NCTA Issue 1, 2014 by National Coal Transportation Association

ISSUE 1 | 2014

Member Profile:

Pier 6 A Pier without Peer Spring Conference Hilton Head, SC

Ambre Energy

Looking to lower your overall operating costs?

Is the big decision to Repair or Replace?

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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. • 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 (U.S. Patents 8,038,231 and 8,256,850).

Typical Before Installation Photos

Typical After Installation Photos

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Contents

ISSUE 1 | 2014

34 24

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 ©2014 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 appearing in the Coal Transporter are those of the respective authors and do not necessarily reflect the opinion of the NCTA, its Board of Directors or its member companies. Publication of the articles does not constitute an endorsement of the views that may be expressed.

8 FEATURES

DEPARTMENTS

Meet Your Communications Director

Member Profile: Ambre Energy

Message from the NCTA President – Jerry Wess

Norfolk Southern Pier 6 Terminal

Fuel Class Action Lawsuit Update

Message from the NCTA Executive Director – Tom Canter

AAR Rule Changes for 2013/2014

NCTA Welcomes New Members

Export Delays and International Treaties

NCTA Membership Benefits

STB Update

NCTA Committee Updates

Developing a Rail Marketing GIS

Calendar of Events

5 8

2013 NCTA Scholarship Recipients

Members Sound Off

NCTA Coal Summit

View from the Caboose

Stats at a Glance

Membership List

Reflections: Janice Figgins

Index to Advertisers

CONFERENCES 16

2013 Fall Meeting & Conference Recap

2014 O & M Conference Announcement

Denver, Colorado, September 16-18, 2013

Park City, Utah, June 9-11, 2014

Spring General Conference Preview

Hilton Head, South Carolina, April 27-30, 2014

COAL TRANSPORTER | 1

President’s Report / Jerry Wess

President’s Report A Message from NCTA President, Jerry Wess.

2014 - A year that NCTA

Members must face market challenges with “Gusto”

Present Landscape

s I write this column the ’War on Coal’ continues in Washington. The U.S. is abandoning coal in a big way. While the U.S. pace of coal plant retirements slowed in 2013 to 6,000 megawatts (MW), it is predicted that U.S. power companies may permanently retire roughly 28,000 MW of coal- fired generating capacity in the next decade. SNL reported that more than 150 coal mines were idle in 2013 as both the domestic and export markets weakened. Environmental Protection Agency (EPA) ‘Mercury and Air Toxics Standards’ which set limits on plant emissions are the law. This makes power plant compliance evaluations extremely complex decisions. The options to consider are very capital intensive, and involve such alternatives as installation of pollution control equipment on existing generation units, or complete replacement with new gas combined-cycle plants. In addition to government imposed regulations the electric utility industry faces continuing challenges from 1) cheap natural gas, 2) continuing slow economic growth, 3) government subsidies that are encouraging more solar and wind installations (2013 additions of 3GW- solar and 2GW- wind), 4) utility efficiency programs (growth rate of 25% annually over past five years), and 5) distributed investment with 50% smart meter penetration predicted by 2015.

2 | COAL TRANSPORTER

2014 Rebound

But with these challenges identified, our industry is still fighting hard to stay in business. I recently read an article by Matthew Brown of the Associated Press. The headline read, “Temporary Rebound Expected for Coal Mining in 2014.” Yes, the U.S. coal mining industry will see a modest and short-lived rebound in 2014. It will be driven by more production in Western states after two successive years of decline, according to a recent government forecast. According to the Energy Information Administration (EIA) 2014 coal production is estimated to increase by 36 million tons this year, to 1.04 billion tons. This is a 3.6% increase over 2013 production figures. The short term impacts should favor Powder River Basin mines in Wyoming and Montana the most (40% of U.S. coal). EIA reports a projected Western coal growth of 24 million tons this year, but a decline of 15 million tons in 2015. The East will see a 3.5 million ton increase in 2014, followed by a decline of 10 million tons in Appalachia in 2015. These projections do not factor in proposed EPA regulations to curtail the release of greenhouse gases that are blamed for global warming.

Let’s Re-group

To provide a continuing forum for the membership to brainstorm ways to combat these challenges, the NCTA Board has arranged a great schedule of 2014 meetings. Once again this year we will

have the spring (Hilton Head) and fall (Denver) general meetings. Tom Canter is working on an informative spring agenda with speakers that will update us on current conditions, and help us with suggested ways to stabilize coal fired generation in the U.S. Pat is making plans to also update you on the NCTA’s social media efforts. We will have plenty of time in Hilton Head to discuss issues, and network with each other. Coal is not going away folks! We just need to make sure that it stabilizes in the 35- 40% of U.S. generation range. The future of coal is “in our collective hands,” so to speak.

Other 2014 Activities

The Coal Transporter magazine will be published (once again) twice this year. In addition the O&M Group has its annual conference scheduled (Park City— WOW), and the Logistics and Planning committees have scheduled informative meetings in both the East and West. So please continue to support the NCTA. I hope that you will renew your membership and advertise in the Coal Transporter once again this year. I look forward to seeing you at the spring meeting in Hilton Head! s Best always, Jerry

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Executive Director’s Message / Tom Canter

Special Guest Columnist:

CoalTar The Magnificent

he Executive Director has invited the famous swami and mysterious forecaster, CoalTar, The Magnificent, to be our guest columnist for this issue. CoalTar was a featured presenter at the NCTA Fall Conference in 2009. He displayed his usual shtick of holding a hermetically sealed envelope juxtapositioned to his forehead and, amazingly and telepathically, ascertained the answer to the question secreted in the envelope. After revealing the answer, CoalTar then opened the envelope with a flourish and read the printed question. He also used a crystal ball as a resource at the conference, and I have asked him to use that cloudy orb to clarify the future of the coal industry and the North American economy. His prognostication follows. Editor’s Note: Any similarity between CoalTar’s extraordinary gifts and the Great Carnac of Johnny Carson fame is purely coincidental. Once again, I have been asked to perform an impossible task and I gladly and fearlessly accept. I must start with assumptions. It is undeniable that the current U.S. Administration and many politicians and regulators throughout North America have totally embraced the theory of man-made (anthropogenic is the proper term to embrace bad science) global warming and they are working at every level to eliminate coal as a viable contributor to the economy. With this understanding of a major misunderstanding by our leadership, let’s get started. • Coal-fired generation will provide a significant percentage of electric power generation over the next decade. There is no alternative fuel or renewable fuel that will have the same price stability, deliverability, onsite storage, and abundance in all weather conditions. • In the foreseeable future, environmental non-governmental organizations (NGOs) will continue to receive cooperation from the U.S. EPA to inhibit growth of the fossil fuel generation of electric power. 4 | COAL TRANSPORTER

• Despite Herculean efforts involving propaganda, subsidies that distort rational economics, and behavioral modification by regulatory force and severe penalties; electric power demand will increase at a historically low growth rate. Electricity is simply the most effective energy source for power and electronic devices. • Sadly, replacing electrons from fossil generation with more expensive, but indistinguishable, electrons from “renewable sources” will decrease GDP growth. Reliable power plants with effective environmental controls will be retired prematurely with the resulting capital destruction. Electric rates will rise as a burden on the poor and the middle-income population. • Days of extreme cold in the winter and extreme heat in the summer will continue as they have for millennia. All too gradually, there will be recognition by citizens that the intelligentsia that call global warming skeptics (yes, 17 years without warming is a long time) members of the Flat Earth Society are actually believers in the Chicken Little Fable. • The removal of base load coal-fired generation from the grid will cause great angst for Independent System Operators and some rolling brownouts and blackouts during recurrent hot or cold weather excursions or storms. • The natural gas industry will experience significant price volatility and deliverability challenges going forward, and natural gas will be subject to attack by the same NGO’s they supported in attacking coal. What goes around comes around. • The laws of physics and the laws of economics will not be overturned by global warming alarmists. Nevertheless, the alarmists will continue to tout an apocalyptic view based on unverifiable computer modeling and bad science (Editor’s Note: abbreviated “BS”). • My final prediction is that not all of my predictions will come true. The prevailing presence of “negative feedback” to correct directional error is true in engineering and economics and we can all hope that rational corrections will be made. I trust that Australia will be an example in policy correction for us all. s

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Meet Your Communications Director / Pat Scherzinger

MEET YOUR COMMUNICATIONS DIRECTOR Pat Scherzinger

Pat Scherzinger

Communications Director NCTA

“Please join and share ideas in our new LinkedIn group. Also, be sure to smile, when you see me coming. I have to have something to put in the magazine!”

6 | COAL TRANSPORTER

he NCTA is stepping up its communications in order to provide members with more information and to do its part to fight back in the war on coal. One of the major elements of this effort is a new “National Coal Transportation Association” LinkedIn group set up exclusively for NCTA members. Since NCTA’s Communications Director and Editor of the Coal Transporter, Pat Scherzinger, will be leading this new effort, it seemed appropriate that you get to know her better and discover why she is qualified to lead this charge. Is it a Communications Degree from one of top programs in the country? Is it years of public relations experience at a Fortune 500 company? How about time spent with an internet startup in the Silicon Valley helping to create the next big thing, Instatoomuchinfo? Well no, it’s actually none of these things. Pat is very much like most of you. She has a technical background, lots of fuel and transportation experience, and many years of involvement with the NCTA. With a NCTA staff of only 2+ people, Pat has a hand in most of its activities. Much of her effort goes into managing attendee registrations, dealing with meeting logistics, creating meeting materials, maintaining the website, and producing the Coal Transporter. She thinks the best times on the job are the days when everything comes together at an event often more than a year in the making. “I love walking through the hotel and knowing most of the people I see. Every conference is like a family reunion.” Pat is used to big families. Born in Portland, Oregon, she has four brothers and two sisters. She attended Oregon State University (home of the Beavers), graduating with a degree in Chemistry.

Shortly after graduation, she took a job in Portland General Electric’s Environmental and Analytical Services Department and put her degree to good use. In the early 80s she moved into Fuel Supply and went back to school at night to earn a MBA from Portland State University. In her first days in Fuel, she learned a life lesson. “We had a VP that made his secretary print all his email. I resolved then and there never to let technology get away from me.” Need some HTML code? Pat’s your girl, as long as you keep it simple. Eventually, Pat took over the management of PGE’s fuel supply group, moving coal out of Montana, Wyoming and Utah and managing interests in several mine-mouth projects. In addition to the coal business, she also managed the company’s natural gas needs, procuring gas and moving it on capacity the company held on both US and Canadian pipeline systems. Pat’s involvement with the NCTA dates back to 1991 when she attended the Spring Conference in San Francisco with her three month old son in tow. He is now 23. In 1994 she was asked to serve on the NCTA Board of Directors, a role she played until she left PGE in 2001. Her time on the Board brought major change to the Association including a new Executive Director and the addition of Associate Members to the ranks. As a consultant she continued to spend time helping the NCTA. “While I was doing a lot of work in natural gas, I gravitated to working with the NCTA as I always viewed it as doing so much more for the industry than just putting on conferences.” Pat’s request to members, “Please join and share ideas in our new LinkedIn group. Also, be sure to smile, when you see me coming. I have to have something to put in the magazine!” s

NCTA Member Profile / Ambre Energy

Ambre North America A company designed for the Asian thermal markets but grown from a strong US base.

8 | COAL TRANSPORTER

Energy E

nergy industry experts are turning a keen eye to major market opportunities in Asia. Ambre Energy North America (AENA), an emerging producer and distributor, is building value as it takes a leading role in the burgeoning US coal export market. Its vertical integration strategy leverages its key strengths: high-quality mining assets in the intermountain region of the western US; investment in US Pacific northwest coal export projects; and knowledge of the Asian market.

A Solid Foundation

Ambre Energy was founded in 2005 in Australia. Three years later, recognizing a growing need for steam coal in Asia, AENA was formed as a wholly-owned subsidiary, based in Salt Lake City, Utah, and began developing its coal export strategy for Asian markets with a focus on South Korea, Japan and Taiwan. AENA manages two joint venture coal mining operations in the western US, currently producing over five million tons of thermal coal annually for the domestic market.

Capitalizing on the Emerging Asian Market

Although the traditional US coal market is flattening, the demand for coal in the global market will be catalytic to the industry’s future. The seaborne coal market is projected to increase to more than 1.8 billion tonnes annually by 2030 and total coal

demand from Asia alone is forecast to grow at 6.7% per year to 1.3 billion tonnes annually. Coal consumption in China has more than tripled from 2000 to over 4 billion tonnes annually today although China is believed to only have 120 billion tonnes of coal reserves. Whilst this is sufficient to satisfy another thirty years of utility demand, that is only enough to supply all the new coal fired plants built in China since 2000, for about half their lives. Additionally China is already importing over 250 million tonnes of coal annually (about 30% of the international seaborne market), causing Pacific Rim coal consumers to seek dependable alternatives for their coal supply. Japanese coal consumption will increase another 100 million tonnes annually, as the coal plants constructed to replace Japanese nuclear plants come on line. In addition, South Korean utilities will need another 80 million tonnes annually by 2018 for their new coal plants. South Korean, Japanese and Taiwanese utilities are very concerned about securing stable coal supplies because the Chinese power plants continue to import a growing share of the world’s available coal production. The US is currently a minor supplier of thermal coal into the Pacific export market, accounting for only 8 million tonnes of Asia’s 650 million tonnes of thermal coal demand. However, according to International Energy Agency estimates, US exports are projected to nearly double by 2020. AENA is moving to capitalize on this market opportunity. The US Powder River Basin (PRB) contains nearly a quarter of the world’s coal reserves. AENA purchased half interests in PRB mines in Montana (Decker) and Wyoming (Black Butte) and signed long term coal supply agreements with buyers in South Korea. AENA has also started working with the rail networks of the BNSF and the Union Pacific to move coal to the US west coast. AENA is focused on developing existing ports in Washington and Oregon that could be used to export coal. They acquired Millennium, in Longview, Washington, from a subsidiary of Al-

COAL TRANSPORTER | 9

and marketing. The Decker Mine is in the Northwest of the PRB. Located within Montana’s Big Horn County, the mine has two areas: East Decker and West Decker. Since operations began in the 1970s, Decker has produced approximately 300 million tonnes of coal. The Decker Mine is serviced by BNSF Railway and produces over 3 million tonnes of coal annually. A sizable resource of 868 million tonnes and reserves of over 138 million tonnes remain at Decker.

Black Butte Mine Owners Ambre Energy 50% Anadarko Petroleum 50% Location Wyoming, USA

Black Butte Mine Quality Btu Moisture Ash Sulphur

9,500 19% 8% 0.6%

coa, which currently imports about a million tonnes of alumina annually to make aluminum (originally for the local aircraft industry). As a result, the Company is well poised for early entry into Asian export market.

Building a Secure Supply

AENA has focused on acquiring mines in the PRB region, where large deposits low ash, low sulfur coal can be economically produced from highly productive surface mines. AENA’s mining assets have generated a reliable and consistent supply of low sulfur coal for over 30 years. Coal from the PRB region is one of the cleanest coals in the world. It is a sub bituminous coal that contains less sulfur and ash than most coals and in many cases will be replacing coals with lower heat, higher sulfur and higher ash currently being used in the Asian market. In fact there is as much as 10 times more ash in some of these coals. It would take only one tonne of PRB coal to replace two tonnes of the low heat Indonesian coal. For this reason, the Chinese are considering banning the importation of coal from Indonesia.

