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The Sixty-Second Regular Meeting of the Rocky Mountain Coal Mining Institute convening at the Stanley Hotel in Estes Park, Colorado, was declared in session at 10 a.m. by Past President Oren F. Bridwell, Secretary, Northern Colorado Coals, Inc, Denver, Colorado. Mr. Bridwell thanked the Joy Manufacturing Company fer the very fine party of the previous evening. He also paid tribute to a very fine Committee - the Program Committee: O. F. Lewis, Chairman, Oren Bridwell, Edward G. Fox, Glen E. Sorensen, Joseph E. Ward, R. R. Williams, Jr., and John Peperakis. Mr. Bridwell then introduced George A. Nugent, Vice President and General Manager, Big Horn Coal Company, Sheridan, Wyoming, as follows: "It is my privilege and duty to call this 62nd Regular Meeting of the Rocky Mountain Coal Mining Institute to order and to extend to you all a cordial welcome.

Jan 1, 1966

By John D. Janak

Thank you for inviting me to come here and be your keynote speaker. Texas also thanks you for being included as part of the Rocky Mountain Coal Mining Institute. We'll kind of think of Texas as Baja Rocky Mountains. I've always wondered why coal miners were the only people to go to the mountains in the summer time-and now I know why. The program committee should be given a big hand for selecting this RESORT. And the golf course is stimulating to say the least. This is a very beautiful location. I was asked to talk about CHALLENGES, OPPORTUNITIES and INNOVATIONS as they affect the coal industry. I am going to do that from a Texas perspective. But first, since Texas is the newest state to belong to the Institute, I would like to give you a little background on how our coal industry got started and where we are at today. The vast majority of our coal is called lignite-it has a little lower heating value than most other coals and ranks somewhere between buffalo chips and sub- bituminous. Lignite is found In three geological formations running Northeast to Southwest through South and East Texas. In-place reserves lying within 200 ft. of the surface total 14 billion tons. This slide shows the lignite formations with cur- rent mine operations colored in RED. Mines that are planned to be built in the next 10 years are shown in BLUE. Lignite was used mostly by settlers in Texas during the 1800s. It was used as a fuel to fire locomotives during the Civil War. Between 1900-1930, about 100 mines, mostly underground, were operating in Texas producing lignite for home heating and as a boiler fuel. Here are some slides showing underground access, [lie tipple used to process the lignite, and the underground workings. This is the "BIG LUMP COAL COMPANY" as shown here. The typical underground mine was 100-150 ft. deep and each miner produced 7-10 tons per day-all by hand. In 1926, the Texas Power & Light Company built the Trinidad Power Plant and began using lignite as a boiler fuel. The lignite was mined by the McAlester Fuel Company at the nearby Malakoff Mine. Here are some slides showing a stripping shovel at Malakoff uncovering lignite. The lignite was loaded into railcars in the pit for transport to the power plant. This is a picture of the Trinidad Plant which had two 20 MW units and one 32 MW unit. At the time, Trinidad was the largest power plant in the United States using lignite exclusively as a fuel. Trinidad operated until 1942 when it was converted to natural gas that was sold to the plant for 3 ½ ¢ per MMBT'U. The mine closed after having produced 7 million tons. Lignite was mostly forgotten about until 1953 when Alcoa started an aluminum smelter. Our Company formed a subsidiary called Industrial Generating Company to operate the power plant that furnished electricity to the smelter. We also operated the nearby Sandow Mine that supplied lignite as a fuel to the power plant

