Coal suspension affects 30-plus mining projects — APNewsBreak

The move is potentially a major economic blow to the coal industry, allowing companies to continue operating under existing leases in the coming decade but freezing negotiations over future leases that could discourage investors from putting more money into the ailing coal industry.

And though environmentalists generally praised the announcement, some noted that the administration could still do more to regulate – or completely end – fossil fuel development on public lands. However, the federal review – which will include an assessment of the land, water, air and climate impact of mining and burning the coal – is seen as a powerful tailwind to the industry’s downward trajectory. The policy change is likely to make the leases more expensive for mining companies, to generate increased royalties for the government, and to offset the damage coal production and consumption do to the environment. “I will do everything I can do stop President Obama’s radical effort to shut down Montana coal”.

“It’s important to get all the facts on it so we could have a good discussion on it”, he said.

“Despite the impediments of above-market royalty rates and job-crushing red tape, the coal supply being cut off by today’s action has been the source of the lowest cost and most reliable electricity keeping America’s lights on and people working”, said Quinn.

My first GAO review found that the Reagan Administration had sold coal in the Powder River Basin for roughly $100 million less than it was worth.

The decision will add further delays to the Alton coal mine expansion in southern Utah, where operators sought a 3,500-acre federal tract to mine as much as 45 million tons of coal.

The United States needs to “change the way we manage our oil and coal resources, so that they better reflect the costs they impose on taxpayers and our planet”, U.S. President Barack Obama said in his State of the Union address on Tuesday.

The DOI review is expected to take about three years to complete.

Critics say that not only are coal companies short changing the American taxpayer, but that the entire process lacks transparency.

The leasing reform quickly faced a backlash from Republican lawmakers who represent coal states.

Michael Brune, executive director of the Sierra Club, applauded the administration’s action.