The Black Butte Mine is a 50/50 joint venture between subsidiaries of AENA and Anadarko Petroleum Corporation. As with the Decker Mine, AENA operates the mine and is responsible for marketing. The Black Butte Mine uses a combination of dragline and truck and shovel operations to strip overburden and produces over three million tonnes of coal annually to serve the domestic utility market. Last year’s investment into new Komatsu mining equipment reflects the partners’ commitment to the mine. It is serviced by the Union Pacific Railroad via an existing onsite rail loop. A recent independent JORC assessment indicates that well over 90 million tonnes of coal reserves remain at Black Butte.

Decker Mine In 2011, the company purchased a 50% stake in the Decker Mine in Montana. Ownership of the mine is a 50/50 joint venture between subsidiaries of AENA and Cloud Peak Energy, with AENA having responsibility for mine operations 10 | COAL TRANSPORTER

Decker Mine Owners Ambre Energy 50% Cloud Peak 50% Location Montana, USA

QUALITY Btu Moisture Ash Sulphur

9,500 24% 4.2% 0.45%

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Investing in Export Capacity

AENA is investing heavily in coal export infrastructure in the Pacific Northwest and is positioned to begin moving products to Asian markets as soon as 2015, subject to the timing of permitting and construction. AENAâ&#x20AC;&#x2122;s primary investments are the Morrow Pacific project and Millennium Bulk Terminals Longview expansion project, a joint venture with a subsidiary of Arch Coal, Inc.

The Morrow Pacific Project The Morrow Pacific project is currently going through an environmental review and permitting process with the Army Corps of Engineers and state agencies, as is standard for such projects. Depending on current permitting and construction timelines, it could begin operations as early as 2015 with an initial handling capacity of 3.5 million tonnes annually, ramping up to a full capacity of 8 million tonnes per year. The Morrow Pacific project will ship coal by rail from the US intermountain region west to the Port of Morrow

12 | COAL TRANSPORTER

in eastern Oregon. The coal will then be loaded onto covered barges and sent down the Columbia River to Port Westward at the Port of St. Helens, where it will be transferred by enclosed transloader onto ocean-going Panamax vessels.

The project is designed to mitigate environmental concerns and utilize the Columbia-Snake river system, a major commercial waterway. The Port of Morrow is already permitted for storing, warehousing and

Millennium Bulk Terminals

distributing mining products and leased for the long term. The area is serviced by a Union Pacific line on which BNSF was granted access, and the existing rail loop accepts 125 car trains. Port Westward at the Port of St. Helens, about 130 km

Millennium Bulk Terminals Longview is an existing bulk materials port on the Columbia River in the state of Washington. A subsidiary of AENA owns 62% of Millennium, with the remaining 38% owned by a subsidiary of Arch Coal, Inc., the second largest thermal coal producer in the US. For more than 60 years, the site operated as an aluminum smelter, and the existing dock was used to import alumina and other materials for smelting. The 530 acre site has been decommissioned for over 10 years, and a program to clean-up projects related to decades of aluminum smelting is well under way. At the same time, the company is in process of permitting for upgrades to existing facilities and construction of new facilities to be used for the handling of coal. Currently, the terminal receives, stores, and transports alumina discharged from Panamax ships. In 2011, AENA signed a long term lease with an Alcoa subsidiary for the property and will build

from the Pacific Ocean, is a 5.7 km2 industrial park designed for energy projects. It has a deep draft marine facility capable of accepting Panamax vessels and also has two power plants onsite.

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COAL TRANSPORTER | 13

a coal export terminal adjacent to the existing bulk handling facility. The coal terminal will run round the clock throughout the year and, at full build out, will reach capacity of 44 million tonnes annually (about two vessels per day). Millennium was chosen as the export site because, as an operating import facility, it already had exceptional access to rail, highway and water systems. Existing and planned infrastructure includes deep-water shipping channels and docking capability for Panamax ships. Additionally, it offers one of the shortest rail hauls for coal from the PRB mines and shortest ocean routes from the US to South Korea and Japan. Currently, the environmental impact statement is being prepared as Millennium works through the local, state and federal processes to build a new export facility. Based on current permitting timelines, this facility could load its first vessel in 2018.

Public Interest

There has been a robust dialogue in local and national media around the proposed coal export projects. Over the past few years, AENA has completed outreach activities throughout Oregon and Washington seeking the input and support of the communities. As a result, the projects have thousands of supporters ranging from elected officials, businesses and organizations to individuals. AENA listens to and respects the opinions of opponents and works with regulators to incorporate comments that are within the nexus of the projects. AENA also designed the projects to minimize local environmental impacts and leverage existing infrastructure.

14 | COAL TRANSPORTER

Present and Future Value

AENA was created to fulfill a need in the Pacific Rim coal markets. The two infrastructure projects represent a strategic investment that both creates short-term value and maximizes future returns. Millennium is already operational and generating revenue, and the extensive clean up necessary for the conversion from an aluminum smelter will contribute to the creation of local jobs and has helped promote positive community relations. The Morrow Pacific project will help boost the barge transportation industry in Oregon and provide much needed economic benefits to rural Oregon communities. These projects will handle coal from western US producers for shipment to Asian customers and will enable AENA to help meet the Asian demand for high-quality intermountain coal. Most importantly, new sales will build on the Companyâ&#x20AC;&#x2122;s current 10-year coal supply agreements with two South Korean companies, KOSEP and KOSPO. AENA remains committed to providing affordable energy to US and international customers. With its experienced leadership team, key assets and infrastructure and nimble, entrepreneurial approach, AENA is well on its way to creating a major, competitive supply of US thermal coal that will help power the emerging economies of Asia while still maintaining its important role as a supplier to the US domestic utility industry s

2b 1

2a 4

an emerging leader for the export of US thermal coal We are establishing new international markets for United States coal by unlocking the export potential of the Pacific Northwest. We operate and co-own thermal coal mines in the US and are establishing new port infrastructure to support coal export and trading.

Millennium Bulk Terminals - Longview

Signed offtake agreements with KOSEP and KOSPO

2 producing coal mines 2 port sites on US west coast

Ambre Energy US locations 1

Millennium Bulk Terminals - Longview, LLC

Coyote Island Terminal

Port Westward

Salt Lake City office

Decker Mine (50%)

Black Butte mine (50%)

(62% Ambre Energy, 38% Arch Coal)

Morrow Pacific Project (100%)

NCTA 2013 Fall Conference / Denver, Colorado

NCTA 2013

Fall Conference The Brown Palace, Denver, Colorado September 16-18, 2013

he NCTA held its 39th annual Business Meeting and General Conference, September 16-18, 2013 at the Brown Palace in Denver, Colorado. Participants enjoyed time to network at several hosted receptions and customer events. The theme of this year’s conference was “The War on Coal, Fighting Back.”. Joe Bastardi, the Chief Forecaster at Weather Bell Analytics, was the first of many dynamic speakers that got the group energized. He refuted many of the findings of the global warming alarmists. In battle terms, he exposed their propaganda. The main front of the environmental extremist movement, the regulatory war, was covered by William Perry Pendley of the Mountain States Legal Foundation. Robert Mulholland of L. E. Peabody & Associates addressed recent STB proceedings and John Ward of John Ward, Inc. covered EPA efforts to regulate coal ash. Lauri Hennessey, spokeswoman for the Alliance for Northwest Jobs and Exports, described the delay war currently being waged on coal export ports in the Pacific Northwest. Taking a leave from the battle and focusing on the home front, John T. Hanou, Hanou Energy Consulting, updated the group on the Powder River Basin market; Gurpreet Khaira discussed CN Rail’s coal business; and Colleen Layman, HDR

Engineering addressed the challenge of managing limited water resources. The conference featured the documentary Mine Your Own Business, showing the heartrending consequences of blindly supporting environmentalist/anti-development campaigns across the globe. More of these types of exposés need to be done in order to win the public relations war. When it came to fighting back, Marita Noon, Energy Makes America Great, came fully prepared to “Smash the Watermelons.” Far different than those that use energy wisely, recycle, and are good stewards of the environment, the watermelons are green on the outside like environmentalists but red on the inside like neo-communists or neo-socialists. The meeting concluded with a panel on social media, skillfully moderated by Mindy Watson-Ward of Cloud Peak Energy. Panelists included Bianca Prade, ACCCE; Caleb Bonham, The Caleb Bonham Show; Marita Noon, Energy Makes America Great; Mike O’Neil, Integrated Alliances; and Gary Turner, TrinityRail. There was plenty of interaction between the panel and the audience and the group left ready to take the fight to those activist and governments working to change policy to the detriment of our way of life.

2013 FALL SPONSORS AKJ Industries, Inc. Associated Terminals Appalachian Railcar Services Ecofab FreightCar America GE Capital Rail Services Global One 16 | COAL TRANSPORTER

The Greenbrier Companies Kinder Morgan Midwest Industrial Supply St. James Stevedoring TrinityRail Xcoal Energy & Resources

The conference featured the documentary Mine Your Own Business, showing the heartrending consequences of blindly supporting environmentalist/anti-development campaigns across the globe.

Bianca Prade, Mike Oâ&#x20AC;&#x2122;Neil, Marita Noon, Caleb Bonham, Mindy Watson-Ward, Gary Turner

Russ Hallcroft, Mike Mindham and Brad Clark

John Crane

Brian Hodges

Logan Bonacorsi-Schneider

Apryl Eby and Jeff Griffin Marita Noon

Tom Zolnerowich Allen Childress, Betsy Monseu, and Todd Whitmore

Mike Sbragia

COAL TRANSPORTER | 17

Dan Carpenter, Lynn Cielec, and Dan Speck

Michael Rulis and Jeff Anderson

Larry Graus and Ken Brockway

Mason Caperton and Dave Halligan Sharon Robinson, Willie Thomassee, Terry May, Jason Busby

Greg Taylor

18 | COAL TRANSPORTER

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New Member Announcement

NCTA WELCOMES ITS NEWEST MEMBERS!

he board of directors of the National Coal Transportation Association is pleased to announce that the application for membership in NCTA of the following coal industry participant was approved. They join NCTA’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 our website: http://www.nationalcoaltransportation.org/ index.php/membership/current-members

Blackhawk Mining, LLC

Benefits of Membership • • • • • • • •

Focus on Coal Transportation Conferences with Character Logistics and Planning Subcommittees Operations and Maintenance Subcommittee Access to Railcar Leasing Exchange Board Commitment to Education Policy Insights Publications

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CROWN IS CHANGING THE “PROFILE” OF THE INDUSTRY!

Actual Compaction

Crown Products & Services, Inc. 12821 E. New Market Street, Suite 310 Carmel, IN 46032 Phone: 317-564-4799 FOR MORE INFORMATION CONTACT:

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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 Voting 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. 22 | 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 conferences 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.

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.

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

The annual dues for membership in NCTA are $1,500 for Voting Members and $1,350 for Associate Members 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 | 23

Infrastructure / NS Pier 6

Pier 6 is unique from several standpoints: it can load more coal (36 million tons per year) than any other coal terminal in North America, and it can blend metallurgical coals finer than other terminals.

PIER

Norfolk Southern’s “Pier without Peer” BY: Dave Gambrel

orfolk Southern (NS) is the proud owner and operator of North America’s largest ship-loading coal piers, located near the mouth of Norfolk, Virginia’s Elizabeth River where it empties into Chesapeake Bay. Pier 6 is unique from several standpoints: it can load more coal (36 million tons per year) than any other coal terminal in North America, and it can blend metallurgical coals finer than other terminals. It accomplishes these deeds without putting the coal on the ground; the only other terminal capable of such a direct loading operation is NS’ own Sandusky Pier on Lake Erie. To the observer only familiar with ground-storage-based terminals it seems complicated beyond comprehension, but to the experienced NS terminal operators it is a well-oiled machine that rarely breaks down. It is, as they say, a “Pier without Peer”. Traditionally it was called Lamberts Point, but more frequently nowadays it is referred to as Pier 6 because only Pier 6 remains. The five previous coalloading piers no longer exist, pier 5 being removed from service in 1989. Beginning in 1883 Norfolk Southern predecessor N&W began shipping coal through older Norfolk piers, and in 1884 through their own brand new Pier 1 in Norfolk. Pier 1 and all following coal piers were built on a grant of land on the Elizabeth River from King Charles I to Thomas Lambert, supplemented by adjacent land acquisitions. On September 18, 2013 NS celebrated the 50th anniversary of the dedication of Pier 6, celebrating 130 years of exporting coal from NS’ Lamberts’ Point operation. Rarely were more than two piers in operation at Lamberts’ Point simultaneCOAL TRANSPORTER | 25

ously. Piers 5 and 6 worked together from 1962 to 1989, when Pier 5 was removed from service. Lamberts Point had its best 12-month loading period in 1981-1982, loading 42.3 million tons when Pier 5 was still operating. Since 1883 NS and its predecessors have loaded more than 1.2 billion tons onto vessels at Lamberts Point. This would fill a train stretching almost halfway to the moon. Separated by a span of only four days Pier 6 broke two loading records in 2013. On September 17th the pier completed loading of the M/V China Pioneer, a metallurgical coal shipment

tons), we assume they took the shorter route through Suez rather than the much longer deep water route around the Cape of Good Hope. If they had decided to take the Cape route they would have loaded the vessels to their capacity of 206,000 metric tons. Norfolk Southern’s coal business, which includes serving a little over 100 coal-generation plants, accounted for nearly a third of the company’s total revenue in 2011. About 8% of the coal exported through Pier 6 in the 20082012 period went to Asian customers; about 63% went to European customers.

feet high, weighs 2400 tons, and rolls on 96 wheels. They are among the largest pieces of moving machinery anywhere in the world. [For comparison NASA’s Crawler-Transporters, also 50 year-olds, are capable of lifting 6000 and 9000 tons respectively.] The pier is 1850 feet long. The entire pier, including both shiploaders, was built by McDowell-Wellman Engineering Company of Cleveland, now known as the Metso Corporation. This was such a major construction package that the company had to build a special-purpose crane at the site.

headed for Liuzhou Iron & Steel just north of Hong Kong in South Central China. The cargo of 166, 840 net tons (1561 rail cars) surpassed a long-standing record of 163,765 net tons set by Dominion Terminal Associates (DTA) in 1992. Four days later Pier 6 broke this new record by loading 168,977 net tons of metallurgical coal on the M/V Negonego, another VLOC vessel headed for Chinese steel interests. The ocean voyage would take about 50 days to cover the distance of 11,830 nautical miles through the Suez Canal to Guangzhou, China. Since the vessels were loaded to the typical deadweight of a Suezmax vessel (about 160,000 metric

The remaining 29% went to customers in South America, Central America, and Africa, with the majority going to steel plants in South America. Coal operations at Pier 6 cover an area of about 400 acres. The entire facility can hold about 6500 railcars on 150 miles of track including loads, empties, and cars in the repair queue. It is the largest coal loading facility in the Northern hemisphere, having a throughput capacity of 36 million tons annually. A typical ship-loading of 80,000 net tons takes about 24 hours. With both car dumpers and both ship loaders operating Pier 6 can handle up to 8000 tons per hour. Each shiploader is 182

How the Overall Coal Loading Operation Works

26 | COAL TRANSPORTER

Transporting coal from any coal mine to an ocean vessel is basically a two-step process: (1) moving the coal from the mine to the terminal (pier), and (2) unloading the coal from the train and loading it into the vessel. Except for the great amount of detail involved in NS’ step (1), rail shipments from NS-sourced mines to the terminal are quite similar to shipments originating on other railroads. NS requires a more detailed permitting process than CSX because of the need to coordinate ship arrivals with coal available to load on ships. Ground storage terminals such as

COAL KEEPS THE LIGHTS ON. WE KEEP THE COAL MOVING. Visit nscorp.com for more information.

