U.S. Senate Field Hearing and High Sulfur Coal Export Conference: Session 3 - High Sulfur Coal Exports

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Proceedings of the United States Senate Field Hearing and High Sulfur Coal Export Conference held June 8–9, 1981, at Southern Illinois University Carbondale. One of the central concerns confronting the hearing was “Factors Affecting the International Utilization of High Sulfur Coal.” More specifically, the committee addressed itself to “developing international markets and marketing mechanisms for America’s coal, evaluating the domestic potential for American coal production and exports, and Illinois coal’s potential as an emergency fuel in the event of an international energy shortfall.” Coal experts from American industry, labor officials, state and national government leaders, and dignitaries from Europe and the Far East gathered to discuss this important global issue. This program is on the topic of “High Sulfur Coal Exports,” one of a several items addressed at conference. Panel discussions were moderated by United States Senator Charles Percy, United States Representative Paul Simon, and John Castle, Director of the Illinois Department of Commerce and Community Affairs.

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We are at the SIU Carbondale Student Center where we are caring subcommittee hearings on energy nuclear proliferation governor and processes. The hearing subject is the exploitation of high-sulfur coal. We are about ready to begin the third session of the morning, which is slated to deal with the topic of high-sulfur coal exports will be hearing testimony from the president of the national coal Association call baggy. I'm from John banovetz, the president-elect of the Illinois United Mine Workers of America. Also testimony will be coming from representatives of several companies. They'll be addressing the subcommittee including speakers from Freeman United from Peabody Coal Company from Old Ben from Amex from Ziegler consolidation and art minerals. The dependability of suppliers of Illinois coal is expected to be a part of the issue involved in a session.Will be making a statement on behalf of all coal producers. He is been allowed a few extra minutes at the do that and this is the first time I have ever placed a limitation of 1 minute on any presidents much less presidents of major coal companies, but I think you can appreciate if we are to complete our conference today. We will have to be very tight in time and I certainly want to allow enough time for questions as well that the major statement on behalf of coal producers will be given by my friends to Cara BAGI now present Chief Executive Officer of the national coal Association.My name is Carl baggy. I am present of a national coal association association of coal producers sales companies and Transporters as well as other companies and organizations with an interest in the coal industry. I hope my statement and chief will be putting the record. I'll keep it as brief as possible Senator. Thank you very much. The statement really makes to basically two essential points Senator it treats with the outlook for us Kohl's in the World Market in the existing constraints including inadequate Park capacity, which might prevent our country from taking full advantage of a growing coal Market worldwide and secondly the paper attempts to deal and articulate the principal actions which way the coal industry considered.Essential and appropriate to improve our ports in a deep in our Harbors. Let me first if the point out Senator the other page three of the above the formal statement I make the following points that the United States is in a unique position to take advantage of a market that I described in the first two pages and I think markets that have been identified for you here this morning by our foreign customers first a coal Reserve Base large enough to support substantial increases and domestic coal used as well as exports without substantially affecting the price of coal. Secondly unestablished highly competitive industry large enough to ensure the continued availability of code for long-term large quantity requirements thirdly a potential for relative price stability depending upon government policies as discussed later in the formal statement and finally long-term National political stability. This is what we have going for us and co-producers especially here in the Illinois Basin have a further advantage of one of the best natural trance.Station systems in the world the Mississippi River, but this is meaningless unless we get to the issue of dredging the the Lower Mississippi Basin than the I'd like to if I can't take what moments of time I have to discuss with you the question of Greater Seaport and Coastal Harbor capacities, which are required to meet overseas Market demands for you as coli begin that discussion at page for the formal statement to ensure that the US position in the world coal Marketplace become fully established and well secured in the next few years and over the last two decades of the century those involving the US coal export delivery system must act and act quickly to upgrade and expand cold chords by the use of brown storage coupled with modern bulk commodity coal handling equipment and adequate cold peerspace for ocean Colliers at existing a new code