Colorado and coal

Introduction
In 2006, Colorado ranked seventh in the nation in coal production, with over 36 million short tons of coal produced. Approximately 68% of Colorado coal is exported to Kentucky, Mississippi, Tennessee, Texas, Utah, and Wisconsin. Most of the coal used in Colorado is its own, although the state also imports coal from Wyoming. About 70 percent of the coal produced in Colorado is a high-grade bituminous coal with low ash and sulfur contents.

Coal-fired power plants produce about 70% of the electricity generated in Colorado. In 2006, Colorado power plants consumed 19.37 million tons of coal to generate about 37.5 million MW hours of electricity.

In 2003, Colorado produced 90 million metric tons of carbon dioxide emissions, ranking it 23rd in the nation overall.

Coal production in Colorado dropped from 35.4 million tons in 2006 to 28.5 million tons in 2009, according to statistics from the Colorado Division of Reclamation, Mining and Safety.

Citizen activism
On November 4, 2008, voters in Boulder County passed Ballot Issue 1A. The measure will create a voluntary program for property owners to install energy efficiency improvements such as solar panels, with loans backed by up to $40 million in bonds. The individual loans will be tied to the property rather than the owner and will be repaid via assessments added to property tax bills. If a property owner moves within five years, the loan is transferrable to the new owner via the same assessment. Reducing the cost of solar panels and other efficiency measures is expected to remove a significant barrier for many Boulder homeowners.

July 14, 2009: Residents protest Valmont at public hearing, push for conversion
Xcel Energy and the City of Boulder are in negotiations to renew Valmont Station's contract with the city. The agreement must be renewed every five years and is slated to expire in August 2010. Many Boulder residents are pushing for the plant to stop burning coal either shut down entirely or convert to cleaner energy.

On July 14, 2009, the Colorado Air Quality Control Commission held a hearing to solicit public comment on renewing the plant's permit. More than 200 people turned out to oppose the plant at a rally before the meeting. About 50 people addressed the Commission, asking its members to deny the permit because the plant emits more than 1 million metric tons of carbon dioxide each year.

November 18, 2009: Demonstrators protest Cherokee and Valmont Stations: Denver, CO
Protesters dressed as clowns visited Colorado Governor Ritter's office to urge him to "stop clowning around when it comes to confronting global warming." Environmental groups are opposed to Xcel's request to renew expired permits at its Cherokee and Valmont Stations and want the state to pursue clean energy options instead. New research has shown that nitrogen oxide emissions are clouding lakes, changing lake biology, and threatening the aquatic life in the Colorado mountains.

November 19, 2009: Residents pack regulator's hearing on Cherokee: Denver, CO
Local residents packed a public hearing by state air-quality regulators, urging officials to deny Xcel's request to renew its permit for Cherokee Station. More than 50 people spoke in opposition to the plant and advocated for a switch to cleaner energy sources. Residents argued that at minimum, regulators should work with Xcel to ramp up natural-gas systems at the plant, and then switch to solar and wind as those technologies mature.

November 30, 2009: Activists stage "Die-In" at Department of Public Health and Environment in Denver, CO
Fifteen activists demonstrated outside the Colorado Department of Public Health and Environment (DPHE) to demand the denial of Xcel Energy's request to renew its air permit for Cherokee Station. The protesters greeted DPHE employees as they arrived for work and called on the department to close the coal plant. Protestors staged a "die-in" to call attention to the harmful health and environmental effects of coal. Other activists wore hazmat suits and roped off the area with "Global Warming Crime Scene" tape.