At Norfolk Southern, we’re investing in technology and resources to add value for our coal customers. This includes one of America’s largest coal ﬂeets and hybrid cars with lower weights to increase capacity. Plus, at Lamberts Point, our dedicated coal transload facility in Norfolk, we can make custom blends. Whether you’re a shipper, receiver, or partner, rest assured we’ll go the extra mile for you.

DTA and Pier 9 can store such large piles that they can await several vessels without causing any vessel to wait in port for coal that has not arrived at the terminal. However, they lack the ability to blend coals as finely as Pier 6. What happens after the coal trains arrive at Pier 6 is altogether different from what happens at any other seaside coal terminal. Step (2) at other terminals (except for NSâ&#x20AC;&#x2122; Sandusky Terminal on Lake Erie) requires the coal to be unloaded from the rail cars as soon as possible and put into ground storage. Step (2) at Pier 6 does not involve ground storage; the loaded rail cars are parked on assigned tracks pending a series of orders to be released for individual dumping and loading directly onto waiting vessels. This method enables Pier 6 to blend multiple (more than two) metallurgical coals more precisely than is possible at ground storage terminals. The Pier 6 method requires an enormous amount of rail car storage and car movement. Pier 6 can store 6500 rail cars on a 400-acre storage yard. The reason it makes sense for NS is that NS has ready access to many mines that produce

28 | COAL TRANSPORTER

Twin thaw sheds followed by dumpers. Coal is conveyed to ship loaders on the right. metallurgical coal, and many of the steel mills that comprise NSâ&#x20AC;&#x2122; export customer base insist on the ability to produce fine blends of met coal to almost chemical precision. The main reason the car-storage operation does not make sense for most other coal terminals is that with few exceptions, they do not have access to a large number of metallurgical coal mines, they do not have access to large waterside acreages, and they prefer to minimize

turnaround times for their coal trains. There are 124 NS rail loadouts in WV, KY and VA, of which 66 are active. Many of these loadouts service multiple coal mines, so the number of met coal mines actually accessed by NS is much greater than the 66 rail loadouts that are currently active. Mines operated by Alpha Natural Resources supply the largest amount of metallurgical coal moving through Pier 6. Some of the

coal is mined from property owned by NS subsidiary Pocahontas Land. Other big mining companies that NS moves export coal for are Consol Energy, one of the largest U.S. producers of high BTU bituminous coal, and Xcoal Energy & Resources, which markets and produces metallurgical and thermal coal. ArcelorMittal, a global steel producer who is also a U.S. coal producer, is one of the largest coal customers in Europe and South America served by NS.

Expanding on Step (2): How the Barney Yard Operation Works A barney is an eight-ton locomotive that moves coal cars into place to be unloaded; it is the key to making the Pier 6 rail operation work. The storage yard is actually divided into four sectors: (1) the inbound storage and classification yard, (2) the barney yard, (3) the outbound empty yard, and (4) the minor car repair yard. In the aerial photo these are arranged roughly from upper right to bottom left. Before a ship ties up to the pier, cars designated for that ship are moved out of the storage yard onto a “hill” called the

Other terminals have been known to attempt multi-coal blends using a technique known as chevroning, but they lack the precision of Pier 6’s car-by-car blending. barney yard, where each car is arranged on separate tracks according to the receiver’s recipe. This “hill” provides a 1% slope toward the car dumpers, which is enough slope to cause the cars to roll downhill fast enough to require track retarders to slow them down. Rolling slowly after retarding, the cars run over weigh-in-motion scales that record each car’s weight and scan its identification tag. It is this weight that is used for billing and quality calculations instead of weights computed from vessel draft surveys. When the ship is tied alongside and ready for loading, car handlers in the barney yard release designated cars in a prescribed sequence. For example, to achieve the required blend, it may be necessary to take two cars from one track, one from another, and three from a third. While this is a relatively simple operation for Pier 6, a multi-coal blend

from a ground storage facility can be much more difficult or even impossible to produce. Other terminals have been known to attempt multi-coal blends using a technique known as chevroning, but they lack the precision of Pier 6’s carby-car blending. As the cars continue rolling they move through long white buildings called thaw sheds, which are equipped with heaters to release coal frozen to the cars. The cars are then pushed up a steep slope into a double dumper by an apparatus known as a barney mule. The dumpers consist of identical pair of steel framework cylinders set 40 feet above ground level. Each dumper can dump can dump two cars at a time, water-spraying the coal to minimize dusting while dumping. The coal falls into feeder bins where hammer mills and air cannons break up larger lumps as needed, then onto one

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of two 8’ wide conveyor belts designated as A and A1 leading to the shiploaders. As the blended coal heads toward the shiploaders it is sampled. The two mechanical sampling systems on site were manufactured and installed by Precision Samplers Inc. in 2011. They are identified as B and B1 to correspond to the terminal conveyors (AA1) from which the systems collect samples. Both systems are re-configurations of the original sampling systems and they are identically designed as two-stage/ single crusher systems. They each are also fitted with a cross-belt size-bulk sampler located on the primary feed conveyor to allow for the collection of uncrushed material for the purpose of size determination or other special analyses. Each operating program is time-based and the performance meets ASTM and ISO standards.

What Does the Future Hold for Pier 6? The Panama Canal Expansion (New Panamax) opens in 2015. The question is, “Will Pier 6 be able to take advantage of it?” The answer is, “Yes, but the economic advantage may not be so obvious; the distance through the Panama Canal is almost the same as through the Suez Canal for southern Chinese customers. It will improve for customers further up the China coast.” In 2009, the Panama Canal Authority published the dimensions for New Panamax. The authority has initiated the construction of the third lane of locks having bigger dimension of 427 m (1400 ft) in length, 55m (180 ft) in width and 18.3 m (60 ft) in depth, in order to accommodate larger ships called New Panamax. The new locks are expected to be operational from 2015. The new bigger locks will also help in reducing the locking time and significantly reducing the traffic congestion and the travelling time for ships crossing the Atlantic into the Pacific Ocean and vice versa. The completion of new locks is expected to double the annual tonnage capacity of the Panama Canal, and could triple the capacity of a single coal carrier. Pier 6 has access to far more coal than it is currently shipping, and it is capable of loading far more coal than its record loadings in 2013. Also Pier 6 can load vessels as large as the new very 30 | COAL TRANSPORTER

WELCH FAMILY TRADITION

Daniel K. Welch, Senior Piermaster large ore carriers M/V Negonego and M/V China Pioneer, although both were light-loaded at Pier 6. (Both vessels are capable of carrying 206,000 metric tons each.) When they were loaded at Pier 6 they took on slightly less than 170,000 metric tons each, and were limited to the 50’ channel depth. These vessels are 300 meters long by 50 meters wide, and will clearly fit through the new locks when loaded to a draft of 50 meters. Panamax vessels are limited to about 52,500 metric tons in the old Panama Canal, so it appears the New Panamax would allow at least three times that amount per vessel. The sea distance from Norfolk to Guangzhou via the Panama Canal is about 11,000 nautical miles, only 830 miles or 3 days less than the Suez route. The vessel savings alone should justify shipping larger loads through the New Panamax, but the Pier 6 advantage through Panama should improve as the destination moves to the northeast along the China coast, and as the normal daily rate separation between Panamax and Capesize returns to normal. Pier 6 is well-positioned to take advantage of the New Panamax. s Dave Gambrel is a coal transportation consultant and writer for coal and mining industry magazines. He was senior transportation executive of Peabody Coal for his last 15 years with the company, and served on the DTA Management Committee for ten of those years. He was also advisor to the U.S. Coast Guard delegation to the International Maritime Organization’s Safety of Life at Sea Committee. He may be reached at bunkgambrel@earthlink.net

The importance of the Welch family in the operation of Pier 6 began with Jeanne Welch in 1946 in the Virginian Railroad purchasing department. Her husband Robert J. Welch was hired by Virginian Railway in 1955 to work in their purchasing department, then in the Virginian’s Sewell Point coal pier. When Virginian Railway merged with Norfolk & Western (N&W) in 1959, Jeanne took the buyout package but Robert went to the N&W coal pier. He eventually became senior piermaster and retired from that position in 1987. His son, Dan Welch, would become senior piermaster 21 years later and holds that position today. Dan was hired as a tractor operator in 1976. He moved steadily through a number of key operating and repair jobs until 1990, when he was promoted to his first supervisory job over rail cars and locomotives. In 2003 he was promoted to piermaster, and in 2008 to senior piermaster. Dan’s brother Jim J. Welch is Senior General Foreman of Car and Locomotive Operations. Jim was hired as a track gang laborer in 1978. He became an officer in the car department in 1990, was promoted to general foreman in charge of locomotive operations in 2003, and was promoted to his present position in 2006. Family involvement in the Virginian Railway system actually began in the 1920’s, when Dan’s maternal grandfather Joseph A. Daniel, Sr. was hired. Joseph Daniel, Jr. and James M. Daniel, both sons of Joe, Sr. worked for the Virginian Railway.

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2014 Spring Conference / Preview

NCTA 2014 Spring Conference

April 27 -30 th

Marriott Hilton Head Resort and Spa Hilton Head, South Carolina

he NCTA heads as far east as one can go without getting wet for its 2014 Spring Conference. The Hilton Head Marriott Resort and Spa on Hilton Head Island in South Carolina will be the venue for this event. The second largest island on America’s East Coast, Hilton Head is bordered on the east by twelve miles of broad beach and the Atlantic Ocean and to the west, by the Intracoastal Waterway. In between, it may have the best combination of golf courses, racquet clubs, restaurants, shopping, and amenities that one is able to find anywhere. Bottom line, there’s the beach and then there’s Hilton Head. While we usually find mining and transportation deeply imbedded in the historical roots of every place the NCTA has met, this year we couldn’t find a thing. We suppose that even railroad barons and mining moguls needed to take a break from all that industrial revolutionizing. While you may not get a break from working, it will seem like it with sand between your toes. The conference will cover the state of the coal supply, electric utility, rail carrier, and barge industries as viewed by top management. The Eastern Logistics and Planning Committee will meet in a special Tuesday afternoon session. In addition to the formal program there will be ample time for networking. The opening reception on Sunday will be a great time to catch up and set up

32 | COAL TRANSPORTER

meetings for the week. The golf event on Monday has attracted nearly a hundred golfers in prior years. The annual NCTA dinner will be held on Monday night on an oceanfront patio.

REGISTRATION

Registration is required for each attendee at the NCTA Spring Meeting. The fee is $625.00 for attendees representing a member company and $775.00 for all other attendees when registering prior to April 4, 2014. After April 4th, 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. The fee to participate in the 18th Annual NCTA Golf Tournament is $120.00.

ACCOMMODATIONS:

This year’s hotel insider tip for Hilton Head Marriott is “Life is Better at the Beach”. In addition to being the closest property on the island to the beach, the resort features two outdoor swimming pools surrounded by sundecks furnished with lounge chairs and umbrellas and an indoor pool and spa tub located in a glassceiling pavilion. Bicycles suitable for the beach and Hilton Head Island’s hundreds of miles of bike paths are available for rent

as well as kayaks and canoes for use on Palmetto Dunesâ&#x20AC;&#x2122; eleven miles of lagoons. Beach rentals include chairs, umbrellas, and boogie boards, as well as ocean kayaks, sailboats, and three-wheel beach buggies. The Golf Resort offers three golf courses: the Robert Trent Jones Oceanfront, the George Fazio, and the Arthur Hills. The 18th annual golf tournament will be held Monday afternoon on the Robert Trent Jones Oceanfront Course at Palmetto Dunes. Shelter Cove Harbour, 1.5 miles from the Marriott, offers deepsea and in-shore fishing charters, sport crabbing, sailboat and power-boat rentals, sightseeing and nature excursions, and dinner cruises.

RESERVATIONS: 1-843-686-8400 ROOM RATES PER DAY: $169.00/day Single/Double Room Room rates do not include state and local taxes (currently 10%) or the resort fee of $10/day. The resort fee includes guestroom internet services, toll-free and local calls, fax service, free selfparking, pool towels, spa access to saunas and steam rooms, and access to the game room. The block cutoff date for guaranteed reservations is April 7th. The Marriott Hilton Head Resort & Spa is located at One Hotel Circle, Hilton Head Island, South Carolina 29928. s

Sunday, April 27 5:30pm - 6:30pm Welcome Reception for Early Arrivals

Monday, April 28 8:00am - 11:30am NCTA Board of Directors Meeting 12:30pm - 5:00pm Golf Tournament - Palmetto Dunes 4:00pm - 6:00pm Registration 7:00pm - 9:30pm NCTA Dinner and Entertainment

Tuesday, April 29 6:30am - 8:00am 8:00am - Noon Lunch 1:30pm - 5:00pm

Full Breakfast Buffet - Vouchers Provided General Session Individual Arrangement Committee Meeting and Breakout Sessions

Wednesday, April 30 6:30am - 8:00am Full Breakfast Buffet - Vouchers Provided 8:00am - Noon General Session

COAL TRANSPORTER | 33

This article provides background on a category of litigation referred to as “a class action” along with a summary of the status of an active class action of specific interest to coal shippers.

Class Actions

411

THE ON CLASS ACTION

LAWSUITS An Update on the RR Fuel Surcharge Case BY: Geary Barnes, Spectrum Settlement Recovery

34 | COAL TRANSPORTER

A class action is a lawsuit brought on behalf of numerous injured parties. Courts apply tight standards to determine whether class actions may be litigated on behalf of a group of individuals or businesses (called the “class”), typically evaluating whether the group of businesses on whose behalf the case is brought share a common injury such that their claims can be resolved in one lawsuit. If the court believes the case meets the rigorous standards of the Federal Rules of Civil Procedure, the class is “certified” and may proceed towards trial. Although many businesses are skeptical of class actions because of bias against litigation (businesses often being the targets of such suits), class actions are often the only way that companies can recover from injuries suffered at the hands of other businesses with excessive market power: (i) antitrust cases are typically prohibitively expensive for one entity to devote the resources necessary to obtain a recovery, often costing millions of dollars to pursue the cases to resolution; (ii) proof of price fixing and overcharges necessitate evidence of systemic harm to more than one business; and (iii) class actions allow companies to combine their damage claims into one award, forcing larger businesses with more resources to settle meritorious claims rather than risk an extraordinary damage award after trial. Class certification is the key step in the success or failure of class actions.

The Rail Freight Class Action

The pending class action, In re: Rail Freight Fuel Surcharge Antitrust Litigation, MDL No. 1869 (D.D.C.) (“Rail Freight Class Action”), originates from multiple cases filed in 2007 that were consolidated in 2009 before Judge Paul Friedman. It is potentially one of the largest antitrust class actions in U.S. history, with rail customers against the Class I railroads, BNSF, CSXT, Norfolk Southern, and the Union Pacific. The case alleges that the railroads systematically and illegally overcharged shippers for fuel surcharges from mid-2003 through 2008. In June 2012, Judge Friedman issued a comprehensive class-certification order essentially acknowledging that rail shippers did indeed have a grievance pertaining to railroads’ fuel surcharges. Judge Friedman found that there was enough evidence for these claims to be certified as a class on behalf of all shippers in the U.S., possibly opening the door to a jury trial. In other words, the allegations of the complaint passed the stage that anyone could call it a “frivolous” claim. The railroads appealed, and on August 9, 2013, the U.S. Court of Appeals for the District of Columbia reversed the class certification ruling and sent the case back to the District Court for further review. The U.S.