ports on the East Golf and west coast and also on the great lakes and we can't ignore the Great Lakes were talking about the of the Illinois coal Basin either.Sometimes that the fourth great Coast we have is sometimes ignored already. There are several projects underway to provide such improvements at seaports in Pennsylvania and Maryland, Virginia, North Carolina, South Carolina, Georgia and Alabama coal producers in the midwest will benefit from the improvements now underway in the New Orleans area and I'd like to spend a few moments of biking talked about the need for Expediting that kind of work to make this vast Port available for Midwestern Cole private. Enterprise has demonstrated that it can and will furnish landside improvements needed to provide additional modern Copart capabilities for the US coal exports. In fact, the interagency task force on coal exports found one of the principal findings was of the private sector did in fact respond to this explosion in the coal export Market, which didn't really occur until the last two quarters of 1979 and we can stay here publicly that we will have by the end of 1983 theWe believe the private sector is already committed the funds to make available. Facilities that by the end of 1983 can handle up to another hundred and fifty million tons of coal that we can dump. It appears. The private sector has done this but we are looking to now is for the government to get on with the job of dredging these parts so we can accommodate and have the economies of scale because as many of our friends this morning pointed out we are not competitive in some markets in the difference between the large super Colliers 250,000 deadweight tonnage ships that we must accommodate through dredging an expedited drudge will make us competitive in those markets as well. The case for dredging was made very well by the interagency coal-export task force report. It made the point that the u.s. Is in a position to capture a major share of a growing World coal Market. In fact some 200 million tonnes. We think by the year 2000 can be our share of the World, Market.The cost is a key factor. The delivery price of US Gold in Europe can be reduced by $6 a tonne 10% of the current price by capturing the economies of scale and transportation dredging Seaport in coastal Harbor channels to Greater depths to allow a hundred thousand to a hundred and fifty thousand and higher deadweight on the super Colliers to call it u.s. Code for its would be a major step toward achieving such economies of scale for US coal and Export markets. Obviously, the traditional methods of full financing of these improvements and I mentioned here in page six under the costs were talking about the ice report mentions that the dredge only three ports Hampton Roads mobile and New Orleans to 55 feet would cost in excess of 1.5 billion dollars the same report mentions a cost of improvements New York would be another hundred forty million on the Baltimore 278 million other ports are equally as deserving of moneys for needed port and harbor improvements the traditional methods of Fulton answering of these arms.General treasury funds in RV or an adequate in view of the total amounts needed in a relatively short. Of time in recognition of this and a recognition of the importance of making time. We improve the National Coffee Association board of directors is adopted the position that these improvements should be funded at least in part by port fees equitably applied on a tonnage bases on all commercial traffic going to Port briefly. We support proposals which first authorized a dredging of ports and harbors to depth determined by the core to be economically practical second to authorize individual portes De La Via Port fee to fund at least in part the cost of dredging the port to those authorized Epps at least port fees. We Believe should be living in a port by Port bases. According to Broad guidelines set by the Congress designed to give an individual Port some flexibility to meet the requirements of its own traffic patterns, but the sign to ensure that these fees are fair and Equitable to allport users and finally at theMurphy should be levied on the tonnage bases on all commercial traffic in the port weather for export import or for Intracoastal traffic and we make this place under that Congress get on with the action because obviously the system isn't working today. We had hearings here before Senator Mathias. I just a month ago and Baltimore. They take a 19 years to try to dredge the Port of Baltimore v 55ft as way in Washington go to the go to the various beaches in Delaware and cross the Bay Bridge there still like last week. I just kind of something like twenty three ships waiting to get in the Port of Baltimore station 19 years the litigation to finally come to a culmination where the core is finally able to do something about it. The system Senator I submit is not working Congress has to look at this very quickly and provide some fast tracking mechanism by which we can get on with the business and we and the coal industry willing to share in the cost for users charges to get the job done. Thank you very much. Thank you.You very much your appearance at that Baltimore hearing that hearing for the benefit of all of our guests today. Where has this hearing is under the chairmanship of the energy subcommittee of the