NCTA Issue 1, 2011 by National Coal Transportation Association

ISSUE 1 | 2011

Featured Member:

Western Fuels Association

Uniquely Structured, Uniquely Effective

Dominion Terminal: Coal for the World

NCTA Scholarship Winners

Looking to lower your overall operating costs?

Is the big decision to Repair or Replace?

Do you manage a fleet of coal or aggregate hauling cars that are past due for preventive maintenance on their door operating systems? Do you have cars that are operating sporadically or not at all? Are you tired of costly spill cleanups due to vandalism or some other inadvertent operation of your doors? If so, you should consider replacing your door operating valves with new state-of-the-art Lexair Second Generation Railcar Valves. From an added benefits and features standpoint, it is less expensive and more cost effective to replace valves on older cars with our newer, improved design. Changing to these new valves with all their great features helps assure correct and proper operation of your cars. This action will assist you in lowering your overall costs and help you keep your “cost-per-mile” of operation as low as possible.

Second Generation Valve Features:

• Main valve element is based on our rugged “sliding shoe” construction – the same trouble-free design that has been used in our railcar valves for over two decades. • A sequenced mechanical lock maintains the valve in the “door close” position regardless of outside forces or vibration. • The locking feature is released only when an electrical or manual signal to shift has been received. • A visual indicator is operated via the lock mechanism that clearly shows whether the valve is in the “door close” position with the valve element locked in place or if the valve is in the unlocked or “door open” position. • Because they are mechanically locked in the “door close” position, the valves may be mounted in any position or orientation - the valve element does not have to be perpendicular to the rails. • The units can easily be modified so that they can be linked to ECP Brake Systems in the future for communication of valve position status. • The modular design allows the main valve unit to be removed/replaced in minutes without disturbing the electrical connection or plumbing when repair due to age or service conditions becomes necessary. • Self closing solenoid cover/junction box can be locked to prevent unauthorized access to manual overrides. • Our patented “Safety Check” technology (U.S. Patents 7,093,455 and 7,328,661) is available as a “no-charge” option. • Innovative lock/indicator features latest Lexair, Inc. technology (Patent Pending).

Typical Before Installation Photos

Typical After Installation Photos

Website: www.lexairinc.com E-mail: jjennings@lexairinc.com Ph: 859-255-5001 Fax: 859-255-6656

Contents

ISSUE 1 | 2011

Optimization Technology

Western Fuels Association

PUBLISHED BY: National Coal Transportation Association 4 W. Meadow Lark Lane Suite 100 Littleton, CO 80127-5718 Phone: 303-979-2798 Fax: 303-973-1848 www.nationalcoaltransportation.org Editor: Pat Scherzinger Phone: 303-993-7172 scherzinger@ nationalcoaltransportation.org Production By: Suckerpunch Creative Inc. info@suckerpunch.ca www.suckerpunch.ca

©2011 NCTA. All rights reserved. The contents of this publication may not be reproduced in whole or part, without the prior written consent of NCTA. The opinions expressed by the authors of the articles contained in Coal Transporter are those of the respective authors and do not necessarily represent the opinion of the NCTA or its member companies.

Dominion Terminal

FEATURES

DEPARTMENTS

Meet Your Board: Emily Regis

Message from the NCTA President – Betsy Monseu

Member Profile: Western Fuels Association

Dominion Terminal Operations

Message from the NCTA Executive Director – Tom Canter

Queensland Floods

NCTA Membership Benefits

M976 Study Report

NCTA Welcomes New Members

AAR Interchange Rules/Rule 41

NCTA Committee Updates

2010 NCTA Scholarship Recipients

54 Statistics

STB Update

Calendar of Events

NCTA in Washington

Members Sound Off

Optimization Technology

View from the Caboose

Reflections: John Hart

Membership List

Index to Advertisers

CONFERENCES 13

2010 Fall Meeting & Conference Recap Denver, Colorado, September 13-15, 2010

NCTA Spring General Conference Preview Colorado Springs, Colorado, April 24-27, 2011

2011 O & M Conference Announcement Incline Village, Nevada, June 13-15, 2011

COAL TRANSPORTER | 1

President’s Report / Betsy Monseu

President’s Report A Message from NCTA President, Betsy Monseu.

eadership. It’s a word I hear much more often than I did ten years ago. Leadership today is being defined, modeled, and taught in a variety of ways to a variety of people. This is occurring in businesses, schools, churches, and athletics - to name just a few places. In particular, children have so many opportunities to develop leadership skills that simply weren’t available to me or my peers when we were growing up. It’s gratifying to see young people in grade school, high school, and college being offered the chance to participate in classes and programs that actually teach these skills. It means that we’re not leaving leadership to happenstance with the future leaders of our businesses, our government, and our social programs. Rather, we’re purposefully developing it. One leadership concept that interests me is “Servant Leadership”. It’s something I have been thinking more and more about lately, though the phrase dates back a few decades. I see examples all around me, and certainly that extends to the NCTA. From our Executive Director to our Board of Directors to our Committee Chairpersons and Vice Chairpersons, it permeates the organization. What is it? The phrase “Servant Leadership” was coined by Robert Greenleaf in The Servant as Leader, in an

2 | COAL TRANSPORTER

essay he published in 1970. In that essay, he wrote: “The servant-leader is servant first…… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive……The leader-first and the servant-first are two extreme types. Between them there are shadings

ment, and problem-solving efforts over the years. Our staff and members make the organization what it is, and the time, dedication, and diligence of everyone who participates on committees or contributes in other ways are greatly appreciated. We have a number of initiatives ongoing, including a new website design to be rolled out soon. The NCTA actively promotes growth through our three annual confer-

The undertakings of NCTA, in its mission to inform and educate, are aligned with servant leadership. and blends that are part of the infinite variety of human nature.” The difference manifests itself in the care taken by the servant-first to make sure that other people’s highest priority needs are being served. The best test, and difficult to administer, is: Do those served grow…..?” Within NCTA, the answer to Robert Greenleaf ’s “best test” question is “yes”. There is desire and commitment exhibited within NCTA to continuously grow and improve. The undertakings of NCTA, in its mission to inform and educate, are aligned with servant leadership. It is a robust and relevant organization today as result of its outreach, develop-

ences. In 2011, we return to the beautiful Broadmoor in Colorado Springs for our Spring General Conference and to Denver’s Brown Palace Hotel for the 37th Annual Business Meeting and General Conference in the fall. The Operations and Maintenance Conference will be held in June at Lake Tahoe. These conferences provide learning and growth opportunities through presentations on issues and topics of importance to the entire coal supply chain, as well as offering the chance to make and renew business relationships. I look forward to seeing you at NCTA events this year. s

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Rexroth. Better railway technology for over a century. The railroad industry has relied on our pneumatic controls for more than 100 years. Our rugged SuperSpool™ valves and our custom cylinders with composite or steel tubing have been automating hopper doors for over 35 years. Rexroth technology keeps up with the demands of modern railways. The Drive & Control Company

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The Railway Educational Bureau (REB) offers independent study courses covering: • Freight car inspection and repair • Locomotive electrical and mechanical repair • Locomotive operation • Track maintenance • Basic railroad foundation • Metal trades • More!

3/10/11 10:55 AM

Independent Study courses offer you the ability to: • Enhance existing training programs • Present theory, techniques and knowledge to your employees • Standardize training for improved efficiency • Manage and document employees’ training • Eliminate training development costs • Provide cost effective training for your maintenance personnel

NCTA members receive a 20% discount off our lesson processing fee. Please call for more information. Mention “NCTA” to receive your discount.

The Railway Educational Bureau

800-228-9670 railwayeducationalbureau.com COAL TRANSPORTER | 3

Executive Director’s Message / Tom Canter

Mining, Electricity and National Wealth A Message from NCTA’s Executive Director, Tom Canter.

ining and electricity generation are fundamental to the creation of national wealth. There is much talk of a “new energy economy” that will not depend on fossil fuel, and that this magical economy must use significantly less energy. It is no surprise that the growing BRIC economies (Brazil, Russia, India, and China) and other fast-growing and wealth-creating economies are seeing double-digit growth in energy consumption. Almost all productive inventions in the last 100 years have relied on electricity to function (think radios, televisions, cell phones, washing machines, microwave ovens, etc.); therefore, the value of reliable, low cost, and affordable electricity should be obvious. NCTA members are daily contributing to the creation of national wealth by mining coal, transporting the coal to generating plants and steel mills, and producing the electricity and manufactured products for consumption. In short, we are in the process of creating tangible products that only exist because of our productive labor in extracting a natural resource and converting the resource to electricity. The United States remains in a period of economic challenge. The total number of Americans unemployed, under-employed, or no longer looking for employment is estimated to be between 16 and 20 percent of the eligible workforce. This stress on the populace follows the federal government’s redistribution of hundreds of billions of borrowed dollars called “stimulus” money. The stimulus

4 | COAL TRANSPORTER

endeavor was a classic misuse of capital considering that it favored the provision of services over the production of goods. The result has been the creation or saving of a highly disappointing number of jobs in the private sector with a resulting increase in unemployment rates. Yes, it is validation of Adam Smith’s theories from his tome, The Wealth of Nations, published in 1776 regarding the proper “division of labor” between natural resources and manufacturing. Sure enough, shining each other’s shoes may make for spiffy-looking shoes, but does not create wealth. The resulting supreme insult is to realize that the shoes aren’t even shiny anymore. Productive labor creates tangible goods for consumption and results in wealth creation. Labor that is unrelated to the production of goods does not create national wealth, even though such labor serves a legitimate need. It’s simple, we need to mine our natural resources, transport the resources to the manufacturer to create goods, which are used by a willing consumer. This new wealth provides a higher standard of living for all while yielding the opportunity to rise from poverty. Observe the BRIC economies and recognize the millions of people are no longer living in abject poverty. Unfortunately, politicians and some regulators are not observing the success of nations that are producing goods and wealth through efficient use of natural resources and energy. History has shown that politicians are susceptible to the temptation to take credit for redistributing exist-

ing wealth while inhibiting the creation of new wealth. The coal mining industry is now inhibited by government entities that are not issuing environmental permits on a timely and honest basis. Recently, we have even seen a capricious retraction of existing operating permits. Electric generators are being forced to expend precious capital to comply with ever more stringent environmental requirements, some of which are based on doubtful theories. Potential carbon taxes and carbon limiting regulations could require a recapitalization of our electric generation system resulting in skyrocketing costs and a corresponding decrease in wealth for the nation. My fear is that we are being a spendthrift with the wealth created by our parent’s generation. Even worse, we are passing debt to our children, so that we can defer paying our debts. Frankly, this is immoral. I am not against efficient and reasonable costs for alternative and renewable energy sources. Our industry should and will continue to be environmental stewards and will continue to reduce emissions from mining and electricity generation. However, it is not logical or prudent to eliminate a long-term domestic source of affordable energy such as coal. So, tell your neighbors, business associates, and your brother-in-law that your daily endeavors are increasing per capita wealth, providing a better future for your children, and enabling Grandma Olsen to enjoy her “golden” years. Have a safe day producing energy and wealth for the good people of North America. s

A NEW GENERATION OF PROGRESS PROVEN QUALITY. ADVANCED INNOVATION. THAT’S PROGRESS.

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www.progressrail.com

Meet Your Board / Emily Regis

MEET YOUR BOARD Emily Regis By Kate Tanquary

Emily Regis

Fuels Resource Administrator Arizona Electric Power Cooperative, Inc.

“I feel fortunate to be working through some of the most critical challenges to our industry with such a great group of people in the membership of NCTA.” - Emily Regis

6 | COAL TRANSPORTER

CTA board member Emily Regis is the Fuels Resource Administrator for Arizona Electric Power Cooperative, Inc. (AEPCO). Emily’s work extends from managing contracts for coal procurement and transportation, railcar leasing and railcar maintenance, logistics and planning of coal supply delivery, and cost forecasting and analysis. “It’s nice that I get to work at a smaller company where I get to be involved in all the aspects of coal procurement and delivery,” she says. “I can see the whole picture of producing electricity through what I do.” Though Emily has worked on numerous projects, she is proud of her work with AEPCO’s railcars. She was able to upgrade AEPCO’s older steel railcar set with new, higher capacity aluminum railcars that increased AEPCO’s loading capability and expanded AEPCO’s ability to purchase coal from more coal supply regions. This has had huge impact on cost savings, making the whole project a big step forward for the company. And her pride for her work extends into her involvement in the industry as a whole. Coal is “a good domestic industry; totally local – one of the few industries where the end product, electricity is made in the USA for use by its citizens.” AEPCO has been a member of the NCTA several years. Emily became involved with NCTA after taking on the position of fuels resource administrator in year 2000, and recently became one of NCTA’s newest board members in September of 2009. Prior to her election to the board, Emily was co-chair of the NCTA Education Committee. Emily decided to maintain her chair on the committee while she serves simultaneously on the board. Her dedication to the committee was motivated out of an acknowledgement of the need for organization and consistency, as well as by her personal support for the NCTA

scholarship initiative. She recalls, “I had just gotten started and I wanted to do a few things with it.” She enjoys talking to the students and reading about their accomplishments on their applications. “These young people are involved in so many things and are so motivated to succeed. They really inspire me”. Emily was born in Helena, Montana and grew up in Kansas City, MO and KS where her father was an artist and chairman of the ceramics department at the Kansas City Art Institute. Surrounded by an artistic family, Emily studied the flute from a young age and attended the Univeristy of Kansas and later, the University of Wyoming at Laramie where she obtained a Bachelor of Arts degree majoring in English Literature. Out of college, she worked for a local newspaper called the Laramie Daily Boomerang for 9 years before moving to Arizona with her husband Linas in 1994. Though her background is atypical of others in the industry, the skills she developed allowed her to be an excellent communicator and skilled at developing relationships. “This job is something I never expected to be doing,” she says. “I walked into it and I found out it was something I enjoyed doing.” Emily cites her managers at AEPCO as people who mentored her and made a big difference in helping her make a success of her position. Emily still pursues many opportunities to exercise her artistic talents. She continues to play the flute, and can be heard playing with the Pima College Chamber Orchestra in Tucson, Arizona. Emily also enjoys playing music with her husband of 17 years, Linas, who plays the guitar. They enjoy travel and try to plan trips to Europe whenever possible in between tending their garden and remodeling their home in St. David, AZ. Emily’s pick for best NCTA conference locale is the beautiful Napa Valley.s

Crown is Changing the “profile” of the industry!

Actual Compaction

Crown Coal CompaCtion, LLC is pleased to announce full scale on track testing in the Powder River Basin ongoing thru Spring of 2011.

Crown Products & Services, LLC 20 Third Avenue NW, Carmel, IN 46032 Phone: 317-564-4799 For More INForMATIoN CoNTACT:

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NCTA Membership Profile / Western Fuels Association

Western Fuels Association

estern Fuels Association, Inc. (Western Fuels) is a not-for-profit cooperative that currently supplies coal and transportation services to consumer-owned electric utilities throughout the Great Plains, Rocky Mountain and Southwest regions. Western Fuels is owned by its members, who in turn are owned by their customers making this non-profit enterprise consumer-driven from one end to the other. This unique structural relationship is free from the unintended roadblocks to good decision making inherent in the utility-regulator-ratepayer model. Established in 1973, Western Fuels was formed to help its rural electric cooperative and municipal utility members make the transition from their exclusive reliance on preferential Federal hydropower to energy portfolios that included new self-generated electricity. Utilities invested billions in state-of-the-art coal-fired power plants, coal mines, and coal transportation facilities while railroads and coal producers invested billions more to access and develop domestic coal reserves with much of the focus in the Powder River Basin of Wyoming and Montana.

