Increased use of coal in the future raises a number of public policy issues, ranging from environmental impacts to leasing of the public domain. The impact of changing demand, SO/sub 2/ emission regulations, and transportation alternatives are critical to an understanding of coal's potential as a future energy source. The empirical results from a study designed to investigate these policy issues are reported in this paper. The multi-period model includes a spatial allocation framework, linking coal transportation systems to various supply regions and electrical utility demand centers. Quality differences among supply regions, in terms of sulfur and Btu content, are recognized, as are the different types of coal reserves (surface or deep mine). Alternative levels of sulfur emission and exogenously specified levels of coal consumption are investigated. Although these features have been treated by others, the present model contains several new features. The impact of the contract-spot market aspects of coal sales on delivery and development patterns over time is considered specifically. Several transportation modes are considered, including rail, barge, and the possibility of mine-mouth electricity generation and the subsequent transportation of electrical energy. Optimal delivery patterns for the 1973-1990 time horizon are evaluated. Of particular importance are the constraints more » on eastern coal development and the simplifying assumption regarding increased future depletion costs. 27 references. (MCW) « less