EXHIBIT 10.17


 


CERTAIN INFORMATION INDICATED BY
[***] HAS BEEN DELETED FROM THIS EXHIBIT AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT UNDER RULE 24b-2.  


 


COAL TRANSLOADING AGREEMENT


 


THIS COAL TRANSLOADING AGREEMENT
(this “Agreement”) is entered into and made effective as of the 1st
day of June, 2007 (the “Effective Date”), by and between SOUTHERN
MINNESOTA BEET SUGAR COOPERATIVE, a Minnesota cooperative
association (“SMBSC”), and HERON LAKE BIOENERGY, LLC
a Minnesota limited liability company (“HLBE”)(SMBSC and HLBE are also referred
to herein individually as a “Party” and collectively as the “Parties”).


 


RECITALS


 


A.                                   SMBSC
has an existing sugar beet processing plant located in Renville County,
Minnesota which currently utilizes coal as the primary source of energy for the
operation of the plant (the “SMBSC Plant”).


 


B.                                     HLBE
is currently constructing a 50 million gallon per year ethanol product plant in
Jackson County, Minnesota which will utilize approximately 100,000 tons per
year of coal as the primary source of energy for the operation of the Plant
(the “HLBE Plant”).


 


C.                                     The
Parties both intend to purchase their coal from a mine operated by Rio Tinto
Energy America (“RTEA”) in the State of Montana (the “Mine”), pursuant to
separate coal purchase agreements which will be the separate contract and
liability of each Party.


 


D.                                    The
Parties both intend to separately contract for and pay the cost of transporting
their coal from the Mine to Renville County, Minnesota pursuant to separate
coal transportation agreements which will be the separate contract and
liability of each Party.


 


E.                                      The
Parties believe that certain cost savings can be realized by delivering their
separately purchased and transported coal to a single transloading facility in
Renville County, Minnesota to be owned and operated by SMBSC (the “Facility”)
until the coal can be further transferred to the SMBSC Plant and the HLBE
Plant.


 


AGREEMENT


 


NOW THEREFORE, for and in
consideration of the premises, the mutual covenants and promises set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are acknowledged by the Parties, and in reliance upon the
recitals, representations, warranties, covenants, terms and conditions set
forth herein, the Parties agree as follows:


 

















 


ARTICLE 1. — TERM


 


1.1                                 Term. The term of this Agreement
(the “Term”) shall commence on the Effective Date and end on May 31, 2012
(the “Expiration Date”).


 


1.2                                 Commencement of Deliveries. Deliveries of coal to the
Facility by HLBE shall commence not earlier than June 15, 2007.


 


ARTICLE 2. - COAL QUANTITY; SOURCE


 


2.1                                 Source of Coal. During the Term of this
Agreement, the Parties shall both source their coal from the Mine operated by
RTEA. Because the coal will be intermingled, the quality of the coal shall meet
the specifications set forth in Exhibit A and the source of the coal may
only be changed by the mutual written agreement of the Parties.


 


2.2                                 Ratable Delivery and Use. HLBE agrees that the quantity
of coal that it will require to be delivered to the Facility is not expected to
exceed 12,500 tons per month, unless otherwise mutually agreed to by SMBSC and
HLBE in order to optimize the use of the dedicated train set and railroad
delivery schedules. HLBE further agrees that its re- loading and removal of
coal from the Facility will be reasonably consistent with HLBE’s average
monthly consumption of coal at the HLBE Plant and that HLBE will not stockpile
coal in quantities that exceed the reasonable storage capacity of the Facility,
as determined by SMBSC, which is expected to be sufficient to accommodate
HLBE’s requirements.


 


ARTICLE 3. - SMBSC OBLIGATIONS


 


3.1                                 General Duties. During the Term of this
Agreement, SMBSC will:


 


3.1.1                        Provide sufficient personnel and
equipment to properly man and operate the Facility in accordance herewith;


 


3.1.2                        Unload railcars and store the
coal in accordance with sound and customary practice in the industry;


 


3.1.3                        Operate the Facility so that
each unit train is unloaded during the allowable free time, unless exempted by
Force Majeure;


 


3.1.4                        Operate the Facility so that
HLBE may pick up its coal at the Facility within reasonable business hours
established by SMBSC;


 


3.1.5                        SMBSC shall exclusively
coordinate, schedule, and direct movement of all railcars to the Facility; and


 


3.1.6                        Maintain insurance on the
Facility and on coal owned by SMBSC.


 


3.2                                 Limits of Liability. Notwithstanding any other
provisions hereof, SMBSC shall not be liable or deemed in default hereunder
with respect to any of the following matters:


 


2

















 


3.2.1                        Any operating or other problems,
delays, costs or expenses incurred by HLBE due to Force Majeure;


 


3.2.2                        Any deliveries of coal by HLBE
to the Facility that are not in compliance with Section 3.1.5;


 


3.2.3                        Any loss, cost, expense or
damage arising out of or attributable to operational requests or directives of
HLBE or of any railroad serving the Facility other than as contemplated hereby;


