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.