BILLINGS, Mont. (NEWSnet/AP) — A U.S. appeals court on Wednesday rejected a moratorium on coal-leasing from federal land.

The ruling from a three-judge panel of 9th U.S. Circuit Court of Appeals is a setback for environmentalists and some lawmakers who worked for years to curtail the program.

More than 260 million tons of coal, or about half of the nation’s total, was mined by private companies from leases on federal land in 2022, according to the most recent figures available. That compares to more than 400 million tons of coal mined from federal lands in 2014.

Most of the mining occurs in Western states including Colorado, Montana and Wyoming.

The leasing moratorium, enacted in 2016 under President Barack Obama, did not halt mining. It prohibited federal lease sales that often are crucial for companies seeking to expand operations.

The moratorium was rescinded under the administration of President Donald Trump, then revived by a federal district judge in Montana. In 2022, the judge ordered government officials to conduct an environmental review before they could hold coal sales on federal lands.

That came in a lawsuit filed by environmental groups and Northern Cheyenne Tribe.

The current appeals court ruling said the matter was moot when the 2022 order was issued, because Department of Interior officials under President Joe Biden had revoked Trump's effort to end the moratorium. 

National Mining Association hailed Wednesday's ruling as “a victory for American-mined energy" that could allow stalled mining projects to advance. 

Earthjustice attorney Jenny Harbine called for the Biden administration to respond to the ruling with immediate steps to end new leasing, and to address coal's harm to climate and public health.

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