Colorado Geological Survey • Colorado School of Mines • Golden, Colorado • 201512

SUMMARY

Coal mining in Colorado continues to be a critical natural resource-based industry that accounts for the majority of the state’s electric power fuel supply. In 2014, 59% of Colorado’s electricity was generated by coal-fired power plants, while 22% came from natural gas, and 18% from renewables (wind, hydro- electric, solar, biomass). In 2013, 64% of Colorado’s electricity was generated by coal-fired power plants. This declining trend is due to: (1) the price of natural gas has decreased relative to coal in recent years and many power plants across the U.S. have converted from burning coal to burning natural gas; (2) new regulations, and the uncertainty regarding potential additional regulations and taxes stemming from environmental concerns related to CO2 emissions, have increased operating costs and investment risks for coal-fired power plants, and (3) the rapidly growing use of renewable energy technologies. In 2010, the Colorado State Legislature passed the Clean Air-Clean Jobs Act which promoted the replacement of six aging coal-fired power plants located on the Front Range with natural gas power plants. Once all of these coal plants are closed or replaced, it is estimated that this will lead to a reduction of up to 4 million tons of coal sales, according to the Colorado Mining Association. The 160 megawatt (MW) Arapahoe Station coal-fired plant in Denver was shut down in 2013, and the 44 MW Clark Station plant in Cañon City was closed in 2012.

Overall, coal production has decreased 39% in the last 10 years as indicated by the production figures shown in Table 1 and Figure 2-12. Production in 2014 was 22.98 million tons, down over 5% from the 24.27 million tons mined in 2013. The production value for coal in 2014 was $867 million, down 5% from $912 million in 2013. Coal prices have risen fairly steadily since 2001 (Figure 2-13). The average price for coal in Colorado in 2014 was $37.75, up slightly from the 2013 price of $37.58. Employment in the coal mining industry has dropped nearly 34% from a recent high of 2,279 jobs in 2012 to 1,512 jobs in 2014 (Figure 2-14), according to the Colorado Division of Reclamation Mining and Safety (DRMS). The losses of these relatively high-paying jobs in rural parts of the state have a great impact on regional economies.

The coal mined in Colorado ranges from subbituminous to bituminous with a British thermal unit (Btu-heating value) content ranging from 9,850 Btu (subbituminous) to a high of 12,581 Btu (bituminous). Colorado has compara-tively clean coal as evidenced in the coal analyses shown in Table 2.

CONVENTIONAL ENERGY RESOURCES: COAL

2001 33.41 $17.30 $578 1761

2002 35.20 $18.44 $649 1854

2003 35.88 $19.59 $703 1859

2004 39.81 $20.09 $800 1903

2005 37.82 $21.50 $813 1963

2006 35.49 $27.44 $974 2065

2007 36.14 $26.20 $947 2069

2008 32.34 $28.81 $932 2124

2009 28.58 $31.29 $894 2247

2010 25.21 $30.66 $773 2061

2011 27.03 $33.77 $913 2254

2012 28.04 $37.54 $1,053 2279

2013 24.27 $37.58 $912 1857

2014 22.98 $37.75 $867 1512

Production Colorado Average Product

Year Short Tons Annual Coal Price Value Coal Miner

(Millions) $/Short Ton (Millions) Employment

0

5

10

15

20

25

30S

ho

rt T

on

s (M

illi

on

s)

Pro

du

ctio

n V

alu

e (

Mil

lio

ns)

20012003

2005

35

40

45

20072009

20062004

20082011

20132012

2014$0

$200

$400

$600

$800

$1000

20102002

33.4 35

.2

35.9 39

.8

37.8

35.5

36.1

32.3

28.6

25.2 27

.0

28.0

24.3

23.0

$1200

$867

Data: DOLA; EIA avg. sales price by state; CGS, 2001-2008

Figure 2-12. Production and value of coal mined in Colorado, 2001–2014.

Table 1. Coal production, price, value, and employment, 2001–2014.

Data: DOLA; EIA avg. sales price of coal by state; CGS reports 2001-2008; Colorado Division of Reclamation, Mining, and Safety (DRMS).

Colorado Geological Survey • Colorado School of Mines • Golden, Colorado • 2015 13

Because it typically contains less sulfur and other contaminants than eastern U.S. coals, some Colorado coal is shipped to eastern power plants to help them reduce sulfur emissions and comply with air quality standards.

Table 3 compares average coal quality values for the Central Appalachian and Illinois Basin coal regions to average Colorado coal quality values.

$/S

ho

rt T

on

Ton

s P

rod

uce

d (

Mil

lio

ns)

20012003

2005

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

20072009

20062004

20082011

20132012

2014

0

5

10

15

20

25

30

35

40

20102002

33

35 36

40

38

35 36

32

29

25 27 28

24 23

$37.75Data: DOLA; EIA avg. sales price of coal by state; 2009-2014; CGS, 2001-2008

Figure 2-13. Coal production and average yearly coal price in Colorado, 2001–2014.

Data: DRMS

22.98

1512

199405

10

15

20

25

30

Pro

du

ctio

n (

Mil

lio

n T

on

s)

Em

plo

ym

en

t1996

19982000

20022004

35

45

40

20062008

20102012

20140

500

1000

1500

2000

2500227939.81

Figure 2-14. Coal production and employment in Colorado, 2001–2014.

