333.822 Et59hx DEPOSITORY FEB 1 9 1986 UNIVERSITY OF ILLINOIS ^T URBANA-OHAMPAIGN AN HISTORICAL PERSPECTIVE ON ILLINOIS COAL RESOURCES AND PRODUCTION, 1960-1984 Document No. RE-ER-85/03 €NR Illinois Department of Energy and Natural Resources James R. Thompson, Governor Don Etchison, Director Printed by the Authority of the State of Illinois UNIVERSITY- 0¥ ILLINOIS LIBRARY AT URBANA-CHAMPAIGN STACKS Doc. No. RE-ER-85/03 September 1985 AN HISTORICAL PERSPECTIVE ON ILLINOIS COAL RESOURCES AND PRODUCTION, 1960-1984 Prepared by M. Fred Ellis 1 James R. Thompson, Governor Don Etchison, Director State of Illinois Illinois Department of Energy and Natural Resources Prepared under contract with the Illinois Department of Energy and Natural Resources as project number 85/3008 to M. Fred Ellis, Springfield, Illinois. Digitized by the Internet Archive in 2013 http://archive.org/details/historicalperspe8503elli NOTE This report has been reviewed by the Department of Energy and Natural Resources (ENR) and approved for publication. Printed by the Authority of the State of Illinois Date Printed: September 1985 Quantity Printed: 400 One of a series of research publications published since 1975. This series includes the following categories and are color coded as follows: Prior to After Julv. 1982 Julv. 1982 Air Quality - Green Green Water - Blue Blue Environmental Health - White Grey Solid and Hazardous Waste - White Olive Economic Impact Study - Buff Brown Noise Management - Buff Orange Energy - Cherry Red Information Services - Canary Yellow Illinois Department of Energy and Natural Resources Energy and Environmental Affairs Division 325 West Adams Street Springfield, Illinois 62704-1892 (217) 785-2800 li TABLE OF CONTENTS Pa 9 e INTRODUCTION 1 SECTION I: DEMONSTRATED COAL RESOURCES 7 Demonstrated Coal Resources 8 Herrin ( No . 6 ) Coal Seam 21 Springfield ( No . 5 ) Coal Seam 26 Colchester (No. 2) Coal Seam 30 Danville (No. 7) Coal Seam 32 Seelyville Coal Seam 34 Davis and Dekoven Coal Seams 35 Low To Medium Sulfur Coal 3 7 SECTION II: ILLINOIS COAL PRODUCTION 44 Major Coal Producers In Illinois 45 Peabody Coal Company 55 Amax Coal Company 69 Consolidation Coal Company 77 Old Ben Coal Company 84 Monterey Coal Company 93 Arch Of Illinois 100 Freeman United Coal Mining Company 106 Inland Steel Coal Company 115 Page Zeigler Coal Company 121 Sahara Coal Company 128 SECTION III: ILLINOIS COAL DATA 134 Mine Employment And Production 135 Coal Production At The County Level 145 Coal Prices And Revenue 149 Coal Mine Operations And Illinois State Product 159 APPENDIX A 163 Notes 164 Sources 181 TABLES, GRAPHS AND MAPS TABLES page 1-1 Demonstrated Coal Reserve Base 10 1-2 High Development Potential Deep And Surf ace-Minable Resources 15 1-3 Major Coal Seams In Illinois 18 1-4 Production By Coal Seam 20 1-5 Deep-Minable Low and Medium Sulfur Resources 41 2-1 Top Ten Illinois Coal Producers 1960-1984 47 2-2 Top Ten Illinois Coal Producers 1984 50 2-3 Major Illinois Coal Producers 53 3-1 Peabody Coal Company- Mine Characteristics 68 3-2 Amax Coal Company- Mine Characteristics 76 3-3 Consolidation Coal Company- Mine Characteristics 83 3-4 Old Ben Coal Company- Mine Characteristics 92 3-5 Monterey Coal Company- Mine Characteristics 99 3-6 Arch of Illinois- Mine Characteristics 105 3-7 Freeman United Coal Mining Company- Mine Characteristics 114 Page 3-8 Inland Steel Coal Company- Mine Characteristics 120 3-9 Zeigler Coal Company- Mine Characteristics 127 3-10 Sahara Coal Company- Mine Characteristics 133 4-1 Average Weekly Earnings , Hours and Hourly Earnings 138 4-2 Production and Employment 142 5-1 Top Ten Coal Producing Counties 147 5-2 Top Ten Counties- High Potential Resources and Value 148 6-1 Average and Total F.O.B. Mine Value 154 GRAPHS Peabody Coal Company- Annual Coal Production 1960-1984 55 Amax Coal Company- Annual Coal Production 69 Consolidation Coal Company- Annual Coal Production 1960-1984 77 Old Ben Coal Company- Annual Coal Production 1960-1984 84 Monterey Coal Company- Annual Coal Production 1960-1984 93 Arch Of Illinois- Annual Coal Production 1960-1984 100 Page Freeman United Coal Mining Company- Annual Coal Production 1960-1984 106 Inland Steel Coal Company- Annual Coal Production 1960-1984 115 Zeigler Coal Company- Annual Coal Production 1960-1984 121 Sahara Coal Company- Annual Coal Production 1960-1984 128 4-1 Comparison of Weekly Earnings 140 6-1 Average Mine Price 155 6-2 Total Mine Revenue 156 MAPS 1-1 Illinois Basin Coal Field 11 1-2 Herrin ( No . 6 ) Coal Seam 25 1-3 Springfield ( No . 5 ) Coal Seam 29 1-4 Low To Medium Sulfur Coal 43 INTRODUCTION Estimates by the Illinois State Geological Survey identify total mapped coal reserves in Illinois at 181 billion tons, with 79.1 billion tons classified as demonstrated reserves. These demonstrated reserves are located in many coal seams throughout Illinois, but only seven seams have been commercially developed. In comparison to proven oil reserves, Illinois' demonstrated coal reserves are egual to 1,660 quadrillion BTU, or 1.7 times larger than the proven oil reserve BTU of Saudi Arabia and about 3.4 times the BTU of North American proven oil reserves. Currently, Illinois coal producers are mining about 1.3 quads of coal per year. The future of Illinois coal, however, is questionable because of the uncertainity with electric utility growth, nuclear power and acid rain. Electric ,. utilities consume approximately 85 percent of Illinois coal annually. With this large demand by electric utilities, Illinois coal sales are being affected by the minimal growth in this industry. Additional coal-fired generating capacity has been posponed or canceled by many electric utilities. Moreover, the increase in nuclear power generation in Illinois will have an impact on electricity generated from present day coal-fired capacity. Economic dispatching will force utilities to use their nuclear capacity first, supplemented by coal capacity to meet additional demand, thus causing utilities to consume less coal. Finally, at the federal level, greater public support for sulfur dioxide (S02) control may impact the future of Illinois high sulfur coal sales. In 1980, U.S. S02 emissions by the electric utility industry were about 16 million tons. Legislation introduced in the U.S. Congress is attempting to reduce this amount by 8-12 million tons annually. Various studies have been performed on the economic impact of such legislation to the Illinois coal industry. These analyses tend to show a reduction in Illinois coal sales of 10 to 90 percent, depending on the type of strategy adopted. Because of environmental constraints on the use of high sulfur coal, Illinois electric utilities have installed four scrubbers, totaling 1,306 megawatts of installed capacity and representing about six percent of Illinois coal-fired capacity. Installed capital costs for these four units range from $121 to $264 per kilowatt. According to published data by the U.S. Department of Energy, operation and maintenance costs for these four units have averaged about 10 mills per kilowatt hour. Moreover, these systems are reporting high reliability and dependability. Data published by the U.S. Environmental Protection Agency (U.S. EPA) indicate the systems are removing 90 percent of S02, with no major scrubber problems. Dependability, through the years, according to U.S. EPA data, has increased from less than 30 percent to more than 85 percent. Further, the Illinois coal industry cleaned more than 95 percent of its coal in 1984, utilizing special preparation plants. These plants remove approximately one-third of the sulfur, as well as other impurities, at a cost of $9 to $12 per ton. For the end-user, coal cleaning decreases the guantity of sulfur and ash; increases the heating value per pound of coal; reduces transportation costs; improves boiler efficiency and reliability; and decreases boiler maintenance. Further, the annual cost of coal cleaning is less than the cost of scrubbers. Many utilities are using a combination of coal cleaning and scrubbing to remove sulfur and lower the cost of meeting environmental guidelines . With the concern over the future use of Illinois coal, the following report was written as a resource document on Illinois coal resources and production. In researching Illinois coal, it was found that no individual report contains information on Illinois coal resources; Illinois coal producers; mine employment, production and revenue; coal prices; and quality and quantity of mine resources from an historical perspective. The following study is intended to furnish the reader with information on Illinois coal resources and the major coal producers from a twenty-five year and 1984 perspective. This data is important since a majority of Illinois coal production is controlled by a relatively small group of companies. The study also examines who the major Illinois coal producers have been since 1960 and their respective coal production from year-to-year. The report is broken into three sections . Section I examines the coal resources of the Illinois Basin Coal Field, followed by a more thorough description of the seven major coal seams in Illinois. The discussion of the seven major seams will cover the development potential of the coal resource, location of economic deposits, type of mining, and quality and quantity of the coal. Section II discusses Illinois coal production from a perspective of the previous twenty-five years and the most recent year (1984). Detail is given to the ownership of the major coal producers in Illinois; a brief history of the major coal producers; coal production by company; characteristics of current active mines and coal characteristics by mine. Section III examines historical coal prices, historical mine employment, earnings and mine production, and the economic impact of coal mining at the State and county level. Data furnished in this report were gathered from public documents at the State and Federal level. Letters of inguiry were sent to the major coal producers in Illinois for additional or more precise data concerning individual companies. In most cases, the coal companies did not respond, or responded that the information was considered proprietary. Whenever conflicting data were found, third sources were compared to gather a general concensus of the data. In some cases, data used are approximate, since there are many variables to be considered. For example, under annual mine production capacity, variables such as man-hours per week and number of shifts per day will have an impact on these figures. In most cases, coal producers considered annual mine capacity and remaining coal reserves as confidential and would not verify the numbers used in this report. Also, the mine value of the coal used in Table 3-1 through 3-10 were derived from monthly fuel costs and reflect end-user cost minus transportation costs. Finally, the reader should refer to the "Notes" whenever cited in the report. The additional information should help the reader with any questions they may have. Primary sources used in this report were gathered from the U.S. Department of Energy; Illinois Department of Energy and Natural Resources (including the Illinois State Geological Survey) ; Illinois Department of Mines and Minerals; Illinois Energy Resources Commission; Moody's Industrial Manual; Keystone's 1984 Coal Mine Directory and other private sources. SECTION I: DEMONSTRATED COAL RESOURCES Demonstrated Coal Resources Herrin (No. 6) Coal Seam Springfield (No. 5) Coal Seam Colchester (No. 2) Coal Seam Danville (No. 7) Coal Seam Seelyville Coal Seam Davis and Dekoven Coal Seams Low To Medium Sulfur Content 8 DEMONSTRATED COAL RESOURCES The U.S. Department of Energy's Energy Information Administration (EIA) has compiled the demonstrated reserve base (DRB) from a variety of sources, mainly U.S. and State mining agency reports, and other mineral reports. EIA defines the DRB as: "a collective term for the sum of coal in both measured and indicated resource categories which represents 100 percent of the coal. Included are: beds of bituminous and anthracite coal 28 or more inches thick and beds of subbituminous coal 60 or more inches thick that occur at depths to 1,000 feet, and thinner or deeper beds that are presently being mined commercially. The demonstrated reserve base represents that portion of the identified coal resource from which reserves are calculated. Generally, the estimated recovery factor for deep-mines and surface-mines are 50 and 80 percent, respectively . " As of January 1, 1983, the Illinois Basin Coal Field (Basin) in Illinois, southwestern Indiana and western Kentucky contained a DRB of approximately 110 billion tons of bituminous coal. According to EIA, Illinois' portion of this total is over two-thirds (79.1 billion tons), or equivalent to about one-third (30.9%) of U.S. DRB of bituminous coal. Until recently, Illinois had ranked third in total coal reserves, but in 1982 and 1983 the DRB of Illinois was increased by EIA to reflect newly published data from the Illinois State Geological Survey (Survey) on surface and deep coal resources. With these adjustments, Illinois has replaced Wyoming as the state with the second largest DRB. Western Kentucky is second in Basin coal reserves with 20.9 billion tons (18.9% of Basin and 8.2% of U.S. bituminous DRB) . This places western Kentucky fourth in U.S. bituminous coal DRB. For Indiana, EIA reports a DRB of 10.5 billion tons, representing 9.5 percent of Basin and 4.1 percent of U.S. bituminous coal DRB. Indiana ranks third in Basin reserves and seventh in U.S. bituminous reserves. Table 1-1 lists the DRB for the top eleven states or portion of state, according to rank of coal. The eleven states included in the table account for 91.6 percent of U.S. DRB. Eastern and western Kentucky are considered separately because eastern Kentucky is part of the Appalachian Basin, where much of the coal is lower in sulfur than the coal of western Kentucky. Map 1-1 geographically shows the Illinois Basin Coal Field. The Illinois Basin represents a portion of the Interior Region which comprises: Arkansas; Illinois; Indiana; western M ii t-3 o z H Nl o o PJ S 13 s £ H X ii w n O i-3 o Z w o X > PI M PJ < r c II H c ii ►3 X 50 a X r H to to Z to o r z II > l-J it > pj *3 H > o O "3 H Z H z H >3 H H3 fj ii r 50 X > to 50 PJ PJ to H z > II PJ ii z > 50 50 N< < z o z II *^ • • ii ii to ►3 > > a o z z r < H 33 Cj H to > II ii > so c ii > « 5* 3? > Cj II pi * ii Hi o PJ PJ z H II > to ii pj »-3 Z Z H Z II • ii ii to > h3 C H > a H > II II o ii n o II ii x * II 73 ii K K II 0) ii II n ii £*. H 1 II re ii CO *» M H 1 H* I- 1 H NJ UJ UJ a> ^4 NJ II £ 3 ii VO o VO O UJ -J 00 VO o o VO vo VO o II o (D ii % •o II H 3 ii Ul v© VO J* 00 I- 1 00 UJ os o H- Ul o UJ II > rt- it H" o Ul 00 H» VO VO H> CO UJ O Ol Ul H II r ii UJ a\ S3 •*. 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Ul II O ii » II z ii h- ■te VO 00 h-» -J II M ii ts) O Ul H" VO en il ■-3 ii O t-> N u» o j> ii PJ ii ii OT 11 MAP 1-1 ILLINOIS BASIN COAL FIELD ILLINOIS, SOUTHWESTERN INDIANA AND WESTERN KENTUCKY SOURCE: ILLINOIS STATE GEOLOGICAL SURVEY 12 Kentucky; Iowa; Kansas; Missouri; Oklahoma and Texas. Illinois' DRB of bituminous coal of 79.1 billion tons is located in approximately 37 thousand square miles of Illinois, representing 65 percent of the state. It is important to remember that the Survey has for many years followed a coal resource/reserve classification that differs somewhat from that of EIA. EIA interprets Survey published data in terms of its own classification scheme; this is the reason why resource/reserve numbers by the two agencies differ. Also, the Survey refers to coal in the ground as resources and does not use the term "demonstrated reserve base." Since most of the following data was collected from Survey publications , the term "resource" will be used, unless another source and definition are cited. Bituminous coal is the most common coal, accounting for about 50.6 percent of U.S. DRB. The EIA defines bituminous coal as a "dense, black coal with an ignition temperature of 700-800 degrees Fahrenheit." Bituminous coal is primarily used for generating electricity, making coke and space heating. Within the bituminous rank are five groups: "low-volatile"; "medium-volatile"; "high-volatile A"; "high-volatile B" and "high-volatile C" . Illinois coal is classified as a high-volatile 13 bituminous coal. According to the Survey, characteristics of Illinois coal are: -heating value of 9,600 to 13,000 BTU per pound; -ash content of 10% to 15%; -moisture content of 3% to 20%; -volatile matter of 30% to 45%; -sulfur content of 1% to 5%, overall averaging 3.2%; and -chlorine content of .01% to .8%. Of the 181 billion tons of mapped coal resources the Survey has identified in Illinois, 161 billion tons are classified as deep-minable resources (88.8% of total resources). Of this total, about 44 billion tons or 87.8 percent of total resources are considered to have a high development potential. [Note 1]. The Survey defines deep-minable high development resources as : "coal deposits that are greater than 4.5 feet thick with less than than 400 feet of overburden, or more than 5.5 feet thick but less than 1,000 feet deep. " Deep-minable resources with a high development potential are located in 67 counties, with the top ten counties accounting for 60.3 percent of this total. The top ten counties with high potential deep-minable resources appear in Table 1-2. 