that abun-dance while still maintaining healthy environmental conditions. At the same time, suggestions by some environmentalists – such as Gar Smith of the Earth Island Institute who once argued that there’s “a lot of quality to be had in poverty,” and that allowing developing countries to use electricity would “destroy” their cultures – will be rejected outright by those currently enduring that poverty. Therefore, Paul’s prediction that demand for cheap, abundant, and clean energy will continue to grow in both the developed and developing world, is worth paying attention to.

Future Energy is a worthwhile foray into the notion that we can move beyond our traditional use of oil and gas. We can find new ways and new technologies to make new fuels and energy sources. This book doesn’t provide us with all the answers, but as I noted above, it wasn’t meant to. It offers up some helpful hints and thoughts on what our future energy sources could look like and then provides detailed lists of emerging technologies and the names of companies that are likely to be leading the way to make those technologies an every day reality.  u

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The American Coal Council was very pleased to recognize the hard work and dedication of five companies at the Spring Coal Forum, held March 10 to 12, 2008 in Mi-

ami, Fla., at the Doral Golf Resort and Spa.ACC Excellence Awards were presented to winners in the fol-

lowing categories:

Excellence in Public Service or Community Development

Award Winner: Williamson Free School of Mechanical Trades

“In this country, every able-bodied, healthy, young man who has learned a good mechanical trade, and is truthful, honest, frugal, temperate, and industrious, is certain to succeed in life, and to become a useful and respected member of society.”

~ Isaiah Williamson, School Founder

Williamson students are trained in the operation, maintenance, and testing of boilers, turbines, … electric generators, switch gear, … as well as the theory of nuclear, fossil fuel, hydroelectric and other systems of power generation. Given the fact that the util-ity industry currently needs many new, well-trained employees, Williamson is offering a timely and important service to the country.

Williamson distinguishes itself from other schools by ensuring that each of its students attends the school on a full scholarship that covers tuition, room, board, and textbooks. Furthermore, they offer this amazing opportunity to their students without accepting government funding.

Excellence in the Advancement of Energy Education

Award Winner: Lignite Energy Council

A North Dakota-based industry association formed to promote the use and understanding of the region’s lignite industry, the Lignite Energy Council has worked in its area to ensure that edu-cators are well prepared to teach their students about how lignite is mined and used in energy production.

Our judging committee made a special point of noting how well organized and thorough Council staff was when preparing the teach-er’s workshops, field trips, and supporting materials. By reaching out to over 2,200 local teachers, the Council’s education programs have potentially influenced the education of over 60,000 students.

Honorable Mention: Seminole Electric Cooperative

The Seminole Electric Company, Inc. (SECI) is a Florida-based electricity generation and transmission cooperative that has committed itself to providing bias-balanced information and opportunities to Florida’s educators.

SECI employees offer an eighth-grade energy education program to science teachers in the Putnam County area. This program is based on the state’s science curriculum and aims to help educators and students meet state educational requirements, as well as com-municate to the public who SECI is, how they work to provide the state with affordable and abundant energy, and what efforts they are making to ensure their plants operate in an efficient and clean manner. In the four years that SECI has offered their program, SECI has reached 3,400 students with positive messages on electric cooperatives and clean coal power options.

The ACC Excellence Awards recognize North American companies, foundations, associations and individuals across the coal industry that have played a significant role in improving their local com-

munities, who have benefited energy-based education programs and who have excelled in their efforts to develop and transmit public information on coal and the energy industry.

ExcellenceAWARDS

2007

www.williamson.edu

www.lignite.com

www.seminole-electric.com

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Rio Tinto Energy America’s Marketing and SalesGroup is located in Colorado. Please contact ourMarketing Department’s sales staff at the followingnumbers:

Jim Orchard, Vice President (303) 713-5601

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Excellence in the Development of Public Information: Print, Electronic, or Broadcast Media

Award Winner: Department of Energy – Office of Fossil Energy

The Department of Energy (DOE) Office of Fossil Energy (FE) is a very well known entity in the energy industry, providing abun-dant information, statistics, and educational materials on energy. As their awards application submission noted, the DOE has tra-ditionally done a thorough job of reaching the energy industry with their information and publications. They noticed, however, there was a lack of good information being shared with the general public, i.e., “the average taxpayer, the retiree, the homeowner, the student, and the numerous groups whose collective judgement becomes public opinion,” on what it takes to power the country.

