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2016
Coal Facts
a production of
WV COAL ASSOCIATION 1
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POWER
Power To Protect
Your Interests
HOW WE HAVE HELPED
Complex Coal Transactions
MSHA Litigation
Government Relations
Sharon O. Flanery
Chair, Energy and Natural Resources Department
PLLC sharon.flanery@steptoe-johnson.com
www.steptoe-johnson.com
THIS IS AN ADVERTISEMENT
2 WV COAL ASSOCIATION
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BILL RANEY, President CHRIS HAMILTON, Senior Vice President JASON BOSTIC, Vice President
SANDI DAVISON, Administrative Manager
THE WEST VIRGINIA COAL ASSOCIATION P.O. BOX 3923 CHARLESTON, WV 25339
304-342-4153
WEB: www.wvcoal.com FACEBOOK: www.facebook.com/friendsofcoal Twitter: www.twitter.com/WVCoal1
FLICKR: www.flickr.com/groups/wvcoal/ Pinterest: http://pinterest.com/FriendsofCoalWV/friends-of-coal/ Instagram: instagram.com/#friendsofcoal
WV COAL ASSOCIATION 3
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Despite Challenges ed the reliable, low cost electricity that became utilities has reduced SO2 by 70 percent, NOx by
the envy of the world, dependable feedstock 64 percent and,unbeknownst to many, CO2 has
Continued from page 3
for domestic steel as well as Americas manu- been reduced by 21 percent! Our other major
and managers by this administration. facturing, chemical and technology industries. coal-burning utility has made similar strides in
Previous administrations had respect for They didnt favor one region over another. They state-of-the-art technology. But, of course, none
theWest Virginiaand American coal miners and didnt favor one fuel over another, they were of that progress is recognized by this current
managers and the tremendous job they do simply depending on the one that would most federal administration, all to the demise of our
every day. The Bushes, Clintons, Reagans, Cart- likely bring energy security for America and people and the economy of our state.
ers and Nixons, all the way back to President improved lifestyles for all Americans. We must We promise to do everything possible topro-
Truman each of them and their administra- regain that respect. tect and preserve our peoples jobs, our opera-
tions knew that America has more coal than any We must recognize the tremendous progress tions, our power plants and our way of life. We
other country in the world, and they recognized thats been made with power generation in our have the support of our Governor, our Attorney
the tremendous contributions West Virginia state and across the nation. Our utilities and our General, our Legislative and Congressional lead-
coal miners Americas coal miners made to citizens have taken the lead over the past ten ers as well as many members of the Legislature
improve the quality of life of Americans every- years, providing enhanced air quality, efficient and many citizens across the state and the na-
where. Each of those previous administrations generation and state-of-the-art technologies in tion. With your help and prayers, we will do ev-
sought to strengthen our country through the a concerted effort to preserve West Virginia jobs erything within our power to continue to be as
electrification of America with coal-powered and perpetuate our peoples health. Since 2005, big a part of West Virginias
electricity. They each knew that our coal provid- in West Virginia, one of our major coal-burning economy as possible. Bill
4 WV COAL ASSOCIATION
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Table of Contents
From the Presidents Desk: Despite Challenges, The Coal Severance Tax..................................................... 24
West Virginias Coal Industry Will Survive........................... 3 2015 Coal Severance 75% Distribution and Reallocation
Lets Make West Virginia Great Again................................... 4 (Coal Producing Counties)............................................... 23
Have You Ever Wondered 2015 25% Coal Severance Gas Tax Distribution..............24-27
Just Who Are The Friends of Coal?..................................... 7 2015 Coalbed Methane Severance Distributions.................. 28
West Virginia Coal Facts at a Glance.................................... 8 Coal Severance Tax Revenue (1969-2015).......................... 29
U.S. Coal Facts at a Glance................................................. 9 County Profiles of West Virginia Coal Country..................30-36
2015 County by County Rankings....................................... 11 Public Policy and Politics is Everyones Business.................... 37
2015 Monthly Coal Employment and Production.................. 12 Current State and Future of Coal in West Virginia.............38-39
West Virginias Highest Production Surface Mines - 2015...... 13 Coal and Electricity........................................................... 41
West Virginias Highest Production Coal and Steel.................................................................. 42
Underground Mines - 2015............................................. 13 Friends of Coal Ladies Auxiliary
2015 Coal Production and Employment by County............... 14 Truly Never Stops Working............................................... 44
2015 Method of Coal Production by County (Tons)............... 15 State Mining Operations Honored for
Coal Property Tax Collections by County.............................. 16 Environmental Stewardship.............................................. 45
2015 Coal Production and Employment by Seam.............17-18 Coal Industry Firms Recognized for
2015 Coal Production and Employment at a Glance............. 20 Commitment to Workplace Safety..................................... 46
West Virginia Coal Production and Employment (1900-2015).... 22 2015 West Virginia Coal Hall of Fame............................48-50
WV COAL ASSOCIATION 5
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BRICKSTREET
COMMITMENT Your BrickStreet team of experts is committed to your business and your
workers. This team is dedicated to helping you establish a culture focused on eliminating losses,
providing you with one-on-one relationships and a single point of contact.
WV COAL ASSOCIATION 7
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NOTE: Employment figures for Coal Handling Facilities are based on West Virginia Office of Miners Health, Safety and Training Inspection Reports. Figures for Independent
Contractors are based on either Monthly Reports, Inspection Reports, or information provided by the individual company on their permit application (or renewal) with this
agency. Only these contractors with valid permits are included in the totals.
Independent Contractors include companies providing the following types of services (not all categories are listed): Site Preparation, Construction, Electrical, Explosives, Vendors,
Drainage, Maintenance, Trucking, Welding, Cleaning, Security, Painting, Drilling, Sampling, and Demolition.
