The effective royalty rate on coal — measured against market prices — is 4.9 percent, well short of statutory rates (12.5 percent and 8 percent on surface and underground coal), and lower than the effective rate on natural gas (9.7 percent), according to our research at Headwaters Economics…
In addition, the BLM should create a natural resources trust fund for the benefit of communities near public lands. We estimate BLM could build up a fund of more than $8 billion over 20 years that can fund infrastructure, schools, and economic development activities in communities exposed to the boom and bust dynamics of fossil fuel extraction.
