coal exports

Wed, 2014-04-16 11:44Guest
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Washington Gov. Jay Inslee Hires Coal Lobbyist to Direct Policy Office

This is a guest post by Eric de Place, originally published on Sightline Daily and cross-posted with the Sightline Institute's permission.

In a classic instance of the revolving door between government and industry, Governor Inslee has decided to hire Matt Steuerwalt as the director of his policy office effective May 1. In recent years, Steuerwalt has acted as a lead lobbyist for coal-fired power in Washington, as well as for a now-defunct coal export proposal. The news was first announced by Steuerwalt in a mass email sent last night.

The state is now wrestling with two major policy issues connected to coal: whether to permitlarge-scale coal export terminals and whether to phase out coal-fired electricity imported from other states. Given that Steuerwalt has recently been a paid lobbyist in support of coal in Washington, the move raises question about whether he will use his influence in the Inslee administration to advance an agenda more favorable to the coal industry.

Steuerwalt was formerly Gov. Gregoire’s top advisor on energy and climate issues, but he left the Gregoire administration to go to work for Strategies 360, a well-connected lobbying and PR shop. He then led negotiations against his former employer on behalf of TransAlta, a giant Canadian energy company that was wrangling with the Gregoire administration over plans to ramp down coal-burning at its power plant in Centralia. He also lobbied on behalf of TransAlta in both the House and Senate.

Fri, 2014-02-07 12:21Ben Jervey
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GAO Hiding Crucial Documents From The Public While Calling for More Transparency in BLM Coal Leases

On Tuesday, the Government Accountability Office released a much-anticipated report about the Bureau of Land Management's coal leasing program, revealing it has stiffed taxpayers over $200 million.

The GAO blames a lack of competition in the bidding process, reliance on outdated and incomplete methods to determine “fair market value” of the coal reserves, a disregard of coal exports and their impact on fair valuation, and a blatant lack of transparency in the leasing program.  

Senator Edward Markey, who had requested the GAO investigation in 2012 while he still served in the House, responded immediately to the report's findings. The GAO didn't address specifics on how much public revenue might have been lost by mismanaged leases and auctions.

Senator Markey explained that based on an examination of the report and other coal leasing documents that were not made public, his staff figured that the the BLM could have earned at least $200 million more for the American public if managed properly. 

Unfortunately, the coal leasing documents investigated by Markey's staff aren't available to the public, which the GAO claims is because of the inclusion of private business information. According to Ned Griffith of the GAO, the information in the report was labeled “sensitive but unclassified” by the Interior Department.

In other words, even though one of the major findings of the GAO report was a troubling lack of transparency, the office itself is shielding from public view these detailed documents about coal leases on public lands. 

Thu, 2013-09-19 14:37Ben Jervey
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An End to Powder River Basin Coal Leases? Second Auction in Two Months Fails to Seal a Mining Deal

The Bureau of Land Management is having a hard time getting rid of our publicly owned coal. For the second time in two months, a federal coal lease auction resulted in no sales.

On Wednesday, the BLM announced that it was officially rejecting the lone bid on the Hay Creek II coal lease tract in Wyoming. The lone bidder, Kiewit Mining Properties, had offered a measly $0.21-per-ton of the estimated 167 million tons of mineable coal in the Hay Creek II tract. The BLM declared that the bid “did not meet fair market value” and rejected it.

Hey, at least we can’t accuse the BLM of literally giving away coal on public lands.

This failure to secure a suitable bid comes on the heels of last month’s stunning news that there were absolutely no bids for the auction of the Maysdorf II tract, also in the Powder River Basin in Wyoming.

If these two failed auctions represent a larger trend, it is that the market for coal has gotten so bad that even the BLM’s bargain bin prices are too high for industry to pay. And, yes, the BLM’s prices are cheap, as they’ve leased over 2 billion tons of coal in the Powder River Basin alone since 2011 at an average of around $1-per-ton.

That price point was criticized in a recent report by the Interior Department’s own Inspector General, which accused the BLM of failing to factor international markets and coal exports into their “fair market values,” and which calculated that for every cent that publicly-owned coal deposits are undervalued, American taxpayers get stiffed by $3 million.