14 Illinois ' in-place resources of surf ace-minable coal total approximately 20.4 billion tons. These resources are greater than 1.5 feet thick with no more than 150 feet of overburden. These resources are located in 52 counties, but mostly in western and southern Illinois. The Survey estimates that 6.1 billion tons have a high development potential. High development potential resources are those coal deposits that have characteristics similar to present-day surface-mine operations. High potential surf ace-minable resources are located in 38 counties, with the top ten counties totaling 4.1 billion tons, or 66.9 percent of this total. Table 1-2 lists the top ten counties with high development surf ace-minable resources, their respective high development potential resources and percent of total high development potential surf ace-minable resources. Minable coal seams of Illinois were deposited during the Pennsylvanian period, some 280-320 million years ago. These deposits occur in what is known as the "Eastern Interior Region" or "Illinois Basin Coal Field." There are more than eighty coal seams in Illinois, of which approximately twenty-two major and minor coal seams have been mined, or have the potential for development. According to the Survey, the coal deposits are mostly covered by drift, which consists of "unconsolidated 15 TABLE 1-2 HIGH DEVELOPMENT POTENTIAL DEEP AND SURFACE-MINABLE RESOURCES MILLIONS OF TONS SURFACE MINABLE RESOURCES % COUNTY TONS OF TOTAL ========== ========== :=========: FULTON 672 11.0 GREENE 226 3.7 HENRY 201 3.3 KNOX 520 8.5 MADISON 252 4.1 PEORIA 642 10.5 PERRY 650 10.7 RANDOLPH 223 3.7 ST. CLAIR 427 7.0 STARK 268 4.4 DEEP MINABLE RESOURCES TONS % OF TOTAL OTHER 2,011 33.1 CHRISTIAN CLINTON FAYETTE LOGAN MACOUPIN MONTGOMERY SANGAMON SHELBY VERMILION WASHINGTON 3,481 7.9 2,150 4.9 1,992 4.5 1,977 4.5 2,966 6.8 3,466 7.9 3,316 7.6 1,584 3.6 1,998 4.6 3,503 8.0 OTHER 17,416 39.7 TOTAL 6,092 100.0 43,849 100.0 SOURCE: Illinois State Geological Survey. 16 materials left by the glaciers during the Pleistocene Epoch: the time of the great ice ages." The drift includes clay, sand, gravel, limestone, boulders and silt, and measures from several feet to hundreds of feet in thickness . Of the total coal deposits in Illinois, approximately 95 percent is contained in the "middle Pennsylvanian" known as the Kewanee Group. The two major seams found in this group are the Springfield (No. 5) and Herrin ( No . 6 ) coals. [Note 2]. The major coal seams in Illinois are named after towns in or near the area of primary occurence or mining activity. Many have been numbered based on age of deposit or lowest coal. The Survey ranks the seven major coal seams, from oldest to youngest as: Davis; Dekoven; Seelyville; Colchester (No.2); Springfield ( No . 5 ) , Herrin ( No . 6 ) and Danville (No. 7) . [Note 3] . Of the twenty-two major and minor coal seams, only seven have a high potential commercial development. The seven, based on total coal resources are: Herrin (No. 6); Springfield ( No . 5 ) ; Colchester (No.2); Danville (No. 7); Seelyville; Davis and Dekoven. Table 1-3 lists the major coal seams; location of economic deposits; coal thickness; depth of overburden; sulfur content; resources and type of mining. Table 1-4 17 lists the major coal seams and their respective coal production and percent of total production, for the period 1960-1984. A narrative description of the major coal seams follows. 18 b £2 85 Z S 9 $3 CO CM Set 1 • ^ N Q r**i *"*? ZC b b 1 ■■£<** uS • CM t s CM 19 CQ 3 N) i£ u> CJ bi^ S & 2! & Ci j ^ \j lj ^ h b k) ^ m ^ k> m In jk it JA'X6.AAikUJ>UlHG500AHWUlUlUiO uiuiaoHLn>]HOiouuifruuii^o«oas^ouiHhdkovoNO b ^ h b b h b i^ vo » *>j b ^ ^ ^ b b h k) ">i Ln 'a 'sj ik iCkUi^uijki>ji7ivi7i7ir> «j • ••••••••••Qj • H- 1 NJMWU)*Jk^UW*kt\)N)HNji£ b b b vo va b b b b b b In *>i (o u b h b w b b !o * !o !j b HHHlS)N)rON)N)lS)IS)NlSJrv)N)POHHHHHHHHHHife "^ b b ^ b ^ b b b b a b f>j b kj b b b kj !^ ^ kj j* b i* ^ h p g g g p p » a p g s a p & a & ft p a a & p s & S b b b '-c* In n P-* In bo b b en b b b b b b b In j* b h h b 03 b b b b — J- b b b b b b b b b In b b b b b b b b H b N> £fr 48 Dynamics Corporation increased their ownership of United Electric (now Freeman United Coal Mining Company) to 100 percent and Truax Traer was purchased by Consolidation Coal Company. Table 2-1 further shows that the top ten coal producers, for the twenty-five year period of this study, have generally increased their overall production performance. In 1960, the top ten producing companies accounted for 70.3 percent of total Illinois coal production, while in 1968 the percentage of coal production by the top ten companies peaked at 94.7 percent. Since then, the percentage of total Illinois production by those coal producers listed have stayed relatively the same at about 80 percent. It must be remembered not to compare Table 2-1 with Table 2-2. Table 2-1 is a comparative analysis of the major coal producers from a twenty-five year coal production perspective. Table 2-2 lists the top ten coal producers operating in 1984. The companies listed in Table 2-1 are not identical to the coal producing companies listed in Table 2-2. In 1984 there were 24 coal companies operating the 53 mines in Illinois. Coal production totaled 65.3 49 million tons, valued at $2 billion. The top four coal producers accounted for 34.5 million tons (52.8% of Illinois coal production), while the top ten companies produced 59 million tons (90.4%). The largest coal producer in 1984, continued to be Peabody Coal Company with 17.7 percent of total Illinois coal production, followed by Amax Coal Company at 12.1 percent, Consolidation Coal Company at 12 percent and Old Ben Coal Company with 11 percent. Table 2-2 lists the top ten Illinois coal producers in 1984 by: holding company; Illinois coal production and percent of production; and U.S. rank based on total U.S. coal production. For example, Peabody Coal Company was the largest U.S. coal producer (64.4 million tons) and largest Illinois coal producer (11.6 million tons), representing 7.3 percent of U.S. coal production and 17.7 percent of Illinois coal production. Overall, the top ten coal companies operating in Illinois produced 214.5 million tons nationally, or 24.2 percent of U.S. coal production. Of the top ten Illinois coal producing companies in 1984, six were among the top 25 U.S. coal producing companies. As shown in Table 2-2, seven of the firms are mining coal in more than one state, while three firms are producing only in Illinois. This can be seen by comparing Illinois coal production and U.S. coal production to see en z ii ►3 o 7* X H C> > PJ cn o > 73 II ^ O • ii O i-3 w o z PJ 73 X h3 c 3 cn II c > ii h3 3 Z G r z n X > H3 > > II r 73 • ii > 1 W W cn > PJ z o Z C X a II a O ii r 73 r H z 73 z a z «> o il H w a ii r o a > 3 • h3 a II Z tfl (D ii n H Z r H M HC II a 3 ii o cn cn z o z II H ii > z ►3 o PJ H O a II n H ft ii r o > PJ >< 73 r c o II o M (5 ii O h3 PJ z > r Ii 3 H- CO ii t» > • r > r o D II T3 3 ii » r a 3 X Hi II > a ii o > o H H z II Z H- O) ii o cn O f o a II K CO ft 01 ii ii c ° cn II II a ii IS II CD 3 ii 33 9? 03 H *i > 3 o n > tj II n -0 ii en w pj Z 33 73 O r c 3 pj II o 0) ft ii Z H r PJ O z a z > > II > *1 it w cn > PJ X r3 cn X 03 II r ft 0! ii r r z 3 PJ a o O II 3 < it r w D > o 73 pj r o c II o (D 0) ii H 33 Z «fl PJ z o K II "0 3 H- it cn cn hC n > II PJ ft H ii n H C H o o r n II 73 ►3 0) ii o o PJ z C" 1 O o > o II > O ff ii o > PJ H r o > r > II h3 13 i-h H ii > r r •- M > r r II O ro ii r PJ z r II 73 M 3 * ii o a o II O H- ii o H II 3 ii > cn II H (0 ii r II r ca ii ii cr> m II II H3 r H 1-3 0) ii cn cn cn cn •«j -o 'j H- II 73 H z > 3 ii II o r O X a ii ro Ul *J OS CO a OS as H- 00 <0 cn II a r HHT ii 00 i— OH © tn V0 03 H> © ftt V0 to cn II O cn > ro 1 ii H* *» to 03 cn •O 03 o H» to £t © II z r 0> ii II H- ii II T3 CO ii II 73 ^ ii H II O ii O t- 4 h- H H il T3 > O 0) ii O <0 M *» cn 00 00 00 H to ro •o II 73 G 3 ii II O H n a ii ii o OS *J H H •u OS ■o O o H ^i II II O r pj 73 n ii II cn ii II 01 ii II H ii ii 03 as II II > ii 10 «j H to H *». Ji as II T3 £J IE a cn m ro u> cn H-» U) Jb <3\ M £± II 73 a> II II O • II h* o -J o u» •u O to 0% » to as «j o ■o O o O O O o II G II in 4fc JJt O V0 OS o o o o o O II n cn II II i-3 • II U1 o 03 <7\ cn A» o o o o o a II M II *» o © cn <0 00 o o o o o o II o II II II CO o ro 03 cn ^J o o o o o o II II II z II II II H> II T* II O ■^1 II "T3 II o 1 Ul H CO H cn «b -j II 73 C II II O • II o 10 CO U) ■lb as to OS OS UA -o u> II a cn II II • II II II II II Z Z z z II 73 G II • • • • ro H II > • II > > 3> 3> >» -J Ul CO CO (-• II z cn II II • • • • II II 7? • OS 51 if there is a difference in production. Table 2-2 also shows the market power these ten coal producers have in Illinois. Since these ten firms account for about 25 percent of U.S. coal production, they also theoretically have some level of market dominance at the national level. The six companies with a national ranking, total 201.3 million tons of U.S. coal production, of which their Illinois coal production represented 23.1 percent of their overall U.S. production. All of the major coal companies and their respective holding companies operating in Illinois are market classified as either: consortium; diversified; coal; petroleum; non-ferrous metals; iron and steel; aircraft and missiles; or, gas companies and systems. Of the major coal companies operating in Illinois , eight have holding companies headguartered outside of Illinois, while two have headguarters within the State. Table 2-3 shows the name of the coal company; holding company ownership, location and percent of ownership; state(s) where coal production takes place and holding company market classification. A description of coal production, mine characteristics , coal characteristics , employment and brief history of most of the major coal companies 52 operating in Illinois follows 99* k & « 8 • • fl • « O 00 00 nJ>] 8 <* 3 £S a 8 5 S a H ^ n frS 55 24 ANNUAL COAL PRODUCTION — i — i i i i i i i 6 8 6 6 2 4 6 6 V V V V V 2 4 6 8 YEAR i i i i i 8 8 8 2 4 PEABODY COAL COMPANY 56 PEABODY COAL COMPANY Peabody Coal Company was incorporated in Illinois in 1890. On May 28, 1928, Peabody was re-incorporated by consolidation of Peabody Coal Company and other coal companies. This consolidation was with other Illinois coal companies owned by Commonwealth Edison Company, Public Service Company of Northern Illinois and Middle West Utilities. In return, Peabody was given long-term coal contracts with each of these utilities. In July of 1955, Peabody, the eighth largest U.S. coal producer, merged with Sinclair Coal, the third largest U.S. coal producer . Peabody was sold to Kennecott Copper Corporation on March 28, 1968. Eight years later, the Federal Trade Commission ruled that Kennecott 's ownership of Peabody was in violation of the Clayton Anti-Trust Act. On June 30, 1977, Peabody Holding Company, Incorporated purchased Peabody Coal Company for $1.1 billion. Peabody has been the largest U.S. coal producer since 1970, with sales in 1984 of $1.5 billion and assets totaling $1.7 billion. Peabody Holding Company, Incorporated is jointly owned by: Newmont Mining Company 30.7%, The Williams 57 Company 30.7%; Bechtel Corporation 16.8%; Boeing Company 16.8%; and The Equitable Life Assurance Society 5%. Newmont Mining Company of New York is the 362nd largest U.S. industrial corporation with 1984 sales totaling $.8 billion and assets of $2.1 billion. Boeing Corporation headquartered in Seattle, Washington was the 29th largest U.S. industrial corporation in 1984 with $10.4 billion in sales and $8.5 billion in assets. Based on assets, Equitable Life Assurance Society of New York was the third largest U.S. insurance company with $44.5 billion. The Williams Companies headquartered in Tulsa, Oklahoma had 1983 revenues totaling $2.2 billion and $1 billion in assets . No figures were available for Bechtel Corporation which is located in San Francisco, California. Peabody Coal Company's corporate office is located in St. Louis, Missouri. Additionally, Peabody has five separate geographical divisons responsible for the production of coal and support activities. The Arizona Division is located in Flagstaff, Arizona and responsible for coal operations in Arizona; the Eastern Division is in Henderson, Kentucky and responsible for coal operations in western Kentucky and Ohio; the Illinois Division is located at Fairview Heights, Illinois and manages coal operations in Illinois, West Virginia, Oklahoma and Missouri; the Indiana Division at Evansville, Indiana 58 oversees the activities in west-central and southern Indiana; and the Rocky Mountain Division in Denver, Colorado manages coal production in Colorado and Montana. Peabody Coal Company has coal reserves and production in Arizona, Colorado, Illinois, Indiana, Kentucky, Missouri, Montana, Ohio, Oklahoma and West Virginia. Reserves total approximately 8.6 billion tons which Peabody classifies as "economically recoverable coal, enough to last the company 142 years at present mining rates." Approximately 50 percent of these reserves are recoverable by surface-mine operations and the remaining 50 percent by deep-mine operations. Within the Illinois Coal Field Basin, reserves are estimated at 2.3 billion tons in Illinois; .8 billion tons in Kentucky and .6 billion tons in Indiana. Keystone's 1984 Coal Mine Directory ranks Peabody fifth in privately held coal reserves. [Note 6]. Peabody has been the largest coal producer in the United States since 1970, and for much longer, the largest coal producer in Illinois. U.S. coal production in 1984 totaled 64.4 million tons or 7.3 percent of U.S. coal production. According to Peabody data, approximately 70 percent of this production was from 22 surface-mines and 30 percent from 14 underground-mines. Almost 97 percent 59 of its production is committed to long term contracts. Ninety-four percent of production is sold to 55 electric utilities in 16 states, while the remaining 6 percent is sold to industry. Peabody's coal production in Illinois since 1960, totaled 330.9 million tons or 23.6 percent of all Illinois coal production. Peabody's coal production from 16 mines peaked in 1968 at 20.7 million tons, representing 33.2 percent of Illinois coal production. Since that time, the tonnage and percent of total Illinois coal production have decreased to their present level of 11.4 million tons and 17.7 percent of Illinois coal production. This is due to Peabody Coal Company selling five coal operations in 1970 to Midland Coal Company, a division of Asarco. Currently, Peabody's Illinois coal production is from 5 deep-mines and 3 surface-mines, with a mine labor force of 2,715. The 2,715 mine employees of Peabody represented 18.3 percent of total Illinois mine employment, for 1984. Average tons of production per deep-mine employee per year was 4,035, or 13.7 tons per man-day, while surface-mine employees averaged 5,564 tons per year, or 19 tons per man-day. Statewide, from all Illinois coal production in 1984, the average tons of production per mine employee for deep-mines was 3,679/year, or 13.7 tons per man-day. 60 Surface-mines averaged 6,423 tons/year, or 20.3 tons per man-day. Table 3-1 shows the characteristics of the Illinois mines in the Peabody system. Included in the Table are: the 8 active mines; 1984 coal production; mine employment; 1984 mine value in millions of dollars; coal seam member from which the coal is extracted; depth in feet from surface to coal seam; thickness of coal seam in feet and inches; % sulfur; % moisture; % ash; % volatile matter; % fixed carbon and BTU ' s per pound of coal. A description of Peabody' s Illinois mines operating in 1984 follows. Mine No. 10 is a deep-mine located in Christian County at Pawnee. No. 10 has an annual mine capacity of approximately 4 million tons, with reserves of 160 million tons. [Note 7]. In 1984, it was the largest Illinois mine in the Peabody system, the second largest Illinois underground mine and the fourth largest producing mine in Illinois. Of the more than 3,400 coal mines nationally, No.lO's coal production ranked in the top sixty. Mine No.lO's production in 1984 of 3 million tons, accounted for 26.1 percent of Peabody ' s Illinois coal production, 61 while No.lO's employment represented 36.8 percent of Peabody's Illinois mine employment. These percentage differences are mainly because of deep-mines being a more labor intensive industry than surface-mines . The production per mine employee in 1984 averaged 3,010 tons, or 9.5 tons per man-day. [Note 8]. Mine No. 10 opened in 1952, with production through 1984 of 147.5 million tons; since 1960 — 124.1 million tons. The mine utilizes a room and pillar coal removal technigue (a portion of the coal is left as pillars to support the cavity and prevent surface subsidence). This process allows for approximately 50 percent of the total coal resource to be removed. One hundred percent of the coal is washed on-site utilizing a "Baum Type Jig Plant." [Note 9]. Mine No. 10 is a mine-mouth which supplies Commonwealth Edison Company's Kincaid Station, under long-term contract. The coal is transported approximately 1 mile via conveyor belt. Baldwin is a deep-mine located in Randolph County at Marissa, with an annual production capacity of 2.2 million tons. Coal production for 1984 totaled approximately 2.2 million tons (100% of mine capacity); an increase of .2 million tons from 1983. This mine production represented 19.1 percent of Peabody's Illinois coal production, while 62 Baldwin's mine employment accounted for 16.2 percent of Peabody ' s Illinois mine employment. In 1984, the average production per mine employee was 5,027 tons per year, or 18.4 tons per man-day. Pillar and room coal removal is utilized. Baldwin is the second largest mine in Peabody' s Illinois system and the thirteenth largest Illinois mine. The mine opened in 1972 and has mined 20.4 million tons of coal through 1984. The Baldwin, River King No . 