“We’ve had a lot of talk about environmental concerns from mining coal, and I think all of us want to be better (stewards) of the environment,” Delegate Daniel J. Hall, D-Wyoming said. “Obviously, we need to improve, but we don’t need to make it tougher for these guys to mine coal.
“I don’t think we see the same things in the economy here in southern West Virginia as they do in other parts of the country,” Hall said. “I know coal is down, but you look at ICG in Beckley — they’re still hiring. Cleveland Cliffs in Pineville had a lay-off, but they’re still working. Obviously, the economy is a concern, but I don’t think the recession will be as severe here as it may be in other places,” he said. “Obviously, the economy is down, but we don’t need to make it tougher on those guys (who mine coal.)”
Delegate John H. Shott, R-Mercer, said that one of his clients shared a story with him about fluctuations in coal prices that illustrates the roller-coaster ride the coal economy has been on during the past year.
“He told me that last year about this time, he was getting about $55 per ton on his coal,” Shott said. “When prices peaked in October, he was getting about $187 per ton. Now, he’s getting between $80 and $85 a ton. Even at that price, he can make money in the coal business. I think it will come back.”
“We all support coal,” State Senator Don Caruth, R-Mercer, said. Caruth is minority leader of the state senate. “The problem is that while many people clamor for clean-coal, we don’t have the technology yet to do what most people want. Eventually, we will have the technology we need to proceed with clean-coal technology projects, and southern West Virginia will be a leader in that push.”
Caruth said that it is important for the entire state to support efforts to improve clean-coal technology as well as to continue to support the coal industry,
State Senator H. Truman Chafin, D-Mingo, is no Pollyanna when it comes to taking a realistic look at southern West Virginia, but he’s bullish on coal — so much so, that he sent an e-mail to the newspaper following the editorial board session pointing out that “Cramer just gave his stock picks on CNBC and he says: “...coal is a winner, no matter what (President Barack) Obama wants,” and urges everybody to buy Peabody. I also think Massey and Arch are great buys at these historical lows.”
Chafin said that of the available energy sources, coal is the most abundant. “We’re not going to run out of coal,” he said. He added that anyone who watched Obama’s inauguration could see the prominent position that U.S. Senator John D. “Jay” Rockefeller, D-W.Va., had in the process and indicated that Rockefeller has always supported the things that help West Virginia.
Delegate John R. Frazier, D-Mercer, said that West Virginia will benefit from the investment of federal dollars into clean-coal technology. Frazier said the revenues the state receives from coal make all the difference in the state in making a balanced budget.
“All the revenues from coal are strong now, but if the economy continues to decline, it’s possible that by the end of the year, the surplus will be gone,” Frazier said. “I think we’ll have to be very cautious as we proceed so we can do something if we need to do in order to balance the budget.” Still, Frazier said the emphasis on clean-coal technology will ultimately benefit the state.
“The first thing we need to do is not make it any more difficult for coal companies to mine coal,” Shott said. He added that the search for alternative energy sources including wind power may provide opportunities for windmill projects on mountaintop removal sites.
“Hopefully, we will have the technology ready when the Mingo County plant comes on line,” Chafin said, in reference to the $3 billion coal-to-liquids plant that could be on line as early as 2013. “If they can tie carbon sequestration technology in with that plant, they will be able to produce 1,000 barrels of oil per day without harming the environment.”
“Coal is an absolute necessity, and the coal severance tax has given us a surplus,” Caruth said. “I have always been an advocate of investing in new coal technology so West Virginia can do even more about our abundant coal reserves.” He said that legislators will be examining the rights of surface owners in the session, but said the coal industry remains a vital part of the state’s economy.