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2007 UMA Platinum Convention Sponsors: WHEELER MACHINERY COMPANY HISTORY The Formation of Caterpillar, Inc. Shortly before World War I, there were more than 200 manufacturers building track-type tractors. This was a new industry. Tractors were replacing horses and mules on farms and on construction sites all over the country. In 1925, two prominent tractor manufacturers, C.L. Best Co. and Holt Manufacturing Co., merged to form Caterpillar, Inc. The new enterprise had just three products to sell: the 2-ton, 30-ton and 60-ton tractors. Caterpillar established a good dealer organization and developed a dependable supply of parts and service readily available for the products sold. Before Wheeler Machinery Company In 1926, Herbert Landes acquired the first Caterpillar dealership in the Intermountain West, and Jesse Wheeler, a retired Studebaker dealer, came out of retirement to help Herbert run the business. In 1929, Jesse's son, J.K. Wheeler, joined the firm as a sales representative and sold Caterpillar products from Winnemucca, Nevada, to Rock Springs, Wyoming and from Blackfoot, Idaho to the Arizona border. Herbert Landes sold out to Don Robinson in 1944, who sold out to J.K. Wheeler and Walter Kershaw in 1951, at which time a new corporation, Wheeler-Kershaw Co. was formed J.K.'s son, Don Wheeler, began working in the shop and yard in 1947 while attending the University of Utah. After graduation and two years in the U.S. Air Force, Don Wheeler rejoined the firm in 1955 as a floor sales representative. In 1956, Lyle Campbell was hired as the administrative assistant to J.K. Wheeler. Lyle brought with him a B.S. degree in Mechanical Engineering and a Masters in Business Management. Wheeler Machinery Co. - A Dream Is Finally Built Walter Kershaw sold his interest to J.K. Wheeler in 1957, and the company's name was changed to Wheeler Machinery Company. Two years later, the company moved to a new 65,000 square foot facility located at 300 West 2100 South in Salt Lake City, Utah. Wheeler conducted its business from this location for 21 years, 1959 to 1980. Don Wheeler and Lyle Campbell assumed the leadership of the company in 1971, as J.K. was approaching retirement age. They acquired ownership control in 1981 after J.K.'s passing. Two of Lyle's sons, Rob Campbell and Scott Campbell, began working in the parts and service departments in 1978 and 1979, respectively, while attending college. Another of Lyle's sons, Paul Campbell, began working as a sales representative in 1988, upon his graduation from college. Service, Integrity, Stewardship Don Wheeler and Lyle Campbell led Wheeler Machinery Company capably for 25 years, from 1971 to 1996, during which time they built a legacy of service, integrity and stewardship, while doubling the number of employees, from 300 to 600. In 1980, as a result of company growth, Don and Lyle moved the company to a brand-new, 250,000 square foot facility on 80 acres of land at 4901 West 2100 South Salt Lake City, Utah. Today, this state-of-the-art structure is still among the largest, most advanced equipment dealer facilities in the world. In 1996, Rob, Scott and Paul Campbell acquired ownership control and assumed the leadership of the company, as Don and Lyle were approaching retirement. The Campbell brothers formally adopted service, integrity and stewardship as the company's Guiding Principles and established a Ten Year Vision to have Wheeler Machinery Company be the top equipment distributor and services supplier in the Western United States, as measured by market share, return on assets and customer satisfaction. Today, the company is ahead of schedule with Rob Campbell as president and Paul Campbell as vice president of sales and rentals. Strength, Support, Solutions Much has changed in the 82 years since Caterpillar began selling its three sizes of track-type tractors. Today, Wheeler Machinery Co. sells, rents and services more than 400 Caterpillar-brand machines and power systems, from truck engines and generator sets to skid steer loaders and excavators to 360-ton mining trucks. Caterpillar machines and power systems are industry leaders in reliability with a reputation for retaining high market values. Wheeler Machinery Co. also sells, rents and services Challenger farm machinery, Trail King trailers, Wacker construction equipment, trench boxes, Valew water tanks, Multiflo pumps and Trimble laser and GPS systems. In 2001, management established Solutions Financial Services, a finance company that helps Wheeler's customers purchase machines, pay for parts and service work, pay off old account balances and consolidate debts into lower monthly payments. This new finance company also owns a 50 percent interest in an insurance agency to help Wheeler's customers purchase all types of insurance at good rates. In 2002, management established Wheeler Transport, a trucking company that helps Wheeler's customers efficiently move their machines from job to job. Safety is an important part of Wheeler Machinery Co. During 2007 Wheeler hit a milestone of working 1-million hours without a Lost Time Accident. Wheeler was recently named the safest Caterpillar Dealer in the West and the third safest dealer in the U.S. This was achieved by using the TRACK safety awareness system: Think through the task, Recognize the hazards, Assess the risks, Control the hazards, Keep safety first in all tasks. Rio Tinto|Kennecott was featured in the September issue of the Utah Mining Association newsletter EVENTS TESTIMONY OF UTAH GOVERNOR
JON M. HUNTSMAN, JR. Mr. Chairman and Members of the Committee: Thank you for inviting me to testify this morning about a tragic event in our state's history - the collapse of the mine at Crandall Canyon - and the importance of mine safety to the citizens of our state and this great nation. It is an honor for me to be here today alongside members of these wonderful families who endured weeks of excruciating, and possibly needless, uncertainty regarding their loved ones. On August 6, 2007, my office received word of the mine collapse. Over the next several weeks many unsuccessful attempts were made to rescue those six miners trapped inside. During one of the many heroic rescue attempts, three miners were killed and several others injured. The families of all the miners who died and were injured deserve to have a full understanding of the circumstances that led to the deaths of their loved ones. Coal has been an important part of Utah's economy for decades and will continue to be for generations to come. As such, it is incumbent upon us to learn what might be done differently in the future to protect the safety and welfare of our brave coal miners. Our miners know the inherent danger associated with their line of work, but have generally been willing to accept some risk in order to be employed at the mines. Many have told me that they would like to make the mines safer but are concerned that if the mines become overly regulated, the owners will close the doors. The mines are the economic base of many of these communities which would be devastated by such a closure. These communities are already struggling with not only the closure of the collapsed Crandall Canyon Mine, but also the subsequent temporary closure of the Tower Mine. Therefore, we must all, at the state and federal levels, strike the right balance between protecting the health and safety of our miners and appropriate regulation of the mining industry. The federal government has regulated mine safety in Utah since 1977, upon the creation of the Mine Safety and Health Administration. Following that federal action, the state's role was reduced by state legislative actions over the next several years. Since 1987, state involvement in miner safety has been limited to miner certification. This most recent horrific accident at Crandall Canyon has been an extremely painful reminder that Utah must critically assess its role in ensuring mine safety. To this end, I have created the Utah Mine Safety Commission, chaired by Scott Matheson, Jr., former dean of the University of Utah Law School and former United States Attorney. The Commission members include former United States' Senator Jake Garn, Huntington Mayor Hilary Gordon, Price Mayor Joe Piccolo, State Senator Mike Dmitrich, State Representative Kay McIff, Dennis O'Dell, Safety and Health Director of the United Mine Workers of America, and David Litvin, Utah Mining Association President. The Commission is charged to:
This Commission is a panel of extraordinary public servants. In order for them to be able to serve Utahns well, they need to work closely and collaboratively with MSHA and its investigation team. It's important for them to have real-time access to the information being gathered in order to implement needed changes at the state level. To accomplish this, I call upon the U.S. Department of Labor, through MSHA, to begin providing logical points of connection with our UMSC that will allow a useful flow of information from the ongoing federal investigation. Today, such a connection does not exist and the risk of uneven outcomes is very real. In summary, the State of Utah is concerned that a mine collapse like that which occurred at Crandall Canyon never happen again in Utah or anywhere else. And, if it should occur, that we have in place protocols and equipment that will protect and save miners' lives, as well as expedite successful recovery efforts. Thank you. Biography Wayne Holland Jr. is the staff representative for the United Steel Workers in Utah and northern Nevada and is himself a third generation copper miner. Mr. Holland's responsibilities include representing over 1300 hard rock copper miners, with over 500 of these workers employed in MSHA regulated mining and concentrating facilities. Mr. Holland has been involved in MSHA training as a worker and as a trainer of Miners Representatives and Joint Safety and Health Committees in the Copper mining industry. Also, Mr. Holland is chair of the Utah Democratic Party. Thank you Mr. Chairman, Congressman Matheson, and members of the committee for inviting me here today to offer my perspective on the tragedy at Crandall Canyon Mine. First let me say that every Utahn, and that includes myself as chair and the Democratic Party of Utah, should commend Gov. Jon Huntsman Jr. The governor's progressive bi-partisan approach is the approach I hope Congress will take. The governor's appointment of his Democratic opponent during the last election, Scott Matheson, one of Utah's most distinguished and respected citizens, to lead our state investigation has created confidence that the process will result in a constructive outcome. The tragedy of the initial collapse that killed six miners on Aug. 6 was magnified when the mountain came down on their rescuers several days later. As someone who has been closely involved with attempts to hold mine owners accountable for worker safety for most of his adult life, I know that these events have significant and long-lasting impact on mining communities. The nation's miners employed in both underground and open-pit mining operations total about 225,000. In the past 21 months, 121 miners have died in U.S. mining operations. This year alone, 24 miners have died in coal mines and 25 have died in metal/non-metal mines. Our government owes our nation's miners a great deal. It's been a tough summer. The people of Carbon and Emery counties just want to get back to the business of living: working at decent paying jobs, making sure their kids are OK in school, going to church, enjoying Utah's spectacular high-mountain country. They deserve to know that as they try to get on with their lives that their government will implement effective protections and assure aggressive enforcement. Mr. Chairman, you, your committee, and members of this and the previous Congress are to be congratulated for leadership in protecting our miners. You acted decisively in pushing through the MINER Act of 2006. But in the immortal words of Yogi Berra, "It seems like déjà vu all over again." Mr. Chairman, when you introduced the 2007 mine safety and health bills on June 19, you said the MINER Act of 2006 was "intended only as a down payment on what was needed to clean up years of neglect and backsliding by this Administration and an industry that had become, by its own admission, overly complacent." You said implementation had been slower than anticipated. You said, "Last year we acted with urgency but too late; this year, it is our hope to enact needed legislation before the next tragedy occurs." Again, that was on June 19. Sixty-five days later, at 2:48 a.m., a mountain in Wasatch Plateau came down on six miners working a seam of coal about 2,000 feet below ground. Ten days later, at 6:39 p.m., nine rescuers were buried when the mountain came down again. Six made it out alive. Mr. Chairman, these men were heroes. Coal miners in Utah and their families understand the dangers of being inside an unstable mountain. They know the signals the mountain sends. The most recent had occurred just four days earlier. They know about the disaster in Alabama, for instance, in which 12 miners died September 2001 trying to get to one injured miner. They went inside anyway. Mr. Chairman, I am not a mining engineer. I do not know for a fact that Crandall Canyon Mine was too dangerous under the mining conditions employed by the operator and very questionable mining plan. I do not know that so-called "retreat mining" should never have been allowed. This is what I do know: I know that when I go back to Helper or Price, Huntington, Castle Dale or Orangeville I want to be able to walk down the street and if the widow, wife, or children of a miner comes up to me, I want to say, "NEVER AGAIN. Those guys back in Washington are doing whatever they possibly can to make sure you won't have to go through the horror of last summer never, ever again." I know that NEVER AGAIN should the dedicated public servants of MSHA fear losing their jobs because they stand up to a mine owner with political connections and refuse to sacrifice worker safety. I know that NEVER AGAIN should any administration be allowed to appoint a Secretary of Labor without the experience and background necessary to assure that America's working families get the protections and enforcement they deserve. Miners and their families don't want empty words. They demand that their representatives here in Washington examine life-saving and proven technologies - including wireless communication devices, safe haven chambers, and personal tracking devices - that have been widely used by underground miners all over the world. They demand MSHA have the enforcement authority to do its job, with miners and their families getting the uppermost consideration. Mr. Chairman, I cannot close with words more eloquent than those you chose in June: (quote) "As we focus this year on how to address this country's energy problems, let us not forget to provide for the safety and health of the workers who provide the raw materials that power this country." Mr. Chairman, I'd like to tell the people back in Emery and Carbon counties that Congress will not wait for any more miners to die before it acts. Thank you. I'd be happy to answer any questions.
