fbpx

Changes Proposed in US Coal Royalty Program

Lawmakers want more comment time for the proprosal

By Molly Priddy

BILLINGS — Western lawmakers want the Interior Department to extend a comment period on proposed reforms to royalty payments from coal sales.

Fifteen Republicans from six states asked Interior Secretary Sally Jewell in a letter Tuesday to extend the March 9 comment deadline by 60 days.

Led by Montana US. Sen. Steve Daines and Wyoming U.S. Rep. Cynthia Lummis, the lawmakers said states and Indian tribes that share in royalty payments need more time to weigh in.

Under a 1989 rule, companies can sell coal to affiliates and pay royalties on that price, then turn around and sell the coal for more overseas. Critics of the rule say taxpayers could be losing many millions of dollars as a result.

Coal industry representatives are resisting changes to a system they contend is fair.