[Federal Register Volume 69, Number 199 (Friday, October 15, 2004)]
[Notices]
[Pages 61263-61264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-22556]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[WY-920-1320-EL, WYW151634]


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 
Hay Creek Tract described below in Campbell County, 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 Wednesday, November 
17, 2004. Sealed bids must be submitted on or before 4 p.m., on 
Tuesday, November 16, 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.

FOR FURTHER INFORMATION CONTACT: Julie Weaver, Land Law Examiner, or 
Robert Janssen, Coal Coordinator, at 307-775-6260, and 307-775-6206, 
respectively.

SUPPLEMENTARY INFORMATION: This coal lease sale is being held in 
response to a lease by application (LBA) filed by Triton Coal Company, 
LLC. The Federal coal tract being considered for sale is adjacent to 
the Buckskin Mine operated

[[Page 61264]]

by Triton Coal Company, LLC. Triton Coal Company, LLC, is a wholly 
owned subsidiary of Vulcan Intermediary, LLC. The coal resources to be 
offered consist of all reserves recoverable by surface mining methods 
in the following-described lands located 11 miles north of Gillette, 
Wyoming, in north-central Campbell County approximately two miles east 
of U.S. Highway 14/16, four miles west of State Highway 59 and crossed 
by Hay Creek. The BLM has increased the size of the LBA by 
approximately 83.06 acres along the northern and southeastern boundary 
in order to maximize economic recovery and to avoid a potential bypass 
of federal coal. The legal description for the property is as follows:

T. 52 N., R. 72 W., 6th P.M., Wyoming;
    Sec. 17: Lots 5 (S\1/2\), 6 (S\1/2\), 7 (S\1/2\), 8 (S\1/2\), 9-
14;
    Sec. 18: Lots 12 (SE\1/4\), 13 (E\1/2\), 20 (E\1/2\);
    Sec. 19: Lots 5 (E\1/2\), 12 (E\1/2\), 13 (E\1/2\), 20 (E\1/2\);
    Sec. 20: Lots 2 (W\1/2\, W\1/2\E\1/2\), 3-6, 7 (W\1/2\, W\1/
2\E\1/2\), 10 (W\1/2\, W\1/2\E\1/2\), 11-14, 15 (W\1/2\, W\1/2\E\1/
2\).

    Containing 921.1575 acres, more or less.

The tract is adjacent to Federal coal leases to the south and east, to 
a State of Wyoming coal lease to the northeast, and to an imbedded 
private lot all controlled by the Buckskin Mine. It is also adjacent to 
additional unleased Federal coal to the north and west.
    All of the acreage offered has been determined to be suitable for 
mining. Hay Creek is not expected to qualify as an alluvial valley 
floor and so can be diverted, mined out, and restored. Other features 
such as pipelines can be moved to permit coal recovery. Finally, 
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. All of the surface estate is controlled by the Buckskin 
Mine.
    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 divided into numerous seams and splits. The 
primary seam is the Canyon seam which varies from about 54-68 feet 
thick on the LBA. A shallower secondary seam, the Anderson, varies from 
about 16-19 feet thick on the LBA. A thin split above the Anderson 
reaches 5 feet thick in places on the LBA. A thin seam between the 
Anderson and Canyon varies between 5-10 feet thick on the LBA. Three 
additional seam/splits below the Canyon occur over limited areas on the 
LBA and range from 0-9 feet thick. The overburden depths range from 
about 32-275 feet thick. The interburden between the upper split and 
the Anderson ranges from 4-6 feet thick, between the Anderson and the 
middle seam from 14-20 feet thick, between the middle seam and the 
Canyon seam from 6-37 feet thick, and between the lower three split/
seams from 0-40 feet thick where they occur on the LBA.
    The tract contains an estimated 142,698,000 tons of mineable coal. 
This estimate of mineable reserves includes the Canyon and Anderson 
seams as well as the other seams/splits 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 2.0:1. Potential bidders for the LBA should consider the 
recovery rate expected from thick seam and multiple seam mining.
    The West Hay Creek LBA coal is ranked as subbituminous C. The 
overall average quality on an as-received basis is 8346 BTU/lb with 
about 0.28 percent sulfur and 1.75 percent sodium in the ash. These 
quality averages place the coal reserves near the low 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 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 Cashier will issue a receipt for each hand-delivered 
bid. Bids received after 4 p.m., on Tuesday, November 16, 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, 
WYW151634, are available for inspection at the BLM Wyoming State 
Office.

    Dated: August 12, 2004.
Alan Rabinoff,
Deputy State Director, Minerals and Lands.
[FR Doc. 04-22556 Filed 10-14-04; 8:45 am]
BILLING CODE 4310-22-P