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Wyoming State Office
Release Date: 12/15/11
Contacts: Beverly Gorny    

South Hilight Coal Lease Sale Winning Bid Over $300 Million

The Bureau of Land Management (BLM) Wyoming State Office announced today that Ark Land Company submitted a successful bid of $300,001,011.66 ($1.35 per mineable ton) for the South Hilight Field Coal Tract.

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

The 1,976.69 acre South Hilight Field Coal Tract contains an estimated 222.7 million tons of mineable coal. The coal resource to be offered consists of all reserves recoverable by surface mining methods. The tract is located two to five miles south of State Highway 450 and east of the Burlington Northern/Union Pacific main line railroad.

The lease-by application (LBA) tract is adjacent to the southern and western lease boundary of the Black Thunder Mine, as well as federal and State of Wyoming leases to the east and north, all controlled by Ark Land Company. It is adjacent to un-leased federal coal to the west and south. A portion of the surface estate of the tract is owned by Thunder Basin Coal Co., but most of the surface is part of the Thunder Basin National Grassland managed by the U.S. Forest Service.

The tract was offered for sale in response to a LBA filed by Ark Land Company, St. Louis, Mo.

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.

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: 12-15-2011