BLM Logo
U.S. DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT NEWS RELEASE
Wyoming State Office
 
Release Date: 06/28/12
Contacts: Beverly Gorny    
  307-775-6158    

North Porcupine Coal Lease Sale Winning Bid Over $793 Million


The Bureau of Land Management (BLM) Wyoming State Office announced today that BTU Western Resources, Inc., a subsidiary of Peabody, submitted a successful bid of $793,270,310.80 ($1.10 per mineable ton) for the North Porcupine Coal Tract.

The successful bid met or exceeded BLM's estimate of the fair market value of the tract and was accepted.

The 6,364.28-acre North Porcupine Coal Tract contains an estimated 721.15 million tons of mineable coal. The coal resource to be offered consists of all reserves recoverable by surface mining methods.

The lease by application (LBA) tract is adjacent to the North Antelope Rochelle Mine, and the School Creek Mine, both of which are affiliated with Peabody Energy Corp. The tract is also adjacent to additional unleased federal coal. The tract was offered for sale in response to an LBA filed by BTU Western Resources, Inc., Gillette, Wyo. They submitted the lone sealed bid.

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 surface mining methods.



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.
--BLM--

Wyoming State Office   5353 Yellowstone Road      Cheyenne, Wyoming 82009  

Last updated: 06-28-2012