Western U.S. coal producers are increasingly coming under fire by environmental groups that see a chance to fight climate change by curbing output from the nation's largest coal basin.
Western U.S.
coal producers are
increasingly coming under fire by environmental groups that see a chance to
fight climate change by curbing output from the nation's largest coal basin.
For years environmentalists have lobbied for tougher limits on the emissions of
heat-trapping gases blamed for climate change from power plants, vehicles and
other direct sources. But the collapse of federal climate-change legislation in
recent weeks and growth of coal exports to
Asia
is
leading some groups to look past the smoke stacks and aim to quash emissions by
stymieing production of fuel.
The
Powder
River
Basin
, which underlies
Wyoming
and
Montana
, is
one of the country's largest sources of fossil fuel, accounting for about 40%
of
U.S.
coal
output. Combustion of this coal in power plants accounts for about 13% of all
U.S.
carbon dioxide emissions each year, according to the U.S. Bureau of Land
Management. Most of the basin's coal is mined through federal leases by the
largest
U.S.
producers such as Peabody Energy Corp. (BTU) and Alpha Natural Resources Inc.
(ANR).
Groups including the Sierra Club and WildEarth Guardians, a New Mexico-based
environmental group, are challenging the legality of a series of new leases the
Bureau of Land Management, or BLM, has begun issuing. They say the leases could
open up as much as 5.8 billion tons of coal reserves for mining, ensuring the
basin's dominance for years to come. The environmentalists claim the BLM isn't
properly taking into account the impact of burning the coal on the climate.
"We are interested in getting to the heart of the problem," said
Jeremy Nichols, climate and energy program director of WildEarth Guardians. "What
goes on in the
Power
River
Basin
is of national interest."
Last month, a coalition of environmental groups sued in the U.S. District Court
for the
District of Columbia
to
stop the first of what's expected to be a series of BLM lease decisions,
marking a rare challenge in the
Powder
River
Basin
. Environmental groups say they plan to file
additional lawsuits in the coming months as the bureau backs additional leases.
WildEarth Guardians also sued Interior Secretary Ken Salazar last month over
the lease process as a whole, alleging it neither fosters competition among
coal producers nor requires a comprehensive assessment of the environmental
impacts.
Coal producers warn a slowdown in replacing their reserves could eventually
hamper
U.S.
electricity supplies. Last week, Alpha Natural Chief Executive Kevin
Crutchfield described the opposition effort as in its infancy, not seeing any
impact on mining in the near term. Cloud Peak Energy Inc. (CLD) Chief Executive
Colin Marshall said the lawsuits could slow--but won't stop--the company's
efforts to add new reserves.
Environmental groups have found some success curbing eastern coal production,
particularly from mountaintop-removal mining in
Appalachia
,
whereby the tops of mountains are blown off to expose the coal seams below.
Western
U.S.
coal production has largely stayed out of the spotlight, but this is
changing as environment advocates begin to zero in on the new leases and
growing exports of
Powder
River
Basin
coal to
Asia
from
the U.S. West Coast. Exports are a particular concern because the sale of
U.S.
coal
overseas undercuts domestic effort to reduce emissions and weakens
international cooperation on climate change, environmental groups say.
"That is a very serious line in the sand," said Bruce Nilles,
director of the Sierra Club's Beyond Coal Campaign, of efforts by
Western
U.S.
miners to grown Asian exports.
In addition to disputing individual leases, environmental groups sued separately
in federal district court to challenge the overall leasing process, saying the
bureau should take a broader view of the environmental impact of coal mined in
the
Powder
River
Basin
. Also, the suit contends coal companies should no
longer select the particular areas they want to lease. Companies are allowed to
pick out desirable acreage to increase the size of their existing mines, but
the groups allege the process prevents competition and keeps the BLM from
capturing the full value of the reserves.
BLM officials in
Wyoming
said
the environmental reviews connected to the leases are already comprehensive. Furthermore,
the nomination process ensures robust demand for federal acreage, and producers
are required to pay full market value for access to the reserves.
Challenges to the bureau by environmentalists have proved effective in the
past. Earlier this year, the BLM delayed the sale of oil and natural gas leases
in
Montana
and
North and
South Dakota
to
allow additional environmental reviews after advocates filed lawsuits raising
concerns about the climate change impact.
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