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Black Hills Corp. Revises 2008 and 2009 Earnings Guidance

news.prnewswire.com | Nov 25, 2008

/PRNewswire-FirstCall/ -- Black Hills Corp. (NYSE: BKH) today revised its 2008 guidance and outlook for 2009 in light of lower natural gas and crude oil prices, extraordinary developments in the financial sector, and related downturn in general economic conditions.

http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/11-24-2008/0004931992&EDATE=

Lawrence VP of Black Hills Energy brings global perspective

www2.ljworld.com | Nov 23, 2008

But other than just his duties leading a company’s operations in the middle of the United States, Black Hills Vice President Ivan Vancas says he has a global view on his work in the energy sector — sitting right here in his Lawrence office.

http://www2.ljworld.com/news/2008/nov/23/lawrence-vp-black-hills-energy-brings-global-persp/

Samsung's Latest Smartphone Comes to Verizon

www.mobile-weblog.com | Nov 15, 2008

Verizon Wireless today announced a new smartphone for business users from Samsung: The Saga. It features a 2.55-inch full

http://www.mobile-weblog.com/50226711/samsungs_latest_smartphone_comes_to_verizon.php

Black Hills Corp. Announces New Vice President of Finance (PR Newswire)

biz.yahoo.com | Nov 8, 2008

Black Hills Corp. Announces New Vice President of Finance. - RAPID CITY, S.D., Nov. 7 /PRNewswire-FirstCall/ -- Black Hills Corp. (NYSE: BKH - News) today announced the promotion of Jeff Berzina to the position of vice president of finance effective immediately.

http://biz.yahoo.com/prnews/081107/aqf083.html?.v=1

Web Sites

Total : 1,031 View more »

Real Deadwood Podcast - Sturgis Rally video

www.realdeadwoodpodcast.com

The Real Deadwood Podcast is a variety show from the real Deadwood in the Black Hills of South Dakota for fans of the award-winning HBO Deadwood series combining interviews, entertainment, and news from both Deadwoods.

http://www.realdeadwoodpodcast.com/rally.html

Black Hills Electric Cooperative Homepage

Black Hills Electric Cooperative has been a part of South Dakota history for 63 years. Its headquarters is located near Custer in the majestic Black Hills of western South Dakota.

http://www.bhec.com/

MyYellow - About Yellow

www.myyellow.com

Our Rapid City, S.D. (RAP), service center is an end-of-line center, providing pickup and delivery in the Black Hills of South Dakota, in a 100-mile radius that includes Hot Springs, Custer, Sturgis, Spearfish, Belle Fourche and the old mining areas of Deadwood and Lead.

http://www.myyellow.com/dynamic/services/content/aboutyellow/featurestories/2005/termrap.jsp;jsessionid=L0F0KGCG!-847968371

S--SOLE SOURCE AWARD. - Zibb.com

www.zibb.com

NOTICE TYPE: Combine Solicitation DATE POSTED: 12-NOV-08 AGENCY: Department of Veterans Affairs OFFICE ADDRESS: Department of Veterans Affairs;VA Black Hills HCS;Hot Springs Campus;500 N. 5th St.;Hot Springs SD 57747 SUBJECT: S--Sole source award. CLASSIFICATION CODE: S - Utilities and housekeeping

http://www.zibb.com/article/4375969/S+SOLE+SOURCE+AWARD

 

Black Hills National Forest, Bearlodge Ranger District, Sundance, WY--Rattlesnake Forest Management

SUMMARY: This notice of intent revises the previously published notice of intent for the Rattlesnake Project (73 FR 65284, Nov. 3, 2008). Due to a printing error, the previously published notice contained an incorrect electronic mail address. This notice corrects the address and extends the comment due date.

The Forest Service will prepare an environmental impact statement (EIS) on a proposal to implement multiple resource management actions in the Rattlesnake Project Area to implement the amended Black Hills National Forest Land and Resource Management Plan. The proposed action includes approximately 11,000 acres of commercial timber harvest, 5,000 acres of non-commercial vegetation management, 6,000 acres of prescribed burning, three miles of road construction, road improvements, and watershed improvements. Prescribed burning is proposed in a roadless area.

DATES: Comments concerning the scope of the analysis must be received by December 22, 2008. The draft EIS is expected to be available for public review in March 2009, and the final EIS is expected to be completed by June 2009.

ADDRESSES: Send written comments to Rattlesnake Project, c/o Content Analysis Group, 172 E. 500 S., Bountiful, UT 84010. Fax number: (801) 397-1605. Electronic mail: bhnf@contentanalysisgroup.com. Comments may be hand-delivered to the Bearlodge Ranger District office, 101 South 21St Street, Sundance, Wyoming, between the hours of 8 a.m. and 4:30 p.m., Monday through Friday, excluding federal holidays.

FOR FURTHER INFORMATION CONTACT: Elizabeth Krueger, Resource Planner, Bearlodge Ranger District, Black Hills National Forest. Telephone number: (307) 283-1361.