February 26, 2010: ‘Die-in’ at Xcel Headquarters in Denver, Colorado
On February 26, 2010, local citizens in Denver staged a 'die-in' at the headquarters for Xcel Energy in opposition to the utility’s plan to build a new coal-fired power plant, Comanche 3, in Pueblo, Colorado. The plant would be the largest in the coal-fired power station in the state. Protesters cited environmental as well as social and economic issues as reasons for their actions. “Our leaders are failing to lead and Xcel is failing to take their responsibility seriously. Xcel should expect more protests and actions unless they start closing down coal plants and moving Colorado to 100% renewable electricity,” Kate Clark, a Power Past Coal activist. The protest was part of an ongoing series of actions by concerned citizens in Colorado who seek to end coal-power in the state.

April 1, 2010: Activists Pull Prank on Xcel
On April Fools’ Day, as part of the international "Fossil Fools Day" – Colorado activists pulled a prank on Xcel Energy. The group developed a farce website www.xcelresponsiblebynature.com, a satirical press release, and a letter to Colorado ratepayers which states that activists helped Xcel Energy become a renewable energy leader. The announcement purported that Xcel Energy would switch to 100% renewable electricity in Colorado by phasing out all coal plants and abandoning plans to convert existing coal plants to natural gas.

April 27, 2010: 5 Arrested in Boulder Anti-coal Campaign
On April 27, 2010 five people were arrested by Boulder Police officers and Boulder County sheriff's deputies during a protest at the Valmont Station in Denver.

The five activists joined about 20 protesters from the Rocky Mountain Peace and Justice Center who gathered around in the early afternoon protest against use of coal at the plant by Xcel Energy. Reported the Denver Post:


 * The environmental activists climbed atop a large coal pile in front of the plant, put up two mock wind turnbines and a large banner that read: "RENEWABLES NOW."


 * The protestors [sic] stood atop the coal pile for nearly two hours before authorities arrived, organizers said in a press release.


 * "Boulder is ready to move forward with 100 percent renewable electricity. If Xcel is not willing to partner with the city to make this happen, then Boulder officials and citizens need to take our energy future into our own hands," said protestor [sic] Tom Weis.

April 2011: Groups oppose proposed changes to roadless rules
In April 2011 environmental and sportsmen's groups in Colorado mobilized to toughen the government's latest plan to protect remaining roadless national forest land in the state. A draft plan unveiled on April 14, 2011 by federal and state forest officials weakens the current national rule, contended the groups. The proposed exceptions for new roads included coal-mining, ski area development and tree-cutting to prevent wildfires in beetle-ravaged forests near towns.

The current national rule blocks most road-building on 4.4 million acres of relatively pristine forest in Colorado, where there are about 14.5 million acres of national forest. Nine Colorado environmental groups rejected the updated policy.

The exception for coal companies on Colorado's Western Slope would allow temporary roads for drilling and maintaining methane gas vents needed for expansion of underground mining

August 2011: Activists attend public meeting regarding proposed coal-fired power plant
On August 29, 2011 activists attended a meeting in Westminster, Colorado about the development of a new coal-fired power plant proposed 895-megawatt Holcomb Expansion in southwest Kansas. The plant would provide power for Colorado customers. The coal-fired power plant, critics said during the meeting, would be a polluter and subject to potentially big increases in coal prices. The plant has been approved by the state of Kansas. Activists at the meeting sought a commitment from Tri-State that it would not pursue development of the proposed plant in Kansas. The company would not commit to the activist's plea.

September 2011: Boulder citizens push for renewal municipality
Citizens of Boulder, Colorado started a group called RenewablesYes to push for the formation of a municipality to provide its citizens with electrical services in Boulder. The group has held meetings and is working on creating a municipal electric utility for the town powered by renewables.

Legislative and legal issues
Environmentalists are working to introduce legislation requiring utility companies to disclose fuel and emissions information to customers. The legislation would require utilities to put fuel, emissions information, and plain-language explanations of fees for fossil fuels in easy-to-read graphs on customer bills.

In 2004, Coloradans passed Amendment 37, which set the country’s first voter-approved renewable energy requirement at 10 percent by 2015. In 2007, Gov. Bill Ritter and the legislature doubled the requirement to 20 percent by 2020.

