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HomeMy WebLinkAboutAtqasuk Coal Project Demonstration Project Phase IV 1991 NORTH SLOPE BOROUGH Atqasuk Coal Project Planning Department C.LP./R.E.LL. P.O. Box 69 Barrow, Alaska 99723 ATQASUK COAL PROJECT. DEMONSTRATION PROJECT Phase IV September, 1991 ASCG INCORPORATED ENGINEERS * ARCHITECTS ¢ SCIENTISTS * SURVEYORS ASCG INCORPORATED ARCHITE ENTISTS © SURVE May 1, 1992 Thomas Leavitt, Director Department of Planning North Slope Borough P.O. Box 69 Barrow, Alaska 99723 Subject: NSB Atqasuk Coal Mine Project Phase IV CIP/RELI # 13-127, Project Report Dear Mr. Leavitt: Arctic Slope Consulting Group is pleased to submit our Project Report on the Atqasuk Coal Mine Project, Phase IV. The NSB Coal Project has built upon the results of the previous three Phases. Although there still are many steps to be taken concerning the development of the local coal resource in the areas of coal quality and coal handling, this demonstration has made significant advances towards that end. We enjoyed working on this project and look forward to discussing its results with you. eb. Dhehn Arthur D. Isham North Slope Regional Manager ADI/ep BARROW, * FAX (907) 852-54 A 99723-0650 NORTH SLOPE BOROUGH ATQASUK COAL MINE PROJECT - PHASE IV CIP/RELI PROJECT # 13-127 PROJECT REPORT NSB Contract No 87-103 September 1991 Prepared For: NORTH SLOPE BOROUGH P.O. BOX 69 BARROW, ALASKA 99723 Prepared By: ASCG, Incorporated P.O. BOX 650 BARROW, ALASKA 99723 TABLE OF CONTENTS SECTION PAGE List_of Tables.—.—....... «ss List of Figures .......... 66428424 0+4 8828848 BB BeBe: 1.0 INTRODUCTION . . . 2. 2. © 2 ee ew ew we ew ew ew we T=1 1.1 Background. ............46+860.4080848 - 1-1 1.2 Project Objectives. ........4.4..40846-. 1-2 1.3 Scope of Work. .........624+4+04+8488.8 1-2 1.4 Project Organization. ............. 1-3 2.0 INING PROGRAM . . 2. 2. «© 6 2 © © © ee ew ew we ew we = MIN . 2.1 General... ... 1 1 ew ee ew ee ee ee 2.2 Mobilization. ..........+..222242428-8 2.3 2.4 Mining. ......... ws 5» o_o 6 ss Production and Equipment Schedule oe © oe ew ew ew ew NNNNN ' ORPEPB 3.0 COAL STOVE INSTALLATIONS .........+24.64+2468468- 3-1 3.1 General . . 2... 2. 2 2 ew ew we we ew ee ee 3-1 3.2 Selection of Participants ............ 3-2 3.3 Equipment Purchase and Transport. ........ 3-3 3.4 Installation. .............+2.+22242-. 3-4 4.0 COAL UTILIZATION ....... 2... 6.6.6 26 6 © «© © © « 4-1 4.1 General... ... 2. 6 2. ee ew ee ee ew ee 4-1 4.2 Observations. .........42.4288848-4 4-1 5.0 PROJECT COST . . . 2. 2 6 6 2 we ew ew ew ew ew ee ee ee ee SD 5.1 Cost Breakdown. ........ 2.666048 8048-4 5-1 5.2 Mining Productivity ............2.4.-. 5-1 6.0 PROJECT WORK FORCE a rs 6-1 6.1 General... ee eer ery 6-1 6.2 Work Force Profile. o 0 « 6 « 0 6 0 6 «© 6 « 2 e 6-1 6.3 Labor Cost. ........ 2... 2664840840848 +4- 6-2 7.0 RECOMMENDATIONS. . . . 2. © © 6 6 © 2 we eo we ew ew ew 7-1 7.1 Mining. ... — a a ar 7-1 7.2 Coal Stove Installation ———— - 7-1 2-1 2-2 ¥ LIST OF TABLES 1991 Western Arctic and Atqasuk Coal Demonstration Programs ...... Stadia Survey Note Reduction April 9, 1991 Stadia Survey Note Reduction April 14, 1991 Proximate and Ultimate Analyses for Coal, Atqasuk Coal Mine .......... Ash Fusibility, Atqasuk Coal Mine ... Concentration of Major and Minor Elements in Coal Ash Expressed as Oxides (Atqasuk). Stove Installation Production Schedule Project Cost Breakdown ........ Mining Cost Data ..........2..-. Project Personnel Employment List. ... Project Labor Cost ........... LIST OF FIGURES 1 G6 p= We 29! Er b Commer seers Sacer ser eee Sax seer en" jeee sec reer tea mer seles Blasting Plan .........2.2.42.-. Pit Survey ............ ii 1.0 INTRODUCTION 1.1 Background The high cost of fuel oil on the North Slope has created hardships for its residents and has suppressed economic development throughout the region. This problem has further been compounded by substantial decreases in state and local expenditures in capital projects that formerly provided cash income opportunities to many residents. Both the high cost of fuel oil and lack of cash income are the key factors that make up the energy problems prevalent throughout rural Alaska. Aware of this problem and in response to the villages’ request, the North Slope Borough (NSB) Assembly approved funds in June of 1987 for the NSB RELI Project 13-127, Atqasuk Coal Mine project. Upon successful completion of the project the NSB Assembly on June 21, 1988 approved funding and a subsequent Change Order for continuation of the Demonstration Project. In June 1989, the