P.O. DRAWER 160 • ABERNANT, ALABAMA 35440 • 205 477-5731
January 29,1996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
For Energy and Water Development
U.S. House of Representatives
Washington, D.C. 20515
Dear Chairman Myers:
Alabama Land and Mineral Corporation is a coal mining company
with coal mines and transportation facilities located in Jefferson,
Tuscaloosa, Bibb, and Walker counties in Alabama. In 1996, our 150
employees will produce approximately 1.3 million tons of coal to be
marketed to customers in both the domestic and export marketplace.
Transportation of coal is an important consideration for
Alabama coal producers. The extensive transportation system in
effect within the state makes Alabama's coal resources even more
attractive. Although Alabama has four navigable River Systems, the
Black Warrior-Tombigbee River System is the principal system for
coal shipments by water within the state. Almost every part of the
productive Warrior Coal Basin is connected to the Port of Mobile by
waterways providing barge access. Alabama Land and Mineral
Corporation operates a barge coal loading facility on the Warrior
River in Walker County, Alabama. This facility loads one-half
million tons of coal annual on barges to be shipped down river to
power plants along the waterway or the Port of Mobile.
The Alabama State Docks at the Port of Mobile operates the
McDuffie Coal Terminal which is the largest on the Gulf Coast and
one of the most efficient coal handling facilities in the United
States. Its annual operating capacity is in excess of 20 million
tons. The Port of Mobile is served by more than 100 steamship
50
lines, with connections to major ports in Latin America, United
Kingdom, Europe, Mediterranean, Africa, Asia, and the Pacific.
In order for our company to be competitive in the World Coal
Market, we must have access to a waterway system, such as the
Warrior-Tombigbee System and the Port of Mobile facility. Alabama
Land and Mineral Corporation has joined with the Warrior-Tombigbee
Development Association in an effort to improve the efficiency and
reliability of the Warrior-Tombigbee Waterway. It is essential
that the proper appropriations of funds be made for the operation,
maintenance, and improvement of the Warrior-Tombigbee Waterway
System. Without these funds the efficiency and reliability of the
waterway will be degraded, causing the energy trade deficit to
continue to rise in the form of lost revenue, taxes, economic
opportunity, and jobs for Alabamians. Your committee should make
an effort to reverse this energy trade deficit by helping establish
Alabama as a leading exporter of coal. Alabama Land and Mineral
Corporation strongly supports the appropriation of $16.3 million in
operation and maintenance funds for the Warrior-Tombigbee Waterway.
Sincerely,
51
Southern Company Services. Inc.
Post Office Box 2625
Birmingham, Alatjama 35202
Telephone 205 877-7704
Bill M. Guthrie
Senior Executive Vice President and
Chief Production Officer
the southern electric system
Februarys, 1996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
For Energy & Water Development
U. S. House of Representatives
Washington, D.C. 20515
Dear Congressman Myers:
The Warrior-Tombigbee Waterway is vital to the economic health of Alabama. The
state's water transportation system must be efficient and well-maintained for the basic
industries, such as mining and heavy metals, to provide a sound economic base for the
state and for Alabama to enjoy economic growth.
Alabama Power Company's continued interest in the Warrior-Tombigbee Waterway
is two-fold. First, our business is dependent on the general economic health of the state;
and, second, we are a primary user of the waterway. For over three decades, we have
used economical water transportation to deliver coal to two of our major electric
generating plants.
Four of Alabama Power Company's seven fossil-ftieled, electric generating plants are
located on the Warrior-Tombigbee Watervv-ay system. Coal from the Warrior coal field is
delivered to locations near the coal field and loaded into barges for shipment to two
generating plants in the southern and central parts of Alabama. The 1,525-megawatt
Plant Barry in Mobile County, which began operation in 1954, is supplied primarily by
the Warrior-Tombigbee Waterway, as in the 500-megawatt Plant Greene County near
Demopolis. Also a portion of the coal requirements for the 2,640-megawatt Plant Miller
in Jefferson County is delivered using the waterway.
Adequate funds for operation and maintenance must be made available for the Corps
of Engineers to continue efficient operation of the waterway and to avoid expensive and
urmecessary interruptions to river traffic. While we fully support the appropriation of
$16.3 million in O&M fiands, the Corps has additional capability to get underway on
these projects which have been deferred over the past two years. They are vital to
continuing the improvements year to year which ultimately will bring the waterway
efficiency to an expected level. These projects total $4,650,000.
