Skyline Mine

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This page was last updated on March 16, 2025.

Overview

The following comes from the Skyline Mine files at the Utah Division of Oil Gas and Mining; Permit C0070005:

Skyline No. 1 development began in June 1980 and production began in June 1982.
Skyline No. 2 development began in 1992 and production began in (??). It was idled in May 2004, and reactivated in January 2005.
Skyline No. 3 development began in June 1980 and production began in October 1981. Formal dedication and opening took place of December 11, 1981.

The three Skyline mines are located in Eccles Canyon, 2.8 miles south of Scofield, then 2.7 miles up the canyon. A conveyor belt parallels the road in the canyon from the mine to the railroad loadout at the mouth of Eccles Canyon.

Skyline Conveyor

Mark Hemphill wrote about the Skyline conveyor on October 24, 2021.

The Skyline Mine, located in Eccles Canyon, Utah, at an elevation of 8,600 feet, since 1993 has used a "pipe conveyor" to move its coal from its portal to its railway loadout, 2.1 miles and 600 feet below. Prior to 1993, the mine trucked the coal from mine to loadout. Skyline's pipe conveyor is the highest capacity in the world, capable of moving 5 million tons annually, and the second longest in the world.

The pipe conveyor was invented in the 1980s by Japan Pipe Conveyor, Ltd., to solve the problem of moving bulk dry commodities around horizontal and vertical curves in a single conveyor "flight". Conventional flat-belt conveyors require a new flight each time they turn a corner, or change vertical alignment. Each flight requires its own drive system, feeders, and dust control, which in turn requires power supply and controls to be run to each flight's head and tail, all of which requires regular maintenance and considerable capital expense and operating expense.

The innovation of the pipe conveyor was to use rollers that progressively wrap a flat, rubber conveyor belt into a tube, with one side of the belt overlapping the other. The overlap is placed at the top of the tube. This enables the belt to bend horizontally and vertically around corners on moderately sharp radii, and traps the material inside the "pipe". At destination the rollers sequentially lay off, allowing the belt to flatten, and the material it's transporting falls off the belt conventionally, into a hopper. The rollers are passive. A pipe conveyor's only power supply and controls are at head and tail, enabling very low maintenance. The belt returns as a pipe; both pipes are stacked inside the same enclosure. The overlapping sides of the belt provide an effective seal and prevent significant loss of material or dust, due to the tension of the belt. The rubber composition at the edges is also designed to be softer, so that the sides are compliant with each other, to improve the seal.

The Skyline pipe conveyor has 22 horizontal curves and 45 vertical curves in a single flight. The belt is 63 inches wide and 22,700 feet long, and when rolled into the pipe has a diameter of 16 inches. It has a 1,200 hp drive, 400 at the head and 800 at the tail. The head drive is started first to pull the belt downhill. The Skyline pipe conveyor was commissioned in February 1993 and by 1998 had already moved 23 million tons of coal. The pipe conveyor reduced haulage costs from 36.6 cents/ton by truck to 4.0 cents/ton.

Bridgestone Tire Co. as owner of the patents is the principal manufacturer of pipe conveyor belts, which have steel cord cores.

Coastal States, 1978

The original federal coal lease for what later became the Skyline mine was on March 1, 1962, to Emmett K. Olson. Mr. Olson, on April 24, 1962, assigned the lease to Malcolm N. McKinnon. This assignment was approved by the BLM on July 20, 1962. Twelve years later, on May 10, 1974, Mr. McKinnon assigned the lease to Oak Creek Development. On August 1, 1974, Oak Creek, with Mr. McKinnon's approval, assigned all its rights to Routt County Development. Routt County, on September 15, 1975, subleased a part of the property, known as the O'Connor block, to Energy Fuels. Energy Fuels, on November 5, 1975, assigned its interest in the O'Connor block to Valley Camp. On August 2, 1978, Routt County, as successor to Energy Fuels, assigned what was known as the adjacent Connelville Block to Coastal States. As a result, Valley Camp and Coastal States became co-operators of both blocks of the original McKinnon, with Valley Camp operating the Belina mine on the O'Connor block and Coastal States operating the Skyline mine on the remainder of the property known as the Connelville block. During this entire 16 year period, no mining activity had taken place.

