Lipari Energy mines bituminous coal in the Central Appalachian coal region. We employ over 150 people and control and operate coal mining entities in the Clay, Owsley, Leslie, Knox, Knott and Perry Counties of Southeastern Kentucky. 80% of our coal production is sold to utility operators.
Lipari engages in coal production by locating, assembling, leasing, assessing, permitting and developing coal properties in the Central Appalachian region and has reviewed coal reserves located throughout the Eastern United States. After obtaining permits from the appropriate state or federal organization that oversees mining operations, and posting reclamation bonds, Lipari mines its properties for coal and then sells the coal primarily to utility companies pursuant to long-term contracts on a per ton basis at previously negotiated rates or at spot rates to customers not under contact.
The B & W properties are located within the Eastern Kentucky Coal Field, which is characterized by gently dipping (typically less than 2%) beds of Pennsylvanian Age. In a physiographic sense, the B & W properties are located in the Cumberland Plateau Physiographic Province.
Coals within the B & W properties occur in the Pennsylvanian Age Princess, Four Corners, Hyden, and Pikeville Formations of the Breathitt Group, and in the underlying Grundy Formation. The marine Stoney Fork Member lies at the base of the Princess Formation, the marine Magoffin Member separates the Four Corners Formation from the Hyden Formation, and the Kendrick Shale Member marks the boundary between the Hyden and Pikeville Formations. The Betsie Shale Member at the base of the Pikeville Formation separates the Pikeville from the Grundy Formation. Stratigraphic units within the B & W properties usually dip less than 1% to the north – northwest with minor changes in direction and steepness throughout the area. No faults have been mapped within the B & W properties.