[Federal Register Volume 63, Number 166 (Thursday, August 27, 1998)]
[Notices]
[Page 45854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22974]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[MT-921-08-1320-01; NDM 86601]


Coal Lease Offering

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of coal lease offering by sealed bid: NDM 86601--Knife 
River Corporation.

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    U.S. Department of the Interior, Bureau of Land Management, Montana 
State Office, Granite Tower Building, 222 North 32nd Street, P.O. Box 
36800, Billings, Montana 59107-6800.
    Notice is hereby given that the coal resources in the lands 
described below in Mercer County, North Dakota, will be offered for 
competitive lease by sealed bid. This offering is being made as a 
result of an application filed by Knife River Corporation, 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 3425. The results of 
these activities were a finding of no significant environmental impact.
    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 2.5 miles south of the town of Beulah, North Dakota:

T. 143 N., R. 88 E., 5th P.M.,
    Sec. 24: NW\1/4\NW\1/4\, S\1/2\NW\1/4\, SW\1/4\, S\1/2\SE\1/4\.

    Containing 360 acres, Mercer County, North Dakota.

    There are three principal minable coal seams in the tract. They are 
the School House, Upper Beulah-Zap, and Lower Beulah-Zap. The tract 
contains an estimated 6.21 million tons of recoverable reserves.
    The School House seam averages 5.8 feet in thickness. Coal quality, 
as received, averages 6,643 BTU/lb., 36.66 percent moisture, 10.43 
percent ash, and 1.24 percent sulfur.
    The Upper Beulah-Zap seam averages 10.9 feet in thickness. Coal 
quality, as received, averages 6,776 BTU/lb., 38.52 percent moisture, 
5.94 percent ash, and 0.49 percent sulfur.
    The Lower Beulah-Zap seam averages 3.5 feet in thickness. Coal 
quality, as received, averages 6,717 BTU/lb., 38.27 percent moisture, 
7.32 percent ash, and 0.76 percent sulfur.
    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 the coal mined by surface methods and 8.0 
percent of the value of the coal mined by underground methods. The 
value of the coal shall be determined in accordance with 43 CFR 3485.2.
    Date: The lease sale will be held at 10 a.m., Wednesday, September 
30, 1998, in Side B of the Conference Room on the Sixth Floor of the 
Granite Tower Building at the above address.
    Sealed Bids: Sealed bids must be submitted on or before 9 a.m., 
Wednesday, September 30, 1998, to the cashier, Bureau of Land 
Management, Montana State Office, Second Floor, Granite Tower Building, 
222 North 32nd Street, P.O. 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.

SUPPLEMENTAL 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: August 20, 1998.
John E. Moorhouse,
Acting State Director.
[FR Doc. 98-22974 Filed 8-26-98; 8:45 am]
BILLING CODE 4310-DN-P