-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uzd1D+fBinkQ662mu3JhEMvjsiA4z58VsrZsRf6epXHvznFe3BQyxWUJz+yftFrk l9lR6wFQEZUFBlV2KHOyTQ== 0000004904-96-000113.txt : 19961202 0000004904-96-000113.hdr.sgml : 19961202 ACCESSION NUMBER: 0000004904-96-000113 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19961127 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL OHIO COAL CO CENTRAL INDEX KEY: 0000018713 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: 1935 Act SEC FILE NUMBER: 070-08611 FILM NUMBER: 96673254 BUSINESS ADDRESS: STREET 1: C/O AMERICAN ELECTRIC POWER SERVICE CORP STREET 2: 1 RIVERSIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 35-CERT 1 QUARTERLY REPORT CENTRAL OHIO COAL COMPANY QUARTERLY REPORT PER REQUIREMENTS OF HOLDING COMPANY ACT RELEASE NO. 26573 FOR THE QUARTER ENDED SEPTEMBER 30, 1996 CONTENTS Page Statements of Income and Retained Earnings 1 Balance Sheets 2-3 Information Concerning Mine Operations and Capital Improvements 4 Calculation of Cost of Capital and Statement of Cost of Commercial Coal Sold and Shipped 5 Statement of Cost of Operation 6 Analysis of Mining Plant in Service 7 CENTRAL OHIO COAL COMPANY STATEMENT OF INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (UNAUDITED) (in thousands) OPERATING REVENUES $15,479 COST OF OPERATION 14,835 OPERATING INCOME 644 NONOPERATING INCOME 679 INCOME BEFORE INTEREST CHARGES 1,323 INTEREST CHARGES - to Parent Company 12 INCOME BEFORE FEDERAL INCOME TAXES 1,311 FEDERAL INCOME TAXES 710 NET INCOME $ 601 STATEMENT OF RETAINED EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (UNAUDITED) (in thousands) BALANCE AT BEGINNING OF PERIOD $ 7 NET INCOME 601 CASH DIVIDENDS DECLARED 408 BALANCE AT END OF PERIOD $200 The common stock of the Company is wholly owned by Ohio Power Company. CENTRAL OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) September 30, 1996 (in thousands) ASSETS MINING PLANT: Mining Plant in Service $70,918 Construction Work in Progress 2 Total Mining Plant 70,920 Accumulated Depreciation and Amortization 50,490 NET MINING PLANT 20,430 CURRENT ASSETS: Cash and Cash Equivalents 33,802 Accounts Receivable: General 1,941 Affiliated Companies 2,331 Coal 136 Materials and Supplies 8,453 Other 1,631 TOTAL CURRENT ASSETS 48,294 DEFERRED INCOME TAXES 19,920 REGULATORY ASSETS 1,846 DEFERRED CHARGES 218 TOTAL $90,708 CENTRAL OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) September 30, 1996 (in thousands) CAPITALIZATION AND LIABILITIES SHAREHOLDER'S EQUITY: Common Stock - Par Value $0.10: Authorized - 100,000 Shares Outstanding - 69,000 Shares $ 7 Retained Earnings 200 TOTAL SHAREHOLDER'S EQUITY 207 LONG-TERM DEBT: Finance Obligations 312 Advances from Parent Company 1,500 TOTAL LONG-TERM DEBT 1,812 OTHER NONCURRENT LIABILITIES: Obligations Under Capital Leases 7,240 Operating Reserves 33,103 TOTAL OTHER NONCURRENT LIABILITIES 40,343 CURRENT LIABILITIES: Long-term Debt Due Within One Year 104 Accounts Payable 2,403 Dividends Declared 20,370 Taxes Accrued 2,536 Accrued Reclamation Costs 2,505 Workers' Compensation Claims 1,405 Obligations Under Capital Leases 3,233 Other 2,450 TOTAL CURRENT LIABILITIES 35,006 REGULATORY LIABILITIES AND DEFERRED CREDITS 13,340 TOTAL $90,708 CENTRAL OHIO COAL COMPANY INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 1996 There were no significant changes with regard to the Company's operations and mining plant during the quarter. In September 1996, the