Therefore, FE established an in-depth educational program to help educate the general public on the benefits of keeping coal in America’s energy mix and how their tax investments have been used to develop advanced technologies that benefit their everyday lives. Fossil Energy now ensures that the broader public receives infor-mation through the FE Web site, news alerts, a traveling exhibit, as well as educational and information packets on FEs clean-coal program.

Honorable Mention: Minnesota Power

Minnesota Power is a Minnesota-based utility that provides retail electricity service to over 141,000 customers and 16 municipalities with its coal-fueled and hydroelectric generating facilities.

In 2007, Minnesota Power began an emissions reduction pro-gram at its coal-fueled generation plants that would see NOx, SOx, and mercury emissions reduced by up to 90 percent. As a means of ensuring the public was aware of the work that was being done, Minnesota Power created the Tomorrow in Motion Today campaign. Through print, radio, and television ads, as well as supplementary online information, Minnesota Power ensured that their customers and the broader public had access to ample information on the emissions equipment upgrades and the util-ity’s commitment to ensuring an abundant supply of affordable and clean electricity.

The ACC is the pre-eminent voice of the American coal industry. As part of that role, we promote public awareness of organizations that have been unusually effective in educating the public on the impact and importance of the coal industry. Whether through direct public service, the creation of educational programs, or the development of public information, the ACC Excellence Awards recognize the hard work and dedication of those who are improv-ing public knowledge and perception of the coal industry. We offer our congratulations to all of our 2007 Award winners.

The ACC also would like to offer special thanks to our panel of judges: Carl Michael Smith, Ray Dykes, and Keith Drohan. We would also like to thank everyone else who took the time to submit an application; we recognize the hard work and dedica-tion that you put into your jobs and your communities. We encourage our readers to watch the ACC Web site, as we will be releasing information on the 2008 Excellence Awards in the upcoming quarter.  u

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For more information on the ACC Excellence Awards program, you can visit the Excellence Awards section on the ACC Web site (www.clean-coal.info), or please contact: Jason Hayes, communications director, The American Coal Council, Phone: 202-756-4540, Mobile: 602-769-3872, E-mail: [email protected]

www.fossil.energy.gov

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50 american coal council

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Rio Tinto Energy America’s Marketing and SalesGroup is located in Colorado. Please contact ourMarketing Department’s sales staff at the followingnumbers:

Jim Orchard, Vice President (303) 713-5601

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What’s all this talk about dark spread, reliability, hedging?At ICAP United Coal, we bring simplicity and remove uncertainties. As the world’s leading interdealer broker, we continue to set new standards in both physical and financial brokering services for the US coal markets.

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T he coal industry, like virtually all basic industries operating in the United States, confronts no

shortage of serious issues in the coming years. But no issue is more important than mine safety.

A series of highly publicized mine trag-edies in underground coal mines in the past couple of years has led the industry to con-duct a full-scale re-examination of its mine safety procedures, its safety training and the technology needed to make mines safer. These same incidents also have renewed congressional interest in mine safety.

Following fatalities in underground coal mines in West Virginia and Kentucky, Congress held comprehensive hearings and, with overwhelming bipartisan sup-port, passed the Mine Improvement and New Emergency Response (MINER) Act of 2006 in a matter of months. The U.S. coal industry actively supported passage of this wide-ranging law to improve safety conditions in underground coal mines. The MINER Act, signed by the president that June, calls for a broad range of prac-tices and procedures – better and more frequent safety training, tighter enforce-

ment by federal regulators, additional rescue crews, more breathable air supplies stored throughout the mines – together with deadlines for the installation of state-of-the-art, two-way communications gear that will allow wireless signals to penetrate earth and rock.

Most of the requirements in the MINER Act stem from a set of safety principles developed by the industry’s leadership and safety professionals.

The industry also formed the Mine Safety Technology and Training Commission, an independent group of safety experts from

The Path to Improved Mine Safety By Kraig R. Naasz, National Mining Association

What’s all this talk about dark spread, reliability, hedging?At ICAP United Coal, we bring simplicity and remove uncertainties. As the world’s leading interdealer broker, we continue to set new standards in both physical and financial brokering services for the US coal markets.

