Re: How Bad Is Global Warming?
Posted: Tue Aug 20, 2013 9:48 pm
see link for full story
http://desmogblog.com/2013/08/20/great-maysdorf-ii-scam
Tue, 2013-08-20 14:02Ben Jervey
Ben Jervey's picture
Maysdorf II By the Numbers: BLM's Big Coal Giveaway Tomorrow
Tomorrow, the Bureau of Land Management will sell off roughly 148 million tons of coal. The BLM is opening the sealed bids for the so-called "Maysdorf II" tract in the heart of the Powder River Basin in Wyoming. The coal will likely be sold to Cloud Peak Energy, which operates the adjacent Cordero Rojo mine, one of the nation's largest strip mine operations.
Cloud Peak Energy's Tesoro Rojo mine, soon to be expanded. Video by Greenpeace.
According to Joe Smyth of Greenpeace, who penned a great post putting this sale (and another, even larger coal lease scheduled for next month) in the context of President Obama's recent climate announcements, the coal will be sold for roughly $1-per-ton. That represents a deep discount below market rates, which is what you'd expect from a lease auction with only one bidder.
The environmental groups aren't the only ones raising the red flags about this controversial auction process. The Interior Department's own Inspector General issued a report earlier this summer that criticized the agency for failing to consider the exports of Powder River Basin coal, and that Americans were losing hundreds of millions of dollars in these closed-bid (frequently single-bidder) auctions.
The Institute for Energy Economics and Financial Analysis (IEEFA) carried the numbers out further, finding that Americans have been shortchanged nearly $30 billion for all of the existing leases in the Powder River Basin over the past three decades, because the BLM failed to set a fair value for the price of the coal to be mined. (It should be noted that the calculation of "fair market value" by the BLM is notoriously arcane and complicated. That IEEFA report does some incredible work explaining it. You can dig in for yourself if you'd like. Jump ahead to page 26.)
Seeing as the bidding will be opened tomorrow, let's piggy-back on Smyth's post and crunch some more numbers about this particular lease.
Maysdorf II, by the numbers
1,338 acres: Size of the "Maysdorf II" coal tract to be leased
148,565,000 tons: Mineable coal in the "Maysdorf II" tract
$163 million: Potential revenue generated by the lease (estimating price from last auction in the region)
$1.5 billion: Value of mined "Maysdorf II" coal on the open market
241 million metric tons: Carbon dioxide to be released by mined coal*
50 million cars: Equivalent emissions of "Maysdorf II" coal in American passenger car annual emissions
12.6 days: How long it would take China to burn through all of the "Maysdorf II" coal.
http://desmogblog.com/2013/08/20/great-maysdorf-ii-scam
Tue, 2013-08-20 14:02Ben Jervey
Ben Jervey's picture
Maysdorf II By the Numbers: BLM's Big Coal Giveaway Tomorrow
Tomorrow, the Bureau of Land Management will sell off roughly 148 million tons of coal. The BLM is opening the sealed bids for the so-called "Maysdorf II" tract in the heart of the Powder River Basin in Wyoming. The coal will likely be sold to Cloud Peak Energy, which operates the adjacent Cordero Rojo mine, one of the nation's largest strip mine operations.
Cloud Peak Energy's Tesoro Rojo mine, soon to be expanded. Video by Greenpeace.
According to Joe Smyth of Greenpeace, who penned a great post putting this sale (and another, even larger coal lease scheduled for next month) in the context of President Obama's recent climate announcements, the coal will be sold for roughly $1-per-ton. That represents a deep discount below market rates, which is what you'd expect from a lease auction with only one bidder.
The environmental groups aren't the only ones raising the red flags about this controversial auction process. The Interior Department's own Inspector General issued a report earlier this summer that criticized the agency for failing to consider the exports of Powder River Basin coal, and that Americans were losing hundreds of millions of dollars in these closed-bid (frequently single-bidder) auctions.
The Institute for Energy Economics and Financial Analysis (IEEFA) carried the numbers out further, finding that Americans have been shortchanged nearly $30 billion for all of the existing leases in the Powder River Basin over the past three decades, because the BLM failed to set a fair value for the price of the coal to be mined. (It should be noted that the calculation of "fair market value" by the BLM is notoriously arcane and complicated. That IEEFA report does some incredible work explaining it. You can dig in for yourself if you'd like. Jump ahead to page 26.)
Seeing as the bidding will be opened tomorrow, let's piggy-back on Smyth's post and crunch some more numbers about this particular lease.
Maysdorf II, by the numbers
1,338 acres: Size of the "Maysdorf II" coal tract to be leased
148,565,000 tons: Mineable coal in the "Maysdorf II" tract
$163 million: Potential revenue generated by the lease (estimating price from last auction in the region)
$1.5 billion: Value of mined "Maysdorf II" coal on the open market
241 million metric tons: Carbon dioxide to be released by mined coal*
50 million cars: Equivalent emissions of "Maysdorf II" coal in American passenger car annual emissions
12.6 days: How long it would take China to burn through all of the "Maysdorf II" coal.



