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Re: (erielack) RE: Coal, Iron Ore and Steel



There are 2 additional factors that that contributed to the decline in coal 
use in the northeast.  Following WW 2 may manufacturing facilities moved out 
of the area to lower cost regions of the country.  Many of these facilities 
used coal to power the factory.  Of course there was no need to ship coal to 
a shuttered facility.

The larger impact on coal use in the northeast was the new regulations 
enacted about 1970 that imposed air quality requirements.  The remaining 
industrial coal users and electric utilities switched to fuel oil and 
natural gas to meet the new requirements.  The power plant near West End 
noted by Paul Tup (PSE&G's Hudson Station) switched one of its units to oil. 
The second unit continued to burn coal into the 1980's (and may still be 
doing so), but it is delivered by barge.  It was much cheaper to convert an 
electric generating unit to burn oil or gas than to install the necessary 
equipment to allow continued use of coal and meet the regulations.  Many of 
PSE&G's generating units were designed to burn either coal of natural gas. 
They would burn coal (later oil) in winter and natural gas in summer when 
the gas was not needed for home heating.  Boilers that continued to use coal 
were also switched to a lower sulfer supply to meet the new regulations and 
the end result was the closing of many mines, in Ohio and elsewhere, that 
contained higher sulfur coal.

Large amounts of PRB are used in the east to help meet even more stringent 
air quality requirements.  In addition to the plant noted by Randy, there is 
another large generating plant in southern Indiana, about 40 miles east of 
Evansville that burns on the order of 5 million tons a year, but it is 
delivered by barge.  Most of the PRB is railed to the Mississippi and then 
barged to the power plant.  If Indiana is too far west, there are at least 2 
plants in the Cincinnati area, one of which burns 2-3 million tons a year, 
and at least one plant in the Pittsburgh area besides the eastern Ohio plant 
served by the OC.  There is a very large power plant south of Detroit that 
has been burning PRB since the mid 1970's.  I am sure there are many other 
power plants east of the Mississippi that burn PRB today and this trend has 
been accelerating in the last decade.  While the original destination of PRB 
may have been for local consumption, today the Ohio river valley is a 
significant market for PRB.

The statement that the first trainload of PRB coal came out in 1984 is 
incorrect.  A new rail line built in the early 1980's to increase the 
capacity of the rail lines in the basin.  The building of that line is quite 
a story on its own.  Significant amounts of coal were coming out of the 
basin and headed east for a least a decade before the new line was opened.

Pete S 



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