xt7w6m333k5v https://exploreuk.uky.edu/dips/xt7w6m333k5v/data/mets.xml Kentucky Kentucky Coal Association Kentucky Coal Marketing and Export Council 1995 journals  English  Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Coal Facts Kentucky Coal Facts: 1995-1996 Pocket Guide text Kentucky Coal Facts: 1995-1996 Pocket Guide 1995 2014 true xt7w6m333k5v section xt7w6m333k5v U 1995-1996 POCKET GUIDE LI  
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` v.V:_ y _;   Jobs, Energy, Tax Revenue, and Economic Growth
{_ Prepared by the  
Kentucky Coal Marketing
and Export Council
andthe
Kentucky Coal Association
_‘    

  Zé rlclty costs ln Kentucky were 4.3 cents/kilowatt-hour ln 1994, the third
lowest ln the Unlted States behind two Northwestern hydro states.
   r l vn 
  168.5 million tons of coal in 1994, compared to the record .
production of 179.4 mllllon tons set In 1990.
Kentucky was the natlon's number one coal producer from 1973 to 1987, was
number two in 1993, behind Wyoming, but lost the number two spot to West
Virginia during 1994. Kentucky has been one of the top three coal producers ln the
United States for the last 49 years. r-
  industry pald almost $1 billion In direct wages ln 1994, directly V
employing 24,133 persons and indirectly providing an additional 72,000 jobs ln A
1994.
  coal lndustry brought $3.3 billion into Kentucky from out-of-state
durlng Flscal Year 1994-1995 through coal sales to customers ln 30 other states
and 14 foreign countries.
Kentucky coal companies paid $177.9 mllllon ln coal severance taxes ln Fiscal Year
1994-1995.
 '6 trlc utlllty companies purchased 126.6 mllllon tons of Kentucky
coal for 152 electric power plants located in 25 states during 1994, accounting for
almost 81% ofthe Kentucky coal sold.
Over 83% of Kentucky‘s coal is sold out-of-state.
There are 20 major coal-burning electric utility plants ln Kentucky, and almost all
(95%) of Kentucky‘s electricity ls generated from coal.
    . .
  land today ls reclaimed equal to or better than it was prior to
mining. Kentucky received 3 national reclamation awards in 1994 for surface
mining, and received a total of 13 awards in the past 9 years.
Coal mlnlng creates valuable lands such as wetlands, wildlife habitats, flat
mountalntops and Industrial sites where only steep, unproductive hlllsldes had once *
existed.
Kentucky operators have paid over $625.5 million Into the Federal Abandoned Mine
Land Fund since 1978 to reclaim abandoned coal mines, and nationwide operators F
have paid over $3.9 blllion into this fund; however $0.98 billion remains unallocated
for AML reclamation.
   t .  ,..     .
` $éFiii1 “t?§§ "t ?$&qBlstlnct coal fields, one in Western Kentucky and one in Eastern
Kentucky.
Kentucky‘s 90.4 billion tons of coal resources remaining represent 86% of the
original resource.
December 1995
This publication is for informational use only. lt includes some extrapolative second and third party data as well as.
some broad estimates, and should not necessarily be construed as ofncial source data or be construed as advocating
or reflecting any policy position of the Kentucky Coal Marketing and Export Council or the Kentucky Coal Association.
I

