STATE OF THE

WYOMING COAL

INDUSTRY

Chris Carroll

Wyoming Geological Survey

WGA Meeting

Casper, WY

Aug. 16, 2014

COALIFICATION

GYTTA

J. McClurg photo

MAKE A MAP OF WYOMING COAL HERE

Wyoming Coal

Map 2011

WYOMING COAL BASINS

PRB

Wind River

Big Horn

GGRB Hanna

Jackson

Hams Fork

Wyoming

CO

NB

SD

MT

ID

UT

Goshen Hole

Carbon

COUNTY COAL PRODUCTION

Table 1. Wyoming Coal Production by county and mining method, 2013

Source: Wyo State Inspector of Mines 2014

2013 Method

County Production Underground Surface Mines

Campbell 343,018,222 343,018,222 11

Converse 31,354,248 31,354,248 1

Hot Springs 26,587 26,587 1

Lincoln 4,639,135 4,639,135 1

Sweetwater 8,956,880 4,442,616 4,514,264 3

Total 387,995,072 4,442,616 383,552,456 17

units in short tons.

2013 WYOMING COAL PRODUCTION

39% of US coal production, 388 MT

17 active coal mines, 16 are surface type

WV+ KY+ PA+ IL+ TX+ MT < WY

2013 Wyoming Coal Production by Mine

NARM

29%

WYOMING COAL PRODUCTION 2013

Production down 3.4% from 2012,

Lowest production level since 2003

10.4 BT coal mined since 1865

Last 5 yrs 2.1 BT mined;

in last 20 yrs 7.4 BT mined, or 73% of historic total

12 tons per second

POWDER RIVER BASIN

Peabody Energy’s North Antelope Rochelle Mine is the world’s largest coal mine

2013 production: 111,005,549 tons produced, a world record

Arch Coal’s Black Thunder Mine 2nd at 100,687,876 tons.

Together these two mines produced 20% of the entire

US coal production 2013

PRB COAL MINE PRODUCTION AND

EMPLOYMENT STATISTICS

WYOMING COAL MINE TABLES Mine Names

MSHA Mine

ID County Parent Company Geologic Region Geologic Formation

1. Antelope Mine 4801337 Converse/Campbell Cloud Peak Energy Resources Powder River Basin Tongue River Member of the Fort Union Fm

2. Belle Ayr Mine 4800732 Campbell Alpha Natural Resources Powder River Basin Tongue River Member of the Fort Union Fm

3. Black Thunder Mine 4800977 Campbell Arch Coal Powder River Basin Tongue River Member of the Fort Union Fm

4. Buckskin Mine 4801200 Campbell Peter Kiewit & Sons Powder River Basin Tongue River Member of the Fort Union Fm

5. Caballo Mine 4801034 Campbell Peabody Energy Powder River Basin Tongue River Member of the Fort Union Fm

6. Coal Creek Mine 4801215 Campbell Arch Coal Powder River Basin Tongue River Member of the Fort Union Fm

7. Cordero Rojo Mine 4800992 Campbell Cloud Peak Energy Resources,

LLC Powder River Basin Tongue River Member of the Fort Union Fm

8. Dry Fork Mine 4801429 Campbell Western Fuels, Inc Powder River Basin Tongue River Member of the Fort Union Fm

9. Eagle Butte Mine 4801078 Campbell Alpha Natural Resources Powder River Basin Tongue River Member of the Fort Union Fm

WYOMING COAL MINE TABLE Mine Names

MSHA Mine ID

County Parent Company Geologic Region

Geologic Formation

10. NARM (North Antelope

Rochelle Complex Mines) 4801353 Campbell/Converse Peabody Energy Powder River Basin Tongue River Member of the Fort Union Fm

