xt7b8g8fgm20 https://exploreuk.uky.edu/dips/xt7b8g8fgm20/data/mets.xml Kentucky Kentucky Coal Association Kentucky Energy and Environmental Cabinet Department for Energy Development and Independence 2013 journals English Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Coal Facts Kentucky Coal Facts: 13th Edition, 2013 text Kentucky Coal Facts: 13th Edition, 2013 2013 2014 true xt7b8g8fgm20 section xt7b8g8fgm20 energy.ky.gov kentuckycoal.com * Table of Contents Summary ............................................................................................................... 4 COAL PRODUCTION U.S. Coal Production, 2012 ...................................................................................5 Kentucky Coal Production, 2012..........................................................................6 Types of Coal Mining .............................................................................................7 Kentucky Coal Production, 1960-2012 ..............................................................8 Eastern Kentucky Coal Production........................................................................9 Western Kentucky Coal Production .................................................................. 10 MINING EMPLOYMENT & PRODUCTIVITY Coal Mine Employment ................................................................................ 11-13 Coal Mine Productivity by Region .................................................................... 14 COAL DISTRIBUTION & MARKETS Kentucky Coal Consumers, 2012 ....................................................................... 15 Kentucky In-State Coal Consumption ................................................................ 16 Kentucky Coal Deliveries .................................................................................... 17 Eastern Kentucky Coal Deliveries ............................................................... 18-19 Western Kentucky Coal Deliveries.................................................................... 20 Kentucky Coal Distribution, 2011 ..................................................................... 21 Kentucky Coal Distribution, 2011 ..................................................................... 22 SEVERANCE REVENUE, COAL PRICES, & CHEMICAL PROPERTIES Induced and Indirect Effects ............................................................................... 23 Coal Severance Receipts by Region ................................................................ 24 Delivered Price of Coal by Coal Mine State.................................................. 25 Delivered Price of Coal by Kentucky Coal Mine County ............................. 26 Steam Coal Properties by Coal Mine State ............................................ 27-28 Steam Coal Properties by Kentucky Coal Mine County ........................ 29-30 ELECTRICITY GENERATION, EMISSIONS, & PRICES Coal-fired Power Plants in Kentucky ................................................................ 31 Why Kentucky Uses Coal .................................................................................... 32 Kentucky vs. United States Electricity Generation ......................................... 33 Kentucky Electricity Prices ............................................................................ 34-35 Kentucky Electric Power Emissions ..................................................................... 36 KENTUCKY & COAL Coal Formation & Properties ............................................................................. 37 History of Coal in Kentucky ......................................................................... 38-40 2 energy.ky.gov kentuckycoal.com * Table of Contents MINE SAFETY, LICENSING, & RECLAMATION Coal Mine Safety & Training............................................................................. 41 Active Mines & Licensing ............................................................................... 42-43 Mine Reclamation ........................................................................................... 44-45 Post-Mining Land Use .................................................................................... 46-48 COUNTY LEVEL PRODUCTION, EMPLOYMENT, & MARKETS Kentucky Coal Producing Counties, 2012 ....................................................... 49 Bell County ...................................................................................................... 50-51 Boyd County.......................................................................................................... 