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.
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Proposed royalty rules put long-term PRB coal exports at greater risk PDF - 319.38 KB 6 Pages, 1 Tables, 3 Figures
PRB new royalty rules.xls XLS - 137.50 KB
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Insight | Jan 2015
Proposed royalty rules put long-term PRB coal exports at greater risk
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