NCTA Issue 1, 2016 by National Coal Transportation Association

ISSUE 1 | 2016

Member Profile:

Minnesota Power Coal Transportation People are “Odd”

The Benefits of CO2

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Contents 48

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 ©2016 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.

ISSUE 1 | 2016

FEATURES

DEPARTMENTS

Meet Your Board: Karen Bramley

Dave Gambrel Notice

Message from the NCTA President – Kent Smith

Member Profile: Minnesota Power

AllTranstek Goes Hollywood

Message from the NCTA Executive Director – Tom Canter

The Benefits of CO2

NCTA Membership Benefits

STB Update

NCTA Welcomes New Members

2015 NCTA Scholarship Recipients

NCTA Committee Updates

Reflections: Bob Neff

Statistics

Calendar of Events

Members Sound Off

CONFERENCES 16

2015 Fall Meeting & Conference Recap

Denver, Colorado, September 14-16, 2015

View from the Caboose

Spring General Conference Preview

Membership List

New Orleans, Louisiana April 10-13, 2016

2016 O & M Conference Announcement

Index to Advertisers

Austin, Texas, June 13-15, 2016

Cover Photo: ARRC Coal at MP 147 Knik River Photo by: Frank Keller

COAL TRANSPORTER | 1

President’s Report / Kent Smith

A Message from NCTA President, Kent Smith

Coal Transportation People are “

ne of the things I admire the most about police officers, firefighters, and EMS personnel is when everyone else is running away from danger they are running to it. In the coal industry we have our own version of first responders – transportation professionals. They run to problems, not away. I started in this industry back in the late 1970’s (when child labor was allowed). I could list many reasons why I am thankful for all of those years, but unquestionably at the top of the list are the great people I’ve encountered. I’ve worked with miners, engineers, accountants, superintendents, sales people, security guards, janitors, clerks, mechanics, executives… you name it. It wasn’t until about 11 years ago that I began working with transportation professionals. They amaze me. Not long after I started working in this area, I was visiting some of our eastern mining operations accompanied by one of my new employees. While we were driving between mines, she received a call from someone at one of our operations telling her about some sort of shipping crisis. Over the next 10 minutes she made almost a dozen phone calls talking to the railroad, a river terminal, a barge operator, two coal customers, and the mine multiple times. The last call was to the mine informing them they no longer had a crisis. Even more than the fact she had so quickly solved a problem, I was most impressed by the calm, confident, way she went about it. She actually seemed to enjoy the whole thing. Since then hardly a week has gone by that I haven’t witnessed the group do similar things, thriving on figuring things out. I’ve also seen similar things that amaze me outside my company. I’ve seen barge companies keep things moving through floods one month, only to face a severe draught a few months later. A western railroad tells me how employees at one of the major PRB coal yards took on additional duties, including inspections, to assist in addressing the 2014 service issues. An eastern railroad describes how their local employees worked with mines to load multiple consecutive trains to avoid vessel demurrage on exports. A utility executive describes the logistics group as the “unsung heroes” of their organization as they manage their fleet and inventories through floods, blizzards, and other natural disasters. 2 | COAL TRANSPORTER

”

All too often this group’s work is taken for granted. Maybe that’s because by the time others realize a problems exists, these men and women have already implemented a solution to fix what’s wrong. Another thing I’ve learned is that these challenges don’t usually occur at 10:00 AM on Tuesday morning. They arise seven days per week and at any hour of the day. I noticed early on when there was an opening in our logistics department, few if any people within the company would apply for the position. I quickly discovered that others shied away from the pace and time requirements they observed in the team. Despite all of our industry’s detractors, we should hold our heads high when we think about the positive impact we’ve had on this nation and the world. Our nation’s economy is built on the backs of the men and women who have worked so hard over the years. As we all know, this coal doesn’t get to the power plants, ports, and steel mills by itself. It’s truly a monumental task to get it from Point A to Point B. Even in a down year, the industry shipped about 900 million tons of coal in 2015. Behind every pound of it, our industry’s “first responders” were there making it all happen. Not only do they make it happen, they typically do so with an enthusiasm that is unmatched by most. So why do I use the word “odd” in the title? Besides shamelessly trying to get you to read this, I think the word is appropriate when you see the definition below:

Odd

- differing in nature from what is ordinary, usual, or expected. There is nothing ordinary or usual about the way these men and women go about things or the results they achieve. When faced with problems us “normal” people seek to avoid they jump in and get the job done with a smile. So to all of you “odd” coal transportation people out there, you should be extremely proud of yourselves. Our industry and nation owe you our gratitude. s Kent Smith President, NCTA

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Executive Director’s Message / Tom Canter

A Message from NCTA’s Executive Director, Tom Canter

Myths, Lies, and Half-Truths

e live in an era of mass communications with instant tweets, friending on Facebook, texting, almost universal cell phone coverage, Wi-Fi at the car repair shop and the coffee shop, and much more. Have you recently enjoyed an uninterrupted conversation with a member of the Millennial Generation? Unfortunately, all of this media and access to it does not guarantee that the message is accurate and truthful. On the contrary, without an independent and knowledgeable standard of editorial review and fact checking, a steady release of innuendo and outright lies result in myths and half-truths that become accepted conventional wisdom in established, politically-correct circles. Here is the underlying (there may be a pun here) problem – The purveyor develops the desired narrative and provides distorted data, quotes, scary scenarios, and injustices to fit the narrative. When the false narratives and assumptions do not materialize in the predicted timeframe or the computer model is wildly inaccurate, the corollary to the narrative is that any counter argument is a denial of “settled science” by a severely deluded “denier”. Then, the propagandist carefully selects modifiers and nouns for enhanced impact, such as “spewing” and “CO2 pollution” when describing the imagined scenario. This strategy would make any totalitarian propagandist proud. The coal and utility industry have been the target of innumerable attacks of false narratives by both governmental and well-funded non-governmental organizations during the last four decades. Although reviewing many false narratives could fill an entire issue of the Coal Transporter, a couple examples should suffice for this argument.

Climate Change is the Number One Threat to National Security Wow! This narrative is designed to scare you into making global warming (or is it global climate change) into the top constitutional obligation of government to the American people. Further, this anthropogenic change could happen within one hundred years! This scare tactic is promulgated without any use of scientific methods like testing data and models, unbiased data collection, recognition of mitigating and negative feedback factors, and common sense analysis of empirical data. (See Professor William Happer’s article on the benefits of CO2 in this issue.) In any case, 4 | COAL TRANSPORTER

the Administration forgot to relay this narrative to James Clapper, the Director of National Intelligence. On Jan. 29 of this year, he told the midshipmen at the U.S. Naval Academy that cybersecurity has surpassed terrorism as the No. 1 threat facing the nation. During November 2015, the Secretary of Homeland Security, Jeh Johnson stated the nation’s top security priority was equally shared between cybersecurity and counter-terrorism. I’m putting this climate change narrative in the myth category. Don’t miss our physical security and cybersecurity experts presenting at the Spring Conference in New Orleans.

Wind Turbines Saved the Day during the Polar Vortex of 2014 The above statement is a selective half-truth as touted by the Sierra Club and others in the Beyond Coal program. Electrical grids were stressed throughout the country and various regions endured different wind and icing conditions. The anti-fossil fuel advocates point out that wind generators performed well in the northern Great Plains area. This is generally true. The real challenge to grid stability was in the Midwest and East within the PJM independent system operation. As presented at NCTA conferences, the available wind generation on the extremely cold day of January 7, 2014 was only 13% of installed wind capacity.

2016 will be a challenging year for the coal industry. Do your part and be an advocate for truth and challenge the false narrative. Indeed, AEP has publicly stated that without coal-fired plants slated for future closure, grid failure was probable. Wind power can be useful, but clearly cannot be dispatched on demand. What can be done about false narratives? We will continue to present facts in a clear and truthful matter. Both ACCCE and IER will present at the Spring Conference as two active advocates for an energy policy that includes “all of the above” for domestic energy production. 2016 will be a challenging year for the coal industry. Do your part and be an advocate for truth and challenge the false narrative. Have a safe day producing the abundant energy source for the people of North America. s

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Know Your Board / Karen Bramley

Know Your Board:

Karen Bramley

Manager – Bulk Fuel Origination Tampa Electric Company

CTA’s secretary and board member, Karen Bramley is Manager, Bulk Fuel Origination for Tampa Electric Company and currently manages its bulk fuel origination functions. Tampa Electric is a 120 year old regulated utility serving more than 715,000 customers on the west central coast of Florida. She has responsibility for procuring and transporting approximately 5.0 million tons of coal and petroleum coke from the Illinois Basin, Pittsburgh 8 region, and U.S. gulf coast refineries. Tampa Electric transports coal via rail directly to Big Bend Station or via inland river barges on the Mississippi river system to United Bulk Terminal in Davant, Louisiana where it is either stored or transloaded onto ocean going vessels for delivery to the Big Bend and Polk Stations. Tampa Electric also purchases coal and charters foreign vessels to transport low sulfur coal from Colombia to Big Bend Station. Karen joined the company in 1996. From 1996 through 1999, she held various positions in legal and customer service. In the Fuels Department, she is responsible for the origination, administration and transportation of coal, petroleum coke, oil, anhydrous ammonia and emission credits. Karen graduated from the University of South Florida with a B.A. in 1990 and received a Master’s Degree from the University of South Florida in 1993. Former board members Kevin Larkin with Alliance Coal and Jack Reid with Seminole Electric encouraged Karen to get involved with NCTA. “I believe

that NCTA fills such a unique niche. No other organization serves the needs of the industry like NCTA’s O&M committee and conferences.” In 2009, Tampa Electric built rail facilities to serve Big Bend Station. It is one of the projects that Karen is most proud to have been involved with. It was a collaborative effort between many groups at Tampa Electric as well as CSXT. The project resulted in added optionality, diversity of fuel sources, increased counterparty liquidity and fuel flexibility that benefited Tampa Electric’s ratepayers. Until that point, Tampa Electric was 100% waterborne. In 2014, her team re-worked the waterborne contracts, “For the first time in many decades, Tampa Electric contracted for waterborne transportation services as three separate and distinct segments. At one point in time, it made sense to have an integrated transportation package for waterborne coal transportation services. By switching to three different services, we were able to tailor our approach to spread savings over the three segments the journey coal takes: down the Mississippi River; unloaded, stored, blended, and re-loaded onto a vessel at the terminal in Davant, Louisiana; and across the Gulf of Mexico to Tampa Bay.” Karen’s work philosophy can be summed up as follows. “On the surface, it’s about serving customers and constituents with reliable power and making sure shareholders get the return on investment they deserve,” she said. “But so much goes on behind the scenes to make this happen.”

“On the surface, it’s about serving customers and constituents with reliable power and making sure shareholders get the return on investment they deserve. But so much goes on behind the scenes to make this happen.” 6 | COAL TRANSPORTER

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Through a “top-off” vessel loading (pictured) Xcoal is able to maximize efficiency and demonstrate the longterm sustainability and competiveness of U.S. coals to India and Asia.

