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PRESIDENT PRYDE: I am sure we have all listened with interest to the presentation of this subject. Anything that promises economy in coal mining today is welcomed by all of us. We will now have a discussion on this paper. If any of you gentlemen want to ask any questions, you may do so. I think we will develop something of interest and along the lines of economy. That is the first consideration of a coal mining man. MR. H. D. RANDALL: It is an interesting fact that in manufacturing we find the greatest economy results from giving a man the simplest possible act to perform, while there is nothing too complicated for a machine. If we want to put up a set screw we find it cheaper to let one man set it up and the other screw it in. The maximum economy is what we are after. Similarly, one of the points of greatest interest which Mr. Ickis has emphasized, is that this automatic equipment not merely dispenses with a manual operator, but also performs certain functions which the operator cannot do. It provides an inherent protection to the apparatus and service not possible under manual operation. We very rarely have cases of failure with these automatic equipments, .and consequently have the advantage not only of having eliminated the operator's salary, but also his mistakes. We have had a large number of these equipments in use for several years, so that their practicality is now thoroughly proven, and the trend of practice now indicates that the automatic idea will be further extended and will become universal for such classes of service. MR. D. C. McKEEHAN (Union Pacific Coal Company) : My notion of an automatic sub-station is one that does not necessarily require new equipment beyond the control equipment; so that any of you that are interested in it can take up with the manufacturers and find out how much it would cost to change any equipment. The greatest point I think is the fact it eliminates the several nationalities from operating the set, either on day shift or night shift. They can so lock the control as to make it impossible for anyone to start or stop it, except the one who has the authority. Another point I do not believe was brought out very clearly: It would be particularly advantageous to people who buy power, and if you could have several sets in parallel, it would allow you to start the shift with one set and cut in the additional sets as the shift progresses. There are various operations that stop at the end of each shift, and-one or two or three sets can be cut out, leaving the load on one set, providing the size of the copper is sufficient to supply all the points of the mine. Another point I want to bring out: In case you have quite a number of sets distributed along transmission line, the switch trips, the operation restores the service, and you may have several hundred-or in case with us, we would have several thousand-K. V. A. of Motor Generator Sets and Rotaries, that would be starting at once, and the switch would automatically trip out again. MR. RANDALL: Another form of control was described as the so-called supervisory control. This control could be started up so the starting would not be synchronous, but could be spread out over a sequence. MR. McKEEHAN: I think that is rather a theoretical consideration for coal miners. They are standing at the controller ready to shut it off unless there is some selective method of starting various sets- MR. RANDALL: I had in mind this supervisory control, one man, a central operator who would determine which station should start and he would take time enough to have his load come on gradually. He would not permit all the installations to come on simultaneously, but come on in succession: MR. McKEEHAN: You misunderstand me. Suppose we had the main switch at Rock Springs, which supplies several camps, and there are several

Jan 1, 1924

[Adams, Douglas K General Electric Co., P.O. Box 2331, Denver 1, Colo. Adams, Frank E U.S. Steel, 919 Kearns Bldg., Salt Lake City, Utah Alger, Van Kaiser Steel, Sunnyside, Utah Allan, Andrew Thompson Creek Coal & Coke Corp., Glenwood Springs, Colo. Allen, Earl W Mine Safety Appliances Co., 257 Rio Grand St., Salt Lake City, Utah Allen, Thomas Chief State Coal Mine Inspector, State Services Bldg., Denver, Colo. Anderson, Nephi W :Book Cliffs Coal Co., Dragerton, Utah Anderson, W. J Texaco, Inc., 845 N. 5th E., Price, Utah Ankeny, Marling J U. S. Bureau of Mines, 5308 Roosevelt St., Bethesda, Md. Arentzen, E. M Lee-Norse Co., Charleroi, Pa. Arentzen, L. E Lee-Norse Co., 2975 18th St., Boulder, Colo:]

Jan 1, 1961

President Schloss called the third session of the fifty-eighth annual meeting of the Rocky Mountain Coal Mining Institute to order at 9:30 a.m. and introduced James Westfield, Assistant Director, Health and Safety, U. S. Bureau of Mines, Washington, D. C., who presided over the session. First speaker of the session was S. L. Jewell, Vice President, Peabody Coal Company, St. Louis, Missouri, who spoke on "Our Three Main Routes From Here." (Biographical sketch of Mr. Jewell, see index.) (For the printed text of Mr. Jewell's paper see index.) Mr. Westfield introduced Marling J. Ankeny, Director, U. S. Bureau of Mines, Washington, D. C., who served as moderator on the panel, "How Do We Go From Here in Safety?"

