NCTA Issue 2, 2013 by National Coal Transportation Association

ISSUE 2 | 2013

Building a Social Media Network that Supports Coal Member Profile:

Constellation Cooper/Consolidated 10th Anniversary

Looking to lower your overall operating costs?

Is the big decision to Repair or Replace?

door operating systems? Do you have cars that are operating sporadically or not at all? Are you tired of costly spill cleanups due to vandalism or some other inadvertent operation of your doors? If so, you should consider replacing your door operating valves with new state-of-the-art Lexair Second Generation Railcar Valves. From an with our newer, improved design. Changing to these new valves with all their great features helps assure correct and proper operation of your cars. This action will assist you in lowering your overall costs and help you keep your “cost-per-mile” of operation as low as possible.

Second Generation Valve Features:

• Main valve element is based on our rugged “sliding shoe” construction – the same trouble-free design that has been used in our railcar valves for over two decades. • A sequenced mechanical lock maintains the valve in the “door close” position regardless of outside forces or vibration. • The locking feature is released only when an electrical or manual signal to shift has been received. • A visual indicator is operated via the lock mechanism that clearly shows whether the valve is in the “door close” position with the valve element locked in place or if the valve is in the unlocked or “door open” position. • Because they are mechanically locked in the “door close” position, the valves may be mounted in any position or orientation - the valve element does not have to be perpendicular to the rails. • valve position status. • The modular design allows the main valve unit to be removed/replaced in minutes without disturbing the electrical connection or plumbing when repair due to age or service conditions becomes necessary. • Self closing solenoid cover/junction box can be locked to prevent unauthorized access to manual overrides. • Our patented “Safety Check” technology (U.S. Patents 7,093,455 and 7,328,661) is available as a “no-charge” option. • Innovative lock/indicator features latest Lexair, Inc. technology (U.S. Patents 8,038,231 and 8,256,850).

Typical Before Installation Photos

Typical After Installation Photos

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

Contents

ISSUE 2 | 2013

4 Guest Columnist 8

PUBLISHED BY: National Coal Transportation Association 4 W. Meadow Lark Lane Suite 100 Littleton, CO 80127-5718 Phone: 303-979-2798 Fax: 303-973-1848 www.nationalcoaltransportation.org Editor: Pat Scherzinger Phone: 303-993-7172 scherzinger@ nationalcoaltransportation.org Production By: Suckerpunch Creative Inc. info@suckerpunch.ca www.suckerpunch.ca ©2013 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

DEPARTMENTS

Meet Your Board: Eric Linn

Member Profile: Constellation

Message from the NCTA President – Jerry Wess

The AEP Cook Terminal

Drowning in Regulation

Message from the NCTA Executive Director – Tom Canter

Monitoring Coal Cars for Planned Maintenance

NCTA Welcomes A New Member

NCTA Committee Updates

AAR Interchange Manual - Rule 3

Cooper/Consolidated 10th Anniversary

Calendar of Events – 2014 Dates Added!

5 1

NCTA Out and About

Members Sound Off

Building a Social Media Network that Supports Coal

View from the Caboose

Membership List

STB Update

Index to Advertisers

Reflections: Bruce Miller

CONFERENCES 14

Thirty-Ninth Annual Business Meeting & Conference Brown Palace Hotel, Denver, Colorado

Spring General Conference Recap Tucson, Arizona, April 14-17, 2013

Operations & Maintenance Conference Wrap-Up Kansas City, Missouri, June 10-12, 2013 COAL TRANSPORTER | 1

President’s Report / Jerry Wess

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

Electricity Capacity AuctionAre you aware of how this event impacts the future supply sources for electric power generation?

2 | COAL TRANSPORTER

of Delaware, District of Columbia, leading up to the delivery date “balancKentucky, Illinois, Indiana, Maryland, ing” auctions are held where bidders can Michigan, New Jersey, North Carolina, buy or sell their commitments. Known Ohio, Pennsylvania, Tennessee, Virginia, as “Incremental Auctions,” these auctions and West Virginia. PJM acts as a neutral, occur in case a supply resource such as independent party. It operates a competia power plant cannot meet its committive wholesale electricity market, and ment, and needs to purchase replacement manages the high voltage electricity grid capacity from another resource. to ensure reliability to more than 60 milSo, what is TODAY’S impact? In lion people. a market environment where $4 natural Now, back to the auction- In the gas prices and low economic growth limit Genterritory Technology Costs Energy Market Revenue Required Capacity Payment PJM the capacity market, power plant profit margins, capacity payCCGT (no cap-ex) 53.83 267.49 0 known as the Reliability Pricing Model ments are essential to cover the relatively CCGT (w/ cap-ex) 67.2875 267.49 0 high fixed costs of running a coal plant (RPM), contains an auction that occurs CT (no cap-ex) 39.52 84.13 0 every year with a delivery date that is in PJM. Many coal plants have been CT (w/ cap-ex) 49.4 84.13 capacity factors in 0 running at reduced three years away. It is known as the Base recent years, 194.69 further increasing the need Residual Auction. During each 223.1 year Coal Plant (no cap-ex) 28.41 Coal Plant (w/ cap-ex) 278.875 194.69 84.185 140 Capacity Price $/MW-day)

n the U.S. there is a difference between energy and capacity. Power plants are compensated for both because each is important to maintain the electrical system in different ways. What is the distinction? A power plant generates electricity that is used in your home and business- and it needs to be paid for that electricity. This is achieved in the energy marketplace. In these markets electricity is like any other commodity, it is bought wholesale and resold to consumers at retail prices. Some grid operators are utilizing capacity markets which provide compensation for direct investment a few months or years ahead of when electricity needs to be delivered. And why is this important? Power plants are expensive to build and maintain, and developing new generation to meet future energy needs is a lengthy and expensive process. It is hoped that auctions create long term price signals for the development of new, or investment in existing supply resources including generation. The basic idea is that supply resources such as power plants receive compensation for capacity, or the ability to meet electrical demand in the future. Let’s look at how these markets are managed in the PJM Interconnection. PJM is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts

120

Capacity Clearing Price vs. Cost

100 80 60 40 20 0 CCGT (no cap-ex)

CCGT (w/ cap-ex)

CT (no cap- CT (w/ cap- Coal Plant Coal Plant ex) ex) (no cap-ex) (w/ cap-ex)

Required Capacity Payment

West PJM Price

Notes: All numbers are in $/MW-day All numbers are illustrative All numbers can vary drastically based on actual plant specifics

East PJM Price

for this secondary revenue stream to coal plant owners. As mentioned earlier in this article, that revenue stream in PJM comes in the form of capacity payments set each spring for three years forward in the RPM auction. May 2013 was the latest auction for capacity available in the 2016/17 planning year, which runs June 1, 2016 to May 31, 2017, and resulted in a steep drop in capacity prices to less than $60/MW-day in the RTO and less than $120 in most of the PJM MidAtlantic region. Here is an illustration of how this works. Also, required spending on environmental controls to meet the EPA’s Mercury and Air Toxics rule (MATS) or other state limits, or both, imply spending on coal plants needs to increase. When coal plant operators sought to recover those costs in the capacity market, many found that other resources (imports, new plants) were undercutting their costs. In fact, roughly 10,000MW of coal plants did not clear the latest (2016/17) RPM auction. This volume of uncleared coal plants coupled with a decrease in coal plants that

have offered into RPM of ~10,000 MW shows a large volume of coal generators are unable to recover costs in the form of capacity revenues. At the Fall NCTA meeting in Denver we will be discussing how to cope with this matter, as well as the

impacts of President Obama’s Climate Action Plan introduced this past summer. I look forward to seeing you in Denver at the Brown Palace. s Best regards, Jerry

Source: PJM’s ‘2016/2017 Base Residual Auction Report

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

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Executive Director’s Message / Tom Canter

Introducing

Grandma Olson, Guest Columnist The Executive Director is pleased to have Grandma Olson as a guest columnist. Grandma is known for a savvy intellect, a sharp tongue, a commonsense approach to challenges, and a strawberry-rhubarb pie that is the favorite at all picnics. Grandma admits to many summers and harvests on the farm; however, as to her age, she will only say that she remembers the boys coming home at the end of World War II. She particularly remembers the handsome and very polite “Ole” Olson telling about experiences in the South Pacific. She and Ole were married in 1948 even though she was quite young. Together, they worked the farm to make an honest living, raised four strapping lads. The oldest son, Paul, was killed in Vietnam. Life has been good and life has been difficult at times, but she is most concerned about the present and the near future, and she desires to share her observations.

’m madder than a wet hen and I am not taking it anymore without making some noise! Ole and I retired in 2005 with a modest amount of savings and investments and reliance on Social Security and Medicare that have received our tax payments for so many years. Our second son, Victor, bought out the farm upon our retirement and we moved to a small place in town. Life was good until Ole passed away in 2008 shortly before the crash in the economy. My finances have been tough on a fixed income with no relief in sight. I am facing almost zero return on interest income from safe investments, and ever increasing costs for food, water, electricity, medical care, insurance, and gasoline. A major contributor to my financial struggle is government at all levels messing with the economy and mandating unworkable and inefficient energy and environmental regulations. I am

4 | COAL TRANSPORTER

having trouble seeing the difference between economic stimulus, central planning, picking economic and social winners and losers, and socialism. Is there a difference? Is an incompetent and biased government bureaucracy capable of mandating when I can turn on my air conditioner and stove, the car I should drive, which crops to plant and which are subsidized, the light bulb I must use, and how much of my taxes and utility bill must subsidize my neighbor’s solar system? During my lifetime, I don’t remember a period of so little hope to create real wealth and regain a robust economy for this nation. Amazingly, all of this government meddling is based on a sense of self-righteousness arising from climate change theory and computer modeling. The grandchildren tell me that it is “garbage in - garbage out” when it comes to computer modeling. My neighbor, Ethel, the retired librarian, receives The New

York Times by mail, and she noted at the coffee shop that this newspaper had to admit in a special report that the computer models have not predicted the 17 year plateau in global temperatures that the real measurements are showing. James Hanson, formerly of NASA, continues to make money with alarmism by stating that the computer model is not accurate only because the earth is cooler from burning more coal than anticipated (the China Syndrome) and that phenomenon is masking global warming. Now, I read 1984 along with my children and this statement is “doublethink”. Back on the farm, we considered this type of utterance the output of the south end of the bull when facing north.

Is an incompetent and biased government bureaucracy capable of mandating when I can turn on my air conditioner and stove, the car I should drive, which crops to plant and which are subsidized, the light bulb I must use, and how much of my taxes and utility bill must subsidize my neighbor’s solar system?

know the identity of the real Flat Earth Society members. All this with gasoline prices around $4.00 per gallon. • Electricity rates are rising, in part, because of subsidies and increased costs from using non-coal fuels for generation. • The participation rate of the population in the work force is at a generational low as good jobs are not being created. • Ethel informed us that Spain leads Europe in the percentage of subsidized renewable electricity generation (54%) and also leads in unemployment that is now near 27% with 60% unemployment for youth. Further, the utilities are losing money big time and the government can no longer afford the high level of subsidies. • Citizens need to be more active in promoting all sources of electricity but we should remind consumers that it is potentially disastrous to eliminate coal from the mix. Well, I need to take a batch of chocolate chip cookies out of the oven and will end here. Have a great and safe day bringing energy and wealth to North America and listen to your grandmother’s advice. s

Despite the facts, the President has decided to use Executive Orders to declare a war on the coal industry with EPA regulation as the primary weapon. If you protest and point out errors in the computer modeling results or point to natural climate variations, you will be considered a member of the “Flat Earth Society”. Currently, the governmental powers at all levels will not debate the science. It seems to me that we spent billions of dollars to build a reliable and low-cost electric generation and distribution system that we are now willing to essentially scrap for a less reliable and more expensive system. Meanwhile, the Chinese and Indians are eating our lunch by creating wealth and jobs through manufacturing while taking advantage of lower costs by using coal to generate electricity. I fail to see any commonsense in these actions and policies. These are some of my observations that I shared with the morning coffee group last week: • Food costs are going up because of transportation costs and the subsidies for farm products to produce energy thereby removing fertile land from food production. Ole would be really chapped over the fact that the U.S. is importing corn from Brazil and Argentina for animal feed on the East Coast while mandating coal be squeezed for ethanol in the Midwest. • Oil production is not being permitted on federal lands for political reasons and the Keystone pipeline will only be able to create jobs if it doesn’t increase CO2 production. I now

COAL TRANSPORTER | 5

Meet Your Board / Eric Linn

MEET YOUR BOARD Eric Linn

Eric Linn

Manager of Transportation and Logistics Alliance Energy Partners, L.P.

ric Linn is the Manager of Transportation and Logistics for Alliance Energy Partners headquartered in Tulsa, Oklahoma. In his current position, Eric encounters something new every day as his responsibilities include a wide range of activities across multiple transportation modes including truck, barge and rail. Alliance’s size has allowed Eric to gain a great deal of knowledge about the coal business as he has played successive roles in data analysis, contract administration, coal marketing, and now in transportation logistics in his 11 years with the company. “I really enjoy working for Alliance. It’s a great company. At Alliance and in the coal industry as a whole, relationships matter, and that’s what makes it fun.”

one, since he spent his college summers playing baseball. He played catcher, considered by many to be the most demanding position in baseball, both physically and mentally. In his sophomore year, the Sooner’s season long motto, “twenty-five guys pulling on the same rope”, helped them win the Division I National Championship. At the NCTA, Eric is currently serving as the association’s Secretary in his second year on the Board of Directors. In addition to the information he can obtain that directly impacts his job, he enjoys the face-to-face networking opportunities that the NCTA and other industry events provide. Like many others, Eric recognizes that the energy industry is a very personal and tight knit community. It also doesn’t hurt when he

“I really enjoy working for Alliance. It’s a great company. At Alliance and in the coal industry as a whole, relationships matter, and that’s what makes it fun.” He began his career in the energy industry just out of college, working as an Operations Support Manager for the Parker Drilling Company which provides advanced drilling solutions for the oil and gas industry. Eric declined an offer to relocate when Parker moved its headquarters from Tulsa to Houston in 2001, deciding instead to join Alliance. This experience however, left him with a real world perspective on the gas industry and now somewhat humorous memories of wishing for $2 gas. Eric attended the University of Oklahoma in Norman, Oklahoma graduating in 1996 with a degree in Business. While others may have kick-started their careers with a college internship in the energy business, Eric was really the luck

6 | COAL TRANSPORTER

has the chance to develop relationships during a round of golf, something he really enjoys but generally doesn’t have that much time to do. When he is not working, Eric and his wife Megan are having fun raising two lively daughters, eight-year-old Paige and six-year-old Maggie. The family enjoys the outdoors, spending time biking and swimming, traveling together and accompanying the girls on field trips as part of their education. When not out and about, there is always family game night to look forward to. Eric also serves on the finance committees and tackles other administrative tasks at the family’s church where relationships and community are again quintessential components. s

NCTA Member Profile / Constellation, an Exelon Company

Constellation Competition and Customers Driving Power Sector Innovation

8 | COAL TRANSPORTER

By: Joe Simmons, Vice President, Fuels & Environmental Trading

ike a freight line snaking its way through the hills and gorges of Appalachia to the Eastern seaboard’s shipping terminals, the U.S. power sector has experienced many twists and turns and ups and downs in recent years. In 2005, in the wake of Hurricane Katrina, natural gas prices, which drive the price of power, spiked to record highs. In 2008, credit markets collapsed. The nation—and much of the world— plunged into the Great Recession. In 2010, ambitious proposals to curb carbon emissions, which would have created a new environmental paradigm for the U.S. power sector, were shelved in Washington, D.C. Even industry veterans admitted to feeling whipsawed by the upheaval. But perhaps the most important development – one on few radar screens just five years ago – was the tapping of America’s vast natural gas reserves. Researchers have known of vast shale gas fields, chief among them the Marcellus Shale formation, for many years. But it took advanced hydraulic fracturing innovations to make the fields commercially viable and bring the massive scale of the shale gas opportunity into focus. With the advent of the shale gas boom and the economy still in recovery mode, natural gas prices tumbled. Wholesale power prices followed suit. Today, power prices remain in a trough. While most observers predict prices will rise, few analysts and industry experts are prepared to say when. Some even caution that flat prices may be the norm for years to come. Across the sector, the market tumult demanded that CEOs and their boards identify new growth strategies. For energy leaders Exelon and Constellation, two of the most successful merchant energy companies of the 2000s, a key objective was to get stronger

and more diversified. In March 2012, the two companies finalized their merger. The new Exelon is the nation’s largest competitive energy company with a presence in 47 states, Washington, D.C., and Canada. “The energy landscape is shifting at a pace we’ve never seen before,” Exelon President and CEO Chris Crane said in a recent speech. “North America has become one of the fastest-growing gas-producing regions in the world, and the U.S. and Canada have the lowest natural gas prices in the world – by a significant margin. “The harnessing of shale gas, advancements in technology, renewables and a focus on energy efficiency are transforming both how we use energy and how we produce it. We’re in the midst of nothing short of an energy boom in this country.” The Exelon-Constellation merger created a Fortune 150 company that is among the largest competitive power generators in the nation, with nearly 35,000 megawatts of owned capacity. Exelon boasts one of the nation’s clean-

      

est, lowest-cost generation fleets, including the largest U.S. nuclear fleet. Exelon also owns more than 3,000 megawatts of wind, solar, hydroelectric and landfill gas generating capacity. As Exelon’s competitive retail and wholesale energy business, Constellation matches Exelon’s massive generating capacity with a large and diverse base of customers. The company provides energy products and services to more

“We’re in the midst of nothing short of an energy boom in - Chris Crane this country.” than 100,000 business and public-sector customers and approximately 1 million residential customers across the U.S. and Canada. Headquartered in Baltimore, Constellation employs nearly 2,000. The company has major regional presences in Houston, Boston, Chicago, Louisville, New York City and Omaha.

