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Transcript of 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price...
![Page 1: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/1.jpg)
1965 1970 1975 1980 1985 1990 1995 2000
15
10
5
0
Yearly Inflation Rate - 1960 to 2001Yearly Inflation Rate - 1960 to 2001
1960
Oil Price “Shocks” 1973-1974
Oil Price “Shocks” 1979-1980 Consumer Price Index
![Page 2: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/2.jpg)
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
3.2%
5.7%
4.4%
9.1%
5.8%6.5%
7.6%
11.3%
13.5%Inflation Over TimeInflation Over Time
1979 Ford Mustang1979 Ford Mustang1974 Ford Mustang1974 Ford Mustang1974 Ford Mustang1971 Ford Mustang
OIL PRICE “SHOCKS”OIL PRICE “SHOCKS”
6.2%
11%
OIL PRICE “SHOCKS”OIL PRICE “SHOCKS”
$1.32
$2,700 $3,500 $5,012
$1.39 $1.50
$42,500 $47,432 $73,327
25¢ 28¢ 40¢
Natural
Gas 91¢
Natural
Gas $1.13
Natural
Gas $2.31
19711971 19741974 19791979
(5.3%)
(12%)
(24%)
(13.6%)
(60%)
(154%)
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19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
5.7%
19701970
ARCO diversifies into coal. Core
sampling showed Powder River Basin, in Wyoming, to be a
strong resource
ARCOARCO
SPSSPS
SPS decides to build an electric generation plant
(Harrington Station) using coal vs.
natural gas
Powder River Basin
Harrington Station
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19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 1980198019731973
Powder River Basin
Harrington Station
ARCOARCO
SPSSPS
Original Harrington Agreement
$2.00 per ton
3.2%
5.7%
4.4%
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19731973
Original Harrington Agreement
Show Document
$2.00/ton$2.00/ton
$2.00 per ton
___ yr. Contract
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19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 1980198019731973
Original Harrington Agreement
$2.00 per ton
SPSSPS
ARCOARCO
3.2%
5.7%
4.4% SPS begins construction of
Harrington Station
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19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 1980198019731973
Original Harrington Agreement
$2.00 per ton
SPSSPS
ARCOARCO
OIL PRICE “SHOCKS”
3.2%
5.7%
4.4%
6.2%
![Page 8: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/8.jpg)
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 1980198019741974
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
OIL PRICE “SHOCKS”
SPS creates TUCO, a
wholly owned subsidiary
6.2%
3.2%
5.7%
4.4%
TUCOTUCO
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19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 1980198019741974
ARCO and SPS/TUCO reopen negotiations regarding Harrington Agreement
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”ARCO’s new core
samples show lower quality
Sierra Club Litigation begins
ARCO recognizes
• Skyrocketing inflation
• Sierra Club lawsuit
• New regulations
• Lower coal quality
11%
3.2%
5.7%
4.4%
TUCOTUCO
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19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 1980198019751975
ARCO proposes frequent contract price reopeners to SPS/TUCO
NEGOTIATIONSNEGOTIATIONSOriginal
Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
XX SPS/TUCO SPS/TUCO rejects offerrejects offer
TUCOTUCO
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9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
19751975
TUCOTUCO
NEGOTIATIONSNEGOTIATIONS
![Page 12: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/12.jpg)
9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
19761976
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
TUCOTUCO
NEGOTIATIONSNEGOTIATIONS
Injunction prohibits mining on Federal land
![Page 13: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/13.jpg)
19761976
Revised Harrington Agreement
Show Document
$2.698/ton$2.698/ton
$2.698 per ton
___ yr. Contract
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19761976
State Agreement
Show Document
$6.50/ton$6.50/ton
$6.50 per ton
___ yr. Contract
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9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
NEGOTIATIONSNEGOTIATIONS
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
19761976
5.8%
TUCOTUCO
![Page 16: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/16.jpg)
9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
19771977
5.8%
Tolk Agreement
$7.50 per ton
TUCOTUCO
Powder River Basin
Harrington StationTolk Station
NEGOTIATIONSNEGOTIATIONS
![Page 17: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/17.jpg)
19771977
Tolk Agreement
Show Document
$7.50/ton$7.50/ton
$7.50 per ton
___ yr. Contract
![Page 18: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/18.jpg)
9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
19771977
5.8%
Tolk Agreement
$7.50 per ton
6.5%
ARCO starts delivering coal to TUCO from State land
TUCOTUCO
NEGOTIATIONSNEGOTIATIONS
![Page 19: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/19.jpg)
9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
19781978
5.8%6.5%
Tolk Agreement
$7.50 per ton
7.6%
TUCOTUCO
STATESTATE
NEGOTIATIONSNEGOTIATIONS
![Page 20: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/20.jpg)
9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
TUCOTUCO
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
19791979
5.8%6.5%
Tolk Agreement
$7.50 per ton
7.6%
SPS sells TUCO to Cabot Corporation
TUCO TUCO (Cabot)(Cabot)
STATESTATE
NEGOTIATIONSNEGOTIATIONS
![Page 21: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/21.jpg)
9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
TUCOTUCO
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
19791979
5.8%6.5%
Tolk Agreement
$7.50 per ton
7.6%
TUCO TUCO (Cabot)(Cabot)
11.3%
OIL PRICE “SHOCKS”
STATESTATE
NEGOTIATIONSNEGOTIATIONS
![Page 22: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/22.jpg)
9.1%
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980
Original Harrington Agreement
$2.00 per ton
ARCOARCO
SPSSPS
TUCOTUCO
6.2%
OIL PRICE “SHOCKS”
11%
3.2%
5.7%
4.4%
Sierra Club
Revised Harrington Agreement
$2.698 per ton
State Agreement
$6.50 per ton
19801980
5.8%6.5%
Tolk Agreement
$7.50 per ton
7.6%
TUCO TUCO (Cabot)(Cabot)
11.3%
OIL PRICE “SHOCKS”
13.5%
STATESTATE
NEGOTIATIONSNEGOTIATIONS
![Page 23: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/23.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
![Page 24: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/24.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
19821982
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
ARCO starts delivering coal to TUCO under Tolk Agreement
Sierra Club Litigation resolved
![Page 25: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/25.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
19821982
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
6.2%Letter of Agreement -
Labor and Fringe Benefits adjusted by
indices
Letter of Agreement
Labor & Fringe
Benefits
TOLKTOLK
![Page 26: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/26.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
19831983
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
ARCO starts delivering coal to TUCO under Revised Harrington Agreement
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
TOLKTOLK
![Page 27: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/27.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
TOLKTOLK R. HAR.R. HAR.