Jan 1, 1962

By Arline Seeger

Overview ? Lime Basics ? NLA & Its Advocacy ? State of U.S. Lime Industry ? Present & Future ? Lime?s Use in Coal?Conversion Plant

Jan 1, 2006

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

The morning session opened at 9:00 a.m. and was presided over by Harold Levent., Manager Coal Activities, Cameron Engineers, Denver, Colorado. The first speaker was Dr. Joseph J. Yancik, Assistant Director-Mining, Bureau of Mines, U.S. Department of the Interior, Washington. D.C. Subject-"Coal Mining R&D Programs of the Bureau of Mines." (See index for printed text of Dr. Yancik's paper.) Joseph J. Yancik is Assistant Director - Mining for the Bureau of Mines, U.S. Department of the Interior, Washington, D.C. He is responsible for the Bureau's research programs in mining. Principal programs are the coal and metal mining health and safety research, mining extraction and excavation, tunnelling, explosives, mined land reclamation, mine fires and mine waste disposal. He administers these programs through four research centers and through outside contracts and grants.

Jan 1, 1974

DR. BANOWSKY: Thank you very much. That was the shortest introduction that I have had lately, and I didn't have time to get my coat on. But I appreciated it, and I'm delighted to be here with an industry with which 1 feel strong affinity. At the University of Oklahoma we have an energy history. We are a little more currently involved in oil and gas, and those of you who know the history of our state would be aware we have an early coal development back really before the turn of the century in the southeast part of our state what we call Little Dixie. How many of you have spent anytime in Oklahoma or are from the state of Oklahoma? I'm not going to ask how many are from OSU or the University of Colorado. We did send you a football coach here from Oklahoma, and 1 see you have exchanged him. Several of you were only interested in the lobby in asking about our football team this year. 1 would like to go somewhere where we can talk about something besides football. I'm just trying to build a University that our football team can be proud of. We're going to be strong again. 1 can assure you. We've got the best football team money can buy. It's not quite as bad as the college president who called the coach in and said, "Coach we're in trouble, you're losing games and the alumni is very unhappy." "What can we do?" the president asked. The coach said, "Well the football team is flunking the admissions test. We can't get them in with the standard achievement and SAT tests." The president said, "What can we do?" The coach said, "Well the coaching staff has substituted for the American College Test the simple fill in the blank questionnaire." The president said, "Let's use it. We have got to get the team in." The first question was, Old MacDonald had a (-). And a couple of the big tackles were taking it and one of them said, "Hey, what did Old MacDonald have?" His friend said, "Stupid, Old MacDonald had a farm." "Well how do you spell farm?" He said, "Stupid, e i e i 0." Now the gentleman who met me at the registration line from Lakewood, Colorado, was asking me about one of our great big tackles; and he is doing well. We call him Doctor Death; he is also a wrestler and that gentleman said, "1 don't know how bright he is." 1 said, "He is bright enough for our academic tutoring that he is going to get through all right." So I'm delighted to see you and be here with my very dear friend, Carl Terzian. Carl and 1 were in Los Angeles together for 10 or 12 years when I was president of Pepperdine University. He and I are exactly the same age. Born in 1935 and 1 a month or two later in 1936. Fewer children were born in that period than in any other period of time in this century. For those of you who remember anything about that period, you will know why no one was having babies during that period. But Carl called and said, "Bill do you know where Vail, Colorado is?" Well when you live in Oklahoma, you learn where Colorado is in a hurry. 1 not only know this beautiful area, but have made too much of an investment here at a place called Beaver Creek. The real estate is cheap over there. 1 play regularly in the Gerald Ford Invitational Golf Tournament here. Hope you will visit Beaver Creek. It's just 10- 12 miles to the west. The sight of the 1976 winter olympics until the people of Colorado voted them out. And now Vail Associates and I are good Oklahoma families. Bass family, Harry Bass of course, many of you know this story, who is chairman of the Board of Vail Associates, is making quite an investment in that year-round resort area. Beautiful golf course now. You can come out and afford the green's fee and beautiful, beauti-