 


3.2.4                        Any loss, cost, expense or
damage to any property of HLBE except (i) to the extent such loss, cost,
expense or damage is covered by insurance obtained by SMBSC, and (ii) those
matters as to which SMBSC has indemnified HLBE pursuant to Section 9.3
hereof;


 


3.2.5                        Any incidental, punitive,
exemplary, business interruption, special or consequential damages, including
lost profits, of any nature whatsoever, whether in tort or in contract,
incurred by HLBE or any other person or entity;


 


3.2.6                        Inventory losses due to acts of
God;


 


3.2.7                        Any damage to any railcar owned
or leased by HLBE while at the Facility unless such damage is the result of the
gross negligence of SMBSC or its employees; and


 


3.2.8                        Demurrage, delay charges, or any
consequential costs associated with transportation delays.


 


ARTICLE 4. — HLBE OBLIGATIONS


 


4.1                                 General Duties. During the Term of this
Agreement, HLBE will cooperate with SMBSC in the performance of its duties
under this Agreement, and in any event shall:


 


4.1.1                        On a monthly basis, provide
SMBSC with a rolling estimate of HLBE’s anticipated use of coal for the ensuing
90 days;


 


4.1.2                        Make the payments in the manner
required by Article 6.2 hereof;


 


4.1.3                        Re-load and remove coal from the
Facility as provided for in Section 2.2;


 


4.1.4                        Not store any vehicles, trucks,
or equipment at the Facility that pose a safety hazard or which interfere with
the reasonable operation of the Facility;


 


4.1.5                        Maintain insurance on any coal
owned by HLBE that is stored at the Facility; and


 


4.1.6                        Provide certified weights of
each train of coal delivered to the Facility.


 


3

















 


ARTICLE 5. - QUANTITIES AND SHRINK


 


5.1                                 Quantities. The volume of product sold to
HLBE by RTEA shall be determined by an official copy of the bill of lading
and/or the mine manifest (“Shipping Documents”) for each unit train or partial
unit train shipped by RTEA for the account of HLBE. HLBE agrees to instruct
RTEA to supply SMBSC with a copy of all Shipping Documents necessary to verify
the quantity of coal shipped to the Facility on behalf of HLBE, subject to the
redaction of pricing information as deemed necessary by HLBE.


 


5.2                                 Shrink. In order to account for
shrinkage, the amount of coal that HLBE shall be entitled to remove from the
Facility shall be reduced by a quantity equal to one percent (1%) of the total
quantity of HLBE’s coal listed on the Shipping Documents for each unit train.


 


ARTICLE 6. — PAYMENT; FEES


 


6.1                                 Fees. HLBE shall pay SMBSC a
handling fee of [***] for each net ton (2,000 pounds) of coal that is re-loaded
by HLBE at the Facility. For the purpose of calculating the handling fee, all
weights shall be as determined by the scale at the Facility.


 


6.2                                 Invoices; Payments. Not later than the 10th
Day of each Month commencing in July 2007, SMBSC shall deliver to HLBE an
invoice for coal picked up by HLBE the previous month. HLBE shall remit payment
to SMBSC not later than 10 calendar days after the date of each Invoice.
Payment of any invoice without providing a written notice of dispute as
provided for in this Section shall be deemed final payment and a waiver of
any dispute regarding the services provided pursuant to the invoice. In the
event of a dispute regarding any amounts shown on any Invoice that the Parties
have been unable to resolve by the date payment is due, the Party challenging
any such amounts shall pay all undisputed amounts when due. Such payment of all
undisputed amounts shall be accompanied by a statement setting forth in
reasonable detail all amounts disputed, the reason for the dispute, and a
request for any additional documentation believed to be necessary to support
the disputed amounts or to resolve the dispute. If the Parties are thereafter
unable to resolve the dispute either through the exchange of additional
documentation or good faith business negotiations prior to the due date for
payment of the next Invoice, either Party may submit the matter to arbitration
in accordance with Section 10.1


 


6.3                                 Interest on Late Payments. Late payments shall bear
interest from the date past due until paid at the rate of 18% per annum.


 


ARTICLE 7. -DEFAULT; REMEDIES


 


7.1                                 Event of Default. An “Event of Default” shall
mean any of the actions set forth below in this Section:


 


7.1.1                        The failure by SMBSC to perform
any covenant set forth in this Agreement (other than the events that are
otherwise specifically covered in this Section as a separate Event of
Default), and such failure is not excused by SMBSC’s failure to perform its
obligations under this Agreement or by Force Majeure or cured within 30 Days
after written notice thereof from HLBE;


 


4

















 


7.1.2                        Any material adverse change in
the ability of HLBE to perform its obligations under this Agreement;


 


7.1.3                        Failure of the HLBE Plant to transload
[***] tons of coal per year through the facility (each year will begin on June
1st), or


 


7.1.4                        HBLE shall fail to pay any
undisputed invoice within 15 Days after notice of such failure by SMBSC.


