Chairman Doc, distinguished guests, and fellow members of the Rocky Mountain Coal Mining Institute: It's a genuine pleasure to meet with you again at the 54th regular meeting. I might add that it is always pleasant to be at the top of the batting order. The field is wide open since there is no danger of repeating something already said. At the same time, I am aware that the lead-off speaker has a responsibility to avoid stepping on the toes of subsequent speakers. I promise to confine my remarks to areas other than those to be covered by the well qualified speakers that follow. During our meetings at this convention, many fine papers will be presented. Our thanks are due Bob Williams and his hard working program committee for the superior selling that brought so many eminent speakers to our meeting. And, of course, our special thanks go to Doc Schloss, general chairman of this meeting. Doc and his able colleague, Stan Shubart, have been the spark plugs that fired up all of the arrangements we are enjoying here in Glenwood Springs. I'm sure all of us are appreciative of the many hours Doc has devoted to seeing that our meetings will be pleasant and profitable. When we mention arrangements, we always think of that master arranger, Fred Whiteside, who, as a charter member and secretary-treasurer of the Rocky Mountain Coal Mining Institute, has had more to do with more matters around these parts than just about anyone I can think of.
It's my pleasure to welcome the Rocky Mountain Coal Institute to Montana. Now that you've ended a 74 year history of meeting outside our borders, I hope you'll be back more often. Even if I can't convince you to come back before 2060, when another 74 years will be up, I'm confident the Kalispell and Flathead Lake area will do the persuading for me. In recent weeks, I've made a number of speeches around the state pointing out just how wrong the revenue projections in Montana's state government made in April of '85 were when we came to April of '86. Since the middle of this month, Montana's legislators have been in Helena struggling to balance a state budget that, by the end of fiscal year '87, threatened to be some $88 million in the red. Other western states reliant on natural resource and agricultural economies have found themselves caught in the same deflationary spiral. The "window of opportunity" I proposed and the 1985 Montana Legislature passed, couldn't have been opened at a more difficult time. What was envisioned as an incentive to expand Montana's coal production, and our tax base, ran aground on low oil prices and excess hydroelectric power. De- spite the one-third severance tax rebate offered on new coal production, year-to-date figures published in the June 2nd Coal Week show that production in Montana is down almost 10 per- cent from last year. Again, we're not alone. Production in Wyoming is down 8 percent and in North Dakota, it has dropped 13 percent. An over- all 3 percent production decline in western states looks even worse when contrasted against a 12 percent increase for your eastern competitors. Montana's "window of opportunity" had the potential to be a significant signal to your industry. That potential was quickly tempered by the inability of Arab nations to stabilize world energy prices. If any of us had forgotten, the last twelve months have reminded western states that the well-being of our natural resource economies has a tremendous impact on the ability of all levels of government to provide services. The past year has also driven home that in the world of business and in the business of the world, risk-taking is still the name of the game. The Western Governors recognize the problems facing this industry - and our states - and we're prepared to fight for the future of western coal. In the past two decades, legitimate environmental concerns have created a vast body of new legislation affecting coal producers. The industry has been required to meet new reclamation standards - tough regulations relating to ground water, air quality and wildlife habitat. To the industry's credit, coal companies have hired professionals with the technical know-how to do it right. Rather than considering reclamation laws to be an unreasonable burden, today's coal company is more likely to view its reclamation efforts as a source of corporate pride. In a sense, the industry and the agencies which regulate it have matured together . . . although at times OSM is reluctant to admit that either of us capable of or willing to play by the rules. Certainly some abuses exist and OSM's oversight has been helpful in ensuring parity between those states willing to comply and those that would rather defy federal law. Nonetheless, penalizing the more modem and responsible western coal industry for abuses that occur elsewhere is both unfair and counterproductive. Federal penalties range from "cruel and unusual" reporting requirements to the proposed electricity tax that would effectively force utilities and ratepayers who have already met the sulphur emission standards to subsidize those who have dodged their cleanup responsibilities. As a member of the Alliance for Acid Rain Control, I have joined corporate leaders, academicians, environmental representa-
Proceedings of the Fifty-Fourth Regular Meeting of the Rocky Mountain Coal Mining Institute Hotel Colorado Glenwood Springs, Colorado June 29 and 30, July 1 and 2, 1958 - "With Serene Confidence" The President's Remarks