Jan 1, 1982

Presiding: Herman Van Houten, Senior Marketing Counselor, Joy Mfg. Company, Pittsburgh, Pa., and John A. Reeves, Vice President, Mid-Continent Coal &Coke Co., Carbondale, Colorado. The Keynote Speaker, Senator Jennings Randolph from West Virginia, was unable to come due to pressing business in Washington. A film presentation on Surface Mining and Reclamation, "Energy Bridge," Courtesy of Pittsburgh & Midway Coal Mining Company, Denver, Colorado, was shown and was prefaced by comments from James V. Fisher. "Advantages of Longwall Mining in Western Coal Production" was a paper presented by David W. Wisecarver, Supervisory Mining Engineer, U.S. Bureau of Mines, Denver, Colorado. Mr. Wisecarver graduated from Virginia Polytechnic Institute in 1949. After two years with International Harvester and two years in the U.S. Army, he joined the engineering staff on a Bureau of Mines underground mining operation in Virginia for eight years where he saw duties as mine surveyor, shift boss, and assistant maintenance superintendent.

Jan 1, 1977

National Energy Technology Laboratory ?Only DOE national lab dedicated to fossil energy -Fossil fuels provide 85% of U.S. energy supply ?One lab, five locations, one management structure ?1,200 Federal and support-contractor employees ?Research spans fundamental science to technology demonstrations

Jan 1, 2006

By H. F. Nash

Coal is the basic necessity of our present-day civilization, and those engaged in the industry, whether miner, day-man, pit boss, tipple boss, superintendent, salesman or operator, have a direct responsibility to the public at large. Our country is blessed with a great supply of Bituminous coal, upon which it must largely depend for its industrial prosperity. Anthracite coal, in its relation to our economic situation, is a small factor, as its ratio of production to Bituminous coal is only about one-sixth. However, within the last ten years, electricity and oil have largely displaced the use of coal in industry, so that the use of Bituminous coal is decreasing, relatively, and the potential production of Bituminous coal has largely increased since the war. High wage scales and high freight rates make the delivered price of coal to the consumer so out of proportion to the cost of electricity and oil -and strikes make the supply of coal so uncertain-that industry is rapidly turning to electricity and oil. The energy in a ton of coal can be transported, by electric current, a distance of 250 miles for 78% of what it costs to ship the coal in bulk, by rail, in the East-and, for about 60% of what it costs in our section of the country. The use of fuel oil, distillate and gasoline, in industry, has increased by leaps and bounds. Especially was this noticeable during the strike this year, as the large packing plants in Kansas City, Omaha and Sioux City (that formerly used nothing but coal) are now practically all using oil. This also supplies to other industrial plants throughout our territory in Texas, Oklahoma, Kansas and Nebraska. Many railroads are using oil, as are also the smelters, cement plants, etc., etc. Ten years ago, 100% of the threshing in the state of Kansas was done with coal-today not over 25% of it is done through that means-and so it goes all along the line. The use of our coal is being yearly more restricted in industry. In the case of domestic consumption, the circle is also ever decreasing.' In small towns and on farms, kerosene, gasoline and wood are largely utilized for cooking. For the past four years, along any country road, it is a common occurrence to hear a buzz-saw cutting old fence posts or timbers taken from creek bottoms. Many thousands of tons of coal are displaced each year through the use of corn and cobs. In larger towns, gas plants have been installed, and many housewives use gas-in communities contiguous to natural gas, that is used for industrial and domestic purposes. The time has gone when industrial and domestic consumers or dealers are satisfied to buy anything that is black-competition among the coal-producing states is keen, and will become more so. Eastern and southern fields are turning out splendidly prepared coals of high quality, and with their lower freight rates to competitive territory, will entirely nullify the use. of our Western coal unless-

Jan 1, 1922

By Robert E. Hanes

Coal Perspectives We are the ?Saudi Arabia of Coal Reserves? (Billions of Short Tons) [ ] However, China & India have added approximately one half of the U.S. installed base capacity for electrical generation, in TWO YEARS ? and it took us some 50-60 years to install our coal fleet.

Jan 1, 2008

Jan 1, 1997

By Fredrick D. Palmer

U.S. ENERGY: PUTTING PEOPLE FIRST Assessing Goals, Needs and Resources ?Decision-makers must balance the needs of average Americans with the need for: ?A strong economy ?A clean environment ?A secure nation ?Events of recent years ?terrorist acts, multiple energy crises and a global focus on sustainable development ?magnify the need to balance these principles ?Coal ?domestic, abundant, affordable and increasingly clean ?meets these needs like no other energy source