 


7.2                                 SMBSC’s Right of Offset Upon an
Event of Default; Liquidated Damages. If, during the Term, HLBE fails to make any undisputed
payment within 15 calendar days of written notice of such failure by SMBSC, or
any disputed payment within 3 business days of any final determination under Section 10.1
hereof: (i) SMBSC shall have the right to offset the value of HLBE’s
unsatisfied obligation against SMBSC’s then remaining obligation to deliver
coal under this Agreement by an amount of tonnage having an equivalent value to
HLBE’s unsatisfied obligation calculated at the rate of $45 per ton of coal;
and (ii) if the amount of HLBE’s unsatisfied obligation cannot be fully
offset in the manner provided in the immediately preceding clause or HLBE
cannot provide reasonable assurances that it can pay for invoices when due,
SMBSC shall have the additional right to terminate this Agreement for cause by
providing written notice to HLBE of such termination (“Early Termination”). In
the event that SMBSC invokes Early Termination, HLBE shall pay to SMBSC, as
liquidated damages and not as a penalty, the sum of $10,000 per month for each
remaining month of the Term. The total amount of such liquidated damages shall
be paid by HLBE to SMBSC within five Business Days of Notice of such amount by
SMBSC.


 


ARTICLE 8. — FORCE MAJEURE


 


8.1                                 Force Majeure. “Force Majeure” shall mean an
event not anticipated as of the Effective Date which is not within the
reasonable control of the Party claiming suspension (the “Claiming Party”), and
which by the exercise of due diligence the Claiming Party is unable to overcome
or to obtain, or cause to be obtained, a commercially reasonable substitute
therefor, and may include, but is not restricted to acts of God; act of public
enemy; war; lightning; fire; violent storm; explosion; civil disturbance;
public riot; labor dispute; environmental catastrophe; inability to obtain
government permits or utility services or similar events or occurrences; labor
or material shortage; sabotage; and action or restraint by public or
governmental authority, and other events which wholly or partially prevent the
mining or transportation of coal purchased by either Party, or the receiving,
unloading, storing, or loading coal purchased by either Party. Force Majeure
shall not include economic hardship or any curtailment in operations of the
SMBSC Plant or the HLBE Plant so as to reduce or eliminate the need for coal.


 


8.2                                 Notice. Any Party affected by Force
Majeure shall give prompt written Notice to the other Party of such condition.
If either Party is prevented, in whole or in part, from performing any of its
obligations due to Force Majeure, such obligations (other than the obligation
to make monetary payments as required under this Agreement) shall be suspended
during the pendency of such Force Majeure. The Claiming Party shall initiate
and continue economically reasonable good faith efforts to remedy any Force
Majeure (except that labor issue resolutions shall be totally within the
discretion of the Claiming Party).


 


5

















 


ARTICLE 9. - RISK OF LOSS; INDEMNITY


 


9.1                                 TITLE. TITLE TO THE COAL PURCHASED BY
EACH PARTY AND RISK OF LOSS THEREOF SHALL REMAIN WITH EACH PARTY AT ALL TIMES,
WHETHER OR NOT THE COAL IS LOCATED AT THE FACILTY. EACH PARTY AGREES TO SEPARATELY
INSURE THE RISK OF LOSS TO ITS COAL. HLBE EXPRESSLY ACKNOWLEDGES AND AGREES
THAT SMSBC SHALL ONLY BE LIABLE FOR ANY LOSS TO HLBE’S COAL THAT RESULTS FROM
SMBSC’S GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT.


 


9.2                                 HLBE’s Indemnification of SMBSC. SMBSC shall not be liable for
and HLBE shall indemnify and hold harmless SMBSC, and its directors, officers,
employees, subcontractors, and agents, from and against any and all claims,
damages, fines, penalties or causes of action and defense thereof arising from or
related to the performance of this Agreement, caused or arising from the act or
omission, whether or not due to fault, of HLBE or resulting from any breach of
this Agreement by HLBE, including as a result of:


 


9.2.1                        Any injury, damages, or loss of
life to any employee or agent of HLBE present at the Facility, including but
not limited to any injury, damages, or loss of life that arise out of the
loading of coal by HLBE at the Facility, unless such injury, damages, or loss
of life is the result of the gross negligence or intentional misconduct of
SMBSC or one of its employees.


 


9.2.2                        All disputes with HLBE’s rail
carrier that do not arise out of the negligence or intentional misconduct of
SMBSC or its employees;


 


9.2.3                        Any delay in the delivery of
HLBE’s coal to the Facility; or


 


9.2.4                        The failure of HLBE’s coal to
meet the Specifications attached hereto as Exhibit A.


 


9.3                                 SMBSC’s Indemnification of HLBE. SMBSC shall indemnify and hold
harmless HLBE and its respective directors, officers, employees, subcontractors,
and agents, from and against any and all Claims, damages, fines, penalties or
causes of action and defense thereof arising from or related to any breach of
this Agreement by SMBSC.


