# Appendix — United States v. General Dynamics Corp. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0099%3A07 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1974 - **Citation:** 415 U.S. 486 ## Text - eR Sas SY Ces Na ane OB PEON HET SIGE INL RI. SINE a ms % "> U Sr. NITED STATES OF AMERICA, ‘ Year ELECTRIC COAL COMPANIES, and FREEMAN ON APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS Supreme Court of the United States OctToBER TERM, 1973 No. 72-402 UNITED STATES OF AMERICA, Appellant Vi GENERAL DYNAMICS CORPORATION, THE UNITED ELEcTRIc CoAL COMPANIES, and FREEMAN CoAL MINING CORPORATION ON APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS INDEX Government Exhibits: Gx + en et Sorat eee 1 Gx 2 seed Boer Gone Sree ee 1961 GX 38— Annual Report of General Dynamics Corporation 1 8 1962 5 GX 4— Annual Report of General Dynamics Corporation Gx 5 Annal Report of Generai Dynamics Corporation : GX 6— Annual Report of General Dynamics Corporation Gx SS DX 170— Article entitled “Alberta Agency Backs Northern Natural On Bid To Export Gas To U.S. Midwest,” The Wall Street Journal, December 17, 1969 ____. DX 171— Article entitled “Consumers Power Announces Plans For Atomic Plant—Dow Chemical Will Be Chief Customer Of New Facility; Cost Put At $267 Million—Completion Is Slated In 1975,” The Wall Street Journal, December 15, 1967 ___. DX 172— Article entitled “Jersey Standard Joins List Of To Make Nuclear Fuel—Subsidiary To see: nancial ee asides a Phe ok search Assigned To Battelle Institute,” The Wall Street Journal, March 20, 1969 DX 173— Article entitled “In 1970: 23 Utilities Will Ask Bids On 29 Nuclear Units,” Nucleonics Week, January 15, 1970 DX 174— Article entitled “The Anti-Atom Nuts,” Chicago Tribune, January 20, 1970. DX 175— Article entitled “Consumers Power Announces Plans For New Plant—Pumped Storage Facility Set For 1973: Detroit Edison To Share Cost And Output—Outlay To Total $186 Million,” The Wall Street Journal, November 28, 1967 INDEX Defense Exhibits :—Continued DX 176— Article entitled “FPC Aide Again Approves Con Edison Bid To Build Power Project; Protests 1ikely,” ‘The Wall Street Journal, August 7, Dx 177— Article entitled “TVA Plans To Start $155 Million Project At Raccoon Mountain—Plan Will Include 4 Reversible Pump-Turbine Units With Total Ca- pacity Of 1.4 Million Kilowatts,” The Wall Street Journal, January 19, 1970. DX 178— Article entitled “Geophysics,” Time Magazine, July 26, 1968 DX 179— Article entitled “Earth’s Own Power Source,” Chicago Daily News, January 8 ere DX 181— Excerpt from transcript of Hearings before the Joint Committee on Atomic Energy, 99th Con- Necessity.” DX 182— Article entitled “New England Affiliation Slated —Utiilty Concerns Plan Affiliation,” New York Times, June 12, 1968. DX 183— Article entitled “Boards of Iowa P&L And Iowa- Illinois G&E Approve Merger Plan—New Entity, Towa Energy Corp., Plans To Retire The 2 Utili- ties’ Outstanding Preferred Shares,” The Wall Street Journal, July 22, 1969 DX 184— Article entitled “Ayrshire Collieries Asks Bids of 5 Firms—Coal Concern Invites Offers To Pur- chase Or Merge With It; Replies Expected Next Month,” The Wall Street Journal, November 27, 1968 DX 185— Article entitled “Ashland Oil Plans To Buy Or Lease Ayrshire Assets—Boards Vote Proposal That Includes The Sale Of Coal Royalties To Third Firm—Pact Involves $125 Million,” The Wall Street Journal, January 22, 1969 DX 186— Article entitled Pressed say ae Sign Merger Accord—Acqu Producer By Metals Firm Valued At Minimum Of $626 Million—Boards And Holders To Vote,” The Wall Street Journal, April 24, 1969 1158 1159 1160 1161 1162 1163 1164 1165 1166 1167 1168 a, Today, More and More Apartment Building Own- ers Are Turning To Gas Heat. Things Stay Cleaner Inside And Out,” Chicago Sun Times, May 16, 1967 DX 188— Advertisement entitled “1977 The Year Our City Died.” Philadelphia Inquirer, December 4, 1967_ DX 189— Advertisement entitled “You Can Heat 2% Houses With Modern Oil For What It Costs To Heat 1 House With Electricity!” DX 190— Advertisement entitled “We're Helping Main Street Switch To Nuclear Power.” DX 191— Advertisement entitled “This Pollution Was Caused By Burning Money. How Much Of It Was Yours?” Fortune, March 1, 1968 DX 192— Advertisement entitled “What's Gas Energy Doing To Make Industry Nice To Be Near?” American Gas Association, Inc. DX 193— Advertisement entitled “How Nuclear Science pom ee fo American DX 195— Advertisement entitled “Who Offers You 24-Hour Plant Site Location Service On The 60-Mile IIli- .¢, nois Shore? Peoples Gas, Of Course.” The Peoples Gas Light And Coke Company And North Shore Gas Company For Complete Chicagoland Plant Site Informa- tion,” The Peoples Gas Light And Coke Company And North Shore Gas Company... >>> DX 197— Advertisement entitled “The Perfect Salt Substi- tute,” American Natural Gas Company DX 198— Advertisement entitled “St. Louis’ Tallest Office That Saves With Natural Gas,” American Gas Association, Inc. DX 200— Advertisement entitled “Natural Gas Energy 1169 1170 1171 1172 1173 1174 1175 1176 1177 1178 1179 1180 1181 1182 INDEX Defense Exhibits :—Continued DX 201— Advertisement “What Do You Call It? No Matter What You Call It There’s A Lot More Coming From Gas There's A Produce Electricty, Cooling and Heating.” Amer- ica Gas Association, Inc. DX 204— Advertisement entitled Buy All Year Gas Energy For Heating, Cooling And Electric Boe pnd Saves $1,000 2 Month.” American 1184 1187 1188 1189 1190 xvi 3 INDEX Defense Exhibits :—Continued DX 213— Advertisement entitled “Texas Gas Invites You To The Wireless House.” DX 214— Advertisement entitled “Here’s The Story Of The Gas Fuel Cell. It’s Electrifying.” American Gas Association, Inc. DX 215— “Nuclear Steam-Generation of Electricity: Its Implication for the Future of Coal Transport by Railway and Water,” by John C. Spychalski, JCC Practitioners’ Journal, (July-August, 1967) __. DX 216— “The Story of Coal,” The Petroleum Situation (October 27, 1969 and November 28, 1969) DX 218— Chart entitled “The Prime Interest Rate, 1928- 1968,” Chicago Daily News, December 18, 1968 _ DX 219— Letter dated March 9, 1970 from V. H. Clark, Secretary- , Electric Energy, Inc., to Reuben L. Hedlund _ DX 220— Letter dated June 29, 1942 from Frank F. Kolbe to B. L. Slack DX 221— Letter dated July 23, 1954 from Frank F. Kolbe to Herman G. Schenck DX 222— Letter dated June 11, 1956 from Frank F. Kolbe to Nye F. Morehouse DX 223— Brochure entitled “Taum Sauk, Union Electric’s Pumped—Storage Hydro Plant.” _ DX 224— Press release, University of Chicago, January 19, 1970 DX 225— Letter dated May 25, 1960 from Ward B. Cham- berlin, Jr., Office of Chief Counsel, General Dy- namics Corporation to Robert A. Bicks, Acting .. Assistant Attorney General, Antitrust Division, Department of Justice and exhibit C thereto. DX-227— November 1, 1968 Memorandum from R. H. In- man to R. J. Hepburn re Freeman analysis of Kerr Mine DX 228— Excerpts from the Minutes of the Board of Di- rectors of The United Electric Coal Companies the poena Questionnaire for the Freeman Coal Mining Corporation DX 230— April 18, 1970 letter from Mr. Allen Van Wyck, Chairman of the Board of Illinois Power Company, to Donald G. Kempf, Jr. _ DX 231— April 14, 1970 letter from K. E. Bowen, President of Central Illinois Public Service Company, to Donald G. Kempf, Jr. DX 282— Brochure entitled “Low Cost Electric Power and Dependability . . . Through MAPP”... ==» DX 233— Brochure entitled “Mid-America Interpoo] Net- work—MAIN” xviii INDEX Deposition Exhibits: Abrahamson Deposition Exhibit 1—Front Cover of 1967 Annual Report of Wisconsin Power & Light Company___ Abrahamson Deposition Exhibit 1A—Back page of 1967 Annual Report of Wisconsin Power & Light Company__ Beck Deposition Exhibit 1—Letter to Antitrust Division, Department of Justice, Chicago, Illinois, from C. V. Beck dated November 14, 1968 Brazzale Deposition Exhibit 1—Document entitled “Heat- ing Fuel Economic Analysis” for the Federal Office Building and United States Courthouse, Chicago, Illinois Burton Deposition Exhibit 1—Document entitled “Solicita- tion, Offer, and Award Contract GS-05S-4945” issued August 1, 1967 Camicia Deposition Exhibit 1—Keystone’s Map of the Coal Fields of the United States _ Gallagher Deposition Exhibit 3—Mineral Industry Surveys, Bituminous Coal and Lignite Distribution, Calendar Year 1967 Griswold Deposition it 3—Report of the Secretary of Health, Education, aad Welfare to the Congress of the United States enti “Air Pollution by Federal Facili- ties” and dated January 1968 Griswold Deposition Exhibit 4—Second Report of the Secre- tary of Health, Education, and Welfare to the United States Congress entitled “Air Pollution Abatement by Federal Facilities” and dated January 1969... = Griswold Deposition Exhibit 5—Document entitled “Oper- ating Experience with Wet-Dolomite Scrubbing” by J. F. McLaughlin, Executive Assistant, Union Electric Co., St. Louis, Missouri, and J. Jonakin, Products Man- ager, Air Pollution Control Systems, Combustion Engi- neering, Inc., Windsor, Connecticut, presented at the Air Pollution Control Association Annual] Meeting in New York City on June 22-26, 1969 Jensen Deposition Exhibit 12—Memorandum from Burl C. Jensen to Mr. R. H. Inman dated June 7, 1965 _.. ____. Jensen Deposition Exhibit 18—Memorandum from D. H. Emling and B. C. Jensen to Mr. R. H. Inman dated June 7, 1966 Kolbe Deposition Exhibit 2—Annual Report of The United Electric Coal Companies 1956 Kolbe Deposition Exhibit 4—Annual Report of The United Electric Coal Companies 1958 Kolbe Deposition Exhibit 7—Annual Report of The United Electric Coal Companies 1961 Kolbe Deposition Exhibit 12—Letter to Mr. W. B. Hillery, unsigned, by the President dated February 27, 1957 __ Page 1409 1410 1411 1412 1413 1415 1416 1456 1470 1502 1519 1521 1526 1530 1582 1533 INDEX Deposition Exhibits :—Continued man to Mr. R. J. Hepburn dated May 10, 1961. Kolbe Deposition Exhibit 42—Annual Report of The United Kolbe Deposition Exhibit 51—Annual Report of The United Electric Coal Companies 1948 Kolbe Deposition Exhibit 57—Annual Report of The United Electric Coal Companies 1954 Kolbe Deposition Exhibit 59—Paul Weir Company Valuation of Physical Assets of UEC as of December 31, 1959. __ Kolbe Deposition Exhibit 60—Document entitled “Regarding Need For Additional Stripping Equipment at Fidelity Mine” dated June 17, 1966 and signed by J. M. Morris. Kolbe Deposition Exhibit A—Comparison between Truax- Traer Coal Company and The United Electric Coal Com- panies Company, January, 1956” of Theron G. Gerow, Mining Consultant and Engineer Kolbe Deposition Exhibit L—Letter dated September 12, 1960 from J. M. Morris to Mr. Frank Nugent Kolbe Deposition Exhibit N—Memorandum to Mr. R. J. Hepburn from T. H. Latimer dated October 3, 1955 No. 2,825,064, dated July 27, 1948, entitled “Explosive Composition, Robert W. Lawrence, Wilmington, Dela- ware, assignor to Hercules Powder Company, Wilming- ton, Delaware, a corporation of Delaware” acted cabana Kolbe Deposition Exhibit T—Letter from Mr. Keane, _ Assistant General Manager of Hercules ‘owder Com- pany, to The United Electric Coal Companies dated June 27, 1956 Kolbe Deposition Exhibit W-1—Letter from Frank Kolbe to Harry LaViers dated February 25, 1958 1571 1587 1628 1629 1681 1634 1639 burn from “President” dated December 8, 1957 Heine Depouttion Exhibit X-1—Latter from RJ Hepburn to Frank Kolbe dated November 29, 1957 __ Be Kolbe Exhibit X-2—Memorandum from T. H Kurtz Deposition Exhibit 9—Bituminous Coal Facts 1966. 1656 Kurtz Deposition Exhibit 10—Bituminous Coal Facts 1968. 1657 25—Memorandum from T. H. Latimer to Mr. R. J. Hepburn dated September 25, 1964 1662 Latimer Deposition Exhibit 88—Memorandum from T. H. Latimer to Mr. R. H. Inman dated July 19, 1966... 1664 Latimer Deposition Exhibit 48—Memorandum from T. H. Latimer to Mr. R. J. Hepburn dated February 10, 1961. 1665 Exhibit 1—General Dynamics Proxy 17, 1959 from R. J. Hepburn to Mr. J. M. Morris .... 1678 Morris Deposition Exhibit 4—Letter from Mr. John M. Morris to Mr. Frank Nugent dated January 10, 1966... 1680 Morris Deposition Exhibit 5—Letter from J. M. Morris to Mr. Frank Nugent dated March 14, 1966 ..... 1682 Morris Deposition Exhibit 14—Letter dated May 3, 1965 from J. M. Morris to Mr. Frank Nugent _...........—s-—:« 1683 Morris Deposition Exhibit 31—Memorandum from R. J. Hep- burn to Mr. J. M. Morris dated January 24,1961... _ 1686 orris to Mr. T. burn to Mr. J. M. Morris dated July 17,1962. —»-.1689 Tarzy to Mr J. M. Morris dated February 14, 1961. Morris Exhibit 47—Letter from T. H. Latimer to Mr. G. I. dated November 20, 1957 - to Mr Jebn Morn Sd hc a aie au gent Morris 59—Letter from G. H. Utterback to Mr. Robert S. Overbeck dated November OT ictiniat Morris Deposition Exhibit 60—Letter from Mr. RS. beck to Mr. G. H. Utterback dated December 18, 1962 ___ and Alumin Company of America dated May 8, 1965___ Morris Deposition Exhibit 62 Letter dated Septestoy if for the effective period of the date of award through June 30, 1968 Coal 1959 pete Nugent Deposition Exhibit 2—Financial Freeman Coal Corporation; Year Ended December $1, 1960 Nugent Deposition Exhibit 5—Financial Freeman Coal Mining Corporation; Year Ended December 81, 1963 __ Nugent Deposition Exhibit Freeman . 1718 1714 1715 . 1741 1744 1747 1750 1753 1756 INDEX Deposition Exhibits :—Continued Nugent Deposition Exhiibt 7—Financial : Freeman eet oe December 31, Nugent Deposition Exhibit 8—Financial Reports: Freeman Coal Mining Corporation; Year Ended December 31, 1966 Nugent Deposition Exhibit 9—Financial Reports: Freeman ee et eee Year Ended December 31, Nugent Deposition Exhibit 11—Annual Report of the Chi- oR ag apace desea wetter: gm Sieetinegd ear Nugent Deposition Exhibit 16—Advertisement of Freeman Coal Mining Corporation in 1967 Keystone Coal Buyers Nugent cong Exhibit 17—Advertisement of antag Electric Coal Companies in the 1967 Keystone Coal Buyers Manual Nugent Deposition Exhibit 19—Advertisement of The United Electric Coal Companies in the 1968 Keystone Coal Buyers Manual Nugent reg ey Exhibit 20—Advertisement of The United Electric Coal Companies in February 1968 issue of The Black Diamond Nugent Deposition Exhibit 22—Letter dated February 13, 1968 from Reuben L. Hedlund to John T. Cusack re Dividends Paid to MSC, Freeman, GD on the Stock of UEC, January 1, 1959 to December 27, 1967_...