Sponsors (4)
The bill standardizes deferred coal lease bonus payments into a predictable 10‑year schedule with an upfront installment—giving governments some immediate revenue and greater administrative clarity while helping bidders plan financially—but it raises near‑term bidder cash needs, delays full bonus receipts, and removes flexibility to tailor payment terms.
Federal and state governments and taxpayers receive an immediate partial payment because the first installment of deferred coal lease bonuses must accompany bids, and the standardized 10-year schedule reduces administrative uncertainty for the Interior Department and budget offices.
Energy companies and utilities gain clearer, predictable payment timing because deferred bonus payments are split into 10 equal annual installments, improving financial planning.
Federal and state programs that rely on full bonus receipts face delayed full funding because spreading bonuses over 10 years postpones receipt of the total bonus amount.
Some bidders (energy companies/utilities) will face higher short‑term cash requirements because they must pay the first installment with their bid, which could reduce competition for leases.
The fixed 10‑year installment rule reduces the government's flexibility to tailor payment schedules to changing market conditions or fiscal needs, potentially limiting better-structured arrangements for specific leases.
Based on analysis of 1 section of legislative text.
Requires deferred coal lease bonus payments to be made in 10 equal annual installments with the first installment submitted with the lease bid.
Official title: Amend the Mineral Leasing Act to provide for the payment of bonus payments of certain coal leases issued under that Act.
Introduced April 28, 2026 by John A. Barrasso · Last progress April 28, 2026
Requires that bonus payments for coal leases offered under a deferred payment system be paid in 10 equal annual installments, with the first installment submitted when the lease bid is made. The change amends the Mineral Leasing Act to prescribe the timing and equal installment structure for deferred bonus payments on coal leases. The provision affects how coal lease bonus revenue is collected and scheduled but does not itself change royalty rates, lease terms beyond payment timing, or broader leasing authority.