[Hoot Gibson]

That's why I said "average".

Companies don't make decisions based on the "average" cost of mining a ton of coal - they base decisions on their actual costs. Mining costs are different for every coal mine in the country because mining plans and equipment choices are dictated by geology. Jim Booth has been one of the most efficient coal operators in the industry since he began mining as a contractor at Island Creek's Pevler complex back in the 1970s. I doubt that he signed the Indian contract expecting to make only $2/ton. With a potential Obama second term, that would be crazy.

Another thing that you and your left wing environmental wacko friends always fail to acknowledge is that companies do not always have a choice to either mine coal by surface or underground methods. Geology, previous mining conditions (existing undergrounds above and/or below a coal seam), surface conditions, and other variables determine the best - and often the only feasible mining method for a given seam of coal. Deep mining coal when it can be economically surface mined wastes a valuable natural resource.

Aside from long wall mining, which is generally not practical in eastern Kentucky, underground mine recovery rates are much lower than those for surface mines. Owners of coal reserves and the surface affected by mining do not approve wasting coal reserves because it results in less income for them. Most coal companies do not own the coal that they mine. They pay royalties for mining coal, wheelage fees for transporting coal across other people's properties, and surface disturbance/portal fees.

As I said, neither one of us has a clue about how much Booth stands to make from his new contract. I don't claim to know.