Know Your Board / Karen Bramley continued While Karen was born in California, her mother is Canadian and her father was from Louisa, Kentucky. She moved to Dade City, Florida at a young age and spent many summers between Nova Scotia and Kentucky visiting family. Her dad was a sales manager for Allis Chalmers so she was lucky enough to spend part of the summer traveling with him. It was a big deal because that meant they were going to stay at a Holiday Inn that had a swimming pool. Road trips with the family meant driving 17-18 hours to get to his next visit. She will never forget the trip that they drove from Tampa to Bangor,

had a remarkable life”. Karen is a member of Tampa Electric’s Values Team, Tampa Propeller Club, and also serves on the boards of the Eastern Fuel Buyers Conference, and TECO Energy’s Political Action Committee. She is a recent graduate of the FBI Citizen’s Academy in Tampa and Leadership Tampa Bay. Karen lives with her husband of 23 years, Doug in Plant City, Florida. They have a teenage daughter, Jordan, who is a competitive swimmer. Besides swim meets and pre-dawn practices, the family enjoys traveling and sports. s

Maine without stopping so that they could get to Halifax in time for Christmas. Given Karen’s ties to Halifax, it is quite surreal to her that EMERA, Inc. is in the process of acquiring TECO Energy, Tampa Electric’s parent. In November of 2014, Karen and her daughter traveled with her Mom and Dad on a cruise through the Panama Canal so her Dad could cross this item off his bucket list. Karen lost her Dad to cancer about 3 months later. She believes in the words of the late ESPN, sportscaster Stuart Scott – that you beat cancer by the way you live your life - and “Dad

Dave Gambrel It is with a heavy heart that we say goodbye to Dave Gambrel, who passed away on February 14, 2016. Dave and his wife of 53 years, Barbara, are pictured here at the 2013 Spring Conference in Tucson. Dave has been a contributing writer for the Coal Transporter since 2011, focusing on terminals and water transportation. Dave drew on his extensive experience in the coal business that included 25 years at Peabody Coal. He was an avid golfer, travel enthusiast, artist, and an active member of Ballwin Baptist Church. s

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Minnesota Power / Member Profile

Minnesota Power

ON TOP OF OUR GAME By Sandy Winek, Fuels Delivery and Supply Analyst, Minnesota Power Strategy and Planning

innesota is known for its rich hockey history and traditions. Native son Herb Brooks coached the “Miracle on Ice” men’s hockey team that captured the gold medal in the 1980 Winter Olympics. The U.S. Hockey Hall of Fame calls Eveleth, Minn., home, and many who live in this “State of Hockey” are fiercely loyal fans of the National Hockey League. Similarly, Minnesota Power has deep roots in northern Minnesota. And few “power plays” are as notable as the one Minnesota Power has been a part of since its beginnings as Duluth Edison Electric Co., an electric utility, and eventual evolution into today’s ALLETE Inc., an energy company with investments that also include a coal mine and wind power. Technological advancement in the late 19th century established the original league of electric providers, and in 1906 several utility companies in northern Minnesota consolidated and incorporated as Duluth Edison Electric Co. By 1923, after acquiring many regional utilities, the company became known as Minnesota Power and Light Co. and later simply as Minnesota Power. COAL TRANSPORTER | 9

The boom in iron mining from the 1950s through the 1970s required an extensive expansion of the power supply in northern Minnesota. Minnesota Power deepened its commitment to the region and to coal-fired generation when it built Laskin Energy Center in 1953 to serve the growing demand for electricity. Laskin was followed by the construction of Boswell Energy Center Unit 1 in 1958, Unit 2 in 1960, Unit 3 in 1973, the Square Butte lignite facility in North Dakota in 1977, and finally Boswell Unit 4 in 1980. With a capacity of more than 1,000 megawatts, Boswell remains Minnesota Powerâ&#x20AC;&#x2122;s largest generating facility, consuming more than 4 million tons of coal a year. In the 1980s and 1990s, Minnesota Power rapidly diversified and grew with investments in the automotive, telecommunications, and real estate sectors, creating a company that was no longer only an electric service provider as the mining industry fell into recession and consolidation. In an effort to better identify what now was a diversified company, the Minnesota Power board of directors unveiled a new entity, ALLETE Inc., in 2000. The corporation is listed as ALE on the New York Stock Exchange.

10 | COAL TRANSPORTER

The ALLETE Team Roster

A teamâ&#x20AC;&#x2122;s success lies within the strengths of individual players. Today, five companies representing about 1,600 talented employees contribute to the continued success and growth of the ALLETE team. Minnesota Power is the largest division of ALLETE and provides electricity in a 26,000-square-mile electric service area in northeastern Minnesota. Minnesota Power supplies retail electric service to 144,000 customers and wholesale electric service to 16 municipalities. It owns and operates a diverse generation fleet with coal, natural gas, biomass, wind, and hydro capabilities. ALLETE Clean Energy was established as a wholly-owned subsidiary in August 2011 to develop or acquire capital projects with minimal environmental impact. The subsidiary operates independently of utility division Minnesota Power in pursuit of projects in the areas of wind, hydro, biomass, solar and the emerging shale industry.

“There is a distinct dichotomy between the typical electric utility balanced customer base and Minnesota Power’s industrial intense sales portfolio.” Kathy Benham, Director – Minnesota Power, Fuel Strategy and Sourcing

Superior Water, Light and Power Company (SWL&P) sells electricity, water and natural gas in Superior, Wis., and adjacent areas. SWL&P has served the area since 1889 and provides service to 14,000 electric customers, 12,000 natural gas customers and 10,000 water customers. U.S. Water Services is an integrated industrial water management company based in St. Michael, Minn., serving a growing and diverse mix of customers in industries such as biofuels, power generation, midstream oil and gas, and healthcare. U.S. Water serves more than 3,600 customers nationwide, provides integrated water management solutions by specializing in chemicals, treatment and monitoring equipment, engineering and related services that reduce water use, save energy and improve efficiency. ALLETE acquired U.S. Water in 2015. BNI Coal operates a lignite mine in Center, N.D., and recently completed a major expansion. Two electric generating and transmission coopera-

tives, Minnkota Power Cooperative and Square Butte Electric Cooperative, consume virtually all of BNI Coal’s production, about 4 million tons annually from reserves estimated at 650 million tons.

Playing in a Unique Arena

Minnesota Power operates in an arena very different from other U.S. utilities. A high percentage of MP’s electric power output supplies large industrial facilities that represent more than half of total regulated utility sales. Eleven customers require 10 megawatts or more of generating capacity and make up approximately 60 percent of Minnesota Power’s load. This customer mix is unique compared with a typical utility where residential sales comprise the majority of demand. This unique load demand also brings unique challenges. Many of Minnesota Power’s large industrial customers are part of the taconite industry in northern Minnesota’s Iron Range. Taconite is a low-grade iron ore used in steelmaking. The steel market historically is cyclical in nature and U.S. steelmakers are struggling in a market characterized by decreased demand and cheap imported steel. In order to sustain the eco-

COAL TRANSPORTER | 11

ALLETE OPERATIONS

nomic viability of the region, Minnesota Power believes it is imperative that it continues to offer competitive rates by reducing operational costs through efficiency and working with fuel and transportation suppliers to secure best value for the customer.

The EnergyForward Position

Minnesota Power launched its EnergyForward initiative in 2013. This roadmap to a cleaner energy supply will result in a balanced generation mix of one-third coal, one-third renewable energy and one-third natural gas by 2030. EnergyForward expands upon renewable energy investments Minnesota Power has already completed, further diversifies the company’s generation mix and builds upon significant emission reductions at existing power plants. It does so while preserving the reliable and affordable power Minnesota Power’s customers have come to expect. This commitment included a $250 million investment at the coal-fired Boswell Energy Center Unit 4 in 2015 for an environmental retrofit that reduces mercury emissions by 90 percent and also reduces particulate and sulfur dioxide levels. A similar investment was made at Boswell’s Unit 3 in 2010. With these significant capital improvements, Boswell will continue to produce reliable baseload power essential to serving customers and reduce its impact on the environment.

“Our EnergyForward strategy is delivering a more diverse, efficient and flexible power supply while reducing emissions and assuring reliable and affordable electric service our customers deserve and expect. We are doing our part to answer the call to transform the nation’s energy landscape.” Al Rudeck Jr., Vice President Strategy and Planning Minnesota Power 12 | COAL TRANSPORTER

ALLETE (NYSE: ALE) is an energy company rooted in northern Minnesota but expanding into other areas across the United States. While it has been well-positioned in Wisconsin, North Dakota and Florida for decades, ALLETE has enlarged its footprint with the recent establishment of ALLETE Clean Energy and the acquisition of U.S. Water Services.

ALLETE Clean Energy ALLETE Properties BNI Coal Minnesota Power Superior Water, Light & Power U.S. Water

Game Changers

2015PROFILE1.indd 2

To sustain the momentum of EnergyForward, Minnesota Power also has made significant changes at two other coal-fired generation facilities—Laskin Energy Center and Taconite Harbor Energy Center. In 2015, Minnesota Power converted the 110-megawatt Laskin from a coal-fired facility to a peaking natural gas facility. Laskin, in Hoyt Lakes, Minn., in the heart of the state’s Iron Range, received its last coal train from the Powder River Basin transported on the BNSF and CN railroads on Feb. 12, 2015. As a coal-fired facility, Laskin consumed about 350,000 tons of coal annually. The Taconite Harbor Energy Center in Schroeder, Minn., with an average annual coal burn of about 680,000 tons, retired a 75-megawatt coal unit in June 2015. Minnesota Power expects to idle the power plant’s remaining two 75-megawatt generators in 2016. Located about 90 miles north of Duluth on the shore of Lake Superior, Taconite Harbor is favorably positioned with access to both waterborne and rail transportation. Alternative uses for the facility are being identified and assessed.

100%

80%

2005

Current

Goal

1/3

How we are moving EnergyForward:

Renewable

60%

1/3 40%

Natural Gas Coal

20%

1/3

3/20/15 3:42 PM

16th Annual

PRB Coal Usersâ&#x20AC;&#x2122; Group Meeting April 18-21, 2016 | Morial Convention Center | New Orleans, LA

HUNDREDS OF COAL PROFESSIONALS. FOUR DAYS ADDRESSING ISSUES THAT COUNT. ONE CONFERENCE. Does your plant burn sub-bituminous coal, or is it considering its use? Are you wondering how current regulation changes will impact your plant? Is safety important to your job? Does your plant need to efficiently and economically use coal in the generation of power?

YES

If your answer is to any of these questions, you need to be in New Orleans this April.

Boswell Energy Center, Cohasset Minn.

Generation MVP

While the EnergyForward resource strategy aims to balance Minnesota Power’s generation fuel profile, system reliability is also recognized as a critical performance component. The 1,070-megawatt Boswell Energy Center in Cohasset, Minn., is considered the Most Valuable Player of the ALLETE generation fleet, supplying consistent energy that customers depend on. The Boswell facility achieves its baseload performance by continuing to use approximately 4 million to 4.5 million tons of coal from the Powder River Basin each year. The ability to preserve dependable and cost-effective coal-fired power, while exceeding environmental standards, allows Minnesota Power to expand its reach into renewable energy interests. Interestingly, the Boswell Energy Center has an extraordinary place in the history of Powder River Basin coal. Boswell received the first long-distance, unit train haul of Powder River Basin coal in 1969 after a three-way agreement was reached between Minnesota Power & Light, Peabody Coal Co., and the Great Northern and Northern Pacific railroads (now BNSF). Boswell continues to rely on Powder River Basin coal to fuel its generating units and the BNSF railroad to transport the coal to Minnesota.

Rising Stars

Minnesota Power is adding to its already impressive player lineup with projects designed to bolster the ALLETE team’s core commitment to responsible, dependable, and equitable energy. 14 | COAL TRANSPORTER

Bison Wind Energy Center: Early in 2015, Minnesota Power commissioned the latest phase of its Bison Wind Energy Center. The nearly 500 megawatts of renewable power produced by Bison’s 165 turbines rank it as North Dakota’s largest wind farm in terms of electric generating capacity. The wind farm was built in four phases and energy from Bison 1, 2, 3 and 4 is delivered to Minnesota Power customers via a direct current transmission line stretching 465 miles from the Square Butte Substation in Center, N.D., to the company’s Arrowhead substation near Duluth, Minn. With the completion of Bison 4, Minnesota Power became one of America’s top-10 wind power-owning electric utilities. Bison has been recognized by its peers and was voted best project of the year at the 2013 POWER-GEN International Conference. Great Northern Transmission Line: Minnesota Power is proposing to build the Great Northern Transmission Line, which will deliver hydropower generated by Manitoba Hydro to customers in the United States. This project will consist of a 500-kilovolt transmission line from the Minnesota-Manitoba border to the Blackberry Substation near Grand Rapids, Minn. Several priorities are driving the need for the Great Northern Transmission Line including: • Access to clean, affordable, reliable energy for Minnesota Power customers and the region.

The last coal train delivery into Laskin Energy Center, February 2015.

• Increased industrial load growth on Minnesota’s Iron Range. • Strengthen system reliability for Minnesota Power and the region. Construction of the Great Northern Transmission Line is expected to begin in 2017 with service to begin in 2020.

