Role of Federal coal resources in meeting national energy goals needs to be determined and the leasing process improved

Technical Report · Thu Apr 01 04:00:00 EST 1976

OSTI ID:7328609

The report concerns the need to consider Federal coal leasing in view of national coal production goals and to improve the leasing process. Because of its large holdings of low-sulfur coal, the Federal Government is in a key position to shape future patterns of coal development. Most of the coal lands are administered by the Department of the Interior and may be leased to mine coal. In 1971 Interior halted the issuance of coal leases and prospecting permits because growing amounts of coal resources were being placed under lease at a time when production was falling off. Overall, production has been poor. About 70 percent of the 536 leases, conservatively estimated to contain 16 billion tons of coal, have yet to produce. About 60 percent of the leases are 10 years or older, and production is not expected on about half of the existing leases before 1990. An issue which has never been adequately addressed in the 55-year history of the coal-leasing program is that of timely development. The ease of obtaining leases and the low costs associated with holding them have not increased production, contrary to the intent of the law. In fact, these conditions, coupled with Interior's failure to enforce production clauses in the leases, provided a strong incentive for speculation. The Secretary of the Interior announced a new coal-leasing policy on January 26, 1976. But lifting of the 1971 moratorium does not mean that leasing will resume automatically in the immediate future, according to Interior. (MCW)

• Research Organization: General Accounting Office, Washington, D.C. (USA)
• OSTI ID: 7328609
• Report Number(s): RED-76-79
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
017000 -- Coal
Lignite
& Peat-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294001* -- Energy Planning & Policy-- Coal
510500 -- Environment
Terrestrial-- Site Resource & Use Studies-- (-1989)
54 ENVIRONMENTAL SCIENCES
COAL MINES
COAL RESERVES
DRILLING
ENERGY SOURCES
GOVERNMENT POLICIES
LAND USE
LEASING
MANAGEMENT
MINES
NORTH AMERICA
PLANNING
PRODUCTION
RESERVES
RESOURCES
USA