Source: Mine Safety & Health Administration (MSHA)

U.S. Coal Mining Record of Reduction

Fatal Injuries, 1990-2007

66

61

55

4745

47

39

30 29

3538

42

2730 28

23

47

33

0

10

20

30

40

50

60

70

80

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

50% Decrease

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the academic, public and private sectors, headed by Dr. Larry Grayson, then chair-man of the Mining Engineering School at the University of Missouri-Rolla. Coal industry leaders felt strongly that outside experts, studying current and prospective mine safety practices, would be ideally suited to make credible and far-reaching recommendations for improving safety conditions.

The commission’s report, which was pub-licly released in December 2006, resulted in measures now being implemented, that focus on actively managing the risks identi-fied at each mine. Under NMA’s leadership, the industry also is carrying out ongoing studies with federal agencies such as the National Institute for Occupational Safety and Health (NIOSH) and the Mine Safety and Health Administration (MSHA) to implement aspects of the MINER Act.

The cumulative impact on the industry has obviously been considerable in both time and financial resources. Compliance with the act to date has affected every under-ground coal mine in the nation and has led to more than $250 million in safety invest-ments, with further expenditures still to

come in the years ahead as new safety tech-nology becomes commercially available.

The coal industry views these actions as part of its commitment to return to the strong mine safety record the industry achieved before the tragedies of the last two years. In 2005, the U.S. coal industry recorded its safest year in history. It was the culmination of a year-over-year trend for much of the previous decade of steadily declining fatalities and serious accidents. The urgency to regain this momentum and return the industry to the path toward zero fatalities was the overwhelming motivation behind NMA’s support for the MINER Act of 2006.

That same urgency to improve mine safety is what underlies NMA’s opposition to the S-MINER Act sponsored by Rep. George Miller (D-Calif.). His bill (H.R. 2768), which narrowly passed the House by a vote of 214-199 in mid-January, con-sists of several new mandates that will only detract the industry from implementing the comprehensive provisions of the MINER Act – now barely 18 months old.

In light of the MINER Act’s ongoing implementation and the improvements

made throughout the nation’s underground mines since 2006, many mine safety aca-demics also have concluded that Miller’s bill would be a hindrance, not a help. In a letter to Rep. Miller, 12 professors of mining engineering urged the congress-man to defer any new legislation until the industry had sufficient experience under the new law to assess the need for further requirements.

“Simply put,” says Prof. Rick Honaker, chairman of the University of Kentucky department of mining engineering, “addi-tional legislation now serves no useful purpose.”

The President’s advisers echoed these sentiments in issuing a veto threat on H.R. 2768. The industry also is gratified by the support of the 199 House members who voted against Rep. Miller’s bill. We hope the Senate will heed these words of caution.

Meanwhile, the coal industry continues to assess the impact on operations of vari-ous rules recently finalized by MSHA for implementation of the MINER Act. In several notable cases, these rules certainly will raise operating costs beyond levels pro-

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jected last year. For example, the agency has issued final rules that restrict the cir-cumstances under which operators can request conferences with MSHA district managers to discuss citations. Relegating this option now to only the most serious violations will, in NMA’s view, lead to more protracted and expensive litigation.

Similarly, MSHA’s rule requiring stor-age of breathable air devices in only hardened sites in underground mines, ignores the practical utility and safety benefits of allowing devices to be stored in reinforced cross-cuts or in steel boxes accessible from each escapeway. Finally, MSHA’s rule setting requirements for rescue teams, is needlessly inflexible and overly prescriptive.

Despite the industry’s reservations with these and similar regulations, we hope these rules do not signify the onset of a more antagonistic relationship with federal regu-lators. Such an environment would not be conducive to achieving the level of safety we all believe will soon be within our grasp with better technology and training.

NMA’s leadership is determined to set the safety bar high. Coal mining will not be a sustainable industry without steadily improving mine safety, and nowhere is that better understood than in the indus-try itself.  u

Kraig Naasz is president and CEO of the National Mining Association (www.nma.org).

CCT is one of the largest rail to barge storage and blending facilities on the inland river system.

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AmerenEnergy Fuels and Services Company (AFS) provides a full range of fuel-related and business development services to the Ameren group of companies. AFS also provides assistance to some unaffiliated business, assisting with specific fuels, ash

management and emission related issues.

AFS procures over 40 million tons of coal from the Powder River and Illinois Basins for use in the Ameren generation fleet. In addition to procurement, AFS provides transportation

services related to negotiation and administration of rail, barge and truck contracts, as well as the management of over 5000 system railcars.

