Jul. 10--Wow. This coal conversion stuff really is like magic.

Or at least the politics of coal conversion, as played in Frankfort this summer, is like magic. How else to explain the way Gov. Ernie Fletcher and Peabody Energy pulled out of apparent thin air a plan to build a plant that would convert coal into natural gas? For weeks, Fletcher and Peabody officials had been talking, even testifying before legislative committees, about the need to enact incentives to ensure Peabody would build a plant in Kentucky to convert its substantial coal reserves into liquid fuels to power jets, trucks and cars. The state has already given Peabody $400,000 to help spur this particular development.

Then, all of a sudden, without explanation, they said Peabody has to decide within 90 days where to build a second plant, this one to convert coal into natural gas, and that without quick action by the legislature, Kentucky would be out of the running. We perused Peabody's Web site and read about a number of coal conversion projects the company has in the works with investors, but nothing about this particular one. It must have come up quickly. Peabody was handing out a sheet last week that said such a plant producing 100 million cubic feet of natural gas a day would employ 125 plant workers and 250 miners and require 1.8 million to 2.5 million tons of coal a year.

Fletcher said the spin-off effect would increase the numbers to 4,050 jobs during construction and 2,805 permanent jobs. Just like magic.