Changing the Playbook

The playbook for Minnesota Power has certainly become bigger, faster, and stronger over the years. The ability to read the rink before making a play has always been an ALLETE strength and that vision, along with the EnergyForward strategy, has helped Minnesota Power position itself as an energy leader and ahead of many regulatory requirements. Game winning goals are not made by sitting on the bench. Minnesota Power plans to keep its stick on the ice, play hard, and reach its goals by continuing to provide reliable, affordable, and responsible electricity—an energy hat trick. s

Minnesota Power employees volunteering for “Hockey Day Minnesota 2016”

COAL TRANSPORTER | 15

NCTA 2015 Fall Conference / Review

NCTA 2015 Fall Conference Grand Hyatt - Denver, Colorado | September 14-16, 2015

he NCTA held its 41st annual Business Meeting and General Conference at the Grand Hyatt in Denver, Colorado, September 14-16, 2015. The Grand Hyatt was a new venue of the NCTA and it was fabulous. After the huge turnaround in cycle times, many utilities went from no coal to too much coal. As such, the theme of this year’s conference was “Fuel Fitness: Flexibility and Balance” In addition to a full agenda, participants enjoyed time to network at several hosted receptions and customer events. The receptions were held in the Capital Ballroom of the 38th floor Pinnacle Club. The Club offers panoramic views of the Rocky Mountains and the Denver metropolitan area. While not quite from sea to shining sea, according to the USGS, the land area seen from this location is larger than Connecticut, Rhode Island and Delaware combined. Flexibility was needed from the conference opening, as a travel glitch prevented Professor Doggett from kick-

ing off the event as planned. Surface Transportation Board Chairman Daniel Elliott III stepped in to the opening slot proving the STB is really there for you when you have a transportation problem. Ok, technically it wasn’t surface transportation, but what the heck, he saved the day. One of the things that stood out in reviewing this conference was the breadth of the discussion topics. On one hand, billions are living in energy poverty, either without electricity at all, or in situations where it is unreliable for things we take for granted. On the other hand, a tremendous amount of energy is consumed powering the cloud, from server farms and data storage to charging billions of cell phones, laptops, and tablets. If the cloud were its own country, it would be the fifth largest energy consumer in the world. Coal plays a vital role in supplying the both the “have nots” and the “want mores.” Judy Colgan of the Rocky Mountain Coal Mining Institute moderated

STB Chairman Daniel Elliott

a panel discussion on environmental regulations affecting fuel flexibility. The panelists included Tiffany Roberts of the California Aspire Project, Mike Nasi of Jackson Walker L.L.P. and Craig Rucker of the Committee for a Constructive Tomorrow, all of whom had their own slots on the agenda. Professor John Doggett, Senior Lecturer at the University of Texas McCombs School of Business, opened the Wednesday morning session, covering recent changes in the economies and politics of the emerging BRIC nations. Coal has and will continue to play a large role in their growth, especially in China and India. The agenda included many other great speakers and we truly appreciate them making this one of the most educational events around. Their presentations are archived in the Members section of the NCTA website. We’ll be back at the Hyatt this fall so plan on joining. It is an election year and this one is proving to be the wackiest one ever.

2015 FALL SPONSORS FreightCar America Ingram Barge Company TrinityRail Ken Brockway and Paul Linton

16 | COAL TRANSPORTER

III

Melinda Canter, Harry Heydorn, Lin Midyett, Kevin Strode, Craig Rucker

Nikki Preston and Matt Siemer

Paul Fritzler and Tom Kramer

Paula Hicks, Angie and Rowdy Smith

Matt Moore

Annette Siebert and Jody Gibbs

Benjamin Varner, Kent Smith, Rowdy Smith

Dana Koenig and Mike Kelly

Dan Carpenter and Jim Silva

Brian Fuller, Kim Hess, John Mayer

Mike Stevermer and Cole Ferrin

Clint Satterlee, Elizabeth Hansen, Carol Scarborough

COAL TRANSPORTER | 17

NCTA Membership Profile / xxxx

MEMBERSHIP BENEFITS

our 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.

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. 18 | COAL TRANSPORTER

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 â&#x20AC;&#x153;Members Onlyâ&#x20AC;? 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.

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NCTA 2016 Spring Conference / Preview

NCTA 2016

SPRING CONFERENCE

Royal Sonesta, New Orleans, Louisiana | April 10-13, 2016

ou will be in the heart of the action in more ways than one as the NCTA kicks off its Spring Conference in New Orleans April 10-13, 2016. The venue for this meeting will be the Royal Sonesta New Orleans. This AAA 4 Diamond-rated hotel is located in the historic French Quarter on one of the world’s most famous locals, the legendary Bourbon Street. No need for a car, as everything is at your doorstep and transportation will be provided to all NCTA offsite events. As always, you can expect a robust agenda that will get you up to date on the many issues challenging to the coal, transportation, and utility industries. Confirmed speakers include STB Chairman Daniel Elliott III who will be able to answer your questions on the impacts of the Surface Transportation Board Reauthorization Act of 2015 and former CIA field operative Mike Baker who will discuss security threats to the energy grid. This meeting will also see the kick-off session of the new Waterborne Transportation Committee. This working group will meet in a Tuesday afternoon breakout session and all are welcome to attend. See the general schedule for making your travel plans.

20 | COAL TRANSPORTER

REGISTRATION:

Registration is required for each attendee at the NCTA Spring Meeting. The fee is $650.00 for attendees representing a member company and $850.00 for all other attendees when registering prior to March 26, 2016. The fee includes the Sunday night reception, Monday’s New Orleans Fête, and continental breakfast on Tuesday and Wednesday. Beginning March 26th, 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 are nominal fees for guests and optional events. In addition to the annual golf tournament, that will be held at the Audubon Park Course, we are coordinating a trip to the National World War II Museum. According to Trip Advisor, the museum is the #1 (out of 295) “Thing to Do in New Orleans.” Transportation will be provided to both the annual golf tournament and the WWII Museum tour.

ACCOMMODATIONS:

The Royal Sonesta is constructed in the traditional French Quarter style, with gabled windows, double French doors and wrought iron laced balconies. The hotel is known for its relaxing courtyards that are lush with local plants and trees. The current property was opened as a newly constructed hotel in 1969 but the land it sits on has been in continuous use since 1721 when French military engineer, Adrien de Pauger first laid out the city of New Orleans. Attendees can book within the group block by calling the reservations line at 1-855-463-3092 and asking for the Group Code “0416COALTR” or the Group Name “NCTA 2016 Spring General Conference” at the Royal Sonesta Hotel New Orleans. You can also use the link on the NCTA website to make your reservations online.

ROOM RATES PER DAY: $209.00/day Single/Double Room includes internet access. Please keep in mind that hotel blocks for NCTA events often sell out, so make your reservations early. The block cutoff date for guaranteed reservations is March 18th. The Royal Sonesta is located at 300 Bourbon Street, New Orleans, LA 70130. s

SUNDAY, APRIL 10 5:30pm - 6:30pm

Welcome Reception for Early Arrivals

MONDAY, APRIL 11 8:00am - 11:00am 11:30pm - 4:30pm 12:00pm - 4:00pm 6:30pm - 9:30pm

NCTA Board of Directors Meeting Golf Tournament - Audubon Park Golf Course Tour of the National WWII Museum New Orleans Fête - Food, Music, Fun

TUESDAY, APRIL 12 7:00am - 8:00am 8:00am - Noon Noon - 1:30pm 1:30pm - 5:00pm

Continental Breakfast General Session Lunch by Individual Arrangement Waterborne Transportation Committee Meeting and other Breakout Sessions as needed

WEDNESDAY, APRIL 13 7:00am - 8:00am 8:00am - Noon

Continental Breakfast General Session COAL TRANSPORTER | 21

Crown-half pg-Coal Trans ad-vert-final.pdf

New Member Announcement

1/26/16

6:09 PM

NCTA WELCOMES ITS NEWEST MEMBERS!

he board of directors of the National Coal Transportation Association is pleased to announce that the applications for membership in NCTA of the following coal industry participants were approved. They join 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

CMY

BENEFITS OF MEMBERSHIP • • • • • • • •

22 | COAL TRANSPORTER

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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Lights, Camera, Implosion!?

By Chad Perrewe, Marketing Analyst, AllTranstek

llTranstek teamed up with the MythBusters crew to examine the myth that a rail tank car could implode from a vacuum created when a car is sealed after steam cleaning. A tremendously long journey finally culminated in the experiment phase, and the process that Jamie Hyneman of MythBusters describes as “spanning 3 months” realistically began in late 2014. In the “Tanker Crush” episode, which aired January 16th, 2016, MythBusters stated three main logistical hurdles they needed to overcome. First, finding tank cars was a problem for their team, with no industry background or proper contacts to leverage. MythBusters also needed to secure a facility where the experiment could be conducted. A remote site where the filming process would not be interrupted was an absolute necessity, with space to accommodate the required equipment, while providing sufficient room to maintain a safe distance during the experiment. Lastly, it was vital that MythBusters bring in expertise to consult them on the technical aspects of the tank car, use of the equipment, and safety measures. AllTranstek was able to provide solutions to all of these needs for MythBusters. Gauging the feasibility of overcoming these hurdles was a large part of the initial process which began with a phone call at the end of 2014. Several months of communication with MythBusters narrowed down the scope of each stage, as well as the strategy needed to reach various milestones over the life of the project. AllTranstek’s “hands on” involvement with project marked the 3 month phase described by MythBusters host Jamie Hyneman. The process included acquiring the tank cars, securing a facility, and obtaining a plethora of other equipment and service requirements, including mobile repair units, steam generators, vacuum trucks, scrap dealers, and proper safety training staff. Having finally arranged the necessary items to move

24 | COAL TRANSPORTER

forward, the testing phase was ready to begin. AllTranstek was also proud to provide expert representatives in safety and regulatory matters from the rail industry to govern the process and help facilitate the proper performance, and reception, of the activity. At a facility provided by Pacific Ethanol in Boardman, Oregon, the experiment was conducted over the span of three days, with steam clean and vacuum experiments conducted on both tank cars to no avail. The negative pressure rating the cars were exposed to well exceeded the estimated forces that were expected to cause a tank car to inwardly collapse. The lack of results from the first two days of experimentation prompted the MythBusters to simulate a structural flaw in the tank car’s shell. A six inch dent in the shell was created by dropping a 3,200 pound concrete block from over 30 feet onto the top of the selected car. Only after this significant flaw in the car’s structural integrity was formed were the MythBusters able to bear witness to an implosion, as the car collapsed in line with the predicted negative pressure ratings. A verdict of “Myth Busted” from hosts Jamie Hyneman and Adam Savage, speaks volumes to both the durability of the North American general purpose tank car, and the measures taken by regulators, car builders, and car operators to ensure commodities traveling by rail are moving in safe vessels. AllTranstek is happy to have played a part in this unique event, and hopes that this experiment has helped shed some positive light on the tank car, while showing that tank car owners, operators, builders, and regulators consider safety a number one priority. s

COAL TRANSPORTER | 25

NCTA COMMITTEE

UPDATES Waterborne Transportation Committee

In December 2015, the waterborne community received a big win in congress, to the tune of 405 million dollars over the next fiscal year. The Waterways Council members and many others who depend on the US waterways for their livelihood have been involved in a long battle for a necessary piece of the public/private investment pie. An aging water system with locks and dams operating well beyond their designed economic life are badly in need of repair. The river shipping industry is hoping that by shoring up the disintegrating and malfunctioning locks and dams it will help the coal industry by keeping transportation costs low. “Low transportation costs are one of coal’s competitive advantages over natural gas and rivers remain the cheapest way to move large amounts of fuels,” says Mr. Somales of Murray America. In 2015 approximately 167 million short tons of coal traversed American waterways. The goal of this committee is to focus specifically on the coal industries unique logistical, regulatory, and infrastructure needs. We will also seek to address all segments of transportation of coal by water including the Great Lakes, export and river terminals, ocean shipping, regulatory challenges, coal exporting, rail to water logistics and much, much more. In accordance with our mission the primary purpose of this committee will be educate, advocate and facilitate resolutions to transportation challenges.

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.

The Inaugural Committee Meeting will be held on April 12, 2016, in New Orleans, LA. The meeting will be held in conjunction with the NCTA Spring Conference at the Royal Sonesta Hotel. Spring Conference dates are April 10-13, 2016.

