HD27 - Report of the Joint Study Committee Studying the Feasibility of Establishing a Coal Slurry Pipeline in the Commonwealth and the Utilization of Virginia Coal

  • Published: 1984
  • Author: Joint Study Committee Studying the Feasibility of Establishing a Coal Slurry Pipeline in the Commonwealth and the Utilization of Virginia Coal
  • Enabling Authority: House Joint Resolution 117 (Regular Session, 1983)

Executive Summary:
Pipelines for carrying fluids of all types including solid materials slurried with water have been known and used commercially a long time. Coal slurry pipelines have been in the public eye in the United States since the early 1960's.

In the middle fifties (initial operation in 1957), there was built and operated the first commercial coal slurry pipeline (CSP) in the United States. That line, the Cadiz line, was built in Ohio to serve the Cleveland Illuminating Company. This line was built without the use of the power of eminent domain, although it was available through Ohio statute to the corporation had such power been needed. The Cadiz pipeline remained in operation for about 5 years and was shut down when the competing railroads met the pipeline rates and underwrote the completion of the purchase of the pipeline.

There is one coal slurry pipeline in operation today. The Black Mesa line carries coal from a mine in Arizona to an electric power station in Nevada. This line was also built without the use of eminent domain and was constructed through terrain which would have made railroad construction impractical.

Since 1962 there have been numerous attempts to have Congress pass legislation which will empower coal slurry pipeline corporations to use federal eminent domain powers similar to those used for petroleum and natural gas pipelines. Such legislation would have pre-empted all state-imposed limitations. The last such effort resulted in a defeat by the House of Representatives in September, 1983, and thus there is no pending coal slurry pipeline legislation before Congress.

It was in 1962 that the General Assembly of Virginia first addressed the coal slurry pipeline issue. At that time there was no mention of coal slurry pipelines in the Virginia Code and there was interest from out-of-state corporations to build a line through Virginia. Also in 1962 West Virginia passed legislation to allow eminent domain powers to be used to construct coal slurry pipelines. A bill was introduced in Virginia to empower coal slurry pipeline corporations to use eminent domain. During the committee process, the bill was amended to prohibit such use of eminent domain, and the resulting measure passed both Houses and became law on July 1, 1962.

Last year, two bills (H.B. 262 and H.B. 514) were introduced to the 1982 General Assembly, both of which would have resulted in the repeal of the prohibition passed in 1962. Neither of these bills was reported from committee. Instead, there was a resolution (HJR 117) passed to authorize a study of the coal slurry pipeline issue. A copy of HJR 117 is Appendix A of this report.