Demonstrated Reserve Base of Coal by State and Rank, 1997 (Million Short Tons) StateAnthraciteBituminousSubbituminousLignite Alabama Alaska Arizona Arkansas Colorado25.58,7113,8304,190 Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisana Maryland Michigan Missouri Montana New Mexico2.33,7068,804- North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania South Dakota Tennessee Texas Utah Virginia Washington West Virginia Wyoming U.S. Total7, , , , Sources: EIA Coal Reserves Data Base Program, State geological and mineral resource surveys, and other geological reports.

U.S. COAL RESERVES RECOVERABLE - 10% U.S.G.S - 50% DOE “UNRECOVERABLE” - TECHNOLOGICALLY - ECONOMICALLY - (EXTRACTION, RECLAMATION COSTS)

SUPPLIES OF COAL UNITED STATES - 3 TRILLION TONS (50% IN WYOMING, MONTANA, NORTH DAKOTA) WESTERN COAL - 60% LOW SULFUR (0.7%S) - AT STRIP MINING DEPTH - >1000 MILES FROM DEMAND CENTERS - $5- $7/TON

World Coal Reserves, 1995 From Shepherd and Shepherd, 1998

Coal Deposits and Production for the World in Million Tons of Coal ( ) Country Total ResourcesReservesCumulative Production Australia ,187 Canada China Germany India Poland South Africa Former Soviet Union United Kingdom United States Other Countries ,970 Total World *Data is reported in million short tons (2000lb = 1 ton)

AVAILABLE COAL ENERGY 3 TRILLION TONS X 50% RECOVERABLE X 2000 LB/TON X 10,000 BTU/LB = 3 X BTU U.S. CONSUMPTION = 80X10 15 BTU (TOTAL) YEAR SUPPLY AT PRESENT COAL CONSUMPTION RATES (20 X BTU/YEAR) YEAR SUPPLY

Surface Underground Lignite Anthracite Subbi- tuminous Bituminous Gulf Coast unk > < Western Appalachian Interior (midwest)

Distribution of Coal Producers' Output By Company Type In The U.S. IndustryNumber of CompaniesCoal Production 10 6 tons10 6 tons/ CompanyPercent Coal Oil and Gas Utility Steel Other Total

Atomic H/C Ratios From Wiser, 2000 Arrow in direction of… Solid-liquid-gas Ease of transport Less solids pollution Less air contamination

COAL RANK 1.ANTHRACITE -14,000 BTU/LB 2. BITUMINOUS -12,000 BTU/LB 3. SUB-BITUMINOUS -9,000 BTU/LB 4. LIGNITE (30% WATER) - 7,000 BTU/LB

TABLE 4 Representative Composition of Western Lignite (As Received) Proximate AnalysisUltimate analysis Fixed carbon 27.2%Carbon 44.9 % Ash 11.7%Hydrogen 3.4% Water 25.4%Oxygen 13.2% Volatiles 34.5%Nitrogen 0.2% Sulfur 1.2%Sulfur 1.2% Heating value 7500 Btu/lbAsh 11.7% Water 25.4%

Coal Summary….. The good news…. –High energy content –We have a lot of it The bad news…. –Solids, air pollution issues –Mine safety –Not easy to transport

EXTRACTION TRANSPORTATION PREPARATION CONVERSION - GASIFICATION - LIQUEFACTION - COMBUSTION POLLUTION CONTROL- PARTICULATES - SO 2 - H 2 S - NO X