___._ Nugent tion Exhibit 29—Annual Report of The United Coal Companies 1964 Nugent Deposition Exhibit 35—Invitation for Tenders of Common Stock of The United Electric Coal Companies by General Dynamics Corporation dated October 5, 1966_ Nugent Deposition Exhibit 88—Map entitled “Shipping Coal Mines In Illinois” prepared by Jack A. Simon, State of Illinois, Department of Registration and Education, State Geological Survey, dated January 1, 1966 _.._._. Nugent Deposition Exhibit 39—Letter from Tom Tarzy to Frank Nugent dated December 11, 1964 and Chart Show- — Midwestern Coal Consumption by Utility Plants, Nogsat Depstion, Eehibit «Minutes of The United Electric Coal Companies Board of Directors Meeting held October 28, 1960 re Capital Appropriation for UEC. Nugent Deposition Exhibit A—Letter from Frank Kolbe to Henry Crown dated October 9, 1956 1774 1776 1786 1793 1794 1796 1797 INDEX Deposition Exhibits :—Continued Pedersen Deposition Exhibit 5—United Electric Coal Com- panies Computation of Provision for Federal Income Taxes, Month of October 1966 and Ten Months Ended October 31, 1966 Redard Deposition Exhibit 1—Keystone Steel and Wire Com- ae ne te Eepietaass We Sustioe dated April 26, 1 ot Simon Deposition Exhibit 1—Simon, J.A., An Evaluation of Illinois Coal Reserve Estimates, 1968 1847 1381 * WEST CENTRAL REGiGN POWER SURYEY 1970-1999 se y pene A REPORT to the FEDERAL PCWER COMATISSICN Prepared by THE WEST CENTRAL REGIONAL ADVISORY CCRIMITTEE The West Central Region comprises about one-fifth of the conterminous United States and includes about 14% of the population. The region is outlined on the map, Figure 1, below. The region extends from Lake Michigan and the Illinois- Indiana state line on the east to an irregular line through eastern Montana, Wyoming and western Nebraska. In the north-south direction, the area extends from the Canadian border to an irregular mid-continent line including most of Nebraska, northern Missouri and all of Illinois. The West Central Region corresponds to PPC power supply ereas 13, 14, 15, 16, 17 (excluding the Kansas City area), 26, 27, 28 and 40. The principal load centers are region, and are concentrated in Milwaukee, Minneapolis-st. Paul, and St. Louis. The non-coincident peak load for 1965 in the was 24,290 megawatts and the projection 1970, 70,610 megawatts for 1980, and 13 1383 detailed in the following tabulation. 1990 of about five and one-half times anticipated population growth of 40 used per person is expected to increase from to 18,500 kwhr in 1990. Pigure 2 LOAD GROWTH IN THE WEST CENTRAL REGION (MEGAWATTS ) percent. located in the eastern half of the the metropolitan areas of Omaha, Des Moines, Quad Cities ion of the region is an area of responding low load requirements with West Central Region S are 35,930 megawatts for 1,680 megawatts for 1990 as This indicates a load in the 1965 load compared to an The total energy 4,800 kwhr in 1965 1965 40 (Excl .EEInc) 40(EEInc only) Total (Non- 3, 344 (w) 6,733 (s) 2,943(s) 2, 984 (Ww) 2,471 (s) 2,529(s) — 565 (“) 24,290 coincidental) Total (Non- 23,920 coincidental summer season) The task force based th independent judgments o forecast for the region as a whol 4,660 (w) 10,070 (s) 4,530(s) 4,280(s) 3,730(s) 3,835 (s) 735 (w) 35,930 34,830 8,510(s) 19,810(s) 9,720(s) 9,210(s) 7,160(S) 1,820 (w) 1,900 (w) 4,390(s) 7,355(S) —233 (5) 70,610 69,780 3,680 8,070 13,255 131,680 130,240 (S) denotes summer peak (W) denotes winter peak . ese load projections on a £ the util ities in the region. e is higher than that appearing in pooling of the This current 1384 the 1964 National Power Survey. As an example, the 1980 forecast of 70,616 mw compares with the previous forecast of 61,050 mw, an increase of about 15%. The principal reason for this increase is the continued rapid growth in the economy and growth in utility sales and peak loads during the period subsequent to the 1964 National Power Survey effort. Substantial fossil fuel resources are located within the region, with approximately 370 billion tons of recoverable coal reserves believed to exist. Additionally, a recent report indicated additional reserves could amount to 225 billion tons of recover- able coal reserves in unmapped and unexplored areas. Although the bituminous coal resources have made a considerable contribu- tion to the supply of electric energy to date, the sub-bituminous coal supply in Montana and Wyoming and the lignite coal reserves in the Dakotas and Montana are receiving new attention with the advent of unit-train transportation and improved burning tech- nology. As a matter of interest, one county in North Dakota contains 71 billion tons of lignite coal. This is the largest tonnage for coal bearing counties in the nation. The natural gas reserves in the region comprise less than 1% of the total reserves in the United States. The crude oil and natural gas liquid reserves approximate 2% of the total liquid hydro carbon reserves in the United States. The fossil fuel survey indicated that the average price of coal f.0.b. mine has increased about 10% for coal obtained from Illinois, the highest producing coal area in the region, during the period 1961-1966. Rail transportation has predominated in the movement of coal in this region, and within recent years the cost of coal transported by rail has been reduced substantially on selected*movements of coal shipped by unit train. During 1966 about 22% of coal for the region was shipped by unit train, 27% by rail-barge, and 11% by rail-lake. Large investor-owned utilities are the principal suppliers of electric energy to the major metropolitan centers in the eastern portion of the region. Rural electric cooperatives are well established throughout the entire region and the generation-trans- mission type (G & T) cooperatives are functioning in Iowa, Minnesota, North Dakota, South Dakota and Wisconsin. Public agencies are the principal suppliers of electric energy in Nebraska. The largest numbers of municipal systems in the region are found in PSA 17 (188), PSA 28 (138), ana PSA 16 (110). Nene. wre 1385 In the West Central Region there are 85 investor-owned systems, 261 cooperatives, two Federally-owned systems, and 701 publicly owned systems, comprised mainly of municipal systems and public power districts. Investor-owned companies serve 83.8 percent of the energy requirements in the region, the cooperatives 2.6 percent and the public agencies (other than Federal) 6.9 percent. The Federal Government generates 6.7 percent of the electric energy in the region, its output being sold principally to municipalities, public power districts and cooperatives. In 1965 about 38 percent of all the power generated by G & T cooperatives in the United. States was produced in the West Central Region with cooperatives in PSA 16 alone accounting for about one-half of this amount. The five largest of the 85 investor-owned electric systems supply nearly 60 percent of the electric loads in the region. Common- wealth Edison Company of Chicago alone accounts for about 27 per- cent and Union Electric Company of St Louis for about 11 percent of the regional load. The largest municipal system in the region is Springfield, Illinois, which had a peak load in 1967 of 170 megawatts or about one-half percent of the total regional load. Public power districts are the principal suppliers of electric power in Nebraska. Many towns in the state are served by municipal systems. Some of the municipalities provide their own generation but most obtain their power from public power districts which carry out the principal generation and transmission functions in the state. Public power districts and cooperatives in Nebraska are also the principal agencies for the distribution of power. There are no investor-owned utilities providing electric service in Nebraska. The Bureau of Reclamation is the marketing agency for hydro- electric power from Federal projects located in the Missouri River Basin. The power is marketed largely to customers having prefer- ence under Federal Law, i.e., municipal systems, public power , districts and cooperatives, over a transmission network which generally has a voltage of 230 kilovolts. Numerous wheeling arrangements have been made by the Bureau with utilities in the area for delivery cf power’to such preference customers. There is a total of 1,049 electric systems serving the region. With the exception of 71 isolated systems comprising .57% of the total service, all the systems are interconnected and operate in parallel with the vast majority of electric utilities in the United States. By 1970, the interconnecting transmission system will be overlaid with a 345 kv transmission system in the eastern S-4 1386 half of the region and an overlaying EHV system in the western half will have been begun. The pattern of transmission develop- ment anticipates that the 345 kv system in the eastern half will be substantially augmented during the 1970-1980 period and a 765 kv system will have been started. In the western half of the region the transition to a 500 kv system will be initiated. By 1990, several east to west 765 kv transmission lines are antici- pated with their extension through western Minnesota, the Dakotas and the state of Nebraska at 500 kv to interconnect with the western systems. Consideration of probable increasing fossil fuel costs, increasing concern for air pollution, fossil fuel transportation difficulties, and the anticipation of relative decreasing nuclear fuel costs with the development of fast breeder reactors have resulted in a considerable emphasis on nuclear generating plants. Although about 90% of the electric energy produced in the region is. presently supplied by fossil-fuel generation, by 1990 nuclear generating capacity is anticipated to comprise 57% of the region's capacity. Nuclear generation is expected to supply nearly 70% of the region's energy requirements by that time. While the quantity of coal burned annually is indicated to increase from 51 million tons in 1966 to 69 million tons in 1975, the regional use of coal apparently will remain relatively constant at about 65 million tons for the remainder of the study period. Generating capacity of 79,832 megawatts is projected by 1980 to _ supply a non-coincident summer peak of 69,780 mw with a reserve of 15.6%. By 1990, generating capacity of 151,041 megawatts is projected to cover a non-coincident summer peak of \W30,240 mega- watts reflecting a reserve of 16.6%. An importation of 800 mw of hydro pOwer from Canada is included in each of these reserve calculations. Additional reserve of an undetermined amount exists because of the diversity of load between utilities within the season. About half of the 1990 capacity is shown to be in units of 800 megawatts or larger. Generator unit size up to 2000 mega- watts and total plant size up to 4000 megawatts are included. There are six power pools within the region and three major regional coordinating groups. These organizations permit the coordination of planning of transmission and generation and the coordination of operating these facilities. Such coordination is made possible through the direct work of committees and task forces comprised of representatives of individual utilities on the pool level, and of representatives of pools and areas on the regional level. Two offices have been established to provide coordination of hour-to-hour and day-to day operations. S-5 1387 Additionally, liaison established with contiguous regions pro- vides continuity in the development of interconnections at the boundaries of these organizations and in the operating of mutually~affected facilities. As further coordination develops in increasing depth, it is anticipated that a single regional coordinating organization will evolve with the major planning and operating responsibilities being carried on by five area-wide groups. The interworking between these five groups then will be coordinated within the one principal organization. S-6 1388 INVENTORY OF FOSSIL FUEL RESOURCES INTRODUCTION The purpose of this report is to update the 1964 National Power Survey, Vol. II, Advisory Committee Report No. 21 on Fuels for Electric Generation, prepared by the Fuels Special Technical Committee. In updating Report No. 21 we have not attempted to change or modify the extensive and authoritative background material in that report, which represents the best advance thinking on industry fuel problems by some of its foremost members. Instead we have supplemented that report where changes have occurred in the price of fuel, the cost of transportation and methods of transport. The West Central Region fossil fuel reserves are reported in detail by individual counties in each state. The reserves are tabulated by class of reserves as to whether they are “measured,” “indicated” or “inferred” and by thickness of the coal beds. Measured reserves are those for which tonnage was computed from direct measurements. Indicated reserves are those for which tonnage was computed partly from specific measurements and partly from responsible assumptions based on available data and geologic evidence. Inferred reserves are those for which quantitative estimates are based on a broad knowledge of the character of the bed or the cegion, but for which there are few, if any, actual measurements. This detailed information on coal reserves should be useful to system planners in selecting future sites for large thermal power plants. Other