fb-pixelMarkey to ask Congress to suspend coal sales - The Boston Globe Skip to main content

Markey to ask Congress to suspend coal sales

BILLINGS, Mont. — A Massachusetts senator said Tuesday that he will ask fellow lawmakers to halt coal sales on federal lands in the West after a senior Obama administration official declined to suspend the troubled government program.

Edward J. Markey said the Interior Department moved too slowly on promised reforms since he raised concerns earlier this year that ''bargain-basement'' lease sales to a handful of mining companies might have cost taxpayers $200 million or more.

Investigators from the Government Accountability Office and the Interior Department have found a widespread lack of competition in the sale of coal leases on federal lands. The issue has grown more pressing as companies seek to increase exports to Asia, where coal prices can be much higher than in the United States.


More than 40 percent of US coal production, or about 450 million tons a year, comes from public lands leased by the government to mining companies under the century-old Mineral Leasing Act. Those leases bring in more than $1 billion in annual revenue.

In a letter released Tuesday by Markey and first reported by the Globe, US Bureau of Land Management Director Neil Kornze agreed that leasing reforms were needed.

But Kornze wrote to Markey that a suspension of sales was unnecessary with changes to rules already in the works.

During the interim, Kornze said the Bureau of Land Management was working with Interior's Office of Valuation Services to make sure fair- market value estimates are independently reviewed before sales are made.

A protocol for those reviews could be developed before the end of the year.

No timeline was offered for other potential changes, including updating the fees coal companies pay to rent public land and the minimum bid the government can accept.

A Markey spokesman said the agency's response was ''noncommittal'' in terms of what reforms would be made and when. Eben Snyder said Markey will soon propose a bill to suspend the lease sales and do so again if the measure does not pass before the current session ends.