Cloud Peak Energy Statement on Programmatic Environmental Impact Study for Federal Coal Leasing Program
Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal
producers and the only pure-play Powder River Basin (“PRB”) coal
company, today issued the following statement on the U.S. Department of
the Interior announcement of a review of the Federal coal program and a
moratorium on new federal coal leases until the review is completed.
“We are disappointed that after a robust set of ‘listening sessions’ on
the coal leasing program last summer in which thousands of people across
the West, from working class Americans to Governors, very clearly
explained how important the coal leasing program is to their well-being
and communities, sadly the administration has chosen to pander to
special interest groups whose stated goal is to shut down the U.S. coal
industry,” said Colin Marshall, Cloud Peak Energy’s President and Chief
Executive Officer. “Indeed these special interest groups who spoke
against the current leasing system stated their objective was not to
improve it but to ensure the coal was never mined. The current leasing
system provides significant benefit to American taxpayers and is not
broken. We believe this review process is not warranted and is aimed at
delaying leases to ensure the coal is never mined, denying its economic
benefits to the nation. Cloud Peak Energy paid $354 million in taxes and
royalties to federal, state, and local governments in 2014. For the same
year, we paid an additional $69 million for leases for future
production. In the same year, our net income was only $79 million. We
urge Western lawmakers at the state and Congressional level to ensure a
timely and legitimate review process by the Department of the Interior.
We do not believe this announcement will have any immediate impact on
our operations, and we will continue serving our customers to provide
safe, reliable and affordable electricity for our nation. We have a
strong coal reserve position, in addition to our Youngs Creek and Big
Metal projects which are non-federal coal and not impacted by today’s
announcement.”
Coal produced in the PRB is world-class, with deep consistent seams,
low-sulfur and low-ash contents. PRB coal has helped America achieve
significant reductions in sulfur-dioxide emissions while still
generating the affordable electricity we all need.
In addition, federal coal is an important federal resource. It generates
significant government revenue that pays for essential services. Since
2002, Wyoming coal production has generated more than $19 billion in tax
revenue. Eliminating this revenue stream would lead to higher deficits
and additional taxes elsewhere in our economy. As the country comes out
of a deep and long recession, now is not the time to raise electricity
costs and cut an important source of revenue.
About Cloud Peak Energy®
Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and is one
of the largest U.S. coal producers and the only pure-play Powder River
Basin coal company. As one of the safest coal producers in the nation,
Cloud Peak Energy mines low sulfur, subbituminous coal and provides
logistics supply services. The Company owns and operates three surface
coal mines in the PRB, the lowest cost major coal producing region in
the nation. The Antelope and Cordero Rojo mines are located in Wyoming
and the Spring Creek Mine is located in Montana. In 2014, Cloud Peak
Energy shipped approximately 86 million tons from its three mines to
customers located throughout the U.S. and around the world. Cloud Peak
Energy also owns rights to substantial undeveloped coal and
complimentary surface assets in the Northern PRB, further building the
Company’s long-term position to serve Asian export and domestic
customers. With approximately 1,600 total employees, the Company is
widely recognized for its exemplary performance in its safety and
environmental programs. Cloud Peak Energy is a sustainable fuel supplier
for approximately four percent of the nation’s electricity.
Cautionary Note Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of
the safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are not statements of historical facts and often contain
words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,”
“estimate,” “seek,” “could,” “should,” “intend,” “potential,” or words
of similar meaning. Forward-looking statements are based on management's
current expectations and beliefs as well as assumptions and estimates
regarding our company, industry, economic conditions, government
regulations, energy policies and other factors. Forward-looking
statements include the potential impact of the regulatory matters
discussed herein on our existing or future operations and financial
results, our coal reserve position and other statements regarding our
plans, strategies, prospects and expectations concerning our business,
industry, economic conditions, operating results, financial condition
and other matters that do not relate strictly to historical facts. These
statements are subject to significant risks, uncertainties, and
assumptions that are difficult to predict and could cause actual results
to differ materially and adversely from those expressed or implied in
the forward-looking statements, including the timing, outcome and impact
of the regulatory matters discussed herein and other factors. For a
discussion of some of the additional factors that could adversely affect
our future results, refer to the risk factors described from time to
time in the reports and registration statements we file with the
Securities and Exchange Commission (“SEC”), including those in Item 1A -
Risk Factors in our most recent Form 10-K and any updates thereto in our
Forms 10-Q and current reports on Forms 8-K. There may be other risks
and uncertainties that are not currently known to us or that we
currently believe are not material. We make forward-looking statements
based on currently available information, and we assume no obligation
to, and expressly disclaim any obligation to, update or revise publicly
any forward-looking statements made in this release, whether as a result
of new information, future events or otherwise, except as required by
law.
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