6. LOBBYING:

Industry dollars flow amid 'war on coal'

Published:

Last week, West Virginia Sen. Joe Manchin (D) met with Gov. Earl Ray Tomblin (D) and several business leaders in the state, including some from the Coal Association, to discuss winning what they call the Obama administration's war on coal.

The roundtable discussion at Walker Machinery in Belle, W.Va., just south of Charleston, was a chance for Manchin to prove his pro-coal credentials amid what could shape up to be a tough re-election campaign.

Participants called it a strategy session for battling the flurry of rules, proposals and enforcement actions coming from the Obama administration that they say are crippling coal mining.

"We just want the federal government to be our ally," Manchin said, "not our adversary."

Getting other politicians and bureaucrats to see things more like Manchin does has cost coal companies millions of dollars in lobbying expenditures -- $18.1 million to be exact in 2011, according to the Center for Responsive Politics.

The CRP, which keeps track of disclosure records, said lobbying related to coal mining was down from $18.3 million in 2010 but significantly higher when compared to the $14.9 million that companies and groups spent in 2009.

A closer look at the disclosure records provides a more nuanced picture of company spending.

Arch Coal Inc., for example, spent $1.5 million on lobbying last year, down from $1.9 million in 2010. The company has been involved in litigation against U.S. EPA and environmentalists over a large mountaintop-removal mining project in West Virginia.

Spending on lobbying for Peabody Investments Corp., a unit of mining giant Peabody Energy Corp., went up from roughly $4.7 million in 2010 to almost $5 million last year.

Alpha Natural Resources Inc. also spent more last year, by a significant margin, going from $608,000 in 2010 to more than $1 million. In June, Alpha bought Massey Energy Co., and with that, the troubled company's battles with safety regulators.

The Mine Safety and Health Administration has been cracking down on problem mines since the 2010 Upper Big Branch explosion, which killed 29 miners in West Virginia. Several investigations have blamed Massey for not doing enough to promote safety.

The National Mining Association, the chief lobby group protecting coal mining interests on Capitol Hill, reported a marked boost in lobbying expenses. The group, involved in everything affecting coal, including power plant regulations, spent $4.7 million last year, up from $2.9 million in 2010.

Like many mining companies, the NMA lobbied Congress and agencies dealing with coal-mine permit delays, EPA proposals dealing with plant emissions and H.R. 2018 to ensure state participation under the Clean Water Act.

NMA spokeswoman Carol Raulston said the flurry of activity following the GOP House takeover at the beginning of 2011 added to the lobbying workload, and full staffing added to expenses. Plus, the group is working on numerous noncoal outreach efforts, including the Minerals Make Life campaign to highlight mining's importance.

While the United Mine Workers of America is often at odds with mining companies when it comes to tougher safety standards, union officials want agencies like U.S. EPA to back off rules they say will cost jobs.

The group, whose leader, Cecil Roberts, caused a stir earlier this month for suggesting that EPA was doing to the coal industry what the U.S. military did to Osama bin Laden, spent $404,419 in lobbying last year, down slightly compared with 2010 (E&ENews PM, April 4).

While the lobbying spending numbers are mixed, the Center for Responsive Politics is reporting an unmistakable upward trend in coal-related donations to political candidates (E&E Daily, Oct. 13, 2011).

The industry, including affiliated individuals and political action committees, funneled more than $8 million to candidates during the 2010 election cycle, more than ever before. This time around, the dollar total is $4.8 million and counting.

Top spenders include Alliance Resource Partners LP, Alpha, Murray Energy Corp., CONSOL Energy Inc. and Peabody. Top recipients include Rep. David McKinley (R-W.Va.), House Speaker John Boehner (R-Ohio) and likely GOP presidential nominee Mitt Romney. Manchin, a rare Democrat who wins widespread support from mining interests, is also in CRP's top 10 for contributions from the industry.

Environmental groups funneled roughly $5 million to candidates during the 2010 election cycle, slightly less than during the 2008 campaign cycle, CRP reported. They have donated about $1 million so far this year, with the League of Conservation Voters being the most active. Democrats are the main beneficiaries of green dollars, while coal money tends to help Republicans more.

When it comes to lobbying, overall spending among environmental groups went down from $21 million in 2010 to about $16.7 million last year. But Earthjustice spent $888,933 last year, CRP said, more than double its 2010 number. The Sierra Club also boosted lobbying from $450,000 in 2010 to $520,000 in 2011.