[Federal Register Volume 69, Number 103 (Thursday, May 27, 2004)]
[Notices]
[Pages 30329-30330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11572]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[WY-920-1320-EL, WYW154001]


Notice of Competitive Coal Lease Sale, Wyoming

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 NARO 
South Tract described below in Campbell and Converse Counties, WY, 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 Tuesday, June 29, 
2004. Sealed bids must be submitted on or before 4 p.m., on Monday, 
June 28, 2004.

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, BLM Wyoming State Office, at the address given above.

[[Page 30330]]


FOR FURTHER INFORMATION CONTACT: Mavis Love, Land Law Examiner, or 
Robert Janssen, Coal Coordinator, at 307-775-6258, and 307-775-6206, 
respectively.

SUPPLEMENTARY INFORMATION: This coal lease sale is being held in 
response to a lease by application (LBA) filed by Powder River 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 along the county line in southeastern Campbell 
County and northeastern Converse County approximately five miles east 
of State Highway 59, 14 miles south of State Highway 450, and adjacent 
to the Burlington Northern Santa Fe/Union Pacific joint rail line:

T. 41 N., R. 70 W., 6th PM, Wyoming
    Sec. 19: Lots 6-11, 12(S\1/2\), 13-20;
    Sec. 20: Lots 5(S\1/2\), 6(S\1/2\), 7(S\1/2\), 8(S\1/2\), 9-16;
    Sec. 21: Lots 5(S\1/2\), 12, 13;
    Sec. 28: Lots 3-6, 11, NE\1/4\SW\1/4\;
    Sec. 29: Lots 1-12;
    Sec. 30: Lots 5-12;
T. 41 N., R. 71 W., 6th P.M, Wyoming
    Sec. 23: Lots 8(S\1/2\), 9;
    Sec. 24: Lots 1, 5(S\1/2\), 6(S\1/2\), 7(S\1/2\), 8-16;
    Sec. 25: Lots 1-4, 9-10, 12(N\1/2\).

    Containing 2,956.725 acres, more or less.
    The tract is adjacent to Federal coal leases held by the North 
Antelope Rochelle Mine to the northeast and by the Antelope Mine to the 
south and west. It is also adjacent to additional unleased Federal coal 
to the north.
    All of the acreage offered has been determined to be suitable for 
mining except lands within 100 feet of the joint rail line right-of-
way. Other features such as the county road, pipelines, and power lines 
can be moved to permit coal recovery. Numerous oil and/or gas wells 
have been drilled 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. Small portions of the surface 
estate of the tract are owned by the North Antelope Rochelle Mine and 
the Antelope Mine, but most of the surface estate is owned by private 
individuals.
    The tract contains surface mineable coal reserves in the Wyodak 
seam currently being recovered in the adjacent, existing mines. On the 
tract, the Wyodak seam is generally split into the Anderson and Canyon 
seams. The upper Anderson seam averages about 37 feet thick and the 
lower Canyon seam averages about 34 feet thick on the LBA. Burn lines 
near the southern and eastern boundaries of the LBA tract mark the 
approximate limits of the coal seams. The overburden depths range from 
about 95-260 feet thick on the LBA. The interburden between the 
Anderson and Canyon seams ranges from 5-115 feet thick on the LBA.
    The tract contains an estimated 297,469,000 tons of mineable coal. 
This estimate of mineable reserves includes the Anderson and Canyon 
seams mentioned above but does not include any tonnage from localized 
seams or splits containing less than 5 feet of coal. The total mineable 
stripping ratio (BCY/Ton) of the coal is about 2.8:1. Potential bidders 
for the LBA should consider the recovery rate expected from thick seam, 
multiple seam, and burn line mining. The NARO South LBA coal is ranked 
as subbituminous C. The overall average quality on an as-received basis 
is 8929 BTU/lb with about 0.2% sulfur and 2% 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 in this lease offering contains split estate lands. There 
are qualified surface owners as defined in the regulations at 43 CFR 
3400.0-5. Consent granted by the qualified surface owners has been 
filed with and verified by the BLM. The lands included in the consent 
are shown below:

T. 41 N., R. 70 W., 6th P.M., Wyoming
    Sec. 19: Lots 6-11, 12(S\1/2\), 13, 14, 19, 20;
    Sec. 30: Lots 5, 6;
T. 41 N., R. 71 W., 6th P.M., Wyoming
    Sec. 24: Lots 5(S\1/2\), 6(S\1/2\), 7(S\1/2\), 8-11, 13-16.

    The purchase price of the consent is $10.00 and an overriding 
royalty of three percent (3%) of the gross realization of all coal 
mined and sold from the subject property.
    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 
Monday, June 28, 2004, 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 auger 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, 
WYW154001, are available for inspection at the BLM Wyoming State 
Office.

Phillip C. Perlewitz,
Acting Deputy State Director, Minerals and Lands.
[FR Doc. 04-11572 Filed 5-26-04; 8:45 am]
BILLING CODE 4310-22-P