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Mr. Robert H. Abel Frontier Truck Equip 7167 E 53rd PI Commerce City, CO 80022 Mr. Scott Aberle Western Energy Co POB 99 Colstrip, MT 59323 Mr. Ronald H. Achziger Midwest Rbr & Sply Co 6404 E 39th Ave Denver, CO 80207 Mr. Randy Acre Energy Fuels Coal Inc POB 449 Florence, CO 81226

Jan 1, 1995

[Participating Scholarship Colleges and Universities 138 AmerCable 130 Andalex Resources, Inc 82 Behre Dolbear & Company, Inc 83 Commercial Testing & Engineering Company 86 Continental Conveyor & Equipment Co 87 Crane & Hoist Sales Inc 12 Crested Butte Mountain Resort 88 Dakota Coal Company 89 Empire Machinery Company 90 Energy West Mining Company 91 GH Hensley Industries 92, 93 Hitachi Construction Machinery (America) Corp 96 Ingersoll-Rand Company 131]

Jan 1, 1998

By V. O. Murray

Gentlemen: I'm glad to see the crowd that's here this morning, glad to renew acquaintances with many old friends, and if you'll look at the program you'll see a heading there which states that as President I have the honor and pleasure to be here to address the membership of this meeting of the Rocky Mountain Coal Mining Institute, this being the 49th regular meeting. The tentative schedule of this gathering lists on the program the "President's Address," and I want to assure you that this will not be an address or a lengthy speech. It's said that a good speaker is one who arises to the occasion and then promptly sits clown, so please be at ease for I intend to sit clown very soon. There are other men here who have spent time writing and preparing papers on subjects that are to come up for discussion at this meeting, which will be, I'm sure, more interesting than what I have to say this morning; so again I'll say, we'll get this part of the program under way promptly.

Jan 1, 1953

[Participating Scholarship Colleges and Universities 154 ACZ 149 AmerCable,Inc 144 Andalex Resources, Inc 118 Behre Dolbear & Company, Inc 101 Canyon Fuel Company 145 Commercial Testing & Engineering Company 95 Continental Conveyor 148 Cove Shoes 136-137 Crane & Hoist Sales Inc 121 Crested Butte Mountain Resort 134 Cyprus Amax Minerals Company 115 Dakota Coal Company DriltechInc 135 Empire Machinery Company 94 Energy West Mining Company 122 Fluor Daniel 100 GH Hensley Industries 126. 127 Hitachi Construction Machinery (America) Corp 123 Holme, Roberts & Owen 98 Honnen Equipment Company 150 Ingersoll-Rand Company 141 Jennmar Corporation 142 Joy Mining Machinery - A Harnischfeger Industries Company 104 K & P Sales Engineers, Inc 114 Kennecott Energy Company 155 Kerr-McGee Coal Corporation 96 LeTourneau,Inc 160 Long-Airdox Company 112 Magnum Metals, Inc 133 McLanahan Corporation 129 Mine Technik America 124 Mineral Tech 151 Morrison Knudsen Corporation 97 The North American Coal Corporation 130 Northwestern Resources Company 125 P&H MinePro Services 157 Peabody Western Coal Co 131 Phillips Machine Service, Inc Pincock Allen & Holt 120 Powder River Coal Company 107 Pyro-Chem 156 RamseyTechnology, Inc 119 Rust Tractor Company 90 Salt River Project 91 Savage Industries Inc 89 Schroeder Industries 147 Sheraton Steamboat Resort and Conference Center 111 Skelly & Loy 138 Snowmass Village at Aspen 146 Stamler Corporation (An Oldenburg Group Company) 117 Tamarron Hilton Resort 140 TerraMatrix Inc 139 TIC (The Industrial Company of Wyoming, Inc.) 99 Trapper Mining Inc 106 Wagner Equipment Company 116 Weir International Mining Consultants 113 Westech 152 Wheeler Machinery Company 128]