52
Alabama Power Company received 6.4 million tons of coal in 1995 which were
transported on the Warrior-Tombigbee Waterway. This represented over 3 1 percent of
the 20.2 million tons used in generating units operated by Alabama Power Company.
Failure to properly maintain die waterway can have a significant adverse effect on the
cost of providing electric service to Alabama Power Company's approximately 1 .2
million customers.
Alabama Power Company supports the collective efforts of the Warrior-Tombigbee
Development Association, of which it is a member, to obtain for the Corps of Engineers
an adequate operations and maintenance budget which will insure the long-term efficient
and economical viability of the waterway.
Sincerely,
BMG:pp
53
^k Alagasco
ALABAMA GAS CORPORATION
2101 Sixth Avenue North
Birmingham. Alabama 35203
February 16, 1996 Telephone (205) 326-8429
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
for Energy & Water Development
U.S. House of Representatives
Washington, D.C. 20515
Dear Congressman Myers:
The Warrior-Tombigbee Waterway is vital to the economic health of Alabama. The
State's water transportation system must be efficient and well-maintained for the basic industries,
such as mining and heavy metals, to provide a sound economic base for the State and for
Alabama to enjoy economic growth.
Adequate fiinds for operation and maintenance is necessary for the Corps of Engineers to
continue efficient operation of the waterway and to avoid expensive and unnecessary
interruptions to river traffic. Therefore, we support appropriation of $16.8 million in O & M
funds for the Black Warrior-Tombigbee plus adequate funds for Mobile Harbor during fiscal year
1996.
Alabama Gas Corporation supports the collective efforts of the Warrior-Tombigbee
Development Association, of which it is a member, to obtain for the Corps of Engineers an
adequate operations and maintenance budget which will insure the long-term efficient and
economical viability of the waterway.
Sincerely,
V
Roy F. Etheredge
=l\/£/fC£/UCOM PAN Y
54
American Commercial Barge Line Company
C. William Kinzeler, II
January 30, 1996 Vice President &
General Manager
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
For Energy & Water Development
United States House of Representatives
Washington, DC. 20515
Dear Representative Myers
American Commercial Barge Line suppons the Corps of Engineers' budget request of
$16.3 million for the Warrior-Tombigbee Waterway
Since its inception, ACBL, America's largest inland river transportation company, has
utilized the Warrior-Tombigbee Waterway to convey many bulk commodities that are
critical to our nation's agricultural, chemical, steel production, and power-generating
industries. We have also periodically used the Waterway as emergency conveyance
during periods of restricted navigation on both the Ohio River and Mississippi River
systems This akemative has prevented temporary plant shutdowns and consequent
loss of production and jobs
ACBL's use of the Warrior-Tombigbee system and the Pod of Mobile is still rather
anemic This lack of activity is not a function of the system or facility, but rather focused
attention on business on the main stream system As mentioned above, we have moved
significant tonnage of many bulk cargoes Our sales and marketing group continue to
research business opportunities that positively impact our company as well as the local
and state's economy. Therefore, we support the funding request of $4 6 million.
ACBL appreciates your committee's consideration in reviewing this funding request
Adequate maintenance of the Warrior-Tombigbee system is imperative to support our
national transportation objectives and to develop additional competitive international
markets
Yours very truly,
C. William Kinzeler. II
Vice President and General Manager
Gulf Coast Operations
CWKjg
Pushing for Quality
5800 River Road • P.O. Box 23206 • Harahan, LA 70183 • Phone (504) 733-7870 • Fax (504) 736-1278
a unri of CSX Corporation
55
©BELLSOUTH
Corporate & Eiternal Allairs 205/972-2415 or Michael P. Harbin. C.E.D.
Suite 301N Toil Free 1-800-292-8186 Director - Economic Development
31 96 Highway 280 South FAX 205/972-4039
Birmingham, Alabama 35243
February 20, 1996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
For Energy & Water Development
U. S. House of Representatives
Washington, DC 20515
Dear Representative Myers:
As Director of Economic Development for BellSouth in Alabama, my interest lies in
the development of our economic base to improve the overall quality of life for each
Alabamian. The infrastructure needed to build this economic base, be it waterway or
electronic highways, is essential to conduct our business and commerce. The Warrior-
Tombigbee Waterway and the Port of Mobile are two such projects that will have a direct
impact on Alabama's economy.