SUPPLEMENTARY INFORMATION: The purpose of actions proposed under the Rattlesnake Forest Management Project is to provide biologically diverse ecosystems, protect basic resources, and provide for sustained commodity uses by reducing crown fire hazard and wildfire threats to private property, reducing risk of mountain pine beetle infestation, producing commercial timber now and creating conditions for future timber production, conserving and enhancing big game winter range, enhancing forest structural diversity, and conserving and enhancing late successional landscapes.

Proposed Action

The Rattlesnake Project Area covers approximately 42,171 acres of National Forest System land and 3,935 acres of interspersed private land east of Sundance, Wyoming. To reduce wildfire hazard, the Forest Service proposes to thin pine stands, construct fuel breaks, reduce fuels adjacent to populated areas and across the landscape, reduce pine competition with aspen and birch stands, and conduct prescribed burning. To reduce risk of beetle infestation, activities would include thinning and regeneration of pine stands. To produce commercial timber and create conditions for future timber production, proposed activities include regeneration and shelterwood removal in pine stands, thinning of merchantable and submerchantable pine, and reduction of bur oak competition. To conserve and enhance winter range, activities would include uneven-age management of pine stands, reduction of pine and oak competition with desirable forage, and prescribed burning. To enhance forest structural diversity, the proposal includes regeneration harvest in pine and conservation of stands that could develop into late successional forest. Road construction, repair, and improvement would occur in support of these activities. New roads would be closed following harvest, and existing roads not part of the National Forest System could also be closed in conjunction with this project. To conserve and enhance late successional landscapes (management area 3.7), the Forest Service would conduct prescribed burning. Other proposed enhancement activities include watershed improvement through road and stream rehabilitation.

The Rattlesnake Project Area includes the 7,944-acre Sand Creek Roadless Area. Most of the Sand Creek area is unsuitable for timber harvest, and new road construction is prohibited in much of the area by Forest Plan direction, severely limiting opportunities for mechanical treatment. The Forest Service considers access to the area by commercial equipment impractical at this time and has chosen to focus on objectives that could be achieved by non-commercial means. As a result, the only action proposed in the Sand Creek Roadless Area is prescribed burning (2,386 acres), with the purpose of promoting late successional forest attributes.

Background

The Rattlesnake Project area encompasses the area of the Cement Project. The Forest Service approved the Cement Project on February 20, 2004. The project was litigated. Following a July 2005 wildfire that substantially altered forest conditions in the Cement Project area, the Forest Service withdrew the project. The complaint was subsequently dismissed in April 2006.

In the course of the withdrawal of the Cement Project decision and dismissal of the complaint, the Forest Service made several commitments regarding any new proposal in the Cement Project Area. These commitments pertained to addressing certain changed conditions; developing the range of alternatives; and soliciting and considering public comment on the new proposal. The Forest Service intends to honor these commitments in the analysis process for the Rattlesnake Project.

The Rattlesnake Project Area includes the Cement Project Area but is a new and separate proposal from the earlier Cement Project. Initial planning for the Rattlesnake Project began in October 2007 with a review of existing forest conditions and amended Forest Plan direction for management of the area. Circumstances affecting National Forest System lands in the Rattlesnake Project Area have changed substantially since 2004. (1) The Phase II Amendment to the Forest Plan was approved on October 31, 2005. This amendment altered management direction for the Black Hills National Forest, including the Rattlesnake Project area, by adding broad-scale objectives increasing management emphasis on hazardous fuels, forest structural diversity, and habitat for rare species. These changes directly affect the type and extent of vegetation management actions the Forest Service takes in the Black Hills. (2) The Cement Fire of July 2005 burned 2,079 acres of National Forest System land in the Rattlesnake Project area. Approximately 77 percent of this area burned at moderate or high intensity, resulting in the mortality of an estimated 1,925,300 cubic feet of sawtimber. (3) Population adjacent to the Rattlesnake Project Area has increased in the last four years with subdivision of the Red Canyon Ranch. These developments could be affected by hazardous fuel conditions in the project area. (4) Mountain pine beetle populations have increased dramatically in an area about five miles south of the Rattlesnake Project area, causing high levels of pine mortality on several hundred acres. This infestation has the potential to spread to the Rattlesnake area. (5) The Forest Service has issued new regulations implementing the National Forest Management Act. These new regulations replace earlier direction under which the Cement Project decision was analyzed and approved. The new planning regulations make it clear that they have minimal application at the project level. This project would be conducted in accordance with the requirements of the new regulations.

Responsible Official

Steve Kozel, District Ranger, Bearlodge Ranger District, Black Hills National Forest, 101 South 21st Street, PO Box 680, Sundance, Wyoming 82729.

Nature of Decision To Be Made

The decision to be made is whether to approve the proposed action or alternatives at this time. No Forest Plan amendments are proposed.

