xt71vh5cd47m https://exploreuk.uky.edu/dips/xt71vh5cd47m/data/mets.xml Kentucky Kentucky Coal Association Kentucky Office of Energy Policy Division of Fossil Fuels and Utility Services 2008 journals English Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Coal Facts Kentucky Coal Facts: 2007-2008 Pocket Guide text Kentucky Coal Facts: 2007-2008 Pocket Guide 2008 2014 true xt71vh5cd47m section xt71vh5cd47m 2007-2008 POCKET GUIDE KENTUCKY COAL FACTS Prepared by the Kentucky Office of Energy Policy Division of Fossil Fuels & Utility Services and the Kentucky Coal Association Edition 10 * Highlights Electricity Average electricity costs in Kentucky were 5.43 cents/kilowatt-hour in 2006, the fourth lowest in the United States. Production Kentucky produced 125.96 million tons of coal in 2006, compared to the record production of 179.4 million tons set in 1990. Kentucky has been one of the top three coal producers in the United States for the last 50 years. Employment The Kentucky coal industry paid $1.035 billion in direct wages in 2006, directly employing 17,669 persons and indirectly providing 3 additional jobs for every miner employed. The average weekly wage for coal miners in Kentucky was $1,126 during 2006. Economy The Kentucky coal industry brought over $3.5 billion into Kentucky from out-of-state during 2006 through coal sales to customers in 30 other states and 4 foreign countries. Kentucky coal companies paid $221.42 million in coal severance taxes in Fiscal Year 2006-07. Coal Markets Electric power plants, located in 30 states, accounted for almost 89.3% of the Kentucky coal sold during 2006. Approximately 79.5% of the coal produced in Kentucky is sold out-of-state each year. There are 22 major coal-burning electric generating plants in Kentucky, and almost all (92.2%) of Kentucky's electricity is generated from coal. Environment All surface-mined land today is reclaimed equal to or better than it was prior to mining. Kentucky mining companies have received 25 national reclamation awards from 1986 thru 2005 for outstanding achievement in surface mining. Coal mining creates valuable lands such as wildlife habitats, gently rolling mountaintops, wetlands, and industrial sites where only steep, unproductive hillsides had once existed. Kentucky operators have paid over $978.48 million into the Federal Abandoned Mine Land Fund since 1978 to reclaim abandoned coal mines. Nationwide, operators have paid over $7.94 billion into this fund. However, $1.96 billion remains unallocated for AML reclamation. Coal Resources Kentucky has two distinct coal fields, one in Western Kentucky and one in Eastern Kentucky. Kentucky's 87.1 billion tons of coal resources remaining represent 83% of the original resource. Teacher Resources Coal education resources materials are now available to teachers and students on the Internet at the web site www.coaleducation.org . Additionally, a coal education multimedia library kit with interactive learning tools are available in every public and private elementary, middle, and high schools, and county libraries in Kentucky. April 2008 . This publication is for informational use only. It includes some extrapolative second and third party data as well as some broad estimates, and should not necessarily be construed as official source data or be construed as advocating or reflecting any policy position of the Kentucky Division of Fossil Fuels & Utility Services or the Kentucky Coal Association. i * Table of Contents Highlights .......................................................................................................... i Contents .......................................................................................................... 1 Changes and Trends ......................................................................................... 2 Contacts .......................................................................................................... 