WHEELING - West Virginia Coal Association Vice President Chris Hamilton says the state's coal is helping to keep West Virginia economically afloat as most other states struggle financially during the current economic tumble.

Hamilton, a Wheeling native, predicts "moderate growth" for the coal industry in the future, and that Consol Energy will continue with plans for a coal to liquid plant - which he hopes still will be built in Marshall County.

"The mining and energy sectors are providing a cushion for the state where it comes to jobs and revenue," Hamilton said. "The industry will continue to keep the state from falling as drastically and quickly as the national economy is projected to do in the coming years."

He noted that West Virginia is among "the seven or eight states" that will end the year with a surplus, and that this was largely due to severance taxes paid by the coal industry.

The coal industry, itself, is taking a steady but cautious stance in the coming months, according to Hamilton.

"From our perspective, while we will not be hiring as many people in the next couple of years, we will experience moderate growth due to strong domestic and international demand for all forms of energy - particularly coal," he said. "A lot of the hiring is the result of filling vacancies within the industry."

The coal industry will be seeing much attrition as it replaces an aging work force, Hamilton commented.

"Mining is still considered nationally to be a high growth industry," he said.

Hamilton noted that a part-time tax was placed on the coal industry four years ago to pay down a deficit in the Workers' Compensation Fund in the state. That tax was to extend until at least 2020.

"But because of the high energy market and the high pricing for commodities, we are in the process of paying the debt off at an accelerated rate," he said. "It may be as early as 2012, but realistically, it could be a couple of years past that date."

Consol's Coal to Liquid Project

Hamilton said the West Virginia Coal Association will approach state officials next year about the state investing in coal to liquid technologies.

"We will ask the governor and the legislature to devote some state money - seed money - toward the development of this type of project in the state's boundaries," he said.

Hamilton said that as a Northern Panhandle native, he would like to see a coal to liquid plant built in Marshall County, but that it is up to the area's lawmakers to provide the leadership to bring it here.

Earlier this year, Consol proposed a CTL plant for Benwood, which it was to construct along with Synthesis Energy Systems Inc. SES has since pulled out of the $800 million project, and Consol is presently seeking another partner for the project.

Hamilton noted that Consol has "done a tremendous amount of analytic work to substantiate its investment" and that because of this the company remains committed to building a CTL plant.

"I don't think it's a question of whether it will happen.," he said. "The governor is committed, and Consol as an energy producing company is committed.

"If West Virginia is to ascend to that national center of commerce and energy then it must elevate its vigor and interest in developing plants."

The Obama

Administration

Hamilton believes President-elect Barack Obama's administration must utilize coal - as well as all other natural energy sources - as part of an overall national energy plan.

"Throughout the presidential campaign, there were a lot of mixed signals that came from the Obama and McCain campaigns," Hamilton said. "It seemed both had an appreciation of he coal industry, its relationship to the energy mix, and its importance to the national energy strategy."

But he wasn't as convinced either knew much about coal mining.

"Both maintained that carbon-free coal would have a place in their administration, but neither spoke much of extractive processes - or had much understanding of the work," Hamilton said.

He said that he looks forward to working with the Obama administration and a new secretary of energy.

"We have to focus on a diversification of our energy portfolio," Hamilton said. "We think demand for energy will be so great in coming decades that we will need every single BTU from every single source available - everything that can be generated by coal, nuclear, solar and windmill energy.

"Our energy needs are growing exponentially every year."