Company was granted permission to reduce the par value of its authorized common shares from $100 per share to $0.10 per share, thereby reducing its stated capital from $6.9 million to $6,900. Also the Company was granted permission to return to its parent $19,962,000 out of capital surplus through December 31, 1998. The HCAR Release No. 26573 authorizes this return of capital. On October 1, 1996 the Company returned $19,662,000 to its parent out of capital along with a $408,000 dividend from retained earnings. CENTRAL OHIO COAL COMPANY CALCULATION OF COST OF CAPITAL AND STATEMENT OF COST OF COMMERCIAL COAL SOLD AND SHIPPED FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (in thousands, except as noted)
July through September 1996 I. Calculation of Cost-of-Capital Compensation: A. Equity Investment at Beginning of Period: Common Stock $ 6,900 Paid-in Capital (excluding item D and item G) 450 7,350 B. Rate of Return Allowable per HCAR No. 22770: 12.81% per annum, 3.2025% per quarter .032025 C. Earnings Allowable: (re investment in item A) 1. Current Quarter $ 236 2. Year-to-Date $ 706 D. Equity Investment - January 1983 (Preparation Plant) $ 6,431 E. Rate of Return Allowable per HCAR No. 22770: 11.90% per annum, 2.975% per quarter .02975 F. Earnings Allowable: (re investment in item D) 1. Current Quarter $ 190 2. Year-to-Date $ 574 G. Equity Investment - January 1983 (Other Assets) $ 6,188 H. Rate of Return Allowable per HCAR No. 22770: 11.26% per annum, 2.815% per quarter .02815 I. Earnings Allowable: (re investment in item G) 1. Current Quarter $ 175 2. Year-to-Date $ 523 J. Total Earnings Allowable: 1. Current Quarter (C.1. + F.1. + I.1.) $ 601 2. Year-to-Date (C.2. + F.2. + I.2.) $ 1,803 K. Net Income per Statement of Income $ 601 Add: Interest Charges 12 Less: Nonoperating Income 679 L. Applied Cost-of-Capital Billing Adder: 1. Current Quarter $ (66) 2. Year-to-Date $ (413) II. Coal Billing Calculation: A. Total Operating Expenses (a) $ 15,545 B. Add: Cost-of-Capital Billing Adder as Applied per L. 1. of Section I (66) C. Cost Applicable to Current Quarter Coal Billings 15,479 Less: Cost Applicable to Coal Sold to Unaffiliated Companies 1,516 Cost Applicable to Current Quarter Coal Billings to Ohio Power $ 13,963 D. Coal Sold and Shipped in Current Quarter to Ohio Power (in tons) 253,724 E. Average Price per Ton to Ohio Power (in dollars) (C/D) $55.03 (a) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statements of Income. /TABLE CENTRAL OHIO COAL COMPANY STATEMENT OF COST OF OPERATION FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (in thousands) Direct Labor-UMW* $ 294 Indirect Labor-UMW* 1,507 Benefits-UMW* 1,549 Salaries and Benefits-Nonunion 1,098 Operating Supplies 1,571 Repair Parts and Materials 964 Electricity and Other Utilities 570 Outside Services-Maintenance, Haulage and Reclamation 355 Taxes Other Than Federal Income Taxes** 476 Rental of Equipment 2,022 Depreciation, Depletion and Amortization 4,735 Mining Cost Normalization*** (2,147) Reclamation Cost-Net (134) Other Production Costs 2,014 Subtotal 14,874 Transfers of Production Costs (to)/from Coal Inventory (39) Total $14,835 * United Mine Workers of America. ** Excludes FICA, Federal Unemployment and State Unemployment. These costs are reflected in employee benefits. *** Represents the deferral/accrual required to establish a selling price based on forecasted results for the remainder of the year. The amount of mining cost