The Falkirk Mine lease in North Dakota was recently acquired by Falkirk Mining Company of Underwood, N.D., after an auction was completed by the Bureau of Land Management. The acquisition will allow 11.3 million tons of federal coal to be mined for $79,996 at Falkirk Mine in McLean County, N.D. The deal is the latest lease that takes advantage of the Trump administration’s new approach to the energy sector and has several environmental groups up in arms over the alleged circumvention of environmental protection laws.
The BLM has been leasing several sites that have environmentalists up in arms
The BLM has been on a leasing rush as of late, as they aim to take full advantage of the Trump administration’s apparent new approach to the energy sector in the United States. The site will generate annual rental fees of $3 per acre and a 7% royalty payment on coal produced. Those royalties will be allocated evenly between the State of North Dakota and the U.S. Treasury.
“This coal sale reflects the BLM’s ongoing commitment to advancing the Administration’s energy strategy. By expanding access to federal resources, we’re helping power the nation, strengthen local economies, and ensure energy security for American communities.” – BLM Montana/Dakotas State Director Sonya Germann.
The lease sale is perfectly aligned with the Trump administration’s Executive Order 14154, “Unleashing American Energy.” That executive order directs energy companies in the United States to remove regulatory barriers and encourage energy exploration and production on federal lands. Which has not gone down well with the litany of environmental groups in the region.
Several coalition groups have opposed the new approach to the sector
The energy sector in the United States is going through somewhat of a revolution at the moment. The new approach to removing regulatory restrictions in order to revitalize the flailing energy sector in the United States. Donald Trump is known for making outlandish claims that don’t necessarily amount to actual policy change.
However, to his credit, the Trump administration has identified the energy sector as one where it can live up to its campaign promises. The executive order suggests that the United States is in “an emergency situation”, which allows the companies applying for the leases to circumvent the traditional environmental regulations that are usually implemented in this type of deal.
BLM hosted an online hearing to allow for comments on the deal, and several organizations took it upon themselves to submit comments on the matter. What those comments might achieve is not yet clear, but at least there is some movement on the opposite end of the environmental side. The DOI has been taking steps to improve the status of the energy sector in the United States.
“In the past, the Department of Interior, the Bureau of Land Management and the Office of Surface Mining would notify people of a public comment period and try to encourage public involvement, but that’s clearly not what happened here,” – Shiloh Hernandez, an Earthjustice attorney
Will we see more leases being sold in the North Dakota region
While the Trump administration’s new stance towards the energy sector has some screaming foul, the majority of people in the region have welcomed the administration’s executive orders that aim to revitalize the energy sector. The 800 acres of federal land will be a welcome addition to the portfolio of the Falkirk Mining Company. Several energy companies in the region are looking to expand their operations across the renewable and non-renewable sectors. The leasing of federal lands for drilling and exploration is not a new concept, but the accelerated approval and leasing practices have some concerned about the long-term effects they might have.