3 History of Coal................................................................................................4-5 Types of Mining................................................................................................ 6 PRODUCTION U. S. Coal Production........................................................................................ 7 Kentucky Production ......................................................................................... 8 County Production ............................................................................................ 9 EMPLOYMENT Employment....................................................................................................10 Productivity .....................................................................................................11 Employment / Wages by County .......................................................................12 Safety and Training ..........................................................................................13 ECONOMY Severance Tax by County .................................................................................14 Coal Taxes Returned .......................................................................................15 Economic Impact.............................................................................................16 Coal Prices......................................................................................................17 COAL MARKETS Transportation .................................................................................................18 Uses of Coal....................................................................................................19 Coal Deliveries — State to State .....................................................................20 Electric Utility Shipments ..................................................................................21 Coal Exports / Imports ......................................................................................22 ENVIRONMENT Air Quality / By -Products ...................................................................................23 Reclamation....................................................................................................24 Post-Mining Land Uses ............................................................................... 25-26 AML Reclamation ............................................................................................27 COAL RESOURCES Coal Origin and Properties ................................................................................28 U. S. Comparisons — Production ......................................................................29 U. S. Coal Reserves.........................................................................................30 Kentucky Coal Resources ............................................................................ 31-32 Coal Properties / Improvements ........................................................................33 ELECTRICITY Coal-into-Kilowatts ...................................................................................... 34-35 Electricity Costs ...............................................................................................36 Electric Utility / Non-Utility .................................................................................37 GASIFICATION Coal—America’s Energy Future ................................................................... 