normalization is established on an "overall" company basis(i.e., not itemized) and is eliminated by year-end. CENTRAL OHIO COAL COMPANY ANALYSIS OF MINING PLANT IN SERVICE AND RELATED ACCUMULATED PROVISIONS FOR DEPRECIATION AND AMORTIZATION September 30, 1996 Net Gross Accumulated Carrying Cost Provisions Amount (in thousands) Description Surface Lands $ 324 $ - $ 324 Mining Structures and Equipment 62,648 48,355 14,293 Coal Interests (net of depletion) 5,654 - 5,654 Mine Development Costs 2,292 2,135 157 Total Mining Plant in Service $70,918 $50,490 $20,428 SOUTHERN OHIO COAL COMPANY QUARTERLY REPORT PER REQUIREMENTS OF HOLDING COMPANY ACT RELEASE NO. 26573 FOR THE QUARTER ENDED SEPTEMBER 30, 1996 CONTENTS Page Statements of Income and Retained Earnings 1 Balance Sheets 2-3 Information Concerning Mine Operations and Capital Improvements 4 Calculation of Cost of Capital and Statement of Cost of Commercial Coal Sold and Shipped 5 Statement of Cost of Operation 6 Analysis of Mining Plant in Service 7 SOUTHERN OHIO COAL COMPANY STATEMENT OF INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (UNAUDITED) (in thousands) OPERATING REVENUES - Sales to Parent $44,388 COST OF OPERATION 38,192 OPERATING INCOME 6,196 INTEREST CHARGES 1,362 OPERATING INCOME BEFORE FEDERAL INCOME TAXES 4,834 FEDERAL INCOME TAXES ON OPERATIONS 2,818 NET INCOME FROM OPERATIONS 2,016 NONOPERATING INCOME 576 NET INCOME $ 2,592 STATEMENT OF RETAINED EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (UNAUDITED) (in thousands) BALANCE AT BEGINNING OF PERIOD $23,199 NET INCOME 2,592 CASH DIVIDENDS DECLARED 1,727 BALANCE AT END OF PERIOD $24,064 The common stock of the Company is wholly owned by Ohio Power Company. SOUTHERN OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) September 30, 1996 (in thousands) ASSETS MINING PLANT: Mining Plant in Service $362,832 Construction Work in Progress 9 Total Mining Plant 362,841 Accumulated Depreciation and Amortization 191,678 NET MINING PLANT 171,163 OTHER PROPERTY AND INVESTMENTS 61,739 CURRENT ASSETS: Cash and Cash Equivalents 35,687 Accounts Receivable: General 4,667 Insurance 13,079 Affiliated Companies 6,917 Coal 1,242 Materials and Supplies 10,007 Other 3,023 TOTAL CURRENT ASSETS 74,622 REGULATORY ASSETS 58,428 DEFERRED CHARGES 3,893 TOTAL $369,845 SOUTHERN OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) September 30, 1996 (in thousands) CAPITALIZATION AND LIABILITIES SHAREHOLDER'S EQUITY: Common Stock - Par Value $1: Authorized and Outstanding - 5,000 Shares $ 5 Premium on Common Stock 9,996 Other Paid-in Capital 81,834 Retained Earnings 24,064 TOTAL SHAREHOLDER'S EQUITY 115,899 LONG-TERM DEBT - Notes Payable to Banks 61,681 OTHER NONCURRENT LIABILITIES: Obligations Under Capital Leases 20,650 Operating Reserves 44,021 TOTAL OTHER NONCURRENT LIABILITIES 64,671 CURRENT LIABILITIES: Long-term Debt Due Within One Year 20,000 Short-term Debt - Notes Payable to Parent 2,500 Accounts Payable 5,556 Dividends Declared 22,586 Accrued Vacation Pay 3,131 Workers' Compensation Claims 9,079 Obligations Under Capital Leases 9,046 Other 6,446 TOTAL CURRENT LIABILITIES 78,344 DEFERRED INCOME TAXES 47,685 DEFERRED CREDITS 1,565 TOTAL $369,845 SOUTHERN OHIO COAL COMPANY INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 1996 There were no significant changes with regard to the Company's operations and mining plant during the quarter. In September 1996, the Company was granted permission to return to its parent up to $68,000,000 out of capital surplus through December 31, 1998. The HCAR Release No. 26573 authorizes this return of capital. On October 1, 1996 the Company returned $22,586,000 to its parent. SOUTHERN OHIO COAL COMPANY CALCULATION OF COST OF CAPITAL AND STATEMENT OF COST OF COMMERCIAL COAL SOLD AND SHIPPED FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (in thousands, except as noted)