 


ARTICLE 10. — DISPUTE RESOLUTION; ARBITRATION; GOVNERNING LAW


 


10.1                           Arbitration. ANY DISPUTE ARISING OUT OF
THIS AGREEMENT SHALL BE SUBMITTED TO BINDING ARBITRATION PURSUANT TO THE
COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION (THE “AAA”)
WITH THE ARBITRATION HEARING TO BE HELD IN MINNEAPOLIS, MINNESOTA.


 


10.2                           Governing Law. This Agreement and the rights
and duties of the parties hereunder shall be governed by and construed,
enforced and performed in accordance with the laws of the state of Minnesota,
without giving effect to principles of conflicts of laws.


 


6

















 


ARTICLE 11. — NOTICES


 


11.1                           All notices, requests, Invoices
or statements required under this Agreement to be in writing (each a “Notice”)
shall be delivered by letter, facsimile or other documentary form. Notice by
facsimile or hand delivery shall be deemed to have been received by the close
of the Business Day on which it was transmitted or hand delivered (unless
transmitted or hand delivered after close in which case it shall be deemed received
at the close of the next Business Day). Notice by overnight mail or courier
shall be deemed to have been received two Business Days after it was sent. A
Party may change its address by providing Notice of same in accordance with
this Article 10. The initial addresses for the Parties to which Notice may
be given are:


 


	
  11.2

  	
  HLBE:

  	
   

  	
  Attn: Board
  President

  
	
   

  	
   

  	
   

  	
  Heron Lake
  BioEnergy, LLC 

  
	
   

  	
   

  	
   

  	
  91246 390th
  Avenue 

  
	
   

  	
   

  	
   

  	
  Heron Lake, MN
  56137-0198

  
	
   

  	
   

  	
   

  	
   

  
	
  11.3

  	
  SMBSC:

  	
   

  	
  Attn: Director of
  Transportation 

  
	
   

  	
   

  	
   

  	
  Southern Minnesota
  Beet Sugar Cooperative 

  
	
   

  	
   

  	
   

  	
  83550 County Road
  21

  
	
   

  	
   

  	
   

  	
  Renville, MN
  56284-0500

  



 


ARTICLE 12. — MISCELLANEOUS


 


12.1                           Entire Agreement. This Agreement, including the
Exhibits hereto, constitutes the entire agreement between the Parties. There
are no prior or contemporaneous agreements or representations affecting the
same subject matter other than those expressly stated in this Agreement. Except
for any matters which, in accordance with the express provisions of this
Agreement, may be resolved by verbal agreement between the Parties, no
amendment, modification or change herein shall be enforceable unless reduced to
writing and executed by both Parties.


 


12.2                           Assignment. Neither party shall sell,
assign or grant a security interest in any of its rights or obligations under
this Agreement without the prior written consent of the other Party, which may
be withheld or granted at the sole discretion of the Party whose consent is
required, provided however, that such consent will not be unreasonably withheld.


 


12.3                           Severability. Except as otherwise stated
herein, any provision or article declared or rendered unlawful by any
applicable court of law or regulatory agency, or deemed unlawful because of a
statutory change, will not otherwise affect the lawful obligations that arise
under this Agreement.


 


12.4                           Captions and Exhibits. The headings used for the
sections and articles herein are for convenience and reference purposes only
and shall in no way affect the meaning or interpretation of the provisions of
this Agreement. Any and all Exhibits referred to in this Agreement are, by such
reference, incorporated herein.


 


7

















 


12.5                           Confidentiality. Each Party agrees that the
terms of this Agreement, are intended to be confidential and are not to be
discussed with or disclosed to any third party, except: (i) with the
express prior written consent of the other Party hereto; (ii) as may be
required or appropriate in response to any summons, subpoena, or discovery
order or to comply with any applicable law, order, regulation, or ruling; or (iii) to
the Parties’ affiliates and the directors, employees, advisors, lenders, and
representatives of the Parties and their affiliates solely for the purpose of
evaluating, negotiating, and consummating the transactions contemplated by the
Parties under this Agreement and who agree to maintain the confidentiality
hereof.


 


12.6                           Counterparts. This Agreement may be executed
in separate counterparts, each of which shall constitute one Agreement binding
on the Parties, notwithstanding that both Parties are not signatory to the same
counterpart. This Agreement shall be deemed executed when each Party has
received a copy of the signature page, including any electronically transmitted
facsimile, bearing the signature of the other Party.


 


12.7                           Interpretation. The provisions of this
Agreement have been mutually negotiated by the Parties and should not be
interpreted for or against any Party by reason of the fact that such Party may
have drafted any provision in this Agreement.


 


IN WITNESS WHEREOF, the Parties
have entered into this Agreement as of the Effective Date first set forth
above.


