Coal Age

APR 2017

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4 April 2017 news EPA Launches New Agenda at a U.S. Coal Operation U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt visited the Harvey mine in Sycamore, Pa., in April to meet with coal miners and announce the agency's Back-to-Ba- sics agenda. The agenda reinforces Pruitt's commitment to refo- cusing the EPA, returning power to the states, and encouraging job growth. "The coal industry was nearly devastated by years of regulato- ry overreach, but with new direction from President Trump, we are helping to turn things around for these miners and for many oth- er hard working Americans," Pruitt said. "Back-to-Basics means returning EPA to its core mission: protecting the environment by engaging with state, local, and tribal partners to create sensible regulations that enhance economic growth." Pruitt spoke with coal miners about the President's recent En- ergy Independence Executive Order, which directs EPA and other federal agencies to review the Clean Power Plan and revise regula- tory barriers that impede energy independence, including unnec- essary burdens on coal miners and coal-fired electric utilities. The miners relished the visit and the announcement. "We welcome Administrator Pruitt to Southwestern Pennsylvania and are very encouraged by the new Administration's commonsense approach in balancing the need for environmental protection, en- ergy development and economic growth," Jimmy Brock, CEO of CNX Coal Resources, said. Rachel Gleason, executive director of PA Coal Alliance said the organization looks forward to new direction from the EPA. "We are hopeful that Administrator Pruitt will work with us to stop the systematic regulatory approach to dismantle industry, and work with us to continue responsible mining and contribute billions to Pennsylvania's economy," she said. Hal Quinn, president and CEO of the National Mining Asso- ciation, said Pruitt's appearance should give confidence to coal communities across the country. "The days when our government stands in opposition to them are over," he said. "And the appreci- ation they deserve for securing the nation's energy supply for our manufacturing industries and families is finally at hand." Following the President's Energy Independence Executive Or- der, Pruitt signed four notices to review and, if appropriate, to re- vise or rescind major, economically significant, burdensome rules issued by the previous administration. This includes the so-called Clean Power Plan that threatens over 125,000 U.S. jobs. EPA is also restoring states' important role in the regulation of local waters by reviewing the WOTUS ("waters of the U.S.") rule. b r e a k i n g n e w s Bowie Pays the Price for Failed Deal Bowie Resource Partners, which is mostly-owned by the Galena Pri- vate Equity Resources Fund, announced that its founder and chairman stepped down (See People in the News, p. 13) after Galena provided the funds to settle outstanding payments, including a termination fee owed to Peabody Energy. During June 2016, St. Louis-based Peabody sued Bowie over a failed $358 million deal to sell Peabody's Colorado and New Mexico operations to Bowie. The deal collapsed and Peabody Energy eventually declared bankruptcy. The lawsuit sought to collect a $20 million ter- mination fee from Bowie plus related expenses and interest. The deal, which fell apart when Bowie could not secure funding in a soft market would have included Peabody Energy's Twentymile mine in Colorado and the El Segundo and Lee Ranch mines in New Mexico. Bowie supplies coal to western US power generators and export markets. Based in Louisville, Kentucky, with a regional office in Grand Junction, Colorado, the company employs more than 950 and produces 12 to 14 million tons of thermal coal per year. Galena is a private investment arm of the Trafigura Group, a world leading commodity trading firm. As of February 2017, the fund had three investments in its portfolio including in Bowie Resource Partners. The fund is also a majority investor in Mawson West, a copper and silver-focused resource company operating in the Katanga Basin in the Democratic Republic of Congo and in Finland-based zinc and nickel mine Terrafame Ltd. The Galena Private Equity Resources Fund has invested in Bowie since August 2013, in Mawson West since December 2014 and in Terrafame Ltd since February 2017. EPA Administrator Scott Pruitt (wearing a tie) announces the agency's Back-to-Basics program surround by coal miners at the Harvey mine.

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