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Lifting the Coal Resource Curse

by: Clem Guttata

Thu Sep 24, 2009 at 08:35:36 AM EDT

By Clem Guttata

Your lights are on,Flickr image credit: The Bill Hughes Gazette
but you're not home,
your will is not your own
Might as well face it you're addicted to coal.

West Virginia suffers from a resource curse. Coal mining wealth is illusory--the benefits have long been obvious to those dependent on Big Coal for a living even if the costs (largely hidden) were high. Yet, the costs are no longer as hidden and the benefits no longer so great.

Climate change legislation is a once-in-a-generation opportunity for our political leadership to take bold action to help diversify the Appalachian economy. So far, that leadership is lacking. Join me today in calling for West Virginia state officials, Congressional representatives and senators to to chart a new course. Let's all kick the habit of the dirty black rock.

West Virginia is both blessed and cursed with abundant natural resources. Historically, coal has been a major employer and source of wealth. But--and it is a big BUT--there are three big weaknesses in an economy based on extraction industries like coal:

1. It concentrates wealth. West Virginia played a major role in the birth of modern unions. Coal mining extracts from its workers as much as from the land.

2. Due to competition for employees, capital, and land, large-scale mining operations crowd out other development.

3. There are a lot of socially, environmentally, and ecologically damaging by-products of the extraction and burning of coal. Some recent estimates shows the costs of Big Coal far out-weight the benefits.

Taken together, residents of the most coal rich portions of Appalachia are among the poorest in all other measures.

West Virginia's State Rock

On the one hand, the black rock has been the economic bedrock for much of the West Virginian's 143 years in existence. On the other, the history of coal is decades of long steady decline.

Within a decade of statehood, West Virginia began commercially exploiting its coal deposits. Coke production peaked in 1910 at 4,217,381 tons. Production of all types of coal peaked in 1997 at 181,914,000 tons. In 2008, production has dropped 9% from the peak to 165,750,817. Back in 1940, even before Sen. Robert C. Byrd was an elected official (he entered the West Virginia House of Delegates in 1946), West Virginia coal mining employment peaked at 130,457. By 2008, the number had dropped 84% to 20,927. (source)

Fig 2 in Chapter H of USGS Profession Paper 1625-F

Appalachian coal is no longer the lowest cost energy source. Western coal reserves are cheaper and less polluting. (Even West Virginia electric plants now get some of their coal from the Wyoming / Montana Powder River Basin.) Instead of the 100-200 years of United States coal supply the industry likes to claim, the truth is much closer to 100-200 months of economically viable major deposits remain in West Virginia.

Surface Mine Regional Productivity

Big Coal is now the tail that wags the dog in West Virginia.

The Resource Curse

What have you done for us lately?
Big coal, what have you done for us lately?

How can it be when West Virginia has enjoyed a Century-long abundance of valuable natural resources, it compares so poorly to the rest of the country economically?  How can it be that the counties with the most coal extracted are among the poorest places in the United States?

West Virginia suffers from a resource curse. The curse of natural resource wealth is extraction industries extract valuable items from the ground, take the wealth out of communities, and leave behind spent land and spent people.

Coal mining is a dirty business. Mountaintop removal is an even dirtier one - it requires a huge amount of land and crowds out all other potential nearby economic development.

In a recent presentation, Chris Hamilton of the West Virginia Coal Association said one of the challenges the coal mining industry faces is the lack of local workers. How ironic! If only the coal companies were better neighbors, there would be potential employees near coal mines. No wonder coal mines pay such high wages. There's no one left nearby to work for them!

Mortgaging our Future

Coal is a non-renewable resource. Once we burn it, it is gone. One day it will all be gone.

We never ask for more than we deserve
Big Coal knows it's the truth
They seem to think they're God's gift to this earth
We're tellin' 'em no way

Fig 12 in Chapter H of USGS Professional Paper 1625-F

Our political leadership is playing with the future of the entire planet to feed their addiction to the black rock. It may be the only economic safety West Virginia politicians have ever known, but meanwhile neighboring states--hell, even China, India, Europe and the United Arab Emirates--are all laying the ground work for a softer landing when their non-renewable fuels run out.

Lifting the Curse

The West Virginia economy is addicted to the illusory wealth of Big Coal. The benefits of a few high paying jobs are obvious and immediate, the costs of environmental degradation and lack of economic diversity are easier to ignore. Millions of Americans benefit today from lower power bills, turning a blind eye as Appalachia turns into a national sacrifice zone.

There is a better way forward. Instead of spending billions in dollars to keep the coal industry on artificial life support, we should be investing those billions in the people of Appalachia. When the next shift of coal miners are laid off, they deserve economic opportunities that aren't dependent on extraction industries.

I implore our elected officials to demonstrate a different kind of leadership focused on the needs of the people, not the needs of the corporations.

We need a hand-up for coal communities, not another hand-out for coal companies.

Take Action - Please help today!

This is where I really wish there was a bill or an ACES amendment in front of Congress I could ask you to contact Congress about. Unfortunately, no one is advocating directly for the people of Appalachia in climate change legislation. Until there is, here are some very worthy organizations:

Visit I Love Mountains to tell the Obama EPA to protect water quality and stop mountain top removal.

Support Coal River Wind to bring wind power to the Appalachian coal fields.

Support the nonviolent protests of Climate Ground Zero against mountain top removal in Appalachia.

