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PostAug 06, 2014#126

SHALE DAILY
Illinois County in New Albany Shale Rejects Fracking Measure
Richard Nemec March 19, 2014

By a 58% margin, voters in a Southern Illinois county in the New Albany Shale, on Tuesday rejected a nonbinding measure about whether local elected officials should oppose the use of hydraulic fracturing (fracking) for unconventional drilling. Meanwhile, the state has yet to enact updated drilling rules, leaving producers waiting.

By a 58-42% margin (2,223-1,602), Johnson County voters said no to the recommendation. The Illinois Oil and Gas Association (IOGA) didn't enter the fray before the vote, leaving it to a citizens group to oppose the measure. IOGA Executive Vice President Brad Richards said the measure sought to ban "corporate fracking."

Gov. Pat Quinn last June signed the Illinois Hydraulic Fracturing Regulatory Act into law, and the state's regulators are preparing final rules (see Shale Daily, Jan. 3). The rules would govern fracking and the state's mining industry that include registration and permitting procedures; well site preparation/construction; water quality; chemical disclosure and trade secrets; and exploration and development preparations.

The formation underlies a substantial portion of the southern part of the state. Johnson County sits on the fringe of the New Albany, which many people are hoping will revitalize this once fossil fuel-dominated area. Proponents of fracking argued that the industry would challenge in court any locally enacted ban, while opponents raised fears of environmental and water contamination problems.

Richards said the initiative is the only one in the southern part of the state, and no oil or gas ever has been produced in Johnson County using conventional drilling. With the advent of shale, one exploration and production company leased about 200 parcels in the county for potential unconventional drilling, he said.

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PostAug 06, 2014#127

Kansas based oil company plans Illinois headquarters
Len Wells
6:22 PM, Jun 2, 2014
Local | Southern Illinois News



Officials with a Kansas-based oil and gas exploration company have announced plans to establish an Illinois Oil Basin headquarters on land south of Fairfield, Ill.

Wayne Woolsey, owner of Woolsey Operating Co. of Wichita, Kansas, was in Fairfield Monday morning to sign the documents authorizing the transfer 20 acres from the Fairfield Industrial Trust. The offices and oil field yard will be located just off U.S. Rt. 45 a mile south of Fairfield. The land acquisition was a joint project of the city of Fairfield and the Fairfield Industrial Trust.

Addressing a small crowd of business leaders, city councilmen and state legislators, Woolsey outlined his drilling plans for the Illinois Oil Basin.

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PostSep 12, 2014#128

Nice article in Post Dispatch about SunEdison.

http://www.stltoday.com/business/local/ ... b9f9b.html

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PostJan 16, 2015#129

From the article below regarding the Grain Belt Express Clean Line wind project,
The project will help coal-dependent Missouri meet its 15 percent renewable energy standard, reduce pollution and create jobs, he said. To help win state support, Clean Line pledged to source materials from local manufacturers, including transformers made by ABB Inc. in St. Louis.
Clean Line pursues key approvals for transmission projects
Posted on 11/13/2014 by EnergyWire
Midwest Energy News
©2014 E&E Publishing, LLC
Republished with permission

By Jeffrey Tomich

A $2.2 billion project that would connect yet-to-be-developed wind farms in southwest Kansas to the nation’s largest power market is on trial in Missouri this week.

Just to the east, Illinois regulators are poised to decide whether to allow a $2 billion sister project that would link wind-rich northeast Iowa to the same power grid.

Together, the projects being developed by Clean Line Energy Partners LLC would inject 7,500 megawatts of mostly wind power to points east to help fulfill state renewable energy portfolio requirements.

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PostJan 16, 2015#130

With the departure of Patriot Coal, St. Louis now has one less publicly-traded energy company, however, it still has a number of energy companies listed on various stock exchanges including NYSE and NASDAQ.

-Emerson Electric, $24.5-billion
-Ameren Energy, $8-billion
-Peabody Energy, $7-billion
-Graybar Electric, $5.7-billion
-Arch Coal, $4.2-billion firm
-SunEdison (formerly MEMC/Monsanto Electronic Materials Company), $2-billion
-The LaClede Group, $1.6-billion (2014)
-Aegion, $980-million
-Foresight Energy, $967-million (2014)
-Esco Technologies, $621-million (2014)
-Future Fuel, $125-million
-World Point Terminals, Inc. $45-million

PostJan 22, 2015#131

The local shake-up of coal continues.

Boyce is out as CEO of Peabody. In my opinion, the Obama Administration's aggressive push-and-blow back on coal and carbon emissions could cost St. Louis hundreds of jobs and a F500 HQ's. An Aussie is about to take over.

