American Coal Issue 1 2007 by American Coal Council

2007 Membership Directory Issue 1 • 2007

Economic, Abundant/Secure and Environmentally Sound

The Future “ of our Industry”

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Published for: American Coal Council 2980 E. Northern Ave., Suite B5 Phoenix, AZ 85028 www.americancoalcouncil.org Tel: (602) 485-4737 ACC Editorial Review Board Trygve Gaalaas, Pace Global Energy Services Janet Gellici, American Coal Council Jason Hayes, American Coal Council Rick James, We Energies Vic Svec, 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 Sales Director Sean Davis | (888) 953-2190 Managing Editor Bonnie Winter Fedak | (866) 953-2181 Graphic Designer Andy Carney | (204) 953-2180 Account Executives Shannon Evans, Kari Morgan, Louise Peterson, Joelle Portis, Jennifer Shurvell © 2007 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. Disclaimer The 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 Canada Please recycle where facilities exist.

Economic, Abundant/Secure and Environmentally Sound

Contents Message from ACC President. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Message from ACC Executive Director . . . . . . . . . . . . . . . . . . . . . . . . . 5 Message from the ACC Communications Director . . . . . . . . . . . . . . . . 7 ACC Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2007 Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ACC Vision and Mission Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ACC Member Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ACC Champion & Patron Sponsors. . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Coal for a Very Long Time If We Do It Right. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 The American Energy Security Declaration of Independence. . . . . . . . 21 Renewing the Coal Mining Industry A Little History and Some Suggestions. . . . . . . . . . . . . . . . . . . . . . 26 Rails on Track for Hiring Boom. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Re-energizing the Energy Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Creative Coal Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 An Energized Approach to Education. . . . . . . . . . . . . . . . . . . . . . . . . . 50 Learning Without Grades A Research Laboratory’s Links to the Traditional University. . . . . . 55 The Importance of Education and Outreach in Research. . . . . . . . . . . 59 British Columbia Coal Mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Women’s Mining Coalition – A “Different Face” Presenting a Positive Voice for the Modern Mining Industry . . . . . . . . . . . . . . . . . . . . . 66 African-Americans in Energy and Mining . . . . . . . . . . . . . . . . . . . . . . 70 Index to Advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 2007 Membership Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Insert About the Cover: “The Future of our Industry” – Holding tools of the trade are four youngsters of American Coal Council office staff, as portrayed by photographer Rob Hoffman, HH Portrait.

american coal council

A Message from the ACC President

America’s Energy Needs Keith Drohan, ACC President & Senior Market Originator, Dominion Energy

oday’s coal industry is providing fuel, power and energy to the nation at rates that would have been unthinkable just a few decades ago. And we’re doing so more efficiently, more cleanly and more quickly than ever before. Despite these advancements, the public is demanding even more from us – more fuel, more power, more energy, more reliably, more cleanly, more securely and – above all – more affordably. We now find ourselves at a major crossroads. We’re called upon to address public demands for more, better, faster and cheaper energy. We must also, however, balance shareholder expectations for reasonable returns on investments,

american coal council

while ensuring a seamless supply of coal and energy from the mine to the end consumers. Coal suppliers, transportation companies and energy producers are continually weighing decisions regarding efficiency, productivity and environmental stewardship. We’re evaluating the pros and cons of cutting-edge technologies versus the reliability and cost assurances of tried and tested equipment. Compounding the decision process is the uncertainty of increasingly strict regulation and legislation. We’re never sure when the next round of regulation will cut allowable emissions limits, mandate the use of a new technology or impose the whim of some influential special interest group. As addressed in this edition of American Coal, all of these pressures are coming to bear at a time when the industry needs a “human renewal” to support its operational and technological advances. The coal industry is currently facing the impending attrition of as much as half of our workforce within the next decade. Each sector of the coal chain – including coal suppliers, railroads, barges, ports and terminals, utilities and energy producers – is experiencing labor and skills shortfalls that will add to the many other challenges confronting the industry. Addressing these challenges will involve a concerted and committed effort on the part of each of our industry sectors. Meeting our nation’s future energy needs

will require that we work as a cohesive unit, ensuring that our respective businesses are investing in and maintaining necessary infrastructure, employing qualified personnel and utilizing effective operational and environmental management practices. We invite you to join us at the 2007 Spring Coal Forum, May 21-23 in Memphis, Tenn., as we explore these and other issues. At this meeting, we will begin to develop a forward-looking strategic framework and establish efficient pathways for meeting our nation’s future coal-based energy needs. We’ll be exploring how representatives from various sectors of the coal industry can best work to achieve the common objective of sustaining coal’s future role. Challenging times are ahead. We’re tasked with making decisions today that will power our world for decades to come. We can choose to listen to coal’s detractors and sit on the sidelines while others dictate the use of more expensive, less reliable energy sources. Or we can proactively work to more efficiently, effectively and cleanly use our economic, reliable and environmentally sound domestic coal resources. I hope you’ll be able to join us at the 2007 Spring Coal Forum in Memphis and contribute to our efforts to achieve these objectives. As always, we welcome your thoughts and comments.◆

A Message from the ACC Executive Director

ACC Continues to Evolve Janet Gellici, American Coal Council

have an old Eagles album – yes, album – that has the following phrase etched in to the vinyl: “He who hesitates is lunch.”An important thing to keep in mind if you’re ever traveling in cannibal country, but also a wonderful guiding philosophy if you’re tasked with charting the direction of an association or business. During the 16 years I’ve had the pleasure of serving as executive director of the American Coal Council (ACC), I’ve often kept this phrase in mind as an admonishment about complacency – a warning against thinking that good enough is good enough. Throughout the years, we’ve attempted to adapt the association to meet the changing demands of the coal industry by offering new and different services. This magazine is just one example of that. Our leadership has also worked to organizationally adapt to reflect the

american coal council

changing marketplace. The addition of coal-consumer and energy-trader members, the expansion from an export to a domestic market focus and the transition from a regional to a national association are some examples that come to mind. The next step in the ACC’s evolution is pending with the recent announcement that we’ll be setting up a Washington, D.C. area office. Earlier this year, the ACC Board of Directors approved the establishment of a D.C.-based office for the association. I’ll be relocating to the D.C. area mid-year 2007 in an effort to better advance the association’s advocacy and liaison objectives. Other members of the ACC staff – including Jason Hayes (Communications Director), Teresa Coffer (Conference Director) and Michele Rubin (Executive Assistant)– will remain in Phoenix. Environmental management remains at the forefront of issues critical to ACC members. CO2 management, emissions control, clean coal technologies, energy policy and related capital and operational concerns are expected to be a central focus of legislative and regulatory initiatives over the next few years. Proximity to public policy decision-makers, industry associations and ACC member companies with a D.C. presence will enhance the ACC’s ability to monitor and report on these critical issues. A D.C. presence will enhance our ability to keep our members apprised of policy developments and allow us to better coordinate our advocacy efforts with national associations and organizations in the D.C. area. Our core objectives will remain the same:

• To support the business, marketing and management capabilities of American coal suppliers, coal consumers, coal transporters, coal traders and coal support service companies. • To advocate for coal as an economic, abundant and environmentally sound fuel source. • To support the activities and objectives of associations and organizations involved in advancing coal supply, consumption, transportation and trading. Lobbying for any particular legislative initiative will not be on the ACC’s agenda. The broad-based nature of our membership base has historically precluded us from lobbying. Other D.C.based associations serving the coal supply, consumption and transportation industries are already doing a yeoman’s job lobbying for the legislative interests of their respective members. There’s no need to duplicate their fine efforts. We hope, instead, to support them through a stronger partnership in advocacy for coal as an economic, reliable and environmentally sound fuel source. I look forward to working with my colleagues in D.C. and to having the opportunity to better serve the advocacy needs of our member companies. As always, your comments and suggestions are welcomed. Thank you for your continued support of the ever-evolving ACC. ◆

A Message from the ACC Communications Director

The Future of Our Industry Jason Hayes, American Coal Council

ome might be tempted to be pessimistic when considering the future of coal. With climate change issues, a host of other new environmental regulations coming down the pipe, and continued pressure from those who would see coal removed from our energy mix entirely, we have a lot on our plate. Some might be pessimistic, but it’s clear that the industry itself and those who have prepared articles for this edition of American Coal are very positive about the future. They describe an industry that is taking on all challenges (and challengers) and still moving forward. This issue focuses on the theme of our industry’s future and the fact that the coal industry is facing the attrition of as much as half of its workforce over the next decade. By itself, that would be enough of a disruption to sideline many industries. The coal industry, however, stands ready to address the issue by bringing on thousands of new hires from a variety of sources, as well as holding on to the people who are currently working in the industry, and the knowledge they possess. While some groups would have us believe that coal is an outdated fuel whose

american coal council

best days have long gone by, a strong voice from a possibly unexpected sector rejects their arguments. In his article, Dr. Mark Jaccard, an environmental science professor at Simon Fraser University in British Columbia, demonstrates that coal and environmental health can be like two peas in a pod (OK, that’s my term, not his). He goes on to argue that the future of this industry is as strong as ever. Gov. Joe Manchin, III of West Virginia, expands on the notion that coal has a solid future in American energy by advocating for an energy declaration of independence. His input provides a road map for using domestic energy resources, such as coal, to end our reliance on foreign sources of energy. The next group of articles, by Patrick Hiatte of BNSF, Mary Miller of the Edison Electric Institute, and me, focus on the human aspects of the industry’s future. They describe the plans and ongoing activities in the railroad and transportation sector, the utility sector, and the mining sector to bring in many new faces and make use of the knowledge and experience of mature employees before they retire. Looking at the need for a strong education and training-based foundation for our prospective employee base, we move to the experiences of our 2005 ACC Excellence awards program winner and honorable mention recipient. Gary Swan of the National Energy Foundation and Robert Gentry of TXU describe how their education programs are helping to create a new generation of energy-literate students and teachers across the nation. Moving from grade and high school levels, MaryBeth McAllister of the University of Kentucky’s Center for Applied Energy Research (CAER), Debra Pflughoeft-Hasset and Tera Buckley of the University of North Dakota’s Energy & Environmental Research Center (EERC) describe

their work to produce solid research and well-trained university graduates who are ready to enter the technical world of the mining industry. Looking outside our borders, we welcome the Honourable Richard Neufeld, Minister of Energy, Mines and Petroleum Resources for the province of British Columbia, Canada to describe how their provincial government is working to make that province a sought out source of coal for both the domestic and world markets. The minister also describes provincial efforts to expand opportunities for training and minority participation in the province’s resource industries. The minister’s article provides a natural segue into our closing section, where we look at the coal industry’s efforts to diversify its employee base. It is a simple fact that the mining industry in the United States is primarily made up of middleaged, white males. Terah Burdette of the Women’s Mining Coalition and Wilton Cedeno, with the American Association of Blacks in Energy (AABE) provide their views on how the industry can better incorporate the valuable knowledge, insight, and input of women and minorities. The industry has a plethora of issues and challenges that it is facing. We’re dealing with an aging workforce and the need to catch the interest of a new generation of miners, a growing list of environmental regulations, increasing demand for energy, growing export and import markets, and transportation challenges – to pick just a few. The authors in this edition, however, demonstrate clearly that there are no limitations to the creativity and will of our people to come up with effective solutions to those challenges. With people like them on our team, it shouldn’t surprise anyone that the coal industry has a long and prosperous future ahead of it. ◆

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Membership benefits include educational programming and technical seminars, advocacy support, broad-based networking, Web site,

Membership Coupon Join the 160 companies that recognize the importance of belonging to an Association that serves as the pre-eminent business voice of the American coal industry and advocates for coal as an economic, abundant/secure and environmentally sound fuel source. The American Coal Council (ACC) is an alliance of coal, utility, trading, transportation, 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.

electronic and printed membership directory inclusion, newsletter and members-only electronic updates, database resources, policy input, referrals and discounts on events and industry publications.

Yes

please send me membership information!

Name_________________________________________________________ Title___________________________________________________________ Company______________________________________________________ Address_______________________________________________________ City________________________State______________ Zip______________ Phone_______________________FAX_______________________________ E-mail_________________________________________________________ Mail or FAX to: American Coal Council 2980 E. Northern Ave., Suite B5 • Phoenix, AZ 85028 • (602) 485-4847 ~ FAX

2007 Event Dates Mercury & Multi-Emissions Conference March 13-15, 2007 – Pittsburgh, PA Spring Coal Forum & Excellence Awards/ 25th Anniversary Celebration May 21-23, 2007 – Memphis, TN PRB Coal Use Seminar July 23-25, 2007 – St. Louis, MO Coal Market Strategies October 8-10, 2007 – Tucson, AZ Coal Trading Conference December 3-4, 2007 – New York, NY

american coal council

For additional information visit www.americancoalcouncil.org or call 602-485-4737

American Coal Council

American Coal Council 2007 Board of Directors Vision Statement The American Coal Council (ACC) strives to serve as the pre-eminent business voice of the American coal industry.

Mission Statement The 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,

Coal Suppliers Andy Cox Vice President Sales Rhino Energy LLC VP Coal Suppliers Bill Davison Vice President Sales & Marketing Foundation Energy Matt Levar General Manager Sales & Marketing Rio Tinto Energy America Coal Consumers Keith Drohan Senior Market Originator Dominion Energy ACC President 2007 Ken Jenkins VP Fuel Management Services Louis-Dreyfus Energy Services Bud Walker Regional Vice President, Fuels Midwest Generation VP Coal Consumers Energy Traders Steve Miller President Coaltrade, LLC VP Energy Traders Dan Vaughn Director Coal Services United Power, Inc.