Legacy of Coal is a newly-launched diary series inspired by the panels at Netroots Nation.  We hope to publicize the issues around coal use and mining, including MTR, the damage to less-politically-powerful areas of our country, and the general impact of energy and economic policy.  Of course, this leads to the broader issues of climate change, health care, and human rights.  While none of us can know everything about these issues, it is by working together we can make a difference.  If you would like to guest-host, please contact jlms_qkwATxmissionDOTcom.  This diary series is dedicated to our country's coal miners and the people waiting for them to come home.

Also available in Orange. Photo credit: Anthracite Coal by The Bill Hughes Gazette, Blockquoted lyrics adapted from songs popularized by Robert Palmer and Janet Jackson.

Discuss :: (6 Comments)

Mountaintop Removal Protest

by: Clem Guttata

Fri Jul 31, 2009 at 17:52:06 PM EDT

Mountaintop Removal Protest (h/t to mitchum_ on Twitter)

Discuss :: (1 Comments)

Responsibly ending Mountain Top Removal

by: Clem Guttata

Sun Jun 28, 2009 at 11:32:58 AM EDT

This was another week where coal-related news came fast and furious.

* Protests of Massey mining operations in Raleigh County, West Virginia gained national attention.

* A peer-reviewed study co-authored by a WVU professor provides evidence that Mountaintop Removal costs more to local communities (in premature deaths) than it brings in economically. A study of Kentucky coal mining (all types) shows it costs Kentucky more in extra expenses than the coal industry brings in via tax revenues.

* The House passed the American Clean Energy and Security Act of 2009. Depending on who you listen to, this bill is either a huge gift to King Coal or the death of the coal industry.

And, yet, for all this sound and fury, the more things change, the more they stay the same.

Same as it ever was...

King Coal still has an iron grip on West Virginia political and regulatory power. Signs of tangible change remain hopeful, yet distant. For every West Virginian protesting King Coal, there is another burying their head in coal ash.

As Ken Ward, Jr. asked in Mountaintop removal protest: Finding a path forward?

The science also shows, though, that mountaintop removal is a very destructive practice. Forests are mowed down. Hilltops are blown up. Miles and miles of streams are buried. EPA reports and independent studies show there's just no denying the damage.

Will mountaintop removal eventually be banned? Perhaps. But even if that happens, it probably won't occur overnight. And in the meantime, where is the real plan for green jobs for the coalfields? Who among the leaders of environmental groups, labor and business are really even sitting down and trying to start such a plan?

Maybe West Virginia's political leadership wants this to be fought out in the streets - or, rather, along narrow, two-lane roads that wind through Boone, Logan and Raleigh counties.  Given that the issue has been on the front burner for more than a decade, with little movement toward resolution,  it's probably understandable that both sides have reached this point.

Woe unto us if West Virginians are left to settle these matters with our own blood, sweat and tears. Despite Gov. Manchin saying this week, "this country was built on protests... I like protests," we can only hope that's not a total abdication of political leadership.

The Devil We Know

Public opinion in West Virginia is against mountain top removal. I think even most people who mine coal know that mountain top removal is a horrible way to make a living.  It is a Faustian bargain.

What we need are viable economic alternatives for the individuals, families, and communities dependent on mountain top removal operations. When safer, more sustainable, employers offer jobs in the coal fields there will be thousands and thousands of applicants.

The problem is, until those alternatives arrive, there is a stronger and stronger commitment to the only economic security many West Virginians have ever known. Until something changes, each side will just be yelling louder at each other.

The Change We Need

The reason I'm writing this post this morning is bloggers all across the country are joining the call for President Obama to visit a mountain top removal site. (See also: Jeff Biggers).

I want Obama to come visit when the time is right--when he can help deliver the change that West Virginia and the rest of Appalachia needs.

The most positive force President Obama can deliver to reassure everyone who lives in Appalachia we will not be forgotten in the post-carbon economy.

What Appalachia is still waiting for, after the record stimulus bill and the impeding ACES 2009 bill, is for new jobs in the coal fields. A few less layoffs in the south, restarting some steel mill lines in the north, those are both nice but are not the change we need. What we really need are new major employers to build a vibrant diversified economy.

The Appalachian Vitalization and Empowerment Authority

We've mentioned several times on this blog the need for targeted investment in Appalachia--we already suffer the most to deliver cheap coal to the rest of the country. We are going to suffer even more in the transition to a new energy economy. The people of Appalachia deserve better.

In the Bush administration there was no movement in targeted investment. Thankfully, the Obama administration is pushing policies regarding post-mining land use. Unfortunately, here in West Virginia, our state leadership is failing to pick up the baton.

My dream is for President Obama to come to West Virginia to announce the formation of an Appalachian Vitalization and Empowerment Authority (AVEA). I'd picture him sharing the stage with Govs. of W.Va. and KY, Sens. Byrd and Rockefeller, to announce:

* an end to any new mountain top removal mining,
* no new valley fills at existing MTR sites
* strict enforcement of safety and environment regulations for auger and underground mining
* rebuilding Marsh Fork Elementary school in a safe location
* a public-private partnership to develop wind power atop Coal River Mountain, underground mining below, and regional economic development (update: a potential model)
* the appointment of an Appalachian job czar to direct stimulus and ACES jobs to the Appalachian region
* a comprehensive program for post-mining land clean-up and reclamation (a la Superfund)

This is one way forward with a win-win for West Virginia and a model for the rest of Appalachia. Not only would these programs put thousands (and thousands!) of West Virginians to work but also West Virginian natives would return to the state to work.

Discuss :: (8 Comments)
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