Despite efforts from the Trump administration and Montana’s officials to boost the coal industry, companies are showing less interest. The federal government recently declined a bid for a new coal lease in Montana’s Powder River Basin and delayed a Wyoming sale. Navajo Transitional Energy Company (NTEC) was the sole bidder for the Montana lease, offering $186,000 for federal coal near its Spring Creek Mine, a value far below the Bureau of Land Management’s (BLM) market estimate.
The last regional federal coal lease sale, in 2012, fetched $1.10 per ton, totaling $793 million for 721 million tons. A similar price for the Spring Creek lease would have generated over $183 million. NTEC, operating the Spring Creek Mine, had earlier expanded access to an additional 39.9 million tons of coal, potentially extending operations for 16 years. The company cautioned that coal’s market value in the Powder River Basin has declined due to the anticipated closure of coal-fired power plants in the coming decades.
The BLM rejected NTEC’s Spring Creek lease bid for not meeting the fair-market value set by the federal Minerals Leasing Act. An Interior Department spokesperson noted that BLM uses economic modeling and market analysis to ensure fair returns for taxpayers. The Trump administration’s “Big Beautiful Bill” had reduced federal coal royalty rates from 12.8% to 7%, impacting Montana’s earnings from leases.
The low bid led to the postponement of a 441 million ton West Antelope III federal lease auction in Wyoming, with NTEC again as the only interested party. “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,” an Interior spokesperson stated, emphasizing the Trump administration’s commitment to American Energy Dominance.
Mining for Montana’s Benefit
Montana’s coal lease interest dwindles as the Trump administration and Congress, supported by Montana’s delegation, push for expansion. The Biden administration had planned to limit coal leasing in eastern Montana due to climate concerns. However, the U.S. Senate recently overturned a Biden-era Resource Management Plan, reopening the area for future coal leases. Montana’s Republican representatives supported the rollback.
Sen. Steve Daines remarked, “Montana energy is back,” highlighting mining’s economic significance. Montana supplies 5% of the nation’s coal and gets 37% of energy from coal-fired plants. Gov. Greg Gianforte also backed reopening eastern Montana for coal leasing, citing its economic importance. He criticized the Biden administration’s proposal as detrimental to Montana’s schools and institutions.
Conservation groups criticized Congress for overturning the resource management plan, arguing it disregarded a multi-year public process. Alex Blackmer of Wild Montana stated, “It’s an egregious example of rich politicians thinking they know better than locals and experts.” Additional Biden administration plans banning future coal leasing, including in Wyoming’s Powder River Basin, face Congressional challenges.
Gov. Gianforte continues advocating for energy expansion, recently forming an energy task force to “unleash American-made energy.” Led by Sonja Nowakowski, head of Montana’s Department of Environmental Quality, the task force will recommend strategies to boost power generation and streamline processes by next fall.