We support the efforts of the Warrior-Tombigbee Development Association because
we believe their efforts will lead to long-term benefits in the area of energy conservation,
international trade and the improvement of the economic well-being of Alabama citizens.
I would also like to lend my support to the Corps of Engineers' request for adequate
funding for the operation and maintenance of the waterways and ports.
I appreciate your taking my endorsement of these projects into consideration. I am
confident the Association can count on your support as well.
USA
56
P 0. BOX 1 0048 (35202) 1 1 1 OXMOOR ROAD (352091
BIRMINGHAM, ALABAMA
(205)942-3435 FAX (205) 942-2601
February 14, 1996
FOR. THE -COMMITTEE
Mr. Sheldon L. Morgan, President
Warrior-Tombigbee
Development Association
Post Office Box 2863
Mobile, Alabama 36652
Dear Mr. Morgan:
We employ approximately 2,000 people in a 3-state
operation, with our headquarters in Birmingham. We
fully recognize the extreme importance of the Corp of
Engineers receiving proper appropriations to maintain
the viability of the Tombigbee Waterway. There is no
question that this waterway and the Port of Mobile does
much to keep transportation costs at an affordable
level.
A strong Port of Mobile, plus the Tombigbee Waterway,
is a great asset for the entire South East and Mid-West
area and will even become more so in the years ahead.
Please continue to give us your assistance and help.
Yours truly,
Jeimes C. Lee, Jr
/fWe^>ruk>^ ^ <=^^^ ^.
57
CI20LINSE CORPORATION
2626 BROADWAY POST OFFICE BOX 6109 PADUCAH, KENTUCKY 42002-6109 (502) 444-961'
February 21, 1996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
For Energy & Water Development
U. S. House of Representatives
Washington, D. C. 20515
Dear Mr. Myers:
Maintenance and improvements to the Warrior-Tombigbee Waterway and Mobile
Harbor are a matter of vital interest to our Company. Crounse Corporation
has, since 1990, barged approximately one million tons of coal per year from
the Upper Ohio Valley to locations on the Black Warrior River and Mobile,
Alabama area.
In 1995, we began moving coal from the upper reaches of the Black Warrior to
destinations in the Ohio Valley and hope this becomes a steady movement. We
have found the Warrior-Tombigbee Waterway to be our highest cost operating
area, and can ill afford to have the system deteriorate below its present
level, because of reduced maintenance funding.
Sincere
Lynn Sherrill
Vice President
Operations
58
530 Beacon Parkway. West
Suile 200
Birmingham. Alabama 35209-3196
DRummonD
CDRL
snLESjnc.
January 29, 1996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
for Energy & Water Development
U.S. House of Representatives
Washington, DC 20515
Dear Congressman Myers:
The Drummond Company, Inc., as the largest coal producer in Alabama, has a vital interest in
the continued availability and use of the navigable waterways in Alabama. Our company's
growth (and that of many others) and the economic viability of the Southeast has been positively
impacted by the Warrior-Tombigbee System and the Port of Mobile. This must continue.
The company's new Shoal Creek Mine, now approaching its designed production level, has its
principal shipping outlet at Mile Post 372 on the Black Warrior River. The success of this
project (one of the newest and largest underground mines in the U.S.); our other existing mines
and barge loading facilities now so heavily dependent on water transportation to be competitive;
and the numerous associated jobs for Alabamians would be jeopardized absent the availability
of an efficient, well maintained, and fully operational waterway system.
As you consider the funding needs of the Corps of Engineers, we strongly urge appropriation
of at least $16.8 million for FY96 for the day to day Operation and Maintenance of the Warrior-
Tombigbee system and to continue the needed improvements in the approaches to the bridges
and Jackson and Naheola. We also support adequate O&M funding for Mobile Harbor. Lastly,
and in addition to the above, we urge appropriation of an additional $4,650,000 for projects that
have been deferred.
