Reuters reports: The Obama administration is set to refund as much as $14 million in royalties to a coal company run by billionaire investor William Koch that says it is entitled to the money since the now-shut mine on federal land was costly to operate.

The Interior Department recommended the payout in a December letter to Colorado Governor John Hickenlooper, seen by Reuters, that gives the state executive a chance to object.

The subsidy, part of a decades-old program to promote coal production on public lands, is now under scrutiny since President Barack Obama has vowed to curb the nation’s reliance on fossil fuels, which contribute to global warming. [Continue reading…]