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[ ] RMCMI PRESIDENT 1985 - 1986 ARTHUR K. NEILL on behalf of The RMCMI Board of Directors and Officers invites you and your family to attend The 82nd Regular Meeting and Convention of The Rocky Mountain Coal Mining Institute to be held JUNE 29, 30 AND JULY 1, 1986 Kalispell, Montana

Jan 1, 1985

The 81 st Regular Meeting and convention was called to order by the President, Charles W. Margolf at 9:00 a.m. Monday, July l, 1985 in the Silverton Room of Tamarron, a resort hotel near Durango, Colorado. President Margolf welcomed the members and others in attendance to the convention and noted his theme of "Make It Happen!" He introduced those present of the 1985-86 Board of Directors and Officers who were elected by the Board of Directors at their Annual Meeting June 29. They were: Arthur K. Neill, President; Bernard Bernstrom, President-Elect; Loren V. Linville, Convention Liaison Officer; Vice Presidents Douglas J. Hammer of Colorado, C. Joe Presley of Montana, Alva L. Smith of New Mexico, Fred Wertz of North Dakota, Rex Berry of Utah and Thomas J. Lien of Wyoming; and Doris G. Finnie, Executive Secretary & Treasurer. He also introduced Ira. E. McKeever who was elected to serve as chairman of the Advisory Board by that group. Margolf mentioned that one three-year term as a Director would be voted upon at the annual business meeting which would be held Tuesday, July 2 at 1:30 p.m. in the Windom Peak Room and introduced James "Doug" Ingram, the nominee of the Nominating Committee. A convention update was made by the Conven-

Jan 1, 1985

Jan 1, 1985

Article II of the RMCMI Bylaws reads: Section 1. Classes. The membership of the corporation shall be divided into three classes, consisting of active members, life members and senior members, who shall have such rights, privileges and qualifications as these bylaws may provide. The names of all active, life and senior members, together with current mailing addresses, follow. [ ]

Jan 1, 1985

Jan 1, 1985

At the Annual Meeting of the RMCMI Board of Directors held June 29, 1985, the following amendments to the corporation bylaws Article III were made: Section 2. Advisory Board. There shall be an Advisory Board of Directors which shall be com- posed of all former presidents of the corporation and of the unincorporated association, also known as The Rocky Mountain Coal Mining Institute, of which the corporation is the successor. The Advisory Board shall periodically review the philosophy and policies of the corporation and make recommendations concerning the same to the Board of Directors. The Advisory Board shall hold an annual meeting at the same place as and immediately pre- ceding the annual meeting of the members in each year and written notice stating the place, day, and hour of the meeting shall be given or mailed to each member of the Advisory Board at least thirty days prior to the date fixed for such annual meeting. The annual meeting of the Advisory Board shall be for the purpose of electing a chairman from among its members and the person so elected chairman shall also serve as a member of the Board of Directors of the corporation. The Advisory Board shall meet at such other times and conduct its affairs in such a manner as it shall determine from time to time by resolution. Section 4. Regular Meetings. A regular meeting of the Board of Directors shall be held immediately following the annual meeting of the members, at the site of the annual meeting of the members, the day and time to be fixed by the Board of Directors at its annual meeting immediately pre- ceding the annual meeting of the members in each year, without the necessity of any other or advance notice. Such regular meeting of the Board of Directors shall be for the purpose of considering committee appointments, and for the transaction of such other business as may come before the meeting. A regular meeting of the Board of Directors shall also be held in the Fall of each year following the annual meeting of the members and written notice stating the place day and hour of the meeting shall be given or mailed each member of the Board of Directors at least thirty days prior to the date fixed for such regular meeting. Such Fall regular meeting of the Board of Directors shall be for the purpose of receiving the treasurer's annual financial report of the previous fiscal year as reviewed and approved by the auditor, to take action on the budget, and for the transaction of such other business as may come before the meeting. Section 8. Standing Committees. The Board of Directors may create by resolution adopted by a majority of the entire Board of Directors, a Bylaws and Resolutions Committee, a Nominating Committee, a Finance Committee, and one or more other committees each of which shall consist of two or more directors and which shall have and may exercise such authority in the management of the corporation as shall be provided in such resolution or in these bylaws. Section 9. Ad Hoc committees. The Board of Directors from time to time may by resolution create a Membership Committee, a Scholarship Committee, an Education Committee, various convention committees, and one or more other committees each of which shall consist of members of the corporation and which shall have and may exercise such authority, other than in connection with the management of the corporation, as the Board of Directors may determine. MINUTES of the Rocky Mountain Coal Mining Institute 81 st Member Annual Business Meeting July 2, 1985 The 81st Annual Business Meeting of the mem¬bers of The Rocky Mountain Coal Mining Institute was called to order by the president, Charles W. Margolf at 1:35 p.m. Tuesday, July 2, 1985 in the Windom Peak Room of the Tamarron Resort near Durango, Colorado. Thirty members were present and a quorum was established. It was moved by Bill Balaz, seconded and car¬ried to dispense with the reading of the minutes as these were published on pages 67 thru 77 of the 1984 issue of the Proceedings. The chair called for reports of the various com¬mittees and these reports will be placed on file in the RMCMI Office. Bylaws and Resolutions. Chairman Loren V. Linville reported that the Board of Directors had adopted changes to Article III, Sections 2, 4, 8 and 9 calling for clarification of Ad Hoc and Standing Committees as well as setting forth a purpose for the Advisory Board meetings and stating a time for an annual meeting. He further reported that the Board had passed three resolutions: (One) Noting the passing of these members since the last conven¬tion - Einar M. Arentzen, Gerhardt A. Benne¬witz, Claude P. Heiner, Raymond A. Johnson, Vard H. Johnson, P. T. Schonstrom, Augusta F. Whiteside and Edward Wiemann; (Two) Of appreciation to the officers, chairmen and their commit-

