Arch Coal (ACI)

 

The operations of our customers are subject to extensive environmental regulation particularly with respect to air emissions. For example, the federal Clean Air Act and similar state and local laws extensively regulate the amount of sulfur dioxide, particulate matter, nitrogen oxides, and other compounds emitted into the air from electric power plants, which are the largest end-users of our coal. A series of more stringent requirements relating to particulate matter, ozone, haze, mercury, sulfur dioxide, nitrogen oxide and other air pollutants are expected to be proposed or become effective in coming years. In addition, concerted conservation efforts that result in reduced electricity consumption could cause coal prices and sales of our coal to materially decline.

 

Considerable uncertainty is associated with these air emissions initiatives. The content of regulatory requirements in the U.S. is in the process of being developed, and many new regulatory initiatives remain subject to review by federal or state agencies or the courts. Stringent air emissions limitations are either in place or are likely to be imposed in the short to medium term, and these limitations will likely require significant emissions control expenditures for many coal-fueled power plants. As a result, these power plants may switch to other fuels that generate fewer of these emissions or may install more effective pollution control equipment that reduces the need for low sulfur coal, possibly reducing future demand for coal and a reduced need to construct new coal-fueled power plants. The EIA’s expectations for the coal industry assume there will be a significant number of as yet unplanned coal-fired plants built in the future which may not occur. Any switching of fuel sources away from coal, closure of existing coal-fired plants, or reduced construction of new plants could have a material adverse effect on demand for and prices received for our coal. Alternatively, less stringent air emissions limitations, particularly related to sulfur, to the extent enacted could make low sulfur coal less attractive, which could also have a material adverse effect on the demand for and prices received for our coal.

 

You should see “Environmental and Other Regulatory Matters” for more information about the various governmental regulations affecting us.

 

 

The operations of our customers are subject to extensive environmental regulation particularly with respect to air emissions. For example, the federal Clean Air Act and similar state and local laws extensively regulate the amount of sulfur dioxide, particulate matter, nitrogen oxides, and other compounds emitted into the air from electric power plants, which are the largest end-users of our coal. A series of more stringent requirements relating to particulate matter, ozone, haze, mercury, sulfur dioxide, nitrogen oxide and other air pollutants are expected to be proposed or become effective in coming years. In addition, concerted conservation efforts that result in reduced electricity consumption could cause coal prices and sales of our coal to materially decline.

 

Considerable uncertainty is associated with these air emissions initiatives. The content of regulatory requirements in the U.S. is in the process of being developed, and many new regulatory initiatives remain subject to review by federal or state agencies or the courts. Stringent air emissions limitations are either in place or are likely to be imposed in the short to medium term, and these limitations will likely require significant emissions control expenditures for many coal-fueled power plants. As a result, these power plants may switch to other fuels that generate fewer of these emissions or may install more effective pollution control equipment that reduces the need for low sulfur coal, possibly reducing future demand for coal and a reduced need to construct new coal-fueled power plants. The EIA’s expectations for the coal industry assume there will be a significant number of as yet unplanned coal-fired plants built in the future which may not occur. Any switching of fuel sources away from coal, closure of existing coal-fired plants, or reduced construction of new plants could have a material adverse effect on demand for and prices received for our coal. Alternatively, less stringent air emissions limitations, particularly related to sulfur, to the extent enacted could make low sulfur coal less attractive, which could also have a material adverse effect on the demand for and prices received for our coal.

 

You should see “Environmental and Other Regulatory Matters” beginning on page 20 for more information about the various governmental regulations affecting us.

 

 

The operations of our customers are subject to extensive
environmental regulation particularly with respect to air
emissions. For example, the federal Clean Air Act and similar
state and local laws extensively regulate the amount of sulfur
dioxide, particulate matter, nitrogen oxides, and other
compounds emitted into the air from electric power plants, which
are the largest end-users of our coal. A series of more
stringent requirements relating to particulate matter, ozone,
haze, mercury, sulfur dioxide, nitrogen oxide and other air
pollutants are expected to be proposed or become effective in
coming years. In addition, concerted conservation efforts that
result in reduced electricity consumption could cause coal
prices and sales of our coal to materially decline.

 

Considerable uncertainty is associated with these air emissions
initiatives. The content of regulatory requirements in the
U.S. is in the process of being developed, and many new
regulatory initiatives remain subject to review by federal or
state agencies or the courts. Stringent air emissions
limitations are either in place or are likely to be imposed in
the short to medium term, and these limitations will likely
require significant emissions control expenditures for many
coal-fueled power plants. As a result, these power plants may
switch to other fuels that generate fewer of these emissions or
may install more effective pollution control equipment that
reduces the need for low sulfur coal, possibly reducing future
demand for coal and a reduced need to construct new coal-fueled
power plants. The EIA’s expectations for the coal industry
assume there will be a significant number of as yet unplanned
coal-fired plants built in the future which may not occur. Any
switching of fuel sources away from coal, closure of existing
coal-fired plants, or reduced construction of new plants could
have a material adverse effect on demand for and prices received
for our coal. Alternatively, less stringent air emissions
limitations, particularly related to sulfur, to the extent
enacted could make low sulfur coal less attractive, which could
also have a material adverse effect on the demand for and prices
received for our coal.

 

You should see “Environmental and Other Regulatory
Matters” beginning on page 20 for more information
about the various governmental regulations affecting us.