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By William Perry Pendley

Let us go back in time, back to when a Navy veteran from the South was President of the United States, a man from the Rocky Mountain West was Secretary of the Interior and a leading environmentalist was head of the EPA; and there followed what many perceived of as a war on the West-on our water, on our timber, on our oil and gas and mineral exploration, and on our small communities. It's easy to think that I'm talking about the administration of James Earl Carter, III of Georgia, but I'm not. I'm talking about this administration, the administration of George Herman Walker Bush of Texas. I say that as a life-long Republican who never voted for a Democrat and who worked hard to put George Bush in the Oval Office. Many of us wondered, in 1988, what Vice President George Bush meant when he said; "I am an environmentalist." Well, now we know. In his State of the Union address, which was otherwise lacking in specific detail, George Bush said two very specific

Jan 1, 1990

Jan 1, 1966

D. HARRINGTON: Owing to lack of funds, the United States Bureau of Mines have made no experiments in the Bruceton mines in the use of mudite. MR. McAULIFFE: I doubt that mudite cam be delivered at fifty cents a ton and that a mile of heading can be treated with mudite for ten dollars. You could not dig a ton of sand out of a sand hank for that money. L. C. CLARE: The tram road leading to Wattis mine crosses a shale bed and it is easy to screen the shale through a %-inch sieve and load it into a mine car. W. J. REID: A slow trip passing through a mudited entry will dislodge practically no dust, a rapid trip will make air disturbance enough to coat the cars with fine dust. MR. PRYDE: We have used mudite on stoppings around a fire in Reliance and for two months thought they were getting good results, but the fire was found to be drawing air and to be spreading. This mudite was smeared over the stoppings with a trowel. After this apparently failed we used dry adobe.

Jan 1, 1925

Briefly, the machine consists of a steel frame mounted on roller bearing wheels and axles, an electric motor, a fully enclosed speed reduction gear unit, a specially designed centrifugal pump driven through a friction clutch and silent chain, a mixture tank and agitators, and all necessary operating and control mechanism. The wheels are mounted on solid roller bearings made of special roller bearing steel, and are cast with deep chilled threads. The axles are of high carbon axle steel. A General Electric Company motor, of special design to exclude dirt and moisture, is used. It has an unusual overload capacity and a maximum torque at starting speed. Special arrangement can be also made for storage battery operation. The motor drives from one end, through a flexible coupling, to the speed reduction unit, and from the opposite end, through a similar coupling, to the pump clutch. The design of the flexible couplings is such that the drive is reversible. The speed reduction gears are enclosed in an oil and dust proof housing. All spur gears, as well as the main drive clutch, are made of steel forgings, with accurately cut teeth. An aluminum bronze worm wheel and special heat treated alloy steel worm provide the speed reduction for the traction drive. The worm shaft is mounted on Hyatt roller bearings and the thrust is taken in each direction by ball thrust bearings. The main drive shafts are of special alloy steel and operate in Hyatt roller bearings. The slow speed shafts run in extra large bronze bushings. Ample and constant lubrication is provided by splash from the gears running in oil. The Mudite pump is of special de- sign. A renewable wearing plate protects the pump casing from the natural wear of the mixture. The open runner is mounted on an extra large shaft which runs in a Hyatt roller bearing on the pump end and in Timken roller bearings on the outboard end. A special cage prevents water and grit from reaching the pump bearing. All thrust from the runner is taken on the Tim- ken bearings and these bearings also provide for the accurate and easy adjustment of the runner. The pump is driven by a silent chain, which operates on cut steel sprockets, from a friction clutch. The clutch is designed to secure long wearing qualities with minimum attention and its adjustment is easily effected. It is mounted on Hyatt roller bearings and the clutch drive shaft also runs in the same type of bearings. The pump discharges through a nozzle, which is adjustable, and controlled by the operator. The mixture tank is of approximately 650 gallons capacity. It is provided with a mixing well constructed of perforated plate screen to prevent large hard particles from getting into the valve or pump. The tank is filled through an opening in the top directly into the mixing well. On a shaft running longitudinally through the tank are arms so arranged that the mixture is thoroughly mixed and kept in continuous circulation from end to end. This shaft is driven from the speed reduction unit by a steel roller chain operating on cut sprockets. The traction drive is taken from the worm wheel shaft through steel roller chains of extra large size that run on cut steel split sprockets on both axles. An idler sprocket provides for easy chain adjustment. The axles are mounted in solid roller bearings in fully-enclosed dust proof housings, which support the frame through coil springs. These springs eliminate twisting strains on the frame on account of track irregularities and also relieve the working mechanism from road shocks. The speed reduction from the motor to the wheels is such that it gives an operating speed of approximately ninety to one hundred thirty feet per minute. The brakes are of the conventional shoe type and engage the wheels on both axles. They are operated by a hand wheel conveniently located and

