Coal Age

JUL 2016

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16 www.coalage.com July 2016 news continued requirements related to coal combustion wastes and byproducts, commonly known as coal ash, from facilities used to produce energy from coal. Approximately 85% of the electricity produced by KU and LG&E; is fueled by coal, much of it produced within the commonwealth. To receive approval from the PSC to recover the environmental compliance costs, an electric utility must submit an application to the commission containing a compliance plan that identifies the particular projects and their associated costs. KU is requesting approval to build seven new projects that will enable the Ghent, Trimble County and Brown plants and three inactive generating stations to comply with environmen- tal regulations. LG&E; is seeking approval to construct three new projects that will allow the Mill Creek and Trimble County sta- tions to reach EPA compliance. Seven of the proposed projects involve closing active surface impoundments and constructing new process water systems "to allow economical coal-fired generation to continue producing electricity," LG&E; and KU said in the settlement also entered into by Kentucky's attorney general and the Kentucky Industrial Utility Customers trade group. KU and LG&E; are proposing to amortize project costs through their environmental surcharge recovery mechanisms for up to 25 years. The compliance plan's costs include what the parties described as a "reasonable return" — 10% — on capital expenditures and reasonable operating costs. According to the settlement, a KU customer using 1,146 kilowatt hours of electric- ity a month would see a bill reduction of $1.96/month while a LG&E; customer using 976 kilowatts a month would pay 44 cents/ month. The settlement also includes cost recovery for surface im- poundment closures at the Green River, Tyrone and Pineville generating stations, totaling about 800 megawatts, all of whom were retired during the past year or so. If the settlement is approved by the PSC, LG&E; and KU in- tend to begin the projects before the end of 2016 and complete them by the end of 2023. Federal Court Invalidates Restrictions in 2007 Minnesota Law A federal appeals court handed an important victory to the coal industry and state of North Dakota in June when it struck down unconstitutional restrictions against coal-burning generation im- posed by a controversial 2007 Minnesota law. But the battle is not over. Mark Dayton, Minnesota's Demo- cratic governor, quickly announced plans to appeal the Eighth U.S. Circuit Court of Appeals ruling. In 2011, North Dakota Attorney General Wayne Stenehjem sued Minnesota, claiming the law violated the Commerce Clause of the U.S. Constitution by restricting transmission of electricity generated in North Dakota and consumed in Minnesota unless it met the state's carbon dioxide emission requirements. Critics of the law argued it effectively would have prevented North Dakota electric utilities from selling power into the Mid- continent Independent System Operator (MISO) market. MISO, based in Carmel, Indiana, is a regional grid operator operating in 15 states. In its decision, the appeals court observed that "electrons flow free- ly without regard to state borders, entirely under MISO's control" and that a person who "imports" electricity "does not know the origin of the 2 0 1 6 a w a r d s % Arch Coal's Thunder Basin Earns Reclamation Honor The Wyoming Department of Environmental Quality (DEQ) has bestowed its The Wyoming Department of Environmental Quality (DEQ) has bestowed its top honor for reclamation excellence, the 2015 State of Wyoming Reclamation Award, to Arch Coal's Thunder Basin Coal Co. The Black Thunder mine, located near Wright, Campbell County, was rec- ognized by the state mine inspector for strong reclamation management and for an innovative use of geographic information systems (GIS) to track, monitor, and advance reclamation and bond release. It accepted the award at the annual Wyoming Mining Association Conven- tion on June 17, where Black Thunder also received praise for achieving the best safety performance among large surface mines in the state (as measured by safety performance among large surface mines in the state (as measured by safety performance among large surface mines in the state (as measured by lost-time incident rate, or LTIR). "These statewide awards recognize the men and women of Thunder Basin for their long-established and unwavering commitment to excellence in safe and responsible mining practices," Arch President and COO Paul Lang said. "This exemplary performance showcases what can be achieved Lang said. "This exemplary performance showcases what can be achieved when sharp focus is placed on our core values of workplace safety and environmental care." Black Thunder, opened in 1977, is one of the largest coal mining complexes in the U.S. It sold 99.5 million tons last year. Alpha Takes Top Honors at Governor's Cup Alpha Maxxim Shared Services' Blue team was the overall winner at the 31st Alpha Maxxim Shared Services' Blue team was the overall winner at the 31st Alpha Maxxim Shared Services' Blue team was the overall winner at the 31st annual Governor's Cup Mine Rescue and Safety Contest held in early June at the University of Virginia's College at Wise. A total of seven teams competed in the event, co-hosted by the Virginia Coal and Energy Alliance (VCEA), Virginia Department of Mines, Minerals and Energy (DMME) and the Mine Safety and Department of Mines, Minerals and Energy (DMME) and the Mine Safety and Health Administration (MSHA). The second place team was Buchanan Minerals' Red team, and third place went to Wellmore Coal Co.'s Red team. Bench first place (BG4) was Josh Rich- ardson of the Buchanan Red Team, and bench first place (240R) was secured by Shannon Moore of Wellmore Coal. Tops in the preshift competition was Billy Sluss of Alpha Maxxim Shared Tops in the preshift competition was Billy Sluss of Alpha Maxxim Shared Services. The teams competing in the event included Alpha Maxxim Shared Services. The teams competing in the event included Alpha Maxxim Shared Services. The teams competing in the event included Alpha Maxxim Shared Services; Arch Lone Mountain Processing-Lone Mountain team; Virginia Small Services; Arch Lone Mountain Processing-Lone Mountain team; Virginia Small Operators Mine Rescue A team; Buchanan Minerals Black team and Red team; Revelation Energy-Blue team; and Wellmore Coal Red team. The contest's spon- sor was National Mine Rescue Association Virginia Post 7. Kentuck Coal Academy Awards Scholarships The Kentucky Coal Academy (KCA) awarded 105 scholarships, valued at $1,000 each, to local high school and technology center students who participated in, each, to local high school and technology center students who participated in, and graduated from, its Junior Coal Academy programs across the state during the 2015-2016 academic year. Students who are members of the Junior Coal Academy, which is operated in partnership with four colleges that are part of the Kentucky Community and in partnership with four colleges that are part of the Kentucky Community and in partnership with four colleges that are part of the Kentucky Community and Technical College System (KCTCS), begin exploring pathways to higher educa- tion during their junior year, and have an expressed interest in mining technol- ogy, engineering or a closely related field. "It's always exciting to give young students the opportunity to discover their "It's always exciting to give young students the opportunity to discover their "It's always exciting to give young students the opportunity to discover their potential, and our program and these scholarships do just that," said Junior Coal Academy Coordinator Barney Judd. "Our graduates learn a variety of skills through Academy Coordinator Barney Judd. "Our graduates learn a variety of skills through our coursework and they can use these scholarships to continue higher education at one of our colleges in a variety of technical areas like automotive technology, at one of our colleges in a variety of technical areas like automotive technology, at one of our colleges in a variety of technical areas like automotive technology, carpentry, diesel mechanics, electricity, HVAC, information technology, mining, carpentry, diesel mechanics, electricity, HVAC, information technology, mining, carpentry, diesel mechanics, electricity, HVAC, information technology, mining, carpentry, diesel mechanics, electricity, HVAC, information technology, mining, welding and more." News Continued on Page 45

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