Bill Raney, President of the West Virginia Coal Association, spoke to the Charleston Rotary at The University of Charleston, Friday, August 24, 2007.
Bill was very informative and entertaining as he addressed today’s challenges of the West Virginia coal industry.
For those who were unable to hear his speech in person, Mr. Raney has graciously provided his notes:
It’s very intimidating to be here before the Charleston Rotary
It’s the leaders of Charleston - Kanawha County - the judiciary
And the clergy
You even have my preacher in the audience
Now if that’s not intimidating - I don’t know what is
I’m glad Bill McCoy is here - not only today
But in Charleston - he and his family are a great addition
I was listening to him Sunday (I was listening!)
And thought - for a Wheeling boy and I went to school with a bunch of them
He has as much southern charm and way about him as you could ever want
He’s good for us over at First Presbyterian
I thought and thought about what to talk with you all about
And how to present it
I even told Lyle Sattes - Dave Lanham and Karen Price
If they had something else to do at noon today
They should go do it - this might not be very pretty
I thought about bringing some slides of active mining sites
Reclamation - valley fills -
But our young intern went back to WVU last week
Was not here to help me - make it work
And I was afraid Ken Ward or Craig Selby
Would make fun of my pictures or me trying to operate a/v equipment
So you’re stuck with the spoken word
I also thought about having President Welch
Cut the electricity off about half way through the talk
That, of course, would be to demonstrate what it would be like
If coal is removed from the energy equation of this country
Because more than 50% of America’s electricity is made by burning coal
But I thought - to be totally accurate here in West Virginia
I’d have to have President Welch turn the electricity off for the entire program
Because we make 99% of our electricity here in West Virginia with coal
But I was afraid that was a little too cute
Someone who is a more accomplished speechmaker
Could make that happen and not stumble over it
Actually - I was afraid I wouldn’t be able to see my notes
Then I thought - maybe I can say something profound and intelligent
That will be quoted in tomorrow’s Gazette-Mail and it’ll
Make me sound brilliant and far-sighted
But - that hasn’t happened in 30 years - why would I expect it today
So you’re going to get about 15 minutes of coal talk
That’ll be filled with observations and conclusions from the last 30 years
Of representing an absolutely fabulous industry
That I’m so proud to represent
And one that has had and continues to have a great deal of importance
To our state and this nation - and- to Kanawha County
Did you know Kanawha is the 3rd leading producing county in the state
In 2006 - more than 13.5 million tons were produced by more than 1,500 miners
And those counties surrounding Kanawha produced more than 45.5 million tons of coal
And (I guarantee) a lot of those people live here - shop here -
And spend time in Kanawha
But I don’t expect you to love us - just because we pay taxes and employ people
I think we’re important for a lot of other reasons
And we’re under attack - being threatened by a lot of outside critics
And we need your help
We need you to better understand what we’re doing and why we think it’s important
I’ll try to link all that together
First and foremost
I want to say - I’m proud to be an American - and a West Virginian
I think we have all kinds of opportunity for a bright future
Because we have such a strong legacy
A strong legacy of truthfulness - looking after our neighbors -
And protecting our families and our people
Because WV Coal is all about our people
Without them we wouldn’t have a hearty coal industry or anything else
I start talking about our miners and managers first - because
You can’t run a mine without people
Good people
I don’t care what part of the world you’re in
You can’t do it
They need to be trained - drug free - devoted to work everyday
Committed to teamwork
We’re blessed here because we have -
The best coal miners and coal mine managers in the world
Operating under the toughest – environmental - safety and transportation laws
Most rugged terrain - geology and weather conditions
Of any place in this country - anyplace in the world (for that matter)
We have 105 separate regulatory agencies
That can show up and have something to say about the way
Our managers are running the mine
Or the way the miners are performing their duties
That’s 105 separate bosses
How many do you have in your business?
