Question-and-Answer Session
Operator
Thank you. The question-and-answer session will be conduct electronically. (Operator Instructions). Our first question comes from Pearce Hammond of Simmons & Company.
Pearce Hammond - Simmons & Company International
Good morning.
Steven Leer
Good morning, please.
Pearce Hammond - Simmons & Company International
Congratulations on a great quarter. Based on your guidance for 2010, it looks like you've committed based on your '09 production levels about 80 to almost 90% of your tonnage. How should we think about the committed prices for your coal in 2010 by region and is there a significant change from '09 realizations?
Steven Leer
There hadn't been fundamental changes, we didn't really commit much this last quarter a little bit. Our view is as we look at '10 is that a lot of our contract just carried over and from either previous quarter this year on in to the 2010 and on previous year. So I don't think there is a lot of change, nor do we have a lot of roll off, I'm looking at John, but I don't think we have a lot of roll off at the end of the quarter.
John Eaves
Pearce, this is John. We don't -- I mean we are kind in a budgeting process right now and planning to kind of see where we see market demand developing, but right now based on the 2009 production levels that 15 to 25 million is probably, it's good a numbers we can give.
Pricing loss, certainly it's no secret that the domestic steam market is pretty soft. We would expect to see that going into next year. We are somewhat encouraged by what we're seeing on the met side both domestically and internationally. So, obviously we're going to try to target that market as we into 2010.
Pearce Hammond - Simmons & Company International
Great, and then a follow up that you could update on your hedge position for 2010 for diesel deals explosive and should we see some positive variants on cost when we compared 2010 to 2009?
John Drexler
Yeah, this is John Drexler. On the diesel front, we are 75%, three quarters percent, three quarters hedged for the fourth quarter that a fairly significant prices we've discussed previously. Those hedges were laid in when market prices were higher. So it's 350, 375 a gallon in that period. As we look to 2010, if you allude it to, we expect to see benefit were roughly 50% hedged including the impact of the Jacobs Ranch consumption for diesel at a price of around 215 to 220 a gallon. So we should see a step down in that front. From an explosives position, we are not in an active hedging position, but we see our natural gas pricing is a large component on the explorers side, so we feel good and as we move forward in the 2010 there. So, that's kind of an overview of our consumer.
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