Coal fuels over 40 percent of worldwide energy generation, though it also finds significant use in steel production, cement manufacturing, and as a liquid fuel. With large proven coal reserves, the United States is in a favorable position to supply much of the demand – and smart coalmine developers like John Baugues and others are investing now to be a part of that supply chain.

John Baugues initial investments in the Bull Mountain mine in Montana effectively kickstarted a trend to pursue untapped coal reserves in the “Treasure State” after little new mining activity in the state for several decades. Similarly, John Baugues development of a new coal mine in West Kentucky underscored the region’s significant resources and their ability to meet rising demand for fuel used in pollution-cutting utilities. Domestic energy needs rely heavily on domestic coal production, and John Baugues Jr’s shows that investing in local coal reserves to meet those needs is a winning strategy. Not only will John Baugues Jr’s projects supply a needed resource, but they’ll also generate new jobs and increased tax revenues for local communities.

The lesson: with domestic and international coal demand on the rise, the time to invest in coal development is now.

Coal entrepreneur John P. Baugues Jr. has joined forces with Management Energy, Inc. to open a new mine in coal-rich Montana.

The partnership brings together successful coal mine developer John Baugues  and a nationally recognized team of consultants at Management Energy, an exploration stage company that also specializes in coal extraction and distribution.

The new company, led by John Baugues, is looking to Carbon County for its next venture. Carbon County is known for its high-quality low sulfur coal reserves.

With Baugues at the helm, the coal mine developers have already begun laying the foundation for future mining operations. The company currently has agreements to purchase and develop two coal fields in

The new coal projects come on the heels of another Baugues coal initiative – the Bull Mountain coal mine, which opened as Signal Peak in 2009. Bull Mountain was the first underground mine to open in Montana in the last three decades and sparked new interest in the development of Montana’s rich coal reserves. John Baugues Jr. led the Bull Mountain coal mine project and sold it to Ohio-based First Energy for over $350 million plus royalties.

With John Baugues’ decades-long experience in the coal mining business, a proven track record in new mine development and intimate knowledge of the intricacies of Montana coal, the Carbon County coal mines are being looked to as models of 21st Century coal development as well as engines of economic growth in the area.

John Baugues, Jr. and Coalmine Development Fundamentals: quality resources John Baugues, Jr., a fourth-generation coalmine developer from West Virginia, knows that in order to have a successful coal mining operation, you first need access to a promising source of coal.

 The effects of pending Environmental Protection Agency regulations combined with economic factors have resulted in a decision announced Wednesday (9/19) by PPL Montana to place the J.E. Corette power plant in Billings into long-term reserve status beginning in April 2015.

“Our detailed analysis has shown that to meet the emission reductions required by EPA’s Mercury and Air Toxics Standards, we would need to invest $38 million in the Corette plant. We simply cannot justify that level of spending in the current wholesale power market in the Northwest,” said Pete Simonich, PPL Montana vice president and chief operating officer.

Wholesale power prices have been depressed in the Northwest because of declining electricity use and an abundance of new wind energy projects subsidized by federal production tax credits.

PPL Montana plans to operate the Corette plant until requirements of the Mercury and Air Toxics Standard take effect in April 2015. The plant will then be placed in reserve status, commonly called “mothballing.”

Mothballing the Corette plant, rather than shutting it down permanently, gives PPL Montana the opportunity to resume operations at some point if conditions change.

The 154-megawatt power plant, which uses low-sulfur coal from the Powder River Basin, has 35 full-time employees. The plant began operation in 1968.

“We respect and appreciate the skills and dedication of the plant’s employees in meeting the many operational, environmental and economic challenges they have faced. We expect no immediate change in the number of jobs at the plant, and we pledge to work with plant employees to ensure that the transition period over the next two and a half years is as smooth as possible,” Simonich said.

PPL Montana also operates the Colstrip power plant, which is not affected by the Corette decision and is better positioned to meet the requirements of the Mercury and Air Toxics Standards.

