Coal mining companies are saving tens of millions of dollars that should be going into state and federal treasuries, according to a new report by the Inspector General at the US Department of Interior.
The report paints a picture of inadequate oversight, poor record-keeping and frequent undervaluing of coal on public lands. Its authors concluded that mining companies aren’t always paying the fair market rate for the coal they extract on public land. The report also shows that the Bureau of Land Management does not fully factor in the export potential of the coal when calculating the fair market value. And that, in turn, means they may not be paying the full amount for leases and royalties that the government should be charging.