A U.S. appeals court has ruled against a moratorium on coal leasing from federal lands, potentially paving the way for future coal sales from publicly owned reserves. The decision, made by a three-judge panel of the 9th U.S. Circuit Court of Appeals, represents a setback for environmentalists and Democratic officials who have sought to limit the federal coal leasing program.
However, the demand for new leases remains uncertain as coal production from federal lands has declined significantly in recent years. Many electric utilities have shifted to cleaner energy sources like natural gas and renewables, leading to a drop in coal mining activities on federal lands.
In 2022, private companies mined over 260 million tons of coal from federal leases, down from more than 400 million tons in 2014. Most of the mining operations are concentrated in Western states such as Wyoming, Montana, and Colorado.
The leasing moratorium, initially imposed in 2016 under the Obama administration, aimed to restrict federal lease sales essential for companies looking to expand their coal operations. The moratorium was lifted by the Trump administration but reinstated by a federal judge in Montana in 2022, prompting a new environmental review before coal sales could resume on federal lands.
The recent appeals court ruling deemed the issue moot as the Biden administration had already revoked Trump's efforts to end the moratorium. Despite the court decision, a de facto moratorium remains in place due to reduced lease sales.
The National Mining Association welcomed the ruling, suggesting that stalled mining projects, including the expansion of the Black Butte coal mine in Wyoming, could progress. However, environmentalists and tribal officials have urged the Biden administration to take immediate action to halt new leasing and address coal's environmental and health impacts.
Coal combustion for electricity remains a significant source of greenhouse gas emissions in the U.S., contributing to about a quarter of total emissions. The federal coal program, managed by the Bureau of Land Management, generated over $500 million in royalties and payments last year, supporting numerous jobs in the industry.
While Republicans in Congress and officials in coal-producing states have defended the coal industry, calls for a comprehensive review of the federal coal leasing program and measures to mitigate coal's environmental effects persist.