Jan 1, 1925

MR. McKEEVER: I think we had to start some- where. The proceeds of the beltbuckles and hard hat stickers will certainly be a beginning in a scholarship for some of our young people. And maybe, you know we might even get one of them sometime to go to the University of Oklahoma. A few years ago the luncheon speaker for tomorrow, Brooks Mitchell, got a few of the mine presidents together and we spent a full five hours of just dedicated listening to Carl Terzian. We listened basically on three subjects: how to work with the media, how to work with image, and how to identify with our political systems and those who are in them. I remember that as one of the turning points in my perspective on how our system really works. This gentleman who will be addressing you today, Mr. Terzian, will be conducting about a three-hour session tomorrow. And it's a shame that our other activities will not allow some of the golfers to probably be there. Those of you who can come to the session tomorrow morning will find it most rewarding. A little bit later on we will also have a panel session. And I see all of the panelists are here except for Bob Golten, but I understand that he is registered. We should have a full afternoon session with Charlie and his panel. When we started working on this, we naturally went back to Carl Terzian to give us some guidance. If there is anything wrong with your session, it's my fault because he knows how these should be done and he guided us along the way. One thing that I am sorry, it wasn't his fault necessarily, is that Harry Reasoner will not be with us for lunch tomorrow. Brooks Mitchell is going to make all of the PR he can out of the fact that Harry got scratched and he got in place for him. Brooks gave me one comment along that line. He said, "Do you know what you get when you cross a gorilla with a computer"? Of course I bit on that. He said. "Well, you get a Harry Reasoner." A little over a month ago I was invited out to California to Woodbury University at Carl Terzian's insistence. I happened to be sitting by one of his vice presidents. It was a formal affair. We had to wear tuxedos and everything and Mr.Green was sitting there and he said, "You know," he didn't know who I was at that time, but he said, "You know Carl really didn't want this formal affair. Said he had a couple of friends coming from the coal mining industry and they wouldn't know what to do with tuxedos." So with that Carl, we will start this little session and it's your mike. MR. TERZIAN: Thank you very much Ira. Let me begin by expressing my appreciation to the men and women of the Institute for allowing me to be here. I'm deeply concerned about my reputation, my image and don't want you to get the inference that I am responsible for Ira McKeever's image. Nobody could be responsible for that! But it is a great case in point that we all should be concerned about our images. I guess tomorrow morning from about 8:30. a.m. to about 11:30 a.m. we are going to do a? hopefully, a productive and very pleasant expertence for all of us in this growing field and great interest that people have in the area of image. I happen to be from Los Angeles. I have a national firm which has handled about 600 corporations', over the years through the areas of public relations,' community, civic involvement all built around a strengthening and safe guarding our precious, free enterprise system. And the message that I hope to give you, as you will be eating your lunch today, is really not so much about the image of individuals but as the attitudes built on what Bill Banowsky

Jan 1, 1982

PRESIDENT PRYDE: I think that the overcutting machine undoubtedly presents a great many benefits, especially where the roof is frail. I have found a good substitute for the Arcwall, getting a lighter machine by equipping a machine with a turret truck, you get a much lighter weight, and while the cutter is not movable vertically, you cut not on top of the seam, but about the middle of it. MR. SC'HLOSS: I would like to ask Mr. Pryde the advantages of cut- ting with this turret-mounted Shortwall machine. PRESIDENT PRYDE: It is better for development work in narrow places. In development work you have a lot of narrow places. MR. LITTLEJOHN: Mr. Chairman, we were compelled at Winter- quarters, one time, to introduce them for reason of sand rolls'. We have in that mine a condition-we have sand rolls from twelve inches to two and a half feet, sometimes higher than that-usually twelve inches to two and a half feet, and we had to get some of the C. E. 7's on the turret there and used them for advance work not only in the entries, but in rooms; not only in that particular district, but in fact all the districts in the mine-we have abandoned the power trucks. You can cut without unloading, and that is one of the principal advantages, and when the sand rolls come in it enables you to cut over the top of the sand roll, but the particular objection, we were working a nine-foot wall, and some of the coal was twelve feet thick, so that the miners have raised a little objection to the drilling.