6 and Marissa mines use a central coal preparation facility. The Randolph Preparation Plant is one of the most sophisticated and productive preparation plants in the United States. Most of the cleaned coal is transported approximately three miles by rail to Illinois Power Company's Baldwin station, or barged to Associated Electric Co-op in Missouri, under long-term contracts. Peabody Coal Company Railroad transported 1.8 million tons and Kaskaskia River Port Railroad moved .4 million tons in 1984. River King Underground No . 1 is located in St. Clair County at Freeburg. No.l has an annual production capacity of almost 1.3 million tons. Coal production of 1.6 million tons in 1984 represented 123 percent of this capacity. (In the short-run, a mine can produce over 100 percent capacity by adding additional production in-puts such as employees, number of shifts, etc. As shown in 63 Note 7, this figure is not absolute and can vary over time). No.l's coal production accounted for 13.9 percent of Peabody's Illinois coal production, while No.l's employment represented 12 percent of Peabody's Illinois mine employment. The average tons of production per mine employee per year was 4,911, or 20.8 tons per man-day in 1984. Coal is removed utilizing pillar and room technique. Production began in 1970 with to-date production of 22.6 million tons. Transportation of the coal is by rail to Dairyland Power Co-op in Wisconsin and Interstate Power Company in Iowa, under long-term contract. Illinois Central Gulf Railroad transported 1.5 million tons in 1984. Marissa is a deep-mine located in Washington County at Marissa. Annual mine capacity is approximately 1 million tons, with 1.5 million tons produced in 1984. This coal production represented an increase of 32.8 percent over 1983. Employment at this mine, represented 7.6 percent of Peabody's Illinois employment, while its output accounted for 12.8 percent of Peabody's Illinois production. Average tons of production per mine employee totaled 7,160 in 1984, or 25.6 tons per man-day. Coal is removed using pillar and room technique. The mine opened in 1979 with production through 1984 of 4.9 million tons. The mine will eventually be joined by two additional 64 underground mines to provide for future growth demands. As noted earlier, coal is washed at the Randolph central processing plant. Coal is transported by rail and barge from the central processing plant to various utilities. In 1984, 1.4 million tons were transported by Illinois Central Gulf Railroad. Eagle No . 2 is a deep-mine located in Gallatin County at Shawneetown. Annual coal production capacity of No. 2 is approximately 1.0 million tons. Eagle No . 2 in 1984 produced 1.1 million tons, up from .9 million tons in 1983. Production at No . 2 in 1984 represented 9.3 percent of Peabody's Illinois production, while No . 2 ' s employment accounted for 12.9 percent of Peabody's Illinois mine employment. The average production per mine employee in 1984 was 3,062 tons per year, or 9.5 tons per man-day. No . 2 is the only active Peabody mine producing from the Springfield No . 5 coal seam. Coal is mined utilizing pillar and room removal technology. Eagle No . 2 opened in 1969 with total production through 1984 of 10.6 million tons. In 1984, 100 percent of the coal was cleaned by a "Jig Plant." The coal is transported by water to Gulf Power Company in Florida under long-term contract. River King No . 6 is a strip-mine located in Randolph County at Marissa. No . 6 has an annual production capacity 65 of 2.7 million tons. The 1984 production of .9 million tons represented 33 percent of this capacity. The mine's production for 1984 increased by about .4 million tons, from 1983. No . 6 ' s production represented 7.6 percent of Peabody's Illinois production, while No.6's employment accounted for 4.8 percent of their employment. The average tons of production per mine employee in 1984 was 6,746, or 24.6 tons per man-day. Coal operations began in 1957 with production totaling 19.5 million tons. As of 1984, the mine had approximately 8 years of remaining activity. No . 6 has a stripping ratio of 17 to 1, or for every foot of coal there is 17 feet of overburden. River King No . 6 is the largest surface-mine in the Peabody system in Illinois. The coal is transported by rail and utilized by Illinois Power Company's Baldwin Station and Associated Electric Co-op of Missouri. Peabody Coal Company Railroad moved .9 million tons of coal in 1984. Will Scarlet is a surface-mine located in Saline County at Stonefort. The mine has an annual production capacity of .7 million tons, with coal production in 1984 representing 95 percent of this capacity. Coal production from Will Scarlet accounted for 5.7 percent of Peabody's production in Illinois, while its employment represented 6.6 percent of Peabody's Illinois employment. Coal production per mine employee averaged 3,725 tons in 1984, 66 or 15.2 tons per man-day. The stripping ratio is 24:1. Will Scarlet is the only Peabody mine producing from the Davis/Dekoven coal seam. As Table 3-1 indicates, this coal has the highest sulfur and BTU content in Peabody 's Illinois system. Will Scarlet started operating in 1953, with production through 1984 of 23.3 million tons. One hundred percent of the coal is prepared utilizing a "Link Belt Baum Type Jig Plant." The coal is transported by rail, barge and/or truck to either Mississippi Power Company, or Associated Electric Co-op in Missouri. Illinois Central Gulf Railroad moved .3 million tons in 1984. River King No . 3 is a surface-mine located in St. Clair County at New Athens. Production for 1984 totaled .6 million tons, representing 80 percent of annual production capacity. No . 3 ' s coal production accounted for 5.5 percent of Peabody 's production in Illinois, while its employment represented 3.1 percent of Peabody ' s Illinois mine employment. Coal production per mine employee averaged 7,631 tons in 1984, or 18 tons per man-day. The mine opened in 1957 with production through 1974 of 65.8 million tons. Since 1974, No . 3 has produced 15.3 million tons. (Prior to March 1976, No . 3 was called River King Strip. In 1976, the mine was split into two mines — River King No . 3 and River King No . 6 ) . The mine is scheduled to 67 close in 1985. No . 3 ' s stripping ratio is 13:1. River King No . 3 and River King Underground No . 1 use a central coal preparation plant (McNally Pittsburg Plant) at Freeburg. Coal is transported via rail to Dairyland Power Co-op in Wisconsin and Interstate Power Company in Iowa, under long-term contract. Illinois Central Gulf Railroad transported .6 million tons in 1984. 68 S tt *«. >* ?A ** s s 3 9 H $ en 9 8 pi 10 9 • 9 CO cm a -v en • • m cm § s 9 9 a en en m in cm r* 8* 9 9 $3 * 3 cm & CO in • PI CM co © m 8 • 9 9 t en • en • en CO en cm • CO • CO CM • o 9 cm • co en • CM • o • CO • co CM • cn 9 s Co 3* © "o Co U3 s a as 10 8 •v> I p" r» o 10 co H en CO a a 9 9 55 3 ^ 5 s g a a s * I a rn cm* S S § g 9 9 i CM 9' VA CO 69 ANNUAL COAL PRODUCTION YEAR AMAX COAL COMPANY 70 AMAX COAL COMPANY Amax Coal Company was formed on October 31, 1969 through the merger of Ayrshire Collieries Corporation. Amax exchanged one share of series A convertible preferred stock for each of the 790,891 Ayrshire common shares. Amax Coal Company is a subsidiary of AMAX, Inc. The largest common stockholder of AMAX, Inc. is Standard Oil of California with 20.5 percent. According to AMAX, Inc.'s annual report: "it is a supplier of minerals and energy to America and the world. The Company explores for, mines, refines and sells a wide variety of minerals and metals and has substantial interests in coal, petroleum and natural gas . " Amax, Inc. is the 153rd largest U.S. industrial corporation with 1984 sales of $2.4 billion and assets totaling $4 billion. Standard Oil of California is the 11th largest U.S. industrial corporation with sales in 1984 totaling $26.9 billion and assets valued at $25.7 billion . AMAX, Inc. is headquartered at AMAX Center, Greenwich, Connecticut while Amax Coal Company is located in Indianapolis, Indiana. 71 Amax Coal Company has coal reserves and/or production in Illinois, Indiana, Kentucky and Wyoming. Coal reserves are estimated at 3.7 billion tons, with 2.3 billion tons located in the Midwest and 1.4 billion tons in the West. In the Illinois counties of St. Clair; Randolph; Jefferson; Franklin; Williamson; Saline; Pope; Massac and Perry, Amax has reserves of approximately 180 million tons. AMAX defines coal reserves as: "those estimated quantities which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known coal areas under existing operating methods." Assuming Amax ' s 1984 coal production of about 40 million tons per year, Amax has a 93 year supply of coal. Keystone's 1984 Coal Mine Directory ranks Amax eleventh in privately held coal reserves. Amax Coal Company ranked third in U.S. coal production and second in Illinois coal production for 1984. U.S. coal production by Amax for this same year totaled 41.4 million tons, representing 4.7 percent of U.S. coal production. Amax ' s Illinois coal production totaled 7.9 million tons, or 12.1 percent of total Illinois coal production. Total coal production in Illinois, 1960-1984, 72 including production from Ayrshire Coal Company and Amax Coal Company was 93.1 million tons. This figure represents 6.7 percent of all Illinois coal production for this same period and ranks Amax sixth in overall production. Amax first became a major coal producer in 1967 when it produced 2.4 million tons (3.7% of Illinois coal production). Since that time, Amax has shown almost continuous growth to its present level of 7.9 million tons. However, Amax ' s 1984 Illinois production was down by 1 million tons from 1983 because of the closing of the Sunspot mine. Today, Amax is producing from 2 surface-mine (67.9% of production) and 1 deep-mine (32.1%) in Illinois. These three mines ranked fifth, sixth and seventh in Illinois mine production. Amax ' s share of Illinois coal production has increased to 12.1 percent . Currently, Amax ! s Illinois mine employment is 1,625, representing 11 percent of total Illinois mine employment. This figure is down by 23 7 mine employees from 1983. Average production per deep-mine employee in 1984 was 2,899 tons per year, or 12.2 tons per man-day; while surface-mine employees averaged 7,195 tons, or 23.4 tons per man-day. As noted earlier, the statewide averages were: deep-mine--3 , 679 tons per year, or 13.7 tons per man-day and surface-mines — 6,423 tons per year, 73 or 20.3 tons per man-day. Amax ' s three Illinois mines operating in 1984 were Leahy is a strip-mine located in Perry County at Campbell Hill. The Leahy mine is the largest producing mine in Amax ' s Illinois system, the fifth largest mine in Illinois and ranked in the top sixty, nationally. It has an annual mine capacity of 2.8 million tons, with production in 1984 of 2.8 million tons. Leahy's coal production accounted for 35.4 percent of Amax ' s Illinois production, while Leahy's employment represented 23.6 percent of Amax ' s Illinois employment. Coal production per mine employee averaged 7,307 tons in 1984, or 23.5 tons per man-day. The mine has a stripping ratio of 7:1. Leahy's coal production began in "1971 with to-date production of 33.9 million tons. A "McNally Pittsburg Jig Plant" is used for cleaning the coal. The coal is transported by rail to Union Electric Company of Missouri, under long-term contract. In 1984, Missouri Pacific Railroad transported 2.4 million tons and Illinois Central Gulf Railroad moved .4 million tons. Characteristics of the three mines and coal quality are shown in Table 3-2. As with Peabody, the same type 74 of data is shown whenever available. The interesting point of Table 3-2 is that all three mines are producing coal with less than 2.6 percent sulfur. One mine is producing a low sulfur coal of 1.3 percent sulfur, while two mines are producing coal that is less than 2.6 percent sulfur, which classifies as a medium sulfur coal. BTU's per pound of coal are relatively high, ranging from 10,700 to 11,900. Delta is a strip-mine located in Williamson County at Marion. The mine has an annual mine capacity of 2.3 million tons, with coal reserves in excess of 45 million tons. Production in 1984 of approximately 2.6 million tons represented 113 percent of Delta's annual capacity. This production accounted for 32.4 percent of Amax ' s Illinois production, while Delta's employment represented 22.3 percent of Amax ' s Illinois mine employment. Coal production per mine employee was 7,074 tons in 1984, or 21.3 tons per man-day. The mine has a stripping ratio of 19:1. Mine production first began in 1946 with production totaling 42.4 million tons — since 1960, 27.4 million tons. For 1984, it was the sixth largest coal mine in Illinois . One hundred percent of the coal is washed using a "McNally Pittsburg Jig Plant." Coal is sold under long-term contract or spot market to Central Illinois Public Service, Consumers Power Company of 75 Michigan, Florida Power Company, Tampa Electric of Florida and Wisconsin Electric Power. The coal is transported by rail or truck. Illinois Central Gulf Railroad transported 1.8 million tons in 1984. Wabash is a deep-mine located in Wabash County at Keensburg. The 1984 production of 2.5 million tons represented 100 percent of Wabash's annual mine capacity. The Wabash mine was the seventh largest producing mine in Illinois. Mine production in 1984 represented 32.1 percent of Amax's Illinois production, whereas mine employment accounted for 54 percent of Amax's Illinois mine employment. Average production per mine employee in 1984 totaled 2,899 tons, or 12.3 tons per man-day. The mine opened in 1973 with production through 1984 totaling 19.9 million tons. As seen in Table 3-2, the Wabash mine has a quality coal, with sulfur of approximately 1.3 percent and BTU/lb of 10,700. The coal is washed with a "McNally Pittsburg Plant." Rail is used in transporting the coal to Public Service Company of Indiana, under long-term contract. Conrail transported 2.5 million tons in 1984. 76 VI si *. 8 § 5 vi I 3 3 s VI s 3 2 Vi in CM ■O CN m 3 » CO " ** "» vo ir> Co Gt*H a g *«• co a en S CO a a CN CN CN i 77 ANNUAL COAL PRODUCTION a «■ 3- 2- 1- 0- i i r i i i » _ i i iiii 72 74 76 78 80 82 84 YEAR CONSOLIDATION COAL COMPANY 78 CONSOLIDATION COAL COMPANY Consolidation Coal Company (CONSOL) became an active Illinois coal producer in 1971 when it purchased Truax-Traer Coal Company. Truax-Traer was the fourth largest Illinois coal company in 1970 (9.6% of production) and the eighth largest Illinois coal company in this study (58.7 million tons and 4.3% of total Illinois coal production ) . Continental Oil Company (CONOCO) purchased CONSOL on September 15, 1966. On September 30, 1981 CONOCO was purchased as a wholly-owned subsidiary of E.I. DuPont De Nemours and Company. DuPont is an international diversified company with major petroleum, coal, other energy and raw material resources. According to Fortune magazine, in 1984 DuPont was the seventh largest U.S. industrial corporation with assets of $24.1 billion and sales of $39.5 billion. DuPont Corporation is headguartered in Wilmington, Delaware. CONSOL has U.S. coal reserves of 13.7 billion tons, ranking second in privately held coal reserves . These coal reserves are located in approximately every coal region of the U.S. and Alberta, Canada. CONSOL ' s Illinois 79 coal reserves are estimated at 3.1 billion tons, representing 22.6 percent of its total coal reserves. In recent years, CONSOL has been the second largest U.S. coal producer, with production in 1984 totaling 46.7 million tons and 5.3 percent of U.S. coal production. CONSOL has five regions: the Western Region is located in Englewood, Colorado with responsibility over coal production in New Mexico, North Dakota and Utah; the Midwestern Region is headquartered in Evansville, Indiana and responsible for Illinois and Ohio coal production; the Eastern Region, located at Washington, Pennsylvania oversees production in Pennsylvania and portions of West Virginia; the Southern Appalachia Region headquartered in Bluefield, Virginia is responsible for Tennessee, Virginia and portions of West Virginia coal production; and the Northern West Virginia Region at Morgantown, West Virginia oversees coal production in a portion of West Virginia. CONSOL 's Illinois coal production since 1971 totals 109.4 million tons. This figure represents 7.8 percent of total Illinois coal production since 1960 and ranks CONSOL fifth in total coal production. Since 1971, CONSOL has continued to increase its annual coal production from 6.2 million tons to 9.9 million tons in 1982. For the past two years, CONSOL ' s production has stayed at 7.8 million 80 tons, or about 12 percent of total Illinois coal production. In 1984, CONSOL was producing from three surface-mines in southern Illinois. These three mines ranked third, ninth and twelfth in Illinois mine production. In 1984, CONSOL' s 1,069 mine employees represented 7.2 percent of total Illinois mine employment. Average production per surface-mine employee was 7,318 tons per year, or 23.8 tons per man-day. The three CONSOL mines producing in Illinois for 1984 were: Burning Star No . 4 is a surface-mine located in Perry County at Cutler*. No. 4 is the largest Illinois mine in the CONSOL system, the third largest mine in Illinois and ranked in the top sixty, nationally. No . 4 ' s production of 3.1 million tons in 1984 was an increase of .5 million tons over 1983. This 1984 production represented 39.8 percent of CONSOL' s Illinois production, while its employment accounted for 30.6 percent of CONSOL ' s Illinois mine employment. Production per mine employee averaged 9,514 tons in 1984, or 27.9 tons per man-day. This figure was an increase of 41 percent over 1983. Since the mine 81 opened in 1973, 25.6 million tons have been produced. The mine is producing from both the Springfield (No. 5) and Herrin (No. 6) coal seams, with a stripping ratio of 37:1 and 7:1, respectively. Coal is washed by a "Jig Washing Plant." The coal is transported by Missouri Pacific Railroad (3 million tons in 1984) and sold under long-term contract to Union Electric Company of Missouri. Burning Star No . 2 is a surface-mine located in Perry County at DuQuoin . No. 2 has an annual production capacity of 2.2 million tons, with recoverable reserves totaling 26 million tons. Production of 2.4 million tons in 1984 represented 107 percent of production capacity. No. 2 ranked ninth in Illinois coal production. No . 2 ' s production accounted for 31.1 percent of CONSOL's Illinois production, while No.2's employment represented 37.8 percent of CONSOL's Illinois mine employment. Average production per mine employee in 1984 was 6,027 tons/year, or 20.8 tons per man-day. Burning Star No . 2 has a stripping ratio of 16:1. The mine opened in 1950 and has produced 47.7 million tons through 1984. Since 1960, No . 2 has mined 41.3 million tons. A "Jig Washing Plant" cleans 100 percent of the coal. Coal is sold under long-term contract to Florida Power Company and Interstate Power Company of Iowa. A unit train loading facility is available for transporting the coal. For 1984, Missouri 82 Pacific Railroad transported 2.3 million tons and Illinois Central Gulf Railroad transported 1 thousand tons. Burning Star No . 5 is a surface-mine located in Jackson County at Desoto. It is the twelfth largest coal mine in Illinois. Annual coal production capacity of No. 5 totals 3.6 million tons. Coal production in 1984 represented 64 percent of this production capacity. The mine has a remaining useful life of approximately 18 years. Coal production from No. 5 represented 29.1 percent of CONSOL's Illinois production, while its employment represented 31.6 percent of CONSOL's mine employment in Illinois. Average production per mine employee for 1984 was 6,737 tons, or 22.9 tons per man-day. The mine first opened in 1976, with to-date production of 17.8 million tons. Burning Star No . 5 has a stripping ratio of 21:1. A "Heavy Media Plant" washes 100 percent of the coal. As seen in Table 3-3, Burning Star No . 5 produces a quality coal, with a sulfur content of 1.1 percent and BTU/lb of 10,300. Coal is shipped via Missouri Pacific Railroad (2.2 million tons in 1984) to Union Electric Company of Missouri, under long-term contract. 83 3 ^ >* 7* a* a* •CO- 9 3 i 5 3 5 5 a d o • 9 • o • 3 o • • b Co i3 *P ot <3 00 p 5 m (N S3 I "9. CM CM z < z o < z 9 a IT) S3 «N CM* in m < z 84 ANNUAL COAL PRODUCTION 0.0 I I i I I I I > I I I I I I » I — I I I I I I I — I — 6866677777888 0246802468024 YEAR OLD BEN COAL COMPANY 85 OLD BEN COAL COMPANY Old Ben Coal Company was acquired by Standard Oil Company of Ohio (SOHIO) in August of 1968 for 1 million shares of common stock. According to Moody's Industrial Manual , SOHIO is engaged: "in all branches of petroleum, specifically exploring; producing; transporting; refining and marketing. The Company further manufactures : automobile accessories; chemicals; plastic; coal; metals; copper and other minerals. SOHIO also maintains a research organization which studies the development of alternative energy resources and other new energy technologies . " SOHIO' s business activity is concentrated in the eastern United States from Maine through Virginia and Ohio. SOHIO is the twenty-fourth largest industrial corporation in the U.S. with sales of $11.7 billion and assets of $17.5 billion, in 1984. Old Ben Coal Company has three divisions : the Illinois Division is located in Benton, Illinois, the Indiana Division is headquartered in Oakland City, Indiana and the West Virginia Division is in Thacker, West Virginia. Old Ben Coal Company is headquartered in Lexington, Kentucky, while Standard Oil Company of Ohio 86 is located in Cleveland, Ohio. Old Ben Coal Company has coal reserves totaling 1.7 billion tons; with .6 billion tons in the Midwest, .9 billion tons in northern Appalachia, .2 billion tons in central Appalachia and .02 billion tons in Utah. This coal reserve base places Old Ben as the seventeenth largest private owner of coal in the U.S. According to Old Ben, "these reserves, particularly those in northern and central Appalachia, have competitive advantages in guality, mineability and location." Of the total reserve base, approximately .2 billion tons are located at active mine sites. U.S. coal production by Old Ben Coal Company in 1984 was 14.6 million tons, valued at $465 million. This figure represented 1.6 percent of U.S. coal production and ranked Old Ben as the thirteenth largest coal producer in the U.S. Old Ben has an annual coal production capacity of 15.7 million tons, with 14 million tons in the Midwest and 1.7 million tons in Appalachia. Old Ben produces most of its' coal in Illinois and Indiana . Since 1960, Old Ben's Illinois coal production 87 totaled 135 million tons, or 9.6 percent of total Illinois coal production. This places Old Ben third in total Illinois production. In calendar year 1960, Old Ben was producing from four deep-mines in Illinois. For this same year, coal production was 3.5 million tons (7.7% of Illinois production), while mine employment totaled 1,220 (11.6% of Illinois mine employment). Illinois coal production by Old Ben peaked in 1969 at 7.3 million tons (11.3% of Illinois production). This production placed Old Ben third in overall statewide coal production. Since that time, Old Ben's Illinois coal production has stayed between 4 and 6 million tons per year, except for 1984 when it increased to 7.2 million tons. Old Ben attributes this increase in production to stronger demand and a more aggressive marketing plan. Old Ben's Illinois production in 1984 of 7.2 million tons represented 11 percent of statewide production. This was an increase of 1.3 million tons over 1983. Coal production was from four deep-mines, with a labor force totaling 1,751 (11.8% of Illinois mine employment). Old Ben's production per deep-mine employee averaged 4,087 tons in 1984, or 14.8 tons per man-day. A description of the four deep-mines operating in 1984 follows. 88 No . 26 is a deep-mine located in Franklin County at Sesser. The coal is of a high quality with 1.8 percent sulfur and 11,500 BTU ' s per pound of coal. No. 26 is Old Ben's largest Illinois mine, ranking eighth in Illinois mine production with 2.5 million tons. No. 26 has an annual mine capacity of 1.6 million tons and reserves totaling 45 million tons. Mine No. 26 accounted for 34.3 percent of Old Ben's statewide production and approximately 27 percent of Old Ben's Illinois mine employment. In 1984, the average production per mine employee was 5,219 tons, or 18.5 tons per man-day; the highest in Old Ben's Illinois system. No. 26 opened in 1968, with production through 1984 of 26.9 million tons. The four deep-mines of Old Ben use a longwall mining recovery method. [Note 10], Coal is cleaned with a "Norton and Batac Jig Plant." Coal is sold under long-term contract to Georgia Power Company and Wisconsin Electric Power Company, and on the spot market. Coal is transported by rail, or some combination of rail and barge. Railroads transporting the coal in 1984 were Illinois Central Gulf (1.6 million tons), Missouri Pacific (.5 million tons) and Burlington Northern (.03 million tons ) . As shown in Table 3-4, Old Ben's coal resources are of a relative high quality. The coal is mined from the 89 Herrin No . 6 seam. Even though the coal is relatively deep at about 650 feet, the seam thickness is equal to, or greater than 8 feet. Sulfur content ranged from 1.2 to 2.5 percent, ranking as a low to medium sulfur coal. BTU's per pound of coal varied from 11,500 to 11,700, making it one of the higher BTU coals in Illinois. No. 25 and No. 2 7 Complex is the second largest Illinois mine in the Old Ben system. It is located in Franklin County at West Frankfort. The complex is the fourteenth largest Illinois mine. The complex has an annual coal capacity of 3.6 million tons, with reserves totaling 35 million tons. Production of 2.1 million tons in 1984 represented 58.3 percent of this capacity. This production represented 29.4 percent of Old Ben's Illinois production, while its 466 mine employees accounted for about 27 percent of Old Ben's Illinois mine employment. The complex had an average production per mine employee of 4,519 tons in 1984, or 17.3 tons per man-day. Since the mine opened in 1977, 11.5 million tons have been produced. Coal is prepared with a "Mogul Jig and Froth Flotation Plant." Facilities are available for unit train loading. Coal is sold under long-term contract to Georgia Power Company and transported by rail/barge. The railroad servicing the complex in 1984 was Illinois Central Gulf (2.1 million tons). 90 No . 24 is a deep-mine located in Franklin County at Benton, which re-opened in October 1983. Mine No. 24 has an annual mine capacity of 1.7 million tons, with reserves totaling 25 million tons. Coal production in 1984 of 1.4 million tons represented 82 percent of this capacity. No.24's coal production represented 19.7 percent of Old Ben's Illinois production while its mine employment accounted for 18.6 percent of Old Ben's mine employment. Average tons of production per mine employee in 1984 was 4,334, or 15.8 tons per man-day. The mine opened in 1965, with production through 1984 of 33.9 million tons. Coal preparation is with a "Mogul Jig and Froth Flotation Plant." The coal is transported by rail/barge to Georgia Power Company, under long-term contract. Railroads transporting coal in 1984 were: Burlington Northern (.9 million tons) and Illinois Central Gulf (.6 million tons). No . 21 is a deep-mine located in Franklin County at Sesser. The mine has 20 million tons of recoverable reserves, with an annual production capacity of 1.6 million tons. Production in 1984 of 1.2 million tons represented 75 percent of capacity. Mine No. 21 produced 16.5 percent of Old Ben's Illinois production and employed 27.9 percent of Old Ben's Illinois mine 91 employment. No. 21 produces a quality coal with an average sulfur content of 1.2 percent by weight and 11,600 BTU ' s per pound of coal. The average production per mine employee in 1984 was 2,420 tons, or 8.4 tons per man-day. Since opening in 1960, No. 21 has produced 47.1 million tons. One hundred percent of the coal is washed with a "Mogul Jig and Heavy Media Plant." The coal is sold under long-term contract to Union Electric Company in Missouri. Railroads furnishing transportation in 1984 were: Missouri Pacific (1.4 million tons); Illinois Central Gulf (.2 million tons) and Burlington Northern (.1 million tons). 92 2 #*. *. « s u* >* o o c 00 o CO as en F* F* CM s S o 9 CM o pi 8 o • <3\ • CO o • o in • • h as ■J5 CO o si 3 2 7.5 T 0.0 i i i i i i i > i i i i i i i i i — i — i i i i t i 8868677777888 0246802468024 YEAR ARCH OF ILLINOIS 101 ARCH OF ILLINOIS Arch of Illinois, formerly Southwestern Illinois Coal Company, is a wholly-owned division of Arch Mineral Corporation. Arch Mineral Corporation purchased Southwestern in 1972. Arch Mineral Corporation was formed in 1969 by Mr. Merle Kelce and Mr. William Heckman. Ashland Oil, Inc. in 1969 purchased 50 percent interest in Arch Mineral as an affiliated subsidiary, while the remaining 50 percent was controlled by Mr. Kelce. Today, the company is jointly owned by Ashland Oil (50%) and Hunt Family Interests' (50%). Ashland Oil, based on 1984 sales, is the forty-second largest industrial corporation in the U.S. with sales of $8.3 billion and assets totaling $4 billion. No figures are available for Hunt Family Interests ' . Arch Mineral Corporation has coal operations in Alabama, Illinois, Kentucky and Wyoming. According to Ashland: "Arch is primarily engaged in seeking out, acquiring and developing coal reserves intended to supply the electric utility market, where the majority of coal sales are long-term contracts with market reopener clauses and/or provisions for pass through of various costs, including reclamation, 102 and the balance are under short-term contracts with fixed prices." Moody's Industrial Manual further states: "Ashland Oil Enterprises, a wholly-owned subsidiary of Ashland Oil, Inc. owns a 50 percent interest in a land trust holding title to coal land in southwestern Illinois. These lands are leased to a wholly-owned subsidiary of Arch under a long term lease . " Arch Mineral's coal reserves are estimated at 650 million tons, ranking forty-eighth in privately held reserves. Arch also has additional preference rights to coal reserves in New Mexico. Illinois coal reserves are estimated at 220 million tons. Arch Mineral Corporation has four coal operating divisions: Arch of Illinois; Arch of Alabama; Arch of Kentucky and Arch Western Division. Arch Mineral Corporation and its divisions are headquartered in St. Louis, Missouri. Ashland Oil Inc. is headquartered in Lexington, Kentucky, while Hunt Family Interests' is located in Dallas, Texas. Arch Mineral Corporation produced 11 million tons of coal in 1984, representing 1.2 percent of U.S. coal 103 production. This production was an increase of 2.4 million tons over 1983. The coal is sold to 8 major electric utilities, other small electric producers and industry. Arch of Illinois, including Southwestern Illinois Coal Company, is the fourth largest coal producer in this study. Total coal production was 115.5 million tons (8.3% of Illinois production). In 1961, Southwestern produced .9 million tons of coal, representing about 2 percent of Illinois coal production. Production peaked in 1967 at 7.5 million tons; placing Southwestern third with 11.6 percent of Illinois production. Since that time, production has stayed between 4 and 7 million tons per year. Southwestern ' s Captain mine is the largest producing mine in the state. Arch of Illinois employed 975 people and produced 5.6 million tons of coal in 1984. This production placed Arch of Illinois as the sixth largest Illinois coal producer with 8.6 percent of total Illinois coal production. The 975 mine employees represented 6.6 percent of total Illinois mine employment. Coal production per surface-mine employee averaged 5,767 tons in 1984, or 17.7 tons per man-day. 104 A description of the Captain mine follows Captain is a surface-mine located in Perry County at Percy. The Captain mine is ranked: first in Arch of Illinois production; first in state-wide production and in the top fifty producing mines, nationally. The mine is producing from one of the largest contiguous coal reserves in the eastern United States. The Captain mine has an annual production capacity of about 6 million tons per year. Production and mine employment in 1984 were 5.6 million tons and 975, respectively. This production and mine employment were an increase over 1983 of .6 million tons and 194 employees. Average production per mine employee in 1984 was 5,767 tons, or 17.7 tons per man-day. Since opening in 1964, it has produced 83.8 million tons of coal. All the coal from the mine is cleaned with a "McNally Pittsburg Plant." Coal is sold under long-term contract to Georgia Power Company, Illinois Power Company, Missouri Public Service Company and Northern Indiana Public Service Company. Transportation of the coal is by rail and water. In 1984, Illinois Central Gulf Railroad transported 1.6 million tons and Missouri Pacific Railroad moved 4 million tons. Additional data is shown in Table 3-6 on the following page. 105 ^ >* ** >* S ** CO 1 CO w t CO n no ur £ « <3 s m B ur> 106 ANNUAL COAL PRODUCTION 9.0 7.S W 6.0 z i s *- 5 a 3 3.04 1.3 0.0 — i—i — i — r-i — i i i i i — r — i—i — i— i — i — iiii — r— i — i— i — ■ 6666677777888 0248802468024 YEAR FREEMAN UNITED COAL MINING COMPANY 107 FREEMAN UNITED COAL MINING COMPANY Freeman United Coal Mining Company is a division of Materials Service Corporation and a wholly-owned subsidiary of General Dynamics Corporation. Prior to November 1966, General Dynamics owned 52.9 percent of United Electric Coal Company; in 1966 they increased ownership to 100 percent. In 1975, Freeman Coal Mining Company (2nd largest coal company in this study) and United Electric Coal Company (7th largest coal company) were combined into Freeman United Coal Mining Company. Freeman has been mining coal in the Illinois Basin for more than 100 years. Coal reserves are estimated at 600 million tons (51st in privately held coal reserves). The six active mine sites have a coal reserve base of more than 200 million tons. Freeman estimates that about 81 percent of its coal sales are primarily in the Midwest via long-term contracts with utilities, while the remainder is sold to industry. Today, Freeman United Coal Mining Company is headguartered in Chicago, Illinois, while General Dynamics Corporation's Executive office is located in St. Louis, Missouri. General Dynamics is the forty-fourth 108 largest industrial corporation in the U.S. (based on sales) with 1984 sales of $7.8 billion and assets totaling $3 billion. According to Moody's Industrial Manual, General Dynamics is engaged in: "engineering, development and manufacture of various products for the United States Government and to a lesser extent, foreign governments, including military equipment, tactical missiles, gun systems, space systems, land systems, submarines and electronics. It also is involved in the mining of coal, the production and distribution of lime, limestone, sand and gravel, ready-mix concrete, building materials and data products." For this study, Freeman United Coal Mining Company has produced 240.3 million tons. This includes production from both Freeman Coal Company and United Electric Coal Company. This figure represents 17.2 percent of total Illinois coal production and ranks Freeman second in overall production since 1960. Freeman's production peaked in 1967, 1969 and 1970 with 8.4 million tons. In 1974, Freeman's coal production was 4.6 million tons, representing 8 percent of Illinois coal production. Since 1975, Freeman has kept its share of Illinois coal production at 10-12 percent. Freeman's next largest production was in 1982 at 7.5 million tons (12.2% of total Illinois production). In this same year, Freeman was 109 producing from eight mines, while ranking fifth in Illinois production. Freeman United Coal Mining Company in 1984 produced 5.5 million tons of coal. Freeman's 1984 output represented 8.4 percent of Illinois production (7th in Illinois coal production). Three surface-mines produced 2 million tons (36% of Freeman's production) and three deep-mines produced 3.5 million tons (64% of production). Freeman employed 1,615 workers at the six mine sites, representing 10.9 percent of total Illinois mine employment. Average production per surface-mine employee in 1984 averaged 5,510 tons, or 15.5 tons per man-day; deep-mine employees averaged 2,787 tons, or 10.7 tons per man-day. Table 3-7 lists the six active mines in 1984. As shown, Freeman has two mines that are producing coal with a relatively low sulfur content. Orient No. 4 is producing a 1.8 percent sulfur coal with 11,750 BTU , while Orient No. 6 is mining 1.5 percent sulfur coal and 11,700 BTU. A description of the 6 active mines in 1984 follows. Orient No . 6 is a deep-mine located in Jefferson 110 County at Waltonville. No . 6 has an annual mine capacity of 1.5 million tons. Coal production of 1.4 million tons in 1984 represented 93 percent of mine capacity. Orient No . 6 is the largest mine in the Freeman system, with 26.1 percent of Freeman's total coal production and 32 percent of Freeman's mine employment. Production per mine employee in 1984 averaged 2,771 tons, or 10.1 tons per man-day. No. 6 opened in 1966 with production through 1984 of 21.4 million tons. Coal is prepared with a "Roberts and Schafer Heavy Media Plant." Unit train loading is available. Orient No . 6 is one of the deeper mines in Illinois at 792 feet. The coal contains 1.5 percent sulfur and 11,700 BTU. Coal is transported by rail to Electric Energy, Inc. or Union Electric Company, under long-term contract. In 1984, Missouri Pacific Railroad transported 1.3 million tons and Illinois Central Gulf Railroad transported .06 million tons. Orient No . 4 is a deep-mine located in Williamson County at Pittsburg. No . 4 has an annual mine capacity of 1 million tons. Production in 1984 of 1.1 million tons represented 110 percent of this capacity and 20 percent of Freemans ' production. The mine opened in 1952 and has produced 34 million tons; since 1960, 26.9 million tons. No . 4 ' s 353 mine employees represented 21.9 percent of Freeman's mine employment. Coal production per mine Ill employee in 1984 averaged 3,082 tons, or 11 tons per man-day. A "Roberts and Schafer Heavy Media Plant" is used for cleaning 100 percent of the coal. The coal is of high quality with 11,750 BTU and 1.8 percent sulfur. Most of the coal is sold in Illinois, under long-term contract to Electric Energy, Incorporated. The coal is transported by rail and truck. The railroads transporting the coal in 1984 were Missouri Pacific (.8 million tons) and Illinois Central Gulf (.15 million tons). Fidelity No. 11 is a surface-mine located in Perry County at DuQuoin. No. 11 has an annual mine capacity of 1.2 million tons. Coal production in 1984 represented 83 percent of this capacity. No. 11 is the largest surface-mine in Freeman's system. No.ll's coal production accounted for 18.6 percent of Freeman's total production, while its employment represented 13 percent of Freeman's mine employment. Coal production per mine employee in 1984 averaged 4,838 tons, or 16.4 tons per man-day. Fidelity No. 11 has a stripping ratio of 13:1. The mine opened in 1929 with total production of 73.1 million tons, since 1960--36.7 million tons. A "Koppers Jig Plant" cleans 100 percent of the coal. Unit train facilities are available. The coal is sold to Central Illinois Public Service, Hoosier Energy Rural Electric Co-op and Illinois 112 Power Company. Coal is transported by rail, truck or rail/barge combination. In 1984, Illinois Central Gulf Railroad moved .6 million tons and Missouri Pacific Railroad transported .3 million tons. Crown II is a deep-mine located in Montgomery County at Virden. Crown II has an annual mine capacity of 2 million tons. The mine produced 1 million tons and employed 389, in 1984. These figures represented 18.1 percent of Freeman's production and 24.1 percent of Freeman's mine employment. Crown II has mined 10.7 million tons since opening in 1976. Coal production per mine employee in 1984 averaged 2,548 tons, or 11.2 tons per man-day. A "Roberts and Schafer Jig Plant" washes 100 percent of the coal. The coal averages 3.2 percent sulfur and 10,500 BTU. Coal is sold under long-term contract to Central Illinois Light Company and Springfield City, Water, Light and Power. Transportation is via rail and truck. Burlington Northern Railroad transported 1 million tons in 1984. Industry is a surface-mine located in McDonough County at Industry. The mine opened in 1982, with production of .3 million tons. In 1984, mine production was .5 million tons representing 100 percent of mine capacity. Mine employment totaled 98. These 1984 figures 113 represented 9 percent of Freeman's production and 6 percent of Freeman's mine employment. Average production per mine employee in 1984 was 4,969 tons, or 16.7 tons per man-day. Industry has a stripping ratio of 24:1. A "Roberts and Schafer Jig Plant" cleans 100 percent of the coal. The coal is transported by truck to Muscatine Power and Water Department in Iowa. Buckheart No. 17 is a surface-mine located in Fulton County at Canton. The mine closed in August 1984. No. 17 produced .5 million tons and employed 49 in 1984. This production represented 8.4 percent of Freeman's production, while its employment accounted for 3 percent of Freeman's mine employment. No. 17 had an average production of 13.1 tons per man-day.. A "Neldo Heavy Media Plant" cleaned 100 percent of the coal. The mine opened in 1937, with total production of 54 million tons; since 1960, 18.7 million tons. Buckheart No. 17 had a stripping ratio of 24:1. Coal was sold to Iowa-Illinois Gas and Electric Company, under long-term contract. Transportation of the coal was with Burlington Northern Railroad (.16 million tons). 114 5 *«. ** X. « ** ^ s 8 | § s § d d 3 9 sf 9 m * GO 00 CM ^ 9 9 3 8 9 ^5 • z CM WO s CM 3 3 s © en vo M ?n rS IH f*j WO t 00 • 9 o • 9 « 00 o • m O • 9 m • 00 CM in 9 en 9 ■ < 1 2 in • 00 • r-i o t en CM co • CM 00 • CM © 9 s in Co WO H CM 9 s 8 9 a | vo ^ in © o> sr si a * a 3 51 fl t g a 9 3 3 in < z 115 INLAND STEEL COAL COMPANY 116 INLAND STEEL COAL COMPANY Inland Steel Coal Company has been mining coal in Illinois since 1966. Inland Steel Coal Company is a wholly-owned subsidiary of Inland Steel Company. According to Moody's Industrial Manual: "the company is engaged in the production and sale of steel and related products ; mining and pelletizing of iron ore, mining of coal and quarrying of limestone, prinicipally for its own use." Based on 1984 sales, Inland Steel Company was the 116th largest U.S. industrial corporation with sales of $3.4 billion and assets valued at $2.6 billion. Inland Steel Coal Company and Inland Steel Company are headquartered in Chicago, Illinois. Inland Steel Coal Company has coal reserves totaling approximately .3 billion tons. These reserves are located in Illinois, Pennsylvania and West Virginia. According to data published by Keystone's 1984 Coal Mine Directory, Inland's coal reserves rank eightieth in privately held coal reserves. All of the coal reserves are owned by 117 Inland Steel Company through either fees, leases or sub-leases . Inland Steel Coal Company became one of the top ten Illinois coal producers in 1970 when it ranked ninth with 1.9 million tons of production (3 percent of Illinois coal production). Since that time, Inland has been in and out of the top ten producers list, until 1978. Since 1978, Inland has been a member of the top ten Illinois coal producers, increasing its production in 1978 from 1.5 million tons (3% of Illinois production) to 3.3 million tons in 1984 (5.1% of Illinois production). For this study, Inland Steel Coal Company is the twelfth largest Illinois coal producer with 34.7 million tons. In 1984, Inland was the eighth largest coal producer. Employment totaled 1,120 representing 7.6 percent of total Illinois mine employment. Production per deep-mine employee averaged 2,955 tons in 1984, or 12.2 tons per man-day. Both mines are utilizing room and pillar coal removal technigue. As shown in Table 3-8, Inland's two coal operations are producing a high quality coal. The mines are two of the deeper active mines in Illinois. Mine No . 1 is producing a coal with .9 percent sulfur and 11,750 BTU , 118 while Mine No . 2 is producing at .9 percent sulfur and 12,000 BTU. The two deep-mines operating in 1984 are described below: No . 1 is a deep-mine located in Jefferson County at Sesser. No . 1 is the largest mine in Inland's Illinois system and the eleventh largest Illinois mine. Mine No.l has an annual mine capacity of 1.8 million tons. Coal production in 1984 of 2.3 million tons represented 128 percent of capacity and 70.6 percent of Inland's Illinois production. The 646 mine employees accounted for 57.7 percent of Inland's Illinois mine employment. Average production per mine employee in 1984 was 3,619 tons, or 14.4 tons per man-day. A "Heavy Media Plant" cleans 100 percent of the coal. Unit train loading is also available . The mine has produced 31.3 million tons since 1967. Mine No.l has remaining coal reserves of approximately 90 million tons. The coal is classified as a low sulfur high BTU coal, with specifications of .9 percent sulfur and 11,750 BTU. Coal is sold under contract to Union Electric Company. A majority of the coal is transported by rail. In 1984, Illinois Central Gulf Railroad transported 1.6 119 million tons and Missouri Pacific Railroad moved .6 million tons. No. 2 is the second deepest Illinois mine at 929 feet. No . 2 is located in Hamilton County at McCleansboro . Remaining coal reserves are estimated at 90 million tons. These reserves are held by Inland Steel Coal Company under a sublease from AMAX, Inc. In 1984, 1 million tons were mined, representing 29.4 percent of Inland's Illinois coal production. No . 2 ' s employment of 474 accounted for 42.3 percent of Inland's Illinois mine employment. Production per mine employee averaged 2,050 tons, or 8.9 tons per man-day. No. 2 opened in 1979 with production through 1984 totaling 3.4 million tons. A "Heavy Media" preparation plant cleans 100 percent of the coal. Unit train loading is available. As with Mine No . 1 , this coal is of high guality, with .9 percent sulfur and 12,000 BTU . Louisville and Nashville Railroad transported 1 million tons of coal in 1984. 120 S H ^ » *, ** 8 § a 9 o o o • PI o • o • r-i 1 n S * 9 ON 0> Co CN © U3 s i s S m 121 ANNUAL COAL PRODUCTION 4.5 0.0 ) I I — I I I I I I > I I I I I — I I I I I I I I I 6686677777888 0246802468024 YEAR ZEIGLER COAL COMPANY 122 ZEIGLER COAL COMPANY Zeigler Coal Company was merged into Houston Natural Gas Corporation on December 14, 1973 with the exchange of 2.862 Corporation shares for each share of Zeigler Coal Company stock. According to Moody's Public Utility Manual , Houston Natural Gas Corporation is engaged in: "the transmission and sale of natural gas; marine transportation, services and construction; production, processing and sale of industrial gases; production and sale of coal; and exploration for and production of oil and gas . " Most of the coal is sold f .o.b. mine and transported by rail, barge, truck, or some combination of these. The coal is of steam quality and sold to electric utilities and large industrial users. All of its coal is sold directly to its customers. Zeigler Coal Company is headquartered in Des Plaines, Illinois, while its operations office is located in Coulterville , Illinois. Houston Natural Gas Corporation is located in Houston, Texas. 123 Zeigler Coal Company has recoverable coal reserves estimated at 1 billion tons. Based on statistics published by Keystone's 1984 Coal Mine Directory, these coal reserves rank Zeigler thirty-second in privately held reserves. Some of the recoverable Illinois reserves are: Rend Lake mine — 54 million tons; No . 6 mine — 45 million ton; Christian County — 135 million tons; Worden mines — 72 million tons; Tamora mine~-81 million tons and the Marine-Troy reserve totaling 118 million tons. Zeigler Coal Company first made the top ten Illinois coal producers list in 1968 with production of .9 million tons (1.5/6 of Illinois coal production). Since 1974, it has been on the top ten producers list with annual production between 2 and 4 million tons. Production peaked in 1976 at 4.1 million tons, representing 7.1 percent of total Illinois coal production ( 7th in Illinois production). For the twenty-five year period of this study, Zeigler Coal Company ranked ninth in total Illinois coal production with 54 million tons. This figure represented 3.9 percent of all Illinois coal production since 1960. In 1984, Zeigler was producing from three underground-mines in southern Illinois. Production totaled 2.7 million tons, representing 4.1 percent of 124 total Illinois production. This production ranked Zeigler ninth in total Illinois coal production. Mine employment for 1984 was 654 (4.4% of total Illinois mine employment). The three underground-mines had an average production per mine employee of 4,084 tons in 1984, or 14 tons per man-day. All three mines are utilizing room and pillar coal removal technique. Table 3-9 shows some of the characteristics of the three mines and their respective coal qualities. All three mines are producing at a shallow depth for an underground mine, while the coal seam thickness is relatively thick at 7 feet. All three operations are mining Herrin No . 6 coal with a sulfur content of 2.4 to 3.0 percent. A description of Zeigler ■ s three underground-mines follows . No. 11 is an underground-mine located in Randolph County at Coulterville . Coal production in 1984 of 1.2 million tons represented about 170 percent of its annual capacity. No. 11 is the largest mine in Zeigler ' s Illinois system. A labor force of 263 represented 40.2 percent of Zeigler ■ s Illinois mine employment, while No.ll's 125 production accounted for 43.1 percent of Zeigler ' s Illinois coal production. Coal production per mine employee averaged 4,380 tons in 1984, or 17.6 tons per man-day. The mine opened in 1975 with production through 1984 of 5.3 million tons. No. 11 utilizes a "Roberts and Schafer" preparation plant located at the Spartan mine. Coal is sold under long-term contract to Interstate Power Company, Northern Indiana Public Service and Wisconsin Power and Light. Coal is transported by rail, barge, truck, or some combination. In 1984, Missouri Pacific Railroad transported .7 million tons. No .5 is an underground-mine located in Douglas County at Murdock. Production in 1984 of .8 million tons represented about 40 percent of its annual mine capacity. Coal production from No . 