Fighting for the state’s economic backbone
by BILL RANEY President of the West Virginia Coal Association
2 years ago | 946 views | 1 1 comments | 6 6 recommendations | email to a friend | print
Senator Robert Byrd issued a statement on Dec. 3 calling for an “open and honest dialogue about coal’s future in West Virginia” and accusing the coal industry of “scapegoating and stoking fear among workers.”  When our ranking Senator weighs in on a subject, we must engage in that dialogue with the reflection, respect and seriousness of purpose that his longstanding service to the state commands.  The coal industry accepts Sen. Byrd’s call for dialogue, and in so doing, we must respectfully disagree with many of the comments and clear up some misconceptions set forth in the statement.

First, while we agree that there is no available alternative energy supply to supplant coal currently in existence, there is nevertheless a concerted “deliberate effort” by the EPA and some factions in Congress to end coal mining in Appalachia.  Mining permits, which are the absolute life-blood of a coal producer, are simply not being issued by the EPA and the Army Corps of Engineers.  It is not a question of having a “large stockpile of permits” handy for future use and to comfort investors; indeed, any business must be able to reasonably predict where it will mine in the future as it fulfills its annual 5-year business plan.  Most companies readily admit that the lack of permits will cause very serious operational constraints within a couple of years. However, we’re already seeing the initial harbingers of a more wholesale crisis among coal producers.  So far this year, only two permits have been cleared for issuance by EPA, while more than fifty are delayed at the federal level, awaiting EPA review.

Only this week, it was announced that nearly 500 workers will lose their jobs in Clay County principally because of the persistent attempts of extremists to stop mining through never-ending litigation and permit delays that will prevent companies from meeting contractual obligations.  Of those workers, more than 20% are underground miners.  The economic reality is that a preparation plant that processes coal from both surface and deep mines cannot remain profitable and efficient when the majority of its feedstock supply is shut down.  These are real jobs lost, affecting real people—now.

Additionally, the EPA has launched a full-scale attack on the issuance of permits necessary for valley fills.  While, in the public eye, valley fills, or head-of-hollow fills, are commonly associated with surface mining operations, the simple fact is that these fills are an absolute necessity for the operation of coal preparation plants and underground mines.  The EPA has included in deep-mine-related permits in its broadside challenge.

Sen. Byrd also states that “we may not yet fully understand the effects of mountaintop removal mining on the health of our citizens.”  It is important to remember that large-scale surface mining has been occurring in West Virginia for decades; it is not something new.  The studies upon which the EPA relies reflect that overall water quality has not been significantly adversely impacted.  For this reason, the EPA has had to focus on one specific genus of mayfly to support its anti-mining findings because historic mining has not shown significant impacts upon fish or other insect life.  Simply put, responsible surface mining can exist harmoniously with environmental health.

To be sure, coal demand has declined in 2009.  This drop coincides with the worst economic crisis since the Great Depression.  We fully expect an economic recovery, and with that, an increase in coal demand to fuel a reinvigorated American economy.  The coal industry needs to be positioned to react.  It cannot do so when the government refuses to act promptly or with meaningful guidance on issuing the authorizations necessary for mining.

We agree with Sen. Byrd that he must represent the best interests of West Virginia as a whole.  We believe that West Virginia and the nation as a whole should support the mining and use of coal as a valuable contributor to the nation’s economy, energy independence and relative strength in the world and as a bridge to alternative fuels.  We welcome the opportunity to meet with Sen. Byrd to explain our views and enlist his help in fighting for the survival and prosperity of the state’s economic backbone. 
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Countryman
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December 18, 2009
Senator Byrd is right on target. The coal industry is engaging "scapegoating and stoking fear among workers". They are using a worldwide recession and drop in demand for their product as their excuse. They are also using an EPA that after 8 years of incompetent leadership is finally enforcing the laws as their scapegoat. They are talking out of both sides of their mouths, stoking fears by telling the public and their workers that the sky is falling, while at the same time telling their investors and wall street, that they see no problems.

Here's what one coal CEO had to say about permitting when talking to investors:

http://seekingalpha.com/article/169618-massey-energy-q3-2009-earnings-call-transcript?page=7

"They are very safe in detail in '10. In '11 if we had a issue with permitting on a surface mine, we would go to more deep mines, that's one of the reasons for the broad cost range that we would, we will be and keep ourselves in a position to make growth volumes that are more ill regards of which way the permitting issue evolves."

"But certainly if we get a lot of pressure from the permitting side that continues on into '11 we will begin to get restricted to some extend and we'll probably see a little bit higher cost on surface mine because of the placement of the material and perhaps moving a little bit more to deep mine."

Doesn't sound quite so dire now does it?

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