"The Obama administration's Bureau of Land Management auctioned a major tract of Wyoming coal to Peabody Energy at a bargain-basement price of $1.10 per ton yesterday."
"The North Porcupine coal tract in the Powder River Basin went to the single bidder, Peabody subsidiary BPU Western Resources, for $793,270,310.80 for 721 million tons, BLM representative Beverly Gorny stated in a telephone interview.
This sale, made under the provisions of the Mineral Leasing Act of 1920, represents a massive fossil-fuel subsidy based on the assumption that the use of coal benefits the American public. However, it is likely this coal is intended for the Asian market, where sub-bituminous coal fetches a much higher price. The non-competitive leasing program is under federal investigation."
Brad Johnson of Forecast the Facts reports for Think Progress June 29, 2012.
SEE ALSO:
"Thermal Coal Prices Hit Two-Year Low" (Financial Times)
"COAL: Swelling Exports Shine Spotlight on Port Pollution" (Greenwire)
"Coal Clash: Proposed Northwest Export Terminals Face the Risky Business of Global Energy Markets" (Portland Oregonian)
"Coal Clash: the Powder River Basin, Where Coal Is King" (Portland Oregonian)
"Coal Clash" Portal Page (Portland Oregonian)
"Sierra Club Report Challenges Coal Theories" (EnergyBiz)
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