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Proposed coal exchange could unlock up to 250 million tons of coal

A dragline works to expose coal at a Powder River Basin coal mine in July 2024. (Dustin Bleizeffer/WyoFile, courtesy EcoFlight)

 

By Jonathan Gallardo
Gillette News Record
Via- Wyoming News Exchange

GILLETTE — Campbell County Commissioners are supportive of a proposed exchange of coal between a private landowner and the state of Wyoming.

At the county commission meeting last week, McKenna Sorenson and Charles Sorenson, agents representing the Hall Ranch in northern Campbell County, presented a proposal that, in theory, would bring in hundreds of millions of dollars in tax revenue to the state.

The Hall Ranch has 130 million tons of privately owned coal that cannot be mined after a ruling by the federal government in the 1970s.

“The EPA said it shouldn’t be mined because of the water table around it,” McKenna Sorenson said. “It was too good of overlying land to be mined…when you reclaim it, it wouldn’t come back the same way as other places.”

The Hall Ranch has been in litigation with the federal government over this coal since the late 2000s. 

“What we realized is there’s so much coal here in Campbell County that’s been stranded in the school sections that our (private) coal would be able to be exchanged with the federal coal that would be able to unlock those school sections,” she said.

The state sections are locked because of a “little tiny federal piece of land,” she added.

If the state buys the coal from the Hall Ranch, it can negotiate with the federal government and choose which section it wants to exchange it for. If the state exchanges it for a section of coal that is next to a currently locked state-owned section, that would open up about 250 million tons of coal for potential future mining.

Sorenson said it’s like if the government decided to build a road through someone’s house. Instead of paying that homeowner a sum of money, “They say, ‘Go to a subdivision and pick a different house.’”

“And instead of us picking one house, we give the state the option, and they’ll be able to get three houses,” she said.

Sorenson said the Hall Ranch has been talking with the state about this move, and it is “very interested” in this proposal.

“They already have resources dedicated to purchasing coal in Wyoming,” she said.

The state is better equipped to handle negotiations with the federal government.

“You don’t think of trading this courthouse for a federal courthouse…that’s really what this is,” Charles Sorenson said.

“The more support we have going into that meeting with the five state officials would be very beneficial to getting this cleared up,” McKenna said.

The commissioners were supportive of this move, and they noted the urgency.

“There is a unique time here under the Trump administration to get this pushed through after your long efforts and persistence,” said Commissioner Jim Ford.

They signed a letter of support that was sent to each of the five members of the State Land and Investment Board. Sorenson said this will not make it onto the board’s April agenda, but she’s hopeful it will go before the board at its following meeting.

 

The letter of support

Campbell County has long been a cornerstone of Wyoming’s energy economy, the letter states, and transactions that promote orderly development, enhance recoverability of mineral resources and provide economic certainty for operators and communities alike are in the best interests of both the County and the State of Wyoming.

Accordingly, the Campbell County Board of County Commissioners formally supports the following:

  • The timely completion and execution of the Hall Ranch / Wildcat Creek AVF Fee Coal Exchange;
  • Coordination with the Wyoming Office of State Lands and Investments regarding potential related State coal exchange components; and
  • Continued interagency collaboration to ensure efficient implementation consistent with state and federal law. 

“We appreciate the opportunity to review this proposal and look forward to its successful advancement for the benefit of Campbell County and the State of Wyoming,” commissioners stated in the letter.

The above story may be used ONLY by members of the Wyoming News Exchange or with the express consent of the newspaper of its origin.

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