NCTA Issue 2, 2017 by National Coal Transportation Association

ISSUE 2 | 2017

Fighting in the Trenches

for Coal Fueled Power

Car Storage

Checklist Reflections: JERRY WESS

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Contents 14

36 DEPARTMENTS

Know Your Board: Meri Sandlin

Battle for Coal-fueled Power must be Fought in the Trenches

Message from the NCTA President – Kent Smith

Message from the NCTA Executive Director – Tom Canter

NCTA Membership Benefits

NCTA Committee Updates

Members Sound Off

Calendar of Events

NCTA Welcomes a New Member

Membership List

Car Storage Checklist

Connecting RETAC and NCTA

National Coal Transportation Association

STB Update

4 W. Meadow Lark Lane Suite 100 Littleton, CO 80127-5718 Phone: 303-979-2798 Fax: 303-973-1848 www.nationalcoaltransportation.org

Coal’s Future is Bright and Here’s Why

Editor: Pat Scherzinger Phone: 303-993-7172 scherzinger@ nationalcoaltransportation.org Production By: Suckerpunch Creative Inc. info@suckerpunch.ca www.suckerpunch.ca ©2017 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.

FEATURES

PUBLISHED BY:

ISSUE 2 | 2017

Millennium Terminal Update

Reflections: Jerry Wess

CONFERENCES 8

Forty-Third Annual Business Meeting & Conference

Index to Advertisers

Grand Hyatt, Denver, Colorado September 18-20, 2017

View from the Caboose

Spring General Conference Recap

Loews Ventana Canyon, Tucson, Arizona April 10-12, 2017

Operations & Maintenance Conference Wrap-Up

Eldorado, Santa Fe, New Mexico June 12-14, 2017

COAL TRANSPORTER | 1

President’s Report / Kent Smith

A Message from NCTA President, Kent Smith

THE COAL INDUSTRY’S BEST COMMODITY

’m not sure how it happened so quickly, but I turned sixty this year. This year also marks my fortieth year in the coal industry. I can vividly remember my first day as a twenty year-old Cost Clerk at a mine in southern West Virginia. Then, I thought people over forty were ancient. Now I see twenty year olds and call them “kids”. I’ve occasionally wondered what a career in another industry would have been like. Since I couldn’t hit a curve ball or dance well enough to be a Motown back-up singer I did what many young people in my state did. I started working in the coal industry. I don’t regret one minute of it. There are many reasons for this but, by far, the most significant is the people I’ve encountered. The people in this industry have to be the most incredible in the world. As you may expect, I’ve encountered a few more “colorful” people along the way. Among them were: • Brownie; a MacGyver-like maintenance guy who fabricated things from almost anything. I jokingly asked him once if he visited junk yards while on vacation. He very seriously responded: “Yeah, my wife hates it when I do that”. • Ray; an early boss of mine who was very philosophical about everything from ordering a meal to the color of grass. He died of cancer while in his forties. Ironically, I still quote him often. • An eccentric foreman who moonlighted as a taxidermist. He would bring in bizarre hybrid “creations” of various animals. • An engineer, about whom everyone had a story. The best were how he accidently set his hunting companion’s truck on fire or when a live pig escaped from the back of his truck. • A coal buyer, who is also a beekeeper, describing the looks he received at a traffic light when a swarm escaped from a box in his backseat. Working in this industry, you occasionally run across “philosophers” with interesting ways of describing things. A river flowing fast after flooding is “hotter than a burnt boot”. A stockpile that hasn’t seen much action may have been there since “Moby Dick was a minnow”. The industry also tends to be small. People who leave one company tend to show up later somewhere else within the 2 | COAL TRANSPORTER

industry. I’ve ran across former West Virginia colleagues years later in Vancouver, Houston, and New Orleans among other places. Almost without exception, I’ve found people in this industry to be good, caring, hard-working, and decent people. People you can trust. People who care when something goes right or wrong in your life. People that know the names of your kids and are genuinely interested in them. People who conduct business in an honorable way. People that thrive on figuring things out. People you look forward to spending your workday with. Pat Scherzinger, the NCTA’s Communication Director, is one of those people. As many of you know, Pat is leaving the NCTA at the end of this year. Pat has been involved with the organization in some fashion for 26 years, attending her first conference in 1991. She joined the NCTA Board of Directors in 1994, while managing the fuel supply group for Portland General Electric (PGE). After leaving PGE in 2001, Pat began working as a consultant for the organization. She moved to Denver several years ago. Most

Almost without exception, I’ve found people in this industry to be good, caring, hard-working, and decent people. People you can trust. recently Pat has been Communications Director, tirelessly managing the website, this magazine, and a host of other things. At conference events, Pat often works the crowd with her camera. Her own smile being so contagious, her subjects can’t help but return it. A current board member describes her as the most staunch advocate for the coal and rail industry she’s ever known. Her son, Joe, also lives in the Denver area, and her daughter Kate, lives in Japan. You don’t need to have worked in this industry as long as me to know there can be periods of great stress, uncertainty, and frustration. The last few years has been an example of that. During those times, what is it that brings you back to work the next day? To many of us, it’s the great people. People like Pat. They’re our industry’s greatest commodity. s Kent Smith President, NCTA

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Executive Director’s Message / Tom Canter

A Message from NCTA’s Executive Director, Tom Canter

here is a point to all of the legal bloviating below; namely, we cannot simply rely on the White House to protect the interests of affordable and reliable energy as a basis for a strong economy. We must stay involved in our local organizations and politics as we advocate for a strong electric grid. You need to be an advocate and watch your local governments and associated entities very carefully. We plan to address some of these issues at the NCTA Fall Conference in Denver. The coal industry is in the vortex of a conflict of wills and actions arising between national energy and environmental policies and the opposing policies by states, local and regional political entities. The most recent manifestations of this conflict are the ongoing actions and proclamations by some states and municipalities that they will abide by the so-called Paris Agreement after the Federal Executive Branch has stated a withdrawal from the agreement with no obligation for specific compliance. The Senate never gave advise and consent for the Kyoto Agreement or for the Paris Agreement. So, neither agreement met the standard of a constitutionally-approved treaty following consent of two-thirds of the U.S. Senate. Furthermore, Presidents Clinton and Obama never submitted either proposed agreement or treaty for consent knowing they would not pass with the necessary two-thirds vote. The question is whether the lesser governmental entities have the authority to advocate more CO2 restrictions on power plants and internal combustion engines than exist under federal law? Enter discussion of the Supremacy Clause.

The Supremacy Clause

The United States Constitution clearly states that laws enacted by Congress within the authority allowed by or granted to Congress are the supreme law of the land and may preempt or preclude action by the states and inferior jurisdictions. The Supremacy Clause: “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding”. U.S. Const., Article VI, Clause 2

On its face, the Supremacy Clause would seem to clarify that the laws of the national government acting through Congress precludes and disallows any dissonant legislative or executive actions by inferior governmental entities. Not so fast. Of course, federal policies on involuntary servitude, segregation, voting rights, interstate commerce, and many other examples, have overridden state and local policies that opposed the will of Congress or were deemed unconstitutional. 4 | COAL TRANSPORTER

This supremacy of federalism has been affirmed by the Supreme Court with many decisions over decades. There are limitations. Indeed, the Constitution is a document of limitations with a clear separation of powers that has been delegated to the federal government by the people. The Constitution was designed to prevent tyranny by government by only allowing sovereign power to the people and maintaining a separation of powers by instituting three branches of government with specific duties and powers. Unfortunately, this has been eroded over the last century with Congress allowing the Executive Branch to legislate through bureaucratic regulations, and the Supreme Court has usurped the power to legislate from the bench. This is how we have the “Clean Power Plan” and CO2 classified as a criteria pollutant without Congressional approval. The people suffer from federal overreach. Now enter the Tenth Amendment to the Constitution and the ensuing arguments for states’ rights. “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people”. U.S. Const., Amendment X

It is a keystone of federalism envisioned in the Constitution and detailed by amendment that certain rights and responsibilities are reserved for the States. Each state has the “police”

powers necessary to provide for the protection and welfare of its citizens. I would argue that these police powers are the seldom discussed fourth separation of powers. This limited state sovereignty is a two-edged sword allowing for states to stand up and sue the EPA over the Clean Power Plan or, conversely, loudly proclaim that their state or city will implement the Paris Agreement. The question in the second paragraph is answered in the affirmative for any constitutional action by states that is not preempted by the Congress of the United States. The Constitution allows the states to set policy within their jurisdiction, unless such policy conflicts with federal law or the U.S. Constitution. The last federal election has consequences and the environmental activists have lost their capability to sue and settle with EPA, and to benefit from regulations and executive actions that they drafted. Nevertheless, they are true believers, and their opposition to the coal industry continues at a frenetic pace. There is a wide-open window for action at the local and state level. So, politics and ideology enter the fray. The anti-coal activists are well-funded and are lobbying and organizing at the local and state level to continue the “war on coal”. There was never a truce and activism has clearly moved to the local level. Activists are loud and outspoken at city council meetings, public service commission hearings, shareholder meetings, and are holding planned public demonstrations. I am finished teaching and preaching for this issue. Have a safe day producing energy and wealth for the good people of North America. s

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Know Your Board / Meri Sandlin

Know Your Board:

Meri Sandlin

CEO & General Manager Western Fuels Association

“The coal industry consists of a very small group of wonderful people that have become my very best friends.”

Meri and Mike at the summit of Mt. Evans, one of Colorado’s many 14’ers, July 2016 6 | COAL TRANSPORTER

eri Sandlin is the CEO & General Manager of Western Fuels Association (WFA) headquartered in Westminster, Colorado. In addition to operating the Dry Fork Mine in the Powder River Basin, WFA also has a satellite office in Gillette, Wyoming and a short-line railroad operation in Pruitt, New Mexico. WFA is a not-for-profit cooperative that supplies coal and transportation services to consumer-owned electric utilities throughout the Great Plains, Rocky Mountain, and Southwest regions of the US. WFA services assist with the generation of an estimated 4,400 megawatts of electricity, enough to supply the electric needs of over 3 million households. The sales of coal from WFA related entities are primarily to member rural cooperatives and municipal owned utilities. WFA members include Basin Electric Power Cooperative, Tri-State Generation and Transmission, Sunflower Electric, Kansas City Board of Public Utilities, Sikeston Municipal Board of Municipal Utilities and Southern Minnesota Power Agency. In total, WFA supplies 15-20 million tons of coal and transportation services to its members.

The industry has been challenging, with more to come. Meri is hopeful that a study to re-evaluate the grid reliability will result in an equitable method of an “all-of-the-above” fuel resource that will end the early retirement of coal fired plants and stranded investments while improving grid reliability. Meri has an Associate of Science degree in Commercial Art (of all things), a Bachelor of Science degree in Accounting from Regis University, a Certified Management Accountant certification from the Institute of Management Accounts and an MBA from Tulane. Despite her degrees Meri believes, “With 25 years in the industry, none of this matters; the coal industry is very much a relationship business and requires a significant amount of industry specific knowledge to provide adequate service to our members. I am fortunate to work with several suppliers in different regions, railcar manufacturers, vendors, railcar leasing companies, finance companies, etc. every day. The coal industry consists of a very small group of wonderful people that have become my very best friends.”