Jan 1, 2003

The first session of the Rocky Mountain Coal Mining Institute was called to order by John T. Maulsby, Superintendent of Maintenance and Planning, Columbia-Geneva Steel Division, U. S. Steel Corporation, Dragerton, Utah, representing the past-president. W. K. Dennison, Jr., Superintendent. Koehler line. Kaiser Steel Corporation. Raton, New Mexico, who was unable to attend. Mr. Maulsby welcomed the members and guests, and introduced the President, A. Z. Dimitroff, Mining Electrical Engineer, Health and Safety, District 1-L, U. S. Bureau of Mines. Denver. Colorado. The text of President Dimitroff's address of welcome is as follows: The President's Remarks Guests and Members of the Rocky Mountain Coal Mining Institute: The distinct honor and privilege of officially welcoming you to this, the fifty-seventh regular meeting of the Institute, is indeed a pleasure. Your officers and committees have tried to provide a varied program which I am sure should have something of interest to all of us. The theme of this meeting, "Where Do We Go From here'?", appeared rather fitting for the In¬stitute this year because, as most of you know, until only two weeks ago we thought that this is the last time we will be able to meet at the Colorado Hotel, which has been the favorite spot of most members. Your officers and many of you were literally asking just that question.

Jan 1, 1961

By Richard L. Lawson

The coal producers of the Rocky Mountain states have led in one of America's true industry revolutions - the leaps in productivity and competitiveness that deliver coal-fired electric power to the U.S. economy at prices that are the competitive envy of the world. You are a primary reason the average price of industrial power in the U.S. - the power that creates and upholds jobs - is: ? 10 percent below the French average, where nuclear power is dominant; ? 37 percent below the average for industrialized Europe; ? 49 percent below the German average, where subsidized coal and nuclear rule; ? And 73 percent below the Japanese average where nuclear and liquified natural gas dominate. There are interests ambitious to change all of that; and they will be a subject of my remarks, some by name, rank, and affiliation. Coal-fired power plants in the Rocky Mountain states deliver some of America's lowest cost electricity; and America's coal-fired plants deliver some of the world's lowest cost electricity. Represented here in one room are producers from states that deliver more than 40 percent of America's coal and five of her top 10 producing states. You are cornerstones of America's economic strength and future growth. The theme for this meeting is "The Many Partnerships of Coal;" and, in this keynote, I'd like to offer a variation on the theme. I'd like to discuss a determined partnership that is dedicated to overturning everything you have accomplished, plus the structure of our society - very dedicated, very patient, very determined. This partnership masks itself as being in the public interest but behind the mask a political alliance of three distinct private interests can be seen: ? One is ambitious for economic reward as a right and without the trouble of effort; ? One is ambitious for economic advantage in trade without the trouble of competing; ? And one is ambitious for the power to govern people without the trouble of winning consent in elections - to change the way other people choose to live in accord with their own passionately held beliefs. The international agreement on climate is being used as an artifice to advance these interests, and the interests are making the United Nations a mechanism for achieving those objectives - for turning the screw, so to speak. The President that Americans elect this year soon will come under intense pressure from these partners to: ? First, quickly adopt policies that will raise U.S. energy prices and restrict use under the climate agreement; ? And in 1998 - if they follow their own published plans - to begin the subordination of the independence of the United States to a collective sovereignty in economic, political, legal and other matters. The Worldwatch Institute inaugurated this pressure last year with a policy monograph entitled Partnership for the Planet: An Environmental Agenda for the United Nations. This is but one indicator of the situation I ask you to consider. The pressure will increase after the election. Worldwatch is one of those intellect-oriented "public interest" groups whose work often leads to policy proposals and debate. Worldwatch gets money from the U.N. Population Fund and the MacArthur Foundation among others. And so my remarks require wading waist deep into one of the more sporting current propositions of American public policy - discussion of ambitions for and within the United Nations to achieve that which the ambitious call global governance. Since last year's media focus on the militia movement - and talk of black helicopters - any

