Despite the Trump administration’s efforts to boost Montana’s coal industry, interest from companies seems to be declining. The federal government denied a bid for a coal lease in Montana’s Powder River Basin and delayed a Wyoming sale. Navajo Transitional Energy Company (NTEC) offered $186,000 for the Montana lease, a mere fraction per ton, falling short of the Bureau of Land Management’s (BLM) market value estimates.
The last significant federal coal lease in the area, sold in 2012, fetched $1.10 per ton, totaling $793 million for 721 million tons. At that rate, the Spring Creek lease would draw over $183 million. NTEC operates the Spring Creek Mine, recently greenlit for expansion, accessing 39.9 million additional tons of coal, extending its life by 16 years.
According to Wyofile, NTEC noted that coal market values in the Powder River Basin have significantly dropped, with low demand forecasts, as many coal-fired plants are scheduled to close in the next 20 years. The BLM rejected NTEC’s bid, citing non-compliance with the federal Minerals Leasing Act’s fair-market value requirement.
A Department of the Interior spokesperson mentioned that the BLM uses “a rigorous process, including economic modeling and sales analysis, to ensure fair taxpayer returns.” The BLM continues to support responsible coal development within a balanced public land management approach.
The Trump administration’s “Big Beautiful Bill” reduced the federal coal royalty rate from 12.8% to 7%, decreasing Montana’s potential revenue. The low bid on the Spring Creek lease led to the postponement of the West Antelope III lease auction in Wyoming, where NTEC was reportedly the sole interested bidder.
Mining for Montana’s Benefit
The Trump administration, alongside Montana’s delegation, aims to boost coal leasing across the West. However, last year, the Biden administration announced plans to halt coal leasing in eastern Montana due to climate concerns. The U.S. Senate recently voted to overturn the Biden-era Resource Management Plan (RMP) amendment for the Miles City BLM office, reopening the area for coal leasing, supported by all of Montana’s representatives.
Sen. Steve Daines declared, “Montana energy is back,” emphasizing mining’s economic contributions and job creation. However, Daines did not address the low lease interest or the impact of increased supply on Montana’s coal market. Governor Greg Gianforte also backed reopening eastern Montana for coal leasing, citing its economic importance. Montana provides 5% of the nation’s coal, with 37% of energy coming from coal-fired plants.
Conservation groups criticized Congress’s decision to overturn the RMP, arguing it disrupts years of public process. Alex Blackmer from Wild Montana stated, “This reckless move jeopardizes land plans nationwide, affecting ranchers, hunters, and businesses reliant on public lands.” Additional Biden administration resource management plans banning coal leasing, like those in Wyoming’s Powder River Basin, face Congressional challenges.
In Montana, Gianforte continues to advocate for energy production growth, recently establishing an energy task force to boost domestic fossil fuel energy, following Trump’s executive orders. Sonja Nowakowski, head of the Montana Department of Environmental Quality, leads the task force, expected to present recommendations for power generation and transmission enhancements by next fall.
—
Read More Montana News
