January 10, 2011

Primary Energy Recycling Corporation and ArcelorMittal have entered to an amended agreement for their Harbor Coal joint operation. Harbor Coal is run by PERC and uses recycled heat to dry lower-quality coal so that it can be used in ArcelorMittal’s blast furnaces for making steel. This, in turn, reduces the amount of coke, natural gas and fuel oil that must be burnt.

Read article at http://www.prnewswire.com/news-releases/primary-energy-recycling-announces-amendment-to-harbor-coal-agreement-113192324.html

January 10, 2011

A motion by Arch Coal to dismiss a lawsuit about its proposed Otter Creek mine in southern Montana has been denied. The Northern Plains Resource Council, National Wildlife Federation, Sierra Club and Montana Environmental Information Center filed suit against Arch Coal to try and stop the lease that it signed with the state of Montana for $86 million plus future revenues. The plaintiffs claimed that the coal lease needed to be reviewed under the Montana Environmental Policy Act, whereas Arch Coal claims that the MEPA review should occur at the mine permitting stage instead of the coal lease stage.

Read more at http://www.bizjournals.com/stlouis/news/2011/01/10/suit-against-arch-coal-to-proceed.html

The original press release from Northern Plains Resource Council is available at http://www.northernplains.org/judge-allows-otter-creek-lawsuit-to-go-forward/

Posted: January 7, 2011

UNITED STATES DEPARTMENT OF LABOR, MINE SAFETY AND HEALTH ADMINISTRATION, COAL MINE SAFETY AND HEALTH

REPORT OF INVESTIGATION – Underground Coal Mine – Fatal Powered-Haulage Accident on July 1, 2010

Pocahontas Mine
White Buck Coal Company
Rupert, Greenbrier County, West Virginia
I.D. No. 46-09154

This report summarizes the results of MSHA’s investigation into the death of Wilbert (Ray) Starcher, a 60 year old electrician who was killed underground when a shuttle car ran over him and dragged him a significant and unknown distance before the another miner spotted Mr. Starcher’s mine light under the car. Resuscitation efforts were complicated by the victim being face down in the mud yet pinned in such a manner that the car had to be jacked in order to release his body, an effort that took at least fifteen minutes.

According to the report the root causes of the accident were an on-site modification to the shuttle car that significantly limited the field of view of its driver, and a failure to maintain communication between the operators of the shuttle and miners working in its path.

Read report at http://www.msha.gov/FATALS/2010/FTL10c40.asp

January 6, 2011

As part of a deal to permit the construction of the Sunflower Power Plant in western Kansas, the Kansas legislature passed a bill requiring the plant to burn a mix of coal that included coal mined in state. However, now that the plant has been permitted, the Kansas Department of Health and Environment says that a loophole exempts Sunflower from burning any Kansan coal at all, and Sunflower’s permit says they’re only burning coal from the Powder River Basin.

Legislators responsible for the law are not happy. “It does concern me, because that is part of the agreement and it’s why I voted for the bill. This provided jobs down here and I looked at the potential for those jobs… Here we go again, we’re getting treated like the red-headed stepchild” said Democrat Bob Grant, one of the authors of the bill. As for why? Sunflower Electric is partially controlled by the Western Fuels Association which runs the Dry Fork Mine in the Powder River Basin. WFA was unavailable for comment.

Read article at http://www.gpace.org/news/coal-loophole-may-block-sek-revenue/

January 6, 2011

Record flooding in Brisbane, Australia could raise sales prices of coal coming from Wyoming’s Powder River Basin. While news stories have centered on flooding in suburban neighborhoods and damage to crop fields, the waters have also shut down 40 coal mines and damaged the roads and rails necessary to reach them.

Queensland mines produce 37% of the worlds coking coal; the mines being offline will have serious effects on steel production in Asia dependent on those exports and may cause the price of coking coal to raise by as much as 33%.

Read article at http://www.wyomingbusinessreport.com/article.asp?id=55376

January 4, 2011

MSHA has released the final report on their investigation to the death of Phillip Wade Gustafson on June 8, 2010 at the Choctaw Mine in Parrish, Alabama. During the refueling of a surface drill with diesel, an explosion engulfed Gustafson and the drill and in spite of the best efforts of nearby drivers and rescue staff, Gustafson was pronounced dead on arrival at University of Alabama Hospital in Birmingham. Gustafson was a fuel truck driver with the mine for approximately eight years.

The investigating team determined that the most likely cause of the explosion was a small fuel spill while refueling which came into contact with the turbocharger for the drill’s motor. MSHA has recommended an updated protocol which requires drill equipment to be turned off and allowed to cool before refueling.

Read report at http://www.msha.gov/FATALS/2010/FTL10c37.asp

January 4, 2011

The US Army Corps of Engineers has published in the Federal Register its intent to issue a Supplemental Environmental Impact Statement for the proposed Chuitna coal mine 45 miles west of Anchorage, AK. The mine is estimated to contain $1B million tons of recoverable coal. Chuitna received an Environmental Impact Statement in 1996, but was not developed at that time. The SEIS is expected to be published in December 2011.

Read notice at http://origin.www.gpo.gov/fdsys/pkg/FR-2011-01-04/html/2010-33214.htm

January 4, 2011

Julia “Judy” Bonds, a coal-miner’s daughter and tireless activist against mountaintop removal, has died at age 58 after a long battle with cancer. Bonds, a 2003 winner of the Goldman Prize for her grassroots efforts to protect the environment, was proud of her heritage as an Appalachian and fought hard to keep her ancestral home in Marfolk Hollow before being forced out by encroaching coal mining. She was deeply beloved by the environmental community for her tireless efforts, eulogized as a “Hillbilly Moses.”

Bonds died of complications from advanced cancer.

Read more at http://www.huffingtonpost.com/jeff-biggers/thousands-pay-tribute-to_b_804001.html

January 3, 2011

West Virginia has begun spending the $51M it was allocated for mine reclamation in 2010, its share of the $395M allocated by the US Department of Energy for reclamation this year. Up first for bidding is a $600K project to fix seals and improve drainage controls on a mine in Preston County that was abandoned in 1932.

Of the $395M allocated for reclamation by the US DOE in 2010, 38% ($150M) comes from fees based on coal production. The remaining 62% ($245M) comes directly from the US Treasury.

Read article at http://www.phillyburbs.com/news/news_details/article/206/2011/january/03/interior-announces-395m-for-abandoned-mine-lands.html

January 3, 2011

The price of coal from every major mining region rose as to recent cold weather in the country increased demand. Central Appalachian coal was up $1.60 to $72.70/ton, Northern Appalachian coal was up $0.50 to $70.00/ton, and Powder River Basin coal was up $0.20 to $13.60/ton.

Natural gas prices were also up significantly.

Read article at http://www.bloomberg.com/news/2011-01-03/u-s-coal-prices-advance-as-winter-weather-increases-demand.html