The Capitol Fax Blog » Screwed Again

Tuesday, Dec 14, 2004

Vandalia and Fayette County haven’t had the greatest year. First, the governor tried to kill off the local state prison, now the region appears to be losing out on a lucrative coal/power deal.

VANDALIA, Ill. (AP) Two years after a Kentucky-based company promised to build a huge coal mine and power generating plant in Fayette County, the company is $225,000 behind in its lease payments to the county and in danger of losing the project.

Clean Coal Power Resources Inc. failed to pay a six-month lease payment despite receiving a two-month extension in July. Another $225,000 is due Jan. 1.

County Board Chairman Dean Black said he was confident the board would vote Tuesday to send Clean Coal a letter declaring the company in default of its lease agreement. […]

In 2002, Clean Coal said that building the coal mine would mean 250 jobs and another 4,000 to build the gasification and power plants. Larry Emerick, the board chairman at the time, said the lease called for $17 million in yearly royalty payments once the plant was fully operational around 2012.

Have any of the dozens of ambitious plans to revitalize Illinois coal ever succeeded? I’m hard-pressed to think of any at the moment.

- posted by Rich Miller

4 Comments

- Anonymous - Tuesday, Dec 14, 04 @ 4:25 pm:
Nor will any of the dozens of future plans (inluding Future Gen?).

- Dan Johnson-Weinberger - Tuesday, Dec 14, 04 @ 5:31 pm:
Why don’t the coal miners and electeds who represent them get behind clean air legislation that would force the utilities to install scrubbers or newer technology that would let them burn Illinois coal? I don’t get it. If our coal is so much dirtier than Western coal, isn’t it in our interest to get tougher pollution standards that Western coal alone can’t meet so Illinois plants can burn Illinois coal? What am I missing?

- anonymous - Tuesday, Dec 14, 04 @ 9:50 pm:
Blago’s first budget eliminated the sales tax pollution control exemption and the exemption for coal mining machinery and equipment. The coal mining machinery and equipment was reinstated - it was eliminated by “mistake” according to the administration, but the pollution control exemption was not reinstated, thus making it more expensive to buy the necessary scrubbers, etc. necessary to burn Illinois coal.

- Anonymous - Wednesday, Dec 15, 04 @ 2:50 pm:
Blago’s behavior on energy issues has been a failure. The state has done nothing to assist the coal mining industry and, as noted above, his dicisions have discouraged the use of Illinois coal. He had an opportunity to incent the use of IL coal with the 9.10 rulemaking but his office rejected the recommendation of IEPA so now we’ll keep on burning western coal and we’ll keep on having dirty air and poluted lakes. His Commerce Commission is in the process of endorsing a plan which will result in huge price increases for customers for electricity and will likely make Illinois a net energy importer instead of exporter. He is an utter failure. Any opponent, primary or general, in 2006 will run hard on these issues and they will hurt the man.

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