Western Coal

The western coal industry, long overshadowed by the petroleum and metallic minerals industries, has been revitalized by several new coal mining operations, with the promise that this is only the beginning of a tremendous surge in production of coal that will carry into the next century. The content of this paper is confined to the coal fields and recent developments in eastern Montana, northeastern Wyoming and western North Dakota. The area is commonly referred to as the Powder River-Fort Union region although the Powder River Basin and the Fort Union formation are separate entities and are not coextensive. Coincidentally or otherwise, the extent of the subbituminous part of the coal region coincides approximately with the Powder River Basin. Environmental considerations together with the low sulfur content of much of the western coal have triggered demand since this coal could not compete at present with eastern and midwestern coal solely on a delivered-cost-per-million-btu basis. However, increasing costs of underground mining and the comparatively thin seams of the eastern and midwestern deposits may soon bring a balance to these costs regardless of the sulfur content. Another factor which has made western coal competitive at this time is the use of the unit-trains to significantly reduce the cost of transportation. Fast loading and unloading facilities and trains of 100 cars or more in turn-around service are the keys to success in this effort.