Travis Detaime, executive director of the Wyoming Mining Association, told the Select Federal Natural Resource Management Committee on July 1 that federal coal leasing is a long, multi-step process and that recent federal policy changes have revived interest in new leases.

“Concept to shovel” is the industry shorthand for the full timeline from initial idea through exploration, leasing, permitting and mine construction, Detaime told the committee. He said the full process typically takes 10 to 16 years and that most coal mined in Wyoming is federal coal and therefore requires a federal lease.

The process Detaime described begins with an exploration license from the Bureau of Land Management (BLM), which can take about two years, followed by a lease-by-application process that includes state and agency consultations, a site-specific environmental analysis, public hearings and a permitting sequence that involves state and federal agencies. He said the federal leasing decision can take four to seven years and state permitting (including Wyoming Department of Environmental Quality approvals) follows.

“The total elapsed time contained anywhere from 10 to 16 years,” Detaime said. He cited the most recent approved lease — in 2012 — as an example of how long the full process can take, and said that a decade without routine leasing has eroded institutional knowledge in agencies and companies.

Why it matters: Detaime argued that several near-term trends will increase energy demand — including data centers and electrification — and that coal, gas and nuclear will all be needed. He said that about 3.2 billion tons of federal coal are currently under lease in Wyoming, mostly in the Powder River Basin, but that not all leased tonnage is mineable or economic. He also warned that long lead times mean Wyoming is “behind the eight ball” relative to projected demand.

Policy details and recent changes: Detaime credited work by the Wyoming Energy Authority and state action that reduced the state severance tax, and he described a federal royalty adjustment (he said the federal coal royalty was reduced to 7.5%) as making Wyoming coal more competitive. He identified a handful of specific federal actions: the Black Butte lease approval, activity at Emtek-related mines in the Powder River Basin and an outstanding package at the Buckskin Mine. He said one sale, the Antelope sale, had been put on hold.

Detaime also noted market dynamics: he said U.S. Energy Information Administration and Department of Energy studies project large increases in electricity demand over coming years and that utilities are reconsidering earlier retirement plans for some coal-fired plants.

Government shutdown and staffing concerns: Committee members asked whether a federal government shutdown affects the industry. Detaime said some permitting and inspections continue and some do not; longer shutdowns could curtail activity and cause delays. He repeatedly urged that a permanent BLM state director be appointed so agency staffing and decision-making are more stable.

Permitting primacy: Detaime said Wyoming has primacy for the coal mining permitting program under the Office of Surface Mining and that primacy helps by keeping regulators “on the ground here” and streamlining regulatory work with local expertise. He compared that to the state’s uranium recovery program, which also operates under state primacy.

Economic context: Committee members discussed royalties, bonus bids and market pricing. Detaime explained bonus bids (an upfront price paid by a successful lessee) and said royalties and taxes flow once mining and production occur. He cautioned that if leases are not offered and won, there will be no new royalties and no jobs tied to new mines.

What Detaime quoted: “Nothing from nothing is nothing,” he said to emphasize that without leasing and development, state and federal receipts and jobs do not materialize.

Ending: Committee members asked for source material; Detaime agreed to provide links to the Department of Energy and other studies he cited. The committee moved from the update into discussion of two joint resolutions drafted by legislative staff that address federal leasing and royalty splits.