Bloomberg News

Dirty Secret: `Big Coal' Examines the Global Impact of Mining

June 27 (Bloomberg) -- Al Gore was right: Global warming is a scary
thing, judging not only by the critical acclaim greeting Gore's new
documentary, ``An Inconvenient Truth,'' but by the proliferating horror
stories:

Polar bears in Alaska and the Yukon are suddenly turning to cannibalism
as melting ice cuts their food supply.

Pollution clouds, generated by China's power plants, are now crossing
the Pacific to land on western U.S. shores.

Experts are blaming the unusually warm waters of the Gulf of Mexico for
Hurricane Katrina -- even as we buckle down for another hurricane
season.

Nightmares like these fill the pages of Jeff Goodell's ``Big Coal,''
which reports on the resurgence of coal -- meaning new power plants and
reactivated mines -- in the face of the terrorist threats to oil, the
flat growth of natural-gas production and the political minefield of
nuclear power.

What does a book about coal's resurgence have to do with global warming?
Apparently, everything.

Coal is cheap and plentiful, writes Goodell, whose 2002 book, ``Our
Story'' was co-written with nine miners rescued after 77 hours in a coal
mine near Quecreek, Pennsylvania. An estimated 1 trillion tons of
recoverable coal exist in the world, including rich seams in Appalachia
and Wyoming's Powder River basin. Overall, the U.S. has more than 20
percent of the stuff, making America, in Goodell's terms, ``the Saudi
Arabia of coal.''

Environmental Havoc

Yet coal mining is far more invasive than oil or gas drilling. Strip
mining wreaks environmental havoc. Coal miners die with heart-rending
regularity (remember Sago?). And the sulfur-dioxide emissions from the
power plants that turn coal to electricity cause heart attacks, asthma
and premature deaths, while mercury poisons fish. On the global-warming
front, carbon- dioxide emissions -- nationwide, coal accounts for 40
percent of CO2 emissions -- trap the sun's heat in the atmosphere,
warming the Earth.

With atmospheric CO2 now at 380 parts per million (and rising 1.5 ppm a
year), and with one-quarter of the planet's CO2 emissions coming from
coal, it's time to stop our dark addiction, Goodell argues:

``Even if every SUV were downsized to a Schwinn, every truck and bus
repowered to burn biodiesel, and every refrigerator retrofitted to run
with solar panels, if we keep burning coal the old-fashioned way, we are
playing Russian roulette with the very thing that makes our life on
earth possible
-- a steady, temperate climate.''

Rising Temperature

At the same time, ``the equivalent of 1,400 1,000-megawatt coal-fired
power plants will be built in the world by 2030,'' Goodell tells us,
including a slew in the U.S. Yet CO2 emissions already are so intense
that Earth's temperature has risen 1 degree Fahrenheit during the past
century, especially during the last two decades, and is expected to
increase 2 to 10 degrees by 2100.

Goodell's sometimes achingly funny prose keeps us turning pages through
the science of all this, considering evidence from Greenland ice cores
of ancient periods when the temperature warmed a catastrophic 15 degrees
in less than 10 years.

``In human terms, it was like going to sleep one night in Alaska and
waking up in Costa Rica,'' Goodell writes. En route Goodell fixes his
anti-coal sights on targets like George W. Bush, pointing out how the
president during his 2000 campaign promised to regulate CO2 but reneged;
and how his ``Clear Skies Initiative'' actually left out CO2 altogether,
while putting only loose caps on sulfur dioxide and allowing a trading
system for mercury (a dangerous experiment, considering its toxicity).

Clean-Burning Plants

Drawing from three years of research, Goodell ranges far and wide, from
Quecreek's ``doghole'' to the ``carbon express'' railroads out West
(whose powerful owners have a big stake in coal's resurgence) to Urumqui
in western China. There he found locals planting anabasis shrubs in the
desert to soak up atmospheric CO2, and preparing to trade carbon
credits, as provided under the Kyoto Protocol (which the U.S. wouldn't
sign).

He explains such significant solutions to global warming as high-tech
clean-burning power plants (``akin to the difference between a Toyota
Prius and a Chevrolet Suburban'') and the burial of CO2. But, as Goodell
repeatedly points out, politics and Big Coal remain the immutable forces
in moving America forward on this issue.

``The most dangerous thing about our continued dependence on coal is not
what it does to our lungs, our mountains, or even our climate, but what
it does to our minds,'' Goodell writes. ``It preserves the illusion that
we don't have to change our thinking.''

 

 

 June 23, 2006
Op-Ed Contributor

Our Black Future

Saratoga Springs, N.Y.

