Arch Coal

Coal Companies Talking Out Both Sides Of Their Mouths When It Comes To Climate Change

Peabody Energy, the largest coal company in the U.S., deployed one of the lawyers on its payroll to Congress last week to argue against the Environmental Protection Agency’s new carbon rule.

This is so common that it normally wouldn’t rate a mention, but in this case it happened to be Obama’s former Harvard law professor Laurence Tribe, who now works for Peabody and is critical of the EPA’s Clean Power Plan, saying it is tantamount to “Burning the Constitution.”

But then, even that ranks pretty low in terms of newsworthiness given that, as a new analysis by Greenwire E&E reporters Corbin Hiar and Manuel Quiñones puts it, “The highest profile practitioner of targeted climate messaging is Peabody Energy Corp.”


The Greenwire analysis shows that many coal companies are, in fact, frequently talking out both sides of their mouths when it comes to climate change, and uses Peabody in particular as a case study of the legal and shareholder risks involved.

Coal Lobbyist Jeff Holmstead Disqualified by Federal Judge in Ameren Pollution Lawsuit

Originally published on PolluterWatch

Jeff Holmstead, perhaps the nation's prime example of a revolving door lobbyist, was dismissed by a federal judge as an expert witness in a lawsuit brought by the U.S. Environmental Protection Agency against Ameren Missouri, a coal burning utility.

In an ongoing case, the EPA has charged Ameren with violating the Clean Air Act by not installing appropriate pollution controls at one of its coal plants. The Sierra Club has since sued Ameren, “alleging 7,880 air quality violations at three coal-burning power plants since 2009,” according to the St. Louis Post-Dispatch.

Judge Rodney Sippel granted U.S. Justice Department's request to remove Holmstead as a witness, confirming that the lobbyist's history at U.S. EPA posed “multiple conflicts of interest.” Here's the judge's motion to dismiss Jeffrey Holmstead, citing Holmstead's use of his EPA experience to undermine EPA's pollution enforcement actions (emphases added):

Mr. Holmstead’s legal opinions are irrelevant, speculative, and inadmissible.” […] “By his own description, Mr. Holmstead’s testimony relies on his recollection of EPA “internal meetings” that he says are relevant to the issues to be tried in this action. Such internal communications are privileged and confidential and Mr. Holmstead may not rely on his recollection of them to testify against EPA. Moreover, Mr. Holmstead received other privileged information concerning the issues about which he now seeks to testify on behalf of Ameren, and participated in power-plants enforcement cases related to this one while at EPA. Before he left EPA, he even personally provided a declaration for EPA that is at issue in this and other related power-plants enforcement cases asserting privilege claims on behalf of EPA over documents that are relevant to the opinions he now seeks to offer. Yet he now seeks to change sides and testify against EPA. Moreover, he was assisted in the preparation of his report by another former EPA attorney who was involved in the early stages of the investigation that ultimately led to the filing of this case. For the reasons discussed in the accompanying Memorandum, Mr. Holmstead should not be allowed to testify in this matter due to his multiple conflicts of interest.

This is a notable blow to Mr. Holmstead's credibility, who touts his time at EPA to obscure his lobbying to protect polluters from public accountability.

Rejection of Colorado Coal Mine on Global Warming Grounds Could Be Game-Changer

A U.S. District Court judge ruled on June 27 that the Bureau of Land Management (BLM) and Forest Service both wrongly approved expansion of the West Elk coal mine in Somerset, Colo., because they failed to take into account the economic impacts greenhouse gas emissions from the mining would have.
 
The federal agencies said it was impossible to quantify such impacts, but the court pointed out a tool is available to quantify the effects of emissions and the agencies chose to ignore it. The tool, the “social cost of carbon protocol,” puts a price on the damanges from drought, flood, storm, fire and disease caused by global warming. 
 
“It is arbitrary to offer detailed projections of a project's upside while omitting a feasible projection of the project's costs,” U.S. District Judge R. Brooke Jackson ruled.
 
Arch Coal, Inc. planned to bulldoze vegetation to build about six miles of roads and drill up to 48 exploratory holes in the scenic backcountry of western Colorado's North Fork Valley to vent methane and determine whether a coal seam actually lies beneath the area.
 