Jan 1, 1924

By Vincent R. Bovino

The future of coal mining is bright - only if we realize and then manage as though we are competing in the world marketplace. Accept it or not, our market is global. We tend to think our problems are caused by the uncontrolled foreign production of coal, and the uncontrolled drop in coal prices. I submit that our problem is not the world pricing structure - part of our problem is our on-site cost structure - our productivity. We are the world's best at getting out the tons - that is, production. Most mine managers thrive on that. What is in serious doubt is our productivity - our ability to produce tons of coal in a cost effective manner. Please think about the difference: ? Production is tons of coal. ? Producitivity is decreasing the cost per ton of coal. Our future is bright, only if we can increase our productivity by trying different and new ways to manage our businesses and our people. Unlike the easy successes during the 60's and 70's, success in the decades ahead will depend on our ability to achieve greater levels of productivity. If mining and other old line smoke stack industries are experiencing difficult times in 1986, three years into an economic recovery, what will happen when the economy cycles downward? Any operation can achieve unlimited productivity by developing the resources within their employees. As an industry, we have harvested the

Jan 1, 1986

By O. C. Irwin

For several years the C. F. & I. Co. men have been working on a fan signal and many different schemes have been tried. I will describe a few of them. A make-and-break attachment was placed on the fan shaft which caused a light to flicker. A hinged door was placed on air course and counter balanced so that it would have a slight travel when the air pressure was reduced an appreciable amount. This motion was used to open the power circuit, blow a whistle, or ring a bell. Series transformers were placed in motor leads of fan drive motor and the variation in amount of power to motor was used to control the fan signal through a magnet or relay. A governor was placed on the fan shaft which opened a signal circuit when speed of fan was reduced. We tried to produce a machine actuated by the volume of air, (that is on the principle of the anemometer) but had to discard this due to its being too delicate. None of the above schemes seemed to fill the conditions which the State and our Mine Inspector wanted covered. They gave us the following demands for a signal: 1. Must open mine circuit and sound alarm when air pressure was reduced below a certain amount. 2. Must be fool proof. 3. Must work on any kind of fan drive (steam or motor). 4. Must be safe to ' install- in any mine or fan house. 5. Must not depend upon mechanical device which could become inactive due to friction or other causes. 6. Must be as simple and easy to adjust as possible.

Jan 1, 1925

By Gilbert Davis

MR. DAVIS: When the Secretary asked me to continue our accident experience in safety work at Dawson to cover the year just closed, I rather felt that he was asking 'a good deal, for we had said about everything that we could last year. I am not going to say very much, but in line with his request I have merely brought the figures up to date. I want to say, to start, that 1934 was, rather disappointing. It was the poorest year since 1930, as you will notice (indicates on diagram). This first column represents the accidents per thousand shifts worked. We cannot assign any real valid reason for the increase. We think we worked just as hard, but we are rather inclined to lay it onto the times; in other words, to lay it to the unrest and the changing conditions that are existent not only in this country but probably all over the world. We had twelve lost time accidents last year. As I explained last year, a lost time accident with us is an accident wherein the injured man is not able to return to his regular work, the next day-the day following the injury. So this represents (indicating) the lost time accidents per thousand shifts worked. We had one fatality in the twelve accidents which is reflected in the severity rates, which are also based upon thousand shifts worked instead of per million hours. The reason we are on the thousand shifts worked is be¬cause the Copper Branches of the Phelps-Dodge Corporation are all kept that way, and we are on the same basis for easy comparison.

Jan 1, 1935

By Parley Potter

GENTLEMEN OF THE COAL MINTING INSTITUTE: I was requested to write an article on mining a short time ago; however, the time has been so short that I have not had time to prepare an article as I would like to have presented it to this body. In writing this article it has not been my intention in making comparison of various mines, to favor one or discredit the other. I hope it will be considered in that light. The coal mining industry as I have seen it in the past, at present and in the future. In years gone by large tracts of coal land could be obtained at a very small cost, and as yet coal land may be purchased at a reasonable price in this country, but I believe the time is near at hand when the methods of mining will have to be changed greatly in this country. Many changes have taken place-in the last few years, some of them have been forced by law, others by the coal operators themselves, after being convinced that the changes made were for their own benefit. During my 20 years in the mines I have seen thousands and thousands of tons of coal lost that could have been saved if proper methods of mining had been used. The Room and Pillar system of mining coal is none. too good at its best ; a certain per cent of the coal is always lost, yet it is about the only system that can be used under certain conditions, but where the Longwall system can be used I believe it is the best system yet introduced. If the Longwall system is used' there is no coal lost. You get it all as you advance with the workings. Some coal operators object to the Longwall system for several reasons, and most of the reasons they advance are not founded on facts. For instance some of them claim it is too expensive. I will admit that the cost per ton is a little higher in Longwall than it is in Room and Pillar as a rule for the amount of coal' mined, but after the Room and Pillar mine is finished as a rule there are thousands of tons of good coal lost, for the simple reason that it cannot be mined at a profit. In many cases if the same mine had been operated on the Longwall system every ton of saleable coal could have been mined at a fair profit, and in the long run would have netted the owner much more money than it did under the Room and Pillar system. The Longwall system has been in operation many years in Europe and especially Great Britain, and is the most approved of systems in many countries at the present time. Millions of tons of coal have been saved by its use in those countries. It is claimed that the Armour Packing Company loses nothing but the squeal of the hog when it is killed, and doesn't allow it to squeal much. Why lose coal if the Longwall system of mining will save it? The Longwall mine is far more easy to ventilate than the Room and Pillar mine; the air has a much less distance to travel for the same amount of working face in Longwall than it has in the Room and Pillar.

