[Federal Register Volume 64, Number 140 (Thursday, July 22, 1999)]
[Notices]
[Pages 39519-39521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18684]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[WY-920-1320-00, WYW 0333794]


Availability of Preliminary Public Interest Determination, Draft 
Environmental Assessment and Notice of Public Hearing

AGENCY: Department of Interior, Bureau of Land Management, Wyoming.

ACTION: Notice of availability of a preliminary public interest 
determination, a draft environmental assessment and notice of a public 
hearing on the proposed Belco/Enron 
I-90 coal lease exchange.

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SUMMARY: In accordance with 43 CFR 3435.3-5, the Bureau of Land 
Management (BLM) is giving notice that the lands to be leased in the 
proposed exchange are acceptable for further consideration for 
exchange. The lease rights offered by BLM are equal to the estimated 
fair market value of the lease exchange rights to be relinquished by 
Enron, as required by 43 CFR 3435.3-4.
    BLM is also giving notice that an environmental assessment (EA) has 
been developed to document conformance with the Buffalo Resource 
Management Plan, which determined that these lands are suitable for 
further

[[Page 39520]]

coal leasing consideration; to disclose the environmental consequences 
of the proposed exchange action and reasonable alternatives; and to 
determine if the proposed exchange is in the public interest. The BLM's 
preliminary public interest determination is that the proposed exchange 
is in the public interest, and these findings are documented within the 
EA.
    This exchange notice follows the January 20, 1999, notice which was 
required under 43 CFR 3435.3-1, and which initiated BLM's consideration 
of a coal lease for coal lease exchange. A copy of the notice was sent 
to the Governor of WY as required by 43 CFR 3435.3-6. Since the initial 
notice, Enron has expressed their willingness to proceed with 
consideration of the exchange as proposed by BLM (43 CFR 3435.3-2). 
Consistent with 43 CFR 3435.3-3, the Powder River Regional Coal Team 
(RCT) has been informed of exchange negotiations, and the RCT will be 
consulted prior to finalizing any exchange.
    BLM is requesting comments on the preliminary public interest 
determination, and the draft environmental assessment.

DATES: BLM is accepting written comments on the preliminary public 
interest determination and the draft environmental assessment until 
September 1, 1999, at the address below. A public hearing is scheduled 
to accept oral and written testimony and comment on the preliminary 
public interest determination, and the draft environmental assessment. 
The public hearing will be at 7 p.m. MDT, August 17, 1999 at the Best 
Western Tower West Lodge, 109 North U.S. Highway 14-16, Gillette, WY 
82716.

ADDRESSES: Request copies of the draft EA, including the preliminary 
public interest determination by either calling the Casper Field Office 
at 307-261-7600, or by writing to the Field Manager, Casper Field 
Office, Attn: Mike Karbs, 1701 East ``E'Street, Casper, Wyoming 82601. 
This is also where written comments should be sent.

FOR FURTHER INFORMATION CONTACT: For more information or to obtain a 
copy of the document contact Mike Karbs at the address above or by 
calling 307-261-7600.

SUPPLEMENTARY INFORMATION: Enron (formerly Belco Petroleum Corp.), has 
offered to exchange all coal lease rights retained from coal lease WYW 
0322794 to BLM for a Federal coal lease in the Hay Creek coal tract. 
Coal lease WYW 0322794 (in Johnson County, WY, east of the Town of 
Buffalo), was relinquished on December 31, 1986, but Enron retained the 
right to pursue an I-90 lease exchange. A legal description of the 
lands contained in terminated coal lease WYW 0322794 is at the end of 
this notice. Consideration of a lease exchange is appropriate as 
authorized under the Act of October 30, 1978, Pub. L. 95-554, commonly 
referred to as the I-90 Exchange Act.
    The Interior Board of Land Appeals (IBLA), in a December 5, 1997, 
decision (IBLA 94-684), stated,

    Because we conclude that the public interest favors completing a 
coal exchange, we remand the case to BLM in order that it may 
complete, as expeditiously as possible, an exchange of the Belco 
(Enron) tract for a redelineated Hay Creek tract or for all or part 
of one of the other two tracts listed in the Agreement. (IBLA 94-
684; 141 IBLA 367).

    Enron identified the possibility of exchanging 100 million tons of 
coal in sections 20 and 21, in the southeastern portion of the Hay 
Creek tract as the selected Federal coal lease in exchange for offered 
coal lease rights. This exchange proposal was also made by Belco 
(Enron) in a letter to BLM dated August 22, 1983, and again in a letter 
dated November 22, 1989; that is, an exchange of 170 million tons of 
coal in the Buffalo area for a tract containing approximately 100 
million tons of coal to be delineated from acreage in the extreme 
southeast portion of the Hay Creek Tract (141 IBLA 368).
    After evaluating Hay Creek's coal geology and reserves in response 
to Enron's proposal, BLM proposes to exchange a coal lease on the 
following coal lands for Enron's offered coal lease rights:

T. 52 N., R. 72 W., 6th P.M., Wyoming
    Sec. 17: Lot 16;
    Sec. 20: Lots 1, 2 (E2E2), 7 (E2E2), 8, 9, 10 (E2E2), 15 (E2E2), 
16;
    Sec. 21: Lots 3 (W2), 4, 5, 6 (W2), 10 (W2), 11-15.