Transportation Bob Brautovich AVP Coal Marketing-West BNSF Jim Garrett Plant Manager AEP Cook Coal Terminal Danny Smith Senior Vice President Energy & Properties Norfolk Southern Corporation VP Transportation Coal Support Services Mike Durham, Ph.D. President ADA Environmental Solutions, Inc. VP Coal Support Services Kirk Weber Vice President & General Manager Norwest Corporation John Ward VP Marketing & Government AffairsHeadwaters Incorporated Immediate Past President At Large Tom Vorholt Vice President Dry Cargo Sales Ingram Barge Company ACC President-elect 2008/Treasurer/HR & Compensation Committee Chair

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

Thank You Editorial Review Board • • • • •

Trygve Gaalaas, Pace Global Energy Services Janet Gellici, American Coal Council Jason Hayes, American Coal Council Rick James, We Energies Vic Svec, Peabody Energy

management capabilities. 10

american coal council

American Coal Council Member Companies ACC Members - Alpha Listing

Glencore Ltd.

Powerspan

ADA Environmental Solutions, Inc.

Global Energy Decisions

PPL Energy Plus

AEP Memco LLP

Golder Associates Inc.

Pratt & Whitney

AEP/Cook Coal Terminal

Grain Processing Corporation

PricewaterhouseCoopers LLP

Alliance Coal, LLC

Great River Energy

Progress Energy

Alliant Energy

Hazen Research, Inc.

Progress Fuels Corporation

Alpha Natural Resources, LLC

Headwaters Incorporated

ALSTOM Power, Performance Projects

Hellerworx, Inc.

Public Service Company of New Mexico

Ameren Energy Fuels & Services Co.

Helm Financial Corporation

American Coal Ash Association

Hill & Associates, Inc.

American Commercial Lines LLC

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

American Electric Power

Railroad Financial Corporation

Rhino Energy LLC

Ingram Barge Company

Roberts & Schaefer Company

Interlake Steamship Company

Salt River Project

Intermountain Power Agency

Sampling Associates International

James River Coal Company

Savage Services

James River Coal Sales, Inc.

SCANA Corp.

John T. Boyd Company

SCH Terminal Co., Inc.

Kansas City Southern Railway

Separation Technologies LLC

KCBX Terminals Company

SGS Minerals Services

Kiewit Mining Group, Inc.

SolArc, Inc.

Kinder Morgan Bulk Terminals, Inc.

Southern Company

Koch Carbon LLC

SSM Coal Americas, LLC

Lafarge North America Inc.

Standard Laboratories, Inc.

Coal Marketing Company (USA), Inc.

Lakeland Electric

Taggart Global LLC

CoalTek, Inc.

Lower Colorado River Authority

TECO Coal Corp.

Coal Utilization Research Center (CURC)

Mammoth Coal Sales Company, Inc.

TECO Transport

Commonwealth Coal Services, Inc.

Marston & Marston, Inc.

The C. Reiss Coal Company

CONSOL Energy, Inc.

Martin Engineering

The Coal Association of Canada

Constellation Energy

McGuireWoods LLP

The Raring Corporation

Crounse Corporation

MidAmerican Energy Company

Thunder Bay Terminals Ltd.

CSX Transportation

Midwest Energy Resources

Trinity Industries

Dakota, Minnesota & Eastern Railroad Corp.

Midwest Generation EME, LLC

Troutman Sanders LLP

David J. Joseph Company

Mineral Resource Technologies, A CEMEX Co.

TTI Railroad, Inc.

Dayton Power & Light Company

Minnesota Power

Diversified Energy Corporation

Mitsui Rail Capital, LLC

Dominion Energy

Murray Energy Corporation

Drummond Company, Inc.

Natural Resource Partners L.P.

DTE Coal Services

Newmont Mining Corporation

DTE Rail Services

NexGen Coal Services Ltd.

Duke Power Company

Norfolk Southern Corporation

Dynegy Coal Trading & Transportation LLC

Norwest Corporation

Arizona Public Service Basin Electric Power Cooperative Benetech, Inc. BHP Billiton Black & Veatch Boral Material Technologies BP Energy Company BNSF Railway Cargill, Incorporated Center for Energy & Economic Development (CEED)

E.ON U.S. LLC East Side River Transportation Entergy Ernst & Young Evergreen Energy Evolution Markets LLC Fine Coal Inc. FirstEnergy Generation Corp. Foundation Energy Sales, Inc. FreightCar America Fuel Tech, Inc. Gainesville Regional Utilities GE Rail Services american coal council

NRG Energy, Inc. Omaha Public Power District Ontario Power Generation Orlando Utilities Commission (OUC) Pace Global Energy Services

TXU Energy Union Pacific Railroad Company United Power - Division of ICAP University of Kentucky - Center for Applied Energy Res. University of North Dakota, Energy & Environmental Research Center Upper Kanawha Valley Development Corporation URS Corporation Usibelli Coal Mine, Inc. We Energies Westar Energy Western Region Ash Group (WRAG)

Paducah & Louisville Railway, Inc.

Western Research Institute

Peabody Energy

Westmoreland Coal Sales Co.

Pincock, Allen & Holt

WPS Resource Corporation

Pittsburg & Midway Coal Mining

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

PNC Bank N.A. Portland General Electrric

Marc Rademacher Vice President Business Development West 4665 Paris St., B-200 Denver, CO 80239-3117 www.us.sgs.com/minerals Phone: (303) 373-4772

Patron Sponsors Michael Durham, Ph.D. President 8100 SouthPark Way, Unit B Littleton, CO 80120 www.adaes.com Phone: (303) 734-1727

Christopher Blazek Vice President Marketing 1851 Albright Rd. Montgomery, IL 60538 www.benetechusa.com Phone: (630) 844-1300 x214

Tucson Electric Power Company

PacifiCorp

Platts

Matt Paul President, Coal Services 414 S. Main St., Ste. 200 Ann Arbor, MI 48104 www.dtecs.com Phone: (734) 887-2053

Resource Technologies Corporation Rio Tinto Energy America

Argus Media, Inc.

Champion Sponsors

Rentech

ICF Consulting

Arch Coal, Inc.

Thank You ACC Champion & Patron Sponsors 2007!

Xcel Energy

Stevan Bobb Group Vice President-Coal Marketing PO Box 961051 Ft. Worth, TX 76161-0051 www.bnsf.com Phone: (817) 867-6253

John Ward VP Marketing & Government Affairs 10653 S. Riverfront Parkway, Ste. 300 South Jordan, UT 84095 www.headwaters.com Phone: (801) 984-9400

Andrew Cox Vice President Sales 3120 Wall Street, Suite 310 Lexington, KY 40513 Phone: 859-519-3610 www.rhinoenergyllc.com

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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 15 bituminous coal mining complexes in six states and reports proven and probable coal reserves of 4.3 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.

CONSOL Energy Inc.

Consol Plaza, 1800 Washington Road, Pittsburgh, PA 15241 412/831-4000 • www.consolenergy.com

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Very If We Do It Right

By Dr. Mark Jaccard, Simon Fraser University

hat does the future hold for coal? Because it is more carbon-intensive than natural gas and oil, some people see it as Public Enemy Number 1 in the struggle to reduce the risk of climate change. Coal combustion in plants that generate electricity, industrial factories, and homes in some places produces carbon dioxide (CO2), the dominant human-generated greenhouse gas.

But other people point out that because coal is the most plentiful fossil fuel, is widely distributed around the world in rich and poor countries, and is the cheapest source for producing electricity, it is the world’s best hope for extending badly needed modern energy services to the underserved poor of the world. It is no surprise that rapidly developing countries like India and China are today constructing coal-fueled generating plants at breakneck speed. It is these two contrasting aspects of coal’s character that make the future murky. In bookstores today you can find books that enthusiastically explain the phasing-out and demise of coal alongside books that extol the virtues of coal and prophesy its domination of the global energy system for decades and even centuries to come. So which future will it be? The coal industry can play a large role in determining the answer to this question. To do so, however, the industry would have to further challenge itself in the area of environmental policy leadership. In my new book – “Sustainable Fossil Fuels: The Unusual Suspect in the Quest for Clean and Enduring Energy” – I assess the relative advantages of nuclear power, renewable sources of energy, fossil fuels and greater energy efficiency in helping shift the global energy system to one that would emit far less greenhouse gases by the end of the century. To my surprise, as someone who has devoted most of his career to energy efficiency and renewables, I found that fossil fuels and especially coal have a very good chance of continuing their domination of the global energy system. Here is why. Politicians and even environmentalists are gradually recognizing that the technological capability exists to produce energy from coal without releasing CO2 into the atmosphere. That technology currently imposes sizable energy and financial costs on coal-fueled generation. We are, however, beginning to understand what these technologies will cost and how they will be publicly received. With research and more operational experience, the costs to employ these technologies will be reduced. The approach that has attracted the most attention involves converting coal into electricity, hydrogen, or hot water – none of which emit CO2 at the point american coal council

of end-use – and capturing the carbon during conversion. One option with this approach is to produce electricity from coal with near-zero CO2 emissions. Modern, low-emission coal-fueled plants use various processes to capture particulates and sulfur dioxide and to reduce emissions of nitrogen oxides. There are also technological options to isolate and capture CO2. Another option that has garnered considerable interest is to gasify coal with steam in order to produce a synthesis gas comprised mostly of hydrogen and carbon monoxide. A water-gas shift reaction increases the hydrogen content and converts the carbon monoxide to CO2. Other byproducts, such as sulfur, are extracted from the gas and then a solvent is applied to separate the CO2 from the hydrogen. The hydrogen can be combusted on site to generate electricity, or purified and piped to factories, homes and vehicles for combustion or conversion in a fuel cell to produce electricity and heat. The CO2 can be transported by pipeline to a suitable site for permanent underground storage. Both the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) have recently completed studies on the cost of generating electricity and producing hydrogen from fossil fuels with CCS, and have reached similar conclusions1. In the case of electricity, the IEA and IPCC reports contend that CCS would add $0.02 to $0.03 per kilowatt hour (kwh) to the cost of generation at an advanced plant, with this cost likely to fall to $0.01 to $0.02 per kwh by 2030. In the case of hydrogen production, CCS would add about $2 to $4 per gigajoule to the cost of producing hydrogen from coal. They also contend that if all new and refurbished coal-based power plants used CCS technologies over the next five decades, CO2 emissions from coalfueled power generation would fall to a fraction of today’s levels, even while output increased to meet growing needs. Over the same 50-year period, the cost of electricity for residential customers would increase by 25 percent to 50 percent. While some might see this as a substantial increase, it would cause residential electricity prices in a coal-dominated system to rise by only 1 percent a year over the coming decades. Getting the world to

considerably lower emissions is not cheap, but it is not that expensive either. How does near-zero emission-clean coal stack up against the other options for a low greenhouse gas future? While cost is a key consideration, it is not the only thing that matters when major public choices are involved. Concerns about extreme events such as a nuclear accident, geopolitical risks like the use of oil as a political weapon, and non-emission environmental impacts all play a role. Nuclear power is potentially inexhaustible, but it must overcome public safety fears about power plant operation, transport and storage of radioactive waste, terrorist attacks on facilities, and nuclear weapons proliferation. To overturn the role of fossil fuels in the global energy system, nuclear power would have to be significantly cheaper than its competitors for providing CO2-free energy. This is unlikely once the full costs of decommissioning, safe waste disposal, and insurance liability are accounted for. Thus, while the nuclear industry is likely to expand substantially in some jurisdictions, it will face major challenges in others. Renewables can be exploited indefinitely. But because of their low energy density, variable output, and often-inconvenient location, they require additional investments in energy concentration, storage and transmission – and these can have significant environmental and human effects. The dams and reservoirs of large hydropower projects flood valuable valley bottoms and impede migratory fish and animals. Wind farms can conflict with scenic, wildlife and other values, and biomass plantations compete for fertile land with agriculture and forestry. As the renewables’ contributions grow, their associated energy concentration and storage costs will become a greater issue. Even when helped by strong policies, it takes time for innovations that use renewable energy to reach the commercialization and expanded production necessary to lower costs. Starting from their negligible market share today, and in a growing global energy system, it will be an enormous and expensive endeavor to replace fossil fuels, such as coal, with a renewables-dominated system in the course of one century. The evidence suggests, therefore, that coal will be competitive with other energy 15

Sustainable Fossil Fuels The Unusual Suspects in the Quest for Clean and Enduring Energy A review by Jason Hayes, American Coal Council

alternatives even in a carbon-constrained world. But coal’s prospects will, in part, depend on the policies that are adopted. Large subsidies to renewables and nuclear power, and prohibitions against the use of fossil fuels, will obviously force a decline in the use of coal. If, instead, policies are directed at the environmental objective of reducing CO2 emissions, then coal, oil and gas stand a good chance of remaining dominant in the global energy system for most of this century and perhaps beyond. ◆ Mark Jaccard is professor of resource and environmental management at Simon Fraser University in Vancouver, Canada. This article is based on his book, “Sustainable Fossil Fuels The Unusual Suspect in the Quest for Clean and Enduring Energy” (Cambridge University Press, 2006). www.cambridge.org 1Industry experts have raised questions about the methodologies and cost findings in these reports. They cite the uncertain nature of possible climate-related regulation, the fact that sequestration standards have not been determined, and the difficulties in planning and budget making, as well as related liability issues, that arise from these uncertainties.