Assembly again approved funding in the amount of $190,000 to continue with the project under the mayors RELI Program. *In November 1990, the Mayor approved change Order 4 in the amount of $111,000 to fund the Phase IV Project, which built on the work conducted under the Phase I, II, and III effort. Mining occurred in the same area at the old Meade River Coal Mine Site. 1.2 Project Objectives The overall objectives for the 1990/91 Program were similar to those of the 1989/90 Program. The purpose of the Phase IV Project way to maximize the use of the Atqasuk labor force and to mine and deliver to the village a minimum of 200 tons of coal for use ina pilot program to test the use of coal for residential heating. The project yielded information on costs and operating requirements which will assist in the analysis of mining methods best suited to recovery of the Meade River coal and the benefits which can be derived from its use. Other tasks of the project included installation of three additional coal stoves and monitoring of coal use. 1.3 Scope of Work ‘The major project tasks undertaken by ASCG, Inc. are presented below: Mobilization Planning of the mining operation and procurement of the supplies and equipment required for performance of the mining. Mining ¥ Using local labor and NSB heavy equipment to excavate 200 tons of coal and stockpile it at the gravel stockpile area adjacent to the village. Installation Using local labor under the supervision of a qualified technician to install three (3) new coal-fired residential heating units’ in selected participating homes. Coal Utilization Devise a method for delivery of the coal to the residents which provides for a continuous supply and a method for measurement of coal used at each installation. 1.4 Project Organization Funding for this project was provided by the NSB. ASCG, Inc. was the recipients of the NSB grant and was therefore responsible for the management of the overall project, procurement of equipment scheduled for installation, installation supervision, mine planning and supervision, and final report preparation. Local hiring, project coordination within the village, and selection of demonstration participants were performed in the village by a Project Coordinator residing in the community. ? 2.0 MINING PROGRAM 2.1 General The 1991 Atqasuk Mining Program called for an estimated 200 tons of coal to be mined from the area in the vicinity of the old Meade River coal mine, as performed previously during the 1987 through 1990 mining programs. The coal would be transported and stockpiled relatively close to the townsite in the village’s gravel stockpile area. The field activities began on March 14 when the Atqasuk Municipal Services Department began preparing a road to the coal mine and ended on April 22 with the completion of the back filling operation at the mine. It was estimated that 200 tons of coal were mined and stockpiled for the 1991 mining program. Both the Atqasuk and Western Arctic coal projects were performed together. The operating tasks and work sequence of the two projects are presented in Table 2-1. TABLE 2-1 1991 Western Arctic and Atqasuk Coal Demonstration Programs Operating Tasks and Work Sequence 1. Investigation of DFS and Atgasuk mine sites for determination of supplies needed. 2. Supply procurement and delivery to mine sites. 3. Set-up at DFS and prepare mining equipment. 4. Safety meeting at DFS. 5% Fly in drill to DFs. 6. Drill and blast at DFS. 7. Set-up at Atqasuk and prepare mining equipment. 8. Safety meeting at Atqasuk. 9. Rip overburden at Atqasuk. 10. Load and haul coal from mine to Atqasuk. 11. Fly drill back to Fairbanks. 12. Muck overburden at DFS. 13. Load and bag coal at DFS. 14. Deliver coal from DFS to port area. 15. Demob from DFS. 2.2 Mobilization The 1991 Atqasuk coal mining program utilized the 1990 BLM approved license to mine coal in Atqasuk. The license, BLM number F-84753 is good through March 1994. In December 1990 ASCG, Inc. hired Mr. Steven Denton as the Mining Engineer for both the Atqasuk and Western Arctic Coal Projects. Mine planning and preparation continued through March 23. Steve Denton, Mining Engineer, and Bill Houghton, ASCG Project Engineer arrived in Atqasuk on March 30. Between March 30 and April 14 all mining and stockpiling activities were completed. Mr. Leroy Gunderson, the village project coordinator hired Mr. Mike Shugluk, Mr. Ron Brower, Mr. Johnny Nayukok and Mr. Tommy Shugluk as operators during this time period. Heavy equipment for the project was obtained from the N.S.B. Municipal Services