 As we approach the last half-decade of the 20th Century, coal ls an important part of
our everyday life as it was at the beginning of the Century. The fuel that enabled the
United States to become the wealthiest industrialized nation inthe world ls still
providing the means to power the nation.
Coal provides over half of the electricity In this country, and ln Kentucky, 95 percent
of our electrlclty comes from coal.
i Most experts agree that demand for electricity will continue to grow as our economy
grows. Rates of this growth each year have been estimated from a low of 1.3
percent to a high of 2.5 percent. Large coal-fired power plants, built ln the 1950*s
and early 1960‘s, will need to be replaced.
{_ Utility deregulation ls on the horizon. As ln other parts of American business, low
costs and customer senrice will be the hallmarks of a successful company. Today,
23 of the 25 lowest operating cost electricgeneration units in America are fueled by
coal. Renewable energy sources will have less than 10 percent of the market by the
~ year 2010.
In the coal lndustry, consolidation has been taking place at a rapid pace. Although
Kentucky has approximately 300 producing companies, a little over one-thlrd of the
utility market share for coal in Kentucky now is purchased from only six companies.
Nine companies accounted for another third of the market share ln 1994, and over
60 companies shared the remaining one third (seepage 25). These trends, along with
other pertinent issues, are examined in this edition of Coal Facts.
  As Kentucky coal companies consolidate into a globally com-
  gzaéfclmgf, petitlve industry, the number of mines in Kentucky declined
  g' from 2,249 mines ln 1976 to 673 mines in 1994. (seepage 8)
The number of direct mining employees in Kentucky has been reduced by more than
half since 1981 while production has only increased slightly. (see pages 10 and 14)
Productivity per hour has almost doubled since 1979 (seepage 11), thus maintaining
production (seepage 7) while mining costs have been contained to match coal prices ‘
that have fallen below 1979 price levels. (see page 18)
The amount of sulfur dioxide emitted from burning coal in Kentucky has been re-
duced by more than 1/2 since 1976, and the trend is continuing. (seepage 32)
Post mining land use changes are providing long term economic, social, and environ-
mental benefits to Kentucky, and the benefits are increasing. (seepage 31)
Kentucky coal exports of 7.2 million tons in 1994 fell to less than half its usual level
of over 15 million tons. (eee page 27)
' Kentucky ships over 5 times as much coal to its neighboring states as it receives
fl0lTl Ihém. (see page 24)
Natural gas costs to U.S. electric utilities in 1993 increased higher than petroleum
S while coal costs continued to decrease. (seepage 19)
  Is there a Trend? More of the coal severance tax money is being returned to
  the coal counties for economic development. (seepage 16)
`M" n A
S¤·t¤<=¤ ¤¤*v* - 18 Underground "
Surface & Auger* - 47 mm
Auger Mining* - 1   · I".
underground 425 95.4 ¤ 
Continuous** ·- 64.0 = - · - - »- - - K
C0flV9llTl0l`l8l** -· res Dim Mille
Longwall** -- 14.4 .
Other** -· 0.6 _
 _ Underground   ··
State Totals 673 161.6 \ ‘\ | a
*;"‘—‘_ as
* "°'*= S··**a·=·*m**·*¤¤~¤¤ mm.
estimates are based upon Kentucky -. I---
Department of Mines and Minerals‘ SI M.
License data. ope me
** NOTE: Underground mine type and
production estimates are determined U d d
by me usooe-ern when rnanes " °'8*°“"   _,,
produce greater than 50 percent of =     _
their output by one of the underground  gg    
mine types listed above. 1 =' r ‘Em' I
Sources: Kentucky Department of Mines and “
Mnerals, Annual Ry, 1994. A U.S. DOE
Energy Infomation Adrrinistration, @ I - I-. I
rndum Annud, 1994. Shaft Mine
Source: U.S. DOE-EIA Coal Data: AReference, 1989. '

 I
U.S. Coal Production
Kentucky and U.S. Coal Production,* 1970 -1994 (millions ol tons)
Kentucky United Kentucky as
Year Eastern Westem Total States % of U.S.
1970 72.5 52.8 125.3 602.9 20.8
1971 71.6 47.8 119.4 552.2 21.6
1972 68.9 52.3 121.2 595.4 20.4
1973 74.0 53.7 127.6 591.7 21.6
1974 85.4 51.8 137.2 603.4 22.7
1975 87.3 56.4 143.6 648.4 22.1
1976 91.1 52.8 144.0 678.7 21.2
( 1977 94.0 52.3 146.3 691.3 21.2
1978 96.2 39.5 135.7 665.1 20.4
1979 104.1 42.5 146.5 777.9 18.8
1980 109.2 41.0 150.1 829.7 18.1
1961 117.9 39.7 157.6 823.8 19.1
· 1982 111.2 39.0 150.2 838.1 17.9
1983 95.6 35.6 131.2 782.1 16.8
1984 117.3 42.3 159.5 895.9 17.8
1985 113.3 39.0 152.3 883.6 17.2
1986 112.7 41.2 153.9 890.3 17.3
1987 119.9 45.3 165.2 918.8 18.0
1988 117.5 40.3 157.9 950.3 16.6
1989 125.7 41.6 167.4 980.7 17.1
1990 128.4 44.9 173.3 1,029.1 16.8
1991 117.2 41.8 159.0 996.0 16.0
1992 119.4 41.7 161.1 997.5 16.2
1993 120.2 36.1 156.3 945.4 16.5
1994 124.4 37.2 161.6 1,033.5 15.6
* NOTE: This is the oliicial U.S. DOE numbertor Kentucky. State and Federal numbers will ditter;
please see page 8 tor details.
U.S. Leading Coal Producers** 1994 1111116119
Rank State of Tons
Kentucky regained the number 2 ranking 1 wyoming 237.1
during 1993 but finished number 3 ln 1994. 2 w991 virginia 151.8
3 Kentucky 161.6
1200 4 Pennsylvania 62.2
’°°° ....    
2 ............. ..  
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E °°°   iii   ....   F’¤¤¤Sv•v¤¤i¤
· ==   .....   .....   ..................    
ig     .....   i;`   W· Wgiiiia
g 4m   ===   - --».·   .·-  
8     ..... . ........   ...4     liz N     ....    
0-   ‘‘``   .
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2°°   ..... .........  
  *·"m*
0
1970 1972 1974 1976 1978 1999 1992 1994 1999 1999 19K) 1992 1994
** NOTE: Wyoming was not one ot the top tive coal producers until 1978, when it surpassed
Wginia and Ohio, but is included before 1978 to show its rise to the leading coal-production
state.
Sources: U.S. DOE · Energy htormation Adrninistrationg Coal hdugy Annual, 1993-1994, Coal Production, 1977-
1992. U.S. Bureau ot Nlnes, I/inerals Yearbook, 1970-1976.

