Proposed royalty rules put long-term PRB coal exports at greater risk
The US Department of Interior (DOI) has proposed changes to the determination of royalties and coal lease sales as part of a general overhaul of energy valuation rules for coal, oil and gas. We find that the proposed royalty scheme may lower royalty revenues for many years. However, after 2025, when PRB coal is in greater demand, the new royalty scheme will result in much greater royalty revenues and lower producer margins which combination could threaten PRB exports.
Table of contents
What part of the proposed new rule is relevant to export sales from the PRB?