Jan 1, 1921

By D. A. Stout

Mr. Chairman and Members of the Rocky Mountain Coal Mining Institute: Your Secretary has asked me to write upon a subject' which is a most interesting one, and which has a very wide scope. In view of the great need for further decreasing costs at its coal mines, the Colorado Fuel and Iron Company began early in 1924 to experiment with methods of mining which had not previously been. tried out at its mines, and which were selected because of the greater possibilities for the concentration of the work, better grouping of workmen, and increased tonnage per workman, with a resultant increased efficiency, better supervision, and lowered costs. Because of the great competition of the day, means and methods must be provided by which fewer mines can be made to produce larger tonnages and at a lower cost. Western physical conditions are such as to make our problems far more complicated and not so easy of solution as compared to many of the eastern fields where conditions are more favorable for the operation of the mines. The dry condition of our Western mines on account of a relatively low humidity, and with additional gaseous conditions, makes the problem still more difficult to solve. A study of new methods was necessary before adoption, and this was particularly true of the method of extracting the coal. Where mechanical means are used, particularly in the coking coal mines of this state, due consideration must be given to the type, and machines or conveyors should not be installed solely on the basis of their performance elsewhere, without the knowledge of local influencing factors. In trying out the newer methods of extraction at our mines, very careful consideration has been given to the question of safety and the adoption of any new methods must provide adequate means of protection to employes, and be approved by' the State Coal Mine Inspector. In any large industry there are a few outstanding operating costs, and usually the leading ones in their order are labor cost, material cost, and power cost. The things which we, hope to accomplish: 1. Reduce labor costs. 2. Reduce material costs. 3. Reduce power costs by the con 4. Reduce the amount of powder used per ton of coal produced. 5. Increase the lump percentage (particularly at the domestic mines). 6. Reduce accidents and annual compensation payment. 7. Reduce haulage costs. 8. Reduce cost for track work. 9. Reduce cost for timber and timbering, and increase the recovery of timber at a considerable additional saving. 10. Reduce the brushing costs. 11. Reduce the amount of rock hauled to the outside. 12. Reduce the cost for drainage. 13. Reduce the cost for ventilating. 14. Reduce cost of inspection and supervision. 15. Reduce the cost for shot firing. 16. Reduction of number of working places. 17. Grouping of men with increased sociability. 18. Increased tonnage per man. 19. Reduction in total number men employed. In the consideration of the methods used and now working successfully, there were three points which were considered outstanding, to make them wholly successful: ventilation, roof control, and transportation. For making the experiments, those mines were selected where conditions

Jan 1, 1925

By F. C. Miller

The briquetting of fuel is an industry centuries old and has followed the hammer and tongs method of making use of any by-product fuel by the simple process of sticking the mass together with anything that will stick. If fuel briquetting, as an industry, once in the lead over coal mining, had kept pace by introducing science, there would not at this time be the mad scramble to look up the fuel briquette family tree and accept every new method as fruit without the cultivation that makes fruit worth while. Cultivation of industry is a mass of evidence showing a tremendous expenditure of money for mistakes paving the way to success. Cultivation of the mining industry is practiced by nations and low temperature distillation and fuel briquetting will in the near future receive the same consideration. Fuel briquettes were used as a winter fuel in Ireland and Scotland before the discovery of America' or the introduction of coal as a fuel to replace briquettes in Ireland. This industry was practiced by the peasants who collected peat from the bogs and cut it into brick-shaped blocks, which were set up to dry in the sun and stored under cover for use or for sale. Demand for peat briquettes led to competition that resulted in a highly refined fuel. In some localities the peat was ground and purified from the earth by washing before placing in presses to squeeze out the excess moisture and form a block of peat about four inches thick. These blocks, after standing in the sun for a few weeks, were cut into briquettes about four inches square by twelve inches long and moved under cover where they remained until thoroughly dry. In this form peat makes an excellent fuel with considerable heat, small amount of smoke while burning, and tough enough to stand hauling in carts and boats without breakage. Slack from domestic coal, non-coking and anthracite, has until recently commanded a very low price and the attention of briquette men has centered on ways and means of preparing this class of fuel for the market in the form of briquettes. Industrial plants with automatic stokers have taken kindly to cheap slack or slack that was cheap because the price has been boosted to a figure where the cost of slack plus the cost of binder and operation makes fuel briquettes somewhat expensive. However, fuel briquettes are being turned out in commercial quantities to compete with prepared lump coal and the demand is in favor of the briquette man. Science has been called to aid the briquette and it is possible to purchase a complete coal briquetting plant that will turn out between four tons per hour and thirty tons per hour of briquettes at a calculated cost per ton to cover material and every item down to insurance on the plant. A few briquettes are being ' made with a mixture of- Portland cement and pulverized coal, where this class of briquette is cheap in the making, there is the increased amount of ash due to the cement to contend with and the briquette is not one that can compete with lump coal. Most binders have a fuel value, such as coal tar, pitch, asphalt residium, flour, glue and secret binders. Most briquettes are of an egg shape, weighing between one and one-half ounces and five ounces, pressed to form with a pressure varying between 1,000 pounds and 2,500 pounds per square inch. This' pressure, together with the binder, make a lump of fuel harder than most grades of soft coal. Most of the briquettes are free from pitch odor, and any tendency to leave a trace of the binder on the fingers, easy to handle, quick to, ignite, high in heat value and capable of indefinite storage without any change. Evaporative efficiency of briquetted fuel in stationary, marine and locomotive boilers has proved that a great many low-grade coals can be fired successfully in the briquetted form, where the same fuel without briquetting failed to give boiler rating.