Today Western Fuels moves over 17 million tons of coal annually and provides its members with diverse and extensive expertise in coal exploration, coal mining, coal procurement, rail car procurement and transportation management. Western Fuels has a staff of eight, including CEO Duane Richards, in its headquarters in Westminster, Colorado. Additional personnel performing both operational and management functions are located in Gillette, Wyoming, Marion, Illinois, Nucla, Colorado, and Grants, New Mexico.

One Size does not fit all

Western Fuels does not try to be all things to all people and offers three distinct classes of membership. Class A members enjoy having their full coal requirements managed by Western Fuels including servicing any new facilities if constructed in the future. Each Class A member appoints two representatives to the Western Fuels Board. Class B members entrust the requirements for an existing plant to Western Fuels but new

facilities are not automatically included. For a full board seat each Class A and B members must have annual requirements of at least 1 million tons. Class C membership does not involve Board Membership but Class C members have access to Western Fuelsâ&#x20AC;&#x2122; services on a consulting relationship on a fee for service basis. Western Fuels is governed by a Board of Directors consisting of 13 members which holds nine scheduled board meetings a year. The Board focuses on establishing policies and reviewing finances and operations while Western Fuels staff does the heavy lifting with developing and administering fuel procurement strategies for each memberâ&#x20AC;&#x2122;s coal fired generating facilities. Western Fuels coordinates all fuel procurement and rail contracting decisions with each member companyâ&#x20AC;&#x2122;s in-house fuel representative. Once the decisions regarding volume and term are made, the rail logistics staff members take over and ensure timely deliveries to each power plant. Contract administration is also performed by staff in Denver to ensure compliance for all contract operating and financial terms and conditions.

Western Fuels operates the Escalante-Western Railway in New Mexico

8 | COAL TRANSPORTER

Uniquely Structured, Uniquely Effective Working for Reliability and Economic Efficiency In providing services leading up to the loading point at the mine and continuing on to the unloading point at destination, Western Fuels is serious about its role in helping members keep electricity costs low by minimizing delivered coal costs. “No renewable-energy source is currently positioned to produce even 5 percent of the nation’s electricity anytime soon. Coal’s reliability translates into stable baseload power 24 hours a day, 365 days a year—coal keeps the lights on.” points out Western Fuels CEO Duane Richards. Western Fuels is involved in the entire coal procurement process including the preparation of requests for proposal, evaluation of the bid packages received, development of recommendations for members and the negotiations with coal suppliers. Unlike entities that have one group negotiate contacts and another group to administer them, Western Fuels does both. There is nothing like having to live with your mistakes to ensure you make progressively fewer over time and Western Fuels has been at this 38 years.

In addition to term agreements, Western Fuels monitors the over the counter market for coal purchase opportunities to increase flexibility and to fill the short term needs of its members. Similar steps are taken on the transportation side where contracts and tariffs are put in place to transport the coal to each generating facility. A big part of the business is the day to day rail management. Western Fuels staff develops and submits the member’s monthly coal requirements into the NCTA forecast. It schedules coal shipments and monitors train movements on a daily basis, providing a single point of contact with producers, railroads, and generating plants. By maintaining a presence in Gillette, Wyoming, Western Fuels can optimize the inspection, maintenance and repair of the fleet of over 1600 rail cars dedicated to its members’ use. Within driving distance of the major railcar repair facilities, the maintenance manager can ensure necessary repairs are made and these valuable assets remain in service. The decision to lease or buy rail equipment for a specific service is based on a member’s individual tax and financial situation. In addition to the sets leased or

owned by Western Fuels or its members, Western Fuels also manages one pooled trainset that provides members with the flexibility to meet demand when only a partial set is needed. While Western Fuels is generally thought to provide services exclusively rural electric cooperatives and municipal utilities, this however is not necessarily the case. For example, Western Fuels has provided railcars to Cargill Inc. under a railcar services agreement to haul coal to their corn-processing facility in Iowa.

Looking at the Business from Every Perspective In addition to its procurement activities, Western Fuels provides management oversight and technical support for both the Dry Fork Mine in Gillette, Wyoming and New Horizon Mine in Nucla, Colorado. Being both a buyer and producer of coal gives Western Fuels a perspective on the current coal market that few other organizations have. Throw in their operation of the Escalante-Western Railway in New Mexico – a short-haul line that runs

COAL TRANSPORTER | 9

approximately 40 miles between the Lee Ranch Mine and Tri-State Generation & Transmission Association’s Escalante Generating Station - and they have the trifecta of coal supply management experience. While not one of the major producers in the Powder River Basin when it comes to coal mining, they deal with the same issues of permitting, planning, production and safety. With engineers and geologists on staff, Western Fuels collaborates with outside consultants on permit applications and serves as a liaison to federal, state and local government agencies. Mine engineering services include mine planning, mining cost estimates, feasibility studies, and reserve verification. The mine managers report to CEO Duane Richards. At the Dry Fork Mine, preparations are under way to begin supplying coal to Basin Electric’s new Dry Fork Station, a 385-megawatt mine-mouth generation facility adjacent to the mine. The Dry Fork Station will take approximately 1.9 million tons annually. The Dry Fork mine produced 5.6 million tons of coal in 2010 with about 2.5 million tons delivered to the Laramie River Station and 1.5 million tons to PacifiCorp’s Dave Johnston Plant. Although the coal is only 8050-8100 Btu/lb on a good day, it has also been used successfully by Texas Municipal Power Agency, Lower Colorado River Authority, and the City of Hastings Nebraska. There are 75 employees at this well run mining operation. Western Fuels is currently in the process of permitting a new mine (New Horizon North Mine) in Nucla,

Mining operations are gearing up to serve the new Dry Fork Station

as some land, addressing subsidence issues and reclaiming the surface. Western Fuels has proven scheduled rail service can be a reality through its operation of the Escalante-Western Railway in New Mexico connecting Lee Ranch Mine to Escalante Station. Granted there are only 3 locomotives, a 52-car train, 40 miles of track, and no other traffic but a railroad has to start somewhere. A Western Fuels crew of four operates the train and maintains the locomotives and railcars in shop repair facilities located on site.

Standing up for Members Colorado which will replace the existing New Horizon Mine once its coal reserve is mined out some time in mid 2013. The existing New Horizon Mine supplies coal to Nucla Station in western Colorado which is owned and operated by Western Fuels’ member, Tri-State Generation and Transmission Association. Western Fuels is managing the geologic investigation including drilling, mapping and reserve assessment as well as the land and coal lease acquisition. While there is some federal land, in much of the area, the minerals were not severed and land men must negotiate with the property and mineral owners. In addition to its active mining operations, Western Fuels is in the process of closing the old Brushy Creek and Liberty mine underground operation near Marion, Illinois. They are salvaging mine facilities, selling waste coal as well

Western Fuels represents its members and their interests in many different organizations and associations. On the transportation side, Western Fuels is an active member of the National Coal Transportation Association and the Western Coal Traffic League (currently President of that organization). On the mining front, Western Fuels is a member of the Wyoming Mining Association, Colorado Mining Association, and the National Mining Association. A longtime supporter of CEED’s successful efforts at the state and regional level, Western Fuels continues to support CEED’s successor organization ACCCE as it takes on the difficult job of promoting coal on the national stage. Western Fuels has a long history of standing up for its members in negotiations, courtrooms and with lawmakers and regulators. Basin Electric and the other participants in the Laramie River Station received $120 million in reparations from the Burlington Northern Santa Fe Railway

www.westernfuels.org

WESTERN FUELS ASSOCIATION, INC. is a not-for-profit corporation providing coal procurement, rail transportation and rail car management services for the Association’s members and other customers located throughout the U.S. To discuss the benefits of membership or review the full list of services available from Western Fuels to assist you with managing your coal procurement and transportation needs please contact us at 303-254-3070, or visit us at www.westernfuels.org 10 | COAL TRANSPORTER

www.alphanr.com

INVESTING IN THE ENVIRONMENT... and RUNNING RIGHT

Did you know... Alpha Natural Resources has won numerous state and national recognitions, including the Greenlands award, West Virginiaâ&#x20AC;&#x2122;s top award for environmental excellence in reclamation.

We balance our investment in production with an investment in the environment. From planting half a million trees a year and building the ďŹ rst natural stream channel on a coal mine site in Virginia, to participating in leading-edge research on safe underground storage of greenhouse gas emissions from power plants, we are committed to doing more than our part.

Alpha Natural Resources | One Alpha Place | P.O. Box 2345 | Abingdon, VA 24212

“No renewable-energy source is positioned to produce even 5 percent of the nation’s electricity anytime soon. Coal’s reliability translates into stable baseload power 24 hours a day, 365 days a year—coal keeps the lights on.” - Duane Richards, Western Fuels Association’ CEO (BNSF). The reparations were the result of a rate complaint brought by Western Fuels in 2004 challenging the rail tariff rates imposed by the BNSF. In 2009 the Surface Transportation Board (STB) ruled in favor of Western Fuels. The STB ruling was a significant victory for captive shippers.

Allowing Members to Focus on the Future Western Fuels recognizes that multifaceted energy portfolios and clean-coal technologies will play a large role in securing the country’s future energy supply. Freed from the day to day tasks of insuring reliable low cost coal supplies, Western Fuels members can focus on that future and many are actively involved in cutting edge technologies. While members focus on their futures, Western Fuels’ future seems secure. While

coal is not flashy, it is the workhorse of the power industry. It is the slow and steady resource that wins the race, at least when it comes to economics and reliability. As a sign of Western Fuels’ reputation in its field of expertise, Western Fuels contracted to provide fuel-procurement services for the Sandy Creek power project currently under construction in Riesel, Texas. Western Fuels is assisting this 3.5 million ton/yr plant to procurement and contract for coal, rail transportation and railcars. In a world where organizations are moving away from coal politically and SarbanesOxley has limited the financial authority of many fuel managers, Western Fuels’ ability to manage fuel supplies stands out. And what may stand out even more, until January of this year, Western Fuels membership fees had not changed since 1987. How many associations can say that? s Images by Lee Buchsbaum

Western Fuels Association Members

Class A Members Basin Electric Power Cooperative Kansas City Board of Public Utilities Southern Minnesota Municipal Power Association Sunflower Electric Power Corporation Tri-State Generation & Transmission Association, Inc. Class B Members Sikeston Board of Municipal Utilities Class C Members Arizona Electric Power Cooperative Arkansas Electric Cooperative Corp. Arkansas River Power Authority Associated Electric Cooperative, Inc. City Utilities, Springfield MO Colorado Springs Utilities Dairyland Power Cooperative Department Of Utilities Fremont, NE Great River Energy Heartland Consumers Power District Lincoln Electric System Lower Colorado River Authority Missouri River Energy Services Nebraska Public Power Silicon Valley Power

The right equipment. The right terms. The right people. Taking your coal to market efficiently and reliably requires the right equipment. First Union Rail has just what you need: modern rail cars and experienced professionals who can offer reasonable leasing terms that make sense for your company. Let us help move your business forward with: Rail car financing and leasing for the coal industry • Reliable fleet management services • Modern, high-quality fleet Ready to learn more? Call today at 847-318-7575 Firstunionrail.com © 2011 Wells Fargo & Company. All rights reserved. First Union Rail Corp. is associated with Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance company. MC-2006

12 | COAL TRANSPORTER

NCTA 2010 Fall Conference / Denver, Colorado

Westin Tabor Center, Denver, Colorado September 13-15, 2010

NCTA 2010 Fall Conference

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he NCTA continued to offer “Conferences with Character” as it staged its 36th annual Business Meeting and General Conference, September 13-15, 2010 at the Westin Tabor Center in Denver, Colorado. The theme of this year’s conference was “It’s the Economy Stupid”. This phrase, made famous in the presidential campaign of 1992, resonates today when discussing energy prices and their effect on everyday people. Energy in all its forms is vital to our way of life. Domestic coal makes possible an abundance of low cost energy that fuels job creation and economic growth. The meeting began with Special Guest Speaker Major General (Retired) Vincent E. Boles and his message Leadership in “Times Like These”. General Boles knows a thing or two about both logistics and leadership after having moved an army and all its gear into a major theatre of operations. His message of leadership in these trying economic times was inspirational. Featured speakers also included Surface Transportation Board Commissioner Charles (Chip) Nottingham and Union Pacific Railroad Executive Vice President for Marketing and Sales, Jack Koraleski. In keeping with the theme of the conference, Eugene Trisko touched on energy cost impacts on American families. Ron Stovash, formerly both a NCTA Board Member and President & CEO of PinnOak Resources reflected on this four decades in the coal industry: and challenged the audience to be more active in their support of low cost coal. These were just two of the great speakers whose presentations can be found in the members section of the website. The conference was extremely well attended and participants took full advantage of the hosted receptions and customer events to network. This is a great part of the conference as NCTA members and associates are the most experienced and supportive in the industry. Note that the 37th Annual Business Meeting and Conference will not be at the Westin but will be held at the Brown Palace Hotel in Denver, September 12-14, 2011.

Todd Tranaus k

David Baker

COAL TRANSPORTER | 13

NCTA 2010 Fall Conference / Denver, Colorado

Dan Linklater and Mark Poepping Ken Baranowski, Dana Wallace, Arturo Machado

2010 FALL SPONSORS Fall Reception American Railcar Industries Enserco Energy FreightCar America Greenbrier Rail Services Kinder Morgan Lexair, Inc. Michael A. Nelson Midwest Industrial Supply Progress Rail Mechanical TBS International Wilson & Company

lley, Ken McCully

Ginny Farrow, Mike Ke

Fall Flyer FreightCar America

Lanyards Structural Composites of Indiana

Betty Jarosz, Jeff Johnson, Sara Janke, Jeff Maier, Barbara Oâ&#x20AC;&#x2122;Neill

14 | COAL TRANSPORTER

NCTA 2010 Fall Conference / Denver, Colorado

Chris Blazek

Ron Hankins

Mike Nelson

Major General Boles and Greg Henshaw STB Commissioner Nottingham

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nd Julie

Coburn

Tom Ebert and Julian Mohr Jr. COAL TRANSPORTER | 15

NCTA Membership Profile / xxxx

Membership Criteria Membership in the association shall be open to entities that are producers or consumers of coal produced in North America and other entities which are interested in its transportation and related issues. Entities or their affiliates whose primary business is providing transportation of coal by rail, barge, truck, pipeline slurry, or any other mode shall not be eligible for membership. One individual from each member company is designated to act as its representative. However, any individual employed by the member may participate in association activities.

Classes of Membership Regular Members:

Actual or potential producers or consumers of coal shall be entitled to apply to become voting members of the association in accordance with provisions in the bylaws and policies adopted by the Board of Directors.

Associate Members:

Individuals or entities who are interested in the transportation of coal or related issues, but who do not otherwise qualify for admission as voting members, may seek admission as a non-voting member. Associate members may serve and be empowered by the committee chair to vote on committees, but shall not have the right to vote in general or special meetings of NCTA.

Honorary Individual Members:

For good cause shown including but not limited to exemplary and outstanding service to the NCTA, a former Designated Representative of a Voting Member may be appointed an Honorary Individual Member of the National Coal Transportation Association. Honorary members may serve and be empowered to vote by the committee chair on committees, but do not have the right to vote in general or special meetings of NCTA. Membership dues and registration fees and other assessments of NCTA may be waived for Honorary Individual Members.

Membership Benefits

Your company may belong to more industry associations than just NCTA, but no other association provides the unique combination of education and real world results that come from NCTA membership. The financial impact associated with the procurement and delivery of coal demands this focus. NCTA maintains a high level of national prominence and credibility by participating in hearings, workshops, and symposiums, coordinating with ad hoc coalitions, providing resource material for governmental agencies, negotiating and educating on issues of general membership concern with carriers. 16 | COAL TRANSPORTER

Conferences with Character

For three days in the spring and fall of each year, NCTA provides coal industry professionals with an exclusive opportunity to share their outlook and knowledge and to exchange ideas. NCTA conferences provide its members the opportunity to learn from the experiences of others with similar responsibilities and from outside experts in an open and noncompetitive environment. Think of the ideas you can borrow, the pitfalls you can avoid and the valuable insight you can give and receive. Members attend all conference at a preferential rate.