* Based on $45 per ton estimated average market value of coal. Reflects WVOMHST data. There may be discrepancies between tonnage reported and actual tonnage.
Key Contacts
8 WV COAL ASSOCIATION
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Source: Energy Information Administration, Annual Energy Review 1999. DOE/EIA-0384(99) (Washington, DC, July 2000).
Projections: Figure 76.
WV COAL ASSOCIATION 9
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With a history of hands-on experience and a reputation for serving a broad array of industries,
our clients have relied on us for three decades as trusted environmental counselors.
Babst Callands multidisciplinary and collaborative approach is focused on resolving legal
and transactional matters while averting further exposure and risk for our clients.
Wyoming 4,179,944
Greenbrier 428,813
Taylor 3,383,888
Taylor 3,383,888
Fayette 423,041 Tucker 2,092,713
McDowell 2,695,216
Mercer 175,384 Barbour 1,840,735
Tucker 2,092,713
Harrison 18,114 McDowell 1,520,768
Barbour 1,840,735
Mingo 1,386,308
Wayne 15,986
Fayette 1,507,211
Fayette 1,084,170
Monongalia 5,094 Webster 1,117,817
Wayne 1,051,592
Barbour 0 Wayne 1,067,578
Nicholas 655,443
Clay 0 Lincoln 988,933
Upshur 629,698
Greenbrier 777,432
Marion 0
Braxton 458,960
Nicholas 655,443
Mineral 0
Webster 416,868
Upshur 629,698
Nicholas 0
Greenbrier 348,619
Braxton 458,960
Taylor 0
Harrison 127,173 Mercer 175,384
Source - West Virginia Office of Miners Health, Safety & Training (WVOHMST)
Note: Slight discrepancies on these pages is due to differences in the measurement methodologies used by the two sources, the EIA and WVOMHST.
WV COAL ASSOCIATION 11
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Source - West Virginia Office of Miners Health, Safety & Training (WVOHMST)
Note: Slight discrepancies on these pages is due to differences in the measurement methodologies used by the two sources, the EIA and WVOMHST.
Eastern Associ-
Hobet Federal No 2 454 2,441,623
West Ridge III 115 892,456 ated Coal Corp.
Mining LLC
Pinnacle Mining
Highland Mining Reylas Pinnacle Mine 427 2,406,438
90 863,601 Co., LLC
Company Surface
Source - West Virginia Office of Miners Health, Safety & Training (WVOHMST)
Note: Slight discrepancies on these pages is due to differences in the measurement methodologies used by the two sources, the EIA and WVOMHST.
* Murray American Energy purchased these mines in December 2013 from Consolidation Coal Co.
*1-McElroy; *2-Shoemaker Mine; *3-Robinson Run Mine; *4-Loveridge; *5-Blacksville
WV COAL ASSOCIATION 13
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Clay 23 0 0 0
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Source - West Virginia Office of Miners Health, Safety & Training (WVOHMST) Note: Slight discrepancies on these pages is due to differences in the measurement
methodologies used by the two sources, the EIA and WVOMHST.
Sources: West Virginia Department of Tax and Revenue, West Virginia Treasurers Office
16 WV COAL ASSOCIATION
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Alma A 12 0 0 0
Bens Creek 3 0 0 0
Cedar 0 0 0 0
Chilton A 0 0 0 0
Douglas A 0 0 0 0
Eagle A 8 0 0 0
Franklin Rider 0 0 0 0
Little Eagle 0 0 0 0
Lower Winifrede 0 0 0 0
Source - West Virginia Office of Miners Health, Safety & Training (WVOHMST)
Note: Slight discrepancies on these pages is due to differences in the measurement methodologies used by the two sources, the EIA and WVOMHST.
Continued on page 18
WV COAL ASSOCIATION 17
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Mahoning 0 0 0 0
Matewan 15 0 0 0
Pocahontas 2 0 0 0 0
Pocahontas 4 9 0 0 0
Pocahontas 5 0 0 0 0
Pocahontas 7 1 0 0 0
Refuse Processing 28 0 0 0
Squire Jim 0 0 0 0
Washington 13 0 0 0
Waynesburg 0 0 0 0
Waynesburg A 6 0 0 0
Source - West Virginia Office of Miners Health, Safety & Training (WVOHMST)
Note: Slight discrepancies on these pages is due to differences in the measurement methodologies used by the two sources, the EIA and WVOMHST.
18 WV COAL ASSOCIATION
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Member FDIC. and Huntington are federally registered service marks of Huntington Bancshares Incorporated.
Huntington Welcome.TM and Welcome. Our story for generations.SM are service marks of Huntington Bancshares
Incorporated. 2016 Huntington Bancshares Incorporated.
WV COAL ASSOCIATION 19
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*Clay 0 1 0 1 1 0 23 23 0 0 0
Mason 1 0 1 0 1 0 0 0 0 0 0
Mineral 0 2 0 2 2 0 0 0 0 0 0
TOTAL 143 146 229 227 456 12,219 2,975 15,194 80,442,620 18,860,330 99,282,950
Source - West Virginia Office of Miners Health, Safety & Training (WVOHMST)
Note: Slight discrepancies on these pages is due to differences in the measurement methodologies used by the two sources, the EIA and WVOMHST.
* Clay and Grant counties reported no active operations and no production.
20 WV COAL ASSOCIATION
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Abingdon, VA 276.619.2623
Beckley, WV 681.220.5151
Bluefield, VA 276.979.1799
Charleston, WV 304.347.0611
Huntington, WV 304.710.3700
Morgantown, WV 304.381.3412
Vansant, VA 276.935.2143
Wheeling, WV 304.238.5555 www.usi.com
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22 WV COAL ASSOCIATION
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Note: Municipalities within producing and non-producing counties also receive a share. See following pages for this distribution.