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Meri, Mike, and their dog Emmy Prior to joining WFA, Meri worked in the Powder River Basin mines. In 1992, she moved to Gillette, Wyoming thinking that the gig there would last 6-9 months. She signed up with a temp agency and was sent to Buckskin Mine, to work in accounts payable for 3 days. When she arrived, the job was actually in the maintenance department, assisting with the development of a new maintenance tracking system. “When they told me I could wear jeans to work, I was sold!” She had the time of her life on this project, and the “temporary” position eventually developed into 7 years of working in maintenance and accounting. She was fortunate to be involved in the development of the North Rochelle Mine. In 2001, she took a position at the Cordero Rojo Mine working in transportation and customer service; this was a real eye opener and gave her the opportunity to cover all sides of the mining business. She started attending NCTA meetings and was fortunate to learn about all phases of the coal industry from a variety of experts over the years. In 2005, she was offered a position at the Dry Fork Mine, a WFA affiliate, and the rest is history. She moved back into transportation as a shipper and found it to be a whole different experience. Meri joined the NCTA Board of Directors in 2015. In 2012, Meri married her high school sweetheart, Mike Pomeroy. They live in the Denver area, buying ugly houses and fixing them up. Since moving to Denver six years ago, they have moved five times. They have now sold all but one Colorado property and purchased one near Story, Wyoming, where they plan to eventually settle down. They enjoy living near the mountains with access to public lands in the pristine wilderness in Wyoming where they can hike, bike, ride 4 wheelers, camp, fish, hunt, snow shoe, and ski whenever they want. Meri’s ultimate career goal in the coal industry has been to do her best to add value to the organization while trying to facilitate a positive atmosphere for those around her. She hopes to pass on her experiences to others along the way. Meri feels fortunate to have a great staff of professionals that provide exceptional service to WFA’s members. s C

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NCTA 2017 Fall Meeting & Conference / Preview

NCTA 2017

Fall Conference Grand Hyatt, Denver, Colorado | September 18-20, 2017

he coal industry has turned a corner with actionable relief on the regulatory front, renunciation of the moratorium on federal coal leases, the lifting of the Stream Protection Rule, withdrawal from the Paris Climate Agreement, and Energy Secretary Perry’s request for a grid reliability study. More common sense relief and direction is expected. NCTA offers you a world class meeting as well as the networking opportunities that keep you in touch with your customers, provide business leads, learn what is new and to tap and share expertise. Speakers will address timely subjects of interest to the entire coal industry. Presenters from coal producers, railroads, electric utilities, the natural gas industry, STB, a coal market analyst, and views from the, “Hill,” are all part of the agenda. With all the EPA changes, we look forward to presentations on goals of the new administration and the outlook from the Department of Energy. The election of President Trump was a surprise to some and has brought about a reversal of many of the past administration’s policies and executive orders. A panel will explore the relationship between states/municipalities vs. the Federal government and the interplay under the Supremacy Clause. Please check the NCTA web site for updated information and online registration.

REGISTRATION

Registration is required for each attendee of the NCTA Annual Meeting and Conference. The registration fee is $600.00 for

8 | COAL TRANSPORTER

those representing a NCTA member company and $800.00 for all other attendees. The registration fee includes access to presentation materials; entry to all sessions; the receptions on Monday and Tuesday evenings; continental breakfast on Tuesday and Wednesday and all refreshment breaks. The Fall Sponsorship Program provides a wide variety of sponsorship options. We appreciate your support and participation in NCTA and look forward to welcoming you to Denver!

ACCOMMODATIONS

NCTA is returning to the Grand Hyatt Denver Downtown. It is more convenient than ever to get to the Hyatt now that the train runs directly from Denver International Airport to Union Station. From there grab the free bus down the 16th Street Mall to get to the hotel. The Grand Hyatt has 516 elegant guestrooms featuring free internet access, 42-inch flat-screen TVs, coffeemakers and rainfall showerheads. A recipient of the AAA Four Diamond Award, the Grand Hyatt is just two blocks from the 16th Street Mall. One of the most stunning features of the hotel is the 38th floor Pinnacle Club where we will be holding our networking receptions. It offers panoramic views of the Rocky Mountains, Mile High Stadium, and the downtown area. Dining options at the Hyatt include a brewpub serving regional cuisine, a fireside bar and a Starbucks. The 4th-floor fitness center has an indoor heated pool and the rooftop hold both a tennis court and a running track. The Grand Hyatt is located at 1750 Welton Street, Denver, Colorado, 80202.

THINGS TO DO AND SEE IN DENVER

Plan a customer event that will not be soon forgotten. We are fortunate this year to have two sporting events prior to the Fall Conference. Both the Broncos and the Colorado Rockies will be playing on Sunday afternoon, September 17, 2017. Head on down to Coors field for the opening pitch at 1:10pm. The Rockies will be playing the San Diego Padres. The field has added a new way to enjoy the game, The Rooftop. It is a 38,000 square foot destination constructed in the Upper Right field deck, providing stunning panoramic views of Downtown Denver and the Front Range. Tavern Ballpark, CHUBurger Colorado Craft Casual Grill, and Jack Daniel’s Terrace Bar are three premium bar/eateries featured in this twotiered area. Fans will also enjoy an urban garden setting, VIP Cabanas, numerous televisions and live pregame entertainment. The Rooftop offers 8 tickets for $96.00. Each ticket includes a $6.00 concession credit. If peanuts and crackers jacks are not your thing, get ready for some football! The Denver Broncos face off against the Dallas Cowboys for a Sunday afternoon showdown at Sports Authority Field at Mile High. Kickoff is at 2:25pm. s

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WEDNESDAY, SEPTEMBER 20 8:00am – 11:30am General Session

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

CLASSES OF MEMBERSHIP Voting Members:

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

Associate Members:

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

Honorary Individual Members:

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

MEMBERSHIP BENEFITS Your company may belong to more industry associations than just NCTA, but no other association provides the unique combination of education and real world results that come from NCTA membership. The financial impact associated with the procurement and delivery of coal demands this focus. NCTA maintains a high level of national prominence and credibility by participating in hearings, workshops, and symposiums, coordinating with ad hoc coalitions, providing resource material for governmental agencies, negotiating and educating on issues of general membership concern with carriers. 10 | COAL TRANSPORTER

Conferences with Character

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

Logistics and Planning Subcommittees

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

Operations & Maintenance Subcommittee

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

Waterborne Transportation Committee

The Waterborne Transportation Committee is the NCTAâ&#x20AC;&#x2122;s newest working group. It focuses on the coal industryâ&#x20AC;&#x2122;s unique logistical, regulatory, and infrastructure needs when moving coal by water - the Great Lakes, rivers, terminals, barge capacity, ocean shipping, rail to water logistics, and much more.

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

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

Communications

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

Annual Dues

The annual dues for membership in NCTA are $1,850 for Voting Members and $1,650 for Associate Members payable in January of each year.

Application for Membership

All entities or persons desiring membership in the association should apply using the online application or contacting the NCTA for a membership application. The application will include the name, principal business activity and business address of the applicant and the full contact information for the applicant’s proposed Designated Representative. Application forms, along with payment of the annual dues, should be returned to the Executive Director of the Association. The Board of Directors shall approve or disapprove all applications for membership and shall make a determination as to the class of membership into which the applicant shall be admitted. s COAL TRANSPORTER | 11

Commentary / Battle for Coal-fueled Power

Battle for

By Randy Eminger, Executive Director of the Energy Policy Network

uffering a major blow at the federal level, with the election of Donald Trump, it comes as no surprise that many anti-coal groups, like the Sierra Club’s Beyond Coal Campaign have shifted major resources toward state and local initiatives. Mary Anne Hitt, executive director of the Beyond Coal Campaign made the following statement just weeks after the Trump was sworn into office. “The strength of our campaign has been working with states and cities and utility commissions, so that every time there is a decision made about whether to invest in a coal plant or not, we are there to make the case that renewable energy is cheaper, and investing in coal is a bad bet. We’re going to double down on that.” Bruce Nilles, senior director at Beyond Coal echoed the sentiment when he stated “The Sierra Club is set up for moments like this. We’re doing work in 45 states and the opportunity around the transition from fossil fuels to clean energy offers the opportunity to talk about climate change.” The fact that the Sierra Club is operating in 45 states is not surprising, but what is a surprise is the funding

12 | COAL TRANSPORTER

Coal-fueled Power must be

Fought in the Trenches and engagement level that has taken place over the past 6 months. Since inauguration day, the Sierra Club has reported an increase of 300,000 members and millions of dollars in first time donors. These small contributors pale in the comparison of major donors like former New York Mayor Michael Bloomberg. Not only has Bloomberg contributed millions to the Beyond Coal campaign, he recently funded an anti-coal motion picture ‘From the Ashes’ that premiered in theaters and the National Geographic channel on June 25th. In addition to its public relations campaign, Beyond Coal is employing legal teams to fight against coal in the courts. A Sierra Club official estimated that the group was filing a legal appeal roughly every three days. There are also a number of spinoffs groups, such as ‘As You Sow’, that target the boardroom in efforts to eliminate coal. The ‘As You Sow’ organization has been active in the shareholder meetings of major electric utilities that use coal (Southern Company, FirstEnergy, Ameren, Entergy, Duke Energy, NRG and Dominion). The mission of the organization is to get the utilities to commit to the Paris Agreement of limiting global warming to a maximum of 2 degrees Celsius. With public pension funds investing heavily in major electric utilities, the

‘As You Sow’ organization in some states , especially on the West Coast and in New England, have a natural ally.

Fighting Fire with Fire

The Energy Policy Network was created specifically to combat these local and state anti-coal campaigns. Although we have a small fraction of the funding and staff of organizations such as Sierra Club’s Beyond Coal Campaign, EPN has proven itself effective. The cornerstone of its success is the ability to build broad-based coalitions. A prime example is the current battle taking place in Arkansas. Two of the nation’s largest coal-fueled power plants (White Bluff and Independence Station) are under attack by Beyond Coal and several other environmental groups. The environmental groups have filed suit calling for the speedy enforcement of an Obama era EPA Federal Implementation Plan (FIP). The EPA FIP mandates the addition of scrubbers or early closure of the two plants based on Regional Haze regulations. EPN brought together a coalition consisting of the Arkansas Electricity Consumers, Arkansas Gas Consumers, Arkansas Steel Industry, PRB Coal Producers, and PRB Coal Associations. The coalition (Ark. Affordable Energy Coalition) works together to provide legal representation, expert testimony,

economic research, and public relations. The AAEC is aligned with the State Attorney General’s office which also opposes the unwarranted mandates. Although the legal battle over these two coal-fueled plants started in August 2016, the AAEC has been effective in promoting a ‘stay’ of the EPA’s FIP and the Sierra Club lawsuit. The ‘stay’ is to give time for the Arkansas Dept. of Environmental Quality to summit a new State Implementation Plan. Having a broad-based coalition of consumers, industry, and suppliers provides a powerful voice in the process. The EPN has engaged in similar endeavors in other coal-consuming states (Nebraska, Oklahoma, Texas). The EPN was created in early 2015 by former Peabody executive Kelly Mader. And being a relatively new organization, it continues to grow. Our goal is to eventually fight in the trenches of every PRB coal-consuming state. Feel free to visit our website at www.energypolicynetwork.org. s Randy Eminger is the Executive Director of the Energy Policy Network. The Energy Policy Network represents low-cost, reliable, and environmentally compatible

The 1,480-megawatt White Bluff Plant near Redfield, Arkansas. electricity from coal. His responsibilities included developing policy positions, forming coalitions, overseeing research and conducting outreach to state governments. Over the past decade, Randy severed as the South Region Vice President for the American Coalition for Clean Coal Electricity. He has also served as an officer and on the boards of

TH_CoalTransporter_022011:Layout 1 2/17/2011 2:40 PM Page 1

numerous regional and state energy associations, including the Southern States Energy Board, the Center for Legislative Energy and Environmental Research, Balanced Energy Arkansas, and the Clean Carbon Technology Foundation of Texas. He received his college degree at Eastern New Mexico University. Randy resides in Austin, Texas.

