WildEarth Guardians

Tuesday, June 11, 2013
Interior Department Investigation Reveals Corruption in Coal Program

Call for Coal Moratorium Renewed
Contact: Jeremy Nichols (303) 437-7663

Washington, D.C. — An Interior Department Inspector General report released today found the U.S. Government is not taking into account the true cost of coal when leasing, shortchanging American taxpayers and fueling the climate crisis, spurring WildEarth Guardians to renew its call for a moratorium on new coal leasing.

“The Interior Department is putting the coal industry and its profits ahead of safeguarding our climate,” said Jeremy Nichols, WildEarth Guardians’ Climate and Energy Program Director.  “This report is an alarming revelation that the real cost of coal is being ignored, allowing coal companies to reap windfall profits and churn out more greenhouse gases.”

The Interior Department manages all federally owned coal and is the largest coal provider in the U.S.  In 2012, more than 422 million tons of coal production was overseen by the Department.  The majority of this coal came from the Powder River Basin of northeastern Wyoming and southeastern Montana, the nation’s largest coal producing region, as well as other western states.  In the last four years, the Interior has sold more than 2 billion tons of coal from the Powder River Basin to companies like Arch and Peabody, which is slated to be strip mined.

This coal is inevitably burned in power plants, releasing massive amounts of carbon pollution.  While Powder River Basin coal fuels more than 200 power plants in the U.S., companies are increasingly exporting coal abroad to be burned in Asia and Europe.  Every year, coal from the Powder River Basin coal produces nearly 750 million metric tons of carbon pollution.

Among other things, the report found that the Interior Department’s Bureau of Land Management is failing to account for the price of exported coal when selling leases, as well as failing to ensure independent oversight of its assessment of coal value in accordance with a 2010 Interior Secretary Order.

The report also roundly criticized BLM’s coal inspection and enforcement program.  The report found that inspections are inconsistent and that the BLM lacks enforcement tools to deter violations of coal leasing and mining rules, particularly environmental protection requirements.

“The BLM is subsidizing a coal giveaway and worse, turning its back on the impacts to our environment,” said Nichols.  “At the end of the day, that only hurts American taxpayers and our western lands.  The Interior Department has to put the brakes on this corrupt coal leasing program; it’s time for a moratorium.”  

The report provided 13 recommendations to the BLM for improving the integrity of its coal leasing program.  Although the BLM agreed with the recommendations, the report notes that none of them have been implemented.

Earlier in the spring, WildEarth Guardians joined other groups in calling on new Interior Secretary, Sally Jewell, to impose a moratorium on new coal leasing given a number of signs that the Interior’s coal program is sorely in need of reform.  

WildEarth Guardians has been leading efforts to challenge new coal leasing in the Powder River Basin, as well as other areas of the west, by Interior, exposing the fact that the government’s leasing decisions are undermining our national climate goals, irreparably degrading our air and water, and shortchanging the American public.  

Despite clear indications that the coal program is severely flawed, the Bureau of Land Management is continuing to move forward on dozens of new coal leases in the American West. 

“Interior can’t continue to ignore the writing on the wall; we need real reform of the coal leasing program and a commitment from the Department to stop putting the American public’s pocketbooks and environment at risk through shady coal leasing deals,” said Nichols.  “It’s time for a moratorium and it’s time for Sally Jewell to take responsibility for confronting the true cost of coal here in the U.S.”