The federal agencies' final report on the West Elk Mine expansion listed the economic benefits of modifying public lands leases to allow the project, but failed to quantify the social or economic costs of carbon emissions from the project.  
 
The ruling could be game-changing because if the judge's reasoning holds up in other challenges to federal agency decisions, it could change the calculus on dozens of other major projects, such as the proposed Keystone XL tar sands pipeline.

DeSmog Responds to Misleading Allegations From Edelman and Alliance For Northwest Jobs & Exports

The Alliance for Northwest Jobs & Exports issued a misleading statement to the Seattle Times in response to last week's guest post by contributor Mike Stark: Why Are Coal Industry PR Pros Laughing About Climate Change in Private Talks on Export Terminals?

The Alliance statement accused Mr. Stark of “eavesdropping” on a conversation between an Edelman PR vice president and Arch Coal executives in a hotel lobby. The Edelman/Alliance accusation lacks merit, as we demonstrate below. 

In these audio files, Mr. Stark can be heard introducing himself and asking questions to Alliance spokesperson and Edelman vice president, Lauri Hennessey [mp3].


A short time later, Mr. Stark engages with Arch Coal senior vice president Matthew Ferguson [mp3], immediately prior to the subsequent conversation which he reported on last week at DeSmogBlog.



The audio reveals Mr. Ferguson agreeing to speak with Mr. Stark just prior to turning to speak with Ms. Hennessey.

In sum, both Ms. Hennessey and Mr. Ferguson were well aware that Mr. Stark was a reporter, and neither party did anything to suggest that the conversation Mr. Stark recorded was private, off the record or otherwise secret.

In response to the Alliance's allegations, DeSmogBlog issued the following statement to the Seattle Times and other media outlets that reported on this important story: 

Utah's Students Forced to Push Fossil Fuel Propaganda for Earth Day

Last week, Huffington Post reported a story about the Utah Division of Oil, Gas & Mining’s ridiculous Earth Day Poster Contest. You know, the one where elementary school students were invited to submit posters around the theme, “Where Would WE Be Without Oil, Gas & Mining?

Seeing as this contest was created by a state agency, every public school in Utah was given this flyer (PDF) with instructions for how to participate.

Fortunately, it’s up to every school to decide whether to participate, and at least some Utahns are outraged at the idea. Colby Poulson, a parent in Farmington, called the contest “propaganda” in a letter to the Salt Lake City Tribune

Why is the state backing an “Earth Day” contest that celebrates fossil fuels, while completely ignoring the adverse effects that their use and extraction can too often have on our air quality, water quality, public lands and the other organisms we share the world with? Shouldn’t Earth Day be about championing things that can help reverse the negative impact of our dependence on fossil fuels?

Frankly, I’m disgusted that the state is backing propaganda like this in our schools.

Thousands of Miners' Benefits In Jeopardy As Patriot Coal Claims Bankruptcy

On January 29, Patriot Coal Co. will begin Chapter 11 bankruptcy hearings in St. Louis, MO claiming that it's become a “victim of the markets” and can no longer pay its debts. These “debts” include millions of dollars of retiree health benefits. If the company goes under, the benefits may go along with it.

That's why the United Mine Workers of America (UMWA) is suing. Filed back in October, the lawsuit cites the Employee Retirement and Income Securities Act, which states that coal companies must provide health insurance for retired miners.

However, the UMWA isn't suing Patriot Coal.

Most of the 10,000 workers in the class action lawsuit have never actually worked for Patriot. They actually put in their time (many with upwards of 30 years of service) with Peabody Energy Corp. and Arch Coal Inc. The UMWA contends that Peabody and Arch sold off the benefits to a company that was doomed to fail, therefore getting rid of the debt and leaving thousands without health insurance.

Arch Coal Mine Will Destroy Colorado Wilderness in 'Roadless' Forest

In a devastating blow to the Colorado wilderness, the U.S. Forest Service has agreed to allow Arch Coal to expand their West Elk mine into 6.5 miles of roadless forest in Colorado.  This means that as soon as Arch Coal gets the “ok,” they will begin leveling a formerly pristine part of America’s beautiful wilderness.