Jan 1, 1923

By David Griffiths

I am not an orator and have never said a word in public during my thirty years' experience in the coal mines of Colorado; but, being requested to speak by our worthy chairman, and as I am deeply interested in the future welfare of this organization, 1 will make an effort to say a few words in behalf of the Rocky Mountain Coal-Mining Institute, which we are about to organize. As 1 understand it, it is the object and intent of this organization not merely to assemble occasionally for the purpose of discussing various problems in coal-mining, and thus to obtain the best possible results in economic operations, but its especial duty will be to devise ways and means whereby accidents in coal mines will be minimized. Figuratively speaking. we are about to plant a tree in the State House of Colorado, and desire its roots and branches to extend over Wyoming on the north, New Mexico on the south. and Utah on the west. So we expect this tree to bear fruit over a vast area. We must remember that the planting of a tree, even in good soil, is useless unless we cultivate, prune, and nurture its development. If we will not do so, the tree will not bear the desired fruit. So, in order to make the Rocky Mountain Institute a success, we must not only start it off in good shape, but we must keep on adding to its strength in various ways, so that it will become a known factor and a recognized power over this broad territory. In other coal-mining states and countries of the world much has been accomplished through similar organizations to reduce loss of life among men engaged in the production of coal, and there is no reason why our institute in the West should not be equally useful and attain the same results. There are many ways by which this organization can be made beneficial to the men engaged, in various capacities, in handling the "dusky diamond." I will endeavor to confine my brief remarks to the necessity of a crusade of an educational nature among three classes of men that are directly and indirectly connected with coal mines. First-We need to educate ouselves. It is amazing how few of our number, holding positions of trust, and having charge of men in and around coal mines, are conversant with our brief mining laws and cognizant of our duties in enforcing them. Going down the line to our company men and miners, I think 1 can safely say that not over 5 per cent of them are in any way familiar with the statutes that have been enacted for their especial benefit and protection. This condition, 1 think, can be, and ought to be, remedied, and. if thoroughly done, the effect in reducing loss of life will soon become apparent. Now, to reach the officers or men in charge I consider an easy matter, which could be accomplished in this manner: Have our general managers or owners of coal properties issue a circular, compelling every superintendent pit boss, fire boss, or other officer having charge of men, to send them a copy of the mining law in their own handwriting every six months. But to come to the masses engaged in coal-mining. to get these men of various nationalities educated in the mining law, will be a difficult task indeed; but I think I have an original scheme that is practical, and which, if put in operation, would work wonders in educating our company men and miners. This plan is as follows: Have every school in every coal-mining district devote one-half hour on Friday afternoon after school hours to the familiarizing of all male pupils between the ages of twelve and sixteen years with the contents of our laws governing coal mines. At the end of each term of school, award small prizes- say, $5, $3, and $2- to those that are best posted, the principal of the school to be the sole adjudicator. Now, someone may say that this is causing extra work to our teachers, with no compensation. In this respect, I will vouch that 95 percent of our teachers will do this work gratis, providing we can show them the benefit of the system. If we go a step farther, and put an incentive before our teachers, probably it would be a good scheme to award a prize-say, $20 or more-for the best set of practical amendments to our mining laws complied by any school and its teachers, judges of the amendment to be members of this Institute and appointed by the President. There is no denying the fact that we need to be educated, and that we should adopt some system that will encourage a knowledge of practical and scientific mining amoung our present forces and the rising generation. Newspaper Men Need Educating Second-Our reporters and press agents need to

