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."
SEE ALSO:Source: Think Progress, 07/02/2012