Logistics and Planning Subcommittees

The Eastern and Western Logistics & Planning Subcommittees do much of the heavy lifting to solve problems with respect to the efficient operation of the coal delivery process. An important source of strength is the NCTA working committee system that is made possible by the dedication and expertise of our member representatives and the cooperation of the rail carriers. Each Logistics & Planning group meets at least twice annually. These working group meetings are open meetings and are free to attend.

Operations & Maintenance Subcommittee

For companies that do not have the resources, or have diminished resources to support company representation on industry and consensus-based technical panels, the O&M subcommittee helps to fill this gap. The annual conference program provides excellent information on new technologies and best practices for coal car design, maintenance, and repair.

Access to Railcar Leasing Exchange Board

NCTA members have exclusive access to a railcar leasing exchange board where excess train capacity can be posted for lease and where members can post railcar needs. With 86,000 private cars owned and operated by NCTA members, this is a good place to start when you need to adjust your capacity requirements.

Commitment to Education

Education is a hallmark of NCTA. NCTA educates its members through its annual conferences and publications.

NCTA also supports education through its scholarship program that awards scholarships to students in transportation at several major universities as well as to the dependent sons and daughters of employees of member companies.

Policy Insights

The Board of Directors continues to meet in Washington, D.C. each year to visit governmental agencies and other trade associations. Maintaining a presence in Washington enables NCTA to have input into federal policymaking and to better represent member concerns on federal issues. NCTA fosters relationships with key personnel and departments within the Department of Energy, the Department of Transportation, the Surface Transportation Board, the Federal Railroad Administration, and with various elected representatives. NCTA is an educational entity and does not officially lobby for or against legislation. However, we do actively participate in hearings and rulemaking proceedings of interest to our membership.

Membership in NCTA is a sound business decision with a solid return on investment

Communications

Through its ever growing web presence, NCTA communicates with the world about the coal industry and with NCTA member companies - linking potential customers to its members and linking its members to other useful Web sites throughout the Internet. A “Members Only” section provides detailed member contact information, valuable updates on current subcommittee initiatives, a railcar leasing marketplace and other items of interest exclusively to NCTA members. The conference archives date back to 2004, creating a virtual library of information on energy and transportation issues. The semi-annual Coal Transporter magazine focuses on getting to know people in the industry, as well as informing NCTA members and the coal industry as a whole of new and relevant events occurring within the organization. Membership in NCTA is a sound business decision with a solid return on investment and we look forward to serving you. A member company of the National Coal Transportation Association is not just another utility, coal supplier, rail equipment supplier, or coal related services organization. It is part of a tradition of excellence that through affiliation with NCTA, it signals exceptional commitment and obligation to the market, its customers and to the public.

Annual Dues

The annual dues for membership in NCTA are $1,250.00 payable in January of each year.

Application for Membership

All entities or persons desiring membership in the association should apply using the online application or contacting the NCTA for a membership application. The application will include the name, principal business activity and business address of the applicant and the full contact information for the applicant’s proposed Designated Representative. Application forms, along with payment of the annual dues, should be returned to the Executive Director of the Association. The Board of Directors shall approve or disapprove all applications for membership and shall make a determination as to the class of membership into which the applicant shall be admitted. s COAL TRANSPORTER | 17

New Member Announcement

NCTA WELCOMES ITS NEWEST MEMBERS!

he board of directors of the National Coal Transportation Association is pleased to announce that the applications for membership in NCTA of the following coal industry participants were approved. They join NCTAâ&#x20AC;&#x2122;s existing member companies working every day through NCTA to foster the cooperation needed to resolve issues faced by coal consumers, coal producers, transporters, rail equipment manufacturers. and services companies. A complete list of NCTA member companies can be found on NCTA Web site: www.nationalcoaltransportation.org/membership/members.html

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Infrastructure / Dominion Terminal

DOMINION TERM Jewel of American Coal Loading

Dominion Terminal from the stockpile area, showing conveyor systems leading to the twin outbound silos, then to the shiploader on the pier. The railroad car dumper is located to the right of the surge silo on the right side of the photo. The DTA office building is slightly to the right of center. 20 | COAL TRANSPORTER

D MINAL Terminals

ominion Terminal (DTA) is located in Newport News, VA near the mouth of the James River, where it opens into Chesapeake Bay. Visible from I-664, it is one of the cleanest ship loading terminals in North America. It can accommodate two ships on berth at any one time, and can load ships capable of holding up to 180,000 metric tons (twelve trains). Although it is located next to the pristine waters of Chesapeake Bay, in its 27-years of operation it has never been cited for a pollution violation, and it continues to work hard to protect the environment. In 2010 DTA shipped 14 million tons, and is on pace to ship even more in 2011. The terminal typically gets 14 complete turns (complete turnovers of stockpile inventory) per year. EMS-Tech, a Canada-based world leader in bulk material handling and storage systems, has told DTA management that the average is more on the order of 10 turns per year. Considering the number of coal types that may or may not be blended, and the number of ships loaded per year, 14 turns represents careful management and phenomenal performance. DTA is served by CSXT (former Chessie) Railroad, which usually brings in 100-150 rail cars at a time. If coal becomes frozen in rail cars during hard winter freezes, cars can be thawed prior to dumping. Coal then leaving the dump hopper may be sent directly to stockpiles or to waiting ships. DTA also has the capability of blending coals prior to ship loading.

History and Management

The first coal was dumped from rail cars at DTA on February 15th 1984; the first ship loaded was on or about March 1st, 1984. The grand opening was held May 15, 1984. The original owners of the terminal were competing coal producers operating as a consortium: Ashland Coal, Peabody Holding Company, Pittston, Utah International, and Westmoreland Coal. Of that group only Peabody remains. Starting with only 7.5% equity, Peabody has increased its equity to 37.5%. The other owners are Alpha Natural Resources, 40.625%, and Arch Coal, 21.875%. To the outside observer it may have seemed unlikely that coal competitors could work together without serious disagreement, yet none has occurred in the 27-year history of the terminal. DTA has, in fact, operated as a model of cooperation since its inception. That is not to say there have not been rough economic times, or that there have never been equipment breakdowns, but there has never been the type of ownership disagreement that would weaken or destroy the agreement, or weaken the ownersâ&#x20AC;&#x2122; resolve to make the partnership work. Management Committee meetings were initially held at DTA on a monthly basis for eight or nine years before going first to a schedule of every other month, and now to quarterly. Every decision was made by common assent. The owners have always exercised a laissez faire style of senior management. Quarterly meetings are usually held to review operations performance, capital improvement proposals, budgets, etc., but the owners have always left daily operations management to the professional staff.

World Class Terminal

DTA is a world class terminal in every sense of the phrase. It provides modern facilities for the rapid unloading of railroad coal cars, well-drained ground storage on a cement base, four miles of conveyor belts for rapid coal movement, stacker/reclaimers for moving coal into and out of the stockpile area, surge silos for blending, and a ship loader capable of loading two Capesize vessels to a draft of 15.2 meters. Most of the operations are done under man-aided computer control. All systems are designed for pollution control, and are operated to great success. Unloading time for unit trains at DTA is minimized by use of a tandem rotary car dumper which unloads two cars at a time. When coal is frozen, they may be thawed three at a time in a gasfired thaw shed prior to dumping. Large frozen masses that result from incomplete thawing may be broken apart by a small machine-mounted jackhammer. Thirteen miles of rail, including sufficient loop track for unit trains, and privately-owned locomotive power all combine to ensure rail cars are unloaded efficiently and quickly. DTAâ&#x20AC;&#x2122;s finger pier will accommodate two Panamax or Capesize vessels at a time, one on each side of the pier. If one vessel finds it necessary to stop loading [e.g., to take on bunkers] DTA is able COAL TRANSPORTER | 21

Wesley Simon-Parsons, Civil and Environmental Supervisor. Wes is responsible for the operation of the environmental control systems at DTA, as well as civil engineering systems and projects. Shown in the background is the IHI reclaimer in the digging mode.

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to reduce ship loading down time by switching between vessels. Vessels are required to come to berth bow-forward, and are required to leave the berth if violent storms are expected. If there is a risk of severe weather, if a vessel is under threat of arrest or attachment, or if other ship loading slowdowns or problems exist, the vessel is not permitted to dock at DTA. DTA provides adequate stockpile capacity to make sure trains can unload continuously upon arrival, and vessels can begin loading upon arrival at the terminal. Most of the coal loaded on ships is transferred from stockpiles, and not directly from trains. The stockpile area of 1.3 million tons is large enough to accommodate the needs of its owners, and is designed to minimize pollution from digging up base material.

Operating Procedures Rail cars are brought in from the coal fields (primarily Virginia and West Virginia) by CSXT, usually in unit trains averaging 125 cars in length. Average tonnage per car varies by track limitations, car type and coal loading facilities at the mines. It is typically in the range of 102-116 metric tons per car. Cars are placed on the loop track approach to the thaw shed and dump shed. Unless the coal is known to be frozen, they pass straight through the thaw shed and into the dump shed. In the dump shed two cars at a time are rotarydumped at a maximum rate of about 52 cars per minute, or 5300-5400 metric tons per minute. As each car is dumped

the coal is sprayed with recycled water from the sedimentation ponds, controlling coal dust generation at the source. Inventory weights for coal in stockpiles are based on railroad track scales. Coal is conveyed from the dump hopper to a 900-metric ton surge bin. Coal that enters the surge bin passes through a three-stage sampler. From the surge bin coal may be routed directly to a ship being loaded, or more commonly into the assigned stockpile area. The entire stockpile base is made of soil cement to control quality and to make

w e s t m o r e l a n d c o a l c o m pa n y

22 | COAL TRANSPORTER

A Tr u s t e d Na m e i n C o a l S i n c e 1 8 5 4

Seattle to St. Paul

“Bull” Pratt, DTA deck boss. Bull’s job is coordinating with the vessel being loaded. One of his main tasks is guiding the shiploader operator to accurately load each hold. He is shown here on the deck of the Kyzikos, a Greek Capesize vessel.

inventory control more accurate. Each of the owners has a stockpile area that is proportionate to his equity. Within that area he may have as many piles as he wishes, provided the efficient operation of the terminal is not compromised. The stockpile area has two IHI stacker/reclaimers and one IHI reclaimer. The booms are up to 210’ long; the operator sits at the end of the boom beside the bucket wheel so he can observe the operation of the wheel and avoid hitting the soil cement base. The operator works in close visual contact with a D-10 dozer

operator whose job is to keep the storage pad cleaned up behind the bucket wheel excavator, and to keep bottom coal pushed up to the reclaimer. The stacking rate is about 5300 metric tons per hour; the reclaim rate is about 5600 tons per hour. When coal is reclaimed from the stockpile, it travels over a system of belts to two 3600 ton surge silos capable of accurately blending two types of coal. Planned stockpiling and reclamation may extend the number of blended coals to three or more. A three-stage sampling system located at the output of the silos provides for final as-loaded quality measurements on the coal being loaded on board ship.

The pier, which is fendered to accept Panamax and Capesize vessels on both sides, measures 1162’ from bulkhead to pierhead. Vessels may approach the dock in a bow-forward aspect only; stern-forward approaches are not allowed due to potential damage from propeller backwash. Vessels larger than 305 meters LOA and 50 meters beam will not be accepted for loading. Also, DTA will not load a vessel to a draft of greater than 15.2 meters. Vessels must not exceed 173,000 deadweight tons, and must not have an air draft exceeding 24 meters. Before loading begins a pre-loading conference is held to go over the loading plan and procedures. Coal leaving the surge silos travels out the pier on a tripper belt that conveys the coal to the shiploader, which has a 145’ boom and is run by an operator in a

COAL TRANSPORTER | 23

high cabin mounted so that he has good visual control of the loading chute. The IHI shiploader travels, luffs and slews, and is capable of loading at a rate of 5900 metric tons per hour. However, this not an average loading rate, because the shiploader sometimes has to pause for ship’s officers to check weights, or to stop altogether while the ship takes on bunkers or makes repairs. At such times the shiploader may move to another ship and begin loading if it is docked and ready to receive coal.

Dust Abatement

In all its years of operation DTA has never exceeded its PM10 dust control limits. Shortly after it began operation DTA hired Simpson Weather Service to determine the weather conditions under which coal dust became airborne. Simpson’s learned that under certain complex combinations of wind direction, wind speed, humidity and temperature coal dust was more likely to become airborne. They developed an algorithm that was subsequently built into a computercontrolled system of rainbirds located strategically around the stockpiles. The dust control system consists of 75 rainbirds mounted on 30’ masts and 4 that are mounted on 80’ masts. Dust control for the 66 acres of stockpiles is now controlled from a central computer which may be set on automatic, or which may be operated manually. The rain birds are typically operated in sets of four or eight on 31-minute cycles, and are all controlled from a central computer. A typical cycle of the stockpile rainbirds will consume 31,000 gallons of water, of which less than 2% is contributed by the city water system. All conveyor belts except those in the stockpile area have wind deflectors. This is important because the conveyor belts rise high in the air and are moving quickly, increasing the potential for coal to become airborne. Coal dust generated by dumping rail cars is controlled by spraying the coal as it is being dumped. A typical two-car dumping will require 150 gallons of dust-control water spray, which may occasionally contain a surfactant if required. Each of the three surge silos utilizes bag filters to help control dust. Each of the conveyor belt transfer points uses spray headers on an asneeded basis. 24 | COAL TRANSPORTER

Water Pollution Controls

Water used for dust control is recycled from one of the sedimentation ponds used for storm and waste water runoff. The entire stockpile area is ringed with paved ditches, and there are paved ditches between the piles. These all dump into a main collector ditch, which has a weir to stop larger particles from entering the sedimentation ponds, and to slow the flow rate into the ponds. Even the parking lot, which borders the James River, is curbed to force storm water into the main collector ditch. All storm water is collected and sent to the sedimentation ponds. The three ponds hold a combined 10 million gallons. Caustic soda is used to control the pH to a range of 6-9. Total suspended solids are controlled to less than 50 milligrams per liter. All recycled and clarified water use and discharge is monitored carefully by DTA, and is strictly controlled by the Virginia Department of Environmental Quality. As one condition of permitting vessels to berth at its facility, DTA prohibits the discharge of rubbish, garbage, dunnage or other debris, as well as the pumping of sewage into Virginia waters. In the event of any such pollution caused by the vessel or its agents or employees, the vessel is required to immediately report the release as required by law and notify DTA.

Quality Control

DTA is designed so that the coal loaded on vessels is at least as good as it was when it arrived at the terminal. Magnetic separators located at the end of the conveyor leaving the dump hopper remove metallic trash such as roof bolts, rollers, rail spikes, and other such items. The reclaimer and dozer operators are always on the alert for metallic and non-metallic items that manage to elude the magnetic separators. Unlike terminals which may have base materials made of soil or shells, no pollution is added to the coal at DTA by digging into the base material in the reclaim operation. For coals that may have a tendency to spontaneously combust, that tendency is minimized by storing the coal on dry, well-drained cement instead of base materials that hold water in contact with the coal. Both incoming and outgoing samples may be taken and tested by SGS, which has an office on the property. SGS does all the salinity measurements and vessel draft surveys, both of which

are necessary to verify the weight of coal loaded on the vessel.

