June 5, 2007
Contact: Anthony Sara
Black Butte Coal Company Submits
Successful Bid at Coal Lease Sale
The Bureau of Land Management (BLM) announced Tuesday that it received $2,426,620 from the Black Butte Coal Company, who won the competitive coal lease sale for the Pit 14 Coal Tract. Black Butte was the successful bidder for the lease tract based on its high bid of $0.2163 per mineable ton. The minimum bid for the Pit 14 tract was $100 per acre.
Pit 14 is located in Sweetwater County, 28 miles southeast of Rock Springs and approximately 14 miles south of I-80.
Phillip Perlewitz, acting BLM Deputy State Director of Minerals and Lands, said Black Butte Coal Company was the only bid the agency received and that it met the fair market value.
“BLM received only one bid for the Pit 14 coal lease tract. The bid was from Black Butte Coal Company, the applicant for the tract, and the bid that was submitted met or exceeded BLM’s estimate of fair market value.”
The tract contains an estimated 11,218,740 tons of mineable coal in the four seams that could be recovered by surface mining methods. This mineable reserve is based on a minimum 20 foot overburden thickness to avoid any coal oxidation areas, a minimum coal thickness of 2 feet and a maximum stripping ratio of 14.6 bank cubic yards per one ton of coal.
The next Coal Lease sale is tentatively scheduled for October in Cheyenne. For more information regarding the lease, contact Phillip Perlewitz at (307) 775-6144.