The schedule for April 12, 2016 is as follows. 8:00am - 12:00pm General Spring Conference Session 12:00pm - 1:30pm Lunch by individual arrangement 1:30pm - 4:30pm Waterborne Transportation Committee Meeting

Terry May is the Chairman of the Waterborne Transportation Committee

Education Committee The Education Committee administered the NCTA scholarship program with Mindy Watson-Ward (Cloud Peak) serving as Chairman. Jared Wicklund of The Empire District Electric Company is the new Vice-Chairman. In September of 2015, four scholarships were awarded to students who are children of employees of NCTA

26 | COAL TRANSPORTER

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 university scholarships will be suspended in 2016 for budgetary reasons but we hope to reinstate them next year. s

The Chairman of this working committee is Terry May of Associated Terminals and the Vice Chairman is Finn Host of T. Parker Host. We look forward to the active participation of terminal operators, coal producers, coal consumers, barge & tug operators, coal quality analysts and service providers, draft surveyors, ocean shipping companies, and all other water transportation enthusiasts! To be included in all Waterborne Transportation Committee correspondence, please contact Melinda Canter at 720-227-1049 or nationalcoaltransportation@gmail.com s

Operations and Maintenance

Dennis Wanless (Xcel Energy) who was serving as Chairman of the Operations & Maintenance Executive Committee retired in January. Harry Mullins (Southern Company) has assumed the role of Chairman and has retained his duties as the program committee chairman. These duties include putting together the agenda for the 2016 Operations and Maintenance Conference, which will be held at the Hyatt Regency in Austin, Texas. Carmen Sparks (Luminant) continues to serve as Vice-Chairman. We do have one opening on the Executive Committee for a utility representative so if you’re interested, please contact Robin Andersen at randersen@mrc-rail.com. Robin is chairing the nominating committee. The committee offers members great educational value through its series of webinars. In early October, a webinar titled “Life Cycle Analytics in Coal Service” reviewed the Amsted Railytics wheel and component life and performance analytics process and some of its results in the coal industry. The webinar was presented by Armand Taillon, P.E., Director – Product Marketing, Amsted Rail Company. Armand had been unable to make his scheduled presentation at the O&M Conference because his daughter was hospitalized. We are happy to report that Gigi is regaining her strength and is on the road to recovery. If you would like to make a webinar presentation or have an idea for one, please contact Gayle TenBrink (TrinityRail) or Glenn

New Chairman Harry Mullins, Dwight Porter, Retiring Chairman Dennis Wanless Stoner (Colorado Springs Utilities) who manage this educational outreach program. Tom Sedarski (Amsted Rail Faiveley) is heading the technical review group within the O&M Committee. If you have not submitted your wheel removal data, please do so as soon as possible so we can move forward with this project. If you are unsure of where to start, please contact NCTA staff. The data collected will remain owner anonymous in the collective database. The goal is to identify trends and commonalities pertaining to wheel life and the study of the data may lead to solutions to reduce premature wheel change-outs and save fleet owners money. s

Eastern and Western Logistics & Planning The Eastern and Western Logistics & Planning Committees planned a joint meeting for March 9, 2016, hosted by Ameren in their Power Operations Services center in St. Louis. AKJ|Nalco is sponsoring lunch. This meeting is a bit difficult to write about as it hasn’t happened yet, but, it will be history by the time this magazine reaches your mailbox. Since we can neither promote nor report on it, just know that it was on the calendar and we hope you won’t/didn’t miss it. Four Class I carriers will be there to report on performance metrics and their 2016 operating and maintenance plans. We’ll report back in the next issue. An important thing that needs to be addressed by these groups is short term flexibility in the coal supply chain. Feast or famine doesn’t really work for anyone. s If you have agenda ideas or audience response questions for future meetings please contact:

Eastern Logistics and Planning: Chairman Edwin Fisher (Arch Coal)

Ameren is hosting the Joint L&P Meeting. AKJ|Nalco is sponsoring lunch.

Western Logistics and Planning: Chairman Jeff Zerkle (American Electric Power)

COAL TRANSPORTER | 27

2016 Operations and Maintenance Conference / Preview

2016 Operations and Maintenance Conference Austin, Texas | June 13-15, 2016

he NCTA Operations & Maintenance Committee will hold its annual conference June 13-15, 2016 at the Hyatt Regency in Austin, Texas. The conference will include sessions dedicated to the study of the technology, design, maintenance, operations, and repair of railcars in unit train service. The traditional private car owner roundtable will allow attendees to discuss challenges and review best practices. The roundtable will consist of a two sessions on Monday, with the morning session opened to NCTA voting members and the afternoon session open to all NCTA 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. Austin is known as the Live Music Capital of the World. With more than 250 live music venues, there is something for everyone. The Broken Spoke and the Continental Club are well known spots but donâ&#x20AC;&#x2122;t be surprised if you hear music in the terminal or walking past the local Whole Foods. Austin is often ranked one of the fittest cities in the country due to an abundance of outdoor recreation options coupled with lots of sunshine. The Hyatt is a waterfront property with easy access to one of the many great hiking and biking trails. 28 | COAL TRANSPORTER

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 activities of the O&M working committee. The conference fee is $500 for members and $700 for nonmembers. After May 21st, an additional fee of $50 will be added for late registrants. The registration fee covers the registration packet of information, admission to all meeting proceedings, the welcoming reception on Monday evening, continental breakfast on Tuesday and Wednesday, dinner and entertainment on Tuesday night, and all refreshment breaks. There is a charge for each guest of a registrant that participates in the Tuesday dinner and/or golf.

SPONSORSHIPS

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

ACCOMMODATIONS

The Hyatt Regency is a modern hotel with 448 contemporary guestrooms with views of downtown Austin and the Hill Country. The 17th-floor Foothills Ballroom, the location of the annual O&M dinner has a breathtaking view of the Austin Skyline. The Marker 10 Bar & Patio, located in the lobby, will be a favorite meeting spot for attendees. A Starbucks is also on site.

RESERVATIONS: 512-477-1234 ROOM RATES PER DAY: $205.00 Single/Double Taxes are additional; however, there is no resort fee. Wireless internet access is included. The cutoff date for the NCTA room block is Friday May 20, 2016. Check-in time is 4:00 PM and check-out time is 12:00 noon. Both self-parking ($19/day) and valet parking ($24/day) give guests unlimited access to their vehicle. The Hyatt Regency Austin is located at 208 Barton Springs Road, Austin, Texas 78704. s

AGENDA MONDAY, JUNE 13 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 – Marker 10

TUESDAY, JUNE 14 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 – Texas I General Conference – Texas I Lunch by Individual Arrangement General Conference – Texas I Dinner and Entertainment – Foothills II

WEDNESDAY, JUNE 15 7:30 a.m. - 8:00 a.m. Continental Breakfast – Texas I 8:00 a.m. - 11:30 p.m. General Conference – Texas I 1:30 p.m. - 6:00 p.m. Golf Tournament – TBD COAL TRANSPORTER | 29

REFLECTORIZATION BACKGROUND

In January of 2005, the Federal Railroad Administration (FRA) published its rule mandating the reflectorization of freight rolling stock (freight cars and locomotives) to enhance the visibility of trains in an effort to reduce the number and the severity of accidents at highway-rail grade crossings in which train visibility was thought to be a contributing factor. The rule established a schedule for the application of retroreflective material and prescribed standards for the construction, performance, application, inspection, and maintenance of the material. One of the provisions addressed the frequency with which the material must be replaced.

§ 224.111 Renewal. Regardless of condition, retroreflective sheeting required under this part must be replaced with new sheeting no later than ten years after the date of initial installation. At the time of replacement, it is not necessary to remove the old sheeting unless it interferes with the placement of the new sheeting, but the old sheeting shall not be considered in calculating the amount of retroreflective material required under this part. For purposes of this section, November 28, 2005, shall be considered the initial date of installation for freight cars and locomotives covered by § 224.107(a)(3) or 224.107(b)(3).

REQUEST FOR WAIVER FROM THE RENEWAL REQUIREMENT On September, 22, 2015 the Association of American Railroads filed a petition with the FRA requesting a waiver from the renewal provision for at least three years. In the petition, the AAR stated, “AAR is filing this petition now because otherwise the industry faces onerous logistical burdens, labor, and material costs to replace material that testing shows does not need to be 30 | COAL TRANSPORTER

replaced.” The only important part of this statement is that the material still does its job just fine. The FRA assigned a Docket Number to the petition (FRA2015-0105) and opened it for comments. As the petition for waiver technically only applied to AAR members listed in the petition’s Appendix A, NCTA Executive Director Tom Canter submitted comments in the open period requesting that NCTA members be granted the waiver as well. These comments were filed on November 12, 2015. On November 25th, the AAR was granted the waiver that it requested, contingent on the car owners meeting seven conditions throughout the three-year extension. Several of the conditions addressed cars that had been grandfathered in the initial 2005 regulation. These cars typically allowed a smaller reflective area as applied by the Original Equipment Manufacturer (OEM). All grandfathered cars must have retroreflective material replaced during the earliest single car air brake test. Other provisions provided criteria for inspection and a trigger for replacement should more than 20% of the material is found to be damaged, obscured, (as with graffiti) or missing. The final two conditions dealt with reporting requirements. Based on conversations with the FRA in December 2015, NCTA understood that the FRA intended to issue a technical notice or bulletin that would effectively grant an extension for three years to replace retroreflectors with such extension to apply to NCTA member companies. However, subsequent discussions with the FRA In February 2016, indicate that FRA management is considering not promulgating a waiver to non-AAR car owners, and would possibly rescind the waiver already granted to AAR members. There is now uncertainty surrounding the entire process. We will keep members posted on this issue as new information becomes available. If issued, any technical bulletin would be posted at www.fra.dot.gov under the Motive Power and Equipment Division section. s

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The

Benefits of

By William Happer Cyrus Fogg Brackett Professor of Physics, Emeritus, Princeton University

32 | COAL TRANSPORTER

t the New Orleans Symposium of the Waterways Council, Inc. in the fall of 2015, I was privileged to speak about the CO2 Coalition, a new, nonprofit organization formed to explain the benefits of carbon dioxide, CO2, to our fellow citizens. I am grateful to the Coal Transporter for allowing me to include a summary of the New Orleans talk here. My take-home message is that CO2, far from being a “pollutant,” is a benefit to the world for three reasons: (1) the greenhouse warming from more CO2 will be much less than predicted by most theoretical models and therefore benign; (2) more CO2 will be an enormous benefit to agriculture; (3) fossil fuels will be a huge benefit to those who are still impoverished by inadequate energy supplies.

This summary includes a brief technical review of climate science. Having taught university classes for nearly 50 years, it is hard for me to resist giving a quiz at the end, but I won’t. I hope the information will be helpful to transportation professionals and their business colleagues in countering any suggestions that they are “harming the planet” by their involvement with fossil fuels. I am not a “hired gun” for fossil fuel interests and I have accepted no payment for writing this and many similar essays. I do this out of devotion to scientific truth. Anyone involved in the transport of coal or oil should be proud of their jobs. They are on the right side of the “war on fossil fuels.” If mined, transported and burned responsibly, fossil fuels are a great benefit to the world. The CO2 released

when fossil fuels are burned will benefit the planet. For green plants, the world has been in a CO2 “famine” for tens of millions of years. Figure 1, from Berner et al. at Yale University, shows CO2 concentrations, RCO2, estimated for the past 550 million years, relative to the past few million years. The estimates are based on the fraction of the stable isotope carbon 13C in carbon-containing geological deposits. Only once, about 300 million years ago, have CO2 levels been as low as today. Plants converted some of the ancient CO2 into fossil fuels. Burning fossil fuels restores CO2 to the atmosphere from which it came. There are not enough recoverable fossil fuels to approach the highest CO2 levels of the past, up to 20 times larger than those today, but what

“...CO2, far from being a “pollutant,” is a benefit to the world...” - William Happer

Figure 1

COAL TRANSPORTER | 33

is released will make the world more verdant. CO2 is a greenhouse gas, nearly transparent for visible sunlight, and partially opaque for the invisible thermal radiation from the earth’s surface and atmosphere. The release of thermal radiation to space keeps the sun from overheating the earth. Water vapor, H2O, is the most important greenhouse gas, not CO2. Since greenhouse gases hinder the release of heat radiation from the earth’s surface to space, they keep the surface warmer than it would be if air were only nitrogen, N2, and oxygen, O2, neither of which are greenhouse gases. We are lucky to have the greenhouse gases, H2O and CO2. Without them the earth would be frozen solid because of rapid cooling by unhindered emission of thermal radiation to space. More CO2 from the combustion of fossil fuels will cause some additional warming of the earth’s surface. But observational data already show that government models have predicted far more warming than has actually occurred, as illustrated in Figure 2.