Tue, 2013-08-20 14:02Ben Jervey
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Maysdorf II By the Numbers: BLM's Big Coal Giveaway Tomorrow

Update Aug 23: In a stunning development, there wasn't a single bid at the BLM auction, with Cloud Peak Energy passing up the chance to bid out of fear that it would not be profitable.   

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.

Fri, 2013-08-16 10:51Steve Horn
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Warren Buffett Buys Over $500 Million of Suncor Tar Sands Stock, Latest in "Dirty Deeds Done Dirt Cheap"

Warren Buffett - the fourth richest man on the planet and major campaign contributor to President Barack Obama in 2008 and 2012 - may soon get a whole lot richer.

That's because he just bought over half a billion bucks worth of Suncor Energy stock: $524 million in the second quarter of 2013, to be precise, according to Securities and Exchange Commission filings. Suncor is a major producer and marketer of tar sands via its wholly owned subsidiary Petro-Canada (formerly Sunoco) and this latest development follows a trend of Buffett enriching himself through dirty investments and deal-making. 

So far in 2013, Suncor (formerly Sun Oil Company) has produced 328,000 barrels per day of tar sands crude.

Though he receives far less negative press than the Koch Brothers, Buffett's no deep green ecologist. Not in the slightest. 

Referred to as one of 17 “Climate Killers” by Rolling Stone's Tim Dickinson in a January 2010 story, Buffett owns the behemoth holding company, Berkshire Hathway. It's through Berkshire that he's making a killing - while simultaneously killing the ecosystem - through one of its most profitable wholly-owned assets: Burlington Northern Santa Fe (BNSF).

Buffett purchased BNSF for $26 billion and was “the largest acquisition of Buffett's storied career,” Dickinson wrote.

BNSF hauls around frac sand for the controversial horizontal oil and gas drilling process known as “fracking.” The rail company also moves fracked oil from North Dakota's Bakken Shale basin, tar sands logistical equipment and tar sands crude itself and tons of coal. And not only does Buffett's BNSF haul around ungodly amounts of coal, he actually owns coal-burning utility companies, too.

Tue, 2013-07-02 08:00Steve Horn
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Tar Sands Coal Export Boom: Petcoke Exports Second Highest Ever in April

With many eyes honed in on the Powder River Basin coal export battle in the Northwest, another coal export boom is unfolding on the U.S. Gulf Coast. Although no coal production is actually taking place here, a filthy fuel with even more severe climate impacts than coal is leaving port bound for foreign power plants. 

Meet petroleum coke, or “petcoke,” what Oil Change International described in a Jan. 2013 report as “The Coal Hiding in the Tar Sands.” 

Petcoke “is a byproduct of coking, a process that takes very heavy oil and produces gasoil (a precursor to diesel or vacuum gasoil) and naphtha,” Platts explains. “The coke is used as a fuel for power plant, in a kiln in the production of concrete or, for some specialty grades, in the production of aluminum or other metals.”

As relayed by Platts, the Energy Information Agency (EIA) is reporting the U.S. exported the second-highest amount of petroleum coke in U.S. history in AprilEIA's April data show export levels of 17.78 million barrels, second only to Dec. 2011's 20.44 million barrels of petcoke.   

With the tar sands' expansion has come an accompanying petcoke export boom of historical proportion.

“The US exported a record 184.17 million barrels of petroleum coke in 2012, a record up over 20 million barrels compared to 2010,” Platts explained. 

According to the EIA report, China is the current top beneficiary of the U.S. petcoke export boom, importing 3.20 million barrels of petcoke in April, the third most it's ever imported from the U.S.

China imported 4.93 million barrels of petcoke from the U.S. in Dec. 2011 and another 3.64 million barrels in Jan. 2013.

Tue, 2012-10-23 05:00Steve Horn
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As You Sow: Coal Investments, Shale Gas, a Bad Bet

In a missive titled “White Paper: Financial Risks of Investments in Coal,” As You Sow concludes that coal is becoming an increasingly risky investment with each passing day. The fracking boom and the up-and-coming renewable energy sector are quickly superseding King Coal's empire as a source of power generation, As You Sow concludes in the report.