task force committees have prepared reports on load proj- ections, types of generation, air pollution and nuclear power; therefore, this report does not include information on those sub- jects. If the reader desires information on productive capacity of the coal industry, future projected prices of various fuels or other related information regarding fuels, it is suggested he con- sult the report of Puel Resources, Requirements and Costs for Electric Generation in the Eastern United States which was pre- pared by a committee that included representatives from the Federal Power Commission, the Bureau of Mines and the Office of Oil and Gas, Department of the Interior. II-1 ‘1389 : SUMMARY During the period 1970-1990, electric generation will be dependent upon five basic forms of energy -- coal, gas, oil, hydro, and nuclear. This report is concerned primarily with fossil fuels. The availability of approximately 370 billion tons of recoverable : Coal reserves in the West Central Region is more than sufficient to meet the electric utilities' requirements in this region through the year 2000. A recent report indicates additional reserves in this region could amount to 225 billion tons of recoverable coal reserves in unmapped and unexplored areas.! Coal, however, will be faced with continuing pressures from other forms of energy, and based on present trends the most significamt competition will be from nuclear energy. Mechanization and handling of coal at the mine will continue to improve. Some of the new developments in underground mining in recent years have been the use of a mobile bridge conveyor which has increased the Productivity from a continuous miner substan- tially, the underground push button miner, the installation of long wall mining equipment, and the application of computer simu- ‘In determining the type of fuel to be used for electric genera- tion a number of factors have to be reviewed and evaluated, each of which will have a bearing on total fuel costs for any one location. The cost of transportation, anti-air pollution devices, lity and price of fuels, the final determination in selecting a fuel or fuels for a particular plant must be based on the specific facts pertinent to that plant and its location. : A fossil fuel survey, questionnaire was sent to twenty-six electric utilities Which consume approximately 90 percent of the coal used for electric generation in the West Central Region. The questionnaire inquired as to producing district, tonnage burned, £.0.b. mine price, average BTU per lb. received, cents per million BTU f.0.b. mine, methods of transportation used, freight rate, haulage distance, and tonnage per shipment. 5 This survey indicated that in the period 1961-66 the average price of coal f.0.b. mine has increased from 15.03 to 16.57 cents per million BTU or an increase of 10.18 percent on the coal obtained ! 1. Averitt, Paul, 1968 U.S. Geological Survey. II-2 1390 in District 10. (36 million tons of 46 millions tons reported for the region).. The average annual increase in the cost of District 10 coal in the five year period 1961-1966 amounts to 1.9 percent per year. Due to the less significant tonnages reported in relationship to tonnage produced, a comparison of the price in- creases for coal obtained from other districts is not shown. Rail transportation in the past has predominated in the movement of coal in this region, and within recent years the cost of coal transported by rail has been reduced substantially on selected movements of coal shipped by unit train. Based on the 46 million tons reported in the survey for the year 1966, approximately 10 million tons, or 21.8 percent, were shipped by unit train, 12,200,000 tons, or 26.6 percent, were shipped by rail-barge, and 5,280,000 tons, or 11.5 percent, were shipped by rail-lake. The amount of coal shipped by conveyor and captive shuttle train during the period 1970-1975 will increase by 11,000,000 tons ver- sus a 7,000,000 ton increase for unit train shipments. The average rail freight cost in the West Central Region for coal shipments in 1966 amounted to $1.97 per ton on a tonnage of 23,500,000 tons, or approximately 46 percent of the coal consumed in this region. The unit train freight rates reported in the survey when compared on a basis which considers railroad owner- ship of all equipment indicates that the mills per ton mile range from 10.3 mills per ton mile for an 85 mile haul to 7.2 mills for a 138 mile haul and down to 5.0 mills for a 355 mile haul. Past projections indicated that unit train freight rates could level out at a cost of 4 mills per ton mile for hauls between 350 miles and 600 miles.? However, no hauls of 400 to 500 miles at 4 mills were reported. The inability of the utilities to obtain a low@r cost than 5 mills per ton mile is partially sub- stantiated by the fact that as of the present date between now and 1975 approximately 10,000 megawatts of nuclear capacity is planned or considered for installation in the West Central Region. In the five year period 1961-1966 the consumption of gas for thermal electric generation increased from 0.223 to 0.260 trillion. cubic feet or at an average annual rate of 3.11 percent compared to a 7.73 percent average annual increase in coal consumption in the same period. The average cost of gas for the region in the same period increased from 25 to 25.3 cents per million BTU or by 1.2 percent. Zz 2. 1964 National Power Survey, Vol.2, Advisory Report No. 21, Pg. 338 II-3 1391 | Table A, page II-5, indicates the electric generation by coal fired plants in the West Cehtral Region will increase from 124.8 billion Kwh in 1970 to 155.3 billion Kwh in 1990 and nuclear generation will increase from 17.5 billion Kwh to 489.1 billion Kwh in the same period. Table B, page II-5 indicates coal consumption will increase from 60.4 million tons in 1970 to 65.7 million tons in .1990. Table 1, page II-ll, lists the remaining coal reserves in the West Central Region by percent sulfur content and approximately 72.7 percent of the reserves in the region contain 1.0 percent or less sulfur. However, most of these low sulfur coal reserves are located in the States of Montana and North Dakota and most of the coal consumed in the region is obtained from the State of Illinois. Table 2, page II-12, indicates ‘the coal consumed for electric generation in the West Central Region in 1966 had an average sulfur content of 2.8 percent which is slightly more than the 2.3 percent average sulfur content of all coal consumed by the electric utilities in the United States. The growing demand for air pollution abatement regulations has contributed to a major shift from the use of coal for electric generation to nuclear energy. In the West Central Region in 1966 approximately 72 percent of the electric generation was produced in coal fired plants and 1 percent by nuclear plants. Present projections illustrate that by 1990 approximately 22 percent of the electric generation in the region will be produced in coal fired plants and 70 percent ‘by nuclear plants. The natural gas reserves in the West Central Region as of December 31, 1966 amounted to 1.33 trillion cubic feet or less than one percent of the total reserves in the United States. Based on the projected United States cumulative natural gas requirements for the period 1966 to 1990 of 680 trillion cubic feet the reported reserves of this region could supply only 0.20 percent of these requirements. The oil consumption in the West Central Region represented less “ than one percent of the total fuel consumption for the region. The crude oil and natural gas liquid reserves in the region amount to 0.813 billion barrels or approximately 2 percent of the total liquid hydrocarbon reserves in the United States. In the State of Illinois as of July 1, 1965, the latest revised estimates of coal remaining in the ground totaled 140,700 million II-4 emi@— = em — el — mt — —m.. i. mm i. mm lL mm. tL. —m -1L me (678 nw oe s me a we ua no eS “9 2 2.8 1 2 $4 nmr reece fi : Yalil i i . Fuel quantities tm eiliiens of tone of coal, barrele of off and MCT «f gas. 1893 tons in reserves, of which 63,900 million tons are classed as measured and indicated and 76,800 million tons as inferred, all of which is of bituminous rank. The reserves are well distri- buted over an area of 38,000 square miles or 67 percent of the State's area in 78 counties of the 102 counties in Illinois... The minimum thickness of coal considered in preparing this estimate was 28 inches, except for areas of strippable coal where an average thickness of 18 inches was used. Coal seams in Illinois are at depths ranging from a few feet to several hundred feet below the surface. Ages ago, the coal bearing formations were downfolded into a huge spoon-shaped basin centered in the southeastern part of the State. As a result, the beds minable by underground methods lie at the center of the basin while along the outer rim in a total of 40 counties, approx- imately 19,000 million tons of strippable coal lie near enough to the surface to be recovered by strip mining. Tonnage figures alone, however, cannot demonstrate the full importance of Illinois coal reserves. The thickness of the beds is also extremely important since this aspect has a bearing on mining methods and, therefore, Productivity. Most of the remain- ing coal reserves are in coal beds thick enough to permit effective mechanical mining. The estimated original coal reserves of Iowa total 7,236 million short tons, of which 3,500 million tons are classed as measured and indicated reserves and 3,735 million tons are classed as inferred. A total area of about 1,316,040 acres in 37 counties was included in the reserve calculations; an additional area of about 1,291,830 acres in 44 counties is indicated by the currently available information to be favorable for the presence of coal beds more than 14 inches thick. The total recorded coal produc- tion of Iowa through 1963 is about 356 million tons. Assuming that for each ton of coal produced another ton has been made unrecoverable, the remaining reserves of the State are about 6,524 million tons. Past estimates of the coal resources of Iowa were highly general- ized and were based solely on an assumed total area underlain by coal of potential economic interest and on an assumed average thickness of coal within that area. The estimate of Campbell and Parker (1909), the most frequently quoted, of 29,160 million tons included coal 14 inches or more thick in an area of 12,560 square miles. The present detailed estimate by Landis (1965) is smaller than the older generalized estimates and covers a much smaller area. This estimate of Iowa coal reserves is on a bed-by-bed II-6 1394 original reserve basis. The ratio is about one-fourth as ‘much reserves in about one-sixth as much area. About one-third of Missouri is underlain by bituminous coal- bearing strata, and coal has been mined in 55 of the 63 counties in which it occurs. Coal deposits occur in an area of some 24,000 square miles extending northeastward across the State from Jasper County to Clark County. The estimated original coal reserves of Missouri total 23,977 million tons. In the years since the Hinds (1912) estimate of 79,393 million tons was made, stratigraphic studies have indicated that many of his correlations of coal beds were in error and that the persis- tence in thickness which he assumed cannot be demonstrated in many localities. Coal beds thin and thicken from one area to another and in many instances in very short distances. An addi- tional factor of considerable importance in the area north of the Missouri River is that glacial drift-occupies the position of coal beds in many places. Details of this relationship can be established only by drilling or mining but, in general, consider- able areas are affected. A re-evaluation of Missouri's original (before mining) coal resources was made by Searight (1966) on a county-by-county basis. Current information does not support the large resources indicated by Hinds, and these have consequently been adjusted downward. In some noe ca only 10 percent of the previous estimate has been reta » and others have been cut to as little as one percent of the earlier estimate. The total tonnage represented in the present estimate of 23,977 million tons is less than one-third that of 1912 estimate figures. The total cumulative tonnage mined in the period 1840 through 1967 has been approximately 313 million tons. The coal réfaining is, therefore, estimated to be approximately 23,335 million tons. The original coal reserves of Montana total 222,047 million tons as estimated by Combo and others (1949). This estimate includes 2,363 million tons of bituminous coal, 132,151 million tons of subbituminous coal, and 87,533 million tons of lignite. The reserves were estimated according to standard procedures of the U.S. Geological Survey with several minor exceptions as follows: for bituminous coal the thickness categories used were 14 to 24 inches, 24 to 36 inches, and more than 36 inches, instead of the standard categories of 14 to 28 inches, 28 to 42 inches, and more than 42 inches, which were established after the Montana work was underway. For subbituminous coal and lignite standard categories of 24 to 5 feet, 5 to 10 feet, and more than 10 feet were used. II-7 Pie ae -1395 The Montana coal fields cover 35 percent of the total area of the State. Reserves are present in 35 out of 56 counties, but are concentrated largely in the Fort Union region and the Powder River Basin in the eastern part of the State. Big Horn, Powder River, and Rosebud Counties alone contain more than half the total in the State. For the past several years considerable exploration has been conducted by mining and petroleum companies and currently (April 1967) revised estimates indicate the presence of deposits of strippable reserves totaling about 8 billion tons. The original lignite reserves