BLM 'Auctions' 720-Million-Tons of Coal To Single Bidder For $1.10/Ton

"The Obama administration's Bureau of Land Management auctioned a major tract of Wyoming coal to Peabody Energy at a bargain-basement price of $1.10 per ton yesterday."

"The North Porcupine coal tract in the Powder River Basin went to the single bidder, Peabody subsidiary BPU Western Resources, for $793,270,310.80 for 721 million tons, BLM representative Beverly Gorny stated in a telephone interview.

This sale, made under the provisions of the Mineral Leasing Act of 1920, represents a massive fossil-fuel subsidy based on the assumption that the use of coal benefits the American public. However, it is likely this coal is intended for the Asian market, where sub-bituminous coal fetches a much higher price. The non-competitive leasing program is under federal investigation."

Brad Johnson of Forecast the Facts reports for Think Progress June 29, 2012.

SEE ALSO:

"Thermal Coal Prices Hit Two-Year Low" (Financial Times)

"COAL: Swelling Exports Shine Spotlight on Port Pollution" (Greenwire)

"Coal Clash: Proposed Northwest Export Terminals Face the Risky Business of Global Energy Markets" (Portland Oregonian)

"Coal Clash: the Powder River Basin, Where Coal Is King" (Portland Oregonian)

"Coal Clash" Portal Page (Portland Oregonian)

"Sierra Club Report Challenges Coal Theories" (EnergyBiz)
 

Monday, July 2, 2012