On March 22, 2010, Gov. Ritter signed into law House Bill 10-1001 – sponsored by Rep. Max Tyler and Sens. Gail Schwartz and Bruce Whitehead - which requires that 30 percent of Colorado's electricity be generated from renewable sources by 2020. HB 10-1001 also calls for 3 percent of the standard to be met by local solar power.

Judge forces EPA to address haze rule in four Western states
On September 30, 2011 a federal judge approved a deal requiring the Environmental Protection Agency to finalize by plans to reduce haze-causing pollution from coal-fired power plants and other sources in four Western states by 2012. The Environmental Defense Fund, WildEarth Guardians and National Parks and Conservation Assocation sued the EPA for failing to address haze-causing emissions, which are required under the Clean Air Act in Montana, Wyoming, Colorado and North Dakota.

Kinder to export coal from Port of Houston
In late April 2011 Kinder Morgan Energy Partners stated that the company will begin exporting Colorado mined coal through its bulk terminal at the Port of Houston. According to its first quarter earnings report, Kinder wrote that they had signed an agreement with a “large western coal producer” and will invest about $18 million to expand the ship channel facility.

Kinder stated it will be the first time Western coal will be exported from the Port of Houston. In February 2011, Kinder Morgan inked a deal with Massey Energy to export up to 6 million tons of coal annually through Kinder’s Myrtle Grove, La., facility.

Studies on coal in Colorado
According to a study conducted by Headwaters Economics based in Montana entitled "Fossil Fuel Extraction and Western Economics" reported that Colorado coal production accounted for 17% of the total mining employment in the state in 2008. Oil and natural gas accounted for a combined 74% for the same year.

Governors request federal funding for "clean coal"
On February 22, 2009, the governors of Colorado, and Utah, and Wyoming submitted a letter to President Obama asking for funding to develop "clean coal" projects in their states. Colorado Gov. Bill Ritter, Utah Gov. Jon Huntsman, and Wyoming Gov. Dave Fruedenthal, argued that developing a cleaner way to burn coal is essential to reducing emissions, protecting national security, and creating jobs. The letter also said that the Energy Policy Act of 2005 approved federal cost sharing for a clean-coal demonstration project using coal mined in the West, but that no project was ever funded. According to the governors, the three states are ready to start developing new demonstration projects and retrofitting existing plants with carbon capture and storage technologies.

Arch Coal lays off 61 Colorado miners
In June 2009, Arch Coal subsidiary Mountain Coal Co. laid off 61 miners at its West Elk Mine in Somerset, CO. The layoffs follow a recent release of about 40 contract workers. Arch Coal released a statement saying that US coal markets have gone through "an unprecedented contraction" in the last several months.

Union Opposition to Shutting Down Coal Plants
In March 2010 the AFL-CIO, which represents Excel's union workers, stated that as many as 300 union jobs could be lost if Xcel were to shut down its coal plants and convert them to natural gas. The union rep stated that natural gas plants require fewer workers.

Xcel promises to cut Colorado pollution
In March 2010, Colorado's largest utility Xcel Energy promised to cut air pollution over the next seven years. It will do so by either retiring Front Range coal-fired power plants or replacing them with natural gas and other sources of power. The company is required to submit plans by Aug. 15 to the state Public Utilities Commissions to reduce nitrogen oxide emissions at coal plants by up to 80 percent over the next eight years.

In August, 2010 Xcel filed its plan to curb emissions from its coal-fired power plants along the front range. The plan stated that Xcel would shut down the Cherokee Station's fourth coal-fired generator by 2022 and replace it with a new, natural gas-fired generator. Xcel’s plan also called for the shutdown of Cherokee’s three other coal units before 2017, as well as the construction of a new natural gas plant.

However, in late September 2010, the Colorado public health department and the Public Utilities Commission (PUC) went after Xcel’s $1.3 billion plan to curb emissions from these power plants. The PUC stated that when it ruled that it can’t consider actions that occur after 2017 — the deadline in the Clean Air, Clean Jobs Act signed into law by Gov. Bill Ritter.

