Vectren 2013 Annual Report Download - page 17

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both mines. Through December 31, 2013, approximately 2,353 acres of coal have been mined with approximately 22,647 acres
remaining. Access to the Oaktown 1 mine was accomplished via a 90 foot deep box cut and a 2,200 foot slope on a 14 percent
grade, reaching coal in excess of 375 feet below the surface. Access to the Oaktown 2 mine is via an 80 foot deep box cut and
a 2,600 foot slope on a 14 percent grade, reaching coal in excess of 400 feet below the surface.
Both Oaktown mines are room and pillar underground mines meaning that main airways and transportation entries are
developed and maintained while remote-controlled continuous miners extract coal from so-called rooms by removing coal from
the seam, leaving pillars to support the roof. Shuttle cars or similar transportation are used to transport coal to a conveyor belt
for transport to the surface. The two Oaktown mines are separated by a sandstone channel. The coal seam thickness ranges
from 4 feet to over 9 feet. The mine’s wash plant was originally sized to process 800 tons per hour and has been expanded to
1,600 tons per hour to accommodate the second mine. The two mines are connected to a railway equipped to handle 110 to
120 car unit trains. Coal is also transported via truck to customers, which include the Company’s power supply operations and
other third party utilities. The total plant and development costs to date for the Oaktown mining complex are $291 million,
inclusive of advance royalty payments. The remaining unamortized plant balance as of December 31, 2013 approximates $212
million, inclusive of $41 million of land and buildings, $169 million of mine development and equipment, and $2 million in
advance royalty payments. Reserves, absent expansion, are expected to be completely exhausted over the next 20 years.
Prosperity Mine
Prosperity is an underground mine located on 1,100 surface acres outside of Petersburg in Pike County, Indiana. Prosperity is
also a room and pillar mine where coal removal is accomplished with continuous mining machines. The mine entrance slopes
gradually for 500 ft on a 9 degree grade and is more than 250 feet below ground level. The coal seam varies in thickness from
4-1/2 to 6 feet. The mine has a wash plant sized to process 1,000 tons per hour. The mine is connected to a railway and can
handle 110 to 120 car unit trains. Coal is also transported via truck to customers, which include the Company's power supply
operations and other third party utilities. The mine opened in 2001, and the total plant and development costs to date are $219
million. Through December 31, 2013, approximately 8,000 acres of coal have been mined, with approximately 12,000 acres
remaining. Reserves at December 31, 2013 approximate 26.5 million tons. The remaining unamortized plant balance as of
December 31, 2013 approximates $80 million, inclusive of $6 million of land and buildings and $74 million of mine development
and equipment. Reserves, absent expansion, are expected to be exhausted by 2025.
Cypress Creek
Cypress Creek was an above-ground, or surface mine, located on 155 acres about 4 miles north of Boonville in Warrick County,
Indiana. Cypress Creek was a combination truck/shovel, dozer push and high wall mining operation, meaning large shovels or
front-end loaders removed earth and rock covering a coal seam and loading equipment placed the coal into trucks for
transportation to a blending and loading area. The mine opened in 1998 and ceased operations in 2010. As of December 31,
2013, no significant reserves remain, the mine is substantially reclaimed, and the remaining carrying amount is not significant.
Following is summarized data regarding coal mining operations:
Prosperity Oaktown Mine 1 Oaktown Mine 2 Totals
Type of Mining Underground Underground Underground
Mining Technology Room & Pillar Room & Pillar Room & Pillar
Tons Mined (in thousands)
2013 1,796 3,376 1,039 6,211
2012 2,072 2,755 —4,827
2011 2,457 2,668 —5,125
County Located in Indiana Pike Knox Knox
Coal Reserves (thousands of tons) 26,547 56,733 37,737 121,017
Average Heat Content (BTU/lb.) 11,300 11,100 11,300
Average Sulfur Content (lbs./ton) 4.0 5.6 4.8