APPROVAL MOVES RIO TINTO CLOSER TO BUYING ALCAN INC. Rio Tinto PLC's $39.65 billion (27.99 billion euros) purchase of Alcan will make Rio Tinto, which owns Utah's Kennecott Copper, the world's biggest producer of aluminum and bauxite. Approval from regulatory authorities is a condition of Rio Tinto's offer to purchase Alcan's outstanding shares. The company has also received clearance from Canadian, U.S. and Australian competition authorities. The deal is set to close as planned in the fourth quarter of 2007. Rio Tinto and Alcan's main rivals will be the Alcoa Inc. of the United States and Russia's Rusal. TWO KENNECOTT BUILDINGS GET
'GREEN' RECOGNITION COPPERTON — Improving employee productivity is one reason Kennecott Utah Copper Co. recently reinvented its Mine Administration Building and spruced up its visitors center. But the other reason Kennecott has invested millions of dollars into its mine buildings is the company values being recognized as an environmentally conscious community member and employer, said general mine manager Ted Himebaugh. "This (project) becomes an icon to the people that work here that says this is different, the company cares about this, and when we ask our employees to be environmentally friendly, we send a huge message by doing it ourselves," Himebaugh said. Kennecott's new administration building and remodeled visitors center are the first of the mine's buildings to receive a Leadership in Energy and Environmental Design silver certification. The company spent some $2 million on the administration building to add reusable carpet and use recycled materials for 20 percent of the building's materials — but it doesn't look like it, said architect Garth Shaw. "You don't walk up to this building and think it's a green building, but that's the challenge for an architect," Shaw said. Waterless urinals and low-flow toilets limit the amount of potable water that will be used in the building. Sun shades and light shelves control the amount of natural sunlight that enters the building. And light sensors accordingly decrease or increase the amount of artificial light that is projected. Shaw designed the administration building in six different pods so that it can be dismantled and moved easily, eliminating the need to construct a new building every 10 years. The visitors center was moved to another area to facilitate mining procedures and updated to have less of an environmental impact. The buildings cost about 15 percent more to include the environmentally friendly details, but Shaw and Himebaugh say the initial increased cost is worth it. "When you get started, you have to decide if it's worth it," Himebaugh said. "We made a lot of changes to get to where we are now."
ARCH COAL DELIVERS 'SOLID RESULTS' IN Q3 Arch Coal Inc., which has three coal mines in Utah, said its net income for the third quarter 2007 was $27.2 million, or 19 cents per share, compared with $50.8 million, or 35 cents per share, in the same period a year earlier. Those earnings were based on revenue of $49.8 million for the quarter that ended Sept. 30. Arch took in $82.2 million in the same quarter in 2006. For the first nine months of 2007, Arch's earnings added up to $93.4 million, compared with net income of $181 million from January to September 2006. Arch Chairman and Chief Executive Steven Leer said the company "continued to deliver solid operating results during the third quarter of 2007, despite weaker market conditions than in the year-ago period." He cited several factors for expecting a brighter future. During the next four years, power plants will go online around the country that will require an additional 50 million tons of coal to operate. Arch is positioned to supply that demand, Leer said, citing the early opening, on Oct. 1, of the Mountain Laurel complex in Central Appalachia. This mining operation is expected to yield 4 million tons of coal annually. In addition, Arch has expanded its holdings in the Illinois Basin, spending $38.9 million in September to acquire 157 million tons of coal reserves and surface acreage from International Coal Group Inc. Arch now controls 375 million tons in the region, Leer said. Arch's four mines in its "Western Bituminous" region - Sufco, Dugout Canyon and Skyline in Utah, and West Elk in Colorado - improved their quarterly performances
AT UTAH MINING ASSOCIATION This month's UMA newsletter is filled with articles concerning the aftermath of the Crandall Canyon Mine accident which occurred on August 6th. Since that time, the Utah mining industry has been under the spotlight first by the media, the public, Utah state officials, Federal regulatory agencies, and lastly the U.S. Congress. The Crandall Canyon Mine aftermath has forever changed the face of Utah's coal mine industry in the areas of increased safety mine scrutiny, and possible Federal legislation that will impact the entire U.S. mining industry. With this having been experienced firsthand, I would urge all UMA members to think about these simple questions: What if some type of catastrophic event was to occur at my operation, am I and my organization prepared to effectively handle the crisis? Are we as well trained as we could be to handle the crisis? Are appropriate crisis management plans in effect and updated to appropriately respond? When things are going smoothly, it is easy for a company to become complacent. But suddenly, and without warning, the unexpected can happen. When you're faced with crisis communications, such as: an on-site accident, environmental problems and demonstrators, internal company scandal, labor unrest, company problems within the community and so on, you need quick-response, and clear thinking to handle the immediate situation…and the lingering aftermath. In a crisis, an organization's character – with all its inherent strengths and flaws – is exposed for all to see. That means managers at all levels must plan ahead. Given the range of crises that can suddenly occur – a major industrial accident, executive malfeasance, a financial scandal, product recalls, or massive class action lawsuits, to name a few – preparedness is a business imperative. We all experienced and saw firsthand how the Crandall Canyon Mine tragedy directly impacted UtahAmerican Energy, the industry workers in Carbon and Emery counties; and the aftermath of investigations, allegations, commissions, hearings, and legislation. As a wise person once said: "By the time most people come to the realization to do something, it's probably already too late." As the Utah mining industry begins to regain some degree of normalcy the paramount questions remains: Are you properly prepared for an unanticipated crisis? COLLEGE GETS $54K TO CONDUCT MINE EMERGENCY TRAINING The College of Eastern Utah in Price will receive $54,000 from the federal Mine Safety and Health Administration to conduct mine emergency training. Overall, MSHA provided seven grants totaling $500,000 from its Brookwood-Sago safety fund, named after the locations of two coal mines in which disasters killed 25 men in 2001 and 2006. Like CEU, four recipients will use the money directly for mine emergency training. Institutions in Colorado and west Virginia will spend their money on training materials for mine emergency responses. The grant program was established as part of the Miner Act of 2006, passed by Congress after three mine disasters early last year. States or nonprofit entities may apply for up to 10 grants each of which is worth at least $50,000 to provide education and training for miners and employers, with a special emphasis on smaller mines.
FUNDING A TOP CONCERN FOR
MINE-TRAINING BASE PRICE CANYON - Across a two-lane highway from the Western Energy Training Center is a hardscrabble cemetery where weathered headstones mark the graves of many of the 1924 Castle Gate coal mine disaster's 172 victims. Traces of soot also are visible here and there on training center buildings, a remnant of the dense smoke that an underground fire belched out of the Willow Creek mine after a series of methane explosions killed two coal miners and injured eight others in the summer of 2000. For the most part, however, those buildings have been scrubbed clean. With the mine's permanent closure, company surface offices have been transformed into a training and research facility for the energy industry as a whole. But the center's coal-mining sector seems likely to receive additional emphasis now because of August's Crandall Canyon disaster, which killed nine and wounded six. Initial meetings of a gubernatorial commission examining what role the state should play in future mine-safety efforts have zeroed in on the need for more training in an industry scrambling to replace an aging work force with a new generation of technically oriented employees. All the Western Energy Training Center needs to deliver that training is money. Robert Topping, hired a year ago as program director at WETC (pronounced wee-tech) is overseeing a $1.9 million budget for the fiscal year that began last Monday. The Legislature is providing $200,000 of that through the College of Eastern Utah in Price, but the rest must come from federal and state grants and fees charged to training recipients. Topping said he has 11 grant requests out now and a 12th in the works. But to Price businessman Jerry Carlson, who recruits miners for operators in five Intermountain states, relying on annual grants is not the way to assure that the center can meet the existing training needs of the energy industry, let alone adding whatever extra coal-mining training is required in the aftermath of Crandall Canyon. "We need continuous funding to look out three to four years, not just six months," said Carlson, a CEU trustee and also a prominent figure in the Southeastern Utah Energy Producers Association, which includes mining, oil and gas, trucking and infrastructure-development companies. A steady source of income from the state would solve the problem, he said. Carlson, Topping and CEU administrators Dale Evans and Miles Nelson all told the Utah Mine Safety Commission last week that WETC is the vehicle for meeting work force training needs because it pulls together industry, academia and government regulators. This unification of slightly different interests has been challenging. But it is picking up steam, aided by the Legislature's decision last spring to merge the industry-oriented Southeast Applied Technology College into CEU. The two Price-based colleges had been working on parallel tracks, with the applied technology college handling MSHA's training grants while CEU provided other training for new miners, mine rescue teams and people seeking advanced certification as electricians or foremen. Their programs now will be commingled, with CEU moving its mining department offices to WETC's buildings. Energy-related companies have paid to adapt rooms in the training center, which was bought and cleaned up with state funds. Energy companies also have donated used equipment to the center. And Topping is lobbying the federal Mine Safety and Health Administration, and the Occupational Safety and Health Administration, to open offices in WETC so that federal regulators can observe training programs first-hand to ensure they comply with codes. "All of these groups have to be sitting at the table to develop curriculum and standards," he said. But the energetic Topping also has some definite ideas about the best directions to go. "Utah will never be known for its energy production. Utah will be known for its energy innovation," he said. "We hope to shift learning from knowing to doing. You have to have people hands-on, doing it, to know how regulations affect the real world." Topping already has secured one grant that will convert a large WETC room into a simulated power plant control center. This simulator should be up and running by next May, he said, in time to help start training people to operate facilities, such as Rocky Mountain Power's three power plants in Emery and Carbon counties. All three plants will face personnel challenges in coming years as the current crop of managers and workers start retiring, Topping said. He hopes to acquire additional simulation programs that will enable WETC to train people to troubleshoot digital control systems for drilling oil and gas wells, for instance. And for the mining industry, he anticipates buying simulators that would allow incoming and experienced miners to don hard hats equipped with screens that would teach them to operate shuttle cars, continuous mining machines, roof bolters, bulldozers or haul trucks in real-world type of situations. "We can program in conditions that [equipment] operators will have to deal with," Topping said, predicting this training also could open the industry to more women by "showing that some jobs are really about manipulation of knowledge rather than lifting and carrying." Topping is intent on developing a certified mine safety professional program so retirees with a lifetime of knowledge about real-world conditions can become "effective adult educators." In addition, he envisions research projects being conducted on site that could help modernize the Castle Gate power plant, develop a synthetic biodiesel plant or processes for using by-product gases to generate electricity. Already, a pilot project spearheaded by Price-based Terra Systems has been processing fine coal waste materials into briquets of metallurgical grade coke. "We're making premium product out of waste," said Terra Systems founder Clayton Timothy, noting that college students who worked on the pilot plant have moved quickly into industry jobs after completing their education. That is just one example of how WETC can help meet work-force needs, Topping said, contending safety training will benefit companies and trainees in similar ways. And, he added, "when we see the cemetery across the road, we see our responsibility in this area." MINE DRILL INCLUDES MEDIA AND FAMILIES HOLMES MILL, Ky. - Rescue drills have always been a major part of mine safety. But the nation's high-profile disasters over the past two years have forced the industry to practice in another area: dealing with victims' families and the media. A mock disaster drill Wednesday at an eastern Kentucky coal mine had nearly 100 federal and state officials, miners and personnel role-playing as first-responders and investigators, as well as panicked family members and reporters. The daylong scenario depicted a mine fire that left a dozen miners trapped. ''It's in response to the disasters over the past [few] years,'' said Thurmond Holcomb, president and general manager of Lone Mountain Processing Company, which held the mock disaster at its Clover Fork mine in Holmes Mill. The company is a subsidiary of Arch Coal, one of the nation's largest coal producers. It has three mines in Utah (SUFCO, Skyline and Dugout Canyon) as well as operations in Kentucky, Virginia, West Virginia, Wyoming and Colorado. The company hasn't had a multiple-fatality disaster in more than a decade, said spokesman John Snider. But the mock disaster was held less than a mile from the Kentucky Darby mine, which lost five men to an underground explosion in May 2006. Those deaths, plus the 12 at West Virginia's Sago mine last year and the recent cave-ins that killed nine in Utah, all drew criticism from lawmakers, union representatives and industry officials on how victims' relatives were treated and how well information was released to the public. Safety advocates and industry experts said making family and media relations a part of disaster drills was necessary. ''It's a trend we're going to see more and more of,'' said Luke Popovich, spokesman for the National Mining Association. ''This is a way of showing that our responsibility extends beyond the life of the miners to the obligation to inform and comfort.'' Tony Oppegard, a safety advocate who represented several widows from the Darby disaster, was a little more skeptical of the effort. ''I can see it being useful if it's being done with the right intentions,'' said Oppegard of incorporating family and media into disaster drills.
