RMCMI Convention Welcome And Call To Order - Western Coal: An Industry Under Siege Or Western Coal: The Pit and the Pendulum

The eightieth regular meeting and convention was called to order by the President, John T. Atkins, at 9:15 a.m. Monday, June 25, 1984 in the Colorado Ballroom of the Marriott's Mark Resort in Vail, Colorado. President Atkins welcomed the members and their guests to the convention and noted that the annual business meeting would be held Tuesday afternoon at 2:00 p.m. in the same room. A convention update was made by the Conven¬tion Liaison Officer, Loren V. Linville. This was followed with a program report by the Program Chairman, Doug Ingram. The chair then called on Clifford Barrett, Upper Colorado Regional Director of the Bureau of Rec¬lamation of the United States Department of the Interior. He presented the Bureau's Citizen Award to RMCMI former president Ira E. McKeever for his outstanding contributions to the joint private/ Federal effort and the open planning process for AQUATRAIN. According to Barrett, "from 1981 to early 1984, McKeever led private industry work in the AQUATRAIN project, a proposal for a 1,400 mile long pipeline system. AQUATRAIN was conceived as a possible alternative to solve the government's problem of rising salinity levels in the Colorado river, as well as the private sector's need for a more economical coal transport method. The Citizen Award cites McKeever's efforts in developing a model for future cooperative ventures between government and industry that can benefit the nation." Following this presentation, the formal program of the 80th meeting and convention began with the president, John Atkins, introducing the convention kickoff speaker, Andrew Franklin, President of Nerco Mining Co., Inc., followed by the convention keynote speaker, Dr. Margaret N. Maxey of the University of Texas. These speeches are printed in this Proceedings together with those of all other convention speakers. I'm Andrew Franklin, President of Nerco Min¬ing Company, and I'm delighted to be here to kick off the annual convention of the Rocky Mountain Coal Mining Institute. This has always been a very special convention in my eyes and I'm sure this year's will be no exception. I am also here to share my thoughts on the western coal industry and how we're all affected - for good and bad - by public policy decisions. Although the title of my talk is "Western Coal: An Industry Under Siege," I believe a more accurate title might be "Western Coal: The Pit and The Pendulum," because of the wide swings in public policy and coal development in the past 15 years which have cut a zigzag path for growth over this period. As one of the nation's largest coal producers, Nerco is well aware of the problems facing western coal production. Nerco Mining Company is the western coal mining subsidiary of Nerco Inc. We have been "in coal" for more than 25 years through our parent company, Pacific Power & Light. To state my conclusion at the outset, I feel it's extremely important that consistency and common sense should guide our national policy for the development of valuable energy resources. In particu¬lar, we must reduce the wide swings in government policy and activities which have affected energy development. In short, we must decide what kind of game we're playing so that the "players" and the "referees" can keep their eyes on the "ball." Business today faces two main types of uncertainty market uncertainty and public policy uncertainty. As businessmen, we expect and are used to facing the familiar challenges and uncertainties of the market in which we operate. Over the past 10 years, the market has appeared to be bullish on coal. But the facts make our future less rosy. Last year, western coal producers faced over 50 million