Great review of the events.
The only thing missing is the answer to the question about the type of coal needed for the engines.
My answer to this is that in later years the coal available had a large impact upon the design of the fire box of every engine. Essentially this relates to the gas production of the coal. So called soft coals have about 30+ % volital material and need a smaller grate than say hard coals which can run as low as 10% or less. Remember the Reading Railroad engines in the east that had huge grates, they burned anthersite. Coals range individually all the way inbetween in the various mine seams so the coal you plan to use is an input in the design of a good locomotive boiler. Most colorado and New Mexico coal is soft coal but there is also hard coal and there are many seams of different soft coals.
Frank
PS; there are other factors that also affect what coal you select for a boiler such as the kind of klinker it forms, how much ash is present, how wet it is, how fine etc.