PPL Montana owns more than 1,200 megawatts of coal-fired and hydroelectric generating capacity across Montana and has offices in Billings, Butte and Helena. PPL Montana and its 500 employees support educational, environmental and economic development programs across the state. PPL EnergyPlus operates a trading floor in Butte that markets and sells power for PPL Montana in wholesale and retail energy markets throughout the western United States. PPL Montana and PPL EnergyPlus are subsidiaries of PPL Corporation (NYSE: PPL). More information about PPL Montana is available at www.pplmontana.com.

Contact:  David Hoffman, 406-431-6783, mdhoffman@pplweb.com

]]> http://synergystation.com/energy/corrette-coal-power-plant-to-be-mothballed/feed/ 0 http://synergystation.com/energy/vote-for-energy-and-natural-resources-in-montana/ http://synergystation.com/energy/vote-for-energy-and-natural-resources-in-montana/#comments Tue, 11 Sep 2012 18:40:38 +0000 Laura McRae http://synergystation.com/?p=7179 By:  Republican Gubenatorial Candidate, Rick Hill

Energy & Natural Resource:

I am not ashamed to call Montana the Treasure State. With an abundance of natural resources that other states can only dream of, Montana has the potential to supply energy and natural resource commodities to our entire nation and the global economy beyond. We should be on the cutting edge of developing new technologies in wind energy, clean coal, oil and gas development. Utilizing our natural resource wealth translates directly into new jobs for Montanans and a more robust tax base.

I was the original driving force behind the push to develop the Otter Creek Coal tracks as part of the New World Mine agreement. And I’m ready to do more. There are many other opportunities for oil, gas, coal, and wind development in our state that have the potential to revolutionize our economy.

Oil & Gas:

Wyoming, with 46 rigs and North Dakota, with 150, have been able to benefit from the extensive development of their oil and gas resources, Montana’s oil and gas development has remained stagnant at a rig count of eight.

We must utilize our oil and gas resources to their full extent and work to minimize frivilous lawsuits and restrictive federal regulations that inhibit development.

The development of Montana’s oil shale is essential to the growth of the industry and to increasing the availability to high-tech, high-wage jobs for Montanans. The use of hydraulic fracturing, known as fraccing, to efficiently gain access to larger amounts of oil in Montana has opened the door to energy supplies that were formerly unavailable.

Amid the beat of bongo drums and a smoky haze of questionable origin, they plan to confront Montanans with a choice about our economic future.  They want our massive coal resources left in the ground forever. The out-of-state environmental groups organizing this protest recognize the same fact that has many Montanans excited—our state has more coal than almost anywhere else in the world, and right now we don’t produce very much of it.

Montana has more coal than any other state; in fact we have twice as much coal as the number two state, Wyoming. And among coal-producing states, Montana produces far less of our reserves annually than anyone else. Add those two facts together, and Montana has by far the most potential in the country to significantly increase coal production.

Montana has historically been a minor coal producer for a number of reasons. One is transportation—other states, Wyoming among them, are closer to big Eastern and Midwestern coal markets. But Montana has also put up significant regulatory barriers that have discouraged coal development. For instance, Montana has an effective coal severance tax rate nearly four times greater than any other state, and Montana has what is considered by many to be the most inefficient legal system in the country.

But now, the landscape seems to be shifting in Montana’s favor. Markets to the west of Montana, including over-seas markets in Asia, are seeing a rapidly-expanding demand for coal. That puts us in a geographic advantage over all other coal-producing states.

These developments have not been lost on environmental groups, and that’s why they’ve made Montana ground zero for their anti-coal campaign.  To go the way of the environmental protesters would be an incredible detriment to our state. The proposed Otter Creek mine would create over 2,000 new jobs and result in $200 million in economic activity each year. Tax revenues from Otter Creek would add $92 million to state and local governments annually—allowing for tax relief for homeowners and new investment in education and infrastructure.

And that’s just one new mine. The potential is so much greater than that. Montana has so much coal that we’ll never be able to use it all. At our current production rate, we’ll be digging coal in Montana for nearly 1,700 years. We have enough coal to supply the entire U.S. electricity demand for over a century.

Since we have more coal than we’ll ever need, it’s in our best interest to sell a tiny fraction of it to foreign markets where the demand is growing.