n his recent book, “Sustainable Fossil Fuels,” Mark Jaccard offers some refreshing arguments. He notes that not only will fossil fuels continue to provide us with abundant energy well into the future, they could do so sustainably. Furthermore, he argues that policy makers would do better to consider renewable energy sources as a very long-term – as in centuries – goal. In the meantime, he argues that we should rely on advanced technologies to allow the sustainable use of our abundant coal and fossil fuels. Coming from a background of environmental science and energy, I was intrigued by the notion that fossil fuels might still be considered an “unusual suspect in the quest for clean and enduring energy.” The ACC has referred to coal as an economic, abundant/secure, and environmentally sound fuel source for many years, so the fact that fossil fuels can efficiently and cleanly meet our energy needs well into the future will come as no surprise to the readers of this magazine. What will be of interest is the avenue through which this admission is now coming. Jaccard is a professor of environmental studies at Simon Fraser University in Canada – an unlikely advocate for coal. He notes that his support for the use of fossil fuel came after a great deal of research led to some unexpected findings. Jaccard admits that for most of his career he simply assumed that “sustainable” energy meant shifting from fossil fuels to renewables. As a result of his research, however, he learned that the issue is much larger than the often simplistic attacks leveled at fossil fuels – “carbon bad … renewable good.” He now argues that a sustainable energy system involves environmental, as well as social and economic aspects of energy use. Jaccard acknowledges that while renewables play an important role, they cannot supply our baseload energy needs. He is also unconvinced that other energy forms could overcome the barriers they would face in replacing fossil fuels. The radical changes that phasing fossil fuels out of the current energy system would entail simply would not be economically, socially, or environmentally sustainable. Jaccard suggests that supplies of fossil fuels are abundant and concerns of running out are unfounded. Improving technology and rising prices are making previously unconventional energy sources – such as western Canadian oil-sands deposits – economical. The challenge, in Jaccard’s opinion, is not obtaining the fossil fuels; it’s how to deal with the emissions that are associated with their use. He advocates for improving efficiencies and employing clean coal technologies, such as integrated gasification combined cycle (IGCC) and CO2 capture and sequestration. While implementing these changes over a short time period will come at substantial cost, Jaccard argues that when compared with the costs of transitioning to renewables and phasing out carbon-based fuels, tech-fixes and updates to the current system are actually quite affordable. Jaccard does advance one highly debatable assumption in arguing that the cost of these new technologies is not likely to be born without strong government intervention in the form of regulations and legislation. Forcing carbon reductions in this fashion could be every bit as problematic as mandating the phasing out of carbon-based fuels as government intervention in markets tends to have the outcome of choosing winners. This can be highly inefficient and have a multitude of unintended economic, social, and environmental consequences. Voluntary and market-based measures have traditionally been highly effective in encouraging the adoption of new technologies when they are economically and socially feasible. Despite this area of concern, “Sustainable Fossil Fuels” is a valuable entry into the public policy forum on energy. Given his background and training, I saw Jaccard as “the unusual suspect” in his support of fossil fuels as a sustainable energy source. It is, however, refreshing to see that research and commentary from a traditionally anti-coal sector is now recognizing coal’s abundance, affordability, and increasingly clean nature. ◆ american coal council

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For the past 25 years, the American Coal Council has been dedicated to advancing the development and utilization of coal as an economic, abundant and environmentally sound fuel source. BNSF both applauds and supports that effort. Over the past 25 years, BNSF has moved nearly 5 billion tons of coal. And as our nationâ&#x20AC;&#x2122;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 three years. In 2006, BNSF delivered 287.2 million tons, up 10.8 percent from the previous annual record of 259.2 million tons set in 2005. To accommodate this growth, in 2006 and 2007, BNSF has committed more than $1.24 billion for coal capacity expansion. BNSF is proud to be a partner in the energy supply chain for one of Americaâ&#x20AC;&#x2122;s most abundant and important natural resources.

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The American Energy Security Declaration of Independence Governor Joe Manchin, III, State of West Virginia, Chairman, Southern States Energy Board

merica today faces four major oil related risks: we are dependent on foreign sources of oil that originate from some of the world’s most unstable nations; oil supplies worldwide are not growing fast enough to keep up with demand; our country faces increasing competition for existing supplies from large, emerging nations, such as China and India; and we are vulnerable to potential domestic supply disruptions from weather-related events and potential future acts of political terrorism. Instead of being held hostage to the calamity of these events, America needs an energy security declaration of independence! What could be more important to the United States today than its energy security? International crises abound, with Persian Gulf oil at the center of the controversies. Earlier this summer, the cost of oil exceeded $70 a barrel and American consumers paid the price, amid calls to political leaders for relief. Over 67 percent of the 22 million barrels of oil that the United States imports each day fuels our transportation sector, impacting the automobiles, trucks and airplanes that power our nation’s economic engine, american coal council

as well as the consumers throughout the country who commute. Even our military purchases a preponderance of its fuel for our fighter jets from some of the most unstable sources in the Middle East. Many of our political leaders are perplexed as to this energy security problem, which really is a liquid transportation fuels issue. Why don’t we eliminate oil as an international weapon and make our own liquid transportation fuels from indigenous energy resources that are readily available at home? On July 17, 2006, the Southern States Energy Board (SSEB), a regional organization comprised of southern governors and state legislators from 16 states and two territories, released the “American Energy Security Study: Building a Bridge to Energy Independence and a Sustainable Energy Future.” This nationwide initiative, passed unanimously by the board, develops a comprehensive plan for the United States to establish energy security and independence through the production of alternative oil and liquid transportation fuels from our vast domestic resources, including coal, biomass, and oil shale. The plan also emphasizes the need for improved domestic enhanced oil recovery programs using carbon dioxide capture and storage, increased vehicle fuel efficiency, and sensible energy conservation. Embarking on a national mission to achieve energy security and move toward liquid fuels independence, will reduce risk and lower oil prices and oil price volatility. It will also facilitate an industrial boom, create millions of jobs, foster new technology, enhance economic growth, help to eliminate the country’s trade and budget deficits, ensure affordable energy for citizens and strategic fuels for the military, and establish a reliable domestic energy base on which to rebuild globally competitive U.S. industries.

The American Energy Security (AES) Study shows that the United States can eliminate dependence on oil imports entirely by 2030. It establishes a bold plan to replace approximately 5 percent of imported oil each year for 20 years, beginning in 2010 (Figure 1). Assuming aggressive implementation beginning in 2007, under the SSEB American Energy Security initiatives, domestic liquid fuels production and transportation efficiency savings begin gradually after 2010 and accelerate to produce most of the nation’s liquid fuels requirements by 2030 (Figure 2). The United States’ alternative resources of coal, biomass, and oil shale are the largest in the world, rivaling conventional world oil resources. This tremendous resource base serves as the foundation of our plan. Numerous low and near-zero emissions alternative liquid fuel plants will need to be brought online each year to manufacture clean fuels from the United States’ vast domestic resource endowment. Substantial improvements in transportation energy efficiency also will be necessary. Clearly, an enormous effort will be required from industry, the financial community, government, and the American people. To establish U.S. energy security and independence by 2030, all feasible supply and demand options must be aggressively pursued. There is no single answer: • Transportation energy efficiency improvements are important but, by themselves, can contribute only a small portion of the required solution. • Renewable biomass fuels are a critical part of the portfolio of required initiatives, but can produce less than one-fourth of the required liquid fuels. 21

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Figure 1: Reduction in U.S. Oil Imports Resulting From the AES Initiatives Source: Southern States Energy Board and Management Information Services, Inc., 2006

• Coal-to-liquids, oil shale, enhanced oil, and coal bed methane recovery will all contribute substantially, and these technologies must be aggressively deployed. All of the options presented here are technologically feasible, rely on domestic U.S. resources, and are capable of attaining the goals established over the next two decades. The resource assessments, technology assessments, costs, and forecasts were developed by respected experts in their fields. Figure 2 presents a visual portrayal of how the United States’ most abundant liquid fuel resources can be responsibly harvested to supplement U.S. conventional oil output, thereby reducing and ultimately eliminating the projected oil import gap. Clean production technologies, aggressive development programs in coal-to-liquids (CTL), various biomass-to-liquid fuels processes, oil shale extraction, and CO2 enhanced oil recovery (EOR), all will play a critical role. Voluntary transportation efficiency and conservation (TE&C) programs that reduce consumption also will be necessary. Assuming initiation in 2007, the programs begin to displace a small portion of United States’ oil imports after 2010. As the2007programs develop over the two decades,2009 they begin to replace a larger 2011 oil imports every year: portion of U.S.

• By 2030, they replace all of U.S. oil imports. It is important to note that time is of the essence. Implementation of the American Energy Security initiatives must begin no later than 2007, and delay is not an option. Our study finds that even with aggressive implementation of all the initiatives, it will take at least a decade to begin significantly reducing U.S. oil imports, and well over two decades to achieve national energy security and independence. Any delay will leave our country highly vulnerable to shortages, supply disruptions, high and volatile prices, and the catastrophic possibility that world oil production may soon peak. Strong leadership will be required to achieve the goals stated in the American Energy Security Study. Political, business, and community leaders will be called upon to inspire the time proven energy, ingenuity, and resolve of Americans

in crisis – elevating national will. Our study assumes that leadership at all levels will create a new national mission, bringing Americans together behind the cause of oil security and independence, much as was done during World War II to achieve a crucial goal of similarly enormous proportions. Our hope is that many will rise up to this leadership challenge. The stakes could not be greater. I am sending a letter to the nation’s governors, enlisting them in this fight, and urging them to join me in signing a new American Declaration of Energy Independence. From April 16 to 18, 2007, I will be hosting an “American Energy Security Summit” in Washington, D.C. to emphasize the need for the Congress to take this issue much more seriously. American partnerships will need to be strengthened between industry, government, and our communities. Industry sectors inclined to compete against each other will need to find common ground to work together in a cooperative spirit. The American people and local communities must be inspired to offer their patriotic support for new industries and businesses that manufacture the domestic alternative liquid fuels on which the United States’ future depends. Though the challenges ahead are great, there will be bountiful benefits and opportunities created for all if we join together as a country to overcome foreign oil dependency and assert this declaration of our energy independence! ◆ Joe Manchin, III is Governor of West Virginia and the Chairman, Southern States Energy Board (www.sseb.org).

2013 2015 • By 2015, the AES initiatives replace 2017 about 16 percent of U.S. oil imports. 2019 • By 2020, they replace about 43 percent 2021 of U.S. oil imports. • By 2025, they replace nearly 2023 three-quarters of U.S. oil imports. 2025

2027 2029

Figure 2: The Path to U.S. Energy Security and Independence Source: Southern States Energy Board and Management Information Services, Inc., 2006 american coal council

The Outlook on Energy: A Brief Look at the 2006 NERC Long-Term Reliability Assessment By Jason Hayes, American Coal Council

he 2006 North American Electric Reliability Corporation (NERC, www. nerc.com) Long-Term Reliability Assessment, which focuses on the reliability of the North American energy system, indicates that demand for energy generation and transmission resources will continue to increase at a rapid pace over the next several decades. It also indicates that a variety of pressing challenges will need to be addressed to ensure the electricity system remains reliable to 2015 by focusing on four main areas. First, given the growth of energy demand, increasingly volatile fuel prices, and the mothballing of many generation assets, capacity margins across North America are declining. As those margins tighten, unplanned outages, extreme weather events, or periods of high demand could cause supply issues. The Assessment suggests that returning mothballed assets to production, signing power purchase agreements, and constructing transmission to currently isolated assets will provide stability in this area. Secondly, development of new transmission assets is being restricted primarily by obstacles to siting and certification of new lines. A combined lack of investment, however, and a tendency of developers to rely on short-term planning horizons is also hampering the creation of assets that will meet the needs of the regional transmission system, as opposed to simply fixing localized problems. The primary means of addressing this issue is encouraging all levels of government to work cooperatively with transmission owners and other stakeholders to remove barriers to siting and certification, as well as other regulatory barriers that are holding up new developments. Additionally, the Assessment recommends that long-term, regional planning is essential to help define suitable sites for transmission infrastructure. Thirdly, fuel supply reliability is an essential aspect of maintaining systemwide stability and requires the cooperation and attention of producers, consumers, and transporters. While the supply disruptions experienced in the coal industry in 2005 are now being addressed, similar issues still exist in the gas industry. One primary area of potential disruption exists when high electricity generation demands collide with demands from other uses (such as home heating). The key methods of addressing this challenge are described as firming up supply and delivery contracts, as well as enhanced planning and communication measures to ensure adequate supplies (or substitute supplies) in times of high demand. Lastly, the Assessment noted that the issue of an aging workforce will also present a challenge to overall system reliability. As noted in other articles in this magazine, the challenge to the entire energy industry will be to replace retiring employees with a well-trained workforce. This can be accomplished through the use of creative training and mentoring, retention programs, and innovative hiring methods. Another likely influence on overall system reliability was briefly discussed in the Assessment. Greenhouse Gas (GHG) emissions were touched on, but left largely unconsidered by the Assessment due to the fact that no confirmed direction has yet been established on federal and state/provincial GHG regulations. The extent to which carbon reduction regulations are imposed and the transition periods allowed before compliance is mandated will govern the level of impacts on overall system reliability. The NERC 2006 Long-Term Reliability Assessment shows that there are a multitude of challenges facing the energy industry. All of them will require a substantial level of commitment and work before the North American system can be considered solidly reliable for the long-term. ◆

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Renewing the Coal Mining Industry: A Little History and Some Suggestions By Jason Hayes, American Coal Council

“W

hat’s this Dad?” “It’s a gyratory crusher.” “Oh!! Me like gyty cwusher!! What’s it do Dad?” “It breaks big rocks up into little rocks. You drop the big rocks in the top and they get all crunched up and then come out smaller.” “Oh. What’s this Dad?” “It’s a continuous miner.” “Oh!!! Me like tinus miner!! What’s it do Dad?” “Well those sharp teeth on the drum spin around and tear chunks of coal out of a coal seam underground. Then the coal goes

up that belt and is taken out of the mine.” “Oh!!” And so my two-year-old son – the fellow pushing the cement mixer on the cover of this magazine – and I spent the better part of 30 minutes one night as I researched this article and he flipped through the latest edition of an industry magazine. Every page or two, he would perk up, point to a picture and query, “What’s this Dad?” I would answer, and we would go through the cycle again. He’s not ready to take over as the CEO of BHP Billiton or Peabody just yet, but I figure that if he gets interested early on,

“Congratulations to the ACC on your 25th Anniversary!”