Department. The N.S.B. maintenance shop had previously prepared their equipment for our use on the project. The equipment used included a D-7 dozer with ripper, 966D front-end loader, and two DJB off highway dump trucks. A Chevrolet Suburban, rented from SKW, was used for commuting between the mine site and town. 2.3 Mining Mine planning commenced during December. On December 10 discussions were held with Steve Denton, Mining Engineer, to determine the details of the mining plan. He started to prepare a formal mine plan for project scheduling and budgeting. The mine plan was completed and submitted to the Project Manager on January 7, 1991. The plan called for 43 drill holes averaging 16’ deep for a total of 688 feet of drilling and blasting and the extraction of 200 tons of coal. See figure 2-1 and 2-2. FIGURE 2-1 * > Project x INE = No. €28 Tithe Lycavamion Tan Oraving No. Sheet__ of _f esate tsar! see [A390 we Sas > FIGURE 2-2 > ”? J mr ~- 3. eR. a SL be we eT erm re ow Abon-Ec Decay | 7 LOAMETOR | oe 5 feet : pil Ob of bole Lt alteicts. ° + + Hares Aus usr cer |) ANFO 15e0 bs, Z) 3x8 Peimees (60 Ibs; Power Coun 3) gooms Ab El LEAY S2 ea. Cas v3) 20" Tie 4) 25 ms Abn-El Suneace, 20 ea | Won-En 2Zoams ~ aS DELAY Gawecroes Detar CAP 3x& Sexsinv€ 1 of 20 Fate Bemene 5) Abu- El Due 52 ea, COMméc oes : CP eae Deruatina Ge 1000 4 Treita, Shor Hoce #0 ‘Euscree BesnmGes 4 en, Ae Scale | = | e | 9! a |e see } o-9-a- Hy ——— i 7 / / Z / yf / / ’ ’ 12! a ’ , Z oe a 1 YPLAL 5 aces et 2 * » ? y , 7 ’ / 3 4 / v 7 ye T ' / / 4 ' ee — J - as / 4 ? 4 A /\ fee rere rng fF, 1 ' trojeetArepsus Coa Me ~AT0 0. C23 Title Draving No. shess_f of __} he ke eet A OA a tN On March 14 the Atqasuk Municipal Services Department began preparing a road to the coal mine. This effort took about three days using one operator and a D-7 Dozer. On March 30 snow removal from the mining area commenced and was completed the following day. At the same time it was determine that delays at the Deadfall Syncline project had put work two weeks behind schedule. The decision was made not to blast in an attempt to stay on schedule, and to rip the overburden using the D-7 Dozer. Ripping of the overburden with the D-7 Dozer began on March 31. Operations stopped on April 3 due to mechanical failure with the D- 7. The Dozer was repaired later in the day and operations continued. The ripping operation made slow progress. Limits of the pit were established on April 4. Overburden removal started that day. Coal was located in the pit on April 8. Widening of the pit was done the following day. Steven Denton arrived on April 9. Overburden removal was completed “on April 10 and the pit surveyed on the same day. Coal preparation and removal of contaminated coal from the seam occurred from April 11 to April 13. Snow was removed from the stockpile area on April 12. The coal extraction and haul to the stockpile started on April 13 and ended on April 14. One load of coal was also hauled to Mrs. Burnell’s' place. On April 14 the pit survey (figure 2-3 and tables 2-2 and 2-3) was completed and coal samples were removed for 2-6 testing at the Mineral Industry Research Laboratory, UAF. Results* of these tests are at tables 2-4, 2-5 and 2-6. aaa ae) B90rE EB Od BOL66_VXSYIY ‘SXNYEUIYS TWY3NIW % TIAID NOLN3G 8- 2 “OK SuTABUg Wefoug 6.4 Lee arTet AINSAS Lea “on 78eUS / ZPD 30 i 850 /E 900 |e 90 'E 1 1 re Mors: Pwr 1-2 is #4 RerAR t-2, Arerox. 6' Fron BUUurFE Anh Al2 1209.0 Wesr SIDE of MEADE KwER. E*1000.0 PROTRUDING, 0.5". oe &> lo3 oH " Wa 1600 al ay HeHEEH 7 is ‘a an 4 RO, > » | Date of Suxvey x i | Apaic 14,1991 ' : [Tor West Coane. Scroor % RiawT 13°24'46" ly ' aI- | ae N= 1000.00 { | | : i Nore, Fant Ql-l is E+ 000,00 \ #4 RewaR Arbrox, Et 60.0 t ee ' 20° From BLYyFF Cssumen) t PROTRUDING 0.3' ' €-2 gunold & TABLE 2-2 & » STADIA SURVEY NOTE REDUCTION SURVEY DATE April 9, 1991 OF Atqasuk Coal Mine 1991 BY SWD, Denton Civil & Mineral Control Data Name Elev. North East Instr. 