The Portal, Volume 3 Issue 1

W EST VIRG INIA CO A L V OLUM E 3 , I SSUE 1

The PORTAL

A p r il 2 0 1 4

Published by the West Virginia Coal Association and Friends of Coal

New Legislative Leaders Move Quickly

DATES TO REMEMBER APRIL 20-24th Ÿ CEDAR's 14th Regional Coal Fair, Logan Convention Center 23-24th Ÿ Basic & Advanced Topics in Mine Ventilation Seminar Raleigh County Armory Civic Center, Beckley, WV 23rd Ÿ Tug Valley Mining Institute Logan Convention Center.

Speaker: Bob Murray, Murray Energy CEO. 22 - 27th

By CHRIS HAMILTON, SVP West Virginia Coal Association CHARLESTON – Given the tide-turning November elections and the exceptional class of incoming legislators, expectations were high for the 81st Legislature. Now that the 2015 session is complete, it is the opinion of many Capitol-watchers that we have witnessed the most productive and efficiently run 60day legislative session the state has experienced in recent memory.

Senate President Bill Cole and House Speaker Tim Armstead assembled leadership teams comprised of hard-working, dedicated leaders from around the state. These brave public servants focused on jobs,

educational initiatives, legal fairness and the state's economy.

Legislative leadership ran the session like a good business. They outlined priorities, assigned work efficiently between the two bodies – the Senate and House – and they worked together to get things done.

In fact, unlike most legislative sessions, consideration on major pieces of legislation began immediately upon session kickoff on January 14 and didn’t end until midnight March 14.

Gone was the mentality of spending the first 30 days socializing and easing into the work of session. This

see SESSION pg. 2

Coal Production and Price Update for April 4, 2015 CHARLESTON – Coal production in the U.S. continued to decline this past week according to the latest report from the Energy Information Agency (EIA) and the National Mining Association.

Production in the United States is down by more than 2.4 million tons for the week ending April 4 compared to the same time last year. Production for the week stood at 17.41 million tons compared to 19.75 million tons for the same week in 2014. Cumulative production for the year-to-date also remained down as of April 4 coming in at 246.54 million tons compared to 256.94 million tons last year – a decline of 4%.

Rail car loadings also continued to decline, down 11.8% for the week from the same period last year, and they are down 3.2% year-to-date.

Coal export data was not updated this week.

Electric output was up – by 0.3% for the week ending April 4 – and is down slightly (-0.5%) year-to-date.

Steel output declined again for the week, down 13.7% for the week to just 1.60 million tons produced and it continues its slide year-to-date — down 6.3% to 23.15 million tons produced compared to 24.70 million tons last year. As noted previously, a decline in steel production is considered a leading indicator of the broader economy and the continued

declines we are seeing in steel production usually translate into declines in durable goods orders.

Looking at regional coal production, Appalachian Basin production was down for the week – at 4.76 million tons from 4.99 million tons the previous week. Interior Basin production was also down slightly for the week – settling at 3.27 million tons from 3.42 million tons last week. Western production also finished slightly lower this week, to 9.38 million tons from 9.85 million tons last week.

The Interior and Western Basins continued to show increased

see COAL pg. 2

Ÿ FOC Auxiliary "Coal In The Classroom" Saints Peter & Paul Catholic Church

VOICES OF FRIENDS OF COAL? “My husband has never worked in the Coal Mines. But we will always support the Coal Miner. Thank you all.

Remember. When you flip a switch to turn on your Lights.

Thank a Coal Miner.” Toni Miller.

“OK, now, let's get a few things straight. Coal keeps the lights on for homes, factories, farms, military bases, steel mills, etc.. Without coal for the electric power, this country would quickly grind to a halt, period!! Coal Miners risk their lives to provide us with a standard of living that no other country even comes close to!!

Anti Coal is Anti American, period!!” Gerald Erickson, Dayton, Ohio “This has got to stop and stop soon or we will be living like the people in Europe. 250 sq ft apartments with $600 plus electric bills. Oh, that's what the Obama administration wants,” Bryan Clayton,

GET THE FRIENDS OF COAL LICENSE PLATE

Are you a Friend of Coal?

Visit www.friendsofcoal.org and download the application or contact Sandi at the WV Coal Association by calling (304) 3424153, or via email at sdavison@wvcoal.com for more information on how to apply.

Connect Online with Friends of Coal You can find out what’s happening in the industry and join in the conversation. “Friend us” on Facebook, “follow us” on Twitter and view great pictures on Flickr.

Visit the following links to tune in, turn on and chime in: Facebook www.facebook.com/friendsofcoal Website: www.friendsofcoal.org Twitter https://twitter.com/FriendsofCoalWV Flickr http://www.flickr.com/photos/friendsofcoal

DID YOU KNOW...

The Cost of Obama's War on Coal Ÿ 50,000 coal mining jobs have been lost since 2009. Ÿ Using the standard multiplier means that 250,000 support and tertiary jobs were lost for a total of 300,000 jobs lost. Ÿ In terms of lost wages, that is $3.8 BILLION in direct coal wages alone lost in a single year. Ÿ Using that same multiplier job number and factoring in the average per capita national income of $43,000, that gives us another $10.75 BILLION in wages lost per year. Ÿ IN TOTAL, that means the nation's economy lost $14.55 BILLION in wages alone. Ÿ Factor in taxes lost and we are easily at $20 BILLION dollars lost to the economy.

