substantial, since it is performing the work without any fee. It is estimated that if a fee charge were being made, this contract would cost OCR approximately $60,000 more than the $884,300 cited above. SITE SELECTION FOR ANTHRACITE PROJECTS Mr. McDADE. It is my understanding that the site selection on this will be controlled by the Commonwealth of Pennsylvania? Mr. MCCURDY. Yes, sir. The agreement we are drawing up with the Commonwealth of Pennsylvania provides that the selection of the site will be made by the Commonwealth upon the recommendation to them by the contractor and then approval in writing by the Office of Coal Research. Mr. FUMICH. It probably has been resolved. POWER PRODUCTION FROM ANTHRACITE COAL Mr. McDADE. I would like to direct your attention to the statement appearing on page 6 of your justification, and a very similar statement occurring on page 16 when the Bureau of Mines was up here. The first sentence on page 6, referring to the use of coal in connection with the electric power needs, is what I refer to. I brought this to the attention of the Bureau of Mines, and I want to bring it to your attention as forcefully as I can. The decision which has been announced by the Pennsylvania Power & Light Co., which is one of the major users of anthracite in the United States, is that by 1970 they will move from a position where they use 50 percent anthracite to a position where they intend to use about 5 or 10 percent anthracite in their plants. This represents a 90- to 100percent loss of this market to anthracite unless something is done. According to the Bureau of Mines, the reason is the difficulty in getting small-sized coal. Is the Office of Coal Research aware of this problem Have they done anything in this regard so far? Mr. FUMICH. We have not done anything in that regard as far as actual research in the mining area and sizing of coal is concerned. We have had no proposals in that area. Mr. McDADE. This is something I will discuss with you later. This can be a tremendous loss to the anthracite industry. Another thing with respect to this, the city of New York is discussing the problems which are created by air pollution, both from petroleum and bituminous coal. From the information I have been able to get, I understand that anthracite coal as a fuel use has the lowest percentage of air pollutant of virtually any fuel being used today. I am sure since this is in the talking stages in the city of New York that you would not have a proposal on it, but I would urge the Office of Coal Research to keep their eye on it. If New York does take action to control air pollution recommending a cutdown or even a prohibition in the use of bituminous, and petroleum, the natural thing to try if the anthracite people are ready is anthracite coal. HIGH COST OF DELIVERING ANTHRACITE Mr. FUMICH. One of the problems is the delivered cost of anthracite. The B.t.u. cost, in New York, as compared to other fuels has been very marginal. As far as New York is concerned, air pollution is a serious problem. Mr. McDADE. You do not believe it is feasible even to think about doing anything from your standpoint? Mr. FUMICH. I would not say that, sir. That is what we are here for. In other words, if we are not going to look at these things we are wrong. I was merely trying to show you some of the problems involved. We do not think it is hopeless. Mr. McDADE. But it is basically a cost factor. Is that right? Mr. FUMICH. In New York as far as delivered cost is concerned, yes. We are worried about what the cost will be when we apply these antipollutant controls. The proposed limitations on sulfur content in coming years would create additional problems in this important market. Mr. McDADE. But anthracite would meet that. It is 0.4 percent, is it not? Mr. FUMICH. Yes; as far as sulfur content is concerned. Mr. McDADE. You are aware of the situation. Mr. FUMICH. Yes, sir. Mr. McDADE. There was a time when this was a tremendous market for anthracite coal. A great deal of that market is gone now. Mr. FUMICH. We have about 214 million tons of anthracite in the utility area. Mr. McDADE. That is all I have, Mr. Chairman. Thank you. Mr. DENTON. That is all. Off the record. (Discussion off the record.) Mr. DENTON. Thank you very much for your appearance, gentlemen. The committee is adjourned. Strip and surface mine areas - Adequacy of budget estimates__ Administrative provisions_ Appalachian region mining area restoration_ Applicability of Appalachia Act to public-owned land. Unobligated and unexpended balances.... Conservation and development of mineral resources. Coal reserves, by States-. Consumption of coal.. Cooperations with Federal and State agencies- Decreases and increases in programs. Research.. Coal. Electric utilities, use of.. Objectives, major.. Culm banks.. Explosives___. Junk automobiles_. Marine mineral mining. 237, 300 Metallurgy- 223, 312 Antipollution program. 228 Mining... 230 |