[Federal Register Volume 63, Number 165 (Wednesday, August 26, 1998)]
[Notices]
[Pages 45512-45513]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21993]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[WY-920-08-1320-01; WYW136458]


Notice of Competitive Coal Lease Sale; Thundercloud Tract; 
Wyoming

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice.

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SUMMARY: Notice is hereby given that certain coal resources in the 
Thundercloud 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 10 a.m., on Thursday, October 1, 
1998. Sealed bids must be submitted on or before 4 p.m., on Wednesday, 
September 30, 1998.

ADDRESSES: The lease sale will be held in the First Floor Conference 
Room (Room 107) of the Wyoming State Office, 5353 Yellowstone Road, 
P.O. Box 1828, Cheyenne, Wyoming 82003. Sealed bids must be submitted 
to the Cashier, Wyoming State Office, at the address given above.

FOR FURTHER INFORMATION CONTACT: Mavis Love, Land Law Examiner, Or 
Melvin Schlagel, Coal Coordinator, at 307-775-6258 and 307-775-6257, 
respectively.

SUPPLEMENTARY INFORMATION: This coal lease sale is being held in 
response to a lease by application (LBA) filed by Kerr-McGee Coal 
Corporation (Kerr-McGee Coal Corporation has changed its name to Jacobs 
Ranch Coal Company and is now a subsidiary of Kennecott Energy and Coal 
Company). The coal resources to be offered consist of all reserves 
recoverable by surface mining methods in the following-described lands 
located in southeastern Campbell County approximately 40 miles south-
southeast of Gillette, Wyoming, and about 7 miles east of State Highway 
59 along state Highway 450, the access road to the Black Thunder and 
Jacobs Ranch mines:

T. 43 N., R. 70 W., 6th P.M., Wyoming
    Sec. 4: Lots 8, 9, 15 thru 18;
    Sec. 5: Lots 5 thru 20;
    Sec. 6: Lots 8 thru 23;
    Sec. 7: Lots 5 thru 7, 8 (N2), 9 thru 12, 13 (N2 & SE), 19 (NE);
    Sec. 8: Lots 1 thru 16;
    Sec. 9: Lots 3 thru 6, 11 thru 14;
T. 43 N., R. 71 W., 6th P.M., Wyoming
    Sec. 1: Lots 5 thru 15, 16 (N2), 17 thru 19, SENE;
    Sec. 12, Lots 1, 2 (NE).

    Containing 3545.503 acres, more or less.

    The tract is adjacent to the Black Thunder and Jacobs Ranch mines. 
It contains surface minable coal reserves in two seams currently being 
recovered in the adjacent, existing mines. The Wyodak seam averages 
about 72 feet thick and is the primary recoverable coal seam on the 
tract. A rider seam separates from the top of the Wyodak in portions of 
the tract averaging about 10

[[Page 45513]]

feet thick. There are no coal outcrops on the tract.
    The overburden above the main seam ranges from about 100-300 feet 
thick on the LBA. The total in-place stripping ratio (BCY/Ton) of the 
coal is 2.57:1.
    The tract contains an estimated 412 million tons of minable coal. 
This estimate of minable reserves includes the rider seam mentioned 
above but does not include any tonnage from localized seams or splits 
containing less than 5 feet of coal. In addition, the southern boundary 
of the tract follows the railroad spur and State highway serving the 
adjacent mines. Coal recovery in this area depends on the economic 
feasibility of relocating the spur and roadway.
    The Thundercloud Tract coal is ranked a subbituminous C. The 
overall average quality on an as-received basis is 8810 BTU/lb, 27.93% 
moisture, 4.48% ash, 0.34% sulfur, and 1.45% sodium in ash. These 
quality averages place the coal reserves near the high end of the range 
of coal quality currently being mined in the southern Powder River 
Basin south of Wright, Wyoming.
    There are several oil and gas wells from the Hilight Field on the 
tract. The estimate of the bonus value of the coal lease will include 
consideration of the future oil and gas production from these wells. An 
economic analysis of this future income stream will determine whether a 
well is bought out and plugged prior to mining or re-established after 
mining is completed. Other costs considered will include moving or 
removing roads, pipelines, and surface facilities.
    The tract will be leased to the qualified bidder of the highest 
cash amount provided that the high bid equals 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 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 4 p.m., on 
Wednesday, September 30, 1998, 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.
    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 rental of $3.00 per acre, or fraction thereof, and 
a royalty payment to the United States of 12.5 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 206.250.
    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. Case file documents, WYW136458, 
are available for inspection at the Wyoming State Office.

    Dated: August 7, 1998.
Robert A. Bennett,
Deputy State Director, Minerals and Lands Authorizations.
[FR Doc. 98-21993 Filed 8-25-98; 8:45 am]
BILLING CODE 4310-22-M