Scoping Process

Comments and input regarding the proposed action are being requested from the public and other interested parties in conjunction with this notice of intent. The comment period will be open for thirty days, beginning on the date of publication of this notice of intent. Response to the draft EIS will be sought from the interested public beginning approximately in March 2009.

Comment Requested

This notice of intent initiates the scoping process, which guides development of the environmental impact statement. It is our desire to involve interested parties in identifying the issues related to proposed activities. Comments will assist in identification of key issues and opportunities to develop project alternatives and mitigation measures.

Early Notice of Importance of Public Participation in Subsequent Environmental Review: A draft EIS will be prepared for comment. The comment period on the draft EIS will extend 45 days from the date the Environmental Protection Agency publishes the notice of availability in the Federal Register . This notice is expected to appear in February 2009.

The Forest Service believes, at this early stage, it is important to give reviewers notice of several court rulings related to public participation in the environmental review process. First, reviewers of draft EISs must structure their participation in the environmental review of the proposal so that it is meaningful and alerts an agency to the reviewer's position and contentions (Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 553 (1978)). Also, environmental objections that could be raised at the draft EIS stage but that are not raised until after completion of the final EIS may be waived or dismissed by the courts (City of Angoon v. Hodel, 803 F.2d 1016, 1022 (9th Cir. 1986) and Wisconsin Heritages, Inc. v. Harris, 490 F. Supp. 1334, 1338 (E.D. Wis. 1980)). Because of these court rulings, it is very important that those interested in this proposed action participate by the close of the 45-day comment period so that substantive comments and objections are made available to the Forest Service at a time when it can meaningfully consider them and respond to them in the final EIS.

To assist the Forest Service in identifying and considering issues and concerns on the proposed action, comments on the draft EIS should be as specific as possible. It is also helpful if comments refer to specific pages or chapters of the draft EIS. Comments may also address the adequacy of the draft EIS or the merits of the alternatives formulated and discussed in the statement. Reviewers may wish to refer to the Council on Environmental Quality Regulations for implementing the procedural provisions of the National Environmental Policy Act at 40 CFR 1503.3 in addressing these points. Comments received, including the names and addresses of those who comment, will be considered part of the public record on this proposal and will be available for public inspection.

--This is a summary of a Federal Register article originally published on the page number listed below--

Revised Notice of Intent to Prepare an Environmental Impact Statement.

Citation: "73 FR 71600"

Federal Register Page Number: "71600"

"Notices"

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Tags: commercial   commodity   conservation   construction   environmental impact   federal   fire   habitat   nuclear power   population   regulations   species   timber   utah   vermont   wisconsin   wyoming  

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BRIEF-Black Hills lowers 2008, 2009 profit view - Zibb.com

Black Hills Corp:

* Lowers 2008 view on adjusted profit from continuing operations to $2.00-2.10 per share from $2.15-2.25 per share

* Lowers 2009 view on adjusted profit from continuing operations to $1.95-2.25 per share from $2.40-2.65 per share

* Says working with bank lending group to extend $383 million aquila acquisition facility

* Intends to reduce oil and gas capital spending to $35-40 million in 2009

* Reuters Estimates FY 2008 earnings per share view $1.99

* Reuters Estimates FY 2009 earnings per share view $2.26

* Adjusted forecasts exclude unrealized mark-to-market earnings impact of interest rate swaps

((New York Equities Desk; tel: +1 646 223 6000))

(For more news about Black Hills Corp click here:)

COPYRIGHT

Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

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Tags: acquisition   bank   earnings   equity   forecasts   market   new_york   oil and gas   profit  

Companies: Black Hills Corp. (BKH)

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Black Hills Corp. Reports Third Quarter 2008 Results - Zibb.com

Black Hills Corp. (NYSE: BKH) today announced quarterly financial results for the period ended Sept. 30, 2008. Income from continuing operations for the third quarter was $19.5 million, or $0.51 per share, compared to $11.1 million, or $0.29 per share, reported for the third quarter in 2007. Net income was $164.9 million, or $4.29 per share, compared to $17.5 million, or $0.46 per share, for the same period in 2007. These third quarter 2008 results contain $141.7 million of net income, or $3.69 per share, attributable to the after-tax gain on the sale of independent power production (IPP) assets that closed on July 11, 2008 and are classified as discontinued operations.

"We had solid business results in the third quarter and the integration of the five gas and electric utility properties acquired from Aquila is on track. The dividend declaration by our board of directors, during this uncertain economic environment, exemplifies the board's continued confidence in our strategy, business performance and financial liquidity.

In light of the current capital market issues, we remain focused on operating efficiently, controlling discretionary expenses, conserving cash and prudently evaluating the timing of our capital investments in balance with our growth strategy. We are confident in our ability to secure the financing needed for future capital projects to serve our customers and create value for our investors," said David R. Emery, chairman, president and chief executive officer of Black Hills Corp.