July through September 1996 I. Calculation of Cost-of-Capital Compensation: A. Investment at Beginning of Period: Common Stock $ 5 Premium on Common Stock 9,996 Other Paid-in Capital (excluding item D and item G) 55,233 65,234 B. Rate of Return Allowable per HCAR Nos. 20515 and 21008: 12.11% per annum, 3.0275% per quarter .030275 C. Earnings Allowable: (re investment in item A) 1. Current Quarter $ 1,975 2. Year-to-Date $ 5,923 D. Equity Investment for the months of June 1981, December 1981 and September 1982 $ 26,240 E. Rate of Return Allowable per HCAR Nos. 21008, 21537, 22129 and 22401: 12.04% per annum, 3.01% per quarter .0301 F. Earnings Allowable: (re investment in item D) 1. Current Quarter $ 789 2. Year-to-Date $ 2,373 G. Equity Investment for the months of March 1982, June 1982 and December 1982 $ 21,220 H. Rate of Return Allowable per HCAR Nos. 21008, 21537, 22129 and 22401: 13.58% per annum, 3.395% per quarter .03395 I. Earnings Allowable: (re investment in item G) 1. Current Quarter $ 721 2. Year-to-Date $ 2,161 J. Total Earnings Allowable: 1. Current Quarter (C.1. + F.1. + I.1.) $ 3,485 2. Year-to-Date (C.2. + F.2. + I.2.) $ 10,457 K. Net Income per Statement of Income (a) $ 2,592 Add: Interest Charges 1,362 Less: Nonoperating Income 576 L. Applied Cost-of-Capital Billing Adder: 1. Current Quarter $ 3,378 2. Year-to-Date $ 10,751 II. Coal Billing Calculation - Meigs Division: A. Total Operating Expenses (b) $ 41,010 B. Add: Cost-of-Capital Billing Adder as Applied per L. 1. of Section I 3,378 C. Cost Applicable to Current Quarter Coal Billings to Ohio Power $ 44,388 D. Coal Sold and Shipped in Current Quarter to Ohio Power (in tons) 1,213,087 E. Average Price per Ton to Ohio Power (in dollars) (C/D) $36.59 (a) The Company sold its Martinka mining division and most of the Martinka related coal reserves to an unaffiliated company. No return on equity investment associated with these operations has been billed since the division ceased mining coal effective July 1, 1992. All results associated with the Martinka division since then are billed to the Parent Company, Ohio Power Company, eliminating any earnings effect to the Company. (b) As represented by "Cost of Operation" plus "Federal Income Taxes On Operations" reported in Statement of Income. /TABLE SOUTHERN OHIO COAL COMPANY STATEMENT OF COST OF OPERATION FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (in thousands) Direct Labor-UMW* $ 1,330 Indirect Labor-UMW* 4,907 Benefits-UMW* 4,591 Salaries and Benefits-Nonunion 4,791 Operating Supplies 3,670 Repair Parts and Materials 6,307 Electricity and Other Utilities 1,523 Outside Services-Maintenance, Haulage and Reclamation 4,221 Taxes Other Than Federal Income Taxes** 1,933 Rental of Equipment 3,963 Depreciation, Depletion and Amortization 5,050 Mining Cost Normalization*** (11,141) Other Production Costs 7,063 Subtotal 38,208 Transfers of Production Costs (to)/from Coal Inventory (16) Total $38,192 * United Mine Workers of America. ** Excludes FICA, Federal Unemployment and State