Two groups representing oil and mining operators say President Barack Obama's decision to temporarily halt coal leasing on federal lands "denies reality."

The Obama administration announced Friday it would halt new coal mining leases on federal land while the government conducts a three-year review to bring the program in line with current climate change policy. The moratorium does not apply to existing mining leases.

American Petroleum Institute CEO Jack Gerard sharply criticized the administration in a statement, saying it is possible to both grow the energy economy and protect the environment.

"Pausing the public lands leasing program for coal, which supplies nearly 40 percent of U.S. electricity, denies reality," he said. "We need more supplies of all types of energy if we are to sustain our economy and provide affordable energy to U.S. businesses and consumers."

National Mining Association CEO Hal Quinn accused Obama of following the "directives of their political benefactors who, to borrow a phrase from the president, are peddling fiction."

"The idea that future coal leasing requires a pause to evaluate environmental impacts defies credulity," he said. "Every federal coal lease sale and subsequent mining project must pass multiple levels and sequences of both federal and state evaluation."

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