government Affairs committee that hearing is the first hearing I think we've ever authorized on coal for the Foreign Relations Committee. We're getting down to the nitty-gritty but that hearing was chaired by Senator Mathias who is taken for the committee the chairmanship of our International economic Affairs subcommittee. He has a representative right here with us today and he's going to put his power for Prestige and work that he's done and Appropriations Committee through the years to work now and seeing that we break these bottlenecks in the Foreign Relations Committee going to be very deeply involved and seeing that we move this along that testimony verse help a great deal. My next witness John at banovac at Fresno left of the Illinois United Mine Workers of America a man who represents threeNations of coal miners are representing 21,000 members here in Illinois, and I certainly if we're going to increase our exports is going to be done with the help cooperation fullback in support of working men and women of Illinois, John and encouraging to all of you assembled here particularly prospective customers Avail annoy, and I'll annoy based high-sulfur coal in 1980 LSU ranked 5th in the total coal production among the coal producing states in the United States and that same here over 62 and a half million tons of coal is produced in, Illinois.35 million tons was produced in underground mines and some 22 and 1/2 million tons being produced at various surface mines throughout the state incidentally this Illinois coal production in 1980 was the highest level of production that has been achieved in Illinois since 1972 and represented significant increase over the production in the three previous years prior to the expiration of the umw bituminous coal operators Association contract this March coal production in Illinois averaged over five and a half million times for the first three months of 1981.I am happy to be here at this time to discuss these matters with you for a number of reasons first. Where are please giving it softing in the demand for high-sulfur coal by Electric utilities in Illinois and elsewhere that buyers are looking to Oracle to create a potential market for it abroad. There by taking up some of the slack caused by the domestic downturn secondly on Saturday our membership throughout the United States approved overwhelmingly, the New York wbco a contract which will cover the operation of our labor in Illinois and throughout the United States for the next 40 months or negotiators. Never left the main table in Washington and their efforts to achieve this contract are union leaders from around the country worked hard with those negotiators trying to them opinions of the rank-and-file regarding the contract provisions and in the most democratic fashion of any labor organization in the United States, Over 80,000 of our members voted in ratifying this negotiated contract. We are pleased to be back to work today and operating under a fair and Equitable labor contract which will govern our work until October 1984 news accounts characterize our contract strike position of no contract. No work as a tradition among the umw it is more than a tradition for us. We feel very strongly that the men and women we represent have a right to a labor contract with Seth Force the terms under which they will work in what is still America's most dangerous industrial occupation. Workers have that right under the Constitution and laws of the United States to organize and to bargain collectively. We cherish that right and will always operate to protect it. You may ask why frankly, I think whether or not as potential customers for Illinois and Illinois bass Cole. Can depend on the company's with which we organize to keep their supply contract commitments to you over a long-term? It is my view and I State this quite emphatically that are skilled. Umw members will pray for him consistent with our labor contracts in her manner that will assure your cold demands in the future are met I make this statement based on recent production performance in a coal industry that I referred to a minute ago. I make this statement based on productivity up turn on a per worker basis that we have seen in 79 and 80 and I make this statement based on a significant downturn since 1978 and days lost due to work stoppages in the Illinois Coal Field. moreover and more importantly the coal companies largest Consumers Electric utilities Have always had during these contact strikes adequate supplies of cold to meet consumers demand. And this year was no exception. All you as utility stockpile data complied over the past few weeks by the US Department of energy in indicates would like to point to a recent coal sales agreement that demonstrates the faith, which at least one foreign coal producer has in umw, Illinois coal recently. The nip on coke on Steel company of Japan signed a short-term contract 465000 ton of soft coking coal. What the old Ben Coal Company the cold be mined at 2 of Old Ben Franklin County mines and will be shipped by Rail and by barge to the Aryan. The mines producing the coal or umw mines and more significantly the contract was signed during our recent contract negotiations when the mines involved were not producing cold. We are pleased to see that demonstration of faith in umw produce cold and look forward to continue a record of