It takes at least (and that is if everything is perfect)
12 months to get the permits to open the smallest of mines
On the average it takes about 24 months to get all the permits
It takes a minimum of $10 million dollars to open the smallest of mines
Surface or underground
With that kind of investment
Predictability and certainty is a must
A must for a return on the investment
A must for the performance of our people
To be sure it is the best - from a safety standpoint -an environmental standpoint
A good neighbor standpoint
I always refer to our people as the best practicing environmentalists in the world
Our people love the land they work on - it’s where they grew up
Hunting the hills and fishing the streams
Where they’re mining today
They want their children and grandchildren to do the same thing -
They’ll do whatever it takes to protect that heritage and that future
That’s what our people are doing everyday
That’s the difference
They’re doing it - building ponds - planting trees - controlling water
Not talking about it or marching about it
They’re doing it
And they’re proud of what they do everyday--
They truly are the best environmentalists in the world
And they want to continue doing that - right here - close to home
We’re protecting the environment - better than ever
We’re coordinating our mountain top operations with
Highway construction - commercial developments - public facilities
Reclaiming properties for higher utility and development
We’re limiting our footprint
With sophisticated planning and accelerated reclamation
Many want to make valley fills the points of controversy in our permitting processes
If you read some of the parachuting journalists’ articles (Ken Ward)
You could easily think we are dumping - haphazardly - everything imaginable
In the streams and rivers of this state
And we’re the only ones doing it
The truth of the matter is
We use these structures after comprehensive engineering - evaluation and review
Only in the upper-most reaches of the most remote hollows of West Virginia
Usually it’s a ditch that’s being filled - a dry ditch
And the only time there is water, of any sort, is when it rains or the snow is melting
Most of the year it is a dry ditch
Yet we have judges attempting to send our people home
Because we’re filling these dry ditches
The fact is -
These ditches are constructed on the completed fills
In order to transmit the rain and snow melt - to the watersheds below
Valley fills are used any time you excavate earth and it swells up by 30%
They’re safe – engineered - environmentally sound
Southridge has a large valley fill - the only reason it wasn’t controversial
Was because there wasn’t a coal seam involved (I don’t understand it)
So it’s tough to start and operate a coal mine in West Virginia
But we have a lot of coal left to mine - 53 billion tons
And we’ve got a lot of smart people trying to figure out how to do it
How to sustain our 150 million tons per year production
It is critical that we increase extractive research -
Because if the coal is not mined here - it doesn’t do us a bit of good
Our seams are getting thinner - more difficult to access - have more rock and dirt
Our underground costs are running a little more than $43/ton
That’s why it is so important to figure out how to mine these remaining seams
They can build all the CTL plants and Future Gens they want
But if the coal is not West Virginia coal - then we’re going to lose out
Let me run through a list of items to provoke discussion and questions
Some of it is statistical - some is opinion - some is documented fact
West Virginia has 62 separate named seams of coal-
Located in 43 of our 55 counties
In other words – almost 80% of our state has coal reserves under it
Since we became a state (1863) 144 years
We’ve mined about 14 billion tons - we have 50 billion remaining
Last year we mined more than 158 million tons in 26 counties
With more than 20,000 direct coal miners (20,533)
And more than 28,000 coal handlers and specialty contractors (28,187)
Who depend on a mine operating every day
We’re the 2nd leading coal-producing state in the nation
We’re the leading producer of bituminous coal in the nation
We have more underground coal production than any other state
We have more Coalbed Methane recovery infrastructure than any other state
We have 13 power plants with a capacity of 14.200 MW
That use 36 million tons of our production annually
To make 99% of our electricity
At an average retail price of 4.5 cents/KWH
Just this past year we licensed the first new coal burning power plant in 30 years
It took 10 years to get all the permits and get through all the suits
That is unacceptable
Because - We should be the energy center of this country
We’re within ½ day’s drive of 60% of America’s population
We should be hanging power lines all over the state
So we can make the electricity here at home - close to the coal seams
And wheel it to those who need it in the SE, NE and Midwest
You see - the electrification of America in the 19th and 20th centuries
Was one of the most amazing engineering accomplishments in our history
It allowed us to win wars-industrialize our country - advance our standard of living
It put us ahead - it keeps us ahead
And coal was the key to that electrification
And it still is
Coal makes 52% of this nation’s electricity
There is no alternative (quiet confidence)
If you notice - the opponents or those who criticize fossil fuels
Never offer any realistic alternative
Oh sure - they talk about windmills - solar panels - renewables
But there’s no way they can ever make enough electricity
To feed this country’s appetite
They talk about Ethanol - but there’s not enough corn or switchgrass
And I read (the other day) - that ethanol was worse than regular gasoline (air quality)
Plus - the rush to make so much ethanol has raised the price of corn so dramatically
That it’s raising the price of food - everywhere
Coal to Liquids is a popular topic today
And I hope we get one of those plants -
We need it for energy independence and energy security
But when the largest consumer of electricity is
The Internet and its associated computer equipment
What we really need to be doing - is building power plants
Coal-fired -baseload power plants - close to the mines
To supply electricity to the people who need it and want it
So we can have a quiet confidence about our coal
Because we’re getting better everyday
At mining it - shipping it - using it
And there is no real alternative
But the world must be patient - either by force or leverage
I think one of the efforts of our opponents is to raise the cost
Of coal fired electricity - so it doesn’t have an advantage over other fuels
So we have court decisions, editorials, ad campaigns, movies
Documentaries and many detractors
Trying to raise the 4.5 cents/KWH cost to something more like
What New Yorkers are paying --- that is about 13 cents/KWH
We must do everything possible to maintain our advantage
As we pursue the no-emissions power plant
Since it has occupied a good deal of time and effort recently -
I want to talk about safety
America’s mines are the safest in the world
Underground mining has more risks than surface mining
But the point is - we are not - as an industry
One of the top ten most hazardous activities in the country
Despite what you would believe –listening to the news
But we’re being asked to do things
Based on theory --- not practicality
Rules are being rushed - and mandates are being made --
To purchase equipment that is not tested
Won’t be tested (according to NIOSH)
At least not by human subjects!