NOT long ago, I stood at the bottom of a strip mine in Wyoming and looked up at a 70-foot-high seam of coal. It had a brownish cast and crumbled when I touched it. I could see bits of woody fiber, the remains of a huge swamp that existed there 50 million years ago. I imagined this great coal seam rolling under the prairie for hundreds of miles. "We're the OPEC of coal," the head of a coal industry trade group told me later.

Now that the need for greater energy independence has become a universal political slogan, every county commissioner in America has an idea of how we can break free of our Middle Eastern oil shackles: ethanol, hydrogen, solar panels on the roof of every Hummer! Still, it's hard not to be optimistic when you're standing in front of a 70-foot seam of coal. It's not hype; it's real. Is the bridge to energy independence paved in black?

During World War II, the Nazis, who were desperate to find a way to power their tanks with coal, pursued technology to transform coal into liquid fuels. In South Africa today, one energy company, Sasol, produces about 150,000 barrels a day of diesel from coal.

We could do far better in the United States. According to a recent report by the National Coal Council, an advisory board to the Department of Energy that is dominated by coal executives, if America invested $211 billion in coal-to-liquids refineries over the next 20 years, we could make 2.6 million barrels of diesel per day, enhancing the American oil supply by 10 percent. A number of coal-to-liquids plants are on the drawing boards in the United States, and China is eagerly pursuing this technology too.

Put aside the question of whether raising fuel efficiency standards for vehicles could achieve the same goal at far less cost. Instead, let's consider the wisdom of substituting one fossil fuel for another. We already burn a billion tons of coal a year — it generates more than half the electricity in the United States. But thanks in part to ever bigger, more powerful equipment, mining is destroying vast swaths of Appalachia while providing fewer well-paying jobs.

From 1984 to 2004, the average coal miner's per-shift productivity more than doubled, while wages declined by 20 percent (adjusted for inflation). If we simply increase consumption, we will be condemning large areas of the country, including eastern Kentucky and southern West Virginia, to national sacrifice zones. In addition, coal-to-liquids plants consume enormous quantities of water — three barrels, on average, for every barrel of fuel produced. In many places, especially the coal-rich but water-poor Western prairies, this is not a good deal.

Then there's global warming. To avoid dangerous climate change, many scientists argue that we must cut greenhouse gas emissions by 50 percent to 70 percent by 2050. Coal, the most carbon-intensive fossil fuel, is responsible for nearly 40 percent of American emissions of carbon dioxide, the main greenhouse gas. Since 1990, carbon dioxide emissions from fossil-fuel power plants have increased by 27 percent, compared to 19 percent from all sources nationally. Coal-to-liquids plants will only accelerate this trend. Depending on the technology used, refining coal can release 50 percent to 100 percent more carbon dioxide than refining petroleum.

In theory, carbon dioxide can be captured and sequestered underground in tapped-out oil fields or deep saline aquifers. But this method will work only in regions where the geology is suitable, and even there, good sequestration space is limited. Moreover, injecting carbon dioxide underground can set off earthquakes. And the gas is an asphyxiant: we risk deadly accidents should the millions of tons we would need to bury escape their underground prisons. In 1986, at Lake Nyos in Cameroon, 300,000 tons of naturally occurring carbon dioxide that had been trapped in the lake suddenly rose to the surface and formed a misty cloud, suffocating 1,700 people.

Coal-to-liquids plants might make sense for generating back-up fuel for the military. And there are certainly ways coal can play a role in reducing the demand for oil without destroying the climate. Instead of building coal-to-liquids plants, it would be smarter to push for the development of plug-in hybrid cars, which have larger batteries than conventional hybrids, allowing them to replace gasoline with grid-generated electricity and to emit 65 percent less carbon dioxide than conventional cars. But coal boosters are less interested in promoting this path, in part because it would undercut the industry's goal of becoming "the OPEC of coal." The very phrase suggests the industry's monopolistic impulses.

The biggest problem with our bounty of coal is not what it does to our mountains or the atmosphere, but what it does to our minds. It preserves the illusion that we don't have to change our lives. Given the profound challenges we face with the end of cheap oil and the arrival of global warming, this is a dangerous fantasy.

If we had less coal, we might replace the 19th-century notion that we can drill and burn our way to prosperity with a more modern view of efficiency and sustainability. Instead of spending billions of dollars each year to subsidize tapping out yet another finite resource, we'd pour that money into solar energy, biofuels and other renewable resources.

We'd be creating jobs in new industries, not protecting them in old ones. And we'd understand that the real fuel of the future is not coal but creativity.

Jeff Goodell is the author of "Big Coal: The Dirty Secret Behind America's Energy Future."


 

INTERVIEW-Fear of CO2 regime helps spur US coal rush

Wed 31 May 2006 4:46 PM ET

By Timothy Gardner

NEW YORK, May 31 (Reuters) - U.S. power companies are rushing to build coal-fired plants, in part because they are hoping to get them on the books ahead of potential U.S. regulations on greenhouse gases, the author of a book on the coal industry said in an interview.