performance as a cold expert Market expands in future Years. Thank you, sir. Thank you very much indeed for Freeman's United coal mining company is mr. Freeman has a total production of 7.4 million terms in 1979 employed at 2993 workers. And comment on the high sulfur coal level of the high sulfur coal is found in Ohio and other places all concentrate my comments to Illinois Basin which includes Illinois, Indiana and western parts of Kentucky because these girls compete with each other. So I'll confident with in this cold feel we have over two hundred fifteen billion tons of coal reserves and it is estimated over 90 billion tons of gold could be mine economically today considering your mining only a hundred and forty million times a call if you could expand the production by 10:40 and still will have no pinch as for the result results constrain is concerned. That is one positive aspect of this Goldfield which is not recognized in the international World second. Is that the Illinois called because it seemed tecniscan remind at a lower cost than the Appalachian calls and in his history will show that Midwestern call have been sold anywhere from 20 to 25% blow the Appalachian coal prices. We expect that as the Eastern coalfields the loss of record. The man goes up and the easily. My number 2 doesn't mind out the cost of production for replacing call will escalate and a much faster rate than the midwestern call and the Gap will become even bigger as a time goes in addition to the reserves and low-cost the mining. We also have very good transportation system. But the main reason why we are having problem as to the international market is because the Illinois Basin call is not recognizing International work cycling is equality constrains, Illinois. Basin called will continue to be used in the international market, but the software problem will continue to curtail the growth of the Scorpion. Thank you. I will incorporate in the record the full introduction for each of our distinguished guests going back to the first guests and will only summarize our next gas canister Wayne the Ewing again as a laborer now present of the Illinois division of Peabody Coal Company than 79 produce 64.4 million tons of call Peabody employees 14,000 co-workers 5684 of them in Illinois. Steven Holcomb. The is the largest coal producer in the country producing some 60 million tonnes the last year from attend state area here in the state of Illinois. We produced about approximately 11 million tons of coal last year then here in the state of Illinois we have here in the state approximately 3 billion tons of Reserves at we have under control we have about a bit in about half of These reserves are in the Belleville area in the southwestern part of the state part of the state. The big advantage of these reserves in the southwestern part of the state is that we have the Kaskaskia River that comes up to the middle to the middle of these reserves. Also, we have four major railroads that criss-crosses Reserve which gives us an adequate Transportation facility at end of movie this production to the ports in for shipment. Currently we have about a capacity with installed capacity of an approximately 10% that we could now devote what we have today to the export Market we have on the drawing boards Minds that could be bought on in a fairly quick basis and we would projected within the next by the end of this decade that we could double our production here in the state of Illinois then thank you very much for the opportunity here this morning. Thank you, very kindly and stealing old Ben Coal Company. We were represented by mr. Williams total tonnage mine + 79 is 10 million company has 3,300 employees. I just murdered Illinois coal industry is poised to provide reliable export supplies. Illinois reserves are held by strong Diversified corporations with the capability of providing capital resources for the long-term and the newest entrance into the industry will add even more strength to the development of these resources. The transportation options available to Illinois coal producers are second to none in the country and excellent railroad network is in place providing Goodall real access to the South to the port of New Orleans and north of the Great Lakes and the st. Lawrence Seaway Shore Trail Halls from the coalfields to River terminals on both the Ohio and the Mississippi River should provide healthy competition between Transportation modes. We sincerely believe that private industry is the proper way to handle the development of us coal exports. The state's coal resources productive capacity Capital requirements for a strong are very sound what is needed is our own initiative to call of 8 and emerging-market overseas. If problems are encountered we would expect a communication between industry and government so that a concerted effort can be made to remove any procedural hurdles. Thank you very much indeed. I next to a witness. Mr. Dick Miller Miller Marine president of Marine Corps sales 3.8 million tons mine done with 1464 people. Thank you. Senator said who is the president of Zeigler Coal Company to parent companies? That's correct on the attorney just you talked about where those of Ziegler Co company rather than Marine Coal Sales. My colleagues have already indicated the many strengths and benefits of Illinois coal. So I won't repeat