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March 12, 2010

Willing to pay — 03/13/10

Coal companies backing bill that will increase their fees

Anonymous The Daily Independent Fri Mar 12, 2010, 05:06 PM EST

In a strategy that many Kentuckians no doubt would find surprising, coal companies are supporting an increase in the fees they must pay when they apply for mining permits.

There is a reason for that support: Coal companies hope the additional $800,000 in fees the increase will generate will enable the Kentucky Division on Mine Permits to employ the additional staff to speed up the process of getting a mining permit approved.

However, environmental groups like the Kentucky Resource Council fear that expediting the permit process will result in so many more mines that it will overwhelm state inspectors responsible for enforcing mine safety laws and regulations. Of course, the best way to prevent that from happening is to find the money to hire enough qualified mine inspectors to do the critical task of fully enforcing state mine safety laws.

Currently, coal companies pay a fee of $375 for the mine permit applications. House Bill 283 would set new fees ranging from $750 to $2,500 for each application, depending on whether the companies are looking to expand a mining operation or open a new mine.

The bill stipulates that revenue from the higher fees be used to hire additional staff to speed up the permitting process. Larry Arnett, deputy commissioner in the Kentucky Department of Natural Resources, said the coal industry recognized the need to bolster staffing so that permit applications could be processed faster.

HB 283 already has been approved by the House by a lopsides 80-15 vote, and it currently is scheduled to be voted on by the full Senate on Monday. Its passage is virtually a certainty.

Anyone seeking a permit from state government — including coal companies — should not have to wait for months for the state to act on their applications. But without adequate staff that is what is happening.

We consider the concerns of environmentalists another issue that may require action if and when it occurs. If the expedited permits result in so many more mines in the state that inspectors can not do their jobs, then hire more inspectors. It is unfair to hold up a coal company’s legitimate right to mine its coal for many months simply because the Kentucky Division on Mine Permits is understaffed — particularly when coal companies are willing to pay more to generate the money to enable the state to hire more people.

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Coal companies backing bill that will increase their fees

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