"There's a dawning awareness in the coal industry that it is as good as it's going to get right now," Jeff Goodell, author of "Big Coal," to be published by Houghton Mifflin next month, said in a telephone interview. "Changing politics in America are not going to favor the coal industry," he said.

U.S. companies have submitted plans to build 120 plants that burn coal -- which emits more carbon dioxide than any other fuel -- though even the power industry says costs and permitting could pare that figure.

Unlike the European Union, whose members signed the Kyoto Protocol, the United States has no market for emissions of CO2 and other gases most scientists believe cause global warming.

President George W. Bush favors voluntary means of cutting heat-trapping emissions, and in 2001 he pulled the United States out of the Kyoto agreement. In its first phase, the pact requires rich countries to cut CO2 by about 5 percent under 1990 levels.

But politicians thought to be mulling a run for the White House in 2008, including U.S. Sen. Hillary Clinton and perhaps former Vice President Al Gore -- both Democrats -- and Republican U.S. Sen. John McCain, support greenhouse gases regulations.

"Once you get a price on carbon ... that changes the whole competitiveness of coal plants," said Goodell, a contributing editor at Rolling Stone magazine, whose book stemmed from a 2001 cover story he wrote for the New York Times Magazine. "All of a sudden other things look more competitive and (coal plants) make less sense," he said about the potential for wind and solar power.

For its part, the U.S. power industry doesn't see the coal rush related to a potential CO2 regime. "It's far more a response to... natural gas prices and concerns about fuel diversity, than ... companies trying to predict what the future may look like in terms of CO2 regulation," said Dan Riedinger, spokesman for the Edison Electric Institute.

To be sure, many things are sparking interest in coal. While U.S. oil imports have been rising since the 1970s, the country won't have to ship in coal any time soon. It has more coal than any other country, more than double China's, and nearly eight times Western Europe's.

And a rush in the 1990s to build power plants that run on natural gas have led to record prices for the fuel in each of the last three years.

PLANS

The planned U.S. plants could lead to greater emissions of greenhouse gases especially as few of them would be equipped with a new, more efficient technology, Goodell said. The technology, called integrated gasification combined cycle, trims CO2 emissions, but costs about 10 percent more. Even so, equipment that captures the gas can be added to it more cheaply than traditional coal plants.

American Electric Power Co Inc. <AEP.N> and Cinergy Corp. <CIN.N> are planning to build IGCC coal plants. But the lion's share of the plans call for dirtier conventional plants, including TXU Corp.'s <TXU.N> plans for eight of them in Texas.

How any new U.S. coal plants would fit into a U.S. carbon scheme is anybody's guess. To create a market the EU handed down emissions allocations to power plants. Companies that cut emissions under set limits sell credits to those who could not cut them. The market traded $7 billion in credits last year and is expected to grow much more.

If a market operates in a similar way in the United States -- the world's largest emitter of greenhouse gases -- utilities that squeeze in plants now instead of after the regulations are set up could save money.

"The question is how plants will be grandfathered in and what kind of allowances will be made for plants under construction and in permitting stages, " said Goodell. "That's going to be a huge battle."


Coal's resurgence sparks debate

GILLETTE -- At a time when oil is $70 per barrel and worldwide energy demand is escalating faster than ever, coal seems to have emerged as America's answer to the nation's energy future.

Production is on the rise nationwide -- even more so in Wyoming, where federal regulators have churned out billions of tons of new coal leases in recent years. And a growing number of conservationists who once rallied against coal are now embracing the possibility of transitioning America's fleet of old coal power plants to cleaner gasification technologies.

But coal's rising popularity in the energy market, combined with the recent high-profile mine fatalities in the eastern United States, has also awakened an old debate about the hidden human health and environmental costs of mining and burning coal.

In his new book, "Big Coal: The Dirty Secret Behind America's Energy Future," Rolling Stone contributing editor Jeff Goodell argues that the industry is profiting from what he says is a hollow promise to move toward those cleaner energy processes such as integrated gasification combined cycle, or IGCC.

"This coal boom is more about cashing in on America's energy problems, not solving them," Goodell said in a teleconference call on Wednesday.

Goodell and other panelists who took part in the teleconference highlighted the industry's past and present impacts of mountaintop removal, underground mine fatalities and air pollution from pulverized coal-burning power plants as examples of the hidden costs of relying on coal for half of America's electrical supply.

The millions of dollars the federal government promises to spend on IGCC and other "clean" coal technologies is nothing more than a delay tactic, Goodell said. IGCC is a process that places coal under high pressure, and with a chemical catalyst, extracts gas from the coal. The gas is then burned to generate electricity, which produces far fewer emissions.

