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Billings Field Office
Release Date: 10/15/09
Contacts: Phil Perlewitz 406-896-5159    

BNI Coal Ltd. Wins Lease Rights

BNI Coal Ltd. won the lease rights for the BNI coal tract offered at a Bureau of Land Management coal lease sale held October 15.  

The company submitted a bid of $0.0053 per recoverable ton of coal for a total of $16,000 or $100 per acre.  BLM has determined that the bid meets or exceeds fair market value. The state of North Dakota will receive half of the bonus bid monies.

The BNI coal tract contains 160 acres and an estimated 3 million tons of recoverable lignite coal.  The tract is located adjacent to the Center Mine in Oliver County, N.D. The lease sale was held as a result of a coal lease application filed by BNI Coal Ltd.  The coal will be recovered through strip mining methods.

Coal produced from the lease will also generate royalties and state severance taxes. The state of North Dakota receives half of the federal royalties and distributes them to agencies, public schools and local communities according to federal and state law. The state severance taxes are deposited in the Coal Development Fund which distributes 30 percent to a Land Board Trust Fund and 70 percent to the county where the coal was produced.

The BLM manages more than 245 million acres of public land, the most of any Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM's mission is to manage and conserve the public lands for the use and enjoyment of present and future generations under our mandate of multiple-use and sustained yield. In Fiscal Year 2013, the BLM generated $4.7 billion in receipts from public lands.

Billings Field Office   5001 Southgate Drive      Billings, MT 59101   

Last updated: 06-28-2012