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Coal Companies Abandon Mines: Taxpayers Foot the Bill

by: Wabi-Sabi

Wed Dec 15, 2010 at 23:41:12 PM EST


The U.S. Department of the Interior announced today that it's distributing $395 million to states this year to clean up abandoned coal mines. $245 million is coming straight from the U.S. Treasury.  (Fees on coal production provide the other $150 million.)

That's nearly a quarter of a billion dollars directly from tax payers to clean up the messes left by coal companies that have abandoned their responsibilities to keep our land safe and our water clean.  The program has provided over $7 billion since the program began.

I am happy that this funding is going to clean up many devastated areas with $51.3 million slated to come to West Virginia this year. However, it's important to keep these costs in mind the next time coal companies like Massey Energy and the loyal politicians who represent them talk glowingly about the importance of coal to our economy.

There are many hidden costs associated with mining coal - especially when it's done irresponsibly. Sadly, folks who want West Virginia to be "Open for Business" at all costs and want to "Unleash Capitalism" never seem to include these costs in their bottom line.

When the government provides funding for social programs such as health insurance for children - it's decried as "socialism". But, when the government provides funding to clean up messes from corrupt corporations, those same budget hawks and government critics are eerily quiet.

For example, after much debate and overriding a Presidential veto from President Bush, the federal government provided $36 million to West Virginia for sCHIP (Children's Health Insurance Program) in 2008 with an $8 million state match.

On the other hand, there was hardly a peep about today's action to give the equivalent a $51.3 million handout to offset the expenses that coal companies should pay themselves.

If that $51.3 million went to support programs for children and families, I bet the conservative elite and their followers would have had something to say about it.

Cross posted at Wabi-Sabi.

Wabi-Sabi :: Coal Companies Abandon Mines: Taxpayers Foot the Bill
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creative government accounting (0.00 / 0)
I believe coal companies have actually paid enough money into the abandoned mine lands funds to cover these costs.  A large chunk of those funds is used to pay for health care for UMWA retiree.  I'm not saying that's a bad use for it, but it's not what it was supposed to go for. (I also want to know why a non union company has to pay for UMWA retirees health care when no one is paying for mine, but that's another post)
VC

Link? (0.00 / 0)
Do you have a source showing that $7 billion has been put into the abandoned lands fund?  The sources I have cited show significant funding coming from the U.S. Treasury.

In a good conversation everyone speaks.  In a great conversation some even listen.


[ Parent ]
wabi-sabi (4.00 / 1)
A brief internet search said the program had appropriated 7 Billion in funds and distributed 5.5 as of 2005.  Although it did not explicitly state it, it implied these were the reclamation taxes.    This link states that $600 million between 1996 and 2005 were used to fund Umw pension plans. I'll see what else I can find.
http://saturdaygazettemail.com...

VC


The AP Article said funds partially from Coal Companies (0.00 / 0)
The AP article that I quoted (and my post) indicated that fees on coal companies paid for part of the clean up. However, other funds came from the Treasury. Those are the funds to which I was referring.
http://wvgazette.com/ap/ApTopS...

In a good conversation everyone speaks.  In a great conversation some even listen.


[ Parent ]
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