[Eric in the Ozarks]

I never did understand the deal was with Utah's coal. I thought we had 500 years of low sulfur, 8300 BTU coal from the Powder River Basin around Gillette. I understand that Utah's coal is 10500-11000 BTUs/pound, but its still in a remote location--probably $35/ton train ride to the NE.

[MosesKnows]

I never did understand the deal was with Utah's coal

I may have responded to the wrong person.

The main point was to take it off the market. It would not be available to the market by the time the price may have been practical due to diminishing supplies of the cleaner burning coal.

Anytime a portion of a non-renewable resource is made unavailable it increases the value of what remains. That is why there is a "oil depletion allowance" to deduct the increasing cost of retrieving an energy source. In the existing tax code, certain oil, gas, coal and uranium producers receive a huge subsidy through the percentage depletion allowance.