Jan 1, 1997

By Margaret N. Maxey

For the past quarter century, it is fair to say that the political agenda of Western industrialized societies has been driven by those opposed to forms of economic growth providing sustenance to a growing population. They regard growth as the major threat to their social philosophy which champions a wholly "new ethic of biocentric equality" or "living as if Nature mattered." This ethic demands that "a violent, plundering humankind" must abandon its alleged rape of Planet Earth and derive its ethical norms from pre-existing harmonies and fragile, precarious balance present in Nature. A Green political agenda appeals strongly to deep longings shared among many people whose temperament seeks tranquillity in a world of wild natural beauty uncluttered by dependency on tools and experts and specialists. According to proponents of the Green philosophy, our world is pregnant with enormous problems. Armed with expanded political powers, regulatory guardians at state and local levels have mustered their forces with shotguns cocked, poised to prod an ignorant and lazy citizenry to the altar for an exchange of vows with Environmental Ethics. Social engineers have skillfully discredited the traditional role of professionals in scientific engineering who are summarily dismissed as the failed architects of an industrial system pillaging the earth. They stand accused of producing unmanageable offspring - from mining minerals and energy resources to disposing of toxic wastes - whose disputed parentage and expectant crimes against humanity must be prevented by removing them from normal custody. Green critics claim that markets cannot be given custody of industrial offspring - pollutants, wastes, land-use abuses. Markets appear to have failed to provide equity to present and future generations. The only custodian with sufficient coercive power seems to be the regulatory bureaucracy. The upshot is a stark Hobson's choice - Shotgun Wedding vs. Custody Dispute. It derives its fateful predestination from an uncritical acceptance of several preconceptions which currently undergird the altar of Sustainability characterized by its acolytes as "a new and exciting doctrine." It is significant that Limits to Growth slogans of the 1970s have been displaced in the 1990s by the more palatable language of Sustainability. As a policy recommended to forestall an impending doom, Sustainability derives its credibility from dire predictions of global warming, ozone depletion, acid rain and the like. The Rio Declaration announced to the world in June 1992 that, although energy is essential to human well-being, its production and consumption in wealthy industrialized nations is unsustainable. It called for a complete overhaul of energy systems with nothing short of a total replacement of fossil fuels, uranium fission reactors, and large hydroelectric projects by means of so-called renewable energy sources, augmented by coercive regulations to force conservation and limit consumption demands. The social and political consequences of such a sweeping

Jan 1, 1995

Pictured on these pages are the six RMCMI Scholarship Award Winners for the 1988-89 year followed by a brief profile. All winners were present as guests of the Institute at the June convention in Durango, Colorado to receive recognition at the Welcome Session Monday, June 26, 1989. Each state vice president served as the host for the collegiate winner. In addition to receiving a plaque from the Scholarship Chairman, Keith McGinnis, each winner receives $500.00 tuition credit for the coming academic year. As this is a continuing award, the winners from the previous year will receive another $500.00 for tuition credit in their senior year if they have maintained good academic standing and have been recommended by their university. Criteria for these awards to be made in the spring annually is (1) That the award be made to a sophomore student and used as tuition during the junior year. (2) That the recipient be both a U.S. citizen and a resident of the state involved. (3) That the recipient have 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 those in the mining departments, but in the 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 $100.00 or more, the Patrons of the Institute fund the scholarship program and the various vice presidents contribute the travel expenses to convention for these outstanding young collegiates. Donations to this worthwhile program may be made payable to RMCMI Scholarship and mailed to the RMCMI Office, 2700 Youngfield Street, Suite 100, Lakewood, CO 80215. Profiles of the 1989 Scholarship Winners follow. [ ] David P. Pelletier University of Arizona Tucson, Arizona David is a Mining Engineering major and graduated from Santa Fe High School in 1981. He served in the Sixth Marine Regiment, Second Marine Division of the United States Marine Corps from December 1982 thru December 1985. He is a student member of SME-AIME and has held the offices of treasurer, vice president and president. He works volunteer shifts at the University of Arizona San Xavier Mining Laboratory [ ] Johnny F. Blizzard Colorado School of Mines Golden, Colorado A high school graduate of Longmont, Colorado, Johnny carries a 3.968/4.000 at Mines, majoring in Mining Engineering with a minor in Metallurgy. His name has appeared on the Academic Dean's list for the past two years. He received the Robert M. & George R. Harris Scholarship during this past year. He is a student member of SME-AIMMP and an executive council member of CSM's chapter of AIME. Summertimes, Johnny works as a miner for Edger Mine in Idaho Springs, CO on an experimental project for USBM.