Court of Appeals ruled that the model used to establish the methodology for potential damages was inconsistent in its results and requested “a hard look at the soundness of statistical models.” This issue was something the trial court “never grappled with,” according to Judge Janice Rogers Brown’s writing for the three-judge panel for the Court of Appeals. Judge Friedman is reevaluating whether the class should be certified. Judge Friedman’s decision has not yet been made, and it is pivotal to success of the lawsuit. While this step in the process may seem to be a setback for the representative rail shipper plaintiffs, their counsel, and the pending class of rail shippers, further certification by Judge Friedman may ultimately result in a more highly defined and precise method for the establishment of damages due to rail shippers. Stephen Neuwirth, an attorney at the firm who serves as co-lead counsel for the plaintiffs stated, “While this obviously was not our preferred outcome, we are gratified that the case was remanded. We are confident that we will be able to demonstrate that the damages model in fact satisfies the highest standards that have been set by the courts, and that ultimately the case will move forward as a class action.” If the class is certified, rail shippers should be aware that cases of this size, with alleged damages in the billions of dollars, are unlikely to ever reach a jury. In major anti-trust litigation it is more common to see both parties come to terms with a negotiated settlement than to risk extraordinary, trebled damages at trial (Defendants’ risk), or possibly a complete loss (risk to the Class).

Slover &Loftus ATTORNEYS AT LAW

Potential Recovery

What is striking in the Rail Freight Class Action is that the range of possible damages is enormous. In a report commissioned by the American Chemistry Council in 2007, an estimated $6 billion dollars in fuel surcharges were collected from 2003 through early 2008 in excess of the actual cost of fuel. Considering that this antitrust case includes fuel surcharges through 2008, one might expect a number higher than $6 billion. One important fact that rail shippers should know: if the case does move forward as a class action they will already be part of this litigation as a class member. Class certification anew would enable eight representative shippers to be heard by the courts on behalf of all rail shippers in the U.S. – estimated to number as many as 30,000. While attorneys work to confirm the soundness of statistical models, and confirming the claim that shippers were overcharged, many shippers will not be aware of the case’s progress until official notices are mailed if a settlement is reached. History shows that these types of cases take many years to resolve. Coal rail shippers should pay particular attention as they would be likely to be affected due to coal shipments under railroad contract rates having had fuel surcharges applied during the applicable time frames. It is in coal shippers’ best interest to consider now the collection of their historical rail freight payment data for the subject years of 2003 to 2008 to maximize any potential recovery resulting from any settlement that may be established. s

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COAL TRANSPORTER | 35

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.

WL&P Meeting at the BNSF

Western Logistics & Planning The Western Logistics & Planning Committee met on February 13, 2014 at BNSF Headquarters in Ft. Worth, Texas. Molly Mitchell (Peabody Energy) led the meeting as the new WL&P Chairman. Jeff Zerkle (AEP) has agreed to serve as Vice-Chairman. George Duggan, Group Vice President Coal Marketing for the BNSF welcomed the group to Fort Worth and provided the safety briefing. With many new faces in the crowd, Tom Canter, NCTA Executive Director, gave a short history of the Western Logistics and Planning Committee and its contributions to the efficient movement of coal.

Railroad updates on volumes moving out of the PRB and Colorado/Utah were provided by Beth Zeigler for the Union Pacific and Will Cunningham of the BNSF. Dave Freeman, BNSF Vice President of Transportation, provided an operations update and covered the BNSFâ&#x20AC;&#x2122;s capital expenditure plans for 2014. Service issues were on the minds of many of the attendees. The BNSF offered one-on-one meetings for customers to address specific service problems. Paul Anderson, BNSF Vice President, Marketing Support provided a general economic outlook. After the break, Chuck West, Manager Coal Procurement at American Electric Power gave a sobering account

Education Committee The Education Committee administered the NCTA scholarship program with Mindy Watson-Ward (Cloud Peak) serving as Chairman. Randy Van Aartsen (We Energies) continues to serve as Vice-Chairman. In September of 2013, four scholarships were awarded to students who are children of employees of NCTA 36 | COAL TRANSPORTER

of the impact of new regulations on coal burning power plants. How the planned coal plant shutdowns will be reconciled against how badly they were needed during the most recent winter storms remains to be seen. Carol Scarborough, Director of Customer Fleet Services for FreightCar Rail Services took a closer look at railroad cycle times from a customer perspective illustrating not only how they impact daily utility operations but the downstream effect on routine preventative maintenance plans and expenses. The day concluded with a discussion on dust mitigation and a networking lunch hosted by BNSF. A special thank you goes to Will Cunningham for his efforts in coordinating this meeting. s

member companies. In addition, scholarships were awarded to one student each at the University of Wyoming, the University of Arizona, the South Dakota School of Mines and Technology and the University of West Virginia. The NCTA Board of Directors also authorized a contribution to the Daniel Ochoa Memorial Fund. s

Operations and Maintenance The Operations & Maintenance Executive Committee had some internal changes in the latter part of 2013 due to a number of job changes and retirements. Dennis Wanless (Xcel Energy) took over as Chairman in September. New committee members include Troy Smith (Consumers Power), Kevin Johnson (Nebraska Public Power District) and Shon McNamara (Dynegy). Kurt Stroer (Ameren) is now serving as the program committee chairman and will be putting together the agenda for the 2014 Operations and Maintenance Conference, this year to be held at the Grand Summit Hotel in the Canyons Resort in Park City, Utah. The committee continues to offer members great educational value through its series of webinars. A webinar was held November 1st on Standards and Recommended Practices for Bearing Replacements. Todd W. Snyder, Ph.D., Director Advanced Freight Car Engineering for the Union Pacific Railroad was the presenter. If you would like to make a webinar presentation or have an ides for one, please contact Gayle TenBrink (TrinityRail) who is chairing this educational outreach. Tom Sedarski (Ellcon National) is heading the technical review group (Tech Review) within the O&M Committee. One of the docket items that the Tech Review committee is currently

Eastern Logistics & Planning The most recent Eastern Logistics & Planning Committee Meeting was held October 17 at the Norfolk Southern coal export terminal in Norfolk, Virginia. A month earlier the Pier 6 terminal at Lamberts Point celebrated two major milestones. On September 18, the Norfolk Southern commemorated the fiftieth anniversary of the original dedication of Pier 6. Three days later, employees celebrated setting a new U.S. record for coal loaded into a single ocean-going vessel, when 168,977 net tons of coking coal on the Negonego, departed for a steelmaking plant in China. Performance updates were provided by Mark Hamilton of Norfolk Southern (NS), and Jack Burgess of CSX. Featured speakers included Drew Nelson introducing his company, the Wheeling & Lake Erie Railroad; Bill McHale, Kanawha Scales & Systems, covering modern rail loadout technologies; and Chuck Renner, SGS, explaining why train quality sampling matters. After a catered lunch of southern barbeque, the group toured the

working on is the development of a universal wheel removal template. The purpose of this template is for the collection and study of wheel removal data gathered from participating NCTA member companies and entered into one large data base. With wheel change-outs being the number one maintenance expense for coal car owners, the Tech Review Committee feels Dennis Wanless that there is value in studying a large (owner anonymous) data base to help identify trends and commonalities pertaining to wheel life and may lead to solutions to reduce premature wheel change-outs. This template is currently being validated by the Tech Review Committee and reviewed by the Executive Committee. Once validated, the template would be offered to the NCTA membership for volunteer participation. In addition to the activities above, the committee participants continue to contribute editorial content for the Coal Transporter. s

terminal facility and its unique loading operation. Read more about the operation on page 24 of this issue. The NCTA appreciates the Norfolk Southern for hosting this event. Planning for the Spring EL&P meeting is underway. Jeff Zerkle (AEP) and For the first time, the EL&P Mark Roberts (NS) will meet in conjunction with the Spring Conference. The late April date of the conference and East Coast location created a great deal of synergy in combining these events. It provides an opportunity for more members to be exposed to the work of the committee and for committee members to attend the conference. Contact Chairman Edwin Fisher (Arch Coal) if you have agenda ideas or audience response questions for this meeting. s

COAL TRANSPORTER | 37

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Infrastructure / Exports

LNG AND COAL Unreasonable Delays in Approving Exports Likely Violate International Treaty Obligations BY: National Association of Manufacturers

ecent technological breakthroughs in natural gas production, combined with growing worldwide demand for fossil fuels, have caused major shifts in domestic energy markets and spurred U.S. producers of both natural gas and coal to sell their products overseas, particularly in Asia. However, before natural gas and coal companies can serve these overseas markets, exports must be approved and new export facilities must be constructed in the United Statesâ&#x20AC;&#x201D;facilities that require both federal and state permits. For a variety of reasons, companies have encountered long delays in acquiring the export licenses and permits necessary to construct these facilities in the United States. Permitting delays have become commonplace in recent years for developers of any large infrastructure project in the United States. However, when those delays impact the free trade of goods, they potentially run afoul of other interestsâ&#x20AC;&#x201D;namely, the international obligations of the United States under the World Trade Organization (WTO) agreements and the actions of other countries restricting their own exports of natural resources and other products. To better understand the conflict between domestic permitting regulations and our international obligations, the National Association of Manufacturers retained James Bacchus, former chairman of the Appellate Body of the WTO, to provide his expert legal opinion. Bacchus served eight years on the WTO and was twice elected chairman; he possesses a comprehensive knowledge of the more than 30,000 pages of global trade rules in the WTO treaty, and he has written many of the more than 50,000 pages of rulings that have clarified those rules in WTO dispute settlement.

40 | COAL TRANSPORTER

Bacchus was asked to answer two questions: (1) whether unreasonable delays by the Department of Energy to issue licenses to export liquefied natural gas (LNG) to foreign countries constitutes, in and of itself, a violation of our international obligations under the WTO; and (2) whether efforts by state and local authorities in the Pacific Northwest to unduly broaden the scope of the environmental review process for planned coal export terminals beyond the federal scope, and the resulting delay, constitutes a violation of our international obligations under the WTO. Bacchus answered both questions in the affirmative. Bacchus concludes that the implementation of U.S. rules in ways that unnecessarily impede exports of LNG and coal likely violate WTO rules forbidding export restrictions. The delay in granting LNG export licenses constitutes export restrictions, which are not excused by any of the exceptions available for the protection of the environment or human health or for the conservation of natural resources within the WTO. Similarly, Bacchus believes that state and local reviews of coal export terminals that are attempting to assess the expanded impact of coal production and use in other parts of the world are likely to constitute export restrictions and are unlikely to satisfy any of the exceptions, also likely violating the United Statesâ&#x20AC;&#x2122; WTO obligations. The implications of these unreasonable delays in export approval of U.S. energy resources are substantial, not only in terms of enforcement under the WTO rules, but also for the precedent they set for other nations that are restricting U.S. access to their natural resources and other products, which has highly negative impacts throughout the manufacturing sector. s

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2014 Operations and Maintenance Conference / Preview

2014 Operations and Maintenance Conference Grand Summit Canyons Resort, Park City, Utah | June 9-11, 2014

CTA Operations & Maintenance Committee will hold its annual conference June 9-11, 2014 at the Canyon Resortâ&#x20AC;&#x2122;s Grand Summit Hotel in Park City, Utah. Long before Park City became a world class mountain destination and one of the main sites for the 2002 Olympic Winter Games, it was famous as a silver mining town. In 1868 prospecting Army soldiers discovered rich silver veins in the hills above what would become Park City. The completion of the Transcontinental Railroad on May 10, 1869 brought hopeful miners by the droves to Utah. The Golden Spike National Historic Site at Promontory Summit, a must see site for any true railroader, is just 90 minutes from Salt Lake Airport. The conference will include 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 roundtable will consist of a two part session on Monday with the morning session opened to NCTA voting members and the afternoon session open to all members. 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 $430 for members and $580 for nonmembers. After May 16th, 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.

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Conference sponsorship opportunities are available at three levels of support - Plati42 | COAL TRANSPORTER

num $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.

ACCOMMODATIONS

The Grand Summit Hotel, an AAA Four-Diamond resort, sits majestically in the heart of the Canyons Resort Village with a variety of room options including standard hotel rooms, studios, 1, 2 and 3 bedroom suites and expansive luxury penthouses. Some rooms have balconies, fireplaces, whirlpool tubs and/or full kitchens. The hotel features an outdoor heated pool, the perfect spot to relax after a variety of summer activities including hiking, mountain biking, gondola rides and even hot air ballooning, all offering incredible views of mountain peaks and wildlife. A luxurious spa treatment from the Canyons Resort Spa and Health Club is another option. Park City’s historic Main Street, only 4.2 miles from Canyons Resort offers a variety of dining, shopping and entertainment options.

RESERVATIONS: 888-464-3111 or 435-615-8040 ROOM RATES PER DAY: $159.00 Single/Double | $209.00 One Bedroom Suite Taxes and a 6% daily resort fee are additional. The resort fee covers wireless internet access, newspaper, in room coffee, resort shuttle, and access to the fitness center, sauna, steam room and pool. The cutoff date for the NCTA room block is Friday May 16, 2014. The guaranteed check-in time is 4:00 PM and checkout time is 11:00 AM. The Grand Summit Resort Hotel is located at 4000 Canyons Resort Dr. Park City, Utah 84098, a mere 35 minutes from Salt Lake Airport. s

Monday, June 9 9:00 a.m. – 12:00 p.m. 12:00 p.m. – 1:15 p.m. 1:30 p.m. – 3:30 p.m. 6:00 p.m. – 7:00 p.m.

Private Car Owners Roundtable – Voting Members Lunch by Individual Arrangement Private Car Owners Roundtable – All Members Welcoming Reception – Cabin Room

Tuesday, June 10 7:30 p.m. – 8:00 a.m. 8:00 a.m. – 12:00 p.m. 12:00 p.m. – 1:30 p.m. 1:30 p.m. – 5:00 p.m. 6:00 p.m. – 9:30 p.m.

Continental Breakfast – Kokopelli General Conference – Kokopelli Lunch by Individual Arrangement General Conference – Kokopelli Dinner – Sundial Pavilion

Wednesday, June 11 7:30 a.m. – 8:00 a.m. 8:00 a.m. – 11:30 p.m. 1:30 p.m. – 6:00 p.m.

Continental Breakfast – Kokopelli General Conference – Kokopelli Optional Golf Tournament

COAL TRANSPORTER | 43

AAR Interchange Rules / Update

Office and Field Manuals AAR Interchange Rules Changes for 2013/2014 Each January and July the AAR Field and Office Manual rules are updated. The following is a summary of a few of the changes from July 2013 and January 2014, as well as some current railcar industry initiatives. BY: Tom Mordock, GATX Rail

44 | COAL TRANSPORTER

Rule Changes:

End train line arrangements: Failure to maintain the dimensional relationship between the end hose gland hand and the coupler pulling face can cause air hose separations, which are a major cause of undesired emergency brake applications and lead to train stops. A variety of changes to Rule 4, 5, 16, and 59 should improve the repair process and contribute to reduced separations.

