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1990-1999 ship. Three federal agencies, the U.S. Bureau of Mines (BoM), the U.S. Geological Survey and the National Biological Survey, are tar- geted for elimination by the Republican "Contract with America." lion brining the appropriations down to $11.9 billion. The subcommittee ear- marked $67 million in closing costs for BoM functions. The legislation abolishes a rela- tively small federal agency that played a huge role in protecting and improving the lives of the nation's miners. Certain health and safety functions of the BoM were trans- ferred to the DoE Fossil Fuels Division, including the Pittsburgh Research Center. Roughly 1,200 mining-related scientists were released just before 1995 holiday sea- son. More budget battles during October 1995 hit OSM hard, MSHA and DoE survive with wounds. The U.S. Bureau of Mines is targeted for elimination by the Republican "Contract with America." *COAL, October 1995 In mid-June, the House Interior Appropriations Subcommittee gave voice approval to a draft of the 1996 Interior Department budget appropriations bill, in which the BoM is eliminated. The subcom- mittee cut the current spending by $1.4 bil- U.S. Producers Consolidate as Oil Companies Exit The 1990s open with Hanson Industries, a British industrial conglomerate, making an offer to buy interests in Peabody Holdings from Eastern, Boeing and Bechtel for $504 million, which would give it the 45% of the company not held by Newmont Mining. Hanson already owns 49% of Newmont, so it would effectively control 70% of Peabody Holdings. Later in the year, Hanson sweet- ens the deal to more than $1.2 billion by pur- chasing Newmont's remaining stake in Peabody for $725 million. Peabody, the largest U.S. coal producer will now be held by a foreign concern. Hanson has a reputation for taking over companies and breaking them up profitably and the transaction stirred speculation that Peabody, which was producing 87 million tons at the time, would face an uncertain future. In November 1990, Hanson cut 275 salaried positions at Peabody. At the same time, BP America sold Old Ben Coal Co. and other U.S. coal properties to Zeigler. In many respects, Old Ben and Zeigler were a lot alike. Both are old-line coal companies whose origins date back to the turn of the century. Both made Illinois their main base of operations. Both have mines represented by the UMWA. There were also some differences. Old Ben adopted longwall mining early and Zeigler preferred room- and-pillar mining, Zeigler was producing 4 million tpy and Old Ben was producing 12 million tpy. No purchase price was dis- closed. In August 1990, Arch Minerals made an offer to buy Blue Diamond Coal. Although August 2012 100th Anniversary Special Issue www.coalage.com 159