Terminal Business

DTA could be classified as a semi-private terminal, existing primarily for the service and use of its owners. However, each owner is entitled to put a certain tonnage through the terminal annually, and may make arrangements with non-owners for a specified use of its space and throughput. Terminal throughput is not sold by terminal management. DTA owners and management have long understood the basics of operating a coal terminal. Most of the costs of owning and operating any terminal are fixed costs, meaning they will exist at a fairly fixed level no matter what the tonnage throughput. They include such items as rent, debt and debt service, insurance, etc. Some of these so-called fixed costs are not truly fixed, and may have some element of variability. It is not uncommon for a coal terminal to have 80-to-85 percent of its costs categorized as “fixed”. The burden of carrying all the fixed costs of a terminal can often be too great for a single company to bear, and many investors have learned the hard way it is usually better to share ownership than to own the whole terminal. DTA owners are aware it is in the best interest of all owners to help maximize throughput rates through good stockpile management, maximizing tonnage loaded per ship, minimizing blend times, and coordinating closely with terminal management. It is extremely important for every owner to tell their coal mines not to ship coal to the terminal for indefinite storage. Coal sitting on a storage pad with no destination or loading plan drives throughput costs up, and can be very problematic for the involved owner if sitting on the storage pad unsold. s Dave Gambrel is the president of Logisticon, a coal transportation consultancy. He was senior transportation executive of a major mining company for 15 years, and served on the DTA Management Committee for ten years. He was a member of the USA component of the LAXT negotiating team, and formerly chaired the Western Coal Transportation Association. Email: bunkgambrel@earthlink.net or david.gambrel@gmail.com

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NCTA 2011 Spring Conference Preview / Colorado Springs, Colorado

NCTA 2011 Spring Conference The Broadmoor, Colorado Springs, Colorado | April 24-27, 2011

he NCTA Spring conference returns to the BROADMOOR in Colorado Springs for 2011. The meeting held here in 2008 remains the most well attended Spring Conference in NCTA history. Located on 3,000 lush acres at the foot of Rocky Mountains, the BROADMOOR is the longest-running consecutive winner of both the AAA Five-Diamond and the Mobil Travel Guide Five-Star awards. Among our featured speakers will be Jim Davidson, adventurer, expedition leader and author. Jim’s personal stories translate into lessons in resiliency. He knows what it is like to have a truly bad day and still overcome adversity. His new book co-authored with Kevin Vaughan, “The Ledge: An Adventure Story of Friendship & Survival on Mount Rainier”, is due out this summer.

26 | COAL TRANSPORTER

We also welcome back Surface Transportation Board Chairman Daniel Elliott III and look forward to hearing about changes in the Board and the challenges that lie ahead. The Colorado Springs area is rich in scenic beauty and history, with a large variety of local attractions. Consider a trip to the 14,110 foot summit of Pikes Peak on the Manitou and Pikes Peak Railway, the world’s highest cog railroad and highest train in the United States. At the top you will find spacious skies, purple mountain majesties, and donuts made using a 90 old high altitude recipe. For a shorter adventure check out the Garden of the Gods towering red sandstone rock formations for a hike or picnic, the World Figure Skating Hall of Fame adjacent to the Broadmoor, or the US Air Force Academy with its famous 17 spire cadet chapel.

REGISTRATION

Registration is required for each attendee at the NCTA Spring Meeting. The fee is $500.00 for attendees representing a member company and $655.00 for all other attendees when registering prior to April 1, 2011. After April 1st, an additional $50 fee will apply for all late registrants. All registrations by a nonmember company for more than three individuals will be registered at the member rate. There is a fee of $85.00 for spouses and guests attending the dinner on Monday evening. Due to the generous donations of our conference sponsors, the fee to participate in the 15th Annual NCTA Golf Tournament is only $90.00. The tournament will be held on the East Course which will also be host to the U.S. Women’s Open this July.

Sunday, April 24

ACCOMMODATIONS

The BRO DMOOR. This year’s hotel insider tip is simply, “Enjoy it”. When it comes to the service and surroundings, it clearly doesn’t get much better than this. This one of a kind resort has it all, including a storied history dating back to 1891 when it started life as a casino. When it was transformed into a grand hotel, it was intended to be one of the finest in the country. European and Oriental influences played heavily into its design, and an Old World feel remains. Its 600 guestrooms and 100 suites are located in the historic Main Building and the West Tower. The latter have balconies overlooking the golf course, many with great mountain and lake views. There is an 11,000-square-foot infinity edge swimming pool at the north end of the lake, an outdoor lap pool with mountain views and an indoor pool set beneath a stained glass skylight. Top-notch resort facilities include The Spa at the Broadmoor and The Broadmoor Tennis Complex. Additional amenities include bicycle rentals, stables, paddle boats and walking trails. The Broadmoor is located at 1 Lake Avenue, Colorado Springs, Colorado 80906. The property is anchored by Cheyenne Lake and has three golf courses: the original Broadmoor Nine (which later added another nine) by Donald Ross, A

5:30pm - 6:30pm Welcome Reception for Early Arrivals - Mountain View Terrace

Monday, April 25 12:30pm - 5:00pm Golf Tournament - East Course hosted by select Coal Producers 4:00pm - 6:00pm Registration a second course designed by Robert Trent Jones, Jr. and a third by Ed Seay and Arnold Palmer. The 15th Annual NCTA golf tournament will tee up on the East Course on Monday, April 25th.

RESERVATIONS: ROOM RATES PER DAY: 719-634-7711 or 1-866-837-9520 $199.00/day Single/Double Room Room rates are European plan and do not include lodging, city and state taxes of 9.4%, a Public Improvement Fee (PIF) of 2.25% or the resort fee of $16/ day. The block cutoff date for guaranteed reservations is April 8 with reservations accepted subject to availability after this date. Please make reservations early for this popular venue as NCTA sold out here in 2008. The NCTA rate is available for three days before and three days after our conference, subject to availability.

7:00pm - 9:30pm NCTA Dinner - Broadmoor Property

Tuesday, April 26 7:00am - 8:00am Continental Breakfast Rocky Mountain Foyer 8:00am - Noon General Session - Rocky Mountain Ballroom Lunch Individual Arrangement 1:30pm - 4:00pm Breakout Sessions/Working Groups Rocky Mountain Ballroom 2:00pm - 5:00pm NCTA Board of Directors Meeting Gaylord Boardroom

Wednesday, April 27 7:00am - 8:00am Continental Breakfast Rocky Mountain Foyer 8:00am - Noon General Session - Rocky Mountain Ballroom

COAL TRANSPORTER | 27

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Queensland floods:

Supply disruption causes rising prices By Jim Truman, Principal Metallurgical Coal Analyst for Wood Mackenzie

Potential production losses

Wood Mackenzieâ&#x20AC;&#x2122;s Coal Supply Service estimates the total monthly production of mines in the flood region at 14 Mt. Roughly half of the output consists of hard coking coal and the reminder split between semi-soft/semi-hard, ultra LV PCI and thermal coal. The key drivers that determine the economic severity of the supply disruption and subsequent metallurgical coal price movements caused by the Queensland floods include the following: GDP and steel production; availability and price of competing energy sources; stockpile levels of crude steel, coke and coal; the price of steel and implied profit to accommodate raw material price increases; the ability of Australian mines to offer substitute tonnes of semi-soft coal; and availability of production from other supply regions (largely Canada and the US).

Monthly production loss by coal type 8.0 7.0

Millions of tonnes

ith memories of the market disruption and spiking coal prices caused by the 2008 Queensland floods not yet faded, recent flooding in the same region has produced supply shortfalls and substantially higher prices for metallurgical coals in the global seaborne market. Indeed, the rainfall event has had an even greater market impact than the 2008 flood. By the end of December 2010, rainfall and flooding had exceeded 2008 levels, forcing many mines to be idled, rail service to be shut down, and most of the major coal producers to issue force majeure notices to customers. Wood Mackenzie estimates the 2010-11 flooding has reduced Australian metallurgical coal exports by between 14 and 20 Mt. The US, the historic swing supplier of seaborne metallurgical coal, is already exporting at high levels and may be unable to increase shipments as it did in 2008. That said, with Australian hard coking coal agreements at roughly US$300 per tonne, there is strong incentive for US suppliers with available metallurgical coal to look offshore for increased market opportunity.

7.0

6.0 5.0 4.0

3.0

3.0 2.0

2.0

Semi-soft/semi-hard

Ultra LV PCI

1.0 0.0

Hard Coking Coal

GDP and steel production are relatively strong

The rate of economic growth in the Asia-Pacific region is stronger now than it was when the 2008 flood occurred. A comparison of raw steel output from a few months before the two floods shows that production in the region has increased by about 10 Mt per month. This increase in production is carried by China, South Korea and India. In November 2007, only Japan and Taiwan produced at lower levels compared to November 2010. Due to the recent earthquake, Japanese steel demand will decline in the short term and increase as reconstruction proceeds.

Stockpile levels will determine immediate need

As demand looks relatively strong, the level of coal, coke and raw steel stockpiles will determine the ability of steelmakers to either get by in the short-term or be under pressure to quickly purchase replacement tonnage. The tsunami certainly reduced Japanâ&#x20AC;&#x2122;s stockpile levels.

...rainfall and flooding had exceeded 2008 levels, forcing many mines to be idled, rail service to be shut down, and most of the major coal producers to issue force majeure notices to customers. 30 | COAL TRANSPORTER

Thermal

Source: Wood Mackenzie Coal Supply Service

Annual GDP growth comparison % China Japan South Korea India Taiwan

2008 9.6 -1.2 2.3 5.1 0.1

2010 9.8 2.8 5.9 8.7 8.8

Raw steel production comparison (000 Tonnes) 2011 8.7 1.5 4.1 8.0 4.8

Nov 2007 40,161 10,120 4,304 4,565 1,838 60,988

China Japan South Korea India Taiwan Total

Source: Wood Mackenzie Macroeconomics Team

Nov 2010 50,173 8,984 5,150 5,565 1,370 71,242

Source: worldsteel; Wood Mackenzie Coal Market Service

Asian raw steel production peaked in April–May 2010, when stockpiles were at high levels. Between May and September 2010, raw steel production declined and stocks were drawn down. Since September, raw steel production has increased, but stockpiles are probably lower than April 2010 levels. Many steelmakers may be forced back into the market in the near term to purchase replacement coal tonnage. Steel prices are not as strong as mid-2008. According to data from the World Bank, the January 2010 global price of hot rolled coil was US$750/t. In February 2008, the average price for hot rolled coil was US$750/t, implying that steel companies could have about the same headroom to accommodate increases in raw material prices. However, in the months following the 2008 flood, hot rolled coil prices rose to about US$1,000 per tonne. Because of a lag in the rise in coking coal prices, steel producers were able to pass through more of the high costs for coal to customers. Steel companies are currently pushing prices upwards owing to the increases in raw material costs.

Australian semi-soft tonnes will shift from thermal market

Wood Mackenzie’s analysis shows that because hard coking coal was previously in scarce supply, steel producers are likely to increase volumes of lower quality coking coals to replace a portion

Other supply regions are constrained

Canada and the United States are the two main additional sources for hard coking coal into the region. Canadian mines have a freight advantage into Pacific markets. During 2010 the Ridley and Westshore terminals experienced issues that restricted export volumes for Teck Coal and Grande Cache. These problems have been addressed. Between 2007 and 2008, US producers increased metallurgical coal exports from about 20 Mt to 39 Mt as a result of flood related issues and port constraints in Australia. Prior to the

1,200

Monthly hot rolled coil prices 2008 to 2010

1,000

$US/ tonne

Source: World Bank data

of the lost tonnage. Some of this tonnage, especially semi-soft coking coals from Australia’s Hunter Valley, will be shifted from thermal markets, amplifying the shortage of those coals directly caused by the flooding and putting additional upwards pressure on thermal prices. The ability of these Hunter Valley coal producers to take advantage of the strong spot coal market and particularly high semi soft coal prices will be limited by their capacity to produce coal in excess of the volume that is already contractually committed. Supply is currently very tight in the Hunter Valley coalfields, with many buyers lifting high volumes under term contracts. Buyers are motivated by limited supply from Queensland and significantly lower contract prices compared to the current spot market coal prices.

800 600 400 200 0 Feb-08

May-08

Aug-08

Nov-08

Feb-09

May-09

Aug-09

Nov-09

Feb-10

May-10

Aug-10

Nov-10

COAL TRANSPORTER | 31

2010 flood, US coking coal exports were already at high levels, due to relatively strong prices. Wood Mackenzie’s estimate of metallurgical coal exports for 2010 is 50.5 Mt (47.6 Mt seaborne and 2.9 Mt to Canada). It will be harder for the US to increase output starting from the level of 50.0 Mt compared to the situation in 2008. Most of the US East Coast railroads and ports are running at levels close to capacity. However, there are a few US operations that are expanding production and export capacity. In December 2010,

32 | COAL TRANSPORTER

Walter Energy began producing from a second longwall at its No. 7 mine in Alabama. The company expects annual production to increase approximately 1.5 Mt in 2011 from this addition. On December 21, 2010, Walters Energy purchased the Mobile River Terminal, which will provide adequate capacity to load the additional longwall tonnage for export. CONSOL and XCoal, who is CONSOL’s sales representative for all Asian business, are expanding the effective export capacity through the Baltimore Terminal. The company will

Most of the US East Coast railroads and ports are running at levels close to capacity.

expand this port by 30% in 2011/2012. Based on the most recent monthly peak production, the annualized capacity is now about 14 Mt. Therefore, a 30% increase would add about 4.2 Mtpa. In addition to the planned physical expansion at the port, CONSOL is improving the infrastructure at the Bailey mine to increase the turn-around time for export bound trains. XCoal has been creative in partially loading cape-sized vessels with Pittsburgh seam metallurgical coal at Baltimore and loading 55,000 to 70,000 T belted self-unloading vessels at either Baltimore or Hampton Roads. The two vessels meet offshore from Nova Scotia, where the smaller ship tops off the capsized vessel. The use of larger ships at Baltimore has contributed towards an upwards creep in the capacity of that port. In 2010, Norfolk Southern loaded 15.6 Mt of export coal at Lambert’s Point. By adding very little manpower and resources, the export capacity could be increased to 30 Mt. However, the railroad had difficulties moving the 2010 tonnage and without additional power and other adjustments Wood Mackenzie is doubtful that Norfolk Southern can significantly increase the rail capacity to reach port. In 2011, Xcoal plans to ship 50 to 55 of these capsized vessels. Cline Mining is re-developing the New Elk mine in Colorado. This operation is expected to reach full the full capacity of 2.7 Mt by the end of 2011. As the majority of this coal is planned for

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the export market, Cline Mining leased 18 acres of storage space at the Port of Corpus Christi Authority of Texas.