52 Breathitt County.............................................................................................. 53-54 Clay County .................................................................................................... 55-56 Daviess County ............................................................................................... 57-58 Floyd County ................................................................................................... 59-60 Harlan County................................................................................................. 61-62 Henderson County .......................................................................................... 63-64 Hopkins County ............................................................................................... 65-66 Johnson County ..................................................................................................... 67 Knott County .................................................................................................... 68-69 Knox County .......................................................................................................... 70 Laurel County .................................................................................................. 71-72 Lawrence County .................................................................................................. 73 Leslie County ................................................................................................... 74-75 Letcher County ................................................................................................ 76-77 Magoffin County ............................................................................................ 78-79 Marshall County ................................................................................................... 80 Martin County ................................................................................................. 81-82 McCreary County ................................................................................................. 83 Muhlenberg County ....................................................................................... 84-85 Ohio County .................................................................................................... 86-87 Perry County ................................................................................................... 88-89 Pike County ..................................................................................................... 90-92 Union County ................................................................................................... 93-94 Webster County ............................................................................................. 95-96 Whitley County..................................................................................................... 97 DATA SOURCES & AGENCY CONTACT INFORMATION .............................. 98-100 Acknowledgements ............................................................................................101 energy.ky.gov kentuckycoal.com 3 * Summary Overview After two centuries of commercial mining operations, Kentucky’s domestic supply of coal remains a significant component of the Commonwealth’s economy. In 2012, Kentucky remained the third-highest coal producer in the United States. Coal was by far the largest source of domestic energy production in the Commonwealth. Coal mines employed nearly 14,100 individuals on-site at the end of 2012, and mining directly contributed billions of dollars to the economy of Kentucky. A quarter of the coal produced in Kentucky is consumed within the Commonwealth; however, the largest market for Kentucky coal remains the generation of electrical power across the United States, namely in the South East. Production Kentucky coal production decreased in 2012 by more than 16 percent from 2011, to 91.4 million tons, the lowest level since 1965. Eastern Kentucky coal production decreased in 2012 by 27.6 percent from 2011 to 49.4 million tons—the lowest level since 1965. Production slowed at both underground and surface mines. Eastern Kentucky production has declined by 53.5 percent since the year 2000, and by 62.3 percent since peaking at 131 million tons in 1990. Western Kentucky coal production increased by 2.5 percent from 2011 to more than 42 million tons. All of this increase was due to production in Union and Ohio Counties. During 2012, Union County became the largest coal producing county in Kentucky, surpassing Pike County by 543,700 tons, or 4.2 percent. By the end of 2012, the rate