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197019711972197319741975197619771978197919801970 ARCO diversifies into coal. Core sampling showed Powder River Basin, in Wyoming, to be a strong resource.

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Presentation on theme: "197019711972197319741975197619771978197919801970 ARCO diversifies into coal. Core sampling showed Powder River Basin, in Wyoming, to be a strong resource."— Presentation transcript:

1 197019711972197319741975197619771978197919801970 ARCO diversifies into coal. Core sampling showed Powder River Basin, in Wyoming, to be a strong resource ARCO SPS SPS decides to build an electric generation plant (Harrington Station) using coal vs. natural gas Powder River Basin Harrington Station

2 197019711972197319741975197619771978197919801973 Powder River Basin Harrington StationARCO SPS Original Harrington Agreement $2.00 per ton

3 197019711972197319741975197619771978197919801973 Original Harrington Agreement $2.00 per ton SPS ARCO SPS begins construction of Harrington Station Sierra Club Litigation begins

4 197019711972197319741975197619771978197919801974 Original Harrington Agreement $2.00 per ton ARCO SPS SPS creates TUCO, a wholly owned subsidiary TUCO Sierra Club

5 197019711972197319741975197619771978197919801974 ARCO and SPS/TUCO reopen negotiations regarding Harrington Agreement Original Harrington Agreement $2.00 per ton ARCO SPS TUCO Sierra Club

6 19701971197219731974197519761977197819791980 Original Harrington Agreement $2.00 per ton ARCO SPS 1976 Revised Harrington Agreement $2.698 per ton State Agreement $6.50 per ton TUCO NEGOTIATIONS Sierra Club Injunction ends Sierra Club

7 9.1%19701971197219731974197519761977197819791980 Original Harrington Agreement $2.00 per ton ARCO SPS Revised Harrington Agreement $2.698 per ton State Agreement $6.50 per ton 1977 5.8% Tolk Agreement $7.50 per ton TUCO Powder River Basin Harrington Station Tolk StationNEGOTIATIONS Sierra Club

8 19701971197219731974197519761977197819791980 Original Harrington Agreement $2.00 per ton ARCO SPS Revised Harrington Agreement $2.698 per ton State Agreement $6.50 per ton 1977 Tolk Agreement $7.50 per ton ARCO starts delivering coal to TUCO under State agreementTUCO NEGOTIATIONS Sierra Club

9 19701971197219731974197519761977197819791980 Original Harrington Agreement $2.00 per ton ARCO SPS TUCO Revised Harrington Agreement $2.698 per ton State Agreement $6.50 per ton 1980 Tolk Agreement $7.50 per ton TUCO (Cabot) STATE NEGOTIATIONS Sierra Club

10 198019811982198319841985198619871988198919901982 TUCO (Cabot) ARCO Tolk Agreement $7.50 per ton ARCO starts delivering coal to TUCO under Tolk Agreement

11 19801981198219831984198519861987198819891990 TUCO (Cabot) ARCO Tolk Agreement $7.50 per ton Letter of Agreement - Labor and Fringe Benefits adjusted by indices Letter of Agreement Labor & Fringe Benefits TOLK

12 19801981198219831984198519861987198819891990 TUCO (Cabot) ARCO Tolk Agreement $7.50 per ton ARCO starts delivering coal to TUCO under Revised Harrington Agreement Letter of Agreement Labor & Fringe Benefits TOLK

13 19801981198219831984198519861987198819891990 TUCO (Cabot) ARCO Tolk Agreement $7.50 per ton Letter of Agreement Labor & Fringe Benefits Tolk Second Amendment TOLK R. HAR.

14 19801981198219831984198519861987198819891990 TUCO (Cabot) ARCO Tolk Agreement $7.50 per ton Letter of Agreement Labor & Fringe Benefits TOLK R. HAR. Performance under Revised Harrington and Tolk Agreements

15 199019911992199319941995199619971998199920001994 TUCO (Cabot) ARCO TUCO sues ARCO- “Pricing Claims” Performance under Revised Harrington and Tolk Agreements

16 19901991199219931994199519961997199819992000 TUCO (Cabot) ARCO 1997 Revised Harrington Agreement $2.698 per ton Revised Harrington Agreement ends TUCO sues ARCO Performance under Revised Harrington and Tolk Agreements

17 19901991199219931994199519961997199819992000 TUCO (Cabot) ARCO Revised Harrington Agreement $2.698 per ton TOLK Performance under Tolk Agreements TUCO sues ARCO

18 20002001200220032004200520062007200820092010 TUCO (Cabot) ARCO Performance under Tolk Agreements


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