Jan 1, 1985

Pictured on these pages are the six RMCMI Scholarship Award Winners for the 1985-86 year followed by a brief profile. Five of the winners were present as RMCMI guests at the June convention at Tamarron to receive their recognition plaques at the welcoming session held Monday, July I, 1985. In addition to the plaques, each winner will receive $500.00 to be used toward tuition in the coming academic year. Also, as this is a continuing award, the winners from the 1984-85 season, will also receive an additional $500.00 for tuition use in their senior years provided they have maintained a good academic standing. Criteria for these awards is (1) 'That the award be made in the spring to a sophomore student to be used toward tuition during the junior year. (2) That the recipient be both a U. S. citizen and a resident of the state involved. (3) That the recipient have good academic standing, be pursuing a degree in a mining related field and have an expressed interest in Western coal as a possible career path. Contributions to this worthy project are tax deductible to each individual RMCMI member as well as firms, businesses and corporations. Checks payable to RMCMI Scholarship may be mailed to the RMCMI Office at 777 Nile Street in Golden, CO 80401. Profiles of the 1985 winners follow: [ ]BEVERLY MOON Colorado School of Mines Beverly is a resident of Greeley, Colorado. She maintains a 3.1 grade average at the Colorado School of Mines and was on the Dean's List in 1983. In addition she also appeared on the Academic Roll in 198 1 and 1984. She participates in the Society of Women Engineers, and this summer Beverly is working for North American Coal Corporation's Coteau Properties, outside of Beulah, North Dakota, as an Engineer's Assistant. [ ]DEE BRAY Montana College of Science and Technology Dee comes from a small ranch outside of Hall, Montana and is currently pursuing a degree in Mining Engineering at Montana Tech. This summer he is working for North American Coal where he was selected out of more than a dozen applicants for his position. As a side note, Dee's brother, Dean Bray, is also a Mining Engineer, a Montana Tech Grad, and works for Consol at the Glen Harold Mine in North Dakota.