![Page 28: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/28.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
19851985
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
ARCO & TUCO negotiate and agree on price reduction to
Tolk Agreement
ARCO Pays ARCO Pays $300 Million$300 Million
TOLKTOLK R. HAR.R. HAR.
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19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
19851985
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
ARCO Pays ARCO Pays $300 Million$300 Million
3.6%
TOLKTOLK R. HAR.R. HAR.
![Page 30: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/30.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
ARCO Pays ARCO Pays $300 Million$300 Million
3.6%
1.9%
TOLKTOLK R. HAR.R. HAR.
![Page 31: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/31.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
ARCO Pays ARCO Pays $300 Million$300 Million
3.6%
1.9%
3.6%
TOLKTOLK R. HAR.R. HAR.
![Page 32: 19651970197519801985199019952000 15 10 5 0 Yearly Inflation Rate - 1960 to 2001 1960 Oil Price “Shocks” 1973-1974 Oil Price “Shocks” 1979-1980 Consumer.](https://reader031.fdocuments.us/reader031/viewer/2022032200/56649cc85503460f94990385/html5/thumbnails/32.jpg)
19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
ARCO Pays ARCO Pays $300 Million$300 Million
3.6%
1.9%
3.6%4.1%
TOLKTOLK R. HAR.R. HAR.
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19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
ARCO Pays ARCO Pays $300 Million$300 Million
3.6%
1.9%
3.6%4.1%
4.8%
TOLKTOLK R. HAR.R. HAR.
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19801980 19811981 19821982 19831983 19841984 19851985 19861986 19871987 19881988 19891989 19901990
Sierra Club
TUCO TUCO (Cabot)(Cabot)
13.5%
ARCOARCO
10.3%
Tolk Agreement
$7.50 per ton
Letter of Agreement
Labor & Fringe
Benefits
6.2%
3.2%
4.3%
ARCO Pays ARCO Pays $300 Million$300 Million
3.6%
1.9%
3.6%4.1%
4.8%5.4%
TOLKTOLK R. HAR.R. HAR.
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 19901990
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 19901990
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 19901990
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0%
___? Million Tons of coal delivered between 1977 and 1993
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 1990199019931993
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0%
TUCO refuses full deliveries of coal from ARCO
XX
ARCO sues TUCO for
reneging on contract
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 1990199019931993
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
3.0%
4.2%
ARCO sues TUCO for
reneging on contract
Court Judgement in favor of ARCO - Contract Enforced
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
XX
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 1990199019931993
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 2000200019941994
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
TUCO attends Jay Roman
seminar
Jay Roman Seminar
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 2000200019941994
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Jay Roman Seminar
TUCO sues ARCO- “Pricing Claims”
TUCO TUCO sues sues
ARCOARCOCourt orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 2000200019941994
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Jay Roman Seminar
2.6%
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Jay Roman Seminar
2.6% 2.8%
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Jay Roman Seminar
2.6% 2.8% 2.9%
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Jay Roman Seminar
2.6% 2.8% 2.9%
19971997
Revised Harrington Agreement
$2.698 per ton
Revised Harrington Agreement
ends
TOLKTOLK
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Jay Roman Seminar
2.6% 2.8% 2.9%
19971997
Revised Harrington Agreement
$2.698 per ton
2.3%
TOLKTOLK
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%2.6% 2.8% 2.9%
Revised Harrington Agreement
$2.698 per ton
2.3%1.6%
TOLKTOLK
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%2.6% 2.8% 2.9%
Revised Harrington Agreement
$2.698 per ton
2.3%1.6%
2.2%
TOLKTOLK
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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19901990 19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
5.4%
4.2%
3.0% 3.0%
Jay Roman Seminar
2.6% 2.8% 2.9%
Revised Harrington Agreement
$2.698 per ton
2.3%1.6%
2.2%
3.4%
TOLKTOLK
Court orders Court orders TUCO to pay TUCO to pay $20 Million $20 Million to ARCOto ARCO
TUCO TUCO sues sues
ARCOARCO
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20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
3.4%
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20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
3.4%2.8%
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20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010
TUCO TUCO (Cabot)(Cabot)
ARCOARCO
3.4%2.8%
TUCO asserts “True Up”
theory