Component Identification (CID): Since 2012, you have been required to report wheel CIDs to Railinc whenever wheel sets are replaced. Beginning in 2014, the AAR, under Rule 44, will require you to report whenever a wheel set is transferred from one location on a car to a different location or to a different car. At the same time, CID reporting has been expanded to bolsters, side frames and couplers. CID reporting for brake valves is tentatively scheduled for implementation in 2015. It is important that you submit CIDs to Railinc.

Wheel Set Replacements: AAR

added a provision to Rule 41.A.1.y that makes wheels worn hollow 5mm or more condemnable at any time. These wheels can create a false flange of the wheel at the wheel/rail interface and be a safety issue. Railroads will likely use trackside machine vision detectors to identify such wheels in the future, however, a gage currently needs to be used to verify it. Also, AAR has changed Rule 41.A.l, which covers thermal cracked wheels, to better clarify and define thermal cracks.

Charges for Jacking Cars: AAR has

created a new job code, 4461, to cover the charge for jacking a car when the truck is not rolled out from under the car. The new job codeâ&#x20AC;&#x2122;s time standard is 34% less than the standard jacking code, which includes the labor time to disconnect the brakes and roll the truck away from the car. This new job code is not applicable for any wheel replacements. Also, the jacking method is always determined by the repairing entity.

Brake Shoe Stencil: AAR has removed the requirement

for composition brake shoe stencil from Field Manual Rule 88.B.1.(d) 1. There is no need for you to continue maintaining this stencil.

Damaged & Defective Car Tracking: AAR changed Rule 115.A.11 to allow a third party to invoice the damaging railroad for a Rule 95 or 107 incident if a stenciled car mark owner has designated a third party to handle those incidents. The designated third party must be signatory to the AAR Interchange Rules. FindUs.Rail: While there were no significant changes to Of-

fice Manual Rule 114, this is a good time to remind you of the continued increasing importance that all contact information is accurate and up-to-date. Railinc has authority to update contact information if a car owner doesn’t, so please keep all required information up-to-date.

AAR Interchange Rules: Cost/Benefit Analysis Requirements On February 3, 2014 the AAR issued Circular C-12098. The Circular implements changes to Rules 121, 123, Manual of Standards and Recommended Practices (MSRP) S-050, and to Appendix A. Definitions. These changes create procedures for calculating the costs and benefits of new interchange rules and to introduce sharing of those costs between railroads and car owners if certain thresholds are not met. Changes are also implemented to the AAR Cost Benefit Analysis Procedure. Implementation of these changes is effective immediately. You should review that circular and C-12059 if you have not already done so.

inspection criteria, it is increasingly important that the industry defines standards, rather than the individual railroads. The AHTF is working with the FRA on many fronts including various wayside systems such as wheel temperature detectors. Hot and cold wheels can help determine the functionality of each freight car’s braking functionality. There are numerous other efforts in progress such as line of road failures, bad actor cars, repeat repairs, and data integration. As the industry uses new technology and shares data it will be better able to identify cars and components that are not performing well. This new information will likely lead to some rule changes for the AAR Field Manual, Office Manual and the Manual of Standards and Recommended Practices. Needless to say, you may still be concerned about data confidentiality, as are railroads and suppliers, since all recognize data confidentiality is imperative. Additionally, it is anticipated there will be future discussions to identify who should cover which costs. s Tom Mordock is a graduate of the California Maritime Academy and University of Phoenix. He began railroading in 1973, working six years for Southern Pacific Railroad before moving into the leasing business at Itel Rail (acquired by GE Rail Services in 1992). In 2010, Tom joined GATX Rail. He has been a member of the AAR Arbitration & Rules Committee since 2000, is a past chairman and the current vice chairman. He is a member of the AAR Asset Health Task Force, a past member of the AAR Equipment Health Monitoring Committee, has been active with North American Freight Car Association, Mechanical Association of Railcar Technical Services and a longtime advocate for private car owners.

Asset Health Task Force (AHTF):

The following is a very brief overview of the AHTF, and it is possible that Railinc or the AAR will schedule either some webcasts or face-to-face meetings with NCTA to fully explain this multi-year initiative. The AHTF was formed in early 2012 to identify and address industry issues that IT solutions and processes can address. The AHTF’s long-term goals include supporting cost effective operations, enabling more reliable service through effective asset health, and enabling industry-wide increased velocity, capacity and safety. Railroads currently benefit from their own asset health systems, but information and data is not readily shared between railroads and car owners. The AHTF is led by Railinc and includes representatives from railroads, the AAR and private car owners. There are three teams reporting to the AHTF. The first group, the AIR group (Asset Information Repository), is working on an industrywide data/information repository. This will likely include data from wayside detectors, UMLER, EHMS (Equipment Health Management System) Early Warning & Maintenance Advisories, Damaged & Defective Car Tracking, Component Tracking and Car Repair Billing. The second group, the E-Train group, is focused on developing the data/information that will be available at a train- or consist-level, and the third group, Inspection Quality, works on detector and data standards. As the industry moves toward using data to find defects rather than physical

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Surface Transportation Board / Update

Surface Transportation Board Update Surface Transportation Board Upholds “Safe Harbor” Provision of BNSF Coal Dust Emission Standard BY: Thomas W. Wilcox, Partner, GKG Law, PC

n December 17, 2013, the Surface Transportation Board served a decision in STB Docket No. FD 35557, Reasonableness of BNSF Railway Company Coal Dust Mitigation Tariff Provisions, a proceeding started by the Board on its own motion to give coal shippers the opportunity to challenge a “safe harbor” provision added by BNSF Railway Company to its amended tariff provision requiring coal shippers to reduce the amount of coal dust lost from railcars during transit from mines in the Powder River Basin (“PRB”). The Board had previously ruled that the tariff provision - BNSF Price List 6041-B, Item 100 - was unreasonable and violated 49 U.S.C. §10702.1 In the December decision, the Board found the safe harbor provision to be reasonable, with the

exception of its liability provision, which the STB ordered BNSF to remove from Item 100. This article discusses some of the key aspects of the decision, and its aftermath. The safe harbor provision was added to give refuge to coal shippers from complying with the revised tariff standard, which is that shippers “take measures to load coal in such a way that any loss in transit of coal dust from the shipper’s loaded coal cars will be reduced by at least 85% as compared to loss in transit from coal cars where no remedial actions are taken.” Under the safe harbor, shippers would be deemed to be in full compliance with the tariff’s coal loading requirements if they applied one of BNSF’s five approved suppression methods to their railcars and loaded them pursuant to a defined loading profile.

Alternatively, the provision allowed shippers to propose equally effective coal suppression methods for BNSF’s approval. In the decision launching FD 35557, the Board also stated that interested parties could provide comments on issues related to the reasonableness of the “safe harbor” provision, such as the absence of penalties for non-compliance, the lack of a mechanism for sharing the costs of complying, and shipper liability associated with the use of the BNSF-approved topper agents. In their comments in FD 35557, coal shippers and shipper organizations argued that the safe harbor provision was unreasonable, and that the tariff provision as a whole was still unreasonable, because the coal dust suppression measures specified in the tariff: (1) did not effectively reduce coal dust emissions;

The safe harbor provision was added to give refuge to coal shippers from complying with the revised tariff standard, which is that shippers “take measures to load coal in such a way that any loss in transit of coal dust from the shipper’s loaded coal cars will be reduced by at least 85% as compared to loss in transit from coal cars 1 STB FD 35305, Ark. Elec. Coop. Corp. – Pet. For Declaratory Order where no remedial actions are taken.” (Served March 3, 2011)(“Coal Dust I”). 46 | COAL TRANSPORTER

(2) did not provide certainty of compliance to shippers; (3) were unreasonably expensive; and (4) contained a liability provision that broadly held shippers liable for the negligence of BNSF and of third parties. For the most part, the Board rejected all of the coal shipper arguments.

Refusal to Re-open the Board’s Findings in Coal Dust I The Board first declined to revisit its prior findings in Coal Dust I, the most significant of which was that “coal dust is a particularly harmful contaminant of ballast that requires corrective action.” This finding was significant because it undercut the coal shippers’ reliance on the long history of Powder River Basin coal railroading and industry practice, which utilized fully loaded, uncovered gondola railcars and the BNSF and UP addressed any accumulation of coal dust and other substances in the ballast through proper track maintenance, the costs of which were recouped from coal shippers in their rail rates. Having crossed the bridge of finding coal dust a harmful contaminant, the Board determined that BNSF could adopt reasonable loading requirements to reduce dust loss, and that containment efforts are superior to the historical industry practices of maintenance alone.

Since many coal shippers already take “remedial measures” that control coal loss (i.e., profiling) this raises the question of what starting point applies to them, and how to accurately measure the 85% reduction target once the starting point is determined. spraying chemicals on trains controlled coal dust and concluded this was the case. It relied on general information concerning topper agents in the United States and Canada, and also BNSF’s so-called “Super Trial” tests, which were a series of laboratory and field tests of topper agents and body chemical treatments. Shipper interests had argued in FD 35557 that the Super Trial tests could not show that the approved topper agents effectively reduced coal dust emissions because of inadequacies in the trial’s design and execution. They also challenged the ability of topper sprays to adequately control coal dust loss over longer distances, among numerous other arguments. The Board rejected all of the shipper interest’s arguments, and found that “the Super Trial was sufficient to demonstrate that load profiling and the application of approved topper agents reduced coal dust loss by 85 percent or more.” The Board also concluded, despite the large amount of shipper opposition,

that “shipper interests that oppose the tariff have not offered any evidence that directly contradicts the results of the Super Trial.”

Uncertainty of Compliance and Penalties for Non-Compliance Some commenters, including NCTA, argued that Item 100 as revised was still unreasonable because it still did not provide sufficient certainty to shippers since the “85% standard” shippers may seek safe harbor from is not measurable. In other words, a shipper can’t know whether it even needs to incur the costs of applying the safe harbor topper agents because it has no way of knowing if it is not

Effectiveness of Topper Agents as a “Safe Harbor” In determining whether the safe harbor provision was reasonable the Board focused primarily on whether

COAL TRANSPORTER | 47

already complying with the base 85% standard. Since many coal shippers already take “remedial measures” that control coal loss (i.e., profiling) this raises the question of what starting point applies to them, and how to accurately measure the 85% reduction target once the starting point is determined. The Board sidestepped the issue of uncertainty of compliance with the revised tariff’s 85% standard, stating that “NCTA’s argument regarding the starting point and measurement of the 85% standard is not relevant to the degree of certainty to shippers that use it regardless of how the 85% standard is measured.” The Board also stated the provision “85 percent as compared to loss in transit of coal dust from coal cars where no remedial measures have been taken” established “a clear starting point... for measuring the efficacy of alternative coal dust mitigation measures for shippers that wished to employ an alternative to the safe harbor.” However, the Board did not provide any guidance or insight on exactly how such measurements would be accomplished, and the December decision appears to leave such questions for individual cases brought to the Board.

48 | COAL TRANSPORTER

Similarly, in the area of enforcement for non-compliance, a major concern of shipper interests in Coal Dust I, and one of the reasons for the Board’s initial rejection of Item 100, the Board stated that “Given that full compliance with this tariff has not yet begun, it is prudent to wait to see how the tariff and enforcement works in practice before we opine on enforcement methods. As we have noted, shippers will

The Board rejected shipper commenter claims that the safe harbor was not cost effective because other approaches could achieve the desired results at a lesser cost, stating that the burden to demonstrate a lack of cost effectiveness was entirely on the parties challenging the tariff provision, and that they had not met this evidentiary burden.

have 60 days to bring complaints to the Board before BNSF takes enforcement action.” The Board reconciled the apparent inconsistency between this position and its prior uneasiness with the lack of any enforcement penalties in the tariff by saying that the revised Item 100 did not contain the “overwhelming evidence of uncertainty present in Coal Dust I.” On the enforcement issue critical to coal shippers from the outset of the overall coal dust control issue in 2005 – the potential denial of service from BNSF due to its determination of non-compliance – the Board concluded that such concerns are “premature,” particularly given BNSF’s commitment to provide at least 60 days’ notice of any enforcement action. The Board therefore stopped short of foreclosing denial of service as an option for noncompliance, or narrowly defining the circumstances where service could be denied, two rulings that were specifically sought by NCTA and others.

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The Board also concluded there was no evidence that topper agents were cost prohibitive, particularly in relation to the delivered cost of PRB coal, which was approximately $30 per ton according to BNSF’s evidence. Evidence submitted by shipper interests estimated spraying costs to be between $0.10 and $0.75 per ton.

Safe Harbor Risks

The Board also rejected the arguments of AECC that there are safety issues associated with the use of the selected topper agents.

Approval of Alternatives to the Safe Harbor Measures The Board disagreed with AECC and NCTA that the language in the tariff concerning the approval of alternative control processes was unreasonable because it presented a high, expensive hurdle to shippers who desired to use an alternative method of compliance. However, the Board further stated that if a shipper believed that BNSF

50 | COAL TRANSPORTER

unfairly denied approval of an alternative method, that shipper could bring a complaint to the Board. The Board also stated that it would be unreasonable for BNSF to refuse to cooperate with shippers in evaluating and testing lower cost methods of meeting the 85% coal dust reduction requirement, and that the Board expects BNSF to cooperate in good faith regarding all issues related to testing alternative methods of coal dust suppression.

Responsibility for Compliance Costs For a variety of reasons, the Board did not find it unreasonable that the revised tariff placed all responsibility for compliance costs on the affected shippers, instead of requiring BNSF to incur the costs initially and then pass them back to shippers through transportation rates. For example, the Board stated that requiring shippers to incur all the costs in the first instance was consistent with the rule that carriers can require shippers to undertake certain loading requirements

at their own expense. The Board also disagreed that controlling the emission of coal dust from rail cars translated into less track maintenance for BNSF, and therefore a double payment by shippers for coal dust control (since arguably the full maintenance component is still included in BNSF’s rail rate even though less maintenance is being performed). Further, the Board stated that “if a shipper believes it has the basis for reducing BNSF’s rate because the reduction in coal dust emissions will reduce BNSF’s costs or for other reasons, it may file a complaint against BNSF’s rates.” Finally, the Board noted its belief that “BNSF has an incentive to consider compliance cost given the competitive environment PRB coal faces,” and that BNSF must give equally effective, but less expensive, alternatives proposed by a particular coal shipper fair consideration.

Invalid Liability Provision

The revised tariff stated that “(a)ny product including topper agents, devices or appurtenance utilized by the Shipper

or Shipper’s mine agents to control the release of coal dust shall not adversely impact railroad employees, property, locomotives or owned cars.” The Board found that this liability provision was unreasonable because it was overbroad and ambiguous, and ordered BNSF to remove that language from the tariff.

