Washington, February 2011

Platts– The U.S. coal mining industry's role as the nation's top fuel source for power generation remains secure despite possible regulatory and legal roadblocks, the head of the National Mining Association (NMA) said Sunday during an interview with Platts Energy Week television www.plattsenergyweektv.com, an independent, all-energy news and talk show.

While coal's share of energy sources for U.S. power plants may dip slightly over the next few years from its current level just shy of 50%, NMA President and CEO Harold "Hal" Quinn said the need for coal generation will only get stronger.

"I think it may go down a little bit, but I think if we are to maintain our competitive position as a country, I think we'd better be very careful about how much it does decrease since it's the lowest-cost and most-reliable source of electricity," Quinn said.

"We've had about 11 [gigawatts] GW of new coal-fired plants added in the last 10 years here," Quinn said. Globally, 400 GW of new coal-fired power plants are to be brought online through 2015, he added.

But ever-new gas plays, which were "increasing competition in the marketplace," have increased capital expenditures and "pressures on utilities" to retrofit power plants to meet new environmental standards as challenges for the coal industry, Quinn acknowledged.

"One area of great concern, in terms of timing, [is] the staggering costs that could be associated with these new regulations on conventional emissions from power plants," Quinn said. "We think the regulators will have to take a broader look at a more balanced approach to these regulations."

"The president's recent executive order on regulations is a very welcome sign now that the administration understands the $1.75 trillion burden of regulations on this economy is a huge impediment," Quinn said, referring to U.S. President Barack Obama's January 18 call for less burdensome federal regulations.

The U.S. Department of Energy ( DOE) has since asked companies and other stakeholders about how DOE could streamline or repeal some of its regulations.

The NMA favors U.S. Congressional legislation that will keep the Environmental Protection Agency ( EPA) and other federal agencies from regulating greenhouse gases, or precluding it for two years, Quinn said.

However, he added, “We want to work with all the parties on this issue.” In particular, "We would support the various bills that will leave the issue of how we address carbon to our elected representatives rather than to EPA or other agencies," he explained.

UPPER BIG BRANCH MINE DISASTER

Discussing the fatal April 2010 explosion at Massey Energy's Upper Big Branch Mine in West Virginia, in which 29 miners died, Quinn said the full investigation of the blast needs to be concluded before major action is taken.

"The energy industry, in general, has had some unfortunate situations, accidents and tragedies over the past year, whether it be gas pipelines, offshore oil drilling and, of course, coal mining," Quinn said. He seemed to be referring, respectively, to the September 2010 explosion of a Pacific Gas & Electric gas pipeline in San Bruno, California, which left nine people and destroyed 37 houses; the April BP Macondo well blowout, which killed 11 workers and led to the largest marine oil spill in U.S. history, and the West Virginia mine blast.

The mining industry is "looking at best practices to improve upon" and has invested in safety and other technology," the NMA executive emphasized. The U.S. Mine Safety and Health Administration was "not overreacting" in its consideration of new safety regulations since the Upper Big Branch Mine incident, Quinn insisted, adding the NMA "would like to work with them" on areas it believes need addressing. But he cautioned against painting the industry with too broad a stroke.

"What we need to look at is how we deploy their resources in the field [and] to focus on the areas that need to be looked at, rather than going radically across the board and putting additional pressures on operations that really do have exemplary safety records and are trying to exceed their goals beyond compliance," Quinn said.  To access the Quinn interview in full, click here.

Also on Sunday’s program, host Bill Loveless looked at the role Egypt plays in global oil and the likely impact of any disruption to business-as-usual at the Suez Canal, a key chokepoint for crude oil and petroleum product shipments in the Middle East.  Loveless spoke with Randa Fahmy Hudome, of Fahmy Hudome International, about regional turmoil and implications to oil. The Hudome interview is available in full at this link.

In a segment about the odds and timing of a nuclear power renaissance in the United States, Loveless sat down with Nuclear Regulatory Commission (NRC) Chairman Gregory Jaczko. To view this interview, click here. Jaczko was also a guest earlier last week at the Platts Energy Podium, a newsmaker and media roundtable.

In this week’s Market Spotlight, viewable at this link, Loveless offered commentary on coal and commodity prices in the wake of recent floods in Australia floods and the increasing globalization of coal markets. Viewer comment is welcome at This e-mail address is being protected from spambots. You need JavaScript enabled to view it