5- because of the small production allocation granted by the A.E,C, and the difficult and expensive underground mining conditions encountered. Additional mining income is derived from our 25% interest in the Pima Mining Company, which operates a 3,000 ton mill and open pit copper mine near Tucson, Arizona. As a contractor we were retained to prepare the original feasibility report, construct the mill, and perform the preliminary stripping. Our investment in Pima cost us $858,000, From January 1957 through June 30th this year our share of the earnings of Pima amount to $1,075,000 and we will receive our first dividend of $148,000 in September this year. Pima's 3-1/2% term bank loan is being retired out of non-cash charges. We cut our teeth in coal mining with a metallurgical coal mine near Ozark, Arkansas which terminated its 11-year life in May this year when open pit reserves were exhausted. While annual profits were modest, the experience gave us confidence in our conviction that large open pit coal mines would enjoy an increasing competitive advantage over other fossil fuels as a source of energy for the generation of electricity. We acquired two such deposits, and the first of these is now ready for development and involves vast reserves of sub-bituminous coal which we control under a lease from the Navajo Tribe in the Four Corners Area of New Mexico, A fuel agreement is ready for signature between Arizona Public Service Company and ourselves. This agreement provides that Utah sets aside from its reserves 2,l85 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