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FOR IMMEDIATE RELEASE
June 13, 2001

INCREASED USE OF COAL, URANIUM NEEDED TO MEET AMERICA'S ENERGY NEEDS

Washington -- "We must make changes in the federal tax laws to encourage the more efficient use of coal to provide reliable and affordable electric energy for America with reduced environmental impact," said Robert E. Murray, President and CEO of Murray Energy Corporation, in testimony given today before the House Ways and Means Subcommittee on Select Revenue Measures.

Murray testified on behalf of the National Mining Association, and called for tax credits to accelerate commercialization of clean coal technologies in power plants.

"Today, more than one-half of U.S. electricity is generated from abundant, low cost, domestic coal. Coal can play a greater role in meeting future demands, as it constitutes more than 90 percent of United States’ fossil fuel resources, enough to last more than 250 years at current consumption rates," Murray said.

Murray's testimony focused on changes in the Federal tax laws in three specific areas that could enhance energy production:

1. the use of investment and production tax credits to accelerate commercialization of clean coal technologies both in existing and new electric power generating facilities;
2. the elimination of the alternative minimum tax; and,
3. changes in the tax code needed to encourage domestic uranium production and processing.

"The development and commercialization of more efficient and lower emitting clean coal technologies is required to meet new electricity demands while continuing to improve the environment," Murray said, and he described two opportunities for implementing clean coal technologies into America's energy programs. "First, we must expand the use of newer, more advanced NOx and SO2 control technologies in existing plants through retrofits, and secondly, we need to move new advanced clean coal technologies that have been proven at the demonstration stage to, and through, placement in the commercial marketplace. The National Electricity and Environmental Technology Act (NEET) has been developed to meet this dual challenge," Murray said.

Murray's testimony also called for tax credits to encourage domestic uranium production and processing. "This will assure an adequate long-term supply of domestic uranium for the nation’s nuclear power program and will preclude any threat from foreign supply disruptions or price controls," Murray said.

Murray concluded his testimony lauding the benefits of coal as an energy source. "If rising electricity demand is to be met, then coal must play a significant part," Murray said. "Coal, is and must continue to be, one of the cornerstones of our nation’s energy strategy."