 


	
   

  	
  SOUTHERN MINNESOTA BEET
  SUGAR

  COOPERATIVE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ J. L Plathe

  
	
   

  	
  Title:

  	
   CFO

  
	
   

  	
  Date:

  	
   May 11, 2007

  
	
   

  	
   

  	
   

  
	
   

  	
  HERON LAKE BIOENERGY,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Robert
  Ferguson

  
	
   

  	
  Title:

  	
   President HLBE

  
	
   

  	
  Date:

  	
   6/1/07

  



 


8

















 


Exhibit A


 


SPRING CREEK COAL MINE


2006 QUALITY SPECIFICATIONS


 


	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TYPICAL

  	
   

  
	
   

  	
   

  	
  TYPICAL

  	
   

  	
  STANDARD

  	
   

  	
  TYPICAL
  95% RANGE

  	
   

  	
  TYPICAL

  	
   

  	
  MOISTURE-ASH
  FREE

  	
   

  
	
  QUALITY PARAMETER

  	
   

  	
  (MEAN VALUE)

  	
   

  	
  DEVIATION

  	
   

  	
  -2 STD DEV

  	
   

  	
  +2 STD DEV

  	
   

  	
  DRY VALUE

  	
   

  	
  VALUE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROXIMATE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % Moisture

  	
   

  	
  25.40

  	
   

  	
  0.56

  	
   

  	
  24.28

  	
   

  	
  26.52

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % Ash

  	
   

  	
  4.12

  	
   

  	
  0.33

  	
   

  	
  3.46

  	
   

  	
  4.78

  	
   

  	
  5.52

  	
   

  	
   

  	
   

  
	
  % Volatile

  	
   

  	
  31.26

  	
   

  	
  0.81

  	
   

  	
  29.64

  	
   

  	
  32.88

  	
   

  	
  41.90

  	
   

  	
  44.35

  	
   

  
	
  % Fixed Corbon

  	
   

  	
  39.23

  	
   

  	
  0.80

  	
   

  	
  37.63

  	
   

  	
  40.83

  	
   

  	
  52.59

  	
   

  	
  55.66

  	
   

  
	
  BTU/lb

  	
   

  	
  9338

  	
   

  	
  103

  	
   

  	
  9132

  	
   

  	
  9544

  	
   

  	
  12517

  	
   

  	
  13249

  	
   

  
	
  MAFBTU

  	
   

  	
  13249

  	
   

  	
  80.08

  	
   

  	
  13089

  	
   

  	
  13409

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dry BTU

  	
   

  	
  12517

  	
   

  	
  93.71

  	
   

  	
  12330

  	
   

  	
  12705

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % Sulfur

  	
   

  	
  0.34

  	
   

  	
  0.07

  	
   

  	
  0.20

  	
   

  	
  0.48

  	
   

  	
  0.46

  	
   

  	
  0.48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ULTIMATE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % Moisture

  	
   

  	
  25.40

  	
   

  	
  0.56

  	
   

  	
  24.28

  	
   

  	
  26.52

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  %. Carbon

  	
   

  	
  54.14

  	
   

  	
  3.28

  	
   

  	
  47.58

  	
   

  	
  60.70

  	
   

  	
  72.57

  	
   

  	
  70.82

  	
   

  
	
  % Hydrogen

  	
   

  	
  3.80

  	
   

  	
  0.23

  	
   

  	
  3.34

  	
   

  	
  4.26

  	
   

  	
  5.09

  	
   

  	
  5.39

  	
   

  
	
  % Nitrogen

  	
   

  	
  0.71

  	
   

  	
  0.09

  	
   

  	
  0.53

  	
   

  	
  0.89

  	
   

  	
  0.95

  	
   

  	
  1.01

  	
   

  
	
  % Chlorine

  	
   

  	
  0.00

  	
   

  	
  0.01

  	
   

  	
  0.00

  	
   

  	
  0.01

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  % Sulfur

  	
   

  	
  0.34

  	
   

  	
  0.07

  	
   

  	
  0.20

  	
   

  	
  0.48

  	
   

  	
  0.46

  	
   

  	
  0.48

  	
   

  
	
  % Ash

  	
   

  	
  4.12

  	
   

  	
  0.33

  	
   

  	
  3.46

  	
   

  	
  4.78

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % Oxygen

  	
   

  	
  11.50

  	
   

  	
  0.70

  	
   

  	
  10.10

  	
   

  	
  12.90

  	
   

  	
  15.42

  	
   

  	
  16.32

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULFUR FORMS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pyritic Sulfur  (%)

  	
   

  	
  0.05

  	
   

  	
  0.03

  	
   

  	
  0.00

  	
   

  	
  0.11

  	
   

  	
  0.07

  	
   

  	
  0.07

  	
   

  
	
  Sulfale  Sulfur (%)

  	
   

  	
  0.01

  	
   

  	
  0.015

  	
   

  	
  0.00

  	
   

  	
  0 04

  	
   

  	
  0.01

  	
   

  	
  0.01

  	
   

  
	
  Organic Sulfur (%)

  	
   

