Cramer Statement on Obama's Plan to Review Federal Coal Program

Press Release

Congressman Kevin Cramer released the following statement today after the U.S. Department of Interior (DOI) announced its plan to review the federal coal program.

"These proposed rules are an attempt by this administration to shut down the industry as they pursue their War on Coal. There are North Dakota lease applications under review by the Bureau of Land Management and as a result of today's announced pause of the leasing program they may not be approved. With approximately 15 percent of the coal in North Dakota classified as federal, making the federal coal program more restrictive will be very expensive and lead to job loss in coal country. To mine around federal coal is very expensive and could ultimately make a mine economically unfeasible."

North Dakota is home to an abundant coal reserve that provides low-cost electricity to over two million customers in the Upper Great Plains, and supports over 17,000 jobs and $3 billion annually in economic activity. The coal industry contributes over $100 million in state tax revenues each year, approximately $13 million of which is directly returned to counties and schools. In 2013, federal coal royalties contributed an additional $500,000 to counties and schools. The counties that received these funds have populations under 10,000. Revenue from the mining and power industry provides essential funding for local government and education in these counties.

In North Dakota, federal coal consists mostly of small parcels comingled with private and state coal resources. Due to the relatively small amount of federal coal in North Dakota, and the significant cost to lease it, the current program provides a significant disincentive to pursue federal coal leases. This could eventually result in coal companies choosing to mine around the federal parcel, leaving the resource in the ground and providing zero return for the taxpayer. Furthermore, the federal government has little, and for the most part no, surface ownership over federal coal parcels. Therefore, mining companies can in many cases still disturb the surface above federal coal parcels to support mining of adjoining areas, resulting in mining and reclamation activity taking place without the financial benefit for the public.

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