Denver Green River North Park Raton Mesa San Juan Uinta South Park Canon City Analyses Region Region Region Region Region Region Region Region

Ash % 11.2 9 12.4 16.1 12.7 6.8 6.4 9.8

Sulfur % 0.3 0.6 0.5 0.7 0.8 0.6 0.5 0.8

BTU (per lb.) 9,072 10,973 9,483 12,541 12,758 11,879 9,780 11,130

Mercury --- <0.02 --- 0.035 0.03 0.02 --- 0.185

(ppm)

Mercury values are from the U.S. Geological Survey National Coal Quality Inventory at active mines in 2001 (Colorado Geological Survey Information Series 58).

Table 2. Average coal quality values for mineable coal beds from coal mines in Colorado by coal region.

Working coal beds at a surface mine in NW Colorado. Photo Chris Carroll archive.

Analyses Colorado Average Central Illinois

(from Table 2) Appalachian Region Basin

Ash % 10.55 7.24 11.10

Sulfur % 0.60 1.05 3.0

Btu (per lb.) 10,952 13,540 11,200

Mercury (ppm) 0.06 0.21 0.12

Table 3. Average coal quality values for major coal producing regions in the east-ern U.S. vs Colorado averages.

Colorado Geological Survey • Colorado School of Mines • Golden, Colorado • 201514

There are currently 8 active coal mines in Colorado (Table 4). The New Elk Mine west of Trinidad pro-duced a small amount of coal in 2014 before closing late in the year. Colorado is ranked 11th in coal production in the U.S. (Figure 2-15). The mines are shown on the map in Figure 2-16, along with power plants and coal regions. Wyoming, the leading pro-ducer by far, mined 16 times more coal than Colorado in 2013.

CARBON CAPTURE AND STORAGE

Currently there are no carbon capture and storage (CCS) projects in Colorado. According to the National Conference of State Legislatures (NCSL), Colorado along with 12 other states offer financial incentives such as tax exemptions, credits, and deductions for coal plants, technologies, and equipment for separating and capturing CO2 from power plant flue gas.

Mine Operator County Mine 2014 Production

Type (tons)

Data: Colorado Division of Reclamation, Mining and Safety (DRMS).

Bowie #2 Bowie Resources Ltd. Delta Underground 2,407,598

Colowyo Colowyo Coal Co. L.P. Moffat Surface 2,481,775

Deserado Blue Mountain Energy Rio Blanco Underground 1,937,531

Foidel Creek Twenty Mile Coal Co. Routt Underground 6,659,492

King II National King Coal LLC. La Plata Underground 970,790

New Horizon Western Fuels-CO LLC Montrose Surface 283,618

North

Trapper Strip Trapper Mining Co. Moffat Surface 1,943,717

West Elk Mountain Coal Co. Gunnison Underground 6,283,478

New Elk Clime Mining Co. Las Animas Underground 14,238 (closed late 2014)

Table 4. Active coal mines in Colorado, 2014.

WIS

MICH

KY

TENN

ILL

IOWA

MOKANS

NEBR

TEXASMS

UTAHNEV

ARIZ NM

CAL

OR

WASH

ARK

MA

LA

IN

MONT

WYO

OKLA

OH

GA

PADE

AL

FL

VAWVA

ND

COLO

Data: Department of Energy, Energy Information Agency

WYOMINGWEST VIRGINIAKENTUCKYILLINOISPENNSYLVANIATEXASMONTANAINDIANANORTH DAKOTAOHIOCOLORADONEW MEXICOALABAMAUTAHVIRGINIA

387.9115.9

80.452.150.842.942.239.127.625.124.222.018.617.016.6

39.411.8

8.25.35.24.44.34.02.82.52.52.21.91.71.7

Millionshort tons

%TotalU. S.PRODUCING

TOP 15 COAL PRODUCING STATES, 2013

Figure 2-15. Top 15 coal-producing states in 2013.

Tandem-trailer haul truck leaving a NW Colorado mine. Photo Chris Carroll archive.

Colorado Geological Survey • Colorado School of Mines • Golden, Colorado • 2015 15

Figure 2-16. Locations of active coal mines, power plants, railroads, and coal-bearing regions in Colorado, 2014.

Rangely

Craig Steamboat Springs

Meeker

Walden

Glenwood Springs

Grand Junction

Gunnison

Delta

Montrose

Nucla

Pagosa Springs

Silverton

Durango

Creede

Alamosa

Canon City

Trinidad

Pueblo

Colorado Springs

Fairplay Aspen

Fort Collins

Sterling

Limon Castle Rock

Golden

Longmont

Greeley

Boulder

Denver

Burlington

Lamar

Walsenburg

Leadville

Kremmling

Fort Morgan

GREEN RIVERREGION

DENVERREGION

CANONCITY

REGION

RATONREGION

SOUTHPARKREGION

NORTHPARKREGION

UINTAREGION

SANJUANRIVERREGION

SANJUANRIVERREGION

Nucla

NEWHORIZON

NORTH

KING II

WEST ELK

BOWIE NO. 2

Craig Hayden

COLOWYO TRAPPER

FOIDEL CREEK

Rawhide

PawneeValmont

Drake

Nixon

Comanche

DENVERREGION

DESERADO

(Abandoned)

NEW ELK(Closed late in 2014)

ClarkCoal-fired power plant

Surface mine

Underground mine

Railroad

Past coking coal production

Lignite, <150 ft overburden

Lignite, 150-1,000 ft overburden

Bituminous-subbituminous, <150 ft overburden

Bituminous-subbituminous, 150-2,500 ft overburden

Bituminous, >2,500 ft overburden

Anthracite or semianthracite

Coal region name

Explanation DENVER

Types of Coal