[Federal Register Volume 76, Number 199 (Friday, October 14, 2011)]
[Notices]
[Page 63951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26352]



[[Page 63951]]

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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[LLUT-92000-11-L51100000-GA0000-LVEMJ09-CJ220, UTU85539]


Notice of Competitive Coal Lease Sale, Utah

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of competitive coal lease sale.

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SUMMARY: Notice is hereby given that that certain coal resources in the 
Dry Canyon Coal Tract described below in Carbon County, Utah, will be 
offered for competitive lease by sealed bid in accordance with the 
provisions of the Mineral Leasing Act of 1920, as amended.

DATES: The lease sale will be held at 1 p.m., November 15, 2011. The 
sealed bid must be sent by certified mail, return receipt requested, or 
be hand delivered to the address indicated below, and must be received 
on or before 10 a.m. (Mountain time) on November 15, 2011.

ADDRESSES: The lease sale will be held in the Fifth Floor Monument 
Conference Room, of the Bureau of Land Management (BLM), Utah State 
Office, 440 West 200 South, Salt Lake City, Utah 84101. Sealed bids can 
be hand delivered to the Cashier, BLM Utah State Office, 440 West 200 
South, Suite 500, Salt Lake City, Utah 84101, during normal business 
hours (7:45 a.m. to 4:30 p.m.), Monday through Friday, except holidays. 
Sealed bids may also be sent by certified mail, return receipt 
requested to the Cashier, BLM Utah State Office, P.O. Box 45155, Salt 
Lake City, Utah 84145-0155.

FOR FURTHER INFORMATION CONTACT: Jeff McKenzie, 440 West 200 South, 
Suite 500 Salt Lake City, Utah 84101-1345, telephone 801-539-4038, or 
e-mail [email protected]. Persons who use a telecommunications device for 
the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 
1-800-877-8339 to contact the above individual during normal business 
hours. The FIRS is available 24 hours a day, 7 days a week, to leave a 
message or question with the above individual. You will receive a reply 
during normal business hours.

SUPPLEMENTARY INFORMATION: This coal lease sale is being held in 
response to a lease by application (LBA) submitted by UtahAmerican 
Energy, Inc. The coal resources to be offered consist of all 
recoverable reserves in the following described lands located 
approximately 3 miles northeast of Helper, Utah.

Salt Lake Meridian

T. 12 S., R. 10 E.
    Sec. 25, N\1/2\;
    Sec. 26, N\1/2\;
    Sec. 27, N\1/2\;
    Sec. 28, NE\1/4\, E\1/2\NW\1/4\, SW\1/4\NW\1/4\, and S\1/2\;
    Sec. 29, E\1/2\SE\1/4\;
    Sec. 33, all.
T. 13 S., R. 10 E.
    Sec. 3, all;
    Sec. 4, lots 1 through 4 inclusive, S\1/2\N\1/2\, and N\1/2\S\1/
2\;
    Sec. 8, lot 4;
    Sec. 10, N\1/2\, and W\1/2\SW\1/4\;
    Sec. 11, N\1/2\, and SE\1/4\.

    Containing 4,325.01 acres, more or less, in Carbon County, Utah.

    UtahAmerican Energy, Inc., submitted the application for the coal 
lease. The company plans to mine the coal as an extension from their 
existing Aberdeen Mine, if the lease is obtained. The Dry Canyon Coal 
Tract has three minable coal beds; the Aberdeen, the Kennilworth and 
the D seam bed. The minable portions of the coal beds in this area 
average 10 feet in thickness for the Aberdeen seam, 8 feet in thickness 
for the Kennilworth seam, and 6 feet in thickness for the D seam. The 
tract contains an estimated 42.2 million tons of recoverable high-
volatile A/B bituminous coal. The coal quality in the coal beds on an 
``as received basis'' is as follows: (1) Aberdeen: 13,414 Btu/lb., 2.35 
percent moisture, 5.57 percent ash, 41.86 percent volatile matter, 
49.83 percent fixed carbon and 0.49 percent sulfur; (2) Kenilworth: 
13,287 Btu/lb., 2.06 percent moisture, 6.91 percent ash, 42.88 percent 
fixed carbon and 0.72 percent sulfur; (3) D: 12,470 Btu/lb., 6.00 
percent moisture, 8.00 percent ash, 39.00 percent volatile matter, 
47.00 percent fixed carbon and 0.50 percent sulfur.
    The tract will be leased to the qualified bidder of the highest 
cash amount provided that the high bid meets or exceeds the BLM's 
estimate of the fair market value (FMV) 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 
minimum bid is not intended to represent the FMV. The FMV of the tract 
will be determined by the Authorized Officer after the sale. The lease 
that may be 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 rate of 12.5 percent of the value of coal produced by surface 
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 1206.257.
    All coal LBAs submitted to the BLM for processing on or after 
November 7, 2005, are subject to cost recovery on a case-by-case basis 
(See 43 CFR 3000.10(d)(1), 70 FR 58872, October 7, 2005)). Pursuant to 
the regulations at 43 CFR 3473.2(f) the applicant for the Dry Canyon 
Coal Tract, UtahAmerican Energy, Inc., will have paid a total case-by-
case cost recovery processing fee of $41,300. The successful bidder of 
the Dry Canyon Coal Tract, if someone other than the applicant, must 
pay to the BLM the $41,300 previously paid by UtahAmerican Energy, Inc. 
In that circumstance, any refunds due to the applicant UtahAmerican 
Energy Inc., would be addressed in accordance with the provisions of 43 
CFR 3473.2(f)(3)). Additionally, the successful bidder must pay all 
processing costs the BLM incurs after the date of this sale notice is 
published in the Federal Register.
    The required Detailed Statement for the offered tract, including 
bidding instructions and sales procedures under 43 CFR 3422.3-2, and 
the terms and conditions of the proposed coal lease, is available from 
the BLM, Utah State Office, P.O. Box 45155, Salt Lake City, Utah 84101 
or in the Public Room, Room 500, 440 West 200 South, Suite 500, Salt 
Lake City, Utah 84101. All case file documents and written comments 
submitted by the public on FMV or royalty rates except those portions 
identified as proprietary by the commentator and meeting exemptions 
stated in the Freedom of Information Act, are available for public 
inspection during normal business hours in the BLM Public Room.

Jeff Rawson,
Associate State Director.
[FR Doc. 2011-26352 Filed 10-13-11; 8:45 am]
BILLING CODE 4310-DQ-P