91-1 60.0 1000.0 1000.0 BS 91-2 60.3 1905.0 1000.0 Azimuth Inst. to BS 360.0000 In Rad. 6.2832 Instrument Data Inst. Ht. 4.7 H< to BS DD.MMSS 93.1518 Radians 1.6276 Rod Rod Int Hor < Zen < Remark North East Elev 4.0 414.0 79.0056 90.5616 FP1 1401.2 898.2 53.9 3.0 422.0 74.5042 90.5420 FP2 1400.3 866.8 55.0 3.0 439.0 72.3520 90.4644 FP3 : 1410.7 845.1 55.7 3.0 484.0 71.5935 90.3343 FP4 1451.0 824.5 57.0 4.0 522.0 74.0921 90.2202 FPS5 1493.2 829.2 57.4 4.0 559.0 76.1524 90.2356 FP6 1534.6 836.6 56.8 6.0 905.0 93.1524 89.5406 CP 91-2 1905.0 1000.0 60.3 Remarks: FP indicates fly point marked with nail and flag. All FP points on original ground at top of cut. CP 91-2 is control point on grid north baseline. TABLE 23 " STADIA SURVEY NOTE REDUCTION SURVEY DATE April 14, 1991 OF Atqasuk Coal Mine Pit Survey BY SWD, Denton Civil & Mineral Control Data Name Elev. North East Instr. FP-3 55.7 1410.7 845.1 BS 91-1 60.0 1000.0 1000.0 Azimuth Inst. to BS 159.3355 In Rad. 2.7809 Instrument Data Inst. Ht. 5.0 H< to BS DD.MMSS 26.1821 Radians 0.4591 Rod Rod Int Hor < Zen < Remark North East Elev 2.5 101.0 235.5822 95.3639 w 1509.5 860.8 48.4 4.2 47.0 241.3741 100.2523 w 1454.7 856.6 48.1 6.2 42.0 301.5721 100.1650 w 1421.2 884.4 47.1 1.3 65.0 308.4646 101.5229 w 1419.6 906.7 46.3 3.4 77.0 291.3602 108.1033 w hw 1 1440.5 907.9 34.5 4.3 68.0 273.0732 111.4313 w hw 1 1451.4 887.4 33.0 3.5 93.0 255.2737 105.5657 w hw 1 1486.3 886.1 32.6 1.5 102.0 247.1257 101.2112 top 1502.7 879.0 39.5 4.6 128.0 266.2304 98.3808 top er 1507.4 924.5 Sik L.7 130.0 280.0219 100.2713 top er 1486.2 945.6 35.8 4.5 96.0 296.1204 103.1828 top 1442.9 930.1 34.7 1.5 110.0 262.3823 106.1511 hw 2 1493.1 904.2 29.6 6.5 95.0 258.5905 106.0851 hw 2 1485.0 891.6 28.8 7.4 74.0 270.5709 111.1125 hw 2 1457.0 889.8 28.4 ia 100.0 285.4005 109.5634 hw 2 1456.6 920.6 27.1 1.5 110.0 279.1421 108.0724 hw 2 1471.5 923.7 26.7 8.5 90.0 272.5410 111.1448 fw 2 cp 1465.1 901.3 21.8 6.5 92.0 283.0302 110.2223 toe ic 1455.8 912.2 24.2 11.4 76.0 271.0827 110.1125 toe ic 1458.7 891.7 24.7 3.5 103.0 264.2751 109.4334 toe ic 1483.1 900.7 24.5 Remarks: w Change in slope. hw Hanging wall. er Edge ramp. fw Foot wall. cp Control point. ic In coal. 2-10 TT - Z Table 1. Proximate and Ultimate Analyses for Coal, Atqasuk Coal Mine Heating Sample Moisture Volatile Fixed Value Total Total Number Basis % Ash, % Matter,% Carbon Btu/lb Sulfur Cl C,% H,% N,% 0,% HGI 91-1 1 18.96 3.35 30.56 47.13 10348 0.49 0.10 60.63 5.91 1.43 28.08 2 4.14 37.71 58.16 12769 0.60 0.13 74.81 4.68 1.76 13.88 3 39.33 60.67. 13320 0.63 0.13 78.04 4.88 1.84 14.48 91-2 1 19.10 2.26 30.27 48.37, 10608 0.48 0.11 61.85 6.00 1.41 27.89 2 2.80 37.42 59.79 13112 0.59 0.14 76.45 4.77 1.75 13.50 3 38.49 61.51 13489 0.61 0.14 78.65 4.91 1.80 13.89 91-3 1 16.95 6.97 31.84 44.24 10357 0.48 0.18 59.82 5.94 1.30 25.31 2 8.39 38.34 53.27 12471 0.58 0.22 72.03 4.87 1.56 12.35 3 41.85 58.15 13614 0.63 0.24 78.63 5.32 1.70 13.48 v-2 ATEVL 1, ASTM Equilibrium Moisture Basis 2. Moisture Free Basis 3. Dry, Ash Free Basis ZI - 2 Table 2. Ash Fusibility, Atqasuk Coal Mine REDUCING OXIDIZING Initial Initial Deformation Softening Hemispherical Fluid Deformation Softening Hemispherical Fluid Sample Temperature Temperature Temperature Temperature | Temperature Temperature Temperature Temperature No. oR oF OF OR OF oF OF OF 91-1 2150 2310 2335 2380 2240 2320 2350 2510 91-2 2050 2125 2145 2200 2250 2325 2375 2430 91-3 >2800 ( wnnennnnnnnnn nnn nnne-=-=- > 2800 >2800 = ~------------------------ > 2800 S-2@ ATaVL £T---Z g Table 3. Concentration of Major and Minor Elements in Coal Ash Expressed as Oxides (Atqasuk) Sample SiOz __Alg03_Fe20;_MgO CaO _NagO_K20 TiO, _MnO__BaO S10 P»0s_ S03 _ Total 91-01 34.9 31.4 8.08 5.34 5.48 3.29 087 1.15 0.06 0.69 0.47 2.04 6.38 100.15 91-02 29.6 27.5 7.95 5.92 8.32 5.24 0.92 0.90 0.11 0.40 0.22 1.09 11.38 99.85 91-03 49.6 37.2 0.69 2.44 1.23 2.43 1.22 1.68 0.02 "0.12 0.02 0.29 0.988 97.92 @ 9-2 HATaVL Pit backfilling began on April 15. However, due to an equipment breakdown work was stopped. Equipment repairs were completed and the backfilling resumed on April 18 and completed on April 22. 2.4 Production & Equipment Scheduled Production Schedule March 14-30 Mobilization March 31-April 13 Overburden removal April 13-14 Coal haul to stockpile April 15-22 Backfill pit and reclaim mining area N.S.B. Equipment Used D-6 Dozer D-7 Dozer 966D Loader DJB #1 DIB #2 3.0 COAL STOVE INSTALLATION 3.1 GENERAL All installations were done in accordance with NFPA 211. As in the past, the Harman "Mark" Series stoves have shown to perform the best and installations were limited to stoves manufactured by this firm. This decision was based on: 1) Few to no complaints with the product in the past. 2) Product durability (no sign of burn out or grate deterioration with continued use). 