Jan 1, 1985

The Bowdil Company Bucyrus-Erie Company Card Corporation The Cincinnati Mine Machinery Co. Coal Age Coal Mining Cobre Tire Cummins Power, Inc. FMC Corporation - MHE Division T. J. Gundlach Machine Division/Rexnord Inc. Imperial Oil and Grease Company Ingersoll-Rand Jeffrey Mining Machinery Division, Dresser Industries Inc. Joy Manufacturing Company K&P Sales Engineers, Inc. Kennametal, Inc. Lively Manufacturing & Equipment Co. Long-Airdox Co. MS A McLanahan Corporation National Mine Service Company Distributor Products Division Page Engineering Plateau Supply, Inc. Plymouth Rubber Company, Inc. Pyramid Parts Div./American Alloy TIC - The Industrial Company Tricon Metals & Services, Inc. Uniroyal, Inc. Utah International Inc.

Jan 1, 1985

By W. R. Deeths

The Great Plains Coal Gasification Project is the first commercial scale grass roots synthetic fuels (SNG) plant to be built in the United States. The plant will be constructed in two phases, with each phase producing 125 million cubic feet per day of pipeline quality (970 BTU per cubic foot) substitute natural gas from lignite coal. The plant is located north of Beulah in Mercer County, North Dakota. The first phase complex, when completed, will cost about 1.2 billion dollars and will include all necessary process units, oxygen production, steam generation, coal handling and preparation, utilities and infrastructure. The plant will be owned and operated by, the Great Plains Coal Gasification Associates, a partnership consisting of the following companies: ANG Coal Gasification Company, Mid Con Corporation, Tenneco, Inc., Transco Energy Company and Pacific Lighting Co. The Project began in late 1973 with a Phase I feasibility study and site selection study. The feasibility study was completed in 1975, at which time Kaiser Engineers and C. E. Lummus, the two engineering contractors, proceeded with a Phase II conceptual engineering design for the project. The culmination of the Phase II work was the publication of a detailed scope definition and control estimate, which was to become the cost guideline for procurement and plant construction. Following an engineering slowdown period in 1979, due to continuing delays in regulatory procedures, detailed engineering effort was reinstituted in early 1980 and by mid-1981 was approximately 35 percent complete. The total home office engineering effort amounts to approximately 3.5 million man hours of work split between Kaiser Engineers and Lummus. These totals exclude the engineering effort expended by Lurgi of Germany in the process design. The gasification plant shares the site and certain other facilities with the Basin Electric Power Station. Among these facilities are the plant access railroad, peripheral drainage ditch and raw water supply system. In addition, the gasification plant will draw its power directly from the Basin main substation, and Basin will receive coal from the gasification plant, consisting of the coal fines which cannot be gasified in the Lurgi units. The overall construction program covers a period of approximately 44 months with mechanical completion and initial gas production slated for late 1984. Craft labor requirements amount to approximately 11.5 million man hours and the work force peaked in excess of 4,500 people. In anticipation of an early resolution of both Federal Energy Regulatory Commission ruling and Department of Energy loan guarantee commitments, certain work on the site was commenced during 1980. This work consisted of site rough grading, driving of piles, and erection of three of the plant auxilliary buildings. Orders and subcontracts were placed for compressors, pumps, electrical equipment, material handling equipment, piping, structural steel, boilers, oxygen plant and cooling towers. Over 40 major Federal, State and local permits were required. Among these were such diverse permits as: ? Soil conservation ?Railroad and pipeline rights of way ? Certificates of site compatibility ? Permits for structures in areas controlled by the ? U.S. Army Corps of Engineers ? Environmental permits required by the North ? Dakota Department of Public Health. The preparation of an Environmental Impact Report began in September of 1973. FPC (now FERC) guidelines and North Dakota special requirements were followed except that, at the time, the highly structured form of environmental impact statements we know today was not in use. We were required to develop a number of new sampling and evaluation techniques and reporting procedures at a time when the requirements were vague and often contradictory. In March 1975, field studies were completed and submitted to the Bureau of Recla¬mation, which then began to prepare its own EIS. Two years later, in May 1977, public hearings began on the Project. The hearings and public review of the report drew over 400 comments or questions. Responses o the comments were in¬corporated in a Final Environmental Impact Statement issued in January 1978. In March 1975, the original filing was made for an FPC Certificate of Public Convenience and Necessity which included: ? A technical feasibility study ? An Environmental Impact Assessment ? An Economic and financial feasibility assessment. An amended filing was submitted in 1976 to build the plant in two phases because studies then indicated that the cost of the plant had increased substantially. A second amended filing was submitted in 1977 to reflect the involvement of Peoples Gas (now Mid-Con Corporation) in the Project. At the time, it was believed that an FPC Certificate could be issued by December 1977. However, approval would be contingent on the U.S. Bureau of Reclamation having a complete Final Environmental Impact Statement for the Project. In 1977, with the formation of the Department of Energy, the FPC