The Colorado Department of Public Health and Environment stated that Xcel's “truncated plan” that stops at 2017, and does not include shutting down Cherokee’s fourth coal unit, won’t meet tighter ozone regulations that are expected from the federal government and thus won’t meet the intent of the Clean Air, Clean Jobs law.

Hearings on Xcel's plan are set for late October, 2010.

Xcel develops world's first solar/coal hybrid power plant
In July 2010, the first ever solar-coal hybrid power plant began to operate in Colorado. The project was a joint endeavor between Xcel Energy and Abengoa Solar, the unit of Xcel’s Cameo Station is intended to show that solar power can reduce the environmental impact of coal-fired power plants. The plant uses parabolic trough solar collectors to heat the water that goes into the coal-fired turbine, which reduces amount of coal used at the facility by 2 to 3 percent. For a cost of $4.5 million, the hybrid plant will produce the equivalent of just one of 49 megawatts from solar power.

Xcel offers 70% renewables to Boulder, Colorado residents
In June 2011 Xcel Energy representatives presented Boulder City officials with the company's long-awaited plan for keeping Boulder as a customer of its electricity, which would offer residents there with 70% renewable energy, primarily from wind power.

Xcel attorney Paula Connelly, stated the utility wants Boulder voters to approve two ballot measures in November, 2011. The council has been exploring the possibility of asking voters whether the city should become a municipal utility or extend its longtime relationship with Xcel.

If Xcel is granted its request, one question would ask Boulder voters to approve a new franchise agreement with the company, making it the exclusive provider of electricity to Boulder for the next two decades. A second question would ask voters to approve a public-private partnership in which Boulder customers would pay the difference between the cost of new wind energy on Xcel's system and the company's savings from having the wind energy on its grid.

City of Boulder, CO begins municipal takeover of Xcel in 2011
Voters in the city of Boulder approved a municipalization process on Nov. 1, 2011, in which the city will take over Xcel utility lines and power generating equipment. The city is the home of the University of Colorado, the National Center for Atmospheric Research and the National Renewable Energy Laboratory. Over 70 percent of voters supported the initiative according to polls in the fall of 2011, although Boulder Question 2C, which allows for the creation of a municipal utility, passed with 51.8 percent of the vote. XCel spent $950,000 fighting the initiative, while four groups that campaigned in favor of municipalization raised about one-tenth of that amount. The process could take as long as five years, and many questions remain about the value of Xcel's generating and transmission equipment. The project began in 2004 with a decision to study municipalization. One study commissioned by the city showing that direct startup costs were in the neighborhood of $28 million for the city's 96,000 residents.

Although city staff noted many uncertainties in the municipalization process, by 2009, Boulder officials concluded the city couldn't meet its goal of reducing emissions of greenhouses gases to 1990 levels by 2012. During 2009 and 2010, a volunteer team associated with Citizens for Boulder's Clean Energy Future determined that the city could reduce carbon emissions by 60%, increase the percentage of renewables by 40%, all while keeping our rates at parity or lower than those charged by Xcel. The $300 million start up and infrastructure purchase cost should be seen in the context of Xcel's revenues from Boulder, which amount to $100 million per year. Another feasibility study for the city put the cost at $223 million, excluding "stranded costs."

In August, 2010, the city allowed a contract with Xcel to lapse as municipalization became a more serious option. An August, 2011 poll by the city of Boulder showed that 71 percent of voters supported the creation of a city electric utility. The greatest support was among younger voters, renters, women, and those with an income of less $50,000.

Two Colorado Firms Receive Millions for Carbon Capture Testing
In July, 2010 two Colorado companies were awarded a total of $14.1 million in federal grants to develop and test methods for capturing carbon dioxide from coal-fired power plants. The federal Energy Department announced that the work would be done by ADA-ES of Littleton, Colorado and Ion Engineering of Boulder, Colorado.