Constellation has long been known in financial circles for its world-class energy trading and risk-management capabilities. “Exelon generates a lot of power, and Constellation is the leader in selling power at the wholesale and retail levels,” said Joe Nigro, a 26-year industry veteran recently named as Constellation’s CEO. “It made a tremendous amount of sense to combine these complementary businesses and create one integrated commercial platform. Beyond that, our presence across the energy value chain combined with our geographic diversity gives us a unique insight into the challenges facing our industry.”

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Across their diverse energy enterprise, Exelon and Constellation are committed to driving innovation and modernization. Here’s a glance of Constellation’s 2012 sales by the numbers: • Natural gas: 279 billion cubic feet delivered in open retail markets • Retail power: 87 terawatt-hours of peak load served • Load response: 1,336 megawatts of dispatchable load • Energy efficiency: 0.4 gigawatts conserved by customers • Solar: 126 megawatts of solar completed or under construction Exelon also owns three utilities – BGE in central Maryland, ComEd in northern Illinois and PECO in southeastern Pennsylvania. Together, they deliver electricity to more than 6.6 million customers and natural gas to more than 1.2 million customers. Across their diverse energy enterprise, Exelon and Constellation are committed to driving innovation and modernization. 10 | COAL TRANSPORTER

And the nation as a whole has work to do on that front. Consider this finding from a recent international report on infrastructure:

The World Economic Forum Global Competitiveness 2012 Report surveyed several thousand business leaders from 144 countries, and its findings are sobering. The United States ranked 25th out of 144 countries in infrastructure quality and 33rd out of 144 in quality of electricity supply. That puts the U.S. behind countries like Bosnia and Herzegovina, Spain, Korea, Saudi Arabia and many others. “If we are going to maintain our nation’s competitive edge, we must be global leaders when it comes to ensuring that our energy supply is as reliable as it is clean and affordable,” said Crane.

The Rise of Competitive Energy Markets Today’s energy revolution is being driven not just by technology and innovation but also by customers. “Historically, the relationship between energy provider and energy consumer was one-way and static,” said Mark Huston, president of Constellation’s retail unit. “A business or homeowner plugged in, and 30 days later got a bill from the local utility. Today, in the commercial and business sector, competitive electricity markets are dynamic, data-driven and interactive.” In today’s retail market, particularly for the largest industrial power users, dynamic means real time. Power usage is displayed on sophisticated dashboards. Data driven means large customers, and increasingly smaller ones, are crunching the numbers and becoming more strategic in how they think about energy costs and consumption.

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“They are making decisions based on price signals and market inputs...that’s smart business,” said Huston. Interactive means it is no longer a one-way relationship, where customers only receive a bill based on their last month’s usage. “What it comes down to is that in competitive markets customers are increasingly in the driver’s seat,” said Huston. In the power sector, this innovation is known as “retail choice.” It evolved from the principle that consumers should be able to shop for the electricity commodity that flows through transmission wires the same way they shop for telecom, cable or other goods and services. Buying electricity from a retail supplier is not as novel as it sounds. Retail choice has been available in the United Kingdom since the early 1990s. American business and residential consumers have long shopped for gasoline, natural gas and propane. Expanding choice and competition from natural gas to electricity supply was a natural evolution that took hold in many states in the late 1990s. Today, retail choice is most active in 15 states and the District of Columbia. The growth of the retail sector was a direct result of the success of wholesale markets in regions served by regional transmission organizations, such as PJM and MISO. These grid operators also serve as the market clearinghouses for wholesale transactions between power buyers and sellers, including generators and the largest power consumers, such as utilities, power buying co-ops and heavy industry. Business and commercial users were the first adopters of retail choice; they consume considerable amounts of power and therefore have the greatest potential to save through lower electricity bills. Industry-wide, the retail business has surged the past few years, with electricity supplied by U.S. retail providers now accounting for approximately 18 percent of the nation’s electricity load.

Constellation and Exelon Competitive Advantage in Coal Logistics As Exelon’s customer-facing business, Constellation is focused on competitive 12 | COAL TRANSPORTER

wholesale and retail markets and the growing opportunities in demand response, energy efficiency and renewables. But in response to increasing demand, the company is also planning a modest re-entry into coal transport, which was once a significant part of Constellation’s business. In 2005, Constellation Energy boasted nearly 12,000 MW of generation capacity, about 30 percent of which was coal fired. In 2006, the company delivered 26 million tons of coal in the U.S. and overseas. For a time, Constellation was a major coal supplier to the United Kingdom. The company exited the coal logistics sector after the 2008 credit collapse. As a condition of the ConstellationExelon merger, Exelon in 2012 divested Constellation’s Maryland-based coal fleet, which included the Brandon Shores, C.P. Crane and H.A. Wagner plants. Exelon itself once had a meaningful presence as well. As recently as 2012, Exelon’s Power Team moved annually 2 million tons of Eastern (NAAP) and South American coals to Eddystone and Cromby Stations in the Philadelphia area, and more than 4 million tons of PRB 8800 coal to Kincaid Station in southern Illinois. As the new commercial arm of Exelon, Constellation is planning business opportunities to re-enter the coal logistics sector. Constellation’s coal services desk is staffed with an unmatched level of experience. It has expertise in contracting with coal mines, railroads and terminals. Its capabilities include: leasing, storing, maintaining, subleasing and turning back railcars; leasing, sub-leasing, and storing barges; and chartering, sub-chartering and operating ocean-going vessels. The company’s fuel group’s experience spans the domestic and international coal and freight markets. The team has a comprehensive understanding of the impact coal quality and logistics can have on the operational costs at power plant facilities. Additionally, the team actively trades financial coal products in the OTC (API2, CSX, NYMEX and PRB) markets. Constellation’s core fuels team has decades of experience in the coal business. Team members also hold high-level positions in some of the most prestigious

coal associations in the United States. These include the president of the North Carolina Coal Institute, the president of the National Coal Transportation Association and the secretary/treasurer of the Board of National Weighing and Sampling Association. “This level of experience and the relationships our team has built provides customers with a reliable and efficient partner for supplying coal to their power plants,” said Norris Wright, Exelon’s manager of Coal, Oil and Environmental. “With this expertise we are actively searching the domestic and international marketplace for opportunities to partner with others and provide coal supply management services.”

Looking Ahead – A Focus on Smart Policies and Innovation Bill Gates recently said that “the one thing that is different today [in energy] is software, which changes the game.” In a recent speech to Midwestern manufacturers, Exelon CEO Chris Crane said having the proper policies in place is just as important as technology. “What message do I have for Washington? The first is our energy future looks better than we could have imagined 10 or 20 years ago. “The second is we are at a unique time in energy policy. Federal and state governments do not need to do anything to drive the transition to a clean energy economy. The energy markets have begun the transition already. “Constellation and Exelon continue to be the power sector’s leading advocates for open markets and that will continue. Competition is the key to innovation.” “Innovation is transforming how the industry produces, delivers and manages energy,” said Constellation CEO Nigro. “What revolutionary energy advancements lie ahead for homeowners, manufacturers and our nation? “Competition in energy markets certainly is one innovation and others are sure to follow.” At a time when the U.S. economy is still struggling, low-cost energy supply, competition and innovation are combining to create a meaningful silver lining for customers in the competitive U.S. power sector. s

NCTA 2013 Fall Conference / Denver, Colorado

NCTA 2013

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

he NCTA continues to offer “Conferences with Character” as it stages its 39th Annual Business Meeting and General Conference, September 16-18, 2013 at the Brown Palace Hotel and Spa in Denver, Colorado. The theme of this year’s conference is “The War on Coal: Fighting Back.” The entire coal industry continues to be under assault as the US blithely marches down the same path already proven to lead to economic disaster across Europe. This conference will supply many of the tools and techniques necessary to fight the misinformation, mendaciousness, and madness surrounding the assault on coal. The Soviet Union fell because they were forced to unnecessarily spend themselves into oblivion. Let us not suffer the same fate, particularly at our own hand. The 2013 Conference is an opportunity to learn the facts and explore the issues directly with knowledgeable executives, regulators, consultants, and industry leaders. NCTA always strives for a balanced agenda representing both sides of the issues. While you might not always agree with what you hear, you will leave with a well-rounded perspective. 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 $450.00 for those representing an NCTA member company and $585.00 for all other attendees when registering prior to August 29, 2013. Beginning August 30th, an additional $50 fee will apply. 14 | COAL TRANSPORTER

The registration fee includes access to presentation materials; entry to all sessions; the receptions on Monday and Tuesday evenings; continental breakfasts on Tuesday and Wednesday; and all refreshment breaks. Please consider pitching in to sponsor this event. Sponsorships are only $400 and can be paid in the conference registration process. The flyer sponsorship is $750 and includes a one-third page sponsor advertisement/acknowledgement. All sponsors will be recognized on the agenda, with banners at the event, and in the Coal Transporter magazine.

ACCOMMODATIONS

The historic four-star, four-diamond, Brown Palace Hotel and Spa is now part of the Marriott Autograph Collection. Opened every day since 1892, it has been a favorite hotel for Presidents, royalty, and celebrities. Nearly every U.S. president since Teddy Roosevelt has made the Brown home. The Brown has also been the hotel of choice for an extraordinary array of musicians; Snoop Dogg and Springsteen, the Beatles and Bacharach, Jewel and Diamond, McCartney and Metallica, Perlman and Pearl Jam, Norah Jones and Rolling Stones – The Brown has attracted the biggest names from every musical era and genre. While an historic hotel, the Brown Palace is set to accommodate the modern business traveler with each guest room featuring a 42-inch HDTV, Wi-Fi, iPod docking station and Keurig® coffee maker. The Brown Palace, located at 321 Seventeenth Street, is a block from the free 16th Street Mall shuttle that will take you to both ends of downtown.

RESERVATIONS: Telephone: 1-303-297-3111 800-321-2599

ROOM RATES PER DAY: $195.00/night Single/Double

A very limited number of rooms are also available at the adjoining Comfort Inn at a rate of $109/night. Please call the numbers about to reserve these rooms as well. The hotel cutoff date for the NCTA rate is August 29.

RECREATION

September is a great time to visit Colorado. The conference is a week later than usual; making it more attendees can catch the aspen trees changing from mellow green to stunning gold. Try the Peak-to-Peak Scenic & Historic Byway between Black Hawk and Estes Park or for a weekend adventure, head to Maroon Bells one of the most photographed peaks in America, located just outside the town of Aspen. The Rockies are in town on Monday and Tuesday evenings of the conference, facing off against the St. Louis Cardinals at Coors field. The Broncos are away at the NY Giants on Sunday, but it is easy enough to find a spot in the “beer triangle”1 for a morning round of golf followed by an afternoon of friendship and football. s

Monday, September 16 2:00pm – 6:00pm

NCTA Information Desk Open

3:00pm – 5:30 pm

NCTA Board of Directors Meeting

5:30pm – 7:00pm

Welcoming Reception

Tuesday, September 17 8:00am – 11:45am

General Session

11:45am – 1:00pm

Lunch by Individual Arrangement

1:00pm – 3:45pm

General Session

4:00pm – 4:30pm

NCTA Annual Business Meeting for Members

5:00pm – 6:30pm

Sponsor’s Reception

Wednesday, September 18 8:00am – 11:30am

General Session

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New Member Announcement

NCTA WELCOMES ITS NEWEST MEMBER!

he board of directors of the National Coal Transportation Association is pleased to announce that the application for membership in NCTA of the following coal industry participant was approved. They join NCTA’s existing member companies working every day through NCTA to foster the cooperation needed to resolve issues faced by coal consumers, coal producers, transporters, rail equipment manufacturers, and services companies.

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• Focus on Coal Transportation • Conferences with Character

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• Logistics and Planning Subcommittees

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Infrastructure / Cook Terminal

Cook Coal Terminal Moving Coal from Rail to River By: Dave Gambrel The system for moving rail coal to the river and beyond to AEP’s barge-served power plants consists of two components: Cook Coal Terminal and AEP River Operations, the AEP barge subsidiary. AEP’s projected coal procurement for 2013 consists of 41% Powder River Basin (PRB), 33% Northern Appalachian, 15% Central Appalachian, 8% Lignite, and 3% Illinois Basin. PRB coal, which is routed through Cook Terminal, will be divided between the coal-fired plants of AEP West (78%) and AEP East (21%). I toured the Cook Terminal in May of 2013 and worked with them to bring you the most accurate information possible. In order to complete the journey, I have also included a section on the river operations side of the business.

ust a few miles from downtown Metropolis, Illinois sits the super river terminal of American Electric Power (AEP). It is superior in many ways: it is the largest rail-to-river coal terminal; it is served by three major railroads (UP, CNIC, and BNSF); it can dump two coal trains simultaneously; it can dump two fully loaded unit trains and hold three empty trains; it operates its own rail car repair shop; it owns 1800 acres; and it serves one of the largest river-served power plants in the AEP fleet, Rockport. Rockport, a 1310 MW plant, is one of two coal-fired plants of AEP’s Indiana-Michigan subsidiary. Cook Terminal is located at Mile Point 947R on the Ohio River, near the intersection of Country Club Road and Highway 45. It is about 1.5 miles from the town of Metropolis. Since it

began operation in 1976 the terminal has trans-loaded over 350 million tons. It currently employs 80 people, and is a model citizen of the community. Its main customer, Rockport Power Plant is located at Mile Point 745R, 202 miles up the Ohio River in southern Indiana.

Rail Operation

Coal may be received at Cook Terminal from mines served by the Union Pacific (UP), the Burlington Northern Santa Fe (BNSF), or the Canadian National Illinois Central (CNIC). The terminal owns about 15 miles of track, including dual inbound tracks and triple outbound tracks. Four 135-car trains can be handled at any one time without blocking any nearby roads. Coal from Wyoming’s Southern Powder River Basin (PRB) is currently being delivered at a rate of about 12-13 million tons per year by UP. PRB coal is typically hauled in 135-car unit trains of 120 tons each, and is usually stockpiled upon arrival. About 2 million tons per year of Illinois Basin coal moves in 110-car trains of 120 tons each. This coal goes straight from the rail dumper to the barge load-out and is loaded on barges. Rail cars are dumped at one of the twin Metso dumpers,

Figure 2. AEPX unit train headed into the coal dumper at Cook Terminal. Figure 1. Cook Coal Terminal, Lower Ohio River Mile Point 947R. Coal trains approach from right center of photo and are unloaded at the dumper house feeding the conveyor at right center. Dumper house is on the edge of the wooded area. 20 | COAL TRANSPORTER

which are capable of dumping both bottom-dump and rotarydump cars. The rail unloading system can run at 6,000 tons per hour, running from the dumper house to the silos, stacking tubes or radial stacker. Each rotary dumper is capable of dumping about 30 cars per hour. The AEP rail car shop on the prop-

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erty is capable of accomplishing most repairs, including running maintenance and program work. AEP also owns and operates another repair shop in Alliance, Nebraska. Cook Terminal owns a switch engine to assist with loads, empties, and bad order cars. The AEP railroad shop on the property is capable of accomplishing most repairs short of frame straightening. The company also owns one complete repair shop in Alliance, Nebraska.

Stacking and Reclaiming Coal

Coal storage consists of two 12,000 ton silos, two stacking tubes, and one radial stacker (see Figure 3). AEP coal is stockpiled in the large stockpile or the silos for internal consumption. The radial stacker stockpile, which is adjacent to the main stockpile, stores coal for specific third parties. Equipment used for working the coal piles includes two 915-HP Caterpillar D-11 dozers, one 580-HP Caterpillar D-10 dozer, one Caterpillar D-6 dozer, and one Caterpillar Challenger rubber-tracked dozer. Coal miners may be astounded to know that each of the D-11â&#x20AC;&#x2122;s push coal blades of 95 cubic yard capacity that are 10 feet high by 26.8 feet wide. That is almost equal to the bucket capacity of a Caterpillar 8750 long-reach dragline. There are belt feeders under the silos and mass flow feeders under the stacking tubes, and two Stamler reclaim feeders under the radial stacker. When coal is reclaimed from the AEP stockpile area, the typical rate is 4,500 tons per hour. If coal is loaded direct from the rail dump to the barge loader, the rate is 5,000 tons per hour.

Barge Loading Operation

The barge loading operation is designed to maximize the loading rate of an entire tow of barges. Tow size is typically 15 barges if headed up the Ohio River, and 24 to 40 barges if headed down the Lower Mississippi River. From an elevated control room over the loading chutes, the barge loading operator conducts

Figure 3. Aerial View of Rail Dump House (Bottom Center) and Coal Stockpiles. a symphony of barge loading that is virtually continuous. The twin pant-leg chutes (light gray boxes in center of Figure 4) enable the loading operator to switch the coal stream from one barge to another without stopping, and without spilling coal into the water. s Dave Gambrel is a consultant and writer for the coal transportation business. The former director of transportation for Peabody Energy Company, he may be reached at bunkgambrel@ earthlink.net.

Figure 4. Barges Lined Up Under Loading Chutes at AEP Cook Coal Terminal. Barges next to the mooring cells are moved under the chutes until an entire row of barges has been loaded. They are then towed to a fleeting area and the next row of barges is pulled under the chutes. 22 | COAL TRANSPORTER

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AEP River Operations

By: Dave Gambrel

merican Electric Power’s (AEP’s) total domestic generating capacity is 40,167 MW, of which 25,725 MW is produced by twenty-eight coal and lignite plants. The company consumes approximately 65-70 million tons of coal annually. The coal shipped to plants in AEP West is shipped by railcar direct (74%) or conveyor belt (26%). Coal shipped to AEP East consists of rail/barge (24%), barge direct (38%), rail direct (18%), and other. About 83% of coal transported

to AEP plants is done in AEP-operated equipment. The company’s barge subsidiary, AEP River Operations, which is based in Chesterfield, Missouri, is a full service inland waterways carrier serving all the major U.S. rivers and tributaries, as well as the Gulf Coast coastal waterways. It also has operating centers in Lakin, WV; Paducah, KY; Convent, LA; Belle Chasse, LA and Mobile, LA. Its fleet consists of 3,012 hopper barges, of which 1635 are jumbo rakes, 1372 are jumbo boxes, and

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5 are superjumbo rakes. It also owns 68 towboats and 27 fleet and shuttle boats. Most of the barges would be classified as deep draft: 12% have 14’ hulls, 79% have 13’ hulls, and 9% have 12’ hulls. One of the main river movements of coal to an AEP power plant takes place between Cook Terminal and Rockport Power Plant, which is owned by AEP generating company Indiana-Michigan. PRB coal is unloaded from AEP-controlled trains to stockpiles at Cook terminal, then reclaimed and loaded on barges owned by AEP River Operations. From the loading cells at Cook Terminal barge tows of typically 15 barges will head upriver, first clearing Lock No. 52 at mile 938.9R, only 7.6 miles upstream. From there they will continue upstream through the Smithland, Myers, and Newburgh (IN) locks, passing the mouths of the Tennessee, Cumberland, and Green Rivers and finally passing the mammoth Alcoa plant at Yankeetown, Indiana before reaching the barge unloading facility at Rockport Power Plant near Rockport, Indiana. All the main locks are 1200’x 110’, and all the auxiliary locks are 600’x 110’. AEP’s Gulf operations include fleeting and shifting, midstream transfers, and barge cleaning and repair. In 2011 its tonnage hauled consisted of 57% coal & coke, 22% agricultural products, 12% steel and minerals, 7% limestone,

The AEP Fleeting area in Convent, Louisiana supports nearby midstreaming operations and also acts as a hub for Lower Mississippi River barge operations.

Barging Coal from River Terminal to Power Plant

and 2% other. In 2011 it hauled 44 million tons of coal/grain/ bulk commercially; another 30 million tons were captive to AEP plants. Much of its tonnage moves south to export via the Lower Mississippi. The International Marine Terminal, located in Plaquemines Parish, Louisiana has 12 million tons per year transfer capability, and 8 million tons per year mid-stream capability. AEP has a 33 percent ownership stake in the International Marine Terminal, a ship-loading terminal capable of loading Panamax and Capesize ocean vessels. About 65% of AEP’s current generating fleet capacity comes from coal generation. AEP anticipates coal capacity of 50% of the fleet by 2020 as they focus on changing their mix of fuels. Estimated capital spending of $4-$5 billion between now and 2020 will make the remaining coal plants compliant with current and proposed EPA regulations, including MATS, coal combustion residuals and 316(b) and effluent guidelines. MATS-related environmental investments will include DSI (dry sorbent injection) and SCR (selective catalytic reduction) at Rockport Plant and additional investments throughout the system. Plant retirements through 2016 are planned at Glen Lyn, Clinch River, Sporn, Kanawha River, Tanner’s Creek, Conesville, Muskingum River, Picway, Kammer, Beckjord, Big Sandy, Welsh, and Northeastern for a total “retirement package” of 5,124 MW. What effect will all these retirements have on barge transportation? Of all the plants mentioned above, the only ones that are barge-served are Sporn and Kanawha River in West Virginia, Tanner’s Creek in Indiana, and Beckjord in Ohio. Under the most recent company plans the two West Virginia plants will reduce about 1000 MW total; Tanner’s Creek will reduce by 495 MW, and Beckjord will reduce by 53 MW. A typical 500 MW coal plant burns about 1,430,000 tons of coal per year, so the Kanawha River plants and Beckjord may reduce their barge coal requirements by about 3 million tons per year of Appalachian coal. PRB coal, which has about 73% the calorific value of Appalachian coal, requires about 1,960,000 tons

of coal per year for a 500 MW plant. Closing the three coalburning units at Tanner’s Creek would reduce its coal requirements by about 1,415,000 tons per year of Appalachian coal, or 1,940,000 tons per year of PRB coal. The actual reduction would depend on the mix of coals they use. s

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NCTA 2013 Spring Conference / Recap

NCTA 2013 Spring Conference Westin La Paloma, Tucson, Arizona,

April 14-17, 2013

n industry that is foolishly accused of being behind every bit of bad weather, ought to get some credit when the weather is totally awesome as is was when the NCTA held its 2013 Spring Conference April 14-17 at the Westin La Paloma, in Tucson, Arizona. While it was snow boots and ski gloves in Denver (my family kept texting me pictures), it was shorts and shirtsleeves in Sonoran Desert foothills of the Santa Catalina Mountains (I texted the proof back)! The opening reception on Sunday provided early arrivals time to catch up and set up meetings for the week. Almost everyone migrated out to the massive patio for the mountain view. The golf event on Monday was held at the La Paloma Country Club’s Jack Nicklaus Signature Golf Course. One might feel bad for the cacti near the tee boxes with their golf ball “inlays.” It’s surprising that some enviro group doesn’t have their spines in a prickle about them. I guess no one wants to be a cactus hugger. The annual NCTA dinner was an outdoor barbeque under the stars. While it can get chilly in the desert when the sun goes down, on this night it was perfect from beginning to end. There was music and dancing as the group was entertained by the Bill Ganz Western Band. The agenda focused on moving coal (were you expecting something else?). Rail was covered by Larry Kaelin of the Indiana Railroad and George Duggan of the BNSF. David Ryan of St. James Stevedoring touched on river and midstream operations and Steve Borrell reported on his tour of the Richards Bay Terminal. Ambre Energy’s challenge in moving Western coal to Asian markets had David Carlile discussing both rail and water. It was the ladies that covered the technical side of the agenda with Lisa Stabler of TTCI presenting a research update and Marti Lenz, Electro-Motive Diesel, reporting on natural gas engines for mining equipment and locomotives. Popcorn and sodas were on hand for the special viewing of the documentary film FRACKNATION. Filmmaker Phelim McAleer was there to discuss the film, not as a supporter of fracking, but as advocate for the truth. The general public could use a good dose of truth about coal generation. Cason Carter, Alliance Coal, LLC gave an update on the public policy challenges coal still faces. Dr. Sean D. Dessureault of the University of Arizona presentation on the power of social media and the tools to listening and analyze what to many of us is just noise was eye opening. See his follow up article in this issue. The 2014 Spring Conference is scheduled for April 27-30, 2014 at the Hilton Head Marriott Resort in Hilton Head, South Carolina. s 26 | COAL TRANSPORTER

Amy Goodman, Steve Sharp, Duane and Donna Richards

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Alan Buckley, Gayle TenBrink, Emily Regis, John Ward, Mindy Watson-Ward, Sharon Robinson

Kevin Kasperbauer, Tom Kramer, Craig Romer, Brad Spratt

John Wendling and Allan Gould

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Drowning in Reg How Clean Water Act Changes Impact Coal

he U.S. Environmental Protection Agency (EPA) is currently developing new water regulations that could have big impacts on operators of coal-fired power plants. The two new rules amount to updates of the Clean Water Act (CWA): new Effluent Limitation Guidelines (ELGs), which aim to regulate the wastewater discharged from coal-burning facilities and an update to CWA Section 316(b), which focuses on impacts to fish and shellfish from cooling water intake structures. These new rules continue EPA’s regulatory trend of enforcing stricter standards on coal-fired power plants and updating regulations that have been on the books for decades. The new water regulations come on the heels of recent regulatory actions enforced under the Clean Air Act affecting the industry, including the Mercury and Air Toxics Standards, Regional Haze Rule - the Clean Air Interstate Rule, and Greenhouse Gas Emissions reporting and emissions requirements.

Effluent Limitation Guidelines

By: Steve Gruber, Burns & McDonnell Engineering Company

28 | COAL TRANSPORTER

The most recent regulatory change affecting coal-fired power plants is the proposed ELGs. On April 19 of this year, EPA published the proposed ELGs for the Steam Electric Power Generating Category under Section 423 of the CWA. The new ELGs are aimed primarily at regulating the levels of metals in wastewater that can be discharged from the approximately 500 coal-fired power plants in the U.S. that are larger than 50 megawatts. The proposed ELGs were updated in response to a lawsuit brought by environmental groups, which contended that EPA had not properly adhered to Section 304 of the CWA, which requires a periodic review of all ELGs and standards to determine whether revisions are warranted. In response, EPA commissioned a detailed study report in 2009 to determine if the effluent guidelines should be revised. The 2009 study focused on two sources responsible for the majority of pollutants currently discharged by steam electric power plants: 1) coal ash handling operations, and 2) wastewater from flue gas desulfurization (FGD) air pollution control systems. The newly proposed ELGs represent a major departure from the existing ELGs, which were last updated during the Reagan Administration. The 1982 guidelines were focused on settling out particulates rather than treating dissolved pollutants. According to the EPA, the 1982 standards “do not adequately address the toxic metals discharged to surface waters” from steam-powered generating facilities and updated regulation is

ulation needed because of technological advances developed over the last 30 years. The new ELGs establish requirements for seven different wastewater streams associated with steam electric power generation: 1. flue gas desulfurization (FGD) 2. fly ash 3. bottom ash 4. flue gas mercury control 5. combustion residual leachate from landfills and surface impoundments 6. non-chemical metal cleaning wastes 7. fuel gasification. Additionally, EPA is proposing to eliminate co-mingling of waste streams prior to discharge, which could require some facilities to change their existing waste stream management systems. The EPA presented eight different alternatives for regulating these discharges and settled on four preferred options that vary by the number of waste streams covered, the stringency of the controls, and the size of the plant’s units. The four options include combinations of waste stream controls ranging from numeric effluent limits (particularly for bioaccumulatory metals such as selenium, mercury, and arsenic) to “zero discharge” effluent limits. According to the EPA, the costs associated with complying with the proposed ELGs range from $185 million to $954 million and would reduce pollutant discharges by 0.47 billion to 2.62 billion pounds per year. The EPA considers these costs “economically achievable” and estimates that fewer than half the coal-fired plants in the country will incur costs under any of the four preferred options.

The public comment period for the proposed ELG regulations will be 60 days following the official release of the rule and the EPA must take final action on the rule by May 22, 2014. The EPA has provided some flexibility in meeting the compliance targets through the use of an incentive program. Under the proposed rule, National Pollutant Discharge Elimination System (NPDES) permits will have to be modified as early as May, 2017. However, if a facility agrees to more stringent controls, such as dewatering or capping and closing ash ponds, then an additional two years will be granted to achieve compliance. If a facility agrees to zero liquid discharge, an additional five years will be granted.

