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Montana environmental news covering wild things, climate, energy and natural resources.

Feds reject massive coal lease bid of less than a penny per ton

A Coal Mine in the Powder River basin.
U.S. Geological Survey
A Coal Mine in the Powder River basin.

Federal officials have rejected an offer to mine coal on federal lands in southeastern Montana. The U.S. Department of the Interior turned down a bid from the Navajo Transitional Energy Company to mine over 160 million tons of coal in the Powder River Basin. Had it gone forward, it would have been the largest federal coal lease sale in over a decade.

The Biden administration ended lease sales in the region, given the planet-warming emissions from burning coal, and a transition towards renewable energy.

The Trump administration reversed course and is pushing for increased fossil fuel extraction on federal lands. In late September, the administration opened over 13 million acres of federal land to coal leasing as part of a push to revive the dying industry.

The tribally owned company was the only bidder for the lease, which would have totaled less than a penny per ton.

Government work on fossil fuel permitting has continued during the government shutdown.

Ellis Juhlin was formerly MTPR's Environment and Climate Reporter. She worked at MTPR until June of 2026.
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