$38 mil/year to Mng Kemper Beginning in 2014 Liberty Fuels

Coal commitments for Mississippi Power include a minimum annual management fee of $38 million beginning in 2014 from the executed 40-year management contract with Liberty Fuels, LLC related to the Kemper IGCC.

http://files.shareholder.com/downloads/SO/0x0x458457/AABD3F0C-B3E6-44D6-8151-928AEBBD05B2/SouthernCo_2011_NOTICE_PROXY.pdf

OK well lets look into Liberty Fuels further.

ESTABLISHMENT OF THE LIGNITE MINING FEES

The staff requested a Liberty Fuels Company, LLC Lignite Mining Fee in the amount of $12,500 per month for the months of March through June in the state 2010 fiscal year.  Although the mine is not presently in operation, the staff reported that it is working on water-related permits and preparing for a mining permit submittal for the approximately 18,200 acre mine for the Liberty Fuels Mine in Kemper and Lauderdale Counties.

The staff further recommended the establishment of a Liberty Fuels Company, LLC Lignite Mining Fee in the amount of $150,000 for the 2011 state fiscal year.

The staff also recommended that Lignite Mining Fee for the 2011 state fiscal year for the Mississippi Lignite Mining Company for the Red Hills in Choctaw County be set at $100,000, a decrease of $50,000 from the previous year. This amount will cover approximately 60% of the anticipated cost of administering the federally-approved coal mining program in Mississippi.  The remaining approximately 40% of the cost will be covered by a federal Office of Surface Mining Reclamation and Enforcement (OSMRE) grant.  These fees will cover 100% of the anticipated cost of administering the program above the amount of the federal OSMRE grant.  The staff recommended that the Commission delegate the authority to sign the Orders to the Executive Director.  The Commission approved all fees and other matters.

https://mississippicoal.wordpress.com/2011/10/16/liberty-fuels/

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