March 17, 2008
Federal Coal Lease Sale Set for Mar. 19, 2008
The Bureau of Land Management (BLM) will hold a competitive coal lease sale by sealed bid at 10 a.m. on Wednesday, Mar. 19, 2008, in the first floor conference room, Rm. 107, of the Wyoming State Office.
The North Maysdorf Coal Tract, a 446-acre area containing an estimated 54.7 million tons of mineable coal, will be re-offered for lease to the qualified high bidder of the highest cash amount. The high bid must meet or exceed BLM’s estimate of the fair market value of the tract, a minimum $100 per acre. The North Maysdorf Coal Tract was originally offered for lease in October, 2007, but the minimum bid was not met and the bid was rejected.
Once a lease is issued, an annual rental payment of $3 per acre is required, along with a royalty payment of 12.5 percent of the value of coal produced by strip or auger mining methods and eight percent of the value of the coal produced by underground mining methods.
"Wyoming is the number one coal producer from public lands, contributing 367 million tons of coal to the nation’s domestic energy supply in fiscal year 2007," said Bob Bennett, BLM Wyoming State Director. "The demand for coal is rising as a power source in the U.S., particularly to generate electricity."
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, 33 percent coming from Wyoming public lands. Last fiscal year, coal royalties of $442 million were collected and shared equally with the State of Wyoming.
Please send sealed bids by certified mail, return receipt requested, or have them hand delivered to the Cashier, Wyoming State Office, 5353 Yellowstone Rd., P.O. Box 1828, Cheyenne, Wyo. 82003. Bids must be received no later than 4 p.m. on Tuesday, Mar. 18, 2008.
For more information, or to obtain further bidding instructions, please contact Mavis Love, (307) 775-6258, or Robert Janssen, (307) 775-6206, at the BLM Wyoming State Office.
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