steam coal tons 6,203,000 7,102,000 7,179,000 rail-mounted stacking uniis zi utah s navajo mine deposit layers of crushed coal in 30,000-ton blending piles stock piled coal stands ready for delivery over a network of conveyors to the four corners power plant to insure uniform quality of steam coal shipments before stacking samples are tested through an eschka fusion process which analyzes the sulfur content of the coal steam coal derives its name from its pri mary historical use — it is burned in the process of converting wat9r to steam which in turn provides the energy to drive electric generators and other machinery supplementing this tradi tional use technology exists to convert the energy content of coal to a product similar to natural gas utah's navajo mine located on the navajo indian reservation in new mexico is one of the largest coal mines in terms of production in the united states the mine in its present configuration has a capacity to produce approximately eight million short tons of steam coal annually it furnishes the entire fuel requirements of the four corners power plant which is owned by a group of six utility companies utah delivers coal to the utilities under two long-term fuel supply agreements mechanical problems experienced by the power plant reduced the facility's fue requirements in 1975 and shipments from navajo totaled 6.2 million short tons compared to 7.1 million in 1974 of utah's 1.1 billion tons of coal re serves at navajo recoverable by strip mining methods less than one-third is committed to the four corners power plant the balance of the reserves has been conditionally committed to two utility companies to supply coal for sub stitute natural gas plants which will convert the coal into pipeline quality gas it is expected that the first plant will require annual coal purchases of approx imately 9.6 million tons development of the project has been held up because of difficulties involved in obtaining vari ous approvals commencement of the project still depends upon the negotia tion of a plant site lease with the navajo nation favorable rulings from various governmental agencies and financing arrangements including loan guarantees by the government plans now call for deliveries in 1980 assuming necessary requirements are met during 1976 eight miles north of the navajo mine utah operates the san juan mine as a contractor for western coa company deliveries in 1975 to the san juan power plant from this operation were 1.2 million tons as compared to 867,000 tons in 1974 discussions are presently being held with the coal lease owner concern ing a revision of the contract to provide for increased production from the san juan coal lease and from utah's navajo coal lease for this facility work continues on the development of the craig mine in colorado with ship ments of coal to a new generating plant scheduled to begin in late 1977 un fortunately in the current year it became necessary for utah to initiate a lawsuit against the owners of this power plant in an attempt to clarify the terms of the coal supply contract entered into in 1973 utah maintains that the construction of generating units largerthan those called for by the contract would require deliv eries in excess of the mine's planned capacity it seeks to limit the contractual amounts or alternatively to rescind the contract additional drilling and further evalua tions were conducted by utah during 1975 at the kanab utah reserves dis cussions continue with a utility for delivery of the coal to two seperate gen erating stations but no final agreement has yet been reached