[Federal Register Volume 62, Number 44 (Thursday, March 6, 1997)]
[Notices]
[Pages 10289-10290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5528]


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DEPARTMENT OF THE INTERIOR
[MT-921-07-1320-01; NDM 85515]


Coal Lease Offering

AGENCY: Bureau of Land Management, Montana State Office, Interior.

ACTION: Notice of coal lease offering by sealed bid NDM 85515, NDM 
85517, NDM 85537 (Acq.)--The Coteau Properties Company, and NDM 85516--
The Falkirk Mining Company.

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SUMMARY: Notice is hereby given that the coal resources in the tracts 
described below in Mercer and McLean Counties, North Dakota, will be 
offered for competitive lease by sealed bid, in accordance with the 
provisions of the Mineral Leasing Act of February 25, 1920, as amended 
(41 Stat. 437; 30 U.S.C. 181 et seq.), and The Mineral Leasing Act for 
Acquired Lands of August 7, 1947, as amended (30 U.S.C. 351-359 et 
seq.). This offering is being made as a result of applications filed by 
The Coteau Properties Company and The Falkirk Mining Company.

SUPPLEMENTARY INFORMATION: Environmental Assessments of the proposed 
coal developments and related requirements for consultation, public 
involvement and hearings have been completed in accordance with 43 CFR 
3425. The results of these activities were a finding of no significant 
environmental impact.
    Each tract will be leased to the qualified bidder of the highest 
cash amount provided that the high bid meets the fair market value of 
the coal resource. The minimum bid for each tract is $100 per acre, or 
fraction thereof. No bid that is less than $100 per acre, or fraction 
thereof, will be considered. The minimum bid is not intended to 
represent fair market value. The fair market value will be determined 
by the authorized officer after the sale.
    All tracts in this lease offering contain split estate lands. 
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).

Coal Tracts Offered

    The recoverable coal reserves of the tracts NDM 85515, NDM 85517, 
and NDM 85537 (Acquired) are contained in the Beulah-Zap lignite seam 
of the Sentinel Butte Formation of the Fort Union Group. The 
recoverable coal reserve of NDM 85516 is contained in the Hagel lignite 
seam of the Sentinel Butte Formation of the Fort Union Group.

NDM 85515

    The coal resource to be offered consists of all recoverable 
reserves in the following-described lands located in Mercer County, 
North Dakota:

T. 145 N., R. 87 W., 5th P.M.
    Sec. 2: Lot 3, SE\1/4\NW\1/4\

    The 79.470-acre tract contains an estimated 2.00 million tons of 
recoverable coal reserves. For NDM 85515, the Beulah-Zap seam averages 
15.5 feet in thickness with an average overburden depth of 125 feet, 
6,690 BTU/lb. in heating value, and 1.43% sulphur content.

NDM 85516

    The coal resource to be offered consists of all recoverable 
reserves in the following-described lands located in McLean County, 
North Dakota:

T. 146 N., R. 81 W., 5th P.M.
    Sec. 30: Lot 4, SE\1/4\SW\1/4\, S\1/2\SE\1/4\

    The recoverable coal reserve in this 158.75-acre tract is contained 
in the Hagel lignite seam. The Hagel seam of the Sentinel Butte 
Formation of the Fort Union Group is split into two benches throughout 
the area. The upper bench, the Hagel A, ranges from 0 to 10.6 feet over 
the Falkirk Mine area and averages 8.6 feet in thickness, 6,082 BTU/lb. 
in heating value, and 0.55% sulphur content. Separating the upper and 
lower benches of the Hagel seam is an interburden layer ranging from 8 
to 32 feet in thickness and consisting of clays, silts, and 
carbonaceous matter. The lower bench, the Hagel B, ranges from 0 to 4.4 
feet over the mine area and averages 3.5 feet in thickness, 6,012 BTU/
lb. in heating value, and 0.62% sulphur content. An estimated 1.75 
million tons of recoverable lignite are present in the Hagel A and 
Hagel B coal seams.

NDM 85517

    The coal resource to be offered consists of all recoverable 
reserves in the following-described lands located in Mercer County, 
North Dakota:

T. 146 N., R. 87 W., 5th P.M.
    Sec. 30: Lot 2
T. 146 N., R. 88 W., 5th P.M.
    Sec. 26: SE\1/4\SE\1/4\
    Sec. 34: E\1/2\

    The 398.790-acre tract contains an estimated 5.61 million tons of 
recoverable coal reserves. For NDM

[[Page 10290]]

85517, the Beulah-Zap averages 17.0 feet in thickness with an average 
overburden depth of 57 feet, 6,766 BTU/lb. in heating value, and 0.46% 
sulphur content.

NDM 85537 (Acquired)

    The coal resource to be offered consists of all recoverable 
reserves in the following-described lands located in Mercer County, 
North Dakota. The United States owns 50 percent mineral interest in 
these lands.

T. 146 N., R. 87 W., 5th P.M.
    Sec. 31: NE\1/4\

    The Federal interest in the 160.00-acre tract contains an estimated 
0.51 million tons of recoverable coal reserves. For NDM 85537 
(Acquired), the Beulah-Zap seam averages 16.0 feet in thickness with an 
average overburden depth of 70 feet, 6,766 BTU/lb. in heating value, 
and 0.46% sulphur content.

Rental and Royalty

    Leases issued as a result of this offering will provide for payment 
of an annual rental of $3 per acre, or fraction thereof; and a royalty 
payable to the United States of 12.5 percent of the value of coal mined 
by surface methods and 8.0 percent of the value of coal mined by 
underground methods. The value of the coal shall be determined in 
accordance with 30 CFR 206.

Date

    The lease sale will be held at 11:00 a.m., Wednesday, March 26, 
1997, in the Conference Room on the Sixth Floor of the Granite Tower 
Building, Bureau of Land Management, 222 North 32nd Street, Billings, 
Montana 59101.

Bids

    Sealed bids must be submitted on or before 10:00 a.m., Wednesday, 
March 26, 1997, to the cashier, Bureau of Land Management, Montana 
State Office, Second Floor, Granite Tower Building, 222 North 32nd 
Street, Post Office Box 36800, Billings, Montana 59107-6800. The bids 
should be sent by certified mail, return receipt requested, or be hand-
delivered. The cashier will issue a receipt for each hand-delivered 
bid. Bids received after that time will not be considered.
    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.

Notice of Availability

    Bidding instructions for the offered tracts are included in the 
detailed statement of Lease Sale. Copies of the detailed statement and 
the proposed coal leases are available at the Montana State Office. 
Casefile documents are also available for public inspection at the 
Montana State Office.

    Dated: February 26, 1997.
Thomas P. Lonnie,
Deputy State Director, Division of Resources.
[FR Doc. 97-5528 Filed 3-5-97; 8:45 am]
BILLING CODE 4310-DN-P