    This 599.172 acre tract contains approximately 106 million tons 
of minable coal. The tract boundaries provide straight boundaries to 
promote maximum economic coal recovery and follow no less than 10-
acre subdivisions.

    The regulations at 43 CFR 3435.3-4 require that the land to be 
leased shall, to the satisfaction of the lessee and the Secretary, be 
equal to the estimated fair value of the lease to be relinquished. The 
two tracts under consideration here are not similar. At the old Belco 
lease, the coal averaged 7100 BTUs/lb. Eight thousand BTUs/lb is 
considered minable to a coal/overburden ratio of 5:1.
    BLM and Belco have independently determined that the old Belco 
lease had between 137-185 million tons of minable coal to a 5:1 
stripping limit. Enron proposed an exchange based on an estimated 
average of 170 million tons of minable coal at the old Belco lease for 
100 million tons of coal in sections 20 and 21 in the southeastern 
portion of the Hay Creek tract. This exchange proposal was also made by 
Belco in a letter to BLM dated August 22, 1983, and again in a letter 
dated November 22, 1989; that is, an exchange of 170 million tons of 
coal in the Buffalo area for a tract containing approximately 100 
million tons of coal to be delineated from acreage in the extreme 
southeast portion of the Hay Creek tract.
    After evaluating Hay Creek's coal geology and reserves in response 
to Enron's proposal, BLM proposed a 599.112 acre tract delineated from 
acreage in the southeast portion of the Hay Creek tract containing 
approximately 106 million tons of minable coal. The tract boundaries 
provide straight boundaries to promote maximum economic coal recovery 
and follow no less than 10-acre subdivisions. The coal at Hay Creek, as 
delineated by BLM, generally has a coal/overburden ratio of 2:1 or less 
and averages 8000 BTUs. The lesser tonnage offered at Hay Creek is due 
to the fact that the Hay Creek coal is of higher heat content and is 
shallower, resulting in lower mining cost.
    BLM did an economic evaluation of the Belco and Hay Creek tracts 
which concluded that neither tract would have attracted a bonus bid in 
1994. The Belco lease would not attract a bonus bid in the foreseeable 
future, while the Hay Creek tract could potentially attract a 
competitive bid in 2014. At present, under BLM's bonus bid evaluation, 
neither tract would attract a bonus bid, and for lease exchange 
purposes are considered of equal value.
    Based on information submitted by Belco (Enron), on the prior 
economic evaluation, and on a geologic evaluation of lands offered in 
the Hay Creek tract, and IBLA 94-684, BLM has made a preliminary 
determination that the proposed coal lease exchange with Enron is in 
the public interest.
    An environmental assessment (EA) has been developed by BLM to 
document conformance with the Buffalo Resource Management Plan, which 
determined that these lands are suitable for further coal leasing 
consideration; to disclose the environmental consequences of the 
proposed exchange action and reasonable alternatives; and to determine 
if the proposed exchange is in the public interest. The BLM's 
preliminary public interest determination is that the proposed exchange 
is in the public interest and

[[Page 39521]]

these findings are documented within the EA. This EA is now available 
to the public and written comments will be accepted through the public 
comment period as specified in DATES above. A public hearing to accept 
oral testimony has also been scheduled during the public comment 
period.
    The legal description of Federal coal lease WYW 0322794 originally 
held by Belco, and relinquished in 1986, with Belco retaining exchange 
rights is:

T. 50 N., R. 80 W, 6th P.M., Wyoming
    Sec. 30: Lots 3, 4, SESW;
     Sec. 31: Lots 1, 2, W2NE, SENE, E2NW;
T. 50 N., R. 81 W, 6th P.M., Wyoming
    Sec. 2: Lot 4, S2NW;
    Sec. 3: Lots 1-4, S2N2, S2;
    Sec. 4: Lots 1-3, S2NE, SENW, E2SW, S2SE, NESE;
    Sec. 10: E2, E2W2, NWNW;
    Sec. 11: W2SW;
    Sec. 14: SWNE, W2, N2SE, SWSE;
    Sec. 15: E2, E2NW;
     Sec. 22: E2NE;
     Sec. 23: W2E2, NW, E2SW;
    Sec. 25: S2NW, S2;
    Sec. 26: NE, E2NW, N2SE;
 T. 51 N., R. 81 W, 6th P.M., Wyoming
    Sec. 34: SE;
    Sec. 35: W2SW, SESW.

    Comments, including names and street addreses of respondents, will 
be available for public review at the addressess listed above during 
regular business hours (7:45 a.m.-4:30 p.m.), Monday through Friday, 
except holidays, and may be published as part of the final EA. 
Individual respondents may request confidentially. If you wish to 
withhold your name or street address from public review or from 
disclosure under the Freedom of Information Act, you must state this 
prominently at the beginning of your written comment. Such requests 
will be honored to the extent allowed by law. All submissions from 
organizations or businesses, and from individuals identifying 
themselves as representatives or officials of organizations or 
businesses, will be made available for public inspection in their 
entirety.

    Dated: July 16, 1999.
Alan R. Pierson,
State Director.
[FR Doc. 99-18684 Filed 7-21-99; 8:45 am]
BILLING CODE 4310-22-P