The document discusses the challenges facing the coal industry in West Virginia, including production declines, employment losses, and regulatory pressures from federal agencies like the EPA. It highlights the significant economic impact of coal, the potential for new legislation to protect mining jobs, and the importance of upcoming elections for the industry's future. The document emphasizes the need for coal to remain a vital part of America's energy portfolio and calls for collective action among coal associations in different states.

1. The War on Coal 2012
West Virginia
Bill Raney, President
West Virginia Coal Association
September 2012

2. West Virginia Coal
Total Production (2011) 137,498,509
Underground 89,513,004
Surface 47,985,505
Coal Companies Operating in WV 231
Number of Mines 229
Underground 141
Surface 88
West Virginia Coal Employment 20,705 (UG+SU)
Underground 15,469
Surface 5,236
Coal Handling Facilities 2,340
Contractors 2,165
Total Coal Employment 25,210
Estimated Average Annual Coal Wage $68,500
Estimated Production Value 2011 $9,624,895,630
Estimated Coal Severance Tax Paid $500 Million

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.  Economic “uncertainty” –
 America and worldwide
 Mild winter
 Natural gas prices
 Federal government – “Encourage, not
discourage”
 EPA
 MSHA
 OSM

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. War On Appalachian Coal
EPA 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. 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. The Courts Strike Back
THE COURTS TRUMP THE EPA
CONDUCTIVITY/ECP
“EPA’s position … is stunning power for an agency to arrogate to itself when
there is absolutely no mention of it in the statute.”
SPRUCE PERMIT
“EPA engaged in magical thinking to reach an illogical and impractical
conclusion.”
“EPA’s position proposes a scenario involving the automatic self-destruction
of a written permit issued by an entirely separate federal agency after years
of study and consideration. POOF!”
CSAPR
“EPA’s decision … has the air of a disappointed player’s threat to take his ball
and go home when he didn’t get to pitch.”

9. OPPORTUNITIES
The real question is not whether coal will continue to
be used but rather where will it come from
domestically?
- East of the Mississippi River
- 40 percent of the nation’s production
- 80 percent of mining jobs
We must MAINTAIN --- SURVIVE
World energy needs and coal usage will increase
West Virginia Coal Association 2012

10. America has MORE than any other
6,000
5,000
4,000
Quadrillion 3,000
BTUs
2,000
1,000
0
USA Russia Iran Saudi Arabia Venezuela
Coal Natural Gas Crude Oil

11. Energy Forecast

12. Port Development

13. PLEASE HELP
NURTURE COMPETITIVE SITUATION
• In-state power plants’ compliance
• Infrastructure development
• Continued legal challenge
EDUCATION
ENERGY POLICY
• Longview Power Plant
• Regional assets
• Use it & “get better” everyday
PRESSURE CONGRESS
• Rockefeller letter
• Bills to “control” EPA
ELECTION
• Take care of home
• Eastern States Coalition

14. Pressure Congress
HR 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 emissions
Also –
HR 1540 – National Defense Authorization Act
• Relieve limitation on military using coal-to-liquid fuels
Senate Bill
• Introduced yesterday by Manchin (WV) and Toomey (PA)
• Same as HR 2018

15. The November election is critical to the future of our industry. As you can see, the
Obama campaign starts out with a substantial electoral vote advantage. This advantage
can only be overcome with hard work and determination.

16. OUR REGION IS CRITICAL
Moving Ohio (18 EV), Virginia (13 EV), Maryland (10 EV) and Pennsylvania (20 EV) from
the Obama side of the ledger to the Romney side, added to Florida (29 EV), adds a
potential 90 EV to Romney’s total leading to a Romney win. Our concentration is on
Virginia, Pennsylvania and Ohio. West Virginia and Kentucky will STRONGLY support
Romney.

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