Jan 1, 1989

By Samuel Tescher

The operation of gaseous mines is a problem, due to the fact that we have not only the ordinary mine accidents to guard against, but have also the ever present menace of a mine disaster involving a large number of human lives, and the destruction of valuable property. In looking over the reports of mine disasters throughout the country in the past several years, we find that methane gas, coming in contact with an ignition agency of some kind, has been the source of at least 75 per cent of our mine explosions. Coal dust, of course, plays its part in propagating the explosive action throughout the mine workings and rendering it more violent and destructive; nevertheless, the initial ignition of a body of explosive gas-sometimes of very small volume-has been the primer for the large majority of our mine disasters. We find also, that the places of initial ignition are most frequently found at the working faces, or in close proximity thereto. This is mainly due to the following reasons: First-The working faces are, as a rule, the places where methane gas is most freely generated. Second: They are places that are most poorly ventilated. Third-They are the places where ignition agencies are most frequently found. The sources of ignition, as a rule, consist of naked lights, the shooting -of shots, defective flame safety lamps, and electrical arcs. The problem, then, in the operation of gaseous mines, is primarily to so ventilate the working faces that an explosive mixture is not likely to occur, and to endeavor to keep away from the working faces all sources of ignition. To do both of these things may seem impossible. Nevertheless, by working along both of these directions, a great many disasters can be avoided. The efficient ventilation of the working faces is paramount. By efficient ventilation, we mean the continuous passing of large volumes of air at the working faces. This can only be accomplished by adequate ventilating equipment, capable of being driven by at least two independent and distinct sources of power, together with large, clean, straight air courses which are free of short turns, constructed areas, and leaky doors and stoppings. In other words, furnish a suitable course for its travel through the mine. Many of us sharpen our pencils and rack our brains to properly estimate the proper size pump and pipe equipment that may be needed to handle a certain amount of water. We estimate the size of copper conductors to a nicety. We immediately rush to repair leaks in our water, compressed air or electric lines. But how many of us give serious thought to the travel of the air through our mines, the health and safety-giving fluid on which so much depends! In driving air courses, a certain economical cross-sectional area should be adopted and maintained as standard. When turns are necessary, they should be made with long radius curves, and the cross-sectional area should be increased on the curves. All entry stoppings should preferably be built of monolithic concrete, with suitable hitches into floor and ribs, and after the concrete has set, they should be examined and leaks due to shrinkage and settling should be eliminated. Overcasts and their approaches should have cross-sectional areas larger than the entries leading to them, to allow for the sudden change of direction, bearing in mind that air wants to travel in straight lines. In the early development of a property, ample provision should be made in the size of the main entry pillars to allow for the driving of additional

Jan 1, 1925

President Zakotnik opened the final session of the Institute at 9:30 a.m. Kenneth R. Herrmann of the Resolutions Committee presented the following resolutions to the group for their approval: RESOLVED: That the members of the Rocky Mountain Coal Mining Institute, in convention assembled, hereby ratify and confirm all official actions of the officers, the executive committee and other committees of the Institute between July 4, 1962, and the present time.

Jan 1, 1963

By G. A. Knox

Mr. Chairman and Gentlemen: The subject assigned to me would cover a great many pages if it were gone into thoroughly. Therefore. I have just touched on a few of the most important points. I think that everyone engaged in the production of commercial coal understands all about its preparation, but I will set forth my views as to how I believe it is best accomplished. In order to produce the best prepared coal, your first attention should be to the miner at the working face. The most careful system of blasting should be adopted to avoid heavy charging of holes which results in the shattering of the coal. The lump, or any other screened sizes that may be screened from coal that has been improperly shot, are subject to greater degradation in transportation and handling, as well as reducing screened sizes, which results in dissatisfied customers in the first case, and lower realization in the latter.

Jan 1, 1928

PRESIDENT LITTLEJOHN: The paper of Mr. Emrick will now be open for discussion for about twenty minutes. The meeting is now open for discussion. MR. EMRICK: There is some question that may have occurred to you at different times, that is how are you going to tell when the bits are properly made? A fairly good rule to go by is when the used bits come out of the mine, if half of them are bent and half of them are broken, the average is pretty good MR. GEO. B. PRYDE (Union Pacific Coal Company): I would like to ask Mr. Emrick if he has any figures as to the saving of Dower with the different styles of its. MR. EMRICK: I suppose you mean chisel point bits and pick point bits? MR. PRYDE: Yes. MR. EMRICK: So far as I have been able to learn, the only reason why chisel point bits are used is to prevent coring that might be done by the cutter chain. The pick point bit, of course, is the proper thing to use. It can be used when the position of the cutter links in the cutter chain is right. I do not know of any figures which give power consumption ratings on the use of pick point and chisel point bits, but there are tests and ratings, etc., which have been taken- which have been tested as against different bits, which have been given proper clearances against bits not having been given proper clearances, and they will run,-in their saving in power, they will run 20 to 25 per cent. MR. A. C. WATTS (Chief Engineer, Utah Fuel Company) : I would like to ask Mr. Emrick if he has any record showing the saving in power on using the alloy steel chisel bits. I know that several experiments have been made; I do not recall the figures now, but we had a very decided saving in power. MR. EMRICK: I haven't any of the records. Do you think that is because of the steel that has been used? MR. WATTS: Well, they were all sharpened by the same man and used in the same machine, and at the same shop. I do not know the composition. It is "Red Star" Vanadium that I had in mind. MR. EMRICK: I have not seen any records. Some companies are using the tool steel bits because they stand up a little bit better. MR. BENEDICT SHUBART (Secretary) : I was going to ask Mr. Emrick about that question. There is one company that does not recommend tempering the bits. They recommend using not exactly self-hardening steel, but one that is bard enough without quenching-they use 80-90-point car- bon but about a 70-point manganese, not exactly self-hardening steel, but they do not temper this at all. Will Mr. Emrick state if a steel of that kind could be worked in the bit sharpening machine that his company makes, as it

