According to the June 28, 2012 Wyoming Business Report, the Bureau of Land Management short-changed U.S. taxpayers and state and federal coffers an estimated $1.2 billion by leasing 721 million tons of Wyoming’s high quality Powder River Basin coal to Peabody Energy at prices significantly below market value.
BLM acceptance of the low-ball offer was anticipated by the recently released Institute of Energy Economics Financial Analysis report, “The Great Giveaway,” which detailed flaws in the Federal coal-leasing program including lack of competitive bidding, erroneous methods of establishing fair market prices, lack of program oversight and accountability, increases in profitable overseas exports of underpriced US coal, and USGS reports of constraints on economically recoverable WY coal reserves.
As further confirmation that BLM coal leasing practices are subsidizing the coal industry at the expense of our economy, environment, and future energy security, the IEEFA report also cited the April, 2012 formal request by Representative Edward Markey (D-Mass), ranking member of the House Committee on Natural Resources, for Government Accountability Office review of federal coal leasing.
To read IEEFA report http://188.8.131.52/IEEFA/062512_IEEFA_PRB_coal_report_FINAL2.pdf
Washington Post 6/24/2012 IEEFA report review full article: