Quantcast

Report Confirms Coal Companies Receive Massive U.S. Taxpayer Subsidies for Mining on Public Lands

Sierra Club

Photo courtesy of Shutterstock

Yesterday, the Department of Interior’s (DOI) Office of the Inspector General released a report confirming U.S. coal companies receive massive subsidies from U.S. taxpayers for mining leases on public lands. The Inspector General’s findings come on the heels of the Institute for Energy Economics & Financial Analysis 2012 report which revealed that the current Bureau of Land Management (BLM) leasing program cuts U.S. taxpayers out of billions of dollars in revenue.

Yesterday's Inspector General report faults the BLM for failing to take into account potential profits for coal export and for failing to follow an Interior Secretary Order intended to ensure unbiased evaluations of the fair market value for federal coal. 

The report explains, “Since even a 1-cent-per-ton undervaluation in the fair market value calculation for a sale can result in millions of dollars in lost revenues, correcting the identified weaknesses could produce significant returns to the government.”


Bill Corcoran, deputy director of the Sierra Club’s Beyond Coal campaign issued the following statement in response:

We are heartened by the DOI Inspector General’s thorough evaluation of the seriously flawed practices of the Bureau of Land Management’s coal leasing program. This report is the first step in giving Interior Secretary Sally Jewell the tools needed to facilitate a long overdue revamping of the BLM’s public leasing program.

The BLM has been operating outside of Secretarial orders for years, opening the floodgates for the fleecing of U.S. taxpayers by coal corporations to the tune of $30 billion of lost revenue. It’s a testament to how flawed the program truly is when 80 percent of coal leases granted by the BLM are done without a single other competitive bid, and companies like Peabody Energy consistently receive coal leases as low $1.10 per ton.

At a time when American families are still being asked to make difficult economic sacrifices, they are counting on our federal leaders to protect them from being short-changed by those who profit from skirting the law. Now, as we await the release of the Department of Interior’s investigation into coal royalties, we renew our call for a moratorium of all coal leasing on public lands. These federal agencies must get their houses in order to prevent predatory coal companies from further taking advantage of U.S. taxpayers and damaging our economy.

Visit EcoWatch’s COAL page for more related news on this topic.

——–

Click here to tell Congress to Expedite Renewable Energy

EcoWatch Daily Newsletter

beyond foto / Getty Images

By Kimberly Holland

Children who eat a lot of gluten in their earliest years may have an increased risk of developing celiac disease and gluten intolerance, according to a new study published in JAMATrusted Source.

Read More Show Less
Joe Raedle / Getty Images

By Jake Johnson

Calling the global climate crisis both the greatest threat facing the U.S. and the greatest opportunity for transformative change, Sen. Bernie Sanders unveiled today a comprehensive Green New Deal proposal that would transition the U.S. economy to 100 percent renewable energy and create 20 million well-paying union jobs over a decade.

Read More Show Less
Sponsored
orientalizing / Flickr

The Parties to CITES agreed to list giraffes on Appendix II of the Convention on International Trade in Endangered Species (CITES) today at the World Wildlife Conference or CoP18 in Geneva. Such protections will ensure that all giraffe parts trade were legally acquired and not sourced from the poached giraffes trade and will require countries to make non-detriment findings before allowing giraffe exports. The listing will also enable the collection of international trade data for giraffes that might justify greater protections at both CITES and other venues in the future.

Read More Show Less

The WHO stressed that more research is needed on the potential health risks of microplastic ingestion. luchschen / iStock / Getty Images Plus

The UN's health agency on Thursday said that microplastics contained in drinking water posed a "low" risk at their current levels.

However, the World Health Organization (WHO) — in its first report on the potential health risks of microplastic ingestion — also stressed more research was needed to reassure consumers.

Read More Show Less

Brazil's right-wing President Jair Bolsonaro is giving President Trump a run for his money in the alternative facts department.

Read More Show Less
Sponsored
Washington Gov. Jay Inslee delivered his 2019 State of the State address on Jan. 15. Governor Jay and First Lady Trudi Inslee / Flickr

Washington Gov. Jay Inslee, who made solving the climate crisis the center of his presidential campaign, is dropping out of the 2020 Democratic primary race.

Read More Show Less
Earthjustice

By Robert Valencia

In April 2018, Afro-Colombian activist Francia Márquez won the prestigious Goldman Environmental Prize, thanks to her work to retake her community's ancestral territories from illegal gold mining. However, her international recognition comes at a very risky price.

Read More Show Less

By Stuart Braun

A year after activist Greta Thunberg first stood in the rain outside the Swedish parliament with her now iconic "Skolstrejk för klimatet" — school strike for the climate — placard, the movement she spawned has set the tone for environmental protest action around the world.

Read More Show Less