Coal Age

MAY 2013

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news continued Foresight deal "would have provided approximately 15% of Vectren's coal purchases for the next five years from an unaffiliated company." Vectren also deferred to 2014 an unspecified amount of coal from Alliance Resource Partners, based in Tulsa, Okla. With the Foresight cancellation and Alliance deferral in 2013, "Vectren South will now be purchasing 100% of its long-term contract coal from Vectren Fuels," a Vectren affiliate that owns the Prosperity and Oaktown No. 1 underground mines in Pike and Knox counties, respectively, Eckert said. In 2014, he added, Vectren "will begin taking approximately 250,000 tons of coal from Alliance and the rest from Vectren Fuels." Vectren South's "overreliance on its affiliate Vectren Fuels for coal is a concern, given Vectren South's history of buying coal from Vectren % 2 0 1 3 A W A R D S CONSOL Energy Earns Virginia Reclamation Award CONSOL Energy was awarded the 2012 Best Completed Deep Mine Award from the Virginia Division of Mined Land Reclamation and the Virginia Mining Association (VMA) for reclamation of its Consolidation Coal Co. Vandyke mine in Tazewell County, Va. The award, presented during the VMA's 42nd annual meeting and awards banquet in Norton, Va., in late March, recognizes CONSOL Energy for its reclamation efforts at the Vandyke mine site, a 51.34-acre site, near Bandy, Va. The site is comprised of approximately 31 acres of undisturbed area and 20 acres of reclaimed land and is located in the sensitive Indian Creek watershed. The creek is home to one of the few remaining populations of the riffleshell mussel, an endangered species. Both mining and reclamation operations followed the approved permit to prevent adverse impacts to water quality in the stream. To be eligible for the award, a site must be recommended by an inspector with the Virginia Department of Mines Minerals and Energy. Tom Mackey was the nominating Department of Mine Land Reclamation inspector. Katharine Fredriksen, CONSOL Energy senior vice president of environmental strategy and regulatory affairs, noted the reclamation award is indicative of CONSOL Energy's commitment to being a good steward of the environment. "We consider being a good steward of the environment as one of the most important obligations we have," Fredriksen said. "This particular project allowed us to positively illustrate how mining and the subsequent reclamation can be conducted in a sensitive watershed, without harm to an endangered species and with an eye toward the successful return of the area to unmanaged forestland. To be honored by the state of Virginia for our efforts further validates our commitment to our core value of compliance." Gary Miller, CONSOL Energy general manager of closed operations, agreed the Vandyke mine reclamation project served as further proof of how mining and environmental stewardship can and do co-exist. "This reclamation project proves once again that the concept of responsible mining, clean coal and the environment can all co-exist," Miller said. The mine, which CONSOL acquired in 2000, operated in the Pocahontas No. 10 seam and used the first cut continuous mining method. Coal removal at the site concluded in November 2006. Reclamation of the site began as the mine portals were sealed and all of the coal handling infrastructure was dismantled and recycled beginning in 2007. A regrading plan was initiated to eliminate the highwall face-up area of the mine site. The land was then returned to unmanaged forestland and native vegetation and trees were planted. A total of 2,000 lb of seed mixture was sown and thereafter, 10,000 tree species were planted including White Pine, Loblolly Pine, Northern Red 20 www.coalage.com Fuels at above-market prices," the consumer agency said. The OUCC also warned the twin moves could cause coal suppliers to be reluctant to bid into future Vectren coal solicitations. Emily Medine, a principal in Energy Ventures Analysis and a veteran coal industry analyst, testified in Vectren's behalf it is not unusual for utilities to cancel contracts when coal specs are not met. She also said the Foresight/Alliance actions would not affect coal supplier participation in future Vectren requests for proposals. The IURC concurred, noting Vectren's coal procurement plan for 2013-14 "satisfies the requirements" of the agency's fueladjustment charge. "Vectren South has opportunities to reopen price negotiations on two contracts and may supplement its contract purchases with spot coal purchases," the commission said. Oak, Pin Oak, Sawtooth Oak, Green Ash, Button Bush, Indigo Bush and Redbud. Arch Coal's Skyline & Sufco Mines Earn Utah Earth Day Awards Arch Coal Inc. announced that Canyon Fuel Co.'s Skyline and Sufco mines have each earned state recognition with a 2013 Earth Day Award for exhibiting outstanding environmental efforts in Utah. The Utah Board of Oil, Gas and Mining (BDOGM) made the selection, and Chairman James Jensen presented the two awards to Skyline and Sufco mines on April 24. "Environmental responsibility is a core value at Arch," said Gene DiClaudio, president of Arch Western Bituminous Group. "We're honored to be recognized by the state for environmental excellence twice in 2013." The 250 employees of Skyline mine were recognized for their outstanding efforts to mitigate the mine's ventilation facility in Winter Quarters Canyon. Jensen said during the ceremony that Skyline mine "went the extra mile" to voluntarily produce a booklet on the historic Winter Quarters Canyon to preserve the rich mining history of the area. This is the second consecutive Earth Day award for Skyline mine. Since 2000, Skyline has been honored with eight Earth Day awards. Skyline's leading environmental performance includes a perfect compliance rate for six consecutive years. The 375 employees of Sufco mine earned high honors for "environmental improvement," according to the BDOGM. Sufco voluntarily developed gravityfed pipelines to distribute scarce water resources for livestock and wildlife. Sufco has maintained a perfect environmental compliance rate since 2006. Sufco has been honored with five Utah Earth Day awards since 2000. Patriot Coal Receives Safety Awards; 2 Units Recognized for Zero Reportable Incidents Patriot Coal Corp. has received three safety awards from the Coal River Council of the Joseph A. Holmes Safety Association. Awards were presented based on the best safety record in 2012 by size and category of operation. Patriot received awards for the following facilities: Wells preparation plant; Hill Fork surface mine in the Corridor G mining complex; and Matewan Tunnel underground coal transportation corridor in the Rocklick mining complex. "We are pleased that Patriot has once again been recognized for exemplary safety performance. Moreover, both the Wells preparation plant and Matewan Tunnel had zero reportable incidents in 2012," said Patriot President and CEO Ben Hatfield. "Our goal is to make Patriot's operations the safest in the coal industry. We thank each of our employees for making safety a priority every day." May 2013

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