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Release Date: 04/02/13
Contacts: Steven Hall 303-239-3672    
  Vanessa Delgado 303-239-3681    

BLM Offers Land in Rio Blanco, Moffat Counties for Competitive Coal Lease (04-02-13)

Lakewood, Colo.—  The Bureau of Land Management in Colorado will host a competitive coal lease sale at 10 a.m. on May 29, 2013, for a Lease By Application filed by Blue Mountain Energy Inc., for a 3,155-acre tract in Rio Blanco and Moffat counties.

The lease sale will take place at the BLM Colorado State Office, 2850 Youngfield St., 80215. The BLM’s open, competitive leasing process awards the lease to the highest bidder who successfully meets or exceeds the fair market value of the coal, which is determined by the BLM. The minimum bid for the tract is $100 per acre or fraction thereof. All leases are subject to an annual rental fee of $3 per acre in addition to an 8 percent royalty payment for developed coal.

Half of the money from the coal lease sale and any subsequent royalites go to the State of Colorado.

In 2011, Blue Mountain Energy submitted a Lease by Application for this parcel to expand its 7,000-acre Deserado mine, which is seven miles northeast of Rangely, Colo., and currently employs 164 people. The 3,155-acre tract holds roughly 21.3 million tons of coal.

Currently, there are nine producing coal mines (seven underground and two surface operations) encompassing 75,000-acres in the state.  In Fiscal Year 2012, coal energy production on BLM Colorado public lands directly contributed $918.1 million to the economy, generating $57.7 million in royalties and 5,719 jobs in Colorado.

For more information about participating in the competitive coal lease sale contact Kurt Barton, BLM Colorado Land Law Examiner, at 303-239-3714, or

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 sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations. In Fiscal Year 2015, the BLM generated $4.1 billion in receipts from activities occurring on public lands.

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Last updated: 04-02-2013