Annual Report 3 - New Mexico - Energy, Minerals and Natural ...

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82 COAL: Coal production value set a new state record in 2009, topping $735.9 million. Although New Mexico coal production value increased, coal production decreased 7.0 percent to 23.9 million short tons in 2009. New Mexico coal production reached an all-time high in 2001; production has fluctuated within a narrow range over the past 20 years (Figure 6). Production (short tons) 40,000,000 30,000,000 20,000,000 10,000,000 0 1989 1990 1991 1992 New Mexico Coal Production and Value, 1989 - 2009 1993 1994 1995 1996 1997 1998 1999 2000 New Mexico’s main coal reserves are located in the San Juan Basin (San Juan, McKinley and Cibola counties) and the Raton Basin (Colfax County). Five mines in the San Juan basin produced coal during calendar year 2009. Four surface coal mines were active: BHP Billiton’s Navajo, Chevron Mining’s McKinley North and Peabody Natural Resources’ Lee Ranch and El Segundo mines. BHP Billiton’s San Juan Mine, a single longwall operation, is the only underground coal mine active in the state. The 33,000-acre McKinley Mine ceased mining operations in December 2009. An additional 80,000 tons of coal were under contract to be delivered in 2010. Over 179 million tons of coal was mined at the site since 1962. McKinley operated under two mining permits: a federal permit for the North area from the Office of Surface Mining and a state permit for the South area through MMD. The North permit area is on the Navajo Nation; the South permit area includes Navajo allotment, federal, state and private lands. The workforce was reduced by a third in late December 2009 as work shifted from mining to reclamation. Approximately 100 employees remain at the mine to focus solely on reclamation activities. 2001 2002 2003 2004 2005 2006 Production (short tons) Production Value 2007 2008 ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT 2009 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $- Figure 6 Production Value ($)
Due to the closure of the McKinley Mine and completion of reclamation activities at La Plata Mine, coal employment and payroll decreased in 2009. Direct coal employment decreased 11.1 percent to 1,324 workers. The number of contract employees decreased 38.8 percent to 147 workers. Payroll decreased 11.1 percent to $103.4 million. Coal reclamation activities involved 105 employees (direct and contract). The primary customers for New Mexico’s coal are coal-fired power plants in the Four Corners region. Both BHP operations provide coal to “mine-mouth” power plants: the San Juan Mine feeds PNM’s San Juan Generating Station in Waterflow, and the Navajo Mine feeds Arizona Public Service Company’s Four Corners Generating Plant in Fruitland. A mine-mouth power plant is a power plant located in close proximity to the mine that provides the coal. Coal from the McKinley Mine was shipped via rail to Arizona Public Service Company’s Cholla Power Plant in Joseph City, Arizona. Lee Ranch and El Segundo mines provide coal to Tri-State Generation & Transmission Association’s Escalante Generating Station in Prewitt, New Mexico. Lee Ranch and El Segundo also ship coal to the Cholla Power Plant, replacing the former supply from the McKinley Mine. In November 2010, Arizona Public Service Company announced plans to close part of the Four Corners Power Plant and seek majority ownership of the plant’s remaining two generating units from Southern California Edison. The decision is being driven by new federal proposals aimed at lowering emissions and California laws prohibiting utilities from investing in coal-fired power plants. Arizona Public Service Company projects that coal sales will decrease by 30 percent at the adjacent Navajo Mine. The proposed 1,500-megawatt Desert Rock Generating Plant, located on the Navajo Nation near Farmington, currently has no final permits in place. The draft Desert Rock Environmental Impact Statement was completed in 2007, and the final air permit was issued in July 2008 by the U.S. Environmental Protection Agency (USEPA). However, in 2009 the USEPA withdrew the air permit for the proposed plant because the plant plans did not address carbon dioxide emissions limitations and did not include best available pollution control systems. Desert Rock developers also failed to complete a required consultation with the U.S. Fish and Wildlife Service regarding two endangered