 Kentucky Production
Kentucky produced 168.5* mllllon tons of bltumlnous coal ln 1994, down from the
record of 179.4 mllllon tons set ln 1990.
`°° Q S"“’““  *V
160 I    
"° H ‘ * EKY
6. 120
.5      .    . 
6 ‘°° - . ....   WKY
  zz-   
E 80 . ....  .    
z   ..... 1 ............ 1 .. .   ..u   ..._   ...................   .
60  9   .__._.... ..    
    ’‘’  ’ ‘` i 5;. :;;  
40   5:-  
        =- -===  - ---*  
 
20  
1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994
* NOTE: State production numbers differ slightly from yearly federal U.S. DOE - Energy
information Administration (EIA) production numbers, due to minor differences in their methodology
(ie., clean coal versus raw coal). Please note whether Federal or State numbers are referenced when
using a value in this publication.
Source: Kentucky Department of Mines and Minerals, Annual R@, 1950-1994
Number of Mines and Mine Size - Production Range, 1994
There were 673 coal mines ln Kentucky during 1994.
Region Underground Surface Total # Mines Million Tons
Eastem Kentucky 401 206 607 gg prdduddd 515
Westem Kentucky 24 42 66 59 produced 41.6
  130 roduced 41.2
KENTUCKY total         gmduced  
258 produced 11.2
90 roduced 0.4
Sourcet U.S. DOE - Energy hfonnation Administration,  
C0a|hdu@xAnnual’1994 673 Mines with total production 161.6
Number of Mine Licenses in Kentucky**
The number of actual mines ls smaller than the final number of mine licenses issued
each year. This ls because several licenses can be Issued to one large multi-seam _
surface mine. A mine license ls renewed each year and a new license is required
within the current year when certain changes occur, such as change of: (1) company
or ownership; (2) company name; (3) operator or principal; or (4) mine type.
5000 [;] sunrltcs
,,,,0     UNDE R GROUND  
§ 3°°°   " 1
m  
E     l. .. . " . .      ..; a.;       4    Y
1000   ..._.,   =-»   
 ,   _’    
0  
1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994
** NOTE: Several licenses can be issued to one large multi-seam surface mine.
Source: Kentucky Department of Mines and Minerals, Annual Rggs, 1950-1994.

