The Trump administration, backed by Montana officials, is advocating for coal industry expansion despite declining interest from companies. The federal government recently rejected a bid for a new coal lease in Montana’s Powder River Basin and postponed a scheduled sale in Wyoming. Navajo Transitional Energy Company (NTEC) was the sole bidder, proposing $186,000 for federal coal near its Spring Creek Mine, significantly below market value.
The last lease sale in 2012 valued coal at $1.10 per ton, totaling $793 million for 721 million tons. At that rate, the Spring Creek lease would fetch over $183 million. NTEC operates Spring Creek Mine, which was approved for expansion, adding 39.9 million tons of coal and extending operations for 16 years.
Wyofile reported that NTEC warned of low market value due to diminishing coal-fired power plants in the next two decades. The Bureau of Land Management (BLM) rejected NTEC’s bid, citing the federal Minerals Leasing Act’s fair-market requirement. A Department of the Interior spokesperson stated that the BLM uses economic modeling and comparable sales analysis to ensure fair taxpayer returns.
Federal coal lease funds are shared between the federal government and the mining state, but the Trump administration’s “Big Beautiful Bill” reduced the federal coal royalty rate, affecting Montana’s earnings. The low bid led BLM to delay the West Antelope III lease auction in Wyoming, where NTEC was the only interested party.
“While we had hoped for stronger participation, the postponed West Antelope III coal lease sale in Wyoming underscores the lasting damage from the Obama-Biden administration’s decades-long war on coal, which aimed to dismantle domestic production and shake investor confidence in the industry,” an Interior spokesperson wrote in an email. “Under President Trump, the Department of the Interior and BLM are restoring trust between government and industry as part of the broader push for American Energy Dominance.”
The Trump administration and Congress, supported by Montana’s delegation, are pushing to expand coal offerings in the West. Last year, the Biden administration aimed to reduce coal leasing due to climate concerns. Recently, the U.S. Senate voted to reverse the Biden-era Resource Management Plan for eastern Montana, allowing future coal leases.
Mining for Montana’s Benefit
Sen. Steve Daines stated, “Montana energy is back,” highlighting mining’s economic contributions and job creation. Despite low interest in recent coal leases, Montana’s Republican Gov. Greg Gianforte supports reopening coal leasing, citing its importance to the state’s economy. Montana provides 5% of the nation’s coal and generates 37% of its energy from coal-fired plants.
Conservation groups criticized Congress’s decision to overturn the resource management plan, arguing it bypassed careful planning. Wild Montana’s Alex Blackmer stated, “It’s an egregious example of rich politicians thinking they know better than locals and experts.” Biden administration plans banning future coal leasing in Wyoming’s Powder River Basin face similar challenges in Congress.
Gov. Gianforte has continued to push for energy production expansion, convening an energy task force to enhance domestic fossil fuel energy sources. Sonja Nowakowski from the Montana Department of Environmental Quality leads the task force to strategize increasing power generation and transmission capacity by next fall.
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