Coal bill signed into law

Thursday, 25 Aug 2011

A southern coalfields state senator believes a bill signed into law Tuesday could be a turning point for coal producing counties.

Sen Ron Stollings, D Boone and others were on hand at the state capitol when acting Gov Earl Ray Tomblin signed the bill that will give the 31 counties that produce coal more of the coal severance tax collected by the state.

Mr Stollings believes many of the counties will use the money to diversify their economies. The senator says if the federal EPA continues to deny permits and drilling for natural gas in the Marcellus shale continues to grow, coal may have a more difficult time keeping up. He said that "This is a way we can soften the blow, be a buffer somehow, so we have something to hang our hat on down the road.”

The new law will send one percent a year of the coal severance tax back to the coal producing counties for up to five years. Mr Stollings believes in a few years it could mean an additional USD 4 or USD 5 million for his county.

The law says the money can only be spent on infrastructure and economic development projects. County commissions will be required to submit annual reports to the legislature.

Sen Stollings said that "Rules will be written so that this money will not be wasted. This money may be very well be the best future investment for West Virginia than you can imagine."

Mr Stollings believes the land around Corridor G in Boone County could be developed with the money. He says infrastructure would include things like broadband, sewer and water lines or a bridge to a certain area.

(sourced WV Metro News)