of North Dakota, as estimated by Brant (1953), total 350,910 million tons of which 9,522 million ‘tons are classed as measured, 50,120 million tons as indicated, and 291,268 million tons as inferred. The reserves were estimated according to the standard procedures of the U.S. Geological Survey. All the lignite included in the estimate. is less than 1,200 feet below the surface and about 70 percent of the total reserves are less than 500 feet below the surface. The reserves are well distributed over an area of 28,000 square miles in 23 counties in the western half of the State. Of several counties with large reserves, Dunn County is conspicuous in containing 71 billion tons or about one-fifth of the State total. This is also the record reserve at for coal-bearing counties in the United States. The original lignite reserves of South Dakota, as estimated by D. M. Brown (1952), total 2,033 million tons, all of which is less than 1,000 feet below the surface. The reserves were esti- mated according to standard procedures of the U.S. Geological Survey. The lignite reserves are concentrated in six counties in the northwestern part of the State. Harding County contains nearly 84 percent of the estimated reserves, but most of past production has been obtained from Dewey and Perkins Counties. II-8 1396 INVENTORY OF FOSSIL FUEL RESOURCES During the period 1970-1990; electric generation will be depen- dent upon five basic forms of energy -- coal, gas, oil, hydro, and nuclear. This report is concerned primarily with fossil fuels. The availability of approximately 370 billion tons of recoverable coal reserves in the West Central Region as shown in Figure 1 and listed in Table 1 are more than sufficient to meet the electric utilities’ requirements through the year 2000. Coal, however, will be faced with continuing pressures from other forms of energy, and based on present trends the most significant competition will be from nuclear energy. In determining the type of fuel to be used for electric genera- tion a number of factors have to be reviewed and evaluated, each of which will have a bearing on total fuel costs for any one location. The cost of transportation, anti-air pollution devices, storing, handling and disposing of the fuel product are economic factors which can make a low cost fuel the most expensive fuel. Therefore, while a general picture can be drawn of the availability and price of fuels, the final determination in selecting a fuel or fuels for a particular plant must be based on the specific facts pertinent to that plant and its location. During the past twenty years the coal industry has contributed a great deal to the stability of fuel prices. Mechanization of the mines has enabled the industry to either reduce or at least main- tain within reasonable limits the price of its product, in spite of continuing increases of over-all price indexes. During the period 1970-1990 it is expected that there will be continuing improvement in the mechanization and handling of coal at the mine. Some of thenew developments in underground mining in recent years have been the use of a mobile bridge conveyor which has increased the productivity from a continuous miner substantially, the under- ground push-button miner, the installation of long wall mining equipment, and the application of computer simulation techniques. Although coal is available in sufficient quantities in the West Central Region to supply the entire energy requirements of the electric utilities in this region, competition will determine the extent to which coal will penetrate each market. Ii-s - 1897 temperature to 86°F. Cooling towers are included in the design of two large nuclear plants presently under construction in anti- cipation of state agency temperature limitations of 86°F. for mixed water or 5° over ambient. Capital costs for cooling facili- ties to date are estimated at $10,000,000 for plants totaling 2700 megawatts, One utility in the area is constructing a 20 megawatt plant utili- zing @ recently developed air cooled condenser. This plant is to be a prototype for larger plant installations now under considera- tion. Because this type of facility eliminates the need for large quantities of cooling water, it may provide greater freedom in the siting of moderate size generating facilities. In addition to state and local agencies, the Air Quality Act of 1967 introduces a new factor. The Secretary of Health, Education, and Welfare is to designate air quality regions and issue criteria and control technology documents. The governors of states involved will have approximately nine months to draw up standards acceptable to HEW and another six months to establish a method of control for the region. Additional research and development of control technology is being funded under the Air Quality Act, but to date the control strategies commercially available to the utilities are largely the use of Pprecipitators and high stacks. The concern of Wisconsin companies for proper and effective control of air and water pollution has been expressed by the formation of an active task force on air and water criteria. This task force, which is sponsored by the Wisconsin Utilities Association, has been working with the Wisconsin State Department of Natural Resources to provide the Department with data/on the onsin utilities. It is hoped that the results of these studies will provide the industry with knowledge that can be used to Properly assess the degree and consequence of water and air pollu- The problem of air pollution weighs heavily in the choosing of generation sites, the type of fuel used, the capital costs of equipment to maintain acceptable conditions, and ultimately on what the cost to the customer will be. The future will remain uncertain until air quality and emission standards are defined more clearly and equipment for reducing sulfur emissions is deve- loped and becomes available commercially. | Ge Se. III-6 1398 oer? COORDINATED PLANNING AND DEVELOPMENT I. Structure of the Industry Fifty-one interconnected systems currently generate approxi- mately 95% of the energy consumed through electric utility service in the West Central Region. Table I below provides 1967 data as to number and size of these major utilities in the various ownership segments of the industry. This group generally can be described as consisting of those systems providing virtually all of the high voltage system facilities in this region. Table I Non-Coinci- Energy Type of dental Peak Gen Cap Prod Qwnership Utilities Load (Mi) _ (M4) (1000 MyH) Investor-owned 25 22 954 26 032 118 566 Rural electric Gs? cooperatives 19 1 657 1 382 5 646 State 6 1 461 1 120 4 226 Pederal ~ jl} 746 2 048 9 692 51 26 818 30 582 138 130 1967 load and capacity data for the individual major utilities in each ownership segment are shown in Appendix A. In addition to these major utilities there are about 1000 other utility entities involved in generation and/or distri- bution of electric energy. These are identified as to type of ownership, size and general location in Appendix B. Iv-1 II. 13899 Trends in the Development of Coordination Mechanisms At present, nine coordinating organizations function within the region as follows: Wisconsin Public Service Corporation-Wisconsin Power and Light Company-Madison Gas and Electric Company Pool Wisconsin-Upper Michigan Systems Illinois-Missouri Pool Iowa Pool Mid-America Interpool Network Mid-Continent Area Power Planners Missouri Basin Systems Group Nebraska Public Power System Upper Mississippi Valley Power Pool Coordination areas of these organizations are shown in Figures 1-3. Appendix ¢ presents first a brief summary and then detailed information on each body and its structure, purposes, and activities. It' is emphasized that there are no particular discontinuities in the pattern of interconnections at the boundaries of these organizations. Numerous other interconnection agreements and inter-relations exist that Provide mechanisms for liaison and continuity in coordination across the region as demonstrated by the examples enumerated below: 1. MAIN and MAPP have overlapping membership with eight utilities being members of both of these organizations. This liaison arrangement is deemed particularly desirable for close co- ordination in planning and operation along the recently completed Twin Cities-Mi lwaukee-Chicago- St Louis-Twin Cities 345 kv loop. Operation of this loop and all other interconnecting trans- mission lines, and those otherwise mutually affected, is provided through established opera- ting committees, through system simulation Operating studies, and through continuous liaison between the respective coordination offices. The studies consist of current year Operating studies, transfer capacity studies, and extreme disturbance studies. The areas of coordinated planning are handled through the planning arms of each of the organizations. Much of the Planning is based upon Iv-2 the aggregate load and capability forecasted and includes not only consideration of new facilities s but also the future use of the interconnecting transmission facilities and power transactions to effect optimal use of generating equipment. 2. MAPP and MBSG liaison on projects of mutual interest is handled through the Intersystem Coordinating Committee. This committee was established by the respective organizations in 1965. Prior to the establishment of the MAPP Coordination Office and the associated Coordinating Committee, the Inter- system Committee organized an interim task force to review relay operating practices to assure that relaying of mutual interest would provide a relia- ble operation. Progress has been slow in the area .of joint planning of transmission and generation and the committee itself has recently proposed that its parent organizations reconsider its membership and better define its responsibilities in the interest of improving progress. 3. .All members of the Iowa Pool and UMVPP belong to the MAPP organization and have thereby broadened their capabilities in the traditional pooling activities of coordinated planning of generation and transmission, including power transactions, and coordinated operation of generation and transmission including short and long term maintenance scheduling, economy energy interchange, voltage profiles, auto- matic under-frequency load shedding, and dispatching procedures. This broadening comes about through the overview afforded in considerations. of the Planning Committee which is geographic in its representation and through participation in the Coordinating Com- mittee associated with the Coordination Office. 4. All members of the Wisconsin Power Group and Illinois- Missouri Pool belong to the MAIN organization. 5. MAPP-MAIN-UMVPP-Iowa Pool liaison, together with USBR participation in the MAPP Coordination Center, has resulted in development of an extensive tele- type communication system permitting broad area coordination on day to day operating matters. The area is presently served by three teletype Iv-3 Se 1401 systems, all of which employ rented telephone company facilities. Cost sharing varies in each of the three systems ranging from equal shares to formulas using both number and size of systems - involved, Teletype stations are located in the dispatching offices of the participating systems and the coordination centers. Use is limited to exchange of operating information and weather information. The present systems are: MAIN 15 terminals - 5 in Wisconsin, 4 in Illinois - 2 in Minnesota (MAPP & NSP), 2 in Missouri (UE & AEC), 1 in Little Rock, Arkansas (SCEC) 1 in Canton, Ohio (AEP ECAR) UMVPP. 10 terminals - 1 in North Dakota, 1 in South Dakota, 6 in Minnesota, 1 in Wisconsin, 1 in Iowa USBR 1 in South Dakota IOWA POOL 10 terminals - 2 in Minnesota (MAPP & NSP), 7 in Iowa, 1 in St Louis, Missouri (UE) The UMVPP and Iowa Pool systems will be replaced in April 1969 by one MAPP system containing 25 terminals. This will include the present terminals plus new terminals for other MAPP members and adjacent utili- ties. The system will be comprised of 2 terminals in North Dakota, 6 terminals in Minnesota, 2 in Wisconsin, 2 in South Dakota (including USBR), 8 in Iowa, 2 in Nebraska (OPPD and CPPD), and 3 in Missouri (UE, St Joseph L&P and KCP&L). The MAPP system will utilize 100 wpm teletypes under the contraql of an automatic polling device located in the MAPP Center. All transmission will be by punched tape except during emergencies when an emergency override will permit manual transmission. Cost sharing will be according to a formula intended to recognize size of systems, mileage between adja- ‘cent terminals, and benefits accruing equally re- gardless of size. ’ Iv-4 IIi. 1402 6. As planning of Specific facilities reaches a point in progress where the coordinating organi- zation is agreed on the basic function and design, the participating utilities are represented on a number of task forces having responsibility for design, contractual arrangements, and use. The Projections of as so Requirements The following discussi £ possible future organizational fifty-one systems identifiea in Section I as providing 95% of the electric service in the region. It is, of course, recognized that corporate consolidations will very likely reduce the number of separate entities in the future. How- ever, there is no basis for Predicting the specific patterns or timing such consolidations may follow other than a general reference to those already announced to be under study. By 1970, MAPP intends to increase the coordination among the various parts of the MAPP organization, including the Iowa Pool, the UMVPP, and its Nebraska members by developing a super-pool agreement. This consolidation will result in these five sub-regional systems remaining as workable co- ordinating entities within the West Central Region: Commonwealth Edison Company Eastern Wi8consin Utilities (including