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Wyoming State Office
Release Date: 10/18/11
Contacts: Beverly Gorny,    

Federal Coal Lease Sale Set for December 14

The Bureau of Land Management (BLM) will hold a competitive coal lease sale by sealed bid at 10 a.m. on Wednesday, Dec. 14. 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 South Hilight Field Coal Tract, a 1,976.69 acre area containing an estimated 222.7 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 South Hilight Field Coal Tract is being offered for sale in response to a lease by application (LBA) filed by Ark Land Company, St. Louis, Mo. The coal resource to be offered consists of all reserves recoverable by surface mining methods.

The tract is located approximately two to five miles south of State Highway 450 and east of the Burlington Northern/Union Pacific main line railroad. The tract is adjacent to the southern and western lease boundary of the Black Thunder Mine. The tract is adjacent to federal leases to the east and north as well as an adjacent State of Wyoming lease, all controlled by the Black Thunder Mine. It is adjacent to un-leased federal coal to the west and south. Some 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.

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 contributed nearly 400 million tons of coal to the nation’s domestic energy supply in 2010," said BLM Wyoming State Director Don Simpson. "Wyoming is the number one coal producer from public lands. Wyoming coal is used to generate 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, Dec. 13.

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: 10-18-2011