Tuesday
February 9, 2010



Coal lobby, Congress upset with permit ‘backlog’

Several coal state lawmakers are coming to the aide of the National Mining Association, as the industry group objects to what it says is a backlog of new mining permits that haven’t been approved.

According to an NMA news release:

Representative Zach Space (D-Ohio) and eight additional members of the U.S. House of Representatives representing coal mining operations throughout the Ohio River Valley today wrote the U.S. Army Corps of Engineers’ Brigadier General John W. Peabody expressing their “deep concern with the growing backlog of coal mining permits currently pending” and the “grave consequences for our constituents and local economies” posed by the delays.  

The delegation pointedly asks the Corps if it has “developed a plan that will clear the backlog of coal mining permits and assure processing of future applications within the timeframes provided for in the agency’s regulations?”  The letter also seeks an accounting of the permits pending in each District Engineers Office, how many permits had “been deemed complete” and what criteria, if any, the Environmental Protection Agency (EPA) has furnished the Corps regarding which permits will be subject to further review.

(For readers in West Virginia: Take note that Rep. Nick J. Rahall, D-W.Va., also signed the letter to the Corps).

The letter from lawmakers to the Corps (available here), is apparently the result of a letter that various state coal lobby groups sent to lawmakers (that letter is here).

14 comments

1 Red Desert { 06.01.09 at 6:43 pm }

All of the signatories are Democrats. Four are from Ohio, two from Illinois and two from Indiana. Do any of them have MTR operations in their districts? The letter mentions operations that will affect mining jobs for their constituents. That seems odd. It’s also odd that no one but Rahall is actually from Appalachia (Ken may correct me on that) Rahall would be the only one with mines in his district, am I correct? BTW, how much surface mining is actually in Rahall’s district? Isn’t most of it in the neighboring CD?

2 Bob Mooney { 06.01.09 at 7:20 pm }

Gee whiz, I thought there was an abundance of permits since existing coal mines are cutting back production and laying off miners.

How much time does it take for a coal mining permit? How much for a wind farm? A feedlot operation? A FCC license? A landfill operation? Or worse yet, a boat dock in Florida?

Maybe Kwik Kopy centers can be set up throughout the coalfields so permits can be issued day and night of everyday — or even have self-permitting to make it instantaneous.

Or just deny the permits to eliminate the backlog.

3 Scott 14 { 06.01.09 at 9:24 pm }

Mr Mooney,
The vast majority of mines that have closed or reduced production did so because of economics not permit issues.
During the market run up of 2008 many coal producers started or ramped up production at high cost operations. When the market softend in early 2009 these mines were no longer viable and as a result companys acted. Many low cost operations are the ones with permit issues. As for the time it takes for wind farm permits, you would need to ask a expert. The time a mining permit that used to take 6 to 9 months to be approved now takes 2 to 4 years and that is with out court challenges. The kuick kopy idea is a good one I will have to write my senator.

4 Bob Mooney { 06.02.09 at 9:12 am }

Dear Scott 14, I have permitted and inspected coal mining operations though it has been a couple of decades ago. Delays and backlogs can be for many reasons. (For instance, in Florida, counties pay the Army Corps of Engineers to hire extra people to process their permits.) While jesting about it I still very well realize that every business needs to have permits issued within expectable time frames. Coal mining is a difficult business and my hat is always off for those able to do it well.

5 Ken Ward Jr. { 06.02.09 at 10:01 am }

Red Desert –

Boccieri, Space, Ryan and Wilson are from Ohio; Ellsworth and Hill are from Indiana; Costello and Hare from Illinios.

Rahall represents West Virginia’s 3rd congressional district. That includes, for example, the counties of Boone, Logan, Mingo, Nicholas, Fayette, Raleigh Webster. These are indeed the major coal-producing counties in Southern West Virginia, and the major counties where most of the mountaintop removal is going on.

I believe that Ellsworth’s district in Indiana includes some coal mining, as does Costello’s district in southern Illinois and Wilson’s in Southern Ohio. Wilson’s district also includes counties that are part of the Appalachian Regional Commission’s area.

Ken.

6 Bob Mooney { 06.02.09 at 11:15 am }

How about The Charleston Gazette investigate the coal mine permit process to ascertain what kind of delays occur and why? (Besides, the permitting process should be transparent with today’s technology — like tracking a mailed package.)

7 Ken Ward Jr. { 06.02.09 at 11:24 am }

Bob,

Frankly, I’m hardly convinced that the problem with permitting is delays in issuing permits that comply with the law.

Randy Huffman, secretary of the WVDEP, has explained numerous times that one of the big problems is mining consultants that submit bad permits and take too long to answer questions and correct problems… this is from a story on this issue last year:

“Huffman also told coal operators that he plans to begin using DEP’s authority to restrict the list of consultants that can submit mining permit applications to his agency.
“Too many consultants are submitting faulty applications, taking too long to submit corrections, and then blaming DEP when permits aren’t issued in a timely fashion, Huffman said.
“You’re getting played on a daily basis by your consultants,” Huffman told operators.

