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Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

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Page 1: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

Energy…An Economic Asset to our Region and

the Challenge of EPA to the Coal Industry

Presented by :Mike Miller, KY River Area Development District

Page 2: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

History of Coal in Kentucky

Kentucky coal has been commercially mined for over two centuries.

The earliest known commercial coal production was 20 tons in 1790 in Lee County, KY – two years before the Commonwealth of Kentucky became a state.

Page 3: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

Coal Camps in the Region

Breathitt County : Barwick, Elkatawa, Evanston, Haddix, Whick, Wolfe Coal and Wolverine

Knott County: Hi Hat, Kodak, Mousie, Sassafras, and TipTop

Leslie County: Straight Creek, Thousand Sticks, Rockhouse, Stinnet, and Cutshin

Letcher County: Burdine, Dunham, Haymond, Hemphill, Jenkins, McRoberts, Millstone, and Seco

Perry County: Blue Diamond, Butterfly, Darfork, Glowmar, Hardburly, Krypton, Lothair, and Viper

Page 4: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District
Page 5: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

YEAR Production (tons) Employment

2008 1,696,994 275

2009 889,768 138

2010 953,143 202

2011 834,598 196

2012 290,423 62

2013 180,251 40

2014 564,817 96

Breathitt County

Page 6: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

YEAR Production (tons) Employment

2008 7,622,021 1,183

2009 5,265,170 893

2010 4,834,096 893

2011 4,807,164 896

2012 2,641,000 330

2013 1,902,183 270

2014 1,990,109 295

Knott County

Page 7: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

YEAR Production (tons) Employment

2008 4,639,303 769

2009 3,865,454 764

2010 3,684,544 751

2011 4,341,999 858

2012 3,089,060 653

2013 2,136,704 254

2014 1,403,285 307

Leslie County

Page 8: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

YEAR Production (tons) Employment

2008 5,894,542 1,204

2009 5,248,902 953

2010 4,222,300 843

2011 4,662,257 887

2012 2,999,009 615

2013 2,214,064 407

2014 1,632,697 266

Letcher County

Page 9: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

YEAR Production (tons) Employment

2008 17,171,786 2,156

2009 15,397,648 2,053

2010 14,010,623 2,088

2011 13,199,022 2,123

2012 9,112,211 1,530

2013 7,561,726 1,223

2014 7,475,878 1,097

Perry County

Page 10: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

Single County Coal Severance Funds

2008

Breathitt $1,020,867.51

Knott $3,584,755.09

Leslie $2,689,527.72

Letcher $2,926,765.99

Perry $2,619,518.20

2014

Breathitt $450,067.42

Knott $1,292,113.34

Leslie $917,852.34

Letcher $1,057,044.52

Perry $1,257,069.13

Page 11: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

There were 60 Coal Fired Electric Power Plants CLOSED from 2008 to 2014.

Eight of those 60 plants closed had a DIRECT impact on the coal production in these five Counties.

Page 12: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

• Total number of tons mined declined by 23,057,842 tons

• Direct Job Loss = 3,526

• Royalty to Mineral Owners @ $3.00 per ton = $71,873,526

• Gross Payroll Loss @ $75,000/year = $264,450,000

• Gross Sales Revenue Loss @ $65/ton = $1.5 Billion

Page 13: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

Post Mining Land Use

Some of the post mining land uses in the region include:• Regional Airport located in Perry County• Correctional Facility in Breathitt County• Veterans Center in Perry County• Sports Complex & ATV Training Center in Knott

County• ARH Regional Hospital in Perry County• Shopping Centers in Breathitt, Letcher and Perry

Counties• Housing Developments in Letcher and Perry

Counties• Regional Industrial Parks in Letcher and Perry

Counties

Page 14: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

Post Mining Land Use

Page 15: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District
Page 16: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District
Page 17: Energy…An Economic Asset to our Region and the Challenge of EPA to the Coal Industry Presented by : Mike Miller, KY River Area Development District

Michael MillerExecutive Director

Kentucky River Area Development District

917 Perry Park RDHazard, KY 41702

(606)[email protected]

Information obtained from www.energy.ky.gov,

www.kentuckycoal.com, and The Institute for Energy Research