Weatherization Department
The Friday Report Friday December 27,1996
FromWright Energy's
Weatherization Network Since 1984
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Updated 12/4/96
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Clinton Act Blocked Coal Plan
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Source: Associated Press
WASHINGTON - When President Clinton designated 1.7 million acres of Utah
wilderness as a national monument, he dashed plans to tap a huge reserve
of environment-friendly coal.
The White House says the president acted to preserve a beautiful, exotic
place, named Kaiparowits by the Paiute Indians. Critics see a connection
to Indonesia, which already mines such cleaner fuel.
Andalex Resources, a U.S. mining company owned by a British family, holds
leases on Kaiparowits and was nearly ready to break ground on a Utah mine
that would produce about 3 million tons of coal. It reversed
course with Clinton's announcement in September.
``Our position is that the monument designation makes the coal mine project
unfeasible,'' said David Shaver, project manager at Andalex.
The 62 billion tons of coal found beneath the area's red-rock cliffs burns
hot but emits far less polluting sulphur than most coal mined in the United
States. It's known as ``super-compliance'' coal because its
properties meet Clean Air Act standards. Similar coal is mined in Indonesia,
``The whole industry was expecting to move into Kaiparowits,'' says Lee
Allison, director of the state's geological survey.
Some of the coal was destined for Japan, which buys a lot of coal from Indonesia,
officials said.
A farm trade publication and some politically conservative talk shows have
raised questions in recent weeks about whether Clinton's decision might
benefit Indonesia and its Lippo Group, a conglomerate at the center of a
controversy over campaign contributions to the Democratic
Party.
Lippo's founder, billionaire Mochtar Riady, his family members and associates
have contributed heavily to Clinton and the Democrats.
Lippo has business interests related to coal: One of its subsidiaries was
involved in a now-dormant joint venture to run a coal-fueled power plant
in China.
The White House calls such speculation preposterous.
``The reason that the monument was created is because it's an
extraordinary place, filled with bird and plant life and natural wonders
that needed to be protected,'' said spokeswoman Mary Ellen Glynn. ``It had
nothing to do with Indonesian coal interests.''
Allison agreed that Clinton's decision has no effect on Indonesian coal
producers. ``Utah coal does not pose a threat to Indonesia,'' he said. ``If
they want to compete with Utah coal they can blow Utah out of the water.''
The cleaner-burning coal is also found in Colorado, Montana and Wyoming
as well as Colombia and South Africa. Utah and Indonesia coal is among the
world's cleanest, though.
Indonesia's coal production has nearly tripled to 41 million tons in the
past five years and is one of the lowest-cost producers in the world, Allison
said. Labor costs are low and much of the coal is extracted by surface strip
mining.
Still, Indonesia must compete with U.S. coal in world markets. Southern
Company, an Atlanta-based utility firm, buys it from both the United States
and Indonesia for a plant in Chile.
``The prices are very close,'' said David Putman, manager of fuel services.
But the 62 billion tons of coal in southern Utah's Kaiparowits Plateau
is still in the ground. Only about 11 billion tons _ worth about $1
trillion _ is considered recoverable, but it has never been mined.
There are no paved roads on the remote plateau, just miles and miles of
spectacular views. It would take millions of dollars to carve out the coal
and build roads for carting it.
Experts say Utah's coal supplies will run out in 25 years. Kaiparowits has
enough coal to keep Utah power plants burning for another 400 years.
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"Egotist: a person more interested in himself than in me."
Ambrose Bierce
(1842-1914) __________________
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