A federal judge said Wednesday that the United States government broke the law when it delayed a rule updating how royalties are calculated when companies drill and mine offshore and on federal and tribal lands. Those royalties are paid out to states, tribes and the United States government. After five years of analysis, meetings with stakeholders and public comment, in 2016 the Office of Natural Resource Revenue (ONRR) issued a rule updating valuation rules, which had been set in the 1980s. ONRR estimated the changes would increase royalty collections by $71.9 to $84.9 million annually. The rule took effect on January 1, 2017 and initial reports were due in February.
As carbon dioxide levels hit levels unseen in 650,000 years and global temperatures continue to rise, the United States government is rolling back climate change policies. On Tuesday, President Donald Trump signed an executive order revoking and rescinding all Obama-era orders and reports addressing climate and clean energy. He also ordered the U.S. Environmental Protection Agency to review and revoke the Clean Power Plan, which would have required states to cut greenhouse gas emissions from power plants. Last year, the U.S. Supreme Court stayed implementation of that plan, pending the outcome of a lawsuit against the EPA by utilities, the coal industry and 24 states. New Mexico, through Attorney General Hector Balderas, was one of 25 states, cities and counties to file a motion to intervene in support of the plan.
The Trump administration is blocking a new rule that would have changed how royalties from private coal mines on federal and tribal lands are calculated. When announcing the new rules in 2016, the U.S. Department of the Interior officials said they would provide greater consistency to private companies and higher royalty payments to taxpayers and tribal governments. Mining companies opposed the changes and sued in federal court. As reported last week by the Associated Press: Rules in place since the 1980s have allowed companies to sell their fuel to affiliates and pay royalties to the government on that price, then turn around and sell the coal at higher prices, often overseas. Under the suspended rule change, the royalty rate would be determined at the time the coal is leased, and revenue will be based on the price paid by an outside entity, rather than an interim sale to an affiliated company.
The Navajo Generating Station is on the Navajo Nation near Page, Arizona. But the plant’s closure in 2019, announced last week by Salt River Project, will have implications across the West. The coal-fired power plant is among the region’s largest polluters, contributing to smog at National Parks like the Grand Canyon and emitting 44,000 tons of carbon each day. It also employs nearly 1,000 people, most of whom are from the Navajo Nation or the Hopi Tribe. The Associated Press covered the announcement from SRP and how it might affect local economies and the Kayenta Mine, which is owned by Peabody Energy and has supplied coal to the plant for decades.
Today, Gov. Susana Martinez presided over a ribbon cutting ceremony at the Waste Isolation Pilot Plant in southeastern New Mexico. The underground nuclear waste repository is officially back in action, nearly three years after two fires shut down operations. According to a story in last week’s Carlsbad Current-Argus, the facility’s employees started moving waste into the salt caverns last Wednesday: Rick Fuentes, president of the local chapter of the United Steelworkers Union and waste handler at the site, confirmed that two pallets of low-level radioactive waste were emplaced near Room 5 in Panel 7 at 12:45 p.m. Wednesday. “It went great,” Fuentes, who did not assist in the waste emplacement, said. “We’re excited to be back to work.”