Southern Utah Fuel Company Performance Bonus Plan

Coastal States Energy Company (Coastal), a wholly-owned subsidiary of The Coastal Corporation of Houston, Texas, owns coal mining operations in Utah and Kentucky. One of the Utah operations, Southern Utah Fuel Company (SUFCo), located 30 miles west of Salina, Utah, has been operated by Coastal since 1974. This operation is a single-seam, six-section mine operated from one portal area. It produces 2.2 million tons of coal per year and has a payroll of approximately 300 employees, Coal is mined by continuous miners, hauled by diesel-powered haulers and transported by belt conveyor to outside crushing and screening facilities. Sized coal is hauled by contract truckers 80 miles to a unit-train facility located at Levan, Utah.