April 19, 2007
Contact: Randy Heuscher
BLM Leases Spring Creek Mine Coal Tract
Spring Creek Coal Company won the lease rights for the Spring Creek Mine Expansion coal tract offered at the Bureau of Land Management coal lease sale held April 17, 2007. The company submitted a bid of $0.183 per recoverable ton of coal for a total of $19,902,200.00 or $17,806.39 per acre. The state of Montana will receive half of the bonus bid monies.
The Spring Creek Mine Expansion tract contains 1,117.70 acres and an estimated 108.6 million tons of recoverable coal. The tract is located adjacent to the Spring Creek Mine in Big Horn County, Mont. The lease sale was held as a result of a coal lease by application (LBA) that Spring Creek Coal Company filed. The coal will be recovered through strip mining methods.
Coal produced from the lease will generate royalties, severance taxes, gross proceeds taxes, and property taxes. The state of Montana receives half of the federal royalties and distributes them to agencies, public schools, and local communities according to federal and state law. Severance taxes are deposited in the Coal Trust Fund, the state's general fund, and others. The gross proceeds and property taxes fund local communities and public schools.