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For immediate release <br />December 1, 2011 <br />TRI -STATE <br />Generation and Transmission <br />Association, Inc. <br />A Touchstone Energy Cixopcnrivc *q , <br />Western Fuels- Colorado closes on purchase of Colowyo Mine <br />Fuel supplier to continue to deliver coal to Craig Station <br />Western Fuels - Colorado <br />Western Fuels- Colorado LLC, a fuel supplier that delivers coal under contract to the <br />Craig Station and Nucla Station power plants in western Colorado, has completed its <br />purchase of the Colowyo Mine from Rio Tinto. Not - for - profit wholesale power supplier <br />Tri -State Generation and Transmission Association is the majority owner of Western <br />Fuels- Colorado. <br />Western Fuels- Colorado delivers coal produced at Colowyo Mine to the 1,304- megawatt <br />Craig Station, which is operated by Tri- State. <br />"Electricity responsibly produced with coal remains a remarkable value to serve the <br />power needs of the region," said Ken Anderson, executive vice president and general <br />manager of Tri- State. "The purchase of Colowyo Mine ensures Tri -State will have a <br />cost -based supply of coal to generate affordable power for the benefit of Tri- State's <br />member electric cooperatives." <br />In 2010, the Colowyo Mine produced approximately 1.5 million tons of coal under <br />contract for Western Fuels- Colorado for delivery to Tri- State. Total production of <br />Colowyo Mine in 2010 was 2.4 million tons. <br />"The Colowyo Mine will help supply clean- burning coal to Craig Station for the expected <br />life of the power plant," said Mike McInnes, senior vice president of production at Tri - <br />State. "Tri -State will continue to invest in Craig Station and in the development of clean <br />coal technologies." <br />Craig Station, which has undergone a series of major efficiency improvements in recent <br />years, is expected to operate in its current state for the next 30 -40 years. Tri -State is <br />also a partner in the Rocky Mountain Carbon Capture and Sequestration partnership. <br />This $11 million effort is characterizing geologic formations in and around the town of <br />Craig, Colo., for their potential as future carbon dioxide storage options. <br />Energy production sustains significant employment and economic benefits in <br />northwestern Colorado. Craig Station's three generating units are fueled with coal <br />primarily from Colowyo Mine, located approximately 30 miles from the power plant, and <br />Trapper Mine, which is located adjacent to the power plant. Trapper Mine will continue <br />to deliver coal to Craig Station. All three facilities are located in Moffat County, Colo. <br />"This transaction further strengthens the energy economy in northwestern Colorado," <br />said Darcy Owens - Trask, director of the Craig /Moffat Economic Development <br />Partnership. "Our region will continue to stay strong with the high -value jobs that <br />responsibly and safely generate electricity from locally - produced coal." <br />