For the nine months ended Sept. 30, 2008, income from continuing operations was $44.4 million, or $1.16 per share, compared to $57.5 million, or $1.55 per share, for the same period ended Sept. 30, 2007. Net income for the nine months ended Sept. 30, 2008 was $203.9 million, or $5.31 per share, compared to $75.0 million, or $2.02 per share, reported for the same period in 2007. These year-to-date 2008 results also include the gain from the sale of the IPP assets.

Compared to the third quarter of 2007, income from continuing operations in the third quarter of 2008 was primarily affected by the following factors:

    Utilities
    -- $3.6 million increase in electric utility earnings
    -- $1.9 million decrease in gas utility earnings


    Non-regulated Energy
    -- $4.6 million increase in energy marketing earnings
    -- $4.1 million increase in power generation earnings
    -- $0.3 million decrease in coal mining earnings
    -- $0.5 million decrease in oil and gas earnings


The gas and electric utility earnings include results from the acquisition of the five gas and electric utilities from Aquila on July 14, 2008. Gas utility results were a loss of $1.9 million, consistent with expectations for the seasonality of this business. Electric utility earnings increased due to the January 2008 approved rate recovery for investments made at Cheyenne Light and the inclusion of Colorado Electric utility results. Increases were partially offset by higher fuel and purchased power costs to meet customer demand, as well as, planned and unplanned plant outages during the quarter.

The construction of the 100 MW Wygen III plant remains on schedule and on budget. Additionally, the Colorado PUC recently deemed the company's Electric Resource Plan application complete for the proposed development of 350 MW of natural gas-fired generation, along with 20 MW of renewable energy to serve electric utility customers in southeast Colorado. Regulatory hearings regarding the proposed plans are anticipated to begin in the first quarter of 2009. Black Hills continues to believe the self-build generation proposal provides the most reliable and cost-effective solution to meet the long-term energy needs of utility customers.

Results from power generation increased $4.1 million compared to the same quarter in 2007 and reflects the sale of certain IPP assets and their reclassification to discontinued operations. The increase in power generation earnings includes a $1.7 million after-tax gain on the sale of excess emission credits resulting from the decommissioning of the Ontario plant and an increase in earnings from power fund investments. Third quarter 2007 results included a $1.8 million after-tax impairment loss relating to the Ontario plant.

Overall market conditions and widening Rockies' basis differentials improved results for the energy marketing business during the third quarter and include the effects of mark-to-market impacts. Ongoing execution of long- term transportation deals are building value for 2009 and beyond. The energy marketing team is conservatively managing its cash flows, credit exposure and counterparty risk so that the business continues to operate prudently using its stand-alone credit facility.

Oil and gas production was 11 percent lower compared to third quarter 2007. In response to declining prices in September 2008, the company elected to shut-in two million cubic feet per day of Piceance Basin gas production, which was restored in early October as market conditions improved.

Coal mining earnings were lower as a result of increased mining costs, including overburden removal expenditures, depreciation, diesel fuel prices and coal taxes, but were partially offset by increased production and higher average coal sales prices.

Due to the challenging economic environment, Black Hills is assessing financing alternatives and associated interest rate costs, changes in oil and natural gas pricing and other factors in order to determine the potential impact on earnings, investment and operating expectations. The company expects results to fall within the lower range of 2008 guidance for continuing operations provided on Sept. 17, 2008. The company is reevaluating 2009 guidance and it may be adjusted. "Our growth initiatives remain a priority and our businesses continue to build value. We believe our company is well positioned with a balanced asset portfolio, a defined growth plan, and opportunities to capture the benefits of operating efficiencies as integration plans are completed," concluded Emery.

DIVIDEND

At a meeting held Oct. 29, 2008, the board of directors of Black Hills Corp. declared a quarterly dividend on the common stock. Common shareholders of record at the close of business on Nov. 14, 2008, will receive 35 cents per share, payable on Dec. 1, 2008.

QUARTERLY CONFERENCE CALL AND WEBCAST

The company will conduct a conference call and webcast on Thursday, Nov. 6, 2008, beginning at 11:00 a.m. Eastern Time to discuss recent events and financial and operating performance. To listen to the live broadcast, call 1-800-230-1766. To access the live webcast and download a copy of the investor presentation, go to the Black Hills Web site at http://www.blackhillscorp.com and click "Webcast" in the "Investor Relations" section. The presentation will be posted later today. Listeners should allow at least five minutes registering and accessing the presentation. For those unable to listen to the live broadcast, a replay will be available by telephone through Thursday, Nov. 13, 2008 at 1-800-475-6701 in the United States and at 1-320-365-3844 for international callers. Callers need to enter the access code 966928# when prompted. Also, an archive of the webcast will be available shortly after the call on the Black Hills' Web site.



