Biden Wants End to New Leases for Coal Extraction

The Biden administration recently announced that it would be terminating new coal leasing in the Powder River Basin of Montana and Wyoming. This geologic structural basin is the biggest coal-producing region in America. It is comprised of the North Antelope Rochelle mine and the Black Thunder coal mine.

Overall, the state of Wyoming is the largest producer of coal in the United States, making up 41% of the nation’s total supply for coal. Coming in second is the state of West Virginia, accounting for 14% of total coal supplied. In recent years, the region has also become a major producer of natural gas.

The recent announcement regarding coal leasing was made by the U.S. Bureau of Land Management in response to a suit filed by environmentalists. The administration’s decision follows a ruling made earlier in the year that repealed an Obama-era ban on new coal leasing.

The Wyoming field office under the agency conducted an environmental study before making its decision, noting in its report that new coal leasing would greatly affect human health and the overall climate of the region. In the conclusion, the field office noted that this was primarily because of coal being burned at the plants.

Environmental groups involved applauded the administration’s decision, estimating that roughly six billion tons of coal would remain underground and, in turn, help reduce pollution. In a statement, Mark Fix of the Northern Plains Resource Council stated that the plan to terminate coal leasing reflected the reality of coal markets today.

The White House administration expects that its decision will fuel protests from coal-producing states such as Wyoming as well as the industry as a whole. This could be because the new rule will limit access to new markets for states such as Wyoming, whose coal industry has, for a while now, been struggling as more cities on the West Coast ban power generation using coal.

It is important to note, however, that the new rule will not bar companies from developing federal leases that have already been issued.

In a recent statement, GOP Senator John Barrasso claimed that the Biden administration was waging war on coal families and communities in the state. This, the Wyoming senator noted, would cost the state hundreds of millions of dollars used to pay for roads, public schools and other necessary services while also reducing job opportunities.

Associations in Wyoming have 30 days to file formal protests against the recent decisions made concerning Powder River Basin.

As more jurisdictions move to stop issuing leases for coal extraction, major producers such as Warrior Met Coal Inc. (NYSE: HCC) could find themselves having fewer areas in which to conduct coal-extraction operations.

About MiningNewsWire

MiningNewsWire (“MNW”) is a specialized communications platform with a focus on developments and opportunities in the Global Mining and Resources sectors. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled recognition and brand awareness.

MNW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.MiningNewsWire.com

Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer

MiningNewsWire
Los Angeles, CA
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com

MiningNewsWire is powered by IBN