38-39 RESOURCES Coal-Fired Power Plants ...................................................................................40 Information Assistance.....................................................................................41 1 * Changes & Trends Three centuries after it was discovered in America, coal is still providing power for the nation. As we begin a new century, coal faces many challenges to its premier status, but its importance can never be questioned. The fuel, coal, that enabled the United States to become the wealthiest industrialized nation in the world is still responsible for over half the nation's electrical power. Coal provides 49% of the electricity in this country, and in Kentucky 92.2% of our electricity comes from coal. Average electricity costs in Kentucky were 5.43 cents per kilowatt-hour during 2006, the fourth lowest in the United States, 39% below the national average in 2006. These low rates are largely due to our reliance on coal-fired generation , sold at cost-based rates, as well as sound utility management and excellent public policy. What Changes are Occurring? Kentucky's share of the steam coal market to U.S. electric utilities declined from 23.2% of the market in 1973 to 10.5% in 2006 ( see page 37). As Kentucky coal companies have consolidated into a globally competitive industry the number of mines has decreased. The number of mines currently in Kentucky is 442 compared to 2,063 mines which existed in 1984 (see page 8). Post-mining land use changes are providing long term economic, social, and environmental benefits to Kentucky, and the benefits are increasing (see pages 25 and 26). Is there a Trend? Kentucky shipped 119 million tons to 30 states compared to the 44 million tons it received from 11 states in 2006 (see page 20). In comparison to other fuels, coal continues to be the lowest-cost fuel for electric generation. Underground and surface mining in Kentucky continue to show steady safety improvements. Over $3.95 billion continues to be brought into Kentucky each year from coal sales to 30 other states and 4 foreign countries (see page 16). The number of successful mining reclamation bond releases in Kentucky continues to grow each year (see page 24). Source: See individual reference pages as listed. On the Horizon? A new coal-fired electric utility company power plant went online in 2005, the first in over 15 years. In 2005, the Kentucky PSC approved another coalfired power plant, and in 2006 applications were pending before the PSC for two additional coal-fired power plants. 2 * Contacts Governor’s Office 700 Capitol Ave., Capitol Building, Frankfort, KY 40601 Phone: 502-564-2611 FAX: 502-564-2517 Department of Local Government Phone: 1024 Capital Center Dr., Suite 340, Frankfort, KY 40601 FAX: 502-573-2382 502-573-2939 Kentucky Environmental and Public Protection Cab. Capital Plaza Tower, 5th Floor, Frankfort, KY 40601 Department for Environmental Protection 300 Fair Oaks Lane, Frankfort, KY 40601 Division of Waste Management 14 Reilly Road, Frankfort, KY 40601 Division of Water 14 Reilly Road, Frankfort, KY 40601 Division of Air Quality Control 803 Schenkel Lane, Frankfort, KY 40601 Department for Natural Resources #2 Hudson Hollow Road, Frankfort, KY 40601 Division of Abandoned Mine Lands 2521 Lawrenceburg Road, Frankfort, KY 40601 Division of Mine Permits #2 Hudson Hollow Road, Frankfort, KY 40601 Division of Mine Reclamation and Enforcement #2 Hudson Hollow Road, Frankfort, KY 40601 Office of Administrative Hearings 35-56 Fountain Place, Frankfort KY 40601 Office of Mine Safety & Licensing 1025 Capital Center Dr., Suite 201, Frankfort, KY 40602 Independent Commissions Mine Safety Review Commission 132 Brighton Park Boulevard, Frankfort, KY 40601 Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: Phone: FAX: 502-564-3350 502-564-3354 502-564-2150 502-564-4245 502-564-6716 502-564-4049 502-564-3410 502-564-0111 502-573-3382 502-573-3787 502-564-6940 502-564-5698 502-564-2141 502-564-6544 502-564-2320 502-564-6764 502-564-2340 502-564-5848 502-564-7312 502-564-4973 502-573-0140 502-573-0152 Phone: FAX: 502-573-0316 502-573-0344 Department of Revenue Division of Minerals Taxation and GIS Services, Severance Tax Unit, 501 High Street, Frankfort, KY 40601 Office of Property Valuation 501 High Street, Frankfort, KY 40601 Phone: FAX: Phone: FAX: 502-564-8334 502-564-5977 502-564-8338 502-564-8368 Transportation Cabinet Division of Planning, Coal Haul Section 200 Mero Street, 5th Floor, Frankfort, KY 