of production in Western Kentucky was greater than in Eastern Kentucky for the first time since 1960. Employment Employment at Kentucky coal mines decreased by over 22 percent from 18,111 at the beginning of the year, to an average of only 14,083 by December, 2012—a loss of 4,028 employees. Coal mine layoffs were concentrated in Eastern Kentucky where on-site employment fell by 29.9 percent from 13,608 in 2011 to only 9,540 in 2012, a loss of 4,068 employees. In Western Kentucky there were 4,543 persons employed at coal mines, approximately the same number as were employed in 2011. By the end of 2012, Kentucky coal mines employed 7,959 underground coal miners, 3,786 surface miners, 1,666 preparation plant workers, and 482 on-site office staff. Markets The markets and destinations for Kentucky coal during 2011 were predominantly concentrated in 20 states, with a small market for international exports. Approximately 25 percent of the coal mined in Kentucky during 2011 was consumed in the Commonwealth—primarily by electric utilities—making Kentucky the largest single market for Kentucky coal. However, the vast majority of Kentucky coal — 60.6 million tons—was shipped to electric power plants in 19 different states, principally located in the Southeast. Following Kentucky, the states of Florida, Georgia, and South Carolina were the largest consumers of Kentucky coal during 2011. Coal producers in Kentucky exported 7.1 million tons, or 6.7 percent of total production, to foreign countries during 2011, with Canada and Mexico receiving the majority of international exports. Small quantities of coal were also exported to customers in Europe, China, and India during 2011. 4 energy.ky.gov kentuckycoal.com * U.S. Coal Production, 2012 U.S Coal Production by State, 2012 State Thousand Tons 1 Year Change Percentage U.S. Total 1,017,314 -7.1% 100.0% Wyoming 401,442 -8.4% 39.5% West Virginia 123,183 -10.8% 12.1% Kentucky 91,407 -16.3% 9.0% Pennsylvania 52,656 -5.1% 5.2% Illinois 48,817 28.8% 4.8% Texas 44,178 -3.8% 4.3% Indiana 36,720 -3.9% 3.6% Montana 36,694 -12.7% 3.6% Colorado 28,569 6.2% 2.8% Ohio 27,591 -1.9% 2.7% North Dakota 27,529 -2.5% 2.7% New Mexico 22,452 2.4% 2.2% Alabama 19,563 0.9% 1.9% Virginia 18,896 -15.8% 1.9% Utah 16,277 -17.2% 1.6% Arizona 7,493 -7.6% 0.7% Louisiana 3,979 3.0% 0.4% Mississippi 2,953 7.5% 0.3% Maryland 2,120 -27.8% 0.2% Alaska 2,052 -4.5% 0.2% Tennessee 1,154 -19.5% 0.1% Oklahoma 1,054 -8.1% 0.1% Missouri 422 -9.3% <0.01% Arkansas 98 -26.4% <0.01% Kansas 16 -57.4% <0.01% Coal production in the United States fell by 7.1 percent compared with 2011 to 1.01 billion tons. Wyoming remained the largest coal-producing state in the Country, representing 40 percent of national production with 401.4 million tons in 2012. Coal from Wyoming is produced from deposits in the Powder River Basin, and is generally characterized by low sulfur content, low Btu content, and a relatively low cost. The second largest coal producer during 2012 was the state of West Virginia, which accounted for 12 percent of national production and supplied consumers with 123 million tons of low-sulfur, Central Appalachian Basin coal. Kentucky, the third largest producer with 9 percent of national production in 2012, provided coal supplies from deposits of the Central Appalachian Basin in the eastern portion of the state and the Illinois Basin in the western portion of the state. Coal production in Kentucky decreased by 16 percent in 2012 to 91.4 million tons. Peak coal production was reached in 1990 when the Commonwealth mined 179.4 million tons of coal. Since 1990, coal production in Kentucky has been in decline. energy.ky.gov kentuckycoal.com 5 * Kentucky Coal Production, 2012 County Total Union Pike Perry Hopkins Ohio Harlan Webster Muhlenberg Martin Leslie Letcher Knott Floyd Magoffin Henderson Tons 91,407,310 13,474,900 12,931,200 9,231,478 8,945,605 7,231,326 7,034,754 5,550,427 4,887,921 3,587,476 3,008,930 2,979,510 2,641,000 2,382,712 2,015,308 1,558,006 1 Year Change Percentage -16.7% 100.0% 9.3% 14.7% -17.9% 14.1% -30.1% 10.1% 1.8% 9.8% 30.5% 7.9% -28.1% 7.7% -3.1% 6.1% -14.9% 5.3% -36.0% 3.9% -30.7% 3.3% -36.1% 3.3% -45.1% 2.9% -18.1% 2.6% -31.9% 2.2% -36.9% 1.7% County Bell Knox Daviess Johnson Clay Breathitt Whitley Lawrence Wolfe McCreary Owsley Laurel Rockcastle Elliott Tons 1,161,442 643,887 395,164 327,683 293,829 287,783 263,881 234,628 39,315 31,744 26,647 12,627 4,930 2,396 1 Year Change Percentage -26.0% 1.3% 65.7% 0.6% -2.5% 0.4% 41.2% 0.4% -23.0% 0.3% -65.5% 0.3% -50.2% 0.3% 189.6% 0.3% <0.1% +∞% <0.1% +∞% -61.3% <0.1% <0.1% +∞% <0.1% +∞% -94.9% <0.1% State