POSTCARD -14- began operations this year and has lived up to our every expectation. It has reserves in excess of 500, 000, 000 tons, of which less than half is committed to Arizona Public Service under long-term contract. The uncommitted reserves are available for other uses and we have put before other utility companies a well engineered plan to utilize these reserves as a basis for a 1200 mega-watt plant at the mine with the power delivered by ultra-high voltage lines. The cost of the power thus produced would appear to be competitive with the alternative sources of energy that these companies have been studying. Our program with Arizona Public Service is proceeding well and is ahead of schedule. Their first two units of 175 megawatts each are already delivering power to the Phoenix area and construction has begun on the third unit of 225 megawatts planned for commercial operation next June, thus bringing the total to 575 megawatts out of the total of 800 megawatts contemplated by our contract. The Navajo Mine leasehold is approximately 23 miles long by a mile wide. It is an open-pit mine with stripping performed by a 40-yard dragline, the largest presently in existence. The mining rate is presently 1. 6 million tons yearly and will increase to 2. 6 million tons when generating plant capacity reaches 575 megawatts, which will make it the eighth largest coal mine in the Nation. Potential production under the APS contract could reach 3, 600, 000 tons annually and, if we are able to consummate our plans to provide energy to other utilities, could ultimately reach as much as 9 000, 000 tons annually. The significance of this operation to our company lies both in the