BLM is responsible for coal leasing where the coal mineral estate* is owned by the federal government. The surface estate* of these lands could be controlled by BLM, the U. S. Forest Service, private land owners, or other Federal agencies. The Mineral Leasing Act of 1920, as amended, requires that all public lands available for coal leasing be offered competitively. Competitive leasing provides an opportunity for any interested party to competitively bid for a federal coal lease. BLM receives revenues on coal leasing through a bonus paid at the time BLM issues the lease, through annual rental payments of $3 per acre or fraction thereof, and by royalties paid on the value of the coal after it has been mined.

Not all public lands are available for coal exploration or leasing, however. There is a rigorous land use planning process through which all public lands are reviewed for potential coal leasing. Requirements for the land use plan* include multiple use, sustained yield,* protection of critical environmental areas,* application of specific unsuitability criteria,* and coordination with other government agencies. There are four land use screening steps unique to developing land use planning decisions for federal coal lands. These are:
· Identification of coal with potential for development
· Determination if the lands are unsuitable for coal development
· Consideration of multiple use conflicts
· Surface owner consultation

The purpose of the coal screening during the land use planning process (43 CFR 3420.1-4) is to identify those federal lands that are acceptable for further consideration for coal leasing and development. This screening process has not been conducted for the land use plans prepared by BLM-Alaska; therefore leasing is deferred. Interest in exploration or leasing of federal coal would be handled on a case-by-case basis. If an application for a coal lease should be received in the future, an appropriate land use and environmental analysis, including the coal screening process, would be conducted to determine whether or not the coal areas are acceptable for further consideration for leasing and development under 43 CFR* 3420.1-4. There are currently two federal coal leases in Alaska. Both are 10-year preferential right leases issued in 1999.

Unless specifically closed to coal exploration by the land use plan process, all unleased BLM-managed public lands within Alaska subject to leasing under 43 CFR 3400.2 are open for coal exploration through the issuance of an exploration license.

Definitions:

*mineral estate - minerals below the surface managed by the BLM
*surface estate - surface lands managed by the BLM
*land use plan - an offical document describing how the BLM plans to manage the land
*sustained yield - the determination of the ongoing supply of a natural resource
*critical environmental areas - sensitive environments such as endangered species habitats that require special management
*unsuitability criteria - a required screening process to determine the availibilty of leasing coal on BLM managed lands
*CFR - Code of Federal Regulations