3) Good product service from the manufacture, 4) The over all heating performance of individual heating units. The Environmental Protection Agency (EPA) emission standards on woodstoves and coal/wood combination heaters adopted in 1989 has put a strain on the industry and rather than make expensive advances in technology it appears that the industry has chosen to stay dormant rather than make the necessary changes to advance. Thus we have been limited in testing new models. With the exception of a Harman SF 260 boiler that was installed in the Herbert Akpik home, all units had been previously tested. The boiler installed in Herbert Akpik’s was installed in tandem with the existing oil boiler. The idea behind this type of installation is that the cool water/glycol that returns, enters the coal boiler first and is preheated by coal, then the preheated water/glycol enters the oil boiler. The aquastat in the oil boiler is set at a lower temperature than the one in the coal boiler, thus there is no demand for the oil burner to kick on. As the coal fire dies and is unable to heat the water, the aquastat in the oil unit signals the oil burner to kick in and take over raising the water temperature as necessary. Even with a low fire you are still receiving benefit from any temperature rise caused by coal. The Harman stoves have an effective efficiency rating of 55% to 65%. This figure is relative and comparable to other units on the market. The Harman is available in a wide range of sizes and styles necessary to meet the variety of installations to be performed. In cases where households had small children portable fences were installed to lessen the possibility of burns. In addition, all installations included fire extinguishers and smoke alarms. On the preliminary visits to Atqasuk (while conducting the usage survey in December of 1990), the best installation location was selected, keeping in mind optimum heat distribution and space usage. The lay-out of most homes limited the choice of installation locations to one, and in some cases two areas. Once the stove and it’s location were decided on, a materials list was compiled. A schedule of activities relating to the coalstove installations is presented in Table 3-1. 12/90 12/90 1/5-10/91 01/17/91 01/19/91 2/15-3/15/91 10/15/91 10/16-17/91 10/17/91 10/18/91 10/28/91 11/1-3/91 TABLE 3-1 Production Schedule Travel to Atqasuk (meet with village coordinator) Survey housing and select participants Prepare material list Bids due Award bids Receive installation materials and prepare them for shipment to Atqasuk. Travel to Atqasuk, Hold employees safety meeting and organize installation materials. Stove installations Inspect and sweep chimneys from previous installations. Survey participants for 1992 installations and travel to Wainwright. Travel to Atqasuk and put finishing touches on installations that were missing materials on first visits, and return to Fairbanks. Write installation report. ¥ » 3.2 SELECTION OF PARTICIPANTS Residents of Atqasuk were notified of the project by the Village Coordinator by means of written notices in prominent locations throughout the village. Persons interested in participating in the coal project were requested to contact the Village Coordinator. The coordinator compiled a list of nine interested persons. Unfortunately the budget only allowed for three installations. The applicants were screened and three final participants were selected. The screening was done with the input of the Village Coordinator, the Mayor and the Installation Supervisor. When screening applicants, the selection was based on: 1) anticipated participation, 2) economic need and 3) desire (desire was partially based on number of times the person has previously signed up, but was not selected). The final participants and the stove of their choice are listed ~ below: 1. Joe Kippi MKIII 2. Herbert Akpik SF 260 Boiler 3. Fred Kanayuak MKII 3.3 EQUIPMENT PURCHASE AND TRANSPORT Because of the wide variety of materials needed the bid list was divided into seven sections. With prospective bidders encouraged to bid on all or any of the individual sections, each of the seven sections received a minimum of two competitive bids. All were awarded to the low bidder with the exception of Section 7 (Misc. installation Materials). In this case there were four bids, none of which were complete. Thus, materials for this section were selected at the discretion of the Installation Supervisor using portions of the respective bids where applicable. Over the past four coal projects, bids have varied very little and contracts have been awarded to the same vendors. In the future I suggest that material purchases be made at the discretion of the Installation Supervisor in order to simplify the effort. Due to the similarities of the NSB Atqasuk Coal Project and the NSB Western Arctic Coal Demonstration Project the material bid lists were combined and materials consolidated in Fairbanks for volume shipment to the respective villages. To standardize bids and -simplify logistics all bids were F.0O.B. Fairbanks. It was determined that the most economical way to deliver the installation materials to Atqasuk would be via Bush Consolidators directly from Fairbanks. By consolidating installation materials and mining equipment shipments we received optimum freight rates. 