A Union Pacific train transports coal through Spanish Fork Canyon in Utah County on Wednesday, July 31, 2024. (Photo by Spenser Heaps for Utah News Dispatch)
A Utah mine is set to be the first in the nation to take advantage of new federal rules expediting leases for coal production on federal land, passed as part of the congressional Republicans’ “Big, Beautiful Bill” last month, the U.S. Department of the Interior said Wednesday.
Canyon Fuel Company, the operator of Carbon County’s Skyline Mine since 1981, is requesting leasing the Little Eccles Federal Coal Lease Tract, comprising up to 120 acres and containing 858,000 to 1,025,000 tons of recoverable coal, according to the environmental impact analysis.
The company is also applying to expand its existing lease for the Flat Canyon Federal Coal Lease Tract to “increase the tract acreage by 660 acres, adding approximately 2,095,000 tons of contiguous recoverable coal,” according to the analysis.
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If approved, the developments would produce nearly 3 million tons of recoverable coal on federal land and nearly 4.6 million tons of private coal, in addition to the 40 million tons of coal mined over the last 10 years. Also, the life of the Skyline Mine would be extended for 18 months past its January 2032 estimated retirement date.
“This is a critical step in unleashing the full economic potential of our coal resources and delivering reliable, affordable energy to American families,” Acting Assistant Secretary for Lands and Minerals Management Adam Suess, said in a statement. “President Trump made it clear that we will not tie up American energy in red tape. Under his leadership, we’re cutting delays, boosting production, and putting miners back to work.”
That’s the first coal leasing process accelerated because of the “big, beautiful bill.”
The law required the accelerated processing of pending coal lease applications, giving the Secretary of Interior 90 days to review them, to publish any required environmental review for public comment, establish the fair market value, hold a lease sale and identify the highest bidder for coal tracts. The secretary may also grant additional approvals to previously issued coal leases so mining can start.
The Department of the Interior also highlighted in a news release that the action supported Trump’s executive orders seeking to propel the country’s coal industry.
“(The executive orders) support the domestic coal industry by enhancing coal production and use as a means of securing economic prosperity and national security, lowering electricity costs, and supporting job creation,” the environmental review says. “They further outline a series of policies and actions to remove regulatory barriers, promote coal exports, and assess coal resources on federal lands, while also encouraging the development of coal technologies.”
The Bureau of Land Management will soon open a public comment period to determine the fair value market and the maximum economic recovery of the federal coal in the lease area.
In a social media post, Utah Gov. Spencer Cox commended the action, saying it would “deliver reliable power, rural jobs, and greater American energy independence.”
“Energy abundance means economic strength and national security,” he wrote.
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