and County-level statistics are aggregated from MSHA Form 700002 quarterly reports through 2012. In Kentucky, coal mining is divided between two distinct geologic basins: The Central Appalachian Basin of Eastern Kentucky, and the Illinois Basin of Western Kentucky. Both of these resource fields contain rich deposits of bituminous coal, and have seen coal mining activities in numerous counties for over 100 years. During 2012, coal production in the Commonwealth decreased to 91.4 million tons, the lowest level of recorded annual production since 1965. Additionally, though Pike County remained the largest coal producing county in the Eastern Coalfield, Union County in Western Kentucky supplanted Pike County as the leading coal producing county in the Commonwealth in 2012. 6 energy.ky.gov kentuckycoal.com * Types of Coal Mining Several different mining methods are used in the Commonwealth to access coal deposits in the Central Appalachian Basin of Eastern Kentucky and the Illinois Basin of Western Kentucky. The selected mining approach, or combination of mining approaches, at a given mine site is largely dictated by local geography and hydrology, as well as the amount of soil and rock overburden in place above a coal seam. For simplicity of accounting, coal mines are generally divided between surface operations and underground operations, though several sub-categories exist to describe exact mining approaches and mine permits. Mine Type State EKY WKY Auger 984,673 846,269 138,404 Underground mine operations accounted for 64 percent of coal production in Kentucky in 2012, with room and pillar systems being the most common form of mining method. Various categories of surface mines accounted for 36 percent of statewide production. Historically, underground mines have provided the bulk of employment and coal production in the state. During 2012, combined coal production from underground operations and surface operations was more than 91 million tons with the majority of production concentrated in Eastern Kentucky. Kentucky Coal Production by Mining Method, 2012* Culm Bank/Refuse Pile Dredge Strip/Quarry/Open Pit 63,660 5,983 32,074,272 63,660 5,983 24,260,740 7,813,534 Underground 58,278,720 24,187,308 34,091,412 Total 91,407,312 49,363,960 42,043,352 *Source: U.S. Department of Labor, Mine Safety and Health Administration, ―Quarterly Mine Employment and Coal Production Report‖ (MSHA Form 7000-02). The above table summarizes the five types of mining methods—as categorized by MSHA—that registered coal production in Kentucky during 2012. As a result of this summarization, small quantities of coal that are counted in total statewide production may not necessarily be represented in the above totals. Refuse recovery mines and culm bank mines register production only when new coal is brought to market. These types of mines extract new coal from waste material discarded or impounded by previous mining operations. energy.ky.gov kentuckycoal.com 7 * Kentucky Coal Production Region Tons 1 Year Change Total 91,407,310 -16.3% Eastern Kentucky 49,363,960 -27.6% Western Kentucky 42,043,350 +2.5% Eastern Kentucky has on average represented 75 percent of annual coal production over the last 35 years. During 2012, the region represented 54 percent of statewide production. Mine Type Tons 1 Year Change Total 91,407,310 -16.3% Underground 58,278,720 -10.6% Surface 33,128,590 -24.7% Following the Surface Mining Control and Reclamation Act of 1977 (SMCRA), annual coal production in Kentucky has been consistently led by underground operations. The two Coalfields of Kentucky produced 91.4 million tons of coal in 2012. For the year, the coal mining counties of Eastern Kentucky remained the largest concentration of production, representing 54 percent of statewide tonnage. Coal mined in Western Kentucky topped 42 million tons, and represented 46 percent of total production. Overall, the statewide trend in coal production has been downward since 1990. However, during the last 3 months of 2012, the rate of production in Western Kentucky was greater than in Eastern Kentucky for the first time since 1960. Coal production in Kentucky was led by underground mines in 2012. Accounting for 58 million tons and 64 percent of total production, underground output decreased by 10.6 percent compared with 2011. Surface mine operations, which generated 33 million tons of coal, decreased production by 24.7 percent relative to 2011. The decreases in production of both underground and surface operations during 2012 were concentrated most-heavily in the coal mining counties of Eastern Kentucky. 