WV COAL ASSOCIATION 23
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Continued on page 25
24 WV COAL ASSOCIATION
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WV COAL ASSOCIATION 27
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Barbour County Economic Development Authority $44,038.48 Mineral County Commission $7,870.02
Boone County Commission $7,870.02 Monongalia County Economic Development Entity $90,245.46
Greenbrier County Commission $7,870.02 Raleigh County Economic Development Entity $219,981.78
McDowell County Economic Development Authority $474,663.92 Wetzel County Economic Development Entity $25,160.24
Marshall County Economic Development Authority $107,837.43 Wood County Commission $7,870.02
Mason County Commission $7,870.02 Wyoming County Economic Development Authority $112,653.70
*2014-15 tax data represents the latest information from the Department of Commerce Tax & Revenue Division.
Local coal severance tax collections rounded to nearest $100,000 prior to FY1995. Does not include Tax Administration Fees.
N/A - Not available at press time. WV COAL ASSOCIATION 29
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Mines 65
Employees.................................................................................. 1,492
Estimated Direct Wages ............................................$104,440,000
Mines 2 Severance Tax Receipts................................................. $15,277,821
Employees..................................................................................... 252 Production ...........................................................................7,012,365
Estimated Direct Wages ...............................................$17,640,000 Underground ......................................................................2,799,005
Severance Tax Receipts ...................................................$4,141,654 Surface ................................................................................. 4,213,360
Production .......................................................................... 1,840,735
Underground .................................................................................... 0 Recoverable Reserves Tons ................................................ 3,615,694,180
Surface ................................................................................. 1,840,735 Major Seams
Cedar Grove, Chilton, Coalburg, Dorothy, Eagle, Hernshaw,
Recoverable Reserves Tons .................................................1,576,708,974 Kittanning, No. 2 Gas, Peerless, Powellton, Stockton-Lewiston,
Major Seams Winefrede
Bakerstown, Kittanning, Pittsburgh, Redstone, Sewickley Primary Mines
Primary Mine Black Castle Mining Co. (Black Castle Surface Mine)..... 1,262,918
Wolf Run Mining Co., Inc. (Sentinel)............................... 1,840,735 Elk Run Coal Co., Inc. (Hunter Peerless Mine)................840,641
Emerald Processing, LLC (Peerless Rachel Mine)...........708,731
Raven Crest Contracting, LLC (Boone North No. 2).......594,909
Elk Run Coal Co., Inc (Roundbottom Powellton)............. 587,251
Braxton
Founded 1836
Named for an American founding father Carter Braxton
County Seat Sutton
Area/State Rank 516 square miles 14th
Population (2000)/State Rank 14,702 39th
Incorporated Communities
Sutton, Gassaway,
Burnsville, Flatwoods
Principal Waterways
Elk River,
Little Kanawha River,
Holley River, Birch River
Mines 2
Employees ......................................................................................105
Estimated Direct Wages................................................. $7,350,000
Severance Tax Receipts ..................................................$1,032,660
Production ............................................................................ 458,960
Underground .................................................................................... 0
Surface ................................................................................... 458,960
30 WV COAL ASSOCIATION
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Mines 13
Mines 2
Employees ......................................................................................373
Employees ........................................................................................25
Estimated Direct Wages ...............................................$26,110,000
Estimated Direct Wages .................................................$1,750,000
Severance Tax Receipts .................................................. $3,391,225
Severance Tax Receipts ..................................................... $104,357
Production ........................................................................... 1,507,211
Production ............................................................................... 46,381
Underground ......................................................................... 423,041
Underground .................................................................................... 0
Surface ..................................................................................1,084,170
Surface ...................................................................................... 46,381
Greenbrier Harrison
Founded 1782 Founded 1784
Named for reference to local foliage Named for U.S. President Benjamin Harrison
County Seat Lewisburg County Seat Clarksburg
Area/State Rank 1,024 square miles 2nd Area/State Rank 417 square miles 29th
Population (2000)/State Rank 34,453 17th Population (2000)/State Rank 68,652 7th
Incorporated Communities Incorporated Communities
Lewisburg, White Sulphur Springs, Clarksburg, Bridgeport, Shinnston,
Ronceverte, Rainelle, Alderson, Salem, Stonewood, Nutter Fort,
Rupert, Quinwood, Lumberport, Anmore,
Falling Springs West Milford, Lost Creek
Principal Waterways Principal Waterway
Greenbrier River West Fork River
Meadow River
Mines 9
Mines 22 Employees ........................................................................................87
Employees ..................................................................................... 202 Estimated Direct Wages ................................................$6,090,000
Estimated Direct Wages ...............................................$14,140,000 Severance Tax Receipts .....................................................$326,896
Severance Tax Receipts ...................................................$1,749,222 Production ..............................................................................145,287
Production .............................................................................. 777,432 Underground ............................................................................ 18,114
Underground ......................................................................... 428,813 Surface ...................................................................................... 127,173
Surface .................................................................................... 348,619
Recoverable Reserves Tons ...................................................487,400,934
Recoverable Reserves Tons .................................................. 632,344,840 Major Seams
Major Seams Pittsburgh, Redstone
Beckley, Eagle, Pocahontas, Sewell Primary Mines
Primary Mines Ten-Mile Coal Co., Inc. (No. 4).............................................. 12,7173
Greenbrier Smokeless Coal (Pocahontas Mine)............. 209,175 Brushy Fork, LLC (Brushy Fork Surface)..............................14,951
Princess Pollyanna & Jct Ent (No. 1 Surface Mine)........ 140,325 Ten-A-Coal Co. (Laurel Run #1No. 1)....................................... 3,163
Greenbrier Minerals, LLC (Mtnr. Pocahontas No. 1)...... 139,444
Greenbrier Minerals, LLC (Pollock Knob)..........................119,706
South Fork Coal Co., LLC (Blue Knob Surface)................ 101,520
WV COAL ASSOCIATION 31
