Podcast Looks At Alternatives For Coal Decline In Wyoming

Wyoming traditionally has more coal production than West Virginia. The states are generally one and two nationally. But like the Mountain State, coal production in “Big Wyoming” has been on the decline for more than a decade. Even so, state leaders there are pinning their hopes on carbon capture technology.

The Carbon Valley podcast is a production of Wyoming Public Media.

Wyoming Public Media reporter Cooper McKim produced a nine-part podcast about the efforts in Wyoming. He spoke with Eric Douglas about what he learned.

This interview has been lightly edited for clarity.

Douglas: Tell me the basis for the podcast to begin with.

McKim: Coal production here has pretty much been on the decline since 2008. And job growth has gone with it. There have been several bankruptcies and the economy here relies on it for a majority of its revenue. Schools rely on it. It’s a little different than West Virginia, in that we get so many perks, basically from the minerals industry, it’s paid for so much, made the quality of life so good. And with that in mind, the primary effort has been keeping it going.

In 2008 there was this idea. A legislator from Gillette, our main coal capital, where all the mining is really happening, thought that carbon emissions, that carbon dioxide was the problem, but that if we could take care of that, maybe coal plants would stop going offline and coal demand would maintain. It didn’t really take off, because that recognizes climate change.

I wanted to take that idea, and just really explore how the idea of carbon capture took hold, because there’s this parallel of climate technology and keeping fossil fuels going. They seem like they’re going against each other, but they’re really not.

Douglas: It sounds like there was actually a program set up to encourage carbon capture projects. Was that funded by the state itself? Or where did that come from?

McKim: So there have been a bunch of different investments into carbon capture. And the main one was the integrated test center, which was basically a facility set up next to a coal plant here. And then they started a competition to be the first patent. The basis for the podcast was saying, let’s get a bunch of international companies to come to Wyoming and show that we can do this, to show that this is possible.

The investment was really into this facility. It was, I think, around $15 million. But there was also money from several utilities that went into it. And it was going to reward whoever produced the best technology. Carbon capture itself is trillions of dollars away from commercial viability.

Douglas: But it wasn’t just capturing the carbon emissions, it was trying to develop a system to capture the carbon emissions and then use the carbon as a byproduct as well. So you were trying to cut down on emissions, but also find a use for the material.

McKim: Yeah, so Gov. Matt Mead, the governor before our current one, had the idea that carbon capture and sequestration is great, but you’re just putting it underground. What are you doing with it? These things are expensive, so offsetting the cost by creating a different profit from another resource that it’s producing. Carbon capture utilization is sort of a sub industry of carbon capture. And that’s not trillions, but probably billions away from commercial viability. The only areas that it’s really working in right now is producing concrete from it and some are trying to produce sort of a renewable gas.

Douglas: So what did you find? What was the final result?

McKim: So what I found is that carbon capture is very different from how carbon capture helps coal. This industry itself could do very well and potentially affect net zero emissions. But the timeline for that is just different from the timeline for coal demand. That’s already been going down really fast. In Appalachia, it happened even sooner than it is here.

The reality is that things are moving really, really fast. And carbon capture is moving really, really slow. And so what this sort of exemplified is, we may not have enough time, and other people in the state want to look elsewhere to economically diversify in a way that is safer, is potentially a little bit broader, provides near term solutions, because it’s not providing jobs right now. Hundreds of people have lost their jobs in coal bankruptcies in the past few years. And there aren’t jobs being replaced by carbon capture yet. So the timelines are just off.

Douglas: What was your big takeaway at the end of the podcast?

McKim: Economic diversification can’t really be replaced by one industry. Whether or not you keep something going, it’s going to have to be larger than one industry. What I found is that there are other people who want to not just keep coal demand going, but diversify a little bit beyond that. And that’s not to say there aren’t efforts but the primary effort is to transform the city into a Silicon Valley for carbon products, whether that’s carbon dioxide or coal directly itself. And I think that’s going to be the primary effort and what I think I sort of found in the podcast is.

Douglas: What did you learn during the podcast that we haven’t touched on?