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COAL TRANSPORTER | 13

2017 Spring Conference / Review

NCTA 2017 Spring Conference Loews Ventana Canyon Resort, Tucson, Arizona | April 10-12, 2017

he 2017 Spring Conference was held at Loews Ventana Canyon Resort, nested in the foothills of the Catalina Mountains in Tucson, Arizona. The conference had a top caliber agenda and was graced with the perfect weather so often found in April in Tucson. Two things stood out about Ventana Canyon. First, the food was amazing. Those who arrived in time for the Blues, Brews & BBQ Brunch were astonished at the variety of deliciousness offered. Second, the golf course was impeccable. Unlike many desert courses where one worries that a rattlesnake is slithering behind every bush, this course was lush and green from every tee box to every pin. The conference opened with Alan Shaw, Executive Vice President & Chief Marketing Officer at Norfolk Southern who expounded on the components that make up the partnership between coal and the NS. The Wednesday morning Keynote Address was given by John W. Eaves, Chief Executive Officer of Arch Coal, Inc. His leadership through a difficult financial period for many coal producers has given new life to his organization. It is tough now to even remember the days when politics wasn’t a part of the NCTA’s Spring agenda. Mike Nasi, Partner at Jackson, Walker, LLP weighed in on the new administration, and the fact that a ceasefire in the war on coal is in the

offing. Mike Blank, Director of State Government Relations for Peabody emphasized the need to act locally on behalf of coal. Dr. Karen Obenshain, Senior Director Fuels, Technology and Commercial Policy at the Edison Electric Institute, discussed the future of coal as a generation fuel from the IOU perspective. On the technology front, Ian Yeates was on hand to outline the Boundary Dam Carbon Capture Project and Jason Begger discussed the Wyoming Infrastructure Authority’s Integrated Test Center and the XPrize contest. Waterborne Transportation was represented on the agenda by Finn Host, part of the management team at T. Parker Host and Wendy Hutchinson, VP Public Affairs of Millennium Bulk Terminals- Longview, who has the Herculean task of permitting a coal terminal on the West Coast. Coal and transportation markets were covered by top consultants Greg Marmon of Wood Mackenzie and Dan Fapp of L.E. Peabody & Associates, respectively. The breakout session was an interactive presentation on Illinois Basin and Powder River Basin Supply and Demand presented by John T. Hanou, President of Hanou Energy Consulting. The location for the 2018 Spring Conference is currently being determined. s

2017 Spring Conference Sponsors FLYER SPONSOR AKJ | Nalco

BANNER SPONSORS Appalachian Railcar Services Argus Media Crown Products & Services GKG Law, P.C. Transportation Services, Inc.

14 | COAL TRANSPORTER

Kent and Julianna Smith

Abby Caplan

Nicole Chick, Debbie Sides, Ellison Key

Tammy and Tom Lore, Brad Spratt

Jason Begger and Wendy Hutchinson

Mike Blank and David Felix

Finn and Bridget Host

Lynne and Lin Midyett

Kelley and Jim Henry, Kim Roach

John Faulconer

Jim and Barbara Oâ&#x20AC;&#x2122;Neill, Kelli Sweet

Amy McBrayer, Liz Gonzales, Harry Mullins

Bob and Caryl Pfeiffer

Karen Bramley and David Ryan

COAL TRANSPORTER | 15

2017 Spring Conference / Review continued

Alan Shaw, Rob Zehringer, Brian Fuller, Finn Host

John Mayer

Josh Monroe, John Hanou, Nick Keys, John Faulconer

Karl Van Norman, Chris Fasy, Harry Mullins, Scott Strum

David Ryan, John Ritter, Jay Leadingham

16 | COAL TRANSPORTER

Nicole Chick, Amanda Barbieri, Jamie Torske, Wendy Hutchinson

Gregg Simmons, Andrew Stevermer, Doug Simmons

Chris Fasy and Harry Mullins

Coal Car Inspection / Doors/Tubs; Wheels; Bearings

Tips for

Inspecting Cars

when removing them from Storage

his article presents a suggested checklist of good, sensible practices and procedures, compiled from input from a number of experienced contributors, that you may opt to utilize when preparing to return rail cars to active service, after a period of their storage or non-use. It is always wise and good practice to use all appropriate caution in placing stored cars back into service. The suggested practices in this article are not intended to extend manufacturer’s warranties or to guarantee the safe operation of a particular car or piece of equipment, returned to service. Ultimate responsibility for safe operation remains with the person making that decision. Wow, there is a lot to know to inspect a railcar so we will be offering expert tips on only a few of the car components in each issue. In this issue we will cover the inspection of Doors/Tub, Wheels and Bearings.

Doors/Tub Inspection

When coming out of storage, it would be very much a necessity to connect air to the door dump line and check for moisture in the system by opening the drain on the dump reservoir. After assuring that any liquid has been

removed, the door system should be operated several times from open to close to make certain that it is operating correctly. All plumbing and components should be checked for external air leakage (or just to see if any components have been removed or stolen by vandals). Any car that does not function 100% correctly through a few door cycles or that shows any external leakage should not be placed back into service. The air should be drained from the car and it should be sent to the shop for testing and repair. Depending upon how long the cars have been sitting in storage and when they were last serviced, it may be a best practice to send any/all cars returning to service through a shop to check out all components and systems, not just the dump system components.

Wheel Inspection

It is important to inspect wheels for wear, damage, and AAR status prior sending them back into service, to reduce risk and avoid costly wheelset replacements in service. All wheels should be inspected for wear using the AAR Combined Wheel Gage, or a combination of the AAR Wheel Defect Gage and the AAR Steel Wheel Gage. Using the Combined Wheel Gage, or the Defect Gage, check each wheel for thin flange by applying

the gage according to the method shown in Rule 41. If the flange is thin, the gage will touch the wheel tread before it touches the wheel flange. Using the Combined Wheel Gage, or the Steel Wheel Gage, check each wheel for high flange by applying the gage according the method show in Rule 41. If the flange is high, the top of the gage will touch the top of the flange before it touches the wheel tread or rim. Using the Combined Wheel Gage, or the Steel Wheel Gage, check each wheel for rim thickness by applying the gage according to the method shown in Rule 41. If the rim is thin, the gage notch or mark for ¾” will fall below the level of the flange back face edge, in the open space, when the tip of the gage is touching the wheel tread. Wheels that have flanges that have worn thin and/or high, but not beyond the limit, occasionally have worn beyond the hollow tread wear limit. To ensure that such wheels are not returned to service, check just those wheels with the AAR Tread Worn Hollow Gage according to the method shown in Rule 41. If the tread is worn hollow, the Hollow Gage Contact Lever pointer position will exceed the 4mm mark. If a Hollow Gage is not available, wheels with flanges that are near the thickness and/or height limit should be replaced as a matter of preventative maintenance.

Editor’s note: My thanks go to Charlie Birch (TUCO), Tod Booth (Luminant), Nathan Grove (Timken), John Jennings (Lexair), Kevin Koepke (ARS Nebraska) and Armand Taillon (Amsted) for contributing to this project. Not all input is included here but may appear in future installments. COAL TRANSPORTER | 17

Coal Car Inspection / Doors/Tubs; Wheels; Bearings continued Inspect wheels for shelling, spalling, cracking, grooving, buildup, and flats, using the visual and gaging methods described in Rule 41. For shelling and spalling, inspect each wheel for tread surface damage that exceeds an inch in diameter. This can be done using a quarter as a reference, such that when the quarter fits entirely within the damaged area, the wheel should be replaced. Inspect each wheel for cracks that run straight across the tread and that are spaced apart by 1/16” or more, rather than running diagonally across the tread and are packed close together, and replace any wheel that has this type of straight, spaced cracks. Inspect each wheel for grooving and buildup using the AAR Steel Wheel Gage. Apply the 1/8” end tip of the gage to any groove or buildup according to the method shown in Rule 41 to determine whether the depth of the groove or height of the buildup exceeds 1/8”, and replace any wheel that does. In addition to these inspections, it is also advisable to inspect wheel flanges, rims, and plates for AAR condemnable defects such as cracks or breaks, or any scrapes, dents, or gouges, that are larger than 1/8”. Lastly, any sliding marks on the wheel tread should be inspected for flatness using the Combined Wheel Gage, or Wheel Defect Gage for flat spots that exceed 2” or pairs of flat spots that both exceed 1-1/2”.

For older cars, it is also important to inspect each wheel for AAR status to check for other AAR condemnable defects associated with wheel type or wheel mark, according to Rule 41.

Bearing Inspection

Wheel sets under cars: If a car has sat idle for 12 months, move the car one full car length. This will help re-coat the load bearing surfaces inside the bearing. If clearly formed droplets are present on the seal, pull the wheel set and send the bearings in for reconditioning. Loose wheel sets in the Garden: If a wheel set has sat idle for 12 months, rotate the cup (with several revolutions). If clearly formed droplets are present on the seal, pull the bearings and send them in for reconditioning. Loose bearings stored inside: Bearings can be stored inside for up to 3 years. Bearings should be stored in their original container in a dry mild climate. With that said, if oil separation is visible (i.e. oil dripping from the seal), sending those bearings back in for reconditioning is recommended. FRA rule will not allow clearly formed droplets in the field. The issue with grease is that if it sets static for long periods of time, the oil will separate from the soap. Consider a FIFO inventory process. s

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Stored Coal Car Inspection for Release Date ______________________________________________ Inspector _____________________________________________ Car Mark ________________________________________ Car Type _____________________________________________ Location ____________________________________________________________________________________________________ Stenciling _______________________________________ Bracing _______________________________________________ Panels ___________________________________________ Top Cord ___________________________________________________________________________________________________ Safety Ladders ___________________________________________________________________________________________ Rails and sheeting ______________________________________________________________________________________ Brake Handle _____________________________________________________________________________________________ Coupler/Uncoupling Levers __________________________________________________________________________ Air Hose ____________________________________________________________________________________________________ Air System ________________________________________________________________________________________________ Wheel Condition Note Scaling and wear R-1. ______________________________________________ L-2._____________________________________________________ R-3. ______________________________________________ L-4._____________________________________________________ Bearings R-1. ______________________________________________ L-2._____________________________________________________ R-3. ______________________________________________ L-4._____________________________________________________ Brake Shoes and Keys Note wear and missing-Replace if needed R-1. ______________________________________________ L-2._____________________________________________________ R-3. ______________________________________________ L-4._____________________________________________________ Truck Inspection Note Missing and worn or damage Springs __________________________________________ Wedges_______________________________________________ Break Beam ______________________________________________________________________________________________ Doors/Tub Inspection Doors Damage _________________________________________ Sealed/Locked _____________________________________ Tubs Cracks ______________________________________________________________________________________________________ Damage ____________________________________________________________________________________________________ Interior Interior clean and free of debris ___________________________________________________________________ Bracing intact and all bolts in place ______________________________________________________________ COAL TRANSPORTER | 19

