New settlement in Oakland will derail plan to export Utah coal through California

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New settlement in Oakland will derail plan to export Utah coal through California
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No coal will ever pass through the bulk terminal under development at a decommissioned Army base on the San Francisco Bay, according to a settlement framework announced Feb. 2 by Oakland City Attorney Barbara Parker.

, which had planned a state-of-the-art rail-to-ship loading facility capable of handling 10 million tons of coal a year at the city-owned site at the foot of the Bay Bridge. OBOT was secretly controlled by Utah’s largest coal producer Bowie Resource Partners, now known asWhen Oakland officials got wind of the port developer’s true intentions, they adopted ordinances banning the handling of coal and coke.

A federal court subsequently ruled that the city’s development agreement with Tagami barred it from applying the ordinance to the port project. But then the city revoked a 66-year lease with Tagami and his subtenants for failure to meet construction milestones. That action spurred a lawsuit and countersuit in state court that were to go to trial next month.

Utah coal has still been reaching Asia through California ports in Stockton, Richmond and Long Beach, but those pathways remain uncertain in the face ofto the handling of coal. In addition, climate activists have long sought to undermine exports of U.S. coal, the fossil fuel with the biggest emissions of greenhouse gases linked to global warming.

this resource, which fetches a higher price abroad than it does in the United States, where coal demand had steadily declined until last year.

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