PAGE 4A
MONDAY, MARCH 26, 2012
TIMES WEST VIRGINIAN
The state of coal in West Virginia Financial benefits of coal 144 million tons produced divided by 27,892 coal jobs as noted in the 2010 Coal Facts equals a per capita annual coal production of 5,163 tons. We can then use .69 (100/144) to get our basic calculation of 19,245 jobs per 100 million tons produced. From there we can extrapolate the following data for 1 million tons of production. Note: Jobs and other economic impact data are based on this multiplier applied to the data from the Joint MU/WVU Economic Impact Assessment Study of 2010, which used 2008 data as its baseline. Employment: Direct
192
direct mining jobs
Indirect
250
support jobs
Induced
170
induced jobs
Total:
612
total jobs
Payroll: (note: estimates based on MU/WVU study data) Direct
$13.2 million annually
Indirect/Induced
$22.7 million annually
Total
$35.9 million annually
Total Economic Impact: $260 million annually Production Value: $86.1 million Severance Taxes: $3.8 million (annual coal severance) County Distribution: $284,418 (annual 75% distribution total) General Taxes: $4.9 million PHOTO COURTESY OF CONSOL ENERGY
Pictured above is Consol Energyʼs Robinson Run coal preparation plant. In Marion County alone, there are 1,600 coal mining jobs, and the industry is a major economic engine for North Central West Virginia.
AML Fund: Calculated using 60 percent/40 percent underground versus surface production as baseline as indicated by production data reported in 2010 Coal Facts Underground
BY BILL RANEY WEST VIRGINIA COAL ASSOCIATION PRESIDENT CHARLESTON — While the rest of the country, and the world for that matter, struggle to pull themselves from the depths of recession, West Virginia has weathered the storm. Today, West Virginia is one of only a hanful of five states that have maintained budget surpluses over the past two years. This has been due to strong, effective leadership in the governor’s office and the state legislature who have pursued sound, fiscal policies, but the most important single factor has been the state’s coal industry. The $26 billion coal industry and the 63,000 jobs it provides has provided a solid foundation for the state’s economy, and the
estimated $1 billion in taxes paid by the industry has provided a dependable, stable source of funds for state and local governments. The other natural resource industries have also been a big help, but the lion’s share of severance taxes ($400 million) have come from the coal that is mined by West Virginians and sold across the country and the world. West Virginia knows how
important coal is to its economy. So do West Virginians. In fact, most of the world recognizes the value of West Virginia coal. Most of the world, that is, except for the federal bureaucracy in Washington, DC. Some folks in Washington treat our nation’s most abundant natural resource as a liability. This is unbelievable! The individual states understand the importance of coal as well. They want to protect their “new wealth” industries, those that take something of “little value” and turn it into something “much-more valuable.” Coal certainly fits that definition as it is used to make electricity, steel and a wide array of by-products that are critical to our everyday life. It is no coincidence that the five states I mentioned earlier that had and continue to have
budget surpluses are “energy states” — West Virginia, North Dakota, Arkansas, Arizona and Wyoming. The other states are running deficits ranging from small to huge. So, yes, the energy-producing states are doing everything possible to treat their natural resources, coal – oil – gas – timber – water, like assets. The eight Appalachian states of West Virginia, Kentucky, Virginia, Alabama, Tennessee, Ohio, Pennsylvania and Maryland are producing more than one third of America’s coal. And these eastern states account for 64 percent of the value of all coal mined in this country while employing more than 70 percent of America’s coal miners. Although the East has been Ground Zero for the “anti-coal” attacks of this administration, there’s no excuse for the baseless shots — taken at our people,
(13.5 cents per ton) $81,000
Surface
(31.5 cents per ton) $140,000
Special Assessment: Underground
(.144 cents per ton) $86,400
Surface
( .02 per ton) $8,000
who truly are the “best coal miners” and “best coal mine managers” in the world. These professionals are doing — what they want to do — where they want to do it--right here in West Virginia — or one of the other eastern states. These people have jobs, goodpaying jobs, but their futures are being threatened and it’s simply not fair. It isn’t fair to them and it isn’t fair to America. The coal they produce is absolutely vital to Americans everywhere. Take our coal out of the national energy equation and you’ve got a real mess on your hands! For
PHOTO COURTESY OF CONSOL ENERGY
instance, what’s the National Capitol Region of Washington and Baltimore going to do when 48 percent of their electricity comes from West Virginia coal? If we’re ever going to rebuild this country’s economy, we’re going to have to climb on the backs of those who did it before! The ones who provided “strong, reliable, affordable” energy when America so desperately needed it in the 1930’s and 1940s. It was coal then — it’s coal today! Originally printed in West Virginia Coal Facts 2011.
PHOTO BY TAMMY SHRIVER
Pictured above is a continuous mining machine at a Consol Energy mine. The coal industry At Eastern Associatedʼs Federal No. 2 mine, John Kucish demonstrates safety precautions is one of the driving forces of the stateʼs economy, helping West Virginia to survive difficult within the mine. According to figures from the West Virginia Coal Association, mining 1 milfinancial times. lion tons of coal supports 612 jobs with a $35.9 million annual payroll.
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