  	
  0.28

  	
   

  	
  0.06

  	
   

  	
  0.16

  	
   

  	
  0.40

  	
   

  	
  0.38

  	
   

  	
  0.40

  	
   

  
	
  Total Sulfur (%)

  	
   

  	
  0.34

  	
   

  	
  0.07

  	
   

  	
  0.20

  	
   

  	
  0.48

  	
   

  	
  0.46

  	
   

  	
  0.48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MINERAL
  ANALYSIS OF ASH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % Silicon Dioxide
  (Silica, SiO2)

  	
   

  	
  32.52

  	
   

  	
  2.78

  	
   

  	
  26.98

  	
   

  	
  38.08

  	
   

  	
  43.59

  	
   

  	
  46.14

  	
   

  
	
  % Aluminium Oxide
  (Alumina, Al2O3)

  	
   

  	
  17.69

  	
   

  	
  1.09

  	
   

  	
  15.51

  	
   

  	
  19.87

  	
   

  	
  23.71

  	
   

  	
  25.10

  	
   

  
	
  % Titanium Dioxide
  (Titania, TiO2)

  	
   

  	
  1.13

  	
   

  	
  0.10

  	
   

  	
  0.93

  	
   

  	
  1.33

  	
   

  	
  1.51

  	
   

  	
  1.60

  	
   

  
	
  % Iron oxide
  (Ferric Oxide. Fe2O3)

  	
   

  	
  4.76

  	
   

  	
  0.47

  	
   

  	
  3.82

  	
   

  	
  5.70

  	
   

  	
  6.38

  	
   

  	
  6.75

  	
   

  
	
  % Calcium Oxide (Lime,
  CaO)

  	
   

  	
  15.36

  	
   

  	
  1.41

  	
   

  	
  12.54

  	
   

  	
  18.18

  	
   

  	
  20.59

  	
   

  	
  21.79

  	
   

  
	
  % Magnesium Oxide
  (Magnesia, MgO)

  	
   

  	
  3.69

  	
   

  	
  0.85

  	
   

  	
  1.99

  	
   

  	
  5.39

  	
   

  	
  4.95

  	
   

  	
  5.24

  	
   

  
	
  % Potassium Oxide
  (K2O)

  	
   

  	
  0.63

  	
   

  	
  0.14

  	
   

  	
  0.35

  	
   

  	
  0.91

  	
   

  	
  0.84

  	
   

  	
  0.89

  	
   

  
	
  % Sodium Oxide
  (Na2O)

  	
   

  	
  8.24

  	
   

  	
  1.00

  	
   

  	
  6.24

  	
   

  	
  10.24

  	
   

  	
  11.05

  	
   

  	
  11.69

  	
   

  
	
  %  Sulfur Trioxide (SO3)

  	
   

  	
  14.07

  	
   

  	
  2.50

  	
   

  	
  9.07

  	
   

  	
  19.07

  	
   

  	
  18.86

  	
   

  	
  19.96

  	
   

  
	
  % Phosphorous
  Pentoxide (P2O5)

  	
   

  	
  0.35

  	
   

  	
  0.06

  	
   

  	
  0.23

  	
   

  	
  0.47

  	
   

  	
  0.47

  	
   

  	
  0.50

  	
   

  
	
  % Strontium Oxide
  (SrO)

  	
   

  	
  0.37

  	
   

  	
  0.22

  	
   

  	
  0.00

  	
   

  	
  0.81

  	
   

  	
  0.50

  	
   

  	
  0.52

  	
   

  
	
  % Barium Oxide
  (BaO)

  	
   

  	
  1.19

  	
   

  	
  0.31

  	
   

  	
  0.57

  	
   

  	
  1.81

  	
   

  	
  1.60

  	
   

  	
  1.69

  	
   

  
	
  % Undetermined

  	
   

  	
  0.00

  	
   

  	
  1.00

  	
   

  	
  0.00

  	
   

  	
  2.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  Base/Acid Ratio

  	
   

  	
  0.64

  	
   

  	
  0.08

  	
   

  	
  0.48

  	
   

  	
  0.80

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base Value

  	
   

  	
  32.68

  	
   

  	
  2.20

  	
   

  	
  28.28

  	
   

  	
  37.08

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acid Varue

  	
   

  	
  51.34

  	
   

  	
  3.00

  	
   

  	
  45.34

  	
   

  	
  57.34

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASH
  FUSION TEMPERATURES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reducing (°F)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial

  	
   

  	
  2106

  	
   

  	
  37

  	
   

  	
  2031

  	
   

  	
  2181

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Softening (H=W)

  	
   

  	
  2129

  	
   

  	
  36

  	
   

  	
  2056

  	
   

  	
  2202

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hemispherical
  (H=1/2W)

  	
   

  	
  2141

  	
   

  	
  39

  	
   

  	
  2062

  	
   

  	
  2220

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fluid

  	
   

  	
  2164

  	
   

  	
  51

  	
   