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he’ll be a prime pick for mining companies in the upcoming years. I’m being a bit tongue-in-cheek, but when looked at in a broader sense, this is actually what the coal mining industry needs to be doing today – catching and holding the interest of potential young employees. We need new people. We’re facing increasing demand for coal, an aging workforce, impending attrition from retiring baby boomers, and increased competition for workers from other industries that need people with very similar skill sets. With society moving forward and demanding even more from coal, we need

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Mining Demographics (1975) 35

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to be able to ensure our product remains an economic, abundant, secure, and environmentally sound energy resource. Where have we come from? If you took a look at the people coming out of a mine or the corporate offices of a coal producer, you would typically see males in their late 40s to early 50s. Bureau of Labor Statistics (BLS) figures indicated that the average age in the mining population was 45.9 years at the end of 2004. They further indicated that within the next five to seven years, fully one-third to one-half of the American mining industry will retire and need to be replaced (Figure 1). The current situation stands in stark contrast to the situation faced in the 1970s and ‘80s. Many will remember, during the Middle East oil embargoes and gas lines, that there was a strong push to increase domestic energy production. That push resulted in a rush of new coal mining jobs being created. Rapid increases in hiring saw overall numbers of miners expand by approximately 60 percent. At that time, the demographics of the mining population were essentially flipped, with the majority of miners in the younger age categories (Figure 2). As the embargoes ended and oil prices dropped to below the $30/bbl range in the mid-80s, concerns over oil shortages

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faded into the background. As prices for energy fell, coal was also impacted. Demand decreased and prices dropped. At the same time, improvements in technology and the mechanization of mining led to decreases in production costs and rapid increases in production capabilities. With decreasing demand, increasing technology-based production capabilities, and decreasing costs, most mining companies were forced to cut back and jobs throughout the industry became scarce. Low coal prices and slow growth in coal demand generally continued through the ‘90s, reinforced by relatively cheap natural gas and a boom in construction of new gas-fired generation facilities throughout North America. When demand within a local mine did call for more miners, many of the workers laid off in the ‘80s and ‘90s were able to be brought back and fill the gaps in production needs. Since that time, however, that pool of potential recruits has been re-hired, retired, or has moved on to other options. As industry experts have noted, the extended lull in hiring essentially means the industry has lost a generation of miners.

increase in worldwide coal demand saw coal prices spike to well over $100 per ton for met coals and over $65 per ton for some thermal coals. With the Chinese and Indian markets suddenly buying up massive quantities of coal on the world market, producers were pushed to increase production. The markets have balanced out since. However, the need for new workers – accentuated by the 2004 demand spikes – has not moved off the radar screens of producers. As a recent work by Bruce Watzman from the National Minin g Association has shown, the sudden rush on production only highlighted the human aspects in the challenge of ramping up production. In response to rising prices and increased demand, exploration is once again underway. Mines that, until recently, were considered uneconomical are being re-opened, and operating mines are being reassessed to determine how they might produce and ship more coal. Each of these new production and exploration pressures equates to the need for more people.

Where are we now? This “lost generation” was brought to the forefront in 2004 when a sudden

Mining Demographics (2004) 40

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Unlike the miners that were hired in decades past, however, new hires need to operate and efficiently produce coal in technologically advanced, safetyoriented environments. Miners might once have been able to show up at the mine and learn – on the job – from the experienced miners. New employees now need to arrive at the mine site well versed in a multitude of safety regulations and be able to efficiently operate complex, multi-million GRE-0641 NextGenAd BW 8/4/06in 1:26 dollar computers and equipment a high-production environment.

But it is not only the actual production end that needs machine operators and laborers, companies also need the professionals and engineers that can manage the scientific, legal, and liability issues associated with exploration, environmental surveys, and designing mining plans (among other necessary activities). Both the production and professional aspects of mining require substantial education and training before the PM Page 1is hired; finding employees employee with the necessary skills and motivation

Energy Generation For The Next Generation.

At Great River Energy, we generate electricity for our customer-owners from two North Dakota coal-based power plants. And we’re doing so in resourceful and innovative ways. Adding coal dryers. Installing modern emission control systems. We’re also recycling more than 400,000 tons of fly ash each year into concrete, ceramic tile and other building materials. Every one of these measures helps make coal an even more viable source of energy. And we’re continually looking for more. Why? Because it’s not enough just to think about meeting the needs of today’s electricity users. We need to think about the next generation’s needs as well.

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to learn new skills is compounding the already noted issue of an aging workforce. Amidst all these changes, the 20year lull and lost generation of miners has also caused a disintegration of the very programs that the industry needs to train these new machine operators, laborers, technicians, engineers, and managers. In fact, Watzman’s testimony to Congress indicated that since 1985, 12 university mining departments across the United States had either closed or were scheduled to close. Many schools do still exist and are actively responding to the needs of the industry (the articles by the University of Kentucky and University of North Dakota in this edition are examples of this fact). It is unlikely, however, that they will be able to supply the growing number of graduates needed over the next decade. Even worse, the competitive nature of funding in academic departments makes it difficult for universities to justify maintaining these programs, when two decades of experience suggest that interest in their offerings is waning. So the situation could get worse before it gets better. Moving forward: Where are we going? Where should we go? There are several possible methods that the industry can employ to address the impending labor shortage. They involve focusing on maintaining or extending the current employee base, capitalizing on the experience of mature employees before they retire, encouraging increased training and education opportunities for potential employees, and promoting the many positive aspects of a career in mining. Policies aimed at retaining mature workers or capitalizing on their experience would allow the industry to effectively bank, or hold on to the wisdom they have developed throughout their careers. Keeping these workers over a longer period of time would also encourage a multi-generational workforce, thereby allowing for increased interactions and on-the-job training or mentoring of younger workers. Some possible options could include: • Altering hiring practices to include mature workers. This may attract workers who had previously left the industry, or who have developed useful technical, management, or supervisory skills in other industries. american coal council

• Creating alternative working arrangements for mature workers. This could include changing duties or considering promotions to supervisory or training positions. • Preserving job-related experience before mature workers retire. This could include creating training films, databases, etc. that allow workers to demonstrate or store important techniques and/or information prior to their leaving the company. • Encouraging continuing education, or altering some training opportunities to target the needs of mature workers. Allowing these workers to update their skills or become familiar with computers could allow for less physical job assignments; supervisory training could allow them to apply their work-related knowledge to managing others in similar positions. Some policy discussions have recently focused on extending the retirement age, or recognizing the current ability of the more mature workers to handle their work responsibilities for longer periods of time. For example, changing International Civil Aviation Organization rules have recently moved the mandatory retirement age for commercial pilots from 60 to 65. The stated reasons for this change included expanding demand for air travel, the need for more experienced pilots, and improved health conditions and abilities of mature pilots. The mindset behind this type of policy might be just as easily applied in some areas of the mining industry. Policies aimed at mature workers would also complement the industry’s efforts to bring on new employees. Given the breadth of the challenge, and the fact that it has developed over an extended period of time, the solution will also need to be focused on long-term answers. Programs, such as those described by the National Energy Foundation and TXU in this magazine, can introduce grade school, junior and senior high school kids to the importance of mining, coal, and energy generation in our society. Other programs can provide education opportunities for teachers, who can then go on to share bias-balanced information about coal and energy generation with their students. University programs such as those offered at the University of Kentucky’s Center for Applied Energy Research (CAER) and University of North Dakota’s Energy & Environmental Research Center (EERC) will help to provide industry american coal council

with highly skilled, technical and professional graduates, as well as research that can be applied in operational settings. Industry, academia, and government can partner to produce and provide training and degree programs that meet the specific and expected needs of industry, as well as ensure necessary math and science study options are available to those not yet in college. These partnerships could also seek out especially effective education and training programs, with a goal of replicating them in other parts of the country, where demand for the skills they instill is

lacking. As is always the case, the provision of these programs will require strong commitments of industry and government funding and support (such as scholarships) to ensure they are viable and effective. Lastly, the industry can work with education providers, associations, and interest groups to provide information, in-kind help, and/or funding to help overcome negative perceptions of coal and mining. The educational and employment lull experienced in mining over the past 20 years has given the industry a black eye in the PR

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department. Many now see a mining career as something you do when all other avenues have been exhausted – one of those if-your-family-worked-in-mining you’redoomed-to-follow type of situations. They view employment in the industry as unstable, dirty, and unsafe – or something for the uneducated and unskilled. Since there has not been a concerted, industry-wide effort to counter these misperceptions for many years, they have often gone unchallenged and now need to be addressed. The industry needs to remove the stereotypes and show that mining is stable, high-paying work for a diverse group of people who possess a high level of skill and education. Over the past several decades, the coal mining industry has experienced both profound growth and serious setbacks. A multi-year lull in demand and resulting human resources cutbacks has produced an aging industry that will soon need to replace a sizable portion of its employee population. By respecting its past and embracing its future the coal industry has the opportunity to address the expected attrition and need for new employees. Partnering with academia and government to provide employees in all age categories with effective training and education, preserving accumulated knowledge and skills of present employees, initiating innovative hiring techniques, and improving the public’s perception of the industry, will ensure it remains viable and continues to provide one of North America’s most economic, abundant, secure, and environmentally sound fuel resources well into the future. Industry executives should also keep their eyes open, because I might just be sending a few bright, young engineers your way in about 12 to 18 years. ◆

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Rails on Track for Hiring Boom By Patrick Hiatte, BNSF Railway Company

BNSF Railway Photos by Ken Fitzgerald

ike other industries, railroads are looking to create a hiring boom in the years ahead. It’s anticipated that in the next five years, 10 million people will leave employment gaps across the nation as they retire. American railroads expect to hire more than 80,000 people over the next few years, driven not only by retirement, but also by growth in the industry; demand for freight transportation is expected to jump 67 percent in the next 20 years. “Today, railroads are going through a hiring boom as more and more freight moves by train,” says Edward R. Hamberger, president and CEO of the Association of American Railroads. Regardless of hiring, railroads still find it necessary to periodically furlough employees in areas due to changes in business volumes or operations. Employees impacted by furloughs generally are provided an opportunity to transfer to other areas where there is still a demand for their services. BNSF Railway hired more than 34

4,800 new employees in 2006 and plans to hire almost 4,000 in 2007. One of the biggest challenges to increased hiring, BNSF’s people say, is raising the visibility of the railroad industry among job seekers. “We recognize that we need to educate the community about how we have become a technologically advanced business,” says Barbara Cook, BNSF’s assistant vice president, human resources. For example, the fact that railroads operate some of the largest computer and private telecommunications systems in the world appeals to many younger job applicants, she says. A New Kind of Railroader Today’s railroaders, while carrying on the same strong work ethic as their predecessors, operate in an industry that places safety consciousness first and foremost among job skills. This mindset has been evolutionary, and is now a requirement for employment. In the next wave of hiring, new employees — at all levels — will need to bring

more than just a focus on safety. They will also need to bring a team focus and an innovative thinking to the workplace. “We’re looking for candidates who have demonstrated they can be part of a self-directed work team and who are willing to make decisions that are, first and foremost, safe, and second, productive,” says Jeanne Michalski, BNSF’s vice president, human resources and medical. “We want to find people who act with a sense of urgency, who don’t want to work under the old model of ‘Tell me what to do,’ but who want to be part of a highperforming team with a common purpose to make sure the customer is better served.” To find these motivated and productive people, railroads are exploring a variety of non-traditional sources of applicants. For example, commercials for BNSF have been shown in movie theaters in cities in which the railroad has the greatest need. When it comes to entrylevel hiring, career fairs help grow the candidate pool and referrals are also encouraged. american coal council

BNSF Railway Photos by Ken Fitzgerald

With supervisory talent also in great demand, BNSF established the Experienced First-Line Supervisor (EFLS) program, which seeks to pull supervisors from other industries, such as aerospace, manufacturing, trucking, and the armed services. Rails and the Military: A Good Fit Railroads are actively recruiting men and women who are transitioning out of the military. The nation’s four largest railroads all made the list of “Top 50 Military-Friendly Employers” as determined by GI Jobs magazine in late 2006. “BNSF is a military-friendly employer, and we are seeking applicants with military experience because we value their skills and unique experiences. The military has high standards in everything they do,” says Connie McLendon, BNSF’s manager of military staffing. “Also, we believe that if you served your country, you shouldn’t have to stand in line for a job when you get home.” Veterans share the military’s strong american coal council

work ethic, discipline, and “can-do” attitude, McLendon says, adding they are highly skilled, typically coming out of the armed services certified in a trade, and having extensive hands-on and leadership experience. In 2006 alone, about 1,000 veterans were hired by BNSF. McLendon, who served in the U.S. Navy, says there are many parallels between veterans and railroaders. “The work situations are very similar,” she says. “They are often outdoors, in a very physical environment and are always on the go.” Work style is similar, as well. Soldiers are trained to be mission-focused, to pay attention to detail and strive for excellence. Leaders are taught to be problem-solvers, teachers, and innovative thinkers. Safety orientation and safety consciousness are also strong bonds. “One of the things that appeals to veterans is that railroading is very structured, with rules and regulations,” McLendon says. “They like the stability and that railroads have a long history.