Jan 1, 1925

Profiled on these pages are the eight RMCMI 1996 Scholarship Award winners. All eight winners were present as guests of the Institute at the June convention in Durango, Colorado. Each received recognition at the Institute Awards Luncheon Monday, July 1. 1996. Each state vice president sewed as the host for the collegiate winner and his firm provided travel and hotel expenses. In addition to receiving a plaque from the Scholarship Chairman, Alan Czarnowsky, each winner receives $1,000 tuition credit for the coming academic year, as well as transportation hotel lodging and meals at convention as guests of the Institute. Because this is a continuing award, the winners from the previous year also receive a $1.000 tuition credit in their senior year if recommended by the dean of the college or university and are full time students. A resident from each of the eight RMCMI member states is selected from among Board approved institutions. Criteria for these awards to be made in the spring annually is that the recipient (1) Is a full time sophomore student who will use the tuition credit during the junior year. (2) Be both a U.S. citizen and a resident of the member state. (3) Maintain good academic standing, be pursuing a degree in a mining related field and have an expressed interest in western coal as a possible career path. The scholarship program includes curricula other than in the mining departments, but in engineering disciplines, such as geology, mineral processing and metallurgy. Contributions to this worthy project are tax deductible to each individual RMCMI member or his firm. Through annual donations of $100 or more, the Patrons of the Institute fund the scholarship program. A listing or current donors is found elsewhere in this book. Donations to this worthwhile program are payable to RMCMI Scholarship and may be mailed to the RMCMI Office, 3000 Youngfield Street, Suite 324, Lakewood, Colorado 80215. Profiles of the 1996 Scholarship Winners follow. [ ] ARIZONA WINNER Michelle Begaye New Mexico Tech - Socorro. New Mexico Michelle Lisa Begaye plans to work in a mine near her Navajo Reservation after graduation. She would like to continue teaching the young in her community as she has been doing for the past few years. As a volunteer with the Natani' Trails, she takes at-risk students on wilderness experiences such as rafting, repelling, etc. Active in school, she played the trombone, was in speech and drama, played softball, and was the first female to play football as a right and left tackle. A member of National Honor Society in High Shool, she also made the Dean's List at Navajo Community College. Michelle will pursue a degree in Environmental Engineering when she transfers to New Mexico Tech this fall. [ ] COLORADO WINNER Nicole Albert Colorado School of Mines - Golden. Colorado Nicole is pursuing a BS in Mining Engineering with a Minor in Mineral Economics - and has already proven her serious intent with her many activities related to mining. She is a member of the Society of Women Engineers; Society of Mining, Metallurgy and Exploration; and has participated in two different projects related to mining, one of which was to clean up a mine tailings site. Nicole enjoys hunting, camping, fishing, softball and horses. Growing up with her father, working at a surface coal mine, sparked her interest in this industry.

Jan 1, 1996

resident Schloss called the meeting to order at 9:30 a.m. Bob Dean, manager of the Hotel Colorado, gave a brief explanation of hotel policies governing the swimming pool, and also extended an invitation to the Institute to return in 1963, and stated that the dates June 30 through July 3 were available for next year. He also stated that June 28 through July 1 were available for 1964. He felt that holding the convention during the 4th was not good policy, and that dates prior to or following the 4th would make for better attendance. John A. Reeves, chairman of the Resolutions Committee presented the following resolutions: RESOLVED: That the members of the Rocky Mountain Coal Mining Institute in convention assembled, hereby ratify and confirm all official actions of the officers, the Executive Committee and other committees of the Institute between June 28, 1961, and the present time.

