Coal Age

MAR 2014

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T his month, like last month and the month before, Coal Age is publishing several stories that report the frustration that coal executives are feeling as they endure the excessive overreach by federal regulators. During February, at the Society of Mining, Metallurgy and Exploration's annual convention, North American Coal Corp. CEO Robert Benson spoke at the Coal and Energy Division luncheon (see News, p. 9). At a little less than 30 million tons per year, North American is the ninth largest coal producer in the U.S. Benson's message to young engineers in the audience that day was to take control of the negative political nar- rative that dogs our business. The news is not all bad these days and readers should also note some positive trends that are taking place in the U.S. coal industry. Spot prices for thermal coal have improved recently thanks to Mother Nature (See Marketwatch, p. 36) and the polar vor- tex (See Coaltrans USA Recap, p. 42). Increased coal use has utility operators question- ing whether they can continue to supply electricity reliably and follow through on scheduled coal-fired power plant closures. Natural gas prices are rising and increasing demand is exposing weakness in its distribution system. This situation prompted Sens. Joe Manchin (D-W.Va.) and Ed Whitfield (R-Ky.) to craft a bipartisan bill to restrain the Environmental Protection Agency's (EPA) regulato- ry overreach, which passed the House of Representatives on March 6. They penned an editorial for the Huffington Post that describes the impact of the EPA regulations to con- trol greenhouse gas emissions (See Dateline Washington, p. 12). While the industry is all too familiar with the indirect effects of the market squeeze created by the EPA regulations, underground coal operators are experiencing the feder- al regulatory overreach directly from the Mine Safety and Health Administration (MSHA). The industry is still struggling with some of the hasty rulemakings. The agency recently issued a warning on refuge chambers (See News, p. 13). For the first time this month, Coal Age delves into the issue of mine rescue teams and firefighting brigades (See Firefighting, p. 27). And then there is the debate that surrounds MSHA procedures related to Pattern of Violations (See Legally Speaking, p. 56). Where the coal business has one clear, undeniable advantage is cost — on a level playing field. While many groups are pointing to job losses due to regulatory overreach, that's probably a position the industry should avoid. Just as organized labor cannot jus- tify itself as a social welfare program, the coal industry has to stand on its own two feet and compete. What the coal industry needs is policymakers who will provide a level playing field. For now, the scales have been tilted in favor of natural gas. The organiza- tions that are rallying against the federal regulators need to base their arguments on the future costs to society and America's competitiveness based on the price of energy; and the costs that will be incurred by doing away with America's most plentiful fuel. Talking to your neighbors and friends, as Benson suggests, about the positive aspects of coal and mining is important. Odds are: You already live in an area that understands the importance of mining, and it's probably underrepresented in Washington. That message needs to be delivered to places that are unfamiliar with the true costs of regulatory policies. Mother Nature has opened the door for us. Now the industry should partner with other sectors to identify leaders with the political will to make changes in Washington that benefit most Americans. Coal Age , Volume 119, Issue 3, (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 11555 Central Parkway, Suite 401 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 Find the Political Will e d i t o r ' s n o t e 2 www.coalage.com Steve Fiscor 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 CA_pg02-03_CA_pg02 3/12/14 1:49 PM Page 2

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