The BLM’s multiple-use mission is to sustain the health and productivity of the public lands 

for the use and enjoyment of present and future generations. The Bureau accomplishes this 

by managing such activities as outdoor recreation, livestock grazing, mineral development, 

and energy production, and by conserving natural, historical, cultural, and other resources 

on public lands. 

BLM/WY/PL-12/007+1320
 

 

 

 

 

 

 

 

U.S. DEPARTMENT OF THE INTERIOR
 

BUREAU OF LAND MANAGEMENT
 

RECORD OF DECISION
 NORTH HILIGHT FIELD LEASE BY APPLICATION
 

WYW164812 

CAMPBELL COUNTY, WYOMING
 

INTRODUCTION 

On October 7, 2005, Ark Land Company (ALC), a wholly owned subsidiary of Arch Coal, Inc., 

filed an application with the BLM for Federal coal reserves in two separate tracts located north 

and southwest of and immediately adjacent to the Black Thunder Mine in Campbell County, 

Wyoming (Appendix 1, Figure 1). The mine is operated by Thunder Basin Coal Company 

(TBCC), a subsidiary of Arch Western Resources, LLC. The tracts are referred to as the North 

Hilight Field and South Hilight Field LBA tracts. The application was made pursuant to the 

Leasing on Application regulations found in the Code of Federal Regulations at 43 CFR Subpart 

3425.1. BLM determined that the two tracts in the application would be processed separately 

and, if a decision is made to lease both of these tracts, a separate competitive lease sale would be 

held for each tract. The North Hilight Field lease by application (LBA) tract was assigned case 

file number WYW164812. 

ALC has applied to lease Federal coal reserves in order to extend the life of the Black Thunder 

Mine. The BLM refers to these types of applications as maintenance tracts. A maintenance tract 

is a tract of Federal coal that is adjacent to, and can be mined by, an existing active coal mine. 

As applied for, the North Hilight Field LBA tract includes a total of approximately 2,613.50 

acres (Appendix 1, Figure 2). ALC estimates that, as applied for, the tract includes 

approximately 263.4 million tons of recoverable Federal coal in Campbell County, Wyoming. 

The North Hilight Field LBA tract was evaluated in the Wright Area Coal Lease Applications 

Environmental Impact Statement (EIS). The EIS analyzed the proposed leasing of six Federal 

coal tracts located in the Wright Area of the Wyoming portion of the Powder River Basin. The 

Proposed Action analyzed in the EIS is to hold one competitive sealed-bid lease sale and issue a 

lease for the Federal coal lands included in the North Hilight Field LBA tract as applied for by 

ALC. The Proposed Action assumes that the applicant would be the successful bidder on the 

tract, and that the tract would be mined as a maintenance lease for the existing mine. According 

to the applicant, the Black Thunder Mine needs the Federal coal included in the North Hilight 

Field coal lease area in order to extend the life of the mine. The applicant would recover the 

Federal coal using the same methodology, machinery, and facilities that are currently being used 

to recover the coal in the existing Black Thunder Mine coal leases. ALC anticipates that, if they 

acquire the lease for the North Hilight Field LBA tract as applied for, it would extend the life of 

the Black Thunder Mine by approximately two years. 

The Black Thunder Mine has a permit to conduct mining operations approved by the Wyoming 

Department of Environmental Quality Land Quality Division (WDEQ/LQD) and a Mineral 

Leasing Act (MLA) of 1920, as amended, mining plan approved by the Secretary of the Interior 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to conduct surface coal mining operations on their existing coal leases. The mine complies with 

the requirements of the Clean Air Act (CAA) through an air quality permit approved by the Air 

Quality Division of the Wyoming Department of Environmental Quality (WDEQ/AQD) which 

currently allows mining of up to 190 million tons of coal per year. 

