Central Appalachian Coal 2012


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This is a short Powerpoint outlining the importance of the coal industry to our region, the impact of the Obama War on Coal and the very real potential for West Virginia coal on the world marketplace.

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Central Appalachian Coal 2012

  1. 1. The War on Coal 2012 West Virginia Bill Raney, President West Virginia Coal Association September 2012
  2. 2. West Virginia CoalTotal Production (2011) 137,498,509 Underground 89,513,004 Surface 47,985,505Coal Companies Operating in WV 231Number of Mines 229 Underground 141 Surface 88West Virginia Coal Employment 20,705 (UG+SU) Underground 15,469 Surface 5,236 Coal Handling Facilities 2,340 Contractors 2,165 Total Coal Employment 25,210Estimated Average Annual Coal Wage $68,500Estimated Production Value 2011 $9,624,895,630Estimated Coal Severance Tax Paid $500 Million
  3. 3. IMPACT this year• Production – Off by 5% YTD • 3% in the North • 6% in the South• Employment – More than 2,600 to date WHY?
  4. 4.  Economic “uncertainty” –  America and worldwide Mild winter Natural gas prices Federal government – “Encourage, not discourage”  EPA  MSHA  OSM
  5. 5. Additional Challenges• Large stockpiles of coal • Mild winter and decreased demand• Permit uncertainty • Radicalized Regulatory Agencies • Air quality issues• More difficult reserve base• Transportation to export markets• Competition from other basins/countries
  6. 6. War On Appalachian CoalEPA INTERFERENCE FROM DAY ONE• Formal objections to mine permits (404 and 402)• Interagency MOU- Revise permitting and policy• Enhanced Coordinated Review Process (Enhanced Permit Delay)• Nearly All Permits Held Hostage• Ecological Assessment• Suspension of NWP 21• Revocation of Spruce Fork Permit• Targets All Mining
  7. 7. The War on Coal 2012• CSAPR 4.8 GW (court) • GHG NSPS • $2-3 billion annually • No New Coal Plants • SO2 • Requirements applied to • Nox existing plants per NSR • Technology Does Not• HgMACT 10 GW (court) Exist • $10-11 billion annually • PM? • COAL ASH (legislation) • RCRA Hazardous Waste• NAAQS • $1.5 billion annually • SO2, NOx, PM, CO, Ozone, Lead • Initial Cost = $1.5 billion annually • $19-25 billion annually by 2020. •TOTAL PROJECTED IMPACT • SO2 •$22.5 billion - $40.5 billion • Ozone • PM?
  8. 8. The Courts Strike BackTHE COURTS TRUMP THE EPACONDUCTIVITY/ECP“EPA’s position … is stunning power for an agency to arrogate to itself whenthere is absolutely no mention of it in the statute.”SPRUCE PERMIT“EPA engaged in magical thinking to reach an illogical and impracticalconclusion.”“EPA’s position proposes a scenario involving the automatic self-destructionof a written permit issued by an entirely separate federal agency after yearsof study and consideration. POOF!”CSAPR“EPA’s decision … has the air of a disappointed player’s threat to take his balland go home when he didn’t get to pitch.”
  9. 9. OPPORTUNITIESThe real question is not whether coal will continue tobe used but rather where will it come fromdomestically? - East of the Mississippi River - 40 percent of the nation’s production - 80 percent of mining jobsWe must MAINTAIN --- SURVIVEWorld energy needs and coal usage will increase West Virginia Coal Association 2012
  10. 10. America has MORE than any other 6,000 5,000 4,000Quadrillion 3,000 BTUs 2,000 1,000 0 USA Russia Iran Saudi Arabia Venezuela Coal Natural Gas Crude Oil
  11. 11. Energy Forecast
  12. 12. Port Development
  13. 13. PLEASE HELPNURTURE COMPETITIVE SITUATION • In-state power plants’ compliance • Infrastructure development • Continued legal challengeEDUCATIONENERGY POLICY • Longview Power Plant • Regional assets • Use it & “get better” everydayPRESSURE CONGRESS • Rockefeller letter • Bills to “control” EPAELECTION • Take care of home • Eastern States Coalition
  14. 14. Pressure CongressHR 3409 – Coal Miner Employment and Domestic Energy Infrastructure Protection Act• Introduced yesterday –– will be passed this morning• Combines five bills that have already passed the House – HR 3409 – Prevent Interior from issuing new rules that would adversely affect mining jobs – HR 2018 – Prevent EPA from “bullying” the States and forcing water quality standards – HR 2401 – TRAIN Act – Require analysis of economic effects of proposed rules on jobs – HR 2273 – Fly Ash Bill – Limits EPA’s control of fly ash disposal – HR 910 – Prevent EPA from regulating greenhouse gas emissionsAlso –HR 1540 – National Defense Authorization Act• Relieve limitation on military using coal-to-liquid fuelsSenate Bill• Introduced yesterday by Manchin (WV) and Toomey (PA)• Same as HR 2018
  15. 15. The November election is critical to the future of our industry. As you can see, theObama campaign starts out with a substantial electoral vote advantage. This advantagecan only be overcome with hard work and determination.
  16. 16. OUR REGION IS CRITICALMoving Ohio (18 EV), Virginia (13 EV), Maryland (10 EV) and Pennsylvania (20 EV) fromthe Obama side of the ledger to the Romney side, added to Florida (29 EV), adds apotential 90 EV to Romney’s total leading to a Romney win. Our concentration is onVirginia, Pennsylvania and Ohio. West Virginia and Kentucky will STRONGLY supportRomney.
  17. 17. Its all about -- OH-PA-VA Coalition Cooperation• Ohio Coal Association • Billboards – Citizens for a Working America • Radio• Pennsylvania Coal Alliance• Virginia Coal Association • Print ads – FACES • Direct mail• West Virginia Coal Association • Rallies – Friends of Coal • Grassroots mobilization – Citizens for Coal – Coalition for Romney • Voter registration – Friends and Families for Coal• Kentucky Coal Association• ACCCE