As You Sow chocks up King Coal's ongoing demise to five factors, quoting straight from the report:

1. Increasing capital costs for environmental controls at existing coal plants and uncertainty about future regulatory compliance costs

2. Declining prices for natural gas, a driver of electric power prices in competitive markets

3. Upward price pressures and price volatility of coal

4. High construction costs for new coal plants and unknown costs to implement carbon capture and storage

5. Increasing competitiveness of renewable generation resources

Thu, 2012-09-20 12:44Ben Jervey
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Army Corps Fast Tracks Port of Morrow Coal Export Terminal

The Army Corps of Engineers has decided that the transfer of coal from trains onto barges in Oregon’s Columbia River is not worthy of a full environmental impact study. For now.

At issue is the Morrow Pacific Project, a coal transfer facility that is a key pivot point in Ambre Energy’s plans to export American coal to Asia. We’ve covered this project before (here's all the background on the Morrow Pacific Project), as well as the broader strategy of coal companies to ship American coal – much coming from taxpayer-owned public lands – off to China and other overseas buyers.

Basically, Ambre Energy (an Australian coal and shale company) is planning on shipping coal by train from the strip mines in the Powder River Basin to this Morrow Pacific facility at the Port of Morrow in Boardman, Oregon. There the coal would be offloaded onto barges – at the rate of two per day at full capacity – which would then float down the Columbia River to Port Westward (roughly 30 miles north of Portland), where it would again be transferred onto massive Panamax vessels for shipment to Asia.

Wed, 2012-09-19 11:14Steve Horn
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Petroleum Broadcasting System's "Newshour" and the Merchants of Climate Doubt

There's an old German proverb that goes, “Whose bread I eat his song I sing.”

Enter a recent spate of reportage by the Public Broadcasting System's (PBS) ”Newshour.” In a September 17 story titled, “Climate Change Skeptic Says Global Warming Crowd Oversells Its Message” (with a URL titled, “Why the Global Warming Crowd Oversells its Message”) the Newshour “provided an unchecked platform for Anthony Watts, a virulent climate change denier funded by the Heartland Institute,” as described by Forecast the Facts.

Forecast the Facts created a petition demanding that the “PBS ombudsman…immediately investigate how this segment came to be aired,” stating that, “This is the kind of reporting we expect from Fox News, not PBS.”

Very true, this is exactly the type of reporting we've come to expect out of Rupert Murdoch's Fox News, a cable “news” network that provides a voice for right-wing propagandists on all policy issues, including climate change denial. But perhaps expectations are too high for PBS' “Newshour” and we should've expected exactly what we got: a friendly platform for the climate change denying merchants of doubt

What's at play here goes above and beyond a single bad story by “Newshour.” Rather, it's a small piece and the result of an aggressive campaign that's been going on for nearly two decades to destroy public television in the public interest.

Based on the shift in how the “Newshour” has funded itself over the years, it's evident that the once-esteemed ”MacNeil/Lehrer NewsHour” streamed on the Public Broadcasting System has transformed PBS into what investigative reporter Greg Palast calls the “Petroleum Broadcasting System.”

Thu, 2012-05-03 12:46Steve Horn
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B.C. Protest This Saturday to Stop Warren Buffett's BNSF Coal Trains

Warren Buffett, the third wealthiest man on the planet (net worth: $44 billion), often referred to as the “Oracle of Omaha,” is the target of a May 5 action called for by Stop Coal B.C. Well, not Buffett directly, but a rail company he owns through his massive holding company, Berkshire Hathaway: Burlington Northern Santa Fe (BNSF) Railway.

BNSF Railway is the second largest freight rail company in the United States and the exclusive carrier of thermal coal from coal basins in the northwestern U.S. to docks in British Columbia, where the dirty coal is exported to the global market, primarily to Asia.

The action calls for activists to blockade BNSF's four coal-loaded freight trains from reaching their final destination for the day and in the process, risk arrest. It is part of 350.org's broader “Connect the Dots” event taking place on Saturday, with actions planned throughout the world.

The Stop Coal B.C. call to action reads,

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