40622 Phone: FAX: 502-564-7183 502-564-2865 UK Center for Applied Energy Research 2540 Research Park Drive, Lexington, KY 40511 Phone: 859-257-0305 FAX: 859-257-0220 United States Department of Energy National Energy Information Ctr., EI-30, Forrestal Bldg., IE-238, 1000 Independence Avenue, SW, Washington, D.C. 20585 Phone: FAX: 202-586-8800 202-586-0114 3 * History of Coal 1701 1748 1750 1755 1758 1792 1820 1843 1850 1860 1861 1866 1870 1872 1877 1879 1880 1890 1900 1910 1914 1918 1920 1923 1932 1940 1942 1947 1950 1956 1960 4 Coal discovered in Virginia. First recorded U.S. coal production. April 13th-Dr. Thomas Walker was the first recorded person to discover and use coal in Kentucky. Lewis Evan's map showing coal in what is now the Greenup County and Boyd County area of Kentucky. First commercial U.S. coal shipment. Issac Shelby becomes the first Governor of Kentucky (1792-1796). First commercial mine, known as the "McLean drift bank" opened in Kentucky, near the Green River and Paradise in Muhlenberg County. 328 short tons mined and sold in Kentucky. 100,000 tons of Kentucky production. Lexington and Big Sandy Railroad proposed. Kentucky Geological Survey established. Pre-Civil War Kentucky production record of 285,760 tons. Kentucky-born Abraham Lincoln becomes the 16th President of the United States (186165). Surface mining begins near Danville, Illinois. Post-Civil War Kentucky production decline to 150,582 tons. St. Louis & Southern Railroad completed from Henderson to Earlington, Kentucky. First train off the Big Sandy Railroad. Coal mined with steam-powered shovel. One million tons of Kentucky production. Mechanical stokers introduced. First coke ovens in West Kentucky. Mine Ventilation Law. First train from Williamson, West Virginia to Pike County, Kentucky. Coal mining machines come into general use. N&W Railroad's first mine at Goody in Pike County. Hopkins County in West Kentucky leading coal producer in the state for 18 straight years. Miner Pay Law. United Mine Workers of America formed. Machines developed to undercut coalbeds. 5,000 kilowatt steam turbine generates electricity. Child Labor Law. Edgewater Coal Company's first production in Pike County. First train off the Lexington and Eastern Railroad. Independent Geological Survey established. First train from the Cumberland Valley Railroad. Fordson Coal Company's first production at Pond Creek. Pike-Floyd Coal Company's first production at Betsy Layne. World War I increases demand for coal; Kentucky produced 20.3 million tons. Short-flame or "permissible" explosives developed. Mine Safety Law. First pulverized coal firing in electric power plants. Federal Mineral Leasing Act. 42.1 million tons of Kentucky production. All-time high U.S. employment of 704,793 bituminous coal and lignite miners. First dragline excavators built especially for surface mining. Walking dragline excavators developed. World War II - coal production in Kentucky rises to 72.4 million tons for the war effort. Auger surface mining introduced. Republic Steel Company's first production - Road Creek, Kentucky. Post-War Marshall Plan - production rose to 88.7 million tons in Kentucky. Continuous underground mining systems developed. Kentucky Water Contamination Legislation. Kentucky Coal Association founded. 82.2 million tons of Kentucky production. Fish and Wildlife Coordination Act. Railroads converting from coal to diesel fuel. Roof bolting introduced in underground mines. Railroads began using unit coal trains. First longwall mining with powered roof supports. Kentucky Surface Mining Legislation. * History of Coal 1963 1966 1969 1970 1972 1973 1976 1977 1980 1983 1988 1988 1990 1992 1993 1994 1996 1997 1998 2001 2004 2005 2006 2007 Kentucky coal production exceeded 100 million tons. National Historic Preservation Act. C&O Railroad to John's Creek constructed - Pike County. Federal Coal Mine Health and Safety Act. Federal Clean Air Act. Kentucky Coal Severance Tax established. Federal Water Pollution