Jan 1, 1996

In this very interesting paper, Mr. Harrington mentions a considerable variety of materials suitable for use in the rock dusting of coal mines; this suggests that you may possibly be interested in same purely theoretical figures tending to show the superiority of gypsum for this purpose. Some of the gentlemen present have found difficulty in applying a thick, adherent coating of dry gypsum to the ribs and roofs of their workings, for which reason pulverized gypsum will perhaps be chiefly useful for the loading of barrier troughs. In view of the function that rock dust is expected to perform in case of a coal-dust explosion, it seems obvious that the most efficacious dust will be the one that can absorb the most heat and absorb it most rapidly. The customary rock dusting materials differ considerably in this respect, depending principally upon the facility with which they can be decomposed at the temperatures encountered in a coal-dust explosion. Such stable materials as silica, anhydrite and flue-dust vary but slightly in their heat-absorbing capacities, the specific heats of minerals in general ranging between 0.19 and 0.22; on the other hand, gypsum and limestone, as well as certain argillaceous materials such as shale, adobe, etc., are capable of absorbing additional heat through their chemical dissociation, although, as will appear later, it is questionable whether the amount of heat thus absorbed, in the case of limestone, shale, and adobe, is large enough to have any practical value. As to the temperature developed by a coal-dust explosion, the Bureau of Mines reports one test in which gold foil was melted, and others in which silver foil was melted, but not gold; hence 1832° F. (1000° C.) seems a reasonable figure to assume for purposes of calculation. Normal temperature is taken as 68° F. (20°C.). The other fundamental data required for the computations as cited by various authorities, are as follows: [Specific heats Gypsum : 0.259 Calcium sulphate, anhydrous. . .190 Limestone 0.216 Lime 0.239 Clay, shale, silica, etc. usually not exceeding 0.220 Carbon dioxide .:0.217 Steam (at atmospheric pressure)0.500 Heats of formation CaSO4+2H2O-4.606 Kg-cal. per gram molecule, or 48.2 B:t:u.' per pound of gypsum.- CaO +C0,42.5 Kg.-cal. per gram molecule, or 765 B.t.u. per pound of limestone. Latent heat of vaporization of water. from and at 100°C.. 535.9 Kg.-cal. per kilogram (964.6 B.t.u. per pound).] Computations will be based on the Fahrenheit scale and British thermal units, as probably more familiar in the coal industry. First as to the inert materials: their heat-absorbing capacity per pound is simply the product of their specific heat, say 0.22, multiplied by the assumed rise in temperature, 1764° F., or 388 B.t.u. per pound. Gypsum, CaS0, 2H.0, though apparently perfectly dry, contains 21% of combined water. When gradually heated it will have liberated three-quarters of its water freely by the time it reaches 250° F.; the remaining one-quarter is retained to a somewhat higher temperature, but the last of it will have been expelled at 482° F. For calculating the total heat absorbed in raising gypsum (or its products) to the temperature of a coal-dust explosion, no serious error will be intro-

Jan 1, 1925

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 David R. Hammond

How Could Natural Gas be Coal?s Best Friend ? - Natural gas is the environment friendly ?fuel of choice?; coal is the opposite - 90 % of new / replacement generating capacity in U.S. projected to be gas-fired - Natural gas-fired generation market share predicted to increase to 25-30% at expense of coal - Natural gas consumption forecast to growth from 22 TCF to 35 TCF per year by 2025 - Gas has good friends in the Environmental Industries and the current Administration

Jan 1, 2003

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

"Guests and Members of the Rocky Mountain Coal Mining Institute: "It gives me a great deal of pleasure to call the Fifty-Second regular meeting to order this morning. "I think that you will agree with me that we have an excellent program planned for the next three days, comprising various interesting and educational subjects by authors of prominence, which will be of keen interest to all of us in the coal industry. "The Program Committee, chairmanned by John Peperakis, has done an excellent job in securing this very splendid talent for our convention. "I would like to say a word as to the, condition of the coal industry in our part of the country as well as elsewhere. I believe we can look at it with more optimism than in the past several years, particularly in the state of Colorado, with which I am more familiar. "Annual coal production in Colorado gradually dropped from around 12 million tons during the years of World War I to as low as 8 million tons during the last war, and to less than 3 million tons in the year of 1954. We believe that it touched bottom that year, as in 1955 the state production went up again to nearly 3,400,000 tons, equivalent to an increase of 15%. As you know, the national increase in bituminous coal production for the year of 1955 was roughly 2000 over 1954. "The national increase for the first two months of 1956 over the same period of 1955 is approximately 2100. Colorado's production is running around 1000 over the comparable period of last year, and the 5 states represented by our Institute came up with a nice increase in 1955 over 1954 of 1000. "Figures on the increase so, far in 1956 for this group of states are not readily available, but I fully believe that. our industry locally, as well as nationally, is now starting out on a steady rise despite the fanfare of nuclear energy and its more glamorous competitor, solar energy. Many authorities tell us that real competition from these sources is a long way off and that the atomic energy program will consume far more coal than is displaced by nuclear power. "I do not mean to infer that we coal people are out of the woods by a long way' so far as holding and regaining markets, for our coal. The captive operators, which are well represented here, have not lost their market for coking coal, since coke is still a necessary

Jan 1, 1956