Number: 2016-08
WHEREAS, the Department of Interior (DOI) has recently issued a moratorium on new federal coal leasing to reassess its programs, and this provides the best opportunity in decades to change policies that aren’t in the best interest of wildlife, the ecological integrity of our public lands, the changing climate, or the country’s fiscal standing; and
WHEREAS, the current federal minerals royalty rate of 12.5% is well below market rates and provides a perverse subsidy to a polluting industry; and
WHEREAS, the current coal lease auction process chronically underrates the true value of coal due to the fact that more than 90% of the coal lease auctions held by the Bureau of Land Management have had only one bidder, despite a clear mandate under the Mineral Leasing Act of 1920 that federal coal leases be offered “competitively;” and
WHEREAS, many coal companies have avoided paying royalties on final sales by selling the coal through subsidiaries; and
WHEREAS, increasing the federal minerals royalty rate and closing loopholes would help fund public lands programs that are currently underfunded, including enhanced hunting, fishing, and recreation programs; and the maintenance of our public lands; and
WHEREAS, current public land coal mining reclamation policy is causing real problems for our public lands, water, and wildlife, including hundreds of square miles of un-reclaimed disturbed land; and
WHEREAS, current public land coal mining reclamation policy is piling up long-term liability for massive reclamation costs of up to $2 billion, and this will likely become a burden for future taxpayers; and
WHEREAS, public lands coal mine plans often fail to adequately capture essential data to fully assess the baseline hydrologic balance thereby leaving many important water resources unprotected; and
WHEREAS, to solve the climate crisis it is essential that the federal coal program be in sync with a national clean energy future that is oriented to sustainable conservation, and managed for public long term interest; and
WHEREAS, federally leased coal development accounts for more than half of all carbon pollution from fossil fuels extracted on public lands; and
WHEREAS, the science unequivocally shows that human-caused carbon emissions are disrupting normal climate patterns and causing temperatures to rise; and
WHEREAS, the changing climate is quickly becoming the biggest threat to the long-term survival of America’s wildlife; and
WHEREAS, climate change is having a significant impact on ocean ecosystems, including increased ocean acidification that is affecting the very base of the food chain; and
NOW, THEREFORE, BE IT RESOLVED that the National Wildlife Federation, in its Annual Meeting assembled June 16-18, 2016 in Estes Park, Colorado, urges the Department of Interior (DOI) to continue the moratorium until it can scientifically demonstrate that it will not impede any stated federal carbon reduction goals including targets for the country in the Paris Climate Agreement; and
BE IT FURTHER RESOLVED the DOI should establish guidelines to be used to assess when leasing is not in the public interest, including consideration of a mine’s current reserves, market conditions, lease tract size and design, sales for export, and the ecological and recreational values of the site and the environmental impacts that mining would have on them.
BE IT FURTHER RESOLVED that DOI should increase the royalty rate for surface-mined coal from 12.5% to fair market value; and
BE IT FURTHER RESOLVED that the DOI should close the loophole that allows mining companies to avoid paying royalties on final sales by selling the coal through subsidiaries; and
BE IT FURTHER RESOLVED that the DOI should update agency policies to make sure potential profits from coal leasing are considered in setting fair market value during the auction process; and
BE IT FINALLY RESOLVED that the DOI should update policies related to bonding, including disallowing self-bonding and to ensure that the full costs of reclamation are assessed to prevent taxpayers from having to pay for mining cleanup.