WorldWide Drilling Resource

Federal Coal Program Under Review Adapted from a Information by the U.S. Bureau of Land Management Coa has been an mportant domest c energy source for decades, and the federa government p ays a major ro e n fac tat ng and regu at ng u.S. coa product on. A - though federa ands supp y rough y 40% of a u.S. coa product on, current regu at ons and procedures govern ng the federa coa program are outdated and need to be re- v ewed. In 1983 and 1984, Congress estab- shed a comm ss on to nvest gate fa r market va ue po c es for coa eas ng, and requ red a study of whether the coa eas- ng program was compat b e w th nat ona env ronmenta protect on goa s. The Inter or Department fo owed these reports w th a supp ementa Programmat c Env ronmenta Impact Statement on the federa coa program wh ch was comp eted n 1986. Fast foward to March 2015, when Secretary of the Inter or Sa y Jewe ca ed for an open and honest conversat on about mod- ern z ng the federa coa program, and she aunched a ser es of sten ng sess ons across the country to hear from the pub c. As a resu t of the pub c sess ons, Secretary Jewe s aunch ng a forma , comprehens ve rev ew of the federa coa program. Wh e the rev ew s underway, Secretary Jewe has ordered a pause on s gn f cant new coa eas ng dec s ons on pub c ands so the eases w benef t from the rev ew. Th s rev ew w take a ook at ssues re ated to the Bureau of land Management s (BlM) adm n strat on of the federa coa program, pr mar y: j The appropr ate eas ng mechan sms to determ ne how, when, and where to ease. j How to account for the env ronmenta and pub c hea th mpacts of the coa program. j How to ensure the sa e of these pub c resources resu ts n a fa r return to theAmer can taxpayers, nc ud ng whether current roya ty rates shou d be adjusted. j Whether u.S. coa exports shou d factor nto eas ng or other program dec s ons. j How the management, ava ab ty, and pr c ng of federa coa mpacts domest c and fore gn markets and energy portfo os. j The ro e of federa coa n fu f ng the energy needs of the un ted States. The pause w not app y to ex st ng eases or coa product on act v t es. Based on current product on eve s, coa compan es have approx mate y 20 years of recoverab e coa reserves under ease on federa ands. Dur ng th s t me, the BlM w not ho d ease sa es or process new ease app cat ons for surface and underground coa . There w be m ted, commonsense exempt ons for sma ease mod f cat ons (160 acres or ess), coa ease exchanges, certa n preference r ght ease n- terests, and emergency eas ng as def ned by the BlM s current reg- u at ons. Preparatory work on current y-pend ng app cat ons may cont nue, but the BlM w not make f na dec s ons on new eases. Th s does not app y to meta urg ca coa (used n stee product on), renewa s of ex- st ng eases, or other BlM, Off ce of Surface M n ng, or Off ce of Natura Resources Revenue act ons re ated to the federa coa program, such as m ne p an approva s. The pause a so does not app y to coa eases on tr ba or a otted ands. The Interior Department does not expect this pause to significantly alter current production since companies will be able to continue mining the large reserves of un- developed coal already under lease. What do you think? Wyoming’s Powder River Basin is the largest coal-producing area in the United States. 42 MARCH 2016 WorldWide Drilling Resource ®