11. Rawhide Mine 4800993 Campbell Peabody Energy Powder River Basin Tongue River Member of the Fort Union Fm

12. Wyodak Mine 4800083 Campbell Black Hills Corp Powder River Basin Tongue River Member of the Fort Union Fm

13. Black Butte Mine 4801180 Sweetwater Ambre Energy/Anadarko

Petroleum Rock Springs Uplift Fort Union/Lance/Almond Formations

14. Jim Bridger Mine (surface and

Highwall) 4800677 and

4801645 Sweetwater

Pacific Minerals/Idaho Energy

Resources Rock Springs Uplift Fort Union Formation

15. Jim Bridger Mine

(underground) 4801646 Sweetwater

Pacific Minerals/Idaho Energy

Resources Rock Springs Uplift Fort Union Formation

16. Grass Creek Mine 4800995 Hot Springs Spring Gulch Coal Co. Bighorn Coal Field Fort Union Formation

17. Kemmerer Mine 4800086 Lincoln Westmorland Coal Co. Hams Fork Coal Field Adaville Formation

WYOMING COAL MINES TABLE Mine Names

PRB Coal Zone

Producing Beds

Seam Thickness Bedding Dip in

degrees Overburden BTU/lb from mine permit

1. Antelope Mine Upper Wyodak

Anderson A: 44 ft. C: 36 ft 2 degrees west 8880

2. Belle Ayr Mine Upper Wyodak

Anderson 70-75 ft 4 degrees west 240-285 ft 8542

3. Black Thunder

Mine Upper Wyodak

Anderson 70 ft none 0-230 ft 9011

4. Buckskin Mine

Upper and Lower Wyodak

Anderson-Canyon (minor Smith bed in the Wyodak Rider zone)

A:30-40 ft; C: 60-70 ft.

3 degrees west 250 ft 8297

5. Caballo Mine

Wyodak Rider and Upper Wyodak

Smith, Anderson

68 ft 3 degrees west 230 ft 8501

6. Coal Creek Mine Upper Wyodak

Anderson 33 ft 1 degree west 8400

7. Cordero Rojo

Mine Upper Wyodak

Anderson (Roland?)

55-70 ft 1 degree west 8400

8. Dry Fork Mine

Upper and Lower Wyodak

Anderson-Canyon merged

A:23 ft; 4-12 ft interburden carbonaceous mudstone; Canyon 60-65 ft

4 degrees west 30-160 ft 8125

9. Eagle Butte Mine

Upper and Lower Wyodak

Anderson-Canyon merged

A: 40 ft, C: 60 ft, parting is 1-2 ft

4 degrees west 50-300 ft 8434

Mine Names PRB Coal

Zone Producing

Beds Seam Thickness

Bedding Dip in degrees

Overburden BTU/lb

10. NARM (North Antelope

Rochelle Complex Mines) Upper Wyodak Anderson 72-80 ft 0-2 degrees northwest 70-300 ft 8800

11. Rawhide Mine Roland? Upper Roland and Lower Smith?

UR: 30 ft; LS: 75 ft 3 degrees west 165 ft 8300

12. Wyodak Mine Upper and Lower Wyodak

Anderson-Canyon merged

85 ft total 2 degrees northwest 0-100 ft 7900

13. Black Butte Mine

Lance: Overland, Gibraltar, Black Butte, Maxwell, and Hall beds. Almond: Lebar, C and D beds. Ft Union: Utec coal, Black Rock Coal Group

currently producing from Almond Fm E,F,G seams 2-15 ft, and Ft Union C seam 23 ft.