Connecting

RETAC and NCTA By Sean Craig, Manager, Fuel Supply, Dairyland Power

he Surface Transportation Board’s Rail Energy Transportation Advisory Committee (RETAC) was established in 2007 to provide advice and guidance to the agency and serve as a forum for discussion of issues related to rail transportation of energy resources (e.g. coal, ethanol and other biofuels). One reason why RETAC was formed a decade ago was the projection that coal traffic would increase 25 percent by 2017. RETAC meetings are scheduled twice a year and open to the public. Minutes and presentations are available on the link: https://www.stb.gov/stb/rail/retac.html RETAC is comprised of 25 voting members, representing a balance of stakeholders with an interest in rail transportation. Members include large and small railroads, coal producers, electric utilities, the biofuels industry, the petroleum industry and the private railcar industry. The three members of the Board serve as ex officio members of RETAC, along with representatives of the Departments of Agriculture, Energy, Transportation and the Federal Energy Regulatory Commission. I am a member representing the rural electric cooperative segment of the electric utility industry for a three-year term. My first experience at RETAC was this past April. Each industry segment provided an update regarding rail traffic. Multiple stakeholders revealed rail capacity is long and are working together to balance shipping resources with supply/demand. The railcar update stated that 2017 is on pace for coal’s second fewest carloads in recent history. The railroads expressed the difficulty in ramping up equipment availability on short notice when in reality it takes 9 – 10 months lead time for aligning all assets. The utility segment update showed how state and federal subsidies for renewables undermine effectiveness of competitive markets. Therefore, the coal shipper is challenged with high inventory volume and variable dispatch. Ten years after RETAC was established, the railroads and coal shippers are looking at a different environment than what was forecasted. It shall be interesting what lies ahead for the next 10 years. NCTA has had a role in a few RETAC meetings thanks to Pat Scherzinger arranging surveys at the last two Denver conferences that were presented to RETAC. The connection between NCTA and RETAC is an important relationship because both committees have a purpose to hold forums for discussion on issues and promote adequate transportation service for shippers. As a member of both, I plan to continue connecting them with feedback from surveys or ideas that are addressed during the forums. s 20 | COAL TRANSPORTER

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NCTA COMMITTEE

UPDATES

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

Waterborne Transportation Committee

22 | COAL TRANSPORTER

by the weakness of the same market a year ago when domestic producers were struggling to find homes for their coal in the global marketplace For this same period, total coking coal exports were 20.29 mm tons, up 28% YoY. Supply tightness that began in Q4 â&#x20AC;&#x2122;16 lent itself to a rapid rise in global prices to end the year, spurring US producers to ramp up production

where they could and get into the market. Cyclone Debbie in late March disrupted mining and infrastructure in met-heavy Queensland; however, they recovered more quickly than anticipated as most of the damage was to the rail-lines and not mining operations as was the case during previous cyclone events. Thus, very high prices only offered a brief window for US producers

US Exports From the East and Gulf Coasts Jan 2013 - May 2017 12,000,000 10,000,000 mm tons

The Waterborne Transportation Committee has not met since the last issue was published but Sara Voorhees of Doyle Trading Consultants has kindly provided the following update on what has been happening on the water. US Exports Through May 2017: Through the first 5 months of 2017, US exporters have moved 30.50 mm tons of coal out of both the East and Gulf Coasts, up 56% from the same time a year ago as domestic producers took advantage of the window of opportunity that opened following Chinaâ&#x20AC;&#x2122;s curtailment of working days in late 2016 and disruptions to the coking coal supply chain in Queensland in March/April 2017. Jan- May 2017 exports from Hampton Roads total 13.52 mm tons, up 49% YoY while exports from Baltimore total 7.94 mm tons, up 27% YoY. Out of the Gulf, Mobile has moved 4.23 mm tons, up 44% YoY while New Orleans exported 4.81 mm tons, up 155% YoY. Though tempting to look at these YoY comps and discern that the US export market has been on a tear to start 2017, these figures are magnified

8,000,000 6,000,000 4,000,000 2,000,000 0

EC Coking

EC Steam

GC Coking

GC Steam

Operations and Maintenance and the forward price curve remains backwardated lending some caution for US producers. Jan- May exports from Hampton Roads total 11.56 mm tons, up 40% YoY while Baltimore has moved 4.22 mm tons of coking coal, down 9% YoY. In the Gulf, Mobile has exported 4.22 mm tons, up 59% and New Orleans has exported 286K tons, up 256% YoY. On the steam side, total exports in Jan – May were 10.22 mm tons, up 134% YoY. Hampton Roads has moved 1.96 mm tons, up 214% YoY, while Baltimore exported 3.72 mm tons, up 128% YoY. In the Gulf, Mobile has moved a paltry 12K tons (all in January), down 96% YoY while New Orleans has seen 4.53 mm tons, up 150% YoY. Pricing into Europe and for some specialty products going to Asia remains at levels where some US producers retain interest. Coal originating in the Illinois Basin (via the Gulf ) and Northern Appalachia (via Baltimore) are exploiting this more than other products. However, some Central Appalachian coal is making its way into the export thermal market as the quality is useful for blends. Like the metallurgical markets, the forward price curve is backwardated which acts to temper long-term development for new capacity to serve export demand. s

Doyle Trading Consultants is the world’s premier energy market research consultancy specializing in the thermal and coking coal sectors. DTC’s expert team provides cutting-edge insight and analysis on the U.S. and global coal markets to more than 1000 decision-makers from energy companies and financial institutions worldwide.

The Operations & Maintenance Committee just wrapped up its annual conference in Santa Fe, New Mexico. As always, attendees left with the latest information on car components and are better prepared to meet the day to day challenges of keeping their fleets in optimal working condition. Work has already begun on the 2018 meeting in Nashville, Tennessee. Kevin Johnson (NPPD) will again serve as the conference’s Program Chairman, so keep him posted on issues you would like to see covered or contact him if you would like to make a presentation. Elections for members to serve on the O&M Executive Committee were held at the Monday afternoon Roundtable in Santa Fe. Tod Boothe (Luminant), Charlie Birch, (NexGen/ TUCO), Kevin Koepke (Appalachian Railcar Services) and Tom Sedarski (Amsted Rail) were elected by the membership to serve 3-year terms. Participation on any of the Operations

and Maintenance committee’s activities is open to all members, so we will be happy to put you to work. Two years ago, with wheel changeouts being the number one maintenance expense for coal car owners, the Operations and Maintenance Tech Review Committee (TRC) spearheaded an initiative to create a large (owner anonymous) database on wheel removals. Data collection deadlines were extended several times and finally closed at the end of 2016. Early this year, the data was analyzed for trends and commonalities pertaining to wheel life with the hope that it might lead to opportunities to save money on premature change-outs. The results of this analysis were presented at the annual O&M Conference. The presentation is available in the Member’s section of the NCTA website. The TRC remains available to help members out with questions or unwelcome trends you may be experiencing with your fleet. s

(L-R) Gayle TenBrink, Charlie Birch, Tod Boothe, Harry Mullins, Jeremy Bowers, Kevin Johnson, Tom Sedarski, Cathy LeFevers, Kevin Koepke COAL TRANSPORTER | 23

NCTA COMMITTEE

UPDATES Eastern and Western Logistics & Planning

Education Committee The application deadline for the 2017 Scholarships for children of employees of NCTA member companies was July 31st. The scholarship application has been converted to a fillable form to make it easier for both the applicants and the Education Committee to manage the process. The four winners will be announced in September and will be profiled in Issue 1 2018 of the Coal Transporter. s

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24 | COAL TRANSPORTER

Neither the Eastern nor Western Logistics and Planning Committee have held a physical meeting since the last issue of the Coal Transporter was published. Eastern Committee Chairman Edwin Fisher (Arch) and Western Committee Chairman Jeff Zerkle (AEP) continue to monitor traffic flows and issues of interest to the committee. Although proposals for procedural changes to the NCTA forecasting process have been developed by the Committee, no changes to the process have been implemented from the NCTA working committees to date. However, the BNSF has made changes within their website that are being evaluated. One item of interest in the west is the BNSFâ&#x20AC;&#x2122;s plan to test coal car covers as part of their settlement with Washington State environmental groups. We were not successful in getting an update on these plans, but will pass on any information that becomes available. s

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Featured Topics Include: • Met coal updates—Where and how usage is changing • Washington’s new view on coal • Coal exports—Demand hotspots • Grid evolution—Could renewables and distributed generation further displace coal demand? • Steel outlook—Supply/demand and raw materials • Infrastructure and transport roadblocks—The latest trends in rail, barge, and terminals • Are investment opportunities opening back up for coal?

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2017 O&M Conference / Review

2017 Operations and Maintenance Conference

Eldorado Hotel & Spa, Santa Fe, New Mexico | June 12-14, 2017

Wheels are always an important topic, so in addition to presenting the results of the wheel study to the broader open session audience, Class D wheel performance and wheel life analytics of coal service were also presentation topics. The data submitted using Excel for the wheel study was analyzed for several parameters, and the related why-made codes for wheel removal were graphically displayed. Matlab software was utilized by an independent third party to analyze and parse the data. The results were then converted to a PowerPoint presentation for the conference. The meeting closed with an assessment of the latest braking initiatives and an expert panel representing various repair shops. The Tuesday evening reception and dinner was a Southwest Fiesta, held in the Eldorado Ballroom. The dinner was one of the best hotel buffets that I can recall in my many years attending NCTA events. Often with buffet settings, people eat and run, but not this group. People hung out and visited until the staff turned the bright lights on and started moving furniture. The annual NCTA O&M Golf Tournament was held Wednesday at the Towa Golf Club. The layout was challenging with a lot of fun holes and some very stunning scenery. The group really seemed to enjoy the course, returning to the clubhouse all smiles. The 2018 Operations and Maintenance Conference will be held June 11-13 at the Marriott at Vanderbilt University in Nashville, Tennessee. The meeting will follow the CMA Music Festival in Nashville so plan on heading to town early to see some live performances of your favorite country music stars. s

CTA Operations & Maintenance Committee held its annual conference June 12-14 at the Eldorado Hotel & Spa in downtown Santa Fe, New Mexico. The hotel was just a short walk from Santa Feâ&#x20AC;&#x2122;s historic plaza allowing attendees to enjoy the shops, art galleries, and fabulous restaurants without having to endure the commotion that the Plaza sometimes creates. Three days of events kicked off on Monday morning with the annual private car owner Roundtable. Utility members had the opportunity to discuss maintenance trends, problem solve, and share best practices. The analysis of the wheel data gathered from members over the past two years was presented. The Roundtable reconvened in the afternoon for all NCTA members. See the committee report section of this issue for the results of the annual Executive Committee elections. The Monday reception was held on the patio of the Presidential Suite with its wonderful views of the Sangre de Cristo Mountains and downtown Santa Fe. This event was sponsored by Railroad Friction Products. Operation and Maintenance Executive Committee Program Chairman Kevin Johnson presided over the two day program focused on railcar mechanics, technology, and safety. Tuesday covered draft gears in detail and also bearing components and assemblies. Representatives from the UPRR and BNSF were on hand. The UP gave an update on their machine visioning technology and the extended haul test waiver. The BNSF discussed wheel life cycle costs.

26 | COAL TRANSPORTER

L-R: TOP 1 Steve Morgan, Dan Hartzell, Bob Novinsky 2 Bruce Fogg and Dave Boltz 3 Justin Goertz and Sam Crespo 4 Michael Dunn and Ken Brockway

L-R: TOP 9 Gayle TenBrink, Kevin Johnson, Tom Sedarski, Jeremy Bowers 10 Adam Boyd, Keith Gary, Cathy LeFevers 11 Ron and Andrea Meisch, Dan Hart

2ND ROW 12 Les Wood, Brian Hupp, Wayne Precure, John Mayer 13 Bruce Fogg 14 Charlie Birch 15 Rob and Gloria Marchio

BOTTOM 5 Cameron Lonsdale, Karl Van Norman, Keith Gary 6 Jim Kennedy and Tim Wacker 7 Renae and Dwight Porter 8 Nick and Susan Tupper

3RD ROW 16 Bob Novinsky 17 Kevin Koepke and Cathy LeFevers 18 Jim Kennedy, John Zoller, Colleen Zbylut 19 Greg Mayo 20 Tim Wacker

4TH ROW 21 John Cruikshank, Bruce Fogg, Dave Boltz 22 Charlie and Koleen Birch 23 Ryan Kelly, Jonathon Marlow, Darren Panczuk, Harry Mullins

COAL TRANSPORTER | 27

31 L-R: TOP 24 Harry Mullins and Ryan Kelly 25 Les Wood and Wayne Precure 26 Tim Wacker and Levi Sweazy BOTTOM 31 Justin Goertz and James Allen 32 Keith Gary

2ND ROW 27 Brian Hupp and John Mayer 28 Nathan Grove and Charlie Birch 29 Mike Lawrence and Bill McNally 30 Steve Morgan

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Surface Transportation Board / Update

Surface Transportation Board Update

T By Thomas Wilcox, Principal, GKG Law P.C.