FED MINE-SAFETY BOSS CALLS FOR
BETTER STANDARDS FOR DEEP COAL OPERATIONS (Source: Robert Gehrke, Salt Lake Tribune, 10/12/07) In the aftermath of the Crandall Canyon mine disaster, the head of the federal mine-safety agency said Thursday that he would like to see better standards to gauge the potential risk of mining deep coal seams, like those common in Utah, and a policy to encourage the sharing of mine safety information. Assistant Secretary of Labor Richard Stickler said he would like to see the Mine Safety and Health Administration (MSHA) moving toward targets for mine stability, although it's too soon to set those standards. "I don't think we know enough to put the parameters on it, but I think that's where I'd like to see us head," Stickler said. In his wide-ranging interview with The Salt Lake Tribune, Stickler also said he is working on a policy to encourage the sharing of information on mine safety, assured MSHA would hold itself accountable for any shortcomings and supported a state role in mine inspections. Stickler would not discuss the adequacy of MSHA's review of the Crandall Canyon mine plan or the engineering work behind the mine's design, saying those are issues that need to be addressed by the agency's accident investigation. He said he was shaken by the Aug. 6 collapse that entombed six miners, and a subsequent cave-in on Aug. 16 that killed three rescuers. It is easy to say, in hindsight, that the rescuers should not have been in the mine, he said, but experts told MSHA the safety precautions would protect the people. "Anyone who was there and part of that and wasn't traumatized in some way, I don't know, they're a lot stronger than I am," he said. Stickler was in Salt Lake City to meet with investigators and the families of the victims of the Crandall Canyon collapse. While the investigation is ongoing, Stickler said he has asked MSHA's technical experts to begin looking for common threads in mines that are prone to "bumps" - a frequent phenomenon in Utah's deep coal mines that occurs when the pressure from the mountain bearing down overwhelms the coal pillars supporting the mine, jolting the structure and shooting coal from the walls. "There's no engineering methods to guarantee there won't be mountain bumps tomorrow or the next day," Stickler said. "There are some guidelines you can put in that will reduce the risk, and that's what I hope, that we'd move in the direction of reducing the risk." He said he would eventually like to see data crunched on all working mines, so MSHA can develop guidelines for the approval of mines. Now, he said, designing coal mines is "a little bit of science, but you've got a lot of art," allowing for debate over whether a specific plan would work. "At some point in time, you've got to say, look folks, the arguing is over. You pick something that gives you a high enough margin of safety and you mandate it. That may be one way to deal with it." Stickler said MSHA is crafting a formal agreement to encourage the sharing of safety information with the Bureau of Land Management. A BLM inspector who was in Crandall Canyon months before the collapse raised questions about the safety of mining being done, but the information never got to MSHA. At a hearing last week, Sen. Edward Kennedy, D-Mass., likened the communication breakdown to the failure of intelligence agencies to share information prior to the Sept. 11, 2001, terrorist attacks. Stickler said the release of an engineering study of the mine last week was "unfortunate," because the engineering firm that designed the mine subsequently said it would not participate in the mine collapse investigation. Agapito Associates, the engineering firm, said Thursday it only sought to reschedule its meeting with MSHA investigators and would cooperate with investigators. The former director of coal mine safety in Pennsylvania, Stickler said having state inspectors working in Utah coal mines could improve safety. A Utah Mine Safety Commission, appointed by Gov. Jon Huntsman Jr., is reviewing whether the state should take a more active role in regulating mines in the future. "The answer to the question is pretty obvious: Two eyes are better than one, two people checking is better than one, two agencies is better than one," Stickler said. RETREAT MINING: STUDY NEEDED TO Imagine sitting in a tent when the support poles are pulled away. What happens? You're going to be wearing that tent like a blanket, right? It's kind of like what happened at the Crandall Canyon coal mine in August, only the poles were pillars of coal, and the roof came crashing down with the weight of a mountain behind it - with deadly results. In the aftermath of the twin tragedies at the mine in Emery County, which killed nine men and injured six, Utah Sens. Orrin Hatch and Bob Bennett are wisely seeking $1 million in federal funds to pay for an in-depth study of the type of mining that contributed to the disaster. It's known as retreat mining, a dangerous method used to recover as much coal as possible from otherwise played-out mines. The coal that helps form the structural support system for the mine is removed, allowing the roof to collapse as the miners work their way back, or "retreat," toward the mine entrance. For decades, retreat mining has been conducted with relative safety in the East, where miners plumb shallow coal seams with minimal overburden. But less is known about the practice in the West, where mining is conducted thousands of feet underground and the weight of the mountains bring incredible pressures to bear. If approved as part of a spending bill for the U.S. Department of Health and Human Services and the Department of Labor, the Hatch and Bennett amendment would provide funds to examine the use of retreat mining at depths exceeding 1,500 feet, with a goal of finding ways to make it safe. Officials at the University of Utah and West Virginia University would partner with the National Institute for Occupational Safety and Health to conduct the much-needed study. Congress should support the amendment, and the federal Mine Safety and Health Administration should put a moratorium on retreat-mining permits in the West until the results are in. Hopefully, researchers will find a way to safely conduct retreat mining, which prevents waste and preserves jobs by extending the life of older mines. If the study hits pay dirt, federal mine safety officials should move quickly to incorporate their safety recommendations into regulations, and enforce them without fail. If not, retreat mining should be banned in Western deep mines before more lives are lost.
PROPOSED MINE SAFETY RULES RAISE CONCERNS The McClane Canyon coal mine north of Grand Junction, Colo. has only 19 employees. The nearest coal mine is 75 miles away. That makes it doubly hard for McClane Canyon to comply with a proposed rule for mine-rescue teams that was the subject of a public hearing held Tuesday in Salt Lake City by the federal Mine Safety and Health Administration (MSHA). Being such a small operation, company official Rodney Head said, it is virtually impossible for McClane Canyon to fill a pair of six-member rescue teams, as the proposal requires. In addition, the company could not rely for assistance on the nearest mine, Deserado, because it is more than an hour away - the limit allowed by the proposed rule. Although the McClane Canyon mine is in Colorado, it exemplified the Utah Mining Association's position that MSHA needs to be more flexible in finalizing the proposal, which might work just fine in the East but creates problems when applied to the wide open spaces of the Western mining landscape. "There is often a disconnect between the two," association president David Litvin told the MSHA panel in the first of four hearings nationally. "Our mines are forced to do [difficult] things that in the East would be easy to do" because mines there are relatively close together. For example, Litvin said, the one-hour travel time provision is "tremendously burdensome and in some cases unfeasible," the McClane Canyon case buttressing his point. "The current two-hour limit is workable. One hour wouldn't be." He also disagreed with a requirement that mine-rescue teams must participate in two contests annually, contending team members can derive greater benefits from industry-sponsored training programs than contests in a gym or on a playing field. Above all, Litvin said, MSHA should defer final adoption of new rules until it receives guidance from the "real pros" in mine rescue, people such as Kevin Tuttle, chairman of the Rocky Mountain Coal Mine Rescue Association. Tuttle works for Rocky Mountain Power's coal-mining subsidiary, Energy West, whose mine-rescue teams perpetually do well in regional and national contests. Still, he advocated the development of MSHA-certified training programs as an alternative. "If you have a certified program out there where you get a contest problem, go through smoke, fight fire, do gas detection, why shouldn't I get as much credit for that as going to a contest and running through a problem," Tuttle asked. "Some mines have taken their team to a professional firefighting course instead of going to a mine rescue contest. They ought to have that ability." He also predicted the two-contest requirement would force Intermountain-area mines to send teams to the two existing annual contests, one in Price and one in western Colorado, overwhelming organizers. No Utahns participated in a second public hearing dealing with MSHA's proposal to require underground mines - metal, non-metal and coal - to provide rescue teams with breathing apparatuses that have four hours of oxygen, twice as much as currently required. The proposal also mandates that operators have four gas-detection instruments capable of measuring all toxic gases likely to be encountered in their mines. Hearing director Patricia Silvey said MSHA's proposals were guided by the belief that "there is no more noble cause than the service provided by mine-rescue teams." $1M AMENDMENT OK'D FOR STUDY WASHINGTON - The Senate agreed Tuesday evening to authorize a $1 million study on the safety of retreat mining in the wake of the Crandall Canyon tragedy that killed nine miners and rescue workers. The amendment orders the National Institute for Occupational Safety and Health, in conjunction with the University of Utah and West Virginia University, to examine how retreat mining is conducted in mines more than 1,500 feet deep and make suggestions on how to make the method safer for miners. Retreat mining - approved for use at the Crandall Canyon mine in rural Utah - involves removing pillars of coal holding up the ceiling and letting the roof collapse, a process deemed dangerous by critics. Six mine workers and three would-be rescuers were killed in separate cave-ins at the Utah mine in August, prompting several investigations and congressional probes. Sens. Bob Bennett and Orrin Hatch, both Utah Republicans, sponsored the amendment to the spending bill for the departments of Health and Human Services and Labor. "The tragedy at Crandall Canyon mine struck a chord with not only Utahns, but all Americans," Bennett said in a statement. "I appreciate the quick action and interest by my colleagues in the Senate to further examine the implications of deep coal mining." The study will focus on what conditions necessitate retreat mining and the susceptibility of a mine to seismic activity when the method is used, according to the amendment. It also will look at ways to improve technology for miners engaged in retreat mining. MINING UNION NOT HAPPY WITH NEW RULE CHARLESTON, W.Va. - The United Mine Workers has panned a proposed federal rule designed to improve rescue operations at the nation's 653 underground coal mines. Among other things, the proposal, in the aftermath of the recent Crandall Canyon Mine disaster in Utah, cuts maximum emergency-response time in half. "The union does not believe the proposed rule should move forward as it is written," Dennis O'Dell, administrator of Occupational Health and Safety, told a federal Mine Safety and Health Administration panel Tuesday. MSHA either misunderstood or ignored Congress when it crafted the mine rescue rule, said O'Dell, who suggested tabling the proposal and rewriting it after talking with the union, mine operators and lawmakers. The rule is aimed at complying with a federal law passed last year after an explosion that killed 12 West Virginia miners and several other high-profile fatal accidents. The proposal would require rescuers to reach underground coal mines within one hour. The current rule is two hours. Rescue teams also would have to be certified, familiar with a mine's workings and participate in two local mine rescue contests annually. Members would need at least three years of underground experience and 64 hours of training a year. The current requirement is 40 hours per year. O'Dell, however, said Congress mandated rescue teams at every underground coal mine, not just two employees from each mine serving on rescue teams as proposed by MSHA. "They should be employed at that mine," O'Dell said in an interview with The Associated Press. O'Dell and others from the coal industry also raised questions about the amount and type of training required by the rule. O'Dell told the panel that rescue teams should be required to practice at mines they are assigned to serve, though he said the union has not decided how often that should occur. Ken Perdue, from Abingdon, Va.-based mine operator Alpha Natural Resources, said the rule is going to cost his company $530,000, much of it to relocate one mine rescue station. He said MSHA's estimate that the rule would cost the industry $3.3 million a year is too low. Perdue added that the rule may eliminate mine rescue teams rather than increase their ranks because it would break up existing units and add so much training time that members would quit. "It will take years and millions of dollars for us to overcome" the changes, Perdue said. MSHA was scheduled to hold a second hearing Tuesday afternoon on proposed rules regarding equipment that would apply to all of the nation's mines, whether they mine coal or not. Mines would have to stock additional gear to bolster rescuers' oxygen supplies and improve their ability to detect dangerous underground gases and communicate with the surface. Interest in emergency response was spurred by the January 2006 deadly explosion at West Virginia's SagoMine and was renewed after this past summer's death of six miners and three rescue workers at the Crandall Canyon mine in Utah. The MSHA proposals were called for in last year's federal Mine Improvement and New Emergency Response Act. Tuesday's hearings were the third of four sessions on the proposals. MSHA has held similar meetings in Salt Lake City and Lexington, Ky. A final session is scheduled for Thursday in Birmingham, Ala.