8 energy.ky.gov kentuckycoal.com * Eastern Kentucky Coal Production Mine Type Total Surface Underground Tons 49,363,960 25,176,650 24,187,310 1 Year Change -27.6% -27.8% -27.3% Approximately 9,500 people were directly employed by coal mines in Eastern Kentucky in 2012. Direct coal mine employment was highest in Pike County during the year. The Coalfield of Eastern Kentucky, part of the Central Appalachian Basin, contains deposits of bituminous coal characterized by high heat content and frequently with low sulfur content. Eastern Kentucky coal production decreased in 2012 by 27.6 percent to 49.4 million tons—the lowest level since 1965–as production slowed at both underground and surface mines. Moreover, coal production in Eastern Kentucky has declined by 53.5 percent since the year 2000, and by 62.3 percent since peaking in 1990 at 131 million tons. County* Pike Perry Harlan Martin Leslie Letcher Knott Floyd Magoffin Bell Knox Johnson Clay Breathitt Whitley Lawrence Wolfe McCreary Owsley Laurel Rockcastle Elliott Other / Mulitple Tons 12,931,200 9,231,478 7,034,754 3,587,476 3,008,930 2,979,510 2,641,000 2,382,712 2,015,308 1,161,442 565,092 327,683 293,829 287,783 263,881 234,628 39,315 31,744 26,647 12,627 4,930 2,396 299,595 1 Year Change -17.9% -30.1% -28.1% -36.0% -30.7% -36.1% -45.1% -18.1% -31.9% -26.0% 45.5% 41.2% -23.0% -65.5% -50.2% 189.6% +∞% +∞% -61.3% +∞% +∞% -94.9% NA Pike County remained the largest coal producing county in Eastern Kentucky during 2012, but is no longer the largest coal producing county in Kentucky. Union County of Western Kentucky produced 543,700 more tons than Pike County in 2012 to become the largest coal producing county in the Commonwealth. energy.ky.gov kentuckycoal.com 9 * Western Kentucky Coal Production Mine Type Total Underground Surface Tons 42,043,350 34,091,410 7,951,940 1 Year Change +2.5% +6.9% -12.7% More than 4,500 people were directly employed by coal mines in Western Kentucky in 2012. Direct coal mine employment was highest in Union County during the year. County Union Hopkins Ohio Webster Muhlenberg Henderson Daviess Tons 13,474,900 8,945,605 7,231,326 5,550,427 4,887,921 1,558,006 395,164 1 Year Change +9.3% +1.8% +30.5% -3.1% -14.9% -36.9% -2.5% Since 2002, underground mine development in Western Kentucky counties has resulted in increasing production for the region. Also, the topographic location of economically accessible coal seams in Western Kentucky differs from deposits in Eastern Kentucky. The gentle topography and basinal structure of the Western Kentucky coalfield limits surfaceaccessible coal to the outer margin of the basin, and helps explain why surface mining has declined and underground mining has increased in the region since 1988. Coal produced in Western Kentucky comes from the Illinois Basin, and typically has a moderately high heat content and high sulfur content. Western Kentucky coal production increased by 2.5 percent from 2011 to more than 42 million tons, with 81 percent of total regional production coming from underground operations. The increase in regional production was led by rising output from Union and Ohio Counties. During 2012, Union County surpassed traditional leader Pike County of Eastern Kentucky to become the largest coal producing county in Kentucky. 10 energy.ky.gov kentuckycoal.com * Coal Mine Employment, 2012 Eastern Kentucky Coal Mine Employment, 2012 Mine Type Employees 1 Year Change Total 9,556 -29.7% Underground 4,782 -25.3.% Surface 3,242 -37.8% Preparation Plant 1,148 -24.3% Office 384 -17.1% In 2012, coal mines in Eastern Kentucky on average employed 9,556 workers full-time. The majority of direct coal mine employment in Eastern Kentucky was concentrated at underground mine sites. Compared with 2011, average coal mine employment in the Eastern Coalfield decreased by 29.7%, a reduction of 4,038 full-time jobs. During 2012, mines operating in Pike County represented the largest concentration of coal mine employment in Kentucky, averaging 2,316 on-site employees. Pike County also represented approximately 25 percent of coal mine employment in the Eastern Coalfield. Western Kentucky Coal Mine Employment, 2012 Mine Type Employees 1 Year Change Total 4,543 ~0% Underground 3,286 5.3% Surface 634 -13.0% Preparation Plant 524 -7.3% Office 99 6.5% Coal mines in Western Kentucky on average employed 4,543 full-time workers in 2012. The majority of direct coal mine employment in Western Kentucky was concentrated at underground mine sites during the year. Compared with 2011, average coal mine employment in the Western Coalfield increased marginally, with a gain of 35 full-time jobs. Mines operating