them. I would say that the coal industry has always welcomed and recognized the challenge and we recognized a need for innovation in marketing Illinois coal for export last evening. You indicated that you wanted to know of the problems in marketing Illinois coal. And these are the problems that I see in the short-term and the midterm for marketing these calls first as we've heard the sulfur content is high without flue gas desulfurization systems on new generating units 3% sulfur coal is not acceptable as a fuel in the power industry in Europe or in most of Asia. Secondly, and I think it's important to recognize that Illinois coal is basically a high volatile coal. And although the cement industry in Europe can use higher sulfur Kohl's it almost universally specifies volatile matter content between 20 and 30% The reason I am told is because the cement industry their uses indirect firing methodology, which means the cold is first pulverized before storage and it is also preheated prior to firing the higher volatile Kohl's present pre ignition problems and explosion potential and therefore in almost every some plan in Europe. They require lower volatile Kohl's than Illinois Basin coils are I think the third Factor affecting the export of Illinois cold is the relatively low btu content of most of the coal in, Illinois. Buyers of energy will purchase on a delivered unit energy cost basis many calls and other parts of the United States and in other parts of the world contain 10 to 20% more BTUs per pound. They are there for more economic on a higher delivered price per ton cost because the higher heating value of the coal results in lower unit energy cost in summary. I think we remain optimistic and are dedicated to the expansion of Illinois coal exports, but the task will not be an easy one. Thank you very much against Riley. Alright, thank thank you next witness sister Allen Coke consolidated coal company, which is owned by what kind of cool had the 13.6 million tons of coal produced in 1979 4800 people can largest co-producer. We produced 8.6 million tons in the state in 1980 and we have 1.8 billion tons of reserves in the Illinois Basin. So we're very interested in the remaining in Salem, Illinois Basin call. I would just like to make about three points from my testimony. We are developing that's to say Conoco in association with Stone & Webster promising technology for fluidized bed combustion, and we're very excited about this and we hope to go straight from lab tests to a commercial size unit. 1983 that removes about 90% of the cell phone from the cold and I think this and other processes of that type but could make a great contribution to the development of the market for higher self a call in the short time. I think our challenges demonstrated this morning since most of the specifications which I find visit is presented for calls that cannot be produced in the Illinois Basin except I buy blending and I market research confirms that are we thinking only about 7% of the European market can accept call more than 2% sulfur which amounts to about 12 million tons of imports I buy 1990. I think the United States government could help by encouraging the development of the self realization technology, but particularly a second-generation scrubbers, and I think the iea could encourage The European utilities to take steps to install scrubbing equipment to widen the choice of calls because I think as the volume increases the they may be confining themselves to a Two Notch Road Ranger supplies, and I suddenly under on the line call back his remarks about the need to dread your parts. Thank you very much. Mr. Robert Holloway Arch minerals company. Thank you. Senator. Arch minerals is a major producer of steam cold throughout the United States with operating mines in Wyoming Alabama and Illinois within the state of Illinois and through our wholly-owned subsidiary of Southwestern Illinois coal Corporation. Where is annually producing about 8 million tons of bituminous coal all currently for domestic consumption. We feel strike quite strongly. However, that covers yards within United States and more specifically with in the Illinois. Basin can play a vital role in your effort to supply a greater percentage of world energy requirements. Illinois prolific coal reserves and it's ready accessibility existing Rail and water transportation naked in Metro for transshipment beyond our borders. The real question is can Illinois coal meet required quality specifications. We thinking can either by consuming it by itself or a component part of a bland with this in mind Arch mineral is aggressively pursuing opportunities for exporting our Illinois pool. United States has made great progress in the area of food for peace throughout the world. I suggest that food for peace be expanded to also include cold or energy for peace. We can produce the coal if our foreign customers can help you produce the piece. Thank you for giving me this opportunity. Thank you very much indeed. Buggy first you have heard from our foreign guests talking about the need for consistent reliable supply of steam coil. That's what they seem to want more than most of all more than even getting cold at the lowest price. They want reliability. How can we assure these foreign officials if they can rely on US produces to get the cold shoulder I think nothing