In August 1978 Coastal States Energy Company acquired about 6,400 acres in federal coal leases, known as the McKinnon property, from Energy Fuels Corporation and Routt County Development. Production was expected to begin in 1982. (Provo Daily Herald, August 10, 1978, page 17)

Coastal States Energy Company was a subsidiary of Coastal States Gas Corporation. In March 1979 Coastal States signed an agreement with Getty Oil Company in a joint venture to develop two coal mines, on 6,400 acres near Scofield. The property was to be operated by Coastal's subsidiary company, Utah Fuel Company, with the mine being known as the Skyline mine. (Salt Lake Tribune, March 18, 1979)

June 24, 1980
The Skyline Coal Project of Coastal States Energy Company and Getty Mineral Resources had its official beginning, when its underground mining permit was signed. It was the first underground mining permit released under the Surface Mining Control & Reclamation Act of 1977. Construction of the mine was to begin immediately. (Deseret News, June 25, 1980)

August 5, 1981
Torkelson-Kellog of Salt Lake City was awarded the contract to construct the the coal storage facility and unit train loadout for the Skyline mine. The initial capacity was to be to store 30,000 tons of coal, and to load 5,000 tons per hour. (Sun-Advocate, August 5, 1981)

November 18, 1981
L-E Loudermilk of Helper, Utah, was awarded the contract by the Utah Department of Transportation to build 2.4 miles of new paved county road in Eccles Canyon, to connect with the developing Skyline coal mine. (Sun-Advocate, November 18, 1981)

Fall 1981
"Coastal States Energy Company opened its lower mine, Skyline No. 3, in the fall of 1981." (Utah Mineral Industry Activity Review 1981-1982, published by Utah Geological and Mineral Survey, Circular 72, May 1984, page 13)

December 11, 1981
The first of three coal mines in the Skyline complex was formally opened and dedicated, with a public open house, on December 11, 1981, a Friday. (Emery County Progress, December 16, 1981)

July 1985
Coastal States' Skyline No. 1 and No. 2 mines were reported to be one of several sources for coal being shipped to the Intermountain Power Project coal-fired generating plant near Delta. (IPA news release, dated July 2, 1985)

August 1985
Coal Age magazine reported, in error, that Cyprus Plateau was about to buy a 50 percent interest in the Skyline mine: "Cyprus Minerals, of Denver, formerly Amoco Minerals, was recently spun off recently as a separate company by Amoco shareholders. Cyprus is buying two western coal properties from Texaco. Texaco acquired the properties it was selling in its 1984 $10.1-billion takeover of Getty Oil. Cyprus is acquiring the Plateau underground mine near Price, Utah, and 50% interest in the Skyline underground mine near Scofield, Utah." (Coal Age, Volume 90, Number 8, August 1985, page 27)

(The above news item from Coal Age was in error; Cyprus Plateau did *not* buy an interest in the Skyline mine.)

June 22, 1992
Coastal States received approval to construct its new conveyor system between its Skyline mine and the rail car loadout at the mouth of Eccles Canyon. The conveyor system included a ground clearance of 10 feet to allow unimpeded passage of elk. (Salt Lake Tribune, July 6, 1992)

July 28, 1993
After ten months of construction, the conveyor system from the Skyline mine to the rail loadout went into operation. (Gunnison Valley News, July 28, 1993)

In July 1993 Coastal States bought the Soldier Creek coal mine, northeast of price, Utah, from a subsidiary of Sun Oil Company.

Canyon Fuel and Arco Coal, 1996

December 1996
Coastal States Energy Company sold its coal mining properties in Utah to Canyon Fuel Company, a new company owned jointly by Arco Coal (65%) and Itochu of Japan (35%).

December 20, 1996
Canyon Fuel Company, a new company owned jointly by Arco Coal (65%) and Itochu of Japan (35%), was the result of the merger of Coastal States Energy Company with four coal mining companies in Utah, including Soldier Creek Coal Company; Sage Point Coal Company; Southern Utah Fuel Company; Skyline Coal Company; along with Coastal Development Company, and Utah Fuel Company. (Utah Division of Oil Gas and Mining, Permit C0070039; Dugout Canyon Mine)

"Effective December 20, 1996, Canyon Fuel Company, LLC was formed as a joint venture between ARCO Uinta Coal Company (65% ownership) and ITOCHU Coal International Inc. (35% ownership) for the purpose of acquiring certain Utah coal operations and an approximate 9% interest in Los Angeles Export Terminal, Inc. from Coastal Coal, Inc. and The Coastal Corporation. Effective June 1, 1998, ARCO Uinta Coal Company's ownership of the Company was acquired by Arch Western Resources, LLC." (Arch Coal, Inc., SEC Form 10K, dated March 2, 1999)

(Arch Western was part of Arch Coal, which in turn was part of Ashland Oil Company.)

(The link includes the changes under its parent company, Arco Coal from 1996 to 1998, then under Arch Coal from 1998 to 2013)

Canyon Fuel and Arch Coal, 1998

March 23, 1998
Atlantic Richfield announced that it would sell its coal mining operations in Utah and Colorado to Arch Coal, Inc., for a reported $1.14 billion, making Arch the second largest coal mine operator in the nation, selling 110 million tons of coal per year, about 10 percent of the nation's total. (Deseret News, March 23, 1998)