3.4 INSTALLATION In some cases stoves were installed in locations where wood heaters were previously installed, thus having chimneys and in some cases full installations to contend with. This proved to be a detriment rather than an advantage. Prior to April of 1987 NFPA regulations allowed coal heating appliances to be installed on Class A chimneys. Coal heating appliances installed after this date are required to have a higher rating of U.L. Standard 103-HT, thus making it necessary to remove existing chimneys to install chimneys with the U.L. 103-HT rating. All chimneys installed were Security brand model ASHT having U.L. 103-HT approval and were installed with the required minimum 2’ air space. This 2’ air space is an area of definite heat loss, but necessary! To minimize heat loss all ceiling trim collars were sealed, therefore eliminating filtration heat loss. Chimneys were installed so that they terminated a minimum of two feet above the peak of the roof to minimize the possibility of down drafts. Chimneys that penetrated the roof line more than six feet were “secured with a chimney brace. Security double wall connector pipe was used to connect the stoves to the chimneys. Security double wall pipe far surpasses NFPA’s required standard 24 gauge wall stove pipe minimums and has many features that make it outstanding for the application. ® 2 1) Inner liner is stainless steel, all but eliminating the need for replacement; 2) Outer wall is an aesthetically pleasing black finish and vented to allow cooling and heat distribution through convection; 3) Available in a selection of lengths and slip sections that eliminate the need for cutting; 4) Reduced clearances to combustibles(6" rather than 18" for single wall). 5) Unique twist lock for tight joints. (Although not required for twist lock pipe - three screws were placed on each joint); and 6) Cool exteriors minimize the possibilities of burns to small children. NFPA standards state that the stoves clearance to combustibles may be reduced by 2/3 (from 36" without protection, to 12" with protection) by installing a noncombustible material with one inch of air space behind it, provided that noncombustible spacers are “used. All installations utilized this practice in order to minimize the loss of living space. In many cases installation would not have been possible without this practice. 24 gauge galvanized sheet metal with hemmed edges was used as the noncombustible material with hat channel spacers secured with screws. Floor protection was fabricated from 5/8" Homasoto ( a commercial grade noncombustible material that meets NFPA requirement for floor protection) covered with 24 gage galvanized sheet metal. This protection extended a minimum of 16 inches in front of the stove door opening. Each participant was supplied with appropriate safety equipment for operation of the stove and instructed on the proper and safe use and maintenance of their stove. In addition to the new installations, previous installation were inspected for dirty chimneys, and cleaned as necessary. 4.0 COAL UTIMIZATION 4.1 General This portion of the project involved the usage of coal by the selected demonstration participants. As part of the monitoring effort during this phase of the project, a fuel use monitoring report prepared by ASCG, Inc. for the Western Arctic Coal Demonstration Project was utilized. These reports were used by the Village Project Coordinator to track performance of the stoves, amount of coal/oil consumed and comments of the participants. As in the past the consistency of monitoring was lacking, however, there were periods of consistency that make the data valid. 