34 | COAL TRANSPORTER

Figure 2 The figure shows the warming predicted by models and observed by satellites and balloons. The data is for

the mid troposphere, where the effects of greenhouse warming should be most pronounced. You can see that the predicted

warmings, on which the war on fossil fuels is based, are much larger than what has been observed. Data like these persuade me and many other scientists that the warming will be moderate, probably about 1 C for doubling CO2, and good for the world. Like most readers of the Coal Transporter, I am an environmentalist, fully committed to a clean, healthy environment, and with a deep respect for nature. None of us would like to live in Shanghai on a day that looks like the photograph in Figure 3. You can barely see the Oriental Pearl Tower and the BottleOpener building through the smog. About half of the smog comes from vehicular traffic and from factories in the urban area. Only about 10% comes from coal power plants, about the same contribution as the burning of agricultural waste in surrounding farmland. In modern coal-fired power plants the exhaust gas has been cleansed of most real pollutants, like those you see in Shanghai above. As shown in the montage in Figure 4 (page 36), the scrubbed stack gases from a modern coal power plant are essentially the same as in human breath. The “smoke” from the stacks, or from the girl’s breath on a frosty day, is condensed water vapor. CO2 is completely transparent. Both humans and power plants exhale mostly nitrogen, with the remainder consisting almost entirely of CO2, water vapor, H2O, and oxygen. Humans exhale about the same fraction of water vapor as a power plant, but less CO2 and more oxygen, O2 The large fraction of O2 remaining in a human’s breath is why mouth-to-mouth resuscitation works. Each human exhales about 1 kg of CO2 per day,

Figure 3 so the 320 million people of the United States “pollute” the atmosphere with about 320,000 metric tons of CO2 per day, about 160 barge loads at 2,000 tons per load. Air with many times more CO2 than today’s 400 parts per million (ppm) is absolutely harmless to human beings. Submariners do just fine living in 4000 ppm of CO2, ten times today’s value. In spite of decades of propaganda that CO2 is “carbon pollution,” it is not a pollutant at all but a

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Figure 4 benefit to the world. The myth that CO2 is a pollutant comes from the claim that increasing CO2 will cause intolerable global warming. Since the globe has stubbornly refused to warm as much as theoretical climate models predict, the word “global warming” has largely been replaced by “climate change.” This is much less likely to embarrass the alarmists, as the nearly nonexistent global warming has done, since the climate is almost always warming or cooling. Only rarely is the earth’s temperature stable for more than a century. Quite a bit is known about climate from recorded human history. For example the Norse colonized and farmed Greenland around the year 1000 during the Medieval Warm Period, and they abandoned it around the year 1400, when the Little Ice Age made farming impossible. Geological proxy records of temperature, for example the ratios of the isotope 18O to 16O in carbonates, the types of pollen or alkenones in sediments and many other “proxies” show that the climate has always changed erratically, although it has been relatively stable in our current interglacial period that began about 12,000 years ago. For the previous 100,000 years or so, most of Canada and much adjoining United States were buried under thousands of feet of ice. None of these natural climate changes were caused by people burning fossil fuels. There is no evidence that the temperature

Figure 5 36 | COAL TRANSPORTER

changes were driven by changes of CO2. Quite the opposite, higher temperature caused CO2 levels to increase and lower temperatures caused it to decrease. In addition to the direct benefit of modest warming, more CO2 will bring huge benefits to agriculture. We owe our existence to green plants that convert carbon dioxide molecules, CO2, and water molecules, H2O, to carbohydrates with the aid of sunlight. One oxygen molecule, O2 is released for every CO2 incorporated into a carbohydrate. Land plants get the carbon they need from the CO2 in the air. Most plants draw other essential nutrients, water, nitrogen, phosphorus, potassium, etc. from the soil. Just as plants grow better in fertilized, well-watered soils, they grow better in air with several time higher CO2 concentrations than present values. Figure 5 shows Dr. Sherwood Idso with pine trees grown in various amounts of CO2 in experiments done about ten years ago when the ambient concentration of CO2 was 385 ppm. In the experiments pictured, the trees had plenty of other necessary nutrients: water, nitrogen, phosphorus, etc. The nutritional value of additional CO2 is only part of its benefit to plants. More CO2 is also an antidote to a surprising “pollutant,” oxygen! In full sunshine, plants can easily use up most of the available CO2 from the surrounding air. Then the biochemical machinery of the plant will try to use an O2 molecule in place of a CO2 molecule in a process called “photooxidation.” This produces harmful, rather than useful products. More CO2 ameliorates the problem of photo-oxidation and leads to more efficient photosynthesis in “C3 plants,” which include almost all trees and a large fraction of agricultural crops, including wheat, rice, soybeans, potatoes, cotton, etc. More CO2 in the atmosphere also makes plants more drought-resistant. Plant leaves are perforated by stomata, little holes in the gas-tight surface skin that allow CO2 molecules to diffuse from the outside air into the moist In addition to interior of the leaf where they are photosynthesized into carbohydrates. the direct benefit A leaf in full sunlight can easily reach of modest a temperature of 30 C, where the concentration of water molecules, warming, more H2O, in the moist interior air of the leaf is about 42,000 ppm, more than CO2 will bring one hundred times greater than the huge benefits 400 ppm concentration of CO2 in fresh outside air. And CO2 molecules, to agriculture. being much heavier than H2O molecules, diffuse more slowly in air. So depending on the relative humidity of the outside air, as many as 100 H2O molecules can diffuse out of the leaf for every CO2 molecule that diffuses in, to be captured by photosynthesis. This is the reason that most land plants need at least 100 grams of water to produce one gram of carbohydrate. Figure 6 illustrates the greening of the earth due to increasing amounts of atmospheric CO2. The data was inferred from satellite measurements analyzed by R. J. Donohue and colleagues at the Australian Climate Laboratory. Arid areas of the earth have shown especially pronounced greening.

mous benefit to the world and we should continue to use them until something better shows up. s William Happer is the Cyrus Fogg Brackett Professor of Physics, Emeritus, in the Department of Physics at Princeton University. He invented the sodium guide star that is used in modern telescopes to remove much of the image blurring due to atmospheric turbulence. Happer served as Director of the U.S. Department of Energy’s (DOE’s) Office of Science from 1991— 1993, an organization that supported most basic research of the DOE, including atmospheric physics and climate. He has given expert testimony before various U.S. congressional committees on the subject of global warming (climate change).

Figure 6 I hope readers will learn more about the facts outlined here, so that they can counter the scientifically incorrect and ethically immoral arguments used to support the war on fossil fuels. Those who support the war on fossil fuels seldom try

to respond to the facts outlined above, since they are true. Instead, they resort to ad hominem attacks on the messenger. Do not be intimidated, since you are on the right side of this issue. The responsible use of fossil fuels has been an enor-

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COAL TRANSPORTER | 37

Surface Transportation Board / Update

Surface Transportation Board Update

By Thomas W. Wilcox, Principal, GKG Law

he start of 2016 found a Surface Transportation Board with a significant amount of unfinished business on major policy and regulatory matters, new statutory directives from Congress, and a potential major rail merger with widespread ramifications for not only the rail industry and rail shippers, but the Board’s regulatory agenda and timeline.

Major Unfinished Policy and Regulatory Proceedings Railroad industry stakeholders have been waiting for the Board take formal action on several matters that could have significant industry wide impacts. These include (1) a petition for rulemaking that has been pending for five years asking the STB to modify its rules governing instances where a captive shipper may seek access to service by another railroad via reciprocal or “competitive” switching (EP 711, Petition for Rulemaking to Adopt Competitive Switching Rules); (2) the Board’s policies and rules governing the determination of the “revenue adequacy” of railroads pursuant to 49 U.S.C. §10704(a)(2) (EP 664 (Sub-No. 2), Petition of the Western Coal Traffic League to Institute a Rulemaking Proceeding to Abolish the Use of the Multi-Stage Discounted Cash Flow Model in Determining the Railroad Industry’s Cost of Equity); (3) how railroad revenue adequacy should be factored into the Board’s rules for determining the reasonableness of railroad rates in large rate cases (EP

38 | COAL TRANSPORTER

772, Railroad Revenue Adequacy); (4) the Board’s rail rate rules as applied to agricultural rail shippers (EP 665 (Sub. No.1), Rail Transportation of Grain, Rate Regulatory Review); and (5) the service metric data railroads must provide the Board and industry stakeholders (EP 724 (Sub-No.4), United States Rail Service Issues, Performance Data Reporting). These proceedings entail major policy issues related to some rail shippers’ concerns that they have no efficient and realistic way to challenge railroad transportation rates, that the Class I railroads are not meaningfully competing for business and would not if competition was established, that the Board’s present access rules and precedent make obtaining access to another railroad impossible, and that the STB’s rules and policies governing revenue adequacy do not provide clear guidance on how to factor the revenue adequate status of a railroad into rate reasonableness determinations and other regulatory matters. Shippers also seek finality on the rules for reporting service metric data to try and avoid the major service reductions they experienced in 2013-14. There are indications that the Board could take action on some or all of these major matters in the first half of 2016. Testifying before Congress in May of 2015, then-Acting Chairman Deb Miller stated that it was her goal after the public hearings on rate rules and revenue adequacy eventually held in June and July of 2015 that the STB would “issue a package of proposals on many, if not

all, of these matters,” including proposed changes to the Board’s reciprocal switching rules. Since being re-appointed Chairman of the STB in June of 2015, Dan Elliot has stated several times publicly his goal is to improve access to the Board and complete the proceedings in EP 665 (Sub-No. 1), EP 722 and EP 664 “within a year.” He has not included Board action in EP 711 on his public to-do list. On February 2, 2016, Chairman Elliott announced that the proposed rules on service metrics would be the first matter taken up by the Board under its newly granted authority to meet in private to discuss agency matters, discussed more in the next section.

The Surface Transportation Board Reauthorization Act of 2015 Before adjourning the first session of the 114th Congress, the House of Representatives and the Senate passed the Surface Transportation Board Reauthorization Act of 2015, P.L. 114-110, which was subsequently signed into law on December 18, 2015. The Act is the first significant reauthorization of the Board since its establishment approximately 20 years ago. The enactment of any laws governing the regulation of railroads is extremely difficult due to the lack of consensus on rail regulation reform between railroads and their customers, so this Act was a big achievement. However, its passage was due in large part because it does not contain provisions sought by rail shippers over the past two decades aimed at improving railroad competi-

tion, access, and rail rates. Rather, the Act is aimed more at improving the Board’s ability to function and internally communicate, reducing litigation costs, providing railroads and shippers with greater certainty related to the Board’s decision-making timelines, and providing more efficient options for service dispute resolution. Key provisions of the Act include: (1) Removal of the STB from the Department of Transportation (DOT) and establishment of the STB as an independent U.S. agency. (2) An increase in Board membership from three to five members. (3) Authorization for a majority of Board members to hold a meeting not open to the public to discuss official business when certain conditions are met. (4) A requirement that the Board establish a database of rail service complaints it has received, and that it post quarterly reports of rail rate reasonableness cases as well as rail service complaints it has received on its website. (5) Requirements that the Board maintain (a) one or more simplified rail rate reasonableness methodologies, and (b) procedures to ensure expeditious handling of challenges to the reasonableness of rail rates.

(6) Prescribing time limits for Board review of rail rate reasonableness cases (which may be extended in individual cases) (7) Authorizing the Board to investigate rail carrier violations on its own initiative as well as on complaint and prescribing requirements for investigations commenced on the Board’s own initiative. (8) Requiring the Board to establish a voluntary binding arbitration process to resolve rail rate and practice disputes. (9) Requiring the Board to report to Congress on whether current large rate case methodologies are sufficient, not unduly complex, and cost effective; and if sound economic alternative methodologies exist, or could be developed, to streamline and expedite large rate cases. (10) Requiring the Board to make quarterly reports to Congress on its progress toward addressing the issues raised in each unfinished regulatory proceeding, regardless of whether the proceeding is subject to a statutory or regulatory deadline.

COAL TRANSPORTER | 39

As noted above, Chairman Elliott announced on February 2, 2016 that the Board is already beginning to implement the new Act by holding its first private meeting on its proposed rules in EP 724. He also announced that the STB would post monthly status reports of its progress implementing the Act. How soon the STB is increased from three to five members remains to be seen in a presidential election year. Potentially affecting the process is that the term of Commissioner Ann Begeman expired at the end of 2015. Under the rules she is permitted to stay on additional “holdover” year until her seat is filled or she is reappointed. If she is not re-appointed, then the STB will be looking for three new commissioners in 2016 and 2017. As for other key aspects of the new statute, while it gives the Board new investigative authority to start proceedings on its own motion, the Board may be constrained by its budget with how extensively it can exercise this new power. Additionally, new language added to section 10704(a)(2) now requires the Board to take into account whether railroad revenues are adequate “for the infrastructure and investment needed to meet the present and future demand for rail services” when making revenue adequacy determinations. This addition has introduced a level of uncertainty and concern for rail shippers about how it will affect the Board’s deliberations and anticipated proposed formal actions regarding revenue adequacy in EP 664 (Sub – No. 2) and EP 722.

