Experts: Coal industry facing dismal future

BLUEFIELD, Va. — The most significant message out of Tuesday’s Coal Summit was that making a living from the coal industry probably won’t get easier any time soon and energy costs will likely go up.

“Everything you heard today is going to increase the cost of energy,” Rick Taylor of the Pocahontas Coal Association said. “When the public realizes that each of the new regulations impacting the coal industry will lead to higher energy costs, It will be an eye-opener for the public. The changes will impact everyone.”

A crowd in excess of 150 people filled the combined large and small meeting rooms of Fincastle Country Club in Bluefield, Va., to hear sobering messages from a handful of coal industry side experts on topics including climate change legislation, mine permitting and mountain top removal.

Myron Ebell, director, Energy and Global warming Policy of the Competitive Enterprises Institute expressed mixed feelings about the turnout for the summit. “It’s always a pleasure for me to get out of Washington, D.C., but when a lot of people from an industry start showing up for meetings like this, it means that things are not going very good. If they were, you would all be out working.”

Bill Raney, president of The West Virginia Coal Association said it has been amazing to watch developments from Washington, D.C., in recent months. “We seem to be the only country in the world that treats our natural resources like liabilities,” Raney said. He said that more than half of the nation’s energy comes from coal, and that the increase in regulations will drive the cost of producing coal higher and people in the eastern United States won’t benefit from low energy costs. “People inside the Beltway have got to understand this.”

Dan Pochick, president of Rish Equipment in Bluefield alluded to “best of times — worst of Times,” line from the first chapter of Charles Dickens’ “A Tale of Two Cities,” pointing out that the coal industry enjoyed record prices as part of a robust economy about a year ago, but has experienced a shrinking market with low prices during the global economic slump of the past several months. “It’s going to last a long time,” Pochick predicted of the slump.

Gene Kitts, senior vice president/mining services International Coal Group gave a thorough presentation of the new challenges facing the coal industry, subtitles “EPA versus Mining — Trading jobs for mayflies,” and reported on the recent series of regulations from the federal Environmental Protection Agency that require almost no impact on the mine site.

“The bottom line is that permits are not being issued,” Kitts said. “There are folks who have been opposed to mining for their entire careers,” he said. “They’re becoming a bit bolder — more confident in what they’re doing. I’m frustrated. I’m extremely concerned.”

Ebell addressed the coal industry’s concerns about efforts by President Barack Obama’s administration position on climate change legislation, and said that major groups of pages in the American Clean Energy and Security Act were coming in just hours before the House of Representatives passed the bill. “Basically, everyone who voted on that bill didn’t know what they were voting on,” he said.

“I think reasonable people can disagree,” Ebell said before expressing his position compared to U.S. Rep. Frederick C. “Rick” Boucher, D-Va.’s position on the Waxman-Markey Clean Energy & Security Act. He said that bill supporters need to ask: “Can the U.S. economy survive? Can coal survive?”

In response to his own question, Ebell said: “No this bill cannot be fixed. It can only be defeated. If you want to survive, you have to say no.” He said the purpose of this bill “is to kill coal,” and added that people should take action. “You’re going to have to stand up and say no,” he said. “You’re going to have to scare the hell out of them.”

Virginia State Senator Phillip P. Puckett, D-Russell, disagreed with Ebell’s point that Boucher, among other representatives, made deals with special interest groups to gain support for the bill. “I’ve known Rick for a long time, and I’ve never known him to make deals.” However, he expressed concerns that removing coal from the nation’s energy picture would be a big mistake. “There’s no other energy source that can take the place of coal right now.”

Chris Hamilton, senior vice president of the West Virginia Coal Association talked about the future of surface mining in the context of new EPA permits and Jason Bostic, vice president of the association provided additional details concerning new permit requirements and how they impact the future of coal mining.

“I thought this was a very informative summit concerning a problem that could have an adverse impact on everyone in southern West Virginia,” West Virginia State Delegate John H. Shott, R-Mercer said.

“The speakers all did a good job of creating greater awareness of the problems the coal industry is facing and of providing helpful insights about what people can do,” Marc Meachum, president and chief executive officer of the Greater Bluefield Chamber of Commerce said.

The Bluefield Chamber, Princeton/Mercer County Chamber of Commerce, Pocahontas Coal Association, Alpha Natural Resources, Marshall Miller & Associates, Pocahontas Land Company and Roses & Rainbows joined together to sponsor the luncheon following the presentations.

— Contact Bill Archer at barcher@bdtonline.com

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