Management and marketing of coal river terminals on the Mississippi River is another area of expertise for AFS. AFS has the ability to provide blending and rail to water

trans-loading services for both in-house and third party users.

Combustion by-product services for beneficial use such as flowable fill projects as well as ash disposal options are additional services provided by the AFS team.

AFS provides all procurement of natural gas on both the wholesale and retail level to over 925,000 customers in the Ameren UE, Ameren Energy Generating Company, Ameren

CILCO and AmerenIP territories.

Market research is an additional function of AFS, providing senior management as well as plant operations with the necessary information required to keep on top of the

ever-changing fuel and transportation markets.

The Business Development group of AFS is also responsible for activities related to renewable energy resources and the development of “green generation projects.”

Visit our web-site at www.ameren.com.

“Simply put, additional legislation now serves no useful purpose” – Prof. Rick Honaker,

chairman of the University

of Kentucky department

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L ike the rest of the world, the United States is facing a serious energy dilemma. Fuel sources like coal are widely available and relatively inexpensive, but have been attacked as undesirable from an environ-mental perspective. Today, nearly 50 percent of the electricity generated in the U.S. comes from

coal-fueled generators.

Growing energy demand impacts the environmentTh e global energy market is enormous and growing. Coal alone represents a fi ve-billion-ton-

per-year annual market. Th e U.S. Energy Information Administration (EIA) predicts that by the year 2030, world demand for coal will nearly double from its current levels to 10.6 billion tons annually.

Two major concerns emerge as a result of increased demand for energy worldwide. First, where will this energy come from? Do we have either enough reserves in fossil fuel-based sources or

Energy Demand vs. Environmental Responsibility:The promise of cleaner coalBy Rolando Sanz-Guerrero, CoalTek, Inc.

57american coal council

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Abrasion never quits.Neither do we.

Solutions.Service.Satisfaction.

See us at Mine Expo 2008 – Booth #857

505 Sansome, Suite 1800San Francisco, CA 94111

Phone: 415-398-4510Fax: 415-398-4816

www.hlmx.com

LocomotivesRailcars

SalesLeasing

Parts

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sufficient new sources to meet this grow-ing demand? And second, how do we deal with the environmental impact of our fuel choices?

There are a number of ways to meet the requirement for cleaner fuels, including “green” technologies. None of these clean energy sources – even renewable sources like wind and solar power – can easily be dispatched on demand. And, other “dis-

patchable” technologies such as nuclear power are not readily enough available to meet the current base-load energy demand, much less the massive increase that is anticipated.

Addressing the demand responsibly

Initiatives like the National Energy Policy and Clean Coal Initiative show

that it’s imperative for the industry to commercialize processes now that will meet our steadily growing energy appetite. Currently, coal is the only domestic energy resource with sufficient reserves to meet the 127-quadrillion-Btu demand the EIA is predicting by the year 2030. The EIA estimates U.S. coal reserves at 12,361 qua-drillion Btus, enough to sustain demand for approximately the next 500 to 600

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years. Since most “clean” energy sources don’t meet the tests of affordability, avail-ability and on-demand “dispatchability,” they simply cannot meet the needs of the infrastructure, now or moving forward. Clean coal is the only technology capable of delivering on the promise of energy security and independence while remain-ing environmentally responsible.

The “clean” energy challengeCreating clean coal, however, has not

been easy. The successful development and commercialization of clean coal solutions has faced a number of technological hur-dles. The challenge has been to deliver a MACT-compliant1, sustainable clean coal solution with the physical characteristics, efficiency, and yield properties of regular coal – a product that allows coal-fueled power generators to operate existing facili-ties without expensive refitting.

In fact, coal-consuming power plants in the United States face difficult choices to keep emissions of sulfur dioxide (SO2) within EPA limits. Until recently, these choices have been limited primarily to installing expensive “scrubbers” to capture the SO2 or resorting to another difficult and expensive option: searching for low-sulfur, high-heat coal.

After years of discussion and promise of clean coal products, careful research and advancements in technology have finally begun to deliver solutions capable

of balancing environmental responsibil-ity with energy demand. State and federal government initiatives are underway to research and help bring to market cleaner, coal-based energy solutions. Several com-panies are now beginning to market clean-coal solutions in the United States and abroad.

Commercializing clean coal solutions

To move beyond a proof of concept or pilot phase of clean coal production to full commercialization, there are a number of criteria that must be satisfied:

• Demonstrated ability to consistently control Btu target levels.