Jan 1, 1989

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

Jan 1, 1984

By Dallas Grubbs

Agenda ?Growth Projections ?Economic Indicators ?Mining Equipment Growth ?Tire Supply ?Michelin Actions to Increase Capacity ?Michelin?s Challenges & Recommendations

Jan 1, 2006

Pictured on these pages are the seven RMCMI Scholarship Award Winners for the 1992-93 year followed by a brief profile. All winners were present as guests of the Institute at the June convention in Beaver Creek, Colorado to receive recognition at the Institute Awards Luncheon Monday, June 28. 1993. Each state vice president served as the host for the collegiate winner. In addition to receiving a plaque from the Scholarship Chairman, Alan Czarnowsky, each winner receives $750 tuition credit for the coming academic year. As this is a continuing award, the winners from the previous year will receive another $750 for tuition credit in their senior year if they have maintained good academic standing and are recommended by their university. 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 (1) That the award be made to a sophomore student and used as tuition during the junior year. (2) That the recipient be both a U.S. citizen and a resident of the member state. (3) That the recipient have good academic standing, be pursing 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 those 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 pro- gram and the various vice presidents contribute the travel expenses to convention for these outstanding young collegiates. Donations to this worthwhile program may be made payable to RMCMI Scholarship and mailed to the RMCMI Office, 3000 Youngfield Street, Suite 324, Lakewood, CO 80215. Profiles of the 1993 Scholarship Winners follow. [ ] ARIZONA WINNER Kevin Shirley University of Arizona Tucson, Arizona A member of the Student Chapter - Society of Mining Engineers, Mr. Shirley also belongs to the Campus Crusade for Christ organization. He enjoys baseball, basketball and football. He states, "Miners are meeting the demand of the public by providing energy fuels and minerals to support the standard of living we enjoy. It is sad to see people out of work in this country, but the third world is largely undeveloped, and many jobs are moving abroad." 'I consider winning the RMCMI scholar- ship a great motivator; your belief in me will help me become my best." [ ] COLORADO WINNER Derek Rawson Colorado School of Mines Golden, Colorado "1 have been enthusiastic about the mining industry since I lived in Divide, Colorado and spent time exploring the old mine sites." Derek says. "President Clinton may hit the mineral industry with many reforms, but I believe self sufficiency is important ... we need to produce here in the U.S. what we consume." Mr. Rawson is involved with intramural sports and varsity track. He is a member of the Society for Mining, and Exploration, Inc.; Colorado School of Mines Caving Club; Colorado School of Mines Shooting Club; and Alpha Tau Omega Leadership Fraternity.

Jan 1, 1993

By M. H. Forester

The Bituminous Coal Industry has for the past year been faced with a most serious problem. I am sure that you have had your own individual and local problems, as do we all. In my thirty years of practical experience with coal mining, I have never found an operating man nor a coal mine without problems. The very nature of mining, with so many unknown factors involved, precludes the absence of problems. But they are not insurmountable, and one should not dwell on them interminably. They should be recognized as a challenge to our ability and ingenuity to solve them, and once the proper solution is found, it should be applied and the problem dismissed. However, we find ourselves at the moment in the midst of a serious challenge to our very existence. In the early thirties, many in the industry welcomed the re-establishment of Unionism as a balance wheel, in the belief that the stabilization of wage scales would also stabilize prices and eliminate disastrous price cutting practices. The ultimate effects of having twenty-six years of benevolent paternalism in the administrative branches of Federal and State Governments with their labor courting policies, could hardly have been anticipated. And so with wages spiralling under government sponsorship, we have finally reached the point where competitive fuels, such as natural gas and oil are more attractive to the consumer, from the economic angle of cents per BTU cost, than coal.