Section 316(b) Regulations

The other major regulation facing coal-fired power plants is focused on the intake of cooling water. Section 316(b) is the only section of the CWA that deals with potential impacts from the intake of water rather than discharge (as opposed to the regulatory cousin, Section 316(a), which provides a mechanism for obtaining variances from temperature water quality standards for cooling water discharges). Similar to the saga with the ELGs, 316(b) regulations have undergone an arduous journey over the past four decades. The EPA first promulgated Section 316(b) regulations in 1976 in an effort to address the injury and death that can occur when aquatic life is trapped on water intake screens (impinged) or sucked into plants’ cooling water systems (entrained). The rules were challenged by utilities and they were withdrawn by the EPA in 1979. In place of the national standards, local permitting authorities were allowed to establish the best technology available (BTA) for minimizing impingement and entrainment on a case by case basis enforced by NPDES COAL TRANSPORTER | 29

permits. The permitting process allowed operators to work with the permitting agency (usually the state) using a 1977 EPA guidance document to establish BTA for each plant. This system was in place for well over a decade until lawsuits by environmental groups in 1995 forced EPA into a consent decree that established a schedule to implement national Section 316(b) standards. EPA took a three-phased approach to the new standards: the Phase I Rule for new facilities (2001), the Phase II Rule for existing power plants with cooling water intake flows greater than 50 million gallons per day (mgd) (2004), and the Phase III Rule for offshore oil and gas facilities (2006). After their respective issuances, the Phase I and Phase II rules were challenged in the U.S. Court of Appeals for the Second District. The Phase I Rule was largely upheld in 2004 but the Court remanded many of the key portions of the Phase II Rule in early 2007. Later that year, EPA suspended the Phase II Rule. An important decision came in 2009 when the U.S. Supreme Court ruled that EPA may (but is not required to) balance costs and benefits in defining BTA for complying with the new standards. In 2010, the U.S. Court of Appeals for the Fifth District granted EPAs request to suspend the Phase III Rule. The EPA entered into another consent decree to proposed new regulations and published the current proposed rules for all existing facilities (Phase II/III) in April, 2011. The final rule is required to be published by November 4 of this year. The proposed rule covers over 1,200 existing facilities that withdraw two or more mgd of cooling water. In contrast to the proposed rule on ELGs, which is aimed at regulating coal-fired power plants, the

316(b) Rule also impacts other generating plants (natural gasfired plants, oil and nuclear facilities), as well as manufacturing facilities, refineries, or any other industry that uses cooling water as part of the production process. In establishing the new rule, EPA produced two notices of data availability (NODA) to help support formulation of the rule. The first NODA, released in May, 2012, requested information on the technical aspects of the proposed rule. The second NODA (June, 2012) requested comments on an outreach effort known as a “willingness to pay survey” – an economic modeling tool designed to evaluate the cost-benefit characteristics of the proposed rule. This randomized public mail survey was intended to justify the Phase II/III Rule by asking the public to put a value on reducing the losses of aquatic organisms as a result of changes to the intake structures. This method is a unique approach for the EPA and, if implemented, will mark the first time that a public opinion survey has been used to evaluate the necessity of a regulatory policy. Critics contend that the willingness to pay survey is a flawed approach that supplants public opinion for empirical studies. The extent to which the surveys will be used in establishing the final rule remains to be seen. In its current draft form, the proposed Phase II/III Rule has two basic components (plus a third component that applies only to new units at existing facilities). The first component would require larger facilities to conduct studies (coordinated with the permitting authority) to determine site-by-site which technology would be best for reducing entrainment mortality. These studies may include cost-benefit analyses. This approach

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gives plants some flexibility in implementing the new rules because it can be tailored to account for site-specific characteristics of a given plant rather than a one-size fits all approach. For example, over the numerous iterations of the draft rule, consideration was given to requiring cooling towers for all plants as BTA for minimizing entrainment and impingement impacts to aquatic life. This one-solution-for-all approach is clearly not feasible for many plants and fails to consider site-specific variables, such as land availability, proximity to residential neighborhoods, and economic considerations. The flexibility provided in the cost-benefit analysis allows for other, more realistic, options for reducing impacts, such as modified screens that prevent eggs and larvae from entering the intake system, or modified pumping regimes that allow for reduced flows during partial load operation or seasonally productive periods when egg and larval concentrations are at their peak. The second component of the proposed 316(b) Rule addresses fish impingement and establishes an upper limit on how many fish can be killed by the facility through water intake structures. This national, numeric Impingement Mortality (IM) Limit has been set at an 88% annual average survival rate (69% survival rate for any one month). The proposed IM Limits will likely be the most difficult hurdle in the proposed rule for power plants to comply with because they do not allow for the flexibility afforded by the cost-benefit analyses and deny facility operators the opportunity to evaluate BTA on a site-specific basis. The EPA provides two basic approaches for complying with this component of the rule: 1) Install active screen systems that will gently remove impinged aquatic life and return them to the receiving waters; or 2) Prevent impingement by achieving a

maximum through-screen velocity of no more than 0.5 feet per second. Both options will likely be very challenging for facility operators to achieve and in many, if not most, cases will require replacement of existing screens with modified travelling screens. This can be a costly alternative depending on the number of screens employed by the facility. The new rules affecting water intake and discharge from coal-fired power plants are the latest in a long line of regulations facing the coal industry. As the proposed rules are finalized and implemented, it is important to remember the next regulatory hurdle on the horizon: the proposed rule for the disposal of coal combustion residuals (CCR). CCRs could be classified as hazardous waste under the proposed rule, which could dramatically increase disposal costs. The EPA has stated that the proposed ELG rule will be coordinated with the CCR regulations to reduce potential conflicting regulatory requirements. This coordination is an important consideration because water and CCR products are often mixed and are part of the same process. Although the timeline for the CCR Rule is unclear, it is likely that the process to finalize the rule will be as contentious, impactful, and drawn out as those observed for ELGs and Section 316(b). Together, these new water and ash regulations, as well as air regulations, could represent a major investment of resources to install new equipment or processes necessary to stay in compliance. Some utilities may conclude it is more economical to close older coal-fired units or re-power them with natural gas. The costs and resource allocation process associated with compliance will no doubt be felt by the utility customers as well as all links in the supply chain, including the coal transportation industry. s

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NCTA COMMITTEE

UPDATES Eastern Logistics & Planning

The Eastern L&P Committee met on May 24, 2013 at the Embassy Suites Pittsburgh. This location was chosen as a convenient location for members, many of whom are within driving distance. Chairman Edwin Fisher (Arch Coal) and Vice-Chairman Laurel Klingensmith (FirstEnergy Solutions) put together a great education program and finished it up with an audience response session.

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.

and Ohio River systems. Stanley Johnson (SGS) presented the pros, cons, and techniques of the performing a draft survey as a means to determine the weight of coal being loaded into a vessel. Of course it seems like no meeting is complete without an update on the latest high cost, low benefit regulation coming out of the EPA. Mark Scaccia of First Energy gave the group not only an update on the MATS regulation, but also covered the various technologies that could potentially be used for compliance. While there was no tour offered in conjunction with this meeting, the topic was polled as part of the Audience Response exercise. The Norfolk Southern Pier 6 at Lambert’s Point garnered the highest level of interest. The group will work towards making this possible for their fall session in mid-October. s

Jim Jacobs and Jack Burgess at the EL&P Meeting On the rail side, updates were provided by Jack Burgess of CSX and Mark Hamilton of Norfolk Southern (NS). T. Allen Morgan presented the result of his work on the development with the geographic information system (GIS) for rail marketing agents at the NS. Mark Albertson, Wabtec, highlighted the development and characteristics of AC and DC Locomotives. On the water side, Richard Lockwood (US Army Corp Engineers) updated the group on conditions on the Mississippi

Next Eastern L&P Tour?

Operations and Maintenance

The Operations & Maintenance Committee just completed its annual conference in Kansas City, Missouri. It was a unique conference because it included tours of several member company manufacturing sites in the area. The committee is considering doing similar tours every four or five years. For complete details and photos, see the conference recap in this issue. John Casto (FirstEnergy Solutions), Carmen Sparks (Luminant), and Harry Mullins (Southern Company) were reelected to 3 year terms on the Executive Committee at the all member Round Table. Participation on any of the Operations and Maintenance subcommittees is open to all members. Contact John Casto to volunteer. The Railway Supply Institute (RSI) is offering a special registration rate of $150 for rail shippers attending Railway Interchange 2013, September 29 - October 2, 2013 in Indianapolis when registering prior to August 21. To obtain this special rate, railroad shippers must register for Railway Interchange 2013 via a special form available on RSI’s website at http://rsiweb.org/wp-content/uploads/2013/03/ri13-rsi-shipperregform.pdf. s 34 | COAL TRANSPORTER

Executive Committee members Dennis Wanless and Tom Sedarski after the conclusion of the annual Round Table.

NCTA COMMITTEE UPDATES Western Logistics & Planning

The Western Logistics & Planning Committee met at the Union Pacific Railroad’s offices in downtown Omaha on July 24th. Chairman Greg Key (Ameren) and Vice-Chairman Molly Mitchell (Peabody Energy) enjoyed having a lot of help from Beth Zeigler the Director of Trainset Logistics at the Union Pacific in planning this event. Beth made arrangements for a networking reception the evening before the meeting and also arranged for attendees to tour the Harriman Dispatching Center on Wednesday afternoon. The Harriman Dispatching Center is housed in a historic brick building Harriman Dispatching Center constructed in 1891 as a freight house. In the late 1980’s, the freight house was reborn as the nation’s first centralized dispatching center. Today, Will Cunningham of the BNSF. Kirk Estee let the group in on hundreds of UP employees staff this facility monitoring trains what made OPPD’s North Omaha Station the 2013 PRB Plant traverse 36,000 miles of rail every minute of every day. of the Year. Kelly Olenyik of Standard Laboratories was back, The meeting was opened by the Union Pacific’s Vice this time covering the fundamentals of bias and scale testing. President & General Manager of Energy, Doug Glass. Railroad The next meeting of the Western Logistics and Planning updates were provided by Beth Ziegler for the Union Pacific and Committee will be in February 2014 in Fort Worth, Texas. s

COAL TRANSPORTER | 35

Coal Car Maintenance Tips

By: John Felty, Amsted Rail-Ionx

Monitoring Coal Cars for Planned Maintenance and Increased Efficiency

oal shippers know how important it is to keep close tabs on fleet performance and railcar maintenance. They have one of the highest utilization rates in the rail industry, some of the lightest and most advanced car designs, and subject their cars to challenging physical processes such as heat sheds, rotary dumps, and shakers. Wayside monitoring has long been the go-to source of car health and logistics information. It is increasingly being augmented with cutting edge on-board asset monitoring systems that continually monitor specific railcars and provide both real-time information on car movements as well as in-depth predictive health metrics above and beyond what is available through wayside. Today’s businesses are leveraging on-board technology in new ways to optimize supply chains, capacity, reliability and drive cost savings. A logical extension is the application of on-board railcar monitoring technology, which has advanced significantly in recent years, driven in part by the availability of very low cost and low power components that have been developed for consumer electronics such as smart phones and tablet PC’s. The key to making this technology useful for rail shippers is ruggedizing the systems so that they can operate for years in the extreme temperatures, shock and vibration that coal cars experience on a daily basis. In order to ensure durability and compliance, products should be tested to AAR S-5702 and certified safe to operate in explosive gas or dust environments under UL 913 Edition 7 in North America, ATEX in Europe, and IECEx for the rest of the world. Also it is important that systems are self-powered, employ wireless sensors with logic at the sensor level and provide sophisticated data analysis not just simply supply data. Amsted Rail’s IONX division is one such innovator of on-board monitoring technology. The IONX event based system is built on a ruggedized hardware platform that includes a Communications Management Unit (CMU) that acts as the “brains” of the system. The CMU is capable of sending various types of status and condition messages to a control center. Optional Wireless Sensors Nodes (WSN) can be added to a system to report on the status or condition of an asset or its contents. Some examples include the monitoring of a gate, the temperature of a bearing, brake status, hard impacts to the asset and more. The microcontroller in each CMU can read or route messages from the WSNs to the CMU, change the sensor settings, analyze the information sent from all sensors in the

36 | COAL TRANSPORTER

Historically, the biggest challenge for on-board railcar monitoring has been system life due to the lack of power on freight cars. network and make inferences based on data from an asset. Each sensor node also contains a microcontroller for managing sensor settings, how the sensor is sampled, analysis of the data and when and what information to include in a message. The CMU and WSNs utilize a low-power mesh network topology to overcome multipath interference (caused by numerous reflections in and around freight cars). The mesh network can coexist with WiFi and Bluetooth and allows thousands of overlapping networks to operate securely in close proximity. The mesh network can be set-up with many sensors communicating with each other and the CMU. The mesh provides a sophisticated high reliability, secure ultralow power network which is constantly monitored and adjusted as conditions change. Historically, the biggest challenge for on-board railcar monitoring has been system life due to the lack of power on freight cars. The key to resolving this issue is driving power consumption to the lowest levels on the asset monitoring systems while at the same time increasing functionality. This can be achieved by employing low-power radios, optimizing the duty cycle of the microprocessors by keeping them in a sleep state as much as possible (while still being able to capture events from sensors), and implementing smart solutions that sense activity and adjust power use accordingly. Sensors can also be synchronized to work together in millisecond timeslots - minimizing the power draw on all components. On-board monitoring of car components can yield savings to coal shippers by enabling condition-based maintenance. For example, accelerometers can be employed to detect unusual car motions that indicate trucks or coupler systems may require service. Hand brake sensors report when railcars are moved with the hand brakes applied: a condition that can lead to premature wheel change-outs and excessive brake

wear. Sensors can validate that gates are closed and locked prior to departure, helping avoid costly spills and damage to facilities. By detecting these conditions earlier potential failures can be detected before problems occur, component life can be extended and car service can be performed at preferred repair shops and can prevent costly loss of use that can occur when railroads pull cars for service. With IONX platforms, the ability

ing is that data can be integrated with other event based systems, ERPs, 3PLs, or other business automation services helping coal shippers tie in mechanical and logistical information with other areas of their business. For example, actionable alerts can be created and used to create/update work-orders or notifications and automate other processes, saving time and improving efficiency. On-board systems also offer a

CHART 1 to immediately report car health issues is enhanced by utilizing software and processors that are embedded at the sensor level, saving power and reducing the need to transmit large volumes of data. These messages are forwarded to the CMU, where they are sent immediately or logged for later transmission depending on importance. Another level of interpretation is done by a cloud-based server infrastructure, which manages all messages sent to or from the CMU. All parts work together to keep power usage at the lowest possible level. With the ability to push logic down as far as the sensor, there are unlimited configuration opportunities that can be created to efficiently monitor any fleet in real-time. One benefit of on-board monitor-

number of logistics advantages. Coal shippers can receive dynamic ETA’s that are based on current railcar location information rather than historical CLM data, allowing coal plants to better manage their crews and plan their work schedules. Units can be configured to provide these “virtual AEI reports” at any location along a route, enhancing a shipper’s ability to understand why and where delays may occur on-route. Chart 1 shows concentric Geofences around a coal plant. As trains cross these boundaries dynamic ETAs will be provided to the appropriate personnel at the plant. Car locations can be coupled with the mine’s Manifest to provide a realtime window into inbound tonnage to plants as well as coal quality, helping COAL TRANSPORTER | 37

100 Years of Coal Handling Solutions

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plants better manage their operations as well as track the fulfillment of contractual obligations. The data provided can improve coal car utilization by knowing when doors or gates were accessed, and by sending alerts when the coal car is empty and ready for a new load or pickup. These systems also provide up-to-date reports on cars that are pulled out of service due to damage or misrouting. Having access to historical trip information across a fleet can allow for in-depth analysis of routing issues, bottlenecks, and seasonal variations so that fleets can be sized to better match requirements. Although on-board data has a number of advantages over wayside, the two technologies are considered complementary, and when combined can help provide additional insights into fleet health and performance. For example, wheel-drag events that are detected with on-board systems can be overlaid with wayside derived KIP readings to provide correlations between actual drag events and subsequent wheel degradation, as is shown in Chart 2. The eight colored lines represent a 14-day moving average of wheel KIPS from wayside systems.

