BOZEMAN, Mont. - Federal royalties for coal on public land are getting a checkup. The Office of Natural Resources Revenue is considering changes, and a report released today by Headwaters Economics looks at what that might mean for Montana and other coal states.

Report author Mark Haggerty said the current system has loopholes that have meant about $850 million was not collected from 2008 to 2012. The report recommends that royalties be calculated based on market value instead of the mixture of valuations that exist now.

"That simplified structure creates transparency," Haggerty said. "it greatly simplifies and reduces the cost of administering the royalty program, and it ensures a fair return to taxpayers."

Haggerty said the reason this is so important is that coal markets have changed. U.S. coal now often is destined for overseas markets, and the original system was designed with domestic supply in mind - so keeping prices low would benefit the U.S. economy, not that of another country.

"Complicated" is how Haggerty described the coal royalty system.

Other considerations: When higher federal royalties are collected, it would mean less state revenues in certain taxes. So, the report delved into those consequences.

"The increase in royalty distributions from the federal government would exceed the lower state revenues that they would collect directly," Haggerty said. "So, states would benefit from higher royalties."

The changes also may include reducing coal companies' deduction for transportation costs - currently at 100 percent. A decision on changes in the royalty system is expected this spring.

The report is online at headwaterseconomics.org.


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This month, the federal government announced funding for next year's wildfire management, totaling $236 million and experts hope threatened communities in Wyoming receive some of the funds.

Money from the Bipartisan Infrastructure Law will be used to help reduce wildfire risk, improve firefighter training, rehabilitate burned areas and advance research, according to the Interior Department. The focus areas are partly based on a report last year by the Wildland Fire Mitigation and Management Commission, with 148 recommendations on how the U.S. can approach fires more effectively.

Kimiko Barrett, wildfire researcher and policy analyst for the nonprofit research group Headwaters Economics and a member of the commission, said the recommendations build off one another but the federal government has focused on some more than others.

"It's not surprising that some of the policy is cherry-picking those recommendations that seem to be easiest or more reasonable, given the time constraints of the current administration," Barrett asserted.

The U.S. House of Representatives will consider a bipartisan bill this month, called the "Fix Our Forests Act." It could adjust permitting under the National Environmental Protection Act to make wildfire prevention projects happen faster, among other changes.

Most wildfire management is supported at the federal level, through agencies that manage public lands, as well as state foresters and natural resource managers.

Barrett notes communities are often the first line of defense when a fire ignites.

"Communities and counties need to be additionally empowered and provided the funding, the resources, the technical assistance, to be able to have more ownership over becoming more resilient," Barrett contended.

Barrett added the protection of the built environment is especially important to communities, including home and neighborhood infrastructure.


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A sanctuary for stargazing in Oregon is the largest in the world and is set to get even bigger.

In eastern Oregon, the organization DarkSky International declared 2.5 million acres of the Oregon Outback International Dark Sky Sanctuary in the first phase of its process in March. It plans to increase the sanctuary to more than 11 million acres in the next few years.

Damon Motz-Storey, director of the Oregon chapter of the Sierra Club, recently visited the area.

"Anybody who's visited it on a clear summer night or otherwise will agree that it is very spectacular," Motz-Storey observed. "It's a very unique and amazing place to stargaze and get into astronomy."

Motz-Storey pointed out the area is far from urban centers like Portland and Boise, and is sparsely populated. It is estimated more than 2.5 times as many stars are visible than in urban areas. DarkSky International has designated sanctuaries since 2007 and the Oregon Outback is the first in the state.

Motz-Storey emphasized protecting dark areas is good for wildlife and humans alike because both are affected by artificial lighting.

"These kinds of designations help to spread awareness around people preserving the dark sky for both wildlife and human enjoyment," Motz-Storey stressed. "And also to serve as a little bit of a warning signal to future development to say, hey, this is really worth preserving."

Within the Oregon Outback is an area known as the Owyhee Canyonlands. However, Motz-Storey noted Congress has been unable to pass protections for the unique landscape. A coalition of organizations, including Motz-Storey's, are pushing the Biden administration to declare it a national monument.

"That would pair very nicely with this dark sky designation and help to protect everything that's on the ground around the Owyhee Canyonlands, which is just as special as the sky you look up at," Motz-Storey contended.

A new poll indicates strong support for protections of the West's greater sage-grouse. The results come as the U.S. Bureau of Land Management considers a plan for improving conservation of the bird. BLM is reviewing public comments on its draft environmental impact statement for amending and strengthening sage grouse protections. The agency has plenty of public support for this: a poll commissioned by The Pew Charitable Trusts found 93% of people surveyed back the BLM's efforts to protect the bird and its habitat.

Tyler Dungannon, conservation coordinator with Oregon Hunters Association, said many support even greater protections.

"In the Western U.S., roughly 70% favored restricting some development of specific public lands to ensure long term habitat protections for sage grouse," he explained.

The poll also found that nearly 60% of respondents say sage grouse conservation efforts boost economic development. Oregon Department of Fish and Wildlife data from 2019 says hunting, fishing and wildlife viewing fueled $1.2 billion in spending in the state.

Josh Collins, a retired landscape ecologist in Bend, said there are positives to BLM's plans for conserving sage grouse, including the expansion of Areas of Critical Environmental Concern for the bird and the agency elevating conservation as one of is priorities on public lands. But he added that there's also room for improvement, such as a focus on ensuring sage grouse chicks have wildflowers to feed on in their first few weeks of life.

"One of the things missing in the BLM report and almost every other state or federal report concerning the sage grouse is a focus on the dietary needs of the chicks and the brood hens," he continued.

Collins adds that bringing back the sage grouse means bringing back wildflowers in the region, which will benefit other species.

"Young pronghorn benefit from that, they eat wildflowers. And, of course, the pygmy rabbit does. Many birds are feeding on the insects that are attracted by the wildflowers. So, the wildflower is kind of a missing piece of the foundation of the ecological health for the whole system," he said.


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