Cloud Peak Energy Issues Statement on Programmatic Environmental Impact Study for Federal Coal Leasing Program

Cloud Peak Energy Inc.

, 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.