[Federal Register Volume 66, Number 238 (Tuesday, December 11, 2001)]
[Notices]
[Pages 64054-64055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30533]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[WY-920-02-1320-EL, WYW146744]


North Jacobs Ranch Tract, Wyoming; Competitive Coal Lease Sale

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of competitive coal lease sale.

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SUMMARY: Notice is hereby given that certain coal resources in the 
North Jacobs Ranch Tract described below in Campbell County, WY, will 
be offered for competitive lease by sealed bid in accordance with the 
provisions of the

[[Page 64055]]

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., on Wednesday, January 16, 
2002. Sealed bids must be submitted on or before 4 p.m., on Tuesday, 
January 15, 2002.

ADDRESSES: The lease sale will be held in the First Floor Conference 
Room (Room 107) of the BLM, Wyoming State Office, 5353 Yellowstone 
Road, P.O. Box 1828, Cheyenne, WY 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 Jacobs Ranch Coal 
Company of Gillette, WY. 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 near Wright, 
WY, approximately 7 miles east of State Highway 59 and 2 miles north of 
State Highway 450:

T. 44 N., R. 70 W., 6th P.M.
    Sec. 26: Lots 8 through 12;
    Sec. 27: Lots 1 through 16;
    Sec. 28: Lots 1 through 16;
    Sec. 29: Lots 1 through 16;
    Sec. 30: Lots 5 through 20;
    Sec. 31: Lots 5 through 20;
    Sec. 32: Lots 1 through 16;
    Sec. 33: Lots 4, 5, 12, 13;
    Sec. 35: Lot 1;
T. 44 N., R. 71 W., 6th P.M.
    Sec. 25: Lots 1 through 16.
    Containing 4,982.24 acres, more or less.

    All of the acreage offered has been determined to be suitable for 
mining. The surface estate of the tract is controlled by the Jacobs 
Ranch Mine and the Black Thunder Mine. Also, approximately 200 acres of 
private coal is located adjacent to the tract at the eastern boundary 
and about 640 acres of State of Wyoming coal is located adjacent to the 
tract at the southwest boundary. These reserves might be recovered in 
conjunction with the LBA but are not included as part of this lease 
sale.
    There are numerous oil and gas wells and coalbed methane wells on 
the tract. The estimate of the bonus value of the coal lease will 
include consideration of the future 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 contains surface minable coal reserves in the Wyodak seam 
currently being recovered in the adjacent, existing mines. Recovery of 
the Wyodak seam can occur in three splits: the upper, middle, or lower 
depending on the specific geology encountered. On the LBA, there is 
generally only a single split with the upper Wyodak separated by a thin 
parting from the main seam. The two seams merge into a single seam in 
the western portion of the LBA as the parting pinches out. The upper 
seam averages 13 feet thick and the main seam averages 52 feet thick on 
the LBA. The lower Wyodak splits in the far eastern portion of the LBA 
requiring multiple seam recovery near the burnline along the eastern 
LBA boundary. An additional seam below the Wyodak occurs in the far 
western portion of the LBA but this thin seam is not considered to be 
minable due to the high incremental stripping ratio and relatively low 
quality. There are no coal outcrops on the tract. The overburden above 
the Wyodak seam ranges from about 70-300 feet thick on the LBA.
    The tract contains an estimated 537,542,000 tons of minable coal. 
This estimate of minable reserves includes the Wyodak splits mentioned 
above but does not include any tonnage from localized seams or splits 
containing less than 5 feet of coal. The total minable stripping ratio 
(BCY/Ton) of the coal is about 3.5:1. Potential bidders for the LBA 
should consider the recovery rate expected from thick seam and multiple 
seam mining.
    The North Jacobs Ranch LBA coal is ranked as subbituminous C. The 
overall average quality on an as-received basis is 8792 BTU/lb, 27.40% 
moisture, 5.46% ash, 0.45% sulfur, and 1.29% sodium in the ash. These 
quality averages place the coal reserves near the high end of the range 
of coal quality currently being mined in the Wyoming portion of the 
Powder River Basin.
    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 
Tuesday, January 15, 2002, 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.
    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 
of 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 BLM 
Wyoming State Office at the addresses above. Case file documents, 
WYW146744, are available for inspection at the BLM Wyoming State 
Office.

    Dated: December 5, 2001.
Phillip C. Perlewitz,
Acting Deputy State Director, Minerals and Lands.
[FR Doc. 01-30533 Filed 12-10-01; 8:45 am]
BILLING CODE 4310-22-P