Goodell referred to the Department of Energy's zero-emissions FutureGen project as "NeverGen," claiming the intent is to forever dangle the carrot 15 years away from the public. In the meantime, there are some 130 power plants being planned across the nation on pulverized coal designs.

"This coal boom is really all about money. These coal plants that are burning coal right now are legal mints. They sell (electricity) for enormous profit, and that's what's driving this boom," Goodell said.


Casper resident Jason Marsden said he considers himself among the growing percentage in the environmental community who do see a sustainable future with coal, as long as it moves to an IGCC model.

Marsden, executive director of Wyoming Conservation Voters, said Goodell's examples of miner fatalities and mountaintop removal in Appalachia are actually counter-productive to the real public debate that needs to happen in order to switch coal to cleaner technologies.

For example, Goodell invited Coal River Mountain Watch founder Judy Bonds to speak as a panelist on the teleconference.

"Our blood is all over that coal that they are burning," Bonds said. "This is not the industry we want to base our future on."

Marsden said he understands why folks in Appalachia feel betrayed by the coal industry, but Americans would be hurting themselves to abandon coal completely.

"We cannot fuel this country without using coal, especially in this oil pricing environment," Marsden said. "The real meaningful debate is how much can we reduce the impacts at a cost that will not bankrupt the consumer, and what should government's role be in that? That's the debate that will save miners' lives, reduce asthma and lessen the environmental impact. But blaming an entire industry and ignoring improvements that are technically realistic is shortsighted."

Goodell said he does acknowledge in his book that there is a percentage of coal companies and utilities that are investing in cleaner coal technologies.

Goodell said he supports a conversion to IGCC, but believes a few "old dinosaur" companies in the coal industry are blackmailing the public with threats that expensive IGCC technology would kill consumers' pocketbooks. The additional cost to build an IGCC plant is in the initial construction phase, Goodell argued, and even that cost is "nothing," he said.

"Look what's happened with oil prices. If anyone would have told you two or three years ago (that oil prices would spike), they would have said there would be economic destruction and decline," Goodell said. "Someone has to call the industry on this."


Marsden noted that Wyoming's strip mines have a better environmental workplace safety track record than the industry in the East. In fact, an IGCC model based on Western coal might actually ease the demand for Eastern coal and lessen the human and environmental impacts there.

"Adjusting more of our production to a surface mining paradigm and an IGCC paradigm is going to address a huge amount of the impacts that people are upset about," Marsden said.

KFx Inc. worked for more than 10 years to develop its K-Fuel process, which takes moisture and other impurities out of coal and dramatically increases the heating content. The company recently completed construction of its first commercial plant north of Gillette and has published results of test burns at a nearby power plant.

"There is very, very strong interest among the utilities for clean coal products," said KFx Inc. CEO Mark Sexton.

There are a lot of naysayers, too, Sexton said, which is why the company is committed to repeatedly testing and publishing results.

Sexton said KFx's most recent round of testing results confirm what the company has been saying all along:

"The result is an ultra-compliant coal, that's been proven over and over and over again," Sexton said.


Sunday, May 28, 2006
 

2 Industry Leaders Bet on Coal but Split on Cleaner Approach


 
WRIGHT, Wyo. — More than a century ago a blustery Wyoming politician named Fenimore Chatterton boasted that his state alone had enough coal to "weld every tie that binds, drive every wheel, change the North Pole into a tropical region, or smelt all hell!"

His words seem prophetic.

The future for American energy users is playing out in coal-rich areas like northeastern Wyoming, where dump trucks and bulldozers swarm around 80-foot-thick seams at a Peabody Energy strip mine here, one of the largest in the world.

Coal, the nation's favorite fuel in much of the 19th century and early 20th century, could become so again in the 21st. The United States has enough to last at least two centuries at current use rates — reserves far greater than those of oil or natural gas. And for all the public interest in alternatives like wind and solar power, or ethanol from the heartland, coal will play a far bigger role.

But the conventional process for burning coal in power plants has one huge drawback: it is one of the largest manmade sources of the gases responsible for global warming.

Many scientists say that sharply reducing emissions of these gases could make more difference in slowing climate change than any other move worldwide. And they point out that American companies are best positioned to set an example for other nations in adopting a new technique that could limit the environmental impact of the more than 1,000 coal-fired power projects on drawing boards around the world.

It is on this issue, however, that executives of some of the most important companies in the coal business diverge. Their disagreement is crucial in the debate over how to satisfy Americans' energy appetite without accelerating climate change.