4.2 Observations The following observations have been recorded: 1) All coal burning units selected for the demonstration performed well. 2) As in Phases I, II, and III, the primary use of coal has been as a supplemental heating source to fuel oil. 3) Coal quality was improved over Phase III due to the installation of the powered coal screening unit that was recommended last year. This assisted in removing the fines prior to delivery to the households. As in the past coal was used as a supplemental fuel to oil. This was due to the area heating limitations of the stand alone conventional coal stoves used on this project and the style of housing which utilizes forced air or hydropic heating systems in order to reach all the rooms in the house. There are thirty-three stove installations in Atqasuk. One house is unoccupied. Five did not burn any coal during the demonstration period. From the fuel use monitoring reports the following examples give a representative picture of coal and oil use during the demonstration period from 9/01/90 to 3/13/91. During the period approximately 58 tons of coal were delivered to twenty-one participants. Approximately 72 tons were burned in the homes. The coal burned displaced approximately 10,800 gallons of fuel oil. The participants average coal use was about 56% of the total energy consumed (coal & oil). One home consumed 14,600 pounds of coal during this demonstration period. Coal use for that home represented 68% of the energy used for space heating. This example demonstrates the potential savings available to coal users even with the stand alone coal burning stoves used for this project. 5.0 PROJECT COST ‘ 2 5.1 Cost Breakdown The NSB demonstration project represents the fourth mining effort at the old Meade River Coal Mine. The project costs presented include the cost of stove installation, mining, coal distribution and project management. Total project costs were $134,129, or 20% over the original project budget of $111,262. This can be attributed primarily to the decision not to blast the overburden as originally planned and budgeted. The test mining cost category represented 48% of the total original project budget. Table 5-1 presents the project cost breakdown. It should be noted the cost associated with all phases of the project except the installation of stoves are not representative of cost conditions that would prevail under normal operating conditions. The project scale is too small to provide valid economic data to determine mining feasibility. Further, the field effort was a test mining one that contained non-productive costs that were necessary to get the field program up and running. Overall mining costs are higher compared to last year due to changing the stripping method from drilling and blasting to ripping with a D-7 Dozer. 5.2 Mining Productivity The cost of mining on a per ton basis have dropped substantially since the initial project. In comparison, the production cost of coal for the mining operation in Phase I was $616.42 per ton, Phase II was $262.60 per ton, Phase III, $182.14 per ton and Phase IV, $268.48 per ton. Mine cost data are presented in Table 5-2. TABLE 5-1 Project Cost Breakdown Project Management... Administration Project Coordinator Expenses Mining Operation... Field Supervisor Labor Travel Material Coal Distribution... Fuel Parts Supplies Installation ...... Installation Supervisor Travel Expenses Materials Freight Late Billings ..... oe ee $ 57,243.35 $24,380.00 31,953.52 909.83 we ee ee $ 53,696.11 25,890.99 17,992.82 + 1,210.95 8,601.35 wee ew ee) S$) 4,506.13 4,302.29 22.62 181.22 wee ee ee $ 18,325.61 4,662.00 785.39 94.47 10,645.08 2,138.67 eee ew ew ew 2 § 257.83 Total $134,029.03 % 2 TABLE 5-2 Mining Cost Data Overburden Removal Mining Unit Phase Tonnage Method Cost (s) Cost (s/ton) I 150 Ripping 92.5K $ 616.42 II 200 Ripping 52.5K 262.68 III 275 Blasting 50.1K 182.14 IV 200 Ripping 53.6K 268.48 $268.48 per ton is equivalent to a $1.86 gallon of fuel oil. This price is higher than the current subsidized cost of fuel oil plus the following items have not been taken into account: 1) the mining cost presented are field cost and do not include overhead operating costs; 2) the NSB has not charged for leasing their equipment over the years. If they did the cost per ton would increase to $366.03 per ton which is equivalent to a $2.53 gallon of oil; and 3) to date mining has occurred in a depression near the river. An ongoing operation would occur in an underground area. This means more overburden removal will have to take place increasing the unit cost of mining. Despite these facts it appears mining in Atqasuk can be a viable operation, but it is dependent on local demand. There appears to be sufficient demand in the community to make such a venture a success. Cost reduction in mining that have occurred can be traced to the following: 1) increase in tonnage from 150 tons in Phase I to 275 tons in Phase III; 2) changing the overburden removal method from stripping to drilling and blasting; 3) eliminating the need for extensive mine planning and geologic