They also are attracted to the high-tech features of today’s railroads.” As the veterans are sought-after candidates for many types of work and industries, BNSF has to distinguish itself. “We truly are a military-friendly company,” says McLendon. “BNSF recognizes the sacrifice made by our National Guard and Reserve employees, and we offer enhanced and extended benefits to those called to duty since Sept. 11, 2001.” Since 9/11, more than 500 BNSF employees have been called up, and about 175 are currently serving in active duty. The national committee for Employer Support of the Guard and Reserve (ESGR) honored BNSF with the 2006 Secretary of Defense Employer Support Freedom award. BNSF joined an elite group of 15 companies, selected from more than 5,000 nominations, honored for their exceptional support of the National Guard and Reserves. “The veterans I talk to are very excited about the opportunities at BNSF,” says 35

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McLendon. “They know we have largescale hiring under way, and the fact that we support America appeals to them.” Training is Key No matter how a new-hire comes into the railroad, training is a priority, and facilities such as the National Academy of Railroad Sciences (NARS) are helping train the next generation of railroaders. At NARS, most of the education happens outside the classrooms, in working laboratories that match real-world conditions. Conductors and switchmen learn and practice skills in an outdoor train yard with various types of operating locomotives and freight cars. Mechanical employees train in workshops, including a freight car lab, locomotive lab, and locomotive clinical lab. Each lab is fully equipped to provide hands-on experience with the mechanical and electrical components of cars and engines. Maintenance and engineering crews work on an open-air track lab that is outfitted with rails and ties, as well as an american coal council

operating locomotive crane. Also, signal operators train on the actual signals, electronic switches, and computer apparatus they will install and service in the field. Using simulators, trainees learn critical job skills in a risk-free environment. Reality-based training programs give the opportunity to see, learn, and model safe and correct work methods, without the consequence of dangerous error. As they learn and make mistakes, they receive feedback that allows them to rectify and modify their actions. Using teaching methods that range from classrooms to simulators, to real locomotives, NARS students learn basic and advanced skills in the major railroad crafts including locomotive engineer, conductor/yard crew, maintenance and engineering, mechanical, signal systems, and telecommunications. The coursework is intense, and the workload is difficult, but the program is structured so students can learn everything they need in as little time as possible.

The trainee will be joining an industry with both a proud past and a bright future. “Riding on almost 180 years of history, the railroad industry is forwardlooking,” Hamberger says. “We’re a big part of America, hauling more than 42 percent of U.S. intercity freight on a 142,000-mile, nationwide network. We offer excellent careers for highly qualified people who will help us continue to keep America’s railroads the strongest in the world in the 21st century.” ◆ Patrick Hiatte is general director corporate communications at BNSF Railway Company (www.bnsf.com). To review career opportunities with BNSF Railway, go to www.bnsf.com and click on the Careers link. For information on the National Academy of Railroad Sciences, go to http://www.railroadtraining.com/.

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the Energy Sector By Mary Miller, Edison Electric Institute

he energy utility industry powers our nation’s economy and relies upon a skilled workforce to meet that objective. Our industry is facing a confluence of events – baby boomer retirements, shortage of craft workers, increased energy demand – that challenges our ability to meet future workforce needs. According to the U.S. Bureau of Labor Statistics, the demand for entry-level line workers, power plant operators, pipe fitters, and other positions that require technical knowledge is expected to grow by 9 percent annually. By 2010, the electric industry alone will need to add 10,000 new skilled workers annually as baby boomers begin retiring in record numbers. Recognizing the imperative need to respond directly to this looming challenge – and to ensure the continued, uninterrupted delivery of reliable, safe and affordable energy – the energy industry’s leaders responded vigorously. In March 2006, under the leadership of Paul Bowers, president of Southern Company Generation, a unique collaboration was launched. Members of the American Gas Association (AGA), the Edison Electric Institute (EEI), and the Nuclear Energy Institute (NEI) formed the Center for american coal council

Energy Workforce Development, or CEWD. The initial focus at CEWD has been on four job categories where utilities face the greatest hiring challenge in the coming years – maintenance and repair workers, electric power line installers and repairers, first-line supervisors, and managers and power plant operators. In 2007, the focus will also include engineers. CEWD embraces two primary objectives. First, to identify and deploy leading practices in model programs including: high schools, apprenticeships, and colleges; and second, to improve the understanding and attractiveness of energy utility careers. The International Brotherhood of Electrical Workers (IBEW) has been a strong partner in this initiative, as well as a number of educational institutions. More recently, the National Rural Electric Cooperative Association (NRECA) joined in this effort, and over 30 utilities have joined the center since its inception in March. A cornerstone of the center’s efforts has been the development of “Get Into Energy” (www.getintoenergy. com), a Web site that highlights energy utility careers, relevant training programs and links to company recruiting sites.

Get Into Energy describes, in a compelling manner, the opportunities available, as well as the skills necessary for successful careers. After completing a quick career assessment quiz that provides some general direction, a user can then search specifics on a particular career. Using the spatial technology of Google Earth, a user can search geographically relevant training programs and job locations. Interviews with actual workers convey the real-life experiences and importance of energy utility careers. For example, restoring power to communities ravaged by Katrina makes a compelling statement about our industry’s commitment to our customers and the communities we serve. The center’s Web site (www.cewd. org) houses a national clearinghouse of model workforce development programs. If you are interested in high school programs, the clearinghouse details the structure of career academies, a template for initiating one in your community, and strategies for funding. As the clearinghouse is completed, model community college and apprenticeship programs will be described. In October 2006, the center sponsored its first annual summit. 43

Nearly 200 attendees representing utilities, labor, and educational institutions participated in a two-day session that highlighted best practice models for a variety of programs. EEI President Tom Kuhn and Penny Manuel, vice president, Southern Company, were the keynote speakers. There was also an opportunity for the participants from specific regions to meet and begin to form solutions that met their specific regional needs. CEWD staff will be conducting regional meetings to advance these plans throughout 2007. A major 2007 initiative for CEWD will be a branding campaign to underscore the importance and attractiveness of energy utility careers. To further that initiative, the center will develop promotional and informational materials that can be customized by individual members. CEWD will also be sponsoring a national survey to assess workforce needs in electric and natural gas utilities. By combining this data with information collected by NEI and NRECA, the industry will develop

the first picture of utility workforce needs compiled through company input. Americaâ&#x20AC;&#x2122;s electric and gas utilities are acutely aware of the workforce challenges that lay ahead, and they are deeply committed to taking the steps necessary to get the job done. CEWD is just starting out, but we are confident that it will help lay the

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Creative Coal Education By Gary Swan, National Energy Foundation

Lignite, anthracite, sub-bituminous, and just bituminous, Are the four kinds of coal. You will find these four kinds of coal many places so, Let’s go find them right now.

ight-year-old Marinda and fiveyear-old Nathan, the daughter and son of the author of this article, are teaching classroom teachers from all over Utah at the National Energy Foundation’s annual Wasatch Front Out of the Rock workshop. But Marinda and Nathan are not teaching about the four kinds of coal with a textbook. They’re teaching through song: Lignite’s in North Dakota and Texas, anthracite’s in P.A. Sub-bituminous and bituminous are found across the U.S.A. Moments later, Marinda, Nathan and their siblings complete their musical routine and the teachers are separated into groups of five. It’s time for the coalto-electricity chant, to be accompanied by each teacher’s own creative movement.

Thirteen-year-old Jenessa confidently steps up in front of the 50 teachers in attendance. She takes a deep breath and begins:

The miners mine the coal from the ground. The miners mine the coal from the ground. Then: They load it into a railroad car. They load it into a railroad car. Finally: Chugga, chugga, choo-choo, to the power plant. Chugga, chugga, choo-choo, to the power plant.

Jenessa accompanies each chant with a creative physical enactment of what’s happening. The teachers all smile when her final demonstration stanza, the part about “going to the power plant,” is completed with a pantomimed plant springing out of the soil. The teachers get it. Each group is given three minutes to come up with their own team’s creative movement to accompany their assigned stanza. There are 10

stanzas, from the mining of coal all the way to the flipping on of the light switch. There are 10 groups of teachers. Perfect. Each group is positioned in a big circle around the oversized classroom. They’re positioned in order, so they can work as a single body to demonstrate how coal is used to generate electricity. Coal is mined and transported, steam spins turbines and turbines turn generators. Mom cooks on the range, dad surfs on the Internet, the family enjoys a night of television, and the light is turned on. The teachers all laugh at and with each other because everyone has to let their hair down just a bit with this activity. But everyone gets the point: Where would we be without our coal-fueled electricity? The National Energy Foundation (NEF) is a 501 (c) (3) non-profit foundation with the mission of cultivating and promoting an energy literate society. NEF receives its funding by partnering with organizations such as the Utah Mining Association, the sponsor of the Out of the Rock workshop. NEF partners and collaborates with government agencies, mining companies and associations, electric and natural gas utilities, oil companies, american coal council

educational institutions, energy service companies, and other non-profit organizations, including environmental groups – all in the pursuit of improving energy literacy. A nationally recognized leader in both energy and minerals education, NEF pursues its mission in a variety of ways. For over 30 years, NEF has conducted teacher-training workshops for K-12 classroom teachers, as well as fairs, career days and competitions for students. Over those same 30 years, NEF has created a plethora of instructional posters, teachers’ guides, and other resources, including original music, to use in that training. NEF also works with sponsors to distribute instructional materials to teachers in targeted geographic regions. NEF’s teacher training efforts currently include programs in Florida, Pennsylvania, Ohio, North Carolina, Michigan, Idaho, Nevada, and Utah. Student events are held in some of those same areas, and one student competition is presently being conducted in the greater Chicago area, with another being promoted nationwide. NEF materials are used all over the country, particularly the colorful posters, which are extremely popular with teachers. Recently, the foundation completed a comprehensive revision and redesign of its coal poster, with support from various coal companies, government agencies, the American Coal Foundation, and the American Coal Council. NEF has refocused its programs and materials to address current needs communicated by its partners and sponsors, including those in the coal and electric utility industries. The first major product of this transition has been the announcement of the new Think! Energy national program. Think! Energy means getting people to think about energy, talk about energy, and do something now about our energy for the future. The program seeks to bring greater balance to the discussion of energy by encouraging a better understanding of the supply side of energy, including coal. Every year, NEF will produce a new Think! Energy instructional poster for national distribution. The Think! Energy 2007 poster will focus on the great workforce needs of energy- and miningrelated companies, helping teachers and american coal council

In the meantime, NEF is continuing to promote and implement the popular Out of the Rock brand of minerals education programs and materials. Out of the Rock workshops are sponsored in Utah and Idaho, while several other state mining association and company-sponsored programs use the Out of the Rock instructional materials as the curricula focus for their workshops and other activities. One of NEF’s exciting new focus areas is the connection of K-12 education to workforce development needs, as demonstrated by a new partnership with the Western Energy Training Center (WETC). WETC, located just outside Price, Utah, is a U.S. Department of Labor funded center with the critical mission of developing a future workforce for the energy industries. ◆

students to identify and understand the attractive career alternatives available in these industries. NEF is also developing a new Think! Energy national Web site that will eventually include everything from interactive, virtual science experiments to flash-animated music. An abundance of downloadable resources will be included, and separate sections are being designed for teachers, students, and parents.

Gary Swan is the vice president of development at the National Energy Foundation (www.nef1.org). The NEF was awarded the American Coal Council’s 2005 Excellence Award for Excellence in the Advancement of Energy Education for their excellent work in advancing energ y education in North America. For more information on the ACC’s Excellence Awards program, please visit www.clean-coal.info. For information about the National Energy Foundation and their efforts to help develop an energy literate society, please visit www.nef1.org.

An Energized Approach to Education By Robert Gentry, TXU Power

XU Corp., one of the nation’s largest energy companies, has for many years maintained an education outreach program with the goal of promoting an understanding and appreciation of our natural resources. We also attempt to educate students on the role of those resources in the production of electricity and in environmental stewardship. Education outreach has been an essential part of TXU’s philosophy since the first lignite-fueled power plant began operation in 1971. Our Environmental Research Program acts as the program’s centerpiece. This unique educational and research partnership with Texas universities was created to study the little-known

environmental effects of mining lignite coal and its use in generating electricity. TXU built a research center at its Big Brown mining and generating facility near Fairfield. The facility includes living quarters for students conducting research and a fully equipped laboratory. Two very successful education programs sponsored by TXU are the University of Texas-Arlington (UTA) Environmental Education Summer Institute’s (EESI) Energy and the Environment program, and the Texas Mining and Reclamation Association’s (TMRA) Resources and the Environment program. The basic concept behind the two programs is to expose teachers to the relationship between energy, coal production and the environment, through a classroom/field scenario. Program information is presented in an unbiased climate by representatives of the various stakeholder groups, including regulatory agencies, industry, and environmental entities. Since 1995, EESI has provided a way for elementary through high school science teachers to understand the

inextricable link between our energy needs and the environment by focusing specifically on the environmental impacts associated with energy development. The graduate-level course represents a partnership between TXU and UTA, with TXU sponsoring the course, as well as providing tuition, books, fees, and materials. An essential component of the course is its innovative use of Big Brown generating plant, mine, and adjacent lake as a living laboratory. The program provides educators with three hours of graduate credit, practical methods to teach what they have learned when they return to the classroom and, for many of the attendees, a stipend to develop outdoor classrooms at their schools. Participants’ fieldwork is not limited to the mine and power plant; they also visit water-treatment facilities, disposal sites, forests, and fish hatcheries. Additionally, speakers from other venues are brought in to present varying viewpoints and to stimulate discussion on environmental topics. Teachers also receive professional development credits, including credit american coal council

toward the Council for Environmental Education’s Project Wild certification. The workshop’s highlight is a five-day stay at the Big Brown Conference Center where teachers tour the power plant, active lignite mine, and reclaimed areas. Participants travel into the pit and collect lignite coal samples, board an operating dragline and cross-pit spreader, and climb down into soil pits with soil scientists to discuss what soils look like before and after mining. Participants improve their understanding through personal involvement and owning the information. One unique aspect of the workshop is the interaction between mine and plant employees, who join teachers for breakfast and lunch to discuss their job responsibilities and answer questions about the mining and power plant operations. The workshop concludes with a mock public hearing in which teachers assume roles of mining experts, regulators, business owners, landowners, environmentalists and scientists. Using what they have learned during the week, teachers present information, respond to questions and assume roles of support and opposition. This workshop began in 1995, with an average of 15 teachers attending the workshops annually. During the past 10 years, more than 200 teachers from