Control Act. Kentucky becomes the leading coal production state. Endangered Species Act. OPEC oil embargo: Coal production and prices rise. Federal Coal Leasing Amendments Act. Federal Surface Mine Control and Reclamation Act. Congress enacts the National Acid Precipitation Assessment Program (NAPAP) Study, a 10 year research program, which invested $550 million for the study of "acid rain." Industries spend over $1 billion on Air Pollution Control Equipment during 1980. OPEC cuts oil prices for first time. Martha Layne Collins becomes Kentucky's first woman Governor (1983-87). U.S. Clean Coal Technology Demonstration Program established $2.5 billion in Federal matching funds committed to assist the private sector to develop and demonstrate improved clean coal technologies. Kentucky Supreme Court rules that the unmined minerals tax on coal is subject to the same state and local property tax rates as other real estate. TVA 160-MW Atmospheric Fluidized Bed Combustion Unit on line. Wyoming displaces Kentucky as the leading coal producing state. Broad Form Deed legislation passes in Kentucky. Federal Clean Air Act Amendments of 1990. Kentucky record production - 179.4 million tons. U.S. coal production exceeds 1 billion tons. U.S. Energy Policy Act of 1992. CEDAR, Inc. (Coal Education Development and Resources) formed in Pike County. Western Kentucky CEDAR, Inc. was formed in Webster and Union Counties. Kentucky Coal Education (www.coaleducation.org) was introduced to the Internet. Workers' Comp Reform Laws are passed in Kentucky. The Kentucky Fish and Wildlife Commission voted to re-introduce elk into 14 East Kentucky counties on post-mined lands, citing mountain-top removal areas and old mine benches as good elk habitat. This is to be the only large free -ranging elk herd in the Eastern United States. Mountaintop mining comes under attack. Federal synthetic fuel tax credit for use of coal fines begins. Natural gas prices increase over 50% in one year. Electricity shortages result in rolling blackouts in California. Governor Fletcher unveils Kentucky’s first comprehensive energy strategy, “ Kentucky’s Energy: Opportunities for Our Future.” East Kentucky Power Cooperative’s Gilbert coal-fueled fluidized-bed power plant begins operation, the first coal-fired plant in over 15 years. Energy Policy Act of 2005 signed by President Bush; includes major Clean Coal Technology programs. Kentucky Energy Security National Leadership Act (HB 299) enacted; Act calls for strategy for producing liquid and gaseous fuels from Kentucky coal. Kentucky Coal Academy founded to train new coal miners. Kentucky becomes the first coal state to adopt a drug testing program for certification of coal miners. Congress passes Mine Improvement & New Emergency Response Act, (MINER Act). The most significant federal mine safety legislation in 30 years, requiring underground coal operators to improve accident preparedness. No underground coal mining fatalities in Kentucky since records began in 1890. House Bill 1, providing incentives for development in Kentucky of industries for producing transportation fuels and synthetic natural gas by gasification of coal enacted. U.S. Air Force flies B-52 bomber and C-17 transport aircraft on a 50-50 blend of conventional jet fuel and jet fuel produced by the Fischer-Tropsch process that converts gasified coal into liquid fuels and chemicals Sources: Energy Information Administration, (www.eia.doe.gov), Kentucky Department of Mines and Minerals, Annual Reports, and Willard Rouse Jillson, Coal Industry in Kentucky, 1922. 