Price comparison to 2008 flood

A reasonable method to estimate the potential price impact is to re-examine the market responses to the floods that occurred in 2008. The 2008 flood resulted in the loss of approximately 15 Mt of production, similar to the volume Wood Mackenzie estimates was lost in 2011. In 2008, the majority of seaborne metallurgical coal was traded under long-term contracts with prices fixed on an annual basis according to the Japanese Fiscal Year (JFY) that commences on April first. The Japanese benchmark price for JFY 2007 (1st April 2007 to 31st March 2008) was US$98 per tonne. The 2008 floods occurred in January and February, just before the negotiations for the following year contracts began. Hard coking coal spot prices rose and the annual price for long term contracted tonnage was fixed at US$300/tonne, more than three times the benchmark price for the previous year. In the period

between May and August 2008, spot prices continued to rise and reached US$350 to US$375 per tonne. Then, the fear of supply availability eased and by end of calendar year 2008 spot prices were US$130 to US$140 per tonne. In JFY 2010 prices for a significant volume of long-term contracted metallurgical coal supply were fixed on a quarterly basis. The Japanese benchmark price for January through March

on steel producers to seek alternative steel production methods which do not rely on coking coal (DRI for example). The flooding in Queensland that began in December 2010 has been greater than the flooding event in early 2008. The mines in this region currently produce about 14 Mt per month, the majority of which is exported as metallurgical coal. Most of the customers for this output are steel makers in the

The 2008 flood resulted in the loss of approximately 15 Mt of production, similar to the volume Wood Mackenzie estimates was lost in 2011. 2010 was settled in December 2009 at US$225 per tonne. In early 2011 spot prices for hard coking coal increased to US$300 to 400 per tonne. The supply shortage caused by the flood pushed 1Q 2011 hard coking coal prices to US$330 per tonne. However, extended periods of high coking coal prices could lead to reduced steel output in the short run and in the longer term increase the pressure

Asia-Pacific region. Because the Asian economies are growing at a rate stronger than in 2008 and raw steel stockpiles were worked down during the middle of the year, metallurgical coal prices exceeded the levels reached following the 2008 flood. Because coal prices have been at relative high levels throughout 2010, most supply regions have already increased export volumes and are working at near capacity. It will be more difficult after this event for metallurgical coal suppliers to increase output. Prior to the Japanese earthquake, domestic stockpile levels were sufficient to fulfill coke production until approximately April. Although the tsunami further reduced stockpile levels, the reduction in short-term demand will alleviate the immediate need for deliveries. Overall, the supply disruption has induced hard coking coal prices for JFY 1Q 2011 to increase to about US$330 per tonne. As more normal production rates return, prices should settle somewhat from this peak. s Editors Note: The bulk of this article was submitted before the March 11 earthquake and tsunami that stuck Japan. Insufficient time was available to fully assess the impact of these events before publication.

34 | COAL TRANSPORTER

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NCTA COMMITTEE

UPDATES

NCTA Committee work is at the heart of the Association. The committees provide valuable information and education to members, foster best practices, improve communications among the parties, and keep members up-to-date on new rulings and technologies. This is where members get payback many times over for their annual membership fees.

Eastern Logistics & Planning

The Eastern Logistics and Planning Committee’s next meeting is scheduled for May 19th at the Marriott Baltimore Inner Harbor at Camden Yards. Chairman Jan Figgins (AEP) and Vice Chairman Edwin Fisher (ICG) are busy planning the program which is turning into a day long event. Operational updates by the CSX and Norfolk Southern have already been confirmed. Also presenting are Daniel Vaughn of ICAP United Inc., discussing coal mergers and acquisitions and Gene Kitts of ICG on current issues related to the OSM and EPA. Check for updates to the agenda on the NCTA website. Following the morning presentations and committee discussions, CONSOL Energy has agreed to provide a tour of their nearby CNX Pier. Located on 200 acres along the north shore of the Patapsco River, CONSOL Energy’s terminal in the Port of Baltimore is the only East Coast terminal served by two rail lines – Norfolk Southern and CSX Transportation. The terminal has ground storage for more than 1.1 million tons of coal and can load approximately 12 million tons of coal per year.

Western Logistics & Planning

The Western Logistics and Planning Committee met February 17th in Entergy’s offices in The Woodlands, Texas, located just north of Houston. Both the BNSF and the Union Pacific were on hand to provide updates on operational performance and near term programs related to their coal business. Brian Gamble of Simmons & Company International presented their latest analysis of the coal market. Executive Director Tom Canter spoke to STB Docket EP 705 under which the STN will explore the current state of competition in the railroad industry and

EL&P will meet May 19 in Baltimore

Lunch for this meeting will be provided either at the hotel or at the pier’s waterfront picnic area which is within sight of Ft. McHenry. Thursday evening, Alpha Natural Resources will host an evening of baseball at Camden Yards with the hometown Baltimore Orioles taking on the New York Yankees. It will be a great opportunity to network and enjoy America’s “national pastime”. s

examine possible policy alternatives to facilitate more competition, where appropriate. The group then divided up into three breakout sessions to have more in depth discussions on the NCTA Forecasting Process, the aggregation of producers forecasts for next month train loadings, and dust mitigation. The next meeting of the Western Logistics and Planning Committee will be in August 2011. For input and ideas for this meeting, please contact Chairman Greg Key (Ameren) or ViceChairman Kathy Brown (Arch Coal). s

A breakout session at the WL&P meeting in Houston

36 | COAL TRANSPORTER

Locomotives Railcars Sales Leasing Parts

Operations and Maintenance

The Operations and Maintenance Committee remains very active, developing new ways to communicate, sharing expertise on operating rules and regulations and exploring issues relating to car maintenance concerns and costs. The committee was instrumental in promoting and hosting the inaugural NCTA webinar in late January. In this webinar, Glenn Stoner of Colorado Springs Utilities presented an assessment of CSU’s efforts to determine a root cause for some unusual cross tie damage to their railcars. Twenty-eight individuals participated in the webinar which was offered at no cost to members. The Operations and Maintenance Committee intends to host webinars at least quarterly. If you have topics you would like to see covered or you would be willing to participate as a presenter, please contact Gayle TenBrink of Trinity Rail (gayle.tenbrink@trin.net) who is heading up the ongoing effort or Committee Chairman John Casto (castoj@firstenergycorp.com). In keeping with the NCTA’s educational mission, the O&M committee worked with the Railway Education Bureau to secure a discount for NCTA Members off the Bureau’s lesson processing fee. The discount does not include the price of the books used in the courses. See the Railway Education Bureau’s advertisement on page 3 for further information on the discount. The 2011 Operations and Maintenance Conference is scheduled for June 13-15, 2011 at the Hyatt Regency Lake Tahoe in Incline Village, Nevada. Just 34 miles from the Reno/ Tahoe International Airport via the Mount Rose Highway, Incline Village is located on the lake’s north shore. The committee is hard at work on the agenda that will be packed with the latest information for our member’s 86,000 privately held cars. s

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COAL TRANSPORTER | 37

M-976 Study Report By Robin Andersen, Manager-Mechanical Services, Mitsui Rail Capital, LLC

Why Made 60 Wheels & M-976 Trucks

hortly after placing a number of 2005 and 2006 built sets of rotary coal gondolas equipped with M-976 trucks into service it was observed that there was a trend of premature wheel flange wear occurring on these cars. Initial follow-up inspections not only showed the wheel wear but also unusual brake beam positioning within the trucks. There was a consistent pattern where for example a #1 beam would be shifted hard in one direction and the #2 beam would be shifted similarly in the opposite direction. This was leading to a condition where brake beam heads and shoes were making contact with wheel flanges and actually wearing the brake beam heads and brake shoes to the contour of the wheel. The preliminary thought was that this brake beam head contact with the wheel flange was the cause for the wear but subsequent testing and research is now pointing to possible truck and wheelset alignment as the culprit. There have been several theories on the cause of this brake beam shifting ranging from brake rigging alignment to increased braking forces in recent years. While the brake beam movement is likely not the root cause of the wheel wear, it is a consistent symptom of the condition and is an obvious place for one to inspect to determine if the condition exists in a fleet of cars and to what extent. The condition appears to exist in 100 ton M-976 equipped cars and while we have seen symptoms in various car types it seems to be most prevalent in aluminum coal gondolas. Wheel wear is similar regardless of truck type and brake shoe composition. All cars to date in Mitsui’s coal fleet had body mounted brakes, but Mitsui has retrofitted a previous bad actor with truck mounted brakes to determine if that would make a difference. Follow-up inspections on this car are up-coming. To illustrate the significance of this situation, Mitsui had observed various fleets of pre M-976 equipped gondola cars that had virtually no why made ‘60’ wheel change outs in their first 400,000 miles of life and we are now seeing thin flange change outs in some cases in excess of 150 per 120 car unit trains in their initial 400,000 miles of life in M-976 equipped cars. 38 | COAL TRANSPORTER

Pictures are of the same brake beam/wheelset. Note brake beam movement into the wheel flange of one wheel and away from the flange on the other wheel of this wheelset. Mitsui did approach TTCI about the subject and their researchers did take an interest and have performed some equipment teardowns and data research. The current situation at TTCI seems to be on hold in lieu of funds being allocated for further research and testing. To further ensure AARâ&#x20AC;&#x2122;s attention to the subject, Mitsui submit-

ted a request to the AARâ&#x20AC;&#x2122;s Engineering Equipment Committee to remove the elastomeric bearing adapters from its fleet as we have not seen this wheel wear condition in any of the pre M-976 fleets. To date no adapter conversions have been performed. Mitsui is continuing to work with TTCI and other s in this investigation

to find the root cause and are currently evaluating a variety of modifications to mitigate wheel flange wear. We would ask other NCTA members if they too are experiencing this condition to please submit data to John Casto, Chairman NCTA operations and Maintenance Committee, to Mitsui Rail Capital, or directly to TTCI. s

COAL TRANSPORTER | 39

NCTA 2011 Operations and Maintenance Conference / Preview

2011 Operations &

Maintenance Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada

June 13-15, 2011

CTA Operations & Maintenance Committee is pleased to announce its annual conference June 13-15, 2011 at the Hyatt Regency Lake Tahoe at Incline Village, Nevada. Early prosperity at Lake Tahoe can be attributed to the regionâ&#x20AC;&#x2122;s roots in rail and mining. Incline Village was named after the incline railway that served the area in the late 1800s. Timber was needed for mining the Comstock Lode, the first major discovery of silver ore in the U.S., located under what is now Virginia City, Nevada. To meet this need, the Sierra Nevada Wood and Lumber Company placed the timber around Lake Tahoe on the incline railway where it was taken up 1,400 feet and then dropped by a gravity flume down the eastern side of the mountains. The conference will have nearly 10 hours of plenary sessions dedicated to covering the technology, design, maintenance, operations, and repair of railcars in unit train service. We will continue our longstanding tradition of hosting a private car owner roundtable discussion. The conference will feature all the usual events including an opening night reception, continental breakfast, dinner for attendees and guests on Tuesday evening, and will conclude with the annual golf tournament.

REGISTRATION

Registration is required for each attendee at the O&M conference. The conference is open to all NCTA members regardless of whether you have participated actively in the ongoing work of the O&M committee. The conference fee is $360 for members and $510 for nonmembers. After May 21st an additional fee of $50 will be added for late registrants. The registration fee covers the registration packet of information, admission to all meeting proceedings, the welcoming reception on Monday evening, continental breakfast on Tuesday and Wednesday, dinner on Tuesday night, and all refreshment breaks. There is a charge for each guest of a registrant that participates in the Tuesday dinner and for golf. 40 | COAL TRANSPORTER

SPONSORSHIPS

Conference sponsorship opportunities are available at three levels of support - Platinum $2,500, Gold $1,500, and Silver $1,000. Please contact Tom Canter at 303-979-2798 or by email to tom@nationalcoaltransportation.org for additional details on sponsorships and company recognition.

Monday, June 13

Tuesday, June 14

Wednesday, June 15

8:30 a.m. - 11:30 a.m. Private Car Owners Roundtable

7:30 p.m. - 8:00 a.m. Continental Breakfast

7:30 a.m. - 8:00 a.m. Continental Breakfast

11:30 a.m. - 1:00 p.m. Lunch by Individual Arrangement

8:00 a.m. - 12:00 p.m. General Conference

8:00 a.m. - 11:30 p.m. General Conference

12:00 p.m. - 1:30 p.m. Lunch by Individual Arrangement

1:30 p.m. - 6:00 p.m. Optional Golf Tournament

1:00 p.m. - 3:00 p.m. Private Car Owners Roundtable 6:00 p.m. - 7:00 p.m. Welcoming Reception

1:30 p.m. - 5:00 p.m. General Conference 6:00 p.m. - 9:30 p.m. Dinner – On the shore of Lake Tahoe

ACCOMMODATIONS

Located on the Nevada side of beautiful Lake Tahoe, the four-diamond Hyatt Regency Lake Tahoe Resort is just 34 miles from Reno International Airport. Nestled within the Sierra Mountain Range, the stunning alpine paradise surrounding this lakeside hotel is the ideal setting for a summer meeting. Summer activities are numerous. One can take a lazy sail on the Hyatt’s Sierra Cloud Catamaran or for the more adventurous, rent your own water craft or mountain bike. A self-guided hike along the historic Flume Trail, offers up panoramic views of Lake Tahoe, small streams crossing the pathway and an abundance of wildflowers. After any of these activities, one can ease tired muscles with a deep-tissue massage in the Hyatt’s world-class spa. For those who want to learn more about the spectacular lake, the nearby Tahoe Environmental Research Center provides a look into the ecology of Lake Tahoe, with exhibits and educational activities. RESERVATIONS: (800) 688-5253 ROOM RATES PER DAY: $195.00 Single/Double The cutoff date for the NCTA room block is May 11, 2011. The guaranteed check-in time is 4:00 PM and check-out time is 12:00 noon. The Hyatt is located at 111 Country Club Drive, Incline Village, Nevada, 89451. s COAL TRANSPORTER | 41

AAR Interchange Rules / Rule 41

Field Manual of the AAR Interchange Rules

Rule 41 Overview

By Jerry Bohacik, Director Rail Operations, GATX

heels on a railcar are simply two metal disks mounted to an axle that rotate on an axis that … WRONG!! Wheels are two metal disks mounted to an axle but “simple”, not railcar wheels. Railcar or Freight car wheels are complex products of extensive engineering that enable our railcars to move from point A to point B consuming a large portion of our maintenance budgets. Did you know that the average wheel/axle set has about 115+ parts plus a lubrication agent? Did you know that there are 91 Why Made Codes used throughout the entire AAR Field Manual and 40 of them are specific to wheels? Some of the more frequent Why Made Codes that appear on wheels are; 60- Thin Flange, 61- WILD 80 Kips<90 Kips, 62-Flange Vertical, 63-Tread Worn Hollow, 64-Flange High, 65- WILD 90 or> Kips, 73-Rim Thin, 75-Tread Shelled, 76-Tread Build-up, 78-Tread Slid Flat, 96-Acoustic Bearing, and 97-Loose Backing Ring. Though all are defects, the codes that you want to see are 64-High Flange and 73-Thin Rim because that means that your wheels actually wore out and you obtained the full life without a life shortening defect. What do you know about your wheels, the AAR Wheel Rules, and what you can do? As are most rules, Rule 41 is segregated into multiple sections; A) Cause For Renewal B) Correct Repairs C) Recondition Requirements D) Welding Requirements E) General information F) Billing Repair Data Requirements

A) Cause For Renewal

This section of the rule identifies the condition of a component that would require that the component be replaced because of specific guidelines. Within this section there are categorizations of when a wheel must be replaced; 1. Condemnable at Any Time 2. Condemnable When Car is on Shop or Repair Track for Any Reason Cause for renewal is a host of conditions in which most conditions are identified by performing a visual inspection and many of the conditions are determined with the assistance of specially designed gages. The one condition that may not be possible to be detected by either a visual inspection or by using a gage is an out of round wheel. An out of round wheel is determined by its impact at the rail interface. Located throughout North America are over 145 Wheel Impact Load Detectors sights know as WILD Detectors. These detectors monitor wheels as they roll across and measure the impact to the rail in 1,000 pound increments known as a KIP. An out of round wheel that experiences an impact of 90,000 pounds (90 kips) or greater is “Condemnable at Any Time”, and 80,000 pounds (80 kips) or greater is “Condemnable When Car is on Shop or Repair Track for Any Reason”. As previously noted, a condemnable kip reading can be attributable to a defect that is not visible. As a car owner, you

Wheel Parts List 42 | COAL TRANSPORTER

should always ensure that all wheels that are replaced with Why Made 61 & 65 had an open appropriate alert at the time of repair. In addition to WILD detectors, the technology for inspecting the profile of a wheel is already being tested today that could replace the above mentioned gauges and visual inspection.