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approximately 40 Texas school districts have participated in the workshops. In June 2006, the UTA Institute was held at the Big Brown Conference Center. Eleven teachers from school districts in the Dallas/Fort Worth area participated in the workshop. Those teachers went on, and continue, to reach an estimated 1,650 students each year with the knowledge they gained at the institute. Since 1995, the UTA workshops have given teachers the potential to pass this essential knowledge on to more than 119,000 students. The success of the UTA Environmental Education Summer Institute is measured in a number of ways, including statistical pre- and post-tests to evaluate attitudes, participant evaluations, written

program, aided by the Texas A&M University Extension Service and mining personnel. (TMRA represents more than 135 companies and support industries involved in various Texas mining operations.) TXU plays an integral role through TMRA funding and by providing personnel, facilities, lodging and meals for the workshop. While the TMRA workshop is similar in format to the UTA Summer Institute, it focuses specifically on mining and the environment. Representatives of regulatory agencies, industry and environmental entities provide information to teachers in an unbiased climate. An estimated 25 teachers attend each workshop. Activities follow the development of a hypothetical mine from exploration to

remarks, and final products. Evaluations indicate significant changes in three areas: 1) the teachers’ understanding of the mining industry’s environmental impact; 2) their understanding of the industry’s impact on the quality of life of those living near a mine or generation station and; 3) the teachers’ overall knowledge of the industry. TMRA environmental workshops began in 1991 with two workshops at the Big Brown Conference Center. The fiveday workshop is open to elementary and secondary teachers (grades 1-12). TMRA’s director of education coordinates the

final reclamation. Curriculum includes units comprised of a student story, teacher outline, and classroom and hands-on activities. Topics include soils, surface and ground water, geophysical logs, mapping, surveying, erosion, sedimentation, coal, mining, and reclamation. By touring reclaimed land and attending question and answer sessions, teachers develop a strong appreciation for the mining industry’s environmental commitment. As in the UTA workshop, a key component is the interaction, information exchange and question and answer sessions between teachers and 51

mine and power plant personnel. The workshop concludes with a mock public hearing, which exposes teachers to the regulatory permitting process. The curriculum has been indexed to the Texas Essential Knowledge and Skills (TEKS) program. Teachers attending the five-day workshop receive 40 hours of professional development credit, 40 hours of Texas Environmental Education Advisory Committee credit, 12 hours of gifted and talented credit and 3.5 credits toward requirements for classification as a “highly qualified” teacher. In addition, teachers can receive three hours of graduate credit from Texas A&M University. During the past 16 years, more than 600 teachers from school districts throughout Texas have participated in the workshops. The three 2006 TMRA educational workshops, with 64 teachers from 35 different school districts attending, will reach an estimated 10,000 students each year; this means approximately 592,400 students have benefited from these programs since 1991. The TMRA education workshops measure success through pre- and post-tests and training evaluations. These evaluations indicate the workshops have a very positive impact on the teachers’ perceptions of lignite-coal mining and the industry’s environmental commitment. Three workshops are scheduled at the Big Brown Conference Center in 2007, confirming TXU’s continued and significant commitment to education. Teachers and school districts interested in taking part in these programs should contact Robert Gentry with TXU at 903-389-1565. ◆ Robert Gentry is education outreach coordinator for TXU at TXU Corp. (www.txu.com). TXU Corp. was awarded honorable mention in the Excellence in the Advancement of Energy Education category of the American Coal Council’s 2005 Excellence awards for their excellent work in advancing energy education in North America. For more information on the ACC’s Excellence Awards program, please visit www.clean-coal.info.

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 unafliated business, assisting with specic 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 eet. 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 benecial use such as owable ll 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.

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When we have the best talent, our clients get the best talent. So we make sure that Ernst & Young is a great place to work. A fact which has not escaped FORTUNE® magazine, which named us one of the“100 Best Companies To Work For” for 2006. That makes this the eighth year in a row that we have received this recognition. So when you’re considering professional services firms, consider one that has been named to FORTUNE’s 2006 list. Because, after all, the best company to work for just may be the best company to work with. ey.com Ernst & Young provides quality assurance, tax, transaction, and risk management services to companies in the energy industry. We have deep industry experience, serving three-quarters of the largest electric utilities and all of the top coal producers in the nation.

Learning Without Grades: A research laboratory’s links to the traditional university By Marybeth McAlister, Center for Applied Energy Research, University of Kentucky

nlike most buildings at the University of Kentucky, you will never hear a bell ring, signaling the start or end of a class at the Center for Applied Energy Research (CAER). That doesn’t mean there aren’t students here. The mission of CAER mirrors the University of Kentucky’s historic land grant mission of instruction – public service and research. In this respect, CAER shares and contributes to the university’s fundamental goals of scholarship, leadership, and stewardship. The center is primarily involved in energy research with most of our funding and time devoted to this endeavor. CAER’s principal research emphasis is on the resources of the state, including coal, coal bed methane, oil shale, and biomass. Outside of its primary thrust, CAER contributes to the university’s mission of instruction, impacting stuamerican coal council

dents at the undergraduate, graduate, and post-graduate levels. CAER has supported an average of 75 students each year since it’s inception in 1977. CAER brings to its research a multidisciplinary focus on finding novel solutions and cutting-edge technologies that are suited to today’s complex problems, few of which are bounded by traditional, single-discipline approaches. Some of our educational outreach efforts are described below. Undergraduate Co-ops and Student Workers CAER employs University of Kentucky undergraduates on an informal basis and, in addition, participates in the College of Engineering’s Co-op program, where students perform research in their fields prior to graduation. This is designed to take place on alternating semesters

for a total of three terms. Departments include: civil, chemical/materials, mechanical, biomedical, and mining engineering. We also provide work for chemistry, physics and geology majors from University of Kentucky’s College of Arts & Sciences. Fuel Processing Technology Course There is only one fuel science course offered at University of Kentucky. It is taught every other spring semester by CAER researchers. The course covers energy and fuel-related issues through topical/thematic lectures and assignments. The interaction between fuel, environment and economics are covered for a range of technical options. Energy sources like coal, oil, natural gas, renewables and biomaterials are explored in terms of their nature, processing and applications. 55

other experiential education at the University of Burgundy and University of Kentucky campuses. In addition to their studies, the participants also get a chance to live abroad and immerse themselves in the language and culture of another nation. The students conduct research toward completion of a bachelor’s degree in materials engineering, which is awarded upon their return to their institution.

Mining Engineering Scholarships CAER supports the Kentucky Mining Engineering Scholarship (KMES) program each year. This support enables students to pursue careers as mining engineers. The program was established over 20 years ago by the Commonwealth of Kentucky to assure an adequate supply of mining engineers to meet the needs of the state mineral industries. CAER makes a substantial annual contribution to the scholarship fund. Graduate Research CAER offers graduate students opportunities that academic departments alone cannot. We provide interactions with professional colleagues and industry, rather than professors. The relationship of a student to a mentor is different from that of a student and professor. While here, students associate with leading scientists and engineers who are employed in their fields of interest. At the University of Kentucky, we take our responsibility as graduate student mentors very seriously. Our researchers communicate cutting-edge ideas, develop professional skills in writing (e.g., reports, papers, and grant proposals),

editing (evaluating manuscripts and papers), making presentations, networking, and interviewing. Students’ research activities directly relate to investigations germane to their field of specialization or to a thesis or dissertation topic. Researchers serve on thesis and dissertation committees. Researchers, many of whom hold adjunct positions in departments, develop interdisciplinary research that addresses science and engineering studies. Initiatives are as varied as the departments. Opportunities are available that marry more traditional programs with specialized initiatives at CAER and facilitate research within departments as well as multidisciplinary research across the university. Study Abroad Program Since 1999, CAER has hosted groups of French exchange students from the University of Burgundy’s materials engineering school (Ecole Superieure D’Ingenieurs de Recherche en Materiaux or ESIREM) located in Dijon, France. In this reciprocal exchange, American and French students are able to study abroad, engage in a laboratory practicum and

Postdoctoral Scholarships/ Fellowships Postdoctoral Scholarships are limited to students who have completed the requirements for a Ph.D. and otherwise meet the requirements of the University of Kentucky Graduate School. Post-doctorates work under the direction of a research mentor who provides advanced training as a means of preparing the postdoctoral scholar for a research career. The center offers the opportunity for collaborative and inde-pendent research and publication of findings, as determined by mutual agreement of the postdoctoral scholar and the supervisor. So whether it’s an undergraduate freshman or a young Ph.D., CAER provides opportunities for these scholars to work in a state-of-the-art laboratory while learning the value of research, experimentation and scientific discovery. There is no substitute for experiencebased, hands-on training under the supervision of a senior scientific mentor. ◆

Marybeth McAllister is communications manager at the University of Kentucky’s Center for Applied Energy Research (www.caer.uky.edu).

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Dynegy congratulates the American Coal Council Magazine on 25 years of advancing American coal markets and promoting coal industry partnerships. Dynegy values high-caliber supplier relationships that achieve positive results for all stakeholders, and the American Coal Council has been a key networking advocate. Dynegy is a significant participant in the merchant power arena, with approximately 12,000 megawatts of generation capacity. The company’s fleet of coal-fired power generation facilities total more than 3,500 megawatts of generation capacity in Illinois and New York, where the company is committed to the safe, reliable, cost-efficient and environmentally responsible production of electricity.

Dynegy contacts: West Boettger, Kenneth McCully, Managing Director, Fuels Senior Director, Fuels (713) 767-6097 (713) 507-6487

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The Importance of Education and Outreach in Research The global energy market is always changing By Debra F. Pflughoeft-Hassett and Tera D. Buckley, University of North Dakota Energy & Environmental Research Center

ndustry stakeholders need to stay updated on the latest research, industry developments, and changing regulations. They must also continue to network with their peers. To help industry stay abreast of what is happening in its specific areas of interest, the University of North Dakota Energy & Environmental Research Center (EERC) has conducted over 50 premier conferences worldwide. The ability to focus on the most pressing issues and gather speakers and panelists for the right mix of technical expertise, industrial experience, and political acumen, is what makes EERC conferences successful. Since its inception in 1951 as a federal lignite research center, the EERC has evolved into a high-tech, nonprofit research center that leverages and enhances government research dollars by developing working partnerships with industry, government, and the research community.

The EERC has spent years perfecting this philosophy and it has consequently evolved into conducting research, development, and demonstration activities involving all fossil, renewable, and alternative fuels, advanced power systems, waste management and utilization, water management, environmental cleanup technologies, and pollution prevention. By offering an array of education and outreach activities, EERC transfers the results of its research to other researchers, industry, government, and the public. Transferring Research to Industry The Symposium on Western Fuels: International Conference on Lignite, Brown, and Subbituminous Coals (formerly Low-Rank Fuels) is an example of an EERC conference dedicated to keeping the industry current on the future of low-rank coal. The 20th Symposium on Western Fuels Conference – held in October 2006 – focused on major challenges facing the industry, including mercury and fine particulate emissions, minimization of water requirements, carbon dioxide (CO2) sequestration, the application of more efficient and lower-cost combustion and gasification technologies, and the new vision of a hydrogen economy. “The conference provided valuable insights and an overview of the challenges and opportunities in the Western Fuels (coal) industry and, most importantly, it provided a sense o where we are going,” said participant Ebbe Skov of Hetagon Inc. Other highly successful conferences regularly conducted by EERC include the Air Quality: Mercury, Trace Elements, SO3, and Particulate Matter Conference; Biomass: Power, Fuels, and Chemicals Workshop; Future Issues and Opportunities for the Hydrogen Economy Workshop; and the Conference on Renewable Energy. “Our Air Quality Conference, for example, is a world-class event that is continually evolving,” said Deb Haley, EERC associate director for marketing, outreach, and administrative resources. “The event offers the perfect blend of presenters and attendees representing federal policy and regulation, research and development, and private sector investors,” she said. Educating the Educators Educating tomorrow’s consumers and citizens is the key to a sustainable energy future. One of the most effective ways to reach students (the future) is through their teachers. As a vehicle for technology transfer, it is the teachers who will educate students on tomorrow’s energy future; but who will educate the teachers? That is where EERC comes in. EERC provides educators with unbiased, factual, and understandable information on contentious energy issues to help them facilitate constructive education opportunities on energy production with their students.