SESSION (from page 1) new Legislature took the voters’ charge seriously. The lawmakers -- and their dedicated, talented staff members -- worked hard from the beginning.

While leadership within the minority party tried to thwart progress on several major initiatives, most rank-and-file Democrats worked cooperatively and tirelessly with their Republican counterparts to pass pro-jobs, pro-business legislation that will move the state forward. And Gov. Earl Ray Tomblin deserves praise for his willingness to work across party lines to do what is in the best interest of the state and its people.

Legal reform was a key agenda item this session, and the results are nothing less than historic. A few of the major pieces of legislation that passed – most with significant bi-partisan support – include: Comparative Fault & Joint/Several Liability, Deliberate Intent, Medical Professional Liability, Non-Partisan Election of Judges, Open & Obvious Doctrine, Punitive Damage Caps, Trespasser Liability, and Asbestos Trust Fund Reform.

Make no mistake, these “legal fairness” initiatives bring West Virginia’s laws in line with other states, make us more competitive and send the message that the state is open for business.

A host of significant legislation passed on the business and industrial development front. Just a few of these initiatives include: Prevailing Wage Reform, Auto Dealer Franchise Protections, Coal Jobs & Safety Act, Environmental Regulatory Updates, Industrial Property Protection, Repeal of Energy Portfolio Standards, Storage Tank Regulation, Teacher Certification Expansion, and Wage Payment Updates.

These laws remove barriers to competitiveness, incentivize job growth and instill fairness into West

Virginia’s regulatory programs. Granted, those who oppose change and progress are singing a different tune to any media outlet that will listen. But take it from those of us who know a little something about providing jobs, making payroll and competing on an increasingly national and international scale – what the Legislature accomplished this year is remarkable.

As is unfortunately always the case, not all important legislation passed this session.

After receiving the support of farmers, mineral and land owners and the natural gas industry and passing both chambers, the Lease Integration, aka Fair Pooling, bill died on the last night of the session, and this death was far more about politics than policy, as often is the case in the final hours of session.

Legislation to allow charter schools and other education reform also failed to make it to the finish line.

These and other important bills that did not make it to passage remain goals for next year. We need our legislative leaders to continue their efforts to pass these bills for the continual improvement of our state and its people.

All in all, President Cole and Speaker Armstead deserve high praise for their efforts, as do most all members of the 81st Legislature.

Remember, this leadership team did not have decades of experience running the Legislature and years to refine their agendas.

In a matter of weeks, Cole and Armstead created a structure that exceeded all expectations. And now that these folks have experience under their belts, their pro-West Virginia agenda has momentum to move the state forward.

COAL (from page 1) production for the previous 52 weeks ending April 4.

Production in the Appalachian Basin was down 1.5% for the 52-week period — to 264.12 million tons from 268.20 million tons in 2014. Interior Basin production increased 1.5% to 185.97 million tons from 183.25 million tons for the same period ending in 2014.

Meanwhile, Western production was up 1%, to 536.61 million tons from 578.15 million tons in 2014.

According to the West Virginia Office of Miners’ Health, Safety and Training, coal production in the state for 2015 (reported through March 26, 2015) stands at 18.50 million tons year-to-date, with 14.58 million tons produced underground and 3.92 million tons produced through surface operations. The number of mines reporting production in February increased to 107. The number of mines reporting production is subject to change as additional reports are submitted. On a side note, the number of active miners working was reported at 15,604, down from 18,200 in January. Underground operations had 12,697 direct mining employees while surface operations dropped to just 2,907 employees. Again, we expect those numbers to change with additional reports.

Coal production in Kentucky for the week ending April 4 ticked down to 1.34 million tons compared to 1.43 for the same week in 2014, with the state seeing declines in both its eastern and western fields.

Meanwhile, coal production in Kentucky is off by 3.9% for the previous 52 weeks, with western Kentucky fields reporting production declines of 4.6% and eastern Kentucky operations reporting declines of 3.2%. Wyoming coal production also ticked down for

the week to 6.79 million tons, off from 7.65 million tons for the same week in 2014. For the year, Wyoming production is up slightly (0.3%). Illinois production is also up slightly for the week, coming in at 1.06 million tons compared to 1.11 for the same period in 2014.

Indiana production is down, coming in at 675,000 tons compared to 781,000 tons for the week in 2014.

Pennsylvania production for the week is also down slightly, to 1.18 million tons versus 1.26 million tons for the same week in 2014, but is up 10.8% for the previous 52 weeks. Ohio production is off as well — dropping to 311,000 tons compared to 490,000 tons in 2014. Virginia production was also off this week – to 258,000 tons compared to 321,000 tons for the same week in 2014. Virginia production for the previous 52 weeks is off by 10.9 percent.

Coal prices on the spot market continued to hold steady this week. Central Appalachian coal remains unchanged at $53.06 per ton. Northern Appalachian coal likewise, remains unchanged at $61.15 per ton.

Illinois Basin coal prices held at $40.32 per ton, while Powder River Basin and Uinta Basin coal prices also held steady – at $11.55 and $38.13 per ton respectively. Coal prices have remained unchanged for the past five weeks.

Natural gas prices on the Henry Hub held steady to $2.64 per million Btu. Natural gas producers reported an increase in their stored reserves – up 12 billion cubic feet compared to the previous week. Eastern fields reported a decline of 22 billion cubic feet while all other fields saw increased gas in storage. This week’s working natural gas rotary rig count also held steady at 1028.