Jan 1, 1987

By Paul Schmechel

This time of year, our lawn is host to goodly numbers of birds - robins, English sparrows, finches of various flavors and some whose names I don't know. We lure them with a feeder in our backyard and I'm sure Patti and I spend several minutes a day watching them through a picture window that overlooks their coming and going. And, while the picture window supplies us with a constantly changing view, it does not treat our winged friends nearly so kindly. You see, at certain times of the day, reflections on our window feed back to our birds a mirror image of the backyard. Lifting off from the bird feeder, they see before them what is behind them. And, not infrequently they fly straight into the window. They stop abruptly, of course. It has to be quite a shock to discover that what is behind you is not the same as what is in front. At this point, I might be tempted to say something about bird brains - except for the fact that we humans also are prone to deceptive images thrown up by the past. Today, I think we hear a great many voices painting past images as they look to the future. We hear that the price of oil soon will rise to its former elevated position; the price of copper will bounce back; a hungry world soon will escalate the demand for food and our agricultural industry will be back in the black. In fact, we can hear hope from many voices telling us that our major resource-rich, basic industries are poised to fly up. I can hope that the voices are right, but I keep thinking that those expressions come from people seeing false images. Most certainly, it is more comfortable to see the past, rather than acknowledge that the world economy is being restructured and that the restructuring is affecting the Rocky Mountain states profoundly and negatively. The worst mistake we could make may be to place too much credence in the images from our past. We can be lulled into a dangerous complacency. What we need is a tighter belt and the will to do some serious bootstrapping. Before proceeding, I would make two points: First, it is not my intent to be a prophet of doom. But I do think we need some healthy doses of realism, if we are to avoid the shock of flying into a false future. Second, by now you have detected that I have choosen to diversify the assignment you handed me on utility diversification. As I proceed, you soon will see that the roots of diversification for many utilities lie in the subject that we ponder now. We could begin in many places, but let's start with energy. It is pervasive in our businesses and industries. We all use it. And, despite conventional economic wisdom, we are using less of it. The price is down, but we have not reverted to our profligate ways. That is true whether you look at the industrial customer or the residential consumer. As a nation and as a people, we have learned to do more work with less energy. A few statistics illustrated the point. If we use 1973 as the base year, energy use in the United States has declined almost I percent. If we examine the year of peak energy use, 1979, the decline approaches 7 percent. Let's look at it another way. In 1973, for every dollar of gross national product, the United States consumed 27,100 Btu of energy. Last year, 1985, the comparable figure was 20,700 Btu - a decline of 24 percent. So, not only are we using less energy, but we are using it more efficiently. Even though the price of energy has declined, we are unlikely to use substand with natural gas and petroleum consumption. Use of natural gas has dropped almost 21 percent since 1973. Petroleum consumption has declined 1 I percent since 1973 and almost 19 percent since 1978, when the U.S. used a record quantity of petroleum. We also know there's been no appreciable change in amounts of oil and gas used since 1981. We weathered both a sharp recession and a healthy recovery without altering the amount of those fuels used. That the use of oil and gas dropped sharply, while the total use of energy merely slumped a bit is easy to explain. The use of coal, nuclear power and hydroelectricity from 1973 through 1985 increased almost 48 percent. Some people will tell you that the large decrease in the price of oil and gas will result in increased demand that will displace coal, nuclear and hydropower. In turn, demand will force the price of oil and gas upward. I doubt it. From the poking around I've done on the subject, I suspect there may be some short-term displacements, but they will be, for the most part, cancelled out by declining use among existing customers. For instance, we all know what has happened in the automotive sector. In 1973, the average U.S. automobile made 13.1 miles to the U.S. gallon of gasoline. In 1984, the most recent available statistic, the average auto made 16.94 miles to the gallon. That's a 19 percent improvement. Because annual miles driven per automobile are essentially unchanged over the period and the number of cars on the road is not increasing, we are witnessing a drop in this segment of the petroleum market. That trend will continue. Now, let's look at energy consumption patterns still another way. Between 1973 and 1985, consumption in the residential and commercial sectors of our economy increased total energy use by 11.2

