Coal revenue

Bob Beck

Wyoming lawmakers continue working on a bill that would allow the state to look into purchasing a million acres of land in southern Wyoming.  

The swath of one million acres of land in southern Wyoming is currently owned by Occidental Petroleum and doesn't include any private or federal land.

Four likely scenarios forecasting the next few years
Rob Godby

Gov. Mark Gordon announced an effort called Power Wyoming this week to study new revenue scenarios for Wyoming. The group presented data to the legislature's Joint Revenue Committee showing the state can no longer rely on revenues from the energy industry.

Forecasted revenue from different versions of the bill
Legislative Service Office

Wyoming's Joint Revenue Committee let a bill die without a vote that would have levied a tax on electricity generation whether it's coming from coal, hydroelectric, or wind. Members of the committee considered the Electrical Generation Tax as a way to generate additional funds for the state which is looking at a major budget deficit. This bill could have raised funds ranging from $3 million to $190 million per year.

Office of Governor Matt Mead

The accounts that fund education saw an unexpected revenue boost, which brought the predicted education shortfall from $400 million down to $250 million, according to Governor Matt Mead.

 

Mead said coal is coming back — along with oil and gas — but he cautioned the state is still running short on funds. He added that means the legislature will have some hard work to do during the 2018 Budget Session, as they consider further budget reductions or alternate revenue through new taxes.

 

One of the world’s largest coal companies has withdrawn its application for a federal coal lease in the Powder River Basin. Arch Coal’s move is part of a bigger slow down in sales of Wyoming coal leases. According to the Bureau of Land Management, there are currently six leases pending. But the last one that was actually sold was in 2012. 

creative commons

The US government isn’t getting the full fair market value from coal lease sales on public lands. That’s according to a report released today by the Department of the Interior’s Office of Inspector General.


The report says recent lease sales potentially undervalued the coal by $62 million. The Bureau of Land Management appraises the leases instead of using the DOI’s Office of Valuation Services like its rules say it should, and the BLM does not take into account increased exports of coal abroad.