Jan 1, 1953

Oren. F. Bridwell: The President declares there is a quorum. Since the minutes of last year's meeting arc published in the Proceedings, unless there is objection, we will dispense with the reading of the minutes. There being no objection the minutes will he dispensed with. Is there a report from the Treasurer? Raymond Venous, Chairman, Auditing Committee: I'd like to submit the report for the Secretary-Treasurer for the previous year. Following is the financial report of the Treasurer from May 21, 1964 to May 24, 1965. (Report submitted) May we say, "Cussie," you keep a very, very nice set of hooks. Thank you. Oren F. Bridwell: You have heard the report of the condition of our treasury. We are solvent, at any rate. You have also heard the report of the Auditing Committee. If we might have a motion that the report of the auditing committee he accepted. Moved, seconded and carried. We'll have a report of the Resolutions Committee. Max A. Robe, Chairman, Resolutions Committee: Ladies and gentlemen, we have four resolutions, which we trust are going to he in the best interests of the Rocky Mountain Coal Mining Institute and the coal industry in general.

Jan 1, 1965

By Wm. H. Woodhead

Improved methods of mining have accompanied the introduction of mechanical loading, of which there are a great many varieties, but this multiplicity of mining brings new problems and greatly increases the importance of managing over a few years ago. Few mines operating today have been opened with the intention of mechanizing throughout. The problem of mechanization is to change over a mine heretofore operated by hand methods and to select machinery that will fit the old system with the least number of changes, the aim being not to disrupt or to completely change the original plan. The organization of mechanical and electrical forces is a problem in mechanical loading, and each individual mine presents its own problems. Plans which may succeed in one mine may fail in another and upon the management rests the responsibility of deciding the best method in each case.

Jan 1, 1930

Jan 1, 2007

By C. Arthur Carlson

"It now becomes my privilege and duty to call to order this fifty-first meeting of the Rocky Mountain Coal Mining Institute. "I bid you a hearty welcome and I know by your attendance at these meetings you will gain a great deal of valuable information, as well as have a wonderful time. "We have been very ably represented by Mr. John H. Emrick as General Chairman, assisted by our good friend Mr. Fred W. Whiteside, our secretary and treasurer. I know they have worked very hard in selecting the various committees, who in turn - by the looks of our program have gone all out to prepare material that should be of great interest to us. I trust we will be attentive to the subjects presented and freely enter into the discussions, also relating our problems and experiences. I am sure this will prove both profitable and beneficial to all present. "The main purpose of these conventions is to become acquainted with each other, renew old acquaintances, talk over our problems, and have a little fun and relaxation from our every day routine. "Let us not forget the manufacturers, the distributors, the operators, or the press because it is through their splendid support that this organization is successful. "Since our last meeting we have gained many new members, whom we especially welcome. We are sorry to have lost a few. I am mindful, at this time, of two very good members from my home state who have passed away, Walter Wetzel, a former president of this institute, and Lee Alger, at the time of his death, Vice-President from Utah. We also lost very recently our assistant Secretary-Treasurer, Everret Davis. These men contributed a great deal to the institute and the coal industry in general. I am sure they are greatly missed by all who knew them."

Jan 1, 1955

By John E. Willson

Typical of southwestern Wyoming are coal structures that dip from 4 degrees to 17 degrees. Those at the Reliance and Winton mines of the Union Pacific Coal Company average 9 1/2 degrees and 15 degrees, respectively, and dip almost directly to the west. By using a hoist for main haulage. a method of mining has been developed whereby four places are driven on the pitch of the seam. Slightly upgrade from the strike at intervals of 300 feet, a two-entry system is driven to the north and to the south. In both fields, which are non-gassy, an exhaust system of ventilation is used. Slope, manway, and lower or haulage entries are placed on the intake. Two air-courses and upper or breaking entries are placed on the return. A retreat system of mining is used exclusively. From the opening of its first coal mine, in the year 1868, until 1923, when the Joy Loader was introduced into the Union Pacific Coal Company's operations, slopes, aircourses and manways were driven by hand. Development work was conducted on the night shift or off shift, and the main hoist was used for haulage. The slope was driven down the pitch with crosscuts turned at intervals of 75 feet and entries at 230 feet. Connections to the workings above were made by driving up the pitch 75 feet. Mule haulage was used to furnish cars to the hand loaders driving planes up the pitch. A sheave was placed at the upper end of the plane with a 1 1/4¬ inch hemp rope doubling around it and having one end attached to the car and the other to the mule. The mule, pulling downhill, raised to the working face a small wooden car of one-ton capacity.

