U.S. DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT NEWS RELEASE
Billings Field Office
Billings Field Office
| 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 multiple-use mission is to sustain the health, diversity, and productivity of the public lands for the use and enjoyment of present and future generations. In Fiscal Year 2012, activities on public lands generated $4.6 billion in revenue, much of which was shared with the States where the activities occurred. In addition, public lands contributed more than $112 billion to the U.S. economy and helped support more than 500,000 jobs.
Billings Field Office 5001 Southgate Drive Billings, MT 59101