30 | COAL TRANSPORTER

he Surface Transportation Board, like many federal agencies in Washington, D.C. in 2017, has functioned at a less-than-optimal level through the first half of the year due to the slow pace by which high level appointments are being made by the Trump Administration and confirmed by the Senate. Prior to August 3, 2017, the Senate had received 242 nominations but confirmed only 50. On that date, coinciding with the collapse of the Senate’s consideration of reforming the Affordable Care Act, the Senate approved 66 nominees. In the STB’s case, there are two vacancies due to Section 4 of the Surface Transportation Board Reauthorization Act of 2015 (P.L. 114-110), which expanded the Board from three members to five. For now, all three of the Board members in place when Donald Trump became president remain on the Board, and the only republican - Ann Begeman – was named Acting Chairman by the President soon after he took office. The lack of a five-member Board has resulted in several major policy initiatives being put on hold. At the same time, the Board has complied with Executive Order No. 13777 issued by President

Trump on February 24, 2017. That EO directed all federal agencies to establish a Regulatory Reform Task Force (RRTF) charged with recommending regulations for repeal, replacement, or modification on a somewhat aggressive timetable.

Major STB Policy Initiatives Put on Hold Historically, the selection and appointment of new Board members has not enjoyed the priority and attention that other agencies have garnered. Fortunately, the Board does not require its full statutory compliment to function, and indeed it briefly consisted of a single Board member between 2003 and 2004. It is therefore not uncommon for vacancies to remain unfilled for periods of time, but for the Board to nevertheless continue to function on both policy matters and individual adjudications. The Reauthorization Act’s expansion of the Board to five members changed that dynamic, however. Currently, the Board is made up of one republican and two democrats

(former Chairman Daniel Elliott and Deb Miller). The appointment of two new republican members by the current administration will result in a republican majority. Also, none of the current members were chosen by President Trump to implement his administration’s goals and policies regarding rail transportation regulation, whatever they are eventually revealed to be. The position of Chairman is also not settled, as Ms. Begeman is serving as Acting Chairman until the full five-member Board is in place. In any event, the lack of a fivemember Board after the 2016 Presidential election resulted in the agency putting on hold its active consideration and completion of several significant rule-makings and policy efforts that are relevant rail shippers of coal and other commodities. In the words of Acting Chairman Begeman in her July 3, 2017 quarterly status report letters to certain Congressional committees, “it remains appropriate for the Board’s larger regulatory proceedings to

be considered by a full complement of members before taking major action.” This decision was not strenuously objected to by shippers early in 2017 (railroad stakeholders advocated for the delay in any action on pending policy matters until all five members are seated) due to a general belief/hope that the two STB vacancies would be filled within the first six months of the year. However, the extremely slow pace of filling presidential appointments generally, and the fact that the current administration has made no moves to fill the two STB vacancies well into 2017, resulted in some shipper groups recently voicing their concerns to Congress and the Administration over (1) the lack of any apparent effort to nominate new STB members; and (2) the STB’s decision to continue to refrain from taking action in any large policy proceedings until all five members are seated.

At the current slow pace of confirming presidential appointments in general it may well be the end of 2017 before a full five member Board is seated. In any event, the major policy proceedings currently on hold include the following:

EP 711, Reciprocal Switching

This proceeding began in 2011 with a petition for rulemaking submitted to the STB by the National Industrial Transportation League. The official comment period on proposed new rules governing reciprocal switching closed on January 13, 2017, and an extremely voluminous record dating back to 2011 has been compiled. In the Board’s original Notice of Proposed Rulemaking it also established dates by which interested parties could request ex parte meetings with Board members and staff to discuss the proposed rule, and the dates for such meetings to be held. On December 27, 2016, however,

COAL TRANSPORTER | 31

the Director of the Office of Proceedings issued a decision that extended the dates for requesting and holding ex parte meetings due to the fact that “the Board is in a time of transition, with potential changes to the Board’s membership given the changeover in the administration.” Although ex parte meetings commenced on January 30, 2017, the December decision stated the Board would establish new deadlines concerning the closure of the ex parte meeting period “in a future Board order.” No such order has issued, however, and in the meantime numerous stakeholders have met with Board members and staff to discuss the proposed rules and the reciprocal switching issue in general. Summaries of the meetings are available on the Board’s website.

EP 722, Revenue Adequacy

The Board’s review of its procedures for determining railroad “revenue adequacy” and its rules for factoring the revenue adequate status of a Class I railroad into rail rate reasonableness

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determinations remains a key policy area for coal shippers. This is because under the Staggers Rail Act of 1980, once a railroad becomes “revenue adequate” (very generally defined as its revenues exceed its cost of capital) there is arguably less need to permit the railroad to differentially price its services to its shippers that don’t have transportation alternatives, since a primary legislative purpose of enabling railroads to differentially price their rates was to help them become revenue adequate. Among other things, a determination that achieving revenue adequate status results in a limit on a railroad’s ability to raise rates would mean the Board’s existing Stand Alone Cost (SAC), Simplified Stand Alone Cost, and/or Three Benchmark Methodology rate testing methods could be replaced with a rate reasonableness standard based on the defendant’s revenue adequate status. For coal shippers, whose rail rate cases have almost exclusively utilized the SAC rate rules, such a standard might

permit rate reasonableness determinations to be made more quickly and at a cost that is significantly lower than pursuing a SAC case. However, Class I railroads and shippers have extremely divergent views on the meaning, timing and significance of a railroad achieving “revenue adequacy” and how (or even whether) this status affects rate reasonableness determinations. In any event, the administrative record closed in EP 722 on August 18, 2015, and there has been no further action in the proceeding since.

Rate Reasonableness Rules and Procedures Over the past several years the Board has started several proceedings to review its rate reasonableness rules and procedures in response to rail shipper complaints that they are costly, time consuming, and in general not accessible to them to test the reasonableness of railroad rates. There has also been a vigorous ongoing debate

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between railroad and shipper stakeholders over the substantive standards applied by the Board, and whether they should be modified or in some cases scrapped altogether and replaced with new standards. Proceedings in which the Board has sought public input on its rate rules and procedures include the aforementioned EP, 722, Revenue Adequacy; EP 665 (Sub- No.1), Rail Transportation of Grain – Rate Regulatory Review; EP 665 (Sub-No.2) Expanding Access to Rate Relief, and EP 733, Expediting Rate Cases. The Board also commissioned a study of its rate reasonableness methodologies by InterVISTAS, a consulting firm that issued its final report in September, 2016, on which no further action has been taken. These proceedings and others have so far resulted in (1) a proposal by the Board to consider adopting changes to its substantive rate rules to facilitate undefined “very small” rate cases (EP 665 (Sub-No. 2)); and (2) numerous proposals to change STB procedures, discovery rules, and evidentiary rules

aimed at expediting and reducing the cost of rail rate cases. However, further debate and discussion of any substantive changes to rate reasonableness rules has also been placed on hold pending a full five-member Board.

The STB’s Regulatory Reform Task Force Finally, on April 25, 2017 the STB named Rachel Campbell, Director of the Office of Proceedings, to be the STB’s “Regulatory Reform Officer” in response to the aforementioned Executive Order No. 13777. As stated above, that EO directed all agencies to establish a RRTF charged with recommending regulations for repeal, replacement, or modification, and for the task force to provide an initial report by May 25, 2017. The term “regulation” is construed broadly in the EO to include any “agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or

to describe the procedure or practice requirements of an agency.” The appointment of Ms. Campbell was followed by lengthy letter submitted to the Board by the Association of American Railroads on May 18, 2017 identifying “several proposed regulations for withdrawal and existing regulations for repeal, replacement, or modification.” These include the following requests relevant to coal shippers: withdrawal of EP 711, Reciprocal Switching, formal rejection of the “revenue adequacy constraint” contained in Coal Rate Guidelines- Nationwide, the 1985 decision that provides the theoretical basis for the Board’s rules it applies in rate reasonableness cases, and which constraint is being considered in EP 722, Revenue Adequacy; and the rules recently adopted by the Board in EP 724 (Sub-No. 4), United States Rail Service Issues – Performance Data Reporting (served November 30, 2016). On May 25, 2017, the Board’s RRTF submitted its initial status report in accordance with the EO, and

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announced the five other members of its RRTF1. It also identified several potential proposals for regulatory reform, including (1) revising and updating the Board’s environmental rules; (2) updating its procedural and filing rules; and (3) reviewing comments in EP 712, Improving Regulation and Regulatory Review, a proceeding commenced in 2011 taking comments on proposed improvements to the Board’s rules. The RRTF also expressed a keen interest in hearing the views of industry stakeholders, and the RRTF Members subsequently held a public “listening session” on July 25, 2017 in Washington, D.C. Seventeen parties provided written comments, and numerous stakeholders made oral presentations on the views expressed by the AAR in its May 18 letter, counter views of shipper stakeholders, and areas where both sides see room for improvement. In addition, shipper interests and Members of Congress have urged the Board to lift its current “freeze” on completing major policy initiatives and rule-makings, both in the “listening

34 | COAL TRANSPORTER

It remains to be seen whether further delay in rounding out the Board to five members will eventually prompt the Acting Chairman to alter this course, given that some of these important proceedings have been pending for several years. session” and in other correspondence to Board members. In conclusion, the Board continues to process individual cases and adjudications, but it has also continued to place on hold its consideration of several major rule-makings and policy issues until a full five-member STB is in place. At the current slow place of appointments and confirmations, however, this might not occur until the end of 2017. It remains to be seen whether further delay in rounding out the Board to five members will eventually prompt the Acting Chairman to alter this course, given that some of these important proceedings have been pending for several years. In the meantime, the Board has begun a review of its existing rules and procedures, and the

debate has already begun on whether some of the pending major policy initiatives and existing rules that are relevant to the railroad transportation of coal should be withdrawn or repealed, respectively. s Thomas W. Wilcox is a principal of GKG Law, P.C., located in Washington, D.C. who has represented rail shippers of coal and other commodities for over 25 years on rail transportation matters. The views expressed in this article are those of the author. The other five members of the STB’s RRTF are: Cynthia Brown, Section Chief, Office of Proceedings; Danielle Gosselin, Attorney Advisor, Office of Environmental Analysis; Craig Keats, General Counsel, Office of General Counsel; Lucille Marvin, Director, Office of Governmental Affairs, Public Assistance, and Compliance; and Francis O’Connor, Section Chief, Office of Economics.

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Commentary / Coal's Future is Bright

Coal’s Future is

Bright

and here's why

By David Rothbard and Craig Rucker “We’re here today to usher in a new American energy policy, one that unlocks millions and millions of jobs and trillions of dollars in wealth.” President Donald Trump, June 29, 2017

ith his recent pledge to inaugurate an era of American “energy dominance,” President Trump has made a radical break with policies that were specifically designed to restrict and, in some cases, deny Americans access to affordable and reliable energy. And as the president has said repeatedly, coal, and coal miners, will play a prominent role in America’s energy future. This is welcome news to communities in Appalachia and the rural West, including the Powder River Basin, that have borne the brunt of efforts by the Obama administration and environmental activists to defame and destroy an industry that has provided electricity and jobs since the 19th century. The past few years have seen dozens of coal plants shuttered throughout the country, and many more are slated to close over the next decade. A Columbia University study estimates that the coal industry has lost roughly 60,000 jobs since 2011. Turning things around and restoring the vitality of coalproducing communities will not be easy. But there are developments afoot that provide more than just a ray of hope.

