5- between Arizona Public Service Company and ourselves. This agreement provides that Utah sets aside from its reserves 2,185 trillion BTU's (about 115,000,000 tons of coal), 950 trillion BTU's to cover two generating units having a total of 350,000 KW capacity which the utility company will bring into commercial operation in 1963 and 1,235 trillion BTU's under option until 1973 to provide fuel up to an additional 450,000 KW generating capacity. The term of the agreement runs approximately 35 years from the time when the first two units go into operation but may be extended up to 55 years if the utility company exercises all its options. Initial coal requirements would be about one million and a half tons annually, could reach 3.6 million tons if the options are exercised. We view this contract as an important step forward for several reasons. First, it is the largest single contract ever signed by our company in terms of gross revenues involved. Second, the contract provides for the sale of energy units, not tons of coal, and we hold the hope that we may find additional profitable uses for this large reserve of hydrocarbons in the field of coal chemicals. Third, it gives us a long-term stream of earnings derived from the relatively stable utility industry serving the rapidly expanding Phoenix area. Next to mining, our largest source of profits comes from our 4l-l/4% ownership of Compania San Juan, S. A., a Panamanian corporation, with ownership common to Marcona. This company is responsible for the sale and transportation of iron ore purchased from Marcona f.o.b. Peru and sold on a delivered basis to steel mills in the United States, Europe, and Japan. The bulk of the transportation is now provided by vessels chartered from Cia. San Juan's wholly-owned