• Consistent product quality.• Ability to process diverse input coals.• Proven cost economics.• Proven commercial scale.

CoalTek, Inc. is an example of a company that already offers a fully commercialized clean coal solution. The company’s pat-ented process was developed, tested and proven over eight years and employs elec-tromagnetic energy to reduce raw coal’s moisture content and allow it to burn more efficiently and cleanly.

This non-thermal technology enables coal-fueled power generators to opti-mize burn efficiency and increase overall yields, and at the same time creates a MACT-compliant coal at a relatively

high Btu density. Moisture, ash, all three forms of sulfur, chlorine, and mercury can be potentially reduced. The CoalTek process is environmentally compliant. All byproducts are captured, filtered and separated, meeting the same EPA stan-dards as agricultural water for disposal into holding ponds.

Aligning energy demand and environmental responsibility

Since other renewable technologies that meet the test of environmental friendliness can’t meet the availability and affordability requirements of the infrastructure, clean coal is really the only viable alternative today. Thanks to innovative technologies like CoalTek’s, the problem of producing affordable, MACT-compliant high-yield clean coal has been solved in a way that allows power generators to continue operating their facilities without expensive equip-ment changes. And, even more critical, the ability of these new technologies to overcome the remaining obstacle – con-sistently maintaining desired properties end-to-end to enable full commercial-ization – has finally made the alignment of energy and environmental objectives possible.  u

Rolando Sanz-Guerrero is vice president of Marketing and Sales at CoalTek, Inc. (www.coaltek.com).

P.O. Box 23049 Nashville, TN 37202-3049 615.298.8200 (P) 615.298.8213 (F) www.ingrambarge.com

2008 Coal Ad.indd 1 5/1/2008 3:11:01 PM

1 MACT refers to “maximum achievable control technology.”

Index to AdvertisersAIR-CURE Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Alliance Coal, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Alstom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Ameren Energy Fuels & Services . . . . . . . . . . . . . . . . . . . . . . 55

Barlow Jonker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

BNSF Railway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Borton LC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Cargill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Chemetron Fire Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Chevron Mining Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

COAL-GEN Conference & Exhibition . . . . . . . . . . . . . . . . . . . . 40

Coal Marketing Company . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Consol Energy Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

CSX Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

DTE Coal Services . . . . . . . . . . . . . . . . . . . . . .Inside Front Cover

E S & S Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Energy Publishing, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Ernst & Young . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Fuel Tech, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Hardsteel, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Headwaters Resources . . . . . . . . . . . . . . . . Outside Back Cover

Helm Financial Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Hill & Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

ICAP United . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Ingram Marine Group . . . . . . . . . . . . . . . . . . . . Inside Back Cover

Interlake Steamship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Jennmar Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

KCBX Terminals Company . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Kiewit Mining Group Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Marshall Miller and Associates . . . . . . . . . . . . . . . . . . . . . 50, 21

Marston . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Martin Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Material Control, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Microbeam Technologies Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 54

Midwest Generation EME, LLC . . . . . . . . . . . . . . . . . . . . . . . . 48

Nex Gen Coal Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Norwest Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Peabody Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

PICOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Pincock, Allen & Holt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Platts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

PricewaterhouseCoopers, LLP . . . . . . . . . . . . . . . . . . . . . . . . 45

Rio Tinto Energy America . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Roberts & Schaefer Company . . . . . . . . . . . . . . . . . . . . . . . . . 4

Savage Services Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 54

SCH Terminal Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Storm Technologies, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Strata Mine Services Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

TEMA Systems, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 30

The David J. Joseph Company -Rail Equipment Group . . . . . . 46

The Raring Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Thermo Scientific. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Trianco Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

TrinityRail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Wiley Consulting, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Wood Mackenzie Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

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P.O. Box 23049 Nashville, TN 37202-3049 615.298.8200 (P) 615.298.8213 (F) www.ingrambarge.com

2008 Coal Ad.indd 1 5/1/2008 3:11:01 PM

Index to Advertisers

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Pre-combustion Clean Coal Technologies for Power Generation

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Ethanol production utilizing waste heatfrom coal fueled power stations

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Only technology provider with footprint in all coal conversion methods:

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Largest manager and marketer of coal combustion products:

– Marketing nearly 7 million tons of coal fly ash annually

– Expertise in FGD systems installation and operation

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– Technologies for controlling ammonia and carbon in ash

Leading manufacturer of building products containing coal ash:

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