36 | COAL TRANSPORTER

Positive Developments

The Associated Press recently reported that coal production through May was up by at least 121 million tons, or 6 percent, in China, India, and the United States. According to data released by the Energy Information Administration, the most dramatic increase was in the U.S., where coal production rose 19 percent in the first five months of this year. More encouraging news came in June with the opening of the Acosta Deep Mine in western Pennsylvania, which will provide jobs, paying an average of $80,000 annually, for 70-100 workers. Acosta will mine metallurgical coal used is steelmaking. Coal is an essential element in the manufacture of high-quality steel. Responding to demand for metallurgical coal, companies in recent months have opened or expanded mines in Pennsylvania, Alabama, and West Virginia. In keeping with President Trump’s pledge to end the war on coal, Interior Secretary Ryan Zinke has reversed the Obama administration’s January 2016 moratorium on coal leasing on federal land. Pointing out that coal leasing on federal land supplies approximately 40 percent of the nation’s coal, Zinke’s order states, “Given the critical importance of the federal coal leasing program to energy security, job creation and proper conservation stewardship, this order directs efforts to enhance and improve the federal coal leasing program.” Zinke’s move is backed by

In keeping with President Trump’s pledge to end the war on coal, Interior Secretary Ryan Zinke has reversed the Obama administration’s January 2016 moratorium on coal leasing on federal land. Montana Attorney General Tim Fox who has challenged a lawsuit filed by Citizens for Clean Energy and the states of California, New York, New Mexico, and Washington that seeks to overturn the lifting of the moratorium. “Sec. Zinke acted within his authority under the law to reverse a discretionary policy of the previous administration, and the lawsuits objecting to the new policy are purely political and ideological in nature,” Fox said in a statement. “The state of Montana has a significant stake in the continuation of federal coal leases, and is well-positioned to benefit from increased coal mining on our federal lands.” Of all the actions that have taken place in the past few months, none has been more welcome than the Trump administration’s withdrawal of the Obama-era Clean Power Plan (CPP). Along with the Obama EPA’s mercury rule, the CPP was designed to force utilities to abandon coal as a source of electricity and to tilt the playing field to benefit politically favored but otherwise uncompetitive renewable energy, such as wind and solar. Undoing the harm the Obama policies inflicted on the industry and coal-producing communities will remain challenging, but at least we have an administration in Washington that is sympathetic to the nation’s energy needs and, as its

Fleet Management Billing Repair Card Audits Wheel Cost Reduction JIC/DV Processing Technical Services Inspection Services Strategic Services

COAL TRANSPORTER | 37

withdrawal from the anti-fossil fuel Paris climate accord shows, is not afraid to stand up to the powerful environmental lobby and its media allies.

Work to be Done

King Coal: Over 80% of Arkansas collegians surveyed support coal power A poll of 550 total students, conducted by C-Fact Collegians, at the University of Arkansas revealed that an incredible 80.91% of them support the continued use of clean coal for Arkansas energy. The poll was conducted from May 2-4, 2017 at both the University of Arkansas, Fayetteville and Little Rock campuses. The students were asked “Do you support the continued use of clean coal to keep electricity prices affordable, protect jobs, and help grow the Arkansas economy?” 445 out of 550 Arkansas college aged students replied “Yes.” This goes directly against the narrative pushed by the environmentalists that Americans, and particularly young Americans, are against the use of coal.

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While they’re at it, Trump officials, led by EPA Administrator Scott Pruitt, should set their sights on Obama-era shenanigans relating to the regional haze rule. By twisting the language of the Clean Air Act and using phony data, the Obama EPA claimed that vast swaths of the country were out of compliance with the CAA. In Arkansas, for example, the Obama policy, if left standing, could lead to the closure of two huge coal-fired power plants, Independence and White Bluff. By bringing regulatory integrity to the regional haze rule, Administrator Pruitt can help save these and many other coal plants around the country. Also, Administrator Pruitt should overturn the Obama EPA’s “endangerment finding, “ which absurdly claimed that carbon dioxide is a “pollutant” under the CAA and is therefore subject to federal regulation. As long as the endangerment find-

By bringing regulatory integrity to the regional haze rule, Administrator Pruitt can help save these and many other coal plants around the country. ing is in place, environmental groups and certain state attorneys general will use it to launch lawsuits against the coal industry and other fossil-fuel producers. Another target should be saving the Navajo Generating Station (NGS), a 225-megawatt coal-fired power plant located on the edge of the Navajo reservation, just outside of Page, Ariz.. Built in the early 1970s as part of a federal project to pump Colorado River water along a canal 300 miles south the Phoenix and Tucson, the NGS has for decades been the economic backbone of the Navajo Nation. In February, the plant’s owners announced plans to close the facility at the end of 2019, a move that sent shock waves through the Navajo community. The NGS and the nearby Kayenta mine, which supplies the plant with coal, employ about 750 people, who earn far more than what they could make elsewhere in this sparsely populated desert. Coal is too big of an asset, both to the Navajo and to the nation as a whole, to allow the NGS to shut down. In 2013, the Obama administration – citing its commitment to fighting climate change -- announced it would oppose the use of World Bank and other multilateral development bank funding for the construction of coal plants. Obama’s policy would deprive poor people around the world access to affordable and reliable electricity. Look for Trump & Co. to rollback this harmful policy and to do so quickly. Having diversified sources of energy – coal, oil, natural gas, nuclear, hydroelectric, etc. --has been key to America’s economic success. With the world’s largest coal reserves, the U.S. is poised to leverage its abundant natural resources to benefit families and businesses both here and abroad. Let’s get to it. s David Rothbard and Craig Rucker are President and Executive Director, respectively, of the Committee for a Constructive Tomorrow (CFACT).

38 | COAL TRANSPORTER

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NCTA / Member Sound-Off

Member Sound-Off The Coal Transporter asked members and associates to offer their opinions on a current topic affecting the transportation industry.

n number 45 of the Federalist papers, James Madison explained the constitution in these terms: “The powers delegated by the proposed Constitution to the federal government, are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce; with which last the power of taxation will, for the most part, be connected. The powers reserved to the several States will extend to all the objects which, in the ordinary course of affairs, concern the lives, liberties, and properties of the people, and the internal order, improvement, and prosperity of the State.” A lot has changed since 1788. Some would say, it hasn’t all been for the better.

“The powers delegated by the proposed Constitution to the federal government, are few and defined. Those which are to remain in the State governments are numerous and indefinite." -James Madison

States Vs Federalism

Is the balance intended by the country’s forefathers still intact or is the fear that centralized government would erode government of the people, by the people, and for the people come to pass? Respondents were asked how they viewed this balance of power today, particularly in regard to energy and environmental policy. Not one person that responded believes the balance of power between the States and the Federal government remains close to what was intended. However, 17% believe that the tilt towards federalism circa 2017 is justified because the impact that one state has on another state is just much more complicated. Industrial development impacts both air and water quality which don’t recognize arbitrary state boundaries. The EPA loves this ambiguity, taking advantage of it by looking at “regional” haze, “cross state” pollution and a variety of other proceedings designed to control things at the federal level. Slightly over half of the respondents felt that while things may have changed, the Federal Government has gotten a bit overzealous with the amount of power it exerts through the regulatory process to dictating energy and environmental policy. Another 20% agree that there has been overreach, but that the

40 | COAL TRANSPORTER

pendulum is swinging back. The states are getting their power back under the current administration. It is clear that the utilities must take a worst case approach when making a 40 year decision in a regulatory environment that can swing dramatically every 4-8 years. A few folks had this to say about the balance of power: “There still is overreach. The states may be getting some power back, but the influence of former environmental policy has already done its damage. There may be desire by some to roll back policy but the economics of doing so is not favorable.” Emily Regis – Arizona Electric Power Cooperative

“The pendulum may be swinging back somewhat with the new administration, but history proves the pendulum eventually swings back the other way, so companies will continue to plan to make cuts and adjustments on the environmental end, such as our company continuing its plan to decommission our older coal fired power plant units.” Lisa Vyvlecka, CPS Energy

Balance of Power: State VS Federal Government

17%

20%

56% As intended in the Constitution (0%) Federal power is greater but justified Federal power is greater but overreach has occurred Federal overreach, but pendulum is swinging back Other

“In the previous administration, the Federal government definitely used their power to a much greater degree than I believe was intended. I do believe the pendulum is swinging back under the current administration, but it’s too early to tell to what degree. The Republicans can’t agree with Trump on just about anything, so if they don’t get their act together, I believe the overreach will continue.” Kathy Benham, Minnesota Power

Is California Dreamin’?

California. I honestly don’t know why any energy company would do business there. It often runs in crisis mode and then spends big money to get out of it. Not to worry though,

California's Renewable Fixation 35%

Good for Arizona/ West

30% 25% 20% 15% 10% 5% 0%

Let California be a Guinea Pig

New Battery Tech is Only Hope Other

Good for California

when those big money contracts don’t work out, the CPUC just forces their abrogation. They’ve done it with oil, they‘ve done it with natural gas and they’ve done it with electricity. California has been anti-coal for a very long time. Despite having no coal fired generation left, the air quality remains some of the worst in the nation. Maybe you can’t fault them for trying to save their cars over our coal. The RPS in California requires investor-owned utilities (IOUs), electric service providers, and community choice aggregators to increase procurement from eligible renewable energy resources to 33% of total procurement by 2020. However, California is already seeing the impact of some of these policies. Due to the new installation of photo voltaic solar in California, the number of times California must actually pay other states to take excess generation is increasing. Respondents were asked to weigh in on the long term outlook for California's renewable generation policy. Only 7% of respondents thought this was positive for California. California is certainly exerting its rights as a state when it comes to energy policy. It remains a leader regardless of these payments. Thirty-two percent of respondents said that this policy was good for Arizona and the rest of the western grid and that they should continue to reap the economic benefits of California’s policies. Another 29% was happy to let California be the Guinea Pig on just how much renewable energy can be in the mix, as long as they don’t take the grid down. But what happens when the entire west adds so much PV that there is no dumping ground left for excess power? In the long term, 20% think that a breakthrough in battery technology is California’s only hope for the path that they are on.