fish. The Bureau of Indian Affairs withdrew its biological opinion in support of the plant acknowledging significant concerns about the impact of the plant’s potential mercury and selenium discharges on San Juan River fish. The Coal Mine Reclamation Program focuses on promoting successful and innovative approaches to reclaiming areas disturbed by coal mining. Geomorphic reclamation projects are also ongoing at the McKinley and San Juan mines. Chevron continues to perform maintenance projects at the York Canyon mines in Colfax County. ANNUAL REPORT 2010 Photo by: James O’Hara The geomorphic reclamation at La Plata mine was nationally recognized with a 2009 Excellence in Surface Coal Mining Reclamation Award. The reclaimed area underwent a Phase I bond release in 2010. 83
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Photo by: Mikal Altomare New Mexico
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Photo by: Mikal Altomare Photo by:
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Contents Message from Secretary Noe
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Organization Charts Energy Conserva
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values on forested, rangeland, and
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800 700 600 500 400 300 200 100 0 C
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ANNUAL REPORT 2010 Figure 3 11
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ANNUAL REPORT 2010 Figure 4 13
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monitoring and emergency response e
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The funding is equally distributed
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Number 120 100 80 60 40 20 0 1992 1
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In Thousands 25 20 15 10 5 0 25 20
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Organization ANNUAL REPORT 2010 Pro
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ANNUAL REPORT 2010 Fernando Martine
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more energy dollars in our state th
Page 31 and 32:
Solar Market Development Tax Credit
Page 33 and 34: New Mexico’s total installed wind
Page 35 and 36: in 2008 (latest available data), to
Page 37 and 38: 463) to the statutes have been the
Page 39 and 40: CERB program is jointly administere
Page 41 and 42: In 2004, ECMD facilitated the insta
Page 43 and 44: AMERICAN RECOVERY AND REINVESTMENT
Page 45 and 46: Table 2. ARRA Energy Efficiency and
Page 47 and 48: enewable energy and energy efficien
Page 49 and 50: 40% 35% 30% 25% 20% 15% 10% 5% 0% 1
Page 51 and 52: CARBON DIOXIDE EMISSIONS: Carbon di
Page 53 and 54: NEW MEXICO STATE FORESTRY Forestry
Page 55 and 56: Landowners and communities receive
Page 57 and 58: Forestry received and processed 29
Page 59 and 60: drafting land management plans, pro
Page 61 and 62: The New Mexico Forest Legacy Progra
Page 63 and 64: projects, workshops on forest and w
Page 65 and 66: SOCORRO DISTRICT - Catron, Doña An
Page 67 and 68: ANNUAL REPORT 2010 Figure 2 65
Page 69 and 70: ANNUAL REPORT 2010 Photo by: Carmen
Page 71 and 72: Mining and Minerals Division ANNUAL
Page 73 and 74: ACCOMPLISHMENTS ADVANCES IN MINE RE
Page 75 and 76: webpage continuosly improved based
Page 77 and 78: (CCBs) inter-layered with previousl
Page 79 and 80: create a public hazard due to possi
Page 81 and 82: New Mexico remains a leading United
Page 83: ^_ " XW XW !( ^_ ^_ ^_ ^_ Commodity
Page 87 and 88: Copper employment decreased 58.7 pe
Page 89 and 90: Uranium recovery in New Mexico ceas
Page 91 and 92: copper mining in 2009, gold and sil
Page 93 and 94: Potash demand and prices fell at th
Page 95 and 96: Copar Pumice Company ceased pumice
Page 97 and 98: Aggregates are a high volume/low un
Page 99 and 100: Oil Conservation Division A Message
Page 101 and 102: OCD works with representatives from
Page 103 and 104: The division implemented Agreed Com
Page 105 and 106: Data and Statistics OVERVIEW: As of
Page 107 and 108: FY 2010 State General Fund Revenue
Page 109 and 110: State 36% State 17% Private 17% 200
Page 111 and 112: State Parks Division A Message from
Page 113 and 114: More New Mexico communities sought
Page 115 and 116: and combat the growing disconnect b
Page 117 and 118: instructor-led and on-line courses.
Page 119 and 120: Photo by: New Mexico State Parks Ph
Page 121 and 122: esource partnerships resulted in $2
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