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Martin County spill photo 4 Tap water in a home downhill from Massey-operated surface mines and underground slurry injection sites in Mingo.

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Presentation on theme: "Martin County spill photo 4 Tap water in a home downhill from Massey-operated surface mines and underground slurry injection sites in Mingo."— Presentation transcript:

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5 Martin County spill photo 4

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9 Tap water in a home downhill from Massey-operated surface mines and underground slurry injection sites in Mingo County, WV. Now, 700 families are suing the company. Photo by Melissa Farlow; printed in Time Magazine on 23 March, 2008.

10 Top 20 Producers of MTR Coal, 2002-2006 1Magnum Coal 2Alpha Natural Resources 3Massey Energy 4Progress Fuels 5TECO Energy 6International Coal Group 7Andover Enterprises 8James River Coal 9AMVEST 10Apex Energy 11Energy Coal Resources 12Snap Creek Mining 13Pine Branch Coal 14Manalapan Mining 15Remington Coal 16Arch Coal 17Roda Resources 18Ruhrkohle Trading 19Foundation Coal 20A & G Coal Based on database compiled by Appalachian Voices and satellite base maps produced by Skytruth, 2007. Visit http://www.ilovemountains.org/myconnection for more information on data sources.http://www.ilovemountains.org/myconnection

11 Top 20 Producers of MTR Coal, 2002-2006 1Southern Company 2American Electric Power 3Duke Energy 4Progress Energy 5TVA 6Dayton Power & Light 7Constellation Power 8Dominion Resources 9Consumers Energy 10East Kentucky Power Coop 11South Carolina Electric and Gas 12E.ON 13Santee Cooper 14Cardinal Operating Company 15Detroit Edison 16Mirant 17Eastman Chemical 18NRG Energy 19Cogentrix 20South Mississippi Electric Based on database compiled by Appalachian Voices and satellite base maps produced by Skytruth, 2007. Visit http://www.ilovemountains.org/myconnection for more information on data sources.http://www.ilovemountains.org/myconnection

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13 There Are Many Factors Determining Coal Prices, But Recent Inflation is Driven By Appalachian Trends From: EIA Coal News and Markets, 28 March, 2008 $110/ton in Northern Appalachia!

14 Virginia Coal Production, 1880 - 2007 And Recent Production Trends Indicate Little Capacity For Appalachian Mines To Respond to Price Spikes

15 Coal Production in the Appalachian Basin, 1850-2007 & USGS Projections Based on Estimates of Economically Recoverable Reserves

16 From: William Wolf, 2006. Presentation to the 15th Annual MEMS Conference. www.minecon.com/Proceedings06/Sess2Wolf.pdf

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20 Demonstrated Reserve Base All Coal Resources Technically Recoverable Reserves Economically Recoverable Reserves Measuring Appalachian Coal Reserves 20 bst in 2007 based on USGS (Milici, 1997) 16 bst in 2007 based on Global Energy, 2006 102 bst in 2005 Averitt,1974 ??? bst = billion short tons 40 bst in 2007 based on Global Energy, 2006 54 bst in 2005 EIA, 2006 ( 46 bst in 2007) Mined Out Reserves

21 “Present estimates of coal reserves are based upon methods that have not been reviewed or revised since their inception in 1974... … only a small fraction of previously estimated reserves are actually minable reserves.” How Good Are the Estimates That We’re Using For Energy Planning? - National Academy of Sciences, 2007

22 The EIA has over-projected Appalachian coal production for the last 11 years MMST per Year

23 But even EIA’s extremely optimistic forecasts have declined a lot over the last 12 years 200 million tons/year drop in 2015

24 “… coal mines of the future will encounter a range of new or more difficult mining and processing challenges as more easily accessed coal seams are depleted and the industry turns to less accessible reserves. Surface operations will mine deeper seams that require increased stripping ratios and multiple benches...” How Is Coal Supply Related to Mountaintop Removal? - National Academy of Sciences, 2007

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26 While you won’t find anything about it in their filings to SUCs, energy companies are well aware of the risks to their customers from the controversy around mountaintop removal and 404 permits…

27 Demonstrated Reserve Base All Coal Resources Technically Recoverable Reserves Economically Recoverable Reserves Measuring All US Coal Reserves ( 61 bst in 2007) Mined Out Reserves 85-90 bst in 2007 based on Global Energy, 2006 100-120? bst in 2006 NAS, 2007 493 bst in 2005 Averitt,1974 ??? bst = billion short tons 268 bst in 2005 EIA, 2006

28 From: William Wolf, 2006. Presentation to the 15th Annual MEMS Conference. www.minecon.com/Proceedings06/Sess2Wolf.pdf

29 Imports and Exports of Steam Coal Source: Energy Information Administration, Annual Coal Report, 1996 - 2007 Imports Exports 2002

30 The Future of Rail Transportation “…we should expect the “new normal” [in coal transportation] to be a pretty lengthy state of increasing costs, tight capacity, and related service performance challenges.” - The New Normal: Why Businesses Should Redesign Now, and Not Wait for Freight Rates and Service to Get “Back to Normal” by Lee Clair and Dean Wise. April, 2005.

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32 “We are headed for a time of excitement and turmoil in the coal industry unlike anything we have seen before. Renewed interest in coal as a fuel source could increase demand by as much as 4% per year during the next twenty years, but very little attention is focused on the ability of the U.S. coal-chain infrastructure and reserve base to support such an expansion.” - Gary L. Hunt, President, Global Energy Advisors


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