reconnaissance 4) and operating experience over the years. The Phase IV costs demonstrate that drilling and blasting is the best method for overburden removal. Further cost savings could be realized in this area if the future mine operator purchased a drill rig and compressor. During Phase III, the drill rig and compressor were leased for $3,575 for just four days work. Cost to mobe and demobe the rig came to $6,700. Total equipment cost for the Phase III drilling operation came to $10,275 which was 21% of the total mining costs. A similar used drill rig can be purchased for $15,000 - $25,000. Such a rig capitalized over ten years and with a one time mobilization cost would substantially lower the annual _ cost for the drilling and blasting operation and reduce the cost to approximately $145/ton or the equivalent of a $1 gallon of oil. 6.0 PROJECT WORK FORCE 6.1 General All labor requirements, except for field and installation supervision were obtained through hiring North Slope residents from the village of Atqasuk. The Project Village coordinator (Pvc) maintained an employment list for the community. The PVC was responsible for selection of the workers when notified by the field supervisors that an employee was needed or a job became vacant. 6.2 Work Force Profile The NSB Atqasuk Coal Mine RELI Project Phase IV employed five Atqasuk residents from July 1, 1990 to June 30, 1991. This project provided 1099.5 hours of work for the Atqasuk work force. The total hours are below the original proposed crew hour estimate of 1330 hours. The mining sector employed four workers, (80% of total). In addition to mining, one project coordinator (20% of total) was employed. Personnel and job classifications are presented in Table 6-1. we x > TABLE 6-1 Project Personnel Employment List Village Project Coordinator Leroy Gunderson - 866 hours Coal Mining Employees Mike Shugluk - 75 hours Johnny Nayukok - 79 hours Tommy Shugluk - 35.5 hours Ron Brower - 44 hours 6.3 Labor Cost Labor costs for the entire project amounted to 37.3% of the overall project cost. Labor cost are presented in Table 6-2. Labor cost associated with mining make up 13.4% of the total labor cost, and 33.5% of the mining costs. The higher labor cost percentage for mining reflects the use of the D7 dozer for stripping the overburden in lieu of drilling and blasting. Major Cost Categories Management Fees and Administration Cost and Mine Planning Mining and Stockpiling 200 tons of coal Coal Distribution Late Billings Installation TOTAL TABLE 6-2 Project Labor Cost Task Cost $ 57,243.35 53,696.11 4,506.13 257.83 $18,325.61 $134,029.03 Labor Cost $31,953.52 17,992.82 0 0 $ 0 $49,946.34 Percent Project Cost 23.8% 13.4% 37.3% 7.1 1) 2) y > 7.0 RECOMMENDATIONS Mining Blasting of the overburden would no doubt improve the productivity of the excavation equipment. However, it is not clear that any time or money is saved by blasting the overburden. If drilling equipment is available in Atqasuk then blasting of overburden should be considered. If mobilization of drilling equipment to the site just for the mining is necessary, then ripping of the overburden is probably time and cost effective. The lower (#2) coal seam appeared to be of high quality and was free of any sand or clay lenses in the section mined this year. This is consistent with what was found in the first program conducted at Atqasuk. The coal which was mined last year was reported to contain sandstone "dikes", which strongly suggests that the upper (#1) seam was mined. It appears that #2 Seam is continuous and of good quality throughout the mining area and can be recognized by its lack of sandstone dikes and lenses and the continuous light colored clay band lying immediately above the coal. 3) The ability to obtain good coal recovery and minimize contamination with overburden is seriously hampered by the small size of the pit. A larger pit, with coal removal on a less frequent basis would help alleviate this problem. 4) Backfilling the pit only enough to obtain drainage and allowing the dimensions of the pit to enlarge through successive years of operation would also accomplish the goal mentioned above. This plan would generate excess overburden which would be used to build a road back to the village, which would improve operational efficiency considerably. 7.2 Coal Stove Installation Material purchases to support miscellaneous installation materials should not be bid out, but should be performed at the discretion of 6 the Installation Supervisor. INCORPORATED ENGINEERS ¢ ARCHITECTS © SCIENTISTS * SURVEYORS