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FOR IMMEDIATE RELEASE
May 22, 2001

RESOURCES ON FEDERAL LANDS PART OF SHORT-TERM SOLUTION

Washington -- "Increasing the production and use of coal, our nation’s most abundant, reliable, and affordable energy resource, is essential to tackling America's energy shortage," said a mining industry spokesman in testimony given today before the House Subcommittee on Energy and Mineral Resources.

Terry O'Connor, vice president of external affairs for St. Louis-based Arch Coal, testified on behalf of the National Mining Association, and explained how coal can be part of the short-term solution to America's energy shortage and asked Congress to take action to allow expansion of coal production on federal lands.

"As President Bush pointed out in his National Energy Policy report, there is a fundamental imbalance between supply and demand…that if allowed to continue will inevitably undermine our economy, our standard of living, and our national security," said O'Connor. "But, the effects of this crisis – a shortage of affordable energy – are being felt now. Domestic, affordable and increasingly clean coal, the fuel of choice for over 50% of the electricity generated in our nation today, must be part of the short-term solution."

O'Connor stressed the importance of expanding coal production on federal lands. "Nearly 40% of our coal production is from mines located on federal lands. Over one-third of the nation’s coal reserves are owned or controlled by the federal government, and forecasts show that over 90% of new production expected to come on line over the next 20 years will be from mines on federal lands," O'Connor said.

O'Connor urged Congress to work with the Administration to expand coal production on federal lands and suggested three specific courses of action:

• Enact legislation to resolve conflicts involving simultaneous development of coal bed methane and leased federal coal reserves in the Powder River Basin.
• Support the Administration's review of public lands withdrawals and lease stipulations, announced last week as part of the President’s energy policy, to include coal resources as well as oil and gas. In particular, the Administration needs to address changes needed in the Forest Service Roadless Area Conservation Rule.
• Support the Administration in its review of federal leasing policies – also announced last week – to include a review of the coal leasing process with the goal of taking the administrative actions necessary to accelerate the leasing process. Legislation is also required to reform federal coal leasing.

O'Connor concluded his testimony lauding the benefits of coal as an energy source. "Coal fired electricity is and will remain the most affordable and reliable electricity available," O'Connor said. "As the National Energy Plan so correctly stated: 'If rising U.S. electricity demand is to be met, then coal must play a significant role.'"

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-based power is less than one-half the cost of power from oil, and at current prices, coal power is about one-fifth the cost of power from natural gas. Modern technologies have made coal-based generation increasingly clean.