CLEVELAND, May 13, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis (IEEFA) filed comments today with the Department Interior urging sweeping changes in how the U.S. government manages coal leases on federal lands.
IEEFA urged specific reforms that include the following:
Tom Sanzillo, the author of the IEEFA comment letter to the DOI, said in a commentary posted on IEEFA’s website on Friday morning that the issue is one of national energy security and economic common sense.
“Powder River Basin coal reserves are a crucial public asset, the biggest such reserves in the country. That’s why we say companies that include Alpha Natural Resource, Arch Coal, and Peabody Energy must not be allowed to continue to send these reserves overseas. Nor should these companies—all of which have recently entered bankruptcy and all of which have shown tendencies toward reckless speculation—be permitted to invest in foreign coal assets,” Sanzillo wrote. “If the U.S. coal industry is to have a future it will require new business models and new technologies, not more wasteful, value-destroying gambles on non-existent overseas markets.”
“The political hurdles alone to the reforms we recommend are daunting,” Sanzillo said. “But major public policy change has never been easy.”
“The federal coal lease program has inarguably run its course. It is desperately in need of a new paradigm. Sound planning, a skilled public-sector negotiating team, good financial advice and a commitment to openness will be critical elements of success.”
The Cleveland-based Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy and to reduce dependence on coal and other non-renewable energy resources.