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Island Creek Coal and Consol Energy

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This page was last updated on December 7, 2018.

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Overview

The timeline below, from 1965 through 1993, appears to be the period of involvement of Island Creek and Consol Energy in Utah coal mining. The properties were coal leases, held while exploration and permitting took place. No evidence has been found of active mining in Utah.

Island Creek was shown as the operator of Clear Creek mine No. 2.

Timeline

April 29, 1965
Controlling interest in Heiner Coal Company was sold to Island Creek Coal Company, of Huntington, West Virginia, on April 29, 1965. Island Creek was the nation's largest producer of coal. Its 1964 tonnage exceeded 21 million tons. (Salt Lake Tribune, April 30, 1965)

(More research is needed concerning the relationship between Kaiser Steel, Heiner Coal Company, Island Creek Coal, Minerals Development Corporation, Book Cliffs Coal Company, and Book Cliffs Coal Corporation.)

January 25, 1968
Island Creek Coal company closed the Heiner mines, and later (in 1968), Island Creek Coal company was sold to Occidental Petroleum Corporation. The Occidental then controlled Heiner's coal leases, which it later sold. (Patterns and trends in federal coal lease ownership, 1950-80, page 32; New York Times, January 26, 1968)

July 9, 1975
Pacific Gas & Electric bought an option on 7,600 acres of coal leases from Island Creek Coal company of Lexington, Kentucky. The leases held 150 million tons of coal researves, located about 13 miles east of Helper, and had been sold to Island Creek by Claude Heiner in 1965. (Helper Journal, July 9, 1975)

(This was the Dugout Canyon mine, and the assets being sold were the leases themselves. Production did not start until 1998 under Canyon Fuel ownership.)

May 18, 1976
PG&E excercised its option and formally purchased the Island Creek Coal comapny's leases in Dugout canyon. The actual purchase was of Heiner Coal company, a subsidiary of island Creek Coal company. The coal was to be mined by underground methods and shipped by unit train to an unnamed and unbuilt power plant in California. The purchase price was reported as $10.7 million. (Salt Lake Tribune, May 18, 1976)

Pacific Gas and Electric bought Island Creek Coal company in 1976, in anticipation of higher oil prices for its oil- and gas-fired power plants in Northern California. It was reported that 8,000 of PG&E's 14,000 megawatt capacity was from oil- and gas-fied power plants. It was planning four coal-fired power plants in October 1977. (Salt Lake Tribune, October 9, 1977, "last year")

January 24, 1979
To add to its coal reserves, PG&E bought an additional 89 million tons of coal reserves (not in Utah) from Kennecott Coal Company, a unit of Kennecott Copper Corporation, for a reported $8 million. The property consisted of 2,736 acres of federal coal leases and 1,170 acres of private coal land. (New York Times, January 24, 1979)

(PG&E created a subsidiary, Eureka Energy, to manage and operate its coal reserves. In February 1982 Eureka Energy, after the collapse of its planned Montezuma Slough coal-fired power plant, sold its interest in the Sage Point-Dugout Canyon Project to Sunedco Coal Company, a unit of Sun Oil Company.)

February 10, 1982
Eureka Energy sold its interest in the Sage Point--Dugout Canyon Project to Sunedco Coal Company, a unit of Sun Oil Company. Pending the completion of the governmental permitting processes (85 percent federal and 15 percent state), construction of access roads into Fish Creek Canyon and Dugout Creek Canyon was to begin on or about June 1, 1982. (Utah Division of Oil Gas and Mining, Permit C0070009; Sage Point-Dugout Canyon Mine)

(Read more about the Dugout Canyon mine, and its many various owners.)

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