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Show iiiiiiiiiiiiiiiiiiiiiiifiiiiimniiiifiiriiiiiiiitfif itiiiirTtfiftiitiiiiiiiMHritiiiiiiiiiifiituiiiiif iiiiif EitiiiiiiiiiKiiiititiuitk Western Resources WRAP-UP iiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin nun Western Fuels By Helene C. Monberg Vernal Express Washington Correspondent Washingtin Ken Holum, retiring general manager of Western Fuels Association, Inc., sees another power shortage looming on the horizon in the next decade. "Power generating plants are no longer being built in this country because of the difficulties involved," Holum told Western Resources Wrap-up Wrap-up (WRW) in an interview on Jan. 18. "Utilities are postponing building new plants, so very few new ones are being be-ing started. Utilities that see a need for additional addi-tional generation by 1995 should have plans for additional generating plants on the drawing board now. Few do. We are likely to have a shortage of generation genera-tion by 1995," he said. Holum said it takes 10 years to put a new generating plant on the line. Instead of taking the longer route, utilities today are "resorting to quick and expensive fixes," such as small coal-fired units and portable oil and gas generators rather than building base-load generating plants for the long haul, according to Holum. The expensive ex-pensive small units are likely to anger further consumers already up-in-arms about higher electric rates, he observed. "There are a lot of hostile consumers con-sumers out there complaining about their rates," he told WRW. Consumer hostility to new power plant construction construc-tion is one of the reasons why utilities are delaying new power plant construction, con-struction, Holum indicated. "It used to be that one of the cushiest jobs you could have was to be a utility executive of an IOU (investor-owned utility). That day has passed," he declared. Even managing a rural electric cooperative has become a hazardous business, according to Holum. "A lot of managers of rural electric cooperatives have lost their jobs in the last few years," he noted. Holum has been active in the rural electric and rural telephone movement for 50 years. BUILDER OF POWER PLANTS, COAL MINES, SPUR RAILROADS Holum knows a lot of the headaches involved in power plant construction. Western Fuels was deeply involved in the siting and construction of the Laramie River Station, a 1,650,000 kilowatt (KW) power plant, Grayrocks Dam and its 104,000 reservoir and other facilities near Wheatland in Southeastern Wyoming. Cost of the Laramie River Station and facilities was (1.6 billion, according accor-ding to Western Fuels, or about $1 ,000 per kilowatt, or 1,000 watts. This includes in-cludes more than $330,000,000 which has been invested in sophisticated environmental en-vironmental controls and equipment for the protection of lands, air and water. The station is a "zero water discharge" facility; the water used for cooling the power plant is not returned return-ed to the Laramie River. A trust fund was also established for the protection of whooping crane habitat downstream from the reservoir. reser-voir. The plant was complt'ted and put on line in 1979. That Wn-tcrn Fuels' first pro-jrcl. pro-jrcl. Since then it has built its first mine in Southern Illinois. H is now in the process of completing a O.Wi0 KW pnwcrplant In Eastern I'uh, a mine at nrar ilangrly, Colo., to provide the coal lor the iwmanui Pocr plant at Human, Utah, and a railroad pur to move the coal from mine to power plant for one of it rormtwr. tH-M-rcl G4T Cooperative of S,itvly, Utah. Start up date lor the Itonana 1'latil U July 14 CVt of the platit. mine and railroad in clitnaM by Wp-lrffl Km-U el IrUrrti It J ft .4 toll tort. U haaothrf VEHICLE MAINTENANCE FACILITY NEEDED b-t f sai f. Ms a nn..'m"t 'a a wotimatsijr 12 M owl'e Ma ") 6 e"e f fet vwb'e Must feet o i'e get ewu.; ti h t 'r .? ot Ve-M. Uan. 0cuMv tr if ty S-ctefr 1. 1 995 Weres'eif pif ii ieu'd lufeM tet- GtStftAl ViCtS ADMINISTRATION ekj. tt tsti zrf Sr 03 2H 7.34 , . fs-f.o C"9 - C- m UVJ RT-Mlj !;f- Clt'tO ti-ftV-? "it? ft or !