Coal Age

JAN 2016

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Although it is uncertain precisely when the PUCO will issue a final order in the AEP case, it likely will be in January or February. It is possible, however, it could be delayed until spring. Westmoreland Restarts Buckingham Mine Colorado-headquartered Westmoreland Coal announced it has restarted operations at the Buckingham room-and-pillar opera- tion in Ohio and recalled its workforce after the resumption of operations by its largest customer in the state. Officials said December 15 that crews began production once again at the mine in Corning, Perry County, on December 7 thanks to the completion of repairs to American Electric Power's (AEP) Conesville Unit 4. "AEP is an important customer of both Buckingham and Westmoreland Coal," new CEO Kevin Paprzycki said. "We are excited to resume deliveries and contin- ue to develop our relationship with this key customer." Buckingham, according to Westmoreland data, has an annu- al operation capacity of 1.2 million tons from three mining units. The producer purchased Buckingham Coal for $34 mil- lion earlier this year. The 312-megawatt (MW) Conesville Unit 4, part of the 780-MW Conesville Electrical Generating Station, receives its coal from the mine via rail. Cooper Ridge to Produce Development Coal Corsa Coal Corp. is getting development coal out of its new Cooper Ridge underground mine in Tennessee, a move that is allowing the Canonsburg, Pennsylvania-based company to n e w s c o n t i n u e d B Y L U K E P O P O V I C H All the President's Men D A T E L I N E W A S H I N G T O N The major business news stories of 2015 all fea- tured the decline of the coal industry, as if we didn't know. Along with the falling fortunes of the oil and gas industry, there have been few glad tidings this holiday season for any in the fossil energy sector, least of all for coal. Compounding the crisis has been its sudden- ness. Few analysts predicted it, but then few foresaw the return of the "four horsemen:" the prolonged collapse in natural gas prices, China's economic crack up, an unusually warm winter adding to inventories and, not least, the Obama administra- tion's relentless determination to salvage a presidential legacy at the expense of our industry. Small wonder the result has sent chills throughout the economy as mines close, wells are stopped, exploration comes to a halt, capital pro- jects are put on hold and, of course, thousands lose their livelihoods. According to U.S. Department of Labor data, mining lost more jobs last year than in any year since 1986 — some 129,000, including contract employees, with coal losing by far the lion's share. But here's a twist that offers some consolation. The pain has been so far-reaching it has even touched those unlikeliest of victims: Obama's regulatory agencies. Yes, the very agencies that have con- tributed to this dismal state of affairs by driving the industry out of the market with punitive rules and guidance. These same agencies are now facing a dilemma. Fewer mines mean a smaller industry to regulate and fewer opportunities to demonstrate a reason to spend taxpayer dollars on needless bureaucracy. Spare a tear for these agencies. This has become a major crisis at the Mine Safety and Health Administration (MSHA) and the Office of Surface Mining (OSM). They've had to somehow argue with a straight face for bigger budgets even as they oversee a smaller industry. How can they do this? With nerve and gall, that's how. OSM asked for more regulators to implement the Stream Protection Rule that would neutralize 400 bil- lion tons of recoverable coal, more than half of the coal in the coun- try. Officials actually said the need for more staff would offset the loss of mine jobs. That's a relief. MSHA, too, wanted more money, for mine inspectors — to inspect fewer mines. This is why Bernie Sanders calls for higher taxes, to ensure that the last man standing in the way of a coal mine is not a bankruptcy lawyer but a regulator. Unfortunately for these agencies, House appropriators weren't moved. Not after the National Mining Association (NMA) pointed out the absurdity of asking for a bigger budget and more regulatory attorneys to throw more mine operators out of business and more of their employees out of work. To be fair, MSHA and OSM were only doing their master's bidding. Vetoing perfectly good mine permits, saddling operators with a humongous, knee-buckling regulatory load and proposing guidance calculated to keep coal in the ground — this is the White House's game plan. Regulators were merely following orders. Expect more of the same this year. In his farewell State of the Union speech, the president — beset by a slowing economy, collaps- ing manufacturing industry, his foreign policy in disarray — assured nervous Americans he would accelerate the move away from afford- able energy to costlier energy. No more "subsidies" for federal coal lease sales; more "investment" for renewables. His White House career is certainly proof that elections have con- sequences. Luke Popovich is a spokesperson for the National Mining Association, the industry's trade group based in Washington, D.C. " Fewer mines mean a smaller industry to regulate and fewer opportunities to demonstrate a reason to spend taxpayer dollars on needless bureaucracy. " 12 www.coalage.com January 2016

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