Sincerely,
James C. Lirawig
JCL/mc
JCU-9«
59
First Alabama Bank
Mobile
Post Office Box 2527
l^obile. AL 36622-0001
Lawrence L. Merrlhew
Vice President
Rrst
Alabama
/Bank
February 7, 1996
Honorable John T. Myers/ Chairman
House Subcommittee on Appropriations
for Energy and Water Development
U. S. House of Representatives
2372 Rayburn House Building
Washington, D.C. 20515
Dear Mr. Myers:
The economies of Alabama and the U. S. Gulf Coast are greatly
impacted by the Port of Mobile and the inland waterways serving
these areas. The Black Warrior-Tombigbee Waterway, is also a
vital factor in this respect. It serves manufacturing, mining,
and the agricultural areas, as well as industrial production
facilities in western Alabama. The waterway has served as an
economic stimulant for over 100 years and receives periodic
improvement, bringing it to the point today, that it is a modern
system linking vital areas of the economy.
There are so many vital materials that are shipped on the Black
Warrior-Tombigbee System, that its overall impact is sometimes
not adequately considered. For instance, most of the coal
exported from Mobile is shipped down this very waterway.
Therefore, it is important for adequate operations and
maintenance that the amount needed as requested by the Corps of
Engineers for operations and maintenance, of $16.3 million, be
appropriated for fiscal year 1997. This is a 3% decrease in
last year's requested appropriation, and is 14% less than the
comparable figure for fiscal year 1995. This level of funding
is necessary to support the day-to-day O & M program, and to
continue ongoing channel improvement projects that will maintain
the waterway in its current state.
We urge your support of an appropriation of $16.3 million, in O
& M funds for the Black Warrior-Tombigbee for fiscal year 1997.
We also request support of the appropriation of adequate O S M
funds for the Mobile harbor.
60
February 1, 1996
Page Two
An efficient and reliable waterway system is important to all of
US/ and certainly is a justifiable investment by the federal
government. The cost benefit ratio will be matched many times
over by the local investment.
yoursi
Lawrenc^ L. Merrihew
Vice President
LLM:lt
Sheldon L. Morgan
Warrior-Tombigbee Development Assoc,
61
Gulf Power Company
500 Bayfront Parkway
Post Office Box 1151
Pensacola. FL 32520-0100
Telephone 904 444-6393
G. Edison "Ed" Holland, Jr.
Vice President - Power Generation/Transmission (he southern electric systen
and Corporate Counsel
February 5, 1 996
House Subcommittee on Appropriations
for Energy and Water Development
U.S. House of Representatives
Washington, D.C. 20515
Dear Representative Myers:
Gulf Povi/er Company is an investor-owned electric utility and a
subsidiary of The Southern Company; we serve 325,000 customers in Northwest
Florida. Our Company utilizes coal for over 99 percent of its total generation
requirements and consumes over 3,000,000 tons per year. Over 90 percent of
our coal deliveries are dependent upon waterway transportation.
In the past. Gulf Power has moved millions of tons of coal on both the
Tennessee-Tombigbee and the Black Warrior-Tombigbee Waterways or through
the Port of Mobile. Currently, we are importing a major portion of our
requirements through the Port of Mobile. This is expected to be an important
option for us as we require lower sulfur coal in the future. Also, the flexibility of
purchasing coal shipped on the Warrior-Tombigbee remains a major factor in
our coal procurement program. Gulf Power depends on using these waterways,
therefore, we totally support the need for adequate funding to properly maintain
and improve operations.
In order to provide reliable electric service at the most economical cost
to our customers. Gulf must continue to receive waterborne coal shipments. In
addition to ensuring that adequate fuel supplies can be transported to our
generating plants, the availability of waterway systems significantly contributes
to future industrial growth in our service area.
We are in full support of the efforts of the Black Warrior -Tombigbee
Development Association and ask that you give your full consideration to the
testimony of the Association's President concerning the need for maintenance
funding for the waterway system. We urge you to approve the Corps'
"Our business is customer satisfaction"
62
G. Edison -Ed' Holland, Jr
Representative John Myers -2- February 5, 1996
operating and maintenance budget request for $16.3 million to maintain the
Black Warrior -Tombigbee Watenway for fiscal year 1 997. In addition to the
requested O&M funds, the Corps of Engineers has deferred $4.6 million of
projects over the past hNO years, these improvements are needed to bring the
waterway efficiency to its expected level. We also support adequate funding for
maintaining the Mobile Harbor.
We feel that it is not only in Gulf Power's interest to support the
maintenance and improvement of these waterways, but also in the best interest
of the customers of our service area and the nation. The capability to transport
coal and other commodities via the Black Warrior -Tombigbee Waterway and the
Port of Mobile is vital to the economy of our region.
