Wednesday, September 28, 2011

Bill for Denying Coal Bust Finally Coming Due

Coal has always been a boom-bust industry, and has always dragged its dependent communities up and down with it. But for almost a century, the booms have been getting progressively smaller and shorter, the busts steeper and longer.

For decades, liberals have begged leaders in Kentucky and nationally to hedge our dangerous dependency on coal with secure jobs in safer and more reliable renewable energy. Long before climate change became a crisis, Big Coal was a clear and present danger to the economy.

Now the final bust is upon Appalachia, and coal-pandering states like Kentucky are about to free-fall without either economic or energy alternatives as a cushion.

From AP Enterprise:

Business owners like Howard, politicians and miners in the hilly coalfields of Central Appalachia blame the industry decline on tougher regulation from the Obama administration. They aren't as ready to talk about something a change in administrations cannot fix. The region's thick, easy-to-reach seams of coal are running out, forcing many operators to shift to cheaper and more destructive mining methods that draw heavier environmental regulation.

Coal here is getting harder and costlier to dig - and the region, which includes southern West Virginia, Virginia and Tennessee, is headed for a huge collapse in coal production.

The U.S. Department of Energy projects that in a little more than three years, the amount of coal mined here will be just half of what it was in 2008. That's a significant loss of a signature Appalachian industry, and the jobs that come with it.

"The seams of coal that are left in this area are harder and harder to mine, and they're thinner and thinner and thinner," said Leonard Fleming, a retired Kentucky miner and union leader in Letcher County who worked in the industry for 32 years.


The Energy Department's statistical agency, the Energy Information Administration, says production is expected to drop to 112 million tons by 2015, less than half of the 234 million tons mined three years ago.

A collapse of that magnitude would have a devastating effect on the economies in eastern Kentucky and southern West Virginia, which produce about 90 percent of Central Appalachian coal.

There were about 37,000 coal industry employees in Central Appalachia in 2008, accounting for anywhere from 1 to 40 percent of the labor force in individual counties, according to a report by Downstream Strategies, a consulting firm in Morgantown, W.Va., which issued a report on the region's coming decline. The report blames the decline on the region's depleted reserves, environmental regulations as well as competition from regions that have lower operating costs, like the western U.S.

"We are going to see declines in labor and jobs, and it's going to happen rapidly" in West Virginia, said Rory McIlmoil, who helped draft the report. McIlmoil said that state is expected to see a decline of over $100 million in the taxes coal operators pay to mine in the state.

If the loss projections are true, "that's going to have a drastic effect" in eastern Kentucky, said Brad Hall, president of the Southeast Kentucky Chamber of Commerce in Pikeville.

"There's approximately 18,000 to 20,000 miners in Kentucky right now," Hall said. "If those production levels go down ... you can see what effect that would have."

Read the whole thing.

Eliminating environmental regulations will not add a single shovelful of coal to Appalachian production or save a single job.

Big Coal is done in the east, and they know it. But they're going to strip every last dime out of the hides of mountain communities before they leave.

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