REPORT SAYS FLAWED COMPUTER MODEL
FAILED TO SHOW RISKS AT CRANDALL CANYON MINE (Source: Robert Gehrke, Salt Lake Tribune, 10/3/07) Computer models used to help mine owners win federal approval of operations in Crandall Canyon had several flaws that understated the actual risks, a report by government experts said. The shortcomings were apparently overlooked by the Mine Safety and Health Administration, which approved the Crandall Canyon operators' plans to retreat mine - a method in which coal pillars supporting the mine are cut away, causing the roof to fall in. Six miners were entombed in the Crandall Canyon mine when the enormous pressures of the mountaintop above caused a massive "bump," where coal explodes from the walls and pillars supporting the roof. The study by the National Institute for Occupational Safety and Health said computer modeling "indicates that an elevated risk of bumps was present" in the area of Crandall Canyon where six miners were trapped by a massive coal outburst on August 6. Sen. Edward Kennedy, D-Mass., chairman of the Senate committee that oversees MSHA, said the NIOSH report "raises very serious questions about whether the MSHA review process is strong enough and independent enough." "Such questions about the review process are not just about Crandall Canyon - they have nationwide implications," he said. MSHA did its own review of the models done by Agapito Associates Inc., the consulting company hired by the Crandall Canyon operators, before it approved the proposed mining. Kevin Stricklin, MSHA's administrator for coal-mine safety, said the agency's probe into the Crandall Canyon disaster would look at why those issues weren't caught. Phone calls and e-mails to Agapito officials were not returned Tuesday. The NIOSH report questions several of the assumptions Agapito made in running its computer models, designed to measure the stability of a mine structure contemplated in mining plans. Even with those assumptions, the mining at Crandall Canyon appears to have been done in the margins of safety, with the consultant acknowledging that, based on the computer modeling, historical precedent indicated there was just better than a 50-50 chance the coal could be mined successfully. In an Aug. 9, 2006, e-mail, sent days after Robert Murray's UtahAmerican Energy Inc. took over the mine, Agapito acknowledges that the "stability factor" in Crandall Canyon was well below what is recommended by NIOSH. In deep mines, like Crandall, with comparable stability factors, "slightly more than half were successful, while the remainder encountered ground control problems," Agapito wrote. Those "ground control problems" range from damaging bumps and pillar failure to catastrophic collapse trapping miners, according to the NIOSH database. That information was not included in the consultant's formal memo to the company. Instead, the consultant relied on another, more sophisticated model - known as the LaModel - that Agapito said indicated the mining could be done safely. Keith Heasley, who designed the LaModel for NIOSH and is now an engineering professor at West Virginia University, told The Tribune recently the validity of the model hinges on the accuracy of the data put in the program. And the NIOSH report questions several of the figures and assumptions Agapito used: * Agapito assumed the coal in Crandall Canyon was 80 percent stronger than typical coal; * Pillars that had been partially extracted or collapsed were assumed to be helping to bear enormous pressures; * The consultants predicted massive pressures could be managed by barrier walls half the width that NIOSH calculated would actually be needed. When Murray's company bought the mine, there were two huge coal walls, some 450 feet wide, running on either side of the main tunnels. On the other side were vast areas, completely mined, leaving behind rubble and leaving the coal barriers to bear tremendous pressure. A standard formula used to calculate barrier widths shows the walls should have been 400 feet. The NIOSH computer models said the barriers should be at least 250 feet wide. But leaving such thick coal walls would have made it impossible to dig the tunnels necessary to mine the valuable coal left in the barriers. Agapito estimated that a 100-foot thick barrier wall would be adequate to handle the pressures and leave just enough room to dig the tunnels and recover the coal. Miners were also "slabbing" the barriers, or cutting 40 feet of coal out of the wall, weakening them further, records show. The smaller barriers let pressures shift to the pillars, which were likely unable to bear the stresses, the NIOSH report said. After a major bump in March damaged pillars and tunnels in the north barrier, operators moved to the south barrier, with Agapito arguing longer pillars could stabilize the roof and prevent future bumps. Longer pillars would have little benefit without increasing the width as well, NIOSH reported. Stricklin said the March bump was not officially reported to MSHA. If it had been, additional scrutiny would have been given to the proposal to mine in the south barrier.
'100 PERCENT PLAN' PUSHED Federal mine officials say they are making a renewed commitment to completing every coal mine inspection required by law. The "100 Percent Plan" announcement comes after it was reported that Mine Safety and Health Administration inspectors had not completed many of their inspections. In southern West Virginia, one in six inspections had not been completed in 2006, and one in eight had not been done in Illinois and Indiana. In some cases, instead of doing full inspections, the agency was relying on less thorough spot inspections. In District 9, which includes Utah, 98 percent of the required inspections were done in 2006, and 100 percent were finished in 2005. MSHA's coal mine safety director, Kevin Stricklin, told senators last week that the district was on track to complete its inspections this year. At Crandall Canyon, where six miners and three rescuers were killed in cave-ins in August, all of the inspections appear to have been completed. Assistant Labor Secretary Richard Stickler said the problem in some areas arose because of the high number of inspectors retiring or leaving the agency and being replaced by inspector-trainees who cannot do their own inspections until they complete training. To meet the goal, MSHA will temporarily shuffle inspectors to districts where there are shortages and authorize additional overtime for inspectors. "The 100 Percent Plan will ensure that MSHA has the necessary resources to fully enforce the Mine Act," Stickler said in a statement.
MURRAY A CARING CEO I have not yet read a news story that presented the true succession of events related to the Crandall Canyon Mine disaster. I have only seen one-sided, biased judgments against Robert Murray and UtahAmerican Energy. I am an independent contractor who provided interpretation service for the families involved in the recent Crandall Canyon Mine disaster. I was moved by the amount of support staff provided by the company. Not only did co-owner Robert Murray provide an interpreter to ensure the Hispanic families were receiving accurate information, he personally asked me to support them. I have never seen a CEO demonstrate such support to employees and their families in a time of tragedy. During one of the family briefings, Mr. Murray sat next to me. I told him, "Mr. Murray, you look tired and need a break." He whispered, "I will not stop until I have extinguished all resources." I am aware that Mr. Murray spent day and night at the mine. He, along with others, entered the mine when the second collapse occurred. Mr. Murray did not hesitate to go in himself, putting his own safety at risk, in order to dig out those rescue miners. How many companies show that much dedication and care during a disaster? -- Sandra Szopa, Hooper, Utah
CRANDALL CANYON DISASTER: Saying previous court rulings do not apply, a judge on denied news outlets' attempts to gain access to federal investigative hearings on the Crandall Canyon mine disaster. U.S. District Judge Dee Benson said he could "find nothing in the Constitution or in the statutes of the United States to support" the forced opening of the federal Mine Safety and Health Administration's interviews with miners and others with knowledge of the two collapses that claimed nine lives. Benson also said that element of the investigation presents different circumstances than previous court rulings cited by the news outlets. Salt Lake Tribune editor Nancy Conway said the news outlets had not decided whether to appeal the ruling or pursue another way to gain access to the interviews. Conway said the options could include speaking to Utah's congressional delegation about the issue and lobbying for a change to federal law to require the investigation be held in public. "We thought this was clearly in the public interest, and we thought we had some good basis for thinking that," Conway said. The Tribune, the Deseret Morning News, The Associated Press, CNN and other news outlets filed suit Oct. 1 against U.S. Secretary of Labor Elaine Chao for access to MSHA's fact-finding meetings. The organizations cited rulings granting access to testimony in criminal trials and the investigation into the 1984 Wilberg mine disaster. Benson rebuffed those arguments. "The court cannot make the leap that plaintiffs suggest by concluding that because the public has a First Amendment right of access to hear witnesses in a criminal trial, they also have a right of access to private government investigatory interviews," Benson wrote in his ruling. A judge ruled in 1985 journalists should have access to hearings into the Wilberg fire, which killed 27 miners. Mine owners, operators and the United Mine Workers of America participated in the Wilberg hearings. But unlike that case, Benson said the Crandall Canyon investigators have confined access to the formal inquiry to government officials. "The facts in the present case are materially different from the facts that were presented to" the court in 1985, Benson said. Utah's latest mine disaster began Aug. 6 at the Crandall Canyon mine near Huntington. A collapse there killed six miners whose bodies have not been recovered. Ten days later, another collapse killed three would-be rescuers and injured six. The ruling in the Wilberg mine disaster was issued after the interviews were completed, leading an appeals court to vacate the order. The latest MSHA panel began its probe on Sept. 17 and has been conducting interviews in various locations, including at the College of Eastern Utah. The panel, made up of MSHA employees and Utah Labor Commissioner Sherrie Hayashi, reviews documents and interviews people knowledgeable about the incident, at times under oath and in the presence of a court reporter. When the investigation is finished, the panel is to issue a final report to the public. Michael O'Brien, attorney for the news organizations, said the current MSHA investigation is a fact-finding mission just as it was in 1985, just with fewer people in attendance. Assistant Secretary of Labor David James applauded the ruling, saying it "allows MSHA's law enforcement investigation - including the questioning of witnesses - to continue without media interference that could deprive the public and the victims' families of a full accounting of what happened at Crandall Canyon." The mine's owners supported the government's position and said they wanted to protect confidential business and financial information. As for the U.S. Supreme Court cases on criminal case testimony the plaintiffs cited and Benson rebuffed, O'Brien said they are the same precedent cited by the 1985 judge in the Wilberg mine lawsuit. Benson also said his court was not the place for First Amendment policy arguments. "While it may be true that requiring all government investigations to be open would result in greater accountability and more accurate information," Benson wrote, "if such a requirement is to be imposed, it must come from a statute that is debated and passed by Congress and signed into law by the President."
BILL AIMS TO SPUR WASHINGTON - A House committee advanced legislation Wednesday to speed up development of technology to allow wireless communication in deep underground mines. The legislation, sponsored by Rep. Jim Matheson, D-Utah, adds to a comprehensive measure passed last year urging the implementation of some type of deep mine communications system. Matheson's bill, now heading to the House floor, comes in the wake of the Crandall Canyon mine disaster in Utah that killed six miners and three would-be rescue workers. Crandall Canyon had a communications system - a hybrid wired and wireless system - to allow a one-way page to workers but officials believe the collapse destroyed the antenna. Matheson's bill is aimed to "jump-start" more advanced mine communications, his office says, and would direct the National Institute of Standards and Technology to launch an initiative to come up with a new deep mine communications system. "This is a time for an all-out effort, in order to spare mining families from the ordeal that the families of the Crandall Canyon miners and mine rescuers endured," Matheson said. "We need next-generation technology that tracks and communicates with miners when accidents occur. Mine safety is our top priority and as we learned in the Crandall Canyon mine tragedy, there's a gap in our ability to locate these miners when tragedy strikes," Matheson said. The Mine Improvement and New Emergency Response Act, passed by Congress last year, said that mines should have some type of communications system using the best commercially available system. But the industry has complained that there is no system yet that would work as Congress has suggested.
MINE 'BUMP' MYSTERY INTRIGUES U. SCIENTIST There is absolutely no doubt whatsoever in seismologist Walter Arabasz's mind that what happened Aug. 6 at the Crandall Canyon mine was a "mining-induced seismic event," not a natural earthquake. What piques his curiosity now is this question: Why, after six days of stability, did measurable tremors resume Aug. 13 and continue through a second collapse Aug. 16 that killed three miners attempting to rescue six miners entombed by the first implosion? But his research is on hold until the federal Mine Safety and Health Administration completes its disaster investigation. Only then can he determine if anything happening at the mine coincided with the resumption of seismic activity. "There's something strange, yet-to-be-explained by this hiatus between 22 hours after the initial [seismic event] and Aug. 13," said Arabasz, veteran director of the University of Utah Seismograph Stations and recent recipient of a prestigious U.S. Geological Survey award for scientific leadership in helping the public and elected officials understand and reduce the impact of earthquakes. He provided a report on Crandall Canyon to the State Seismic Safety Commission on Friday. Arabasz was the first person to inform public-safety officials of the magnitude 3.9 seismic event. He called the Emery County Sheriff from the seismograph stations' office at 3:47 a.m. on Aug. 6, one hour after the pager he wore to bed went off, as is customary when a quake of 3.5 or more occurs in the Intermountain region. He immediately identified it as a "coal-mining event." That interpretation was based on the nature of the waves captured on seismograph charts, which displayed a downward motion consistent with other mining-induced seismic activity in Utah's crescent-shaped coalbeds. These types of seismic shocks were nothing new to Arabasz. Roughly 19,000 were recorded in the coal-rich Book Cliffs and Wasatch Plateau between 1978 and 2007. "What we recorded are equivalent to earthquakes - mining-induced earthquake events," he said. "Less than 2-3 percent are tectonic earthquakes." Mine co-owner Robert Murray disputed that determination, insisting repeatedly that a tectonic earthquake caused the mine's walls to implode on the six missing miners. But Arabasz said his interpretation was confirmed within 48 hours by seismologists at the University of California at Berkeley. They reached the same conclusion from studying seismic wave forms at a greater distance. "The bottom line from this expert interpretation is that this was not a natural tectonic activity and is most consistent with the collapse of a subterranean cavity," Arabasz said. Starting on Aug. 7, the university installed five portable seismographs in the vicinity of the mine. These devices detected clusters of seismic events at both ends of the 2,000-long stretch of Crandall Canyon tunnel that caved in, he said. One batch occurred within a day of the fatal collapse, the second began six days later and continued until the end of August. Arabasz is not certain why. He does not believe the drilling of bore holes from the top of East Mountain into the Crandall Canyon would have produced the seismic activity, but does not want to speculate on the cause. "We cannot interpret a [seismograph] plot like this without independent information about what was going on at the mine," he said. But that will have to wait until MSHA's probe is done. Another data oddity Arabasz would like to clear up: a 13-second discrepancy between the seismograph stations' recorded time of the 3.9 event and the final reading from a carbon monoxide detector in the mine's devastated area.