Jan 1, 1962

By Richard M. Whiting

Thank you very much for that introduction. I spent part of my early career in the coal industry here in Colorado, and I am always happy to return. In such a beautiful setting, it seems out of place to talk about "Improving the Climate". But in our work-a-day worlds, we know the climate for the coal industry is something less than picture perfect. But unlike Mother Nature's climate, there are some things we can do about the climate for coal. Today, I want to talk to you about sonic of the activities that we are engaged in... and that you can support... to improve that climate. A number of challenges and opportunities face our industry. I will try to set the stage for this conference by briefly describing the current climate for coal - which is indeed very challenging. I will then outline some of the steps we are taking to broaden our base to include our allies in the rail and electricity industries and the public at large.

Jan 1, 2000

By D. C. McClure

MR. McCLURE: Mr. Chairman, you sprang a surprise on me; I really came over here for a good time. Gentlemen, I am not at all qualified to pose as an expert on pulverized fuel; I have merely been making some rather interesting observations, and unfortunately at the present time, a great deal of substantial data, the technical data, I don't happen to have with me; it is still in the process of being calculated, but I will be very glad to tell you some of the observations as I have made them, and in as truthful and complete a way as I can. The question of how we would handle fuel became a very pressing subject in this new Valmont electric plant, which is now under progress. We have studied the methods of burning fuel for a number of years on different types of stokers at the existing plants in Denver; we are burning it with a natural draft chain grate and with underfeed and with forced draft chain grates, and I am very frank to confess at the present time that I have no answer as far as stokers are concerned for a better solution of the problem of burning lignite. In other words, I could not tell you that this or that is a better type of stoker to use for that coal. However, to boil the thing down, after considerable trials, the underfed stoker was chosen as the one most adaptable for the utilizing of lignite fuel if stokers are to be used. In other words, the chain grate was put aside. I might say in support of the chain grate, the prime reason for which that type of stoker was condemned, as far as lignite goes, is the initial investment charge and the large maintenance which is involved.

Jan 1, 1923

Jan 1, 1980

Jan 1, 1974

The following pages contain valuable information about the products and services offered by our advertisers

Jan 1, 1984

T. T. READ, BUREAU OF MINES: Mr. McAuliffe has asked a very practical question. Expressed in another way, the question is: If we have decided to use rock dust to prevent coal dust from exploding, have we got to take rock, that is, solid material,, break it up and finally grind it into dust (and fine grinding is very expensive), or can we take material that is already in a pretty fine state of subdivision and thereby save the expense of pulverizing it? Most of the preceding discussion has been from the view-point of practical experience, and I should like to suggest that we have not had enough practical experience in rock dusting to be able to answer this question, from the viewpoint of experience, with the degree of definiteness that Mr. McAuliffe desires. With your permission I will discuss the matter briefly from the theoretical standpoint, because after all the theoretical considerations, insofar as we understand them correctly, will apply to every' case, whereas in coming to a decision on this matter it will be necessary to take into consideration local conditions, which will necessarily vary in every case. Considering the matter in a rather elementary way, the first point is: What makes coal dust explode? The air of this room is full of dust at the present moment, even though we do not notice it. If you were to close up the room for a week, enough dust would settle on the floor so you could write your name on it. Of course, the dust which is in the air of this room is not coal dust but even if it were coal dust and you were to bring an open light in' here we all know that the dust would not explode. The reason for that is that the dust particles are not close enough together for the flame to propagate itself from one to the next. You will probably be able to see in the demonstration in the gallery on Saturday that the coal dust explosion is practically a very rapid burning of the dust. When you light one piece of dust it burns and gives out heat and if there is another piece of dust close enough to it so that the heat from the first piece is able to bring a second piece up to the burning temperature, then the flame will propagate itself through the mixture. But, if the particles are so far apart in the air that the' heat from one particle is dissipated before it reaches an adjoining one, and is therefore not able to bring the second particle up to the burning temperature, then the flame will not propagate. To get a coal dust explosion, it is not sufficient to have coal dust suspended in the air. The coal dust particles must be close enough together in the air so that the heat from one burning particle is able to heat the adjoining particles up to the point at which they will burn. There has been some discussion of the size of dust particles that will cause an explosion to propagate, and it has been pointed out that the minus 200-mesh dust is the most dangerous, and that particles coarser than 20-mesh will not propagate an explosion. There are two reasons for that. A large particle has very much smaller surface in proportion to its weight than a small particle has. You know the old story about the Indian who when asked how he could go around in cold weather without any clothes on said that an Indian was all face. A 200-mesh particle is almost all surface and there= fore is able to burn almost instantaneously, which means that it gives out its heat almost instantaneously, whereas a large particle with less surface in proportion to its weight burns more slowly, gives out its heat more slowly, and the heat has more time to be dissipated. The second reason why coarse dust does not easily propagate a flame is because it is so hard to make it

