Story by Juliet A. Terry
CHARLESTON -- As the federal government considers new coal mine safety legislation, nine eastern states decided to formalize an informal practice of meeting to discuss issues facing their respective coal industries.
The Eastern Coal States Coalition has paid at least two visits to Congress since late June, and the members will continue to keep a close eye on how federal lawmakers focus on mine safety and other industry issues.
Most recently, the coalition submitted comments during a July 26 public hearing on two new mine safety bills that are pending in the House Education and Labor Committee’s Subcommittee on Workforce Protections. In late June, the coalition visited several members of Congress to introduce itself and explain the issues facing eastern coal producers.
“The eastern states always met periodically, primarily to exchange information about the different rules and policy issues affecting mining,” said Chris Hamilton, senior vice president of the West Virginia Coal Association, a coalition member.
“Given all the challenges before the coal industry today, the eastern states felt it was timely for them to develop a more cohesive, unified voice for eastern coal production,” he said.
The member state coal associations are West Virginia, Alabama, Kentucky, Illinois, Indiana, Maryland, Ohio, Pennsylvania and Virginia. Other regional coal associations, coal operators and associated groups also are part of the coalition.
Those nine states account for about 42 percent, or more than 490 million tons, of the nation’s coal production output. The states’ mine industry employ 80 percent, or 62,000, of the country’s miners and have about 90 percent (550) of the 600 underground coal mines in America.
Hamilton said eastern coal states are not worried just about the regulatory environment in Washington, D.C. They also are concerned about legal problems and market competition. He said eastern coal has lost market share to imported coal and to coal being brought to the region from western producers.
The total percentage of eastern-mined coal has dropped in the past decade, he said, and imports are on the rise. “Imported coal is at an all-time high,” he said. “In fact, major rehabilitation is under way at all our ports so they accept even more (imports) in the future. Plus, we have lost probably 50 percent of our export market over the past decade to foreign suppliers.”
According to the Energy Information Administration’s recap of 2006 U.S. coal production, imports indeed are on the rise. The EIA reported U.S. coal exports declined slightly while coal imports increased. U.S. coal exports totaled 49.6 million short tons, a decrease of 0.3 million short tons over 2005.
Coal imports in 2006 reached a record level, the EIA said, ending the year at 36.2 million tons, 5.8 million tons higher than in 2005.
Increased market pressures on eastern production are not expected to abate, Hamilton said. That obstacle, coupled with progressively more stringent regulatory requirements and more difficult geology, means coal mining is not getting easier by any means.
“We also have work force shortages, continued legal issues and challenges centered on surface production,” he said.
With all of those factors in mind, Hamilton said it made sense for the nine eastern coal-producing states to band together officially and work as one to preserve their industry.