Phony Auctions Reward Peabody Energy

Peabody Energy Company paid their CEO $10,217,593 total compensation* in 2011. He was worth every penny and more. Gregory H. Boyce has positioned his St. Louis, Mo. company to be the sole bidder at a so-called auction to mine 721 million tons of coal on federal land in Wyoming according to  in The Washington Post.

Just last month Peabody won another “auction” they were the only bidder in. This enabled them to buy rights to 402 million tons of coal, also in the Powder River Basin in Wyoming. Eilperin reports estimates the practice of staging hollow auctions, where there is no chance a second company will bid on the mining rights, “may have cost taxpayers as much as $28.9 billion.”

“There’s a long history of under-market coal sales from the Powder River Basin,” Rep. Edward J. Markey (D-Mass.) told Eilperin in an interview. “We need to ensure that the taxpayers are not being shortchanged the way they were back in the 1980s.”

Original article > >

*Courtesy Executive Paywatch linked lower right.
Be Sociable, Share!

Leave a Reply

Your email address will not be published. Required fields are marked *

You can add images to your comment by clicking here.