less than a a presidential statement, which I understand is soon to become forthcoming due to large part to your efforts the efforts of the coal caucus do precisely that I think secondly Senator that we ought to as we organize it within the new Administration this may sound presumptuous of me and I apologize if you think it is presumptuous, but I think that this Administration hasn't yet said it's house in order with respect to who has the lead in Coal exports as yet and the Carter Administration they proceeded lease. In the export area the one area that I could agree with their policies with respect to cold. They did they did to treat it as as a as a national security matter and it was housed in the Office of the President and was perceived as a national security issue where it belongs and I hope and pray that this Administration and I hope Center a person who will use your influence to see the Reagan Administration treats coal exports at the same highest level was a matter of in the office of National Security and not house than the Department of Commerce or in the Department of State not the meaning those two agencies, but I do think that that's the best signal we can send abroad but this Administration is committed as the Carter Administration was just seeing the development of coal exports in as a as a as one of the essential dimensions of National Security. I can assure you that. The government Affairs Committee in which I service ranking Republican has the responsibility for oversight on the organization of the executive branch of government. It's our job to see that they do perform effectively eliminate overlapping and find the place where the buck stops. And in this case. We've got to know who we can hold responsible and we will certainly follow through on that the excellent suggestion. I want to assure you that we will also follow through to do everything we can to streamline the regulatory morass. This is my where are you and the Occult Association has been so outspoken because it does dragged down the process of port expansion. It was dredging project stretched out over 20 years or more recently got to find a way to break through and a streamline that activity and we'll enjoy working very closely with you on that. Thank you Center. Vanderburgh are the mineworkers now, if you can put it on the record for us at ready to produce coal now as never before can the United States and potential foreign buyers be certain that you Union mine call will be available for sales now and in the near-term future, there's no question in my mind that the cold every mind in the state of Illinois is working today producing Cole, which I think is remarkable. Also as I pointed out in my testimony our production per man has increased over the last several years it which makes the are competitive cost a little lower. So I'm sure that all the Illinois United Mine Workers already get the business and produced a cold at the foreign markets looking for Thank you Google very much. Just want to hold you all of you here pretty testified to the strength of Illinois coal and RX War potentials. How can we best get the word spread about about the advantages of Illinois coal to overseas buyers? What do you and your company expect to do to get that word out? Well, one of this is the conference which you are holding now. He's probably one of the best mode of communication between the buyer and supplier. We are working as a free man united we have recently signed a contract with Spain and the cold should be moving this week where the Spanish cement industry was concerned about the volatile content-area convincing that the detained of method-of-use can make possible to use a Panama Basin call and this has to be demonstrated as a pastor on but we have signed a contract you're working very closely with all the International Community is trying to show them how in the United States the call from the universe and have been burned and been used without problems. It is just a different. It's a fear of unknown which exists and that's what we're trying to communicate by visiting them meeting them and threw conferences. Stealing a I wonder if you could speak on behalf of all of the company's how quickly could the companies that come in strictly your own then commence large-scale coal shipments to Europe or the Pacific Rim. Are there any logistical problems? Which affect Illinois call in particular that which must be overcome before a large amounts of Illinois coal can be shipped overseas. I guess the single most logistic problem probably exist in the port facilities on the lower Mississippi as far as the stages concern. I think we're in pretty good shape. As far as Transportation facilities are concerned. We are rivers. We have the availability of our rivers and the lakes in the northern part or rail system is in place. I think each one of our producers have productive capacity available at this particular time. I think most producers are are set to add productive capacity. Should we be able to secure contracts? And and so I think we're ready to go. Ready to go then. Mr. Williams. Could you comment on some of the testimony given this morning by representatives of the five foreign Nations? They are fired that I have just happened to him that personally within their country is or here to talk about the potential. I have a list of the 30 or 40 