-Peabody HQs in trouble?
-Peabody to be sold off? Downsized?
-Could Peabody enter other energy sectors/markets?

PR Newswire
Peabody Energy Board of Directors Names Glenn L. Kellow President and CEO-Elect; Also Named to Board of Directors

ST. LOUIS, Jan. 22, 2015 /PRNewswire/ -- Peabody Energy (BTU) announced today that President and Chief Operating Officer Glenn L. Kellow has been named President and CEO-Elect and will become Chief Executive Officer, effective May 4, 2015. Current Chairman and Chief Executive Officer Gregory H. Boyce will remain as Executive Chairman of the Board. Kellow has also been named to Peabody's Board of Directors.

"We are very pleased to name Glenn as CEO-Elect and have him join Peabody's Board of Directors," said Boyce. "Since joining Peabody in 2013, Glenn has led an operational team that has significantly improved safety, productivity and costs, while also overseeing corporate strategy, marketing and business development. Glenn brings substantial experience in multiple countries and multiple commodities throughout a highly successful career in global resources."

The announcement concludes a thorough succession planning process that has been under way for several years.

Kellow has worked across a broad range of commodities spanning three decades. Prior to joining Peabody, he held multiple leadership posts on three continents over a 28-year career with BHP Billiton. He ultimately served as president of the multinational aluminum and nickel business with operations in South Africa, Australia, Mozambique and Colombia. He has held a number of executive, operating and financial positions in the coal, copper, base metals, steel and petroleum sectors in the United States, Australia and Chile.

"With its proud 132-year history, deep leadership bench, great people and high-quality assets, it will be my privilege to lead the pre-eminent company in the sector," said Kellow. "We continue to take all necessary steps to work through the challenging market downturn and are well positioned to benefit when coal markets improve. I look forward to continuing to work closely with Greg on the transition, with an overarching commitment to create superior value over the long term."

In Boyce's role as Executive Chairman, he will continue his governance oversight duties as Chairman of the Board, provide strategic support to the CEO and remain involved in the company's leadership initiatives in global advocacy, government relations and external outreach.

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PostJan 22, 2015#132

St. Louis Business Journal
Boyce to step down at Peabody
Jan 22, 2015, 10:32am CST

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PostJan 22, 2015#133

Interesting. There was just an article in the Post about how optimistic Boyce was about Peabody's prospects:

http://www.stltoday.com/business/local/ ... cc82a.html

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PostJan 23, 2015#134

Arch City, He is becoming Chairman of the Board. This should be a good thing as I don't understand the implication that he is out of the picture. In fact, he should have more say over Peabody's future more then ever if the board is worth anything and actually performs their oversight functions.

As far as Australian overtake, that is an interesting angle considering Peabody might be weak but is also in a position to export coal and coal is finding a way to get to coal terminals in the Gulf Coast (they are expanding and Panama canal expansion will allow even bigger bulk cargo vessels) and Pacific Coast via Canada (Terminal expansion and a strong play by BNSF railroad to get access to the routes will leave the Pacific Northwest proposal to collect dust on the shelf).

As far as domestic market. I completely disagree with you Arch. Look at the recent price on natural gas as is back on its downward march and the fact that US is now the worlds largest natural gas producer. While I agree that Obama's EPA play is forcing utilities to either clean up their old, inefficient small coal plants that leave piles of coal ash around or find alternative sources sooner then later. The business case of much more efficient turbines/plant and cheap gas with a plentiful long term supply is what is trouncing coal and the utility companies are happy that liabilities are being cleared off their books sooner then later in my opinion. This was going to happen even without the additional EPA requirements. Pennsylvania and Ohio's win is West Virginia and Kentucky's loss.

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PostJan 23, 2015#135

Don't be surprised if BTU moves their corporate HQ to Australia.

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PostJan 23, 2015#136

This Bloomberg Article provides some interesting inside perspective on the state of the oil industry in So. Ill. Not surprisingly, it's struggling due to the recent price collapse in oil.

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PostMar 16, 2015#137

Murray Energy to Acquire Controlling Interest in Foresight Energy
Deal is bet on coal at time of industry turmoil, low prices
By JOHN W. MILLER
Updated March 16, 2015 8:54 a.m. ET

PostMar 16, 2015#138

What I didn't know is that Foresight Energy had $1.1-billion in revenue last year.

Not sure, but $1.1-billion could make Foresight a F1000 on this year's Fortune list.

PostMar 16, 2015#139

It appears that St. Louis may not be losing Foresight.

Quote from the St. Louis Post-Dispatch,
As part of the deal, which is expected to close in the second quarter, Foresight founder Christopher Cline will keep a 35 percent stake in Foresight Energy LP and a 22.5 percent interest in Foresight Energy GP.

After the deal closes, Murray Energy will remain privately held and Foresight Energy LP will remain a publicly traded company.
Source

PostMar 16, 2015#140

Murray Energy to buy controlling stake in Foresight
Published on NewsOK
Modified: March 16, 2015 at 10:04 am • Published: March 16, 2015

NEW YORK (AP) — Coal miner Murray Energy Corp. said Monday that it will pay about $1.4 billion in cash to buy a controlling stake in Foresight Energy LP and its subsidiary.

Combined, the companies will control 9 billion tons of coal reserves, Murray Energy said.

The deal, which is expected to close in the second quarter, will give Murray Energy about a 50 percent stake in Foresight Energy LP and an 80 percent stake in the subsidiary, Foresight Energy GP. Christopher Cline, Foresight Energy's founder, will keep a 35 percent stake in Foresight Energy LP and a 22.5 percent interest in Foresight Energy GP.

After the deal closes, Murray Energy will remain privately held and Foresight Energy LP will remain a publicly traded company. Murray Energy said it will pay for the deal by taking on debt.

Murray Energy, based in St. Clairsville, Ohio, owns 12 coal mines. St. Louis-based Foresight has 4 coal mines.

Shares of Foresight Energy LP rose 4 cents to $15.84 in morning trading Monday.

Source

PostMar 16, 2015#141

Murray Energy Corp. will spend $1.4 billion for a controlling interest in a fellow coal company in St. Louis in what Murray says is a "transformative event" for the global coal industry."

Source
Perhaps this is the genesis of a new round of consolidation in the coal industry?

So the question now becomes what will Peabody Energy and Arch Coal, Inc. do?

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PostMar 16, 2015#142

^ thanks; the Post reports that Murray will remain privately held and Foresight publicly traded so there may be few impacts on local employees holed up at Met Square; a 2013 Biz Journal article that Foresight had 30 to 40 local employees at the time so I doubt that's changed dramatically.

Also, anyone know if this Chris Cline billionaire is a local dude?

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PostMar 16, 2015#143


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PostMar 26, 2015#144

https://news.vice.com/article/the-us-co ... vicenewsfb

Coal corporations like Arch and Peabody are such a large chunk of our city's corporate presence; I wonder how long before the supposed decline of the coal industry is going to start being felt here.

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PostMar 26, 2015#145

It won't be long at all. Hopefully Foresight continues to grow.

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PostMar 26, 2015#146

Greatest St. Louis wrote:Coal corporations like Arch and Peabody are such a large chunk of our city's corporate presence; I wonder how long before the supposed decline of the coal industry is going to start being felt here.
It already is being felt. Because of the decline in coal Patriot had to file for bankruptcy, and the COO, who had been running its operations out of Charleston was promoted to CEO. In the last few months the company decided to move to Charleston.

Also, there's Foresight getting bought.

The decline of the coal industry is definitely being felt in St. Louis.

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PostApr 08, 2015#147

I knew Chris Cline couldn't give up total control of his company.

BUSINESS
Murray Energy, Foresight Modify Terms of Deal
Murray reduces the voting share it will receive in one of Foresight’s units
By ANGELA CHEN
April 7, 2015 8:13 a.m. ET
0 COMMENTS

Appalachian coal miner Murray Energy Corp. has revised the terms of its planned investment in Foresight Reserves LP, reducing the voting share it will receive in one of Foresight’s units.

Under the terms, which terminates the previous agreement unveiled last month, Murray will pay $1.37 billion for a 34% voting interest—down from 80%—in Foresight Energy GP LLC. It will still have 77.5% of the incentive distribution rights for FEGP, and 50% of the limited partner interest in Foresight Energy LP.

The companies didn’t provide the rationale for changing the agreement.

Foresight founder Christopher Cline will maintain a 66% voting interest in Foresight Energy GP, and a 36% economic interest in Foresight Energy LP. He will also join the board of Murray Energy.

In March, Murray Energy, founded and run by 75-year-old Robert Murray, said it would pay $1.4 billion for an approximately 50% stake in Foresight.

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PostApr 08, 2015#148

^ I thought I read that Robert Murray couldn't come up with all the financing to pull off the deal. I think Cline has been in a much more stronger position from day one with more productive, less expensive mines with easy access to export market versus the Appalachia empire that Murray has built.

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PostApr 09, 2015#149

^That could be true,

But here's a snippet from the WSJ article,
The companies didn’t provide the rationale for changing the agreement.

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PostMay 15, 2015#150

While Coal struggles and impacts local companies. It is interesting to follow SunEdison's growth and push as a significant solar power generator even with recent quarterly losses.

SunEdison stock surges on expansion plans

http://www.bizjournals.com/stlouis/blog ... plans.html

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