Jan 1, 1986

By S. W. Farnham

Those who remember the years of patient effort and the slow results obtained in the first introduction of electrical coal cutters and locomotives will, I think, admit that mechanical loading of coal is unquestionably being established at a much more rapid rate than any previous application of machinery to reduce manual labor in mines. There are many operators who consider the progress of the loaders today as slow, but considering the number of years it took to thoroughly establish electrical coal cutters and locomotives, and comparing it with the short time that the mechanical loader has been on the market, and the results that have been obtained today, they will admit, I think, that the progress of the latter is much more rapid. It is about 35 years since the advent of the electrical coal cutter and electric locomotive. Their use has brought about these improved conditions, increased tonnage per mine and other features, which are of assistance to the installation of mechanical loaders. The management and the technical staff in practically all of the American mines are trained in the use of electrical machinery and understand its operation, care and maintenance. . There is frequently, a surplus of electrical power and wiring available to take care of the small requirements of the electrical loader. The mechanical loader, therefore, starts today with the ground prepared for it. Those manufacturing companies who have had years of experience in the design and construction of mining machinery, know in a large measure what to incorporate in their designs to make the parts of the new type of machine effectively strong and to operate with efficiency under the severe conditions encountered in mining service. All these advantages greatly assist the success of a new type of machine such as the mechanical loader. In spite of these advantages, however, there are bound to be some failures. All new types of loaders have to be developed. We hear of some that are a success and some that are set aside. The field of application of each type and its limitations first must be determined by actual operation. The earlier loaders had to be changed and improved in design as weaknesses developed. Not all of the new types of coal loaders have been built by mining machinery manufacturers of long experience, and the lack of experience in this line is responsible for some of the early failures. The coal mining company staffs and also those of the loader companies had to learn what the operating factors were that made mechanical loading a success. The difference in results obtained by loaders in different properties under similar physical conditions indicates that the mine management is a very large, if not the major factor, affecting the efficiency of mechanical loading. Many articles have been written on the question of loading. The subject has been quite fully discussed at recent coal meetings and in the technical press. It is not always as easy or simple a matter to form conclusions as may first appear as to one's own particular loading problem. Mechanical loading is a comparatively new art, and many companies while claiming that loaders are quite successful, do not have an accurate line on the actual saving they are affecting. Many of them have only a few of the factors taken into account in their costs. Many loaders have been generally bought without very careful consideration given to all details and except where extremely favorable conditions prevail, failure resulted. When contemplating the installation of mechanical loading, one naturally desires to select the type of loader that will, fit his mining conditions. The things

Jan 1, 1924

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Jan 1, 1982

Jan 1, 1931

By Peter B. Lilly

Thank you, Tom, I appreciate that generous introduction - and your generous welcome. When Doris Finnie asked me to speak here today, my decision to join you couldn't have been easier - for two reasons. First, I can't say no to an opportunity to return to Steamboat Springs. My family has wonderful memories of skiing here. And this time of year, golf in the mountains is so good you almost don't miss the skiing. The second reason this was such an easy decision is that The Rocky Mountain Coal Mining Institute is such an important forum for the coal industry, and it's certainly important to Peabody. We have mines in five western states - Arizona, Colorado, Montana, New Mexico and Wyoming. Last year, our western mines produced more than 110 million tons of coal. That's about two-thirds of our total domestic production. So western states are obviously critical to us. A couple of weeks ago, the west became even more significant to Peabody. Of course, I'm speaking of PacifiCorp's planned acquisition of The Energy Group - including Peabody - announced the middle of this month. Admittedly, when I agreed to speak here - some months ago - I had no idea just how much change Peabody would face in this relatively brief period. Still, not knowing then about the PacifiCorp announcement, I chose change as the subject for this talk. I'll update you on our recent news. But, first I want to establish a broad context for the PacifiCorp/Energy Group announcement and other change in the electricity business, change here in the United States and all over the world. ? We'll see how change is driven by two major trends - privatization in emerging markets and deregulation in mature markets, In turn, those two trends will cause ever-increasing consolidation - in both the coal industry and the broader power industry. ? After outlining those trends, I'll discuss the change that will dramatically affect Peabody following the announcement a week ago that PacifiCorp and The Energy Group intend to join forces to create one of the world's largest international integrated energy companies - an event that adds considerable credibility to the prophesies I'll outline in my remarks today. ? Finally, I will discuss an issue that threatens our industry's future - and, indeed, the economic future of all Americans. That issue is the inappropriate response to the unproven possibility of global climate change. Let's set the stage for change. And let's begin with the first trend I mentioned - the trend to privatization in developing economies. What drives the trend to privatization? Economics. It's all about the supply and demand of capital. And the engine that drives the supply/demand ratio is growth in electricity demand - tremendous growth in demand in developing economies. The U.S. EIA projects worldwide growth in electricity demand at 63 percent between 1990 and 2010, most of it in developing countries. This strong growth means that a new 500 MW power plant will be needed every three and one-half days until the year 2010. Now, if we say that a 500 MW plant will cost about $500 million dollars, we're talking about a bill of about $1 billion dollars a week - through 2010. That voracious demand for capital drives the trend to privatization. It means countries in Eastern Europe and the former Soviet Union want to sell generating assets. And Asian countries - for example, India, Indonesia and the Philippines - want to find private investors to build power plants. Privatization already is well underway. In the future, it will grow, with countries in South America, Central America, and Africa joining the trend. Bottom line: The privatization trend means rich new opportunities for companies willing to think beyond "business as usual." Meanwhile, developed economies face a different but no less fundamental change. Western European countries, the United States and Australia face deregulation. Why does deregulation represent such a big change? Consider a few basic facts about the U.S. electricity market to see what a big change -