CHART 2 The five vertical lines demonstrate where wheel drag events were detected and reported by an on-board monitoring system. Note the drag events are followed by an increase in wheel KIPS. Understanding both the causes and the outcomes of these events make it possible to identify the responsible party and take measures to reduce future events. On-board systems provide real opportunities to improve both fleet

performance and better control ongoing maintenance costs. Combining these systems with wayside data can enable even greater insights and savings. As velocity continues to increase and the pressures to improve efficiency and reduce ongoing costs grow, these solutions will likely become a more prevalent within the coal industry. If a shipper has a need for more information about remote assets, asset monitoring systems can help. s

As velocity continues to increase and the pressures to improve efficiency and reduce ongoing costs grow, these solutions will likely become a more prevalent within the coal industry.

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We welcome the opportunity to speak with you about your rail car leasing needs. For more information, contact us at 312-559-4800 or www.flagshiprail.com Copyright 2013 Flagship Rail Services, LLC. All rights reserved.

40 | COAL TRANSPORTER

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NCTA 2013 O&M Conference / Review

2013

Operations & Maintenance Conference

Kansas City, Missouri, June 10-12, 2013

CTA Operations & Maintenance Committee held its annual conference June 10-12, 2013, at the InterContinental at the Plaza in Kansas City, Missouri. Kansas City was specifically chosen this year to allow attendees to tour several nearby industrial facilities. Four tours were offered including inspection and reconditioning facilities for Timken, Wabtec, and New York Air Brake and the foundry operations at Griffin Wheel. They were all impressive tours. The NCTA is appreciative of all those hosting the tours and providing the necessary transportation. A special thank goes to Kansas City Power & Light for supplying extra hard hats for the tours. Following the opening night reception, groups scattered into the Plaza to eat at one of the more than two dozen restaurants including the appropriated named Coal Vines, new found favorite Jack Stack and the whimsical Tomfooleries. On their return to the InterContinental, many were surprised to find tigers (oh my!) in the bar. Fortunately they were Detroit Tigers, in town to play the Kansas City Royals, who were also staying at the hotel.

The conference included the annual private car owner roundtable that allows members to share best practices and seek technical guidance from fellow maintenance managers. The O&M technical review committee carries on this effort throughout the year as new issues arise. The formal program included presentations on a variety of technical topics from huck bolts to aluminum extrusions. Attendees and guests dined on Kansas City bar-b-que Tuesday evening in the hotelâ&#x20AC;&#x2122;s rooftop ballroom, high above the hustle and bustle of the plaza below. A jazz trio entertained the group as they lingered long after dinner. The Deer Creek Golf Club in nearby Overland Park, Kansas was home to the 2013 golf tournament. A pre-tournament lunch and post event reception provided ample time for networking. No one won the $5,000 hole-in-one prize sponsored by Strato, but everyone had fun giving it a shot. The 2014 Operations and Maintenance Conference will be held June 9-11, 2014 at the Grand Summit Resort, Park City, Utah. The Grand Summit is part of the Canyons Resort. s

Ben Wetherill

Kurt and Ann Stroer

Colleen Zbylut Gary Rogers and Levi Sweazy

42 | COAL TRANSPORTER

Beth Zeigler, Bruce Fogg, Jerry Rodriguez

Glenn Stoner and Kevin Waite wait to sign in for the Wabtec tour

Tom Canter

Kayla McBath and Jacob Boone

Chad and Ginger Hewitt

Jason Rea and Nathan Harbeck

2013 O&M Conference Sponsors

Pete Manyek

Dennis Wanless and Apryl Eby

Dan Hart and John Mayer

Troy and Lisa Smith

Platinum

Gold

Silver

FreightCar America / FreightCar Rail Services Progress Rail Services

Amsted Rail Standard Steel, LLC WestRail, Inc.

A. Stucki Company Alpha Products, Inc. Lexair, Inc. Mid America Car

Miner Enterprises New York Air Brake Strato TrinityRail COAL TRANSPORTER | 43

AAR Field Manual / Rule 3

Field Manual of the AAR Interchange Rules Rule 3 –

Requirements for the Testing of Air Brake Equipment By: Adam Boyd, iIRX

44 | COAL TRANSPORTER

ule 3 of the Field Manual of the AAR Interchange Rules describes the procedures and requirements for the testing of air brake equipment. Periodic testing of air brakes is required by both the FRA and the AAR, however, there are several additional reasons as to why an air brake test must be performed on a freight car. These include slid flat conditions on wheel sets, air brakes inoperative or cutting out on a car, thermal crack conditions on wheel plates, slack adjuster repair or renewal to name a few (refer to Chart A in Rule 3 of the AAR Field Manual for more information). Additionally, Rule 3 contains additional job codes for other brake system related tests. The most common reason for a single car air brake test to be performed is due to account of ‘over date’. Every car is ‘over date’ 12 months after its last air brake test was performed. This is true for new cars as well as old. When a car is ‘over date’ more than 57 months for older cars or 90 months from the built or rebuilt date for new cars, the car is placed on Maintenance Advisory 63 or Early Warning 5171. However, in reality, the cars are placed on advisory six months prior to the 57 or 90 month thresholds. When these cars are placed on the Early Warning or Maintenance Advisory, they are then subjected to a more extensive air brake test, as we will explore below. Additionally, Rule 3 also outlines Job Codes for slack adjuster, retaining valve, brake cylinder leakage test, as well as piston travel adjustment and empty/ load valve tests. Brake cylinder leakage tests, slack adjuster tests, retaining valve tests and empty/load valve tests are not permissible when also billing a Single Car Air Brake Test, (SCABT). The normal, standard air brake test is reported using Job Codes 1144 (4 port test, automatic), 1145 (manual) or 1146

(automatic). These are always reported using Condition Code 7, which means “Attention Required”. For normal over date testing (Why Made Code 21), the car must be on the repair track for some other reason – although that repair does not necessarily need to be a billable repair. So, if you see a repair card with a single over date SCABT on it, it is not necessarily incorrect – but it could be and should be questioned and investigated. The Early Warning or Maintenance Advisory Job Codes are 1139 (Manual), 1140 (Automatic), and 1142 (4 port automatic). These can only be reported with Why Made Code 13 and are only valid to be billed when a car is on either MA 63 or EW 5171. As of this writing, the combined cost of JC 1139 is over $271, while the cost of JC 1145 is $101.75. Reporting of SCABTs can take place through UMLER or via a web service integrated in modern fleet mechanical management systems. One of the more serious issues that car owners deal with presently is the accurate reporting of air brake tests done by internal or private repair shops. Oftentimes, shops may not report air brake tests or may think that they are reporting them but in actuality they are not. This can lead to erroneous testing, or inappropriate Early Warning Letter and/or Maintenance Advisory statuses on cars. Like many areas of managing the mechanical aspects of freight railcars, it is important to correlate all available data to determine if your equipment is operating in a safe and reliable way. In today’s high tech, digital environment, it is recommended that private car owners and fleet managers become more comfortable with the business intelligence and resultant superior, often cost-saving, decisions supplied by proper data management. s

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Cooper/Consolidated Partnership Celebrates 10th Anniversary with Twin Crane Christening By: Cooper/Consolidated

of their Cooper/Consolidated partnership,” he said. “What a ooper/Consolidated, a strategic partnership between fitting way to celebrate another partnership of two great comCooper/T. Smith Corporation and CGB Enterpanies than with the christening of two new cranes. I’m sure prises, Inc., celebrated its 10th anniversary and the these cranes will be the pride of the fleet.” christening of new twin National Oilwell Varco Angus R. Cooper III, Group President of Operations at (NOV) AmClyde™ model 28 floating cranes, the Cooper/T. Smith, said the “High Tide” was named to symbol“High Tide” and “Bob Frane,”at a May 13th ceremony on the ize the highest point of technology after three generations of Mississippi River, just outside the Hilton Riverside in New the AmClyde™ 28. Orleans. “These cranes are stronger and The ‘‘Bob Frane’’ was named in “These cranes are stronger and faster than anything their size,” Cooper honor of the late Robert E. ‘‘Bob’’ said. “They also remind us of the AlaFrane, founder of Consolidated Grain faster than anything their size.” bama Sports program: That winning is & Barge Company. ‘‘Bob was an in- Cooper about teamwork and never being satisnovator and visionary in the grain and fied. Our strategic partnership with barge industry.’’ said Scott Leininger, CGB is one reason we have been able Vice President of CGB. ‘‘Bob’s leaderto thrive for the last 10 years.’’ ship changed the way barge freight was The cranes’ new features drive purchased and sold. It allowed barges higher performance and enable greater to be merchandised the same way efficiency for the companies’ customcommodities were being traded. The ers, as well as increase safety, producpractice is utilized across the dry cargo tivity and facilitate training for embusiness to this day.’’ ployees. Reduced noise and emissions Peter Frane, Bob’s son, also spoke are beneficial to workers, residents and at the event: “I’d like to congratulate the environment. the people of both Cooper/T. Smith and CGB on the ten year anniversary

46 | COAL TRANSPORTER

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• Fully-functional dual operating stations in the cab and machine house • Crane controls moved into a pair of joysticks, reducing employee fatigue factor and increasing ease of training • Cab raised to give operators better vision over larger Post-Panamax vessels

The new features include: • Rated for 100,000 lbs. Gross Bucket Work and 310,000 lbs. Gross Hook Work • XQ2000 Caterpillar Gen-Set with a sound attenuated container, which reduces noise, and powers the crane’s AC Variable Frequency Drives • Equipped with Wintech CP35000 electric drive winches • No hydraulics of any kind, eliminating the necessity to transfer fluids and the potential for leaks, as well as reducing repair time and expense • 150 ft. of boom, with LED lights running the length and a camera at tip for increased visibility and safety • Additional safety cameras in the machine house and electrical room to confirm when workers are on deck • Capability to connect to onboard systems via WiFi, allowing monitoring of the crane, as well as tracking real-time production statistics and maintenance from remote locations • Improved swing gearboxes shave 10-20 seconds off swing time per cycle • Overspeed feature keeps loads moving within safe parameters • Two-cable load sharing system decreases wear on the cables, as well as reducing breakage 48 | COAL TRANSPORTER

American-fabricated and assembled, the new hydraulicsfree cranes are the result of safety, efficiency and environmentally-friendly features originally designed and tested in the recently fully refurbished “Marilyn G”, an AmClyde™ 28 tub-mounted stevedoring crane in the Cooper/Consolidated fleet originally built in 1982. “We started the Marilyn G’s refurbishment in November of 2010,” explained Wendell T. Landry, Vice President of Operations & Maintenance at Cooper/T. Smith. “We picked her because she has a twin, so all the changes we made to her we could turn around and duplicate without having to start over from the beginning.” With the proven success of the “Marilyn G”, the decision was made to build two new cranes. “We decided to copy her with some improvements,” said Landry. “We ordered both at the same time. The High Tide went into service in December 2012 and the Bob Frane just this month.” With a third new crane in the works, and several in the pipeline for the Refurbishment Program, Cooper/Consolidated is positioning their business for steady growth in the years to come. “We’ve been operating AmClyde™ equipment for 30 years, and studying new equipment for our Refurbishment Program the past eight years,” said Cooper. “Regardless of the expense, the reliability of AmClyde™ is second to none. That’s why we’ve decided to entrust another 30 years and beyond of our business to them.” “We’ve been known for our consistency and reliability for many years and these cranes play a major role in supporting one of our greatest strengths, the seamless door to door logistics packages we provide our clients,” says Brent Mahana, Director of Sales & Marketing for CGB Enterprises, Inc. “They emphasize our commitment in continuing to be an industry leader in all facets of marine transportation and inland logistics.” s

Calendar of Events

January 17, 2014 Advertising and Editorial Deadline for Issue 1 2014 of the CoalTransporter Magazine

2013 July 24, 2013 Western Logistics and Planning Committee Meeting Union Pacific Offices, Omaha, Nebraska

September 16-18, 2013 Thirty-Ninth Annual Business Meeting and Conference The Brown Palace, Denver, Colorado

Summer/Fall 2013 Presentation of NCTA Scholarship Awards: South Dakota School of Mines & Technology University of Arizona University of West Virginia University of Wyoming David L. Laffere Scholarship Three Memberâ&#x20AC;&#x2122;s Children Scholarships

December 20, 2013 Receipt at NCTA office of all re-certification forms for the UMLER Fee Waiver for Calendar Year 2014

50 | COAL TRANSPORTER

2014 January 30, 2014 Payment of Annual Membership Dues April 27-30, 2014 Spring General Conference Hilton Head Marriott Resort, Hilton Head, South Carolina June 9-11, 2014 Operations and Maintenance Conference The Grand Summit Resort, Park City, Utah June 28, 2014 Advertising and Editorial Deadline for Issue 2 2014 of the Coal Transporter Magazine

The NCTA

t u o b A d n Out a

is increasing its level of of Directors, the NCTA ard Bo difthe of ion ect t the dir gether, we can make a related associations. To al co nts low eve fel in r th wi yea s on interacti rticipate thi The NCTA plans to pa al. co can on eri r wa Am e, the tut in ference al Mining Insti , Rocky Mountain Co , Railsponsored by Coal Prep al Trading Association e, ina Coal Institut Co rol Ca ready rth is No TA , cil NC un Coal Co always, the Power Conference. As ic ctr ths. Ele pa ss the cro d an we e, ver tut r and where eve way Supply Insti en wh ers mb me its the efforts of and willing to support

COAL TRANSPORTER | 51

Social Media / Listening and Reacting

do o t w Ho y h W d it an tters it Ma

Building a Social Media Network that Supports Coal By: Dr. Sean D. Dessureault, Associate Professor and Director, Mine Intelligence Research Group www.mirg.arizona.edu Department of Mining and Geological Engineering, The University of Arizona Co-founder and Managing Partner, Stakeholder Listening and Intelligence LLC. www. stakeholderla.com

52 | COAL TRANSPORTER

Introduction:

he industrial sector is the backbone of the American economy; most rich stable countries have an industrial base. Countries that have grown themselves out of poverty did so by leveraging a strong industrial sector, very often having mining as the core element of that growth, such as the case of Peru. Modern technology and great advances in engineering have mitigated much of the negative environmental impacts of industry, especially for greenfield projects. Despite all of this, industrialization throughout the globe is under siege. Nearly all large scale projects requiring governmental

permits and public input have seen significant increases in delays, lawsuits, and even outright blocking by courts or cancellation of projects. In the past, most companies applying for permits assumed that good engineering, local goodwill projects, Corporate Social Responsibility (CSR) efforts, and following the requirements of the agencies issuing the permits would assure that a project would go forward. That is no longer the case. Opponents to industrial development are using a new powerful force that is transforming, how we communicate, the political process, dating, social networks, marketing, and even sparking revolutions and overthrowing governments. This new

force, of course, is Social Media. There can be confusion as to how social media is impacting the permitting process and the wider public discourse regarding lifestyle, resources, and economic development. Energy is one of the most important issues of our day and there are well funded forces attempting to reduce or eliminate fossil fuel use and development by attacking the mines, fracking, or transportation networks used to extract and to move the fuels from production areas to consumers. Yet many consumers of those fuels listen and are influenced through social media to act against the sources and networks of the very energy we all consume. A key means of influence and organization against industrialization is social media. Industry can use these same tools by first understanding and then harnessing its power. This article covers the myriad issues, explains the technology, its power, weaknesses, and provides real case studies and tools.

The multi-level battlefield.

