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Wyoming State Office
Release Date: 08/17/11
Contacts: Beverly Gorny    

BLM Caballo West Coal Lease Sale Winning Bid over $143 Million

The Bureau of Land Management Wyoming State Office announced today that Alpha Wyoming Land Co., LLC, submitted the successful high bid of $143,417,403.80 ($1.1016 per mineable ton) for the Caballo West Coal Tract. The tract was offered for sale in response to a lease by application (LBA) filed by BTU Western Resources, Inc. (successor to Caballo Coal Company), Gillette, Wyo. who submitted a bid of $127,592,080, or 98 cents per mineable ton.

The winning bid must meet or exceed BLM's estimate of the fair market value of the tract. The successful high bid met the fair market value and was accepted.

The 1,023.99 acre Caballo West Coal Tract contains an estimated 130.196 million tons of mineable coal. The coal resource to be offered consists of all reserves recoverable by surface mining methods. The tract is located approximately eight miles south-southeast of Gillette and east of State Highway 59.

The LBA tract is adjacent to federal, private, and State of Wyoming leases along the western lease boundary of the Caballo mine and to the Belle Ayr North LBA along the south. It is adjacent to additional unleased Federal coal to the west. The tract is crossed by Bishop Road along its southern boundary.

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 35 percent of the nation’s 1.1 billion tons of coal used domestically each year,” said BLM Wyoming State Director Don Simpson. “Nearly 400 million tons of low sulfur Wyoming coal was used to generate electricity in 35 states in last year.” Last fiscal year, coal royalties of $598 million were collected and shared nearly equally with the State of Wyoming.

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.

Wyoming State Office   5353 Yellowstone Road      Cheyenne, Wyoming 82009  

Last updated: 08-17-2011