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US delays Wyoming coal lease auction after Montana auction disappointment

A spokesperson for the Interior Department said that, two days after a disappointing Montana auction, the Trump administration had postponed an auction of coal leases scheduled to take place on federal land in Wyoming.

According to contingency plan published last week, the Bureau of Land Management (a division of Interior) was expected to continue processing permits and leasings for oil and gas operations and coal during the shutdown.

Wednesday morning, a sale of 3,508 acres federal coal reserves located in Wyoming's Campbell County and Converse county was scheduled. The lease area has 365,000,000 tons of recoverable coking coal. Interior announced that it would announce a new sale date but did not provide a reason.

BLM conducted a lease auction for 1,262 acres of land in Big Horn County, Montana, on Monday. The Navajo Transitional Energy Company bid, which runs the Spring Creek Mine nearby.

The bid of $186,000, for a lease containing an estimated 167.5 millions tons of recoverable coking coal, is less than one penny per ton. The Interior Department blamed former Democratic Presidents Joe Biden, and Barack Obama for the lack of interest in the industry.

The Interior Department stated that "we would have preferred to see a stronger participation but this sale reflects lingering effects from Obama and Biden’s decades-long war on coal, which aggressively tried to end all U.S. domestic coal production and undermine confidence in the U.S. industry."

"Fortunately, Trump and his Administration have rebuilt trust between the industry and the government as part our larger effort to restore American Energy Dominance."

Obama and Biden have tightened the environmental regulations for coal in order to reduce climate change and pollution, as well as encourage a shift to renewable energy.

BLM has yet to accept the NTEC bid, because it must first determine if it represents fair market price.

NTEC had claimed in documents of sale that the fair market price of coal should be near the minimum bid required by law of $100 per acre. The company has not responded to any requests for comment.

Donald Trump has promised to revive coal leases on federal land to fuel the country's rising electricity demand linked to artificial intelligence. (Reporting and editing by Nichola Craft; Nichola Groom)

(source: Reuters)