Unemployment. These costs are reflected in employee benefits. *** Represents the deferral/accrual required to establish a selling price based on forecasted results for the remainder of the year. The amount of mining cost normalization is established on an "overall" company basis(i.e., not itemized) and is eliminated by year-end. SOUTHERN OHIO COAL COMPANY ANALYSIS OF MINING PLANT IN SERVICE AND RELATED ACCUMULATED PROVISIONS FOR DEPRECIATION AND AMORTIZATION September 30, 1996 Net Gross Accumulated Carrying Cost Provisions Amount (in thousands) Description Surface Lands $ 7,386 $ - $ 7,386 Mining Structures and Equipment 217,172 136,290 80,882 Coal Interests (net of depletion) 4,125 - 4,125 Mine Development Costs 134,149 55,388 78,761 Total Mining Plant in Service $362,832 $191,678 $171,154 WINDSOR COAL COMPANY QUARTERLY REPORT PER REQUIREMENTS OF HOLDING COMPANY ACT RELEASE NO. 26573 FOR THE QUARTER ENDED SEPTEMBER 30, 1996 CONTENTS Page Statements of Income and Retained Earnings 1 Balance Sheets 2-3 Information Concerning Mine Operations and Capital Improvements 4 Calculation of Cost of Capital and Statement of Cost of Commercial Coal Sold and Shipped 5 Statement of Cost of Operation 6 Analysis of Mining Plant in Service 7 WINDSOR COAL COMPANY STATEMENT OF INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (UNAUDITED) (in thousands) OPERATING REVENUES $19,934 COST OF OPERATION 19,502 OPERATING INCOME 432 NONOPERATING INCOME 42 INCOME BEFORE INTEREST CHARGES 474 INTEREST CHARGES - to Parent Company 5 INCOME BEFORE FEDERAL INCOME TAXES 469 FEDERAL INCOME TAXES 128 NET INCOME $ 341 STATEMENT OF RETAINED EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (UNAUDITED) (in thousands) BALANCE AT BEGINNING OF PERIOD $586 NET INCOME 341 BALANCE AT END OF PERIOD $927 The common stock of the Company is wholly owned by Ohio Power Company. WINDSOR COAL COMPANY BALANCE SHEET (UNAUDITED) September 30, 1996 (in thousands) ASSETS MINING PLANT: Mining Plant in Service $60,071 Construction Work in Progress 132 Total Mining Plant 60,203 Accumulated Depreciation and Amortization 29,727 NET MINING PLANT 30,476 CURRENT ASSETS: Cash and Cash Equivalents 15 Accounts Receivable: General 3,327 Affiliated Companies 5,019 Coal 822 Materials and Supplies 3,766 Other 330 TOTAL CURRENT ASSETS 13,279 REGULATORY ASSETS 1,772 DEFERRED CHARGES 450 TOTAL $45,977 WINDSOR COAL COMPANY BALANCE SHEET (UNAUDITED) September 30, 1996 (in thousands) CAPITALIZATION AND LIABILITIES SHAREHOLDER'S EQUITY: Common Stock - Par Value $100: Authorized - 5,000 Shares Outstanding - 4,064 Shares $ 406 Paid-in Capital 10,470 Retained Earnings 927 TOTAL SHAREHOLDER'S EQUITY 11,803 LONG-TERM DEBT: Finance Obligations 7,853 Advances from Parent Company 225 TOTAL LONG-TERM DEBT 8,078 OTHER NONCURRENT LIABILITIES: Obligations Under Capital Leases 1,475 Operating Reserves 13,785 TOTAL OTHER NONCURRENT LIABILITIES 15,260 CURRENT LIABILITIES: Long-term Debt Due Within One Year 570 Accounts Payable: General 1,776 Affiliated Companies 218 Accrued Vacation Pay 685 Workers' Compensation Claims 2,490 Obligations Under Capital Leases 829 Other 652 TOTAL CURRENT LIABILITIES 7,220 REGULATORY LIABILITIES 2,469 DEFERRED CREDITS 1,147 TOTAL $45,977 PAGE> WINDSOR COAL COMPANY INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 1996 There were no significant changes with regard to the Company's operations and mining plant during the quarter. WINDSOR OHIO COAL COMPANY CALCULATION OF COST OF CAPITAL AND STATEMENT OF COST OF COMMERCIAL COAL SOLD AND SHIPPED FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (in thousands, except as noted)
