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
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