Yes, the permitting process should be more transparent. This is a bigger problem with the Corps and EPA than with WVDEP (I can’t speak for state regulatory programs in other states). The Corps has no online database for its 404 permits. WVDEP does.

In addition, the real question with this supposed “backlog” of permits is:

1. Do these permits comply with the law? The industry assumes that they all do, and should all be issued.

2. Concerning delays and potential delays, the industry has not explained which — if any — of these permits are running out of coal or operational space and need to be approved right now to avoid layoffs.

Ken.

8 Bob Mooney { 06.02.09 at 2:58 pm }

Ken,

Agreed and agreed and agreed.

A review would show the ineptitudes that exist on both sides. (You didn’t say if Secretary Huffman actually did what he said he was going to do about formally blacklisting some consultants.)

I’m sure there’s much efficiency (and timeliness) that can be gained from a review and improved permit processing, plus a lot of repetitive inquiries and FOIA requests could be eliminated.

Disagreed: The mining industry does not have to explain anything — timely filing permit applications and renewals is their only obligation.

Bob

P.S. You can make a book out of the permit processing review like these reporters did with wetlands permitting: http://www.pavingparadise.org/

9 Red Desert { 06.02.09 at 3:38 pm }

Thanks Ken–

My guess is that the permits in the other states (w/ possible exception of SE Ohio) wouldn’t be included in this group of 150-200 that were held up by the Chamber’s ruling and that the EPA is reviewing. Is that true? I can understand Rahall asking for clarity on these permits w/ respect to jobs in his district, but not the others.

Bob Mooney–

I think Ken meant that the coal companies, since they are making a public (and political) argument for immediate issuance of the permits, should explain to the public if and where these permits are actually needed now to avoid layoffs. You are surely correct that such an explanation is not a permit requirement.

10 The Understory » The Coal Industry’s Inside Battle to Keep MTR Alive { 06.02.09 at 7:01 pm }

[…] allies who lives in West Virginia about this article on the Charleston Gazette’s blog: Coal lobby, Congress upset with permit ‘backlog’ written by Ken Ward Jr. It seems that 8 members of the United States House of Representatives who […]

11 fileshare » June 2, 2009 { 06.03.09 at 5:10 am }

[…] Coal Lobby’s Congressmen Upset with Permit ‘Backlog’ (Charleston Gazette) […]

12 Bob Mooney { 06.03.09 at 7:03 pm }

Mr. Scott14,
This must be some of those high cost operations that you said are being cut back.

June 3, 2009

Canonsburg, Pa.-based Consol announced the cuts Wednesday, saying it now expects to produce 60 million tons of coal this year, down from 62 million.

Consol says production is being cut at its Blacksville No. 2 mine in northern West Virginia. The mine’s longwall — a high-efficiency mining machine — was idled Tuesday and will remain out of service through July 18.

Consol earlier said it was idling a mine in eastern Kentucky and another in southern West Virginia July 1.

The company says it plans to resume production at its Buchanan mine in southwestern Virginia in mid-July.

Source:
http://www.forbes.com/feeds/ap/2009/06/03/ap6501608.html

===

Also:

The coal industry will surely argue that tighter regulation of soot will force Americans to pay higher electrical bills, but it’s important to remember that coal power is only cheap because the plants generating it are old and outdated: The median existing coal-fired power plant was built in December 1964, before the Clean Air Act even existed. The construction has been paid off, but government and individuals continue to pay for the side-effects of these filthy plants.

Source:
http://www.sfgate.com/cgi-bin/blogs/green/detail?entry_id=41094

Total carbon emissions by S&P 500 firms totaled 4,307 million tons in 2007, more in total than all the emissions made by all the cars, trucks and buses in the U.S. The Utilities sector was the largest polluter, making 59% of GHGs from firms in the S&P 500. How much would these companies suffer if pressed to pay for carbon? The IIRC estimated the 34 utilities in its study would see carbon costs reduce their combined earnings by 45%.

Source:
http://www.forbes.com/2009/06/03/cap-and-trade-intelligent-investing-carbon.html

13 Scott 14 { 06.04.09 at 8:18 am }

No Mr Mooney, Blacksville no 2 is not a high cost operation. It is one of our (I work for CONSOL) lower cost operations. It is easier to cut production at a longwall mine for a number of reasons. One of the reasons for Blacksville’s idling of it’s longwall machine is the machine was running low on work space and time was needed to develop more panel. Buchanan was idled for market reasons and so de-watering issues could be solved. If market conditons improve later in the year both operations could be at full production with in a month. That 60 million number could easily turn into 70 million.

14 Bob Mooney { 06.04.09 at 10:52 am }

Scott 14, Thanks. (I was a state inspector on all of the Consol surface mines in Ohio, 1975-1978.) YES, nearly all coal mines are currently underproducing — very unfortunately. Coal provides a livelihood for many areas that would be desolate otherwise. I thank you and every miner for your hard work.

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