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Wyoming State Office
Release Date: 07/14/11
Contacts: Mary L. Wilson,    

BTU Western Resources Inc. Submits Successful Bid
at Coal Lease Sale

The Bureau of Land Management Wyoming State Office announced today that BTU Western Resources, Inc. (a subsidiary of Peabody Coal Energy Corporation) submitted the successful high bid of $210,648,060 (95 cents per mineable ton) for the Belle Ayr North Coal Tract. The tract was offered for sale in response to a lease by application (LBA) filed by Alpha Coal West (formerly RAG Coal West, Inc.) who submitted a bid of $173,396,613.60, or 78.2 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 1,671.03 acre Belle Ayr North Coal Tract contains an estimated 221.7 million tons of mineable coal. The coal resource consists of all reserves recoverable by surface mining methods. The tract is located approximately 10 miles south-southeast of Gillette, Wyo. and east of State Highway 59. The tract is adjacent to federal and private leases along the northern lease boundary of the Belle Ayr Mine, and to federal leases along the southwestern lease boundary of the Caballo Mine, and to the Caballo West LBA along the north.

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.

In 2010, nearly 400 million tons of coal was mined from BLM-administered public lands in Wyoming resulting in coal royalties of over $598 million. Royalty and bid income is shared nearly equally with the State of Wyoming. 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.

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      Cheyenne, WY 82009  

Last updated: 07-14-2011