[Federal Register Volume 62, Number 101 (Tuesday, May 27, 1997)]
[Notices]
[Page 28728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13698]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[MT-921-07-1320-01; MTM 80697]


Coal Lease Offering

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of coal lease offering by sealed bid MTM 80697--Western 
Energy Company.

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SUMMARY: Notice is hereby given that the coal resources in the lands 
described below in Rosebud County, Montana, will be offered for 
competitive lease by sealed bid. This offering is being made as a 
result of an application filed by Western Energy Company, in accordance 
with the provisions of the Mineral Leasing Act of 1920 (41 Stat. 437; 
30 U.S.C. 181-287), as amended.
    An Environmental Assessment of the proposed coal development and 
related requirements for consultation, public involvement, and hearing 
have been completed in accordance with 43 CFR part 3425. Concerns and 
issues expressed by the public during the public scoping process 
centered on social, economic, and cultural impacts to the Northern 
Cheyenne and Crow Tribes, hydrologic impacts to the area, and the need 
to do an Environmental Impact Statement (EIS) as the appropriate level 
of environmental documentation for the development of the coal 
resources. Three alternatives (Preferred, No Action, and Cultural 
Resource Avoidance) were developed to analyze impacts and to address 
issues relating to the proposed action. The Preferred Alternative, 
including special stipulations and mitigation measures, was chosen 
because it will maximize the beneficial use of the subject coal 
resource and will mitigate impacts to one historic site and two sites 
which have high values as traditional cultural properties.
    The 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 the 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.

COAL OFFERED: The coal resource to be offered consists of all 
recoverable reserves in the following-described lands located 
approximately 10 miles west of the town of Colstrip, Montana:

T. 1 N., R. 39 E., P.M.M.
    Sec. 2: S\1/2\NW\1/4\, N\1/2\NE\1/4\SE\1/4\
T. 1 N., R. 40 E., P.M.M.
    Sec. 6: Lots 1, 2, 3, 4, S\1/2\N\1/2\, S\1/2\
    Sec. 8: E\1/2\, N\1/2\NW\1/4\
    Sec. 14: S\1/2\SW\1/4\, SE\1/4\
T. 2 N., R. 40 E., P.M.M
    Sec. 32: All.

    Containing 2,061 acres.
    Rosebud County, Montana.

    The Rosebud seam, averaging 22.3 feet in thickness, is the only 
economically minable coal seam within the tract. The tract contains an 
estimated 35.6 million tons of recoverable reserves. Coal quality, as 
received, averages 8,360 BTU/lb., 25.52 percent moisture, 10.03 percent 
ash, and 0.97 percent sulfur. This coal bed is being mined in adjoining 
tracts by Western Energy Company.

RENTAL AND ROYALTY: A lease 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 43 CFR 3485.2.

DATES: Lease Sale--The lease sale will be held at 10 a.m., Wednesday, 
July 2, 1997, in the Conference Room on the Sixth Floor of the Granite 
Tower Building, Bureau of Land Management, 222 North 32nd Street, 
Billings, Montana 59107.
    Bids--Sealed bids must be submitted on or before 9 a.m., Wednesday, 
July 2, 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.

SUPPLEMENTARY INFORMATION: Bidding instructions for the offered tract 
are included in the Detailed Statement of Lease Sale. Copies of the 
statement and the proposed coal lease are available at the Montana 
State Office. Casefile documents are also available for public 
inspection at the Montana State Office.

    Dated: May 16, 1997.
Francis R. Cherry, Jr.,
Acting State Director.
[FR Doc. 97-13698 Filed 5-23-97; 8:45 am]
BILLING CODE 4310-DN-P