Increasing coal development in Montana will have a transformative effect on our entire state’s economy. The opportunity is huge, it’s here, and it’s now. To say “no”, as the environmentalists would have us do, would be like tearing up a jackpot lottery ticket.

Yet to turn down this opportunity is not so far-fetched. Already there are elected officials in Montana who have sided with the environmentalists in their war against Montana’s coal.

Most notable is Steve Bullock, who led the opposition on the State Land Board against Otter Creek. Now Bullock is raising a significant portion of his campaign cash from those same environmental groups who will be protesting in Helena this month. They’re organizing on Bullock’s behalf because they know he’s their best chance to keep Montana’s coal in the ground.

The great irony is, though, that if Montana were to take the advice of the out-of-state environmental groups and shut down our coal production, we will have done absolutely nothing to reduce carbon emissions. That’s because emissions are driven by demand, not supply. If Asian markets can’t get Montana coal, then they will continue to buy coal from suppliers in Australia, Indonesia, and South Africa.

Reducing Montana’s coal production hurts our state’s economy, but doesn’t accomplish much else.

The anti-coal protest is aimed at voters in Montana. The environmentalists are making their case that Montana can do without more coal production. What voters really need to recognize is the incredible economic opportunity our state will be giving up if we elect the environmentalists’ anti-coal candidates.

Senator Ed Walker serves on the Montana Senate Energy and Natural Resources committees. He represents Senate District 29 in Yellowstone County.

With the rapid industrialization and expanding populations of emerging nations like China and India, the world is now experiencing its greatest ever need for coal, oil and natural gas. All of this  places an increasing burden not only on on global energy resources but on the environment as well.  In a May 2009 report from the US Energy Information Administration (EIA), a governmental source providing official energy statistics, the total world consumption of marketed energy will increase by 44% over the 25 year period evaluated (2006 to 2030).

China and India will most likely continue to be the fastest-growing global economies based on their burgeoning populations.  As a result, they will be the largest consumers of energy for several generations. Since 1990, energy consumption as a share of total world energy use has increased significantly in both countries. In 1990, China and India together accounted for about 10% of the world’s total energy consumption.  By 2006 their combined share was 19%.  With continued robust economic growth, their combined energy consumption is projected to grow to 28% of the world’s energy consumption in 2030. In contrast, the United States’ share of total world energy consumption will drop from 21% (2006) to @ 17%  by 2030, according to the EIA.

While the US is often viewed as the BIG PIG when it comes to energy consumption, robust growth in Asia will increase its energy demand by 104% from 2006 to 2030. Part of this increased demand will be met by China through its ten year energy development plan which includes the construction of a new coal fired power plant every week.  In reality the nation has little choice as it continues in its quest to satisfy the demand for energy as a direct result of its population urbanization and societal industrialization.  Other global regions projected to substantially increase their industrial capacities and  thereby their demand for energy include  the Middle East, Central and South America (by 60%) and Africa (by 50%).

Although oil is and will continue to be the predominate fuel, natural gas will come to play a more significant role in the generation of electricity worldwide. This energy source is more efficient, cost effective and emits less carbon in the consumption cycle than other fossil fuels. The EIA sees total natural gas consumption increasing by an average of 1.6% per year which will mean growing from a usage total 104 trillion cubic feet in 2006 to 153 trillion cubic feet in 2030. This increase will be further fueled by continued up swing in world oil prices.  To bring this all a little closer to home here in Billings, MT….It’s estimated that 20 new power generation plants fueled by natural gas, are slated to be built in eastern Montana and eastern North Dakota over the next few years. these plants will be powered by the natural gas currently being burned off on Bakken wells in the Williston Basin area.

According to the EIA, the combination of natural gas and coal account for just over 60% of total world electricity generation. These two fuel sources will continue to be the world’s most important components of electrical generation with an increase to 64% of global supply by the year 2030, according to the EIA.  While Asia and parts of Europe have substantial coal reserves (primarily in Mongolia and Russia), there is a general lack of infrastructure to support the harvest of these vast natural resources. Thus China and Japan are beginning to turn the power of their purse strings towards coal sourced from Montana and Wyoming with a  tremendous willingness to pay premium prices for this Treasure State fuel source.