PROFESSOR: WEST NEEDS OWN MINING RULES OREM - Mine regulations based on shallow eastern mines are inadequate for deep coal mines like Crandall Canyon, a mine expert told Utah Valley State College students. Mike Nelson, a mining professor from the University of Utah, said there needs to be a western-based coal mining technology center that can establish rules and develop technology to protect miners from the dangers that lurk in the coal mines of Utah, Wyoming and other western states. Such a center would be able to better guide mine owners on how much coal can be safely removed from a mine, he said. "When you have an accident in a mine, it is difficult for me because I know how hard [miners] work," Nelson said. "But we are rich enough that we can do something to make it safer." Nelson was invited to speak by UVSC's Earth Sciences Department. His subject: modern mining practices and the Crandall Canyon mine disaster. While Nelson had not visited Crandall Canyon, he said he reviewed the mining plan and was familiar with other mines in the area. There was one attempt to learn more about what goes on in deep mines, he said. Pressure sensors have been installed in a mine in central Utah's Book Cliffs mountains. But when the mine changed ownership, the technical staff was cut, and data was lost, Nelson said. Nelson, who has worked in a mine, said the Crandall Canyon disaster was an example of a failure in ground control. When coal is removed, the downward pressure of the material above the mine is diverted, creating pressure on the walls. Nelson said mine engineers have to manage that pressure to avoid roof or wall collapses. It was such a collapse that entombed six miners in Crandall Canyon in August, killed three rescue workers trying to dig them out and injured six other rescuers. Mine Safety and Health Administration officials canceled further recovery efforts because of the mine's instability. However, most coal-mine research has been done in the coal fields of the eastern United States. Those mines are relatively shallow - 800 feet at most - compared to the mines in the western United States. In some deep coal mines, that pressure can be as high as 4,600 pounds per square inch, Nelson said. Retreat mining, the practice of removing coal pillars supporting a mine's roof, shifts the pressure on to other pillars, Nelson said. Longwall mining, where large sections of coal are removed, create tremendous shifts in pressure and increases the risk of a major "bump." One way to mitigate that, he said, is through the use of barrier wall - large pillars of coal commonly used to protect miners or structures. Nelson compared the barriers to adding additional studs around a window to maintain the wall's strength. But Crandall Canyon's owners, UtahAmerican Energy Inc., received permission to remove coal from those supports. When a major bump occurred in March, mine owners abandoned carving out that wall and moved to another one. Nelson said there were no safety standards to apply to determine if that request should be granted. Instead, it was left to an engineer's experience and best judgment. "And we all know how that ended," Nelson said. Nelson first presented his proposal for a mine training center at a meeting of the state's mine-safety task force Monday. Chairman Scott Matheson Jr. said it goes along with what he's heard from others about the need for greater training. Matheson said such an institution would also help train future mine inspectors. * Mike Gorrell contributed to this story.
GROUPS SPAR OVER SEVIER PLANT Almost a year after the Utah Supreme Court ruled they could challenge the state's permitting of a coal-fired power plant in Sevier County, environmentalists finally got a chance to make their case. Attorneys representing the Sierra Club and Grand Canyon Trust slugged it out Wednesday with their counterparts from the Utah Attorney General's Office in a bid to convince the air quality board that the Division of Air Quality's permit for the 270-megawatt plant planned near Sigurd is flawed. In a pair of day-long hearings at the division's offices that began Tuesday, the environmental groups generally: Disputed the state's assertion that the Sevier Power Company - which would operate the plant - is using the best available [emission] control technologies. Called the state's visibility analysis inadequate. Argued that the modeling analysis also has holes. "We're interpreting [policy guidelines] one way; they're interpreting them another," said DAQ spokeswoman Cheryl Heyring. Wednesday afternoon brought a duel of air pollution experts who argued the merits of the visibility data, as well as the quality of the soil and vegetation study. Ranajit Sahu, a risk assessment expert representing the environmental groups, found the analysis wanting, testifying that it focused too much on just one pollutant - sulfur dioxide. "There is clearly more than one pollutant that will be emitted from the SPC plant. I don't know why [sulfur dioxide] is more important than, say, mercury," he said. Sahu also challenged what he called a lack of detailed data for the area immediately surrounding the proposed plant in the Sevier Valley. The state's analysis of so-called "Class I" airsheds was done to comply with federal requirements protecting air quality and visibility in nearby national parks. But Sahu said no corresponding "Class II" analysis for the immediate area was done. "The Sevier Valley is pretty deep, pretty narrow, and you obviously can't build a 6,000-foot stack," he noted. "The plume will be trapped in the valley. [Residents] will have visibility impacts." But Colin Campbell, a consultant and expert witness testifying on behalf of the state, told the board that DAQ fulfilled all federal requirements, including what he called a more general review of soil and vegetation, which he called "adequate." A Class II analysis, Campbell said, was not required, adding that the Class I analysis served as a "proxy" for local impacts because of its location relative to the Sevier Valley. "The analysis met the objective standard here," he said. The air quality board will hear closing arguments on Nov. 7.
ECO-GROUPS APPEAL PERMIT Three conservation organizations are appealing a federal permit that would allow a Utah coal-fired power plant to expand, an act the organizations say would dump nearly 2 million tons of greenhouse gases into the atmosphere annually. The Sierra Club announced the appeal Friday, and is joined by Western Resource Advocates and Environmental Defense in the attempt to turn back the permit the U.S. Environmental Protection Agency issued Aug. 30 to expand the Bonanza plant southeast of Vernal. The Bonanza permit is the first issued since the U.S. Supreme Court ruled in April that the EPA has the authority under the federal Clean Air Act to regulate greenhouse gases that contribute to global warming. In the permit, the EPA denied it had to consider the impact of carbon dioxide and other greenhouse gas emissions in setting the permit's pollution control requirements. The Sierra Club says the permit is illegal, a position U.S. Rep. Henry Waxman, D-California, underscored in a Sept. 18 letter to EPA administrator Stephen Johnson requesting him to appear before a congressional committee this month to explain the "tortured new legal theory for why the agency does not have authority to regulate CO2 emissions." Tim Wagner, director the Smart Energy Campaign for the Utah chapter of the Sierra Club, said in a Friday statement that the EPA has shirked its public duty in an illegal action. "It's as if they think that both global warming and Supreme Court decisions are debatable," he said. The addition to the Bonanza coal-fired power plant would burn waste coal removed from a coal mine on the company's property that the existing generator can't burn. The new plant would mean the operator could avoid the costs of hauling the coal to a hazardous waste dump. While the state normally issues air-quality permits for power plants, the Bonanza plant is on tribal lands and under federal jurisdiction. PUSH FOR N-PLANTS POINTS TO EMERY A state representative and others pushing to bring nuclear power to Utah are looking to build not one, but two nuclear reactors in the state and are looking at Emery County as the most likely location. Last month, Rep. Aaron Tilton, a Springville Republican and CEO of Transition Power Development LLC, signed a contract to secure the rights to nearly 10 billion gallons of water a year to be used in a nuclear power plant proponents are seeking to get licensed. The contract obtained by The Salt Lake Tribune specifies the Green River in Emery County as the source for the water. Green River Mayor Ed Bentley said he'd heard his city might be the chosen location for a power plant and that the plant might be nuclear. And that's fine with him. "Anything that would provide good-paying jobs would be excellent for our community," he said. The town of 949 people sits along Interstate 70, next to U.S. 6 and adjacent to the Union Pacific rail line and power transmission lines that run along the transportation corridor, Bentley said. Sen. Mike Dmitrich, D-Price, said he, too, has "heard that they've been sniffing around for some ground out there" but didn't know specifics. "I think they've got something in the bag," said Rep. Mike Noel, R-Kanab, who works for the water district that leased its water to Tilton, but he did not know where the company was looking. Tilton, however, says the Emery County reference is mainly a placeholder and the company may seek to take water out of the Green or Colorado rivers anywhere from Flaming Gorge to Lake Powell. "We still don't know basically where the thing is going to go," Tilton said. He added the company has hired experts who are looking at the water, transmission and seismic issues. But whatever site the company settles on, Tilton said, it will be looking to build two nuclear plants, one after the other, side-by-side. Tilton said the operator would have to build the same road, rail spur, reservoir and transmission upgrades to build two power plants as one. "One unit doesn't give you the scale of economy to give the best competitive advantages," he said. Transition Power was set up with the goal of finding a good site, acquiring the land and water rights and doing the geotechnical and environmental studies needed to get an Early Site Permit from the U.S. Nuclear Regulatory Commission, said Reed Searle, a partner in the company. Transition Power would then sell its permit or partner with a power company or consortium of utilities that would build the plant, said Searle, who will soon be leaving his post as executive director of the Intermountain Power Agency, which produces coal power, three-fourths of which is shipped to California. Consumers in Utah, Colorado, Nevada and California could potentially purchase power from the plant, Searle said. Tilton and Noel, who heads the Kane County Water Conservancy District, signed the contract Sept. 20 that would transfer rights to 29,600 acre-feet of water, in exchange for payments starting at $100,000 per year and growing to $1 million by the time the plant would come on line. That doesn't mean they "got together and cooked up this deal," said Kanab attorney Ed Robbins, who helped write the document. Rather, he said, the water district board approved the agreement after several months of negotiations and review. An acre-foot equals 325,851 gallons, enough to supply a Utah household for a year but considered enough for two households in Nevada and Arizona, where per-capita use is lower. The Utah nuclear power push and the involvement of Tilton and Noel were first reported two weeks ago by the trade publication SNL Energy. The water comes from an allocation granted in 1965 for the failed Kaiparowits coal-fired power plant proposal. The Kane County water district can hold the rights for 50 years subject to the state engineer's approval of extensions. The last extension granted in 2004 came with the warning that the next possible extension request, scheduled to come before the state engineer next September, would get a more critical look. The contract may be legal between TPD and the water district, but it hasn't gotten necessary approval from the Utah Division of Water Rights, said State Engineer Jerry Olds. "When they actually want to do something, then they'll bring an application to our office," he said. Utah Regional Engineer Boyd Clayton said it's not clear whether the water rights - granted specifically for a location east of Johnson Canyon, halfway between Kanab and Lake Powell - could be used elsewhere. A nuclear plant would take water from the river to cool spent fuel rods in a pool and to feed the reactor, which takes the energy from cold water and returns warm water to the waterway. The cooling tanks are a closed system, that is, the water does not go back to the river. Returning the warm water to the Green River would have an effect on the river's ecosystem, but that hasn't yet been analyzed. Also unknown is what effect the nuclear plant proposal might have on any congressional efforts to declare segments of the river wild and scenic. While Olds said there is no doubt the water is part of Utah's share of the Colorado River and can be used in the state, an extended drought with no end in sight and a warming climate is prompting new looks at the Law of the River that determines how seven Western states have agreed to use it. Tilton's involvement in the project has prompted some critics to question whether he had a conflict of interest that he should have disclosed earlier. The representative, who has been a leading proponent of nuclear power in the Legislature, formed Transition Power in February but did not disclose his involvement until Oct. 12, and had said previously he was not involved in any nuclear projects.
