coal royalties

Stephanie Joyce / Wyoming Public Radio

New rules from the Department of the Interior aim to close what many have called a loophole in how federal coal resources are valued.

Most of the coal mined in Wyoming is owned by the federal government. Companies pay royalties for the right to mine that coal—in theory, 12.5 percent of the sale price.

The Bureau of Land Management

 

Regulators heard from all sorts of people, from firefighters to business owners to coal miners, at a meeting in Grand Junction, CO today on potential reforms to the federal coal program. 

Center for American Progress

Proposed changes to the way coal royalties are calculated are proving controversial, with coal companies coming out strongly against them and taxpayer advocacy groups saying they don't go far enough.

A new report by the Government Accountability Office says the Bureau of Land Management’s coal lease valuation program is ‘out of date.’ The report says BLM offices around the country are not consistent in the way they calculate fair market value, don't always document the rationale behind accepting low bids and do not use independent reviewers to ensure calculations are correct.

It also says the BLM does not properly consider the export potential of coal when calculating fair market value of coal leases.