Jan 6 - McClatchy-Tribune Regional News - Bill Archer Bluefield Daily Telegraph, W.Va.

The sagging international economy is still having an adverse impact on U.S. coal consumption, but the head of the West Virginia Coal Association said Tuesday that the recent cold snap appears to be having an impact on coal stockpiles around at least some coal-fired power plants.

"During the past two days, I have seen some indications that the prolonged period of cold weather has had some effect on stockpiles," Bill Raney, president of the West Virginia Coal Association said. "The accelerated depletion of coal stockpiles as well as production down a little because of the holidays may have an future impact on coal sales, but with colder weather, people are feeling a little better about the coal business."

Raney said he was pleased that the Environmental Protection Agency approved the mining permit at Patriot Coal's Hobet Mine in Lincoln County. "With 20-some surface mining permits still hung up in the morass of the federal bureaucracy, the focus for everyone in the coal business has to remain on getting the rest of these permits released," Raney said.

"Everyone is hopeful that the national economy will turn around and improve, but with all of those surface mining permits still being held up, the coal industry is still behind the 8-ball when the economy starts moving again."

 U.S. Senator Robert C. Byrd, D-W.Va., also praised the EPA's action with respect to the Hobet permit. "I commend Patriot Coal and the (EPA) for their determination to come to the table and work together to resolve this issue," Byrd was quoted in a press release as stating. "By choosing cooperation over confrontation, Patriot and EPA are creating a template for how coal operators and regulators can work together to protect mining jobs while also abiding by federal laws that protect the land, water and people from negative environmental impacts."

According to the press release from Byrd's office, the EPA, the Army Corps of Engineers and the state Department of Environmental Protection will start hosting meetings with coal operators to clarify the technical details and requirements of the permitting process. The agencies will host the first of the meetings at the Charleston Civic Center on Jan. 12.

Although he said news about the stockpiles going down is good news, "I still haven't seen any spikes in sales in the steam coal markets," Raney said. "But the metallurgical coal market seems to be holding solid. Most of that coal, I believe, goes to the export market."

-- Contact Bill Archer at barcher@bdtonline.com

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