steam coal the largest single deposit of steam coal now controlled by utah is located in northwestern new mexico it is held under leasehold from the navajo indian tribe and comprises reserves estimated at approximately 1.1 billion tons mineable by low cost strip mining methods under a contract extending for 35 years our navajo mine is currently delivering coal at the rate of 2.5 million tons per year to fuel electric generating plants adjacent to the mine and owned and operated by ari zona public service company two more generating units owned jointly by southern california edison company arizona public service com pany and four other utilities are now being constructed under the terms of a second 35 year contract utah will also supply the coal required to fuel these additional units by mid 1970 coal deliveries from the navajo mine under the requirements of both contracts are expected to rise to a yearly rate of 8.5 million tons this rate of production will be the highest of any coal mine operating in the united states by contract with the united states department of the interior utah has acquired the right to purchase 44,000 acre feet of water annually from the navajo reservoir beginning in 1972 with the availability of this water we will be able to provide a combination of both coal and water estimated to be required to supply up to an additional 2,400,000 kilowatts of gen erating capacity over and above that already committed a generating in stallation of this capacity if fueled by utah under the same type of long term contract as our present fuel agreements would require deliveries of an additional 9.7 million tons of coal per year in such event the total con sumption of navajo coal by all generating units including those installed would approximate 18 million tons annually no contracts have yet been entered into for the sale of such additional tonnage however we are actively pursuing this potential mar ket even then the navajo reserves would not be fully committed an estimated 300 million tons would remain to be marketed in the western u s to utilities or others new mexico of navajo stearr programmed to equipment this 65 cubic yards