Sponsors (4)
The bill standardizes deferred coal lease payments into a 10-year schedule and collects an initial installment at bid to provide predictable payments and some upfront revenue, at the cost of higher short‑term cash demands on bidders, delayed full receipt of bonus revenue, and reduced flexibility to tailor payment terms.
Taxpayers: Requiring the first installment to accompany lease bids provides earlier cash flow to the Treasury and public budgets, reducing immediate revenue shortfalls.
Utilities and energy companies: Splitting deferred coal lease bonuses into 10 equal annual installments gives bidders a predictable, standardized payment schedule that reduces financial planning uncertainty.
State governments / Interior Department: A uniform 10-year installment schedule reduces administrative uncertainty and simplifies scheduling and tracking of bonus receipts.
Utilities and energy companies: Requiring the first installment with the bid raises short-term cash requirements for bidders, which could reduce competition for leases and lead to less favorable auction outcomes.
Taxpayers and state/local programs: Spreading bonus payments over 10 years delays full receipt of revenue, potentially lowering near-term funds available for federal and local programs financed by those receipts.
Taxpayers and bidders: Imposing a fixed 10-year installment rule reduces flexibility to structure payment terms to changing market conditions or fiscal needs, which could hamper tailored financing or revenue-management options.
Based on analysis of 1 section of legislative text.
Sets deferred coal lease bonus payments to 10 equal annual installments with the first installment due at bid time.
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 bonus payments for coal leases using a deferred-bonus system to be split into 10 equal annual payments, with the first payment submitted when a lease bid is placed. The change amends the Mineral Leasing Act to standardize the schedule for deferred bonus payments on coal leases issued under that authority.