How are they ever going to know --- if it’ll be OK for our people?
If they don’t test these shelters -- before they require us to put them in our mines!
As a matter of fact this equipment is not even available today
Yet we’re being expected to buy it
Or be accused--- of not caring about our people --
Dragging our feet on safety
And wanting - to put profits before safety!
Our people finally got tired of being wrongly accused
They’ve offered to put the money that would be used to purchase
This non-existent—untested equipment in escrow
‘Til we get something that works
And - doesn’t give our people a - false sense of hope and confidence
The concept of protection is what we all want
But to try to make it work with rapidly developed - unproven equipment
Is not the way to do it
But we are making progress -
So we hope the policy makers will be more deliberate and practical
Underground communication systems are the same thing
Although it is not as threatening
Because we’re already talking to one another underground
We just not able to do it wirelessly
At least not yet
A lot of smart people are hustling to get something that talks through the earth
As soon as they can
If today’s equipment - can’t talk to everybody - track everybody
In every part of the mine - wirelessly
Let’s say that
Let’s don’t act like it can - then find out it can’t
We’re all working together - pushing to improve what we have
Nobody is dragging their feet
We want that wireless system more than anybody does
Again our people have offered to put the money in escrow
If that’s what the detractors want to argue about and accuse us of
But we shouldn’t be forced to buy something
That doesn’t do what we’re trying to accomplish
And isn’t any different or better than what we have now
The recent incidents in Utah and Indiana will bring new challenges
And we will continue to strive for workable requirements
Because - there is nothing more important to our people
Than making sure they get home safely every night
Our industry - fossil fuels everywhere
Are under attack from the global warming and green house gases front
Is it a problem? How big a problem is it? What should we do about it?
In the volumes and volumes of literature
You can find about anything you want
To support a position -
We need to get beyond the frenzy of convenient science
Being interpreted – in many cases
By people who didn’t take science classes in school
And telling us - what they want us to know
Before we dismantle the economy with over reaction
There has to be a deliberate and thoughtful approach
That protects our people -
I’m convinced we can do it
Because we have a lot of advantages right here in West Virginia
We must recognize them and take the lead
But we have to be aggressive - and make sure people have the facts
For instance, we here in West Virginia are a carbon sink
As a matter of fact
North America is a carbon sink according to a prestigious Princeton University study
I doubt you’ve read that anywhere!
Although we make 99% of our electricity with coal
And our carbon footprint is pretty big
We absorb more carbon than we emit
Because of our maturing Appalachian hardwood forests
We’re the 3rd most forested state in the nation
So we have a natural advantage
We need to make sure the world understands
We can burn coal - without net emissions of carbon
But before anything is done in Congress or in the world (for that matter)
The question that must be answered is -
What effect will the proposed controls have on our people
Working in and on the mines in West Virginia - in Kanawha County?
If the answer is - it will disrupt their lives and take their careers
Then they are on the wrong track -
Our politicians must protect our people
And not be listening to the shallow thinkers who are wanting
To sell books, movies and records
And return to their mansions that use 20 times more electricity than the normal home
They must listen to our people
They must protect them - their jobs and their way of life
So our challenges are great
We’re being sued in the courts on ten different actions (many are repetitive)
A couple of those if upheld could have a 50 million ton impact on our production - 1/3
We’re sustaining our streams through engineered and functional mitigation
Yet we have a federal judge who accepts out-of-state testimony of someone
Who’d never been on a mine site -
Putting our people’s jobs in jeopardy - creating uncertainty
There’s something wrong with that
We’re appealing it -
But it will take a long time to get through our courts
And the permitting agencies are paralyzed during these times
So - we must all pull together
And preserve the fossil fuel industry of this State
We can do that with aggressive stewardship - and truthful initiative
Combined with world class technology and a professional workforce
I hope you will join us
I hope you will take a copy of our new Coal Facts with you (on the table)
It will give you a better idea of how we make up more than 10%
Of West Virginia’s gross state product
And why it’s important to sustain our annual production of 150 million tons
I hope you understand the seriousness of the outside threats
Being advanced by people who
Never offer a real alternative or practical solutions
And don’t seem to care much about our people
We need your help -
We need you to be a Friend of Coal (decals available)
We need West Virginia to be the energy state
With an environment that attracts investment - advances stewardship
And protects our people - our families - our way of life -
Thank you.

For more information on the West Virginia coal industry, visit www.wvcoal.com