-yi.y?i hz"-t il'nc'u'es cc-t'"f 1 J6 1 ulc: e a Pit vs-jh i im 13 1 &EtBl slk v projects in the works. Since Western Fuels was founded in 1974, it has negotiated contracts for the delivery of over 250 million tons of coal from five Powder River Basin mines in Eastern Wyoming for powerplants of its members in Wyoming, Louisiana and Kansas. It owns a railcar fleet of 457 coal cars moving out of the Gillette, Wyo., area in four separate unit trains. It has officials in Gillette, Wyo., and Alliance, Neb., to monitor coal mining, loading and delivery. Its headquarters office is in Washington. It also has an engineering and exploration office in Lakewood, Colo., and four other offices of-fices in Colorado, Wyoming and Illinois, Il-linois, eight offices in all. In 1984 it supervised the delivery of about 11.5 million tons of coal from Wyoming, Colorado, New Mexico and Illinois, or more than 1.5 million more than its deliveries in 1983. In sum, quite a record for Western Fuels, incorporated as a not-for-profit fuel supply cooperative under Wyoming Wyom-ing law in 1974, with Holum as its general manager during the past decade. Western Fuels now has 34 members. When it started it had three; Basin Electric, Bismarck, N.D., Tri-State G&T of Thornton, Colo., and Cajun Electric of New Roads, La. Holum surprised the staff at Western Fuels when he told the Association's Board of Directors that he planned to retire at its August meeting. The Board established a search committee, which on Dec. 6 selected Frederick D. Palmer, Western Fuels' general counsel, to succeed Holum as Western Fuels' general manager, effective March 1. Holum, 69, and Palmer, 40, who have worked together for a decade, are making an orderly transition. They are currently touring all of Western Fuels' offices and facilities together. FROM SEEKER TO SOUGHT-AFTER In the early days of Western Fuels, Holum states in the Association's annual an-nual report for 1984, "I had to travel to Dallas, Houston, Denver and St. Louis trying to buy coal. Now energy companies seek out utility managers and fuel suppliers like Western Fuels to try to sell coal" in the current flat market for coal. 4'Today," Holum told WRW on Jan. 18, "Western Fuels is recognized by the industry-the utilities, coal companies com-panies and the railroads as a very important market. Ten years ago coal companies didn't want to sell coal. The government had a moratorium on issuing is-suing new coal leases, especially in the Powder River Basin. The coal companies com-panies were waiting to sell coal until the price went up. "In the past 10 years, Western Fuels has become the nation's leading source of fuel supply and services to consumer-owned utilities, both rural electric cooperatives and municipal systems. We are serving members from the Pacific Northwest to Puerto Rico and from the Canadian border to the Gulf of Mexico. "We have won a reputation for being be-ing tough but fair negotiators. With live railroads, as tough as you can get in a non competitive situation. We continue con-tinue to be concerned about the lack of regulation of the railroads by the Interstate In-terstate Commerce Commission (ICC). There is no mechanism to asure cnmpdiiion for coal shippers now that the railroads have been deregulated under the Staggers Act of I'.tisa. end the ICC's interpretation of that law and the 4 R Act of 1376 (the Railroad Kevitaluation and Regulatory Reform Act)," Holum aid WeMrrn Fuels has had lu problems negotiating coaUhinnwt contracts viith lour railroad, but the negotia -e;j! 5. SEBV-CtS ADM'V-TUiTiOl C","'' - ICO . tr" ll'-) ?31 ?S tions which "really ticked me off, no doubt about that," Holum told WRW, were with Burlington Northern Railroad, which has a dominant position posi-tion nearing a monopoly in moving coal out of Wyoming's Powder River Basin. Holum was incensed that after the Laramie River Station was built, Burlington Northern wanted to revise its coal-shipping contracts with Western Fuels. "While Western Fuels much prefers negotiating to litigating, the Board of Directors nonetheless turned to litiga-" tion when the Burlington Northern refused to honor its coal transportation agreements," Holum said in the 1984 annual report. The Association filed suit in October 1983 in the U.S. District Court in Wyoming, alleging breach of contract, fraud and a violation of the anti-trust laws. The Railroad denied the allegations. Palmer told WRW on Jan. 21 he had been involved in the contract negotiations negotia-tions and the law suit with Burlington so deeply that he plans to spend the next year "boning up" on the technical, non-legal aspects of Western Fuels' work. . Although the law suit was set for trial in the Wyoming Federal Court last October, it never came to trial. There was an out-of-court settlement instead. The parties to the suit have been instructed not to talk about the settlement. Holum indicated to WRW Burlington had not only agreed to stabilize its rates during the life of the contract but had cut them somewhat. "It is our job at Western Fuels to get fuel for and to our members at the cheapest possible cost per million BTU," Holum told WRW. "We are generally satisfied with the out-of-court settlement," he added. "Without Western Fuels our members would have gotten coal at a high price 10 years ago. By pooling their bargaining power through Western Fuels, they have a stronger bargaining tool to use in dealing with coal companies and railroads. That is why