Development projects are needed to maintain or grow an economy. However as people become increasingly isolated from the commodities that they consume, a type of idealism can take hold that believes that economic growth nor consumption does not require energy and raw materials or that recycling can fulfill all demand. This idealism has impact when groups organize to block development projects. If one is against industrial development, a key means of blocking such development is to attack projects by continuously raising a myriad concerns, whether valid or not, that are pseudo-technical in nature and associated to the many overlapping and confusing regulations at the municipal, country, state, or federal levels. Hence the intellectual ‘battlefield’ has two fronts: a strategic-front where industrial develop-

ment has been vilified and so a large percentage of the populace is hostile, and a tactical front, where projects can be blocked due to perceived technical issues. At the strategic level, hostility toward development may take the form of laws or regulations, such as classifying carbon dioxide as a pollutant or blocking strategically important infrastructure projects such as pipelines. At the tactical level, projects can be blocked by continuously raising fears, doubts, and technical/social concerns at every stage of the permitting process. Action is needed at both the strategic and tactical levels. The strategic level can follow the patterns of a political campaign and very often would need to act in this fashion, such as supporting one candidate over another or pressuring an elected representative to support a particular path. The tactical level must be used to educate the public and combat specific technical misinformation spread by opponents. Social media plays a very important role at both the strategic and tactical arenas. Sometimes the strategic has direct impact on the tactical level, for example, when permits are legally and technically valid, projects can still be blocked or cancelled through sufficiently violent or loud social action. For example, Barrick’s Pasqua-Lama and Newmont’s Congas projects had achieved their environmental permits yet were blocked by very vocal and often distant public protests by a small minority of the stakeholders. Closer to home, nearly every newly proposed mine or even mine expansion is seeing a dramatic rise in the effectiveness of organized opposition to new projects, such as coal terminals on the west coast or new mines in Arizona, Wisconsin, or Minnesota. The opponents are motivated by a general dislike of coal or mineral development but attempt to delay or deny permits at every stage of the permitting process. These opponents

1 http://www.pbs.org/mediashift/2010/10/how-climate-activists-are-warming-to-socialmedia281 2 http://www.fastcompany.com/1686631/why-environmental-activists-embrace-social-media 3 Source: ClickZ Stats SES Magazine June 8 page 24-25 Chris Aarons, Andru Edwards, Xavier Lanier Turning Blogs and user-Generated Content Into Search Engine Results

are well integrated, tech-savvy, active in their opposition, and are integrated into a tight network. The proponents of development are more often isolated, inactive, and not-yet familiar with the full-power of social media.

The Power of Social Media

Social media is an increasingly rising force in both developed and developing countries. Some interesting statistics include: •

•

• • • •

Climate Change activists have, in the wake of stalled domestic legislation to cap greenhouse gases, identified social media as one of the most effective tools to create seemly ‘grass roots’ efforts toward their cause such as pressuring Facebook to only use green energy or block the Keystone XL pipeline.1 Brands that have taken decades to build can be easily marred by a single individual with a twitter account.2 25% of search results for the World’s top brands are links to user-generated content.3 90% of consumers trust peer reviews4 Only 14% of consumers trust advertisement5 93% of marketers use social media for their business6

The above statistics are simply a result of Social Media’s ability to effectively and easily communicate and create social networks of people. A key trend that is most important to the permitting process is the overreliance on our peer network’s opinions (consumer peer reviews) over scientifically vetted and clear detailed explanations of facts. For example, in the case of applications of environmental permits, engineering firms must use accepted engineering practice when

4 http://www.nielsen.com/us/en/newswire/2009/global-advertising-consumers-trust-realfriends-and-virtual-strangers-the-most.html 5 “Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007 6 http://www.socialmediaexaminer.com/social-media-marketing-industry-report-2011/

COAL TRANSPORTER | 53

undertaking an impact study or analysis. However, opposition groups are not bound by engineering ethics or factual representation. Therefore, by extending this logic, an engineer with years of education and decades of experience has less credibility than a friended peer who ‘dislikes’ a particular project. Should a company applying for a permit were found to be falsifying or embellishing an impact study, the permit would be revoked, yet there are no consequences for when opposition opinions or misinformation are found to be false. Traditional news media cannot be counted upon to inform the public since journalists are increasingly reporting on concerns that are being expressed in social media, not on the truth or validity of those concerns. Social media makes it easy to network people of a like-mindset and then expand that network through peer networks. This can become a deliberate strategy because social media is about: • Listening first, communicating second • Understanding stakeholders and with whom they communicate • Analyzing the experiences of your peers (i.e. traditionally seen as your ‘competitors’), and the activities of your opposition, now likely the most impactful competitor. • The value of social media is derived from the users, not just the content • Social media is a conversation, not a monologue

54 | COAL TRANSPORTER

•

Social media is fractured, but this also allows one to have a conversation in the medium that hosts the discussion.

Social media encompasses the tools used to communicate, however, it also includes the many analytical tools to help visualize, analyze, and derive conclusions from the extremely large and growing data sets. This area of big data analysis has its origins in data warehousing and business intelligence (DW/BI). This is the enabling technology that helps clean and prepare the huge social media data sets for easy analysis by users and the application of more complex analytics, often referred to as data mining. In the mining industry, social media is used to a limited extent as an outward communication tool, like an arm of Public Relations, or worse, not at all. It is far better used as a: • Listening, characterization, engagement, and feedback tool • Rapid alert and response tool • Creating and building a network of supporters • Learning from the mistakes and experiences of peers Social media cannot be treated as a traditional public relations exercise. The time, expense, and inflexibility of focus groups, formal interview-based surveys, wordsmithing a communique or campaign, or the legal department’s usual

vetting of communications cannot keep pace with social media. However, the value of social media is in building and engagement with a network of supporters, the information behind the content, the ability to link and visualize content, and users’ interconnections.

Social Media Analytics

People may often focus on the content, such what is said in a particular blog, shown on a YouTube video, what is tweeted, however, the value of social media is also derived from the analytics behind the base content, such as how many people have viewed, liked, followed, re-tweeted, commented, etc… on the content. Even traditional media typically hosts a ‘comments’ section for each print article, radio story, and television report on the webpages of the old-media outlets, where a vibrant, frustrating, often rude, and thoroughly insightful conversation occurs. Basic network traffic such as Google Analytics can be very informative by tracking user visits, what they are reading, where they live, etc… A great deal of information can also be learned when you host your own Facebook page, twitter account or YouTube Channel, especially if users friend, follow, or subscribe. Each of these social media tools have their own analytics which is intended for use to build followers, measure success, and monitor comments. Furthermore, software called Application Interfaces (APIs) are made

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available for software developers allowing extraction of user and online interactions into databases for further analysis. Since social media depends on online advertisement revenue, they are continuously incentivized to provide as much information as possible, usually for free, so that companies are more likely to buy advertising space. There are also many interesting online tools that help visualize various elements of online engagement. For example, Figure 1 is a Wordle of President Obama’s 2013 Georgetown speech on climate change in a wordcloud, which is a means of representing a large number of words into a single visual representation.

Figure 2 shows twitter activity (tweets and retweets), part of an animation over a brief time period during an announcement of a court settlement during a Macellus Shale case sparking a huge number of twitter communications. The links between the nodes represent followers and retweet events, while the thickness of the lines represents more communications between the nodes (people). Further filtering for sentiment, one can find the network of shale supporters and those disappointed with the court decision (was in favor of Marcellus development). Figure 3 is a spider URL scrape of a popular blogging site in Peru with applied data mining algorithms to track sentiment. A URL spider tracks the links where bloggers mention other bloggers’ blogs. Sentiment mining is where certain key words are mentioned in the title or content of the blogs that one might consider negative, such as terrible, polluting, greedy, degradation, etc… The tight yellow network represents the opponents (negative sentiments) of a mine named Tia Maria in Peru, the large purple network are those that are indifferent (or that do not mention the project), while the small isolated pockets of light and blue multi-colors are the proponents (positive sentiment) for the project. One can immediately see that the opponents are far better interlinked than the proponents.

Action Figure 1. Word cloud of President Obama’s speech on climate change at Georgetown University. Figure 2. Screen capture of an animation showing the tweetersphere reacting to a marcellus shale court decision.

Figure 3. Networks of opponents (yellow top portion), supporters (isolated multi-colored pockets), and Neutrals (right purple) showing a tight interconnection among opponents and isolation among proponents.

56 | COAL TRANSPORTER

Companies can no longer solely rely on good engineering, corporate social responsibility, and a good relationship with elected officials to get permits. Keeping silent in the face of misinformation and outright absurd accusations is no longer an option since misinformation, repeated often enough, becomes the truth in the eyes of the public. However, companies cannot divert resources to address each and every misrepresentation or outlandish comment. Using internal Public Relations (PR) or a contracted firm to draft and issue public statements on the same pace and scale as the opposition activity in social media is not feasible. Instead, companies and support institutions must leverage the power of social media to create a network of proponents and empower them with easy access to facts as well as an alert system when misinformation is detected. A proactive social media strategy can also include analyzing risks, evaluating trends, or even viewing and learning from the experience of peers. Opposition groups frequently share tactics, information, networks of supporters and alerts, proponents of development must learn to do the same.

Building a Network Building the Content Foundation The first step in leveraging the power of social media is to build a network of supporters. In order to do this, one must have a visible, quality, and active presence online, in any social media medium available. This is where traditional PR may help, creating quality content. One must also consider the unique aspect of technology, there are best practices and techniques in web and content design to enable one to better track how people use the social media, what content is most popular, and how people can

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connect and track the medium when new content has been uploaded. For example, if a company would like to communicate technical information, one might be tempted to simply make a PDF of the hard-copy handout used at live public forms, and post it online for people to download. The issue with this approach is that the company cannot track to see what part of the book (what environmental concerns) people are most interested in, if that information is forwarded to anyone else, etc… By making information easily sharable and on distinct web pages, one can track the popularity of certain content, visitors to the main page, etc...

Growing the Network The second step in building a network is getting followers. Companies can begin with their own employees, and expand through their employee’s networks. Using and engaging through social media is extremely easy. For those that remain apprehensive, companies may give simple training to those not already connected to social media, introducing them to how to use the medium, and addressing any privacy concerns. Finally, a more concerted effort must be made to link across industry peers and their different traditional advocate groups. Specifically, groups should share their supporters to broaden the network. For example, consider the combined network of followers of like-minded groups such as the National Coal Transportation Association (NCTA), National Mining Association (NMA), mining companies and their vendors, Society of Mining Engineers (SME), Friends of Coal, American Coal Council (ACC), and the Rocky Mountain Coal Mining Institute. They have shared interest and a common ‘competitor’, being the massive and tightly integrated opponents of coal and mineral development. There are many online ‘best practice’ guides to help organizations increase followers and expand networks. Network maintenance can include posting new interesting content, allowing the network to post content, and engaging in interesting campaigns.

Empowering the Network The only reason for investing in building a network is to empower it to act. Action can come in many forms, such as organizing virtual or physical rallies, dispelling misinformation being spread online, and engaging in contemporary political activism. There are best practices for each, but few activities are more important to the permitting process than dispelling misinformation. Engineering design, economic and social models follow very specific scientific processes which must be followed when applying for permits. However, opponents of an economic activity are not subject to required engineering standards when trying to block a permit. Hence, many exaggerations or outright misinformation pervade the public con-

58 | COAL TRANSPORTER

sultation and public comment period. A project’s greatest public consultation asset may be a network of supporters that: • have easily communicated facts, • have a back-up history of the appropriate response to misinformation tactics, • knowledge of third-part educational tools such as slideshare or online courses that the public can access to learn more about technical elements of a project (e.g. hydrology, water quality, etc…) Staying silent is no longer an option, allowing the opponents to be the primary source of information can create hard-to-dislodge public misperception such coal cars spread coal dust, all fracking results in earthquakes, anthropogenic CO2 is the only driver of climate change, corn-based ethanol is good for the environment, or that renewable energy power generation has no environmental, aesthetic, or social impact. The need to dispel misinformation is one of the most important elements for economic development due to the vulnerability that most large-scale projects have during the permitting process. However, there are common best practices for building and using social media networks for political action that institutional organizations such as the NCTA, NMA, or the ACC can, should, and perhaps already use.

Being Proactive: Risk Analysis

Reacting to misinformation is a necessity in today’s permitting processes, but one can also be proactive. Opposition groups are well integrated and hence use nearly identical arguments against economic growth and use the same misinformation strategies. Tracking and analyzing tactics that opposition groups use against peer projects would help prepare a company pursuing permits in a wholly different jurisdiction. Social media, with its inherent intrusive ‘udpate/posting/status’ alert nature, can be leveraged to automatically alert supporters to needed actions.

Table 1. Old vs. New Media Print Radio, TV,…

New Media

Slow to respond

Fast detection & response

Can’t measure impact

Can directly measure impact

Expensive

Very inexpensive

Limited Reach

A multiplier since it directly connects a network and the people in other networks, but that share common nodes

More talking, less listening

Listen and react in the same medium

The only reason for investing in building a network is to empower it to act. Refinement: Engagement and measuring feedback.

A key advantage of social media is the ability to immediately measure the impact of engagement. Since online activity can be tracked, companies can learn the impact of their engagement efforts by tracking hits, likes, forwards, recommendations, etc... a distinct advantage over old media. Table 1 provides other comparisons between old and new media.

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Most of the current expertise and off the shelf tools are specifically focused on brand management, public relations, building and galvanizing a political base, or security. Social media analysis for supporting a permitting process requires more than the simplistic ‘like’, ‘dislike’, ‘mentions’, or ‘number of followers’ measures used for marketing consumer products or politicians. A more nuanced and analytical approach is needed and must be integrated into the permit process.

Conclusions: Start Now

There is ample colloquial evidence that social media networks create loyalty, trust, passion, and engagement. This is why social media companies, with few real assets, are valued so highly by investors, because marketers understand that these networks are effective. This article only touches a few of the many nuances and technologies available to companies. Building an effective social media strategy and integrated network is a necessity for any company involved in the permitting process or institution involved in political advocacy. Ignoring online communities is no longer an option because there have been rapid and fundamental changes in how communities organize. Following laws, regulations, engineering and CSR best practice is not enough to avoid excessive delays or denials of permits since truth is inconsequential, only perception has true impact. Social media is the new, complex, and often frustrating factor that must be leveraged to keep the level of industrialization needed to maintain our lifestyles, and we must start now, before it is too late. s

COAL TRANSPORTER | 59

Surface Transportation Board / Update

Surface Transportation Board Update

By: Sandra Brown, Partner, Thompson Hine

he Surface Transportation Board (STB) has been busy the first half of 2013. The STB make-up remains the same with Daniel R. Elliott III as the Chairman, Ann D. Begeman as the Vice Chair and Francis P. Mulvey as the third STB Member. Although Dr. Mulvey’s term expired at the end of 2012, he remains on the Board, and can remain on the Board until the end of 2013 based on applicable law. The following summary addresses the recent or pending STB proceedings impacting or potentially impacting coal transportation:

RATE CASE STANDARDS FOR COAL TRANSPORTATION On March 19, 2013, in a case titled EP 717, Petition of the Association of American Railroads to Institute a Rulemaking Proceeding to Reintroduce Indirect Competition as a Factor in Considering Market Dominance Determinations for Coal Transported to Utility Generation Facilities, the STB denied the Association of American Railroads (AAR) Petition asking the STB to reconsider evidence of indirect (product and geographic) competition in rail rate cases involving transportation to electric generating plants. In sum, AAR argued

60 | COAL TRANSPORTER

that coal plants are able to constrain railroad pricing because wholesale power markets allow for easy substitution between generation sources and shale gas creates a new competitive dynamic. Consequently, AAR asserted that railroads can lose sales when a utility’s short run marginal costs indicate that coal burn should be decreased compared to other generation sources. Prior to 1998, the market dominance determination in rate cases required a showing that there was no effective competition from substitute products or geographic sources. This was a costly and time-consuming inquiry into non-transportation issues. The STB eliminated that requirement because it was too complex and beyond the agency’s expertise to effectively evaluate. That decision ultimately survived several rounds of appeals and was a benefit to shippers, since it reduced the length, complexity and cost of rate cases. In denying AAR’s proposal to reintroduce indirect competition into the market dominance inquiry, the STB found AAR’s proposal unworkable and unable to overcome the practical difficulties that the agency identified in its previous decisions.