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Logan Marion
Founded 1824 Founded 1842
Named for Mingo an Indian Chief Named For American Revolution Officer Francis Marion
County Seat Logan County Seat Fairmont
Area/State Rank 456 square miles 22nd Area/State Rank 311 square miles 44th
Population (2000)/State Rank 37,710 15th Population (2000)/State Rank 56,598 9th
Incorporated Communities Incorporated Communities
Logan, Chapmanville, Man, Fairmont, Mannington, Barracksville,
West Logan, Mitchell Heights Monongah, Rivesville, Grant Town,
Principal Waterways: Guyandotte River White Hall, Fairview, Farmington,
Worthington
Mines 40 Principal Waterways
Employees .................................................................................. 1,309 Monongahela River
Estimated Direct Wages .............................................. $91,630,000 Tygart River,
Severance Tax Receipts ................................................ $16,312,946 West Fork River
Production ........................................................................... 7,250,198
Underground ...................................................................... 2,382,847 Mines 15
Surface ..................................................................................4,867,351 Employees.......................................................................................796
Estimated Direct Wages .............................................. $81,550,000
Recoverable Reserves Tons ................................................. 3,449,124,124 Severance Tax Receipts ............................................... $29,656,838
Major Seams Production ......................................................................... 13,180,817
Alma, Belmont, Buffalo Creek, Cedar Grove, Chilton, Coalburg, Underground .................................................................................... 0
Dorothy, Eagle, Kittanning, Winifrede, Stockton-Lewiston Surface ................................................................................ 13,180,817
Primary Mines
Mingo Logan Coal Co. (Mountaineer II Mine).............. 1,923,970 Recoverable Reserves Tons ................................................1,385,412,002
Aracoma Coal Co., Inc. (Aracoma Alma No. 1)..................871,784 Major Seams
Highland Mining Co. (Reylas Surface).............................. 863,601 Kittanning, Pittsburgh, Redstone
Greenbrier Minerals, LLC (Powellton No. 1 Mine).............. 764,986 Primary Mines
Greenbrier Minerals, LLC (Tonys Fork Surface).............. 570,135 Murray Energy Co. (Harrison County Mine)...................6,870,181
Murray Energy Co. (Marion County Mine).....................6,310,636
32 WV COAL ASSOCIATION
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Mines 84
Mines 2 Employees ...................................................................................1,559
Employees ................................................................................... 1,165 Estimated Direct Wages .............................................. $55,720,000
Estimated Direct Wages .............................................$109,130,000 Severance Tax Receipts ................................................. $6,064,236
Severance Tax Receipts ............................................... $36,818,899 Production .......................................................................... 2,695,216
Production ........................................................................ 13,363,955 Underground ....................................................................... 1,174,488
Underground .................................................................................... 0 Surface ................................................................................. 1,520,768
Surface ............................................................................... 13,363,955
Recoverable Reserves Tons ..................................................1,630,771,141
Recoverable Reserves Tons ............................................... 1,830,243,690 Major Seams
Major Seam Beckley, Bens Creek, Bradshaw, Eagle, Fire Creek, Gilbert,
Pittsburgh Pocahontas, Powellton, Red Ash
Primary Mines Primary Mines
Murray Energy Company (Ohio County Mine)............ 3,686,996 Extra Energy, Inc. (Easter Ridge Surface)......................... 614,934
Xmv, Inc. (Mine No. 42).......................................................... 307,771
Spartan Mining Co. (Lower War Eagle)..............................248,126
Extra Energy, Inc. (Dry Branch Surface Mine).................246,050
Brooks Run Mining Company, LLC (Horse Creek No. 1).....158,571
Mercer
Founded 1837
Origins of Coal
Named for Revolutonary War Gen Hugh Mercer
County Seat Princeton
Area/State Rank 420.8 square miles 27th
Population (2000)/State Rank 67,264 43rd
Incorporated Communities
Athens, Bluefield, Bramwell,
Matoaka, Oakvale, Princeton
Principal Waterways
New River, Bluestone River,
East River
Mines 4
Employees ....................................................................................... 30
Estimated Direct Wages .................................................$2,100,000
Severance Tax Receipts ..................................................... $394,614
Production ............................................................................. 175,384
Underground ......................................................................... 175,384
Surface ............................................................................................... 0
WV COAL ASSOCIATION 33
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Nicholas Ohio
Founded 1843 Founded 1776
Named for Virginia Governor Cary Nicholas Named for Ohio River
County Seat Summersville County Seat Wheeling
Area/State Rank 654 square miles 7th Area/State Rank 108.9 square miles 53rd
Population (2000)/State Rank 26,562 25th Population (2000)/State Rank 44,443 13th
Incorporated Communities Incorporated Communities
Summersville, Richwood Bethlehem, Clearview,
Principal Waterways Valley Grove, West Liberty,
Gauley River, Meadow River, Wheeling
Cranberry River, Principal Waterways
Cherry River, Birch River Ohio River
Mines 12
Employees ..................................................................................... 140 Mines 1
Estimated Direct Wages ................................................$9,800,000 Employees ..................................................................................... 486
Severance Tax Receipts ....................................................$1,474,747 Estimated Direct Wages ..............................................$34,020,000
Production ............................................................................. 655,443 Severance Tax Receipts ................................................$23,972,834
Underground .................................................................................... 0 Production ..........................................................................6,882,867
Surface .................................................................................... 655,443 Underground ......................................................................6,882,867
Surface ............................................................................................... 0
Recoverable Reserves Tons................................................. 3,358,743,337
Major Seams Recoverable Reserves Tons................................................... 325,161,888
Campbell Creek, Dorothy, Eagle, Gilbert, Kittanning, Major Seams
McQueen, Peerless, Powellton, Sewell Pittsburgh
Primary Mine Primary Mine
Alex Energy, Inc. (Jerry Fork Eagle).................................... 655,443 Tunnel Ridge, LLC.* (Tunnel Ridge).................................6,882,867
34 WV COAL ASSOCIATION
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Mines 36 Mines 2
