Archive for December, 2009

Coal Important to All Kentuckians

December 22, 2009

Frankfort – In my Senate district in central and northern Kentucky, when we think about coal, we consider its role in the economy of the eastern and western parts of the state. We don’t realize how important coal is to the economic growth of our local communities, but without coal and the cheap electricity it provides, our household budgets and small businesses would be in trouble.

Kentucky relies on coal for 92% of all its electricity needs, giving us the fourth-cheapest energy rates in the nation. In fact, our home energy bills are about half that of people living in New York and New England.

That cheap energy is also a powerful incentive for out-of-state businesses to locate in Kentucky. Utilities make up a sizeable chunk of any company’s non-labor costs, so being able to save money on heat and light goes a long way toward luring them here. Industrial energy in Kentucky is 16% cheaper than in Indiana, and 31% cheaper than in Ohio. If a company wants to locate in this region of the country, Kentucky can reduce their costs considerably.

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Roger Nicholson: Myths about mining

December 1, 2009

The Gazette’s coverage of the meeting between Gov. Manchin and other governmental leaders and some coal industry officials on Nov. 10 was noteworthy in a couple of respects.

First, anti-mining activist Judy Bonds candidly revealed the true extreme agenda of groups like the Sierra Club and the Coal River Mountain Watch. Bonds expressly stated the desire for a complete federal takeover of our state government, when she said, “the federal government needs to come in and take over the state of West Virginia, all the way from the governor to the dog catcher.”

It is rare indeed when anti-mining advocates reveal their true aims, and Bonds’ candid comment is quite telling. Unfortunately, most of the pronouncements from anti-mining groups twist the facts and weave tales designed to lure high-profile liberal foundations and Hollywood stars to join their single-minded pursuit.

Oft-repeated myths propounded by these groups include:
–Claims that neither they nor the Obama EPA seek to ban underground mining. In truth, the EPA has targeted 79 permits for “enhanced review” and potential veto, including deep-mining related permits. Moreover, environmental activists are stridently contesting a deep-mining permit in Northern West Virginia that would create 300 new jobs.

–Claims that wind projects can effectively replace coal mining jobs. To the contrary, each surface mining operation will typically employ more than 100 people for several years at wages exceeding $60,000 annually with excellent benefit packages. Wind projects involve short-term construction work followed by a handful of maintenance workers.

–Claims that coal currently being surface-mined can be mined by underground methods instead.

One need only read Gene Kitts’ excellent post, “Why We Surface Mine” on the Coal Tattoo blog (link online: http://blogs.wvgazette.com/coaltattoo/2009/07/23/special-guest-blog-exclusive-why-surface-mine/ ), to understand the economic foundation for surface mining.

The other interesting point from the Gazette’s coverage was Congressman Nick Rahall’s continued insistence that Obama’s EPA is just “doing its job.” EPA’s actions (and inaction) belie Rep. Rahall’s stubbornly held view.

Consider the following:
– In the spring of 2009, the EPA publicly stated that there was no moratorium on the issuance of Section 404 permits generally necessary for both surface- and deep-mining operations. Since that announcement, a grand total of two individual permits have been issued by the Army Corps of Engineers in West Virginia. The EPA may not call this a moratorium, but if it walks like a duck and quacks like a duck… well, you know the rest.

– In June 2009, EPA announced the framework for a new “enhanced review” of existing permit applications and promised timely review. Since then, as of Nov. 9, enhanced review has begun on only five of the 79 permits.

At that rate, it will take years for affected coal producers to receive feedback on their permits.

–EPA is attempting to revoke a long-issued Arch Coal permit for an active surface-mining operation. That permit underwent a multi-year environmental impact study, which EPA then accepted,

–EPA’s “job” appears to be implementing the goals of the Pelosi and Reid wing of the Democratic Party to end mining and consumption of coal.