CRUDE RISES TO RECORD-HIGH NEW YORK - Crude futures rose to record levels Friday, supported by worries over political tensions in the Middle East, where the U.S. imposed sanctions on Iran and Turkish troops who remained massed at the Iraq border to counter Kurdish rebels. In addition, the market was unsettled by a dawn attack on an oil vessel off the coast of Nigeria by anti-government militants and suggestions that OPEC oil shipments are not rising as quickly as expected. ''On the back of mounting evidence that the oil balances are tight, and tightening, markets are becoming increasingly uneasy over the prospects of entering the winter high-demand season with inventories at too-low levels,'' Kevin Norrish, an analyst with Barclays Capital PLC, said in a research note. While rising more than $1, crude futures retreated from an earlier all-time high above $92 as investors sold to lock in profits from the latest multiday record-setting rally. Oil futures have risen nearly $7 a barrel, or 8 percent, since the government on Wednesday reported a sharp drop in crude inventories in the United States. The inventory numbers reinforced a view that oil supplies are falling at a time of year when they should be rising to meet expected strong fourth-quarter demand. Light, sweet crude for December delivery rose $1.40 to settle Friday at a record $91.86 a barrel on the New York MercantileExchange after rising overnight as high as $92.22, a new trading peak. Crude prices jumped $3.36 a barrel Thursday. With the recent gains, the price of oil is closing in on the inflation-adjusted highs hit in early 1980. Depending on the adjustment, a $38 barrel of oil in 1980 would be worth $96 to $101 or more today. Some analysts argue that the underlying fundamentals don't support such high prices, and say speculative buying is the real reason prices are rising. Tim Evans, an analyst at Citigroup Inc. in New York, noted that despite last week's decline in domestic inventories, supplies remain high by historic standards. Also, the Organization of Petroleum Exporting Countries is set to boost production by 500,000 barrels a day beginning Nov. 1. ''What we're seeing . . . is rising supply and relatively weak demand,'' Evans said. He believes oil's ''true value'' is closer to $65 a barrel. Other petroleum futures also rose Friday. November gasoline rose 3.82 cents to settle at $2.274 a gallon on the Nymex, while heating oil futures rose 2.41 cents to settle at $2.4325 a gallon. November natural gas futures rose 0.3 cent to settle at $7.218 per 1,000 cubic feet. Pump prices have risen slightly in recent weeks to keep pace with oil's rally. UTAH URANIUM CORP. ANNOUNCES JOINT VENTURE Utah Uranium Corp. is pleased to announce the signing of a Joint Venture Agreement on the Pinto group of claims, located near Hanksville, Utah, with Consolidated Abaddon Resources Inc. of Vancouver, B.C. Under the terms of the Agreement, Abaddon will be responsible for payments to Utah Uranium totalling $550,000, the issuance of a total of 550,000 shares over the life of the agreement, and they will be required to complete a minimum of $605,000 in work on the property in a two-phase work program prior to June 1, 2008. On completion of certain milestones within the agreement, Abaddon will be deemed to have earned up to a 60% interest in the property. The first phase of the work program will encompass the previously announced drill plan on the Pinto, which will comprise the drilling of up to 50 holes to test the Salt Wash sandstone member of the Morrison formation. The Company announced October 24, 2007 the signing of a drilling contract with operations to commence within two weeks. The Pinto property covers 344 mineral claims, consisting of 6,800 acres in the Henry Mountain Syncline of East Central Utah. The Henry Mountain Syncline is an enclosed structural basin within the Colorado Plateau of southeastern Utah that is entirely underlain by the massive uranium bearing Salt Wash sandstone member of the Morrison formation. The hydraulic migration of oxygenated water containing liberated uranium tends to flow down-dip within the formation into the trapped, oxygen free static water creating a zone of major ore concentration known as a roll-front environment. The first discovery, known as the Tony M mine, was made in the 80s by Plateau Resources, a division of Michigan Light and Power, and consists of 10,898,000 pounds U308. Subsequently, the Bullfrog mine was discovered adjacent and north of the Tony M mine by Imperial Oil Corporation, and consists of an additional 12,924,000 pounds U308. These mines are currently owned by Denison Mines and are collectively known as the Henry Mountains complex, one of the largest known uranium resources in the Colorado Plateau district. Utah Uranium Corp. "UTUC" has acquired the Pinto claims from Christian (Ted) Murer P.Geo, the prospector geologist who conceptualized, discovered and currently holds a production royalty on the Tony M mine. Ted has assembled the Pinto uranium claim package using the same data and methodology. Based on area extrapolations, the "Pinto" could hold significant amounts of uranium and vanadium. Utah Uranium Corporation is a Moab, Utah based junior exploration and development company focused on the acquisition of past producing underground uranium mines, highly prospective new uranium projects and other conventional and non-conventional energy projects. All of the uranium projects acquired to date, in addition to those under review by the Company are within economic haul distances of the White Mesa Uranium Vanadium Mill in Blanding, Utah owned by Dennison Mines.
CANADIAN URANIUM MINING COMPANY The town of Ticaboo in southeastern Utah has been sold to a Canadian mining company that bought the mothballed Shootaring Canyon uranium processing mill this spring. Riverton, Wyo.-based U.S. Energy Corp. said Monday that it sold the townsite for $2.7 million to Uranium One Inc. The townsite is five miles from the long-dormant mill, which Uranium One purchased in April from U.S. Energy Corp. along with 38,000 acres of mineral claims and leases in San Juan County, in the Lisbon Valley southeast of Moab and in the Henry Mountains northwest of Ticaboo. In that earlier sale, U.S. Energy received $6.6 million in cash and 6 million shares of Uranium One stock, plus $20 million if the mill returns to commercial production, $7.5 million when a revived mill accepts its first delivery of minerals from the exchanged lands and a 5 percent royalty on mill production, up to $12.5 million. "Housing is in limited supply in this area," said U.S. Energy Corp. chief executive Keith Larsen, "and Uranium One has recognized the importance of owning a fully developed Ticaboo townsite to accommodate its employees as it prepares the Shootaring Canyon Mill for full production." The townsite includes a 149-unit mobile home park, a subdivision with lots for 98 single-family homes, a recreational vehicle park, a 70-unit motel, a restaurant/lounge, a convenience store and a boat storage-and-service facility. Although only half a dozen homes have been built there, Larsen said numerous sites in the mobile home park are filled by employees of Dennison Mines, which operates a mine about eight miles from Ticaboo. Other employees stay regularly at the motel, he added. The demand for housing will expand significantly if and when Uranium One completes the lengthy process of securing state Division of Radiation Control approval for a permit to resume mill operations. "We'll be starting from scratch, so we'll need to hire a workforce," said Chris Sattler, senior vice president of investor relations for the Canadian company, which was known as sxr Uranium One until dropping the sxr portion in August. "This townsite will provide our workforce with a cheaper form of accommodation." Along with the permitting work, Sattler said Uranium One is assessing the resources of the properties it bought earlier from U.S. Energy Corp. along with two mines - the Velvet and Frank M. - obtained during the summer as part of its acquisition of Energy Metals Corp. "So we now have the mill, two of the original properties the mill was built for and this townsite," said Sattler. Uranium One, which has operations in Kazakhstan, South Africa and Australia, was eager to expand into southern Utah because of the relatively high grade of uranium deposits in the West. In addition, Sattler said, "from a political risk standpoint, the U.S. is the best place in the world. It's a nice bit of diversification into a first-world jurisdiction." News of Ticaboo's acquisition also pleased Garfield County Commissioner Maloy Dodds. "Anything that develops southern Utah excites me," he said, citing Dennison's ongoing operation and the refiling of thousands of uranium claims originally staked in the 1970s before the price of uranium plummeted. Uranium was selling for $80 a pound Monday, down from a high of $138 during the summer but up from $75 a pound earlier this fall. Dodds said a study is close to being done assessing the possibility of extending electricity to Ticaboo (a Paiute word meaning "friendly"), which depends for power on diesel-fueled generators.
IT'S OUR LAND: COURT CONFIRMS THAT THE
PUBLIC HAS A VOICE IN ROAD DISPUTE (Source: Tribune Editorial, Salt Lake Tribune, 10/3/07) Not only governments, but groups interested in the environment and even ordinary people have a right to join in lawsuits that will decide ownership of roads on public lands. Seems like a no-brainer, but it took a ruling of the 10th U.S. Circuit Court of Appeals to explain to San Juan County and the state of Utah that the public has a legitimate interest in how land owned by all Americans is used, and often abused. The state and county are suing the National Park Service because it closed Salt Creek Road in Canyonlands National Park to four-wheelers that were damaging park land. The Southern Utah Wilderness Alliance tried to join the lawsuit, but government lawyers argued that only the two parties laying claim to the road had that right. Excuse us, but to imply that ordinary citizens, the taxpayers who fund the federal and local agencies, have no legal interest is patently ludicrous. The public, and, by extension, the advocacy groups that go to court to protect the public's land, should not be excluded from seeking judicial redress. We understand why some rural Utah counties see SUWA as the enemy in their fight to control the federal land that comprises so much of central and southern Utah. For its part, the environmental advocacy group rightly worries about overuse by motorized recreationists and overgrazing by ranchers. Too often, the battle is fought at the expense of a fragile desert landscape that is a national treasure. Fortunately, the 10th Circuit ruled in favor of the public, the real owners of national park land. The state and county have argued for the road to be reopened, based on Revised Statute 2477, a Civil War-era mining law that granted rights of way across public lands. Congress repealed the law in 1976, but existing claims were grandfathered in, setting the stage for road disputes that have raged ever since. Courts have since ruled that roads consistently used before 1976 may be recognized as legitimate rights of way, but each individual roadway dispute must be resolved in court. This ruling is important, because it can protect all Americans' right to help decide the future of the land that we all have a stake in protecting.
DESPITE WORRIES OF CLIMATE CHANGE, JUNGAR QI, China - Almost nonstop, gargantuan 145-ton trucks rumble through China's biggest open-pit coal mine, sending up clouds of soot as they dump their loads into mechanized sorters. The black treasure has transformed this once-isolated crossroads nestled in the sand-sculpted ravines of Inner Mongolia into a bleak boomtown of nearly 300,000 people. Day and night, long and dusty trains haul out coal to electric power plants and factories in the east, fueling China's explosive growth. Coal is big, and getting bigger. As oil and natural gas prices soar, the world is relying ever more on the cheap, black-burning mainstay of the Industrial Revolution. Mining companies are racing into Africa. Workers are laying miles of new railroad track to haul coal from the Powder River Basin in Wyoming and Montana. And nowhere is coal bigger than in China. But the explosion of coal comes amid rising alarm over its dire consequences for workers and the environment. An average of 13 Chinese miners die every day in explosions, floods, fires and cave-ins. Toxic clouds of mercury and other chemicals from mining are poisoning the air and water far beyond China's borders and polluting the food chain. So far, attempts to clean up coal have largely not worked. Technology to reduce or cut out carbon dioxide emissions is expensive and years away from widespread commercial use. Burned since ancient times, coal dramatically increased in use during the Industrial Revolution, when it became fuel for the new steam engines, gas lamps and electrical generators. Worldwide demand for coal dipped at the end of the 20th century, but is now back up and projected to rise 60 percent by 2030 to 6.9 billion tons a year, according to the International Energy Agency. Today, most coal goes to electrical power plants. In developing nations such as India, China and Africa, coal is the staple - and affordable - source of fuel with which families run their first washing machines and televisions. Worldwide electricity consumption is expected to double by 2030, the World Energy Council says. In America, about 150 new coal-fired electrical plants are proposed over the next decade. In China, there are plans for a coal-fired power plant to go on line nearly every week. Emissions from these plants alone could nullify the cuts made by Europe, Japan and other rich nations under the Kyoto Protocol treaty, according to a report from the Woodrow Wilson International Center for Scholars in Washington. In a developing country like China, coal is the backbone of the energy system. Look at the port city of Shanghai, where the bitter tang in the air is not from salty sea breeze - it's the smoke from coal-burning stoves in the suburbs used for cooking and heating. From the shacks of migrant workers on the edge of town to modern factories and skyscrapers, China's biggest city is powered by coal. Even the ultramodern Maglev railway line runs on electricity from a coal-fueled plant. China mined a record 2.4 billion tons of coal in 2006, up 8.1 percent from a year earlier. But even that can't keep boilers and blast furnaces stoked in an economy growing more than 10 percent a year. So China became a net coal importer for the first time this year. While Chinese authorities are closing down older, heavily polluting plants, they can't keep up with a massive expansion in urban housing and industry and the coal that feeds them. China is the world's biggest consumer and producer of coal, but it's far from the only one. U.S. coal production hit a record 1.2 billion tons last year, according to the National Mining Association, and is forecast by the government to rise 50 percent by 2030. Yet the United States rejected the Kyoto Protocol, arguing that the required emissions cuts could slow economic growth. For another measure, look at the ticker on the Web site of St. Louis-based Peabody Coal Co., the world's largest coal mining company, which tracks its growing sales second by second. Last year: 248 million tons sold. For 2007: On track for up to 275 million tons. Rising demand can be met because coal is the Earth's most abundant fossil fuel, with reserves expected to last about 250 years - far longer than forecasts for petroleum. And whether in China, India, the United States or Europe, coal is available at home, away from the instability of the Middle East. The solution Catelin and others in the industry are pushing is clean technology, although they admit they are late to the game. ''The decade 1997-2007 was a lost decade'' for clean coal technology, Catelin conceded. ''We should have done much more. Now we're playing catch-up.'' The need is clear. In the provincial steel town of Baotou, trucks heaped high with coal rumble into Shenhua yards, dumping their loads into huge sieves for sorting into various grades of quality and size. Wind gusts whip black soot into the sky, thickening the layer of smog from the city's smelters. The U.S. and Chinese governments are subsidizing the development of technology that converts coal to a clean-burning gas before it is burned. But such plants still emit ample amounts of carbon dioxide, notes Qian Jingjing, an expert with the Natural Resources Defense Council in New York and co-author of the report ''Coal in a Changing Climate.'' She and many other experts believe coal can only be made environmentally sustainable through the more experimental technology of capturing carbon dioxide emissions and storing them underground. CORN FOR CARS Corn ethanol is the answer to global warming and American energy independence. Right? Wrong. A bushel of new studies suggest that production of corn ethanol not only makes global warming worse but contributes heavily to water pollution. One reason is the heavy doses of nitrogen fertilizer that American farmers dump on corn fields. A study by Paul J. Crutzen, a Nobel Prize-winning chemist, argues that some biofuels release more greenhouse gases than they save because nitrogen fertilizer produces nitrous oxide, a greenhouse gas that is 300 times more potent than carbon dioxide as an atmospheric insulator. The study estimates that corn ethanol produces between .9 and 1.5 times the global warming effect of conventional gasoline. Crutzen suggests that to get an environmental benefit from ethanol, it must be refined from crops that use little fertilizer and can be harvested without using large amounts of energy. Both of those criteria rule out corn or rapeseed, the primary feeder crop for biofuel in Europe. This study is hardly the first knock on corn ethanol. Various others have concluded that it takes more energy from oil to grow and harvest corn and refine ethanol (a substitute for gasoline) than the ethanol itself produces. At best, it's a push. So ethanol is a boon to American agribusiness, but not the environment. That's the real reason why farm states and Congress are in love with ethanol subsidies. Unfortunately, the farm bill being debated now in the Senate will only make matters worse. Besides, diverting corn from feeding humans to feeding cars is driving up the cost of eating around the world. Biofuels subsidized by billions of tax dollars will push food prices 20-40 percent higher by 2020, according to the Food Policy Research Institute. Rising corn prices already are contributing to malnutrition in developing countries. On top of all this, the National Research Council warns that projected increases in production of corn for ethanol will harm both water quality and supplies. To be blunt about it, unless you're Monsanto or Archer Daniels Midland, making fuel from corn is a spectacularly dumb idea.