Jan 1, 1997

By Ted Schwinden

It's my pleasure to welcome the Rocky Mountain Coal Institute to Montana. Now that you've ended a 74 year history of meeting outside our borders, I hope you'll be back more often. Even if I can't convince you to come back before 2060, when another 74 years will be up, I'm confident the Kalispell and Flathead Lake area will do the persuading for me. In recent weeks, I've made a number of speeches around the state pointing out just how wrong the revenue projections in Montana's state government made in April of '85 were when we came to April of '86. Since the middle of this month, Montana's legislators have been in Helena struggling to balance a state budget that, by the end of fiscal year '87, threatened to be some $88 million in the red. Other western states reliant on natural resource and agricultural economies have found themselves caught in the same deflationary spiral. The "window of opportunity" I proposed and the 1985 Montana Legislature passed, couldn't have been opened at a more difficult time. What was envisioned as an incentive to expand Montana's coal production, and our tax base, ran aground on low oil prices and excess hydroelectric power. De- spite the one-third severance tax rebate offered on new coal production, year-to-date figures published in the June 2nd Coal Week show that production in Montana is down almost 10 per- cent from last year. Again, we're not alone. Production in Wyoming is down 8 percent and in North Dakota, it has dropped 13 percent. An over- all 3 percent production decline in western states looks even worse when contrasted against a 12 percent increase for your eastern competitors. Montana's "window of opportunity" had the potential to be a significant signal to your industry. That potential was quickly tempered by the inability of Arab nations to stabilize world energy prices. If any of us had forgotten, the last twelve months have reminded western states that the well-being of our natural resource economies has a tremendous impact on the ability of all levels of government to provide services. The past year has also driven home that in the world of business and in the business of the world, risk-taking is still the name of the game. The Western Governors recognize the problems facing this industry - and our states - and we're prepared to fight for the future of western coal. In the past two decades, legitimate environmental concerns have created a vast body of new legislation affecting coal producers. The industry has been required to meet new reclamation standards - tough regulations relating to ground water, air quality and wildlife habitat. To the industry's credit, coal companies have hired professionals with the technical know-how to do it right. Rather than considering reclamation laws to be an unreasonable burden, today's coal company is more likely to view its reclamation efforts as a source of corporate pride. In a sense, the industry and the agencies which regulate it have matured together . . . although at times OSM is reluctant to admit that either of us capable of or willing to play by the rules. Certainly some abuses exist and OSM's oversight has been helpful in ensuring parity between those states willing to comply and those that would rather defy federal law. Nonetheless, penalizing the more modem and responsible western coal industry for abuses that occur elsewhere is both unfair and counterproductive. Federal penalties range from "cruel and unusual" reporting requirements to the proposed electricity tax that would effectively force utilities and ratepayers who have already met the sulphur emission standards to subsidize those who have dodged their cleanup responsibilities. As a member of the Alliance for Acid Rain Control, I have joined corporate leaders, academicians, environmental representa-

Jan 1, 1986

By J. R. Kastler

It becomes my pleasant duty to call the meeting to order. This is our fiftieth regular meeting. And the session we are opening today, I am sure: will be as interesting and informative as those in the past. These gatherings present a fruitful opportunity for an exchange of experiences and ideas that will aid all of us in our work in the various segments within the coal industry. Walter Johnson and his Program Committee have arranged a wonderful program for us; Walter, due to his standing in the industry and his large acquaintanceship with the leaders of the industry, has really gone to town in bringing outstanding speakers and personalities to deliberate with us in our proceedings. A lot of things have happened since we last met; in the operating end, and in safety we have made marvellous headway, but we have slipped badly in the marketing end. However, I am sure the messages and discussion you will hear will point out ways and means of overcoming at least some of our difficulties. Before we get on with the program, I want to thank our hard working Secretary, Fred Whiteside, who, by the way, is a charter member of the Institute and has attended every one of the fifty meetings we have held; and the various committees who have been meeting for the past several months and who have arranged this fine program you are to hear. I hope all of you enjoy the convention; the business as well as the social sessions.

Jan 1, 1954