New York State of Mind

Some may think I set up New York with this question, but that wasn’t my intention. I’ve really been paying attention lately to things people say that they don’t really believe. When it comes to states having a say in their energy future, shouldn’t it be ok to make one choice and take advantage of a state that makes a different one? New York has outlawed fracking within the state but continues to buy low cost gas that is available because fracking continues in other states. Respondents were asked how they viewed this policy. Some struggled on answering this question as only 78% of those taking the survey actually made a selection, compared to near 100% participation on the previous multiple choice questions. Only 10% supported NY’s decision to determine its own energy and environmental future. The majority, 61% of those taking the survey (78% of those who actually answered this question) think that New York is just being hypocritical. If you think fracking is so bad that you actually ban it, is it really okay to buy gas fracked elsewhere? California at least pretends that it won’t buy any coal-fired generation. Since electricity follows the path of least resistance, there is no guarantee that some of those little coal

COAL TRANSPORTER | 41

New York's Fracking Attitude 70% 60%

“Michael Nasi said it well at the Spring Conference, “End the age of coercive federalism” ”

Hypocrisy at its Finest

50%

John Mayer, Associated Electric Power Cooperative

40% 30% 20% 10% 0%

Good for New York

Good for Gas Producers

NY Landowners Lose

No response

fired electrons don’t sneak into the state from time to time. Ultimately when it comes to state’s rights, shouldn’t there be room for a variety of choices? Finally, respondents were asked to share any other thoughts they had regarding state vs federal regulation of energy and/or the environment. Here is what they had to say:

“Irreparable damage has been done to coal-fired generation. The energy market under the Obama Administration has been unfairly skewed, with too much power given to the environmental agencies. I am in agreement to a well-balanced generation portfolio, but not at an unfair cost to the customers we serve. I remain hopeful for a positive change in environmental regulations that can remove the handicaps on fossil fuels and the unfair advantage of renewables.” Amy Newton, City of Springfield Utilities

“When push comes to shove, there is very little difference between Democrats and Republicans. Too many Republicans are drinking the same Kool-Aid as the Democrats. So I expect the overreach to continue.” Larry Rose, DTE Retired

“The states need to get back to making their own policies and quit relying on the government to control.” Kevin Koepke, Appalachian Railcar Services – Nebraska

“The states understand the situation better than the Federal Government. The Feds should only provide wide scope on issues and let the states provide detailed regulations locally.” Kurt Mickelson, Western Fuels Association

It is uncertain that the balance intended in by the sovereign states that collectively declared their independence, using the word “united” as an adjective, is secure. We have all seen that when the federal government centralizes power, it turns the states into mere administrators of its policy. The Clean Power Plan was a perfect example of this - an overarching ruling that required states to develop individual compliance plans. The increase in the number of times states file lawsuits against the federal government and vice versa is staggering, especially when one considers the waste of time and taxpayer money this involves. The Affordable Care Act proved that the federal government has almost unlimited power to control the citizenry by using its power to tax. When it comes to energy, the federal government has been picking winners and losers for a long time now and that is unlikely to change. s

“Government of the people, by the people, for the people, shall not perish -Abraham Lincoln from the Earth. " 42 | COAL TRANSPORTER

Building a

COAL TERMINAL on the Left Coast An update on Millennium Bulk Terminals-Longview By Wendy Hutchinson

n the previous issue of Coal Transporter, I shared some of the challenges experienced by Millennium Bulk Terminals-Longview in our quest to build a coal terminal in the Pacific Northwest. I am happy to report some very positive recent developments. The release of the joint Washington State Department of Ecology and Cowlitz County final environmental impact statement (EIS) cleared the path for Millennium to proceed with obtaining local permits. In fact, our first permit was issued in July. The EIS reaffirms much of what we’ve been saying all along. Specifically: • The terminal can meet all state and federal environmental standards

• There is no evidence that coal dust will exceed air quality standards • Fish and wildlife will be protected with appropriate mitigation • Millennium will bring economic growth and generate new tax revenue for Longview and surrounding counties • Coal shipped through Millennium will not increase coal consumption or greenhouse gas (GHG) emissions in Asia There were two surprises in the EIS. We continue to disagree with the Department of Ecology about its evaluation of GHG emissions to include speculative estimates about end-use emissions for coal used in Asia. However, the EIS did

conclude that Millennium won’t increase coal consumption in Asia. Instead, in an unprecedented request, we have been asked to mitigate for the emissions from the transportation of the goods. This will put a damper on trade-based businesses in Washington state. The second surprise was the conclusion that diesel emissions from eight trains per day would increase health risks, even though diesel emissions are below any applicable regulatory standard. The railroad is challenging this finding. We are moving forward to obtain needed permits for construction and operation of our coal export terminal. And after five years of paperwork, we are more than ready to get to work! s

COAL TRANSPORTER | 43

Reflections / Jerry Wess

Jerry a office t the com p Towe on the 37t uter printe r, Cle velan h Floor of r outside h th d, OH in 19 e Termina is 80 l

Jerry p drum racticing s with pl a par aying tial se t

JERR Y WE

S S derful

A Won 44 | COAL TRANSPORTER

Life

Barb and Jerry at 6 am in Grant Park before the start of the Chicago Marathon in 1998

ooking back, it is hard to believe that my transportation career began forty-seven years ago. I started as the youngest management person on the Chessie System staff, and retired as the oldest member of Exelon’s trading floor group.

Life on the Farm

I began life on the first day of spring, March 20, 1948 at University of Maryland hospital in downtown Baltimore. It seems that the railroad presence entered my life nearly at birth. My parents brought me home to Mt. Clare, the same section of town where Baltimore and Ohio’s (B&O) shop facilities were located. Born Post World War II, I am a true “Baby Boomer.” Before turning school age, we moved to Ellicott City, a suburb of Baltimore. Ellicott City was the first terminus of the B&O Railroad. I attended grade school at St. Paul’s Catholic School in Ellicott City. Being the tallest kid in class, I always sat in the back of the classroom. It was my job to close the big windows in the spring and fall whenever a B&O steam powered train rumbled into town to take on coal and water. In fifth grade, I remember seeing the old steam

Barb and Jerry at Barb’s parents’ house when we were young and free

engines being pulled through Ellicott City on their way to obsolesce by the new shiny diesel electric locomotives. This saddened me and my friends, as we played marbles in the playground. My sister Cheryl was born while we lived in Ellicott City. After her birth, we moved to a bigger house on a farm just outside Ellicott City. It was a nice place to grow up with room for a couple of kids to roam, especially since we each had our own horse. Cheryl and I spent a lot of time riding our horses. We both also played baseball, me hard ball and Cheryl softball. Mom and Dad raised a lot of vegetables. We also had over 1,000 egg laying chickens. My dad, Pete Wess, worked for Baltimore Gas and Electric in the Electrical Distribution Operations Group. He would take cases of eggs each morning before work to his restaurant clients all over Baltimore City. After graduating from Catholic grade school, we both attended public high school in Howard County. I went to Howard High, home of the Lions, and Cheryl attended Atholton High School. I tried (and injured) my hand at football while at Howard High, but my real passion was playing the drums for my eight- piece rock and roll band named the Vanguards.

You light up my Life

It was the beginning of high school senior year that I met a girl named Barbara Jo Rost. She had moved, reluctantly, from Cleveland to Baltimore during the summer of 1965. Barb was little Miss Everything in the Avon Lake, Ohio high school that she attended. What a terrible thing to have to move to a new school in your senior year! But her dad, Richard, worked in the Chesapeake & Ohio (C&O) Purchasing Department and had been transferred to Baltimore as the result of the merger of the C&O and B&O Railroads into the Chessie System. COAL TRANSPORTER | 45

Reflections / Jerry Wess continued

A CARLOAD OF TALENT – The 16th C&O and B&O management training group is shown at Camden Station in Baltimore, as they got a close look at new C&O/B&O freight cars, including this Hi-Cube car. The trainees (from left) are: Stephen Farrar III, Virginia Commonwealth University; Robert Bowling, East Tennessee State; Darryl Houseman, University of Maryland; Frank Fowler, Jr., Penn Morton College; Maurice Lazenby III, Gettysburg College; Jerome A, Wess, University of Maryland; Richard Huffman, University of Toledo; Joseph Audia, Jr., Youngstown State University; Thomas Heiber, University of Toledo; Stuart Stigall, Virginia Commonwealth University; Brett Tyler, Morgan State College and Emory Whittington, University of Maryland. Barb and I dated throughout our senior year. Barb’s “round town” car was a ’65 Ford Mustang convertible; mine a ’63 Corvair two door. After high school, we went off to college but kept seeing each other. I worked summers as a vacation relief clerk for the Chessie System. Barb’s Dad helped me get the position. Mainly, I worked in the Central Mail Room. It was a fun job. I would unload “train” mail from passenger trains in both Camden Station in Baltimore, and from Union Station in Washington, DC. When not unloading mail from trains, I was sorting it in the mail room, and delivering to the various administrative departments scattered around Baltimore. Much to the dismay of our parents, at the 46 | COAL TRANSPORTER

end of our junior year in college, Barb and I got married. We lived our senior year in married student housing at the University of Maryland in College Park.

This is the Life

Barb received her Associate of Arts degree. Because we were so poor, Barb went to work full time while I finished up at U of M. Our apartment rent was $90 a month! With Barb working full time and me part time, our weekly bring home pay was $100. We lived life to its fullest without a worry in the world. For we all know that when you are 22, you are invincible! We spent every spare dollar that we had on concerts, movies, and pizza.

I received a BS in Transportation Economics in June of 1970. After graduation, Barb and I were anxious to get out in the working world, and start making a better income. Richard Nixon was President, and while the Vietnam War was starting to wind down, many of my college classmates were entering the military because of their birthday draft “number” in the first ever lottery. I was thrilled to be selected to join the one-year Management Training Program at Chessie System Railroads. Along with eleven other recent college graduates from across the US, I started my career on July 1, 1970. Our Management Training Group was headquartered in Baltimore, but we

were constantly traveling the twenty-two state Chessie network mostly by train. The group spent time in each department; some being at headquarters, but a lot of time was spent with the Transportation, Mechanical, and Engineering groups out on the operating divisions. Many of us were newlyweds, but we were never at home. So, we reacted by acting on the road like a bunch of crazy college boys. What a year it was!!! We had some good times and fortunately none of us got fired. What about our 1970 salary you ask? It was a whopping $685 a month. The dress code included wearing a coat and a tie every day. I had one blue blazer, and one suit that saw a lot of use that first year. At the end of the Training Program I selected a position in the Finance Group as a Cost Analyst in the Cost Research Department. We received a thirty-two percent pay raise, but still made less than a chief clerk. For the next twenty-two years, my career trajectory was continuously upward. I spent time in departments ranging from Accounting to Freight Damage Prevention to Merchandise Sales and Marketing, Coal, and Operations. One of my favorite jobs came in 1980 after my graduation from Baldwin Wallace’s MBA Program in Cleveland. I was named a manager that year -Manager of Coal, Coke,

Chris, Tom, and Ryan after finishing the Marine Corp. Marathon in Washington, DC in the Fall of 2001

HIGH COUNTRY RAILCAR

From left: Pete and Dorothy Wess, Chris, Ryan, Barb, Claire and Dick Rost (Barb’s parents), Tom, and the family Lab, Molly and Iron Ore Forecasting - a real swami of the carload forecasting models. Now the Chessie System was evolving, like many competing railroads, into a much more complex and larger operating company. The management structures were constantly questioned, and with this, came changes in corporate headquarters. Also, Chessie merged with the Seaboard Coast Line and a new corporate name “CSX” was originated. All this change was somewhat unsettling, but we continued to tolerate the changes in structure and location of our jobs. I was named a “Corporate Master” by CSX, and taught (as an extra job) the quality improvement process to departments throughout the Company. But the announcement to move to Jacksonville was the one that just about ruined my marriage.

Family is the Spice of Life

Being the parents of three growing boys Barb and I decided that after twenty-two years of railroading it was time to change careers and settle down. We had no idea just how adaptable and flexible we were after making that decision. The step away from CSX came with a new lofty title of Vice President. The demands were great as I then held this title with International Trading Company, GE Railcar, and Mitsui Capital over the next twelve years of my career. And despite our desire to stay put in one place, we were constantly on the move. We moved from Baltimore to Chicago, then to Des Moines, and later back to Baltimore.

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COAL TRANSPORTER | 47

Reflections / Jerry Wess continued

Kendall, Georgia, Kelsey, Danny, and Ellie behind a â&#x20AC;&#x153;gatorâ&#x20AC;? at Valley View Farms near their grandparents Monkton home

These moves came after we had also moved to Cleveland, and then back to Baltimore during the Chessie System years. After leaving the railroad I was fortunate to always stay close to the industry. All my post CSX positions were linked to railroad activity. I was involved mostly with leasing various types of railcars to businesses that haul a variety of commodities by rail. Because of all the change that comes with moving, our three boys grew up very aware of the need to adapt to new environments. Chris, 45; Tom, 43; and Ryan, 38; are very successful in their respective careers, and good dads to our four granddaughters and one grandson. Ellie is our oldest at 15, and is entering 10th grade in the Princeton high school system. She excels at volleyball, and plays the clarinet in the Greater Princeton Youth Orchestra. Her sister, Georgia is 12, and has interests that range from shot put, horseback riding, dance, and baking. Both girls are trying many new things as they get older. In Hershey, our middle son Tom is raising Kendall, 10; Danny, 8; and Kelsey, 6. His kids are involved in many sports activities, and we are back, again, sitting and cheering in the bleachers. They spend a good portion of their summers on the beach in Cape May, New Jersey. Ryan, who graduated from The University of Wyoming, lives in Denver. He is the cross-country coach for Englewood 48 | COAL TRANSPORTER

High School and an ultra-marathoner in his spare time. Last month he qualified for the 2018 100-mile ultra-marathon in Leadville, Colorado. It takes over 24 hours of continuous running to complete!