GOVERNOR SAYS HE WILL VOTE 'FOR' Gov. Jon Huntsman Jr. joined Republican leaders at a press conference Wednesday to call for school vouchers as a tool to meet Utah's rapidly growing student population. Despite being surrounded by voucher enthusiasts, the governor stopped short of asking Utahns to vote for the measure. Huntsman said he signed the law and he would vote "for" Referendum 1 on Nov. 6, but added, "Whatever you think is right, whatever you can justify, is the right answer for you." The governor said he loved the public schools his own children attend and they would remain there. But he emphasized vouchers are "very much pro-public education," because the proposal would hold public education harmless and leave the bulk of funding behind as voucher students moved on to private schools. "That's a pretty good deal." The Republicans displayed population charts showing a wave of 160,000 new students will hit the schools over the next 10 years. Without educational funding innovations, such as vouchers, lawmakers will have no choice but to hike taxes, they said. "How do we take care of this without taxing our citizens into oblivion and out of their houses?" asked Sen. Sheldon Killpack. Minutes earlier, Democratic lawmakers wound up a press conference across the Capitol plaza that blasted vouchers. Rep. Lou Shurtliff, a retired teacher, said voucher supporters were misleading the public in claiming the program would not hurt public education because its funding would come from the general fund - not the school fund. Public education money can now be shifted to higher education needs that formerly came from the general fund. "It's very easy to shuffle money," Shurtliff said. "It's kind of a shell game." Republican Rep. Sheryl Allen, who has broken with Republican leadership to oppose vouchers, said the program will cost the state more than it will ever save.
CRANDALL CANYON DISASTER-INSPIRED MINE SAFETY BILL CLEARS HOUSE WASHINGTON - Legislation pushing new technology for communicating in underground mines passed the House on Monday in the wake of the Crandall Canyon mine disaster in Utah. Rep. Jim Matheson, D-Utah, sponsored the measure that is aimed at jump-starting an initiative to improve communication with miners deep in mountains, a problem that hampered rescue efforts in the Utah tragedy that killed nine people in two separate cave-ins. The bill, approved on a voice vote, now heads to the Senate. In essence, the legislation would direct the National Institute of Standards and Technology to help devise new technology to communicate in deep mines, where radio waves are often unusable or unreliable. "Working at these depths poses significant challenges to existing communications systems," Matheson said in a statement. ''As we learned in the Crandall Canyon mine tragedy, families, mine rescuers and the entire community suffer when tracking and communications systems fail." The National Mining Association, a trade group for mine owners and operators, supports Matheson's bill. "We must continue our quest for reliable, ground-penetrating two-way communications and tracking devices that can withstand the rigors of underground mining," said NMA president and chief executive officer Kraig Naasz. "Rep. Matheson's bill will support research, development and demonstration of such devices and bring us closer to the day when every miner returns home safely from every shift." Rep. Chris Cannon, a Utah Republican who co-sponsored the measure, said one of the "harshest lessons" learned from the Crandall Canyon disaster was that tracking, communicating with and locating miners are integral to miner safety. "This public-private partnership will ensure commercially viable communication and tracking systems are developed quickly," Cannon said, adding that he will continue to push for eliminating "useless or burdensome" regulations. The legislation builds on a comprehensive measure passed by Congress last year after the Sago mine tragedy in West Virginia killed a dozen miners. That bill urged a new communications system be implemented within three years using "best available technology." The bill passed Monday includes no timetable for having some type of new communications technology in American mines.
DOLLAR DECLINE AFFECTS US ALL NEW YORK - The markets and Washington may be nonchalant about the tumbling dollar, but the rest of us can't afford to be. The dollar has been declining for a while. In recent weeks, things have deteriorated, however, as the greenback has plunged to record lows against the euro and reached parity with the Canadian dollar for the first time since 1976. There is a lot more to this story than just vacations abroad getting pricier. A plunging dollar comes with widespread economic risk, which could mean everything from higher costs for gas at the pump to mortgage rates rising. The U.S. currency weakened sharply on the back of the recent decision by the U.S. Federal Reserve to cut its benchmark interest rate by a bigger-than-expected half point to 4.75 percent. The central bank's rate move was intended to stem the economic fallout caused by recent financial turbulence. It ended up creating another worry by spurring investors to sell dollars as they looked to put their money into markets where interest rates are rising and economies have better growth prospects than the United States. That has sent the dollar tumbling to new lows against the euro, which rose to a record high $1.4189 last week before settling slightly below that. Those are the highest levels since the 13-nation euro debuted in 1999. So far this year, the dollar is down 8 percent against a weighted basket of major currencies, according to the Federal Reserve. Even with all this going on, U.S. officials haven't talked much about the dollar's fall. Instead, they've been out in force discussing the credit-market turmoil and the housing collapse. U.S. Treasury Secretary Henry Paulson has only rehashed the Bush administration's party line that says it wants the dollar to be strong, but isn't going to do anything about getting it there. ''We believe that currency values should be set in a competitive marketplace based on underlying economic fundamentals,'' he said recently. There are certainly reasons for the administration to like the dollar where it is right now. A weak greenback makes American goods cheaper and more competitive abroad. It also juices up the profits of U.S.-based companies doing a good portion of their business overseas. But the dollar's steep fall also has downsides that can't be overlooked. The Fed took a gamble by lowering interest rates when inflation was already a concern. Now that the dollar's value has collapsed even further, there are worries about increasing pricing pressures. A weak dollar raises import prices, so goods manufactured abroad and sold in the United States such as cars and electronics cost more. The weak dollar also boosts the price of oil and other commodities that are traded internationally in dollar contracts. That is certainly clear by the record-setting move in oil prices, which have shot above $80 a barrel since the Fed cut rates and the dollar tumbled. American consumers can count on that soon showing up in higher prices at the gas pump. The slumping dollar also makes it less attractive for foreign investors to own dollars. In recent months, they've already shown some willingness to move out of the U.S. currency, and the recent decline in the greenback threatens to exaggerate that. Even before the recent market turmoil began, foreign buying of U.S. financial assets had slowed. A Treasury Department report showed foreign holdings of long-term securities such as equities, notes and bonds increased by a net $19.2 billion in July, the slowest pace in seven months and well below the $97.3 billion tallied in June. Worries about foreigners wanting to diversify out of dollars rose two weeks ago after Saudi Arabia decided for the first time not to cut interest rates in lock step with the U.S. Fed, leading to some speculation that it would soon end its currency's peg to the dollar. Also, an investment arm of the government of Abu Dhabi bought a 7.5 percent stake in the management operations of the Carlyle Group, a U.S. private-equity firm. In addition, the Nasdaq Stock Market announced it intended to sell a nearly 20 percent stake to Borse Dubai, and Borse Dubai and a group from Qatar also moved to become the largest stakeholders in the London Stock Exchange. If foreigners' buying habits change, that could have a broad impact on financial markets - and U.S. consumers, too. For instance, if they sell their U.S. Treasury holdings, or don't buy new government bonds or notes, then Treasury prices will go down and yields will go up. That probably will send mortgage rates higher because they are pegged to the 10-year Treasury note. That could unravel any good that has come from the Fed's rate-cutting action and put the economy in a precarious spot. It makes you wonder why this administration isn't doing more.
FACTORY ORDERS DROP MOST IN 7 MONTHS WASHINGTON - Orders to factories fell in August by the largest amount in seven months, reflecting weakness across a wide swath of manufacturing as the turbulent financial market made businesses more cautious. The Commerce Department said orders dropped by 3.3 percent in August, even worse than the expected 2.8 percent decline. It was the biggest setback since orders fell 4.2 percent in January. Demand for commercial aircraft fell 39.9 percent, leading the decline. Orders also were weak for other industries, from autos and home appliances to industrial machinery and steel. Orders for durable goods, which are items expected to last at least three years, fell by 4.9 percent. Demand for nondurable goods, such as food, clothing and gasoline, declined 1.6 percent. In a troublesome sign, business demand for nondefense capital goods excluding aircraft - considered a good gauge for investment plans - dropped 0.5 percent in August. This decline was blamed partly on greater caution among businesses in the face of the credit crunch, which caused the stock market's turbulence in the late summer. The drop in factory orders included big declines in two industries affected by troubles in the housing market. Demand for home appliances fell 7.2 percent and orders for furniture slipped 4.4 percent. In other news, the Labor Department said the number of newly laid off workers filing claims for unemployment benefits shot up by 16,000 to 317,000. It was the largest one-week rise in four months. While the increase was bigger than had been expected, analysts said it followed two weeks in which claims had fallen, leaving the weekly number little changed over the past month.
UTAH A HOTBED FOR MANUFACTURING: Utah's manufacturing sector is booming and nowhere is that more evident than in Salt Lake City, which ranks 15th in the nation in the number of manufacturing concerns operating within its city limits and 20th in the number of manufacturing employees. The newly released 2008 Utah Manufacturers Directory, published by Manufacturers' News Inc. of Evanston, Ill., reports that Salt Lake City has 1,329 manufacturing companies that employ 54,722 people. It is enough to place Salt Lake City in the same league as such historically strong manufacturing communities as Indianapolis and Cincinnati when it comes to the number of manufacturing companies. And while Salt Lake City may trail those communities in the number of workers - Indianapolis has 92,571 and Cincinnati 97,790 - Utah's capital city still tops Detroit, which is ranked 47th in the number of manufacturers calling that city home and 21st in terms of the number of manufacturing workers. "One of the strengths of Utah's manufacturing sector is that it is comprised of smaller companies that often have fewer than 50 employees," said David Sorensen, executive director of the Utah Manufacturing Extension Partnership." And that often means we're talking about extremely nimble, efficient companies that can react quickly to changing markets." Sorensen noted that of the approximately 4,500 manu- facturing companies operating in the state, only 24 can be classified as large companies. They include corporations such as Alliant Techsystems, Autoliv and L-3 Communi- cations. Mark Knold, senior labor market economist at the Utah Department of Workforce Services, said Utah added 5,000 manufacturing jobs in the first six months of 2007. "And that is a lot better than the country overall, where the manufacturing sector is either losing jobs or just holding its own." The Utah directory shows 4,458 manufacturers employing 163,351 workers in the state. It indicates that northern Utah is home to 88 percent of the state's manufacturers and 92 percent of the state's manufacturing jobs. Nearly half of those jobs are located in the Salt Lake area. Southern Utah accounts for 313 companies that employ 7,049 people while in the central portion of the state there are 5,975 people working at 195 plants. "The state's natural resources and growing population have provided some immunity against the industrial job losses suffered by many other states," said Tom Dubin, president of the Illinois-based publishing company in a statement announcing the release of the Utah directory. Manufacturers' News spokeswoman Jennifer RatÂcliff said 2008 marks the first time that the company offers a city-by-city comparison of manufacturing activities.
