Home > newsroom > Page
Obama Administration's Coal Mining Regulation will be Over-budget, Overdue, and Cost Thousands of Jobs and Energy Security

WASHINGTON, D.C., March 6, 2012 - Today, the Subcommittee on Energy and Mineral Resources held an oversight hearing on the Office of Surface Mining Reclamation and Enforcement (OSM) Fiscal Year 2013 Budget and received testimony from OSM Director Joe Pizarchik on the status of the Obama Administration’s actions to initiate rewrite coal mining regulations. Direct analysis by contractors hired to conduct the rewrite showed the regulations could cost up to 7,000 direct coal mining jobs and cause economic harm to 22 states across the country.

At the hearing Committee Members specifically questioned the amount of taxpayer dollars being spent to expedite a rewrite of a rule completed in January, 2009 after five years of extensive environmental and scientific review to complete. According to Pizarchik, the Obama Administration has already spent $3.7million to pay for a contractor that was terminated and awarded Industrial Economics a contract for over $1 million to finish rewriting the rule. Pizarchik was unable to say how much of OSM’s own man-hours have been invested into the process.

When asked by Chairman Lamborn how much more taxpayer money will be needed to finish the rule, Pizarchik replied, “I don’t know specifically how much more...

However, the total cost of the rulemaking process is assured to be even more expensive.

Director Pizarchik also admitted OSM will miss their June 29, 2012 deadline to finalize the rule, which was set by a settlement agreement between the National Parks Conservation Association and the Interior Department, which could lead to additional litigation and spending more money.

Chairman Lamborn: “Do you anticipate finalizing this new rule by June 29th of this year?”
Director Pizarchik: No.
Lamborn: “What do you estimate the timeframe to be?”
Pizarchik: I don’t have an estimate of the timeframe at this point.

OSM has already missed one deadline required by the settlement – to issue a proposed rule by February 28, 2011.

However, a recent study by ENVIRON calculates it will cost over 55,000 directing mining jobs and more than 270,000 total jobs.


Printable PDF of this document

Contact: Jill Strait, Spencer Pederson or Crystal Feldman 202-226-9019

Latest News

Obama Administration Ignores Record of Federal Paternalism, Mismanagement on Tribal Lands

Last week, Department of the Interior (DOI) Secretary Sally Jewell issued a secretarial order to encourage cooperation with federally recognized tribes in the management of federal lands. Chairman Rob...... Read more

Administration More Interested in Destroying Dams than Generating Affordable Hydroelectricity

Yesterday, Department of the Interior (DOI) Secretary Sally Jewell urged the Federal Energy Regulatory Commission to approve the destruction of four dams on the Klamath River in California and Oregon....... Read more

Bishop: Special Interests, Courts are De-facto Arm of Obama Administration in Charge of ESA Policy

In abiding to a recent court order that vacated the Obama Administration’s withdrawal of a proposed rule to list the North American wolverine as threatened under the Endangered Species Act (ESA), the ...... Read more

View All News


No upcoming scheduled events

View All Events