[Federal Register Volume 76, Number 40 (Tuesday, March 1, 2011)]
[Notices]
[Pages 11258-11259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4364]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLWY922000-L13200000-EL0000; WYW163340]
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 West
Antelope II North Coal Tract described below in Campbell County,
Wyoming, 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 10 a.m., on Wednesday, May 11,
2011. Sealed bids must be submitted on or before 4 p.m., on Tuesday,
May 10, 2011.
ADDRESSES: The lease sale will be held in the First Floor Conference
Room (Room 107), of the Bureau of Land Management (BLM) Wyoming State
Office, 5353 Yellowstone Road, P.O. Box 1828, Cheyenne, Wyoming 82003.
Sealed bids must be submitted to the Cashier, BLM Wyoming State Office,
at the address given above.
FOR FURTHER INFORMATION CONTACT: Mavis Love, Land Law Examiner, or
Tyson Sackett, Acting Coal Coordinator,
[[Page 11259]]
at 307-775-6258, and 307-775-6487, respectively.
SUPPLEMENTARY INFORMATION: This coal lease sale is being held in
response to a lease by application (LBA) filed by Antelope Coal LLC,
Gillette, Wyoming. The coal resource to be offered consists of all
reserves recoverable by surface mining methods in the following
described lands located north of the Campbell/Converse county line
approximately 2-5 miles east of State Highway 59 and adjacent to the
western and northern lease boundary of the Antelope Mine.
T. 41 N., R. 71 W., 6th Principal Meridian,
Sec. 9, lots 9 through 16 inclusive;
Sec. 10, lots 11 through 16 inclusive;
Sec. 11, lot 13;
Sec. 14, lots 3 and 4;
Sec. 15, lots 1 through 5 inclusive, and lots 12 and 13;
Sec. 20, lots 14 through 16 inclusive;
Sec. 21, lots 1 through 16 inclusive;
Sec. 22, lots 2, 7, 8, and lots 14 through 16 inclusive;
Sec. 27, lots 6 through 11 inclusive;
Sec. 28, lots 1 through 8 inclusive; and
Sec. 29, lots 1 through 3 inclusive, and lots 6 through 8
inclusive.
Containing 2,837.63 acres, more or less in Campbell County,
Wyoming.
The tract is adjacent to Federal leases to the east and south and
surrounds a State of Wyoming lease, all controlled by the Antelope
Mine. It is adjacent to additional unleased Federal coal to the west
and north.
All of the acreage offered has been determined to be suitable for
mining except for the mainline railroad right-of-way in the far
northeast portion of the tract. Features such as utilities and
pipelines can be moved to permit coal recovery. A possible alluvial
valley floor crosses the tract along Horse Creek, but is unlikely to be
significant for farming and so will be available for mining with
appropriate reclamation. In addition, numerous producing coal bed
natural gas wells have been drilled on the LBA 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 the future
income stream from coal mining will consider reasonable compensation
for lost production of coal bed natural gas when the wells are bought
out by the coal lessee. Mining will eliminate the gas reservoir. The
surface estate of the tract is owned by Antelope Coal Company or
private individuals and other entities.
The tract contains surface mineable coal reserves in the Wyodak-
Anderson coal zone currently being recovered in the adjacent, existing
mine. On the LBA tract, there are generally two recoverable seams, the
shallower Anderson and the deeper Canyon. On the LBA tract, both seams
are generally continuous although a thin split off the bottom of the
Anderson occasionally occurs. This split can usually be recovered with
the main Anderson seam. The Anderson seam varies from 35 to 42 feet
thick while the Canyon seam varies from 32 to 36 feet thick. The
interburden varies significantly and can be as thin as 12 feet to as
thick as 95 feet but is usually in the 65 to 75 foot thick range.
Overburden depths to the Anderson seam range from about 250 to 440 feet
thick on the LBA tract.
The tract contains an estimated 350,263,000 tons of mineable coal.
This estimate of mineable reserves includes both of the main seams and
the thin split mentioned above, but does not include any tonnage from
localized seams or splits where the coal is less than 5 feet thick. It
does not include the coal in the State of Wyoming coal lease, although
these reserves are expected to be recovered in conjunction with the LBA
tract. It also excludes coal within and along the railroad right-of-way
since this coal cannot be recovered using typical mining practices. The
total mineable stripping ratio of the coal in bank cubic yards per ton
is approximately 4.6:1. Potential bidders for the LBA tract should
consider the recovery rate expected from thick seam and multiple seam
mining. The West Antelope II North LBA coal is ranked as subbituminous
C. The overall average quality on an as-received basis is 8,967 British
Thermal Units per pound containing approximately 0.23 percent sulfur.
The average quality of these coal reserves are equal to some of the
best quality coal 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 LBA tract lands included in the
consent documents are:
T. 41 N., R. 71 W., 6th P.M.,
Sec. 9, lots 9 through 16 inclusive;
Sec. 10, lots 11 through 16 inclusive;
Sec. 14, lots 3 and 4;
Sec. 15, lots 1 through 4 inclusive; and
Sec. 21, lots 1through 8 inclusive.
Containing 1147.43 acres, more or less, in Campbell County,
Wyoming.
The purchase price of the consent is $10,097,500.
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 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 BLM Wyoming State Office Cashier will issue a receipt
for each hand-delivered bid. Bids received after 4 p.m. local time, on
Tuesday, May 10, 2011, 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 a royalty
payment to the United States of 12.5 percent of the value of coal
produced by surface 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 LBA tract offered and the terms and conditions of the proposed
coal lease are available from the BLM Wyoming State Office at the
address above. Case file documents, WYW163340, are available for
inspection at the BLM Wyoming State Office.
Donald A. Simpson,
State Director.
[FR Doc. 2011-4364 Filed 2-28-11; 8:45 am]
BILLING CODE 4310-22-P