Incoming Senate Energy and Natural Resources Chairman Ron Wyden (D-Ore.) and the committee's top Republican, Lisa Murkowski (Alaska), are questioning whether the Interior Department is doing enough to collect royalties from companies that mine public coal.

Their letter to Interior Secretary Ken Salazar yesterday follows reports that taxpayers could be losing millions of dollars every year from outdated regulatory systems.

"As companies seek to ship more coal overseas," the senators wrote, "taxpayers must be confident that the Bureau of Land Management and the Office of Natural Resources Revenue have stringent royalty collection and auditing controls in place as coal markets become increasingly oriented toward international buyers."

Last year, environmental groups touted a report by the Institute for Energy Economics and Financial Analysis that found the Bureau of Land Management had missed out on $28.9 billion in revenue over the previous three decades (Greenwire, Aug. 30, 2012).

The Reuters news service followed up with an investigation of its own, which found companies may be using affiliates to take advantage of low royalties and sell the coal at higher overseas prices.

"The Reuters story alleges that coal producers are using this arrangement to report a lower sales price that does not reflect the actual value of coal that is ultimately exported to overseas buyers and sold at a premium," the lawmakers wrote.

"If any violations of the law have occurred, companies should be required to cure any gap in royalty payments and, if misconduct has occurred, civil penalties should be levied," they added, and asked Interior for information on past violations and whether current standards are enough.

Montana Gov. Brian Schweitzer (D) and Wyoming Gov. Matt Mead (R) also have questioned royalty systems, which funnel a percentage to the states.

Massachusetts Rep. Ed Markey, the top Democrat on the House Natural Resources Committee, asked the Government Accountability Office to review the federal coal leasing program. The Interior Department's inspector general is also conducting its own probe.

A news release by the senators noted that coal royalties to the federal government and Native American tribes have more than doubled to $898 million between 2001 and 2011. They say coal royalties account for 21 percent of federal onshore revenues and 13 percent of tribal royalty revenues.

Mining companies defend royalty and other payments to the government and say increased coal exports will promote economic recovery. But skeptics have been pushing back, worried about a host of environmental and health concerns.

"My plan is to work with Sen. Murkowski and all the senators on the issue that has enormous implications, because it seems that overnight we've gone from importing energy to exporting energy," Wyden said in an interview, indicating that hearings on the issue are possible.

"There are a whole host of issues related to our manufacturing capability, relating to prices, relating to environment, relating to national security, and we need to think those through," he said.

Click here to read the Wyden-Murkowski letter.