    CONSOLIDATED FINANCIAL RESULTS

                           Black Hills Corporation
                   (In thousands, except per share amounts)

                            Three Months ended         Nine Months ended
                               September 30,              September 30,
                             2008          2007         2008          2007
    Revenues:
        Utilities         $220,581       $72,275     $413,449      $222,033
        Non-regulated
         energy             71,311        57,892      184,566       199,157
                          $291,892      $130,167     $598,015      $421,190

    Net income (loss):
      Continuing
       operations -
        Utilities           $8,911        $7,189      $28,631       $22,884
        Non-regulated
         energy             12,672         4,727       23,670        36,334
        Corporate           (2,061)         (787)      (7,889)       (1,720)
        Income from
         continuing
         operations         19,522        11,129       44,412        57,498
        Discontinued
         operations (a)    145,389         6,335      159,486        17,518
        Net income        $164,911       $17,464     $203,898       $75,016

    Weighted average common
     shares outstanding:
        Basic               38,307        37,643       38,145        36,810
        Diluted             38,425        38,078       38,430        37,226

    Earnings per share:
        Basic -
          Continuing
           operations        $0.51         $0.30        $1.16         $1.56
         Discontinued
          operations          3.79          0.17         4.18          0.48
          Total              $4.30         $0.47        $5.34         $2.04
        Diluted -
          Continuing
           operations        $0.51         $0.29        $1.16         $1.55
          Discontinued
           operations         3.78          0.17         4.15          0.47
          Total              $4.29         $0.46        $5.31         $2.02

    (a)   2008 and 2007 discontinued operations primarily reflect the after-
          tax results of operations of the Company's seven IPP power
          generation plants that were sold on July 11, 2008. Prior periods
          have been adjusted to reflect this reclassification to discontinued
          operations.



    BUSINESS UNIT QUARTERLY PERFORMANCE SUMMARY
    (Minor differences in comparative amounts may result due to rounding)

Utilities

Income from continuing operations from the utilities for the three-month period ended Sept. 30, 2008 was $8.9 million, compared to $7.2 million in 2007. Results were as follows:

     --   Electric utilities' income from continuing operations was
          $10.8 million in 2008 and $7.2 million in 2007.  Operating income in
          2008 increased $8.1 million reflecting increased gross margins of
          $23.7 million primarily due to the acquired Colorado electric
          utility and the inclusion of Wygen II in Cheyenne Light's rate base
          effective on Jan. 1, 2008.  Operating expenses increased due to
          depreciation and operating costs associated with the Wygen II plant
          and the operating expenses of the acquired Colorado electric
          utility.
     --   Gas utilities' loss from continuing operations was $1.9 million in
          2008.  Results from gas utilities reflect the addition of gas
          utilities acquired from Aquila on Jul. 14, 2008.  Losses for the
          quarter were consistent with expectations and not unusual for off-
          peak seasons.


    The following tables provide certain utility operating statistics:



                           Three months ended          Nine months ended
                               September 30,               September 30,
    Electric Utilities      2008           2007         2008          2007
    Retail sales-MWh     1,118,937       712,302     2,450,358    1,987,155
    Contracted wholesale
     sales - MWh           229,074       169,211       678,608      486,149
    Off-system sales -
     MWh                   321,231       141,930       832,742      426,143
                         1,669,242     1,023,443     3,961,708    2,899,447
    Regulated power plant
     availability:
      Coal-fired plants       96.4%         96.6%         93.2%*        95.5%
      Other plants            98.7%         99.8%         92.6%        99.6%
      Total availability      97.3%         98.0%         93.0%        97.3%

    * Reflects major maintenance outages at our Ben French, Osage and Neil
      Simpson I coal-fired plants



    Gas Utilities (acquired July 14, 2008)

    Gas sales -
     Dekatherm (Dth)     5,181,662             -     5,181,662            -



Non-regulated Energy

Income from continuing operations from non-regulated energy for the three- month period ended Sept. 30, 2008 was $12.7 million, compared to $4.7 million in 2007. Business results were as follows:

     --   Energy Marketing income from continuing operations was $6.9 million,
          compared to $2.3 million in 2007.
               o    A $30.9 million pre-tax increase in unrealized marketing
                    margins.
               o    Lower incentive compensation costs related to the
                    decreased realized gas marketing margins.
               Partially offset by:
               o    A $22.1 million pre-tax decrease in realized gas marketing
                    margins primarily resulting from prevailing conditions in
                    natural gas markets affecting both transportation and
                    storage strategies.  In addition, crude oil marketing
                    margins were lower due to the impact of decreasing
                    commodity prices on inventory held to meet pipeline
                    requirements.
     --   Power Generation income from continuing operations was $3.2 million
          in 2008, compared to a loss of $0.9 million in 2007.
               o    The sale of excess emission credits resulting from the
                    decommissioning of the Ontario plant for $1.7 million
                    after-tax;
               o    The recording of an impairment loss, and related costs, in
                    the third quarter of 2007 of $1.8 million after-tax
                    relating to the Ontario plant; and
               o    Allocated indirect corporate costs and inter-segment
                    interest expense, related to the IPP assets sold and not
                    reclassified to discontinued operations, of $3.2 million
                    after-tax for the three months ended Sept. 30, 2007.
               Partially offsetting these increases were the following:
               o    Lower earnings from the Wygen I and Gillette CT plants
                    primarily due to higher interest costs partially offset by
                    lower purchased power costs in 2008.
     --   Oil and Gas income from continuing operations was $1.5 million in
          2008, compared to $2.0 million in 2007.
               o    A $0.5 million increase in LOE.
               o    A $1.1 million increase in production taxes due to higher
                    oil prices.
               Partially offsetting these increased expenses were the
               following:
               o    Revenue increased $1.1 million due to a 34 percent
                    increase in the average hedged price of oil received
                    partially offset by a 2 percent decrease in average hedged
                    price of gas received, and lower production of 11 percent.
                    The lower production reflects permitting delays, the
                    temporary shut-in of Piceance Basin gas production, and
                    delayed drilling activities on our non-operated
                    properties.
     --   Coal Mining income from continuing operations was $1.1 million in
          2008, compared to $1.4 million in 2007.   Results were impacted by
          the following:
               o    Operating expenses increased $4.9 million, or 53 percent,
                    during the three months ended Sept. 30, 2008 primarily due
                    to increased overburden removal costs, an increase in
                    diesel fuel costs, increased coal taxes due to a higher
                    revenue base and increased depreciation due to increased
                    equipment usage.  We had a 54 percent increase in cubic
                    yards of overburden moved.
               Partially offsetting the increased expenses was the following:
               o    Revenue increased $5.6 million, or 53 percent, for the
                    three month period ended Sept. 30, 2008 compared to the
                    same period in 2007.  Revenues increased due to an
                    increase in average price received and higher quantity of
                    tons of coal sold, primarily due to additional sales to
                    Cheyenne Light for Wygen II and increased train load-out
                    sales.


    The following tables contain certain Non-regulated Energy operating
statistics:



                              Three months ended          Nine months ended
                                 September 30,               September 30,
                              2008          2007          2008          2007
    Coal mining:
    Tons of coal sold        1,521         1,314         4,518        3,796
    Cubic yards of
     overburden moved        3,368         2,188         9,021        5,402
    Oil and gas
     production:
    Mcf equivalent sales 3,444,841     3,890,760    10,081,574   10,994,141
    Energy marketing
     average daily
     volumes:
    Natural gas physical
      - MMBtus           1,854,100     1,859,100     1,749,600    1,779,400
    Crude oil physical
     - barrels               7,800        10,200         7,300        9,000



                             Three months ended          Nine months ended
                                September 30,               September 30,
    Power generation:         2008          2007          2008         2007
    Contracted fleet power
     plant availability:
      Coal-fired plant        96.8%         95.3%         95.6%        94.3%
      Natural gas-fired
       plants                 99.4%         94.7%         82.5%        85.5%
      Total availability      97.8%         95.0%         94.8%        94.9%



Service Company (Corporate)

Results for the three-month period ended Sept. 30, 2008 were a $2.1 million loss, compared to a loss of $0.8 million for the same period in 2007. Results were affected by increased unallocated costs in the three months ended Sept. 30, 2008, compared to the same period in 2007, primarily as a result of increased incentive compensation costs related to the IPP sale and the acquisition of the five gas and electric utilities from Aquila.

Discontinued Operations

Earnings from discontinued operations were $145.4 million for the three month period ended Sept. 30, 2008, compared to $6.3 million for the same period in 2007. The 2008 results contain $141.7 million of income attributable to the after-tax gain on the sale of IPP assets that closed on July 11, 2008.

ABOUT BLACK HILLS CORPORATION

Black Hills Corp. is a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice is based in Rapid City, S.D. with corporate offices in Golden, Colo. and Omaha, Neb. The company serves 750,000 utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company's non-regulated businesses generate wholesale electricity, produce natural gas, oil and coal, and market energy. Black Hills employees partner to produce results that improve life with energy. More information is available at http://www.blackhillscorp.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward- looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward- looking statements, including the risk factors described in Item 1A of Part I of our 2007 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time-to-time, and the following:

     --   Our ability to obtain adequate cost recovery for our utility
          operations through regulatory proceedings; to receive favorable
          rulings in periodic applications to recover costs for fuel,
          transmission and purchased power in our regulated utilities, and our
          ability to add power generation assets into our regulatory rate
          base;
     --   Our ability to successfully integrate and profitably operate the
          five gas and electric utilities recently acquired from Aquila;
     --   Our ability to successfully maintain or improve our corporate credit
          rating;
     --   Our ability to complete the planning, permitting, construction,
          start up and operation of power generating facilities in a cost-
          effective and timely manner;
     --   Our ability to meet production targets for our oil and gas
          properties, which may be dependent upon issuance by federal, state,
          and tribal governments, or agencies thereof, of drilling,
          environmental and other permits, and the cost and availability of
          specialized contractors, work force, and equipment;
     --   The timing, volatility and extent of changes in energy-related and
          commodity prices, interest rates, foreign exchange rates, energy and
          commodity supply or volume, the cost and availability of
          transportation of commodities, and demand for our services, all of
          which can affect our earnings, liquidity position and the underlying
          value of our assets;
     --   Counterparty credit risk;
     --   Capital market conditions and market uncertainties related to credit
          and interest rates, which may affect our ability to raise capital on
          favorable terms or at all;
     --   Other factors discussed from time to time in our filings with the
          SEC.


New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE Black Hills Corp.

http://www.blackhillscorp.com

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Companies: Black Hills Corp. (BKH)

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Black Hills National Forest, Bearlodge Ranger District, Sundance, WY--Rattlesnake Forest Management

SUMMARY: The Forest Service will prepare an environmental impact statement (EIS) on a proposal to implement multiple resource management actions in the Rattlesnake Project Area to implement the amended Black Hills National Forest Land and Resource Management Plan. The proposed action includes approximately 11,000 acres of commercial timber harvest, 5,000 acres of non-commercial vegetation management, 6,000 acres of prescribed burning, three miles of road construction, road improvements, and watershed improvements. Prescribed burning is proposed in a roadless area.

DATES: Comments concerning the scope of the analysis must be received by December 3, 2008. The draft EIS is expected to be available for public review in March 2009, and the final EIS is expected to be completed by June 2009.

ADDRESSES: Send written comments to Rattlesnake Project, c/o Content Analysis Group, 172 E. 500 S., Bountiful, UT 84010. Fax number: (801) 397-1605. Electronic mail: bhnfcontentanalysisgroup.com. Comments may be hand-delivered to the Bearlodge Ranger District office, 101 South 21st Street, Sundance, Wyoming, between the hours of 8 a.m. and 4:30 p.m., Monday through Friday, excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Elizabeth Krueger, Resource Planner, Bearlodge Ranger District, Black Hills National Forest. Telephone number: (307) 283-1361.

SUPPLEMENTARY INFORMATION: The purpose of actions proposed under the Rattlesnake Forest Management Project is to provide biologically diverse ecosystems, protect basic resources, and provide for sustained commodity uses by reducing crown fire hazard and wildfire threats to private property, reducing risk of mountain pine beetle infestation, producing commercial timber now and creating conditions for future timber production, conserving and enhancing big game winter range, enhancing forest structural diversity, and conserving and enhancing late successional landscapes.

Proposed Action

The Rattlesnake Project Area covers approximately 42,171 acres of National Forest System land and 3,935 acres of interspersed private land east of Sundance, Wyoming. To reduce wildfire hazard, the Forest Service proposes to thin pine stands, construct fuel breaks, reduce fuels adjacent to populated areas and across the landscape, reduce pine competition with aspen and birch stands, and conduct prescribed burning. To reduce risk of beetle infestation, activities would include thinning and regeneration of pine stands. To produce commercial timber and create conditions for future timber production, proposed activities include regeneration and shelterwood removal in pine stands, thinning of merchantable and submerchantable pine, and reduction of burr oak competition. To conserve and enhance winter range, activities would include uneven-age management of pine stands, reduction of pine and oak competition with desirable forage, and prescribed burning. To enhance forest structural diversity, the proposal includes regeneration harvest in pine and conservation of stands that could develop into late successional forest. Road construction, repair, and improvement would occur in support of these activities. New roads would be closed following harvest, and existing roads not part of the National Forest System could also be closed in conjunction with this project. To conserve and enhance late successional landscapes (management area 3.7), the Forest Service would conduct prescribed burning. Other proposed enhancement activities include watershed improvement through road and stream rehabilitation.

The Rattlesnake Project Area includes the 7,944-acre Sand Creek Roadless Area. Most of the Sand Creek area is unsuitable for timber harvest, and new road construction is prohibited in much of the area by Forest Plan direction, severely limiting opportunities for mechanical treatment. The Forest Service considers access to the area by commercial equipment impractical at this time and has chosen to focus on objectives that could be achieved by non-commercial means. As a result, the only action proposed in the Sand Creek Roadless Area is prescribed burning (2,386 acres), with the purpose of promoting late successional forest attributes.

Background

The Rattlesnake Project area encompasses the area of the Cement Project. The Forest Service approved the Cement Project on February 20, 2004. The project was litigated. Following a July 2005 wildfire that substantially altered forest conditions in the Cement Project area, the Forest Service withdrew the project. The complaint was subsequently dismissed in April 2006.

