[Federal Register Volume 61, Number 250 (Friday, December 27, 1996)]
[Notices]
[Pages 68287-68289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32745]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR
[NM-932-1320-7; OKNM 91571, et al.]


Notice of Coal Lease Offering; Oklahoma

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of competitive coal lease sale by sealed bid.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that certain coal resources in the 
tracts described below in Le Flore County, Oklahoma, will be offered 
for competitive lease by sealed bid in accordance with the provisions 
of the Mineral Leasing Act of 1920, as amended, (30 U.S.C. 181 et 
seq.), and the Surface Mining and Reclamation Act of 1977.

DATES: The lease sale will be held at 10:00 a.m., January 31, 1997. 
Sealed bids must be submitted on or before 10:00 a.m., January 31, 
1997. Each bid should be clearly identified by tract and/or serial 
number on the outside of the envelope containing the bid(s).

ADDRESSES: The lease sale will be held in the Bureau of Land Management 
Conference Room, Tulsa District Office, 7906 E. 33rd Street, Suite 121, 
Tulsa, Oklahoma 74145. Sealed bids must be submitted to the Cashier, 
Tulsa District Office, Attention: Laura Stich, 7906 E. 33rd Street, 
Suite 121, Tulsa, Oklahoma 74145.

FOR FURTHER INFORMATION CONTACT:
Gary Stuckey, BLM, Tulsa District Office, (918) 621-4115.

SUPPLEMENTARY INFORMATION: The tracts will be leased to the qualified 
bidder(s) submitting the highest cash offer provided that the high bid 
meets the fair market value determination of the coal resource. The 
minimum bid for these tracts is $100.00 per acre or fraction thereof. 
No bid that is less than $100.00 per acre or fraction thereof, will be 
considered. This $100.00 per acre is a regulatory minimum, and is not 
intended to reflect fair market value of the tracts. Bids should be 
sent by certified mail, return receipt, or be hand-delivered. The 
cashier will issue a receipt for each hand-delivered bid. Bids received 
after the time specified above will not be considered. The fair market 
value of each tract will be

[[Page 68288]]

determined by the authorized officer after the sale.
    If identical high sealed bids are received, the tying high bidders 
will be requested to submit follow-up sealed bids until a high bid is 
received. All tie-breaking sealed bids must be submitted within 15 
minutes following the Sale Official's announcement at the sale that 
identical high bids have been received.
    All the tracts in this lease offering contain split estate lands. 
Except where specified, the proposed mining method is surface mining 
techniques. The regulations at 43 CFR 3427 set out the protection that 
shall be afforded qualified surface owners of split estate lands (as 
defined at 43 CFR 3400.0-5(gg)).

Tract No. 1--Rock Island Tract--OKNM 91571

    Coal Offered: The coal resource to be offered in Tract No. 1 (OKNM 
91571), will be mined by both surface and underground mining methods in 
the following described lands located in Le Flore County, Oklahoma:

Indian Meridian

T. 8 N., R. 25 E., Le Flore Co., OK
    sec. 23, S\1/2\;
T. 8 N., R. 26 E., Le Flore Co., OK
    sec. 12, S\1/2\S\1/2\;
    sec. 13, N\1/2\;
    sec. 14, NE\1/4\, S\1/2\NW\1/4\, and N\1/2\SW\1/4\;
    sec. 15, N\1/2\SE\1/4\ and SW\1/4\SE\1/4\;
    sec. 21, N\1/2\NE\1/4\;
    sec. 22, NW\1/4\NW\1/4\;
T. 8 N., R. 27 E.,
    sec. 7, S\1/2\NE\1/4\SW\1/4\, S\1/2\SW\1/4\, S\1/2\SE\1/4\, S\1/
2\N\1/2\SE\1/4\, and N\1/2\NE\1/4\SE\1/4\;
    sec. 8, SW\1/4\, and N\1/2\N\1/2\SE\1/4\;
    sec. 9, S\1/2\N\1/2\ and N\1/2\N\1/2\S\1/2\;
    sec. 10, SW\1/4\NW\1/4\ and NW\1/4\SW\1/4\.

    Containing 2,120.00 acres, more or less.

The lands described below may only be mined by underground mining 
techniques. No surface mining is allowed

T. 8 N., R. 25 E., Le Flore Co., OK
    sec. 23, S\1/2\SW\1/4\, S\1/2\NW\1/4\SW\1/4\, S\1/2\N\1/2\NW\1/
4\SW\1/4\, S\1/2\S\1/2\NE\1/4\SW\1/4\, and W\1/2\SE\1/4\;
T. 8 N., R. 26 E., Le Flore Co., OK
    sec. 12, S\1/2\S\1/2\;
    sec. 13, NW\1/4\NE\1/4\NW\1/4\;
    sec. 14, N\1/2\NE\1/4\;
    sec. 22, NW\1/4\NW\1/4\;
T. 8 N., R. 27, E.,
    sec 7, E\1/2\SE\1/4\NW\1/4\SE\1/4\SW\1/4\, SW\1/4\NE\1/4\SE\1/
4\SW\1/4\, W\1/2\SE\1/4\NE\1/4\SE\1/4\SW\1/4\, SE\1/4\SW\1/4\SW\1/
4\SE\1/4\SW\1/4\, E\1/2\SW\1/4\SE\1/4\SW\1/4\, and SW\1/4\SE\1/
4\SE\1/4\SW\1/4\;
    sec. 9, S\1/2\S\1/2\NW\1/4\, and N\1/2\SE\1/4\NE\1/4\;
    sec. 10, N\1/2\SW\1/4\NW\1/4\.