On July 18, 2013, the STB issued a final decision in Docket No. EP 715, Rate Regulation Reforms, and adopted five of the six proposals for new rail rate cases. A railroad appeal of the decision has been filed at the U.S. Court of Appeals for the District of Columbia.. The lone coal rate case pending at the STB is Docket NOR 42136, Intermountain Power Agency v. Union Pacific Railroad Company. Pursuant to the procedural schedule in that case the record will close August 7, 2013. On April 23, 2013 in another coal rate case, Docket No. NOR 42056, Texas Municipal Power Agency v. Burlington Northern Santa Fe Railway Company, the STB granted the parties’ motion to dismiss and discontinue the proceeding. Finally, in another proceeding that could impact coal rate cases, the STB proposed changes to its general purpose costing system, the Uniform Railroad Costing System (URCS) on February 4, 2013 in Docket No. EP 431 (Sub-No. 4), Review of the General Purpose Costing System. The STB is proposing to adjust the manner in which URCS calculates certain system-average unit costs to better reflect railroad operations. URCS is used in the STB determination of a railroad’s variable costs

of providing rail transportation service which impacts the jurisdictional thresh-

old determination and the prescription of maximum rates in rate disputes. The record closed in the proceeding on April 22, 2013. Finally, on July 25, 2013, the STB ordered BNSF to delay revaluation of BNSF’s assets in part because of Berkshire Hathaway Inc.’s purchase of BNSF without prior STB authorization. The STB also reopened two rate prescription cases in light of the STB’s action.

MEDIATION AND ARBITRATION

On May 13, 2013, the STB issued a decision adopting revised regulations regarding arbitration and mediation procedures in Docket No. EP 699, Assessment of Mediation and Arbitration Procedures. The new regulations, effective on June 12, 2013, are intended to encourage greater use of arbitration and mediation, potentially saving parties the time and money required to litigate formal disputes at the STB. The new regulations applicable to arbitrations are limited to specific types of disputes; however, parties may mutually agree to arbitrate certain other types of matters that are subject to the jurisdiction of the

STB. Parties must affirmatively opt into the STB’s new arbitration program and awards will be limited to $200,000 per case unless the parties mutually agree otherwise. Injunctive relief will not be available under the arbitration program. Arbitration decisions may be appealed to the STB or federal court. The STB also revised its mediation regulations. The new regulations permit the STB to stay underlying proceedings and toll any applicable statutory deadlines during mediation, but such steps cannot be taken when one or more parties do not consent to mediation. Mediation can only be ordered in an existing STB proceeding, will be confidential and will last for up to 30 days unless the STB decides to extend the period upon request of the parties.

COMPETITIVE SWITCHING

On May 30, 2013, the final round of submissions were made to the STB in its proceeding to consider a proposal submitted by The National Industrial Transportation League (NITL) to increase rail-to-rail competition in Docket No. EP 711, Petition For Rulemaking To Adopt Revised Competitive Switching Rules. Under the NITL proposal, NITL seeks to have the Board modify its standards for mandatory competitive switching where a captive shipper is within 30 miles of a working interchange and the transportation rate charged by the Class I carrier exceeds 240% of its variable costs of providing service and/ or the railroad has a 75% market share. The NITL proposal would establish two conclusive presumptions to determine whether a workable interchange exists within a reasonable distance of a shipper’s facility. The incumbent carrier would be compensated for the access granted to a competing carrier under an established access fee methodology which NITL proposes is based on the existing Canadian inter-switching cost-based methodology, with appropriate adjustments and simplifications.

COAL TRANSPORTER | 61

INTERCHANGE COMMITMENTS

On February 27, 2013, over two years from the date the complaint was filed, the STB issued a decision in Docket No. NOR 42126, Union Electric Company d/b/a Ameren Missouri and Missouri Central Railroad Company v. Union Pacific Railroad Company (and two related dockets) and denied a request to remove the service restriction in a prior sales agreement so that Missouri Central Railroad Company could provide rail service to Ameren Missouri. The Board acknowledged that the contractual restriction was a complete bar to service

and lasted in perpetuity, yet the Board denied taking action based on the unique facts of the case.

RAILROAD PRACTICES

Still pending at the Board are two cases on railroad practices of interest to coal shippers. First, Docket No. NOR 42137, North America Freight Car Association v. BNSF Railway, et al., is a case that alleges that the AAR’s processes for adopting and modifying the AAR Interchange Rules are unlawful and produce rules that require private rail car owners to pay 100% of the costs of compliance with

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the rules while the operating railroads receive the majority of the benefits. The Board granted the motion to extend the procedural schedule in the proceeding on June 26, 2013 which sets final evidence to be submitted on January 10, 2014. Second, shippers are awaiting a decision in the coal dust case in Docket No. FD 35557, Reasonableness Of BNSF Railway Company Coal Dust Mitigation Tariff Provisions, which is round two on coal dust. The STB is considering the reasonableness of a “safe harbor” provision and other aspects of BNSF Railway’s revised coal dust emission standards. The evidentiary record closed on December 17, 2012. One of the additional issues raised in the proceeding is whether BNSF’s liability and indemnification language is reasonable. In an unrelated STB decision that might indicate how the STB will rule on the indemnification provision in the coal dust tariff, on April 30, 2013, the STB refused to declare reasonable a Union Pacific Railroad indemnification provision. While the case involved Toxicby-Inhalation Hazardous Commodities and not coal, the STB struck down UP’s attempt to require shippers to indemnify the railroad against all liability (although, unlike BNSF, UP had carved out liability resulting from UP’s negligence or fault). The case is Docket No. FD 35504, Union Pacific Railroad Co. – Petition for Declaratory Order. s Sandy Brown is a partner in the Washington D.C. office of Thompson Hine. As part of the Transportation Group, she represents bulk commodity shippers such as electric utilities, state and local government entities, ports, as well as coal, aggregates, chemicals and plastics shippers. Her experience includes advising clients on the buying, selling and moving coal domestically and internationally. Sandy also provides advice on strategic planning for the transportation of bulk commodities particularly designed at establishing or enhancing competitive transportation alternatives and provides counsel on rail construction and environmental review; transportation and coal supply contract drafting and negotiating; counsel on regulated rate challenges; counsel on federal preemption in transportation matters; and representation at proceedings before the Surface Transportation Board.

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NCTA / Member Sound-Off

Member Sound-Off

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

he theme of the 2013 Fall Conference is “The War on Coal: Fighting Back.” In this day and age, social media is a force, sometimes for good and unfortunately, sometimes not. We conducted a Sound-Off survey a few years back focusing on the use of social media for business purposes. This survey had a different spin as we look to fight back against the mountain of misinformation, the unreasonable regulatory compliance costs demanded of consumers, and the just plain ignorance that abounds with respect to coal-fired generation in the United States. We asked members and associates if they were ready to enlist in the “social media army” to fight back in the war on coal or were to the point of waving the white flag in surrender. Here are the results:

How Active are Respondents Today?

Over 75% of respondents are already active in social media. Facebook and LinkedIn were the most widely used at 58% each with Twitter a distant third at 19%.

Where Do We Go From Here?

The NCTA is taking up the fight and will feature a social media panel at the Fall Conference. The Board of Directors will meet in Washington in late October with other associations to promote the development of resources to support a social media assault.

Much of the dialog occurs in the “comments” posted in response to articles on coal related news items. If there is no misinformation in the article itself, it is sure to show up in the comments. But does anyone really read the comments? According to the survey 73% of the respondents read comments some or most of the time, 27% rarely or never. What happens when the 73% that do read the comments find something that is not true? Herein lies the problem. Only 28% try to set the record straight by responding. The other 72% leave the comments or misstatements unchallenged.

In the meantime, get more comfortable with social media. Continue to pass on items that you agree with as the majority already do. Let no misleading or false statements go unchallenged or uncorrected. Let others in the fight know that we have their back by reinforcing their efforts to correct the record. We do very little of this now, making it easy for opposition to label someone a nut job as they stand alone. The ultimate goal will go from being reactive to being proactive.

Can We Change the Paradigm?

Here’s what some members and associates have to say about the social media:

The good news is that 73% are ready to enlist. Another 18% are sitting on the fence. Maybe they just need some convincing or a trip to social media boot camp. Only 9% are opting out. In the old days conscientious objectors moved to Canada, but that won’t solve this problem. Maybe they plan to move to Costa Rica.

5% 4% 18%

Willingness to Participate in Social Media in Support of Coal

31% 42%

 Definitely  Probably  Not Sure  Probably Not  Definitely Not

“Sorry, I am behind the times regarding social media. I have been ignoring social media because of limitations on my time, but it looks like the time may be soon at hand....” - Albert Serna, CPS Energy “In the past, I’ve considered social media to be a “time waster.” Thus, I have nearly completely ignored its impact. Maybe, I need to reconsider....” - Jay Galbraith, Standard Steel, LLC

“I know many who live and die on Facebook. I don’t. But I believe the misinformation about coal is so rampant, one must speak out.” - John Mayer, Associated Electric Cooperative, Inc.

Every successful army needs good training, good equipment, and a good battle plan. Some soldiers hit the front lines while others are experts in covert operations. In this war, a surprising number of folks are willing to stand up on the front lines. But to do so, they want the best equipment available. A whopping 97% said an easily accessible toolbox of facts was important or very important. Training in the social media tools was not nearly as important. Clearly, if Kim Kardashian can do it, how hard can it be?

64 | COAL TRANSPORTER

“I am for it, we are probably too late to be effectively pro-active, however, we can show our support and solidarity by standing up against the “liberal green machine” going forward...losing a battle does not mean losing the war.” - Michael Smith, Rhino Energy LLC

NCTA / Member Sound-Off “Social media is coming into its time, the major problem is that you can only believe 50% of what you see or hear and half of the time you’re still going to be wrong. Having easy access to reliable information is the missing key.” - Bruce Fogg, NVEnergy

“Until the NCTA and other coal interests learn that this is not a battle of facts but instead one of emotion they’ll not stand a chance of ever winning (however that might be defined). My personal view is that it is now far beyond coal...pun intended....and is now a battle over the fundamental relationship between government and the governed.” - Anonymous

“NCTA should provide “Daily Facts” about coal on social media sites. Politically correct facts won’t get the job done. The lies have to be countered honestly and fast.” - Jay Hatfield, FreightCar America

“Very important to spread the real facts about coal and the coal business. Very important to link economic strength to energy cost and economic decline to expensive energy costs.” - Gurpreet Khaira, CN

“This is a great idea as clearly the anti-coal groups are winning the PR public relations battle. Giving this and other groups the right tools to easily use would enhance our chances of having an honest dialogue about coal.” - Harry Zander, Macquarie Rail Inc.

“It generates interest and allows immediate response to misinformation.” - Patty White, Patriot Coal Corp.

“As a nation, we must maintain strength and social responsibility. By having abundant domestic energy and utilizing currently accepted rules to control how emissions are captured we should thank the NCTA members for making sure the United States stays strong. Thank you!” - F Sweazy, NYAB

“Social media is important because it is the way in which many mature folks and most young folks interact. It is critically important to reach younger folks because they are being bombarded daily, through every media form, with anti-coal and climate change propaganda and they need a balanced input which is becoming increasingly rare. It would be important to point the focus on all the beneficiaries of coal, from generating power for all of us, to the jobs that sustain areas which otherwise do not have much industry, third world countries where folks struggle daily to have life sustaining power and the people and children that are sustained/saved by the fact that power is available to them. It must point out how civilized countries, with power, have the longest life spans and etc, etc...but this campaign needs to all be done WITHOUT mentioning coal (at least until the story has developed empathizers).” - David Ryan, St. James Stevedoring

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Reflections / Bruce Miller

Bruce Miller 66 | COAL TRANSPORTER

“I

f you knew Bruce, you liked him. He was a real people person - a father, a husband, a brother, a son, a very competitive athlete, a leader and most of all, a friend”, says Matt Levar of his longtime pal Bruce Miller. If you ask anyone who knew him if Bruce will be missed, you might be surprised when answered with a vintage Bruce question; “Do fat babies have gas?” Bruce was born on January 17, 1960 in Lemmon, South Dakota to Johnny and Florence Miller. His father worked in road construction, ran an A&W restaurant for a time, and eventually went to work for UPS. His mother Florence took care of the family and also worked a variety of jobs outside the home including work at Wheeler Manufacturing, a leading jewelry supplier. Bruce was soon joined in Lemmon by two siblings, sister, Roxanne and a brother, Steve. Steve finds it rather ironic that one of Bruce’s trademarks growing up was

Right: Heather, Danette, Cory, Sabra, and Bruce in the Black Hills (2011) that he was often seen sporting an engineer’s hat. Nothing in his upbringing explained this fashion choice. Was it a foreshadowing of his long term association with rail transportation, or did Bruce just like the look? A far cry from today’s craze of internet dating, Bruce met his future wife Danette Ham when they were just kids. Danette was a farm girl whose family lived at Shadehill, just south of Lemmon. When the local Catholic School closed its doors in 1972, Bruce transferred to the 6th grade at Lemmon Elementary where Danette was already a student. They didn’t start dating until their senior year in high school where Bruce ran cross country, played football and basketball and Danette was on the cheerleading squad. After high school they both went off to Northern State College in Aberdeen, South Dakota. Bruce studied business, but left after two years to find work in the area. Danette continued on to finish her four-year degree. On June 5, 1982 they were married surrounded by family and friends at Calvary Lutheran Church in Lemmon. It was not surprise to anyone that the groomsmen all wore engineer’s hats to the reception!

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A Wonderful Life

As most young couples do, they headed off to start a new life, not knowing exactly what the future would bring, but confident that they could tackle it happily together. They ended up in Gillette, Wyoming. The boondocks to some, but when you are from Lemmon, with a population of less than 2,000, then, not so much. As it turned out, Gillette would be their home for the next 24 years. There they built a life that became richer and fuller, and, of course, busier by the minute as they welcomed daughters Heather and Sabra and son Cory. One of the first people Bruce and Danette crossed paths with in Gillette was Matt Levar, currently the Director of Sales for Westmoreland Coal Company. Matt recalls: “I met Danette in 1982 when she was the administrative

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assistant to the mine manager at the new Mobil mine, Caballo Rojo, located 20 miles south of Gillette. Danette left the mine some time later and became a loan officer in Gillette. I first met Bruce when he worked at the Cordero mine that was adjacent to Caballo Rojo. We would communicate with each other from time to time when either of us needed parts and materials to keep our respective coal processing plants running. It was later that I found out that Bruce was married to Danette. In 1996, the Caballo Rojo mine was bought by Kennecott Energy (Rio Tinto), the owner of the Cordero mine. Our lives were thrown together to transition the two mines into one, the Cordero Rojo mine. Many hours were spent bringing the two plant work forces together into one functional unit. Bruce was a straight forward guy. No fancy words, “no beating around the bush” just straight talk. As the plant manager he led his team with passion to accomplish the highest standard

Heather, Bruce, Cory, and Sabra in 1992 in high school and was game to move. The family settled in to a new routine in Parker. Danette took a break from full time work to aid in the transition. Bruce was delighted to discover that while the Colorado school year starts in mid-August, the kids get a week-long break in early October – the perfect time to take Cory back home for a hunting trip.