the Upper Peninsula) _ > Illinois-Missouri Pool (including Central Illinois Light Company) Mid-Continent Area Power Planners Missouri Basin Systems Group Each of these systems will exercise primary responsibility for planning and operation within their area, particularly with respect to economic matters. With regard to reliability-oriented coordination, MAIN would continue with its present inter-pool operation in the eastern part of the region. Reliability-oriented coordination for the western portion of the region is expected to be provided by the recently executed Mid-Continent Area Reliability Co- ordination Agreement either expanded to include MBSG members Iv-5 . eR me a ——_— _— 1403 or through liaison arrangements with a separate MBSG reliability group. Future patterns of generation and transmission developments prepared by the WCRAC contemplate 765 kv and 500 kv trans- mission lines across the region in the 1980's. These lines will provide capacity for meaningful power exchanges on a region-wide basis and also inc se the interdependency among systems, particularly with "respect to reliability. It is therefore proposed that a single West Central Reliability | organization be established by 1980. In view of the large number of systems involved, manageability considerations y dictate an interpool-type organization such as MAIN with the five above-identified area systems as members... The foregoing material relating to future coordination patterns has been presented at meetings of the MAIN, MAPP and MBSG organizations in an effort to solicit views of utilities not represented on the WCRAC. IV. Problems and Solutions Operation of an electric power system is a complex matter involving the consideration of innumerable electrical elements and many people. Taken as a whole, the configuration changes from season to season, from day to day, and from hour to hour. To operate all of the interconnected electrical systems within a region in a truly coordinated manner becomes a tremendously complex matter requiring knowledgeable people, the necessary equipment and communications for the required overview, and of equal importance a strong desire on the part of all of those. so engaged. That this coordination.can be accomplished, and must be accomplished, is fully appreciated and has been taken on as a challenge of considerable substance by the utilities in this region. It is recognized that the true strength of the operation is in the local knowledge of each area's needs and the resources available to supply these needs. The requirement then is for a coordinating effort which will supply the involvement neces- sary to do the job but which will not unnecessarily interfere in operations that can be adequately handled locally. Further- more, it cannot be expected that a coordinating effort can be arbitrarily overlaid on the existing operation. Instead a co- ordination evolution is required which will gradually develop the capability of the coordinating organization and, in turn, the confidence of the participating systems with a resultant Iv-6 ee - 1404 growing. willingness to accept the decisions and judgement of the coordinating personnel and to encourag® their efforts. Within the West Central Region there are variations in the nature of systems and load densities across the region pro- ducing differences in coordination problems and requirements. Por examplé, a relatively few systems along the eastern edge of the region (Eastern Wisconsin Utilities, Commonwealth Edison, and the Ill-Mo Pool) generate almost 60% of the region's requirements while serving 15% of its area. As a result, pooling and interconnection arrangements appropriate for this area are markedly different than those applicable to the large number of systems serving the remainder of the region. Many types of utilities are represented with varying characteristics including that of size and of financing within the major groupings. Because of the hour-to-hour vital need to have a reliable operation, the coordinated operation of these systems has proven to be an endeavor not significantly affected by this dissimilarity. In the area of planning. substantial strides have been made in coordinating planning of both generation and transmission. As previously noted, only MAPP and MBSG have yet to fully coordinate their efforts. This situation is recognized by both organizations and is under active consideration. - Interregional Coordination There are two formal arrangements for interregional coordina- tion identified as such. These are the liaison arrangement between MAIN and ECAR, and MAIN and MAPP membership in the National Electri¢™Reliability Council. Beyond these there are numerous bilateral interconnection agreements and other established channels for coordinated planning and operation with electric systems in adjacent regions. The USBR hac membership in both the Western Systems Coordina- tion Council (WSCC) and the MAPP Coordination Committee and MAPP operating representatives attend WSCC operating meetings. These arrangements, along with these inherent within the USBR, provide liaison with the west lying region. ™“ Some multi-system coordination activities involving other regions are: The MIIO Agreement among Commonwealth Edison and five major utilities in Indiana and Michigan, which, ; among other returns, resulted in system performance studies in ¢epth which included Commonwealth Edison Company as a participant and enveloped the eastern portion of this region. Iv-7 1405 The Twin Cities-Kansas City 345 kv Coordinating Agreement - among four MAPP members and Kansas City Power and Light Company and St Joseph Light and Power Company in the South Central Region, which provides for the exchange of power and energy with the aim of optimizing the utilization of generation and bettering reliability. And the East-West Tie Closure Task Force, which was formed for the express purpose of studying the feasibility of and the procedures for closing the Bureau of Reclamation ties between the eastern and western portions of its Missouri River Basin systen, and hence interconnecting the western region systems to the remainder of the U.S. interconnected systems. The Manitoba HyGro Electric Board, although not yet inter- connected with United States systems, participates in plan- ning activities through its membership in the MAPP organiza- tion. As a result, negotiations for the 1970 construction of a Winnipeg-Grand Porks 230 kv interconnecticn have now been completed and construction and operating contracts signed. This interconnection will have a capacity of about 200 mw although it is being initially regarded as having a nominal 100 mw capacity for purpose of scheduling power and energy. This interconnection will provide Manitoba Hydro with interconnected operation with the U.S. syetems, will make unnecessary the construction of thermal capacity, will - provide a market for future excess power and energy, and will provide a source of energy during dry years. For the U.S., & power supply will be provided which is diversified in the source of the power and has prompt availability. The seasonal load diversity will permit mutually advantageous seasonal power exchanges and the reliability on either side of the boundary will be improved from the improved diversity overall. > No unusual problems have been encountered in its planning even though the facility is being installed by such diverse interests as two investor-owned utilities and one G & T cooperative on the U.S. side, and by a Canadian Crown Corpora- tion on the Canada side. Peasibility studies for a second 230 kv interconnection between Manitoba and the Garrison, North Dakota area are scheduled to be undertaken jointly by Manitoba Hydro and a number of MAPP and MBSG members. MOTE: Boundaries indicate general areas and do not necessarily include all systems within an area. = Pigure 1 Iv-9 1410 SSS 1411 . 1724 RAILWAY EXCHANGE eLDG. ie Pe. coos > pfewren« wn cers "| ke* 35 t96e dy § BF Ls Izsty hk Lee nas fh, RN Ss le CONVEAT Two $0,002 #[MR BomeRS WHICH AKE STOKER FiRe> AT PResanT To Burn EITHER GAS OR ON. 2. IST A¥o,000 THEREMS@ 622 f/THERM, BALAWME @ S-2¢ - ADD OS¢/rHernM, Pur cnase Gis ADJUSTMENT AND -SH¥Jo CITY UTMITy TAx- 3 MAG On 16 0.46% SuULPHVR MAX, | 2 ¢; rua. COnsusPT! On C. O04 (Gel tons) “ (Humber) — 2eu,200 | a. com (Por ton delivered im Bin) . s. os Rer. Pag 50. cae c. om len delivered ia tank. ig ‘Tm ©. onae 12. we a. OTe PER oT OF EL aS FIRED 8. Grricsency 4. new Gustmcten [FUEt 0% SToS : 232021, ry TE . ne x — _—e ” seem ccm _—— c WTA ecT2:4s 30,000 65,0007 ©o ~ Sos be,ges°2| 21 202= a ee ee eee 2 ct : L7z & = 99 = & 2% _i.._t u.1._.& 200 = &. mectc rove Bo2o37T roe 4. Se °. Stam soe ¥ ‘) axa 237 > gad 6. pwwins on (STM. Te 4 ce re Zsa- &. SEPRECIATION & INTEREST (8% of Line ° = = £722") fe = - 4. oman (Specs ty) . BF AOIRE wpm wh eee bos Ib] 30022) {5 b20= lI 10 259 |n2¥se 2 1 woe suLecteD — ~— , a. com (uodernizety “ [Ve on Cle as (1) fectty ‘+6. ameams - 2 Makes Le “Computed on besis of actus! mohthly rates applicable. GSA 22"s> 1289 SPECIAL AND SUPPPLEMENTAL PROVISIONS SPECIAL REQUIREMENTS een te nares Feed See ree Cae Tee vision, to use the Contracts listed herein E ¢ QUOTATIONS: (a) As used in this schedule the term “F. O. B. Mine (cars)” means : at ; unit price. A price quoted ; i out explanation or qualification shall mean free cars at the mine. (b) Whether or not this schedule shows that bids on any item are invited on of F. O. B. cars destination or delivered-into-bins at desti- nation the bidder may submit such bids, indicating in the item the basis thereof. In connection with a delivered-in- to-bin destination quotation, the bidder- shall state the truck loading point. Awards will be made on either an F. O. B. mine (shipment to be made on Government Bills of Lading, or on commercial documents to be converted to 243 —_ sa 84 se Ht sE8e eee ee 4 afi pil “He s ilits chia? His EE on coal offered of Mines does not have the latest shows the offer | 2 7 KEYSTONE'S MAP OF THE Cdl _ KEYSTONE COAL BUYERS MANUAL wv ~ “eGR? ite : Hee I Hf : . a = HE i ny ihn na HF iti i Ha tal ake aeTeREE bet ea i ty ae fl Hag i la ull - tt Bh oad uu ite it if l tf He TF o i nt et sites Ha HEL i! ie ae 17 my Eames * oe ee S.e*® 5.8. oa 43 22 &° 884 ane © aeesa" © o. a: SS a [aE TAG 33433 ee te ia He i i yl | : jal F lala q fulin i | it q fits ue lj i! ste hi i fi CALENDAR YEAR OF 1967 (cont.) aces eee ee (In Thousand net Re te See | 2a ey | e2.... ne | Bea F°RHG GES" g,, ’ ee a DISTRICT OF ORIGIN 1 aaa 88. gea88 Zz az. 38 Rge"R RERRE AMe ss Bases BREE RI RASRZ $2. é aea*s dae *-. © pa ns al CONSUMER USE » and Mexico } ne ih i a i si : ii, lt diy ri it TP je —~ TABLE I « DISTRIBUTION OF BITUCINOUS COAL AND LIGNITE PRODUCED IN THE UNITED STATES DURING THE CALENDAR YEAR OF 1967 (cont. ) Net Tons) ? GR ta ovis a2: SOP ites ET es ne ar he ae 1 TGR aR re Si $E.8% an a ON a> ie S| trees weeee Lt Si “t siemeerea 7. i mes oe betne 6906s — ann BE feesk seses — 7 Pe : ee Th 1 i, ia hla, iF i! fii ‘he lhe 1424 o| S879 pe sg RE © = ae ili q as A gar 2 M4 | SS fl” % ESS 2P88F an an RnGian ee ee age i= =I m1 3 ; a g.*8 ps 23 #8 a ane ga 5 an $ BA*E G65°8 94%.“ ...., ga°d “ — hea an eae -faesed~00es — me i | aon EG a al a mn “aa : A yf i i Lt ia in 4 ihe ‘i fi See footnotes at end of table. ] [gel = | esas Ps eres | Feast : “Ris 836° 2 amin .. § 9.a8 88.58 ~ ee an OF 3 nr DA | Peas i|-E ro ap ee a Rea 8.863 ae “7 3 BS aged .. & Gga8 = 7 ». RA A a2 a, eee eeee os DISTRICT OF ORIGIN 1, “uw NAN Ft WN TABLE I - DISTRIBUTION OF BITUMINOUS COAL AND LIONITE PRODUCED IN THE UNITED STATES DURING THE CALENDAR YEAR OF 1967 (cont.) (In Thousand Net Tons) 3 and 6 North Carolina, (continued) « Truck, total Retail dealers All others Eg eee ae ses eta 84" 64 C4 e FSS 8 $.73 macs ASRS — = a so, 25,. 2 2 “#8. GB nmevm S8898 & 8.82 85.83 = ae a7 =| | ESAREE mmm 8. .88 § $899 BRSRG .. GER* 8 AAT : , s wR ae Pte ee Re BS SS SAR : 3 pera fri Carre : BRORA GG" EAMES EGRE 88029 RE ga°8 8 8 : .Y ‘ on : mili a a uk dk WP i teah, Gaah, ath Pau, Ha nee ae nat jgedaa padaa j a jie [lla Ho jis : 1440 j . @ Boe s Wy st. ee S| [BE SR Tae, ibe tie _faaaes... i FEE mw, =a ~_ Fs E ot 4 KS &.E.5 MeM eens a ar Pavey 4! (s eememerosmerr — | = 5 S10 ChFE Wet ee ees a ea |: Se oT rik eee ul |: 7 g 2 m ee tesey rire see ee 5 * og | og’ Sat Riaee age aete> 4g goa aaaa ae. : : a : iz © | ge fg Pog F is ee a tathiec chiles & 3 ofa ok 5 ie ,.& Pll dled Ho aida dd ~ |aEE’*2a3. Haj. F2, 34 HE ita, iM, ie af [5 g (PP pisidl que aud oa: gall 33 A 1 i fiidia {dla pla jada i Huh | fia Ha ji 4, {ARLE 1 - DISTRIRUTICN OF BITUMINOUS COAL AND LIGNITE PRODUCED IN THE UNITED STATES CURING THE CALENDAR YEAR ¢ (in Thousand Wet Tons) 1441 dhemnict oF ontoIa 1 1 fi oe. i i, ii, i i tt wat fi fyi Fe ut ; See footnotes at end of table. (In Thousand Net Tons) 2 1442 DIATRICT OF ORIGIN Jy re a 7 ae a] TABLE I ~ DISTRIBUTION OF BITUMINOUS COAL AND LIGNITE PRODUCED IN THE UNTTED STATES DURING THE CALENDAR YEAR OF 1967 (cont.) iy i i he Le i, lis fis ‘lls ju i if i! E i il ft See footnotes at ond of table. 1443 3 © ve ee * g ‘ eevee eeeee ee -» B RRS BR SE RASS aw “ ~~ aw mee mere -8000 60 & 006 BS Stu SQ weww oe of 28. ORS 3 3 3 8 8hR SFEMR GI" an § ¥.. EE. eee ee DISTRICT OF ORIGIN 1) TABLE I - DISTRIBUTION OF BITUMINOUS COAL AND LIONTTE PRODUCED IN THE UNTTED OTATES DURING THE CALENDAR YEAR OF 1967 (cont.) {in Thowsend Het Tons Peat == x —' $ z,2F SR, & RZIR se . mm % *eeee *eee se | 3 3 x 4 ef ‘ seee seeee *eee ee : Hy ‘elias iM yo By a Hi i ui ne i i i! finds il See footnotes at end of table. 3 > BOR BePe OOM kk cack cca®™ an zi‘ eee seee srtee ‘ seee ee 8 8 - Sam ee a we hae Ge. tea cae om SE. OR q 4.08 78.09 9e? a — mn. n n nm a“ ee ‘ ee DISTRICT OF ORIGIN 1, 17 a ———— ees | , Pat Rae gp — th, Hf Mil bi : tt i i ii ih iz 4 fa (Mi my 1 i i See footnotes at end of table. 1445 RAF sg ase .» RRA RRer =F RB SR... aR? &. 