One of those executives, Michael G. Morris, runs American Electric Power, the nation's largest coal consumer and biggest producer of heat-trapping carbon dioxide emissions from its existing plants. He is spearheading a small movement within the industry to embrace the new technology. His company plans to build at least two 600-megawatt plants, in Ohio and West Virginia, at an estimated cost of as much as $1.3 billion each.

The company says these plants are not only better for the environment but also in the best interests of even its cost-conscious shareholders. While they would cost 15 to 20 percent more to build, Mr. Morris says they would be far less expensive to retrofit with the equipment needed to move carbon dioxide deep underground, instead of releasing it to the sky, if limits are placed on emissions of global warming gases.

"Leave the science alone for a minute," Mr. Morris said in an interview at the Columbus, Ohio, headquarters of his company. "The politics around climate issues are very real. That's why we need to move on this now."

But most in the industry are not making that bet. Among them is Gregory H. Boyce, chief executive of Peabody Energy, the largest private-sector coal producer in the world thanks in part to its growing operations here in Wyoming and with aspirations to operate coal-fired plants of its own. Mr. Boyce's company alone controls reserves with more energy potential than the oil and gas reserves of Exxon Mobil.

"We're still not convinced that the technology or cost structure is there to justify going down a path where we're not comfortable," Mr. Boyce said.

Mr. Boyce's view has prevailed. No more than a dozen of the 140 new coal-fired power plants planned in the United States expect to use the new approach.

The decisions being made right now in industry and government on how quickly to adopt any new but more costly technologies will be monumental.

"Coal isn't going away, so you have to think ahead," said Gavin A. Schmidt, a climate modeler at the Goddard Institute for Space Studies, part of NASA. "Many of these power stations are built to last 50 years."
 

 
Promise and Perils

Michael Morris and Gregory Boyce, both kingpins in their industries, have a lot in common. They do a lot of business together — Mr. Morris is one of Mr. Boyce's largest customers. They are solid Republicans. And they serve together on various industry initiatives.

They agree that energy from coal — the nation's most important source of electricity — is cheaper than energy from oil and natural gas and is competitive with the uranium used in nuclear power plants. And coal could serve new uses: replacing petroleum in making chemicals, for example, or even fueling vehicles.
But while sooty smokestacks are no longer a big problem in modern coal-burning power plants, the increase in global warming gases is. A typical 500-megawatt coal-fired electricity plant, supplying enough power to run roughly 500,000 homes, alone produces as much in emissions annually as about 750,000 cars, according to estimates from Royal Dutch Shell.

Coal has no stronger evangelist than Mr. Boyce, who grew up on Long Island, the son of a mining executive, and studied engineering in Arizona. He argues that a way to reduce carbon dioxide emissions can be found without having to switch from the existing cheaper coal-burning technology.

Much in the way that Exxon Mobil influences discussion of climate issues in the oil industry, Peabody is a backer of industry-supported organizations that seek to prevent mandatory reductions in global warming emissions and promote demand for coal.

Peabody's executives are also by far the coal industry's largest political contributors to federal candidates and parties, giving $641,059 in the 2004 election cycle, with 93 percent of that amount going to Republicans, according to the Center for Responsive Politics, an independent research group in Washington that tracks money in politics. And while Peabody says it expects contributions to Democrats to increase, under Mr. Boyce the company has cultivated close contact with the Bush administration.

Mr. Boyce was chairman of an advisory panel for the Energy Department, organized by the National Coal Council, that produced a controversial report in March calling for exemptions to the Clean Air Act to encourage greater consumption of coal through 2025. The thrust of the report, which Mr. Boyce outlined in an interview, is that improvements in technology to limit carbon dioxide emissions should be left to the market instead of government regulation.

By contrast, the environmental advocacy group Natural Resources Defense Council, which has brought many lawsuits aimed at controlling pollution, described the report as an "energy fantasy" that would increase carbon dioxide emissions by more than 2 billion tons a year.

But it is Peabody's economic argument, not the environmental opposition's, that is resonating throughout the electricity industry and among energy regulators.

Led by Peabody, dozens of energy companies have embarked on the most ambitious construction of coal-fired electricity plants since the 1950's.

Coal, as Mr. Boyce notes, is a bargain. Despite a doubling in domestic prices in the last two years, a surge in prices for natural gas, the preferred fuel for new power plants in the 1990's, has made coal more attractive.
With coal so favorably priced, Peabody saw an opportunity to enter the power-plant business itself, setting out to build two of the largest in the world, the 1,500-megawatt Prairie State Energy Campus in southern Illinois and the 1,500-megawatt Thoroughbred Energy Campus in western Kentucky. Both are in areas where the St. Louis-based company has substantial coal reserves.