in Union County during 2012 represented the largest source of coal mine employment in the Western Coalfield of Kentucky, averaging 1,292 on-site employees. energy.ky.gov kentuckycoal.com 11 * Coal Mine Employment, 2012 EKY Counties All Pike Perry Harlan Martin Leslie Letcher Floyd Bell Knott Magoffin Knox Boyd Lawrence Johnson Clay Breathitt McCreary Whitley Wolfe Laurel Employment 9,540 2,316 1,530 1,367 721 605 583 530 448 330 186 112 78 76 67 66 62 35 31 20 14 2012 Change -29.9% -28.0% -27.9% -37.1% -30.2% -29.5% -34.2% -24.1% -23.7% -63.2% -47.9% -24.8% +4% +171.4% -8.2% +34.7% -68.4% +400% -81.5% +100% +250% Coal mine layoffs in Kentucky during 2012 were concentrated in Eastern Kentucky, where on-site employment decreased by 29.9 percent from 13,608 in 2011 to only 9,540 in 2012, a loss of 4,028 employees. The decrease in direct employment at surface mine operations in Eastern Kentucky alone represented more than half of the statewide decline in mining employment between 2011 and 2012. 12 WKY Counties All Union Hopkins Ohio Webster Muhlenberg Henderson Livingston Marshall Daviess McLean Description State Total Underground Surface Preparation Plant Office Employment 4,543 1,292 997 710 671 576 108 52 50 43 8 Employment 14,083 7,959 3,786 1,666 482 2012 Change ~0.0% -0.5% +11.1% +28.6% -6.8% -4.6% -60.7% -8.8% -3.8% +4.9% -27.3% 2012 Change -4,028 -22.2% -1,470 -15.4% -2,160 -34.8% -415 -20.0% -74 -13.3% In Western Kentucky there were 4,543 persons employed at coal mines during 2012, approximately the same number as were employed in 2011. Overall, employment at Kentucky coal mines fell by over 22 percent from 18,111 in December, 2011, to an average of 14,083 in December, 2012, a loss of 4,028 employees. However, the statewide decrease in mining employment during 2012 was entirely linked to decreased mining employment in the coal mining counties of Eastern Kentucky. energy.ky.gov kentuckycoal.com * Coal Mine Employment, 2012 Region & County Kentucky Eastern Kentucky Pike Perry Harlan Martin Leslie Letcher Floyd Bell Knott Knox Magoffin Whitley Boyd Lawrence Johnson Clay Breathitt McCreary Wolfe Laurel Western Kentucky Union Hopkins Ohio Webster Muhlenberg Henderson Livingston Marshall Daviess McLean Direct Employment Underground Surface Preparation Mine Office at Coal Mines Miners Miners Plant Workers Staff 14,083 9,540 2,366 1,530 1,425 721 658 605 533 448 330 224 186 91 78 76 68 66 62 35 20 14 4,543 1,292 997 710 707 576 108 52 50 43 8 7,959 4,772 1,201 712 933 422 370 410 250 164 181 68 1 18 32 10 3,286 1,115 871 264 587 435 14 - 3,786 3,240 778 540 381 122 232 150 185 102 120 148 185 34 44 68 45 46 30 20 10 634 43 21 327 41 79 84 39 - 1,666 1,191 282 185 76 161 53 25 81 114 27 4 37 68 18 5 1 4 474 117 81 110 52 51 9 50 44 2 8 482 385 105 93 35 16 3 20 17 68 2 4 2 10 3 1 4 97 17 24 9 27 11 1 2 6 2 - Percent of Total Employment† 0.8% 5.3% 9.9% 11.6% 17.8% 23.7% 31.2% 11.2% 4.6% 4.9% 11.4% 2.9% 9.2% 0.7% 0.3% 2.2% 1.1% 1.6% 2.0% 1.2% 1.6% 0.1% 3.7% 22.2% 5.5% 8.9% 24.1% 6.6% 0.5% 1.8% 0.5% 0.1% 0.4% †Sources: MSHA Mine Data Retrieval System (MSHA-MDRS) & Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages [June 2012 County Estimates]. Note: The direct mining employment classification includes persons employed at a Kentucky coal mine and/or registered MSHA permitted mine site, but does not include direct employment involving coal transportation by trucks, trains, or barges nor the administrative or professional employees of coal companies located in Kentucky metropolitan areas such as Lexington and Louisville. These employment figures also do not include the many private services or indirect employment induced by the economic activity of coal extraction, preparation, and sales. energy.ky.gov kentuckycoal.com 13 * Coal Mine Productivity Region Eastern Kentucky Total Labor Hours* 24,854,616 Mine Type All* Underground Surface Tons/Hour 1.97 2.02 2.76 Underground 11,960,237 Surface 9,022,405 Region Western Kentucky Total Labor Hours 11,284,377 Mine Type All* Underground Surface Tons/Hour 3.73 4.13 5.14 Underground 8,236,953 Surface 1,546,744 Source: U.S. Department of Labor, Mine Safety and Health Administration, ―Quarterly Mine Employment and Coal Production Report‖ (MSHA Form 7000-02). *Coal mine productivity is defined as total coal production (tons) divided by total employee labor hours. Total labor hours include the combination by mine site of direct miner hours, preparation plant hours, and on-site office employee hours. Productivity values in the tables above represent the summation of production divided by the summation of labor hours, separated by