5 * Types of Mining Kentucky has two distinct coal fields, each containing numerous deposits of bituminous coal of various characteristics and mines of every type and size. In surface mining the use of large mining equipment maximizes the recovery through the excavation of one or more coal seam deposits in the large area surface mines of the gently rolling Western Kentucky coal field and in the large mountain top mines in the steeper terrain of the Eastern Kentucky coal field. Both the eastern and western Kentucky coal fields have large, modern, and efficient underground mines (of various entry types) utilizing improved mining methods with increased mechanization including continuous miners, longwall mining panels, or both. Of Kentucky's 120.8* million tons of 2006 coal production, 73.2 million tons were produced by underground mining methods and 47.6 million tons were produced by surface mining methods. The EKY and WKY breakdown for the number of mines and production for both surface and underground mining methods used in Kentucky is as follows: 2006 Production by Mine Type Mine Type Surface E KY W KY No. of Mines 215 202 13 Production (million tons) 47.6 44.2 3.4 Underground 227 73.2 E KY 214 56.4 W KY 13 23.9 __________________________________ State Totals 442 120.8 __________________________________ *NOTE: This is the official U.S. DOE number for Kentucky. State and Federal numbers typically differ. 6 * U.S. Coal Production KY and U.S. Coal Production* 1970—2006 (millions of tons) Year 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Kentucky Western Eastern 72.5 71.6 68.9 74.0 85.4 87.3 91.1 94.0 96.2 104.1 109.2 117.9 111.2 95.6 117.3 113.3 112.7 119.9 117.5 125.7 128.4 117.2 119.4 120.2 124.4 118.5 117.0 120.9 116.7 110.0 105.0 109.1 99.4 91.3 90.9 93.3 93.6 52.8 47.8 52.3 53.7 51.8 56.4 52.8 52.3 39.5 42.5 41.0 39.7 39.0 35.6 42.3 39.0 41.2 45.3 40.3 41.6 44.9 41.8 41.7 36.1 37.2 35.2 35.5 34.9 33.6 29.6 25.8 24.7 24.7 21.5 23.4 26.4 27.2 Total 125.3 119.4 121.2 127.6 137.2 143.6 144.0 146.3 135.7 146.5 150.1 157.6 150.2 131.2 159.5 152.3 153.9 165.2 157.9 167.4 173.3 159.0 161.1 156.3 161.6 153.7 152.4 155.9 150.3 139.6 130.7 133.8 124.1 112.8 114.2 119.7 120.8 United Kentucky as States % of U.S . 602.9 552.2 595.4 591.7 603.4 648.4 678.7 691.3 665.1 777.9 829.7 823.8 838.1 782.1 895.9 883.6 890.3 918.8 950.3 980.7 1,029.1 996.0 997.5 945.4 1,033.5 1,033.0 1,063.9 1,089.9 1,118.1 1,100.4 1,073.6 1,125.9 1,094.3 1,071.8 1,112.1 1,131.5 1,162.7 20.8 21.6 20.4 21.6 22.7 22.1 21.2 21.2 20.4 18.8 18.1 19.1 17.9 16.8 17.8 17.2 17.3 18.0 16.6 17.1 16.8 16.0 16.2 16.5 15.6 14.9 14.3 14.3 13.4 12.7 12.2 11.9 11.3 10.5 10.3 10.6 10.4 Note: These are the official U.S. DOE production numbers for Kentucky. (Federal and state (page 8) production numbers typically differ. U. S. Leading Coal Producers Kentucky ranked third in the United States in coal production during 2006. 2006 Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. State Wyoming West Virginia Kentucky Pennsylvania Texas Montana Colorado Indiana Illinois Virginia Millions of Tons 447.0 157.0 120.8 61.1 45.5 41.8 36.3 35.1 32.8 30.4 Sources: U.S. DOE - Energy Information Administration; Coal Industry Annual, 1993-2006, Coal Production, 1977 1992. U. S. Bureau of Mines, Mineral Yearbook, 1970-1976. 7 * Kentucky Production Kentucky produced 125.9 million tons of bituminous coal in 2006, down over 53 million tons from the record 179.4 million tons set in 1990. UNDERGROUND SURFACE STATE Year East Ky. West Ky. East Ky. West Ky. TOTALS 1965 1970 1975 1980 1985 1990 1995 2000 2002 2003 2004 2005 2006 37,740,473 44,068,538 41,280,096 59,603,430 75,530,607 81,577,417 73,922,358 59,956,626 59,562,704 52,952,957 54,250,895 52,679,423 50,853,952 13,341,646 19,430,489 24,757,456 19,558,157 21,188,598 27,375,465 24,763,534 21,543,143 21,244,764 19,055,260 19,288,512 21,751,538 25,971,680 9,587,626 28,527,422 46,957,448 49,582,095 52,294,115 49,393,390 47,288,817 44,335,363 44,615,777 40,751,963 41,544,662 45,073,132 45,537,968 26,537,294 33,281,946 31,209,511 21,400,291 22,602,743 21,026,997 11,812,973 6,010,856 5,979,552 4,360,719 3,930,444 4,903,482 3,597,011 87,207,039 125,308,395 144,204,511 150,143,973 169,616,063 179,373,269 157,787,682 131,845,988 131,402,797 117,120,899 118,954,473 124,407,575 125,960,611 Source: Kentucky Division of Mines & Minerals, Annual Reports, 1960-2002; Office of Mine Safety & Licensing, Annual Reports, 2003 -2006. Number of Mines, 1986-2006 Kentucky Year 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Surface Underground Total 723 830 1,553 612 816 1,428 492 738 1,230 429 670 1,099 360 627 987 296 542 838 270 482 752 250 446 696 248 425 673 237 361 598 237 307 544 221 308 529 205 277 482 198 260 458 162 246 408 203 264 467 194 233 427 213 187 400 196 223 419 208 224 432 215 227 442 Eastern Kentucky Western Kentucky Surface Underground Total Surface Underground Total 633 802 1,435 90 28 118 532 791 1,323 80 25 105 426 714 1,140 66 24 90 358 644 1,002 71 26 97 301 601 902 59 26 85 243 513 756 53 29 82 225 459 684 45 23 68 197 425 622 53 21 74 206 401 607 42 24 66 201 339 540 36 22 58 197 287 484 40 20 60 193 289 482 28 19 47 186 259 445 19 18 37 178 243 421 20 17 37 148 234 382 14 12 26 187 253 440 16 11 27 180 219 399 14 14 28 174 201 375 13 12 25 185 212 397 11 11 22 193 211 404 15 13 28 202 214 416 13 13 26 Source: U.S. DOE-Energy Information Administration, Coal Industry Annual, 1993-2006; Coal Production, 1984 -2004. Number of Mine Licenses in Kentucky The number of actual mines is smaller than the final number of mine licenses issued each year. A new license is required when the company name or ownership changes. UNDERGROUND SURFACE STATE Year East Ky. West Ky. East Ky. West Ky. TOTALS 1960 1965 1970 1975 1980 1985 1990 1995 2000 2002 2003 2004 2005 2006 2,563 1,959 1,449 1,614 1,131 1,153 799 456 309 300 268 282 278 287 74 49 34 31 32 31 27 28 14 18 17 14 16 15 179 176 502 1,743 1,349 1,548 860 665 256 310 240 298 281 329 70 45 73 182 136 139 83 48 26 20 16 14 19 16 2,886 2,229 2,058 3,570 2,648 2,871 1,769 1,197 605 648 541 608 594 647 Source: Kentucky Division of Mines & Minerals, Annual Reports, 1960-2002; Office of Mine Safety & Licensing, Annual Reports, 2003-2006 8 * County Production There were 620 mines in Kentucky during 2006. These 620 mines were issued 647 mine licenses and produced 125.9 million tons. 245 underground mines (302 licenses) accounted for 61.0% of Kentucky's production and 375 surface mines (345 licenses) accounted for 39.0% of Kentucky’s production. 88% of Western Kentucky and 53% of Eastern Kentucky’s coal production was from underground mines during 2006. In 2006, 32 Kentucky counties produced coal; eight Western Kentucky counties and 24 Eastern Kentucky counties. 2006 Production by County and Type of Mine License* Underground County Licenses Tonnage EASTERN KENTUCKY Surface Licenses Tonnage Total Licenses Tonnage Bell Breathitt Clay Elliott Floyd Harlan Jackson Johnson Knott Knox Laurel Lawrence Lee Leslie Letcher Magoffin Martin Morgan Owsley Perry Pike Rockcastle Whitley Wolfe 8 2 3 39 50 2 31 10 3 5 26 13 2 10 82 1 - 1,012,546 687,666 101,536 1,948,958 8,585,933 1,543,278 5,317,885 221,085 209,470 3,096,748 6,342,546 2,726,415 771 4,154,284 14,884,057 20,774 - 23 7 7 1 21 26 7 11 22 10 2 13 1 10 34 4 14 6 4 28 73 1 1 2 1,742,281 1,598,788 94,819 20,000 2,034,108 3,249,239 66,036 387,329 3,662,497 453,037 134,799 883,153 24,084 1,789,424 3,480,209 2,053,610 2,067,572 80,237 106,125 9,884,628 11,509,998 60,989 148,712 6,294 31 9 10 1 60 76 7 13 5 20 2 16 1 15 60 4 27 8 4 38 155 1 2 2 2,754,827 2,286,454 196,355 20,000 3,983,066 11,835,172 66,036 1,930,607 8,980,382 674,122 134,799 1,092,623 24,084 4,886,172 9,822,755 2,053,610 4,793,987 81,008 106,125 14,038,912 26,394,055 60.989 169,486 6,294 EKY Total 287 50,853,952 328 45,537,968 615 96,391,920 1 6 2 1 2 3 1,870,214 11,292,382 2,342,190 1,284,459 4,851,334 4,331,101 1 1 1 7 6 1 - 32,668 1,808 1,296,328 191,512 1,879,959 194,736 - 1 1 2 13 8 1 3 3 32,668 1,808 3,166,542 11,483,894 4,222,149 1,284,459 5,046,070 4,331,101 WKY Total 15 25,971,680 17 3,597,011 32 29,568,691 KY Totals 302 76,825,632 345 49,134,979 647 125,960,611 WESTERN KENTUCKY Crittenden Daviess Henderson Hopkins Muhlenberg Ohio Union Webster * NOTE: The number of licenses is greater than the number of mines because a mine may be relicensed if the