November 29, 2007
BLM Holds Coal Sale
The Bureau of Land Management Wyoming State Office held a coal sale today for the South Maysdorf Tract. The bid received did not meet fair market value and will be rejected.
Cordero Mining Company, a subsidiary of Rio Tinto Energy America, submitted a bid, for $121,987,050.00.
Alan Rabinoff, Deputy State Director, Minerals and Lands said, "BLM received only one bid for the tract. After reviewing this submitted bid, we could not accept it because it did not meet fair market value."
The South Maysdorf Coal Tract , a 2900-acre area contains an estimated 288.1 million tons of mineable coal. It's located about 15 miles south of Gillette, Wyo. To qualify, the high bid must meet or exceed BLM’s estimate of the fair market value of the tract.
More than half of the electricity consumed annually in the United States is produced from the 1.1 billion tons of coal used domestically each year, 32 percent coming from Wyoming public lands. Last fiscal year, coal royalties of $398 million were collected and shared equally with the State of Wyoming.