A Band of Brothers

Bruce and Danette are engaged! (1982) of performance. He involved everyone to optimize safety and production. As a coal sales person, he was extremely creative, energetic and a very social person. He knew the value chain well from the mine, to the railroad to burning the coal.” Through hard work and dedication, Bruce worked his way up the company from his initial job on the maintenance crew, to bottom loading cars, to topping them off, to plant manager, and finally into the marketing area. Danette credits Matt Levar and Kelly Cosgrove, Kennecott’s then Vice President of Marketing, Government, and Public Affairs for giving Bruce an opportunity in the marketing group. In early 2006, the marketing group of Rio Tinto relocated from Gillette to Greenwood Village, just south of Denver. For Bruce, who always put family first and planned his travel accordingly, the timing could not have been better. Heather had graduated from Montana State University—Billings and Sabra had just graduated from high school. Cory was just getting started 68 | COAL TRANSPORTER

In late 2007, Rio Tinto’s decision to divest itself of its US coal assets put Bruce and three co-workers on two-year journey involving four companies doing business out of four different locations in the Denver area. Bruce, along with Rick Pieper, Matt Levar and Jeff Price, had been working with Lehman Brothers on an arrangement to expand Rio Tinto’s successful trading operation around its assets. The deal was put on hold while Rio Tinto sought to divest the coal assets. Lehman recognizing the brains behind the operation were more valuable than the assets, offered the four a package deal to come aboard. While there was talk of both a spinoff using an IPO and a selling the properties outright, the sale brought the risk of consolidation and layoffs so the four left Rio Tinto in early 2008, opening an office in Lone Tree. By September, Lehman Brothers was bankrupt as were so many others involved in the subprime mortgage crisis. The four landed at Eagle Energy Partners (Eagle) and in a new office in Littleton. They continued to work under the Eagle name until late 2009, in spite of the fact Eagle had been acquired by the European firm EDF Trading in October of 2008. Once brought under the EDF Group global brand, the group relocated to Englewood. The Cloud Peak Energy IPO finally happened in November of 2009, about three quarters of the way through this journey. In June of 2010, the coal marketing business of EDF Trading North America, and along with it the “band of brothers”, was acquired by Enserco Energy, the unregulated marketing subsidiary of Black Hills Corporation. Their new digs, in case you were wondering, were located on Wynkoop Street in downtown Denver. While it makes one wonder how many mornings Bruce could have woken up wondering who he worked for and where the office was, one thing always remained the same – his

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cell phone number. Bruce made sure that family, friends, and business associates never had to worry about losing touch.

Need Another Brother?

As a marketer, Bruce’s people skills were evident. Because he was such a genuine guy, calling them “skills”, somehow just doesn’t seem right. John Nyquist’s chronicle of meeting and getting to know Bruce is the perfect illustration. John is the Purchasing Manager for Minn-Dak Farmers Cooperative in Wahpeton, North Dakota. “Bruce Miller was a great friend, when he called on our company we would always manage to get in at least one or two rounds of golf. Bruce was pretty modest, you would not think

make sure to invite Bruce over and make lasagna for him. I would occasionally be invited as well. Bruce was the type of person that everyone who ever met him took an immediate liking to. My parents especially looked forward to every time Bruce would be in town, and would make sure to invite him over for dinner or just to stop by and say hello if he had time.” John’s experience was not unique among Bruce’s customers. He also managed to find some “adopted” sisters and maybe a cousin or two (or twenty) along the way. Amy Goodman, Manager, Production Fuels for the City Utilities of Springfield, recounts: “Every time I think of Bruce I get a smile on my face. His smiles were contagious, so was his cheerful demeanor. Bruce

Bruce and his buddies at Mt. Rushmore, on one of his Harley road trips. he was a good golfer but if you were to bet with him you would probably lose money because he was a very good player. The first time I met Bruce was at the NCTA meeting on Victoria Island in British Columbia back in 2004. My wife and I went to a pub with Danette and Bruce for a nightcap and that is really when we started getting to know each other better. Of course anyone who knew Bruce knew he was an outdoorsman. When he heard about our fishing trips to Canada, he decided it was time for him to join in. We had several very successful trips fishing at the Hyatt’s Manion Lake Camp in Ontario. It was definitely not the Hyatt style of resort you may be thinking of, but a very nice place for a group of guys to go fishing. Bruce fit into our group very well, there was always a bet every morning on who would catch the biggest Walleye and Bruce had his days with the largest now and then. I will never forget the time when my folks picked him up at the Fargo airport. I was playing in a golf tournament that day and he came out onto the course to meet up with us and have a couple of beers of course. I asked him if he wanted to stay for dinner at the course after the tournament. Bruce said no, that my folks had invited him for lasagna which was news to me. Bruce, like anyone who had ever had my Mother’s lasagna, fell in love with it, so every time he would come to town she would 70 | COAL TRANSPORTER

was always such a gentleman and extremely kind-hearted, always placing others first. I remember a time in Colorado Springs at the Broadmoor’s Golden Bee when a group of NCTA ladies, including myself, were waiting to get in. The Golden Bee only allows a certain number of people to occupy the establishment at any given time, so we had to wait until others left before we could enter. We are standing outside the doors when Bruce spots us from inside. Without skipping a beat, he gets all the patrons to chant with him, “LET THEM IN…LET THEM IN…LET THEM IN!” Bruce was always the life of the party and liked by everyone. He was witty too! I remember when I first met his wife, Danette. I told them that I was terrible with remembering names, but Bruce had a solution for that! He said, “Just remember, you bring da pole and I’ll bring Danette.” Needless to say, her name was never forgotten. I hope to live my life with as much enthusiasm as Bruce lived his. He is missed, but will never be forgotten.”

Family: First, Last, and Always

Bruce was known for putting others first. His wife Danette recalls that Bruce didn’t live by Hallmark’s calendar. That is not to say he ignored the traditional, but that he did not need a holi-

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day to do something special like bring trip thinking he was leaving Danette home flowers or give a gift. “Bruce was behind. Instead, she met up with their not one to go with the flow. He was his friends from Gillette and Farmington own person”. Today, Danette wears a at a hotel in Ft. Collins. Bruce had two beautiful necklace given to her by her very loyal hunting companions in his children this past Mother’s Day with labs Sage and Misty, so it was quite easy the simple word “love” in Bruce’s own to talk him into stopping by one of the handwriting captured from the birthrooms to look at a puppy that his pal was day card he gave her last year. considering training. After all, he, Jim Jim Lynn, who knew Bruce for Lynn, and Matt Levar spent many hours many years before they ended up as with Sage and Misty in special training co-workers at Rio Tinto and later at areas at Quail Run, a hunting and fishing Enserco, also knew this first hand. preserve in Kiowa, Colorado. To his great “Bruce always wanted others to enjoy surprise, it was not a puppy but a party themselves and he would go to great that he discovered when he entered the room. After having been surprised in Ft. lengths to accomplish this goal. He was Collins he was doubly surprised when my biggest supporter at the racetrack. he walked in on Surprise Party II back in I had a horse racing at Arapahoe Park, Bruce and Danette with the Parker, especially since Danette was still and many friends and co-workers 1957 Chevy with him. were coming to watch. Bruce orgaTrains were not the only mode of nized a “tailgate party” at the track. He brought his motor home, grill, transportation Bruce had affection for. food, and drinks for 30+ people. He made sure he parked where He regularly rode his Harley with friends, hitting the road in everyone could eat, drink, and see the race. This was not an full gear. He was also the proud owner of a 1957 Chevy pick-up approved practice at the track, but after lengthy discussions with truck that he kept mainly because it reminded him of his dad. security, Bruce barbecued all day and entertained at the same After the funeral mass that was held at Ave Maria Catholic time. Ensuring that everyone had a good time was important to Church in Parker in March, Cory thought it fitting to give his Bruce no matter how much effort it took.” own father one last ride in the Chevy from the church to the top of the hill. It created an endearing moment in a final farewell. Doing something nice for Bruce was a bit more of a chalth Will Bruce be missed? Do fat babies do have gas? lenge as he was impossible to surprise. That was until his 50 Always. s birthday when Danette and the kids were able to surprise him not once, but twice! Bruce went off to Ft. Collins for a hunting

ether of memorable times tog Bruce and I shared lots is what e Her s. friends and co-worker over the past 30 years as both that you of l , I’m sure, for severa BRUCE MILLER meant to me and knew him as well: have Best friend anyone could ever you if Reliable….the first one there needed anything Unselfish in so many ways Caring and giving orkers, customEveryone (family, friends, cow ers) loved Bruce ever meet Most genuine person you will he was around n Impossible not to laugh whe Loved life Lots of fun Enjoyed the great outdoors Rest in Peace my dear friend. Leslie Thorn, Cloud Peak Energy

72 | COAL TRANSPORTER

Editor’s Note: A special thank you to Amy Goodman, Matt Levar, John Nyquist, Jim Lynn, Leslie Thorn, and especially Danette Miller. Without their contributions, this article would not have been possible.

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

The View from the Caboose

THE VIEW FROM THE CABOOSE By Pete Moss & Ann Thrawsite

Ann: Pete, it’s a little early in the day isn’t it, even for you? Pete: Huh? Ann: You can’t fool me with that red face of yours. Pete: No, no, no. I haven’t been partaking (much). I’m in training. Ann: Training for what? Pete: Haven’t you heard? The theme for the NCTA Fall Conference is “Fighting Back” in the war on coal. I’m in training like Rocky Balboa. Ann: You mean you’re eating raw eggs and running up and down the steps at the Philadelphia Museum of Art?

Pete: The folks in the NCTA are just the tip of the iceberg when it comes to those who will suffer in the war on coal. The hard working folks in manufacturing will lose their jobs as the increased cost of energy makes America less competitive. Lower income Americans will have their family budgets hit hard by higher utility rates. I read about a company the other day that is shutting down a perfectly good coal plant telling its customers that it is “likely to file for increases in 2014, 2015 and 2016 as the new resources come on line”. I think the whole thing is scandalous. Ann: Just what this country needs is another scandal. Pete: It is amazing that the same government that claims it is taking action on a perceived threat in the name of “future generations” thinks absolutely nothing of saddling those same future generations with very real problem - insurmountable, unnecessary debt.

Pete: You got it. Except, I don’t live in Philadelphia so I go to the Denver Museum of Art. The gang should check it out when they come for the conference.

Ann: I think that’s what they call a sucker punch.

Ann: You realize that the museum in Philadelphia has 172 steps and Denver has well, --- NONE!

Ann: I’ve met your Mom. Now I’m scared. Maybe you will be our secret weapon.

Pete: Whatever. Bottom line, I’m mad as heck and I’m not going to take it anymore.

Pete: You’re darn tootin’, or should I say, you’re darn tweetin’?

Pete: Well, that’s not the way my mother taught me to fight.

Pete: No, I like being Rocky.

Ann: Lol. That training must have cleared your head of cobwebs. To fight back effectively, we will all need to become more active on social media. I wouldn’t have pegged you for a tweeter but you are constantly surprising me.

Ann: (…More like Cocky)

Pete: It’s on! http://bit.ly/12b7TSb #fightbk

Ann: So, what? Now you’re Peter Finch in Network?

Ann: I couldn’t have said it better myself. s

Have something to say to Pete? Send comments or questions to pete@nationalcoaltransportation.org 74 | COAL TRANSPORTER

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NCTA Membership List A. Stucki Company AKJ Industries Alliance Coal, LLC Alliant Energy Alltranstek LLC Alpha Coal Sales Co., LLC Alpha Products, Inc. Ambre Energy North America Ameren Energy Fuels & Services American Electric Power American Railcar Industries Amsted Rail Appalachian Railcar Services Arch Coal Sales, Inc. Arizona Electric Power Coop Arizona Public Service Arkansas Electric Cooperative Associated Electric Power Coop Associated Terminals LLC Basin Electric Power Cooperative Bosch Rexroth Corp., Pneumatics CANAC, Inc. CDG Engineers, Architects, Planners CIT Rail City Utilities of Springfield Cleco Cloud Peak Energy Colorado Springs Utilities CONSOL Energy Inc. Constellation Consumers Energy Company Cooper T. Smith CPS Energy CRMS Rail Crown Products Dairyland Power Cooperative David J. Joseph Co.

Dayton Power & Light Company Detroit Edison Duke Energy Dynegy, Inc. Ecofab Australasia Ellcon-National, Inc. The Empire District Electric Co Energy Publishing, LLC Enserco Energy Entergy Services, Inc. Exponent, Inc. First Union Rail FirstEnergy Flagship Rail Services, LLC Florida Power & Light Company FreightCar America GATX GE Rail Global Coal Sales Grand River Dam Authority Great River Energy The Greenbrier Companies Hall St. Coal Terminal Helm Financial Corp. Hendricks River Logistics Heyl & Patterson Idaho Power Company iIRX Jim Walter Resources, Inc. Kansas City Power & Light KCBX Terminals Co. Kiewit Mining Group Inc. Kinder Morgan Terminals Lexair, Inc. Locomotive Service, Inc. Lower Colorado River Authority Luminant Energy

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

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

Index to Advertisers AEP/Cook Coal Terminal. . . . . . . . . . . . . . . . . . 50 Alpha Products, Inc.. . . . . . . . . . . . . . . . . . . . . 35 Ambre Energy. . . . . . . . . . . . . . . . . . . . . . 16-17 Amsted Rail. . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Appalachian Railcar Services, Inc.. . . . . . . . . . . 67 Arch Coal Sales, Inc. . . . . . . . . . . . . . . . . . . . . 41 Associated Terminals, LLC . . . . . . . . . . . . . . . . 71 CANAC Railway Services Inc.. . . . . . . . . . . . . . 62 Canada Steamship Lines . . . . . . . . . . . . . . 38-39 Cloud Peak Energy. . . . . . . . . . . . . . . . . . . . . . 63 CN Rail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Coal Prep . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Cooper T. Smith Corporation. . . . . . . . . . . . . . . 33 Crown Products & Services, LLC. . . . . . . . . . . . 57 Donohue Railroad Equipment Inc.. . . . . . . . . . . 23 76 | COAL TRANSPORTER

Electric Power/PRB Coal Userâ&#x20AC;&#x2122;s Group. . . . . . . . 47 Flagship Rail Services . . . . . . . . . . . . . . . . . . . 40 Fuel Tech, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 69 GKG Law, P.C.. . . . . . . . . . . . . . . . . . . . . . . . . 75 The Greenbrier Companies. . . . . . . . . . . . . . . . 18 Helm Financial Corporation. . . . . . . . . . . . . . . . . 5 Ingram Barge Company. . . . . . . . . . . . . . . . . . 49 Jim Walter Resources, LLC. . . . . . . . . . . . . . . . 25 Lexair, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . IFC Macquarie Rail, Inc.. . . . . . . . . . . . . . . . . . . . . 32 Maxeefish, LLC . . . . . . . . . . . . . . . . . . . . . . . . . 9 MCRL, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Min Tech Enterprises. . . . . . . . . . . . . . . . . . OBC Mitsui Rail Capital, LLC. . . . . . . . . . . . . . . . . . . 24 New York Air Brake. . . . . . . . . . . . . . . . . . . . . IBC

NexGen Coal Services, Ltd.. . . . . . . . . . . . . . . . 59 Peabody Energy. . . . . . . . . . . . . . . . . . . . . . . . 11 Progress Rail Services. . . . . . . . . . . . . . . . . . . 19 Rail Link Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 31 The Railway Educational Bureau. . . . . . . . . . . . 75 Railway Supply Institute. . . . . . . . . . . . . . . . . . 62 Slover & Loftus LLP. . . . . . . . . . . . . . . . . . . . . 23 St. James Stevedoring. . . . . . . . . . . . . . . . . . . 73 Thompson Hine, LLP . . . . . . . . . . . . . . . . . . . . . 3 Western Fuels Association Inc.. . . . . . . . . . . . . 13 Westrail, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 30 Xcoal Energy & Resources . . . . . . . . . . . . . . . . 21

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