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An example of educating the educators is a first-of-its-kind interactive online course targeted toward teachers that takes them behind the scenes of coal-based energy production and allows them to learn what happens to coal by-products. Coal Ash in the Classroom offers a unique blend of geology, chemistry, and engineering related to the importance of coal ash utilization. Course enrollees learn from and participate in self-checks, video/audio and text-based lectures, quizzes, animation, and graphic elements. Many of these activities and resources are designed to be transferred to their own classrooms. The course is offered through the University of North Dakota’s Department of Continuing Education. See this course in action by viewing the online demonstration developed from selected pages throughout the lessons at www.undeerc.org/carrc/html/classroom.html. The impact of Coal Ash in the Classroom is vast, considering that, on average, a public middle or high school teacher will teach six classes per day with 30 students in each class. As a result, a single teacher who implements the lessons over two school semesters has the potential to impact 360 students per year. In addition, many people new to the industry, such as regulators and new coal ash managers, find the course to be a valuable introduction to coal ash. Preparing the Future Workforce In an effort to facilitate implementation of the best coal ash management strategies, the EERC designed the Coal Ash Professionals Training Course specifically for new coal ash managers. The course provides attendees with the opportunity to understand the breadth of the coal ash industry through classroom-style presentations, formal interactive exercises, and informal networking. Attendees learn: • Expert insight on ash characterization and environmental issues from top industry professionals. • Tricks of the trade from utilities and ash marketers who successfully utilize coal ash. • Updates on the latest hot topics from industry leaders. “The structure of the program was great,” said one course attendee on a course evaluation form. “It hit all levels and occupations.”

Another attendee said the course was a “nice mix of topics with top-notch presenters.” The Coal Ash Professionals Training Course is offered every two years at various locations throughout the United States. Look for the next course in 2008. Educating the Regulators and Policy Makers Regulators and policy makers are faced with enormous amounts of information, but are often provided with conflicting reports that render environmental regulation and policy making extremely difficult. A key cornerstone of the EERC’s culture and philosophy is to provide regulators and others with unbiased information that will allow them to formulate environmental policies that are based on sound science and not on emotional responses. “The EERC is no one’s advocate,” said EERC Director Gerald Groenewold. “We have a moral obligation to bring scientifically sound and legally defensible information to our nation’s leaders in order to impact the development of solid energy and environmental legislation.” Conclusion Education and outreach is an involved process that combines research and industry insight into activities tailored to meet specific needs. The EERC has built a reputation of presenting a balanced, nonbiased, comprehensive, and interdisciplinary approach to education and outreach. It continues to develop unique education and outreach opportunities that help the coal industry remain on the forefront of producing energy in an environmentally sound manner. ◆

For more information on EERC education and outreach activities and upcoming events, visit www.undeerc.org. Debra Pflughoeft-Hassett is a senior research advisor and Tera Buckley is a marketing research specialist at the University of North Dakota Energy & Environmental Research Center (www.undeerc.org).

“Congratulations on your 25th Anniversary ACC”

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For over 60 years, Kiewit Mining Group has maintained a reputation as one of America’s leading producers of high quality, high energy coal. We have produced over 500 million tons of coal and are capable of producing more than 34 million tons per year. Kiewit Mining Group specializes in mine management, coal supply, contract mining, resource development and joint ventures. With strong financial stability, enduring ingenuity and evolving technology, Kiewit Mining Group is uniquely qualified to handle any size mining operation. We can develop solutions that target your specific energy needs.

“We meet North America’s energy needs with quality products and exceptional customer service through our dedicated employees.”

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    

    

ENERGY FOR THE 21ST CENTURY

Flip a switch.

Play a tune.

Warm your home.

Fuel your car.

Yeah... coal can do that. 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 liqueﬁed 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. Co alC anD o That. c o m

British Columbia Coal Mining By The Honourable Richard Neufeld, Minister of Energy, Mines and Petroleum Resources

ritish Columbia is one of the most attractive jurisdictions in the world for mineral exploration and mining. The province is blessed with a diverse geologic makeup, modern infrastructure, an educated workforce and access to United States and Asian markets. But only six years ago, mining in British Columbia languished. Despite our advantages, British Columbia enjoyed only 6 percent of the mining exploration investment in all of Canada. There was only one mining project in our environmental assessment process and there were only 250 exploration projects in our large province. That has changed. Upon the election of Premier Gordon Campbell’s government in 2001, we set out to revitalize the British Columbia mining sector by developing a plan to achieve the province’s goals of unprecedented job creation, leading the world in sustainable environmental management, and creating more economic and educational opportunities in mineral exploration and mining. The result was the “British Columbia Mining Plan,” released in 2005 as our comprehensive action plan to ensure the continued success of exploration and mining. Key steps in the plan included: reducing the taxes faced by British Columbia mining companies and industry employees, expanding exploration investment tax incentives, streamlining mining

Figure 2. american coal council

Figure 1.

regulations, simplifying access to land for mining, online claims registration, and developing the best geological data base in the world. These steps have resulted in a significant expansion and have moved the industry from revenues of $3 billion to $6 billion. In 2006, we saw the highest investment in mining exploration in the province’s history at CDN $265 million. Furthermore, British Columbia now has 16 percent of exploration

investment made in Canadian mining, 25 of 52 major mining projects in Canada, and 750 exploration projects. British Columbia is rich in coal reserves. Our coal varies in rank from lignite to anthracite and is distributed throughout the province (Figure 1). The province has some of the highest quality metallurgical coals in the world, one of the largest undeveloped anthracite resources and significant undeveloped thermal coal resources. There is estimated to be a coal resource of over 25 billion tonnes available for surface or shallow underground mining. The major coalfields are within the northwest trending belt of JuraCretaceous rocks, which parallel the Rocky Mountains in the northeast and southeast corners of the province. The Kootenay coalfields in the southeast host five coal mines managed by the Elk Valley Coal partnership (Figure 2) with proven reserves of over 1.3 billion tonnes. The coal rank is generally medium-volatile bituminous. The Peace River coalfield in the northeast has mineable resources of over one billion tonnes of mainly medium-volatile bituminous coal, though high-volatile and low-volatile bituminous resources 63

also occur. There are currently two mines operating in that region of the province with the potential for several more to be developed in the near future. There are also two thermal coal mines operating in British Columbia, one near Campbell River on Vancouver Island and the other near Princeton in the interior. British Columbia is the secondlargest exporter of coking coal in the world, topped only by Australia. British Columbia produced over 40 percent of Canada’s coal tonnage in 2004. The province ships coal to over 20 countries and exports to international markets. Shipments to Japan, South Korea and China, in particular, have increased significantly. Increases in the price of coal and robust demand from Asia are supporting the exploration of coal and ongoing interest in developing new coal mines. The future is very bright for development of new British Columbia coal resources and coal exploration has been active, with over 148,000 hectares (approximately 370,000 acres) in new coal licenses applied for in 2004. The overall resurgence of British Columbia’s mining industry is creating demand for more skilled workers. To meet this demand, we continue to expand tradestraining programs in our high schools and in mining-specific programs delivered in partnership with industry and educational institutions. The ministry invested $2.3 million to deliver training for First Nations and rural residents across the province in the exploration and mining fields in 2006. We delivered the Mining Rocks – Career and Job Opportunities Tour – a series of highly successful career and job fairs held in partnership with educational institutions and industry. The tour made 24 stops in communities around the province to promote the career potential and diverse employment opportunities available in exploration and mining. In January, we announced $2.8 million in provincial and federal funding to help youth from rural and First Nations communities in northwestern British Columbia get the hands-on experience they need to develop exciting careers in the mining industry. The Reclamation and Prospecting Program, a pilot program that will be launched this spring by Northwest Community College in partnership with the Smithers Exploration Group, will give students on-the-job training in mineral 64

prospecting, site evaluation and bush safety, as well as how to identify and assist in the environmental reclamation of old or abandoned mine sites. But even with these investments in education and training, we must address the reality that we may not have enough people in our own work force to meet the demands for skilled labor over the next 20 years. That is why we are asking the federal government to streamline the processes that allow skilled immigrants entry into Canada. Immigration is one of the keys to meeting the growing demand for skilled workers in the mining industry, and we are currently working with the federal government on its Temporary Foreign Workers Program to make it easier to attract foreign workers to British Columbia. Our new relationship with First Nations is founded on mutual respect, recognition and reconciliation of Aboriginal rights, and First Nations’ communities are sharing in the economic and social development of the province, especially when it comes to the exploration and development of our mineral resources. We are investing in First Nations’ and Aboriginal communities by providing them with the tools, training and skills development needed to reduce dependence on outside advisors, and to create self-reliance, prosperity and certainty. Already, there are success stories of how First Nations are working with mining companies. NovaGold Resources Inc. is working with the Tahltan Nation for the development of the high-grade Galore Creek mine in the historic Stikine Gold Belt of northwestern British Columbia.

In January, the province and the Taku River Tlingit First Nation embarked on a New Relationship Initiative by taking a major step towards an open pit molybdenum mine development in the North, and by ensuring that important First Nations’ issues are addressed at the same time as a critical environmental assessment process proceeds. These are examples of how the principles of the New Relationship are working, and demonstrates how engagement on First Nations’ rights can spur economic activity while creating positive relationships between government, industry and communities. The future for coal is promising and British Columbia’s mining industry is expanding to meet growing demand. There are important environmental considerations associated with coal’s use and government and industry plans for cleaner coal production and reduced end-use impacts are a key to future expansion of the industry. British Columbia is well positioned to become a world leader in the development of new and progressive environmental technologies related to coal extraction and use. By continuing to work with educational institutions, industry, First Nations and communities, the coal mining industry is helping us build a prosperous future for all British Columbians. ◆ The Honourable Richard Neufeld is the Minister of Energy, Mines and Petroleum Resources in the province of British Columbia, Canada (http://www.gov.bc.ca/empr/).

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Women’s Mining Coalition A “Different Face” Presenting a Positive Voice for the Modern Mining Industry By Terah Burdette, WMC Past President

he Women’s Mining Coalition (WMC) has been an active grassroots organization supporting environmentally responsible mining since 1993. Our organization is dedicated to bringing constituents together from across the country, to communicate with members of Congress and their staff. The WMC membership is made up of both women and men, with some 1,000 individuals involved. In the early years, members and participants in the WMC trips to Washington, D.C. were primarily women who worked in the metal mining sector. Their trips focused mainly on addressing proposed changes to the 1872 Mining Law. WMC’s efforts have expanded since then to include participants from, and issues important to, the diverse sectors of the modern mining industry, including coal, steel, construction materials, the energy sector, manufacturers, and trade associations. This expanded partnership has been active in the mountaintop mining and valley fill issues facing the coal mining industry. WMC continues to address important 66

issues facing the mining industry today. WMC is able to do this effectively because of the diversity of its membership and participants in its efforts. Every spring, about 50 members of the Women’s Mining Coalition take part in an annual fly-in to Washington, D.C. Their mission is to spread positive information about the modern mining industry to members of Congress and their staff. These “different faces” of the mining industry have the ability to positively converse, educate, and present factual information on current issues facing both the coal and minerals mining industries. Participants meet with both senators and representatives during the trips to D.C. and often have the opportunity to converse with over 300 members of congress and staff. While in D.C., WMC participants distribute important information about the issues facing the modern mining industry. The focus is not only on D.C., however. WMC members also organize grassroots outreach efforts in their home states, as well. As part of the outreach effort, during the Capitol Hill visits, the WMC co-hosts

an annual luncheon with the National Mining Association (NMA) for congressional members and their staff from a variety of caucuses: women’s, mining, rural, and western among others. This setting allows the participants to present individual information from their respective companies and to provide testimonials about their work experiences. WMC members have given testimonies at congressional hearings, addressing many important topics, including: critical workforce issues, sustainable development, reclamation, NEPA reform, Endangered Species Act, mining law reform, and energy-related issues. The issues facing our industry require participation from all stakeholders nationwide. WMC’s participants and members come from many diverse sectors including: metals, coal, iron ore, construction materials, and industrial minerals companies; manufacturers and suppliers; trade associations; and consultants. WMC continues to network into these many sectors, helping the mining industry expand its nationwide outreach and effectiveness. american coal council

A testament to our diversity is our current executive committee. Anne Wagner, manager, Environmental and Public Policy with Molycorp at La Questa, New Mexico, is president; Jacqueline Cahoon, mine engineer at Consol Energy, Inc.’s Robinson Run Mine in Harrison County, West Virginia is vice president; Cami Prenn, principal in Mine Development Associates in Reno, Nevada, is our treasurer; and Kimberly Wolf, senior environmental engineer with the Barrick Goldstrick in Elko, Nevada is our secretary The Women’s Mining Coalition has the following major goals and objectives: • To diversify our membership and participation base. • To encourage broader representation within the mining industry – coal, metals, industrial minerals, construction materials, manufacturing, suppliers, energy generation, transmission, transportation, etc. • To expand the partnerships WMC has developed with various sectors of the industry.

• To continue our outreach efforts, initiated in 1993, with members of Congress and their staff by supplying them with information and examples of the modern mining industry, providing them with an opportunity to meet women who work in the industry, and illustrating the industry’s role in helping to build a strong and secure United States of America. WMC’s continued partnership efforts with many across the country has helped to bring to Congress vital information addressing important issues including, but not limited to, national energy policy, the need for a national mineral policy, mountain top mining issues, the National Environmental Policy Act, and the Endangered Species Act. WMC members deliver the message that a strong mining industry is vitally important to the United States and that jobs across the country depend on mining. They also ensure that elected representatives are aware that current regulations and modern technology ensure state-ofthe-art environmental and safety

protection at U.S. mines, throughout the various industry sectors, and within manufacturing facilities. WMC members provide policy makers with first-hand information about the technological advancements and environmental stewardship of today’s mining industry, as well as the importance of industry jobs to local communities and to the nation as a whole. To find out more about the Women’s Mining Coalition or to become a member, please contact the WMC at 775-829-2121, ext. 16, e-mail wmc@nevadamining.org or log onto www.wmc-usa.org. ◆ Terah Burdette is the WMC past president (2004-2006) and currently serves as a member of the WMC Board of Directors (2007-2008). Janet Gellici, executive director of the American Coal Council also serves on the WMC Board of Directors.