The Ripple Effects of a Proposed Merger of the Canadian Pacific Railway and Norfolk Southern Railway Finally, in 2015 the Canadian Pacific Railway announced its desire to acquire the Norfolk Southern Railway. NS rejected the initial overture, as well as several subsequent revised offers. BNSF Railway and Union Pacific Railroad Company have publicly stated their opposition to the merger, as have numerous rail shipper interests and members of Congress. As of the date of this writing, the CP’s merger plans were on hold, and the possibilities of the merger being formally 40 | COAL TRANSPORTER

proposed to the STB seemed slight. However, the potential of a CP-NS merger has raised several significant issues and considerations that will be prevalent should the CP-NS merger proceed, or if another major rail merger is subsequently proposed. Importantly, a proposed merger of CP and NS cannot be viewed and analyzed as a discrete transaction, because it would most certainly result in transforming the entire railroad industry and regulatory landscape. More specifically, the next major railroad merger will be reviewed by the STB under merger rules it adopted in June 2001 in STB Docket Ex Parte No. 582 (Sub-No. 1) (Major Rail Consolidation Procedures Decision). The changes to the rules that governed prior major rail mergers were triggered by the proposed merger of BNSF and the Canadian National Railway in 1999 and fears at that time that a BNSF/CN merger would have quickly resulted in the rapid consolidation of the industry into two North American transcontinental railroads. The Board and stakeholders feared such a result under the old merger rules in 1999 because of the smaller number of major railroads, the lack of

Procedures Decision at 9. “Our shift in policy places greater emphasis in the public interest assessment on enhancing competition while ensuring a stable and balanced rail transportation system.” Id. The Board’s merger policy accordingly reflects the Board’s post -2000 belief “that mergers serve the public interest only when substantial and demonstrable gains in important public benefits – such as improved service and safety, enhanced competition, and greater economic efficiency – outweigh any anticompetitive effects, potential service disruptions, or other merger related harms.” 49 CFR §1180.1(c). In the area of enhanced competition, the rules do not mandate merger applicants must propose enhancements, but the STB made it clear that the failure of merger applicants to include any competitive enhancements in their application would make it very hard for them to demonstrate that the merger was in the public interest. Enhancements suggested by the new rules include keeping open major gateways and preserving opportunities to challenge segment rates in bottleneck situations, reciprocal switching arrangements, trackage rights, and the elimination of ‘paper barriers’ on

The new merger rules, therefore, anticipate that a merger of CP and NS will result in the rapid consolidation of the industry into two or perhaps three major railroads, and there are strong indications that this would indeed be the outcome. excess capacity in the railroad industry, and the service meltdowns that occurred following the UP/SP and Conrail/NS/ CSX transactions. The new merger rules, therefore, anticipate that a merger of CP and NS will result in the rapid consolidation of the industry into two or perhaps three major railroads, and there are strong indications that this would indeed be the outcome. To address the fears in 1999, the Board revised its rules to “reflect a significant change in the way in which we will apply the statutory public interest standard test to any major rail merger application . . . .[W]e believe that future merger applicants should bear a heavier burden to show that a major rail combination is consistent with the public interest.”

interchange by shortline carriers. Consistent with the merger rules, CP’s public statements concerning its proposal to merge with NS include promises that its merger proposal would include some form of access rights, the establishment of segmented rates that would permit bottleneck rate reasonableness scenarios, reciprocal switching, and the elimination of paper barriers. The consideration of such measures in the context of the conditions to place on the approval of a proposed CP-NS merger proceeding will open the door for a larger policy discussion of these potential competitive enhancements that will most certainly and unavoidably expand their final form beyond just the merged CP-NS entity to the remaining Class I

railroads and the industry as a whole. This would occur even in the unlikely event that a CP-NS merger proposal does not immediately trigger additional mergers and further consolidation. Regardless, a critical contextual point is that the new merger procedures were proposed in 2000 and adopted in 2001, when the presence or creation of potential rail-to-rail competition generally resulted in favorable rate levels and service terms established by vigorous competition. The rules thus preceded the period when rail rates for even dual served locations dramatically increased to be comparable to or even higher than rates charged to captive shippers. They also preceded the gradual elimination of enforceable service standards from many rail transportation contracts and tariffs. Additionally, due to the presence of rail competition, rail rate cases were not common. In the eyes of many rail shippers, the STB’s assumptions in 2001 regarding the effectiveness of merger conditions aimed at enhancing competition are not

In the eyes of many rail shippers, the STB’s assumptions in 2001 regarding the effectiveness of merger conditions aimed at enhancing competition are not supported by either the current state of the railroad industry or the Board’s regulatory regime. supported by either the current state of the railroad industry or the Board’s regulatory regime. More specifically, two fundamental issues that the Board has arguably yet to adequately address - even though it has received mountains of testimony and evidence from rail shippers and shipper organizations on the issues in numerous agency proceedings - are that (1) competition in the railroad industry has substantially declined since 2003 while rates have substantially increased and service has become less reliable; and (2) the Board’s rate reasonableness rules and procedures do not provide a meaningful way to challenge railroad rates. For the shippers that hold these views, the competitive enhancements proposed

by CP and contemplated by the Board’s merger rules have little or no value, and will not until the Board finally addresses these issues in the pending proceedings summarized above. s Tom Wilcox is a Principal of the law firm GKG Law, P.C., located in Washington, D.C., 202-342-5248, and twilcox@ gkglaw.com. Tom has represented rail shippers of coal and many other commodities in commercial, regulatory, and litigation matters for over 25 years. He has also represented NCTA and non-shipper entities on railroad matters. The views expressed in this article are solely those of the author and not offered for legal advice.

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NCTA Scholarship Recipients

2015 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.

Zachary Jensen Michigan Technological University | Electrical Engineering Zachary Jensen is currently a second year student with junior status at Michigan Technological University studying Electrical Engineering with a minor in Enterprise and a certificate in Power Systems. He plans to pursue a Masters Degree in Electrical Engineering after completing his Bachelor’s Degree. Having grown up around Wisconsin Public Service and the power industry, he is interested in working in the power generation field after graduation. At Michigan Tech, Zachary participates in varsity track and field and is a part of the St. Albert’s campus ministry. He is also the president of Green Campus Enterprise where he is working on a project to determine the feasibility of installing a wind turbine to help provide power to the campus ski hill. His team is currently working to determine which turbine would be best suited for their site and situation. The decision to select a larger or smaller sized turbine for the project ties back, as most decisions of this type do, to the economic benefits derived from any excess generation and whether a monetary sell back or credit sell back would be better.

Recipient of the 2015 David Laffere Scholarship Award

Zach is the son of Brian Jensen (Wisconsin Public Service, now WEC Energy Group)

Patrick Keep Iowa State University | Mechanical Engineering Patrick Keep is originally from Columbus, Nebraska and graduated from Columbus High School in 2013. He is currently attending Iowa State University in Ames, Iowa pursuing a Bachelor’s of Science degree in Mechanical Engineering with a Spanish Minor. He is on track to graduate with Honors in May 2017. Patrick has kept busy in during his summers with internships. In 2014, he interned with Vishay Dale Electronics as a Process Engineering Intern, creating and revising drawings, models, and various documents for parts, fixtures, and packaging material. In 2015, he interned with BD Pharmaceutical Systems as an Engineer Intern, where he designed a more accurate fixture to align tooling on forming machines to eliminate any unintentional variations in dimensions. This summer he hopes to study abroad for two or three weeks before starting an internship with a large electric utility company. At Iowa State, Patrick is involved in a research project to determine the cause of failure in drive trains. Upon graduation, he plans to pursue a Master’s Degree in Mechanical Engineering and a Master’s Degree in Business Administration. His primary long-term goal is to design and develop clean, environmentally-friendly fuel sources for the generation of electricity. Scouting has been a large part in Patrick’s life. He started out as a little Tiger Cub and worked his way up to Eagle Scout. While a scout, he has explored the country and abroad as well by participating in high adventure camp, National Jamboree, and World Jamboree. He remains active in scouting, as Assistant Scoutmaster for the Ames, Iowa area. Patrick is the son of Charles Keep (Nebraska Public Power District) 42 | COAL TRANSPORTER

Austin Diericx Southern Illinois University | Mining Engineering Austin Diericx of Troy, Illinois, is a senior at Southern Illinois University. In spring 2016 he will graduate from SIU’s Engineering Department with a B.S. in Mining Engineering and a minor in Business and Administration. A Dean’s List student with a 3.6 GPA, Austin has worked under the guidance of Dr. Yoginder Chugh doing research to reduce coal dust. Specifically, he conducted research in micro emulsion technologies which could be applied in coal mines to reduce the amount of fine dust particles entering a person’s respiratory system and causing health issues. Also at SIU, Austin has been an active member of the local SME chapter, Saluki Miners, and is an active member of the Beta Chi chapter of Phi Kappa Tau. In his free time, Austin enjoys playing golf, soccer, and being active. His father is employed by Dynegy in their Environmental Compliance group. Austin is the son of Rick Diericx (Dynegy)

Bailey Wynn Southern Illinois University-Edwardsville | Nursing Bailey Wynn is a 20-year-old Junior in the Bachelor of Science in Nursing (BSN) Program at Southern Illinois University-Edwardsville. Her educational goals include completing her BSN in May 2017 and then completing her Family Nurse Practitioner (FNP) advanced degree. She would like to work in a hospital or clinic while concurrently working on her advanced degree. Bailey was born and raised in Southern Illinois, in an extremely rural and povertystricken area. She would like to give back to the area by working there, providing quality service to an area that desperately needs it. Bailey was valedictorian of her high school graduating class and graduated with over 22 college credit hours already behind her. She was raised in a household that believes in hard work and going the extra mile. She is working to help pay her college expenses and in doing so has gained valuable hands-on experience in two different assisted-living settings. Her time management skills must be excellent as she has maintained a perfect 4.0 GPA through 3 years of college coursework and has been on the Dean’s List every semester of her college career. Bailey has been actively involved in her home church and also the Trailhead Church which she attends while at school. In 2015, she spent two weeks on a mission trip to Uganda. She believes her faith will provide a good foundation for her career in healthcare, helping her make sometimes difficult decisions, and dealing empathically with patients and their families. She is actively involved in the SIUE Student Nurse Association, Campus Crusade for Christ, and the Cougar Fellowship. Bailey is the daughter of Matt & Trudy Wynn (Peabody Energy)

COAL TRANSPORTER | 43

STATS AT A GLANCE Anything but United

On February 9, 2016 the Supreme Court ruled to halt enforcement of the EPA’s Clean Power Plan until after legal challenges are resolved. The 24 states above in green filed the request that the implementation be stayed. The states argued that the new policy is far more ambitious than two earlier EPA air-pollution initiatives that the Supreme Court ultimately ruled were legally flawed. The MATS ruling must have been still fresh in the minds of the justices. In that case the court rules that the EPA had not appropriately considered the cost of compliance yet due to slow pace of litigation, the utilizes had already been forced to comply. It was déjà vu all over again. Gary Varvel Editorial Cartoon used with the permission of Gary Varvel and Creators Syndicate. All rights reserved. 44 | COAL TRANSPORTER

NCTA CALENDAR

OF EVENTS 2016

Summer/Fall 2016 Presentation of NCTA Scholarship Awards: David L. Laffere Scholarship, Three Memberâ&#x20AC;&#x2122;s Children Scholarships September 12-14, 2016 Forty-Second Annual Business Meeting and Conference Grand Hyatt, Denver, Colorado December 30, 2016 Receipt at NCTA office of all re-certification forms for the UMLER Fee Waiver for Calendar Year 2017

January 31, 2016 Payment Due for 2016 Annual Membership Fees

2017

March 9, 2016 Joint Eastern and Western Logistics and Planning Committee Meeting Ameren Power Operations, St. Louis, Missouri

February 10, 2017 Advertising and Editorial Deadline for Issue 1 2017 of the Coal Transporter Magazine

April 10-13, 2016 Spring General Conference Royal Sonesta Hotel, New Orleans, Louisiana

June 12-14, 2017 Operations and Maintenance Conference Eldorado Hotel & Spa, Santa Fe, New Mexico

June 13-15, 2016 Operations and Maintenance Conference Hyatt Regency, Austin, Texas

July 7, 2017 Advertising and Editorial Deadline for Issue 2 2017 of the Coal Transporter Magazine

July 8, 2016 Advertising and Editorial Deadline for Issue 2 2016 of the Coal Transporter Magazine

September 11-13, 2017 Forty-Third Annual Business Meeting and Conference Grand Hyatt, Denver, Colorado

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NCTA / Member Sound-Off

Member Sound-Off This issue’s sound off survey is about the railway enthusiast in all of us. In many respects it’s a chicken vs egg scenario. Do we like trains because we’re in the transportation business or are we in the business because we like trains? Maybe it is a bit of both.

