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January 20, 2009

   Roger Alexander

Federal Coal Lease Sale Set for Jan. 29, 2009

The Bureau of Land Management (BLM) will hold a competitive coal lease sale by sealed bid at 10 a.m. on Thursday, Jan. 29, 2009. The sale will be held in the first floor conference room (Room 107) at the BLM Wyoming State Office, 5353 Yellowstone Road, Cheyenne, Wyo.

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, which is a minimum of $100 per acre. The North Maysdorf Coal Tract was originally offered for sale in October 2007 and then again in March 2008, but the minimum bid received at each of those two sales was not met and the bids were 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 BLM Wyoming State Director Don Simpson. "The demand for coal is rising as a power source in the United States, 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, with 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.

Sealed bids should be sent by certified mail, return receipt requested, or have them hand delivered to the Cashier, BLM Wyoming State Office, 5353 Yellowstone Road, P.O. Box 1828, Cheyenne, WY 82003. Bids must be received no later than 4 p.m. on Wednesday, Jan. 28, 2009.

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.

The BLM manages more land - 258 million acres - than any other Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western States, including Alaska. The Bureau, with a budget of about $1 billion, also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM’s multiple-use mission is to sustain the health and productivity of the public lands for the use and enjoyment of present and future generations. The Bureau accomplishes this by managing such activities as outdoor recreation, livestock grazing, mineral development, and energy production, and by conserving natural, historical, cultural, and other resources on public lands.

- BLM -