5 accounted for 31.6 percent of Zeigler ' s Illinois coal ■ production, while No.5's employment of 238 represented 36.4 percent of Zeigler ' s Illinois mine employment. Average production per mine employee in 1984 was 3,546 tons, or 13.8 tons per man-day. The mine opened in 1973, with coal production through 1984 totaling 12 million tons. According to Illinois Department of Mines and Minerals' data, the No . 5 and Murdock mines use the same "McNally Pittsburg" preparation plant. Coal is transported by rail to Northern Indiana Public Service and Rochester Public Utilities in 126 Minnesota, under long-term contract. Coal was transported by Missouri Pacific Railroad (.8 million tons in 1984). Murdock is an underground-mine located in Douglas County at Murdock. The mine has an annual mine capacity of 1.6 million tons. Production of .7 million tons in 1984 represented 44 percent of mine capacity. Murdock ' s coal production in 1984 accounted for 25.3 percent of Zeigler's Illinois coal production, while its employment represented 23.4 percent of Zeigler's Illinois mine employment. Coal production per mine employee averaged 4,412 tons, or 10.5 tons per man-day. Production began in 1946 with production through 1984 totaling 16 million tons; since 1960--12.8 million tons. A "McNally Pittsburg" preparation plant cleans the coal. Coal is sold under long-term contract with Springfield City, Water, Light and Power,, while some is sold on the spot market. Coal is transported by truck. 127 at ** * ** 9 < ■ z < z t 9 < z cr» CN O < z < t z 9 i z CN Pj m cm w ri a sag s CN pi CN* 128 ANNUAL COAL PRODUCTION 3.0 0.6 0.3 0.0 I I I 1 1 I I I I I I I I I I I I I I I I i \ I 6666677777888 0246802468024 YEAR SAHARA COAL COMPANY 129 SAHARA COAL COMPANY Sahara Coal Company is owned and operated as an independent coal mining company. It has been operating in Illinois since 1905. The Company is headquartered in Chicago, Illinois, while the main operating office is located in Harrisburg, Illinois. Sahara Coal Company has recoverable coal reserves estimated at 180 million tons, located in Saline and Williamson counties. These reserves are currently being mined at four operations: one strip-mine; one drift-mine; and two underground-mines . The drift and underground-mines are removing the coal via room and pillar technique. Coal production for the period 1960-1984 totaled approximately 48.6 million tons, representing 3.5 percent of total Illinois coal production. Sahara Coal Company has been in and out of the top ten Illinois coal producers list since 1960. Sahara first became one of the top ten Illinois coal producers in 1960, when it ranked eighth with 1.7 million tons of production and 3.8 percent of total Illinois coal production. Since 1960, Sahara has 130 continued to increase its annual coal production, with only a few exceptions, until 1969 when it peaked at 2.8 million tons. In this same year, Sahara ranked seventh with 4.3 percent of Illinois coal production. For the past fourteen years, Sahara's production has decreased to its current level of 1.4 million tons and 2.1 percent of Illinois coal production. In 1984, Sahara was the eleventh largest Illinois coal producer. In this same year, Sahara's 542 mine employees represented 3.7 percent of Illinois mine employment. The drift and underground-mines in 1984 averaged 2,147 tons per mine employee, or 12.1 tons per man-day; while the surface-mine averaged 4,250 tons, or 27.4 tons per man-day. A description of Sahara's four mines follows. Mines No . 6 , No. 7, No. 21, and No. 22 are locatedin. Saline County at Harrisburg. All of the mines use a central washing plant for cleaning 100 percent of the coal. As shown in Table 3-10, the coal is of high quality with 2 percent sulfur and a BTU content of 12,400. The coal is sold to Electric Energy, Inc. in Illinois and Rochester Public Utility Department in Minnesota, under 131 long-term contract. Other coal sales are on the spot market. Coal is transported by rail, barge, truck, or some combination. No. 21 is an underground-mine with an annual mine capacity of .8 million tons. Production of .6 million tons in 1984 represented about 75 percent of this capacity. It is the largest mine in Sahara's Illinois system. No. 21 accounted for 43 percent of Sahara's Illinois coal production, whereas 257 mine employees represented 47.4 percent of Sahara's Illinois mine employment. The average annual production per mine employee was 2,393 tons in 1984, or 13.1 tons per man-day. No. 21 has produced 7.1 million tons since 1971. Coal is removed by room and pillar. No . 6 is a strip-mine with an annual production capacity of .6 million tons. Coal production in 1984 of about .5 million tons, represented 91 percent of this capacity. No.6's production accounted for 38 percent of Sahara's coal production, while its 128 employees accounted for 24 percent of Sahara's Illinois mine employment. The mine in 1984 had an average annual production of 4,250 tons per mine employee, 27.4 tons per man-day. No . 6 opened in 1936 with production through 1984 of 32.6 million tons. Since 1960, No . 6 has produced 19.5 132 million tons. No . 7 is an underground-mine which opened in 1982. In 1984, the mine produced approximately .2 million tons, accounting for 14.7 percent of Sahara's Illinois coal production. The 121 mine employees represented 22.3 percent of Sahara's Illinois mine employment. Since opening in 1982, No . 7 has mined .4 million tons. Average production per mine employee in 1984 averaged 1,744 tons, or 10.3 tons per man-day. No . 7 utilizes room and pillar coal removal. No . 22 is an underground-mine with an annual mine capacity of .14 million tons. In 1984, production of about .05 million tons represented 47 percent of mine capacity. No.22's coal production in 1984 accounted for 4.4 percent of Sahara's total Illinois production, while No.22's 36 mine employees accounted for 6.6 percent of Sahara's total Illinois mine employment. The average tons of production per mine employee averaged 1,750 in 1984, or 10.6 tons per man-day. No. 22 opened in 1979 with total production through 1984 of .4 million tons. The mine utilizes room and pillar coal removal. 133 s * T* 1* *. s ^ 3 3 en a en a en en 00 • CO • GO • r- 03 • o • CN o • CM I 9" en a CO t a en a en oo sa o CM o • CN i 3 3 8 en a O 9 Sq a q c4 « 55 s L (2 c^ vo 2 2' c- Si 134 SECTION III: ILLINOIS COAL DATA Mine Employment And Production Coal Production At The County Level Coal Prices And Revenue Coal Mine Operations And Illinois State Product 135 MINE EMPLOYMENT AND PRODUCTION From an historical perspective, Illinois employment from all coal mines peaked in 1923 at 103.6 thousand employees, while coal production peaked in 1918 at 90 million tons. Since that time, mine employment and production have been unstable, with dramatic shifts through the years to their 1984 level of 14.8 thousand employees and 65.3 million tons of production. For the period 1960-1984, mine employment peaked in 1979 at 18.5 thousand, while the lowest level of employment was 1962, 1965 and 1967 with 8.8 thousand. Coal production, for this same period, peaked in 1972 at 65.5 million tons, with the lowest level of production in 1961 at 45.1 million tons. Many of these changes in employment and production have occurred because of continuous improvements in mining technology, increased mine capacity, coal strikes and the volatility of year-to-year coal sales. To illustrate these changes in employment, a comparison was made of average tons of production per mine employee per year. This was performed by taking the yearly coal production and dividing by total number of employees , for that same 136 year. In 1923 the average production per mine employee was 741 tons; increasing to 1,924 tons in 1950 and 3,955 tons in 1983. Because of these increases in average mine employee production, Illinois mine employment has decreased by 671 percent, while statewide average tons of production have increased by 534 percent. Although coal mine employment has decreased because of increased efficiency and mechanization, as well as minimal growth in coal sales, many benefits have also been achieved, such as: coal prices have stayed competitive with alternative sources of energy; wages and fringe benefits are equal to, or greater than other industries; the work environment is cleaner and fatal mine accidents have been reduced dramatically. To illustrate a difference in wages, compare the data in Table 4-1. In " this Table, average weekly earnings , average weekly hours and average hourly earnings are shown for three Illinois industries. For a description of these industries refer to Note 11. Based on average weekly earnings , bituminous coal miners have received from 50 to 75 percent more in weekly income than individuals from the manufacturing and durable goods industries. This higher than average wage is primarily because of unionization and the work environment of the 137 coal industry. To show the "ups and downs" of the mining industry, average weekly hours of bituminous coal miners were compared to average weekly hours of the two other industries shown in Table 4-1. The Table shows that coal miners have a more volatile work week, ranging from a low of 36.8 hours in 1978 to a high of 47 hours in 1971, while the average work week of the other two industries has stayed relatively the same at 40-41 hours. Also, Graph 4-1 compares the average weekly earnings of bituminous, manufacturing and durable good employees. As shown, weekly wages of workers in the manufacturing and durable goods industries have increased at relatively the same rate, whereas bituminous miners' wages have increased more dramatically in recent years . Deep-mine coal operations are considered labor intensive, while surface-mine operations are considered capital intensive. Table 4-2 compares the average tons of production per deep and surface-mine employee per year. Over the 25 year period encompassed in this study, production per deep-mine employee averaged 3,742 tons ,- while strip-mines averaged 7,430 tons, a 200 percent difference. Table 4-2 further illustrates the improvement in strip-mine efficiency — in 1967 the average production per mine employee peaked at 10,889 tons. On the other hand, the deep-mine average production per mine employee 138 co m cm wo m (NO l/l H(N r- rH O CM H ^ Cn tJ 1 Cn WO r* cm «"»• in r^ o wo m cn wo cn r- •n 1 cn O C\ i CO CO GO r*» m wo m m m ■»» •*? cm r- cm ^ o © co wo wo co HO^OOi ^ ^ cn ^* co wo m co co in co H HOOOO ^* ^* CO ^* ^ O H H O O rH H H © WO CN © CO h o cn o cn ^ ^ CO ^* CO r» h wo •<* r*» ^ cm o H co o o o o cn ■^ iC ^r ^ co O >H rH O O ^* ^* ^C ^* ^^ O CO H O 3 »C3 © in © m wo co m co in p- cn ^« cm wo © r* coco r- co h cn cn co ^ ^* co co ^* CO ^ CO ^ HHHMfl m cn w cn cq h H ^ P* o WO H CO rH rH rH rH CM H wO O cn CO co coco cn cn wO rH WO CM in r> co c c • 1 t t ■ • t • c • • • • • • rH O CM O CO CO o CO cn CM CO WO o cn ce © CM CM O CM CO CM CM in o CM rH H cn P* H cn m rH CO rH tp co rH H cn cn cm in wo CO CO CM o CM IX) CM H cn rH H CO H cn WO m CO in in m CO o cn co wo in • • • • • 1 • • fl • C • * t • e e CM CO H cn Tf CO WO CO wo m CO cn H CO WO cn CM H CM in CM wO CO CN cn rH CM o o CM CO rH in rH in H r- H H CN ^" CO H H co H CO m m H O CM O cn o CO cn CO m m cn CM rH CM in CM cn co co r- in ^ cn m in wo m in in in in CO cn CO © CM CO wo o CM CO m H CO CO CO CM CM CM rH m CM O CM ^ H cm cn CM H <*• co CO CO cn cn H H CM co cn H H co cn o 00 cn rH cn cn H CO cn rH cn rH wO p* cn rH in r- cn H e'- en H CO cn H CN P» cn rH H S cn rH O r* cn H cn co cn cn H rH 139 >i i H CO H Z oa h 11 H 2 CQ H 8 w CQ CN CN r-l cn cn in vo m # • • • • m o p* cn o\ H H © O cn O H P» cn O O P» CN O) P» • t • t I en oo in o P* H O O © cn CN CN 00 rr ^ cn •*• ** vo en • • • • • en cn oo r* en \o *& ^ en ^p *# en cn H o ii VO ^D vo kO cn cn cn cn cn 140 H I B' < 05 C5 141 peaked in 1967 at 5,128 tens. Although this fiqure represents only 47.1 percent of the strip-mine average production for this same year, since 1923 it represents an increase of 698 percent. From an historical perspective, given the percentage changes in average production per mine employee per year between surface and deep-mine operations, the greatest improvements in efficiency have been achieved in deep-mine operations. Table 4-2 further shows employment and production patterns of deep and surface-mine operations from 1960 through 1984. Overall, deep-mines have produced 51.1 percent of total Illinois coal production and employed 67.3 percent of the labor. Comparing 1960 to 1984, deep-mine production has increased by approximately 73 percent, while deep-mine employment has increased by only 54 percent. As a percent total Illinois coal production, deep-mines peaked in 1984 at 61.2 percent. Since 1974, the percent of total coal production has varied from 53 to 61 percent, while deep-mine employment has ranged from 69 to 73 percent. The balance of these percentages are those percentages which apply to surface-mines. Another important consideration of yearly coal production and tons of production per mine employee was contract negotiations between the United Mine Workers of 142 fs £«§ •^ ■<* b % ^ h -& Ii83i mm alias ko in 1/1 tin Ln^invovo r* m g oo cm r» oo '^ ^ c-» vofn^^o r-i r* © cm ve a a a a a* a a a a si si # si si a ssssi. assai. sasss en ^ ■<*•*■ m in in ^ t ^ en en en en en 00 00 O) W H H CM H 00 t lO "• N VO VO fl r*l *T ^ *T T} 1 ^t ig( ^f «qi Sg* "T 1*1 3 v In sssas issis sasaa sisss siasi iiM WKftfaRi' Ksfs&s rfarfaa £££§£ ^rffSg ^§8$? Id h ffl h 3 v cm « c* H o> a d h ® m* en ro* 04* * vo* O 03 CO H 00 f CN CN VO H CN W (*1 {*) f*i CI f) ffl f) n n Qs Ui 9 ^ fn f) (*") W ^S* ^* o ci el (O o ciforororo inomHH vo r*- en co <*o t • • • • » • * • * H S in in S In in 8 S ^ nflnfnM cncncncncn 8Mse sisia in ^ m ^ ^a* ^•^•^•^•n SOddS 3dSdS 3$S SSSSS m* vo* in" m ui inmmirt> • • t • * t t • t • ^h* ^T ^V *^» ^3^ ^r ^^ ^J^ ^Sr ^n sftfsjsjw" s'smaKf ssa cr> co* en 4 3 a m* en oo fl s 144 America (UMWA) and the Bituminous Coal Operators Association (BCOA). These negotiations take place approximately every three years. Since 1960 the UMWA and BCOA have been on strike five times: 1968 for 6 days; 1971 for 44 days; 1974 for 27 days; 1978 for 111 days days and 1981 for 72 days. The strike of 1978 had a dramatic impact on coal production, reducing Illinois' coal production to 48.7 million tons, the lowest production level since 1963. 145 COAL PRODUCTION AT THE COUNTY LEVEL The Illinois Department of Mines and Minerals estimate total coal production since 1882 at approximately 5 billion tons. Production was located in 71 counties throughout the state, of which the top ten counties produced 3.5 billion tons, or 70 percent of this total. Even though coal deposits are spread throughout most of the state, production has been in a few central and southern counties of the state. Franklin County, located in the southern part of the state is the largest coal producing county with 641.3 million tons (12.8% of total Illinois production). In 1984, Franklin County ranked second at 7.8 million tons, or 11.9 percent of 1984 production. Seven of the counties that appear in Table 5-1, also appear in Table 1-2. This indicates that those counties with a majority of the coal resources are also the counties with the most coal production . Table 1-2 lists the top ten counties with deep and surf ace-minable high potential resources by county, type of resource and percent of total remaining resources , 146 whereas Table 5-1 lists the top ten producing counties by: total production since 1882; percent of total production; 1984 production and percent of total production for 1984. An interesting point of Table 5-1 was the comparison of "to-date" production to "1984" production. These percentages have stayed relatively the same at 70 percent of total Illinois coal production. Comparing the two columns of percentages indicate that most counties ' to-date and 1984 production have stayed within three percent of one another, except for Perry and Sangamon Counties. Not shown in Table 5-1 is how coal production has shifted from one region to another. These shifts have occurred, through the years, between central and southern Illinois . Table 5-2 lists the top ten counties with high potential deep and surf ace-minable coal resources and their respective total mine value. These figures are based on the 1984 average price per ton of $31 for deep-mines and $27 for surface-mines. The total value of these coal resources is estimated at $.8 trillion dollars, with Washington, Christian, Montgomery, Sangamon and Macoupin Counties at $.1 trillion, each. 147 TABLE 5-1 TOP TEN COAL PRODUCING COUNTIES PRODUCTION AND PERCENT OF TOTAL 1882-1984 TOTAL % OF % OF PRODUCTION TO-DATE PRODUCTION 1984 COUNTY ( TO-DATE ) PROD. (1984) PROD. ===== ====== :===::=:=:==========: =========:===: ============== : === = = = = = FRANKLIN 641,329,930 12.8 7,788,141 11.9 WILLIAMSON 444,666,281 8.9 3,991,273 6.1 PERRY 408,171,360 8.1 14,995,637 23.0 ST. CLAIR 360,731,220 7.2 2,246,721 3.4 CHRISTIAN 338,315,705 6.7 3,009,648 4.6 FULTON 312,839,720 6.2 1,066,545 1.6 MACOUPIN 309,787,507 6.2 3,395,459 5.2 SALINE 270,786,005 