Jan 1, 1984

RMCMl PRESIDENT CHARLES W. MARGOLF on behalf of The RMCMI Board of Directors and Officers invites you and your family to attend The 81st Regular Meeting and Convention of The Rocky Mountain Coal Mining Institute to be held at Tamarron, Durango, Colorado JUNE 30, JULY 1 AND 2, 1985

Jan 1, 1984

By Andrew Franklin

The eightieth regular meeting and convention was called to order by the President, John T. Atkins, at 9:15 a.m. Monday, June 25, 1984 in the Colorado Ballroom of the Marriott's Mark Resort in Vail, Colorado. President Atkins welcomed the members and their guests to the convention and noted that the annual business meeting would be held Tuesday afternoon at 2:00 p.m. in the same room. A convention update was made by the Conven¬tion Liaison Officer, Loren V. Linville. This was followed with a program report by the Program Chairman, Doug Ingram. The chair then called on Clifford Barrett, Upper Colorado Regional Director of the Bureau of Rec¬lamation of the United States Department of the Interior. He presented the Bureau's Citizen Award to RMCMI former president Ira E. McKeever for his outstanding contributions to the joint private/ Federal effort and the open planning process for AQUATRAIN. According to Barrett, "from 1981 to early 1984, McKeever led private industry work in the AQUATRAIN project, a proposal for a 1,400 mile long pipeline system. AQUATRAIN was conceived as a possible alternative to solve the government's problem of rising salinity levels in the Colorado river, as well as the private sector's need for a more economical coal transport method. The Citizen Award cites McKeever's efforts in developing a model for future cooperative ventures between government and industry that can benefit the nation." Following this presentation, the formal program of the 80th meeting and convention began with the president, John Atkins, introducing the convention kickoff speaker, Andrew Franklin, President of Nerco Mining Co., Inc., followed by the convention keynote speaker, Dr. Margaret N. Maxey of the University of Texas. These speeches are printed in this Proceedings together with those of all other convention speakers. I'm Andrew Franklin, President of Nerco Min¬ing Company, and I'm delighted to be here to kick off the annual convention of the Rocky Mountain Coal Mining Institute. This has always been a very special convention in my eyes and I'm sure this year's will be no exception. I am also here to share my thoughts on the western coal industry and how we're all affected - for good and bad - by public policy decisions. Although the title of my talk is "Western Coal: An Industry Under Siege," I believe a more accurate title might be "Western Coal: The Pit and The Pendulum," because of the wide swings in public policy and coal development in the past 15 years which have cut a zigzag path for growth over this period. As one of the nation's largest coal producers, Nerco is well aware of the problems facing western coal production. Nerco Mining Company is the western coal mining subsidiary of Nerco Inc. We have been "in coal" for more than 25 years through our parent company, Pacific Power & Light. To state my conclusion at the outset, I feel it's extremely important that consistency and common sense should guide our national policy for the development of valuable energy resources. In particu¬lar, we must reduce the wide swings in government policy and activities which have affected energy development. In short, we must decide what kind of game we're playing so that the "players" and the "referees" can keep their eyes on the "ball." Business today faces two main types of uncertainty market uncertainty and public policy uncertainty. As businessmen, we expect and are used to facing the familiar challenges and uncertainties of the market in which we operate. Over the past 10 years, the market has appeared to be bullish on coal. But the facts make our future less rosy. Last year, western coal producers faced over 50 million

