Insight
Proposed royalty rules put long-term PRB coal exports at greater risk
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Report summary
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
- Summary
- Background
- What part of the proposed new rule is relevant to export sales from the PRB?
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Implications
- Key elements of existing and proposed royalty schemes
- Estimated royalty revenue for existing and proposed royalty rules (US$ millions)
- Competition
- Uncertainties
- Conclusions
Tables and charts
This report includes 4 images and tables including:
- Competition for sub-bituminous markets in South Korea, 2015, existing royalties incl in mining costs
- Competition for sub-bituminous markets in China, 2030, existing royalties incl in mining costs
- Proposed royalty rules put long-term PRB coal exports at greater risk: Table 1
- Proposed royalty rules put long-term PRB coal exports at greater risk: Image 1
What's included
This report contains:
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