Research conducted by the Institute of Energy Economics and Financial Analysis suggests that the BLM sells federally owned coal for less than fair market value by failing to implement competitive auctioning of coal leases in the Powder River Basin.

Since 1991, only four of 26 major Powder River coal sales have had more than one bidder, and many so-called competitive sales had only two bidders.

The IEEFA said the BLM program was “not connected to reality” noting that the government agency has not even officially recognized Powder River as a coal production region, thus resulting in lower lease prices.

IEEFA director of finance Tom Sanzillo said the devaluation of American coal could mean more than just lost domestic revenues.

“The coal boom in electric power generation in America has been fueled by artificially cheap coal from the Powder River Basin,” he said.

“Now there is the prospect that US taxpayers are effectively subsidizing the expansion of other nations, including China, with underpriced coal that is being exported. Given future mining projections — 12 billion tons by 2035 — it is time for Congress to re-evaluate the program.

“The last meaningful public discussion regarding the agency's mission and program was nearly 30 years ago. The stakes are much higher now.”

Report recommendations include reinstating the Powder River Basin as a “coal production region” and a fundamental review of the federal coal-leasing program beginning with an evaluation of the use of US coal assets.

The IEEFA also called for an independent entity to evaluate the BLM’s “mostly secret” coal-leasing program for 10 years reporting regularly to the president, congress and the public.

“Our new report makes it clear that BLM is failing US taxpayers on a colossal scale,” IEEFA executive director David Schlissel said.

“This is a textbook example of what happens when the government operates with almost zero transparency.”