region and by mine type. As of publication, processed data for productivity as displayed above was only available for the years 2000-2012. Historical and current reporting on mine productivity statewide and nationwide indicates a trend of declining productivity across all Coalfields in the United States since the year 2000, further illustrated by Eastern Kentucky and Western Kentucky. Coal mining productivity in both Coalfields of Kentucky has been falling over the last decade. Yet, the decline in Eastern Kentucky productivity during this time has been substantial. At an average of 1.97 tons per labor hour in 2012, productivity in the Eastern Coalfield is down 48 percent from the year 2000. Moreover, productivity for both surface mines and underground mines in Eastern Kentucky has been falling consistently over the last twelve years. However, surface mines in Eastern Kentucky remained the most efficient form of coal mining in the region, approximately 36 percent more productive than underground mines in 2012. 14 At 3.73 tons per labor hour in 2012, average coal mining productivity in Western Kentucky was 89 percent higher than Eastern Kentucky. Interestingly, while surface mine productivity was 5.14 tons per hour in 2012, surface mine production accounted for only 19 percent of regional production; meaning, Western Kentucky productivity was most influenced by underground operations. Additionally, though overall coal mine productivity in Western Kentucky has fallen by 15 percent since 2000, productivity in the Coalfield has held relatively stable over the past 5 years. energy.ky.gov kentuckycoal.com * Kentucky Coal Consumers, 2012 Map Courtesy of Brandon Nuttall, Kentucky Geolgoical Survey Map Courtesy of Brandon Nuttall, Kentucky Geolgoical Survey energy.ky.gov kentuckycoal.com 15 * Kentucky In-State Coal Consumption Origin of Coal Total Western Kentucky Imports Eastern Kentucky Thousand Tons 38,993 23,195 13,284 2,514 Percentage 100% 59% 34% 6% Coal consumption in Kentucky decreased by 5 percent in 2012 to 38.9 million tons. Coal mined in Western Kentucky was by far the largest source of coal used within the Commonwealth, representing 59 percent of coal consumption. Conversely, coal from Eastern Kentucky represented 6 percent of the coal consumed in Kentucky in 2012. Coal was also imported from nine different states and used within Kentucky during 2012, and combined represented 13.2 million tons and 34 percent of consumption. 16 Imported Coal Total Imports Indiana Wyoming Illinois Ohio Colorado West Virginia Utah Alabama Tennessee Thousand Tons 13,284 3,334 2,251 2,224 1,937 1,816 1,654 37 31 0.7 Percentage 100% 25.1% 16.9% 16.7% 14.6% 13.7% 12.5% 0.3% 0.2% <0.1% The market variables affecting the use of imported coal in Kentucky primarily involve price, heat content of a particular coal, and the sulfur content of a particular coal. For electrical power generation, electric utilities must balance the financial and environmental costs of these factors when purchasing coal. As a result, electric utilities, municipalities, and power producers blend coal from in-state and out-of-state sources so as to maintain a diversified fuel resource while complying with environmental regulations. Since 1990, electric utilities in Kentucky have increasingly used higher sulfur coal, a trend accelerated through the installation of sulfur dioxide scrubbers on many coal-fired generators throughout the state. (Nationally, many other electric utilities have elected to install similar environmental control systems, thereby altering traditional coal sourcing requirements). The net result of these decisions in Kentucky, specifically, has been an increasing reliance on Western Kentucky coal supplies, and a diminishing demand for Eastern Kentucky coal. Additionally, the relatively low price of coal from several western states has also increased imports for electric power generation. energy.ky.gov kentuckycoal.com * Kentucky Coal Deliveries Known shipments of steam coal from Eastern Kentucky to power plants within the United States decreased by 39 percent in 2012 to 30.1 million tons. The largest markets for Eastern Kentucky coal are traditionally located in the Southeast, and were led by Georgia, South Carolina, and North Carolina during the year. Overall, coal mined in Eastern Kentucky was shipped to 16 different states in 2012. Eastern Kentucky Coal Deliveries, 2012 Destination Thousand Tons Percentage Total 30,104 100.0% Georgia 7,058 23.4% South Carolina 5,761 19.1% North Carolina 3,908 13.0% Florida 3,141 10.4% Virginia 2,775 9.2% Kentucky 2,514 8.4% Michigan 2,028 6.7% Tennessee 1,056 3.5