5.4 5,191,311 8.0 SANGAMON 233,449,607 4.7 .0 RANDOLPH 194,796,221 3.9 4,236,427 6.5 TOTAL 3,514,873,556 70.1 45,921,162 70.3 SOURCE: Illinois Department of Mines and Minerals 148 TABLE 5-2 TOP TEN COUNTIES HIGH POTENTIAL COAL RESOURCES AND VALUE BASED ON 1984 ESTIMATED F.O.B. MINE VALUE BILLION COUNTY TONS ==============5== :=========: WASHINGTON 3,503 CHRISTIAN 3,481 MONTGOMERY 3,466 SANGAMON 3,426 MACOUPIN 3,048 CLINTON 2,150 VERMILION 2,144 FAYETTE 1,992 LOGAN 1,977 PERRY 1,868 TOTAL 27,055 BILLION DOLLARS 110.0 109.3 108.8 107.6 95.7 67.5 67.3 62.5 62.1 55.8 846.6 149 COAL PRICES AND REVENUE The demand for Illinois coal is a function of the need and price it receives in the marketplace. This demand and price are further influenced by the quality of the coal (% sulfur, % ash, % moisture, BTU/lb); type of end-user; availability and price of alternative fuels; transportation costs; size of coal reserves; coal supplier reliability; taxes and environmental constraints. In recent years, more than 85 percent of Illinois coal was sold to the electric utility industry; 18.4 million tons in Illinois and 37.8 million tons outside of Illinois. The electric utilities bid for stable long-term contracts which may or may not allow for built in price escalation. Secondly, they seek reliable coal suppliers who can guarantee a given quantity and quality of coal for the life of the generating station. Further, they may require a given coal quality that meets certain environmental guidelines established by federal and state laws . The price per ton of coal as discussed in this report is f ree-on-board average mine price (f.o.b. mine 150 price). F.o.b. mine price only includes the mine cost of coal , insurance and taxes and excludes transportation and transportation related expenses. In comparison, the delivered price of coal to the end-user includes all cost components. In most cases, f.o.b. mine price is from 25 to 99 percent of the delivered cost of coal to the end-user. A report published by the Illinois Energy Resources Commission concluded that transportation costs can add to the f.o.b. mine price of Illinois coal by less than 1 percent to as much as 75 percent, depending on distance transported, mode of transportation and tonnage. The smallest transportation cost would be those operations that are mine-mouth (the generating station is adjacent to the coal mine), while the greatest transportation cost would be those out-of-state end-users consuming Illinios coal. For example, Illinois utilities consuming Illinois coal in 1982 averaged $4.40 per ton in transportation cost, while the highest out-of-state transportation cost was $23 per ton. Because transportation costs are excluded in this study, the f.o.b. mine price will be less than the delivered price of coal. Further, in recent years, the overall percentage increase in the f.o.b. mine price has been less than the overall percentage increase in the delivered price because of the deregulation of railroads. 151 The last six years have seen increases in transportation costs as high as 340 percent. Total f.o.b. mine value of the 1.4 billion tons produced from 1960 through 1984 was estimated at 17.7 billion. This was determined by taking the total production per year times the respective average f.o.b. mine price and adding the 25 year total. For calendar year 1984, revenue from the 65.3 million tons of coal was f.o.b. mine valued at approximately $2 billion. In this same year, the average price per ton of deep-mine production was $31.40, while surface-mine production was valued at $27.48 per ton. The weighted average f.o.b. mine price, from both surface and underground mines was $29.88. In recent years, the cost of production from underground mines has been about 15 to 20 percent greater than surface-mines , thus the difference in the price per ton of coal. It is worth noting that the statewide average f.o.b. mine price was determined by taking the total mine value of the coal and dividing by total production. In most cases, the f.o.b. mine price for specific mining operations will be different than this statewide average. In 1960, the average f.o.b. mine price was $4 per ton. Since that time, the price of coal has increased by 152 approximately 647 percent. For the period 1960-1965, the average f.o.b. mine price of coal was reduced by an average 1.3 percent per year, from $4 per ton in 1960 to $3.74 per ton in 1965. Over the next 8 years, the average mine price per ton of coal started escalating by an average 10.6 percent per year, from $3.85 per ton in 1966 to $6.71 per ton in 1973. With the advent of the Arab oil embargo, the price per ton of coal, along with all other fossil-fuels, started escalating dramatically. From 1973 to 1974, the average mine price per ton of coal increased by 49 percent, almost two-thirds of the total increase of the previous 8 years. Calendar year 1974, saw the first average mine price of $10 per ton and in 1978 the price had increased to over $20 per ton. Since 1973, the average mine price has increased by approximately $23 per ton, or 345 percent. Another measure and more accurate measurement of f.o.b. mine price is cents per million BTU. This calculation is used to compare the various types of coal, as well as other sources of energy, since it is difficult to compare tons of coal to barrels of oil , to kilowatthours of electricity, to cubic feet of natural gas. Assuming an historical 21.5 million BTU per ton of Illinois coal, the following cost per million BTU can be calculated. In 1960, the average mine price was 18.6 153 cents per million BTU, while in 1984 the price increased to 139 cents per million BTU. This calculation was performed by taking the average mine price for a specific year and dividing by the millions of BTU per ton of coal. Table 6-1 lists the average f.o.b. mine price for surface-mines , underground-mines and a weighted average for all mines from 1960 through 1984. Also, Graph 6-1 shows the average mine prices by type of coal operation and year. The emphasis of this graph is the minimal growth of the trend lines in the beginning years and how these lines increase dramatically after the Arab oil embargo. Graph 6-2 projects the total mine revenue in billions of dollars from 1960 through 1984. The point of interest between these two graphs is that Graph 6-1 shows a continuous increase in f.o.b. mine price after 1972, while Graph 6-2 shows peaks and valleys after 1972. This indicates that the percentage change in f.o.b. mine price, in many cases, was less than the overall percentage change in production. A comparison was also made on the average cost of coal based on sulfur content. Monthly fuel adjustment filings to the Illinois Commerce Commission by Central Illinois Light Company, Central Illinois Public Service, Commonwealth Edison Company, Illinois Power Company, 154 TABLE 6-1 AVERAGE AND TOTAL FOB MINE VALUE BY TYPE OF MINE AND YEAR 1960-1984 AVERAGE SURFACE UNDERGROUND TOTAL YEAR ($ TON) ($ TON) ($ TON) =========== ============ :================= ========: 1984 est. 27.48 31.40 29.88 1983 27.20 31.05 29.42 1982 26.67 30.44 28.84 1981 25.48 29.07 27.50 1980 22.86 25.58 24.39 1979 21.13 24.08 22.75 1978 19.27 21.56 20.44 1977 15.99 18.34 17.28 1976 13.78 17.76 15.90 1975 12.72 16.30 14.64 1974 8.70 11.12 10.00 1973 5.81 7.52 6.71 1972 5.49 6.83 6.14 1971 4.95 5.96 5.46 1970 4.53 5.33 4.92 1969 4.23 4.43 4.32 1968 3.92 4.14 4.01 1967 3.83 3.96 3.88 1966 3.81 3.90 3.85 1965 3.72 3.78 3.74 1964 3.81 3.76 3.79 1963 3.83 3.77 3.80 1962 3.90 3.81 3.86 1961 3.96 3.87 3.91 1960 4.01 4.00 4.00 REVENUE (BILLION) 1.951 1.717 1.772 1.424 1.525 1.354 .996 .931 .924 .872 .581 .413 .402 .319 .319 .281 .249 .251 .243 .218 .208 .196 .187 .176 .183 TOTAL 17.692 155 i X < 156 I <& 32 < OS o UJ ID Ld UJ o o cm — r* 00 — I - CD — r~ — i— CM — i— O — r- 00 d — i— CD d — p- d 00"^ 00 CM ooo 1^00 ncd or NCM ul NO CD 00 CD CD co«*- CD CM COO CM O d d savnoa Norma 157 Interstate Power Company, Iowa-Illinois Gas and Electric Company and Union Electric Company were evaluated. These filings break down, in most cases, the monthly quantity and type of fuel, supplier, fuel characteristics, transportation cost and total cost to individual utilities and generating station. The study period encompassed calendar year 1984. Sulfur content was broken down by those categories listed in a previous section titled "low to medium sulfur content." The five categories were: less than 1 percent sulfur; 1 to 1.5 percent sulfur; 1.6 to 2.5 percent sulfur; 2.6 to 3 percent sulfur and greater than 3 percent sulfur . Based on the evaluation, it was determined that the lower sulfur coals, on average, were priced almost equal to the coals with a higher sulfur content. When compared on a BTU basis, the lower sulfur coals were cheaper than the higher sulfur coals. Also, the data base on sales to end-users indicates that a majority of the low sulfur high BTU coals are being sold out-of-state. These states could have more stringent environmental controls which demand a better quality coal. Further, because of distance transported, the out-of-state users are wanting a better quality coal to reduce the cost per million BTU of delivered coal. 158 The "less than 1 percent sulfur" coal ranged in price from $24.88 to $32.52 per ton, with a weighted average of $29.47; the "1 to 1.5 percent sulfur" coal varied from $19.54 to $42.41 per ton, with a weighted average of $27.40; the "1.6 to 2.5 percent sulfur" coal varied from $18.55 to $44.41 per ton, with a weighted average of $31.10; the "2.6 to 3 percent sulfur" coal ranged from $19.55 to $42.33 per ton, with a weighted average of $28.31 and the "greater than 3 percent sulfur" coal ranged from $18.71 to $45.42 per ton, with a weighted average of $29.26. 159 COAL MINE OPERATIONS AND ILLINOIS STATE PRODUCT As a percent of Illinois State Product (ISP), coal mining has not been that important to the overall market value of goods and services produced in Illinois. The Department of Commerce and Community Affairs' Illinois Data Book lists the ISP for a ten year period, through 1982. For 1971, the mine value of Illinois coal production accounted for approximately one-half percent of ISP; coal production was valued at $319 million while ISP was $63.3 billion. In recent years, the percent of total mine value to ISP has increased to approximately one percent . Even though the percentage of ISP because of coal mining is minimal, it must be remembered that much of the coal mining activity is located in the lower one-third of the state. Because this area is not heavily industrialized or commercialized like many other areas of the state, coal mining in many cases is the major economic activity. Further, because of the multiplier effect, that is , dollars being passed from one consumer to another in the form of purchasing power, the economic impact is even greater. Assuming a multiplier, established by the United 160 Mine Workers of America of 2.25, the total economic impact of coal production was estimated at $5 billion. Because the overall economic impact of mining is minimal at the state level, an attempt was made to gather total market value data on goods and services produced at a county level. Public documents were evaluated to determine if such data was compiled at the county level. After researching various documents, it was determined that no such data was collected at either the state or county level. Because this market value data was not available, a "second best" approach was used. Data was collected at the county level on employment and personal income from the Bureau of Economic Analysis' (BEA) Local Area Personal Income and County Business Patterns published by the U.S. Department of Commerce. These figures were used to derive the percentage of employment and personal income from coal mining in selected counties. Ten counties were studied to determine the percentage contribution of coal mining activity to overall county employment and personal income. Coal mining employment percentages were determined by taking mining employment and dividing by overall county employment. However, in most cases, a general category of mining was used and includes all mining activity, not just 161 coal mining. According to BEA: "personal income consists of income received by, or on behalf of, all residents of an area. It includes the income received by persons from all sources, that is, from participation in production, from transfer payments, from government and business , and from government interest, which is treated like a transfer payment. Persons consist of individuals, nonprofit institutions , private noninsured welfare funds and private trust funds." The personal income percentage was derived by taking county personal income from mining and dividing by total county personal income. As with employment, these figures include all types of mining, not just coal mining. Of the ten counties studied, mine employment accounted for 9.2 percent of total county employment, while personal income represented 12.1 percent of total income. These figures indicate that on average, miners receive a higher annual income than other types of employment at the county level. The highest percentage of employment and income from mining were seen in the counties of: Franklin where mining employment accounted for 24.5 percent of employment and 2*8.3 percent of personal income; Macoupin — 11.4 percent of total employment and 12.2 percent of total personal income and Perry — mining employment 22.7 percent, 162 with 36 percent of personal income. The smallest impacts of mining were seen in the counties of: Fulton with 4.2 percent of employment and 5.5 percent of personal income and St. Clair at 1.8 percent of employment and 2.4 percent of personal income. Couple these percentages with the multiplier effect and mining does impact the overall economic performance of many Illinois counties . 163 APPENDIX A 164 NOTES [Note 1] CLASSIFICATION OF COAL RESERVES. The Illinois State Geological Survey classifies "high potential for development" as having characteristics of those coal deposits currently being mined. They are coal seams that are more than 4.5 feet thick and less than 400 feet deep, or more than 5.5 feet thick and less than 1,000 feet deep. "Moderate potential for development" includes coal deposits currently being leased, but slightly thinner and/or deeper than seams currently being mined. This is coal excluded from the high potential category that is greater than 3.5 feet thick and less than 1,000 feet deep, or greater than 4.5 feet thick and less than 1,200 feet deep, or greater than 5.5 feet thick with no limit on depth. "Low potential for development" are those coal seams that 165 have inferior characteristics such as minimal coal thickness, depth of overburden, shale partings, etc. "Restricted resources" are those deposits hampered by location due to cities, dams, highways, public lands, or other surface areas that might be impacted by subsidence. For deep-mine operations, approximately 50 percent of the coal seam can be removed with room and pillar mining, whereas longwall mining can remove up to 90 percent of the coal seam. Surface mine operations can remove up to 100 percent of the coal seam, but on average about 85 percent. If the coal is washed, an additional 5 percent of the coal is lost. [Note 2] SPRINGFIELD COAL SEAM. The Springfield ( No . 5 ) seam was formerly called the Springfield and/or Harrisburg (No. 5) Coal. The term Harrisburg has been dropped by the Illinois State Geological Survey. 166 [Note 3] DEPTH OF COAL. The older the coal seam the greater the depth of coal, with the greatest depth of all coals occurring at the center of the Illinois Basin Coal Field in southeastern Illinois. As the seam moves outward from the center of the Basin, the deposits become shallower. For example, for any given area, the Springfield ( No . 5 ) seam will always lie below the Herrin ( No . 6 ) coal seam and the Herrin ( No . 6 ) will always lie below the Danville. ( No . 7 ) seam. However, the actual depth of each coal seam will vary from one area to another because of terrain and past soil erosion. For a more thorough discussion of the coal seams in Illinois see: Department of Energy and Natural Resources' Illinois Energy Plan Volume 4 titled, An Inventory of Coal Resources of Illinois , prepared by the Illinois State Geological Survey . [Note 4] LOW TO MEDIUM SULFUR COAL. 167 For greater detail of low to medium sulfur coal resources , one should read "Murphysboro Coal, Jackson and Perry Counties: resources with low to medium sulfur potential" published by the Illinois State Geological Survey. [Note 5] MARKET POWER OF COAL COMPANIES. The level of market power is important from a theoretical perspective. When four or less firms control a minimum of fifty percent of output, then they have some level of market power, or influence over price and output. In this case, other coal producers will look to the leaders for output and price determination. This is less significant in the coal industry, since coal is considered a differentiated product. However, the market is seeking reliable coal prices and supply and it is the major coal producers who can guarantee such supplies . [Note 6] RANKING OF COAL RESERVES. 