Jan 1, 1941

By V. F. Parry

The author wishes to acknowledge the advice and criticism of A. C. Fieldner, chief, Coal Division, Bureau of Mines, United States Department of the Interior; the assistance of Durbin Van Law, consulting industrial engineer, Denver & Rio Grande Western Railroad, Denver, Colo., who furnished valuable information on trends of coal production in Utah by making available his unpublished report "Utah Coal Industry"; and the aid of J.C. Beltz, associate research chemist, Bureau of Mines, Washington, D. C., who reviewed and checked the data, and of W. S. Landers, assistant chemical engineer, Bureau of Mines, Golden, who assisted in the preparation of many of the statistical data, in this report.

Jan 1, 1942

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

The Wednesday Morning Session of the Rocky Mountain Coal Mining Institute was called to order by Albert Keenan of the Thompson Creek Coal and Coke Company, Denver, Colorado, in the absence of the President. He introduced Edward Prostel of the University of Wyoming Natural Resources Research Institute, Laramie, Wyoming, who spoke on "Coal Utilization Work at the University of Wyoming." (Please refer to the index for printed text of the paper.) Following Mr. Prostel's talk, R. Park Lamborn of the National Mine Service Company, Pittsburgh, Pennsylvania asked Mr. Prostel two questions: (1) What -has been done in tar research? and (2) Has there been large scale research on brickets? Mr. Prostel stated that he could not say too much about the first question as this research was done in the petroleum department and he would prefer to have a chemist talk about it. As to the second question, the system of carbonization is a big project. There are many possibilities. At the University they are trying to do that in the same unit that produces the char. This system was introduced in Canada. The brickets are bound with sulphite liquor. Mr. Schloss asked Mr. Prostel to report on a project that they have been working on at the University, and Mr. Prostel stated that some time ago they began to experiment to see if it would be economically possible to dry coal at the mine (coal containing 30% moisture) and then ship it a distance of 130 miles to be used. Results are that it would be possible, but will require a considerable quantity. He felt it might be possible to operate such a scheme in a few years.

Jan 1, 1957

ARTICLE I - General Section 1. Name. The name of the corporation shall be The Rocky Mountain Coal Mining Institute. Section 2. Objects and Purposes. The objects and purposes of The Rocky Mountain Coal Mining Institute and the nature of the business to be carried on by it are as follows: (a) To sponsor educational programs pertaining to coal mining technologies and production techniques, mining management and safety, federal, state, and local laws, rules and regulations pertaining to coal mining, and other energy related issues. (b) To disseminate to the public and to educational and scientific institutions knowledge, and the results of study and research into recent developments in coal mining technologies and production techniques, mining management and safety, federal, state, and local laws, rules, and regulations pertaining to coal mining, and other energy related issues. (c) To do and engage in all lawful activities that further or are consistent with the preceding objects and purposes of the corporation. Section 3. Nonprofit Corporation. This corporation shall operate as a nonprofit corporation under the laws of the State of Colorado. ARTICLE 11- Principal Office and Corporate Seal Section. 1. Principal Office. The principal office and place of business of the corporation in the State of Colorado shall be in the County of Jefferson, Colorado, or at such other location as the Board of Directors may from time to time determine. Other offices and places of business may be established from time to time by resolution of the Board of Directors. Section 2. Corporate Seal. The seal of the corporation shall be inscribed with the name of the corporation, the year of its incorporation, and the words "Colorado" and "Seal," and shall be in a form approved by the Board of Directors, which may alter the same at pleasure. ARTICLE III - Members Section 1. Classes. The membership of the corporation shall be divided into three classes, consisting of active members, life members, and senior members, who shall have such rights, privileges, and qualifications as these bylaws may provide. Section 2. Qualifications. The members of the corporation shall have the following qualifications: (a) Any individual interested in the goals and purposes of the corporation may become an active member of the corporation upon payment of such annual dues as the Board of Directors may determine from time to time by resolution. (b) An individual who has devoted long and dedicated service to the corporation and to its goals and purposes may become a life member of the corporation upon being elected to that status by the Board of Directors, and such individual shall retain such status for life. (c) An individual who has been at any time an active member of the corporation and who has reached 70 years of age may become a senior member upon payment of such annual dues as the Board of

Jan 1, 1994

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