Jan 1, 1924

Profiled on these pages are the eight RMCMI 1997 Scholarship Award winners. All eight winners were present as guests of the Institute at the June convention at Steamboat Springs, Colorado. Each received recognition at the Institute Awards Luncheon Monday, June 30, 1997. Each state vice president served as host for the collegiate winner and his firm provided travel and hotel expenses. In addition to receiving a plaque from the Scholarship Chairman, Alan Czarnowsky, each winner receives $1,000 tuition credit for the coming academic year, as well as transportation, hotel lodging and meals at convention as guests of the Institute. Because this is a continuing award, the winners from the previous year also receive a $1,000 tuition credit in their senior year if recommended by the dean of the college or university and if they remain full time students. A resident from each of the eight RMCMI member states is selected from among Board approved institutions. Criteria for these awards made annually is that the recipient (1) Is a full time sophomore student who will use the tuition credit during the junior year. (2) Be both a U.S. citizen and a resident of the member state. (3) Maintain good academic standing, be pursuing a degree in a mining related field and have an expressed interest in western coal as a possible career path. The scholarship program includes curricula other than in the mining departments, but in engineering disciplines, such as geology, mineral processing and metallurgy. Contributions to this worthy project are tax deductible to each individual RMCMI member or his firm. Through annual donations of $100 or more, the Patrons of the Institute fund the scholarship program. A listing of current donors is found elsewhere in this book. Donations to this worthwhile program are payable to RMCMI Patrons and may be mailed to the RMCMI Office, 3000 Youngfield Street, Suite 324, Lakewood, Colorado 80215. Profiles of the 1997 Scholarship Winners follow. [ ] ARIZONA WINNER C. Travis Naugle Montana Tech - Butte, Montana Travis, the son of Chelsea and David Naugle of Tempe, Arizona is a student at Montana Tech. He is well-rounded with studies, various athletic endeavors, campus D.J. position, and as a residence officer. He is now the Public Relations Director for KMSM-FM radio in Butte, MT. A Tempe High School graduate, Travis plans to work in coal extraction once he receives his Mining Engineering degree. [ ] COLORADO WINNER Suzanne Maddux Colorado State University - Fort Collins, Colorado Suzanne, the daughter of Janet Maddux of Arroyo Grande, CA and Lelen Maddux of Santa Margarita, CA, is the first scholarship recipient at Colorado State University. She is pursuing a degree in Civil Engineering. Since 1992 she has been working with TerraMatrix Inc. in Steamboat Springs and Fort Collins, Colorado which has offered her insight to the western mining industry. She has volunteered with Larimer County Partner (a big sister program) and has continued to be involved in many athletic endeavors.

Jan 1, 1997

By M .. K. Stewart

(Here follows descriptive movie.) CHAIRMAN KNOX: Thank you very much, Mr. Stewart, for this wonderful paper and picture. We are indebted to you. It certainly is the most interesting thing I have ever seen in connection with wire rope, except paying for it. I think there are a lot of questions that could be asked to bring out some points that we are not generally understanding of. Are there any questions at this time? I know Mr. Stewart will be glad to answer them. Come up to the front, Mr. Stewart. MR. STEWART: That's all right, thanks. CHAIRMAN KNOX: If there are any questions, let us have them. (No response.) Well, we will pass on to the next paper. CHAIRMAN KNOX: Our next paper will be "Self-Preservation, with Some Comments on Mechanical Loading," by Benedict Shubart and Charles Schloss.