Aftermath of the December Decision On January 6, 2014, AECC filed a Petition for Reconsideration of the December decision, arguing that it was contrary to evidence in the record, unsupported by substantial evidence, and inconsistent with the Board’s own rulings in Coal Dust I. In a nutshell, AECC argued that “the Board gives the railroads carte blanche to impose hundreds of millions of dollars of additional costs on coal shippers and their customers, simply to cover up the railroads’ own responsibility for causing coal dust to foul the PRB trackage” through improper or insufficient track maintenance. Moreover, AECC argued the costs to be borne by

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AECC argued that “the Board gives the railroads carte blanche to impose hundreds of millions of dollars of additional costs on coal shippers and their customers, simply to cover up the railroads’ own responsibility for causing coal dust to foul the PRB trackage” through improper or insufficient track maintenance.

and their customers will far exceed any benefits from their control of coal dust emissions. BNSF replied to the Petition on January 27, 2014, and the matter remains pending at the Board. In the meantime, revised Tariff Item 100, minus the liability language, went into effect on January 15, 2014. To date, no coal shipper has filed a complaint with the Board challenging BNSF’s implementation of the tariff’s provisions. s Thomas Wilcox is a Partner in the law firm GKG Law, P.C., located in Washington, D.C. Tom has represented rail shippers of coal and many other commodities in commercial, regulatory, and litigation matters for nearly 25 years. He has also represented non-shipper entities on railroad matters, including NCTA in both of the Board’s coal dust proceedings. The views expressed in this article are solely those of the author and not offered for legal advice. Questions about the subject matter of the article can be directed to Tom at 202-342-5248, or twilcox@gkglaw.com.

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GIS use is rapidly growing in the rail industry; however, due to the degree of planning and detail necessary, the use of GIS is still not common in many parts of railway operations.

Developing a

Rail Marketing

Geographic Information System BY: T. Allen Morgan, Norfolk Southern with Professor Frank Hardisty, Penn State University

eographic Information be producing geographic resources for verting 100 years of static printed maps Systems, often abbreviated the department, but I began to wonder to digital form while the other group “GIS”, can store, analyze, and what geospatial sources were available needed to digitize more than 25,000 present spatially-referenced before my arrival. I found more detailed miles of rail infrastructure. By the turn data in useful ways. GIS use requests were sent outside the group to of the millennium, both groups had beis rapidly growing in the rail industry; others within the company trained in come accustomed to GIS programming however, due to the degree of planning GIS applications while simpler needs and had developed internal GIS groups and detail necessary, the were directed to some of staffed with GIS professionals. (Kirk use of GIS is still not In order to understand the more senior employ- 2013) (McGehee and McGuire 2001). common in many parts ees within the departIn 2008, Congress passed the Rail of railway operations. where we needed to ment. Although a numSafety Improvement Act requiring all This article describes the ber of useful geographic class one railroads to develop and install development of GIS for go, I wanted to find data sources existed for a traffic control program known as the use of the marketthe department, the data Positive Train Control by the year 2015. ing department within a where we had been. had not been aggregated This accelerated the need for geospatial Class I railroad. We start into a single source, partechnology within the rail industry by describing the genesis of the project, ticularly not in digital format. causing rail companies to expand their describe the recent history of mapping In order to understand where we geospatial data resources and capabilities. technologies in railways and describe our needed to go, I wanted to find where As the various rail carriers throughout planning and preparation stage, move to we had been. So I began researching the nation began increasing their staff the design implementation and construcmapping history within the company. of geospatial professionals, in 2010 our tion stage and conclude with the testing I found two administration and production stage which completes mapping entities In 2008, Congress passed the established a GIS Phase I of this ongoing project. We hope exist within the group to help this account will help readers understand organization. The Rail Safety Improvement Act satisfy the 2008 more about mapping and spatial analysis railroad’s land rail safety mantechnologies in railways, and learn about requiring all class one railroads to date, to assist management how user-centered software design and group, created in the engineering implementation practices for railways develop and install a traffic control department with 1901, was used can be put into effect to develop software to manage the the digitization that truly serves the needs of its users. program known as Positive Train of the rail system railroad’s real In the summer of 2012 shortly after estate and carand the managetaking a new role in resource developControl by the year 2015. tography, while ment of LIDAR ment within the marketing departthe engineering mapping data ment, I began receiving requests from department was given the responsibility of the rail infrastructure, to assist with within the department for the creation of of mapping the rail infrastructure. In the various other geospatial programs, and to maps, geographically-based PowerPoint 1990’s the two groups began using GIS. create an enterprise GIS system for the slides, and map data sets. I was glad to One group had the daunting task of concorporation (Financial Reports, N.D.). COAL TRANSPORTER | 53

Image depicts rail, coal deposits, regions, and origins. Coal deposit (USGS 2013). States (US Census 2013). Although the corporation was developing a companywide GIS system, this system would not be designed for the specific needs of the marketing department. By the time I had researched the company mapping history, I had come to the conclusion we needed a customized GIS within our group for our individual users. Having studied under Professor Frank Hardisty in pursuit of my Master’s Degree in GIS at Penn State, I discussed with him the real world process of GIS development. Also, with the support of my supervisors, in September 2012, I obtained the necessary permissions from my administration and began the process. I would be working with a single product segment – coal - and would concentrate on all coal types, coal customers and coal transportation equipment. I realized in order to make this 54 | COAL TRANSPORTER

work, I would have to understand the functionality of our enterprise GIS (EGIS). I would need to take a close look at the structure of the EGIS group and the base program they were developing to see what they had available to use in the development of our marketing GIS. In order to do this, I scheduled a meeting with the EGIS group in Atlanta in October 2012 and performed a thorough review of their GIS program. The EGIS group assisted me with establishing a user’s license for ArcGIS, a geographic development program owned and licensed by Environmental Systems Research Institute. ArcGIS is the platform in use by EGIS and is necessary in order to develop the files, tables and databases needed for the group GIS. Second, the EGIS group had developed a core base server in Atlanta which a

user within the company could migrate geospatial data to allow others within the company to access as a customized GIS. These two items provided the primary pieces needed in order to import the group’s geographic data, build the necessary files and distribute the information to the individual users. A formal plan was created in November and December 2012 in preparation for the actual construction. The plan involved detailed steps beginning with a meeting in January with department administrators to discuss the most important capabilities needed in the system. Time was allotted for interviews of future users within the group as well as prototyping sessions to develop the layout and feel of the program. Further plans were made for researching and building the spatial database as well as making spot

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Geospatial data comes in many forms and formats. We see it in automobile dashboards in the form of GPS, in cell phones to assist in locating a restaurant, and online as satellite imagery.

All in all the process is not terribly complicated, yet a certain set of steps must be satisfied in order to develop any GIS project into a useful tool.

Image by Allen Morgan, 2013 56 | COAL TRANSPORTER

checks in the field confirming the accuracy of the data. Starting in June 2013 the data would be checked for quality, the data would be tested and the system would be placed into production. Finally, once in production, the system was designed to allow for corrections, changes, additions, and monthly maintenance. An administrative meeting was held in January with a presentation to the officers of the coal group with the intent of receiving feedback and establishing direction. By going through this process, the fundamental needs of the group were determined and tangential concepts were reduced in scope. Members offered ideas and helped shape the most necessary aspects of the project through open discussion. The administrative meeting began the building phase starting in January 2013 which continued to July 1st, 2013. Starting in mid-January, interview sessions as well as prototyping sessions were held with various members of the group. This time period was perhaps the most significant step in the process. In order to provide a system that truly satisfies the needs of the users, the designer must know and understand what the users’ needs are. Therefore, from this point on, the entire software development process followed user-centric design principles. Through information obtained from the interviews, the group was divided into three disparate user segments. The first unit provides planning and analysis data for the marketing group and was identified as “planning analysts”. A second unit consists of account managers, pricing agents and sales reps and was identified as “marketing agents”. The last unit consists of customer service agents and traffic managers and was identified as “transportation coordinators”.

Individuals from each group identified specific items they would like to see within the GIS to satisfy their needs. The planning analysts revealed they need to determine product by region or origin, as well as be able to determine product destinations. They would like access to customer attribute data, and they would like to be able to determine interchange locations along each route. The marketing agents expressed a need to determine crew districts as well as crew swap points. By determining crew districts, the agents could quickly determine lane rates and the number of crews needed to move a train from origin to destination. They would also like to be able to pull customer profiles, determine certain geographic attributes about the customers’ locations, and the proximity between origins and destinations. The transportation coordinators emphasized their needs for visually referencing origins with destinations connected by routes. They would like to see each major serving yard along each customer route. They would like to be able to determine where each ruling grade is, locomotive tonnage ratings for each route, and areas with unique railroad constraints, i.e. excessive curvature, speed restrictions, etc. They would like scanner locations with the ability to determine the distance from scanners to destinations. The coordinators also expressed a desire to be able to zoom into a specific location, view the track layout as well as track size, and determine track feet for holding a given number of cars. Several additional items were added to aid in the understanding of coal transportation. For instance, a layer of natural coal deposits was added so the user can overlay this layer with the origin layer. This allows the user to determine the type of coal mined in a specific location. Also, to assist in understanding the industry, each area of the country has been divided into customer regions including the Northern Appalachian Region, the Southern Appalachian Region, the Central Appalachian Region and the Interior Basin. In June 2013, a series of quality checks were performed to help ensure the data provided was indeed the information intended. Origin and destination data as well as attribute data were checked, including obtaining confirma-

tion from customers and members of the user groups. On July 1, 2013, all aggregated geospatial data was migrated to the EGIS server in the form of feature class files. A geodatabase was then created to house the geospatial data. A URL was established at which the GIS is available. The EGIS group created a security structure specifying the individuals who had administrative access and those who had user access. EGIS wrote SQL scripts in order to make the geospatial data accessible at the URL. The data was then made available as a GIS by promoting it to the URL completing Phase I. Additionally, some of the more detailed functions such as routing features and rate district calculations will be developed and released during Phase II. Geospatial data comes in many forms and formats. We see it in automobile dashboards in the form of GPS,

in cell phones to assist in locating a restaurant, and online as satellite imagery. Geographic information systems are all fueled by the same basic types of geospatial data as these items. Likewise, each system is designed for a specific purpose and goes through planning, design and production processes similar to the one just described. All in all the process is not terribly complicated, yet a certain set of steps must be satisfied in order to develop any GIS project into a useful tool. Given the proper steps are followed and the design is based on user centered principles, the final product will likely yield a geographic mapping interface and data set that will not only provide interest but become a useful tool in the daily workflow.

References: Kirk, Terry – Manager of GIS Systems, Pocahontas Land Corporation (2013, April 12). Personal Interview McGehee, Dr. Stuart; McGuire, Eva (2001). A Century of Stewardship: The History of Pocahontas Land Corporation, 1901 to 2001 – 100th Anniversary. Copyright Pocahontas Land Corporation, Bluefield, WV Financial Reports NS Website (N. D.). Financial Reports: Investor Book. May 7, 2013. http://www.nscorp.com/nscportal/nscorp/Investors/Financial_Reports/Investor%20Book/technology.html US Census (June 2013). Geography: Tiger/Line Shapefiles. Retrieved August 6, 2013. h ttp://www.census.gov/cgi-bin/geo/shapefiles2012/main NationalAtlas.gov (2013). National Atlas Data Download – Coal Fields. (November, 2012). http://www.nationalatlas.gov/atlasftp.html#sfgeoep

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NCTA Scholarship Announcements

2013 Scholarship Recipients The NCTA awarded four scholarships to children of the employees of NCTA member companies at its annual fall conference in Denver. These are the talented and hard-working recipients.

Melina Mercier - 2013 David Laffere Scholarship Award Winner Virginia Tech | Engineering Science and Mechanics Melina is currently a senior at Virginia Tech majoring in Engineering Science and Mechanics with a minor in Biomedical Engineering. She is also a first year graduate student in Mechanical Engineering pursuing her Masterâ&#x20AC;&#x2122;s Degree. Melinaâ&#x20AC;&#x2122;s current field of research is in prosthetic liners where she is working to design a more comfortable lower limb liner for amputees. The goal is to help the hundreds of thousands of amputees who suffer lower limb amputations. She has been involved in the development of this project since 2012, and will continue work into her second year of graduate school. In her free time, Melina is heavily involved in the Catholic community at Virginia Tech and has participated in several service trips with them. She was one of the founders of an undergraduate biomedical engineering organization that provides service, professional, and academic resources to undergraduates interested in the field of biomedical engineering. She currently serves as President for the organization and has overseen a tripling of membership in the past year. She enjoys photography and goes scuba diving whenever she gets a chance. Melina is the daughter of Mike and Theresa Mercier (Appalachian Power)

Matthew Palmer West Virginia University | Petroleum and Natural Gas Engineering Matthew Palmer is from Moundsville, West Virginia. He is currently attending West Virginia University majoring in Petroleum and Natural Gas engineering with a minor in Geology. During high school he was involved in many activities including: Jazz Band, Marching Band, Concert Band, Percussion Ensemble, World Drumming Ensemble, Steel Drum Band, Academic Team, National Honor Society, and Peer Leadership. During this time Matthew was also active with the Boy Scouts and earned the Eagle Scout Award. To culminate his high school career, he was three year Class President and Valedictorian of the graduating class. Upon attending WVU he has been involved with the Mini-Baja Senior Design Project, Engineers without Borders, Honors Tutoring, and two different church bands in town. As an Honors College student he is a Presidential Scholar and prides himself in his work ethic. In his spare time he enjoys the outdoor activities including camping, fishing, hiking, and biking. Matthew is looking forward to working in the energy industry after graduation and hopes to find employment as a Drilling Engineer. Matthew is the son of Jeffrey & Debbie Palmer (American Electric Power)

58 | COAL TRANSPORTER

Adam Metzger Kansas State | Mechanical Engineering Adam Metzger is currently a senior in Mechanical Engineering at Kansas State. Born in Morris Council Grove, Kansas, his family moved to Rock Port, Missouri when he was young. Adam attended Rock Port High School where he played football, ran track, and competed on the Academic Bowl team. Adam’s parents both attended Kansas State and Adam knew he was going to be a Wildcat too on the day he watched his first Wildcat football game. Along with one older brother, every member of the family is a huge K-State fan and they all love their K-State football. Interested in math and science, he also elected to follow his father’s footsteps into Mechanical Engineering. While at Kansas State, Adam has been involved in design team activities for his Introduction to Mechanical Engineering class and for the University’s Mini Baja SAE Design Team (2011/12). Last spring, Adam became a member of Tau Beta Pi, the national engineering honor society. Adam enjoys competitive sports, participating as a member of the Kansas State Club Baseball team and in multiple intramural athletics during the year. Adam is the son of Mark and Deanne Metzger (Nebraska Public Power District)

Timothy Voss Auburn University | Accounting/Finance Timothy Voss, a senior at Auburn University, has challenging career aspirations. Just 3 ½ years ago, he set out to graduate with degrees in Accounting and Finance. He intends to graduate a semester early, intern this spring, and obtain a Masters of Accountancy degree and a Certified Public Accountant (CPA) license by 2015. Tim thrives in challenging, collaborative, client-focused environments; he thoroughly enjoyed his internship with Deloitte in New York City where he worked with several project teams to analyze and implement tax strategies for one of the firm’s largest clients. He is intrigued by the energy industry and believes there may be significant opportunities whereby he could utilize his tax and finance skills to develop creative business solutions in today’s dynamic environment. He has found that he can blend his passions for learning and serving by actively participating in organizations such as the College of Business Executive Society and Beta Alpha Psi. Tim is an avid sportsman and a member of the Auburn Bass Fishing Team. Timothy is the son of Lisa & Jeffrey Voss (WE Energies)

COAL TRANSPORTER | 59

Standing

Speaking

Up Out

Coal and

for

October 28, 2013 Coal Summit

For Coal Rally at the US Capitol

NCTA was pleased to initiate a gathering of the coal-related trade association personnel responsible for grassroots and digital outreach. A collegial meeting of the principals for outreach had not previously occurred in an organized manner. The concept was to discuss and implement a plan to allow regional associations to reach grassroots members and interested parties with messaging and data vetted from reliable entities. Smaller associations do not have staff for research and message development, but desire to provide synergism in reaching the grassroots of their own membership. The meeting was held in the Washington offices of the American Coalition for Clean Coal Electricity (ACCCE). Participants included representatives from NCTA, ACCCE, AEP, Constellation, Tampa Electric, Peabody Energy, Arch Coal, Patriot Coal, Kansas City Power and Light, NMA, EEI, National Rural Electric Cooperative, American Coal Council and the Coal Utilization Research Council. s