The ruling of the Forest Service came after an appeal by conservation groups, led by EarthJustice, who hoped that the agency would have the decency to prevent the dirty energy industry from destroying a vital part of the environment.

From EarthJustice:

The appeal filed in September 2012 with the Forest Service’s Rocky Mountain Regional Forester in Denver, sought to overturn an August decision affirming Arch Coal’s West Elk mine expansion into roadless lands that provide habitat for lynx, black bear, elk and goshawk. The conservation groups argued that the mine expansion violates laws meant to protect wildlife, air quality, and forest lands, as well as the Colorado Roadless Rule.

Smokey Bear has turned his back on Colorado’s natural, roadless lands,” said Ted Zukoski, staff attorney for Earthjustice, the public interest environmental law firm representing the groups. “Instead, the Forest Service has literally paved the way for a coal mega-corporation to destroy real bear habitat. The Sunset Roadless Area is a beautiful forest of aspen and giant spruce, beaver lodges and meadows, a home for elk and hawks. This is a place the Forest Service should be protecting for all Coloradoans, not sacrificing to appease special interests.”

In February of this year, EarthJustice and the environmental groups they represent won a legal battle against the Forest Service over the expansion of the mine.  During this fight, the Forest Service was unable to provide an adequate explanation of what they would do to prevent the destruction of the habitats of endangered bald eagles and lynx, as well as what measures would be put in place to prevent landslides.

B.C. Protest This Saturday to Stop Warren Buffett's BNSF Coal Trains

Warren Buffett, the third wealthiest man on the planet (net worth: $44 billion), often referred to as the “Oracle of Omaha,” is the target of a May 5 action called for by Stop Coal B.C. Well, not Buffett directly, but a rail company he owns through his massive holding company, Berkshire Hathaway: Burlington Northern Santa Fe (BNSF) Railway.

BNSF Railway is the second largest freight rail company in the United States and the exclusive carrier of thermal coal from coal basins in the northwestern U.S. to docks in British Columbia, where the dirty coal is exported to the global market, primarily to Asia.

The action calls for activists to blockade BNSF's four coal-loaded freight trains from reaching their final destination for the day and in the process, risk arrest. It is part of 350.org's broader “Connect the Dots” event taking place on Saturday, with actions planned throughout the world.

The Stop Coal B.C. call to action reads,

Spruce Mine Mountaintop Removal Coal Permit Restored

In late March, a federal court ruled to open the Spruce No. 1 mine in Logan County, WV, to mountaintop removal coal mining. The EPA had originally vetoed the permit back in January of 2011, explaining that the destructive practices of mountaintop removal would endanger communities' health and access to clean water.

The permit authorizes the largest single mountaintop removal site in West Virginia's history.

Federal Judge Amy Berman Jackson ruled that the EPA overreached when it tried to revoke the permit using the laws of the Clean Water Act. Berman declared,

It posits a scenario involving the automatic self-destruction of a written permit issued by an entirely separate federal agency after years of study and consideration. Not only is this nonrevocation-revocation logistically complicated, but the possibility that it could happen would leave permittees in the untenable position of being unable to rely upon the sole statutory touchstone for measuring their Clean Water Act compliance: the permit.”

ACCCE Doesn't Want To Pony Up For Life-Saving, Job-Creating New Emissions Standards

The American Coalition for Clean Coal Electricity (ACCCE) is apparently trying to show the EPA its empty pockets as a new set of standards capping mercury, arsenic, acid gases, and other toxic chemicals is about to go forward. Although the new laws will save thousands of lives, the coal companies are complaining that this new ruling “is the most expensive rule the EPA has ever written for coal-fueled power plants.”

However, when taking a closer look at the collective bank accounts of the 22 members of ACCCE (including some of the largest coal companies like Arch Coal and Peabody), their balance of cash is near $18 billion.

Yet, all coal companies under the new emissions reductions (including ones not associated with ACCCE) would pay a combined total of $11 billion for the new technology. Perhaps if the companies stopped spending $35 million on delusional TV ads, they could instead put it to better use for advancements that would alleviate the suffering of many and create jobs.

Estimates say that 1.5 million jobs could be created out of these improvements, but hey, $11 billion also makes a pretty awesome money pile to jump into and roll around in.

Read the original article on Grist.org.

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