  	
  2062

  	
   

  	
  2266

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fluid-Initial
  Temp. Difference

  	
   

  	
  58

  	
   

  	
  40

  	
   

  	
  0

  	
   

  	
  138

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Oxidizing
  (°F)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial

  	
   

  	
  2351

  	
   

  	
  98

  	
   

  	
  2156

  	
   

  	
  2546

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Softening (H=W)

  	
   

  	
  2366

  	
   

  	
  81

  	
   

  	
  2204

  	
   

  	
  2528

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hemispherical
  (H=1/2W)

  	
   

  	
  2391

  	
   

  	
  73

  	
   

  	
  2245

  	
   

  	
  2537

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fluid

  	
   

  	
  2423

  	
   

  	
  77

  	
   

  	
  2268

  	
   

  	
  2578

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fluid-Initial
  Temp. Difference

  	
   

  	
  72

  	
   

  	
  60

  	
   

  	
  0

  	
   

  	
  192

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


9

















 


 


	
   

  	
   

  	
  TYPICAL

  	
   

  	
  STANDARD

  	
   

  	
  TYPICAL 95% RANGE

  	
   

  
	
  QUALITY PARAMETER 

  	
   

  	
  (MEAN VALUE)

  	
   

  	
  DEVIATION

  	
   

  	
  -2 STD DEV

  	
   

  	
  +2 STD DEV

  	
   

  
	
  ADDITIONAL ANALYSES AND CALCULATED

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VALUES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T250 Temperature
  (°F)

  	
   

  	
  2153

  	
   

  	
  91.88

  	
   

  	
  1969

  	
   

  	
  2337

  	
   

  
	
  HGI (at
  as-received moisture)

  	
   

  	
  60.6

  	
   

  	
  5.6

  	
   

  	
  49

  	
   

  	
  72

  	
   

  
	
  HGI % Moisture

  	
   

  	
  24.13

  	
   

  	
  3.88

  	
   

  	
  16

  	
   

  	
  32

  	
   

  
	
  Critical
  Viscosity Temperature (°F)

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  Critical
  Viscosity (Poises)

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
  % Equilibrium
  Moisture

  	
   

  	
  23.93

  	
   

  	
  0.56

  	
   

  	
  22.81

  	
   

  	
  25.05

  	
   

  
	
  Specific Gravity

  	
   

  	
  1.10

  	
   

  	
  0.015

  	
   

  	
  1.07

  	
   

  	
  1.13

  	
   

  
	
  %Alkalies NA2O
  Dry (Total Alkali Content on Coal)

  	
   

  	
  0.478

  	
   

  	
  0.070

  	
   

  	
  0.34

  	
   

  	
  0.62

  	
   

  
	
  %Water Soluble
  Alk - Na2O

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  %Water Soluble
  Alk - K2O

  	
   

  	
  0.000

  	
   

  	
  0.000

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  %Na2O Dry Coal

  	
   

  	
  0.46

  	
   

  	
  0.03

  	
   

  	
  0.40

  	
   

  	
  0.52

  	
   

  
	
  %Na2O
  As-received Coal

  	
   

  	
  0.34

  	
   

  	
  0.02

  	
   

  	
  0.30

  	
   

  	
  0.38

  	
   

  
	
  Silica Value
  (Silica Ratio)

  	
   

  	
  57.73

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Slag Factor

  	
   

  	
  0.28

  	
   

  	
  0.14

  	
   

  	
  0.00

  	
   

  	
  0.56

  	
   

  
	
  Slag factor per
  Fusion Temperature

  	
   

  	
  2163

  	
   

  	
  85

  	
   

  	
  1993

  	
   

  	
  2333

  	
   

  
	
  Dolomite Ratio

  	
   

  	
  58.29

  	
   

  	
  3.25

  	
   

  	
  51.79

  	
   

  	
  64.79

  	
   

  
	
  Ash
  Precipitation Index

  	
   

  	
  3.97

  	
   

  	
  10.1

  	
   

  	
  0.00

  	
   

  	
  24.17

  	
   

  
	
  Silica to
  Alumina Ratio

  	
   

  	
  1.84

  	
   

  	
  0.14

  	
   

  	
  1.56

  	
   

  	
  2.12

  	
   

  
	
  Calcium to
  Silica Ratio

  	
   

  	
  0.47

  	
   

  	
  0.34

  	
   

  	
  0.00

  	
   

  	
  1.15

  	
   

  
	
  Iron to Calcium
  Ratio

  	
   

  	
  0.31

  	
   

  	
  0.07

  	
   

  	
  0.17

  	
   

  	
  0.45

  	
   

  
	
  Fouling Factor
  (Fouling Index)

  	
   

  	
  5.25

  	
   

  	
  1.41

  	
   

  	
  2.43

  	
   

  	
  8.07

  	
   

  
	
  SO2/MMBTU

  	
   

  	
  0.73

  	
   

  	
  0.075

  	
   

  	
  0.58

  	
   

