National Mining Association

For Additional Information:
John Grasser (202) 463-2651
Karen Batra (202) 463-2651

FOR IMMEDIATE RELEASE
March 7, 2001

"OMINOUS CLOUDS ARE ON THE HORIZON" FOR AMERICA'S ENERGY SUPPLY VAST RESOURCES ON FEDERAL LANDS MUST BE UTILIZED, INDUSTRY SAYS

Washington -- The United States must better utilize its natural resources on federal lands to provide for our increasing energy needs, and can do so while simultaneously protecting the environment and the economies of these regions according to testimony given today before the House Resources Committee.

Terry O'Connor, Vice President, External Affairs for St. Louis-based Arch Coal, Inc., testified on behalf of the National Mining Association, and spoke in support of a balanced national energy policy that takes full advantage of all energy resources, including vast tracts of high-quality, low-sulfur coal located on federal lands in our western states.

"Domestic, affordable and increasingly clean coal provides over half of our nation's electricity supply and represents approximately 90-95 percent of our demonstrated fossil fuel reserves, with oil and natural gas making up the remainder," O'Connor said and added the following:

Nearly 40 percent of our coal production is from mines located on federal lands.
Over one-third of our nation's coal reserves are located on federal lands.
Department of Energy forecasts show that over 90 percent of new production expected over the next 20 years will be from mines on federal lands.

"However, current policies discourage or prevent the exploration, development and investments required to access these critical energy resources and develop a reliable energy delivery infrastructure," O'Connor said, and cited the Clinton Administration's Roadless Area Conservation Rule promulgated on January 12, 2001 as a prime example. "The implementation of this rule could sterilize over 40 percent of the coal production in Colorado and Utah," O'Connor warned.

"The Federal Coal leasing process must be reformed so that lease application are processed at a rate of more than one per year in order to allow production to keep up with our energy needs," O'Connor added.

O'Connor commended Committee Chairman James Hanson (R-UT) for conducting the hearing and concluded "this Congress has an opportunity to change current policy directions to ensure that these vast resources on federal lands can and will contribute toward the goal of energy self-sufficiency while, at the same time, ensuring that both the environmental and the economies of the regions are protected and advanced."

More than half of America’s electricity is generated from coal. Coal is our nation's most abundant energy resource, accounting for more than 90 percent of all fossil energy reserves and representing a secure supply for the next 250 years. On average, coal-fired power is less than
one-half the cost of oil, and at current prices, coal power is about one-fifth the cost of natural gas. Modern technologies have made coal-fired generation increasingly clean.