Employees ................................................................................... 1,417 Employees ..................................................................................... 438
Estimated Direct Wages ...............................................$99,190,000 Estimated Direct Wages ............................................. $30,660,000
Severance Tax Receipts ................................................$14,670,929 Severance Tax Receipts ................................................... $7,613,748
Production .......................................................................... 6,520,413 Production ......................................................................... 3,383,888
Underground ......................................................................2,708,326 Underground .................................................................................... 0
Surface ................................................................................. 3,812,087 Surface ................................................................................ 3,383,888
Tucker Upshur
Founded 1856 Founded 1851
Named for Virginia Judge Henry St. George Tucker Named for U.S. Cabinet Secretary Abel Parker Upshur
County Seat Parsons County Seat Buckhannon
Area/State Rank 421 square miles 27th Area/State Rank 355 square miles 35th
Population (2000)/State Rank 7,321 53rd Population (2000)/State Rank 23,404 39th
Incorporated Communities Incorporated Communities
Parsons, Davis, Thomas, Buckhannon
Hendricks, Hambleton Principal Waterways
Principal Waterways Little Kanawha River,
Cheat River, Buckhannon River,
Blackwater River Middle Fork River
Mines 1 Mines 5
Employees ......................................................................................218 Employees ...................................................................................... 147
Estimated Direct Wages .............................................. $15,260,000 Estimated Direct Wages .............................................. $10,290,000
Severance Tax Receipts ................................................. $4,708,604 Severance Tax Receipts .................................................. $1,416,821
Production .......................................................................... 2,092,713 Production .............................................................................629,698
Underground .................................................................................... 0 Underground .................................................................................... 0
Surface ................................................................................. 2,092,713 Surface ....................................................................................629,698
WV COAL ASSOCIATION 35
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Mines 8 Mines 4
Employees ......................................................................................279 Employees ......................................................................................164
Estimated Direct Wages .............................................. $19,530,000 Estimated Direct Wages .............................................. $11,480,000
Severance Tax Receipts ..................................................$2,402,051 Severance Tax Receipts ..................................................$2,515,088
Production........................................................................... 1,067,578 Production ............................................................................ 1,117,817
Underground ........................................................................... 15,986 Underground .........................................................................700,949
Surface ..................................................................................1,051,592 Surface ....................................................................................416,868
Wyoming
Founded 1850
Named for Delaware Indian word meaning
wide plain
County Seat Pineville
Area/State Rank 502 square miles 17th
Population (2000)/State Rank 25,708 27th
Incorporated Communities
Mullens, Oceana, Pineville
Principal Waterways
Guyandotte River
Mines 20
Employees .................................................................................. 1,003
Estimated Direct Wages .............................................. $70,210,000
Severance Tax Receipts ..................................................$9,404,874
Production ...........................................................................4,179,944
Underground .................................................................................... 0
Surface ..................................................................................4,179,944
36 WV COAL ASSOCIATION
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F
government and legislative arenas. quired leadership of both Houses in the West
irst a special thanks to all the men and The problems confronting our business today Virginia Legislature as the result of the 2014
woman who work every day to provide are political problems, not technical ones, that election. Most of these individuals are on the
the state, country & world with low-cost, have led to the closing of power plants, lost of ballot this year and we must do everything
reliable household and industrial power Its coal production, raising household & industrial imaginable to help them in their reelection bid.
because of what you do that allows us to enjoy utility rates and encouraging fuel switching. We must become engaged and do every-
the freedom and quality of life we do! If they were technical in nature we would thing possible to optimize the impact of our
You are masterful at what you do and you solve them for we have the best technical industry on this years election. Please register
do it with great pride and sophistication. And minds in the business. They are public policy to vote and take time to get to know the list of
despite what you regularly read and hear you in nature driven by extreme political agendas elected officials and candidates representing
do it with great attention to safety and en- that dont share your ideological views. districts where you reside or have operations.
vironmental detail. Youre clearly the best Just as we made mine safety everyones The threats of today impact all coal min-
industrial worker or miner anywhere in the business years ago, we must make public ing in our region and occupy a lot of time with-
world within one of the most honorable pro- policy and politics everyones business today. in other various legislative and public forums.
fessions in the world. No other industry or business is impacted These are political issues driven by political
Minings contribution to world health and the way mining is over political agendas and agendas. They require political solutions.
economic growth is immeasurable. the formulation of public policy Despite all the gloom and doom of today,
Its unfortunate, you and your family must Know the issues, become an activist in your we believe opportunities remain, coal will con-
awaken every day to a dose of gloom and own right and know your candidates views on tinue to be used around the world and West
doom from liberal media outlets and from coal. I would also encourage you to become Virginia has the potential to become the Saudi
those who actively seek an end to mining. more involved with one or more of the coal Arabia of the U.S. and emerge as the nations
Over the recent past weve seen the conver- advocacy groups in place today. center for energy and commerce. We have it
gence of several factors impacting coal produc- Get involvedhave your voice heard and here if we can effectively compete and sustain
tion and consumption trends ranging from a above and beyond all else exercise your our presence in domestic and world market.