Jan 1, 1984

By Glen A. Zumwalt

Coal's Dynamic Legacy The first session presented by Mr. Zumwalt emphasized Western coal development, the heritage of the industry and its growth in the West. The session began with a brief description of the geologic origin of coal followed by a short history quiz given the audience to stimulate their curiosity and involve them in the presentation. Slides and flip charts were used as visual aids and a demonstration of energy resources and uses was made by playing the famous Skyline jelly bean game. Coal Mining Today Today's coal mining practices were dealt with in the second session as Mr. Zumwalt appeared dressed in the garb of the modem day miner. He then led a discussion of coal production in the Western states, its uses and the different techniques used in extracting coal from both a surface and an underground mine. Current coal transportation and markets were also touched on. Our Exciting Future Recent coal growth in the marketplace and new uses of coal products to the year 2000 were dealt with in the final session. Mr. Zumwalt covered things that currently impede the expanded use of coal and things that can negatively or positively affect the future use of coal. In each of the three sessions, Mr: Zumwalt was ably assisted by Mrs. Janet Gwilliam, his secretary at Utah Fuel Company.

Jan 1, 1984

The Annual Meeting of The Rocky Mountain Coal Mining Institute was called to order by the President, John T. Atkins, at 2:00 p.m. Tuesday, June 26, 1984 in the Colorado Ballroom of the Marriott's Mark Resort in Vail, Colorado. There were 36 members in attendance. It was moved by Bob Diederich, seconded and carried to dispense with the reading of the 1983 Annual Meeting minutes as printed on pages 105 thru 109 of the 1983 Proceedings. In keeping with the printed agenda in the convention program/ticket booklet, the President called for reports of standing committees as follow: 1. Bylaws & Resolutions - Loren Linville, Chairman Linville noted that the committee had been working for two years on bylaws changes and concluded a corporate lawyer specializing in nonprofit organizations be engaged. He then introduced Mr. Peter B. Nagle of the Denver law firm of Sherman and Howard who outlined the major changes in converting the Institute's current status of 501(c)(6) to 501(c)(3). He pointed out that such a conversion would give the Institute a proper legal status, would give individual contributors to the scholarship or other programs a personal income tax deduction, would qualify the Institute for the postal nonprofit mailing rate and the Institute would achieve the advantage of limited liability inherent in a corportion and would insulate its members, officers and directors from liability for corporate obligations. Copies of the Articles of Incorporation as well as the Bylaws were available for all members. A discussion ensued and the following resolution was moved by Bob Diederich, seconded and carried: RESOLVED, that the unincorporated association known as the Rocky Mountain Coal Mining Institute be, and hereby is, dissolved and in its place, and to carry out its objectives, shall be formed a nonprofit corporation under the laws of the State of Colorado, which corporation shall also be known as The Rocky Mountain Coal Mining Institute, and to which shall be transferred all of the assets and liabilities of this association. FURTHER RESOLVED, that the proper officers of this association are authorized and directed to execute and file with the Colorado Secretary of State, Articles of Incorporation in a form substantially similar to those prepared for this association by its counsel, and the names of the individuals identified in such Articles of Incorporation as the initial Board of Directors of such corporation, which names were proposed and recommended by the Nominating Committee of this association, are hereby approved. FURTHER RESOLVED, that the proper officers of this association are authorized and directed to do all acts necessary or convenient to carry out the terms of the preceding resolutions. (Articles of Incorporation and Bylaws as adopted are printed following these minutes.) Additional resolutions were read by Linville as follows: Item 1: WE RESOLVE herein that in the year since the last convention of the RMCMI, the Institute and the coal industry have suffered the loss, through death, and the services of: Lloyd W. Taylor Charles T. Holland THEREFORE, BE IT RESOLVED, that we record in the minutes of the RMCMI, recognition of the passing of these members who have so greatly contributed to the advancement of the industry, both nationally and in the Rocky Mountain area, and that a copy of this resolution be sent to the next of kin as evidence of the sincere sympathy and deep regard of the members of the Institute. Item 2: RESOLVED, that in recognition of their long and faithful service to the coal industry that the status of Life Member be conferred upon: Bernard Bernstrom Roy Coulson Shirl C. McArthur Item 3: RESOLVED, that we commend and express our gratitude to our Executive Secretary, officers, chairmen and committees for an outstanding job in presenting. the 80th RMCMI meeting. Item 4: RESOLVED, that the RMCMI express its gratitude to K&P, INC. of Golden, Colorado for their generous donation of office facilities and furniture for the RMCMI office and to K&P SALES ENGINEERS, INC. also of Golden, Colorado for their assistance in telephone answering, other office procedures and the use of certain office equipment. Item 5: RESOLVED, that six scholarships be awarded annually to advance the education program of the Institute to worthy students pursuing career paths in mining or other related industry in the six states in which the Institute generally operates and has members and in accordance with the criteria set forth by the Scholarship Committee. It was moved by Jim Neal, seconded and tamed

