coal

With continued weak prices for coal, one of Wyoming’s largest coal companies is planning to reduce production.

During a meeting with investors to discuss third quarter results, Cloud Peak CEO Colin Marshall said the company is looking to cut 10 million tons at the Cordero Rojo mine near Gillette in 2015. That’s roughly 10 percent of the company’s overall production in the Powder River Basin.

Marshall said the plan won’t change unless prices rebound significantly.

“We're going down until things change enough to make it worthwhile going up.”

The recent Consensus Revenue Estimating Group, or CREG, report indicated some positive things for Wyoming's revenue picture, but within the report there are also concerns. 

Campbell County Representative Sue Wallis says one serious concern stands out.

"There's a very strong potential of a time...not very far out...when we've got a real problem with our education funding."

Governor Matt Mead says there’s no question that Taiwan and South Korea want Wyoming coal. Mead just returned from a trip to those countries where he met with government leaders, trona industry representatives, and attended events promoting tourism in Wyoming. He says exporting Wyoming coal is still a good idea.  

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An unfolding court case might change how Powder River Basin coal is taxed in Montana. Last week, a Montana district court heard oral arguments in a lawsuit pitting Cloud Peak Energy against the state.

The state is asking for $3.4 million in back taxes, arguing that Cloud Peak underpaid between 2005 and 2007 by selling to an affiliated company at below-market value.

A coal miner is dead after a bulldozer accident in the early morning hours on Sunday.

The incident happened at the Bridger coal mine near Rock Springs, which is jointly owned by PacifiCorp and Idaho Power. The Sweetwater County sheriff’s department says Mark Christopher Stassinos, 44, died after being thrown out of his bulldozer as it plunged over a highwall at the mine.

PacifiCorp spokesman Jeff Hymas says Stassinos had been working there for the last two years, and that mining operations have stopped pending an investigation.

DKRW Advanced Fuels, the company that’s proposing to build a coal-to-liquids conversion facility near Medicine Bow, has submitted yet another request to delay construction. The company announced its latest construction schedule in June. It's now asking to place that schedule on hold for up to 30 months. At the end of that period it would either provide all necessary information – including a new construction schedule, socioeconomic analysis, and updated housing plan – or lose its permit.   

The US Environmental Protection Agency has released a set of rules that would limit carbon dioxide emissions from coal and natural gas power plants. If finalized, the rules would be the first to set such a national standard. The rule caps carbon emissions from natural gas power plants at 1,000 pounds/megawatt hour and from coal power plants at 1,100 pounds.

The Bureau of Land Management received a single bid at today’s/Wednesday’s coal lease sale and it has rejected that bid. 

Kiewit  Mining Properties bid 21-cents per ton on the Buckskin Mine Hay Creek Two tract. The tract has about 167-million tons of mineable coal and is adjacent to the Buckskin mine, which Kiewit operates.

However, the bid is the lowest the B-L-M has received since 2001.

B-L-M spokeswoman, Beverly Gorney, says ultimately the bid did not meet the B-L-M’s secret calculations of what’s considered fair market value.

The Bureau of Land Management received a single bid at today’s coal lease sale, and it has rejected the offer.  Kiewit Mining Properties bid 21cents/ton on the Buckskin Mine Hay Creek II tract. The tract has about 167 million tons of mineable coal and is adjacent to the Buckskin mine, which Kiewit operates.

However, the bid is the lowest the BLM has received since 2001.

BLM spokeswoman, Beverly Gorny, says ultimately the bid did not meet the BLM’s secret calculations of what’s considered fair market value.

The Bureau of Land Management’s coal lease sale today coal lease sale received one bid. The Buckskin Mine Hay Creek II tract is adjacent to the operating Buckskin Mine in Campbell County. The bid came from Buckskin Mine’s operator, Kiewit Mining Properties, and amounted to 21 cents/ton for the estimated 167 million tons of mineable coal in the tract. If accepted, the tract could extend the mine’s life by about eight years.

The federal government is getting ready to unveil rules for carbon emissions at new coal-fired power plants, and they probably won't be what industry had hoped for.

While coal producers look to international markets to make up for a soft coal market at home, experts advise that Asian coal demand will not be as strong as had been expected.

During a recent teleconference, researchers and environmentalists discussed the financial viability of building coal export terminals in the Northwest US to ship Powder River basin coal to Asia. Ross Macfarlane works for Climate Solutions, a clean-energy advocacy group. He said domestic producers didn’t account for the evolution of the coal market abroad.  

The comment period closed Monday on the Environmental Protection Agency’s proposed Regional Haze Plan. The plan seeks to address the issue of air pollution produced by coal fired power plants. Wyoming put together its own regional haze program, but the EPA rejected parts of it, saying it wasn't strong enough, particularly when it came to nitrogen oxide emissions at four plants.

Robert Nickelsberg/Getty Images

The Bureau of Land Management is responsible for coal on federal lands. That coal makes up about 40 percent of total coal production in the U.S. Of the 314 existing federal coal leases, nearly a quarter of the leases are in Wyoming’s Powder River Basin. Companies acquire these leases by bidding on the right to mine the federal coal. It has generated a lot of income, which the federal government splits with states. But not everyone thinks the program is working as it should and that the government might be losing out on money.

Today’s coal lease sale of nearly 150 million tons of mineable coal in the Powder River Basin received zero bids.

It’s the first time the Wyoming office of the Bureau of Land Management has received no bids for a sale. Cordero Mining, a subsidiary of Cloud Peak Energy, asked BLM to open the tract in 2006. It's adjacent to an operating Cloud Peak mine.