Sincerely,
MLG/dr
"Our business is customer satisfaction"
63
Henry Marine Service, Inc.
'6840 Oyster Bay Road (334) 968-8541
Gulf Shores, Alabama 36S42 FAX (334) 968^544
February 22, 1996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
For Energy & Water Development
U.S. House of Representatives
Washington. D.C. 20515
Dear Congressman Myers:
Henry Marine Service, Inc. highly supports the request for
funding in order to keep the running of the Warrior-Tomb igbee
Waterway efficient and reliable.
Even though we are a relatively smell company, sixty (60)
employees, compared to larger companies such as Warrior and Oulf
Navigation, the services we provide on the Warrior-Tombigbee
Waterway are vital in the process of the delivery of coal to Mobile
and beyond. We navigate the narrow waterways where the larger tugs
cannot operate and upriver from bridges that are to low for these
tugs to travel under.
We also have drydock and topside facilities In Mobile,
repairing the barges and tugs that navigate up and down the Alabama
waterways.
Without these waterways there would be no tugs, barges, coal,
etc., therefore no Jobs. Henry Marine Service depends on the
waterways to provide Jobs for our employees, thus providing homes,
food, clothing, etc. for more than sixty (60) families from Mobile
to Birmingham.
Thank you taking time to read this letter. I hope we can
count on your support on this matter.
AH:Jk
64
Jim \JJJ)aker resources, inc.
William Carr
President and
Chief Operating Officer
February 7, 1996
T+ie -Honorable John Myers, Chairman
House Subcommittee on Appropriations
for Energy and Water Development
U.S. House of Representatives
Washington. D.C. 20515
Dear Mr. Myers:
I would like to thank you for the opportunity to make a
statement to your Subcommittee. Please accept this letter as my
statement.
The Mining Division of Jim Walter Resources, Inc. currently
mines 8 million clean tons of coal per year. Of that amount, nearly 60%
of our production is exported. All of our export production goes
through the Port of Mobile. Our payroll for 2,337 employees last year
was in excess of $110,000,000 and taxes withheld and/or paid were in
excess of $34,000,000. It is obvious from these facts and figures that
this Company relies heavily on our waterways and port facilities and
that they are of the utmost importance to this Company, its employees
and the economy of the State of Alabama.
I strongly support the Corps of Engineers budget request for
$16.3 Million in Operations and Maintenance funds for the Black Warrior-
Tombigbee for FY 97. I also support the appropriation of adequate
Operations and Maintenance funds for Mobile Harbor. Our waterways and
port facilities provide economic prosperity to Alabama that is worthy of
your support. Further, I support the statements and testimony to be
given by Mr. Sheldon L. Morgan, President of the Warrior-Tombigbee
Development Association. I believe that the value of improved
efficiency and reliability of the Warrior-Tombigbee Waterway and Port of
Mobile cannot and must not be underestimated.
P.O. Box 830079 • Birmingham. AL 35283-0079 • (205) 554-6150 • FAX (205) 554-6161
The Honorable John Myers
February 7, 1996
65
JIM WALTER RESOURCES, INC.
The world coal business is at its most competitive level in
history. News of any problems, especially transportation and delivery
problems, is quickly spread by other coal producers around the world to
the buyers to discourage purchases here. A blemish on our delivery
record can have devastating, long-term effects from which we might never
fully recover. Buyers lost today may never return tomorrow.
Again, thank you for this opportunity to give my comments on
this very important matter.
Yours very truly.
i^X^u.^ ,
WC/kcl
66
Kimberly-Clark Mobii.i
Feb 19, 1996
The Honorable John Myers,
House Subcommittee on Appropriations
for Energy & Water Development
U.S. House of Representatives
Washington D.C. 20515
Dear Representative Myers:
Kimberly-Clark (K-C), formerly Scott Paper, began operations in Alabama with the
purchase of the Mobile Mill from Hollingsvk'orth and Whitney in 1953. Including the
acquisition cost, K-C has invested over $2 billion in the Mobile Plant and support
operations. This investment represents an average annual capital investment of $50
million.
A significant factor in the approval of capital invested in Mobile is the cost of
manufacturing pulp, which is approximately 50% wood cost. As you may well know,
Kimberly-Clark's transportation system is responsible for transporting approximately
80% of the wood requirement to Mobile and is a significant component of the existing