168 It should be remembered throughout this section of the report that the ranking of coal reserves , by individual company, only lists those companies that have furnished coal reserve data to Keystone's 1984 Coal Mine Directory. It is possible there are many companies that have not furnished this information. [Note 7] MINE PRODUCTION CAPACITY. The data used in determining annual mine production capacity was derived from public documents or private sources. With public documents, in many cases , mine production capacity was given in tons of production per day. To determine the annual production, this figure was multiplied by 240. However, annual mine production is determined by a number of variables which can adjust this figure. For example, the production capacity may be for only one shift per day, whereas a mine could add shifts to increase production. Other 169 variables which also may increase capacity are: increased labor force; additional capital equipment and longer work day or week, etc. [NOTE 8] PRODUCTION PER MINE EMPLOYEE. The average tons of production per mine employee were derived by dividing annual coal production by the number of mine employees. Mine employees included: coal miners; supervisors and mine support staff. Tons per man-day were derived by dividing annual mine production by total number of employee hours. In deriving tons per man-day, the following categories were available : Underground-minehours ; surface at underground hours; strip-mine hours; auger hours; culm bank hours; dredge hours; other surface hours; central shop hours; preparation plant hours ; office workers and total mine hours . For this study, total mine hours were used in deriving the tons per man-day. It 170 is difficult to compare one mine to another because all mines do not include the same categories. For example, some mines may have a central shop, preparation plant and office workers; while other mines may use these facilities in conjunction with other mines . [Note 9] COAL PREPARATION PLANTS. A coal preparation plant is used for cleaning and sizing of raw coal before it is transported. Coal preparation is a term for describing the physical and/or mechanical processes applied to coal to make it suitable for a particular need. Coal cleaning is any process that separates coal from non-coal minerals , which may be mixed with coal when mined. This mixture, called raw coal or run-of-mine (ROM) coal, includes clays, shales, and sulfur bearing pyrites. These minerals are located above and below the coal seam and within the coal seam itself. Cleaning processes include 171 physical methods and chemical methods. Chemical methods currently are too expensive to be commercially feasible. Chemical methods remove about 65% of all sulfur, while physical methods remove only 30 percent. Physical coal cleaning methods are used broadly in the Illinois Basin. Coal companies own the facilities, usually found near tipples of specific mines . Cleaning facilities vary from simple structures to large complex structures where several types of physical processes occur simultaneously. Each large facility consists of large modular units, either as duplicates for increased volume or as different basic types for different functions . The system divides and cleans many fractions of the raw coal and recycles water and other process agents . All physical coal cleaning processes in the Illinois Basin today operate by gravity separation. In coal cleaning, the clean coal is lighter than the mineral debris and segregates on top. 172 The principal reason cleaning facilities have many kinds of modular units is that the coal comes in different size chunks , which require different types of gravity separation units. Machines called crushers reduce the size of the large chunks so that the more evenly sized product can be divided into three basic fractions known as coarse, medium and fine. Screens or Sizers separate the feed into coarse, medium, and fine fractions . Coal enters the top of the devise and falls on a series of shaking or vibrating screens , which may be tilted so that the overall coal feed will move across, as well as through the screens. Screeniing may be wet or dry. In wet screening, water mixed with the coal pushes the coal across and through the screens . The screen mesh may be perforated plates or woven sieves , or spaces between parallel bars, depending on the size of the coal. Jigs , for coarse coal, ( 1 to 6 inch chunks) are 173 so named because they jiggle the coal. They cause the light coal to jiggle upward and the heavy mineral debris to move downward. The main component of a jig is a very long trough that holds water and coal. A perforated divider running the length of the trough keeps the coal on one side but permits water to flow on both sides. During jigging, the water on both sides of the divider is made turbulent by pneumatic devices acting on the coal-free side. This turbulence jiggles the coal, causing it to stratify above the mineral debris. The coal feed, which already may be mixed with water to form a slurry, enters at one end, flows the length of the trough, and leaves two exits at the far end. Clean coal leaves by the upper exit and mineral debris leaves the lower exit. Heavy Media Vessels are used for coarse coal . . Mineral debris has a greater specific gravity than coal. Bituminous coal has a greater specific gravity than water 174 and sinks. Heavy media vessels contain a heavy fluid mixture of water and magnetite. This fluid can be adjusted so that the coal will float and the debris will sink. The coarse feed enters the heavy media vessel , and after some stirring and settling, coal is drawn off the top and mineral debris exits near the bottom. Later, the magnetite suspension is separated from the coal and mineral fractions , and recycled. Cyclones are used for medium coal (.02 to 1 inch). Small coal particles in heavy media float more slowly than - large ones , and separate too inefficiently and slowly from the mineral particles . An increase in gravitational force separates them more quickly. In the cyclone, centrifugal force takes the place of gravity and exerts much more force on the particles . The coal feed, as a heavy media slurry, enters a vertical, funnel-shaped chamber. During the spin process, mineral debris slides down the sides of the 175 cyclone while clean coal rises through the center and is drawn off the top. Washing Tables are for medium coal and reguires a tilted table with parallel ribs. The ribs project from the surface and against the slope, as in contour farming. Coal enters the table as a slurry at the top of the tilt and is shaken back and forth in the direction of the ribs . Clean coal washes over the ribs while mineral debris collects. in the furrows. Toward the end of process , the clean coal collects at the base of the tilt while mineral debris collects at right angles to the coal at the end of the furrows . Fro"th Flotation is used for fine coal known as "fines" (less than .02 inch). Initial crushing produces significantly greater amounts of fines than does digging the raw coal. Fines are essentially dust and respond extremely slow to gravity. A slurry of fines is mixed with a chemical substance which adheres to coal surfaces but not to the surfaces of 176 mineral debris. This chemical substance also adheres to air bubbles so that coal particles will join with the air bubbles. In a froth flotation vessel, the slurry and its chemical assistant are aerated with air bubbles entering from below. The coal rises to the top as a froth, while the mineral debris sinks or remains in the aqueous slurry. Dewatering of clean coal is required because most cleaning processes use water. Consequently, freshly cleaned coal is wet. This water adds weight, decreases burning quality and can cause handling difficulties. Several devices dry the coal immediately after cleaning. Vibrating screens shake water from coarse coal . Medium and fine coal may be placed in centrifuges and spun dry. Approximately one-third of the cleaning facilities in the Illinois Basin use centrifuges. Another process , most appropriate for fines , is the vacuum thickener, in which water is evaporated under vacuum 177 conditions. Sources: COAL RESOURCES FACT BOOK and Dictionary of Mining, Mineral, and Related Terms. [Note 10] LONGWALL MINING. Longwall mining is a coal removal technology which allows the removal of 58 to 90 percent of a coal deposit. The technology is laid out much like room and pillar mines , but uses a panel 500 to 1,000 feet wide and 1,500 to 2,000 feet long. The coal is removed by either a plow or shear which moves along the face of the wall. A plow operates much like a carpenter's plane, removing a thin layer of coal as it moves along the face, while a shearer is a self propelled track mounted machine with rotating cutting heads, much like a continuous miner. Roof supports, consisting of hydraulic jacks or shields are used to support the roof, once the coal is removed. As the coal is further removed, the jacks or shields are advanced, thus allowing the unsupported roof to 178 subside into the cavity. According to Coal Mining and Processing, there are 9 faces utilizing longwall mining in Illinois. These 9 faces represent about 11 percent of Illinois' 1984 coal production. [Note 11] COMPARISON OF INDUSTRIES. The three industries compared in this section are: bituminous coal mining, manufacturing and durable goods. Bituminous coal mining includes establishments primarily engaged in producing bituminous coal. This industry includes underground mining, auger mining, strip mining, culm bank mining, and coal cleaning, crushing, screening, and sizing plants, whether or not operated in conjunction with the mines served. The bituminous industry carries a Standard Industrial Classification (SIC) Major Group 12. Durable goods are establishments engaged in the distribution of automobiles and other motor vehicles; automobile parts and supplies; 179 furniture and home furnishings; lumber and other construction materials; sporting, recreational, photographic, and hobby goods, toys and supplies; metals and minerals, except petroleum; electrical goods; hardware, and plumbing and heating eguipment and supplies; machinery, eguipment and supplies and miscellaneous durable goods. This industry is classified as SIC Major Group 50. The manufacturing industry includes establishments engaged in the mechanical or chemical transformation of materials or substances into new products. These establishments are usually described as plants, factories, or mills and characteristically use power driven machines and materials handling eguipment. Establishments engaged in the assembling component parts of manufactured products are also considered manufacturing if the new product is neither a structure nor other fixed improvement. The materials processed by manufacturing 180 establishments include products of agriculture, forestry, mining, and quarrying as well as products of other manufacturing establishments. Manufacturing has a SIC code from 20 to 39. Source: Standard Industrial Classification Manual, 1972, Office of Management and Budget , Office of the President . 181 SOURCES Amax, Incorporated. 1983 Annual Report. Greenwich, Connecticut . Arch Mineral Corporation. "History and Review." St. Louis, Missouri. Coal Age. "Numbers Are High, Prospects Low For Top Coal Companies." April 1985. Coal Marketronix. "National Marketing Report: Producing District Version." January-December 1984. Pasha Publication. Arlington, Virginia. Coal Outlook. Guide to Utility Coal Marketing. Pasha Publications. 1983. Arlington, Virginia. Fortune. "The Fortune Service 500." June 10, 1985. Fortune . "The Largest U.S. Industrial Corporation." April 29, 1985. Illinois Basin Coal Planning Assistance Project. Coal Resources Fact Book. Volume I. Prepared for the U.S. Geological Survey by Environmental Systems Application Center, School of Public and Environmental Affairs, Indiana University. February 1983. Illinois Central Gulf. Import Coal Guide. February 1983 Chicago, Illinois. Illinois Commerce Commission. "Monthly Fuel Adjustments." Central Illinois Light Company, Central Illinois Public Service, Commonwealth Edison Company, Illinois Power Company, Interstate Power Company, Iowa-Illinois Gas and Electric, and Union Electric Company. January-December 182 1984. Springfield, Illinois. Illinois Department of Commerce and Community Affairs. Illinois Data Book. State and Regional Economics. 1982 Edition. Springfield, Illinois. Illinois Department of Energy and Natural Resources. An Inventory of the Coal Resources of Illinois. Volume 4. September 1982. Springfield, Illinois. Illinois Department of Mines and Minerals. Annual Coal , Oil and Gas Report. Individual years 1960 through 1984. Springfield, Illinois. Illinois State Geological Survey. Coal and Water Resources For Coal Conversion in Illinois. Cooperative Resources 4. William H. Smith and John B. Stall. 1975. Champaign, Illinois. Illinois State Geological Survey. Deep-Minable Coal Resources of Illinois. Colin G. Treworgy and Margaret H. Bargh . Circular 527. 1982. Champaign, Illinois. Illinois State Geological Survey. Murphysboro Coal , Jackson and Perry Counties: resources with low to medium sulfur potential. Russel J. Jacobson. IMN 85. 1983. Champaign, Illinois. Illinois State Geological Survey. "Paleoenvironments and Distribution of low-sulfur coal in Illinois." Colin G. Treworgy and Russel J. Jacobson. Champaign, Illinois. Illinois State Geological Survey. Strippable Coal Resources of Illinois Part 8. Roger B. Nance and Colin G. Treworgy. Circular 515. 1981. Champaign, Illinois. Illinois State Geological Survey. The Seelyville Coal : a major unexploited seam in Illinois. Colin G. Treworgy. IMN 80. March 1981. Champaign, Illinois. Keystone Coal Industry Manual. 1984 Coal Mine Directory McGraw-Hill. New York, New York. 183 Moody's Investor Service. Industrial Manual. Individual years 1960 through 1984. New York, New York. Moody's Investor Service. Public Utility Manual. 1984. New York, New York. Office of Management and Budget. Office of the President Standard Industrial Classification Manual. 1972. Washington, D.C. Old Ben Coal Company. Response to a letter of inguiry. Lexington, Kentucky. Peabody Coal Company. Response to a letter of inguiry Fairview Heights, Illinois. Peabody Coal Company. "The First One Hundred Years." May 20, 1983. St. Louis, Missouri. Peach, W.N. and Constantin, James A. Zimmermann ' s World Resources and Industries. Harper & Row, Publishers. 19 72. New York, New York. The Williams Companies. Annual Report For 1983. Tulsa, Oklahoma . U.S. Bureau of Mines. Quarterly Employment and Injury Report . January through December 1984. Washington D.C. U.S. Department of Commerce, Bureau of Economic Analysis. County Business Patterns 1982. CBP-82-15. Washington, D.C. U.S. Department of Commerce, Bureau of Economic Analysis Local Area Personal Income 1976-82. June 1983 Washington, D.C. U.S. Department of Commerce. 1983 Statistical Abstract Washington, D.C. 184 U.S. Department of Energy, Energy Information Administration. Coal Distribution January-December 1984. April 1985. Washington, D.C. U.S. Department of Energy, Energy Information Administration. Coal Production 1983. October 1984. Washington, D.C. U.S. Department of Energy, Energy Information Administration. Directory of Coal Production Ownership, 1981. October 1983. Washington, D.C. U.S. Department of Energy, Energy Information Administration. 1983 International Energy Annual. DOE/EIA~0219(82) . September 1984. U.S. Department of the Interior. A Dictionary of Mining, Mineral, and Related Terms. Washington D.C. 1968. ifTJ-JSL [PORT DOCUMENTATION PAGE 1. ncrorr no. ILENfVRE-ER- 85/03 s. m*cipi»*r» a«».«j»*« Me. ITHU end SwtrtHle An Historical Perspective on Illinois Coal Resources 4. Xop*rt Data and Production, 1960-1984, August 1985 jAutK^a) M> Fred E11is ft. Performing Or|»nl»»Uon Rapt. Ma. 1 »arformlng Orfanlt alien H»m« and Addreaa M. Fred Ellis 103 W. Rutledge Pawnee, Illinois 62558 I Spontering O'ganliallon Nama and Addreea Illinois Department of Energy & Natural Resources 325 West Adams Springfield, IL. 62704 ia rn>|-ct/T.i»/Worm Unit Ha. 85/3008 11. Gontract(C) Of Grarft(O) Ma. (O) IS. Type of Raport & Period Covered 14. . Supplementary Notee Afeatrect (Umrt: 700 aroroa) The study analyzes Illinois coal resources and production from the historical perspective of the period 1960 through 1984. The study examines demonstrated Illinois coal resources, major coal seams, major coal producers in the State, mine employment and production, coal production at the county level, coal prices and revenues and coal mine operations compared to Illinois State Product. % Document Anelyala a. Deecriplora Coal Reserves Coal Mines Coal Seams b. Idanllflarm/Opan-Endad Terma Illinois Basin Illinois Coal Production Illinois Coal C COSAT1 Fleld/Oroup i A»aiiaMiity waiameni ^0 restriction on di s tr i buti on . Available at IL. depository libraries or from National Technical Information Service, Springfield . VA, ??1fi1 — 19. Security Ctaaa (Thla Report) Unclassified 2SU Security Claee (Thla Page) Unclassified 21. No. of Pa«ea 184 22. Price AMSt-XSf.le) ornONJu. ro»«u 272 («-77> (Formerly NT13-J5) Department el Commxtt UNIVERSITY OF ILLINOIS-URBAN* 3 0112 000811999