6 — REE .. REA RRA BA -~ = = ~~ a an cont. 18 =. 22 . i ae ip ® [ E 2 =| |: : : : : % ++ BANS B ge BgeA = £ HR RER BAB | ay! i i i tMdabacr f a Maal Ed ely g] [Ada HE fila Ulla fla Ele fle fis 1446 a “eae wT aise fale 3 SOM AS een eee ye 1D : 2 98 8." AEE a’ cna Jac & ES Rees 2 aR gan ip ae ee 9" > 4.4-ES } i3I: 2 $E a8 938 R 3 - REPRE sons we ee ] |- aga aga " 22.88, 8,8 2 fs Ra ae a SPE GATE “" E RQNE SPER BRRRE 27s ”~ he | | iit! L, ‘ ly ij t~ i yy yah a Ha ae a 1447 .» & BG BhR-* DISTRICT OF ORIGIN Y TABLE I - DISTRIBUTION OF BITUMINOUS COAL AND LIGNITE PRODUCED IN THE UNITED STATES DURING THE CALENDAR YEAR OF 1967 (cont.) California, total ( ts ts ji in fit See footnotes at end of table. 1448 g J . ee z e aah er AS ed PE = ad a - «a . 86 § &,*8 sf ; eS sete 2,8 an +S B88 8 es ao a ~ s siete tin ct a 5. ee We Me bse seater aeeeess ce 2: F gs - ean an 4 eo aH e SS * SOUR OAS Cet et 4 eee 3 : Fay ance “aa aN RR ag = aa om ” se & AS“2 aR “2 ee? . oo es ao ee | Ran, dt waa o § Ba-8 __ *e*epvpees Sa, a a3 "* PTO Merve ts ce 79+ bem eed obo a de oh (In Thousand Net Tons 2 All others See footnotes at end of table. Tidewater, total «. 2 » 0 ay ch 32 39n eaANSKOO bestncad wis ad gt At n st at st at 7 wrotwo a0 soruieta MOLLWKLISEG 40 ZiVi8 ToL Tol aNeTORT UT) (“au00) 196t 40 WVEX BVOKIPIVO MK OMTNNG SAVES GUAINN BAL KI ORONOONE BIINOKT GAY ‘TOD SNORIWIE 40 NOTLNETULEIG = 1 SIEVE 8 £107USAUT oUTU UT sPuBYyo oN soekotdme . 09 SeTwS Puy souT ye pesn TeOD seyuedwoo uvt pee Seyuedmos se79g pertUn BRR att 3 3, fe " 9 mee 2 FE mIOTWO 40 LoTuieta [sor Ton puwsnouy Ur) (+9409) 196T 40 MVE MVONFIVD BML ONTUNd SAIVIS GALINA SHL MI GFONdOUd ALINOIT GNV TVOD SMONIWALIG JO NOIUNGIUISIC - I FIaVL TABLE I - DISTRIBUTION OF BITUMINOUS COAL AND LIGNITE PRODUCED IN THE UNITED STATES DURING THE CALENDAR YEAR OF 1967 (cont.) (In Thousand Net Tons) DISTRICT OF oxIoIN 1 } Canadian commercial docks Vessel fuel U.S. dock storage va Great Lakes movement: Tidevater movement: Coal used at mines and sales to employees Het change in mine inventory States of destinations, etc., are shown respondent figures) of movement, in footnotes, it is for purposes of concealment of individual FOOTNOTES (Where special combinations of consumer uses, methods 4 shipments. itorage for which consumer uses are not available th all-rail shipments. -reil shipments. 1 shipments. yor, and private railroad are included with truck Shipments vie Great Lakes are included with all-rai a] river are included wi bunker fuel, the destinations of which are not available. exports and United States tidewater dock s via tramvay, conve Shipments via river and ex- Shipments via tidewater are included with all 1452 i. RE SER 3 ¥ : ers : Mi sha ea je bb eee eg RR : Ws) 3 34*8 = et : i ¥ - seit tinal al i i Bees aan a | é § a i See 6 g eile] Tate 1 i TERE! i 8 § & RES 4 au fe oe TELE ry ute 5 3 : Mal a iin i gw? RG aR gas i & R yaxogsa ME Head. Be GRERE? R" so eeress Bi - . aa_3F i G1), lel doscat ole fll : : f jit REE Hee : is : 4 all pagece’ $3 RAL & Jesh (iis iday ta np i iii viii Hl i. ‘ ae. 9s "! anh Ee H 2 g 4 d bslatiststtl PI dal Sexo" wmoyeTYO ‘euetstnoy ‘sesueysy Te107 T[eaqueD {neg 3894 JddyeetsstH pue cweqeTty oossquuay, a . anane eo aae * CEE bags g ORR? f SSPRBE R SHR AE REUSAR B p AZERS R AGSRSREE RES ER = = > = 7 = z z T 9 990" o'er my at e6t' OR 6 T 9 ~~ “4 BIE we Sk O88 (SuoZ yom pavenogy aI) QNV 196T 40 SHVEL UVONTIVD AHL ONTANA SALVIG GALINA BBL MI GaONdOUd BLINOTI GV TVOO SNONDMLIE 40 MOLINGTMISIA 40 1454 , i tii ~~" 2 ia] Stee Pree : fd] [pe eee 1 OL, assis 7 Ae AD oe ts g/SBe F628 TLE baa aie te a A ee [Se i oF Fie aif . slgengegaqegee a fee gs Ba Fe f F i i altel i is is 1455 “STQWTIAS 30 B28 OTB Jo SUOT{SUTISEP ON ‘TEN; 2eqKUNG SeyNTOUT ‘seAsnoy | . {elQut yea Jou 928 Semn AeENEUOD BTYA 40j PEI048 HOOP JOVERSPTS SOINIG POTTER pus sys0dxe seessene sopntoxe £ | orn Corerrss } 24 Seasion sexe [me | formes hf A- eg oe ‘& th»/es AIR POLLUTION BY FEDERAL FACILITIES REPORT OF THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE CONGRESS OF THE UNITED STATES IN COMPLIANCE WITH PUBLIC LAW 90-148 THE CLEAN AIR ACT, AS AMENDED JANUARY 1368 APRIL 1, 1963.—Ordered to be printed ——— U.S. GOVERNMENT PRINTING OFFICE P3868 WASHINGTON : 1968 1457 ‘SENATE RESOLUTION 261 Submitted by Mr, Raudoipk of West Virginia In Tur Sevare or Tue Unitep Stares, Agreed to April 1, 1968. Resolved, That there be printed as a Senaie document the report of the Secretary of Health, Education, 2nd Welfare, entitled “Air Pollution by Federal Facilities”, in complixnee with the provisions of title I, section 111(b) of the Clean Air Act, Public Law 90-145, es amended; and that there be printed 2,500 additional copies of such document for the use of the Committce on Public Works. Attest: Francis R. Vaeo, Secretary. By Darrepyi Sr. Criainze, Chief Clerk. § ss 1458 LETTER OF TRANSMITTAL Tue Secretary oF Heattu, Epucation, aNp WELFARE, Washington, D.C., February 7, 1968. Hon. Henert BH. Huspurey, President, U.S. Senate, Washington, D.C. Dear Mr. Paesrent: In accordancé with the provisions of title I, section 111(b) of the Clean Air Act, Publie Law 90-148, as , there is transmitted herewith a report on measures being taken to control — emission of air pollutants from Federal facilities. : Wizsur J. Cone, Acting (1m) 1459 AIR POLLUTION BY FEDERAL FACILITIES INTRODUCTION The Clean Air Act, es amended, emphasizes the need for Federal leadership and assistance to State and local agencies in the contro! of air pilbation, In addition, the act indicates that the Federal agencies shall cooperate with the Department of: Health, Education, and Welfare and with any air pollution control agency in preventing and contrelling air pollution frem the facilities for which they ere a It also provides for the establishment of classes of air pollution sources fur which limited permits could be issued and further requires the Secretary to submit an annual report to the Congress on the status of such permits and compliance therewith. The language of the act is such that the Secretary ts given discretion with respect to the classification and permit procedure to be established. In addition to the act mentioned above, the program of abaiemeiit and control of air pollution from Federal facilities is governed by Executive Order 11282, dated May 26, 1968, entitled “Control of Pol- lution Originating from Federal Installations,” by the “Performance Standards and Techniques of Measurement” prescribed by the Secretary of Department of Health, Education, and Welfare, issued June 2, 1956, in response to “Sec. 5 Standards” of Executive Order 11282 and by Bureau of the Budget Circular No. A-78 issued on August 6, 1966, and seni to the heads of executive departments and establishments. ' It is expected that several vears effort will be required to full control air pollutant emissions from Federal establishinents in wien ance with the best current practices. ‘i’ provide the necessary technical tidance for this overall effort, the National Center for Air Pollution Contre! of this Department has established a Federal Facilities Section, the staff of which will devote full time to the surveillance of air pollution problems arising from Federal act ivities, the extension of sachalirel ussistance to other agencies and departments, and to studie. of the schedwing of the necessary improvements in control of the emissions at Federal establishments. ACCOMPLISHMENTS The Performance Standards accompanying Executive Order 11282, through section 76.5(¢)(1), called for the Secretary of the Department of Health, Education, and Welfare to establish by regulation limits on the emission of sulfur oxides to the atmosphere from Federal facilities within 6 months of the effective date of the standards for Standard metropolitan statisticel areas or standard consolidated areas which have a population exceeding 2 million end a population density exceeding 15,000 persons per square mile. The result of this require- a intention to adopt--30 days after the publication of the notice— m ific limits on the emission of sulfur oxides in these three arezs. 30-day effective time limit was extended by the Secretary of the Department of Health, Education, and Welfare for an additienal 90 days at the request of an industrial trade association which was con- cerned about impact of the proposed regulations on certein seg- ments of the fossil fuel industry. The proposed limits were published in final form in the March 23, 1967, issue of the Federal Register to be effective October 1, 1968. ; The limitations on sulfur oxide emissions for Federal facilities in these three heavily polluted areas are sufficiently stringent to cause serious ane and poe Spe ys ape received indicates that all agencies int to comply with the regulations gs rapidly as possible. This compliance is related closely to the efforts of the air pollution ~ control agencies in these cities to relieve poet oe prnine of excessively high to sulfur oxides and is an t example of coo intgQhimeninebintaham During 1967, 2 number of studies of special Federal ns of air of problems associated with fuel supply nationally and with specitic er is on New York, Philadelphia, and Chicago. The Department of Defense initiated a program of testing fuel oil for its sulfur content since the current military and Federal specifications on fuel oil permit sulfur contents which are considerably in excess of that associated with current and anticipated limits. Several directives were issued to military commands to put this new program into effect immediately. Laboratory resources of the Department of Defense will be utilized Toxic propellants continued to be a problem during 1967. Potential beryllium emissions have been controlled, largely because of the Public Health Service policy statement on beryllium issued in 1966, and through the t cooperation by the two princi igencies concerned (DOD and National Aeronautics and Space Ad- ic polluti h toxic chemicals under developmeni f tion with toxic i for use aad os compounds of berylliuin long-range toxicity for some humans. Therefore, no amount of ium should be tely emitted to the atmosphere, except circumstances directly relevant to defense of the Nation. New justification for the longstanding Federal concern about con- renninstllans af: She auhdenh shecmgbadh hep ten vkanteanmeeane of 1461 3 beryllium arising from any activity of government, was provided by a recent court decision. In October 1967 & Pennsvivanic j jury awarded $109,120 to a 45-year-old mother on the ground tbat her serious lung was caused by beryllium fumes emitted to the atmosphere by an industrial plant located several miles from her residence. (Heck v. id a Corp., Berks County, Pennsylvania Court of Common wy = that court decision produced no pee pe in the conserva- tive Health Service policy toward control of beryllium, it did stimulate intensified activity within the Department of Defense to assure enforcement of the st sire by guidelines issued earlier to control any rocket motor tests apeans “7 the national defense. It also stim- ulated serio need for toxic rocket propellant preys Pose obacn.: stare sing ones one enh when virtually a researeh Govelopaians Siavelving beryllium as a propellant had st ivity also was continued in Chattanooga and Hamilton County, —— because of continued interest of citizens of the area in general ution abatement, because of complaints the emis- sions from the Volunteer Army Ammunition Plant in Hamilton County or because of technical problems involving efforts to control sulfur oxides, nitric oxides, sulfuric and nitric acid mists, red water inciner- ator wastes and other contaminants. ‘The Abatement Program is studying the air pollution situation of the entire area and air pollution from the ammunition plant. The most ificant recommendation made to the Office of the Surgeon General, ment of the Army, by the Public Health ec ae a to install catalytic reduction units o the plant to reduce markedly the emissions of nitric oxides to the from Os nitric acid plants at the Volunteer Army Ammu- nition Plant. Special coo tion continues with the Tennessee Valley Authority through its Division of Health and Safety. In addition to participating in an advance review of TVA’s phased and orderly plan prior to its submission to the Bureau of the ass the Federal Facilities See- tion and ‘meteorological personnel of the abatement also reviewed TVA’s current plans to control air pollution its new plant in berland City, Tenn. This plant will burn a high-sulfur coal which is the most readily available fuel in the aa wih needed and will have one or two 1,000 foot stacks equipped re. md efficient (99 percent) electrostatic precipitators to eels part te emissions, depending on final engineering design decisions. Although there is not considered chy Sg ain han: gpm 7 prntoren ay of removing sulfur oy from these stack gases. TVA that these oxides may be er eee ae of control mechanisms in the future when they are developed. > should be noted here that considerable research is underway by the Public Health Service and TVA, by the Bureau of Mines of the Department of the Interior and by private utilities and chemical ere vane ty hg technology to remove sulfur oxides from stack gases of powerplants. Most of the activity by the Federal Facilities Section of the abate- ment program involved $2 626% | i F a a i Jollet Army Ammunition Plant, Joliet, (Mt. Fort Benjamin Harrison, indianapolis, ind. _. 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Sebaseed Perfornance a "Based on the pilot plant experience, Combustion blisivion “has guaranteed that the air polluticn contro} systen (APCS) would’ perforn as follows: a eee ees se | “ss ae The sulflr oxides leaving the APCS are equivalent to burning a fuel containing 0.5% sulfur when sulfur in the fuel is no greater than 3.4%. 