company changes name or ownership. Source: Kentucky Office of Mine Safety and Licensing, Annual Report, 2006 9 * Employment The Kentucky coal mining industry has a current work force of approximately 17,959* people directly employed in coal mining jobs. The Western Kentucky coal field directly employs approximately 2,949 persons; while the Eastern Kentucky coal field provides 15,010 direct mining jobs. Kentucky’s Coal Mining Work Force, 2006 Eastern Kentucky Coal Field Surface 5,707 Underground 9,303 Total 15,010 Western Kentucky Coal Field Surface 350 Underground 2,599 Total 2,949 Eastern Kentucky averaged just over 84% of Kentucky’s coal mining work force and accounted for about 78% of Kentucky’s total coal production in 2006. Western Kentucky averaged approximately 16% of Kentucky’s coal mining work force and accounted for about 22% of Kentucky’s total coal production in 2006. Kentucky produced 120.8 million tons during 2006 while direct mining employment continued to increase over the past two years. Kentucky Coal Mining Employment, 1979—2006 Year 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Western Kentucky Surface Underground Total 4,343 3,995 4,056 4,120 3,415 4,022 3,421 2,327 2,345 1,825 1,870 2,095 1,910 1,722 1,887 1,803 1,109 1,095 937 747 615 450 558 495 443 370 446 350 6,945 7,879 6,489 5,639 4,918 4,053 4,294 4,297 4,605 4,388 4,166 3,491 3,603 3,483 3,465 2,988 3,176 2,601 2,578 2,763 2,309 2,060 1,864 2,029 1,773 1,880 2,254 2,599 11,288 11,874 10,545 9,759 8,333 8,075 7,715 6,624 6,950 6,213 6,036 5,586 5,513 5,205 5,352 4,791 4,285 3,696 3,515 3,510 2,924 2,510 2,422 2,524 2,216 2,250 2,700 2,949 Eastern Kentucky Surface Underground Total 12,838 11,819 13,473 12,319 10,485 11,327 10,516 8,718 8,740 8,261 8,034 7,505 6,251 6,014 5,683 5,728 5,474 4,855 5,053 5,493 4,973 4,162 5,197 5,237 4,896 4,901 5,407 5,707 23,064 22,702 24,032 22,782 17,615 18,474 18,583 17,312 16,900 16,085 16,586 17,407 14,878 13,405 13,028 12,849 11,366 10,275 10,369 9,924 9,314 8,828 9,915 9,281 8,143 8,371 8,883 9,303 *Note: State employment numbers differ from federal EIA numbers. Source: U.S.DOE—EIA; Coal Industry Annual, 1993 -2006, Coal Production 1979-1992. 10 35,902 34,521 37,505 35,101 28,100 29,801 29,099 26,030 25,640 24,346 24,620 24,912 21,129 19,419 18,711 18,577 16,840 15,130 15,422 15,417 14,287 12,990 15,112 14,518 13,039 13,272 14.290 15,010 Kentucky Totals 47,190 46,395 48,050 44,860 36,433 37,876 36,814 32,654 32,590 30,599 30,656 30,498 26,642 24,624 24,063 23,368 21,125 18,826 18,937 18,927 17,211 15,500 17,534 17,042 15,255 15,522 16,990 17,959 * Productivity Kentucky Coal Mine Productivity The average Kentucky and U.S. coal mine productivity peaked in 2000, and has decreased slightly through 2006. Mine Productivity, 1977-2006 (tons/miner/hour) Year 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Eastern Kentucky 1.71 1.62 1.54 1.67 1.76 1.79 1.98 2.13 2.13 2.31 2.59 2.68 2.58 2.66 2.90 3.10 3.18 3.24 3.47 3.68 3.83 3.70 3.74 3.86 3.52 3.32 3.32 3.13 2.93 2.78 Western Kentucky 2.22 1.97 1.94 1.96 2.12 2.01 2.43 2.61 2.57 2.94 2.98 2.95 3.62 3.46 3.37 3.49 3.49 3.28 3.97 4.29 4.38 4.16 4.57 4.46 4.43 4.22 4.23 4.38 4.11 3.78 Kentucky Average 1.86 1.71 1.64 1.74 1.84 1.84 2.08 2.24 2.23 2.45 2.69 2.74 2.78 2.83 3.01 3.20 3.25 3.25 3.57 3.80 3.94 3.79 3.89 3.96 3.66 3.47 3.46 3.32 3.13 2.96 Appalachian Coal Field 1.36 1.33 1.39 1.51 1.51 1.75 1.86 1.90 2.09 2.30 2.44 2.49 2.60 2.74 2.95 3.00 3.20 3.32 3.48 3.76 3.78 3.84 4.10 3.85 3.71 3.71 3.56 3.28 3.13 Interior Coal Field Western U.S. Coal Field 2.42 2.21 2.30 2.35 2.38 2.69 2.80 2.81 3.14 3.33 3.45 3.84 3.88 3.98 4.18 4.43 4.43 4.97 5.39 5.54 5.39 5.64 5.81 5.56 5.54 5.56 5.47 5.29 5.10 5.85 5.47 5.64 6.15 6.26 7.60 8.30 8.55 9.27 10.42 11.01 11.63 11.82 12.42 12.73 13.53 14.58 15.68 17.41 17.75 18.03 19.05 19.63 20.64 20.07 20.82 21.28 20.47 20.19 U.S. Average 1.82 1.79 1.81 1.93 2.10 2.11 2.50 2.64 2.74 3.01 3.30 3.55 3.70 3.83 4.09 4.36 4.70 4.98 5.38 5.69 6.04