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Mon Feb 11, 2013, 12:02 AM

Coal companies pay 25˘ a ton for coal from public lands turn around and sell it for $35 a ton

The coal industry, for as much as it whines and frets and fake-cries about how oppressive the government is, gets a pretty sweet deal. We’ve noted before than companies pay 25 cents a ton for coal from public lands and then can turn around and sell it for $35 a ton. (We’ve also mentioned that they often sell that coal to China, meaning we’re subsidizing the world’s largest consumer of coal, but that’s a whole other issue.)


What makes this so much more galling is that the weepy coal companies might not even be paying for all of the coal they’re extracting. From The Hill:

Interior is looking into whether mining firms lowball the value of coal excavated from federal lands to minimize the fees they pay the government. …

Reuters said mining companies are underreporting the price of coal at mine sites — where royalties are assessed — then selling it to marketers that they often times own. Reuters said those intermediaries then ship the coal abroad, where they fetch higher prices.


http://thehill.com/blogs/e2-wire/e2-wire/281991-interior-to-investigate-coal-exports
http://grist.org/news/have-coal-companies-been-ripping-americans-off-even-more-than-we-already-knew/

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Reply Coal companies pay 25˘ a ton for coal from public lands turn around and sell it for $35 a ton (Original post)
kpete Feb 2013 OP
pipoman Feb 2013 #1
2naSalit Feb 2013 #2
Egalitarian Thug Feb 2013 #6
HooptieWagon Feb 2013 #3
alittlelark Feb 2013 #4
msongs Feb 2013 #5
2naSalit Feb 2013 #7
mike_c Feb 2013 #8
indepat Feb 2013 #9
upi402 Feb 2013 #10

Response to kpete (Original post)

Mon Feb 11, 2013, 12:11 AM

1. Mining is expensive..

I don't really think what they pay for it is as important as the cost of production..if the cost of production is $3 per ton, then yes, something is wrong with this picture. If production cost is $25, not so much..

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Response to kpete (Original post)

Mon Feb 11, 2013, 12:45 AM

2. Old news

like since the Mining Act of 187?. this has been going on forever, the actual market value may have changed over the years but the fact that they are ripping us off and have been all this time is not new. But I'm glad you brought it out in the open for more people to see and think about. I will say thank you here.

It's too bad more people aren't enraged and engaged regarding this issue, it might have been changed by now. I never thought the figures we were seeing in the media were correct or even close. It's the same with oil, gas and timber... been that way for a long time. Oh, and did I mention public land grazing aka welfare ranching?


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Response to 2naSalit (Reply #2)

Mon Feb 11, 2013, 02:30 AM

6. Yep. Just another item on the endless list of private welfare parasites stealing from the people. nt

 

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Response to kpete (Original post)

Mon Feb 11, 2013, 12:52 AM

3. Then they dump cleanup and land reclamation costs onto the taxpayers.

More corporate welfare.

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Response to kpete (Original post)

Mon Feb 11, 2013, 12:55 AM

4. Disgusting....

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Response to kpete (Original post)

Mon Feb 11, 2013, 02:22 AM

5. perhaps the POTUS will call for a solar revolution in his SOTU next week... nt

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Response to msongs (Reply #5)

Mon Feb 11, 2013, 05:47 PM

7. I don't give a rat's ass about what he says in TSOTU

I want to see some real action regarding these issues, talk s cheap and getting cheaper by the hour.

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Response to kpete (Original post)

Mon Feb 11, 2013, 07:30 PM

8. to be fair, they pay $0.25 per ton PLUS the costs of extraction, transport, workforce...

...remediation (if any), and so on. Not defending the coal industry, just trying to counter an obvious example of selective reporting.

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Response to kpete (Original post)

Mon Feb 11, 2013, 09:17 PM

9. One wonders if a less than 1% royalty for coal mined on public lands is corporate largess and

welfare so odiously pungent as to smell to high heaven in comparison to the Teapot Dome hullabaloo.

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Response to kpete (Original post)

Mon Feb 11, 2013, 09:27 PM

10. Big gubmint greed

Please ignore the facts

nothing to see here


move along




:whistles:

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