July through September 1996 I. Calculation of Cost-of-Capital Compensation: A. Equity Investment at Beginning of Period: Common Stock $ 406 Paid-in Capital (excluding item D) 8,353 Excess of Acquisition Cost Over Net Book Value 172 8,931 B. Rate of Return Allowable per HCAR No. 22179: 12.04% per annum, 3.01% per quarter (a) .0301 C. Earnings Allowable on Equity Investment 1. Current Quarter $ 269 2. Year-to-Date $ 806 D. Equity Investment for the month of December 1982 $ 2,117 E. Rate of Return Allowable per HCAR No. 22179: 13.58% per annum, 3.395% per quarter .03395 F. Earnings Allowable: (re investment in item D) 1. Current Quarter $ 72 2. Year-to-Date $ 216 G. Total Earnings Allowable: 1. Current Quarter (C.1. + F.1.) $ 341 2. Year-to-Date (C.2. + F.2.) $ 1,022 H. Net Income per Statement of Income $ 341 Add: Interest Charges 5 Less: Nonoperating Income 42 I. Applied Cost-of-Capital Billing Adder: 1. Current Quarter $ 304 2. Year-to-Date $ 981 II. Coal Billing Calculation: A. Total Operating Expenses (b) $ 19,630 B. Add: Cost-of-Capital Billing Adder as Applied per I. 1. of Section I 304 C. Cost Applicable to Current Quarter Coal Billings 19,934 Less: Cost Applicable to Coal Sold to Unaffiliated Companies 4,100 Cost Applicable to Current Quarter Coal Billings to Ohio Power $ 15,834 D. Coal Sold and Shipped in Current Quarter to Ohio Power (in tons) 131,981 E. Average Price per Ton to Ohio Power (in dollars) (C/D) $119.97 (a) HCAR No. 22179 pertains to only a portion of the equity investment ($7,497,000), however, the approved rate is being applied to Ohio Power Company's full equity investment, excluding retained earnings. (b) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statement of Income. /TABLE WINDSOR COAL COMPANY STATEMENT OF COST OF OPERATION FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (in thousands) Direct Labor-UMW* $ 503 Indirect Labor-UMW* 1,509 Benefits-UMW* 1,244 Salaries and Benefits-Nonunion 1,212 Operating Supplies 723 Repair Parts and Materials 1,339 Electricity and Other Utilities 421 Outside Services-Maintenance, Haulage and Reclamation 1,218 Taxes Other Than Federal Income Taxes** 1,249 Rental of Equipment 892 Depreciation, Depletion and Amortization 1,772 Royalties 225 Mining Cost Normalization*** 5,359 Other Production Costs 1,985 Subtotal 19,651 Transfers of Production Costs (to)/from Coal Inventory (149) Total $19,502 * United Mine Workers of America. ** Excludes FICA, Federal Unemployment and State Unemployment. These costs are reflected in employee benefits. *** Represents the deferral/accrual required to establish a selling price based on forecasted results for the remainder of the year. The amount of mining cost normalization is established on an "overall" company basis(i.e., not itemized) and is eliminated by year-end. WINDSOR COAL COMPANY ANALYSIS OF MINING PLANT IN SERVICE AND RELATED ACCUMULATED PROVISIONS FOR DEPRECIATION AND AMORTIZATION September 30, 1996 Net Gross Accumulated Carrying Cost Provisions Amount (in thousands) Description Surface Lands $ 634 $ - $ 634 Mining Structures and Equipment 47,787 24,714 23,073 Coal Interests (net of depletion) 1,609 - 1,609 Mine Development Costs 10,041 5,013 5,028 Total Mining Plant in Service $60,071 $29,727 $30,344 -----END PRIVACY-ENHANCED MESSAGE-----