Despite concern among some large energy companies over the liabilities they face if global warming advances or legal limits on emissions become a reality, Peabody remains loyal to its technology choice. Vic Svec, Peabody's senior vice president for investor relations, said the possibility of near-term caps on carbon emissions was not viewed as a "material threat."

Mr. Morris, at American Electric Power, sees things differently. He cites cost concerns in arguing for its move to cleaner technology. At the request of environmental groups that hold shares in the company, A.E.P. agreed in 2004, shortly after Mr. Morris arrived, to report on the potential costs it would face if emissions rules were tightened. The company recognized that its growth beyond 2010 could be limited if it stuck with old technology.
The company has since won important allies in its push for cleaner coal, including General Electric, which is pinning much of its hopes for growth in the electricity industry on new technology and is working with A.E.P. on designing its plants.

One vital element of A.E.P.'s ambitions, and by extension those of other energy companies with similar projects, fell into place in April when the Public Utilities Commission of Ohio allowed the company to bill customers for a portion of the higher pre-construction costs for the plant it is planning in the state. The company hopes to complete construction of its first such plant by 2010.

Proponents of these plants, which turn coal into a gas that is burned to produce energy, say they would also emit much lower amounts of other pollutants that contribute to acid rain, smog and respiratory illness.

But for every small advance of the new technology, there are bigger setbacks. Many within the industry argue that it would be a waste of time and money to build such plants in the United States unless China, which passed the United States several years ago as the largest coal-consuming nation, also moves to limit carbon dioxide emissions from its rapidly growing array of coal-fired plants.
 

Will Government Act?

With widespread uncertainty in the state-regulated power industry, the debate has moved to the federal level, where testimony by senior energy executives before the Senate Energy Committee in April revealed a sharp fault line within the industry.

On one side, A.E.P., lined up with Peabody and other heavy coal users against mandatory limits on global warming gases if industrializing countries like China and India are not included. Others that have less to lose from carbon caps — like Exelon and Duke Energy, which rely much more on nuclear power — spoke in favor of national limits that would include coal consumers.

The Bush administration has rejected mandatory limits on carbon dioxide emissions. Michele St. Martin, a spokeswoman for the White House Council on Environmental Quality, said, "such regulations would lead to higher energy prices, slower economic growth and fewer jobs for the U.S. as industries move overseas where greenhouse gas emissions are not similarly controlled."

But there is some support in Washington for such legislation. The two senators from New Mexico, Jeff Bingaman, a Democrat, and Pete V. Domenici, a Republican, are working on a bill that could require limits on carbon dioxide emissions.

Ahead of the 2008 presidential election, two senators often mentioned as candidates, Hillary Rodham Clinton, Democrat of New York, and John McCain, Republican of Arizona, have endorsed mandatory cuts in emissions. Mr. Morris of A.E.P. said such support has persuaded him that limits might be imposed in coming years.
While Peabody supports some coal gasification projects, it remains skeptical about departing from traditional coal-burning methods to produce electricity.

The pulverized coal plants it wants to build, which grind coal into a dust before burning it to make electricity, currently cost about $2 billion each, or 15 percent to 20 percent less to build than the cleaner "integrated gasification combined cycle," or I.G.C.C., plants, which convert coal into a gas.

The hope among scientists is that I.G.C.C. plants could be relatively quickly fitted with systems to sequester deep underground the carbon dioxide created from making electricity. Without such controls, the new coal plants under development worldwide could pump as much carbon dioxide into the atmosphere over their lifetimes as all the coal burned in the last 250 years, according to Jeff Goodell, who has written on coal for several publications, including The New York Times, and is author of a new book on the coal industry.

But state and federal regulators have been hesitant to endorse the technology. Peabody and other companies remain skeptical that carbon-capture methods, whether for pulverized coal or combined cycle plants, will become commercially or technologically feasible until the next decade.

Legal battles over this reluctance have begun, with the Natural Resources Defense Council and the American Lung Association this year challenging the Environmental Protection Agency for allowing electric companies to move ahead with projects without evaluating the new technology.

In one key decision on the state level, the Wisconsin Public Service Commission rejected a proposal from WE Energies of Milwaukee in 2003 to build a plant with the new technology, saying it was too expensive and would result in higher electricity prices.


Capturing the Gas

Engineers have known how to make gas from coal for more than a century, using this method in the gaslights that first illuminated many American cities. A handful of coal gasification plants are already in operation in the United States, Spain and the Netherlands, built with generous government assistance.

Selling the captured carbon dioxide from coal gasification plants could make them more competitive with pulverized coal plants. One gasification plant in North Dakota, though different from an electric plant, already sends its carbon dioxide to Saskatchewan, where it is injected in aging oilfields to force more crude from the ground. And the oil giant BP announced a similar project in March for a refinery it owns near Los Angeles, using petroleum coke as a fuel there instead of coal.

