Group Looks For Ways To Help Coal

The Register-Herald, June 13, 2005

Coal has displayed a Jekyll and Hyde personality in its storied life -- known as boom and bust -- and lawmakers wondered Sunday why the boom side can't take over for good.

In its organizational meeting, Finance Subcommittee C agreed to look at all aspects of West Virginia 's bedrock industry. That means over the next six to eight months, the panel will be eyeing the tax structure, permitting, infrastructure -- anything that affects coal.

"It's all pretty much on the table," promised the chairman, Sen. Billy Wayne Bailey, D-Wyoming. "Hopefully, by next January, we'll be there."

At the suggestion of Delegate Ron Thompson, D-Raleigh, the panel agreed to visit deep and surface mine operations, likely in late summer or early fall. Bill Raney, head of the West Virginia Coal Association, agreed to set up visits by the committee.

Raney said the industry is "excited" to see a special legislative panel formed to look exclusively at its business in West Virginia . In industry publications, he told the lawmakers, there is a perception of "unreliability" about Central Appalachian production, given the permitting, transportation and diminished reserves.

Raney reminded the lawmakers the special panel came about because of the Legislature's decision to tack a 59-cent severance tax on coal to pay the lion's share of a revenue stream for retiring the workers' compensation liability.

Coal's contribution was couched in a projected annual output of 144 million tons, he pointed out. The last survey completed show a production of 153 million, so "we're just real close to that threshold," the industry leader said. "We feel it's imperative to do everything possible to make certain were mining and selling 144 million tons," he said.

"It's becoming more and more difficult as you well know. The reserves are getting thinner and we're getting further away from transportation."

Raney disputed the notion that West Virginia is depleting its coal. "We've got an enormous amount of coal remaining here in West Virginia ," he said.

Delegate Eustace Frederick, D-Mercer, himself a mining engineer, moved the panel to take input from Marshall and West Virginia universities, the Department of Environmental Protection, the Public Service Commission -- any entity with needed information. "The state is going to have to come up with some really innovative ways to stay competitive," Frederick said.

"Right now, the price of coal is high. But it doesn't stay there. I've seen it go up and go down."

And, the committee accepted a motion by Sen. Sarah Minear, R-Tucker, to meet more than once within a three-day interims session, if it's deemed necessary.

The panel also wants the DEP to conduct a walk-through in its permitting process -- long a thorn in the industry's side.

Raney said the process causes investors to shy from pumping into operations, since they are uncertain when or if a proposed operation can get off the ground.

"It's a huge part of it," he told Minear.

Delegate Richard Browning, D-Wyoming, alluded to the industry's up-and-down reputation, noting there have been three major booms -- World War II, the 1970s, and the present. "I'd like to know what's causing it," Browning said. "And how it can continue."