Presentation Of Robert E. Murray Chairman, President and Chief Executive Officer Murray Energy Corporation Before the Conservative Political Action Conference 2015 Climate: What Tom Steyer Won?t Tell You February 26, 2015 National Harbor, Maryland Conservative Political Action Conference 2015 Climate: What Tom Steyer Won?t Tell You Good afternoon, Ladies and Gentlemen. Thank you for inviting me to be a part of the Energy and Climate panel at CPAC 2015. The availability, supply reliability and cost of electric power, a staple of life, is being destroyed in America today. Our citizens on ?xed incomes will not be able to pay their electric bills, and our manufacturers of products for the global marketplace will not be able to compete. This is because the American coal industry has been extremely devastated and partly permanently destroyed in the past ?ve (5) years by the increased use of natural gas to generate electricity, the depressed domestic and international economies, and, primarily, the regulatory rampage of the Administration of President Barack Obama and his bureaucrat appointees and political supporters. And, in our opinion, the worst is yet to come. The Obama administration promulgated 300 new regulations in the ?rst week of this year. Regulations issued by the Obama Environmental Protection Agency alone in the past ?ve (5) years total 25,000,000 words on 25,000 pages. This is thirty-eight (38) times the length of our Holy Bible! As a result of this, a new, expert, independent study shows that forty- three (43) states will soon face double digit electricity cost increases, with fourteen (14) states exceeding twenty percent increases in peak years. Prior to the election of President Obama, coal provided ?fty-two percent of the electricity generation in our Country. Today, it is thirty-seven percent In our judgment, it will further decline to about thirty percent at a maximum. Coal generates electricity at a cost of about four cents per kilowatt hour at the plant. Mr. Obama and his appointees want to replace it with ?fteen cent per KWH natural gas and twenty-two cent per KWH wind and solar power, the latter receiving a huge subsidy from you, the US. taxpayer. To date, 411 coal-?red power plant units have been designated for closure through 2016. That is 101,000 megawatts of the lowest cost electricity in America. This includes forty-six (46) thousand megawatts due to the Obama Clean Power Plan (global warming/002) and ?fty-?ve (55) thousand megawatts of plant closures already announced as a result of existing EPA programs, including the Mercury and Air Toxics Standards rule. Since the earth has actually cooled for the past eighteen (18) years and ?ve (5) months, the ?global warming? that President Obama and his Democrat supporters point to as their reason for the devastation of coal and our Country is not occurring. What is happening is ?a political power grab of America?s power grid?. If one wants to radically transform our Country, how better to do it than to get control of the availability, reliability, and cost of electricity, a staple of life. In these illegal actions, the Obama Administration has not only by- passed Congress, but also the Federal Energy Regulatory Commission and, particularly, the States and their Public Utility Commissions, which are empowered to regulate the availability and cost of electricity. This puts the Obama EPA in charge of our electricity supply! Our poor families and citizens on ?xed incomes will not be able to pay their electricity bills. I grew up very poor, as my father was paralyzed from the neck down in an accident when I was nine (9) years old, and I have great compassion for those in our society who cannot help themselves. And, manufacturers of products that must compete in the global marketplace will not be able to do so because of the soaring electricity costs. But, this is only part of this horrible story. During the polar vortex of early last year, the PJM Interconnection, which supplies electric power to sixty-one (61) million Americans in thirteen (13) states, came within 700 megawatts of reducing loads. Indeed, the Obama EPA has forced the closure of 7,150 megawatts of power in the American Electric Power system by April, 2016, and AEP was pulling on this generation at eighty-nine percent during that cold weather. Yet, China, which has been building a new 500 megawatt coal-?red plant every week for years, burned about 4.0 billion tons of coal last year. All of this destruction will have virtually no bene?t to the environment or so- called global warming. Indeed, if all of the coal-?red power plants in the United States were closed, the world?s temperature would only change by two hundredths of one percent Murray Energy has ?led four (4) lawsuits against the Obama EPA, and they are now recognized as the leading cases against the regulatory assault. We have been joined in them by nine (9) states in amicus ?lings. Recently, two (2) Federal courts, including the U. S. Court of Appeals for the Districts of Columbia and the Northern West Virginia District Court, upheld our lawsuits by overriding EPA motions against them and allowing them to proceed. Our lawsuits are the ?rst in the Nation to potentially invalidate the entire ESPS Rule on so?called ?greenhouse gases?. Also, our Company is participating in two (2) other lawsuits against the Obama EPA with thirteen (13) states. The United States Supreme Court on November 25 agreed to review the rule limiting mercury and other toxic emissions from power plants. This was in response to requests from twenty-three (23) states and many industry groups. The Obama Administration rules applied to America?s coal-?red power plants are only some of the ways that they and their Democrat supporters are attempting to shut down the coal industry. They are pushing forward in other, lesser known, ways to destroy us. To all of this destruction by the Obama EPA, the American Electric Power Company recently stated that the EPA proposal ?has unrealistic requirements with unworkable implementation?. The Company added that, in its service territories, much of the required reductions in emissions would need to be satis?ed by increasing ef?ciencies and renewables use to levels that cannot be achieved. AEP also further stated ?No state in their right mind would try to come up with an emissions trading program under this construct because there is too much room for EPA to second-guess them?. Again, the Obama EPA is usurping the State Utility Commissions and the Federal Energy Regulatory Commission functions in their rulemaking. Duke