ADA-ES of Littleton was awarded $11.1 million to develop a pilot project using solid materials called sorbents to remove carbon dioxide from power plant pollution. The project is expected to take more than three years.

Ion of Boulder will receive $3 million to build and test a technology using a salt-based solvent called ionic liquid to remove CO2. The project is expected to take 15 months.

The Colorado projects are among 10 programs in eight states that will share $67 million in grants.

Operating

 * Comanche Generating Station Unit 3 (operating 2010)
 * Lamar Light & Power / Arkansas River Power Authority (operating 2009)

Cancelled

 * AES Colorado Power Project (cancelled 2008)
 * Buick Coal and Power Project (cancelled 2007)
 * High Plains Energy Station (cancelled 2008)
 * Ray D. Nixon Power Plant (cancelled 2007)
 * Unnamed Xcel Energy Plant (cancelled 2007)
 * Unnamed Tri-State Plant (cancelled 2009)

Citizen groups

 * Clean Energy Action
 * Environment Colorado
 * Rate Payers United of Colorado
 * Sierra Club Rocky Mountain Chapter
 * Wind Power Solutions

Coal lobbying groups

 * Colorado Independent Energy Association
 * Colorado Mining Association
 * Rocky Mountain Coal Mining Institute

Power companies

 * Tri-State Generation and Transmission
 * Headquarters in Westminster, CO
 * Controls 8 coal-fired generating stations with 1710 MW capacity
 * Active proposals: Unnamed Tri-State Plant
 * Westmoreland Coal
 * Headquarters in Colorado Springs, CO
 * Active proposals: Gascoyne 500 Project
 * Newmont Mining Corporation
 * Headquarters in Denver, CO
 * Active proposals: TS Power Plant
 * North American Power Group
 * Headquarters in Greenwood Village, CO
 * Active proposals: Two Elk Energy Park Unit 1, Two Elk Energy Park Unit 2
 * NRG Energy
 * Public Service Company of Colorado, a division of Xcel Energy

Existing coal plants
Colorado has 33 operating coal-fired power units at 14 locations totaling 5,308 megawatts (MW). None of these units is larger than 50MW. (To see a map of existing coal plants in the U.S., click here.)

7 of these units are larger than 500MW.
 * Arapahoe - 160MW - 1951, 1955
 * Cherokee - 801MW - 1957, 1959, 1962, 1968
 * Comanche - 1,529 MW - 1973, 1975, 2010
 * Craig - 1339MW - 1979, 1980, 1984
 * Hayden - 465MW - 1965, 1976
 * Martin Drake - 257MW - 1962, 1968, 1974
 * Nucla - 114MW - 1959, 1991
 * Pawnee - 552MW - 1981
 * Rawhide - 294MW - 1984
 * Ray D. Nixon - 279MW - 1980
 * Valmont - 192MW - 1964

For a map of existing coal plants in the state, see the bottom of this page.

Closure Planned for W.N. Clark Station
It was announced in the fall of 2010 that Black Hills Energy proposed retiring its two coal-fired units at the Clark Station in Canon City and would build a unit in Pueblo, Colorado that would be powered by natural gas. The retirement would be part of the company's proposal to reduce its greenhouse gas emissions. The proposal will be decided on by the Colorado Public Utilities Commission by the middle of December, 2010. The company originally stated it would consider using biomass to replace the coal at the plant, but later stated that it would cost too much to run the units on biomass.

Major coal mines
As of 2010 there were approximately 10 active coal mines in Colorado with production of approximately 25,163 short tons per year.