McGuireWoods LLP is proud to be an active member of the

American Coal Council, and joins in celebrating the council’s 25th anniversary. We understand the issues facing the coal industry — not because we’ve heard about them, but because we’ve lived them. Discover the depth of our coal experience firsthand by joining us for our 6th Annual Coal Industry Briefing, this September. For information on the briefing and to register, or to review our coal team’s experience, visit www.mcguirewoods.com/events/coal.asp.

Leonard J. Marsico, Coal Team Leader | 412.667.7987 | lmarsico@mcguirewoods.com Dominion Tower | 625 Liberty Avenue, 23rd Floor | Pittsburgh, Pennsylvania 15222-3142 ATLANTA • BALTIMORE • CHARLOTTE • CHARLOTTESVILLE • CHICAGO • JACKSONVILLE • LOS ANGELES NEW YORK • NORFOLK • PITTSBURGH • RICHMOND • TYSONS CORNER • WASHINGTON, D.C. ALMATY, KAZAKHSTAN | BRUSSELS, BELGIUM

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African-Americans in Energy and Mining By Wilton Cedeno, American Association of Blacks in Energy & Consolidated Edison Company

he American Association of Blacks in Energy (AABE) was conceived 30 years ago by Clarke Watson, a Denver energy consultant. Watson owned the firm, Watson Associates, a division of Westland Companies. Watson was an engaging, well-connected businessman with contacts to the National Association for the Advancement of Colored People (NAACP), the National Urban League and black elected officials. Watson’s clients consisted of oil and gas companies being advised on public relations matters. At that time, the country was in the grip of an energy crisis. A number of organization changes had been made in the administrations of Presidents Richard Nixon and Gerald Ford in an attempt to deal with energy issues. Congress had also created the Federal Energy Administration and the Energy Research and Development Administration. Those pressures, regulatory, personnel, and policy changes culminated in the Department of Energy Organization Act on Oct. 1, 1977. President Jimmy Carter’s administration attempted to address the energy crisis with the establishment of a special task force. Conspicuously absent from the task force were persons of color (blacks or other minorities). The task force also had few, if any, persons with experience in any of the major energy sectors, as it was primarily comprised of academics, environmentalists, conservationists and alternative fuel advocates. The composition of the Carter energy task force was a source of concern for some blacks that mainly worked for energy companies. They were concerned that the task force recommendations would oppose programs and policies promoting economic growth and resource development – an attitude common in environmental groups. They were also aware that people of color were not well represented in many environmental orga70

nizations. Therefore, it was difficult to see how the opinions and concerns of minorities would play a role in the development of energy policy. Watson believed there was a strong correlation between energy, resource development, economic growth, and expanding opportunities for disadvantaged minorities to participate more fully in the American economic system. In response, Watson convened a meeting of blacks concerned about energy matters. They met at the Watergate Hotel in July 1977. Representatives included officers from corporations such as: Amerada Hess, Southern California Gas Co., Mobile Oil, Westinghouse, Chevron, Phillips Petroleum, and other institutions. Although there was no formal agenda, Watson wanted the group to create a structure in which blacks involved in energy issues could contribute to energy policy-making. Another idea at that meeting was the desire to have the relatively new Democratic administration appoint blacks to high-level, non-traditional roles in government. This included, for example, jobs outside of the then Department of Health, Education and Welfare (HEW), Department of Housing and Urban Development (HUD), Equal Employment Opportunity Commission (EEOC), and civil rights-oriented positions. Attendees recognized that energy issues had not been a priority on the agenda of most black political, civil rights, fraternal and social organizations. Given the fact that energy was central to economic growth and job creation, they agreed that a mechanism to assert energy issues into the agendas of these organizations was needed. Discussions at the meeting developed into a consensus to form AABE. Officers were chosen and Clarke Watson became the first chairman. The second organizational meeting was held at the Mayflower Hotel in Wash-

ington, and was attended by Margaret Bush Wilson, the chair of the board at the NAACP. Internal organizational issues were discussed and Wilson requested that AABE assist in the planning of a November 1977 NAACP conference that was to be geared toward addressing the energy crisis. As a result, this energy initiative brought the NAACP and AABE to the forefront of energy policy debates. Since that time, AABE has expanded in size and influence. Many local chapters have been chartered around the country and programs to increase minority enterprise involvement with the energy industry were instituted in the 1980s. Today, AABE educates members on a wide range of energy management, policy-making and consumer issues. AABE provides information on professional positions and networking opportunities throughout the energy industry. AABE also ensures that the concerns and policy positions of African-Americans are communicated to Members of Congress, key administration officials, leaders of allied organizations and other stakeholders. Additionally, AABE awards scholarships to students studying in science, mathematics and engineering, every year. AABE’s mission to ensure the input of African-Americans and other minorities into the discussion and development of energy policies is being fulfilled around the country and worldwide. AABE is poised to continue this influence for generations to come.

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A Capsule History of Blacks in Mining African-Americans have worked in the mining industry since the beginning of mining in the United States. During slavery, black men mined for their owners. After the Civil War, ex-slaves often found themselves back in pre-war conditions as some states introduced the practice of convict leasing. Under this practice, the state would lease prisoners – the large majority of whom were African-American – to companies, as a means of reducing costs and generating revenue. Many companies, including plantations, mining, logging, and railroad companies would, therefore, assume a supervisory role over the prisoners. Randall Sheldon described the growth of this practice in Tennessee in an article on “the Black Commentator” Web site:

“

In 1871, coal mining companies began to use convict labor and by 1882, more than half the convicts at the Nashville prison were leased out. In 1884, the Tennessee Coal, Iron and Railway Company took complete control and leased the entire prison population.

”

Moving beyond those times, African-American coal miners began a proud history in the United Mineworkers of America (UMWA). Among the elected delegates to the founding 1890 UMWA convention were at least five AfricanAmerican miners. By 1900, approximately 20,000 black miners had joined the union, representing about 20 percent of UMWA membership. A key and early African-American representative in the UMWA was Richard L. Davis, a coal miner in West Virginia and Ohio. The UMWA Web site notes that Davis was one of the delegates at the 1890 convention. Later, Davis labored as a “UMWA organizer in Alabama, Ohio and West Virginia.” In recognition of his efforts, Davis “was twice elected to the UMWA National Executive Board.” In more recent times, the UMWA has worked with its sister organization, the South African National Union of Mineworkers, to actively support the end of apartheid and the creation of a democracy in South Africa.

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The Continuing Importance of Coal Coal remains the backbone of electricity generation in the United States, with coal-based power plants producing over 50 percent of all electricity. Coal is expected to remain a dominant fuel source for electricity generation in the foreseeable future. It is projected that by 2025, 1.5 billion tons of coal will be produced in the U.S. each year, with the majority of that used to produce electricity. From a global perspective, there is expected to be a continued worldwide use of coal. According to the International Energy Agency (IEA), coal use will continue to increase over the next 20 years. In 2025, IEA projects that coal will be the basis of over 42 percent of electricity produced globally, with

phase and during initial production at the plant. First, this bill enables the Department of Energy to provide loan guarantees for construction and direct loans for the planning and permitting of CTL plants. Loan guarantees will encourage private investment and planning loans will help companies prepare a plant for construction. Second, this legislation will expand investment tax credits and expensing provisions to include coal-toliquid into the Strategic Petroleum Reserve and military fuel supplies. Third, this bill provides the Department of Defense the funding and authorization to purchase, test, and integrate these fuels. All of the above technologies represent opportunities for increased African-American participation in the energy market. Those opportunities would be a boon, as

Blacks have consistently represented a lower fraction of employees in the energy sector than they have in the economy overall, in services, or in manufacturing jobs. a higher dependence on coal in the developing world, including China (78 percent) and India (70 percent). In addition, the greater use of coal utilization by-products (CUBs) in the construction and other industries is due to increase in the near future. CUBs are the solid materials formed during combustion or gasification of coal during electric power generation. The primary large-volume CUBs are fly ash, bottom ash, slag, ash produced via fluidized bed combustion and flue gas desulfurization. Historically, CUBs have been disposed of in ash ponds, landfills and other sites. Due to increased R&D, there are many incentives for developing more beneficial uses for these materials, including power generation economies, the conservation of natural resources and landfill space, and reduction of carbon dioxide emissions. Another market destined to elicit greater section participation will emerge if the Coal-to-Liquid (CTL) Fuel Promotion Act of 2007 is enacted into law. Senators Barack Obama (D-IL) and Jim Bunning (R-KY) reintroduced this bill in the nascent 110th Congress. This legislation will extend the Fuel Excise Tax credit, and expand the credit for equipment used to capture and sequester carbon emissions. These tax incentives build on loans and loan guarantees by offering tax breaks during the multiple-year construction

the total number of African-Americans employed in the energy industry has fallen over the past two decades, from a high of 215,000 in 1989 to approximately 176,000 in 2002. Nearly two-thirds of blacks employed in the energy sector live in the South, due in large part to the higher African-American population there. Blacks have consistently represented a lower fraction of employees in the energy sector than they have in the economy overall, in services, or in manufacturing jobs. According to AABE’s database, only one member of AABE’s leadership is an officer in a coal corporation. Many opportunities now exist for the coal industry to diversify on the highest levels. As mentioned earlier, African-Americans have worked in the mining industry since its commercial beginning. This history has many unfortunate chapters and there is no better time to invest in proactive measures to diversify this important sector. ◆ Wilton Cedeno is chairman of the American Association of Blacks Energy (www.aabe.org) and director, Information Resources of Consolidated Edison Company (www. coned.com).

Index to Advertisers AIR-CURE Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Alliance Coal, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Alstom Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Ameren Energy Fuels and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 BNSF Railway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Borton LC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Cargill, Incorporated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Chemetron Fire Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 CIT Rail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 COAL-GEN Conference & Exhibition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 CMC USA, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Coaltek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Consol Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 CSX Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Dakota, MInnesota & Eastern Railroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Damascus Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Dings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 DTE Coal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IFC Dynegy, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Ernst & Young. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 ES & S Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Fuel Tech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36-37 Great River Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 H & H Portrait & Wedding Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Hard Steel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Headwaters Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .OBC Helm Financial Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Hill & Associates Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 The Hilliard Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Hoss Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 ICAP United Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Independent Drug Testing Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Ingram Barge Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC Interlake Steamship Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Jennmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 KCBX Terminals Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Kiewit Mining Group Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Liberty Mining Consultants Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Mankin Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Marshall Miller. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Material Control, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 McGuire Woods LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Midwest Generation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Miner Elastomer Products Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Mole-Master Services Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Montana Mining Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Murray Energy Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Lester Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68-69 National Coal Council. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Nevada Mining Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Nex Gen Coal Svc Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Norwest Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Peabody Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 PICOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Platts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Railworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 RIO Tinto Energy America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Roberts & Schaefer Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Sampling Associates International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 SCH Terminal Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Strata Products (USA) Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Tandem Products Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 TECO Coal Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Tema Systems Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Terex Mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 The Coal Association of Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 The Daniels Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 The David J Joseph Company Rail Equipment Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Thunder Bay Terminals Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Trianco Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Trinity Rail Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32-33 TTI RailRoad, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Union Pacific Railroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Westmoreland Coal Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Wiley Consulting LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

29325 CHAGRIN BOULEVARD, SUITE 300 PEPPER PIKE, OHIO 44122 PHONE: (216) 765-1240

“Rely on our Companies for dependable, low cost coal supplies.”

Mr. Robert E. Murray - Chairman, President, and Chief Executive Officer bobmurray@coalsource.com For coal pricing and availability, please contact: Mr. B.J. Cornelius, President The American Coal Sales Company bcornelius@coalsource.com 101 Prosperous Place, Suite 125 Lexington, Kentucky 40509 Phone: (859) 543-9220 Fax: (859) 543-1720

american coal council

Ingram Marine Group Ingram Barge Company Dry and liquid transportation service throughout the entire Mississippi River and Gulf Intracoastal Waterway System

Triangle Fleet / Triangle Anchorage Services Barge ﬂeeting and ship anchorage at Reserve, LA

St. Louis Fleet Barge ﬂeeting at St. Louis Harbor

Huntington Terminal Coal transfer from rail (CSX) to barge at Mile 306.5 Ohio River

Custom Fuel Services Midstream fuel service at New Orleans, Baton Rouge, Columbus (Cairo), Paducah, Hartford, Davenport, Catlettsburg and Point Pleasant

Ingram Materials Company Sand producer and distributor in Tennessee, Kentucky and Alabama

INGRAM BARGE COMPANY P.O. Box 23049 • Nashville, TN 37202-3049 615-298-8200 Phone • 615-298-8213 Fax www.ingrambarge.com

4,500 EMPLOYEES

STATES

Headwaters offers the

ONE

industry’s most diverse portfolio of services and technologies that make coal cleaner and more valuable for our nation’s dynamic energy future.

common vision… Adding Value to EnergyTM Pre-combustion Clean Coal Technologies for Power Generation • Leading supplier of technology and chemical reagents to the coal-based synfuel industry • Deploying dry coal cleaning process • Commercializing low rank fuel enhancement technology (coal drying) • Applying nanocatalyst technology for creation of emissions reducing coal treatments • Ethanol production utilizing waste heat from coal fueled power stations Coal Conversion for Ultra Clean Transportation Fuels • Only technology provider with footprint in all coal conversion methods: – Direct Coal Liquefaction – Indirect (Fischer Tropsch) Coal Liquefaction – Heavy Oil / Coal Co-processing • Leading developer of America’s first coal-to-liquids projects Post-Combustion Resources Management • 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 – Comprehensive utility and industrial services – Technologies for controlling ammonia and carbon in ash • Leading manufacturer of building products containing coal ash: – Regional market leader in concrete blocks, mortars and stuccos – National market leader in architectural stone veneer and siding accessories

www.headwaters.com

– Developer of innovative FlexCrete aerated concrete