It is significant to note that our reserves of subbituminous coal at Navajo are 1. 1 billion tons, of which only some 326 million tons or less than 30% has been committed to service the existing contracts. We believe that the earnings from these contracts have a quality all their own, for they are protected by escalation clauses for the 35-year period and tied to the utility business in a growing area. COKING COAL Our efforts to find coking coal antedated both our search for uranium and steam coal, for we knew that coking coal would be required to support an integrated steel industry on the Pacific Coast. Coking Coal is very hard to find and you can tick off on the lingers of one hand the significant discoveries in the last 50 years despite an intensive government supported effort in World War II. We searched in the Western United States, British Columbia, Alaska, and even South America, all to no avail. Recognizing that the changes in ocean transportation made it feasible to look farther afield, we turned to Australia and here our efforts were rewarded. In the Southern part of Queensland near Blackwater we began shipments this year from a proven reserve of 37.7 million short tons of strippable medium volatile coal plus additional underground reserves. These shipments are being made against a contract with Japanese interests negotiated in 1964 calling for deliveries of 21. 7 million tons over a 10-year period, commencing at the rate of 1 million tons the first year, 1 1/2 million tons the second year, and 2.4 million tons annually thereafter. Initial deliveries began in January this year. -12-