When asked about their train riding habits, the vast majority, 81%, are train riders. Some are daily commuters but a large number, 44%, manage to get in a train ride while on vacation. And some of the best train rides are those you take while actually getting paid, especially since railroaders know how to travel in style.

Train Riding Habits 45% 40% 35% 30% 25% 20% 15%

High Speed Rail

10%

In one of his early State of the Union addresses President Obama declared “Within 25 years, our goal is to give 80 percent of Americans access to high-speed rail.” So to put our borrowed money to the task, an initial $8 billion in Recovery Act grants were earmarked for highspeed intercity passenger rail service. Many states turned down the money because the costs would outweigh the benefits. We asked respondents to weigh in on the viability of the two most talked about corridors in the US, the Northeast Corridor and California (estimated to cost $43 billion). Viability was defined as meaning the number of riders and the revenue generated would be sufficient to justify the investment, taking into account any initial or ongoing subsidy that the respondent deemed appropriate. Overall, the Northeast was thought to be the more viable of the two projects. Are the two most talked about corridors viable for High Speed Rail? 45% Northeast 40%

Commuter heavy rail

Commuter light rail

Occasional train ride around town

Business events

On vacation

Train free the last 5 years

“Folly. The US invested in highway systems. Automobiles are a part of the fabric of this country. Commuter air service has also penetrated the transport market. “ John Mayer, AECI

“Pure folly, in all but the Northeast Corridor right now. To be viable, I believe a separate ROW must be provided (our freight trains are too long and too slow to mix in with TGV-speed trains. Next, several trains must traverse the route each day, or it is just too expensive to run. And, it must be electrified to attain the true high speeds at which the trains must operate to compete with air. Finally, outside of the NE Corridor, the US does not have the population densities required to fill each train to capacity.” Larry Graus, Oglethorpe Power Corporation

California 35% 30%

“Several years ago I rode the bullet trains in Japan. They were very comfortable and efficient. There is no reason they won’t work in the US provided we can get people to park their cars and give them a try.”

25% 20%

Bob Burnham, Burnham Coal, LLC

15% 10%

“It makes sense to cities that have a good local transportation system (don’t depend on cars to get around).”

5% 0%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Some folks were happy to share their opinion of whether high speed rail was wisdom or folly: “Not one has made it on their own, they all require taxpayer support to operate, and it increases over time. They are a joke.” John Nyquist, Minn-Dak Farmers Cooperative

46 | COAL TRANSPORTER

Bob William, NIPSCO

“Really don’t know enough specifics to comment. There are so many variables that it is difficult to answer. I do think done correctly that high speed rail can be effective in certain areas.” Karen Bramley, Tampa Electric Company

Best Train Memories

There were a lot of good train memories many stemming from trips as a child. Maybe the freedom of movement in a train that is such a contrast to being strapped in the car makes riding the train a kid favorite.

“Train was attacked by Indians, who ran up and down the aisle terrorizing passengers. My cousin shot one with a slingshot and a pebble, and we learned that Indian spoke English and used words we were not allowed to repeat! Did I mention this was on the Tweetsie Railroad in Blowing Rock, NC circa 1965?” Marc Flippin, TVA

Others enjoyed those great business trips and excursion trains that thrive because of the beautiful scenery that trip reveals. Without the need to keep your eyes on the road, everyone can enjoy it. Not surprisingly, no one loves the daily commute.

“I was about 10 years old and took a train trip with my Aunt and cousins from Kansas City to Pittsburgh, PA to visit grandparents for the summer. My cousins and I had a great time running around the train and exploring the lounge car (filled with cigarette smoke in those days). I’m sure we were a bother to everybody, but it was so much fun. Second most favorite trip was more recent. My husband and I took the train from Kings Cross Station in London to Edinburgh Scotland in 2013. Amazing scenery and the most relaxing trip I’ve ever been on.

“After spending seven years in the service, I thought I could sleep anywhere. Wrong. Try sleeping in an executive car from Bill, WY to North Platte NE. Passenger service over freight lines is rough business. Would I do it again? OF COURSE. For the people and the rich history that go with the experience.” John Mayer, AECI

“My favorite trip was a ride from SLC to LA with a stop in Las Vegas overnight as a guest of the Union Pacific.” Wallace Taylor, Bowie Resources

Emily Regis, Arizona Electric Power Cooperative, Inc.

“Best experience was our train ride in Canyon City, Colorado beautiful scenery.” Stephanie Houston, Cloud Peak Energy

“1. For entertainment - Silverton to Durango, great scenery. 2. For transportation - Tokyo to Misawa, comfortable and efficient. 3. For adventure - around Mt. Fuji, proved my wife and I could accomplish the trip where we didn’t speak the language. Never saw Mt. Fuji, it was clouded in all day.” Bob Burnham, Burnham Coal, LLC

Photo: Michael Barera

“A cab ride on a Union Pacific 2-8-0 on a branch line freight from my hometown of Columbus, Nebraska to Oconee, Nebraska. I was six years old. Imagine, riding on a real steam locomotive at the age of six! I remember it like it was yesterday, not sixty years ago. Also rode the Eurostar London-Brussels and then a DB ICE 4 to Cologne, Germany a couple of years ago. It’s a thrill when you’re traveling more than three miles a minute!” Larry Graus, Oglethorpe Power Corporation

COAL TRANSPORTER | 47

Reflections / Bob Neff

A Life of Trains, Coal and Energy

48 | COAL TRANSPORTER

BOB NEFF

COAL TRANSPORTER | 49

Reflections / Bob Neff continued

Bob hiking with his son Rob at Yosemite National Park.

As NCTA President from 2008-10, Bob (Top-L) led several of the Board’s Washington DC visits.

ob was born in St. Louis on November 26, 1952, the second child of Robert and Millicent Neff. He attended Bayless School District near the family’s home in south St. Louis County. Bayless was a unique school where elementary, junior high and high school buildings all shared the same campus at one location. It was here where the most important event in Bob’s life occurred, meeting his future wife Linda. Although Bob and Linda started in kindergarten at Bayless the same year, they did not meet each other until 7th grade, and then only due to a misbehaving student. In most of the Bayless junior high classes, the teacher assigned the students seats at desks in alphabetical order. Such was the case in 7th grade English, Bob and Linda’s first class together at Bayless. Linda Boll was in the first row on the left near the back and Bob Neff was at the front of the middle row. However, in the desk behind Linda was one of the school troublemakers who was constantly acting up in class. In frustration one day, the teacher told the troublemaker to switch 50 | COAL TRANSPORTER

desks with Neff so she could keep a better eye on him. Then sitting right behind Linda, Bob and Linda became friends from talking before and after class. However it was sophomore year in high school before they had additional classes together. They started dating in their junior year, and got married six years later after graduating from college. In 2015, they celebrated their 40th wedding anniversary. Bob’s work experience began early, as his father, grandfather and uncle ran a newspaper distribution business. At that time St. Louis had two newspapers, the morning Globe Democrat and the afternoon Post Dispatch. The family business distributed both, which meant getting up at 3 am to deliver the morning newspapers and then working again at 1 pm to get the afternoon papers out. Much like the mail and coal transportation, this activity had to occur regardless of wind, rain, sleet or snow! Bob worked in the family business delivering newspapers throughout grade school and high school, which taught him a

Bob with his wife Linda and daughter Laura on their 40th wedding anniversary, January 18, 2015. valuable work ethic. Working in the middle of the night in all types of weather, there were no holidays and very few excuses for missing work. It was a lesson that would prepare him for future jobs. After high school, Bob attended mechanical engineering classes at Washington University in St. Louis. Bob had always been interested in railroads, and with encouragement from by two professors with railroad backgrounds, entered a co-op program at Missouri Pacific Railroad in St. Louis. Working alternating semesters with college, his first job was a Machinist Helper at a Missouri Pacific locomotive maintenance facility on Chouteau Avenue in 1971. This shop was located about 10 blocks from his future employer on Chouteau Avenue, Ameren. Being a union job, the pay was $3.85 per hour, which seemed like a fortune at the time for a college student since many campus jobs were in the $1.50 to $2.00 per hour range. The workforce at the locomotive shop were almost all nearing retirement age, but were very tolerant of a young college kid with enthusiasm but no experience. They taught Bob how diesel engines and locomotives worked, and soon allowed Bob to do many of the jobs involved. It was the first of many jobs that Bob would have where people would share their knowledge willingly to help him, something for which he is forever grateful. Subsequent semesters were spent in the Mechanical Engineering department at Missouri Pacific’s office building on 13th Street in downtown St. Louis. Everyone in the Mechanical Engineering Department sat at a drafting table in an open room overseen by an office manager and a chief draftsman. Bob would periodically get assigned to make drawings for

modifications to freight cars and locomotives. While he had taken some drafting classes in school, Bob was not particularly fast at drafting. This prompted a daily visit from the chief draftsman, starting with the question “Are you going to retire before you finish this drawing?” One of the more interesting assignments in the Mechanical Engineering Department introduced him to a future employer. In 1973, American Car and Foundry and Missouri Pacific ran a series of joint engineering tests on the stability of freight car trucks. Freight cars with different types of trucks and loading conditions were instrumented to determine dynamic performance while running at 70 mph down the long straight track south of Dupo, Illinois. Bob was assigned to oversee the tests for Missouri Pacific, which lasted for almost a semester. After graduating with his mechanical engineering degree, Bob went to work full-time for Missouri Pacific. Railroad field jobs were high commitment positions in terms of time and dedication. His first job assignment was in North Little Rock, Arkansas, as an Assistant Roadmaster, a busy place with many track issues. Bob was then transferred to San Antonio as Assistant Trainmaster. A Trainmaster and Assistant Trainmaster managed 300 miles of operations and the San Antonio yard. With the Trainmaster working 7 am to 7 pm, Bob worked the 7 pm to 7 am shift with every other weekend off, provided there were no problems like derailments or train delays. With the long hours, everyone on the railroad drank a lot of coffee, a drink which Bob never liked. Shortly after starting in San Antonio, the Division Superintendent stopped by for a

Bob had always been interested in railroads, and with encouragement from by two professors with railroad backgrounds, entered a co-op program at Missouri Pacific Railroad in St. Louis. COAL TRANSPORTER | 51

Reflections / Bob Neff continued

Bob with his grandson Henry watching the trains on Bob’s backyard model railroad. 52 | COAL TRANSPORTER

visit and began pouring coffee for everyone. Bob told him no thanks and that he didn’t drink coffee, but the Superintendent poured him a cup anyway. He then looked Bob in the eye and said “If you’re working for this railroad, you have to drink coffee.” When he left the room, Bob poured the coffee down the drinking fountain, and the subject was never brought up again. After a year in San Antonio, Bob saw an advertisement recruiting engineers for American Car and Foundry (ACF) near his hometown of St. Louis, and applied. Bob became an engineer in the Research and Development Department at ACF in 1978. He spent four years at the company in various engineering positions including R&D, Tank Car Engineering and Product Marketing. While in the R&D department, he worked on designs of new freight car products including freight car trucks, tank car valves, steam heating systems, and tank car structures. Bob was awarded two U.S. patents while working at ACF for railcar components and completed requirements to become a licensed Professional Engineer in the State of Missouri. He also completed his MBA at Southern Illinois University. While at ACF, both of his children were born. His son Rob was born in 1979 and his daughter Laura was born in 1981. Life at home became very busy raising two kids. In 1982, Bob heard through a friend that Union Electric had a position open for a railcar fleet management position. Union Electric had 400 coal cars and planned to increase its fleet size to handle longer moves. Bob applied for the job, and interviewed with Pat Harrington, Fuels Group Manager. Pat, a combustion engineer from Penn State, kept asking questions about coal, of which Bob knew very little. Pat finally asked, “What do you know about coal?” Bob replied that he knew that it was black and that it burned. Pat shook his head, and said “You have a lot to learn,” but he hired Bob anyway. Bob started at Union Electric on June 1, 1982 at their office building on ChouWhat do you teau Avenue, just down the street know about coal?” from the locomotive shop. While Bob worked on the Bob replied that railcar fleet maintenance, he soon began to set up a computerized coal he knew that it management system for the departwas black and ment. In 1978, Bob and his father bought one of the first PCs in kit that it burned. form. Manufactured by Southwest Pat shook his Technical Products, the computer was built by soldering the circuit head, and said boards and wiring the power supply. With the BASIC programming “You have a lot language and floppy disk storage, to learn.” they were able to computerize the billing on his father’s paper distribution business. His father was generating 2200 bills a month by hand, consuming two weeks of evenings, and the computer reduced that time to about three evenings. Because Bob knew several programming languages and was familiar with personal computers, he began automating reports and data in the fuels department at Union Electric, becoming familiar with all

