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INTERNATIONAL COAL NEWS

Environmental issues lead to Consol Fola idling

CONSOL Energy will idle its Fola operations in West Virginia as of February 2010, a move which wi...

Donna Schmidt

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88ֳ 104 workers at the Little Eagle Coal Company and approximately 378 at the Fola Coal Company received notice under the Worker Adjustment and Retraining Notification Act – a federally mandated communication – that the mines near Bickmore will begin lay-offs at 12.01am local time February 7, 2010, over a 14-day period.

The producer said an appeal of mine permits by activist group the Ohio Valley Environmental Coalition could be blamed for the idling.

“Subsequent to that appeal, Judge Robert Chambers of the United States District Court for the Southern District of West Virginia, Huntington Division, recently issued an order suspending Fola Coal Company's Clean Water Act Section 404 permit for the Ike Fork portions of Fola operations effective January 23, 2009,” Consol said.

“Without this permit, neither Fola Coal Company nor Little Eagle Coal Company can satisfy the required specifications of its coal sales contracts.”

The two operations produced just under 2 million tons of coal in 2007. Portfolio-wide, Consol operations produced 65Mt that same year.

"It is unfortunate that, at a time when reliable and affordable energy is so desperately needed to reinvigorate our economy, that the nation's energy industries are coming under repeated assault from nuisance lawsuits and appeals of environmental regulations," Consol executive vice-president and chief operating officer Nicholas DeIuliis said.

"It is Consol Energy's policy to operate our coal and gas assets safely and within the framework of the laws regulating our industry, but we oppose any efforts to use them to unnecessarily impede our ability to sustain our operations.”

DeIuliis added that, as nearly 500 employees would be receiving pink slips, the legal issues would impact the quality of life for the mines’ workers, their families and the many indirect beneficiaries of the industry.

While a Consol spokesperson did not return an ILN request for information by press time, it is not known if the workforce will be offered positions in other operations. However, DeIuliis warned the long-term economic viability of the Fola operations remained uncertain because of adverse market conditions.

"It is challenging enough to operate our coal and gas assets in the current economic downturn without having to contend with a constant stream of activism in rehashing and reinterpreting permit applications that have already been approved or in the inequitable oversight of our operations," he noted.

"Customers will grow reluctant to deal with energy producers they perceive are unable to guarantee a reliable supply due to regulatory uncertainty. It inhibits the ability to remain competitive."

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