Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Steve Sanders – Stephens Inc.
Stephen Sanders – Stephens Inc.
Maybe a couple questions first for Bill. On your production capacity and coal cleaning, I think I heard the original 5.8 million. Has that changed significantly with the things you've done over the past couple of quarters?
Bill Gehrmann
No, we still feel that is basically our nameplate rating based on what we think is up time on the fleet of plants.
Stephen Sanders – Stephens Inc.
Can you, if you have not, can you give us just kind of ballpark the assumptions you're making for the EBITDA positive or the EBIT positive, either in tons or revenues or just whatever incremental color you can provide there.
Kirk Benson
What we did when we put together our EBITDA forecast is that if we operate the facilities at about 60% of capacity, we can breakeven with our new fixed cost structure. In 2009, we operated just slightly below the 60% and that resulted in some losses. So, the assumption that's in our EBITDA forecast is that we operate the facilities at about 60% capacity and the seven facilities that are operating now, that means that we'll be somewhere between 1.7 and 1.9 million tons of coal.
Stephen Sanders – Stephens Inc.
Kirk, just following up on that, the rough steam met mix?
Kirk Benson
I think in our modeling, we've assumed that the Pinnacle facility would probably come on line later in 2010, but we should be able to get to that breakeven assumption even if there isn't any met coal sold.
Stephen Sanders – Stephens Inc.
Bill, a follow-up on your EPA comment, new rigs coming on the disposal, but it sounds like you feel pretty good about utilization in the construction business. A couple of questions, first can you just expand on that a little bit and second, in terms of timing when will we hear? And in terms of implementation, what's kind of the reality of that?
Bill Gehrmann
Those are obviously good questions Steve, and as far as the timing I think we'd all like a little better idea. I think we continue to feel, based on comments made by the EPA, that after the TBA incident that they wanted a little bit more enforcement capability in regards to especially the disposal regulations. I think, as you're aware, they had their C2P2 program, which has promoted the reuse of CCPs.
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