[Federal Register Volume 62, Number 124 (Friday, June 27, 1997)]
[Notices]
[Pages 34774-34775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16856]


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

DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[WY-920-00-4120-14; North Rochelle Tract, WYW127221]


Competitive Coal Lease Sale Offering, WY

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of competitive coal lease sale.

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

SUMMARY: Notice is hereby given that certain coal resources in the 
North Rochelle Tract (formerly known as the North Roundup Tract) 
described below in Campbell County, Wyoming, 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.).

DATES: The lease sale will be held at 2 p.m., Tuesday, July 29, 1997. 
Sealed bids must be submitted on or before 4 p.m., Monday, July 28, 
1997.

ADDRESSES: The lease sale will be held in the 1st Floor Conference Room 
(Room 107) of the Wyoming State Office, 5353 Yellowstone Road, 
Cheyenne, Wyoming 82009. Sealed bids clearly marked ``Sealed Bid for 
North Rochelle Tract, WYW127221--Not to be opened before 2 p.m., on 
Tuesday, July 29, 1997'', must be submitted to the Cashier, Wyoming 
State Office, at the address given above or P.O. Box 1828, Cheyenne, 
Wyoming 82003-1828.

FOR FURTHER INFORMATION CONTACT: Laura Steele, Land Law Examiner, or 
Melvin Schlagel, Coal Coordinator, at 307-775-6200.

SUPPLEMENTARY INFORMATION: This coal lease sale is being held in 
response to a lease by application filed by Bluegrass Coal Development 
Company (formerly, SMC Mining Company), a subsidiary of Zeigler Coal 
Holding Company of Evansville, Indiana. The coal resources to be 
offered consist of all reserves recoverable by surface mining methods 
in the following described lands located approximately 46 miles south-
southeast of the City of Gillette, Wyoming, and about 13 miles 
southeast of Reno Junction just north of the Reno County Road:

T. 42 N., R. 70 W., 6th P.M., Wyoming
    Sec. 4: Lots 5-16, 19 and 20;
    Sec. 5: Lots 5-16;
T. 43 N., R. 70 W., 6th P.M., Wyoming
    Sec. 32: Lots 9-16;
    Sec. 33: Lots 11-14.

    Containing 1,481.930 acres

    All of the acreage offered has been determined to be suitable for 
mining. The surface estate of the tract is controlled by Arco Coal 
Company, Powder River Coal Company, and the U.S. Forest Service.
    The North Rochelle Tract, located in Campbell County, Wyoming, is 
adjacent to the existing North Rochelle and Black Thunder Mines and 
contains surface minable coal reserves in the Wyodak seam currently 
being recovered in the existing mines. The Wyodak seam averages about 
57 feet thick with an additional minable rider seam above the main seam 
that averages about 7 feet thick. There are no coal outcrops on the 
tract.
    The overburden above the rider seam ranges from 100-200 feet thick 
while the overburden above the main Wyodak seam where no rider seam 
exists ranges from 175-250 feet thick. The total in-place stripping 
ratio (BCY/ton) of the coal seams is 2.91:1.
    The tract contains an estimated 157,610,000 tons of minable coal in 
the Wyodak and rider seams. This estimate of minable reserves does not 
include any tonnage from localized seams or splits containing less than 
5 feet of coal.
    The coal is ranked as subbituminous C. The overall average quality 
is 8680 BTU/lb, 4.91 percent ash, 27.72 percent moisture, and .23 
percent sulfur. These quality averages place the coal reserves near the 
low end of coal quality currently being mined in the far southern 
Powder River Basin south of Wright, Wyoming. The tract in this lease 
offering contains split estate lands. The surface is not held by a 
qualified surface owner as defined in the regulations, 43 CFR 3400.0-5.
    The tract will be leased to the qualified bidder of the highest 
cash amount provided that the high bid equals or exceeds the fair 
market value of the tract. 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 bid 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 4 p.m., Monday, July 28, 1997, will not be considered. The 
minimum bid is not intended to represent fair market value. The fair 
market value of the tract will be determined by the Authorized Officer 
after the sale.

[[Page 34775]]

    If identical high 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.
    The lease issued as a result of this offering will provide for 
payment of an annual advance rental of $3.00 per acre, or fraction 
thereof, and of a royalty payment to the United States of 12\1/2\ 
percent of the value of coal produced by strip or augur mining methods 
and 8 percent of the value of the coal produced by underground mining 
methods. The value of the coal will be determined in accordance with 30 
CFR 203.250(f).
    Bidding instructions for the tract offered and the terms and 
conditions of the proposed coal lease are available from the Wyoming 
State Office at the addresses above. The case file, WYW127221, is 
available for inspection at the Wyoming State Office.

    Dated: June 20, 1997.
Alan R. Pierson,
State Director.
[FR Doc. 97-16856 Filed 6-26-97; 8:45 am]
BILLING CODE 4310-22-P