  	
  0.88

  	
   

  
	
  Ibs S/MMBTU

  	
   

  	
  0.36

  	
   

  	
  0.075

  	
   

  	
  0.21

  	
   

  	
  0.51

  	
   

  
	
  Ibs Sodium/MMBTU

  	
   

  	
  0.364

  	
   

  	
  0.023

  	
   

  	
  0.32

  	
   

  	
  0.41

  	
   

  
	
  Ibs Ash/MMBTU

  	
   

  	
  4.41

  	
   

  	
  0.5

  	
   

  	
  3.41

  	
   

  	
  5.41

  	
   

  



 


TYPICAL COAL SIZE                          2
inch


 


	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cumulative

  	
   

  	
  Wt. Percent

  	
   

  
	
  Size Fraction

  	
   

  	
  Wt. Percent

  	
   

  	
   

  	
   

  	
  Wt. Percent

  	
   

  	
  Passing Top

  	
   

  
	
  +3” RD.

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  0

  	
  %

  	
  100

  	
  %

  
	
  3” RD. x 2” RD.

  	
   

  	
  4

  	
  %

  	
   

  	
   

  	
  4

  	
  %

  	
  100

  	
  %

  
	
  2” RD. x 1” RD.

  	
   

  	
  20

  	
  %

  	
   

  	
   

  	
  24

  	
  %

  	
  96

  	
  %

  
	
  1” RD. x 1/2”
  RD.

  	
   

  	
  28

  	
  %

  	
   

  	
   

  	
  52

  	
  %

  	
  76

  	
  %

  
	
  1/2” RD. x 4 M

  	
   

  	
  20

  	
  %

  	
   

  	
   

  	
  71

  	
  %

  	
  48

  	
  %

  
	
  4 M x 60 M

  	
   

  	
  13

  	
  %

  	
   

  	
   

  	
  84

  	
  %

  	
  29

  	
  %

  
	
  60 M x 0

  	
   

  	
  16

  	
  %

  	
   

  	
   

  	
  100

  	
  %

  	
  16

  	
  %

  



 


TRACE ELEMENT SUMMARY


 


	
  Parts Per Million

  	
   

  	
  TYPICAL

  	
   

  	
  STANDARD

  	
   

  	
  TYPICAL 95% RANGE

  	
   

  
	
  Whole Coal, Dry Basis

  	
   

  	
  (MEAN VALUE)

  	
   

  	
  DEVIATION

  	
   

  	
  -2 STD DEV

  	
   

  	
  +2 STD DEV

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANTIMONY (Sb)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  ARSENIC (As)

  	
   

  	
  1.50

  	
   

  	
  1.00

  	
   

  	
  0.00

  	
   

  	
  3.50

  	
   

  
	
  BARIUM (Ba)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  BERYLLIUM (Be)

  	
   

  	
  0.21

  	
   

  	
  0.08

  	
   

  	
  0.06

  	
   

  	
  0.36

  	
   

  
	
  BORON (B)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  BROMIDE (Br)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  CADMIUM (Cd)

  	
   

  	
  0.18

  	
   

  	
  0.02

  	
   

  	
  0.14

  	
   

  	
  0.22

  	
   

  
	
  CHLORINE (Cl)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  CHROMIUM (Cr)

  	
   

  	
  2.40

  	
   

  	
  0.75

  	
   

  	
  0.90

  	
   

  	
  3.90

  	
   

  
	
  COBALT (Co)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  COPPER (Cu)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  FLUORINE (F)

  	
   

  	
  41.90

  	
   

  	
  11.00

  	
   

  	
  19.90

  	
   

  	
  63.90

  	
   

  
	
  LITHIUM (Li)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  MANGANESE Mn)

  	
   

  	
  16.20

  	
   

  	
  7.90

  	
   

  	
  0.40

  	
   

  	
  32.00

  	
   

  
	
  MERCURY (Hg)

  	
   

  	
  0.07

  	
   

  	
  0.03

  	
   

  	
  0.01

  	
   

  	
  0.13

  	
   

  
	
  MOLYBDNEUM (Mo)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  NICKEL (Ni)

  	
   

  	
  1.53

  	
   

  	
  1.00

  	
   

  	
  0.00

  	
   

  	
  3.53

  	
   

  
	
  LEAD (Pb)

  	
   

  	
  2.60

  	
   

  	
  1.00

  	
   

  	
  0.60

  	
   

  	
  4.60

  	
   

  
	
  SELENUIM (Se)

  	
   

  	
  1.20

  	
   

  	
  0.90

  	
   

  	
  0.00

  	
   

  	
  3.00

  	
   

  
	
  SILVER (Ag)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  STRONTIUM (Sr)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  THALLIUM (Tl)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  THORIUM (Th)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  TIN (Sn)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  URANIUM (U)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  VANADIUM (V)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  ZIRCONIUM (Zr)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  ZINC (Zn)

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  



 






* All negative numbers were converted to 0.00


 


10