Obama to halt new coal mining leases on public lands

The Obama administration is set announce a halt to any new major coal mining leases on public lands, until it completes an in-depth review to whether fees charged to mining companies give a fair return to taxpayers and reflect the impact coal is having on the environment and human health. The halt will send a clear signal to the coal industry, which could lead to increased costs for energy companies and a slowdown in coal extraction, according to an administration official. In his State of the Union address earlier in the week, Obama said he would "push to change the way we manage our oil and coal resources so that they better reflect the costs they impose on taxpayers and our planet."

WASHINGTON — The Obama administration announced on Friday a halt to new coal mining leases on public lands as it considers an overhaul of the program that could lead to increased costs for energy companies and a slowdown in extraction.

“Given serious concerns raised about the federal coal program, we’re taking the prudent step to hit pause on approving significant new leases so that decisions about those leases can benefit from the recommendations that come out of the review,” said Interior Secretary Sally Jewell. “During this time, companies can continue production activities on the large reserves of recoverable coal they have under lease, and we’ll make accommodations in the event of emergency circumstances to ensure this pause will have no material impact on the nation’s ability to meet its power generation needs.”

The move represents a significant setback for the coal industry, effectively freezing new coal production on federal lands and sending a signal to energy markets that could turn investors away from an already reeling industry. President Obama telegraphed the step in his State of the Union address on Tuesday night when he said “I’m going to push to change the way we manage our oil and coal resources so that they better reflect the costs they impose on taxpayers and our planet.”

Last year, Mr. Obama used his executive authority under the Clean Air Act to complete regulations that would limit carbon dioxide emissions from coal-fired power plants, the nation’s largest source of planet-warming pollution. Republicans have attacked the rules, which could lead to the closing of hundreds of coal plants, as a “war on coal.” A halt to new leases would go even further by leaving coal unmined.