Bob Neff and Mike Mueller worked together at Ameren for 15 years. aspects of fuel management. One of his first assignments was to evaluate a Mobil Coal computer program which predicted the burnability of coals in different boiler types, a challenging assignment for a railcar guy. As in previous jobs, once again Bob found that co-workers would share their knowledge willingly to help him. In 1985, Bob was sitting in his cubicle and Pat Harrington paid him a visit. Pat said “What do you know about natural gas? FERC just passed Order 436 and the gas industry is being deregulated. Union Electric has about 100,000 gas customers and now has the ability to buy gas on the open market. I thought maybe you could find time to look into buying gas.” Bob told Pat that the only thing he knew about gas was that you couldn’t see it, and it had to be transported in a pipeline. Pat shook his head and said “You have a lot to learn.” Pat retired soon after, and Udo Heinze became the fuel department manager. Unlike railroad deregulation under the Staggers Act in 1980, which was a partial deregulation aimed at strengthening railroads, FERC Orders 436 in 1985 and 636 in 1992 totally unbundled the gas distribution system. The amount of work involved in managing Union Electric’s gas networks grew from Bob working part-time to four full-time positions. The gas group was moved away from the coal group in 1993, and Bob worked only in the gas side of the business at Union Electric from 1993 to 1999. In 1993, under Bob’s guidance, Union Electric became one of the first U.S. utilities to use gas futures to hedge gas commodity costs. These were the days before strict controls brought on by Enron and Sarbanes Oxley, and the resulting corporate risk management committees. But the gas group worked with Union Electric’s Treasury Department to help set working controls that allowed the Treasurer to sleep at night, and the futures proved effective in reducing gas price risk. In 2000, the coal and gas groups at the recently formed Ameren Corporation were reunited under long-time coal expert and NCTA member Mike Mueller. Bob returned to manage the coal group in 2000, and feels fortunate to have worked there with Mike for 15 of his 32 years at Union Electric/Ameren. With Ameren’s acquisitions of CIPS and CILCO generating facilities, and their subsequent conversion to PRB coal, Ameren’s coal use grew from approximately 10 million tons to 40 million tons, with their railcar fleet growing to 5000 cars.

Ameren’s goal for its coal supply became access to competing modes of transportation and expanding its ability to use competing coal basins. Ameren moved aggressively to increase its capability to handle more coal per train, expanding its fleet with aluminum 286,000 capable cars, enlarging unloading loops at power plants to handle 150 car trains, and increasing coal take-away capacity to speed unloading. Ameren incorporated three short lines to provide competitive railroad access, built out new spurs to competing railroads at three plants, and added barge facilities at three additional plants. While most plants were converted to PRB coal, the addition of scrubbers at three plants provided additional flexibility in burning Illinois coal. While Mike Mueller and Bob shared their interest in the coal and energy business, they enjoyed more sharing lunches at Taco Bell followed by custard at Ted Drewes, a St. Louis institution serving a rich soft serve ice cream made richer with the addition of honey and eggs. (photo) In 2007, NCTA President Bryan Bashore asked Bob to fill a vacancy in the Vice President position of the NCTA. Bob told Bryan that he would be happy to help as long as Bryan didn’t have any plans to leave soon. However six months later, Bryan retired from Peabody, and Bob assumed the President position at NCTA. While Bob was concerned that he didn’t have enough experience with the governing process of the NCTA, he quickly found out that Tom and Pat were very capable and easy to work with, making his time at NCTA one

COAL TRANSPORTER | 53

Reflections / Bob Neff continued of the best experiences of his career. Bob believes that “NCTA members share a common bond -their congeniality and enthusiasm for what they do along with being just plain good people makes the organization great.” Bob was also fortunate to work with dedicated people who approached their jobs with enthusiasm at Ameren, particularly in the Coal Supply group. In 2013, Ameren sponsored a Relay for Life for the American Cancer Society. The Coal Delivery group, led by Bill Rogers, had seen an article about a barge company that painted a barge pink for Breast Cancer Awareness, and decided that Ameren should paint a railcar pink to show Ameren’s support. Kurt Stroer came up with a design for a pink railcar with a pink ribbon and the slogan “On Track for The Cure” painted on the side. Shortly after it was painted, the car was teamed up with Union Pacific’s pink

A stick frame recumbent bike was a retirement gift for Bob from his son and daughter.

Bob retired from Ameren in March of 2015. While he misses seeing many of his coworkers and people in the industry on a regular basis, he and Linda have been able to travel and accomplish long-postponed projects. With a son in California, and a daughter/son-in-law/grandson in Kansas City, there is regular travel to those locations. Trips to California have allowed visits to nearby national parks, particularly Yosemite where their son Rob accompanied them on day hikes around the park. Trips to Kansas City are shorter and more frequent to get a Grandma and Grandpa fix with their grandson Henry. Bob and Linda have also been able to do some overseas travel since retiring, visiting England and France, China, as well as US locations including Boston and Florida. In November, Bob and Linda became members of the 50 state club by visiting Fargo, North Dakota.

Bob with his solar yard lighting system which frequently requires coal backup.

ribbon locomotive hauling coal from the Powder River Basin to Labadie plant. The following year, the railcar group teamed up with the Ameren Veterans organization to paint another hopper car in honor of the Ameren veterans and other veterans who served their country. (photo) This railcar was painted red, white and blue, and this car also is currently hauling coal from the Powder River Basin to Ameren plants. Both the pink car and the red, white and blue car were painted with labor donated by Metro East Industries using paint and materials donated from suppliers, making the cars a true industry effort. One of the constants throughout Bob’s career has been change. Dealing in commodity markets, the only certainty is change, most of it unpredicted and many times totally unforeseen by the industry itself. From predictions of global cooling in the 1970s, natural gas shortages in the 1980s, peak oil and ever increasing coal demand in the 2000’s, changing to today’s situation of a world awash in cheap hydrocarbon fuels in a political climate that views carbon-based fuels as the cause for the coming end of civilization. 54 | COAL TRANSPORTER

Both Bob and Linda are avid bicycle riders, having ridden many of the major bike trails in the country including the Katy Trail (MO), Creeper Trail (VA), Greenbrier Trail (WVA), John Wayne Trail (WA), Hiawatha Trail (ID), Burke Gilman Trail (WA), C&O Canal Trail (MD), Mickelson Trail (SD), Pinellas Trail (FL), Coeur d’Alene Trail (ID), Great Allegheny Passage (MD). For his retirement, Bob’s son and daughter gave him a recumbent bike (photo) to continue his riding. Bob’s hobbies include photography, building model trains, playing bass guitar, and flying drones. He recently installed some solar panels in his backyard to power a landscape lighting system. The solar panels charge a battery which provides power to 12V LED lights through a photocell switch. Bob has found that the limitations on solar power are all too real. If the sun doesn’t shine for two days, the battery is depleted and the system doesn’t produce any light. In the St. Louis winter, it is not uncommon to have three or four days of clouds, so there are many days without lights. Fortunately, Bob put a two way switch on the input circuit, one way labeled S for solar power from the battery, the other labeled C for coal power from Ameren. s

The View from the Caboose

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 By Pete Moss & Ann Thrawsite

ANN: Hey Pete. Did you hear that the Supreme Court put a stay on the implementation of the EPA’s so called clean power plan? PETE: Yeah, I did hear that and I’m happy about it. But I think every time the states have to sue the Federal government to keep it from running amok, the taxpayers end up being double losers. It’s like suing yourself. ANN: I think the Supreme Court’s recent look at the MATS rule perfectly illustrated what was happening. The EPA could continue to do anything it wanted as long as the compliance deadlines outpaced the court’s hearing schedule. If you force compliance before the final appeal is exhausted, the legality of anything becomes a moot point. PETE: Fool me once, shame on you; fool me twice, shame on me. Their timing was good as, I was about to take matters into my own hands. ANN: What do you mean by that or dare I even ask? PETE: Well you know the NCTA is having its Spring Conference in New Orleans this year so I planned on popping by Marie Laveau’s House of Voodoo. It’s only four blocks straight down Bourbon Street from the hotel. Back in the 1800s, Marie Laveau was an oracle who performed numerous exorcisms and voodoo rituals. She was one of the most prominent figures in New Orleans and everyone called her the Voodoo Queen. ANN: At the risk of having a doll with my face on it stuck with pins, what the heck are you thinking? PETE: Oh Ann, I see you have been watching too many Hollywood horror movies. Most practitioners of Voodoo don’t use pins in Voodoo dolls and when pins are used, they are used as focusing tools for healing and other positive purposes. Seven different colors are used and they all serve a specific purpose: yellow – success; white – positive; red – power; purple – spirituality; green – money; blue – love; black – repelling negative energy. ANN: I did not realize that. My bad.

PETE: Green is clearly my favorite since it er… reminds me of the Emerald Isle. But I think the EPA and the country as a whole could use a big dose of black to dispel all the negative energy around coal. ANN: Well hopefully as an industry we won’t have to resort to using Voodoo. That is why the conference is loaded with substance with experts addressing energy supply and demand, energy policy, environmental regulations, and the details on the state of coal transportation. All of this along with the first meeting of the Waterborne Transportation Committee. PETE: Okay, I am backing down on the trickery. I was just doing what I can for the cause. ANN: I am looking forward to going to New Orleans. In addition to the conference there is a lot going on. During the weekend leading into the conference, the annual French Quarter Festival will feature over 1,700 world class, local musicians. Talk about dancing in the streets. Then there is the trip to the World War II museum with NCTA providing transportation. Everyone who has been there says it is “fabulous.” It is the #1 attraction in New Orleans, a city chock full of attractions. PETE: I also heard some folks are going to volunteer at the Villalobos Rescue Center. I’m sure you’ve seen Pit Bulls & Parolees on Animal Planet. That’s the place. ANN: Well actually I haven’t seen it, but I love dogs. They’re all cute and cuddly with big soulful eyes. They’re even cute when they slobber. PETE: (blushing) Ah shucks, Ann. I love you too. ANN: Down boy or I’ll have to bop you on the nose with this newspaper. s

Have something to say to Pete? Send comments or questions to pete@nationalcoaltransportation.org COAL TRANSPORTER | 55

NCTA Membership List A. Stucki Company AKJ | NALCO Alliant Energy Corporate Services Alltranstek LLC Alpha Coal Sales Co., LLC Alpha Products, 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 Aventics Basin Electric Power Cooperative Blackhawk Mining, LLC 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. Consumers Energy Company Cooper Consolidated CPS Energy Crown Products

CSX Coal & Ore Terminals Dairyland Power Cooperative David J. Joseph Company Detroit Edison Duke Energy Dynegy, Inc. Ecofab Australasia Empire District Electric Company Entergy Services, Inc. Exponent, Inc. First Union Rail FirstEnergy Florida Power & Light Company FreightCar America GATX Global One Transport, Inc. Grand River Dam Authority Great River Energy Greenbrier Companies Hall St. Coal Terminal Hendricks River Logistics Hi Crush Partners LP IHS - Energy Publishing, LLC iIRX Impala Terminals Burnside, LLC JPMorgan Kansas City Power & Light KCBX Terminals Co./ C. Reiss Coal Co. Kiewit Mining Group Inc. Kinder Morgan Terminals Lexair, Inc. LG&E and KU Energy

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

Romeo RIM RungePincockMinarco Salt River Project Sandy Creek Energy Station Seminole Electric Cooperative, Inc. ShipXpress, Inc. SMBC Rail Services LLC Southern Company Operations Standard Steel Strategic Rail Systems Strato, Inc. T Parker Host Talen Energy Tampa Electric Company Tennessee Valley Authority Three Rivers Marine & Rail Terminals Timken Company Transportation Services Inc. TrinityRail Tri-State G&T Association TUCO/NexGen Coal Services Tucson Electric Power Company Wabtec Corporation WEC Energy Group Westar Energy Western Farmers Electric Western Fuels Association, Inc. Westmoreland Coal Sales Company WestRail Xcel Energy Xcoal Energy & Resources

Index to Advertisers Aero Transportation Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Amsted Rail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Appalachian Railcar Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Aventics Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Cloud Peak Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Crown Products & Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Freight Car America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Back Cover GKG Law, P.C.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Lexair, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front Cover

56 | COAL TRANSPORTER

Lighthouse Resources, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 MinTech Enterprises. . . . . . . . . . . . . . . . . . . . . . . . . . . . Outside Back Cover NexGen Coal Services, Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 PRB Coal Userâ&#x20AC;&#x2122;s Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Progess Rail Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Slover & Loftus LLP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 The Greenbrier Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Western Fuels Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Xcoal Energy & Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

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