Jan 1, 1984

[Mr. Jay Abbott Union Sply Co 7458 S Jackson St Littleton. CO 80122 Mr. Ronald H. AchZlger Midwest Rbr 6 Sply Co 6404 E 39th Ave Denver, CO 80207 Mr. Randy Acre Dorchester Coal C 9350 E Arapahoe Rd Englewood, CO 80112 Mr. Dell H. Adams Kenerco Corp 5480 Swanton Dr Lexington, KY 4051 Mr. Robert S. Affleck Anderson Mavor (USA) Ltd RD #1 Box 140-Lake R Bradford Woods, PA 15015]

Jan 1, 1984

Jan 1, 1984

By George Cherpelis

1. Historical Background of the Employment Relationship A. The Relationship at Common Law 1. Jacob & Rachel 2. Domestic Relations 3. Statute of Laborers (Black Plague) 4. Puritan View (idleness as the parent of all vices) 5. Shift from law based on status to one based on contract B. Enforcing the Employee's Promise to Work I. Forced Labor a. English law b. Thirteenth Amendment 2. Forced Labor vis a vis Forced Performance - Role of the Court 3. Prevent working for another employer C. The Employer's Promise of Employment 1. Originally employment was considered of personal nature and employer could not be forced to employ or continue to employ 2. Impact of modern statutes

Jan 1, 1984

The following pages contain valuable information about the products and services offered by our advertisers

Jan 1, 1984

[Mr. Houston T. Aars Carter Mining Co PO8 3007 Gillette, WY 82716 Mr. Jay Abbott Union Supply Co 7458 S Jackson St Littleton. CO 80122 Mr. Ronald H. Achziger Midwest Rbr & Sply Co 6404 E 39th Ave Denver, CO 80207 Mr. Randy Acre Dorchester Coal Co 9350 E Arapahoe Rd Englewood, CO 80112]