2. The particulate matter ; removal fron the flue gas —e the APCS will be 998. “ Qperating Experience ‘il bi I. D. Fan Inlet ar The reheater is a finned tube heat exchanger with close spaced tubes and fins. Cleaning of the heat exchanger was in- tended te be done by 3 eater wash syster using the scrubber spray _ +3- 1506 Water. The wash systen consisted of sprays logated abore and belox the reheater. Originally it was planned that washing would be done et half load with the scrubber inlet and outlet dampers closed. The final design was worked out with oa Tine ‘washing planned. — : ~ After spproxinotely 12 hana of senasahial on coal, the wash systen was operated to determine whether it would function properly. Sone of the kash water carried over, to the I.D. fans. -t was “observed to be leaking out of access doors in the fan inlet boxes. After a few hours, 1.D. fan vibration increased. Inspection showed a heavy bul dup. of deposits on the fan blades with a thickness as great as 1 in, in ‘spots. Sand biasting was required to remove the deposits. ate eh ee a yi 8 ere It was apparent fron this experience that moisture must be kept out of the fans. Drains were installed initially on the fan inlet boxes. These were later changed to an eductor system. Also, top rehéater sprays would not be used when the scrubber was on line and botton sprays would ‘be used carefully. Xo further problems were experienced with fan blade deposits. Normally there is no moisture carryover from the reheatcr. Moisture has dlen observed coming fron the inlet box drains. during start- up and curing — ~fen operation. - Overflow Drains : Another early problem. «as the deposit of calcium sulfate on the overflow drain screens (Fig. 4a). These deposits formed in 2 short period of time (less then 24 horrs) in sufficient amount to restrict the water flow and cause a high water leve) next Operating period. Slarifier Systen The Clarifier ond slurry purping system has operated successfully eee caly ninor problems evicenced st this tine. Plugging of the pusp suction has occurred a nunber of tines due to restrict! ons caused by peover-operzted butterfly valves. “These have been Changed to plug valves to minimize the restric- ' tion. Solies concentrations of 20 to 30% by weight have been “measured in the clarifier underflow. A short term concentra- tion of 50% by weight was measured on one- occasion. Plune Heating Syster Except for the reheater See previcusly described, the heat exchange systen has operated satisfactorily. Flue gas temperature entering the rcheater has typically been 120 F end has been 190 to 200 F leaving the reheater. As expected, a vapor plune exists when ee ‘and nemddsty “conditions eictate. During noderate weather, a ‘vapor plume’ frequently exists during night and early morning hours and disappears as anbicnt temperatures increase and reappears in ' the evening. While plume appearance is stin important and of. concera, the experience with 1. D. fen blade deposits Suggests a cor- pelling reason for plune reheating that kgs not apparent before. It is doubtful that fan blade deposits can be avoided if reheating is not provided. : Boiler Operation Minor nodifications vere made to the limestone pulverizer 78- 1511 % cininice rejects which were quite high ia early qntiaties A nex feeder €rive was installed to give better contro) in *the 1] to 3 rpo range needed for this systen. No problens have been expericaced with the furnace ‘and convection pass ef the boiler, with one exception, Buildup of. deposits were found in the vicinity of stean aspirated 0, probes which were backwashed with water. Thess will probably — be changed to air cleaning probes. Fal) ovt. of solids teatenesé in the air heater hopper requiring more frequent cuptying of the hopper. This vas particularly troubJesone at half load whem one scrubber was operated and gas velocities leaving the air heater were low. Some modification to the air heater hopper and to the removal system will probably ey SY Future Plans As of this writing, plans are to start ¥P the APCS about June }, 1969. Kork on modifications is going ahead, but construction trade ‘labor disputes may delay the completion of this work. If delays are encountered, it may be necessery to postpone the operaticn of the systen watil fall to avoid possible forced outages of the unit during peak load periods. | It is expected that a portion of the clarifier underflow will be recycled to determine if additive loss can be* reduced. A long operating period is needed to determine reliability of the system and to establish operating and maintenance costs. Sunnary Operation of the APCS has revealed problems that were not evident in the snall pilot plant which was operated at one of -9- 1512 Detroit Feison'’s plenty. This in itself is pot surprising, since the exirapelaiion fre= a snl) pilot plant to a full-scale _ wait of the Meramec size cust be dene with considerable risk. Combustion Enginecring and Union Electric recognized that this would be a development preject and thet inevitable problers would occur which would require design changes. To be candid, we should say that trouble occurred where we aid not expect ‘trouble ‘and did not occur, as yet, where we expected it. In the seven and one-half months since the systen was first started, there have been 31 days. that the systen has operated on coal. A number of modifications hove been ‘made, ‘Most of the major problens appear to have been corrected, but more operating time is needed to confirm this. The systen is now out of service for further modi fications and ve ¥en to start up again in June. : ; a ors ; The systen has deanisusices that ‘it will remove the amount of eulfer dioxide expected a) though complete and forma) accep- tance ‘tests have not been perforned. Particulate renoval. has not been determined. Although the system cannot be consideied commercially acceptable at this time, a great deal has been learned from this development project and both Conbustion Engineering and Union Electric are optinistic about the ultimste ~ workability of the systen.- An extended period of operaticn is shen in order to establish the reliability of the system and to determine oper- ating and maintenance costs. ‘After heving obtained this inforsa- tion, we wil) be able to deternine the epplicabi li ty of the systca for both existing and new lerge units. : -)0- 1513 Reterence Plualcy, A. Lv, Shidécn, 0. D,, Shutko, F. W., and Jonakin J., “Renoral of SO? and bust from Stack Gases" PROCEEDINGS OF THE AMERICAN POSER CONFERENCE, Velume XX!X, 1967 Bibliography McLaughlin, J. F. and Jonakin, J., "SO, Trapped In Full Scale Syste, “ELECTRICAL WORLD, November 13, 1967 Jonakin, J. and McLaughlin, J. F., “Operating Experience with the First Ful) Scale System for Removal of S02 and Dust from Stack Gases", American Ppwer Conierence, April 1969 o2i« 'O D{AIIOLY VOT JO UOTICIG DowWesN Ze POTLeISUy Wo3shs TOsIUOD UOTanTIOd Ay :1 *BEy 1514 - —_. pquanitiantinns 3 dss } ”~, © oe ad —— 3" — Pe - ‘ ane “<> r} —_—— a PCS eager tw , y { —— ——_ : BSf iy. ‘ ‘ ‘ . ‘y ‘ns weet Tha aR | aA eT gig eres / ll \ { : % : ta —. « d a Yay “ #12 yh tee fi moremter 0°. oee © ne ar TT oe pm “ne “ted pr Be pay SP ¢ ea ‘ ; ““Eiee TE A se 8 ee ee es Be i* bbs Be hh eee oe’ Px ¥: ye ioe ES ,- 3 Ae $ 2 4 £° Mie, 4 * om : . = ‘ of & “ pos - i 2 mig ns Oe . ‘ ie A , fa =a . J oe id , i. = ‘ 5 aime gh $i — - st ‘te, a ae - pa { a. S “. : al et P {joe Ja ey 4) J iy Me: ; es whe a ff - re ae . ; = a, ° i ene Po cet onl i ig. — = ot afete,t i. Coe. f ee “ £ >} ae ST : Fae if ots ‘ —— ¢ UT il i > oe - ee ee ~' oe eee vee wersks TeAouos, 29s Jo D}aemoyrs tz *Bhy WSdcS10 OL ror 2 fan onmusss "oe “Ft wus UBits C- ig 7 ‘a Io easy fo UZONVHOXS — | | | j CNV ys Xs “avaH 16 TOA , Me He, oN a: | used | ee a - . O39 A | gly a. Sar aE: bd i | neues LJ | Se | TTT eee : : re UIT ij Sv xovLs : » wieens | UZLSINZO ee | ' bead : a J aaa ZOVNUN » bonis OL | ee oF oe % HM —@ i ifs | tht > ; o¢ | | "¢? Caaieetatied Deena ew ‘ {- IP Pet A ’ atner, ¢ wy F ——_—— ret re eee TV e Fig. 4a: Overflow drain screens before modification sereens 2S aoe SS OD Ot Om Ce om ees Se eee tim: Seere tere 2 8 . oy PR. a . 3 «s syle. mh % é nen DON eS 8 ete Sees fter nodification 4 A) , oe oe Ol be wens’ ’ ‘ + + tye oe aad * at the —a é bese ao ee ee eee es _ 7 . - Fig. S$: Water table sodels of scrubber and duct work — a. show poor . @istributicn; b. Close-up of inlet showing dead boundary lerer condition; c. turning vane which eliminates boundary larer con- dition; d. ladder vanes vhich e)ininate poor distribution uacer bed; and c. Gver21) view vith modifications installed. Ate Rib: 7 + ale He i : preetiyabigeedyss 3 yell i: lieu AHH THE isaal HEE iPEypL: — Hf cL RATES P iF Ts | PEERS Jen. Dep. EXxHIsiT 13 June 7th 1966 Mr. R. H. Inman ROODHOUSE FIELD this field there is an estimated HL) pey Her Be Pe Sobcggesttess gegqedoat wis 52s : - seit cttaae sagee tgs 5 ie is PLL ee 32 aa aH RE TE i HL ee BE PE Hividpe srs “Sea pt 8 e-em LPL abt lau ie Ha aL iedyteas Serie HO Sr Tee Heer sett leiden 5 ie ail rT itis rifitiin aa HE ite ea° sail ite La Ei Lift 53% fi 4 443 | Hien ByPiasiy ties ll tee Stu: fal iy HT a2 Ei al peli 7. REDS 283° 4 3 #8 BshE3 go ages Weenies offs ict ini: pddbay tere He fe: ia Bg By o ii Sheed é 543 g232 iagt iH iat ls ar = utiles fat ae 4 td Bs ie i aba etapa ie aes ey BH ft ie il ihe! He 4 ifs , ‘ln Hf i iH ae: waqaes Deer at e533 & 13is la RAE an iis HF 1525 would be 19¢, but if you include the Model 702 Kochring . dragline, the cost per ton would be 23¢. It should also be noted that on the list of options that should come up before the Board meeting, those listed beginning with Albert Bateman in Green County expire in September rather than August as stated on the list. If there was another Board meeting in August we still would have approximately 90 days to decide on these 8 tracts. These represent 6 of the 8 tracts that we would consider keeping if we intend to prospect this field further. The other 2 that we recommend to keep—Hanneberg is in the 5,000,000 ton area and the Kenneth Tillery which we suggest we keep only 40 acres possibly could be dropped and if anything developed we could pick these up at a future date. In the meantime this would give us approximately 90 days before the others were expiged to pick up additional tracts wheré“we feel the greatest potential lies and give us a better chance to rule on the Roodhouse Field. I had only noticed that these dates were wrong since we last talked about the Roodhouse Field. Attached are 2 copies each of the analyses of 4 cores taken at the Roodhouse Field. Also attached is an aver- age of these 4 analyses along with the comparison study of the No. 2.coal in other areas of Illinois. We now have on file, Corps of Engineer maps and 15’ quadrangles of the area. ° DHE & BCJ/ah 1526 Kolbe Deposition Exhibit 2 “3 ae eae Nt nt “? WN wr eee ne Ss ll — . -~- mitt ii a is ay idl 1528 The use of this excavator in a pit with a shovel makes possible the recovery of coal with over- burdens up to 100 fect. Three or four times as much material is moved in a month with “wheels” as was moved with the draglines they replaced. The use of a “wheel” with: a shovel permits the shovel to operate at its greatest efficiency. Drilling and blasting from the ledge created by a “wheel” on the digging side of the pit reduces those costs because the material moved to form the ledge does not have to be drilled or blasted. The much wider pits made posible with the use of wheel excavator has improved the operating performance of the entire pit including the coal loading shovels and truck haulage units. The “wheel” and a shovel work- ing together can economically strip coal which could not have been mined before at a profit. SAVLING COAL In order to reduce the cost of transporting coal from the pit to the preparation plant, we are using larger truck haulage units than formerly. We have recently ac- ayguired our first fifty-ton trucks which will haul about 505% more than the units they replaced. 2 PRESARATS 32. SF SGAL FOR 257.2) Modern industrialization makes great demands on the washing, siz::g, and quality pre aration of coals. All of our mines are equipped with preparation plants designed to meet these demands. Our two most recently con- structed plants are of the new “heavy media” design. These “heavy media” plants provide a finer, p SN i ad ~ ™ — } - -.~8 -————— G : - ae "ae, i ~ -o > - p ¥ ~ Pe . % * - Dd = zz z - re a is R ., ; : . — —s _ - _ ° t . a + . -" ; . ‘ “. q isthe - —~ 2 ~ a - > hen tr 7 —, ™ ‘ iy . wo ~ ae. : = thee 16, 1989. 1547 Kolbe Deposition Exhibit 51 The United Electric Coal Companies - 1948 Annual Report © sameness FIDELITY UNE, OvOvein, limon BUCK HEART MIME, Conton, Bimon CUBA MINE, Cube, tino ‘ RED RAY MINE, Freeburg, Mines SOLAR MINE, Ruthyile, Hingis BUFFALO CREEK MINE, St Chories, Ky. ATEN YEAR RECORD OF GROWTH IN SERVICE / >» terest im coal, it may mever have oc-. ” power. In a handful of coal weighing _ curved to you that, with the exception Iss than o pound these is ensugh power of food and water, coal fe perhaps the . to raise a weight of 33,000 pounds sixty most ianportant and vital product known | feet. All the potential power of our s0- ~ !. to man. and ie ‘our greatest and most ~ serve of oil and natural gas and of the : dependable source of use energy. ° > . “water in our dams combined is only a / Even though you have an unusual in- © ' Our economy is designed to function on # ~~. 2 Stit have more than a nominal effect on our projections and then only ~ : @using the late years when the present worth factor is low. a rt : We have made careful checks on plant and equipmest. Ta our ; operating results represent a reasonable expectancy from the > equipment in use. ‘ ' Fos Our value of $23,446,225 as of December 31, 195) exceeds the i: > Pook value of $16,902,703 of that same date by $6,543,522. The amount | of $16, 703 is the sum of $16,321,169) and $581,534, the amount ” setually paid ea option contracts. If this excess were added to the — ghastholders* equity as of that date, the total would have been =. $26, 669 93880 i> apres : eaeiaginbs heat! . Bint ob e.8s, aN id = ee Dy: re " . cae i> oa hs es Stk Respectfully gubaitted, © x: ; , GH ei ee ee Se: ys FF ie ee ete j wi’ ae —— - _ Or 4 at Average ... December | | aS 1952 1258 for_i Tears 2B .