B) Correct Repairs

Correct Repairs can be summarized into a few points of interest. The wheel must be manufactured in an approved facility. The wheel must correctly replace the removed wheel by referencing the correct repair cross-reference charts meaning the correct size and type of wheel must applied to the railcar. In addition, EHMS must be referenced for every wheel being replaced regardless of reason and any open alerts must be closed upon wheel replacement.

C) Recondition Requirements

Recondition requirements are the guidelines for wheel shops including shop certification and wheel condemning limits. Not too much here for a car owner other than a possible requirement exceeding the allowable limits.

D) Welding Requirements

No welding is allowed on wheels. It may be of interest to know that an improperly applied grounding lead attached to a railcar could cause bearing arc and ruin the bearings.

E) General information

This is general information indicating how to identify wheels by their markings, marking removed wheels, data handling, and wheel handling.

F) Billing Repair Data Requirements This section governs the billing requirements for the Billing Repair Card. It’s the Where (on the car), Why (it was replaced), What (was defective; wheel plate, bearing, axle, etc.), and What (was applied). Though all of these are very important there are a few items to note

in an effort to control your fleet cost. As mentioned above, make sure that there was an open EHMS WILD alert if the wheel was replaced for why made 61 or 65. Also, if the job code is for a new wheel, make sure that the “Applied” wheel data supports a new wheel charge. An example would be if the “Applied Wheel Side Scale Reading” is 20, the

wheel that was applied was not a new wheel since a new wheel is 24/16ths (for a 1-wear wheel) and should be 24 not 20. Wheels can consume greater than 50% of our maintenance budgets, so in an effort to obtain their full life they require monitoring and tangent efforts. Tread conditioning brake shoes can help in reducing some of the condemning tread conditions, but in addition, brake systems must be well maintained and monitored for trending to prevent premature wheel replacement. s

Wheel Parts List

COAL TRANSPORTER | 43

Surface Transportation Board / Update

STB Update Begeman Nominated to Join STB

urface Transportation Board Vice Chairman Charles “Chip” Nottingham resigned March 18th, fulfilling previously announced plans to leave. President Obama has nominated Ann Begeman, the minority staff director of the Senate Committee on Commerce, Science and Transportation, to succeed Nottingham. The nomination, made in December, still must be confirmed by the Senate. In a statement released March 1 by the STB, Mr. Nottingham said “I am deeply honored and grateful to have been appointed by President Bush and to have served in his administration,” Nottingham said. “It has also been an honor to serve in President Obama’s administration. I owe a debt of gratitude to my colleagues on the Board, Chairman Dan Elliott and Commissioner Frank Mulvey, as well as to the Board’s exemplary career staff. Working together in a bipartisan manner, I believe that we achieved outstanding results overseeing the freight railroad industry and the other transportation industry sectors under our jurisdiction.” According to the White House press release, Ann Begeman has been the Minority Staff Director of the Senate Committee on Commerce, Science, and Transportation since 2009. She rejoined the Commerce Committee in May 2009 as a Professional Staff Member after serving as the Legislative Director to Senator John McCain from 2004 to 2009. From 1995 to 2004, Ms. Begeman held several positions on the Commerce Committee, including Senior Professional Staff Member and Deputy Staff Director. In her time on the Committee, she has advised Members on multiple surface transportation issues, including rail, motor carrier, and pipeline safety matters, and has worked on many legislative initiatives, including the ICC Termination Act, which created the Surface Transportation Board; creation of the Federal Motor Carrier Safety Administration; and legislation to improve pipeline safety. Prior to working on the Committee, she served as a Legislative Assistant for Senator Larry Pressler. From 1988-1992, Ms. Begeman also served as Senior Benefits Specialist at First American Bankshares, Inc. She received her B.S. in Business Administration from the University of South Dakota.

44 | COAL TRANSPORTER

The STB Looks at Competition in the Railroad Industry

n January 11, 2011 the Surface Transportation Board opened Docket No. EP 705 Competition in the Railroad Industry. Under this proceeding, the Surface Transportation Board is seeking written comments and will hold a public hearing to examine the current state of competition in the railroad industry. The docket cites seven specific areas that should be the focus of the parties’ comments, testimony, and statements for the hearing. These areas include: 1. The Financial State of the Railroad Industry. Comments are sought on the economic state of the railroad industry which has changed significantly since the passage of the Staggers Act. 2-4. Parties are invited to discuss how to construe specific provisions provision in light of current transportation market conditions. These include 49 U.S.C. § 10705 (alternative through routes); 49 U.S.C. § 11102(a) (terminal facilities access); and 49 U.S.C. § 11102(c) (reciprocal switching agreements). 5. Bottleneck Rates. Parties are invited to discuss whether the Board could and should change its precedent finding only narrow authority to compel a railroad to quote a separately challengeable rate for a portion of a movement. 6. Access Pricing. If the Board were to modify its competitive access rules, it would also need to address the access price. 7. Impact. Finally, the STB invites comments on the positive and negative impact any proposed change would have on the railroad industry, the shipper community, and the economy as a whole. Finally someone cares about unintended consequences. Written comments for Docket No. EP 705 are now due by April 12, 2011, with replies due on May 27, 2011. Notices of intent to participate in the hearing are due by June 10, 2011. The public hearing will be held June 22, 2011. The hearing will begin at 9:30 a.m., in the Surface Transportation Board Hearing Room, at 395 E Street, SW, in Washington, D.C. s

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NCTA / Scholarship Announcements

2010 Scholarship Recipients The NCTA awarded four scholarships to children of the employees of NCTA member companies at its annual fall conference. These are the talented and hard-working recipients.

Kelsey J. Kotur University of Missouri Industrial & Manufacturing Systems Engineering Kelsey Kotur is a two-time winner of one of NCTA’s four annual scholarships. With only one year left in her undergraduate degree, Kelsey is still pursuing multiple educational goals. First, she intends to capitalize on her past experiences as a packaging engineer co-op at Anheuser-Busch Inc., and a towel converting intern at Procter and Gamble’s Family Care Plant by working at Procter and Gamble’s corporate office in Global Supply Network Operations during the summer of 2011. Kelsey intends to work in manufacturing, supply chain design, or transportation logistics when she graduates from the University of Missouri Crosby MBA program in May 2012. Kelsey has discovered through her internships that she enjoys learning new technology, solving problems and focusing on results, all of which are fundamental engineering skills. With her hard work and determination, Kelsey hopes to combine her leadership skills and work ethic to successfully interact with people and technology to solve problems and deliver results. s

Joseph Zimmerman North Dakota State University Industrial Engineering and Management Joseph Zimmerman is an Engineering undergraduate at North Dakota State University who is interested in the movement of goods and materials within the energy industry. Joseph has already gained experience in logistics and industry during his internship at Case New Holland during the summer of 2010. Joseph’s education goals include graduating in four years with a GPA of 3.9 or higher and then to continue his education by taking night classes until he receives his MBA. Joseph not only has excelled in the class room, but is also active within his school and community. Joseph is a member of the men’s golf team, intramural basketball and men’s bible study and also attends Industrial Engineering Institutional meetings and events. Joseph also volunteers by teaching junior golf lessons at Fargo Country Club. Joseph expects to obtain his engineering license after obtaining the necessary work experience after graduation. s

46 | COAL TRANSPORTER

Nicholas D. Molzahn University of Wisconsin Chemical and Biological Engineering Nicholas Molzahn is an undergraduate at University of Wisconsin pursuing a bachelor’s degree in Chemical and Biological Engineering. Nicholas’ goal after graduation is to obtain a postgraduate degree in Chemical Engineering or a related field. Nicholas intends to focus his educational goals on development of future fuels, including fuels derived from coal gasification, with his primary career aspiration being to work in an area that involves our nation’s energy supply. Nicholas has already had the experience of working for an electric power utility during the summer 2009 and the winter break of 2009-2010 at Wisconsin Public Service Corporation (WPSC). During the summer of 2010 Nicholas worked at WPSC in the Energy Supply-Operations department performing various jobs in support of the fossil plant operations. Nicholas also plans to intern at Electro –Motive Diesel, Inc. during the summer of 2011. Nicholas believes that in order for the nation to get past the problems posed by reliance on foreign oil, we need to dedicate ourselves to finding a practical solution from domestic resources. Since coal is the most prevalent domestic energy source, it must play a key role in solving our future energy needs. In addition to his outstanding academic record, Nicholas also spends many hours devoted to volunteering in his community. Nicholas’ interests also include outdoor sports and spending time with friends and family. s

Megan E. Reece Saint Mary’s College, Notre Dame Political Science and Social Work Megan Reece is a junior at Saint Mary’s college in Notre Dame, Indiana where she is pursuing her Bachelor’s degree in Political Science with a minor in Sociology. Megan would eventually like to earn a Master’s Degree in Public Policy or Administration and perhaps earn a PhD or a law degree. Megan has decided she is very interested in the political connection that companies have with government, and would like to pursue a career as a lobbyist lawyer or government liaison for energy companies. This decision came about after she spent time shadowing the head lobbyist lawyer for American Electric Power in Washington D.C. and also the lobbyist lawyer for Indiana Michigan Power Company in Indianapolis. Megan was very interested in the level of knowledge and expertise needed by a lobbyist lawyer to successfully execute his or her job. Megan believes that with the rapidly growing field of energy, competent and passionate people are needed to get behind the new laws of the country and move it in the right direction. Megan hopes to be one of those people. s

COAL TRANSPORTER | 47

NCTA / The Washington Board Trip

Calm after the Storm The

The Board of Directors Visits Washington

Largely driven by concerns about jobs and the economy, the election made the perfect backdrop to the NCTA’s efforts in supporting the nation’s most economic energy resource supply chain. 48 | COAL TRANSPORTER

he NCTA Board of Directors and members of the Operations and Maintenance Executive Committee made their annual visit to Washington during the week following the November elections. It was relatively calm in Washington in spite of the fact that Republicans had just retaken 63 seats in the U.S. House of Representatives, thus recapturing the majority. This was the largest seat change since 1948 and the largest for any midterm election since the 1938. Largely driven by concerns about jobs and the economy, the election made the perfect backdrop to the NCTA’s efforts in supporting the nation’s most economic energy resource supply chain. The group split up more than ever before to meet with as many people as possible, not to divide and conquer but to educate and be educated. Meetings began on Monday morning with a small delegation of early arrivals visited with Senator John Barrasso’s principal advisor on Energy & Natural Resources on Capitol Hill.. Senator Barasso (R-WY) is an orthopedic surgeon serving on two committees important to coal producers and consumers; Energy and Natural Resources, and Environment & Public Works. He is also on the Foreign Relations Committee and is Vice Chair of the Indian Affairs Committee. He is the junior senator from Wyoming, but has already shown himself to be a strong supporter of coal and a sound energy policy. He has vigorously opposed any Cap and Trade bill which would place economic burdens on carbon based energy. Again this year, NCTA hosted lunch for an outstanding group of guests representing a spectrum of work and opinion on the challenges facing the coal and utility industries. Each of the participants gave a short synopsis of concerns, issues, and events of interest. This year attendees had a special presentation by the American Coalition for Clean Coal Energy on their experience with the use of social media. Groups and firms represented at this now traditional luncheon included CURE. National Mining Association, GLG Law, Slover and Loftus, L. E. Peabody, ACCCE, Maxeefish, Thompson Hine, Hellerworx, Arch Coal, and the American Chemistry Council.

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Tuesday was a sunny and crisp day in Washington and the group was ready to go in spite of a board meeting that ran late Monday evening. The walk to the Association of American Railroads (AAR) was quite enjoyable after spending most of Monday in meeting rooms. This was NCTA’s annual meeting with AAR President Ed Hamberger, John Wetzel, VP of Congressional Affairs and selected staff at AAR headquarters. Discussions in this meeting are always worthwhile and the NCTA appreciates their hospitality. While NCTA members don’t always agree with AAR positions, its support for coal as a viable fuel for electricity generation is a common interest. A new issue to discuss this year was the political push for High Speed Passenger Rail and Positive Train Control and their effects on freight traffic. A Surface Transportation Board is just a one block walk from the AAR. Here the group met individually with Chairman Daniel Elliott III and Commissioner Frank Mulvey. While the STB cannot comment on any current cases or complaints, it is valuable to review procedures, to get philosophical insights, and to reiterate the importance of coal to the rail industry and the U.S. economy. Issues for shippers remain the same –calculation of rate of return, obligation to serve, bottlenecks and paper barriers, unilateral tariffs thru AAR rules, private car owner costs, and rail service. Following lunch on the run, the

group did a three way split to cover more ground and accommodate the availability of the parties. One group went back to Capitol Hill to meet with staff in the office of Senator Jay Rockefeller (D-WV). Senator Rockefeller is Chair of the Senate Transportation Committee. He has continued to push rail reform legislation over many years. He is receptive to captive shipper concerns, but less than aggressive on opposing cap and trade. A second group went to the Department of Energy for presentations on natural gas with particular emphasis on shale gas and an update on renewable energy. The

With everything going on in Washington today, maybe the timing of the NCTA visit was not really during the calm after the storm. Maybe it would be better described as in the eye of the hurricane. annual energy outlook which is a usual topic of discussion was not due to be completed until the end of November. The third group headed over to the Federal Railroad Administration (FRA) where Robert Lambrecht, a speaker at the annual Operations and Maintenance Conference in Coeur d’Alene, put together an extensive educational program. Topics covered included bridge inspection requirements, ECP brake update, the National Rail Plan, Booze Allen ECP report, high speed rail and its effect on coal, positive train con-

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trol, and safety initiatives for grade crossings. The more technical issues were cover first with the policy items covered after the group meeting with DOE arrived. The final meeting of the day was with the National Rural Electric Cooperative Association (NRECA) headquartered in Arlington, Virginia. Glenn English, Chief Executive Officer at NRECA addressed several areas of regulation or legislation of interest to the NRECA including climate change legislation, rail transportation issues and legislation, healthcare issues for utilities, and renewable mandates.

