BLM Halts Future Coal Leasing in Montana’s Powder River Basin: Impact and Controversy

The U.S. Bureau of Land Management BLM recently decided to stop leasing future coal mining rights on about 1.7 million acres of federal land in Montana’s Powder River Basin. This decision is part of efforts to cut down on greenhouse gas emissions and is based on the uncertain future of the U.S. coal market due to declining demand.

The BLM’s decision, announced on November 27, will not affect current coal operations at the Spring Creek and Rosebud mines, which can continue for at least a decade. However, Montana’s U.S. Senator Steve Daines and the state’s governor have strongly opposed the decision, calling it harmful.

This move follows the BLM’s May recommendation to end new coal leases in both Montana and Wyoming’s Powder River Basin, which produces around 40% of the nation’s coal. However, coal production has been decreasing in the region in recent years.

The BLM had until December 3 to finalize its decision after a federal court ruling in 2022 found that the BLM had not properly reviewed the environmental impacts of coal mining when it previously changed land use plans in the basin.

The decision to stop future coal leases is based on predictions that coal markets will keep shrinking and that new coal mines aren’t expected in the area.

The BLM decision will allow existing operations at the Spring Creek Mine owned by Navajo Transitional Energy Company to continue until 2035, as the company hasn’t requested new permits. The Rosebud Mine owned by Westmoreland can operate through 2039, with possible extensions, depending on how much coal is mined.

Both mines provide coal to the Colstrip power plant, which may continue operating at least until 2042. However, the future of the Colstrip plant is uncertain due to legal challenges.

Montana’s Governor, Greg Gianforte, criticized the decision, calling it a federal power grab that will hurt coal jobs and damage the state’s economy. Coal taxes in Montana support funding for schools and infrastructure, and the BLM’s May environmental analysis noted that the two mines provided over 600 jobs and generated about $50 million annually.

The BLM considered other options, including continuing with no new leasing or reducing the land available for leasing. However, some state groups and mining companies protested the plan, saying it could limit coal development on state and private lands, which isn’t affected by the decision.

The U.S. Energy Information Administration predicts a major drop in U.S. coal production by 2040, further supporting the BLM’s decision.

Republican leaders, including Senator Daines and Governor Gianforte, are looking into ways to reverse the decision through legislation or court challenges.

They argue that Montana’s coal resources are important for the economy and national security. Governor Gianforte also hopes for a change in policy with the incoming Trump administration.