Document DGkzBQx5LpdJ3J4BKJ46QB1wB

production r e c o r d s , meet jror low sulfur western U.s. coals. Temporary rail congestion in the growing gasin during the latter half of the year, resulting from this signifi cant increase in customer demand, inhibited potentially higher ship ments for ARCO and other coal producers. In Colorado, the West Elk mine's underground longvall system was extended to over 900 feet in width in late summer and aided in increasing the mine's annual production 42% over 1993. Despite the volumetric growth. U.S. profitability declined from 1993 as a result of the reopen ing to market prices of a major Black Thunder contract. Natural gaa at Prudhea Say la byproduct of the oil produc tion) it procotsod and r*. injactad into ttia raaarvoir in ordar to alow the fiald't natural decline and anabla incramantal oil production. With installa tion of tha final GHX-2 facilltiat in September 1994. Prudhoe Bay'a everege gat handling capacity waa incrsatad to 7.S billion cubic fast par dan Tha tl billion ARCO-meneged GHX-2 pro|act should incraaaa total liquids production from tha fiaid by 100.000 barralt par day Total Raid racovary wilt incraaaa by an aatimatad 43S million barralt. of which ARCO'l net mterett is23V In Australia. ARCO's coal opera tions were hampered by a difficult business environment characterized by softer export prices and a strengthening Australian dollar. However, the underground Gordonstone mine completed its first full year of production in 1994. with gross production totaling 3.5 million tons. ARCO.also operates the Curr&gh surface mine and has a non-operating interest in the Blair Athol surface mine. ARCO and the operator of Blair Athol acquired a 55% interest in the nearby Clermont project, adding 38 million tons to ARCO's net coal reserves. demands pMYC 00012857 CO t)