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Wednesday’s meetings were focused NCTA’s private car owner issues beginning with Ed Merlis, a lobbyist for the North American Freight Car Association (NAFCA). NAFCA represents 592,000 privately-marked freight cars of all types and aggressively advocates for the rights of their owners. NAFCA has individual members, many of whom are very familiar faces at NCTA Conferences. The NCTA and NAFCA have common cause on protection of private car owner interests. After another trek to the AAR, the remaining NCTA delegation met with Tom Stahura who coordinates interchange rule processes and AAR committee meetings. The group tackled an extensive list of discussion topics previously supplied by the O&M committee. The last meeting of the 2010 Washington visits was NCTA’s first with the Rail Supply Institute (RSI). Many of the Associate Members of NCTA are active members of RSI. RSI conducts a major trade show for the industry every fourth year in Chicago and represents its members in Washington. It has been four months since the NCTA visited Washington and two since the 112th United States Congress was convened. With everything going on in Washington today, maybe the timing of the NCTA visit was not really during the calm after the storm. Maybe it would be better described as in the eye of the hurricane. s

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Coal Supply Chain / Tips and Strategies

Optimization: By Phil Ciezak, QMASTOR

52 | COAL TRANSPORTER

growing trend in the mining industry both domestically and abroad is the use of software systems to integrate, automate and optimize the coal value chain. Historically, coal supply chains have largely been regarded as silo’s, whereby producers, transport providers, utilities & terminals although collaborating, still continue to observe problems with supply/demand balancing and transport bottlenecks. This leads to the core issue: The right product/ blend is not available at the right place at the right time. With ever increasing complexity in the coal sector, including ever changing market conditions, legislation mandates and rationalization via mergers and acquisitions, a systems approach is required to improve coal supply chains, both on the producers and buyers sides. Benefits of collaboration and optimization are found in areas such as improved planning and decision making, better quality control through detailed coal tracking and stockpile modelling, reduced operations and logistics costs, improved inventory management and reconciliation as well as automation of routine data entry and processing tasks. One such company maximizing their supply chain is leading hard coking coal producer and exporter Jim Walter Resources, a division of Walter Energy, Inc. Mr Randy Craver, Director of Logistics commented “We recognized the need to improve our information systems including optimization tools to unlock the value in our coal chain. We use QMASTOR systems to plan, schedule and track every ton of coal produced, transported and shipped. This includes integration to our rail provider CSX and other automation improvements to aid with near real time management of our operations. Optimization technology enables our company to maximize tonnage throughput when market demand and commodity prices dictate, as well as focussing on cost reduction strategies like minimizing demurrage.” Mr Trent Bagnall, Managing Director of Denver based QMASTOR, a software company specializing in mining supply chain optimization, suggests “The use of optimization throughout the whole of mining supply chain is not as developed as people would expect. There are a number of companies and institutions working to deliver these high return on investment solutions for the industry. For me it’s one of the really exciting areas in the mining IT space at the moment.” Information silos built up over time are increasingly being addressed, according to Bagnall. He said standardization of information and communication systems – not necessarily through one vendor, but perhaps the same vendor list within a large corporation or over multiple mine sites – allows users to migrate between company operations and still use the same system at each site. “Generally I still see a best of breed approach is preferred,” he said. “While this on paper looks to be a good approach it relies on

The key to unlocking value in the coal chain A number of mining companies are examining the autothe vendors providing excellent interoperability via improved intemation and centralization of their operations, “Once you can gration such as adopting an SOA architecture or at least providing control and integrate you can automate,” he said. “Automation, good interfaces such as web services to make the best of breed however, is relatively useless without optimization. I see optimizaapproach work. Removing the data silos can’t really be achieved tion as a key to unlocking real value in without the integration component the chain. Certainly optimization is being being relatively seamless.” carried out in planning and operations Bagnall believes the next steps in “Optimization technology enables tools, however, fully integrated tools opthe evolution of mining systems revolve timizing the whole supply chain are rare. around the key tenets of improved our company to maximize tonnage A number of companies, both miners integration, rapid reconciliation of and vendors, are currently examining the planning-versus-actuals, centralization, throughput when market demand possibilities. Historically the companies and optimization. “Historically mining and institutions providing such solutions companies have a number of planning and commodity prices dictate...” provided purely mathematical approaches systems that provide plans for individual components of the chain – mine models, -Randy Craver to the problem with limited understanding of the mining supply chain or its mine schedules, dispatch planning, dynamic intricacies. I believe that this is one area where mining plant operations, stockpiles, logistics, etc – and these all provide a companies have the ability to unlock significant value, particularly reasonable planning framework for the operation. But as the adage as the logistics of moving material is becoming more constrained says, the plans are out of date as soon as the first actual movement and more complex every day.” s of tons occurs.”

YEARS

COAL TRANSPORTER | 53

STATS AT A

GLANCE

One picture is worth

a thousand words

Regional Coal Mining Employment (2009) 40,000 35,000

E M P L O Y M E N T

30,000

Underground

Surface

25,000 20,000 15,000 10,000

Sources: Coal Mining Employment data from MSHA. Includes coal mine employees, refuse contractors and contractors. Coal Plant Employment data from NMA for the year 2007. Assumed coal plant employment flat over the period graphed.

5,000 0

Appalachian

Interior

Western

Direct Coal Employment Good Jobs 200,000 180,000 160,000

E M P L O Y M E N T

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

2002

2003

2004

2005

Coal Mining Employment

54 | COAL TRANSPORTER

2006

2007

Coal Plant Employment

2008

2009

Source: Energy Information Administration. Excludes contractors and prep plants reporting less than 5,000 employee hours.

Calendar of Events 2011

April 24-27, 2011 Spring General Conference The Broadmoor, Colorado Springs, Colorado May 19, 2011 Eastern Logistics and Planning Committee Meeting Marriott Inner Harbor at Camden Yards, Baltimore, Maryland June 14-16, 2011 Operations and Maintenance Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada June 25, 2011 Advertising and Editorial Deadline for Issue 2 2011 of the Coal Transporter Magazine.

2012

Fall 2011 Presentation of NCTA Scholarship Awards: South Dakota School of Mines & Technology University of Arizona University of West Virginia University of Wyoming David L. Laffere Scholarship Three At-Large Scholarships September 12-14, 2011 Thirty-Seventh Annual Business Meeting and Conference Brown Palace Hotel, Denver, Colorado November 9-10, 2011 Board of Directors Meeting and Washington Visits December 20, 2011 Receipt at NCTA office of all re-certification forms for the UMLER Fee Waiver for Calendar Year 2012

January 21, 2012 Advertising and Editorial Deadline for Issue 1 2012 of the Coal Transporter Magazine.

June 11-13, 2012 Operations and Maintenance Conference Hershey Lodge, Hershey, Pennsylvania

April 14-19, 2012 Spring General Conference The Greenbrier, White Sulphur Springs, West Virginia

September 10-12, 2012 Thirty-Eighth Annual Business Meeting and Conference Westin Tabor Center, Denver, Colorado

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NCTA / Member Sound-Off

Member Sound-Off

The Coal Transporter asked members and associates to offer their opinions on a current topic in the coal industry.

Social Media. It is powerful enough to foster a revolution for democracy. It appears to be the way to go for those that like to follow a celebrity crush or the latest celebrity meltdown. But does it make sense for businesses out to create jobs and create wealth? The jury seems to still be out on this. The NCTA currently does not have a presence on any social media websites but as any ongoing enterprise should, the association constantly seeks new ways to communicate with members and enhance its ability to carry out its educational mission. The Coal Transporter recently conducted a survey among members and associates regarding their use of social media and their opinions of the use of social media in the business environment. Here are the results of the survey and a selection of some of the comments received. Our thanks go to all of those who participated.

Here is what people are saying …. “Limited access by a few companies will limit the ability of using this media for education by NCTA.” Jack Reid, Seminole Electric Cooperative, Inc. “Social media is for the most part is an unrestricted environment. This can be a good thing if a positive comment is posted about you or your company or a very bad thing if negative comments (especially ones that are incorrect, unwarranted or not substantiated) get posted. It is like most things in cyberspace, very easily placed there, but very hard to remove.” John Jennings, Lexair, Inc. “I do not use social media - too needy. Constantly bombarded with requests for friends, etc. I have not discerned a business value yet.” Steve Witkowski, Texas Municipal Power Agency “If postings to social media sites are made just for the purpose of sending a daily update then I tend to ignore them. Have a real purpose and need for sending out info more than once a week.” John Burnside, First Union Rail Corp. “As we move forward into the 21st century, each of us has been exposed to the social media networks, some positive and some negative. While these networks allow for timely response to questions there are often times when we need to have verbal communications and my worry is that we will “forget” how to verbally communicate with one another, this fact has already reared its ugly head with our current teen – 20’s generation. I am unopposed to using those media on some business issues however I again feel that there has to be secure places to “talk” when discussing confidential matters.” Michael Smith, Rhino Energy “I do not use social media for business or my personal life. I do not have time for it. Maybe some day it will be important enough for me to try it. CPS Energy has Facebook and Twitter sites but I have never visited them.” Albert Serna, CPS Energy “Not a reliable way to reach many business associates, who mostly use company or association websites. Facebook and Twitter are mostly used by younger people and students.” Jerry Klym, Union Pacific 56 | COAL TRANSPORTER

“Definitely think it’s a good idea to take advantage of the opportunities social media can provide NCTA and its’ members. All three medias are virtually (no pun intended) maintenance free so I don’t see much reason not to get involved. Twitter would be helpful in sending out quick updates from time to time, LinkedIn would provide members the opportunity to network, and Facebook would be great for posting pictures and anecdotes after a conference. The only maintenance I can foresee would be managing “connections” and “friends” on LinkedIn and Facebook, respectively. Twitter is maintenance free.” Jane Joy, Peabody “At the present time those who jumped into the Facebook medium are now getting back out. Value was not worth the time required to be or stay involved. Low ROI.” Jim Zinkan, Zinkan Enterprises, Inc.

50%

Social Media Participation

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Facebook

Twitter

None

Fifty-seven percent of all respondents currently use social media, primarily LinkedIn and Facebook. Only 1 in 10 use Twitter. “It is a great way to communicate information quickly. However, I would be concerned that it would take a tremendous amount of monitoring to ensure that incoming communications were responded to in an appropriate manner.” Karen Bramley, Tampa Electric Company

60%

The business related use of social media is: 50%

40%

30%

20%

10%

0% Important

Almost half of those surveyed described the business related use of social media as not at all important. When looking at only those who have social media accounts, 45% still say their business use is not at all important. “I choose to discuss business matters with clients, customers and associates in a more personalized manner such as telephone or better, face to face. This allows for far better understanding and communication for both sides of a business relationship. In a business context such communication provides an opportunity for thorough give, take and understanding.” Alex Kurland, RA Kurland & Co. “My thoughts are at this stage, besides LinkedIn, these sites are very effective as a personal communication tools more so than from a business point of view. I question what value NCTA would attain from using Facebook or Twitter.” Phil Ciezak, QMASTOR “Social media is a new frontier in communications. There will be issues with the development but it will become an everyday communication tool for most people. It will be necessary for organizations such as NCTA to adapt to this media.” Mike Rayphole, Honorary Individual Member Does your company restrict the use of social media?

54%

46%

Yes No

The effectiveness of social media as a communication tool for business may be questionable with the surprising number of companies that restrict its use. COAL TRANSPORTER | 57

Reflections / John Hart

No Question About It John Hart is a (Coal) Family Man By Kate Tanquary

he best life stories are never about only one person. They are stories about meetings and about the building of relationships. The industry has seen areas of remarkable growth, from coal becoming a backbone of energy independence to the discovery and optimization of deposits in the Powder River Basin. But none of this growth is quite as remarkable as the people that fostered it. This is the story of one of those individuals, but like all the best stories, it goes far beyond just that. John Hart grew up in the Denver area with his two older sisters. He was awarded a football scholarship to attend the Colorado School of Mines (Go Orediggers!), where he graduated with a B.S. in Engineering in 1974. Six months before graduation, an OPEC oil embargo had prompted the United States to realize how fragile its energy supply was, and the subsequent move to cultivate more U.S. resources created a highly favorable job climate for new graduates like John. “That created the U.S.’s initial emphasis on how vital it was to develop domestic energy production and move toward energy independence,” he remembers. “After receiving my engineering degree on a Saturday morning in May, I began work the following Monday for Consolidation Coal Company.” Although prices of oil more than doubled and people waited hours in lines to fill up their cars, the embargo also succeeded in spurring a large-scale creation of new jobs. Businesses made huge efforts to develop methods of low cost domestic energy production and, as John recalls, “electric utilities were scrambling

58 | COAL TRANSPORTER

to tie up long term fuel contracts to match the operating lives of their newly planned electric generating plants.”

A Northern Expedition

John’s new employer, Consolidation Coal Company was, at that time, owned by Conoco, and like many of the major oil companies of the day it held large coal reserves in the previously untapped Powder River Basin. However, John’s career was destined to take off someplace much farther north, where he would get his first taste of operations experience. “Consol’s policy for new engineers was to get them into operations as soon as possible before working as a staff engineer in the office. That summer, I moved from Consol’s Denver office to Hinton, Alberta and my operations experience began at the Cardinal River Mine.” John worked for four years as a pit foreman, the manager of several construction projects, and as the Mine Planning Engineer in an area just 15 miles from Canada’s Jasper National Park. The lush scenery and abundant nature of the northern Canadian Rockies set the scene for what John describes as “some of the most memorable years of my career.” When he wasn’t on the job, John took full advantage of his surroundings; he enjoyed skiing, rock climbing and cycling along the Columbia Ice Fields Highway. Except for the frigid winter cold, Alberta reminded John of his hometown in Colorado. After using up all of the extensions on his work visa, he was given the choice to either return to the U.S. or become a landed immigrant. He did both. After becoming a landed immigrant, further reflection on Alberta’s winter weather which could get to -40˚

(in both Celsius and Fahrenheit) was not a point in its favor. “On subsequent business trips to the west coast, I found the milder climate to be very attractive and I was considering a change,” John says.

“Go West, Young Man”

“In 1978 I moved to Portland Oregon to join CH2M Hill Consulting Engineers.” While with the consulting firm, John worked on mine designs, production optimization studies, and even provided expert testimony on a case in Portland

Power and Light Co, was headquartered in Portland. John seized the opportunity to get back into the coal business and stay in the Pacific Northwest, which he had come to love. “NERCO had just opened its Spring Creek Mine in Montana at the north end of the PRB and was in stages of planning the Antelope Mine, the southernmost mine in the PRB. After a couple of years at NERCO working in the engineering/ development department, I was offered a position in coal sales.” And John was

Left: Winter Park Colorado Ski Resort Above: Canada’s Columbia Icefields Parkway

“...I found the milder climate to be very attractive and I was considering a change”.

district court. The case involved a dispute over silver mining claims in central Washington, and to John it seemed that “it involved the same issues as the Wild West during the late 1800s gold rush days… That was kind of a fun sideline to being a consulting engineer.” After a few years with CH2M Hill, the company began planning to move its mining group out of Portland. While these plans were being discussed, one of the local clients asked CH2M Hill to do aerial mapping of a new mining venture in Wyoming. This newly formed company, Northern Energy Resources Company (NERCO), a subsidiary of Pacific

in for a completely different experience than what he had seen as an engineer. “That really kind of changed my life,” he says. “I saw a new side to coal mining. One of the first things I did was attend a Western Coal Transportation Association (WCTA) conference.”

First Meetings

The selling and buying side of the industry was much different than mine production, but John was eager to learn and network with others at the thenWCTA Conferences. “Besides providing a forum for coal producers and users to meet and discuss new business under COAL TRANSPORTER | 59

the new private transportation contracts, I remember WCTA being just fun, and an opportunity to meet industry peers and ultimately develop life-long friendships.” But friendships weren’t the only relationships John was beginning to nurture. “Soon after joining the sales group at NERCO, I met my future wife, Cathy. A couple of years later, our daughter was born in Portland and we were hopeful to stay and raise a family in the Pacific Northwest.” One of John’s first sales calls was to the other major electric utility in Oregon, Portland General Electric (PGE). The trip didn’t take long, and he even went on foot. “It was an easy walk across the street,” he recalls. “That’s where I first met Pat Scherzinger, in PGE’s fuel supply group. At that time she was the manager of the fuel supply group, and today is the Director of Communications for the NCTA.” Though they remained friends for nearly 30 years, John doesn’t remember that she ever bought any coal from the local mining company across the street. His big break was to come a little later on.

John and Cathy Hart

Laying the Groundwork

“The first major sales contract I did for NERCO in 1982 is still one of the most memorable because it involved close work and a lot of help from the Burlington Northern Railroad, Helm Financial,

a private rail car leasing company, and about a half dozen sugar producing factories in North Dakota and Minnesota who agreed to buy Spring Creek Coal under a long term contract. I remained friends with some of those involved and through WCTA meetings, Cathy met their spouses and she too remained close and shared many of their family’s changes.” Both John and Cathy were grateful for the many meetings that allowed members as well as their spouses to forge these lasting friendships. John’s wife, Cathy, recalls fond memories of time spent with Patti Barthlow, the spouse of Norm Barthlow, DTE Energy’s Manager of Fuel and one of NERCO’s largest customers, at WCTA events in the early ‘80s. “Patti’s subsequent struggle with cancer was, to Cathy, the same as losing a close friend from her earlier life.” There was another significant deal that John oversaw while at NERCO, and it involved working with several members of NCTA whom he had met previously during its meetings. Detroit Edison Company and its subsidiary, Midwest Energy Resources Company (MERC), were in discussions with the Burlington

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“Selling foreign coal was a lot more complex than FOB mine sales from the PRB. It involved negotiating ocean freight contracts, terminalling services on the load and unload end of each shipment, multiple sampling and negotiating internally with our partners on every ship load. Suddenly the coal business for me was getting complicated but more exciting.” -John Hart Northern to move Spring Creek Coal to the Great Lakes for distribution to industrial and utility users of coal. “I worked closely with MERC for nearly a year and Cathy and I became friends with John Ethen, President of MERC and his wife Jan. The new business partnership between NERCO and MERC was known as Venture Fuels. Just prior to finalizing that arrangement in the late ‘80s, my first son was born. We named him Ethan John, a family name. I took a lot of kidding at the office that year from colleagues saying that I ‘would do about anything to close a deal.’”

