"Federal coffers are missing out on what could be billions of dollars in lost revenue due to shoddy accounting work by the office that handles leases for coal mines on public land, according to a report made public today by the investigative arm of Congress."
"The Government Accountability Office was asked by Senator Ed Markey (D-Mass.), a stalwart climate hawk, to look into whether the Interior Department's Bureau of Land Management routinely sells leases to coal mining companies for far less than their market value. Investigators found that BLM agents in Wyoming (by far the country's largest coal producer) set prices based on coal's historic value, but, in contradiction of the department's own rules, fail to take into account how much it will likely be worth in the future. Similar problems were found in other coal-producing states. As a result, the GAO report claims, many leases were sold far beneath their true market value, depriving taxpayers of additional royalties (which, as it stands, come to about $1 billion per year) that are normally skimmed from the mines' profits."
Tim McDonnell reports for Mother Jones February 4, 2014.
SEE ALSO:
"Coal Leasing: BLM Could Enhance Appraisal Process, More Explicitly Consider Coal Exports, and Provide More Public Information" (GAO)