   County Production
There were 673 mines In Kentucky during 1994.
These 673 mines were issued 1,343 Kentucky mine  
licenses and produced 168.5 million tons.    
425 underground mines (563 licenses) accounted for  
61% of Kentucky's production and 248 surface mines .,  
(780 licenses) accounted for 39% of Kentucky's ··lIl |:t '  
production.  
Eastem Kentucky's coal production was 77% of the   =’e;  
total 1994 Kentucky coal production.
. Q Do YOII Know? How long would a coal train be that
carried all the coal produced in Kentucky in 1994?
Answer? A coal train stretching 15,000 mlles-—-from Kentucky across the
Atlantic Ocean, across Europe and Russia, and well past Japan would carry all
· the coal produced In Kentucky in 1994l
1994 Production by County and Type of Mine License*
Underground Surface Total
County Licenses Tonnage Licenses Tonnage Licenses Tonnage
sksmtn KENTUCKY
een 26 3,955,036 18 1,597,822 44 5,552,858
oreamin - - 55 5,066,322 55 5,066,822
Clay 2 86,019 12 502,547 14 588,566
Floyd 63 4,354,204 59 3,824,737 122 8,178,941
Greenup - - 1 9,881 1 9,881
Hanan 87 13,890,996 20 1,504,186 107 15,395,182
Jackson - - 3 88,793 3 88,793
Johnson 7 1,395,769 11 85,522 18 1,481,291
knou 44 7,068,356 76 3,736,506 120 10,804,862
Knox 25 807,670 13 278,614 38 1,086,284
Laurel - - 3 55,550 3 55,550
Lawrence - - 5 241,424 5 241,424
Lee - - 1 16,788 1 16,788
Leslie 12 6,819,055 14 1,468,110 26 8,287,165
Lercner 25 3,459,940 75 4,644,778 100 8,104,718
Maqonrn 1 56,231 11 576,332 12 632,563
Martin 34 9,840,071 24 5,021,168 58 14,861,239
Owsley . - 4 129,580 4 129,580
Peny 18 4,842,038 85 8,529,874 103 13,371,912
Pike 181 22,658,079 187 11,592,814 368 34,250,893
Pulaski - - 1 0 1 0
Whitley 14 710,435 41 763,817 55 1,474,252
" Wolfe - · 6 524,895 6 524,895
EKY Total 539 79,943,899 725 50,260,060 1,264 130,203959
WESTERN KENTUCKY
Butler ~ — 2 25,525 2 25,525
caioweil - - 1 0 1 0
Christian - - 1 380,393 1 380,393
Daviess - - 12 1,376,329 12 1,376,329
Henderson 4 1,361,140 3 1,759,661 7 3,120,801
Hopkins 8 3,533,776 11 5,856,810 19 9,390,586
McLean - - 2 65,199 2 65,199
Muhlenberg 1 1,533,129 7 895,103 8 2,428,232
onto 1 283,666 13 3,540,122 14 3,823,788
Union 8 6,414,724 - - 8 6,414,724
wenster 7 10,287,619 8 1,014,263 10 11,301,882
WKY Total 24 23,414,054 55 14,913,405 79 38,327,459
' KYTotals 563 103,357,953 780 65,173,465 1,343 168531,418
* NOTE: Several licenses can be issued to one large multi-seam surface mine.
Source: Kentucky Department of Mines and Minerals, Annual Rem; 1994. 9

 The Kentucky coal mlnlng lndustry has a current work force of approximately
23,368* people dlrectly employed ln coal mlnlng lobs. The Western Kentucky coal
fleld employs approximately 4,791 persons, whlle the Eastem Kentucky coal fleld
provldes 18,577 dlrect mlnlng |obs.
Kentucky’s Coal Mining Work Force, 1994
  Eastern Kentucky
  Coal Field
  Western Kentucky   S"m’°° 5728
  goal Field   Underground 12,849 -
  S"'*‘°° *503   Total 18,577
  mar 4,791   if .
  g$¢§@~l%
 ° ° % ¢» m
ww @% ¢°
% .»¤ Rvw an,
¥"¢ "‘¤*’l®’$#°°'¢ `
q  ,»,,, I  ndn A
Eastern Kentucky averaged 80% ot Kentucky’s coal mlnlng work force and
accounted for about 77% of Kentucky’s total coal productlon ln 1994.
Western Kentucky averaged 20% of Kentucky’s coal mlnlng work force and
accounted tor about 23% of Kentucky’s total coal production ln 1994.
Due to continued productlvlty galns, Kentucky malntalned 161.6 mllllon tons of
production durlng 1994 whlle dlrect mlnlng employment continued to decllne to less
than half the people directly employed ln coal mlnlng |obs ln 1981.
Kentucky Coal Mining Employment, 1979-1994
Westem Kentucky Eastem Kentucky Kentucky
Year Surface Underground Total Surface Underground Total Totals Q
1979 4,343 6,945 11,288 12,838 23,064 35,902 47,190
1980 3,995 7,879 11,874 11.819 22,702 34,521 46,395
1981 4,056 6,489 10,545 13,473 24,032 37,505 48,050 _,
1982 4,120 5,639 9,759 12,319 22,782 35,101 44,860
1983 3,415 4,918 8,333 10,485 17,615 28,100 36,433
1984 4,022 4,053 8,075 11,327 18,474 29.901 37,876
1985 9,421 4,294 7,715 10,516 18,583 29,099 36,814
1986 2,327 4,297 6,624 8,718 17,312 26,030 32,654
1987 2,345 4,605 6,950 8,740 16,900 25,640 32,590
1988 1,825 4,388 6,213 8,261 16,085 24,346 30,559
1989 1,870 4,166 6,036 8,034 16,586 24,620 30,656
1990 2,095 3,491 5,586 7,505 17,407 24,912 30,498
1991 1,910 3,603 5,513 6,251 14,878 21,129 26,642
1992 1,722 3,483 5,205 6,014 13,405 19,419 24,624
1993 1,887 3,465 5,352 5,683 13,028 18,711 24,063
1994 1,803 2,988 4,791 5,728 12,849 18,577 23,368
* NOTE: State employment numbers (page 14) differ from federal ElA numbers.
I 0 Source: U.S. DOE - ElA; Coal hdus_t1y Annual, 1993-1994, Coal Production, 1979-1992.

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