Jan 1, 1983

By Dan Jackson

9:00 a.m., June 28, 1983 MR. MORTENSEN: Good morning ladies and gentlemen. Again, it gives me great pleasure to welcome you to another session of the 79th meeting of the Rocky Mountain Coal Mining Institute. The thing again that has always been impressive are the activities that we've had so far. The success in the meetings has been delightfully encouraging to all of our committee people. Please welcome the chairman of the session, Charlie Margolf. MR. MARGOLF: Thank you, Vernal. Good morning, ladies and gentlemen. It would be my privilege to serve as the session chairman this morning. To allow the maximum time for our speakers, I'll turn the microphone over to Bernie Bernstrom who will introduce our first speaker. MR. BERNSTROM: Thank you. As Vernal mentioned, Dan Jackson will be our first speaker. He is the Western Editor of Coal Age Magazine. Dan really doesn't need an introduction to this group. He's belonged to the Rocky Mountain Coal Mining Institute about 25 years. Dan is a native of West Virginia and he's an ex-coal miner. He graduated form West Virginia University as an electrical engineer and worked for Amherst and West Bending Coal prior to employment by Coal Age Magazine. Back in 1972 Coal Age moved him to Denver from New York City. MR. JACKSON: When Vernal Mortensen asked me speak to the members of the Rocky Mountain Coal Mining Institute earlier this year I found it impossible to say no to the guy because of what he has contributed to western coal. Little did 1 know that the subject he had in mind would be entitled, "An Outsider's View of Western Coal." At first I asked myself-I've been associated with the coal industry for some 38 years, 12 years in national operations and 26 years reporting on it. You might say that I've been married to two industries, coal and the business press for 26 years, but today I'll put on my business press hat and try to make an impression of what an outsider might think of western coal. But at the outset, let's get one thing straight: When you say press, whether it's business press, the media or whatever, and you heard some comments yesterday as far as what the media has done .to this industry and there's been some definitions bandied around as to just what an editor is. One of the most recent ones has defined an editor as a person who can talk on any subject with an open mouth. Now that's not my case. Secondly, I don't give long talks. Several years ago I was giving a rather lengthy talk to a group similar to this and it was halfway through the talk when I noticed one guy on my right looking at his watch quite frequently. I didn't mind that too much because all of us do that once in a while, but when he looked at his watch, took it off and shook it, I thought, "My God, better cut short." But for more than a decade western coal has enjoyed substantial annual increases in production from some 30,000,000 tons in 1970 to some 264,000,000 tons in 1981, but 1982 was a different story. We lost about 6,000,000 tons of production in that year. In 1983 it's expected to be a little worse than '82. Coal historically doesn't rebound from a recession as quickly as other industries. It takes about eight to 10 months longer for us to really get moving again and I'm afraid that you'll still have to don your fighting helmets and flack jackets when you go out into the market to sell your product. Western coal, as you know, has problems and al l of them are not going away when the recession ends and they won't go away overnight. I'm sure most of you are aware of what those problems are. Carl Bagge and Jim Harris, along with other speakers, at this meeting have educated us well on those problems and I'm sure you'll hear more from Jim Watt at today's luncheon. If everyone in this room were asked to list three orfourof the most serious problems facing western coal, I'd make book that the total of the answers wouldn't vary by more than 3 to 5%, if that much. But coal is not the only mining segment in the U.S. with problems. Metal and non-metal mining has its share, too. I'd like to step back into the past for a few minutes, if I may, to a time when our problems were just beginning. Since 1979 a third of the nation's mines, including coal, metal and nonmetal have been shut down. The total volume of all mining in the U.S. in that year totaled some $24 billion. Today that figure has dropped some 21 %. The after tax rate on return for mining companies has fallen from 6'/% in 1980 to minus 3% in 1983. But that's really not where our problems began. They began 20 years ago when a profound change began taking place in the U.S. economy. Our economy had been growing at about 2'/-3% annually without exception except for the great depression. Our inflation rate was about I'/%, interest rates were running about 6%, and the federal budget was $77 billion, really great figures compared to today. From 1960 to 1980 the federal budget increased almost 1.000% and taxed paid by individual families increased by 700% during that same period. Despite the huge increases in taxes, the federal deficit kept getting larger and larger year after year and within this 20 year period the national debt climbed to a trillion dollars. Economic progress of this type can't continue indefinitely without some serious consequences. The result of that economy, well, you know what happened and there is a direct relationship of that