The Stand Up For Coal rally was attended by a group of about 3,000 miners and coal supporters from around the country. The NCTA was also on hand to stand up for coal. Sponsored by Count on Coal, an affiliate of the National Mining Association, speakers went after the Environmental Protection Agency’s job killing GHG regulations, often referring to the EPA as the Employment Prevention Agency. The participants were joined by 30 members of Congress in a series of short speeches in support of coal and all the good things it provides to the economy. s

October 29, 2013 Stand Up

Washington meeting and Coal Rallies in Washington DC and Colorado

60 | COAL TRANSPORTER

October 30, 2013 Coal Rally at the Colorado State Capitol

Hundreds of miners and supporters of reliable and affordable energy, including the NCTA , rallied at the Colorado State Capitol in downtown Denver on October 30, to protest the Environmental Protection Agency’s proposed rules for new coal power plants. The Colorado Mining Association, several state mining associations, the Independence Institute, Friends of Coal and others organized the event, timed to coincide with the EPA “listening” session being held in town that same day. s

COAL TRANSPORTER | 61

STATS AT A GLANCE

he environmentalists love to portray those in the coal industry as a bunch of soulless mustache-twisting villains. This characterization could not be further from the truth. People in the coal industry are hard-working members of the community, providing one of the fundamental commodities necessary for our way of life. The correlation between electricity consumption and quality of life can be seen throughout the world. Thanks to Ameren Energy for providing the image below. It is a great example of the spirit of the coal industry. The car detailing for Ameren was done by fellow NCTA member Metro East Industries. s

62 | COAL TRANSPORTER

Calendar of Events 2014

July 1, 2014 Advertising and Editorial Deadline for Issue 2 2014 of the Coal Transporter Magazine Summer/Fall 2014 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 Member’s Children Scholarships

January 31, 2014 Payment Due for 2014 Annual Membership Fees February 13, 2014 Western Logistics and Planning Committee Meeting BNSF Railway, Ft. Worth, Texas April 27-30, 2014 Spring General Conference Hilton Head Marriott Resort, Hilton Head, South Carolina

September 15-17, 2014 Fortieth Annual Business Meeting and Conference Westin Denver Downtown, Denver, Colorado

June 9-11, 2014 Operations and Maintenance Conference Canyons Grand Summit Resort, Park City, Utah

2015

December 20, 2014 Receipt at NCTA office of all re-certification forms for the UMLER Fee Waiver for Calendar Year 2015

April 26-29, 2015 Spring General Conference Wigwam, Litchfield Park, Arizona

June 8-10, 2015 Operations and Maintenance Conference Pinehurst Resort, Pinehurst, North Carolina

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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.

e all live in a push vs pull world. When you were a kid, if you pulled someone’s hair, they would push you down. While you’re pushing to get through your to-do list, the boss comes in and pulls you in a totally different direction. When you think of information, sometimes it is pushed to you through your email and sometimes you seek or pull it from colleagues or the Internet. Over time, certain sites pull you to them by always having the answers you need. When someone pushes emails all too frequently, you go into auto delete mode or employ the dreaded “unsubscribe”. We all need a little push and pull in our lives; we just need to find the balance. This question was designed to get a better handle on members information needs so that we can focus our limited resources in the right direction.

Push versus Pull Shocking Results

The NCTA has been sending a limited amount of email hoping that members realize that when they receive something from us, it is important. One shocking result of the survey is that one in five people responding actually believe that they do not get enough email. It is not surprising that the majority get just the right amount as they are most likely actively managing their inbox to keep it that way. Goldilocks would be proud. The takeaway from this is that the NCTA could push a bit more information and have a positive impact.

HOW MUCH EMAIL DO YOU GET?

JUST RIGHT 54%

TOO MUCH 26% TOO LITTLE 20%

Who You Gonna Call?

Who you gonna call? Apparently, no one. A whopping 83% of respondents said they would look to the Internet or inbox before making a phone call to find information. The conclusion to be drawn here is murky at best. On the bright side, companies and industry groups may have really stepped up their efforts to communicate with customers. There are so many people on the Internet these days, someone has likely posted the information you need and search engines are better able to find it. On the downside, maybe the surveyor just can’t ask a decent enough survey question. Do the results change if the transportation issue is a real time unfolding situation like a weather event or a legislative or regulatory issue that has been languishing for months or even years?

WHEN YOU NEED INFO ON A TRANSPORTATION ISSUE, WHERE DO YOU GO FIRST?

THE PHONE 17% THE INTERNET 44% YOUR EMAIL 39%

64 | COAL TRANSPORTER

Where is the Value?

Information is pushed at us in many different formats and with many different lead times. While social media may be able to inform you about that Gold Medal performance seconds after it happens, the article you read in Sports Illustrated the next week will contain all the dramatic details and probably some history as well. While you can draw your own conclu-

sions from the data, it is safe to say all these information conduits are valuable. The most consistent source of high value information is obtained from external business contacts. These are the people you met networking at a NCTA conference or are part of your daily routine. They are on the ground and in the know. In contrast, social media may not

provide any “high value” information, but what it does provide is the quick spark that may lead you elsewhere for information and keep you a step ahead of the crowd. Going forward we will work hard to match the medium to the message, understanding that balance between timeliness and depth can be tricky to achieve.

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Members and Associates were asked, “What do you think about push versus pull? Where is your balance?” This is what some of them had to say: “Balance is good. Have several subscriptions pertinent to industry and utilize internet when needed to research specific information.”

“Must be nimble and flexible. Maintain a good balance.” Don Vissat, Cloud Peak Energy

Terry Hicks, ARS

“I am relatively new to the industry (5 years now), so I am still developing relationships and learning about resources. I am still pulling.” John Mayer, Associated Electric Coop, Inc.

“My balance is tilted slightly to the push.” William Marozzi, Salt River Project

“Push (Subscriptions & updates)” Narinder Singh, Coal Pulse USA

“I generally get hit in the face with the door no matter which side I reach for.” Frank Cristelli, Greenbrier Rail Services

“I like push better. I don’t have a lot of time to seek out information” Bob Wigg, First Energy

“Push and Pull is a function of balance. With information available 24/7, it is critical to sort through what is important and how best to use it. Down time is also necessary so that you can digest the information obtained.” Kevin Larkin, Alliance Resource Partners, L.P.

“I like to have information pushed to me on a scheduled basis but I would like to pull information in real time when needed.” Raul Fuentes, NRG

“I tend to pull more by searching the internet for what I need to know at that time. Publications that are printed, like the Coal Transporter, are at least 2 to 3 months behind the time. Great articles, but nothing really new, just nice think pieces.” Wm. Jack Reid, Seminole Electric Cooperative

“I think we all are doing more with less, so the pull on our time and resources is more apparent. With that, we have to become more flexible and think outside of the box of how to complete those tasks efficiently. Flexibility will be a driving factor in our operations as our company enters the Integrated Marketplace in March of this year. So, as the balance of push vs pull shifts, we too must make adjustments in our work and thought processes in order for the company to continue to thrive.” Amy Newton, City Utilities of Springfield

“If I don’t need it, I don’t want it. I prefer to go out on my own and find what I need. I delete 80% of the emails I get without reading.” Charles Birch, Nexgen Resources

“Most information provided, whether internal or external, proves valuable most of the time. I would like to see the Transporter on more of a regular basis for updates and occurrences within the industry.” Michael Bailey, Peabody Energy

“Most of the time, I just feel like I am being pulled in too many directions! Not much balance in that.” Steve Sharp, Arkansas Electric Cooperative Corporation

66 | COAL TRANSPORTER

“Push important issues that affect the members.” Eric Linn, Alliance

“Push summary of available information, allow people to pull details as needed for their requirements.” Mark Stangl, Timken

“This world is ever changing and my balance changes ever so fast. Information sources are sometimes guarded in this industry and the number one way has been personal sources and one on one calls.” Jerry Solt, WHEELWORX, LLC

“We are comfortable with both pushing and pulling data as this is what we do with and on behalf of our customers. In the mix we filter, join, analyze and offer business intelligence to fleet managers who can make informed decisions based on data about their own equipment.” Michael Edwards, iIRX

“Working in the part of the industry that is basically deadline driven we don’t have the flexibility to be pulled in too many directions at certain times.” Margaret Branson, Cloud Peak Energy

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Janice

Reflections / Janice Figgins

ye Lake

At home on Bucke

as Eve 2013

Christm Family Gathering

68 | COAL TRANSPORTER

grandpa Moorhea

Figgins J

anice Figgins is a true Buckeye. Jan was born in Ohio and has lived in Ohio all her life. She married a “double” Buckeye - her husband Ed was both born in Ohio and is an alumnus of The Ohio State University. Now both retired, they live on shores of the beautiful 3,400-acre Buckeye Lake, which contains the famous Cranberry Bog, a 16,000 year old glacial floating island of sphagnum moss in the center of the lake containing exotic and rare plants, the only one of its kind in the world. Born in Lancaster, in the 50’s, Jan was the youngest of three children born to Robert and Wanda Morehead. Jan’s sister Kathy is a retired nurse who lives in Lancaster and her brother David, is manager for the adult beverage team for a large grocery chain and, resides in Cincinnati. Her mother was a homemaker, and while she was a very reserved, quiet person, she had a wonder-

r Women’s Sightseeing afte Meeting in 2009 Mining Coalition

Janice Figgins is a true Buckeye. ful sense of humor. She always provided low key, but powerful feedback when guiding and supporting her children, but her quick wit and lighthearted side helped her children to not take things too seriously. Jan’s father served in the Army Air Corp, Alaskan Division, during World War II, spending some of his time in the Yukon. After he was discharged, he completed college at Ohio University and went on to become an insurance agent and sales manager with Metropolitan Life. Jan’s mother passed away four years ago. She is terribly missed but Jan still feels her quiet encouragement. Jan’s father is doing well, living an active life, and recently celebrated his 90th birthday! Jan’s paternal grandfather, Homer Morehead, worked in a coal mine in Canaanville, Ohio as a young man. In the early 1920’s, the 600 foot deep shaft mine, served by the Marietta and Cincinnati Railroad, had no real equipment so all the work was done by hand. The mine was eventually shut down due to the inability to control the methane gas, so he went to work at a grocery store in Guysville until he was able to open his own general store in Amesville, Ohio in1935. Many of his friends came in from Lathrope’s Black Diamond Coal Company mine to support his new venture.

e c i n a J s n i g Fig

COAL TRANSPORTER | 69

1 & 3. AEP Annual Bike/Hike for Charity in May 1978 2. Jan and Ed with Congressman Clarence Miller (R-OH) in 1976

Buckling Down

Like most children of the time, Jan started working at a young age. Her first job as a 16 year old high school junior was clerking at a drug store. When she was a senior, she found a more interesting job at the County Prosecuting Attorney’s office. The school system at that time had a budget crisis (some things never change) and the high school kids were on “split sessions”, which meant that Jan went to high school extremely early in the morning and was out of school around noon. That allowed her work in the Prosecutor’s office in the afternoons. After graduation, Jan went on to full time work there while attending classes at Ohio University’s local branch campus, her father’s alma mater.

Jan loved her five years in the Prosecutor’s Office. It gave her an appreciation for legal work and the political process. Her work covered a broad spectrum from felony cases (middle of the night search warrants!), civil and domestic cases, real estate transactions, probate work, etc. One of the prosecutors went on to become a judge for many years, then retired and worked as a visiting judge. Over the years, he and Jan have remained friends and continue to this day to do a variety of legal work together. She often thought later that she should have gone to Washington DC and been an intern to get more involved in the government. She had a taste of what that might have been like late in her career with AEP when she attended a lobbying event

She often thought later that she should have gone to Washington DC and been an intern to get more involved in the government. 70 | COAL TRANSPORTER

with the Women’s Mining Coalition in May of 2009. It was a constituent outreach initiative that worked to provide members of Congress with information on the modern mining industry and the importance of mining and coal generation to the economy, national security and our daily lives. She treasured the experience especially being able to walk the halls of the Capitol and seeing the Senate in session from the gallery.

1976-1978, Bucketsful of Change

In 1976, the local Lancaster newspaper reported that a new company, American Electric Power (AEP), was coming to town and would be hiring. AEP’s Executive Vice President chose Lancaster, Ohio as the site for their Fuel Supply office because AEP’s corporate office was in New York City and the Lancaster office would be centrally located between the company’s various coal mines and the Columbus airport. Jan’s mother suggested she apply to work there thinking that there might be some good opportunities. As usual, her mother was right. The Human Resources representative that hired Jan was amazed to find a 22 year-old who had over five years of legal experience. AEP, as it turned out, provided Jan with a series of opportunities to learn and progress through positions of increasing responsibility over the next 36 years. While Jan may be a true Buckeye, that doesn’t mean that she is a big fan of the winter weather in Ohio. Jan had met her husband Ed through friends and in May of 1978, wanting to go away to be married, they planned a trip to Denver, Colorado. As their plane was descending into Denver, they saw snow on the ground, with a prediction of more snow to follow. After a miserably cold Ohio winter full of blizzards, they had had enough winter. After a flurry of phone calls to the airlines and hotels they boarded another plane, this one bound for San Francisco. Finally they were married on a beautiful sunny 70 degree day on the west coast. Ed and Jan have two children Heidi, who is a claims representative for Social Security Administration, and Doug, who is a marketing manager for a home automation company. Heidi and her husband Bill Tootle live nearby in Lancaster with their two children, Jamie and Austin. Doug and his girlfriend, Jessica, recently moved to Florida, settling just outside of Sarasota. With the grandkids nearby and now a place to stay when warm weather beacons, what could be better?

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The Biggest Bucket Ever

One individual who influenced Jan early on and for many years to follow was her first boss at AEP, Bill O’Connell, the Vice President of Mining Operations. At that time AEP owned coal mines in a number of states. Jan started out learning about coal mining processes, working with people in the various mining divisions to coordinate the activities and issues involved with coal mining. Bill was very knowledgeable about mining operations and equipment and highly respected by everyone with whom he came into contact. He had good relationships with and was supportive of the people working at the mines. Bill was not a harsh manager but believed in genuinely helping his people do the best jobs they could and in giving people second chances if necessary. Jan respected his management style and believes that influenced her thinking of how people should be treated. Jan realized that it is best to look for the good qualities in people, to talk to them about problems and provide them with an opportunity to correct any issues. Bottom line, to treat them as one would want to be treated. Bill had a split career with AEP. He left for a position in Washington state. AEP representatives then called him back to become a key individual in the construction and implementation of what would later be referred to as the “Big Muskie”, the largest walking dragline ever built. Big Muskie was dismantled in 1999, but the giant bucket from that dragline can be seen at Miners Memorial Park near McConnelsville, Ohio. One Saturday during her time in Operations, Bill took Jan and Ed over to see the dragline in operation. They were lucky enough to be able to sit with the operator high above the ground in the operator’s cab while it was doing its job removing overburden. It was a unique and memorable experience. Jan enjoyed her time at AEP both on and off the job. “I used to love the 35 mile bicycle trips, called the annual bike/hike, that I took my first few years at AEP where we gathered pledges and raised money for the mentally handicapped in the community.” Jan recalls it being a great fund raiser and, in addition to

good exercise, a lot of fun with her coworkers. After her stint in Operations, Jan moved to the Administration Department, which also included the Regulatory Affairs, Legal, and Office Services groups. Here she had her first logistics role, scheduling and accounting for helicopter services to transport employees to various locations primarily for the purpose of managing the mines. During this period, her group also took on the tedious task of selling off all the company’s coal mines as it prepared for a more ramped up Fuel Procurement group designed to purchase from other coal producers. She eventually moved into this group, where she took on an analytical role tracking system burns, deliveries, and inventories. In late 1999, all AEP Fuel Procurement functions were moved from Lancaster to the corporate headquarters, which was now in Columbus, Ohio, and for the next several years she took on the role of Office Manager in the Energy Services group where she managed a staff of employees to ensure smooth operation of the group’s trading functions. In 2003, with her youngest child graduating from college, Jan was ready for a job change. She also felt the pull to do some volunteer work and thought the time was right to take some educational courses, after having abandoned the pursuit of her degree years earlier to get married and have a family. At work, she moved into the Coal Transportation group and began managing logistics in the West for AEP. She also decided to go back to Ohio University where, as a non-traditional student, she could add to the credits earned many years earlier. This became a challenge time wise, with an hour commute each way to and from Columbus to work, being on call 24/7 during the time of the major joint line derailments in the PRB and their aftermath, attending classes and studying her coursework. Not one to give up anything on the to-do list, Jan was even able to do some volunteer work with the American Red Cross, Big Brothers/Big Sisters, and the American Cancer Society through some of her college assignments. Eventually she earned her Bachelor of Science in Business Communications. There were some long

35th Anniversary Celebration (May 2013)

Sailing in San Francisco Bay (2007) 72 | COAL TRANSPORTER

days and nights during this time, but it was very rewarding. Jan credits Ed with helping her meet these ambitious goals. “My husband was my best cheerleader at that hectic time, always helpful, patient, and encouraging, even attending several college related events with me, I guess as a way we could be together during a time when I spent so many hours with work, travel, and school.”

Bucking Up Attendance at the NCTA EL&P

The last few years before Jan retired, she became the Manager of Logistics, concentrating on AEP’s Eastern coal movements. Having attended a number of NCTA meetings while working with AEP’s Western locations, she became interested in the NCTA’s Eastern Logistics and Planning Committee. At one of the committee meetings, Jan mentioned to NCTA’s Executive Director Tom Canter, that she would be interested in helping out. Tom was eager to accept her help and get some new people involved. Initially, she assisted with some new member recruitment objectives and later became Vice Chairman, then Chairman of the NCTA Eastern Logistics and Planning Committee. One of Jan’s goals as Chairman was to increase meeting attendance so that it was more in line with the much larger groups attending in the Western committee meetings. It became very obvious that the networking of individuals from the utility, coal transportation (rail and barge), and coal mining industries was very important and that attendance perhaps could be enhanced by looking for ways to better intrigue and attract participants, old and new, with relevant and timely topics, speakers, and some special meeting venues. She particularly enjoyed the Q&A time following a presentation and the follow up conversations that took place after the meeting when it was obvious the attendees enjoyed a particular speaker and topic. As Jan recalls, “It was also very rewarding to see the camaraderie developed during our many tours, games, or special events planned following one of our meetings. After all, this networking was one of the most important facets of the gathering, where good business relationships and friendships are built. One of the

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Ed and Jan in the Big Muskie Bucket

w w w . g a t x . c o m

COAL TRANSPORTER | 73 GATX_35_9875C.indd 1

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most important things I learned in some of my Communications classes was that communications are the most important factor in business. In how many problem solving meetings does one hear, “what we really need is better communications?” Hopefully, these special events helped develop better communications and thus better business planning, problem solving, and some great friendships.” The meetings Jan planned were educational and fun and attendance skyrocketed.

Loving Life at Buckeye Lake

Jan retired from AEP at the end of May, 2012. Ed had retired from his design engineer position with a worldwide packaging company about five years earlier, so the timing felt right. Her last Eastern Logistics and Planning Committee meeting was held that same month in New Orleans. In addition to the formal presentations, Jan arranged for a tour of AEP’s River Operations facility in Convent, Louisiana and a boat tour on the Mississippi of a St. James

74 | COAL TRANSPORTER

Stevedoring Operation. To this day, it is the only Logistics and Planning Committee event to make the cover the Coal Transporter magazine. Memorial Day was the first weekend of Jan’s retirement and she and Ed spent it at their condo at Buckeye Lake. The condo, purchased in 2010 was not far from their home in Lancaster and they had already been enjoying “life at the lake” for several years. Retirement was different though, as they spent the entire summer at the lake. Jan felt like a school child on summer vacation, swimming, bicycling again, boating and thoroughly enjoying her “summer break”. Like a school child the fun was over in September, but not for the same reason. Ed needed triple bypass surgery so the fall and winter were spent nursing him back to health, recuperating, and learning a new lifestyle. With Ed on the mend, they traveled to Florida the following February, visiting friends and relatives and enjoying the warm weather. When they returned

to Ohio they visited their condo at the lake, and feeling more like the lake was now home, they looked at a home for sale in the same gated community, Mallory Square, and decided to buy it. The community takes its name from the historic square in Key West that is best-known as a prime spot for viewing the island’s famed sunsets. From Jan and Ed’s home on Buckeye Lake, however, it is the sunrises that are magnificent. Key West, also served as the inspiration for the waterfront and Victorian architecture with all the homes painted in pretty yellows, pinks, blues or limes. The process of selling several properties, purchasing their new home and getting everything moved to the lake permanently took most of 2013. Now settled Ed and Jan love waking up to the beautiful sunrises over the water. While they have a front row seat to the ice fisherman, bird hunters, and great blue herons that are currently dotting the frozen lake, they are looking forward to spring, literally counting the days until their boat comes out of storage and they can to enjoy some nice walks on the boardwalk. In the meantime they are becoming part of the community. Jan volunteers at their church, helping to prepare and serve free meals to those in need. Generally they serve 40-75 people per day, three days a week. They recently supported the first annual Polar Bear Plunge with proceeds from sponsors of those jumping in the icy lake going to the Buckeye Lake Historical Society and Museum. The fact that the event was hosted by the Buckeye Lake Winery had absolutely nothing to do with their participation. Jan has not ruled out working part time again for the right opportunity but for now she and Ed are really just enjoying their new home and loving life at the lake! s

The humo sometime rous s serio , sometim us ra es mbl of be st frie ings nd Pete and A s nn.

The View from the Caboose

THE VIEW FROM THE CABOOSE By Pete Moss & Ann Thrawsite

Pete: Hi Ann. Happy New Year. Ann: Happy New Year? You know it’s March already. I take it that you are still celebrating. Pete: I really think this is going to be a good year, so why not. Ann: How is that? The EPA has already come out with new greenhouse gas emission standards for new coal plants. This will make us less competitive, make the grid less reliable and we will lose more jobs to countries that recognize the value of coal generating resources. The War on Coal continues. Pete: War, schmore. I wouldn’t worry about that if I were you. I mean the government has been waging a War on Poverty and a War on Drugs for decades and you can see how that is working out for them. Relax Lassie. Ann: I can’t believe I’m saying this, but you actually make a good point. But on the downside, they have wasted a lot of money in their losing efforts on those fronts. Pete: True enough Lassie. They will do that. But coal is going to continue to be mined and loaded and it will continue to be transported throughout the country for many decades to come. Coal can be like Mark Twain and proclaim “The report of my death was an exaggeration.” Twain was one cool guy. Ann: Again, I can’t argue with you on any of that. What’s happening? Am I in an alternate dimension? Pete: Unlike the enviros that got trapped by ice in the Antarctic while trying to document global warming, you are dealing in reality. I heard the cost of rescuing the passengers of that ship, the Akademik Shokalskiy, has been estimated to be AUS$2.4 M. Ann: Yikes! That’s a lot of money. Must be nice to be in a business where you can claim everything that happens weather-wise proves you right. The old “heads I win, tails you lose” coin toss.

Pete: You know it; even the Polar Vortex was blamed on it. Not everyone is buying it though. Senator Cruz from Texas just gave a speech in Washington that had me laughing my socks off. He said, “You know, I got to tell you, yesterday it was 70 degrees back in Houston. I took my girls out to the park. I get out here and it is freezing. I mean it is really cold. I have to admit, I was surprised. Al Gore told us this wouldn’t happen. Look, it is so cold, I actually saw a Democrat with his hands in his own pockets.” Ann: That last part is an old joke, but still very funny. The global warming doomsayers do seem to turn themselves inside out sometimes trying to explain how everything that happens is proof. Pete: Well, you know I don’t go for anything less than 110 proof. Ann: Way to change the subject. Pete: All this talk of weather and then proof made me think of the NCTA Spring Conference on Hilton Head Island. I just hope that we have some good beach weather. I know the Marriott is a FourDiamond property but I’m hoping for a Two-Umbrella meeting. Ann: Two umbrellas? Pete: One over my beach chair and one in my glass! Ann: Well there will be plenty of things to do besides sitting on the beach. After a long cold winter there will be lessons learned and ideas exchanged for making coal movements run smoothly in difficult circumstances. Hopefully some of the service issues will be resolved by then, and if not, we will work on them. Pete: I’m down with the whole work thing. Just remember when I’m sitting on the beach working, I often close my eyes to think. Ann: What a surprise. Sometimes when I talk to you my eyes roll involuntarily, so I guess we’re even.

Have something to say to Pete?

Send comments or questions to pete@nationalcoaltransportation.org COAL TRANSPORTER | 75

NCTA Membership List A. Stucki Company AKJ Industries Alliance Coal, LLC Alliant Energy Corporate Services Alltranstek LLC Alpha Coal Sales Co., LLC Alpha Products, Inc. Ambre Energy North America, Inc. Ameren Missouri American Electric Power Amsted Rail Appalachian Railcar Services, Inc. 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 Blackhawk Mining, LLC Bosch Rexroth Corp., Pneumatics Bowie Resource Partners CANAC, Inc. CDG Engineers, Architects, Planners CIT Rail City Utilities of Springfield Cleco Cloud Peak Energy Colorado Springs Utilities CONSOL Energy Inc. Constellation Consumers Energy Company Cooper T. Smith CPS Energy CRMS Rail Crown Products Dairyland Power Cooperative

Detroit Edison Duke Energy Dynamic Railroad Consulting Dynegy, Inc. Ecofab Australasia Ellcon-National, Inc. Energy Publishing, LLC Enserco Energy Entergy Services, Inc. Exponent, Inc. First Union Rail FirstEnergy Florida Power & Light Company FreightCar America GATX GE Rail Global Coal Sales Global One Transport, Inc. Grand River Dam Authority Great River Energy Hall St. Coal Terminal Helm Financial Corp. Hendricks River Logistics Heyl & Patterson iIRX Jim Walter Resources, Inc. Kansas City Power & Light KCBX Terminals Co. Kiewit Mining Group Inc. Kinder Morgan Terminals Lexair, Inc. Locomotive Service, Inc. Lower Colorado River Authority Luminant Energy Macquarie Rail Inc. MARK XVI Supply Chain Services, LLC

Maxeefish LLC MEAG Power Metro East Industries, Inc. MidAmerican Energy Company Midland Railway Supply Midwest Generation Midwest Industrial Supply, Inc. Miner Enterprises Inc. Minnesota Power MinTech Enterprises Mitsui Rail Capital, LLC Muscatine Power and Water Nalco Company Nebraska Public Power District New York Air Brake Northern Indiana Public Service Norwest Corporation NRG Energy, Inc. NV Energy OG&E Electric Services Oglethorpe Power Corp. Omaha Public Power District Otter Tail Power Company PacifiCorp Patriot Coal Corporation Peabody Energy Platte River Power Authority Portland General Electric PPL EnergyPlus, LLC Progress Rail Services, Corp Rail Link Railroad Financial Corporation RAS Data Services RESIDCO Rhino Energy LLC RungePincockMinarco

Salt River Project Sandy Creek Energy Station Seminole Electric Cooperative, Inc. SMBC Rail Services LLC Southern Company Generation St. James Stevedoring Partners, LLC Standard Steel Strategic Rail Systems Strato, Inc. T Parker Host Tampa Electric Company Tennessee Valley Authority The David J. Joseph Company The Empire District Electric Company The Greenbrier Companies The Timken Company Three Rivers Marine & Rail Terminals Transportation Services Inc TrinityRail Triple Point Technology Tri-State G&T Association TUCO/NexGen Coal Services Tucson Electric Power Company United Railcar Covers, LLC UtahAmerican Energy, Inc Wabtec Corporation We Energies Westar Energy Western Farmers Electric Western Fuels Association, Inc. Westmoreland Coal Sales Company WestRail Wisconsin Public Service Corporation Wood Mackenzie Xcel Energy Xcoal Energy & Resources Zinkan Enterprises, Inc.

Index to Advertisers Alpha Products . . . . . . . . . . . . . . . . . . . . . . . . 12 Ambre Energy. . . . . . . . . . . . . . . . . . . . . . . . . 15 Appalacian Railcar Services, Inc.. . . . . . . . . . . . 51 Arch Coal Sales, Inc. . . . . . . . . . . . . . . . . . . . . 31 CANAC Railway Services Inc.. . . . . . . . . . . . . . 74 Canada Steamship Lines . . . . . . . . . . . . . . 38-39 Cloud Peak Energy. . . . . . . . . . . . . . . . . . . . . . 49 Cooper T. Smith corporation. . . . . . . . . . . . . . . 55 Crown Products & Services, LLC. . . . . . . . . . . . 21 Donohue Rail. . . . . . . . . . . . . . . . . . . . . . . . . . 67 Exponent Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Freight Car America. . . . . . . . . . . . . . . . . . . . IBC

76 | COAL TRANSPORTER

GATX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 GKG Law, P.C.. . . . . . . . . . . . . . . . . . . . . . . . . 20 Jim Walter Resources, LLC. . . . . . . . . . . . . . . . 45 Kiewit Mining Group. . . . . . . . . . . . . . . . . . . . . 29 Komatsu Equiptment . . . . . . . . . . . . . . . . . . . . 13 Lexair, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . IFC Macquarie Rail, Inc.. . . . . . . . . . . . . . . . . . . . . 67 Mark XVI Supply Chain. . . . . . . . . . . . . . . . . . . 63 MCRL, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 MinTech Enterprises. . . . . . . . . . . . . . . . . . . OBC Mitsui Rail Capital, LLC. . . . . . . . . . . . . . . . . . . 57 NexGen Coal Services, Ltd.. . . . . . . . . . . . . . . . 50

Norfolk Southern. . . . . . . . . . . . . . . . . . . . . . . 27 PRB Coal Userâ&#x20AC;&#x2122;s Group. . . . . . . . . . . . . . . . . . . 41 Rail Link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Slover & Loftus LLP. . . . . . . . . . . . . . . . . . . . . 35 St. James Stevedoring. . . . . . . . . . . . . . . . . . . 71 Strato, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Taylor & Martin, Inc.. . . . . . . . . . . . . . . . . . . . . 28 Westmoreland Coal Sales Company . . . . . . . . . 19 Westrail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Xcoal Energy & Resources . . . . . . . . . . . . . . . . . 5

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