3-10 degrees east northeast

0-220 ft 9720

14. Jim Bridger Mine (surface

and Highwall)

D41 Bed (Deadman #2)

15-30 ft 5 degrees northeast 0-150 ft 8740

15. Jim Bridger Mine

(underground)

Leaf, Big Burn, Nuttal, Washout, Deadman: now in D41 seam

9 ft 2-5 degrees northeast 700 ft 9200

16. Grass Creek Mine Mayfield/Gwynn coal bed

20 ft, shale parting 4 ft, 20 ft coal 9 degrees southwest 0-100 ft 9800

17. Kemmerer Mine Adaville No. 1 and 11 other coal groups

15-30 ft 26 degrees west 0-900 ft max depth 10000

WYOMING COAL MINE QUALITY

Mine Names

2013 state mine

inspector production

(tons)

Employees (2013)

Ash % (As received)

Sulfur % (As received)

Moisture %(As received) Stripping Ratio (bank cubic

yards/ton)

1. Antelope Mine 31,354,248

556 4.39-6.18 0.23-0.29 26.2-26.04 4.6:1 , 5:1

2. Belle Ayr Mine 18,258,922

283 4.7 0.25 29.35 4.2

3. Black Thunder Mine 100,687,876

1,591 4.28-5.31 0.27-0.35 26.71-27.29 4.2

4. Buckskin Mine 15,023,906

330 4.75 0.27-0.32 30-30.5 2.4 to 2.8

5. Caballo Mine 8,979,111

149 4.9 0.33 29.72 4.2

6. Coal Creek Mine 8,522,265

148 5.7-6.16 0.32-0.35 29.88

7. Cordero Rojo Mine 36,670,450

603 4.4-5.37 0.23-0.29 9.24-29.7 3.7

8. Dry Fork Mine 5,433,936

78 3.8-5.1 0.2-0.42 1.8

9. Eagle Butte Mine 19,904,433

259 4.95 0.4 30.35 2.9

WYOMING COAL MINE QUALITY

Mine Names

2013 state mine

inspector production

(tons)

Employees (2013)

Ash % (As received)

Sulfur % (As received)

Moisture %(As received) Stripping Ratio (bank cubic

yards/ton)

10. NARM (North

Antelope Rochelle

Complex Mines)

111,005,549

1,340

3.88-4.28 0.2 3:1 to 2:1

11. Rawhide Mine

14,246,329

203 0.37 1.6

12. Wyodak Mine

4,285,445

65 7 0.45 30-32 1:1 to 2:1

13. Black Butte Mine

3,728,280

185 6-9.2 0.3-0.7 18-21 5:1 - 8:1

14. Jim Bridger Mine

(surface and Highwall)

785,984

178

9.5-10.6 0.57 18-19.1 4.17 -7.48

15. Jim Bridger Mine

(underground)

4,442,616

224

10.3 0.58 19.3 ------------

16. Grass Creek Mine

26,587

3 10-13 1.6 10 5.0

17. Kemmerer Mine

4,639,135

289 3-6 0.7-0.9 5.0

WYO COAL RANK

US COAL SPOT MARKET PRICES 2003-2014

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00 Central Appalachian Basin

Northern Appalachian Basin

Illinois Basin

Powder River Basin

Uinta/Piceance Basin

COAL PRICES

$10.00

$11.00

$12.00

$13.00

$14.00

PRB weekly spot prices from EIA

Value of Coal Mined Today

http://www.wsgs.uwyo.edu/Resear

ch/Energy/Coal/Default.aspx

As of July 25, 2014, EIA estimates

Wyoming coal production for the past

52 weeks at 386.18 MT, down

slightly from 2013.

WSGS estimates the value at $4.66

billion (based on spot price of

$11.87/ton surface, and $29/ton

underground)

UW Econ says $14.24/ton avg sales price

2012

= value of $6 Billion (>$14.24/ton avg)

Before 2013: $1/acre standard

Aug 2013 PRB lease sale: no bidders

Sept 2013: 21c/acre rejected by blm

as not fair value

HISTORIC PROSPECTIVE

In 1908 the average UMWA worker made $3.40/day and $0.60/ton (3 ton day)

for a total of $5.60/day

The average wage in 2012 was $81,174.

1914, coal production total for Wyoming mines was 6.48 MT. At $1.55/ton,

The value was $10.03 million.

In 2012 >$1.2 Billion to state and local governments (ad valorem, severance).

