Potential Coal Transportation Tonnage for the DM&E if It Builds into the Powder River Basin
January 15, 2009
Commission Takes Testimony on DM&E Project | www.ktiv.com
The Dakota Minnesota & Eastern (DM&E) Railroad was recently acquired by the Canadian Pacific (CP) Railway. The DM&E has for years been proposing an extension to the Wyoming Powder River Basin (PRB) coal reserves. If the DM&E would commence this project, it would upgrade an existing 600 miles of track and provide for 260 miles of new track expansion into the coal fields of the PRB. When the DM&E was a stand-alone Class II Railroad, it applied to the Federal Railroad Administration for Government-backed loan guarantees for this potential project. The submissions and comments related to this FRA filing portend the potential affects on the DM&E, Union Pacific (UP), and BNSF for coal tonnage from the PRB.
White Energy and Upgraded Coal – Items to Consider
January 15, 2009
White Energy to Build Coal Plant in Wyoming | www.forbes.com
White Energy intends to build a processing plant to take raw sub-bituminous coal from the Buckskin Mine in the Wyoming Powder River Basin and improve its heat content (by roughly 35%) and preserve, and possibly improve, its emissions profile. There are a few things to consider on White Energy’s venture.
January 14, 2009
In Reversal, Court Allows a Bush Plan on Pollution | www.nytimes.com
CAIR require deeper cuts in NOx emissions starting in 2009 and SO2 emissions starting in 2010 in the Eastern US. This is through a cap and trade program with the usage of limited emissions allowances for both NOx and SO2 emissions. CAIR was originally thrown out by the Courts on July 11, 2008 and reinstated on December 23, 2008. CAIR requires annual NOx allowances starting in 2009 for the affected Eastern states plants. Previously, certain Eastern states only had seasonal NOx allowance requirements. Now most of these Eastern states plants will be required to have annual NOx allowances for 12 months of the year and seasonal NOx allowances for 5 months of the year (May 1 to September 30). CAIR also requires starting in 2010 affected Eastern states plants to surrender 2 SO2 allowances for each ton of SO2 emissions. This surrender rate changes to 2.86 starting in 2015. Pre-2010 banked SO2 allowances retain their surrender rate for 2010 and beyond compliance.
New Coal Demand from New Coal Plants Coming Online in 2009
December 8, 2008
Sector Snap: Coal Sector Falls on Weak Demand | money.cnn.com
Despite U.S coal demand forecasted to be down in 2009 for thermal and metallurgical exports, new coal plants coming online will require incremental coal demand.
Fuel Switching from Coal- to Natural Gas-Fired Electricity Generation
December 8, 2008
Oil Price Drop Forces Big Energy to Retreat | www.time.com
Current natural gas prices of approximately $6.00/MMBtu allow electricity generation on natural gas to be more economic compared to coal in certain areas of the U.S. This is further favored by the time of the year.
U.S. Thermal Coal Exports for 2009
December 8, 2008
U.S. Coal Export Boom Over for Now | www.guardian.co.uk
U.S thermal coal exports will be down in 2009 versus 2008 since the U.S.’s coal is no longer competitive into Europe and other world locations.
CSX Tariff Rate for Export Steam Coal to Rise January 1, 2009
December 8, 2008
CSX Tariff for Export Bituminous Coal | www.csx.com
The CSX is raising tariff rates for export steam coal on January 1, 2009
Rate Case Demonstrates Coal Transportation’s Attractiveness to Union Pacific and Other Railroads
November 14, 2008
Oklahoma Gas & Electric Files Rate Case Against Union Pacific Railroad for Coal Transportation | www.stb.dot.gov
The most recent Surface Transportation Board Rate Case filed by Oklahoma Gas & Electric (OG&E) against the Union Pacific Railroad (UP) for coal transportation from the Powder River Basin to the Muskogee coal plant actually shows the attractiveness of this move to the Union Pacific Railroad and other railroads. The commentary section describes the positive economics around this Rate Case to the UP.
Surface Transportation Board Rate Case Process and Why it is Biased for the Railroads
November 14, 2008
Oklahoma Gas & Electric Files Rate Case Against Union Pacific Railroad for Coal Transportation | www.stb.dot.gov
Another coal-transporting utility has filed a Rate Case at the Surface Transportation Board (STB) alleging excessive rates for coal transportation. This most recent case was filed by Oklahoma Gas & Electric (OG&E) against the Union Pacific Railroad (UP) for coal transportation from the Powder River Basin to the Muskogee coal plant. The commentary section describes the STB Rate Case process using the OG&E situation and its bias to the railroads.
Railroad Fuel Surcharge Court Case to Proceed – Potential Costly Outcome to Four Class I Railroads
November 12, 2008
Railroads Face Price-Fixing Suit on Surcharges | money.cnn.com
The suit alleges four of the Class I Railroads violated Federal antitrust laws with respect to fuel surcharge. The four Class I Railroads in the suit are CSX, Norfolk Southern, BNSF Railway, and Union Pacific Railroad. The time period is July 2003 through June 2007
Chesapeake Energy bites the natural gas bullet
January 25, 2012
Flurry of newbuild drilling rig deliveries in 2012 may dampen rig rates
January 20, 2012
Talisman joins the ranks of cautious E&P companies
January 12, 2012
Early signs of caution begin to cloud frontier exploration and production
January 4, 2012
It's too early in the game to write off Shtokman
December 8, 2011