Energy Corporation, Dominion Resources, Inc., and AEP all submitted comments to the Obama EPA late last year opposing the Administration?s Clean Power Plan. Among their complaints was the extreme inconsistency that will exist among the states as they attempt to comply with the Plan. Last year, FirstEnergy Corporation said that the Obama ?war on coal? (their words) is ?designed to achieve a social agenda that has little, if anything, to do with maintaining electric service, and is undermining our nation?s competitive position?. The Republican member of the Federal Energy Regulatory Commission expressed his alarm by stating ?We got a lot of power plants that are going to be shutting down (on April 16, 2015) all of them were running as best they could during the (recent) cold snap. And, so if that isn?t a sobering wake-up call to policymakers, nothing short of a massive blackout would be.? We must understand that the Obama EPA is under the direction of the Sierra Club, Natural Resource Defense Council, and other Many of the Obama EPA appointees came from the radical environmental groups. Recent investigations by independent parties are revealing illegal collusion between these and the Obama government, as well as the violation of our federal tax laws, particularly by the Sierra Club. Speaking of the Sierra Club, this organization spent twenty-seven (27) million dollars on its ?Beyond Coal? campaign in 2012 and 2013. It spent more in 2014 as more contributors embraced the climate change hoax, including $98 million from Michael Bloomberg, former New York mayor, $51.5 million from Aubrey McClendon, former Chief Executive of natural gas producer Chesapeake Energy, and a huge sum from Paul Allen, the owner of the Seattle Seahawks football team. Bruce Nilles, Director of the Sierra Club campaign against coal, recently said, think folks realize, yes, the industry is stumbling and Bloomberg has described it as a ?dead man walking,? but now is the last possible moment you?d ever want to take your foot of the gas,? ?Folks are saying, ?Let?s get it done.? What Mr. Nilles is advocating is the destruction of reliable low cost electric power in America for no environmental bene?t whatsoever. The coal industry not only has strong opponents in the Obama Administration, among most Democrats, and from radical environmentalists, Hollywood characters, liberal elitists and some unions, some of the Country?s largest electric utility companies have demonstrated their opposition to continued coal usage for electricity generation. They have done this to achieve market advantages, and some of them are Exelon Corporation, Calpine Corporation, and Dynegy, Inc. We do not believe that their misguided advocacies are in the best interests of our citizens and Country. The global ?climate change? scare is purely political and not based on any science. Consider that: According to NASA satellites and ground-based temperature measurements, the earth has not warmed for the last eighteen (18) years and ?ve (5) months. But, 00:: levels have risen almost ten percent since 1997. Seventy percent of the years since the Ice Age were warmer than today. The past year was not the warmest on record, as Mr. Obama claimed during his State of the Union address, which I attended, on January 20. There has been a decline in the world land area under drought in the past thirty (30) years. Rates of sea-level rise remain in?nitesimal, averaging only about one (1) millimeter per year as measured by tide gauges. Satellites show that a greater area of Antarctic sea ice exists now than any time since space-based measurements began in 1979. A 2012 and 2013 IPCC reports concluded that there has been no signi?cant increase in either the frequency or intensity of extreme weather events in the modern era. Now we have another United Nations climate summit looming. The Obama Administration is pursuing what it calls an ?accord?, rather than a treaty, which our Congress has refused to approve. As with all other ?summits? held since the 1990?s, it will result in another round of coal bashing. Other facts about the availability, reliability, and affordability of electricity and so called ?global warming? are: 0 Australia recently repealed its carbon tax. It caused $15 billion in damage to its economy in its ?rst two (2) years of implementation. 0 Nearly half of the world?s seven (7) billion people live without proper access to energy for basic needs. A total of 115 million American?s qualify for energy assistance. 0 In California, power prices are forty percent higher than the US. average, businesses are exiting at a 3:1 ratio, and 700,000 manufacturing jobs have been lost since 2000. The European Union renewable energy mandates caused a ?fty- ?ve percent increase in residential rates and twenty-six percent increase in industrial rates. The United States has the ?nest electricity system in the world, with prices half of those in Europe. Our system is under attack from the Obama govemment?s foolish policies. We are truly ?running on empty?. But, Mr. Obama's actions are a human issue to me, as I know the names of many of the Americans whose jobs and family livelihoods are being destroyed as he appeases his radical environmentalist, liberal elitist, Hollywood character, some unionist, and other constituents. These Americans, you see, are my employees and their fellow workers. These good Americans only want to work in honor and dignity. But, when their jobs and those of their neighbors are eliminated in the coal mining areas of America, they have no one to sell their homes to, which are generally their only possession. Thus, these people are prohibited from working and fall to the negative side of the economic ledger for the rest of their lives. This is not the America that I have always cherished! Well, despite President Obama telling us in his State of the Union address that he will use more unilateral authority to bypass Congress, elected representatives, and U. S. Constitution to carry out his agenda against coal, I am obviously not giving up. Nor should you. We have the law, science, economics, cold hard energy facts and the Constitution on our side. Our cause is right. It is right for our industry, communities, and America. We must use these realities to ?ght our opponents? intent on destroying coal for their own bizarre personal and political ends. We must continue to do whatever we can to overcome the insanity of our current government. Thank you for your invitation to speak today. MURRAY ENERGY CORPORATION was. Robert E. Murray Chairman, President and Chief xecutive Of?cer