EMPLOYMENT

COAL RESOURCES & RESERVES

Wyo Recoverable

Reserves: 6.932 BT

Avg Recovery: 91.92%

Active mines today:

WYO COAL RESOURCES/RESERVES

Original

Resource

Coal

Availability

Recoverable

Coal

Economic

Recoverable

Reserve Today

USGS WY-MT

PRB (2013) 1,070 930 162 24.6

Wyoming PRB

only 855 768 127 11.6

Estimated

Wyoming Entire

State (From N.

Jones, 2010,

Keystone

Industry Coal

Atlas)

1,463 --- 165.1 >20

Billion short tons

RECLAMATION, SAFETY, AND

ENVIRONMENT

COAL TRANSPORTATION

DOMESTIC MARKETS FOR WYOMING

COAL

NEW COAL TECHNOLOGIES

Ciris Energy approved to do microbial bioconversion of carbon at a project near Buffalo.

Linc Energy plans an UCG R&D

90 day demonstration in the PRB.

No final approval yet, waiting on

EPA aquifer exemption for coal. WEQ approved.

THE WAR ON COAL

The Obama administration is seeking to reduce carbon emissions from electric

plants by 30% between 2005 and 2030. Practical effect will be to penalize coal-

fired power plants while artificially boosting demand for other energy sources.

Bridger Plant

burns 27 M lbs

coal daily

LATEST NEWS

$15 million legislated to build CO2 research centers at

active coal-fired power plants in Gillette

• Coal exports through the Pacific Northwest now supported by 47%

• of residents there

PRB coal producers face increased coal use taxes in South Korea

Due to low BTU coal producing burn outs as not enough coal is burned

• In 2013 more than half of the fossil fuel energy produced on federal and Indian

• Land came from Wyoming

• Sage Grouse: USF&W to decide if endangered in 2015

• 15 M acres habitat in Wyo

• Core area study by Wyo is preferred

Black Butte, Bridger, Kemmerer mines all captive to power plants

Sell to 3 power plants: Pacificorp, Bridger, Valney, Las Vegas. Trona

mine operations

Leucite Hills in reclamation. Bridger Mine longest permit area in US

Adaville fm Kemmerer

NEW DEVELOPMENTS

Ramaco wants to open a new coal

mine in Sheridan CO

-RAMACO acquired, and is actively developing a Northern Powder River

Basin Reserve (Brook Mine) near Sheridan, WY, containing approximately

1.1 billion tons of high BTU subbituminous coal, of which approximately

959 million tons are owned and 146 million tons are leased.

NATIONAL COAL RESOURCE DATABASE

(NCRDS) : USGS/WSGS

HISTORY OF WYOMING COAL MINING

MODERN DEPOSITIONAL ENVIRONMENTS

SIMILAR TO PRB MODEL

Rio Paraiba, Brazil

Mahakan River, Kutai Basin, Borneo

Upper Columbia and Lower Saskatchewan Rivers, Canada

MAHAKAM RIVER, BORNEO

CANADIAN RIVERS

UPPER COLUMBIA RIVER CANADA

LOWER SASKATEWAN RIVER, CANADA

Middle Tertiary Tectonic

And Drainage Patterns

From R. Flores, et al, USGS

PRB probably more

tectonically confined

than this by Black Hills

And Big Horns

POWDER RIVER

BASIN COAL

GEOLOGY

CC IN GEOHISTORY

1,270 billion tons of coal in the Powder River Basin burned in the last 5 million years. Where is the CO2 record for this? Clinker dating by Zhe (U-He-Th ratios) and ZFt (zircon fission-track) 0-2 Ma (Heffern, et al, 2012).

Quaternary: 33 major glacial advances.

Summary: Climate changes continually

WEBSITES OF WYOMING COAL INTEREST

Leading the charge, Wyoming’s action plan for energy, environment, and economy

http://energy.wyo.gov/