    The lease tract consists of three non-contiguous parcels. The 
largest occurs on the Hackett and Spiro quadrangles and extends from 
section 10, T. 8 N., R. 27 E. to Section 15, T. 8 N., R. 26 E. The 
small central parcel lies in sections 21 and 22, T. 8 N., R. 26 E. The 
western parcel lies in section 23, T. 8 N., R. 25 E. While this last 
parcel is some 4 miles from the other parcels, the intervening lands 
are non-Federal. The Federal lands adjoining it on the west are 
encumbered by the Poteau River and consequently cannot be leased nor 
developed. The parcel therefore does not fit with any larger tract and 
is most logically mined in conjunction with the fee coal to the east. 
After consultation with the applicant, it was decided to include these 
lands with Rock Island tract rather than set offer it as a separate 
lease which would be costlier and less efficient for both the 
government and any potential lessee.
    Coal resources on the tract occur in two beds: the Upper and Lower 
Hartshorne. These beds are separated by about 80 feet of interburden in 
the eastern and central parcels but only about 50 feet in the western 
parcel. The beds dip south, away from the Backbone anticline, at about 
2 deg. in the western parcel and at about 5 deg. in the eastern 
parcels. There is a small graben in the Hackett quadrangle which has 
dropped the coals 40 to 60 feet and which may reduce recovery in the 
immediate area. Other local faulting will most likely be encountered.
    The Upper Hartshorne on the eastern and central parcels is thin, 
split by partings of bone and rock. It is not considered recoverable.
    The Lower Hartshorne on the eastern parcel has a rock parting that 
ranges up to 3 feet thick. Coal above the parting has been designated 
the Upper Split and that below, the Lower Split. The Upper Split ranges 
from 0.9 to 4.9 feet thick, averaging 2.7 feet. Where it thins, the 
Lower Split appears to thicken. The Lower Split ranges from 0.7 to 3.25 
feet thick averaging 2.4 feet.
    In the western parcel, both the Upper and Lower Hartshorne are 
considered minable. The Upper bed averages 3.8 feet thick and the Lower 
4.4 feet. The two beds are separated by about 50 feet of interburden. 
Recoverable coal resources are estimated to be 4.3 million tons. 
Reserve estimates were made to a depth of 150 feet, intercepting the 
Lower Hartshorne coal bed.
    According to the projected monthly production of 25,000 tons stated 
in the original lease application, coal reserves in this lease will be 
depleted within 14 years.
    The critical quality parameters are: Upper Hartshorne: Ash 6.9%, 
BTU/lb 14,125; Sulfur 0.8%. Lower Hartshorne: Ash 5.2%; BTU/lb 14,310; 
Sulfur 1.0% (Table 1, OFR 79-495).

Tract No. 2--OKNM 94663

Indian Meridian

T. 9 N., R. 24 E.,
    sec. 3, NE\1/4\SW\1/4\, N\1/2\SW\1/4\SW\1/4\, SW\1/4\SW\1/
4\SW\1/4\, SE\1/4\SW\1/4\SW\1/4\, and NW\1/4\SE\1/4\SW\1/4\.
    Containing 90.00 acres, more or less.

The lands described below may only be mined by underground mining 
techniques. No surface mining is allowed

Indian Meridian

T. 9 N., R. 24 E., LeFlore Co., OK
    Sec. 3, S\1/2\SE\1/4\SW\1/4\SW\1/4\.

    Geological information for this application indicates the surface 
minable coal is the Stigler coal bed with estimated average thickness 
of 1.3 feet. The coal is considered to be a good quality, medium 
volatile bituminous rank coal which could be used as a blend in the 
production of coke. The area applied-for contains an estimated 138,000 
tons of recoverable Federal coal. Reserve estimates are made to a depth 
of 70 feet.
    Projected production would be 24,000 to 30,000 tons per year 
depending upon market conditions. The coal would be mined in 5 or 6 
years at the projected rate of production.
    The Stigler coal averages 2 percent moisture, 25 percent volatile 
matter, 4 to 10 percent ash, and 66 to 72 percent fixed carbon content 
in the general area of the application. The heating value of the coal 
is approximately 13,000 British thermal units (Btu) per pound.

Surface Owner Information

    There are currently 13 qualified surface owner consents on file for 
application to lease OKNM 91571. For application to lease OKNM 94663, 
it has been determined that there is one qualified surface owner. These 
consents are posted and are available for viewing at either the Tulsa 
District Office or the New Mexico State Office at the addresses shown 
above. They are also available for inspection at the BLM office located 
at 221 N. Service Rd., Moore, OK 73160-4946.

Rental and Royalty

    The leases issued as a result of this lease offering will require 
payment of an annual rental of $3.00 per acre, or fraction, thereof, 
and a royalty payable to the United States of 12\1/2\ percent of the 
value of the coal removed from a surface mine and 8 percent of the 
value of the coal removed from an underground mine. The value of the

[[Page 68289]]

coal will be determined in accordance with 30 CFR Sec. 206.250.

Notice of Availability

    Bidding instructions for the offered tracts are included in the 
Detailed Statement of Coal Lease Sale. Copies of the proposed coal 
lease sale and detailed statement are available upon request in person 
or by mail from the New Mexico State Office, P.O. Box 27115, 1474 Rodeo 
Road, Santa Fe, NM 87502-0115, or the Tulsa District Office at the 
address shown above. The case files are available for inspection during 
normal business hours only at the Santa Fe BLM Office at the address 
indicated.

    Dated: December 18, 1996.
Richard A. Whitley,
Acting State Director.
[FR Doc. 96-32745 Filed 12-26-96; 8:45 am]
BILLING CODE 4310-01-M