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Wyoming State Office
Release Date: 05/13/11
Contacts: Beverly Gorny    

Federal Coal Lease Sale Set for July 13

The Bureau of Land Management (BLM) will hold a competitive coal lease sale by sealed bid at 10 a.m. on Wednesday, July 13. 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 Belle Ayr North Coal Tract, a 1,671.03 acre area containing an estimated 221.7 million tons of mineable coal, will be offered for lease to the qualified high bidder provided the high bid meets or exceeds 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 Belle Ayr North Coal Tract is being offered for sale in response to a lease by application (LBA) filed by Alpha Coal West, Inc. (formerly RAG Coal West, Inc.), Gillette, Wyo. The coal resource to be offered 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.

"Wyoming is the number one coal producer from public lands, contributing nearly 400 million tons of coal to the nation’s domestic energy supply in 2010," said BLM Wyoming State Director Don Simpson. "Wyoming coal generates electricity in 35 states.”

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 35 percent coming from Wyoming public lands. Last fiscal year, coal royalties of $598 million were collected and the State of Wyoming received 48 percent.

Sealed bids should be sent by certified mail, return receipt requested, or 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, July 12.

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 Road      Cheyenne, Wyoming 82009  

Last updated: 05-13-2011