WASHINGTON, D.C. – The Obama administration issued a moratorium Friday on new coal mining leases on federal lands to review the merits of the decades-old program.
In announcing the decision, Secretary of the Interior Sally Jewell said that the moratorium would allow the Interior Department to conduct what she called a “comprehensive review of the program” to gauge concerns about low-cost leases and pollution.
“Given serious concerns raised about the federal coal program, we’re taking the prudent step to hit pause on approving significant new leases so that decisions about those leases can benefit from the recommendations that come out of the review,” Jewell said in a statement.
The review process is expected to take about three years and will focus on environmental and financial impacts.
Supporters of coal leases say they provide jobs and revenue for states and the federal government. Opponents worry about the environmental impact of coal and are concerned that the government is undercompensated for its leases.
The moratorium will not affect existing leases, which Interior Department estimates say should be able to sustain their levels of production for “approximately 20 years.” About 40 percent of the nation’s coal is mined from public lands.
At least 30 mining applications in nine states would be blocked, according to a BLM list obtained by The Associated Press. Some of the largest projects are in the Powder River Basin of Wyoming and Montana, the nation’s top coal-producing region.
Rep. Scott Tipton, R-Cortez, said the moratorium “jeopardizes America’s energy future” and would affect communities that rely on coal for energy and jobs.
“This decision reeks of contempt for rural America and for the most vulnerable Americans who will suffer as electricity prices increase and the reliability in the grid decreases. We will continue to fight to protect Americans from the president’s war on affordable energy,” Tipton said.
According to the BLM, more than 88,000 acres of public lands in Colorado were leased to coal mining companies in 2014.
Stuart Sanderson, president of the Colorado Mining Association, said that the moratorium would directly affect the state’s economy. Sanderson said that although coal provides 40 percent of U.S. electricity, it provides 60 percent of Colorado’s power.
“I think this regulation threatens the forms of affordable energy for our nation, and it will also cause harm in rural Colorado,” Sanderson said.
Sanderson said Colorado coal producers paid nearly $37 million in federal royalties in 2014, a number that would decline under a moratorium.
Environmental groups view the moratorium represents a further commitment to curtailing greenhouse gas emissions.
Erin Overturf, the senior staff attorney for Western Resource Advocates, a nonprofit conservation organization, said the temporary moratorium to review the program was long overdue.
“It’s been 30 years since the administration undertook an evaluation, whether the leasing program is good for the environment and whether it’s good for customers,” Overturf said.
Overturf added that the moratorium would limit the amount of coal flooding the market from new coal leases, which often displaced other forms of renewable energy.
The Associated Press contributed to this report.