A Long Road Home

“By then, NERCO had transferred me back ‘home’ to its small Denver sales office where I spent about three years working for a long-time friend Ron Boesen who headed western sales for NERCO.” But when it began to look as though NERCO would sell the coal group, one of John’s priorities became finding a way to stay in Denver to raise his family. Fortunately, there was an opening with another coal company headquartered in Denver. “I joined ARCO in 1988. My new job at ARCO was twofold- to develop new markets for its Black Thunder coal east of the Mississippi River, and to develop coal markets in North America for its new mine in Venezuela.” The new challenge of managing international coal sales proved to be even more adventurous than it sounds. “Selling foreign coal was a lot more complex than FOB mine sales from the PRB. 62 | COAL TRANSPORTER

It involved negotiating ocean freight contracts, terminalling services on the load and unload end of each shipment, multiple sampling and negotiating internally with our partners (PDVSA, the Venezuelan state owned oil company, and ENEL the Italian state owned energy company) on every ship load. Suddenly the coal business for me was getting complicated but more exciting. On a quarterly basis we had meetings either at the mine near Maracaibo, VZ along the eastern flank of the Andes Mountains, or at the sales office located about 20 miles offshore on the island of Aruba.” John even had one meeting in Venezuela that occurred during an attempted coup in the early 1990s. “Our meeting was cut short that afternoon when the federal government declared martial law and instructed all civilians to stay off the streets,” he recalls. Just returning to the hotel through the military barricades was enough cause for anxiety, but John and his companions would also have to figure out how to get out of the country when most air traffic had been grounded. “Fortunately, our partners at PDVSA knew ‘facilitators’ that could work some pretty amazing tricks for merely $100 USD.” The Venezuelan government remained unstable for some time after, and ARCO ended up selling its interest in the highest quality coal reserves in the company; 12,500 Btu and less than 0.4% sulfur. Ten years after John began work with ARCO, its assets were sold to ARCH Coal and the Denver office was closed.

New Beginnings

“Our family was established in Denver now with three children and we wanted to stay in Colorado.” By the late ‘90s, technology was becoming an ever present part of the energy business and it was apparent that the coal business as John and others knew it was changing as well. “I wanted to stay in the energy business and therefore looked specifically for opportunities related to coal with an emphasis on technology.” This instinct led to twelve years of work in the software development business with products exclusively for electric utilities. As Director of Business Development for North America for SunGard Energy Commodities, John worked with many former customers and friends whom he had met during the early days of NCTA. The seeds of friendship that were sown twenty five years before flowered into new and vital business relationships; these old NCTA friends had each worked their way up the ranks and become decision makers in executive positions with their employers.

Bonds to Last a Lifetime

All good things, as they say, must end. “After nearly 37 years in the energy business, and following a couple of significant personal issues over the past two years (a two-year bout with cancer and the loss of our youngest son a year later), I decided to retire.” John and wife Cathy decided to build a second home near Winter Park, Colorado that they recently made into their full time home. But even now, John remembers his NCTA days fondly:

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“NCTA has always provided a forum to meet with colleagues and socialize with old friends. That atmosphere along with fresh ideas and industry leading speakers provides a venue to collaborate among disparate businesses to exchange ideas and discuss opportunities. That was one of the best benefits of WCTA years ago, and even more so today at the NCTA. It’s one of the most interesting, educational, and entertaining social settings among any of the trade organization events that I’ve attended. Cathy attended many of the spring meetings during the ‘80s and early ‘90s and still maintains friendships.” When their son Ethan was born, Nancy Stone, the wife of Gene, one of the NCTA members, made him a pillowcase cross-stitched with his name. He would put it on his head every night before sleeping, just like a hat. John has been married to his wife, Cathy, for 27 years. After graduating this summer with a masters degree in linguistics and computer science from the University of Colorado, their eldest son Ethan will begin his career in Washington D.C. with the international software giant S.A.I.C. Their daughter, Erica, is

in her fifth year as a fund analyst for the private investment firm, Brown Brothers, Harriman & Company in Denver. Their youngest son passed away last July. Cathy remembers: “We heard from people around the world, from NCTA people that we hadn’t communicated with in years. We got so many kind cards, flowers. It was amazing. It was truly amazing… That goes to the personal aspect of the relationships that were built through NCTA.” John spends much of his time volunteering; in the winter as a Ski Host at Winter Park Ski Resort and in the summer he looks forward to working with the US Forest Service to manage campgrounds in the Fraser Valley near his home. Both Cathy and John enjoy an active lifestyle in the Fraser Valley. Some of their favorite activities include snowshoeing, skiing, and cycling. “We’ve always enjoyed living in Colorado,” they say. But for John, no part of the journey was wasted: “The twelve years away from Colorado working in the Canadian Rockies and in the Pacific Northwest rounded out a very satisfying career in the energy industry.” s

ROSS HART

MEMORIAL FUND Ross Hart was a member of the Cherry Creek High School Boys Varsity Lacrosse program from 2005-2008. Ross passed away in July of 2010 in Fort Collins, CO. A Memorial Fund in Ross’ name was inspired by Ross’ deep love of the game. All funds donated to the Ross Hart Memorial Fund will provide scholarships to those players that require financial support to fully participate. Checks should be made payable to: Cherry Creek Boys Lacrosse Booster Club Ross Hart Memorial Fund 7579 South Monaco Way Centennial, CO 80112-2549 All contributions are tax-deductible.

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The View from the Caboose

THE VIEW FROM THE CABOOSE

The humo sometime rous s serio , sometim us r es of be amblings st Pete friends and A nn.

By Pete Moss & Ann Thrawsite

Pete: You load sixteen tons of heavy white snow; and what do you get? Another day older and you hear the most doublespeak yet. Ann: Why are you singing off tune? You certainly aren’t Tennessee Ernie Ford. Pete: (Putting down his snow shovel) Look, my colleen, I have been shoveling snow all through this long, cold winter, and the alarmists say that this abominable weather is just what they predicted. Yep, it is line with all of the computer models and is absolute proof that this colder weather is actually a warmer weather pattern caused by man made “global warming”. They like to call it “anthropogenic”, it sounds more scientific, and how could you dispute such doublespeak? Ann: Are you saying that you don’t “get it”? Pete: (Shoveling furiously) No, I must be too simple, and I am certainly not politically correct. Ann: Would you be even more frosted to know that NASA just shot $424 million dollars of taxpayer money into the air, only to see the rocket fall short of orbit and end up at the bottom of the ocean near Antarctica? Pete: That must have shocked the penguins. Ann: A funny observation, but stop with the snowballs; I am just the messenger. Would you believe this is the second failed launch in two years for the same failure of the fairing to separate from the rocket? Pete: Oh, it is beginning to come back to me. This is the satellite named “Glory” that endured an inglorious demise. The idea was to show that aerosols are, on balance, causing global warming. The data would then be used to regulate aerosols from your barbeque, automobile, and lawn mower. The politicians have been unsuccessful in mandating limits on CO2, so they are going to try aerosols that are carbon-based plus sulfates and

nitrates. Aerosols are microscopic particulate material suspended in air or, in this case, circling the earth above the stratosphere. Ann: So, once again, government wants to prove that human activity is the problem. Pete: Interestingly, even before the attempt to orbit the satellite, NASA stated that 90% of the aerosols are from “natural sources” such as volcanoes and wind storms, but they want to know more about the 10% that they might be able to control. As Pogo said in the comic strips, “We have met the enemy, and he is us”. Ann: Pete, slow down, you don’t need to have a heart attack. I know about your dietary habits. If you will stay calm, I will tell you about ethanol explosions last month from a rail derailment. This is not the first. The fireball of corn squeezin’s could be seen for about twenty miles as the fireball went straight up in the air. Think of all the taxpayers’ subsidies for corn that was burning. Of course, the land could be used for food production as the world is seeing record food prices and bio-fuels have to be a contributor to rising prices along with increasing energy prices. Pete: (Throws down his snow shovel) Thanks, that does it! I feel some chest pain and rising blood pressure. Let’s talk about something pleasant and fun. Ann: Well, we are registered for the NCTA Spring Conference at the Five-Star Broadmoor Hotel and I am looking forward to networking and a highly informative program. NCTA has never failed to put on a first class event. Pete: Ah, yes. You know Colorado even looks a bit like Ireland when it is springtime. I am headed to the house to take a break. Ann: You mean you’re taking a libation. s

Have something to say to Pete? Send comments or questions to pete@nationalcoaltransportation.org

COAL TRANSPORTER | 67

NCTA Membership List A. Stucki Company AIG Rail Services, Inc. AKJ Industries Alliance Coal, LLC Alliant Energy Corporate Services Alltranstek LLC Alpha Coal Sales Co., LLC Ameren Energy Fuels and Services American Electric Power American Railcar Industries, Inc Amsted Rail Arch Coal Sales, Inc. Arizona Electric Power Coop.,Inc. Arizona Public Service Arkansas Electric Cooperative Associated Electric Power Cooperative Associated Terminals LLC Basin Electric Power Cooperative Benetech, Incorporated Bosch Rexroth Corp., Pneumatics CANAC, Inc. CDG Engineers, Architects, Planners Chevron Mining CIT Rail City Utilities of Springfield Cleco Cloud Peak Energy Colorado Springs Utilities Colowyo Coal Company CONSOL Energy Inc. Consumers Energy Company CPS Energy Crown Products and Services Dairyland Power Cooperative David J. Joseph Co.

Dayton Power & Light Company Detroit Edison Duke Energy Dynegy, Inc. Ecofab Australasia Ellcon-National, Inc. Energy Publishing, LLC Enserco Energy Entergy Services, Inc. Excel Rail Management LLC Exelon Power Team Exponent, Inc. First Union Rail FirstEnergy Florida Power & Light Company FreightCar America GATX GE Rail Global Barrier Coatings Global Coal Sales Global One Transport, Inc. Grand River Dam Authority Great River Energy Helm Financial Corp. Heyl & Patterson ICG LLC Idaho Power Company Jim Walter Resources, Inc. Kansas City Power & Light KCBX Terminals Co. Kiewit Mining Group Inc. Kinder Morgan Terminals LCRA Lexair, Inc. Locomotive Service, Inc. Luminant Energy Macquarie Rail Inc. Maxeefish LLC

MEAG Power MidAmerican Energy Company Midland Railway Supply Midwest Generation Midwest Industrial Supply, Inc Miner Enterprises Inc. Minnesota Power Mitsui Rail Capital, LLC Momar Inc. Muscatine Power and Water Nalco Company Nebraska Public Power District New York Air Brake Newmont Mining Corp Northern Indiana Public Svc Norwest Corporation NRG Energy Inc. NV Energy OG&E Electric Services Oglethorpe Power Corp. Omaha Public Power District Ontario Power Generation Otter Tail Power Company PacifiCorp Patriot Coal Corporation Peabody CoalSales Pincock Allen & Holt Platte River Power Authority Portland General Electric PPL EnergyPlus, LLC Precision Roller Bearing Company Progress Rail Services, Corp QMASTOR Limited Rail Link Railroad Financial Corporation RAS Data Services Rhino Energy LLC Salt River Project

Seminole Electric Cooperative, Inc. Southern Company Generation Standard Steel Strategic Rail Systems Strato, Inc. Structural Composites of Indiana Taggart Global, LLC Tampa Electric Company TBS Mining Teck Coal Limited Tenaska, Inc. Texas Municipal Power Agency The Empire District Electric Company The Greenbrier Companies The Timken Company Trinity Rail Tri-State G&T Assoc., Inc. TUCO/NexGen Coal Services Tucson Electric Power Company TVA UtahAmerican Energy, Inc Wabtec Corporation We Energies Westar Energy Western Farmers Electric Western Fuels Association, Inc. Westmoreland Coal Sales Company White Energy Coal North America, Inc. Wisconsin Public Service Corporation Wood MacKenzie Xcel Energy Zinkan Enterprises, Inc.

Index to Advertisers AEP/Cook Coal Terminal. . . . . . . . . . . . . . . . . . 43 Alpha Coal Sales Co, LLC. . . . . . . . . . . . . . . . . 11 Arch Coal, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 45 Bosch Rexroth. . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Broadmoor. . . . . . . . . . . . . . . . . . . . . . . . 28 CANAC Railway Services Inc.. . . . . . . . . . . . . . 34 Cloud Peak Energy. . . . . . . . . . . . . . . . . . . . . . 61 Crown Products & Services. . . . . . . . . . . . . . . . 7 Donohue Railroad Equipment Inc.. . . . . . . . . . . 53 Ecofab Covers International Inc. . . . . . . . . . . . . 19 Excel Rail Management LLC. . . . . . . . . . . . . . . 50 First Union Rail. . . . . . . . . . . . . . . . . . . . . . . . 12 FreightCar America . . . . . . . . . . . . . . . . . . . . . 29 GATX Corporation. . . . . . . . . . . . . . . . . . . . . . . 57 GE Capital Rail Services. . . . . . Inside Back Cover 68 | COAL TRANSPORTER

GKG Law, P.C.. . . . . . . . . . . . . . . . . . . . . . . . . 60 The Greenbrier Companies. . . . . . . . . . . . . . . . 47 Helm Financial Corporation. . . . . . . . . . . . . . . . 37 Lexair, Inc.. . . . . . . . . . . . . . . . Inside Front Cover Locomotive Services, Inc.. . . . . . . . . . . . . . . . . 66 Kiewit Mining Group Inc.. . . . . . . . . . . . . . . . . . 39 MacKensie’s Chop House. . . . . . . . . . . . . . . . . 28 Maxeefish, LLC . . . . . . . . . . . . . . . . . . . . . . . . 55 Momar MinTech. . . . . . . . . . . Outside Back Cover Nalco Company. . . . . . . . . . . . . . . . . . . . . . . . 33 NexGen Coal Services, Ltd.. . . . . . . . . . . . . . . . 23 Osmose Railroad Services . . . . . . . . . . . . . . . . 63 Peabody Energy. . . . . . . . . . . . . . . . . . . . . . . . 66 Phantom Canyon Brewing Co.. . . . . . . . . . . . . . 28 Pincock, Allen & Holt . . . . . . . . . . . . . . . . . . . . 37

Progress Rail. . . . . . . . . . . . . . . . . . . . . . . . . . . 5 QMASTOR Limited. . . . . . . . . . . . . . . . . . . . . . 35 Railroad Friction Products. . . . . . . . . . . . . . . . . 51 The Railway Education Bureau . . . . . . . . . . . . . . 3 Slover & Loftus LLP. . . . . . . . . . . . . . . . . . . . . 49 Structural Composites of Indiana. . . . . . . . . . . . 65 Suckerpunch Creative Inc. . . . . . . . . . . . . . . . . 32 Taggart Global. . . . . . . . . . . . . . . . . . . . . . . . . 25 Thompson Hine LLP. . . . . . . . . . . . . . . . . . . . . 64 Walter’s Bistro. . . . . . . . . . . . . . . . . . . . . . . . . 28 West Rail Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 18 Western Fuels Association Inc.. . . . . . . . . . . . . 10 Westmoreland Coal Sales Company . . . . . . . . . 22

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