The Cordero Mine

In late 1971, the Sun Company, then known as Sun Oil Company, acquired a large surface mineable federal coal lease with the thought that those coal measures within its boundaries would provide a future feedstock of either coal or coal liquification. Our Cordero lease was one of the last Federal coal leases let before the recent decade long leasing moratorium. Because of the tremendous demand for compliance steam coal for the electric power industry, a decision was made to develop the property to serve that market. In 1974, Sunoco Energy Development Company (SUNEDCO), the non- oil and gas energy unit of the Sun Company, began engineering studies for development of the lease. The mine was originally designed at a 12.0 million ton per year capacity. The Cordero Mining Company was formed to mine and operate the property. Construction of the facilities adjacent to the lease began in January 1975. Due to the Sierra Club versus Department of Interior Secretary L. B. Morton suit, work within the lease was delayed until mid-1976 when pre-stripping of the overburden began.