McKim: The podcast is actually very humorous. It follows a competition that involves an underdog doing carbon capture. We sort of build a friendship throughout the show. It talks about the grief of losing coal and coal plants. I lost my dad while reporting the story. And so I talked about that. There’s a lot of sentimentality and humor, and it tries to sort of get at this in a way that is not boring. So hopefully, it’s an interesting story. And I think there are a lot of parallels with West Virginia. So I hope that some of your audience might find it compelling.

The podcast Carbon Valley looks at carbon sequestration and alternative uses for carbon.

Judge Denies Blackjewel’s Move to Liquidate

A federal bankruptcy judge has denied a petition from former Blackjewel coal executive Jeff Hoops to liquidate the company. The decision means the reorganization of the company will continue under Chapter 11 bankruptcy as former employees, creditors and state agencies seek to recover millions owed by the company.

Hoops cited “permanent negative cash flow” at his former company, which has accrued at least $80 million in administrative and other expenses since its bankruptcy filing on July 1 last year.

The nearly 3,000-filing-long Blackjewel bankruptcy docket demonstrates an 18-month scramble by the company’s creditors to recuperate as much money as possible from a too-small pot. According to court filings, Blackjewel also has multiple outstanding permit violations, an unknown amount of outstanding environmental reclamation liabilities, unpaid taxes totaling $2 million, tax liabilities of untold amounts, and millions in unpaid employee healthcare claims.

The request to liquidate, according to coal bankruptcy expert Josh Macey, was yet more proof that Blackjewel’s future was grim. “Given how long this bankruptcy has dragged on, how poor conditions for coal are right now, how speculative and unprofitable Blackjewel’s assets have been, it isn’t surprising that it’s moving to a liquidation,” Macey said.

Federal Judge Benjamin A. Kahn did not explain in his order why he was denying Hoops’ petition to liquidate. But environmental advocates had previously objected to the request, arguing that a liquidation would make it less likely that certain of Blackjewel’s mining permits would be reclaimed.

Federal agencies, including the Internal Revenue Service and the Department of the Interior, also objected to the petition to liquidate. “The United States believes that the best course of action is to allow the Debtors [Blackjewel] additional time to develop a plan that would meet the requirements of Chapter 11 of the federal bankruptcy laws and not require the Debtors to convert to a Chapter 7 liquidation,” attorneys for the agencies wrote.

Blackjewel made headlines last year after its abrupt collapse left hundreds of Kentucky and Virginia coal miners out of work and without pay. Environmental advocates remain concerned that some coal mines will put strain on state mine land reclamation funds or go unreclaimed altogether.

Hoops has been sued in the same bankruptcy court over alleged financial mismanagement of Blackjewel and associated companies.

Company Adding 290 Coal-Mining Jobs in Three States

Bluestone Resources says it is hiring 290 more workers for its coal-mining operations in West Virginia, Kentucky and Virginia.

In West Virginia, the company says new jobs will be created at Keystone Surface Mine and at Bishop Surface Mine, which is reopening. Bluestone says it’s also looking for miners at its operations in Pike County, Kentucky, and in Wise, Virginia.

Jay Justice, who operates the mines for Justice Companies, says workers are being sought to operate all types of machinery. He says the company is looking to hire right away.

The company says a new training program for a small number of inexperienced workers is also being initiated.

McDowell Coal Mine is Hiring Experienced Workers

The economy in southern West Virginia is suffering due to the collapsing of the coal industry and it’s not hard to find reports of layoffs. But an international coal company called ArcelorMittal Princeton is expanding operations at a McDowell County mine bringing 50 to 75 jobs back to the region.

On Thursday, coal miners walked into the Workforce West Virginia office, resumes in hand.

Jason Mathews from Falls Mills, Virginia is one of about 30 men waiting in line down a long hallway. Matthews was laid off from a coal prep plant on Monday, and he needs work. He’s never really considered looking into another profession.

“Around here everything’s tied in with coal anyway, down to the convenience store,” Matthews said. “It would be nice to get something else in but everything’s tied in real big with it.”

Credit Jessica Lilly
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Coal miners wait in line to apply for coal jobs.

