BLM Logo
Wyoming State Office
Release Date: 06/17/11
Contacts: Beverly Gorny,    

Federal Coal Lease Sale Set for August 17

The Bureau of Land Management (BLM) will hold a competitive coal lease sale by sealed bid at 10 a.m. on Wednesday, Aug. 17. 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 Caballo West Coal Tract, a 1,023.99 acre area containing an estimated 130.196 million tons of mineable coal, will be 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. The minimum bid for this tract is $100 per acre, or fraction thereof. The minimum bid is not intended to represent fair market value.

The Caballo West Coal Tract is being offered for sale in response to a lease by application (LBA) filed by BTU Western Resources, Inc. (successor to Caballo Coal Company), Gillette, Wyo. 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.

“Nearly 400 million tons of low sulfur Wyoming coal was used to generate electricity in 35 states in 2010,” said BLM Wyoming State Director Don Simpson. “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.” Last fiscal year, coal royalties of $598 million were collected and shared nearly 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 Tuesday, Aug. 16.

For more information, or to obtain further bidding instructions, please contact Mavis Love, (307) 775-6258, or Kathy Muller Ogle, (307) 775-6206, at the BLM Wyoming State Office.

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: 06-17-2011