Jan 1, 1983

By Thomas Lien

Session 1 - 1 :45 p.m. June 27,1983 Session Chairman: Robert Diederich, RMCMl New Mexico Vice President MR. DIEDERICH: My name is Bob Diederich. I'm the Vice President of the Rocky Mountain Coal Mining Insitute from the state of New Mexico. I'm manager for the Navajo Mine down in Farmington, New Mexico and also project manager for a new mine that we're starling out called the LaPlata Mine in the same area. I'd like to introduce our first speaker, Tom Lien, who is the Director of Engineering, Western Division of AMAX Coal Company. He is responsible for mine engineering, environmental engineering, permitting, reclamation, planning, design and construction plant engineering, geology exploration, quality control and real estate for the western division. He joined AMAX Coal in 1980 as manager of preparation and quality control and was promoted to the present position in August of 1980. He has a BS in geological engineering from the University of Mines. He previously worked for Kennecott Copper Corporation in Hayden, Arizona from 1965 to 1970. He worked as a mine geologist, mill metallurgist, mine production and quality control engineer. Then he also worked for Kaiser Steel Corporation, Eagle Mountain Iron Ore Mine in California, 1970 to 1977. Worked as a process engineer and plant superintendent at that place. Then he was employed by Mountain States Research and Development, Tucson, Arizona, 1977 to 1980. Worked as a senior process engineer and operation superintendent. So without further ado, I'd like to introduce Tom Lien who will talk to us about in-pit coal crushing. MR. LIEN: Thank you. The official title of my paper is actually: "The Potential for In-pit Crushing and Conveying in the Powder River Basin." The Powder River Basin is one of the world's greatest coal fields and will be an important source of energy for centuries to come. About one-eighth of the total coal producing in the United States comes from the Powder River Basin, and 80% of that production came out of Campbell County, Wyoming last year. The growth potential for this region is projected to be enormous. New technology as well as existing technology will make this region competitive in the decades ahead. Understanding the current status of the Powder River Basin, both the mines and the possible methods for changing the means of material movements within the mines is the subject of this paper. Each mine is unique and must be addressed specifically with respect to the application of new and innovative technology. There have been many articles written in the recent mining journals on in-pit crushing and conveying applications, including costs which are very interesting, enlightening and I recommend it to any company considering such installations. To give a general setting, coal production in the United States for 1982 was about 800,000.000 tons. This production came principally from six regions, the Applachian fields of the eastern states where bituminous and anthracite coals have been mined for almost three centuries, the Midwest located in the upper Mississippi Valley are often typified by huge dragline operations of which AMAX Coal has three right now, the Gulf Coast lignites. feeding mine-mouth power plants, the vast bituminous and sub-bituminous departments of the four-comer states of Arizona, New Mexico, Colorado, and Utah and finally the Northern Great Plains lignite fields currently being developed and the sub-bituminous fields of Wyoming and Montana including the Powder River Basin. The Powder River Basin is located in northeastern Wyoming and southeastern Montana. It is the darker brown right in the center of the photograph. It covers about 18,000 square miles. It's about 200 miles north to south and 90 miles east to west. The shallowest coal beds are on the east, north and northwest edges of the basin with deeper coal beds toward the center in the same kind of relationship. There are about one trillion tons of coal in the Powder River Basin, that's the one with 12 zeros after it. A little bit there. It's distributed in many, many seams at varying depths to the current topography. In 1982 about 100,000,000 tons of coal were mined from this basin and 81,000,000 tons came out of Campbell County, Wyoming. The mines that are shown in this picture are basically the mines around the basin edge. The principal area that I'll be talking about is the eastern edge down where it shows Gillette and Campbell County. Geologically the Powder River Basin is the Fort Union formation. The most productive seam is called the Wyodak or Smith-Roland or the Anderson-Canyon, depending upon where you're located. There is about 75 billion tons of coal in the Wyodak of which about 23 billion are considered surface minable today. the coal is Paleocene in age, about 40,000,000 years old. It was once an old Delta region very much like the Mississippi River delta is today. During the 100,000 years that this deposit was formed peat accumulated to a thickness of about 365 feet. It was later buried and turned into sub-bituminous coal. All of the coal mined in the basin is for the electric utility industry. This coal has a typical BTU content of about 8,300 plus or minus about 4,500 BTUs. Sulfur coal is generally less than'/ %, thereby making this coal compliance coal in terms of sulfur dioxide emissions, 1.2 pounds of sulfur dioxide per million

Jan 1, 1983