Coal Age

DEC 2014

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D ecember was not a complete wash. Coal Age is reporting a few good stories this month, which helps break up the monotonous reports of WARN notices and companies exiting the coal business. First off, coal production is holding steady compared to last year, which might be the new norm. Total coal production for the U.S. currently stands at 925 million tons, 0.4% more than one year ago. America's coal miners are producing more than 85 million tons per month, so 2014 should remain above the psycho- logically important 1-billion-ton mark. Does the fact that Alpha Natural Resources managed to save 750 jobs in Appalachia offset the news that CONSOL Energy is spin- ning off its coal assets? Yes, but it's difficult to watch an industry leader continue to dis- tance itself from coal. Seeing Ambre Energy throw in the towel as far as its Oregon port facilities and exporting Powder River Basin coal dampens the expectations for a new Northwest Passage for coal exports in the U.S. The November midterm elections changed the tide politically in Washington, but will it help the coal business as far as the federal government's regulatory overreach? The answer is, yes, it should, but a lot of the damage has already been inflicted and it may be permanent. The Environmental Protection Agency continues along an economically unre- alistic path, more recently proposing a new Clean Power Plan. This month, Luke Popowich (see Dateline Washington, p. 14) reports on how the plan was received by utility executives. Coal operators have scored some recent legal victories. Linda Otaigbe (See Legally Speaking, p. 56) basically retells the story of David and Goliath — that would be Brody Mining challenging the Mine Safety and Health Administration's (MSHA) Pattern of Violations (POV) policy. The agency, according to an administrative law judge, failed to adequately define the P in POV. If constant litigation by mine operators contesting citations is not a clear warning that MSHA's practices are unfair, would a letter drafted by retired chairman of the U.S. Federal Mine Safety and Health Review Commission Mike Duffy and signed by 10 former mem- bers of the commission be enough? That's what happened in November. The commission- ers were unhappy about MSHA's proposed rule change on civil penalties, which they believed usurped its powers by condensing citation description categories and eliminating independent assessment of penalties for MSHA-alleged violations. No doubt, these are tough times for the coal business and 2014 was a difficult year for many, especially for coal operators in Central Appalachia. The situation with a soft met coal business has further exacerbated the problem. On the other hand, the mines in Northern Appalachia have maintained production (See Marketwatch, p. 22). While the news is not always good, readers should not lose sight of the fact that the U.S. coal industry retains 40% market share as a fuel and it will mine more than 1 billion tons. Customers understand the value in an inexpensive, diverse fuel mix. American coal miners deserve respect and all they ask in return is to be treated fairly. Enjoy this edition of Coal Age. Have a safe and happy holiday season. Coal Age , Volume 119, Issue 12, (ISSN 1040-7820) is published monthly by Mining Media Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining-media.com). Periodicals postage paid at Englewood, CO, and additional mailing offices. Canada Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: circulation@mining-media.com. Current and back issues and additional resources, including subscription request forms and an editorial calendar, are available online at www.coalage.com. SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, $56.00, 2 year, $96.00, 3 year, $162.00, Student, $16.00, Outside the USA and Canada, 1 year, $77.00, 2 year, $137.00, 3 year, $225.00 surface mail (1 year, $145.00, 2 year, $257.00 airmail delivery). For subscriber services or to order single copies, write to Coal Age , 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of select- ed archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521- 0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com. POSTMASTER: Send address changes to Coal Age , P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400. Obtain further information at www.copyright.com. COPYRIGHT 2014: Coal Age, incorporating Coal and Coal Mining & Processing. ALL RIGHTS RESERVED. www.mining-media.com Mining Media International Editorial Office 11655 Central Parkway, Suite 306 Jacksonville, Florida 32224 U.S.A. Phone: +1.904.721.2925 Fax: +1.904.721.2930 Mining Media International Corporate Office 8751 East Hampden, Suite B1 Denver, Colorado 80231 U.S.A. Phone: +1.303.283.0640 Fax: +1.303.283.0641 President/Publisher—Peter Johnson, pjohnson@mining-media.com Vice President of Sales & Marketing—John Bold, jbold@mining-media.com Midwest/Eastern U.S. & Canada, Sales—Victor Matteucci, vmatteucci@mining-media.com Western U.S. & Canada, Sales—Mary Lu Buse, mlbuse@mining-media.com Scandinavia, UK and European Sales—Colm Barry, colm.barry@telia.com Germany, Austria & Switzerland Sales—Gerd Strasmann, info@strasmann-media.de Australia/Asia Sales—Lanita Idrus, lanita@mining-media.com Japan Sales—Masao Ishiguro, ishiguro@irm.jp Indonesia Sales—Dimas Abdillah, dabdillah@mining-media.com Classified Advertising—Norm Rose, nrose@mining-media.com Show Manager—Tanna Holzer, tholzer@mining-media.com Production Manager—Dan Fitts, dfitts@mining-media.com BY STEVE FISCOR / EDITOR-IN-CHIEF A Difficult Year Ends with a Few Positive Signs e d i t o r ' s n o t e 2 www.coalage.com Steve Fiscor, Coal Age Editor-in-Chief sfiscor@mining-media.com Editor-in-Chief—Steve Fiscor, sfiscor@mining-media.com Western Field Editor—Russ Carter, rcarter@mining-media.com Field Editor—Donna Schmidt, dschmidt@mining-media.com European Editor—Simon Walker, simon.iets@btinternet.com Latin American Editor—Oscar Martinez, omartinez@mining-media.com News Editor, Mining—Joseph W. Kirschke, jkirschke@mining-media.com Assistant Editor—Jennifer Jensen, jjensen@mining-media.com Graphic Designer—Austin St. Clair, astclair@mining-media.com

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