United States Coal Development and the Federal Coal Leasing Amendments Act of 1975

Coal represents 90 percent of the Nation's total fossil fuel reserves; yet, it currently supplies only 18 percent of energy needs. The success of a Federal coal leasing program revolves around three key points: resource and reserve data, maximizing economic recovery, and coordinating the planning for future leasing and production between the Department of Energy (DOE) and the Department of the Interior. Current best estimates are for 3.9 trillion tons of coal: 1.7 trillion tons are called identified resources and 2.2 trillion tons are called hypothetical (undiscovered) resources. The Department of the Interior does not use specific economic factors in making its reserves estimates. Use of their estimates would result in lower development requirements and understatement of continued operation requirements. Several provisions of the Federal Coal Leasing Amendments Act of 1975 were designed to insure a fair market return to the public, but site-specific information on economically recoverable coal reserves is needed if fair market return provisions of the act are to function. The act requires that the competitive impact of a lease on the coal industry be determined and that Federal coal lands be used to promote competition. The Federal Government should advise State and local officials about the availability of Federal assistance to communities affected by energy development. Railroads carried 65 percent of the Nation's coal during 1975, and they will continue to be the principal coal transporters in the forseeable future.