The Federal Bureau of Land Management has been holding “listening sessions” on a proposal to raise lease rates on coal mined on federal lands.
One such session was held in Billings, Montana. North Dakota Public Service Commissioner Randy Christmann was there. He says he pointed out that BLM coal tracts in North Dakota are very small, surrounded by privately-owned or state-owned land. Christmann says even at current prices, BLM coal is not very lucrative.
"In one of our recent mine permits, the plan is to go around some BLM coal, because of the time it takes to get the permit and the leasing," said Christmann. "The surface will still be disturbed, but the BLM coal is going to be left behind."
Christmann says the rate of return if the coal is not mined is zero.
"That certainly is not a fair rate of return for the American taxpayers," said Christmann.
PSC Chairman Julie Fedorchak says it’s becoming a “patchwork” in some areas, as BLM land is being avoided because of the delays in permitting – and a potential increased cost.