In the course of the withdrawal of the Cement Project decision and dismissal of the complaint, the Forest Service made several commitments regarding any new proposal in the Cement Project Area. These commitments pertained to addressing certain changed conditions; developing the range of alternatives; and soliciting and considering public comment on the new proposal. The Forest Service intends to honor these commitments in the analysis process for the Rattlesnake Project.

The Rattlesnake Project Area includes the Cement Project Area but is a new and separate proposal from the earlier Cement Project. Initial planning for the Rattlesnake Project began in October 2007 with a review of existing forest conditions and amended Forest Plan direction for management of the area. Circumstances affecting National Forest System lands in the Rattlesnake Project Area have changed substantially since 2004. (1) The Phase II Amendment to the Forest Plan was approved on October 31, 2005. This amendment altered management direction for the Black Hills National Forest, including the Rattlesnake Project area, by adding broad-scale objectives increasing management emphasis on hazardous fuels, forest structural diversity, and habitat for rare species. These changes directly affect the type and extent of vegetation management actions the Forest Service takes in the Black Hills. (2) The Cement Fire of July 2005 burned 2,079 acres of National Forest System land in the Rattlesnake Project area. Approximately 77 percent of this area burned at moderate or high intensity, resulting in the mortality of an estimated 1,925,300 cubic feet of sawtimber. (3) Population adjacent to the Rattlesnake Project Area has increased in the last four years with subdivision of the Red Canyon Ranch. These developments could be affected by hazardous fuel conditions in the project area. (4) Mountain pine beetle populations have increased dramatically in an area about five miles south of the Rattlesnake Project area, causing high levels of pine mortality on several hundred acres. This infestation has the potential to spread to the Rattlesnake area. (5) The Forest Service has issued new regulations implementing the National Forest Management Act. These new regulations replace earlier direction under which the Cement Project decision was analyzed and approved. The new planning regulations make it clear that they have minimal application at the project level. This project would be conducted in accordance with the requirements of the new regulations.

Responsible Official

Steve Kozel, District Ranger, Bearlodge Ranger District, Black Hills National Forest, 101 South 21st Street, PO Box 680, Sundance, Wyoming 82729.

Nature of Decision To Be Made

The decision to be made is whether to approve the proposed action or alternatives at this time. No Forest Plan amendments are proposed.

Scoping Process

Comments and input regarding the proposed action are being requested from the public and other interested parties in conjunction with this notice of intent. The comment period will be open for thirty days, beginning on the date of publication of this notice of intent. A public meeting will be held on November 13, 2008, 6-8 p.m., at the Bearlodge Ranger District Office, 101 S. 21st St., Sundance, Wyoming. Response to the draft EIS will be sought from the interested public beginning approximately in March 2009.

Comment Requested

This notice of intent initiates the scoping process, which guides development of the environmental impact statement. It is our desire to involve interested parties in identifying the issues related to proposed activities. Comments will assist in identification of key issues and opportunities to develop project alternatives and mitigation measures.

Early Notice of Importance of Public Participation in Subsequent Environmental Review: A draft EIS will be prepared for comment. The comment period on the draft EIS will extend 45 days from the date the Environmental Protection Agency publishes the notice of availability in the Federal Register . This notice is expected to appear in February 2009.

The Forest Service believes, at this early stage, it is important to give reviewers notice of several court rulings related to public participation in the environmental review process. First, reviewers of draft EISs must structure their participation in the environmental review of the proposal so that it is meaningful and alerts an agency to the reviewer's position and contentions (Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 553 (1978)). Also, environmental objections that could be raised at the draft EIS stage but that are not raised until after completion of the final ETS may be waived or dismissed by the courts (City of Angoon v. Hodel, 803 F.2d 1016, 1022 (9th Cir. 1986) and Wisconsin Heritages, Inc. v. Harris, 490 F. Supp. 1334, 1338 (E.D. Wis. 1980)). Because of these court rulings, it is very important that those interested in this proposed action participate by the close of the 45-day comment period so that substantive comments and objections are made available to the Forest Service at a time when it can meaningfully consider them and respond to them in the final EIS.

To assist the Forest Service in identifying and considering issues and concerns on the proposed action, comments on the draft EIS should be as specific as possible. It is also helpful if comments refer to specific pages or chapters of the draft EIS. Comments may also address the adequacy of the draft EIS or the merits of the alternatives formulated and discussed in the statement. Reviewers may wish to refer to the Council on Environmental Quality Regulations for implementing the procedural provisions of the National Environmental Policy Act at 40 CFR 1503.3 in addressing these points. Comments received, including the names and addresses of those who comment, will be considered part of the public record on this proposal and will be available for public inspection.

--This is a summary of a Federal Register article originally published on the page number listed below--

Notice of intent to prepare an environmental impact statement.

Citation: "73 FR 65284"

Federal Register Page Number: "65284"

"Notices"

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Tags: commercial   commodity   conservation   construction   environmental impact   federal   fire   habitat   nuclear power   population   regulations   species   timber   utah   vermont   wisconsin   wyoming  

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