August 31, 2001
Skyline Mine, Utah -- Coal miners in Utah's Skyline mine near Scofield have been working seven days a week since August 16th to contain flooding in the mine. Miners struck a large sandstone formation saturated like a "rock sponge" pouring 4,700 gallons of water per minute into the mine. All mining operations have been suspended while 234 miners work to move mining equipment to higher ground and set up electric pumps to redirect the deluge. The company has purchased 53,000 feet of 12-inch pipe at a cost of $13 per foot and dozens of pumps at a cost of $6 million. Some of the water has been diverted into nearby Eccles creek which drains into Scofield Reservoir. Overworked crews are weary of working around the clock, and it appears they will need to work through Labor Day weekend. (Salt Lake Tribune, August 31, 2001)

May 2003
Canyon Fuel Company, announced that it would close its Skyline mine by the summer of 2004, due to low coal prices and insufficient markets. The Skyline mine had produced about 3.5 million tons during 2002. Canyon Fuel Company was a subsidiary of Arch Coal (65 percent) and Itochu Corporation of Japan (35 percent). (Salt Lake Tribune, May 28, 2003)

November 2003
Arch Coal closed its Skyline coal mine due to low coal prices. (Seattle Times, November 17, 2005, "two years ago")

July 15, 2004
"Arch Coal, Inc. announced today that it has signed a definitive agreement to acquire Itochu Corporation's 35% interest in Canyon Fuel Company, LLC for a contract price of $112 million. With the completion of this transaction, Canyon Fuel will become a wholly owned subsidiary of Arch Coal." "Canyon Fuel owns and operates two longwall mines in Utah - Sufco in Sevier County and Dugout Canyon in Carbon County. In addition, the company owns the currently idle Skyline mine, which also is located in Carbon County. In total, Canyon Fuel controls approximately 161 million tons of high-quality, low-sulfur coal reserves in Utah. In 2003, Canyon Fuel produced approximately 13.0 million tons of coal." (Arch Coal, Inc., press release dated July 15, 2004, "today")

Mid 2004
"The Skyline mine in Carbon County was forced to close midway through 2004 when it was inundated with water percolating through the Wasatch Plateau." The mine was reopened in February 2005. (Salt Lake Tribune, October 7, 2006)

November 17, 2005
Arch Coal announced that it would re-open its Skyline coal mine, after it had been closed "two years ago." (Seattle Times, November 17, 2005)

Bowie Resource Partners, 2013

August 16, 2013
Bowie Resource Holdings completed its purchase of 100 percent interest of Canyon Fuel Company, a subsidiary of Arch Coal Company. The purchase included the Soldier Canyon mine, along with the Dugout Canyon mine, the Banning loadout, the Sufco mine, and the Gordon Creek mines (previously owned by Mountain Coal Company). The purchase agreement was first signed on June 27, 2013.

August 19, 2013
"Arch Coal, Inc. today announced that it has completed the sale of its subsidiary, Canyon Fuel Company LLC, to Bowie Resources LLC, for $423 million in cash. The sale includes the Sufco and Skyline longwall mines, the Dugout Canyon continuous miner operation and approximately 105 million tons of bituminous coal reserves, all located in Utah." (Arch Coal, Inc., press release dated August 19, 2013, "today")

"The Skyline loadout is located just south of the road up Eccles Canyon." (Wess Sorensen, General Manager, Canyon Fuel Co., Bowie Resource Partners, email dated November 19, 2013)

(The three active coal mines in Utah owned by Bowie included the Sufco mine near Salina, the Skyline mine in Pleasant Valley, and the Dugout Canyon mine northeast of Price.)

October 31, 2017
Failed Sale -- A news item dated October 31, 2017 stated that Bowie Resource Partners was to be sold to a consortium made up of Murray Energy (30.5 percent), a former Bowie CEO (30.5 percent), and the other 39 percent made up of a wide variety of lenders and investors that included Javelin Global Commodities, and Grupo CLISA. The new holding company was to be known as Canyon Consolidated Resources and would own and control the three largest coal mines in Utah. However, the sale fell apart in less than a month and did not materialize. Bowie Resource Partners continued its operations, at least in Utah, for another year. (Salt Lake Tribune, October 31, 2017; Wall Street Journal, November 21, 2017)

Wolverine Fuels, 2018

October 15, 2018
Bowie Resource Partners LLC, has changed its corporate name to Wolverine Fuels LLC. The change includes a new office location in Sandy, Utah. (Wolverine Fuels press release dated October 15, 2018)

The following comes from the November 8, 2018 issue of the Sanpete Messenger newspaper:

Bowie appointed a new chief executive officer, and last month it announced it would change its name to Wolverine Fuels LLC, and move its headquarters from Grand Junction, Colorado to Sandy.

Newly appointed Wolverine Fuels CEO James Grech said, "This move will allow the executive team to be closer to our mines, our workforce and our customers."

In regards to the name and location, Grech said, "In conjunction with the recent management changes and recapitalization of the company, we wanted to offer our employees a fresh start and new identity with the name change. Our workforce is tough and resilient, very much like a wolverine, so we think our new namesake will resonate very well with our employees and the communities in which we operate."

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