BERNANKE: HOUSING SLUMP WILL WASHINGTON - A deepening housing slump probably will be a ''significant drag'' on economic growth into next year and it will take time for Wall Street to fully recover from a painful credit crisis, Federal Reserve Chairman Ben Bernanke warned Monday. Bernanke once again pledged to ''act as needed'' to help financial markets - which have suffered through several months of turbulence - function smoothly and to keep the economy and inflation on an even keel. ''Conditions in financial markets have shown some improvement since the worst of the storm in mid-August, but a full recovery of market functioning is likely to take time, and we may well see some setbacks,'' Bernanke said in a speech to the New York Economic Club. It was Bernanke's most extensive assessment of the country's current economic situation since the August turmoil unhinged Wall Street. The ultimate implications of the credit crunch on the broader economy, however, remain ''uncertain,'' the Fed chief said. Against that backdrop, Bernanke said the central bank will be closely watching the economy's vital signs in determining the Fed's next move. He didn't specifically commit to cutting rates again, but rather kept his options open. Economists have mixed opinions on whether the Fed will lower interest rates at its next meeting, Oct. 30-31. Some insist the odds are lessening that the Fed will need to slice rates; others think rates will move lower. To help cushion the economy from the ill effects of the credit crunch and housing slump, the Fed on Sept. 18 slashed a key short-term interest rate by one-half percentage point to 4.75 percent. It marked the first rate cut in more than four years. It also reflected the most aggressive action taken by the Fed to curb fallout from the credit crisis, which intensified in August. Since that September meeting, the housing slump - the worst in 16 years - has gotten deeper, Bernanke said. SHIP SHORTAGE PUSHES UP PRICES The cost of shipping raw materials across the world's oceans has reached an all-time high, pushing up prices of grain, iron ore, coal and other commodities. The average price of renting a ship to carry raw materials from Brazil to China has nearly tripled to $180,000 a day from $65,000 a year ago. In some cases, ocean shipping can be more expensive than the cargo itself. Iron ore, for example, costs about $60 a ton, but ship owners typically are charging about $88 a ton to transport it from Brazil to Asia. The trend may force manufacturers to pay more for the basic ingredients they need to make their products. And those higher costs could be passed on to consumers, affecting the price of everything from automobiles and washing machines to bread. The main reason commodity shipping rates are escalating: not enough bulk ships. The shortage stems from the surging volume of global trade as growth explodes in China, India and other developing nations. China's voracious manufacturing sector is compelling it to look increasingly far afield for resources, such as to Brazil for iron ore. The Baltic Exchange Dry Index, the most important and widely used indicator of world-wide ocean freight rates for bulk commodities, hit a record Friday after rising 169% over the past year. And shippers, brokers and commodity merchants are braced for higher rates next year and possibly through 2009. By then enough new bulk freighters are expected to come on line to ease the shortage. "All of the ship owners are making a lot of money because these are numbers that the market has never seen," said John P. Dragnis, commercial director of Athens-based Goldenport Inc., one of the largest providers of ships to commodity sellers. Even when ships are available to carry the cargo, inadequate port facilities can cause delays, driving up the cost of shipments. At Brazilian ports, ships often wait offshore for as long as two weeks for their turn to load or unload, like airplanes sitting on a runway waiting for a gate. Brazil isn't the only source of bottlenecks. As of last week, 131 vessels were waiting to pick up or unload coal and iron ore at Australia's main ports, according to the Global Ports Congestion Index, which tracks wait times world-wide. As a result, some Australian coal producers are being forced to cut back on exports, which is expected to add to the upward pressure on global coal prices. Likewise, commodity merchants are building higher costs for transportation into the price of steel, grain and aluminum. The steep run-up in bulk shipping rates has largely bypassed other types of vessels, like oil tankers or the container ships that transport finished goods like television sets, because those ships aren't in such short supply. Though bulk shipping costs have been rising for a couple of years, the run-up has intensified over the past year. The full impact of those spot-market rate increases has yet to filter through to the 70% of bulk commodity shipments that are covered by long-term contracts. Still, rather than rely solely on shipping companies, some commodity producers are buying or chartering their own ships. Corus Group, a subsidiary of Tata Steel Ltd. of India, paid $135 million to charter a seven-year-old bulk cargo ship. Other companies say they may shut down certain operations if they can't get a ship at a reasonable price or can't justify higher shipping costs when it comes time to renew their contracts. Mining giant Rio Tinto PLC recently took delivery of a new bulk carrier and expects to get four more soon to ship bauxite, a key raw material for making aluminum. The timing worked out well for Rio Tinto, which placed its orders in 2004, before shipping rates jumped. "We are looking at similar opportunities for managing shipping costs within the group, but we always assess the cheapest option for any given set of circumstances. We also do spot chartering and have longer-term arrangements," says Christina Mills, a Rio Tinto spokeswoman. Vimetco, a Dutch aluminum producer with refineries in China and Romania, has had long-term contracts under which its shipping prices have been well below current spot-market rates. Christian Wust, Vimetco's chief executive, said that today's higher shipping costs could prevent the company from re-opening one of its refineries in Romania. "Right now we are planning a restart, but only if we can secure lower shipping prices." Adding to the upward pressure on shipping rates is the fact that bulk ships are taking longer voyages these days, says Christopher G. Combe, shipping analyst for Jefferies International Ltd. For example, though China still purchases most of its iron ore from Australia, a growing percentage now comes from Brazil, which is much farther away. "It is called the 'ton-mile effect,'" says Mr. Combe. "Basically China and India are sourcing providers that are a bit further afield. A lot of the Asian demand now has to be satisfied from South American mines," so the trips take longer. Another factor behind the increased demand for shipping is a smaller soybean harvest in Asia, which has driven up demand for soybeans from the U.S., further increasing trade volume and demand for bulk ships. Clifford Winston, an economist at the Brookings Institution, says that higher shipping rates will increase commodity prices according to weight, with transportation fees making up a larger percentage of the cost of heavier products like iron ore and grain. "There is no question that there will be price increases," Mr. Winston says. Even so, he adds, rates aren't likely to stay high because the supply of ships eventually will better balance out demand. "I would qualify my concerns saying that you should give supply a chance." Indeed, shipbuilders in Japan, South Korea and China, which have been busy building container ships, are just beginning to fill orders for bulk ships. Given the typical 36-month lag between orders and delivery, most of those new bulk ships won't be ready until 2010. But some analysts say the number of such vessels could double by the start of the next decade. Meanwhile, iron-ore miners are trying to get ahead of shipping-price increases by forcing steelmakers to pay more for their ore. Roger Agnelli, chief executive officer of Brazil's Cia. Vale do Rio Doce, the world's largest iron-ore producer, calls the high freight rates "a market distortion" but adds that they aren't expected to change anytime soon. According to Simpson, Spence & Young, a British-based ship broker and market researcher, the world's seaports had record tonnages for the first eight months of this year. In South Korea, coking-coal and steam-coal imports have risen by about 3% to a near-record 58.1 metric tons. Brazil's ports exported about 167.1 million metric tons of commodities in the first eight months of the year, nearly 10 million metric tons more than a year earlier. Ports in China and Australia are also recording record volumes of commodity imports and exports.
SALES OF EXISTING HOMES Two months after the subprime lending market's meltdown, the toll on the economy has become much more severe, with sales of existing homes nationally in September dropping 19 percent from the same month a year ago. The numbers were bad across the country - sales in the third quarter along the Wasatch Front were down 20 percent to 30 percent, compared with a year ago - in what was both a dispiriting development Wednesday for anxious homesellers and an ominous sign for the economy since no recovery is likely soon. The National Association of Realtors said total existing home sales fell 8 percent from August, a worse performance than expected, according to analyst. Existing home prices also fell nationally, down 4.2 percent, to $211,700 from the same period a year ago, the association said.
RECESSION FEARS RISING WASHINGTON - Millions of American consumers, unnerved by the mortgage mess and rising energy prices, fear that any interest rate cut today might be too little, too late. They think the economy already is in a recession or sliding toward the inevitable. In a Bloomberg/Los Angeles Times survey conducted Oct. 19-22, two-thirds of the respondents said a recession is ''likely'' next year. A recent poll by CNN and Opinion Research Corp. found that nearly half of Americans believe the country already is in a recession. These perceptions represent a real risk. Consumer spending is the biggest driver of U.S. economic activity, and if fearful Americans decide to save their money instead of spend it, growth could slow drastically. On Tuesday, one measure of consumer confidence fell to its lowest level since October 2005, shortly after Hurricane Katrina hit the Gulf Coast. The consumer confidence index published by the Conference Board, a private research organization, tumbled to 95.6 in October from a revised 99.5 in September. Most economists had expected it to dip only to 98. Sensing consumers are pulling back, the Nation Federation of Retailers, a trade group, is predicting that stores will post their weakest sales growth this holiday season in five years. The gloomy mood prevails even though many gauges in recent months have showed the economy is far from a recession, which is defined as two consecutive quarters of shrinking gross domestic product, the total market value of all goods and services produced by the economy. Today, the Commerce Department is expected to release a third-quarter GDP report showing that the economy expanded by about 3.1 percent, not far below the second quarter's robust 3.8 percent. Optimists note that the national unemployment rate remains a healthy 4.7 percent (it is almost half that in Utah), and exports are growing at the fastest pace in nearly four years. Surveys of economists show most think GDP will grow by a modest 2.5 percent in 2008. They believe the Fed probably headed off a recession last month by cutting its benchmark federal funds interest rate by half a percentage point. Most expect the Fed to cut another quarter-percentage point today, to 4.5 percent. Such a cut would ripple out and lower many other interest rates affecting businesses, car buyers and people with home equity loans. Even as many await the Fed's interest rate decision, it continues to pump sizable amounts of cash into the financial system to help companies get over credit humps. The Fed, in two operations on Tuesday, injected $17 billion in temporary reserves. Still, pessimism is growing because both new and existing home sales have been plunging (though not as rapidly in Utah). On Tuesday, the S&P/Case-Shiller 20-City Composite price index, a closely watched measure of home values nationwide, showed the price of existing single-family homes fell 4.4 percent in August, compared with a year ago, marking the eighth straight month of declines. Rising energy prices also have consumers worried. With oil trading this week at well above $90 a barrel (it fell $3.15 to settle at $90.38 on Tuesday), food and fuel prices may be poised to rise sharply. ''The main thing that worked against confidence is the gain in gasoline prices,'' said Brian Bethune, an economist for Global Insight Inc., a forecasting firm. Bethune noted that as of Monday, the nationwide average price for gasoline was $2.92 a gallon, up 10 cents from three weeks ago.
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9 MSHA 8-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South, 19-20 MSHA 24-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South,
Suite 2A, Salt Lake City. For more info. visit www.utahsafetycouncil.org
3-7 Northwest Mining Association Annual Meeting, Doubletree Hotel, Spokane, Washington. For more info. visit www.nwma.org 3-4 Coal Trading Conference. For more info. visit: www.americancoalcouncil.org 12 MSHA 8-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South, 2008
5-6 High Altitude Revegetation Workshop, Hilton Hotel, Fort Collins, Colorado. For more info. call Wendell Hassell at 303-422-2440. 18- 22 Alaska Miners Association Conference, Westmark Fairbanks Hotel & Conference Center, Alaska. For more info. visit www.arcticminers.org
14-15 UMA 93RD ANNUAL CONVENTION, GRAND SUMMIT HOTEL, PARK CITY, UTAH
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