sluggish economy, mild weather patterns, un- right to vote. If you are not registered to vote, We have that opportunity now if we ap-
precedented level of regulation and the growth you simply cant. Its that simple. Above and proach it correctly with reason, intelligence
of competing fuels from newfound shale gas. beyond all else be sure to vote this November. and common sense and if our political leaders
Today, we find ourselves in the midst of a West Virginias 2016 General Election is in Washington view our industry as an asset as
forced conversion from coal-fired electricity to without question, the most important election oppose to a liability.
electricity from natural gas and other sources we have faced in our careers. The industry is well situated to meet the
with the aid of our countries president using This years election is a major presiden- demands of tomorrow but not without over-
every single resource available to him to re- tial election (i.e., well elect a President, U.S. coming todays challenges. The biggest chal-
duce or restrict coal consumption. Senator and all three House of Representa- lenge comes from onerous public policy and
Were experiencing first hand the power of the tive Members.)On the state level, well elect a its within this aspect of our business that a
office of the President and his Executive Offices. Governor, and members of our Board of Public return to energy superiority can occur
The regulatory assault on our industry by Works (Attorney General, Secretary of State, The industry has great capacity, committed
our federal government and special interests Auditor, Treasurer, and Agricultural Commis- management with aggressive business plans,
are of an unprecedented level. And although sioner.) qualified workforce and a strong will to succeed
the industry has always had its share of chal- All of these positions form our States po- but we all must get involved with the politic and
lenges, never have they been as serious or litical leadership and impact our business in formulation of public policy which surrounds
threatening as they are today. varying ways. our industry for its truly everyones business.
My message today is simple to get in- Legislatively, there are a number of impor- Become involved, become more active, ex-
volved. The times call for all hands on deck tant races this year with all 100 seats in the ercise your right of free speech and exercise
and you must become more involved. Simply House of Delegates up for reelection and half your fundamental right to vote in November.
WV COAL ASSOCIATION 37
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his coal tree illustrates just a small portion of the vital role coal making up about 95% of the nations fossil energy reserves. Nationwide,
plays in the manufacturing of thousands of products. Coal has about 40% of the energy used for electric generation comes from coal.
been a major part of this countrys development and that is still In West Virginia, we have the sixth lowest electricity costs in the nation
true today. Americas industries rely heavily on the products and so do and more than 89% of our electricity is generated from coal. As you can
you. Coal continues to be the largest resource for the production of elec- see, it would be difficult to live a day without using products made from
tricity in the United States. It is more plentiful than oil or natural gas, coal. Coal is a major part of West Virginias economy.
40 WV COAL ASSOCIATION
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the coal mine, where the coal is cleaned in a furnace of the plant where its combustion heats
lectric power utilities are the largest coal preparation plant to remove impurities such water to steam in a boiler. The high pressure
consumers in the nation, with two-thirds as slate, rock and sulfur that would lower the steam is released from the boiler, spinning a
of all coal production being used by utili- heating value of the coal and increase emis- turbine that is connected to a generator. The
ties or smaller industrial installations to gen- sions from the power plant. Once the coal magnets turning in a wire coil in the generator
erate electricity and steam. Through the instal- is cleaned at the mine, it is blended to meet convert the mechanical energy of the turbine
lation of complex pollution control equipment, the particular specifications of the customer into electricity. The electricity is then taken by
coal-fired electricity is increasingly clean, with and loaded on a train, river barge or truck high-tension transmission lines to a series of
emissions from coal-fired power plants drop- for its journey to the power plant. interconnected transmission lines, transformers
ping over 90 percent in the last 20 years. Coal- At the power plant, the coal is unloaded, and distribution lines to electrical consumers.
fired generation provides steady baseload stockpiled and may be blended with coal Once it exists the turbine, the steam from
power that is inexpensive and reliable. Since from other mines to meet the specifications the boiler is routed a condenser system,
coal is a solid fuel, supplies can be stockpiled of the particular plant and its emissions where it is cooled back to water. The water
at the power plant to protect against trans- control systems. From the stockpiles, the is recycled in the process or discharged back
portation disruptions. Most power plants can coal is fed into a pulverizer, a machine that to the source.
