Lummis to Jewell: Let Wyoming Keep Its Jobs, Education Dollars

Statement

Today U.S. Representative Cynthia Lummis (WY-at large) joined a rally in Gillette, Wyoming to fight Secretary of the Interior Sally Jewell's move towards an increase in the federal coal royalty rate. The rally immediately preceded the Bureau of Land Management's (BLM) Gillette "listening session" on coal royalty rates which Rep. Lummis also attended. The first listening session was held in Washington, D.C. on July 29

"Madam Assistant Secretary, Deputy Director Lance, and Deputy Division Chief Elser, thank you for being here. We know you're holding these sessions because Secretary Jewell wants to have an honest and open conversation about the federal coal program. I want you to know that you've definitely come to the right place.

"The mineral leasing act obligates the BLM to maximize the value of federal coal for the taxpayer. On this much, we all agree. And Wyoming BLM has done a terrific job over the years on securing a return for the taxpayer. But you get no value out of coal by keeping it in the ground--and that is exactly what your colleagues at the EPA are doing with its power plant rule. The EPA's own estimates say American coal production will tumble under its power plant rule by 6% in 2020, by15% in 2025, and by 22% in 2030.

"Now, this is due to a variety of factors but one of them is an EPA rule forcing the closure of power plants that use our most abundant, reliable, and affordable fuel--and that is coal. That's a 22% cut in federal royalties, in the state share, in severance taxes, in funding for public services and school districts, and in well paying coal jobs supporting hard working families right here, like the people in this room.

"And while we're having this open dialogue and honest conversation, I really want to know, we want to know, why Secretary Jewell told a group of people at headquarters in Washington, D.C. that she wants to pursue the President's climate objectives in the federal coal program. The President has shown by his actions that his objective is to keep as much coal as possible in the ground. Now I want to invite secretary Jewell to come to Wyoming and explain to us how that is consistent with her fiduciary responsibility under the Mineral Leasing Act to maximize the return on federal coal.

"I also want to take a minute to dispel any notion that a coal royalty hike has been called for by the recent Government Accountability Office and Inspector General reports on the federal coal program. Both of those watchdogs examined the coal program, found some deficiencies, and made some recommendations. And the BLM is in the process of implementing those recommendations, as they should, but neither the GAO nor the Inspector General report recommend a royalty rate increase, or even that the department should be examining royalty rates.

"Secretary Jewell should stick to what the GAO and IG reports actually say, not stray from the mission under the mineral leasing act by turning the federal coal program into a global warming program.

"If the President wants to raise power costs on the poor and middle class and make our grid less reliable, he doesn't need royalties and taxes to do it. He has the EPA.

"My message today is this: Secretary Jewell, let the people of Wyoming, the largest exporter of energy in America, keep their jobs, keep educating their children, and keep the lights on across this country.

"Thank you very much."

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