we maintain a presence in Wyoming. We watch the weighing and testing of coal we buy and the coal we ship. We keep one eye on the coal companies com-panies and one eye on the railroads," Holum told WRW. . BATTLE OVER RATES MOVES TO CONGRESS Western Fuels is so concerned about what it regards as the monopoly position posi-tion of coal-carrying railroads that it drafted a bill on anti-trust which got hearings in the past Congress and is expected to be introduced again in this Congress. Assistant General Manager Orren Beaty of Western Fuels is spending spen-ding most of his time these days on Capitol Hill working out the details of the legislation and lining up co-sponsors. co-sponsors. , . Holum explained the purpose of the r bill at the National Press Club on Nov. 16 as follows: "It would replace monopoly with restored competition through amendment of the Sherman Act to make it a violation for a railroad in a monopoly situation to deny the use of its tracks to another railroad or shipper if those tracks are the sole means by which the shipper, or the railroad which has won the shipper's business in fair bidding, can reach the tracks of another railroad. "Under this plan, shippers and their customers would not have to rely on the virtually unintelligible Jargon of the ICC and the AAR (Association of American Railroads). True competition competi-tion would determine the lowest ratc.We are grateful to the Senate and House sponsors of the bills we NOTK'K OF ANNUAL STtK'KII(t.!F!l3 MKF.TINt; K)R THK ANllt.F.Y C'F.N TltAL lit It h:tion COMPANY The annual mrvtintf of the Ashley Central Ir rtg.itim Cmny ill be held en Thuriday February 21, l at I M 1M. In the tourtroiffl of the Uintah County Courthouse, The annual rrwri will he prrsrntrd to the M r fcbiJ-Vrs Vng i5h a financial utatrmrnL Othrf business will ift tlu!e prop. mod change to the Article of l,xof pofatinn and h las, pfnpnfd r!!lftnrnt to the Vernal City laf uil, end the cWti-m xi tme thrre rar ditwtof. The meeting nill In',: an trn'i as t op t) Vp IvwtrtJ of l.r"c-tnf l.r"c-tnf s and piVf rrerinr' tlo !,T(lhr.! Vti of the nm pa jr. .'. ih. v?s or e-v.-r pf t k h5 V an !!" I ' H pi l tvda jtwuld hate t- n OfpffltTPd ftfvtf lQ t f fv.ary !. V in or kr to har? 3 j-Vl m the ciia. pT (Tf tJ fK r- a"! ft JfT'J. JfT " I t, 13 hope will become law.. .(and) to the Judiciary Committee staff members in both bodies for the serious interest they have taken in studying ways to correct a gap in the nation's anti-trust laws," Holum said. Holum told WRW that the bills in the last Congress (S2417 and HR 4559) were the only ones of their type to get hearings in both the Senate Judiciary Committee, on Sept. 18, and the House Judiciary Committee, on Sept. 19. The legislation is being redrafted a bit for its reintroduction in this Congress. It is expected to be reintroduced in the next two weeks. Major sponsors in the Senate are Sens. Dennis DeConcini, D-Ariz., Max Baucus D-Mont., and probably Alan K. Simpson, R-Wyo., who sponsored the legislation in the last Congress. Major sponsors in the House are Rep. John F. Seiberling, D-Ohio, an anti-trust lawyer prior to coming to Congress, and Reps. Morris K. Udall, D-Ariz., and Byron L. Dorgan, D-N. Dak., who sponsored the legislation in the last Congress. The 1984 Western Fuels annual report underscores Western Fuels' preoccupation with the cost of moving coal. It costs more to move coal than to mine it when a power plant is not located near the mine mouth, its studies show. "The price for hauling Powder River Bain coal (from Wyoming) Wyom-ing) to Texas under 1984 conditions represents about 75 percent of its delivered cost. Hauling it to Kansas, the price of transportation is well over half. Even on a short-haul within Wyoming, transportation is 40-45 percent per-cent of the delivered cost," the report stated. Holum is a native of South Dakota. In addition to being the founder and general manager of Western Fuels, he served as Assistant Secretary of Interior In-terior from 1961-69, he ran unsuccessfully unsuc-cessfully twice for the Senate from South Dakota in the 1950's, he served in the South Dakota legislature, and he farmed at Groton, S. Dak. He is the founder of the Mid-West Electric Consumers Con-sumers Association headquartered in Evergreen, Colo., and is a founding director of East River Electric Power Cooperative of Madison, S. Dak. to (Ml PUBLIC SALENOTICE TO BROKERS Federal Housing Administration Offers You Outstanding Real Estate Values in SINGLE FAMILY RESIDENCES Tht listing prict is HUD's estimate of fur market value, HUD reserves the rigM, in its toe discretion, to accept less than tht listing price but only the otter which provides tht g'Mtevt net return to HUO will bt accepted atter considering both the bd price and costs to HUO. Effective