[Federal Register: May 27, 2004 (Volume 69, Number 103)]
[Notices]
[Page 30329-30330]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27my04-93]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[WY-920-1320-EL, WYW154001]
Notice of Competitive Coal Lease Sale, Wyoming
AGENCY: Bureau of Land Management, Interior.
ACTION: Notice of competitive coal lease sale.
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SUMMARY: Notice is hereby given that certain coal resources in the NARO
South Tract described below in Campbell and Converse Counties, WY, will
be offered for competitive lease by sealed bid in accordance with the
provisions of the Mineral Leasing Act of 1920, as amended (30 U.S.C.
181 et seq.).
DATES: The lease sale will be held at 10 a.m., on Tuesday, June 29,
2004. Sealed bids must be submitted on or before 4 p.m., on Monday,
June 28, 2004.
ADDRESSES: The lease sale will be held in the First Floor Conference
Room (Room 107), of the BLM Wyoming State Office, 5353 Yellowstone
Road, P.O. Box 1828, Cheyenne, WY 82003. Sealed bids must be submitted
to the Cashier, BLM Wyoming State Office, at the address given above.
[[Page 30330]]
FOR FURTHER INFORMATION CONTACT: Mavis Love, Land Law Examiner, or
Robert Janssen, Coal Coordinator, at 307-775-6258, and 307-775-6206,
respectively.
SUPPLEMENTARY INFORMATION: This coal lease sale is being held in
response to a lease by application (LBA) filed by Powder River Coal
Company of Gillette, WY. The coal resources to be offered consist of
all reserves recoverable by surface mining methods in the following-
described lands located along the county line in southeastern Campbell
County and northeastern Converse County approximately five miles east
of State Highway 59, 14 miles south of State Highway 450, and adjacent
to the Burlington Northern Santa Fe/Union Pacific joint rail line:
T. 41 N., R. 70 W., 6th PM, Wyoming
Sec. 19: Lots 6-11, 12(S\1/2\), 13-20;
Sec. 20: Lots 5(S\1/2\), 6(S\1/2\), 7(S\1/2\), 8(S\1/2\), 9-16;
Sec. 21: Lots 5(S\1/2\), 12, 13;
Sec. 28: Lots 3-6, 11, NE\1/4\SW\1/4\;
Sec. 29: Lots 1-12;
Sec. 30: Lots 5-12;
T. 41 N., R. 71 W., 6th P.M, Wyoming
Sec. 23: Lots 8(S\1/2\), 9;
Sec. 24: Lots 1, 5(S\1/2\), 6(S\1/2\), 7(S\1/2\), 8-16;
Sec. 25: Lots 1-4, 9-10, 12(N\1/2\).
Containing 2,956.725 acres, more or less.
The tract is adjacent to Federal coal leases held by the North
Antelope Rochelle Mine to the northeast and by the Antelope Mine to the
south and west. It is also adjacent to additional unleased Federal coal
to the north.
All of the acreage offered has been determined to be suitable for
mining except lands within 100 feet of the joint rail line right-of-
way. Other features such as the county road, pipelines, and power lines
can be moved to permit coal recovery. Numerous oil and/or gas wells
have been drilled on the tract. The estimate of the bonus value of the
coal lease will include consideration of the future production from
these wells. An economic analysis of this future income stream will
determine whether a well is bought out and plugged prior to mining or
re-established after mining is completed. Small portions of the surface
estate of the tract are owned by the North Antelope Rochelle Mine and
the Antelope Mine, but most of the surface estate is owned by private
individuals.
The tract contains surface mineable coal reserves in the Wyodak
seam currently being recovered in the adjacent, existing mines. On the
tract, the Wyodak seam is generally split into the Anderson and Canyon
seams. The upper Anderson seam averages about 37 feet thick and the
lower Canyon seam averages about 34 feet thick on the LBA. Burn lines
near the southern and eastern boundaries of the LBA tract mark the
approximate limits of the coal seams. The overburden depths range from
about 95-260 feet thick on the LBA. The interburden between the
Anderson and Canyon seams ranges from 5-115 feet thick on the LBA.
The tract contains an estimated 297,469,000 tons of mineable coal.
This estimate of mineable reserves includes the Anderson and Canyon
seams mentioned above but does not include any tonnage from localized
seams or splits containing less than 5 feet of coal. The total mineable
stripping ratio (BCY/Ton) of the coal is about 2.8:1. Potential bidders
for the LBA should consider the recovery rate expected from thick seam,
multiple seam, and burn line mining. The NARO South LBA coal is ranked
as subbituminous C. The overall average quality on an as-received basis
is 8929 BTU/lb with about 0.2% sulfur and 2% sodium in the ash. These
quality averages place the coal reserves near the high end of the range
of coal quality currently being mined in the Wyoming portion of the
Powder River Basin.
The tract in this lease offering contains split estate lands. There
are qualified surface owners as defined in the regulations at 43 CFR
3400.0-5. Consent granted by the qualified surface owners has been
filed with and verified by the BLM. The lands included in the consent
are shown below:
T. 41 N., R. 70 W., 6th P.M., Wyoming
Sec. 19: Lots 6-11, 12(S\1/2\), 13, 14, 19, 20;
Sec. 30: Lots 5, 6;
T. 41 N., R. 71 W., 6th P.M., Wyoming
Sec. 24: Lots 5(S\1/2\), 6(S\1/2\), 7(S\1/2\), 8-11, 13-16.
The purchase price of the consent is $10.00 and an overriding
royalty of three percent (3%) of the gross realization of all coal
mined and sold from the subject property.
The tract will be leased to the qualified bidder of the highest
cash amount provided that the high bid equals the fair market value of
the tract. The minimum bid for the tract is $100 per acre or fraction
thereof. No bid that is less than $100 per acre, or fraction thereof,
will be considered. The bids should be sent by certified mail, return
receipt requested, or be hand delivered. The Cashier will issue a
receipt for each hand-delivered bid. Bids received after 4 p.m., on
Monday, June 28, 2004, will not be considered. The minimum bid is not
intended to represent fair market value. The fair market value of the
tract will be determined by the Authorized Officer after the sale. The
lease issued as a result of this offering will provide for payment of
an annual rental of $3.00 per acre, or fraction thereof, and of a
royalty payment to the United States of 12.5 percent of the value of
coal produced by strip or auger mining methods and 8 percent of the
value of the coal produced by underground mining methods. The value of
the coal will be determined in accordance with 30 CFR 206.250.
Bidding instructions for the tract offered and the terms and
conditions of the proposed coal lease are available from the BLM
Wyoming State Office at the addresses above. Case file documents,
WYW154001, are available for inspection at the BLM Wyoming State
Office.
Phillip C. Perlewitz,
Acting Deputy State Director, Minerals and Lands.
[FR Doc. 04-11572 Filed 5-26-04; 8:45 am]
BILLING CODE 4310-22-P