more countries that I'm going to be contacting and working with what what are you see it from what they have said about the serious potential for Illinois coal exports to these countries in the near future of what I hear from the cement sector. I think that's the the area that we should concentrate on. I hope that We see a development of technology which allows us to use high-sulfur coal. One of the interesting things that came up is that the us is going to have to get its own house in order as far as the use of high sulfur call. I think we've got to quit looking at it as a fuel of Last Resort. We've got to fit into a balanced fuel use. I find it ironic that we're here. Today to ship our coal overseas when the biggest utility in a state doesn't use Illinois call. Thank you. Mueller I'm rather that curious about how and when some of your company's first became interested in the export market for Illinois call. Would you care to comment on the history of your own company? Car company was is a relatively new company that was formed specifically for the purpose of getting into the export market and for utilizing the capabilities that are apparent and sister companies had which included the terminals coal production and Barge Transportation on the inland waterways. We have found the generally the interest in midwestern Cole and Cole moving to New Orleans to be very high in Europe and Asia. So I don't I don't feel it though the that there has been much of a problem and getting the word out to the world that the Illinois coal Basin is here and it is available for a production. I just called. again, if you could comment on the question raised by all of our foreign visitors Duomo Nicole produces where they have the cold exploit can are formed by Arthur Fisher getting a cold a contract for Yes, we have the code to export and yes, we're taking steps to make sure that we can deliver and provide reliability of service. I think that's the that's the key. We are developing a port in Baltimore. It's costing a hundred million dollars. So we certainly have a commitment to Port capacity. That doesn't that helps West Virginia and cold but doesn't help Illinois Basin but wait, we're also interested in developing some similar long-term Arrangements down in New Orleans for shipment of river calls. I think the problem is is to create the demand for the call now and and that's a matter of working on these technological problems or agree with you. We need to create the demand. What if we also have an increased demand. Mr. Holloway from a domestic uses of coral in your judgment. Would we still have plenty of coal available? Overseas buyers, even if our domestic demand increases substantially from are available reserves, Justin, Illinois. We have the equivalent of more BTUs than all of the oil in all of the Court L Nations. We have the cold here in Illinois Congressman Paul Simon any comment from you stressing extremely important point in and speeding up the Corps of Engineers activities in the parts. But Mr. Cove underscored what doctor Lasker said earlier on that is the importance of moving ahead aggressively on Research. We simply have not been doing the job that needs to be done in this nation and that's really a very key item. For using this high-sulfur coal. Thank you very much. And I do wish to express appreciation to all of you for being with us today. One one last thing. I would like to ask of you the presidential press United States statement will be important in this area. I wonder if it would not be well baggie if you could take undertake with your colleagues and working with United Mine Workers as well to draft a resolution of some sort possibly by the Illinois High School Association, and that may be the more appropriate for him for it with your cooperation help which would guarantee the Fulfillment of all long-term contracts for high-sulfur coal exports. I think this guarantee by all companies would go far toward removing it out switch one cool bars have about the reliability of our of our cool. The date commitments to supply high-sulfur coal overseas buyers have included a copy at which would allow produces to withhold exports in the event of a national emergency and that obviously causes a good deal of nervousness. And we consider that virtually all of these foreign buyers of our cool R Us are allies of our is any weakening of their economy is a weakening of the Free World economy. I think we all stand together and I think I'm gonna sure instead of that kind which would require maybe more stockpiling every place. We'd have to back up that insurance, but we've been able to weather through every one of these storms. I think the storms are getting less now, certainly labor interruptions will will will be lessened in the future than they have in the past and we can give that some sort of assurance. I think that would be a remarkable thing for them to take back to their governments and for us to broadcast around the world and give me a powerful tool that I can work with as in the next two months. I'll be meeting with another. 2025 countries. Thank you very much. We are now one half of the way through the sessions of this hearing before the subcommittee on energy nuclear proliferation and government processes on coal exports. We now pause for station identification.

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