Greene officials warned to diversify economy
The remaining coal reserves in Greene County could keep miners working for as many as 50 more years, but the head of the Pennsylvania Coal Association warns against relying solely on coal to keep the county’s economy afloat. Greene County is the second-largest coal-producing county in the nation, trailing only a county in Wyoming in annual production, according to association president George Ellis.
He said Consol Energy and RAG American Coal Holdings Inc. have made significant capital investments in Greene County, and the amount of money spent means the companies have plans to remain in operation for decades, not years, to come.
The coal industry is heavily dependent on weather conditions, and with winter approaching, Ellis said an improving economy and an increased demand for coal could have a positive effect on the coal market and keep many Greene County miners busy for quite a while.
“The second generation of clean coal technology that is being developed, which takes care of multiple pollutants at once, will make Greene County coal much more competitive in the electricity generation market,” he said.
Ellis said coal has made a significant contribution to the Greene County tax base, and coal companies have fulfilled their obligations to the county through paying taxes and getting involved in community projects. However, just because coal has been a major player for so long, that fact alone should not preclude the county from attracting other businesses to the area, he added.
He said diversification is key to counties with a heavy reliance on coal to generate revenue, because the amount that can be mined from areas is not limitless.
“We feel that we have been good neighbors and we have made a significant contribution to the economy, but the reserves are finite,” Ellis said. “It is critical for local leaders to recognize this finite nature of coal and ensure that their business portfolio is diversified.”
He said the geologic conditions of Greene and Washington counties will enable them to be the most suitable in the state for longwall mining and will enable those mines to hold their competitive edge in the coal market. Other counties, including Somerset, Armstrong and Indiana, could benefit from an improved economy, as some smaller mines could become more productive, he said.
According to the association’s latest data, the industry created more than $5 billion in indirect benefits to the Pennsylvania economy in 1998 alone, and Ellis pointed to a Pennsylvania State University study that said for every job in a coal mine, an additional 10 jobs are created in the economy.
He said the state Legislature has been pressured from environmental groups and constituents about the harm of mining to economic development and a protected environment. Greene County, and the state as a whole, can have coal mining and a sound environment, and development should continue into the future, he said.
“Sixty percent of Pennsylvania’s electricity comes from coal, and if Pennsylvania residents are going to have a stable, affordable supply of electricity, the commonwealth has to continue its reliance on coal,” Ellis said. “That bodes well for the industry’s future and the prospects for a good economy in the commonwealth.”