November 28, 2010

Officials from Cloud Peak Energy, the third largest coal producer in the country, say that their coal exports of 3M tons this year will be almost double those of last year, and that as terminals on the west coast are built, there is a huge potential for future growth in coal sales due to the huge industrial growth in Asia. Currently Cloud Peak exports through the Westshore facility near Vancouver, B.C.; however that port is already at capacity.

Read article at http://billingsgazette.com/business/23a03acc-53be-5ed3-a2fb-ff75909c3f34.html

November 28, 2010

Thirty one cars of a coal train has derailed near Pueblo, Colorado, ripping apart rail cars, scattering coal over more than a mile of tracks, and shutting down the train line for more than a day. A BNSF representative said that there were no injuries, no hazardous materials involved and it was far too early to comment on the cause of the accident.

The train was moving coal from Wyoming to Texas.

Read article at http://www.chieftain.com/news/local/article_a04241f2-fab2-11df-8950-001cc4c03286.html

November 28, 2010

A request from the West Virginia Assessor’s Association to tax coal using the same rules as natural gas and oil has been declined by the Tax Department’s Property Valuation Training and Procedures Commission. Under the current rules for taxing natural gas and oil, both the person who owns the surface above the extraction point (paying taxes on his/her 6% commission) and the producers who own the mining/extraction lease are taxed on the value of the resources that they control; they are taxed on the 94% of the value that is left after paying the 6% royalties.

Coal is different; under the coal rules, only the person holding the surface rights is taxed for coal, and the mining industry is avoiding the tax on the 94% of the value of the holdings that they control. The Tax Department for West Virginia has decided for the moment that it is not interested in the additional revenue, walking away from up to $9.5 billion in revenue.

Read article at http://wvgazette.com/Opinion/OpEdCommentaries/201011280385

November 26, 2010

The state of Wyoming has notified residents of Rock Springs that they will not be paid for damages the residents claim resulted from a mine reclamation effort gone bad. In 2007, a state contractor dropped 25 and 35 ton weights more than 2300 times in an attempt to collapse abandoned mine shafts so that the ground above them could be used for housing. An initial compensation offer to cover the damages was made by the state in 2008, but roundly rejected by most homeowners. A subsequent engineering report claimed that no new offers were appropriate, leaving residents without compensation. Fifteen Homeowners filed a lawsuit against the state in July. That lawsuit is now their only hope.

Read article at http://cbs4denver.com/wireapnewswy/Wyoming.AG.State.2.2024278.html

November 26, 2010

The operators of the Signal Peak mine near Roundup, MT will respond to federal regulators to improve the safety of their mine. Signal Peak was one of 13 mines in the country placed on the “Potential Pattern of Violation” list on November 18 after it amassed 59 “significant and substantial” violations in the year that ended August 31. The most serious violations underground were grouped in four different categories: accumulation of combustible materials including coal dust and loose coal (6), inadequate support of roof to protect against collapse (5), inadequate maintenance of escape routes (4), and improperly maintaining travel routes from the face being mined (3).

In addition, above ground violations included the untimely reporting of a serious injury miner who sustained several broken ribs from an underground air blast, and a separate incident when a mechanic was killed when a truck he was maintaining fell off a jack stand.

Mine officials say their plan is an effort to address these past problems and a sign that the safety of their miners is paramount; “Signal Peak takes very seriously employee safety and we will work with MSHA to address the issues they raised in their letter,” Dawson said. “They are our employees, and we don’t want to have people off work.”

Read article at http://billingsgazette.com/news/state-and-regional/montana/article_262a1fa0-8d7b-52f9-90ed-e6e409179e87.html

November 23, 2010

Property owners near the recently closed Whitetail Kittanning Mine have filed a lawsuit saying that the mine was run in a “reprehensible, intentional and grossly negligent” manner that resulted in surface subsidence damage, contaminated groundwater and released explosive methane gas that seeps into surface buildings.

Alpha Natural Resources closed Whitetail Kittanning after being cited 13 times in one year for letting coal dust accumulate along conveyor belts in explosive quantities. MSHA fined Alpha a total of $763,000 for the citations.

Read article at http://wvgazette.com/ap/ApTopStories/201011230091

November 23, 2010

Rhett Mosley, a 32 year old miner at the Rex Strip #1 mine was killed when he lost control of a truck he was mining as he descended into the mine. Mosley was the 47th coal miner killed in the United States in 2010.

Read article at http://blogs.wvgazette.com/coaltattoo/2010/11/23/another-coal-miner-killed-on-the-job/

On Wednesday, October 27, 2010, 39-year old continuous mining machine helper, with approximately 4 years of mining experience, was killed when he was struck by a loaded shuttle car. The victim was in the No.7 Entry between crosscuts No.37 and No.38, repairing a ventilation curtain. This entry and adjoining crosscuts were being used to gain access to the ratio feeder, which was located in the No.6 Entry.

Read the full Fatalgram at http://www.msha.gov/fatals/2010/fab10c46.asp

23 November, 2010

Arch Coal stock dropped nearly 5 percent on news that its investment rating had been downgraded to by BB&T Capital Markets from a “buy” to “hold” rating. Characterized as a “lack of regional production discipline” by Arch’s PRB holdings, increased production in the West has led to dropping prices.

2011 and 2012 earnings estimates were unaffected.

Read article at http://www.miningweekly.com/article/arch-coal-stock-drops-on-investment-rating-downgrade-2010-11-23

November 23, 2010

Commissioners in Cowlitz County have approved a request to build a port on the Columbia River 40 miles north of Portland, OR that would be used to export up to 5 million tons of coal each year to growing markets in China and other countries in Asia. Ambre Energy, an Australian energy company, plans to ship sub-bituminous coal from the Powder River Basin by rail to the port starting in 2011 or 2012.

The request was opposed by several environmental groups who said that the move counteracted moves by Oregon and Washington to control carbon emissions by shipping those emissions overseas. They are considering appealing the decision.

Read article at http://seattletimes.nwsource.com/html/localnews/2013506174_apwacoalexports2ndldwritethru.html