August 9, 19&4, all otters must t accompanied by addendum to HUO 9551 form to t considwed fVt ew Drofwtur BUYER MUST OBTAIN OWN FINANCING Prospect (v purchasers should contact tht nd r.tatt broMf of tht tftxt M pfOfe1es m told "AS IS" without warranty and mjny require repairs to meet total buildmg cosJet Pcpairs art tht responsibility of tht purchaser. Sales than ctost wth,n 30 cs of tht 6t of u't. AN 1 SALtS COMMISSION TO THE SELLING BROKER TO BE PAID ON TWE FOLLOWING PROPERTIES. All propne art Subject to or hmt mOftt MisurifKt premium Ca't, In rtl sole d'scretioo, HUO will on'y pay flitcount pexnts hh HUO oVIermirxn to be ftt softabl within manmum limits tstablivhwJ ty HUO. Ouytr to Oelermir HUO'I mjumum a'to-at't d'XOunt pcxntt, if any, pi of to negotiating ttn ieftOfi oo merest ra'ct ird fliKeunf potnti to be charged on tht toan, An other discount fxwnls twyond tho- MUO .il py art tht re--co"S'bity of tht buyer, "Earoe-, mortry wll N hoi J jftd Cw.ted by Se"e opofl :Urx of t- Standard Pei4 Sj'pI Contract" FIRST COME FIRST SERVED FHA Insured Mortgages to Quallflod Buyers No Warranty Ct Ho. mi lumtoi MI-I31H7 20I in i sun,-1 tlr FHA PROPERTIES AVAILABLE BY SEALED BIDS FHA INSURED MORTGAGES TO QUALIFIED BUYERS - NO WARRANTY il I ? TJ iU ? tM r.-r U . V- C9 m 5.11 i:i nrjt ,r,i t vin s, s , a 3 m i sn i a ?3?:i ?5 ti :r, 1 &v v"m 3 lo ) n t its?; in t?;3 im s.v v? i 3 Scaled bids on the above properties reduced in price accepted to Jan. 30 to be opened 9 a.m. Jan. 31, 1985 sn n3 sn in ?t i?-?t ?3 Seated bds cri the Feb, 6 (J f't- t - fr-m r&f m W S'", 51 Cr t" Ni? 524 Wednesday, Jonuory 30, 1985 VefTial ExpfeSS 9 Sen. Garn introduces abortion stop amendment Senator Jake Garn R-Utah, on the twelfth anniversary of the Supreme Court decision which allowed abortion, reintroduced in a Constitutional amendment to prohibit the practice except when the life of the mother is threatened. "It is the responsibility of this Congress, Con-gress, the 99th Congress, to address the question of protection for unborn children." Garn's so-called "Human Life Amendment" has been introduced in the past four Congresses. It stipulates that, "No unborn person shall be deprived of life by any person," but would not prohibit medical procedures to prevent the death of the mother. The resolution had 20 co-sponsors at the time of introduction with more expected. Garn said, "I have always understood that it was the function of the Constitution to protect what Thomas Jefferson called our 'inalienable' 'in-alienable' rights, first and foremost of which is life. I don't see how you can construe that to sanction the destruction destruc-tion of human life a destruction which is taking place in our society at the rate of 1.5 million lives or more per year." The Utah Republican said, "In my readings of the Constitution, I have never found an all-encompassing right to abortion, nor any reference to what may or may not be done during each trimester of pregnancy." Garn said he is disturbed by the "outrageous" claims made by many :iort mo So. Dvtvt ;8!7 t J VTO ' Vrfist 114 t-i 3iO Veft9 7H ia vm tltli'4 imito.'W VeM vidMt Vel t V. o if 4 fi cS. Vfi9 Ui a) - .-s i a, , -,i y--- aiove prcft'n teduced to b cancel 9 $ m. Feb. O - 5242 524-5232 abortion proponents which would lead people to believe that the enactment of any human life amendment "will result in women being put in jail for having miscarriages. We even hear such extreme references as 'coerc-maternity.' "The crucial fact too often overlooked overlook-ed in this debate is that once a woman becomes pregnant, she already has a baby. The human life was established at the moment of conception. The question then to be addressed is what kind of protection are we going to give this other, separate, living human being?" be-ing?" Garn said. "Medical and biological science teaches unequivocally that life begins at conception, not at birth. Abortion is an issue that will not go away, and one reason it won't is the continuing insight in-sight into fetal life that medical research is providing. Unfortunately, our moral sensibilities are not keeping pace with our scientific knowledge. In fact, our moral sense seems to react conversely to our scientific knowledge. The more we know about the pre-born human, the less care we take to protect pro-tect him or her. "Many people insist that the right to choose is paramount, even over a right to life," Garn said. "Aside from the obvious ob-vious fact that the right to choose is meaningless until the right to life has been guaranteed, there must be some sort of limit on the type of behavior that can be justified by some all-encompassing all-encompassing right to choose." Sdffnfc, 2 2 4 Prkt 13 .-? 16. fe iyt3 15 cv1 US OM J a i 1 3 3 I its o H it ifi price accpptcd to 7, 1955 524-5230 |