Life as a Fuel Buyer

Barb and I returned to Baltimore in 2004. I became the Chief Transportation Officer for the Exelon fossil fueled power plants in the Midwest. My initial responsibility was the fuel supply for two baseload power plants; Kincaid Station in Pawnee, IL, and State Line near Chicago. Later, I would also ultimately have responsibility for three Constellation plants in the Baltimore area. Annual coal shipments from eastern and western coal mines approached 10 million tons. It was a fun job! This is where I spent the final twelve years of my career. It was during this time that I joined the NCTA Board and later became Treasurer and eventually President. My time working directly with Tom (aka Coal Tar the Magnificent) Canter, Pat Scherzinger, Melinda Canter, and fellow Board

Jerry and Tom enjoying an evening at a restaurant in Washington, DC during an annual NCTA Board visit

members was very rewarding, and I miss being affiliated with NCTA. On March 31, 2016, I retired from Exelon Generation. I was the last Fuels Department employee still standing. The Washington led EPA assault on coal combined with cheap and now overly abundant natural gas, and subsidized renewable energy made it an easy economic decision for Exelon to exit the fossil generated electric business. I never thought that I would end my career by being declared a person with an obsolete skill set. But it happened! It is fortunate for me that coal based employment provided a great income for basically my entire working career. As I look back, if I had to choose again, I would again select a transportation career. It is still one where people solve challenges by working with each other.

No Grinches in this family Christmas 2015

The Gift of Life

The last fourteen months since I retired have been anything but typical. On April 26, 2016, twenty-six days into retirement, I entered Johns Hopkins Hospital and became a Living Organ Donor. Barb had a genetic kidney disease, and her kidneys were ready to fail. Her only choice was dialysis, or finding a new compatible kidney. I went through very involved testing, and despite not being a “perfect” match, the team at Hopkins said that they had the expertise to make an incompatible transplant work for us. Hopkins is only one of three hospitals in the US that can perform this procedure. Was it just luck, or a miracle that we had returned to the Baltimore area twelve years ago? We are both recovered now, after a year filled with many post-transplant challenges. For me being a living organ donor has been more fulfilling than anything that I accomplished during a forty-sixyear professional career. As part of my effort to pay it forward, I recently was named to the Board of Directors for Transplant Recipients International Organization (TRIO) Maryland. You can learn more and register today to be an organ, eye, and tissue donor at RegisterMe.org I will end my story by telling you that we are now starting fourteen months post retirement to do the things that most retirees start doing on day one. Such pleasures as traveling with no vacation restrictions, seeing the grand kids on a week day, or going to the beach anytime we feel like it are in our sights. Trips to Maine and Williamsburg are on the top of our fall list. Next winter we plan to spend time in Naples, FL. And next summer... who knows??? We do not want to ever take for granted the extended life that organ transplantation has given to us as a couple. Quite simply we are excited to see what tomorrow brings. Best wishes for continued success to each of you. s Take care, Jerry

DONATE LIFE AMERICA Donate Life America is a not-for-profit alliance of national organizations and the Donate Life State Teams all across the United States. It is committed to increasing the number of donated organs, eyes and tissue available to save and heal lives, while continuing to develop a culture where donation is embraced as a fundamental human responsibility. Donate Life America manages and promotes the national brand for donation, Donate LifeSM, and operates the National Donate Life Registry (RegisterMe.org). It also assists Donate Life State Teams in facilitating high performing donor registries; developing and executing effective multi-media donor education programs; and inspiring the American public to register now as organ, eye, and tissue donors. What you can do: • Register to be a Donor • Consider Being a Living Donor • Financially Support the Donate Life Effort • Share Your Decision to Register with Others • Educate Others • Protect Your Health 95% of Americans are in favor of being a donor but only 54% are registered. COAL TRANSPORTER | 49

NCTA CALENDAR

OF EVENTS 2017

September 18th-20th, 2017 Forty-Third Annual Business Meeting and Conference Grand Hyatt, Denver, Colorado December 22nd, 2017 Receipt at NCTA office of all re-certification forms for the UMLER Fee Waiver for Calendar Year 2018

2018

April 2018 Spring General Conference Location TBD June 11th-13th, 2018 Operations and Maintenance Conference Marriott at Vanderbilt University, Nashville, Tennessee July 10th, 2018 Advertising and Editorial Deadline for Issue 2, 2018 of the Coal Transporter Magazine Summer/Fall 2018 NCTA Scholarship Awards David Laffere Scholarship Three Member’s Children Scholarships September 10th-12th, 2018 Forty-Fourth Annual Business Meeting and Conference Omni Interlocken Resort, Broomfield, Colorado

January 31st, 2018 Payment Due for 2018 Annual Membership Fees February 2nd, 2018 Advertising and Editorial Deadline for Issue 1, 2018 of the Coal Transporter Magazine

NCTA WELCOMES ITS NEWEST MEMBER!

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 the 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: www.nationalcoaltransportation.org/ index.php/membership/current-members 50 | COAL TRANSPORTER

BENEFITS OF MEMBERSHIP • Focus on Coal Transportation • Conferences with Character • Logistics and Planning Subcommittees • Operations and Maintenance Subcommittee • Commitment to Education • Policy Insights • Publications

NCTA Membership List A. Stucki Company AKJ | NALCO Alliant Energy Alltranstek LLC Alpha Products, Inc. Ameren Missouri American Electric Power Amsted Rail Appalachian Railcar Services Arch Coal Sales, Inc. Arizona Electric Power Coop. Arizona Public Service Arkansas Electric Cooperative Associated Electric Power Cooperative Associated Terminals LLC Aventics Basin Electric Power Coop. Blackhawk Mining, LLC Bowie Resource Partners CDG Engineers, Architects, Planners CIT Rail City Utilities of Springfield Cleco Cloud Peak Energy Colorado Springs Utilities CONSOL Energy Inc. Consumers Energy Company Contura Coal Sales, LLC 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 The Empire District Electric Company Entergy Services, Inc. Exponent, Inc. First Union Rail FirstEnergy Florida Power & Light Co. FreightCar America GATX GE Transportation Grand River Dam Authority Greenbrier Companies Hall St. Coal Terminal Hendricks River Logistics High Country Railcar IHS - Energy Publishing, LLC iIRX Impala Terminals Burnside Kansas City Power & Light KCBX Terminals Co. Kiewit Mining Group Inc. Kinder Morgan Terminals Levin Richmond Terminal Lexair, Inc. LG&E and KU Energy Lighthouse Resources, Inc.

Locomotive Service, Inc. Lower Colorado River Authority Luminant Energy Maxeefish LLC MCRL Coal Car Topping MEAG Power Metro East Industries, Inc. MidAmerican Energy Co. 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 Svc. 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

RGCX Railcar Leasing RungePincockMinarco Salt River Project Sandy Creek Energy Station Seminole Electric Cooperative Shur-Co, LLC SMBC Rail Services LLC Southern Company Operations Standard Steel Strato, Inc. T Parker Host Tampa Electric Company Tennessee Valley Authority Three Rivers Marine & Rail Terminals The Timken Company Transportation and Logistics Advisors, LLC Transportation Services Inc. TrinityRail Tri-State G&T Association TUCO/NexGen Coal Services Tucson Electric Power Co. Wabtec Corporation WEC Energy Group Westar Energy Western Farmers Electric Western Fuels Association, Inc. Westmoreland Coal Sales Co. WestRail a Division of Aero Transportation Products Xcel Energy Xcoal Energy & Resources

Index to Advertisers AllTranstek, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Alpha Products Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Appalachian Railcar Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A. Stucki Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Cloud Peak Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Crown Products & Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Ecofab Australasia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 GE Water & Process Technologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 High Country Railcar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Lexair, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front Cover Mitsui Rail Capital, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

NexGen Coal Services, Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 PRB Coal Userâ&#x20AC;&#x2122;s Group. . . . . . . . . . . . . . . . . . . . . . . . . . Outside Back Cover Railroad Friction Products Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Slover & Loftus LLP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 S&P Global Platts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Strato, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Thompson Hine, LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Western Fuels Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Westmoreland Coal Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 WestRail a Division of Aero Transportation Products. . . . . . . . . . . . . . . . . 33 Xcoal Energy & Resources . . . . . . . . . . . . . . . . . . . . . . . . Inside Back Cover

COAL TRANSPORTER | 51

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: Hi Pete! How are you doing? PETE: I’m good Ann. I was just recalling the conversation we had at this time last year and realize how smart you really are. ANN: Well, that’s sweet of you to say, but what did I say that was so smart. PETE: You said, “I really don’t know what the future brings, but I do know it’s never what you think it is going to be.” And BAM! Hillary loses the election and now it’s nonstop TDS 24-7. No one else I know but you predicted that. ANN: I think we were discussing the California renewable market and fuel prices in general, not the election. But from you, I’ll take any compliment that I can get. By the way, I’ve heard of PTSD but what the heck is TDS? You know I’m not good with acronyms. PETE: It’s Trump Derangement Symptom. ANN: Oh, that makes sense. Nothing like a fire that the man himself likes to toss gasoline on. PETE: I always follow POTUS on Twitter no matter who is in office. Lately, I’ve been getting emails from Twitter with the subject line “The White House’s Tweet was featured in the news.” Hilarious. Earth to Twitter, THEY ARE ALL IN THE NEWS!! ANN: Enough about politics. Let’s talk about energy production and helping to keep coal-fired generation in the mix. PETE: Fine. I’ll keep my snarky comments on Obama’s luxury vacations to myself. ANN: Things have improved but the outlook still looks bleak for coal given some of the renewable mandates still coming down at the state level. PETE: It is easy for any politician to set goalposts 20 years out. They won’t be in office when there are rolling blackouts and utility 52 | COAL TRANSPORTER

bills skyrocket. By that time they’ll all be hanging out on private islands and on million dollar yachts with the rest of the defenders of the “little guy”. ANN: Pete, you promised… PETE: Sorry, it’s just that I hate hypocrisy. ANN: Under pressure from environmental groups, some states will continue to go all in on renewables, touting among other things job creation. PETE: Riddle me this Ann. On this whole jobs argument, isn’t that one that the coal industry should be happy to lose? If the renewable industry says it employs twice as many people as the coal industry for the same amount of power, aren’t we better off with half those people to do something else productive? ANN: Good point. My sister went to China and when it snowed, the street was filled with people with brooms (lousy ones according to her) cleaning the snow off for traffic. If they had a snowplow, those people could have been making iPhones or Nikes instead. The economy actually grows and everyone wins. I guess the coal community should celebrate its efficiency. PETE: Damn straight. Don’t forget about the grid reliability and generation on demand that coal-fired plants offer. ANN: You bet! At their Fall Conference, the NCTA will explore the role that coal continues to play throughout the world as the primary fuel driving economic growth. I hope you plan on being there. You could learn something. PETE: I sure do plan on being in Denver. And, I have a good acronym joke to help you hone your skills. Ask me about it then. ANN: (Major eye-roll) Can’t wait. s

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

+1 (724) 520-1630 or xcoal@xcoal.com

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