There were about 133 applications gathered in Mercer County for the limited coal mine jobs. Earlier this week at a job fair in McDowell County, 210 people applied for the 50 to 75 jobs that are now available at a mine in McDowell County. ArcelorMittal owns the mine. 

Workforce West Virginia Employment Programs Office Manager Lisa Collins lives in McDowell County. She’s been with Workforce for 15 years. McDowell is one of six in southern West Virginia with an economy that’s so bad, researchers compare it to the Great Depression.

“Some of the southern part of the state is very dependent on coal,” Collins said. “So without any other industries in McDowell County of course it’s going to be a lot harder hit than some of the other areas.”

Not all of the applicants are out of work, though. Some of the men were looking for better opportunities like higher wages or more health benefits.

Applicants traveled from places like northern West Virginia, Ohio, and Kentucky to apply for the limited mining positions. Experienced miners that couldn’t make the job fairs but want to apply can drop off a resume at one of the Workforce locations in McDowell or Mercer.

In an email, a spokesperson for ArcelorMittal says they’re hiring for this McDowell County mine to in order to keep “2017 production in line with improved global demand for metallurgical coal.”

Met coal is used for making iron and steel. 

Cliffs Cuts Jobs at Two Mines in Alabama and West Virginia

Cliffs Natural Resources has cut its workforce in half at two coal mines in Alabama and West Virginia.

Both the Oak Grove Mine in Alabama and the Pinnacle Mine in West Virginia produce metallurgical coal, which is used for steel production.

Multiple media outlets report that Cliffs announced the job cuts last week.

The company says the cuts are part of a new operating plan aimed at reducing its North American coal business’ costs.

Coalfields React to Part of Obama's Budget

President Barack Obama’s new budget proposal includes more than $3 billion worth of tax credits and other spending to help the Appalachian region recover from the declining coal industry. People across the coalfields are responding with mixed feelings.

In southern West Virginia, many people see initiatives from the Obama administration and the federal Environmental Protection Agency to reduce carbon emissions as an attack on their livelihoods.

So it’s not surprising to hear skepticism and doubt from the coalfields when the president announces intentions to throw a financial lifeline to Appalachia.

Eighteen year-old Brock Harris of Princeton, is glad to hear that Washington is paying attention to the struggles of the region.  But he remains skeptical if this part of the budget will remain a priority on Capitol Hill.

“We would be able to get all the miners who lost their jobs, who have a grudge about it, that’s angry about losing their jobs, kind of getting back on their feet,” Harris said.

So far this announcement hasn’t changed feelings of resentment from some coal miners. On Facebook one coal miner even said Obama’s plan gives “… the state money to remodel and cover up the poverty he created.”

A part of Obama’s proposed tax credits for the Appalachian region includes $25 million to help coal communities create economic development plans.

As of now, Harris doesn’t plan to stay in West Virginia after college. But he says an economic development plan that includes a diversified economy, might change his future.

“If it works out I would stay,” he said. “I mean if it has a better economy and it has what I’m going to school for I wouldn’t mind staying because you know it is my home and if they have a better economy by that time it would be a good thing to be able to stay and stay in my hometown.”

Betsy Taylor is a cultural anthropologist who’s worked for 30 years at Virginia Tech in Appalachian studies. She says she hopes that more economic development will invest in Appalachia’s vast cultural wealth.

“For this to work it’s really important that people in the community are able to help design what happens. And nurture the local culture, the local music. You’ve got to have local creativity involved. We need to reallyvalue what we’ve got.”

Another portion of the budget includes a $20 million investment into retraining laid off miners for other professions.

A similar program was created in 2012 called the Coal Mining National Emergency Grant. The grant provides up to $5,000 per participant for in demand jobs, such as Commercial Driver’s License or (CDL), Welding, Electrical Engineering, and more.

In West Virginia the latest count tallied 513 people that have enrolled in this training program and 321 have completed.

Funds are still available to miners that have lost their jobs through Workforce West Virginia.

Hear more on Inside Appalachia, February 8.

Credit Jessica Lilly
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West Virginia Public Broadcasting
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