Statement of Administration Policy: H.R. 3058 - Utah Coal Lease Exchange

(House)
(Nielson (R) UT and 4 others)

The Administration strongly opposes the enactment of H.R. 3058. The bill would provide a windfall — at taxpayer expense — to the holder of Federal coal leases, the Nevada Electric Investment Company (NEICO).

H.R. 3058 would require the Secretary of the Interior to convey to NEICO bidding rights on new Federal coal leases in Utah (away from the park) in an amount equal to NEICO's investment in its coal leases near the park. In exchange, NEICO would relinquish its leases. NEICO's leases are unlikely to be developed, however, because coal near the park is lower in quality than any coal currently marketed in Utah. Moreover, the cost of bringing coal to market from the area near the park would be far greater than for coal from existing mines elsewhere in Utah, because no coal transportation system exists near the park.

The coal lease exchange required by H.R. 3058 is unnecessary for park protection purposes, and it would also compensate NEICO for making an ill-advised business decision.

H.R. 3058 is merely an attempt by NEICO to exchange its uneconomic coal leases for others with potential for development.