Jan 1, 1935

By R. R. Knill

With the advent of mechanical loading the need of definite information has become more apparent. The co-ordination of all the individual units of operation has become very necessary From these two essential features in running a mechanized coal mine has come the demand for the "time study." The time study is nothing more or less than the recording of each operation together with the time of clay or the total time expended during a period of work. Using the latter, it is impossible to have information showing just when each piece of work was clone and to what extent they overlap. The studies used here are of the former type, being based on the recording of the operation together with the time of day so that the details of performance of the machine or crew may be followed from starting to quitting time by' referring to the graph upon which the study is taken.

Jan 1, 1928

By Andrew Franklin

The eightieth regular meeting and convention was called to order by the President, John T. Atkins, at 9:15 a.m. Monday, June 25, 1984 in the Colorado Ballroom of the Marriott's Mark Resort in Vail, Colorado. President Atkins welcomed the members and their guests to the convention and noted that the annual business meeting would be held Tuesday afternoon at 2:00 p.m. in the same room. A convention update was made by the Conven¬tion Liaison Officer, Loren V. Linville. This was followed with a program report by the Program Chairman, Doug Ingram. The chair then called on Clifford Barrett, Upper Colorado Regional Director of the Bureau of Rec¬lamation of the United States Department of the Interior. He presented the Bureau's Citizen Award to RMCMI former president Ira E. McKeever for his outstanding contributions to the joint private/ Federal effort and the open planning process for AQUATRAIN. According to Barrett, "from 1981 to early 1984, McKeever led private industry work in the AQUATRAIN project, a proposal for a 1,400 mile long pipeline system. AQUATRAIN was conceived as a possible alternative to solve the government's problem of rising salinity levels in the Colorado river, as well as the private sector's need for a more economical coal transport method. The Citizen Award cites McKeever's efforts in developing a model for future cooperative ventures between government and industry that can benefit the nation." Following this presentation, the formal program of the 80th meeting and convention began with the president, John Atkins, introducing the convention kickoff speaker, Andrew Franklin, President of Nerco Mining Co., Inc., followed by the convention keynote speaker, Dr. Margaret N. Maxey of the University of Texas. These speeches are printed in this Proceedings together with those of all other convention speakers. I'm Andrew Franklin, President of Nerco Min¬ing Company, and I'm delighted to be here to kick off the annual convention of the Rocky Mountain Coal Mining Institute. This has always been a very special convention in my eyes and I'm sure this year's will be no exception. I am also here to share my thoughts on the western coal industry and how we're all affected - for good and bad - by public policy decisions. Although the title of my talk is "Western Coal: An Industry Under Siege," I believe a more accurate title might be "Western Coal: The Pit and The Pendulum," because of the wide swings in public policy and coal development in the past 15 years which have cut a zigzag path for growth over this period. As one of the nation's largest coal producers, Nerco is well aware of the problems facing western coal production. Nerco Mining Company is the western coal mining subsidiary of Nerco Inc. We have been "in coal" for more than 25 years through our parent company, Pacific Power & Light. To state my conclusion at the outset, I feel it's extremely important that consistency and common sense should guide our national policy for the development of valuable energy resources. In particu¬lar, we must reduce the wide swings in government policy and activities which have affected energy development. In short, we must decide what kind of game we're playing so that the "players" and the "referees" can keep their eyes on the "ball." Business today faces two main types of uncertainty market uncertainty and public policy uncertainty. As businessmen, we expect and are used to facing the familiar challenges and uncertainties of the market in which we operate. Over the past 10 years, the market has appeared to be bullish on coal. But the facts make our future less rosy. Last year, western coal producers faced over 50 million

Jan 1, 1984

By Jim Freeman

After testing 30 fourth year mechanical trade school students with our final mechanical apprentice test, only one passed. ?Most western technical trade school students tested ?Test result average was 52% ?NMC graduating apprentice average is 78% (75% passing requirement) ?Our mechanical test has 200 questions; Electrical test 110 questions

Jan 1, 2010

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