From: James Kotcon <jkotcon@wvu.edu>
To: ec@osenergy.org; Elena.Saxonhouse@sierraclub.org; Mark Kresowik <Mark.Kresowik@sierraclub.org>
Sent: Thu, December 23, 2010 6:31:07 PM
Subject: [EC] New Coal-To-Liquids proposal in WV
I just saw this. An effort to get a CTL plant onto Weirton's property would be politically difficult to oppose. Weirton Steel has long had a history of support form organized labor in WV, and therefore has had political support that few industries would likely see. Just the name alone will create support for any proposal to bring back those jobs.
This does not appear to be a well-funded proposition, yet. If the Steelworkers have signed on, that will create some momentum, and minimize labor conflicts. And if the Governor backs it, look for state subsidies.
jim Kotcon
From the Wheeling (WV) News-Register, Dec. 10, 2010. Available at:
http://www.news-register.net/page/content.detail/id/549692/Thousands-of-Jobs-May-Be-on-the-Way.htmlThousands
of Jobs May Be on the Way
Officials gather to discuss coal-to-liquids plant
December 10, 2010 - By IAN HICKS
Major players in a proposed coal-to-liquids plant say they are on the verge of resurrecting Weirton's industrial heritage and putting more than 1,000 people to work in the city.
Officials with Weirton Energy, the company seeking to build the faculty, met with acting Gov. Earl Ray Tomblin and Delegate Pat McGeehan, R-Hancock, in Wheeling Thursday to discuss the project. If all goes according to investors' plans, such a plant could be operational within 18 months and reach full capacity in two to three years.
According to Weirton Energy's chief engineer, Al Norman, the plant would represent a capital investment of about $2 billion and bring at least 1,100 jobs to the city, with the potential for that figure to top 3,000 in the future.
The company has reached an agreement in principle to establish an "amalgamated"
labor union under the current United Steelworkers Local 2911, according to union President Mark Glyptis.
McGeehan said after meeting with Tomblin, he believes the governor is solidly behind the initiative.
Tomblin's support, he said, will be key in clearing the final hurdle for this proposal to become reality - land acquisition.
Weirton Energy wants to build the plant on property presently held by steelmaker ArcelorMittal.
Though some of the facilities haven't been used since the late 1960s, the Luxembourg-based company has been reluctant to part with the property.
Weirton Energy's attorney, Robert D'Anniballe, said the company is "exploring best opportunities" to acquire the land, though he did not go into detail regarding those opportunities.
Company officials would not confirm they are seeking to garner the property through eminent domain; however, the Weirton Redevelopment Authority at an August meeting
discussed the possibility of attempting to exercise that power on ArcelorMittal's properties at the north end of town.
No specific development projects were discussed at that meeting.
Norman called the mill property an "industrial graveyard" for which cleanup costs likely will top $100 million.
ArcelorMittal is "faced with the immediate cleanup of this property if that plant shuts down," he said.
However, Norman said Weirton Energy's plan would absolve the steel company from any environmental cleanup obligations and place that burden squarely on his company. He estimated it could save ArcelorMittal $30 million in annual operation costs.
Norbert Keilbach, Weirton Energy's chairman of the board and chief executive officer, said the Weirton location is perfect because many of the components needed already are in place, including infrastructure, transportation and "a ready-made pool of competent labor and experienced
labor."
A stipulation of the union's contract with ArcelorMittal prevents the sale of those properties without union approval. Glyptis said he is in full support of the project, noting he would prefer the property be used in such a manner rather than sold piecemeal to businesses that rely on low-wage labor.
Keilbach said many of the jobs to be created would pay $100,000 or more annually.
McGeehan, who has made bringing a coal-to-liquids plant to Hancock County a priority during his term as a legislator, said industry has always been crucial to the area and it must be a part of the future for the Ohio Valley to thrive.
"We can't afford to miss this opportunity, because there's never going to be another one like it," said McGeehan.
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