° RR Raeiection for 37 Tem Ae Production in Tons 900,360 1,077,608 iplh2y775 1,206,885 1,097,508 1,085,027 '15250,479 = $62,680 - 583,072 "_ 22,067,152 1,298,067 B. Total Cost of Production, Berton = Fer Toa Per Ton Ber Ton Eex Ton Per Ton ‘Pert Pert = Pert © ft Pe he 1769 2.9520 $e e : a ————- awe ew ee ee oe ee ee ee ee > tion 0.268% 2838 0.2921 042721 0.2880 0,2812 a. a ee eee “042280 mgd apa aeas x 303769 303203 $225 363350 Seat 380,595 $02,153 (750,359) i : : : : : : inet : : 3-3 Doprectation - * 92696 pa ee 041866 3. pees ey o-snee 0 wf f G Gross Cash Generation. ‘ 2-: $0. 7... $0.9201 dy iz Beast ; $06 ee 2a a ee es = sea = (98,389) (#8025017) eee — ge : f 17002 15.72 Vre88. Tho TAL09 : 28055 16.75 Eatin 35.91 18.42 17.86 22.10 20070 22.02 2.75 2329 Ze 38.92 2-88. 3647 Bek} 32.70 sd Bi - i A He . . - ; ; : . Production in’ fons 2,251,077 gee SBS 2,351, 076 = |. 50435300 Batinated Gross Cash Generation ($2) 384,480. $1L0593 = 2,0057 | 527,532 140057 Iecs Reinvestrent . . ay oe : —e : Ye Cash Generation orc oS GOCRaST aS #60057 mises ie Present Worth Factors Present Vorth as of 12/31/1959 ‘ $2,652, 625 : $14809,885 aie “ps, 00,08 ‘£84 promint worth of Salvag> Valus PR pho I Total Vi of Decondo ; : ‘Sen peau inn wae 17506 Myer t F : | : 929,780 1,da7 a3 1,308,779 14327,086 2,248,951 oo ee a a Oe 6 : , es . * 'e 302879 : Stas 300582 30 303030 304509 . 301207 323643. 715 307605 ‘Mies = 5 a Sie Oes75 ' 002223 : 002455 0.3340 * cea : 063751 003162 a ae $0. «$865, 068) a ss G08). (6821,070) ‘(S8904285) ($905,208) $1,384,821 eerie 2,855, ag 9209 Tale for Projection for 25 Years: moat. 6,097,513 tons © $0.07 per ton, “426,826 - | 23, 511,549 tons, Book Value 804, 037 > pees 0g ne ted at . - ree 2 per years $9,126, 717 oe $2,011,308 4s total dy Ascunea cost of Verking Capital 1s : Seance 1.25 percent of Sales’ Realization. 406, 430 B.AoT. ite ’ Production in fons #15493, 522° fuiséesns” - BNDB, 2 . $2, 6019 FS Depreciation ae Oehhg2 0.526 Sustained Depletion “Q2OUNS 2" 020256. 9.0762 _ Total ea | 33331 75 5 303893. =. . 302029 O, Het Sales Realisation 969685 2 oghg Ronne Be Total Cost ‘ oe os 32029 me Pre Tax Profit — 06304 wey Oe 0%. 068719 7. Nct Profit after riz ohge ze cr ee . cee --.. ADDa,:: .. . Stee ge at B-3 Doprocintion 2 Oeh707 >: Oghh32 On 5285: Sustained Depletion i 29,0966 ms oue @, Gross Cash Generation ( $0 SD): (hoon ae , H. “Book Valnes, in $3 , : nn + Up». Coal lends +: 2e.: Plant & Equipment Se * York in Progress foe Golontar Year 119,569 209,199 Ror Ton dnount Per Tea $2.6156 43, 505 $245980 le : % 0. 063779 82, 365 >) 3937 300540 ‘Ba057 320500 3.8895 pine : 028295 156,899 0.7500 Oe. ‘Toes STs? (4157, 328) ¢ 12,187 162,365 ie 7,552 15012 27202 SONPUTATLON OF VAITES ‘Promustion in Toms oy 208199 * ‘Estimated Grogs Cash Generation $214,762 . - $1,0267 t of tal Assumed cost of working capi ae 4 1558 EXTANT Z ‘ BAUER MEE Expicotion for 12 Yoora ‘ SEPURATION OF vareg A, Production in Tons Deh69 = (789,289) Produstion in fons 9,471,469 Be Zotal “re af Sremeation, , dent Rex Ton Sstinated Grong Gath Gneration $12,974,202 $1.3065 “4. “Oaete other thas bd, D4 ae Ce nw(ie25 porooat of Salew es come = Sas rectation ao ——— yodihzas nak ‘s ene Fo dts lien eecttoatten $4,725,212 $542500- ‘Present Vorth Factor, 3B. Zotal Coot Bee 3.6009, 12 years at 10 yorcent 0.5678 "Z. Foteral Incoxs Tax onde, ‘¥. Mot Profit after 312. passe: «|| ees Procaut Werth as efDeemnber 32 1959, $6,350,525, ADD: gee (POLE ea oe dacant of ioventm==% 29 Beoreesticn “"2223,352" —* (0,185 renaining to te mis as 6?" aS Ie. ‘Hod Prettt after JI? en . A *. porcont of Rot zon Realisation 16046 — aides haus $50, ed _wrowt a: cic ick sami x Pa: $3»8752450 “ 3 : o f ‘Royal tyt or tons © ne $ 433,042 >) Foot 7739, Book Value $1,123,352 Necessary Reinvestment estimated at 9,471,469 tond © $0.06 per ton $ 568, 288 € Estinated Original Investacnt in Plent and Equipment = - saat Estimated. Value, 12 years hence : "500, Amcent to be depreciated $3, 068, 288 Estimated total Original Investment in Planté Bontyaens $4, 000, 000 Tnvestaent as of December 31, 1959 -. $2,046,920 Renointer of Tnvestaent in Plant and Zyxiynent | “tq de made as of Decesider.31, 1999 - $2,953,080 Buckhsart, Including RRART Book Valuos as of December 31, 19592 ph oom lands, Feo $2, 220, 410 Tends, Purchase - vies ope be ang t 2,806, r ho ae $5,071,173 eee Options 6 fetal... . $22,080,152 Projections: 4om=al Production 1,296, 057 Yoltoving & ard on per-ten besiss Estimated Sales Realisation — $5300 $ 300,8R. ry 75037 2,986,955 aontnn a 6,097,513 $5,502,153 $35,609,002 : wutoee $3-£209 Estinstod Total Costs = * 24833, BheR | Eatinated Profit before) Dodoral 1.0919 066007 003512 Eotimated Profit after ) Income fax 0.7085 0.5800 0.2587 Zotimated Gross Cash Generation $1.0371 $2.0593 $0.4832 Percentage ef Bales Realization” . * Recovered as Profit after FI? 15.64 19-52 6.62 Recovered a Gross Gash Generation 22.89 69 12.69 Paul’ Woir Company's opinion of Value as of December 31, 21959 $9,160,413 $3,796,305 $3,463,939 FOOT NOTES: (a) The total amount, : $870,693, of classification "General". is allocated ty use UeE. Ce has not furnished break-down, te) Of this, $29,000, there de ‘a Dalance Qut‘ef $19,500. This dalance dus is not show under Liabilities on the balance sheet, $22,187 162, 365 Active Steel Buildings & _ River Mineg Borgoe Fquiment foxminal Strip Unlexeround, Bey oe Be! 054 a | ee: Ul 8, 565,050 $18,224,519. G5, 300 $200,000 $150,000 $1,912,005 oe 399 685 1,840,510 27, 97. "682 Bisas or 859,035 2, 120,328 sie 122, 294 $20, 768, 040 $415, 300 $200,000 $150,000 $1,912,635 sist thecone ZHACTIVE COAL, RESERVES Book Valua, Payzonts Kcto on Fo \-Canton Field $ 476,308 $492,073(a) Inuustry Field _ 537,570 '78,825(d) Gaylo 145, 866 - leFlore County, Oklahoma 45,125 - Buffalo =: 100, 000 “s Caba 43, rs) - Perry County teas mee = Sotal Strip n7acter = $570,858 less — 22, 500(e) Bet Book Valus $1,912,885" 1,840,520 1561 04 ae 1562 | KOLBE DEPOSITION EXHIBIT 60 REGARDING NEED FOR ADDITIONAL STRIPPING EQUIPMENT AT FIDELITY MINE In the so-called Green Pit where we are currently work- ing, the overburden is such that the 1650-B can nearly all of it without any additional stripping equip- ment. Toward the end of the field, a helper would be desirable to maintain production and : This Green Pit will be mined out within two to and-a-half years. Beyond that, the estimated reserves Fidelity that can be stripped is 23,000,000 tons. gation of the three different areas prising 000,000 tons shows overburden depths and hard requiring a helper for the 1650-B to mine it out nomically and to mine all of the 23,000,000 tons. W: out a helper, our production would be reduced current rate of 180,000 tons per month to about 125, tons, with a resultant increase in cost. Also, of this tons 3 Ee seeeiehed estimates have been developed. 1. Bucyrus-Erie has a standard design and has built a wheel for Peabody and one for Truax. It is high enough for us, but for our purpose certain modifi- cations of design seem necessary. They put a price on their standard design of $2,500,000, and an esti- mate on transportation and erection of $400,000. While we don’t know exactly what the change in design we would need would cost, they have indi- cated that the engineering and other factors in- volved would cost somewhere in the neighborhood of another $400,000. So it appears we are thinking about something over $3,000,000 for a Bucyrus ma- chine in place and ready to operate. [En wheels at B ie a i E ed Hi hata any capital charge for Marion 5561. This is cost, using our own and ee canes ro) - include total and , erection from the 65388 way below the cost of difficulties, we could Erie. today. are within reason but for still be rE: Hie i isi, 1565 felbe Dep.&x. ola IG or having its principal office in Chicago, linois, (hereinafter called “United"), and ALUMINUM COMPANY OF AMERICA, s Pennsylvania cozporation having its principal office in Pittsburgh, Pennsylvania, (hereinafter called "Alcoa"), aE > WITNESSETH: WHEREAS, Alcoa desires to obtain options to purchase the coal and coal mining rights in and under certain lands located in Perry County, State of Illinois, together with all other available minerals and mineral and mining rights in said land, and WHEREAS, Alcoa desires that said options be obtained without | disclosing the identity af Alcoa, and : WHEREAS, United has indicated its willingness to obtain eaid options in the name of United and hold said options in trust for Alcoa and_ thereafter at the request of Alcoa, assign and convey said options to Alcoa, and : WHEREAS, Alcoa shall, from time to time, desire United to perform or cause to be performed certain prospecting, drilling, | @xploration and other work on said lands or relating to said lands, and WHEREAS, United has indicated its willingness to perform or cause to be performed such prospecting, drilling, exploration and other work, . NOW THEREFORE, United and Alcoa, in reliance upon the covenants herein contained, hereby covenant and agree as follows, 1566 intending to be legally bound thereby: 1. United shall undertake to obtain, in its own name and without disclosing that it is acting for Alcoa, recordable and assignable options for the purchase of the coal and coal mining rights, together with all other available minerals and mineral and mining rights, in at least Eighteen Thousand (18,000) acres but sot more than Twenty-Five Thousand (25, 000) acres of land located east and nozth of Pinckasyville, Perry County, Illinois as outlined in red on the map marked “Exhibit A“ and attached hereto, paying to the owner ot owners of said land as consideration for each option so obtained the sum of One Dollar ($1.00) per acre of land. United shall, in so far as is practicable, obtain said options in such « eee "ese in writing, by Alcoa, each option so obtained by United shall be in the form marked “Exhibit B", attached hereto, and shall provide for the payment td the owner or owners of said land, in the event the option is exercised, of a total purchase price not to exceed the sum of Fifty Dollars ($50.00) per acre of land. = (D United shall without undue delay cause each option so obtained to be recorded in the appropriate records of Perry County, Miinois. @ United does hereby acknowledge and declare that it will hold said option in trust for Alcoa, and that United will not claim to have any right, title or interest in said options to its own use or benefit. United does hereby covenant with Alcos that it will, immediately after the same has been recorded, convey and assign and deliver each option so obtained by United to Alcoa or to such other person or corporation as Alcoa shall in writing nominate or appoint. : | ——- ee 4 4 . “Ze é 1567 ©) At such time as Alcos shall designate, United shall cause the optioned lands to be properly drilled on approximately one-half mile centers and shall cause the cores to be examined and logged by & competent consulting engineer. United shall cause the coal samples to be analysed by Contmercial Testing Laboratory ia Chicago, Mlinois and shall promptly deliver to Alecs the results of such analysis. © nor defore the tenth day of each mouth, United shall invoice Alcoa for, and Alcoa shall thereafter promptly pay, such | chaxges as shall be due and owing to United by Alcoa oa account of : performance hereundéz by United during the previous moath. ene charges stall consist ofthe following: 4 : 4 ” de" Payments made to the owners of land optioned in = eccordance with the terms hareol and the cost of " * pecording the options, " maployed by United solely for the purpose of obtaining ‘oO Aa amount which is equal to one and one-half times the portion of the salaries of United's engineering _"- gné land acquisition employees which is attributable ‘to United's performance hereunder on the basis of | actual time spent by such employees in performance ” The actual cost of causing the drilling, examination ” and logging of cores, ant enatpets of samiphea to be " Porloxmed pursuant to Article 8 hezect. 1568 B; Expenses incurred for meals, lodging, transportation, eee : “ + United oka, at any time upon receipt of written notice from Alcoa to do so, immediately cease, or temporarily suspend, the obtaining of options hereunder. 8. This agreement may be terminated by sither United o7 Alcoa by giving thisty (30) days prior written notice of euch termination. 9; In the event Aleos decides to drop the options acquired under this Agreement, said options shall at the election of United to Alcoa of all charges theretofore paid by Alcos to United pursuant to the provisions of Paragraph 6 hereot, plus any yenewal payments 10, Motlees to United provided fas hares shal be deemed to ‘ be vrepesty given whed deposited im the United Sates mat registered © binding upon the parties hereto and their respective successors and aseigne. IN WITNESS WHEREOF the pastiss hereto have caused this agreement to be excguted by theis éuly anthozined officers the day County of God ) ~~ s cle cortify that on the 7” day of to prepare only to sicds of com, 24 ale x0. Teo various othty sisos could’ be prcdzned at tho FléMity wekor. feta would mike far e cheap end eoonceionl-to-riin wachar at tho Shakers poop esticc. Por a cénsclideted eerpeny, the lost Vinginin tomceo ose nob hav> cS ENR purpesa 23 in the prosons feu: company, a3 in a comsolidatcsé - ccapary $% wonlft bo only 2 {2fth of th tots? ortpat, trstoed of a third, and if ecxtaia exponsicn thes u> aro eanterplnbirg weve prt throngh, +: vould [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0099%3A07. Public record. Not legal advice.