JACKSON -- The Obama administration has made overtures to stop Abandoned Mine Land fund payments to states, and Wyoming is gearing up to again make its case to keep its share of the money.

State officials are gathering evidence to argue that Wyoming is spending millions in AML funds on clean energy programs that are very much in line with the administration's own priorities.

"I think our AML funding is in serious jeopardy, and I don't think we're going to get it just by claiming we deserve it. We have to make a case for what we use that money for," said Sen. Grant Larson, R-Jackson, co-chairman of the Legislature's Joint Minerals, Business and Economic Development Committee.

The AML fund was created to restore abandoned mines. Much of the money comes from a 35 cents-per-ton tax on coal. Half of the money generated is supposed to go back to the state of origin. Wyoming's share is in excess of $500 million, and it's a pot of money that the federal government has coveted for years.

During a meeting of the minerals committee, lawmakers asked officials from several state agencies and the University of Wyoming to submit reports to them detailing the use of AML dollars, particularly in terms of clean energy. AML money has been key in funding the university's new School of Energy Resources and the university's work in pulling together a carbon sequestration demonstration project for commercial development.

The state has vigorously pursued technologies to reduce coal's carbon footprint because coal is a major contributor to the state's economy.

Under current climate change legislation, the coal industry has about 10 to 20 years to curb its carbon emissions or risk being cut out of the electrical utility market.

State lawmakers appropriated $8 million to UW for research in clean coal technologies. Faculty researchers, in turn, have leveraged that money to win nearly $2 million in matching federal grant money, and the university is on track to secure $10 million more, according to Carol Frost, executive vice president of research and economic development at the university.

"Your $8 million should be matched by $12 million from other sources," Frost told the committee members on Monday.

Several industry partners have chipped in, too, including Exxon Mobil, Baker Hughes, Peabody Energy and Arch Coal.

Frost said the university, along with the Wyoming State Geological Survey and industry partners, has already identified two premier geologic formations in southwest Wyoming for carbon sequestration.

Rob Hurless, telecommunications and energy adviser to Gov. Dave Freudenthal, said the governor and his staff have had several conversations with the federal Office of Management and Budget regarding Wyoming's AML funds, underscoring the benefits of continued payments to Wyoming from the fund.

"There was a notion that somehow Wyoming and some other states just came in the dead of night and robbed the treasury. I think they now have a good understanding of how AML came to be," Hurless said. "I think the issue is that as the administration goes forward and looks for money, that looks like a convenient place to pick some out."

Wyoming State Geologist Ron Surdam said he's confident U.S. Department of Energy officials who work closely with Wyoming on clean coal efforts would similarly support the continued flow of AML money to the state.

"The state has built an alliance with the University of Wyoming and National Laboratory at Los Alamos. We are now on the radar screen of (the Department of Energy), so I think they will support us in terms of this AML money," Surdam said.

Contact energy reporter Dustin Bleizeffer at 307-577-6069 or dustin.bleizeffer@trib.com. Read his energy blog at tribtown.trib.com/DustinBleizeffer/blog.