 * Bowie No 2 Mine, Bowie Resources LLC
 * Colowyo Mine, Colowyo Coal Company LP
 * Elk Creek Mine, Oxbow Mining LLC
 * Foidel Creek Mine, Twentymile Coal Company
 * West Elk Mine, Mountain Coal Company, LLC
 * New Elk Mine, Cline Mining Corporation

Proposed coal mine expansion
In Feb. 2011, the Sierra Club and WildEarth Guardians filed an appeal with the Board of Land Appeals, challenging the Bureau of Land Management's approved expansion of the Elk Creek Mine. The groups say the BLM didn't adequately consider how expanded mining and the combustion of the mined coal would affect air quality. The mine's operator, Oxbow Mining, said the expansion would extend coal mining at current levels by a year.

In March 2011, as a result of the environmentalists' appeal, the BLM announced that they would take another look at the mining expansion and its likely impacts on local air quality.

Proposed coal mines
Red Cliff Mine, CAM-Colorado CAM-Colorado has proposed a new underground coal mine 15 miles northwest of Grand Junction in Mesa County. The Red Cliff Mine would produce 8 million tons of coal annually over 30 years, making it one of the largest in Colorado. The public comment period on the Draft Environmental Impact Statement closes on March 17, 2009.

Sage Creek Mine Peabody Energy and Twen­tymile Coal Company hope to begin construction on the new underground Sage Creek Mine in West Routt County, CO as early as 2010. The new mine is expected to replace the existing Twentymile Mine sometime in 2013, when the underground longwall mining operation is projected to run out of coal. Twentymile produced 8 million tons of coal in 2008.

Mining expansion into protected forest
In 2009, a subsidiary of the Oxbow Corporation requested to expand the Elk Creek Mine into a federally protected roadless area of the Gunnison National Forest. Oxbow requested permission to build into the area in order to drill methane vents for their underground coal mine expansion. Secretary of Agriculture, Tom Vilsack, eventually approved the roadless rule exemption for Oxbow’s Elk Creek mine in May 2010."

With the support of Colorado Gov. John Hickenlooper, the Obama administration in 2011 proposed a Colorado-specific rule that would provide protection for only about half a million acres of Colorado forest land and would permit more logging and road-building on 13% of current roadless areas in Colorado, as well as exempt 20,000 acres of roadless land in the state so that the coal industry can build in the Sunset Trail roadless area as well as other areas.

In May 2011 it was reported that Oxbow was exploring for coal on Colorado’s Oak Mesa, just a few miles from the Currant Creek roadless area. Environmentalists oppose the mine exploration on the basis that it will require road to be built in areas that are currently off limits to road development.

Colorado coal mine OK seen as a reversal of roadless rule
On November 8, 2011 the United States Forest Service approved a 1,700-acre expansion of the West Elk Mine on Colorado’s Western Slope.

West Elk is owned by Arch Coal, who praised the decision for its job-saving potential. Environmental groups blasted the USFS ruling for its possible industrialization of the pristine Sunset Trail roadless area adjacent to the West Elk Wilderness Area. The West Elk mine expansion would be mostly underground, however Arch Coal would construct up to 48 well pads and 6.5 miles of roads in the Sunset Trail area in order to vent methane gas from the coal mine.

“The Forest Service is snatching defeat from the jaws of victory,” said Earthjustice attorney Ted Zukoski. “The administration should not be paving the way for an incursion into roadless lands when a court has just upheld its authority to protect those lands. This administration promised to protect Colorado roadless areas as well or better than the 2001 Roadless Rule required. It doesn’t look like they intend to live up to that promise.”

New Elk Mine lays off workers
In May 2012 the Cline Mining Corporation announced they had laid off a total of 70 miners at the company's New Elk Mine due to coal's weak market performance.

Related SourceWatch articles

 * Existing U.S. Coal Plants
 * Existing U.S. Coal Mines
 * U.S. coal exports
 * US proposed coal plants (both active and cancelled)
 * Coal plants cancelled in 2007
 * Coal plants cancelled in 2008
 * Utility Customer Fuel and Emissions Disclosure
 * Profiles of other states (or click on the map)