WV COAL ASSOCIATION 41
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are, not all yield the type of coke required in A system called pulverized coal injection or
he steel industry is the second largest the modern blast furnace. simply PCI is used to blow pulverized coal into
coal user in the United States. About 80 For efficient blast furnace operation, coke the blast furnace along with air where its com-
million tons of coal are used each year to should be strong and suitably sized. It should bustion helps heat the blast furnace charge to
make coke, an essential element in the steel- also contain minimum quantities of ash and produce raw iron. The PCI process can use coal
making process. For West Virginias coal indus- sulfur. of a lesser quality than what is required to make
try, metallurgical coal production constitutes Metallurgical coal is converted to coke by coke and its use reduces the amount of coking
about 40 percent of our annual production. cooking the coal in special facilities called coal and coke that is needed in the steelmak-
West Virginia has some of the best metallurgi- coke ovens where the coal is heated to ing process. Once the charge has melted and
cal coal found anywhere in the world. around 1000-1100C in the absence of oxygen reached the correct temperatures, a tap hole
But before coal can be used to make steel, it to drive off the volatile compounds. The physi- at the bottom of the furnace is opened and
must be converted to a product called coke. cal properties of coking coal cause the coal to molten iron and slag (impurities) are drained
In the blast furnace, coke serves as a fuel, soften, liquify and then re-solidify into hard off. The molten iron from the blast furnace is
an oxygen-reducing agent and a means of but porous lumps when heated in the absence further refined in special furnaces to produce
infusing steel with carbon to strengthen it. of air. It requires 12 to 36 hours to make coke in steel. In the steel furnaces the molten iron is
About two-thirds of a ton of coal is needed to the coke ovens. When the process is complet- further heated and scrap metal is added to the
produce a ton of steel. ed, the remaining coke is almost pure carbon. iron (by recycling scrap metal, less raw iron from
The requirements of coals purchased for the blast furnace is needed to make steel). Coke
coke making are much different from those
Overview of the Process of Making Steel is added to the steel furnace charge to infuse
used in other processes such as electricity In the blast furnace, coke serves as a fuel the raw steel with carbon to strengthen it. Fer-
generation. Only a certain class of coals bitu- and an oxygen-reducing agent. During the iron- roalloys such as magnesium, manganese, mo-
minous -- possessing very specific properties making process, a blast furnace is fed with the lybdenum, which are used to strengthen the
and composition are suitable for the making iron ore, coke and small quantities of material steel and give certain physical properties, are
of a quality coke for blast furnace use. Bitumi- known as fluxes (minerals, such as limestone, added in the steel furnaces according to the
nous coals used to make coke are classified as which are used to collect impurities referred to quality and type of steel being produced. Flux-
metallurgical. To make coke for the blast fur- as steel slag). The combination of raw materi- ing stone is used in the steel furnaces to collect
nace, high, medium and low volatile metallur- als is referred to as a blast furnace charge .Air steel slag. Once the iron has been converted in
gical coals are blended to obtain the desired which is heated to about 1200C is blown into the steel making furnaces, the molten steel is
chemical composition and coking properties. the furnace through nozzles in the lower sec- sent to finishing mills where it is cooled, shaped
The appropriate blends of metallurgical coal tion. The air causes the coke to burn, produc- and cut for shipment to the customer.
are very specific to the individual coke and ing carbon monoxide which reacts with the iron
Continued on page 43
42 WV COAL ASSOCIATION
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WV COAL ASSOCIATION 43
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WV COAL ASSOCIATION 45
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Eustace E. Frederick Milestones Of Safety Awards Bart B. Lay, Jr. Milestone Of Safety Award
ACI Tygart Valley, Leer Complex Phoenix Coal-Mac, Holden #22 Surface Mine
Taylor County Logan County
Independent Contractor
Carter Machinery, Mercer County/Statewide
Walker Machinery, Kanawha County/Statewide
46 WV COAL ASSOCIATION
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WV COAL ASSOCIATION 47
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48 WV COAL ASSOCIATION
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WV COAL ASSOCIATION 49
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married to Nathan Angeline and their son, Chris, ers in a great industry, a great company in
Hall of Fame from page 49
and Bill and Pams grandchildren, Will and Allie. Caterpillar and the tremendous West Virginia
Battalion as well as being commander of the I am eternally grateful to the scores of won- Banking industry and suppliersupport.
111th Engineer Group before retiring as a spe- derful people who have been so helpful, men- Walker Machinery was indeed a family
cial assistant to the Adjutant General at the toring, patient, guiding and forgiving to get me business. In addition to brother Dick and
rank of Colonel. During this time, he also served through the years and to all of my unbeliev- son Brad, Mike and Pat Walker, sons of Dick,
as President of the West Virginia Natural Guard able friends who are always there. I am truly worked in the financial end of the business
Association and continues to serve as Chairman appreciative and blessed. while Caroline, Dicks daughter worked as
of the West Virginia Natural Guard Foundation. Assistant Marketing Manager, and her hus-
Bill has been involved with and/or continues to D. STEPHEN WALKER band Wayne Coleman served as Vice Presi-
serve as: former Chairman and current board President And Chief Operating Officer (Retired) dent of Sales. Steve Walker was involved in
member of the West Virginia Business & In- Cecil I. Walker Machinery many community, industry and educational
dustry Council (BIC); current board member of Charleston, WV organizations while at Walker Machinery.
the WV Youth Leadership Associations Youth D. Stephen Walker (Steve) was President Mr. Walker served on the Board of the
in Government Program, former Chairman and and Chief Operating Officer Cecil I. Walker Ma- West Virginia Surface Mine Association and
current Board member of the West Virginia chinery Co. (retired), Belle (Charleston, WV). also on the Board and Executive Committee
Kids Count Fund; WV Department of Environ- D. Stephen Walker was born in Charleston, WV of the West Virginia Coal Association.
mental Protection (DEP) Advisory Committee; January 13, 1946. He graduated from Charles- Steve Walker has been married to Diane H.
WV Special Reclamation Advisory Council; Coal ton High School in 1963, and holds a 1967 B.S. Walker for 46 years. Son Brad worked in the
Resource Road Transportation Committee; WVU degree from the WVU School of Business, and Walker Marketing Department and continues to
Benjamin M. Statler College of Engineering and a 1971 J.D. Degree, from the WVU Law School. live in Charleston. Daughter Mary has a tutoring
Mineral Resources, Department of Mining Engi- He served in the WV National Guard and the business where she lives in Charlottesville, VA.
neering Visiting Committee; and as a past Elder United States Army Reserve. He and Diane now make their residence in
at the First Presbyterian Church in Charleston. He joined the family business of Cecil I. Boca Grande, Florida but keep homes in Charles-
He has also been recognized as a Most Loyal Walker Machinery in 1971. Cecil Walker, Steves ton, WV and in White Sulphur Springs, WV.