Scientists have developed numerous other plans to pump away carbon dioxide, like shipping it to offshore platforms to inject it below the ocean floor. These plans are not without risk, with some officials concerned that carbon dioxide sequestration could trigger earthquakes. Yet, time and again, the most limiting factor remains economics.

As they proceed with plans to build pulverized coal plants, Peabody and other companies often point to their support of the alternative technology through their participation in Futuregen, a $1 billion project started three years ago by the Bush administration to build a showcase 275-megawatt power station that could sequester carbon dioxide and reduce other pollutants.

Futuregen's 10 members include some of the world's largest coal mining companies, among them Peabody and BHP Billiton of Australia, as well as large coal-burning utilities like A.E.P. and the Southern Company.
One Chinese company, the China Huaneng Group, is also a member of Futuregen, while India's government signed on in March. Washington is financing the bulk of the project, more than $600 million, with about $250 million coming from coal and electricity companies and the rest from foreign governments.

But Futuregen is already behind schedule, with planners now hoping to choose a site for the plant by the end of the year, with an eye on starting operation by 2012. Environmental groups have criticized the project as too little, too late.

"Futuregen is a smokescreen, since it's not intended to bring technology to the market at the pace required to deal with the problem," said Daniel Lashoff, science director at the climate center at the Natural Resources Defense Council. "We don't have that kind of time."


As Coal Demand Rises, Risky Mines Play Bigger Role

 By Kris Maher / May 31, 2006
  

MCDOWELL, Ky. -- Last September, Timothy D. Hall was drilling holes in the deepest part of a low-roofed coal mine when an explosion thrust him from his drill machine and set him on fire.

He crawled 45 feet to a mudhole inside the mine to douse the flames. The fireball melted the bill of his hard hat, charred his oxygen canister and burned his jacket, according to government investigators. After he was carried outside, but before any pain set in, he was shocked to see the flesh of his fingers had melted together.

Mr. Hall, 36 years old, survived and has regained limited use of his hands. His episode is part of an alarming upswing in coal-mining accidents, at a time when the industry is in the midst of a boom. Since May 20, seven miners have died, bringing the number of workers killed in coal-mine accidents in the U.S. this year to 33 -- compared with 22 for all of last year.

Part of the problem, some say, is a rise in the number of small, undercapitalized mines that have become economical since coal prices have surged. Miners refer to them as "dogholes."

In many cases, small operators work as contractors for big coal companies. The mine where Mr. Hall worked, for instance, was owned by J. & R. Coal Inc., and employed 23 miners. It provided coal to Consol Energy Inc., the fourth-largest coal producer in the U.S.

Roger Bentley, J. & R. Coal's owner, declined to comment on the accident. He said the mine has closed and the company is no longer in business. Thomas Hoffman, a spokesman for Consol Energy, says it reviewed the safety records of Mr. Bentley, as it does for all mine operators it contracts with, and "we thought his safety performance in the past was pretty good."

Despite the recent rash of fatalities, coal mining has gotten safer overall, due to improved technology and mining methods. In the early part of the 20th century, when there were roughly seven times as many coal miners as today, the annual death toll from accidents often exceeded 2,000 miners. In 1950, there were 643 fatalities. By 1990, the number had dropped to 66.

But higher fatality rates at small mines, which many mine-safety experts define as those employing fewer than 50 miners, have plagued the industry even in years when the overall number was falling. A report by the National Institute for Occupational Safety and Health, which examined data from 1988 to 1997, found the fatality rate at coal mines with fewer than 50 employees was 4.24 times the rate at mines with 250 or more workers. According to data from the Labor Department's Mine Safety and Health Administration, in each of the past three years, the fatality rate at underground coal mines with fewer than 50 workers was higher than the rate for all underground coal mines.

Small mines tend to open when coal prices rise. The average price of coal from Central Appalachia -- which includes parts of Virginia, Kentucky and West Virginia -- was $58 per ton last year, up from $29 in 2002. Prices are rising in part because of increased demand for coal to generate electricity from utilities seeking an alternative to natural gas as its price has risen. Domestic steelmakers have been using more metallurgical coal, while China's rapid industrialization is also creating demand for huge amounts of coal to make steel.

"As long as prices stay high, you're going to get the marginal producers coming in to capture a share of the market," says R. Larry Grayson, chairman of the department of mining and nuclear engineering at the University of Missouri-Rolla. He says the danger of accidents increases when smaller mines proliferate because they tend to have less-experienced workers, use older equipment and mine harder-to-reach coal seams that are passed over by big companies.

Mines with fewer than 50 employees represent about 25% of all underground coal-mining jobs, according to MSHA.

