Coal Age

AUG 2012

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1990-1999 Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Employment 168,625 158,677 153,128 144,183 143,645 132,111 126,451 126,429 122,083 114,489 Fatalities 66 61 55 47 45 47 39 30 29 35 duction of coal futures trading is a response to structural changes in coal and power markets that are expected to increase exposure to price volatility and stimulate demand for price risk manage- ment services. For coal buyers and sell- ers, the contracts offer protection against adverse price swings and serve as bench- marks for price indexing in term supply contracts. By mid-1998, U.S. coal production is expected to hit record levels in each of the next three years rising to 1.14 billion tons in 2000. Coal's share of utility generation is at a high of 57.2% in 1997. That level is expected to remain flat as natural gas increases its share and nuclear pulls back. Mine Safety Improves Dramatically in the 1990s During July 1990, MSHA levies the largest fine to date for a single coal mining acci- dent ($507,996) against Pyro Mining, a subsidiary of Costain Coal, as a result of the September 13, 1989, methane explo- sion that killed 10 employees at its William Station mine in Kentucky. Three coal company executives would eventu- ally be sentenced to prison for the explo- sion in July 1996. The longest sentence imposed (18 months) was for the general superintendent. In an effort to attain his goal of zero fatal- ities by the year 2000, Assistant Secretary of Labor for Mine Safety and Health, William J. Tattersall, makes a concentrated effort to address the problem where it is most preva- lent—the Appalachian region. August 2012 Coal Statistics: 1990-1999 UG (tons) Surface (tons) 425 407 407 351 399 396 410 421 418 391 605 589 590 594 634 637 654 669 700 709 The U.S. Bureau of Mines has also focused its efforts on improving safety and productivity. Multiple research projects are ongoing, including pre-driven longwall recovery rooms, ground support, ventila- tion, detonator testing, dust control, horizon control, fine coal processing, diesel engine testing, etc. During the spring of 1991, a wide spread dust scandal rocks the U.S. coal industry. More than 500 coal operators face nearly $5 million in fines as a result of the Department of Labor citations for tamper- ing with dust samples. The coal industry largely rejected the charges, which revolved around the abnormal white centers (AWC) on the filter media. At a Washington, D.C., press conference Labor Secretary Lynn Martin proposed a civil penalty of $1,000 for each violation and said she would vigor- ously pursue criminal investigations relat- ed to tampering with dust samples. As Martin spoke, an assistant demonstrated three different methods for falsifying the samples. The U.S. Department of Labor requires the use of tamper-resistant sam- pling cassettes to help ensure the integrity of mandatory dust sampling. On July 20, 1993, the Federal Mine Safety and Health Commission issued a decision in the AWC case. The decision concluded the Labor Secretary had failed to carry the burden of proving by prepon- derance of the evidence that AWC on a cit- ed filter establishes that the mine operator intentionally altered the weight of the fil- ter. The decision represents a major victo- ry for the accused companies that have for 100th Anniversary Special Issue East 630 591 589 516 566 544 564 579 571 529 West 399 405 409 429 467 489 500 511 547 571 Total 1,029 996 998 945 1,034 1,033 1,064 1,090 1,118 1,100 more than two years litigated and refused to acquiesce in the Secretary's allegations of tampering. Coal-related fatalities drop to new lows during the decade. Mining fatalities in coal fall to a record low of 45 in 1994, 39 in 1996 and 29 in 1998. Environmental Regulations At the end of the 1980s, the Bush adminis- tration established a new concept for con- trolling emission rates by caps and credits, breaking away from the old command-and- control approach. Under this scheme, utili- ties are granted allowances or credits according to an elaborate formula that takes into account the average sulfur emissions during a three-year period from 1985 through 1987. This creates a nationwide bank of tradable credits whose value will be a function of the value of removing 1 ton of SO2 per year. The CAAA mandates a 10-million-ton cut in SO2 emissions, but allows leeway for emissions trading to reach the goal. The eco- nomics of installing scrubbers against that of using low-sulfur compliance coal will largely depend on the details of the emis- sions trading rules. The first phase effects 111 coal-fired pow- er plants in 21 states, but concentrated most- ly in the Midwest. They must cut their emissions by 1995. The law provides an extension for those that decide to build scrub- bers. The second phase of the law mandates emissions reductions by 200 power plants by 2000. The law requires that NOx be cut by 2 million tpy to be phased in after 1995. www.coalage.com 157

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