Alumni by the West Virginia University Alumni father was CEO and his brother, Dick, was Vice The Walkers sold the business to Boyd
Association, awarded the Hope Award by the President. Walker Machinery became a Cater- Machinery in 2010, but the Coal Business
National Multiple Sclerosis Association, and pillar dealer in 1953. Cecil Walker died in 1978 and the State of West Virginia remain dear-
the Lewis McManus Service Award by the WV and Dick Walker became CEO and President. est in their hearts. The Company and its
Youth in Government Program. Steve Walker worked in sales, marketing and employees worked hard to help the coal in-
He always describes himself as being so administration until 1983 when he became dustry increase efficiency, and to help make
blessed with so many opportunities, being sur- President and Chief Operating Officer. He the public aware of the value of coal to the
rounded by such wonderful friends, supporters remained in that position for 27 years, 2010, State and to its citizens. Throughout the
and members and, most particularly, as he says when the business was sold to Boyd Machin- many ups and downs of the coal Industry,
the best thing that ever happened to him is his ery. During this 27 year period the Company it was a great experience. The legendary
family, for which none of this would have been added four locations and increased its reve- names in the West Virginia coal industry,
possible with their patience devotion and abso- nue 6 fold, and doubled its employee number many members of the Coal Hall of Fame,
lute love and support through the years with his to nearly 800. The companys success result- did so much to make this Industry great. To
wife of nearly 46 years, Pam, their daughter, Mi- ed from a vibrant coal business, the compa- know them and learn from them was and re-
chelle, a student at WVUs Medical School, who is nys excellent employees, wonderful custom- mains an honor.
50 WV COAL ASSOCIATION
The Kanawha and New Rivers were home to the first large scale coal operations in West Virginia.
wvcoal.com
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STATE STATE
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LESSONS FROM
PAGES 9-12 variety of industries.
LONGVIEW
BENEFITS BATTLE PAGE 9 For Longview Power,
An employee at a Marshall starting from scratch in the
County mine is going energy industry has meant
to court to get her wife a competitive edge.
www.statejournal.com January 8-14, 2016 $1.00 www.statejournal.com January 1-7, 2016 $1.00 Page 7
LESSONS LEARNED
the same benefits other
spouses have, as well
as fighting to keep her MAKING LISTS,
job after being fired for CHECKING TWICE
allegedly threatening the Special interest groups
*
It was a time then-Gov. Joe Manchin
and just about anyone else living in CALLING
West Virginia at the time still remem- Soon-to-be U.S. District
bers vividly. Magistrate Judge Omar
It was just agony, Manchin recalled
of the time spent waiting with victims Aboulhosn found his
family members to fi nd out if anyone passion in juvenile
had made it out alive. Ive never been justice cases, but said he
Looks Like for the lives of 78 men, including his uncle and
several of his former classmates.
All of that kept flashing back to me,
YEAR IN REVIEW
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ADDING IT UP
This weeks extended
Road Back
coverage section examines
the accounting industry in
West Virginia, from annual
events to a Q&A and a
look at whats new in
accounting education.
Pages 13-15 Rebuilding Business,
Public Trust Is Focus for BRUSH WITH FAME
Wheeling attorney Bob
Trivillians New Owners Fitzsimmons may not be
portrayed in the upcoming
By LINDA HARRIS movie Concussion but
lharris@statejournal.com he played a big part in the
Mark Ross remembers almost to the moment
exactly when he decided to add Trivillians, a trou-
storyline.
bled Charleston pharmacy, to his business portfolio. Page 7
Its a great place, said Ross, who now is the ma-
jority owner of three area pharmacies, including ALTERNATE ROUTE
LIFE AFTER VW Trivillians. The fi rst time Id been to it I thought
West Virginia Universitys The Federal Energy
there was maybe a one-in-1,000 chance I would do it,
researchers who but I fell in love quick. Regulatory Commission
discovered the The old soda fountain theme, it had so much po- has asked the companies
international news of tential. And so few people were willing to take a behind the proposed
wrongdoing at Volkswagen chance because of what had happened, its distressed Atlantic Coast Pipeline
situation made it pretty easy to acquire. to consider creating an
say life is different now in Trivillians former owner, Paula Butterfield, is
several ways. alternative route.
scheduled to report to prison sometime in the next 30
Page 10 days to begin serving a 366-day sentence for health
Page 9
W.Va. Moving Company Keeps Eers, SJ LIST: Natural Gas & Oil
care fraud, billing Medicare for drugs that were
never dispensed and misbranding drugs. AFTER THE
Herd Football Traveling Across US
Butterfield, 72, also was forced to sell Trivillians and VERDICT
Production by County had to liquidate it and other holdings, including prop-
Pages 20-22 A mixed
erties in Florida and Arizona, to satisfy the combined
$1.1 million assessment against her and the business.
verdict
Butterfield and her pharmaceutical practices had was
been under scrutiny for about a year before the feds returned
By JIM WORKMAN for the past four years, said Papa, from his office at the acted in 2014, raiding the pharmacy in September in the trial of Don
jworkman@statejournal.com Rock Branch Industrial Park near Poca. It is the hard- and then indicting her and Trivillians two Blankenship, and
Much has been said of the increased travel for West est transportation schedule in the country, within the 48 days before Christmas. Information from pharma- both the prosecution
Virginia University sports teams since leaving the Big states. cists and technicians whod worked at Trivillians and the defense are
East and going to the Big 12 Conference in 2012. In seven years, weve never missed a deadline. Weve for years and were concerned with how medicines
Perhaps no one knows the issue, and lives it vividly each never had any issues. We have a perfect, on-time perfor- were being dispensed had fueled the governments claiming victories.
fall, more than Gene Papa, president of Central Van & mance with them. interest in Butterfield. The indictment made no men- Page 19
Storage. Papa, a WVU graduate, also picked up the Marshall tion of one of the staff members biggest complaints
His Putnam County-based company has moved foot- University football equipment moving business and that shed fi lled an inordinately high number of
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JOHN BROWN 26 LEADS 23 Pages 24-26 THE BUZZ 30 LEADS 26
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