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Economy
New Federal Rule Strikes Another Devastating Blow Against Coal Industry
2016-07-01
[Daily Caller] The federal government issued a new rule Thursday increasing the cost energy producers must pay to extract coal, oil, and gas leased on public land, in a move bound to roil energy markets and raise fears the Obama administration has struck another blow against the coal industry.

The Department of the Interior changed the rules governing royalty rates that oil and coal companies must pay to the federal government to extract gas and coal from public lands. The regulation essentially uses the gross proceeds from a sell, not a percentage, to determine the royalty rates energy producers must pay to use public lands to extract oil and coal. There will be modest reductions taken into account, based on transportation and processing costs.

Up until now, royalty rates did not take into account the supposedly high costs associated with climate change, environmentalist group Friends of the Earth wrote in a press statement announcing the rule change.

The new rule essentially seeks to wring money out of energy providers who use public lands to extract oil and coal, as well as natural gas. Energy analysts also fear a royalty tax would stunt oil and coal production.
Posted by:Besoeker

#10  According to recent trade articles that despite all the admin's anti-coal crap, coal by rail shipments surged the last few weeks. Reason seems to be the hot weather and increased demand for electricity. Utilities are going where fuel is cheaper and natural gas prices have risen so coal wins. And while the existing coal plants are still legal and comply with all the rules, cost is going to drive fuel selection.
Posted by: USN, Ret.   2016-07-01 19:29  

#9  As of 2011, we got more than 40% of our power from coal-fired power plants. We are not building new nuclear power plants. What happens when the heat goes off and lights go off in a cold winter? I suppose people will be burning whatever is available. We sure have got some morons setting policy.
Posted by: JohnQC   2016-07-01 13:18  

#8  Bright Pebbles: you're the reason the socialists are winning: Everytime they come up with yet another wet dream to push us further out of business someone like you comes along to tell us it's capitalism.
Posted by: Thing From Snowy Mountain   2016-07-01 12:00  

#7  There's all those welfare checks to pay, but they're not going to be able to pay them because there won't be the drilling. AND.

There's going to be more welfare checks to pay.
Posted by: Thing From Snowy Mountain   2016-07-01 10:32  

#6  Actually I'm not too bothered by this. It's not actually as anti-capitalist as you think if you've read your Adam Smith.
Posted by: Bright Pebbles   2016-07-01 08:36  

#5  Who was it once (or twice) said "I will bankrupt you!" Can't seem to recall who it was.?.?
Posted by: illeagle   2016-07-01 07:59  

#4  Rules (decrees) not Laws. Who needs stinking laws.
Posted by: Procopius2k   2016-07-01 07:43  

#3  The Federal Government's push for expanding 'public lands' is further explained.
Posted by: Besoeker   2016-07-01 05:01  

#2  And all those public sector paychecks and pensions, too.
Posted by: no mo uro   2016-07-01 04:58  

#1  Well, there are all these welfare checks to pay.
Posted by: g(r)omgoru   2016-07-01 04:10  

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