Any business, particularly a capital-intensive one, needs to know the rules and have the assurance that those rules won’t change day-to-day. Ken Ward says there’s no permitting crisis; he’s wrong. Just because the large publicly traded companies have been able to adjust their business plans to avoid major disruptions doesn’t mean a crisis does not exist. Ask the smaller independent operators, who typically have no choice but to shut down when their next permit is blocked, if there’s a crisis in the coalfields.

If a bridge is out, you don’t drive full-speed in the hope that the bridge will be there when you arrive. The bridge is out. Those of us who rely on the coal industry for our livelihoods, our electricity and our quality of life should demand that our government agencies and our elected officials heed our concerns.

Nicholson is general counsel for International Coal Group.

http://wvgazette.com/Opinion/OpEdCommentaries/200911300808

Commerce Lexington adopts pro-coal position after trip

December 1, 2009

By Andy Mead and Dori Hjalmarson
amead@herald-leader.com

Commerce Lexington has changed its official policy statement to be much more pro-coal after a two-day trip to Eastern Kentucky.

“Basically the chamber was better informed of the impact coal was having on Kentucky’s economy,” said Chad Harpole, the business group’s vice president for public policy.

In its 2009 policy, the group acknowledged that coal has meant low energy rates in Kentucky but noted that federal action was likely to place further restrictions on emissions. That policy called on policy-makers to help utilities “and mitigate price volatility for our families and businesses.” The coal industry wasn’t mentioned.

The statement for 2010 calls pending energy legislation “the most immediate threat to Kentucky’s business climate” and says for the first time that the group supports efforts to “protect the viability of Kentucky’s coal industry.”

The coal industry and some people in the coalfields have been increasingly vocal in fighting back against regulation and what they see as bias by the news media and a lack of appreciation from the rest of the state. There even have been calls for boycotting Lexington businesses.

Harpole said Commerce Lexington’s policy change was a direct result of an October trip to the coalfields.

Commerce Lexington organized a trip that took 65 Central Kentucky business leaders to Irvine, Whitesburg, Pikeville and other spots in the eastern coalfields.

Along the way, they were told about the good salaries coal miners make and the coal industry-related work that goes on in offices in Central Kentucky, presentations that Harpole said “showed how the two economies are linked together.”

Among the business group’s concerns, he said, is that voluntary steps taken by utilities, the Kentucky automobile industry and others wouldn’t be taken into account in the cap-and-trade energy bill approved by the U.S. House last summer.

U.S. Rep. Ben Chandler, D-Versailles, voted for that bill. But that doesn’t put Commerce Lexington at odds with Chandler, Harpole said.

“We work with the congressman every day,” he said. “The things we are for, including coal to gas liquification and increased funding for research at the University of Kentucky, the congressman is very supportive of.”

Lane Boldman of Lexington, who is on the Sierra Club’s national board of directors, called the Commerce Lexington policy change “disappointing.”

“It just seems to be an inordinate interest in the coal industry specifically,” she said.

While the Commerce Lexington policy says that low rates from coal-produced electricity have helped Kentucky attract energy-intensive industries such as steel, aluminum and automobiles, Boldman pointed out that Kentucky still ranks 44th among the states in per capita income.

“As an argument for economic development, it’s very curious because the numbers clearly don’t support that,” she said.

While others are seeking to diversify the state, she said, Commerce Lexington appears to be taking a step backward.

When a reporter read the new policy to an Eastern Kentucky radio announcer who called for a Lexington boycott, WTUK-Harlan’s Randy Walters said, “We welcome that kind of voice from them. The thing is what we want is their legislators, their senators, congressmen, we want those people saying this.

“We want the people of Lexington ultimately to do that. We want to see this on their media. We want the whole state to get in line with coal like West Virginia did.”

Dave Moss, vice president of the Kentucky Coal Association, said his organization supports the additions to the energy policy, which he said was spawned by the October trip.

“They wanted to go one step further and solidify their support,” Moss said.

http://www.kentucky.com/latest_news/story/1040531.html