NMA Condemns Administration’s Coal Lease Policies as Damaging to Jobs, Communities and Taxpayers
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The National Mining Association has condemned the Obama administration’s politically contrived coal lease policies as damaging to jobs, communities, and taxpayers.
Days before leaving office, the Obama administration has once again advocated policies designed solely to destroy America’s coal industry in the face of a political referendum favoring good jobs and affordable energy. Instead of the open and honest conversation promised by the administration on federal coal leasing policies, the report predetermines outcomes before the program review has been completed.
“The Secretary of the Interior’s purported rationales to overhaul the federal coal lease program rest on politically contrived reasoning that will result in less federal and state revenue, the loss of more high-wage jobs as well as an indispensable source of affordable electricity for millions of families,” said Hal Quinn, president and CEO of NMA.
The secretary has outsourced the department’s energy and land management responsibilities to “keep it in the ground” activists by blithely accepting their unsupported contentions, beginning with the long-rejected notion that the current leasing system fails to deliver a fair return. In fact, bonus bids paid for leases have outpaced the increase in coal prices. Detailed analyses by Norwest Corp. show federal royalty rates are 30-65 percent higher than prevailing rates for private coal, where bonus bids are seldom paid as they always are on federal coal. In the major federal coal leasing region, the combination of leasing fees, royalties and taxes amounts to payments of 39 percent of revenues for federal coal producers, which are in addition to any corporate taxes paid on any final profits.
“If the administration was sincerely interested in increasing revenue, it would lift its moratorium on federal lease sales and commit to an efficient process that optimizes, rather than reduces, the benefits that flow to every American from the development of the nation’s federal coal resources. Frankly, most of the policies suggested by the secretary are beyond the power of the executive branch as she conceded earlier in her tenure. Fortunately for coal miners and energy consumers, the coal leasing moratorium can be terminated on day one of the new administration,” added Quinn.
About NMA
The National Mining Association (NMA) is U.S. mining’s advocate in Washington, D.C. and beyond. NMA is the only national trade organization that represents the interests of mining before congress, the administration, federal agencies, the judiciary and the media — providing a clear voice for U.S. mining. NMA’s mission is to build support for public policies that will help America fully and responsibly utilize its coal and mineral resources. Headquartered in Washington, D.C., NMA has a membership of more than 300 corporations and organizations involved in various aspects of mining. NMA provides a forum for these diverse industry segments to be informed, heard and represented.
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