Fourteen of last year's 22 deaths at underground mines, surface mines and coal-preparation plants occurred at operations with fewer than 50 employees, according to MSHA data. Of the 33 deaths this year, 11 occurred at mines with fewer than 50 employees. Five miners were killed last month following an explosion at an underground mine operated by Kentucky Darby LLC of Middlesboro, Ky., which employed 34 miners, according to MSHA. Repeated calls to the mine's office went unanswered.

"All of a sudden we're having a horrendous year in both West Virginia and Kentucky, and it's unacceptable," says Bill Caylor, president of the Kentucky Coal Association, which represents mostly big coal operators, many of which hire small contractors. But he says overall, "we've made tremendous strides and we're still pushing for safety."

Most fatalities that occur in mines of any size are the result of "freak accidents," and some are due to human error, says Mr. Caylor. The term "dogholes" is a sensational one, used by mine-safety "zealots," he adds. "But there is some legitimacy to this," he says. "There are some operators that are ruthless that have been the bad apple in the entire barrel."

More operators have opened mines to "try to make a quick profit because the coal market is high right now," says Dennis O'Dell, administrator of occupational health and safety for the United Mine Workers of America. Small mines are almost entirely nonunion, and miner advocates say workers at such operations often don't have the same protections as those at big unionized mines.

Of the 33 coal miners killed this year, three worked at unionized mines that employed at least 100 miners, according to MSHA. The other 30 worked at nonunion mines.

"More miners are at risk because of undercapitalized mines," says Tony Oppegard, a former MSHA official during the Clinton administration who is now a lawyer in Lexington, Ky., representing miners and their families. "I think the deaths are going to mount with the demand for coal."

Workers at small mines tend to be less experienced and more economically desperate than those at big mines, says Mr. Oppegard. "You've got this permanent base of unemployed people in eastern Kentucky," he says. "You'll always have people who are willing to work under whatever conditions that you impose."

Poor conditions in small operations have been linked to deaths. The 13th coal miner killed this year, Cornelius Yates, died Jan. 10 in a Pikeville, Ky., mine that employed nine. The 44-year-old was operating a machine used to drive six-foot-long bolts into the mine roof to secure it when the roof collapsed and killed him.

In that case, federal investigators determined the roof was unstable. "The condition was widespread and obvious and should have been detected by a reasonable prudent mine examiner," investigators wrote. The company was cited for safety violations related to the accident, but fines haven't been set yet, says MSHA.

James H. Blevins, owner of Maverick Mining Co., in Robinson Creek, Ky., which operated the mine, declined to comment.

Mr. Caylor, of the Kentucky Coal Association, believes the best way to improve safety is for state and federal inspectors to observe the working habits of a miner "and teach him how to work safer, rather than sitting there as a policeman, writing a ticket."

Others say enforcement needs to be tightened. In February, MSHA announced plans to toughen penalties for mine operators. One step: raising the maximum penalty for flagrant violations to $220,000 from $60,000. The agency said its penalty structure is 25 years old and needs updating.

Last week, the U.S. Senate passed broad mine-safety legislation that requires coal mines to store more oxygen underground, sets stricter fines and mandates use of wireless communications devices in mines within three years, among other things. The bill is pending in the House.

MSHA has recognized safety woes of small mines. In 2003, it opened the Small Mine Office to help mines with five or fewer employees, by providing safety guides, among other things. Mines of this size "do not have the resources to have sophisticated health-and-safety programs," said David Dye, MSHA's acting administrator, in a speech last fall.

"Technology is one of the factors that has led to improvements in mining safety, and larger mines are better able to take advantage of it," says Carol Raulston, spokeswoman for the National Mining Association, which represents big operators.

Even though coal prices are up, margins can still be tight for small operators. It often costs more per ton to extract coal from lower-quality seams. Many small operators don't own the land they mine; instead they mine on a contract basis, selling the coal at below-market prices to larger operators who own the mineral rights to the property.

Ron D. Bowling, who owns a company that plans to start operations this month at a small surface coal mine in Pike County, Ky., says higher prices for mining equipment and diesel fuel are also squeezing small operators. But he says most mine owners are diligent about safety.

"All the people I know in the business, their worst nightmare is getting someone hurt on the job," says Mr. Bowling, who plans to employ 12 to 15 people at his mine.

Some experts believe drug use among miners could be contributing to accidents, and small mines often do less drug-screening than large ones. But as another recent accident at a small mine shows, there can be a mix of factors.

In December, David Sherman Morris, Jr., a 29-year-old shuttle-car operator, was killed at a 31-employee coal mine operated by H&D Mining Inc., of Cumberland, Ky. He was struck by a loaded coal hauler, used to transport coal inside the mine. The hauler severed Mr. Morris's left leg above the ankle and crushed his right leg, according to an MSHA report.


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