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Coal Production Demands in the Usa Usa the in Demands Coal Projected Production Meeting MEETING PRODUCTION PROJECTED COAL DEMANDS IN THE USA THE VIRGINIA CENTER FOR COAL AND ENERGY RESEARCH VIRGINIA POLYTECHNIC INSTITUTE AND StATE UNIVERSITY MEETING PROJECTED COAL PRODUCTION DEMANDS IN THE USA Upstream Issues, Challenges, and Strategies | The Virginia Center For Coal and EnergY Research U Virginia PolYtechnic Institute and State UniversitY pstream WWW.energY.vt.edu I ssues JanuarY 2009 , C hallenges , and S trategies Report Committee and ContriButing Authors Harold J. GlusKoter, Scientist Emeritus, U.S. Geological Survey Michael E. Karmis, Stonie Barker Professor of Mining and Minerals Engineering and Director of the Virginia Center for Coal and Energy Research, Virginia Tech (Report Committee Chair) Gerald H. Luttrell, Massey Professor of Mining and Minerals Engineering, Virginia Tech Raja V. Ramani, Emeritus George H. Jr. and Anne B. Deike Chair in Mining Engineering and Emeritus Professor of Mining and Geo-environmental Engineering, The Pennsylvania State University George F. Vance, J.E. Warren Distinguished Professor of Energy and the Environment, Department of Renewable Resources, University of Wyoming Committee StaFF John CraYnon, Research Doctoral Graduate Student, Department of Mining and Minerals Engineering, Virginia Tech Willis L. Gainer, Field Office Director (Ret.), Office of Surface Mining Reclamation and Enforcement, U.S. Department of the Interior National Commission on EnergY PolicY StaFF Sasha MacKler, Research Director Nate Gorence, Analyst See Appendix A for detailed biographies © 2009 Virginia PolYtechnic Institute and State UniversitY Virginia Tech does not discriminate against employees, students, or applicants for admission or employment on the basis of race, gender, disability, age, veteran status, national origin, religion, sexual orientation, or political affiliation. Anyone having questions concerning discrimination should contact the Office for Equal Opportunity. MEETING PROJECTED COAL PRODUCTION DEMANDS IN THE USA Upstream Issues, Challenges, and Strategies THE VIRGINIA CENTER FOR COAL AND ENERGY RESEARCH VIRGINIA POLYTECHNIC INSTITUTE AND StATE UNIVERSITY TABle OF Contents ForeWord ........................................................................................................................................................i PreFace ............................................................................................................................................................iii EXecutiVE SummarY ................................................................................................................................ 1 ChapteR 1. Introduction ..................................................................................................................13 1. SUMMARY ...................................................................................................................................................13 2. Coal in the U.S. EnergY SupplY ...................................................................................................14 3. HISTORICAL OVERVIEW .........................................................................................................................16 4. FUTURE DEMAND FOR COAL ..............................................................................................................18 5. COAL SYSTEM COMPONENTS .............................................................................................................20 6. COAL PRODUCTION UNCERTAINTIES ..............................................................................................20 7. THE ROLE OF COAL TRANSPORTATION ..........................................................................................22 8. SOCIETAL ISSUES AND COAL MINING ACCEPTANCE .................................................................24 9. ALTERNATIVES TO TRADITIONAL COAL MINING TECHNIQUES ...........................................25 10. THE STUDY AND REPORT ...................................................................................................................27 10.1 Scope of the Study ...........................................................................................................................27 10.2 The Study Process ............................................................................................................................28 10.3 Contribution of the Study and Report ......................................................................................29 ChapteR 2. Coal Resources and ReserVes ...............................................................................30 1. SUMMARY ...................................................................................................................................................30 2. INTRODUCTION .......................................................................................................................................31 2.1 Resources and Reserves: Terminology .........................................................................................31 2.2 Distinguishing Resources and Reserves .......................................................................................31 2.3 Value of Resources and Reserves ...................................................................................................32 2.4 Historical Perspective: Coal Resources of the United States ................................................33 2.5 From Resources to Reserves: Classification Systems ...............................................................35 2.6 Recent Studies that Address Coal Reserves and Resources ..................................................38 3. MAJOR FACTOR: THE NEED FOR INFORMATION ON COAL RESERVES ................................40 4. STUDY APPROACH...................................................................................................................................41 4.1 Traditional Coal Data Input for Resource Assessments .........................................................41 4.2 Available Coal Data ...........................................................................................................................41 4.3 Proprietary Sources of Coal Reserve Information ....................................................................43 4.4 Compiling and Analyzing Coal Resource Information and Assessing Reserves ..............43 5. ANALYZING COAL RESOURCES AND RESERVES ...........................................................................44 5.1 Coal Quantity and Geographic Location ....................................................................................44 5.2 Coal Ownership ..................................................................................................................................44 5.3 Integrating Coal Rank and Coal Quality Information in Defining Coal Reserves ..........45 5.4 Coal Quality and the Production of Coal in Western United States .................................51 5.5 Effect of Regulating Mercury Emissions on Coal Reserves ....................................................53 5.6 Calculating Coal Resources .............................................................................................................54 5.7 Coal Reserves Reported by Coal Companies .............................................................................57 5.8 Reserves and Methods of Coal Use...............................................................................................58 5.9 Underground Coal Gasification .....................................................................................................64 5.10 Resources and Reserves for Developing Technologies .........................................................65 6. CONCLUSIONS ..........................................................................................................................................66 ChapteR 3. MINING TechnologY and ResourcE Optimization .................................68 1. SUMMARY ...................................................................................................................................................68 2. OVERVIEW OF THE COAL MINING INDUSTRY ..............................................................................69 3. COAL MINING METHODS .....................................................................................................................71 3.1 Surface or Underground Mining? ..................................................................................................71 3.2 Surface Mining Methods ..................................................................................................................72 3.3 Underground Mining Methods ......................................................................................................79 3.4 Distribution of Production and Number of Mines in the U.S. by Mining Method .......84 4. THE PRESENT COAL INDUSTRY ...........................................................................................................88 4.1 Employment .........................................................................................................................................89 4.2 Mine Productivity ..............................................................................................................................89 4.3 Health and Safety ...............................................................................................................................90
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