Foundation Coal West

From Global Energy Monitor
Foundation Coal West is a subsidiary of Foundation Coal.

Foundation Coal West operates the Belle Ayr Mine in Wyoming, which produced 28.7 million tonnes in 2008, and the Eagle Butte Mine in Wyoming, which produced 7.3 million tonnes in 2008.[1]:

The company commenced production in 1972 and in December 2007 announced that over the life of the mines it had produced a billion ton of Powder River Basin coal. The billionth ton, it stated, was being delivered to Westar Energy's Jeffrey Energy Center located near St. Marys, Kansas.[2]

In it's 2008 annual report, Westar stated that "We have a longterm coal supply contract with Foundation Coal West to supply coal to Jeffrey Energy Center from surface mines located in the Powder River Basin (PRB) in Wyoming. The contract contains a schedule of minimum annual MMBtu delivery quantities. All of the coal used at Jeffrey Energy Center is purchased under this contract. The contract expires December 31, 2020. The contract provides for price escalation based on certain costs of production. The price for quantities purchased in excess of the scheduled annual minimum is subject to renegotiation every five years to provide an adjusted price for the ensuing five years that reflects then current market prices. We made a scheduled re-pricing in 2008. The next re-pricing for those quantities over the scheduled annual minimum will occur in 2013."[3]

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  1. Foundation Coal Holdings, "2008 Annual Report", Foundation Coal, page 11.
  2. Foundation Coal , "Foundation Coal West Ships Billionth Ton", Media Release, December 14, 2007.
  3. Westar Energy, Westar Energy 2008 Annual Report", Westar Energy, page 10. (Page 12 of the pdf).

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