But Cloud Peak CEO Colin Marshall says things have changed since then. In a press release, he cited current coal market conditions and regulatory uncertainty as factors in the company's decision not to bid.

Two coal lease tracts in the Powder River Basin will go up for sale in the next several weeks at the request of two operators in the area.

Cordero Mining and Kiewit Mining Properties requested the sales using the “lease by application” system. Under that system companies with existing mines can request specific tracts, often adjacent to their operations. The system has been criticized for limiting competition.

University of Colorado Law School professor, Mark Squillace, says often, such coal lease sales only attract one bidder.

The U.S. Army Corps of Engineers, the Washington State Department of Ecology, and Whatcom County have announced that their joint Environmental Impact Statement for a proposed coal export facility in Washington State will include a broad analysis. The proposed Cherry Point terminal would be able to export 48 million tons of coal each year, mostly of Powder River Basin coal going to Asia.

A new report by the environmental group Sierra Club says at least three coal-fired power plants in Wyoming discharge pollution containing metals into streams. According to the report, some plants do not monitor how much waste they discharge or what it contains.

The Environmental Protection Agency says coal plants nationwide contribute more than half of the toxic pollutants discharged to water bodies by regulated industry, but discharge standards have not been updated since 1982. 

Last week the Congressional House Sub-Committee on Energy and Mineral Resources held an oversight hearing focusing on the benefits of Powder River Basin coal production for local communities and national energy security.  Campbell County Commissioner Dan Coolidge testified that when he moved to Gillette, he never expected to stay. But, he said he was surprised by the impact of coal tax revenues on quality of life there.    

Wyoming leaders say the state's energy-based economy is suffering under recent Obama administration environmental initiatives.

Republican Gov. Matt Mead plans to testify next week in Cheyenne against a U.S. Environmental Protection Agency proposal to restrict emissions from coal-fired power plants.

Mead says the rule will cost Wyoming's five coal-fired power plants about $1 billion initially and perhaps $100 million a year thereafter. He says implementing the regulations won't affect haze.

Today the Congressional House Sub-Committee on Energy and Mineral Resources held a hearing about coal mining in the Powder River Basin.

237 years of independence and energy

Jul 4, 2013

The Energy Information Administration says that in the 237 years since the adoption of the Declaration of Independence the U.S. has gone from using primarily renewable resources like wood and water to using fossil fuels.

Statistician at the EIA, Tyson Brown, says he compiled the brief just for fun, but says it’s still enlightening to look at the long-term changes.

The U.S. Energy Information Administration released its “Today in Energy” brief today, which details, among other things, coal exports from the U.S. According to the report, March had the highest number of coal exports yet. The top importing countries were China, the Netherlands, the UK, South Korea, and Brazil. The top five ports were all in the southern and eastern United States. Those ports exported over two and half times more coal in March alone than the Northwest ports did for all of 2012. Powder River Basin coal mostly ships from the Northwest.

The Sierra Club and partner organizations filed a lawsuit today against BNSF Railways and several coal producers. The suit claims the companies are violating the federal Clean Water Act when they discharge coal dust along railways from the Powder River Basin without permits to do so.

Pacific Northwest Regional Press Secretary for Sierra Club’ Beyond Coal campaign, Krista Collard, says a letter of intent to file the suit was sent to all parties two months ago, but they did little to limit coal dust pollution.

Wyoming hosts mining reclamation conference

Jun 4, 2013

Mining industry representatives and researchers are gathering in Laramie this week for the meeting of the American Society of Mining and Reclamation. The last time Wyoming hosted the American Society of Mining and Reclamation was in 2007. Peter Stahl, director of the Wyoming Reclamation and Restoration Center, says the fact that the industry gathering has returned to Wyoming so soon is a testament to the state’s role in the field of land reclamation.

As demand for coal has dropped domestically, producers have turned to exports abroad as a way to make up for market losses at home. 2012 was a record year for coal exports out of the US.

The demand for coal in China and other Asian markets, has raised hopes for coal producers in the Powder River Basin. They’ve helped develop plans for expanded port facilities in the Northwestern US and some coal companies, including Arch Coal, have invested money in the proposed ports.

Gov. Mead releases WY energy policy

May 13, 2013

Governor Matt Mead and his policy director, Shawn Reese, released an energy policy for Wyoming at a press conference today. The policy contains 47 initiatives broken down into categories including economic competitiveness and expansion, regulation, conservation, and education. Reese said there were a number of hallmark initiatives.

Three protesters were arrested yesterday at the Peabody Energy shareholders meeting in Gillette. United Mine Workers of America representatives were demonstrating against pension cuts to retired miners that came about when Peabody unloaded some of its pension responsibilities on a company that has since declared bankruptcy. Other demonstrators were there to protest Peabody projects and conduct. An organizer from Missouri, Arielle Klagsbrun, said the meeting was held at Gillette College and the arrests happened in the parking lot… 

Wyoming Gov. Matt Mead is asking the White House to not evaluate the effects of greenhouse gases that would be emitted by exporting U.S. coal and burning it overseas.

Wyoming is the nation's leading coal-producing state and state officials are concerned about falling domestic demand for coal as a result of global warming concerns. State officials are pushing to secure ports in the Northwest to allow coal exports to Asia.

Protesters are gathering in Gillette this week to demonstrate against the Patriot Coal Company during Arch and Peabody Coal’s annual shareholder meetings. Patriot was formed in 2007 when Peabody unloaded its operations east of the Mississippi, along with its long-term health care obligations to some of its retirees. Arch formed a similar company, called Magnum, which was later acquired by Patriot along with another set of benefited retirees.  However, Patriot filed bankruptcy last summer, citing “substantial and unsustainable legacy costs.”

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