Abstract

Until recently, there has been little incentive for the Mid-Continent region, blessed with large supplies of oil and gas, to exploit lignite, a low-grade coal of Tertiary age. Increasing prices for natural gas and the Powerplant and Industrial Fuel Use Act changed this situation in the 1970's and today we find major utility use of lignite as a boiler fuel in Texas, development beginning in Louisiana and considerable interest by utilities in Arkansas. The greatest lignite reserve base in the Mid-Continent area in the Texas with 8.6-11.1 billion short tons of near-surface lignite reserves followed by Arkansas with 2.5 billion and Louisiana with 1.1 billion tons.

The first use of lignite in the "modern era" of lignite development occurred in Texas in 1954 near Rockdale where it was developed as a boiler fuel for electricity generation in connection with aluminum refining operations. In 1971, Texas Utilities opened a major lignite-fired generating station near Fairfield, Texas. This has been followed by two other large mines and generating stations in East Texas by the same company, and announcements of additional mines by Texas Utilities and others. Development of lignite will begin in Louisiana in 1981. Five mines are planned in northwest Louisiana for the mid-1980's with Phillips Coal Company the largest lignite reserve holder in the Gulf Coast area, responsible for the two largest mines. Three of the mines will be developed for a electricity generation, two will be for industrial use of lignite. Firm commitments to lignite use in Arkansas are pending with Arkansas Power and Light Company the closest to opting for lignite use. All current operations and announced developments rely on surface mining techniques; most are classic dragline area-stripping operations.

Many of the large blocks of near-surface lignite reserves in Texas and Louisiana have been committed to use for power generation. Use for gasification is under consideration by Exxon at a large deposit near Troup, Texas. Pilot in-situ gasification projects have been conducted in Texas to develop methods for extracting lignite too deep to mine.