Coal Age Magazine - For nearly 100 years, Coal Age has been the magazine that readers can trust for guidance and insight on this important industry.
Issue link: https://coal.epubxp.com/i/82345
1960-1969 In the October 1965 issue, Coal Age reported that American Electric Power (AEP) was beginning to act on vast expan- sion plans throughout Appalachia. Designed to boost system generating capacity by 25%, AEP announced commit- ments of $370 million through 1970 to add another 2.3 million kilowatts of new gener- ation capacity in the area. When complet- ed, the various projects would consume an estimated 146 million tons over their life- time. The first expansion project would take place at the Muskingum River plant near Marietta, Ohio, where capacity would expand from 800,000 kW to 1.495 million kW, boosting the generating station's coal burn to more than 4.5 million tons per year. Other expansions, not all of it coal-fired, were also announced in West Virginia, Virginia and elsewhere. In November, the magazine reported on the just announced "marriage of two giants" between Continental Oil Co. (Conoco) and Consol. The oil company's unexpected intent to acquire Consol, "rep- resenting the largest merger of oil and coal " to the introduction of new types. One face in West Virginia employs two ranging shears, working from opposite ends of the face toward the center then back to the ends. Longwall projections were changed at another West Virginia installation to correct a crushing problem in the tail entry. A mine in Utah is now on its fifth panel in coal that could not be mined by other means, and another operator in the Rocky Mountain region has begun operating a 330-ft long wall in a seam that pitches 30 deg. Here and overseas, a great deal of research is unde rway, especially in the development of improved roof-support equipment and automatic control of the face sequence." Surface miners continued to add larger shovels to the fleet. In 1965, shovel capaci- ty grew to 180 cu yd and there was a major breakthrough in truck design with the advent of the 240-ton shuttle unit. This new truck, designed to keep up with ever growing capacity of stripping machines, was undergoing tests in Illinois while more units in the 100-ton class went into service elsewhere. However, surface miners con- largest crude oil producer worldwide. The 101-year-old Consol produced a record of nearly 49 million tons and had recoverable reserves estimated at 5.676 billion tons, "equivalent in Btu's to two-thirds of the total petroleum-liquid reserves in the country." In September, the new Kaiser Steel Corp. York Canyon mine in northeastern New Mexico began making shipments of coking coal to the company's Fontana, Calif., blast furnaces some 1,100 mi away. To provide this service, the Santa Fe Ry. acquired 101 specially-designed 100 ton gondola cars, eight-four of which will move in continuous shuttle service on a rapid turn around schedule from mine to mill and back. At the time, this was the longest planned unit train shipment in the nation—a time when unit trains were com- ing into vogue. Continued growth in electrical generat- ing demand led to the decision to build a $118 million 1 million kW power plant in Washington State using locally mined coal. In February 1967, Coal Age reported the Though production increased another 20 million to 532 million tons, the list of problems confronting bituminous at the end of 1966 certainly was close to if not actually the longest in the industry's history. interests in U.S. history, raised eyebrows both on Wall Street and in industry circles. As to the why of the merger, involving some $620 million, little light was shed by the firm's announcements. Reasons suggested by Wall Street analysts included Consol's need to dispose of its immense cash flow and the importance of its Chrysler Corp. interests. Not to be over looked in the tur- moil over the merger announcement is Consol's 'Project Gasoline' which it is pre- dicted will turn out gasoline from coal at 11c a gallon, including a 'reasonable' profit. This figure is said to be less than half any previous prediction for a coal-liquefying process of this type." The coal industry's drive to decrease prices throughout the decade was rewarded by utility consumers. In 1965, bituminous production increased by approximately 20 million tons year over year, with most of the increase going into the utilities markets that burned a record 245 million tons that year. Production-wise that year, 12 longwall installations were being tested nationwide. "Much of the activity during the year was devoted to equipment evaluation which led 110 www.coalage.com tinued to deal with increasing pressure from federal and state agencies and more companies planned land reclamation as part of their mining operations. The goal "is to restore the mined land to new and continuing usefulness. As acid-water con- trols became stricter, more companies took positive steps to comply with new regulations." While oil companies were intrigued about creating energy synergies with coal producers, Kennecott Copper, one of the leading hard rock mining companies, decided the time was right to buy Peabody Coal. In July 1966, spokespeople for the two companies said discussions were being held. Several months later in October, the Consol/Conoco "Energy" merger was com- pleted. "In explaining the union of the two companies, L. F. McCollum, chairman of Conoco, said it is no longer a question of one source of energy pushing out another source. By 1980 the free world's need for economic sources of fossil energy for elec- tric power, transportation and other basic industries will be doubled." In 1965, the 90- year-old Continental Oil Co. was the eighth 100th Anniversary Special Issue joint venture between the Washington Power Co. and Pacific Power & Light would lead to the opening up of the largely untapped Centralia-Chehalis coalfields. The power plant was designed to initially consume between 4 million and 5 million tons annually—more than the peak year of production—1918—for all the coal mines in Washington combined. Coal reserves to fuel the plant were acquired by the plant's owners and officials from the new partner- ship envisioned a large surface operation eventually providing all fuel needs. Though production increased another 20 million to 532 million tons, "the list of problems confronting bituminous at the end of 1966 certainly was close to if not actually the longest in the industry's histo- ry. Nuclear power suddenly became a major competitor in the year just past—or at least was being increasingly credited with that accomplishment. And 1966 per- haps can be put down as the year in which the drive for better reclamation, control of air and water pollution, regulation of sur- face subsidence, reduction of plant noise, improvement of plant appearance, and so August 2012 "