BLM administers the Federal Coal Leasing Program under the MLA as amended by the Federal 

Coal Leasing Amendments Act of 1976. If any proposed lease tract contains surface lands which 

are under the jurisdiction of any Federal agency other than the Department of Interior (USDI) or 

are occupied by a qualified surface owner, that agency or individual must consent to the issuance 

of the lease, and in the case of a Federal agency, may prescribe terms and conditions to be 

imposed on that lease (43 CFR 3400.3-1 and 3420.4-2). Thunder Basin Coal Company LLC, 

Ark Land Company, Mills Brothers Partnership, Guy W. Edwards Trust, Western Railroad 

Properties Inc. & Burlington Northern Railroad, and Foundation Coal West, Inc. owned the 

private lands contained within the North Hilight Field LBA tract as analyzed in the Wright Area 

EIS under Alternative 2. The Mills family has since transferred ownership of their surface lands 

to Ark Land Company. There are currently no qualified surface owners within the selected 

configuration for the North Hilight Field LBA tract. 

The selected configuration for the North Hilight Field (Appendix 1, Figure 3) includes 

approximately 1,916.29 acres of additional lands from the BLM study area with approximately 

80.7 acres, more or less, of National Forest System lands in the Thunder Basin National 

Grassland (TBNG) administered by the USDA-Forest Service (FS). As required by 43 CFR 

3420.4-2, the FS has provided consent to BLM to lease the FS-administered lands that were 

included in the North Hilight Field tract. The FS signed their Record of Decision on November 

23, 2011. Their prescribed terms and conditions for the North Hilight Field coal tract are 

included in Appendix 2. The FS ROD is subject to appeal under FS administrative procedures. 

In the event of a FS ROD appeal, BLM’s decision would not be implemented until the FS appeal 

process is completed. 

BACKGROUND 

Lease by Application Process 

In the Powder River Basin (PRB), maintenance tracts are generally nominated for leasing by 

companies operating adjacent existing mines. To process an LBA, the BLM must evaluate the 

quantity, quality, maximum economic recovery (MER), and fair market value (FMV) of the 

Federal coal. The BLM must also evaluate the environmental and socioeconomic impacts of 

leasing and mining the Federal coal in accordance with the requirements of the National 

Environmental Policy Act of 1969 (NEPA). BLM prepared the Wright Area Coal EIS to 

evaluate and disclose potential impacts of leasing the Federal coal in six Wright Area coal tracts, 

including the North Hilight Field tract. Although leasing the North Hilight Field would not 

authorize mining operations on the tract, the EIS evaluates the potential impacts of mining the 

North Hilight Field tract because mining is a logical consequence of issuing a lease for a 

maintenance tract of coal. 

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The Office of Surface Mining Reclamation and Enforcement (OSM) is a cooperating agency on 

the Wright Area EIS. OSM is the Federal agency with the primary responsibility to administer 

programs that regulate surface coal mining in accordance with Section 503 of the Surface Mining 

Control and Reclamation Act of 1977 (SMCRA). OSM also recommends approval, approval 

with conditions, or disapproval of the MLA mining plan to the Assistant Secretary of the 

Interior, Lands and Minerals Management. The FS is a cooperating agency since a portion of the 

Wright Area proposed lands for leasing lie within the TBNG. 

The WDEQ/LQD, WDEQ/AQD, Wyoming Department of Transportation (WYDOT), and the 

Converse County Board of Commissioners are also cooperating agencies on this EIS. 

WDEQ/LQD has a cooperative agreement with the Secretary of the Interior to regulate surface 

coal mining operations on Federal and non-Federal lands within the State of Wyoming. 

WDEQ/AQD regulates air borne emissions in Wyoming and administers the air quality standards 

developed by the Environmental Protection Agency (EPA). WYDOT’s responsibilities include 

maintaining state roads and highways, planning and supervising road improvement work, and 

supporting airports and aviation in the state. The responsibilities of the Converse County Board 

of Commissioners include but are not limited to the management and oversight of county roads, 

facilities, and planning and zoning rules in the county. 

By law and regulation, the LBA process is an open, public, competitive sealed-bid process. 

Bidding at any potential sale is not restricted to the applicant. In order for BLM to award and 

issue a coal lease, the highest bid received must meet or exceed fair market value of the coal as 

determined by BLM’s economic evaluation. 

ALC filed the LBA because the North Hilight Field, as applied for, is adjacent to their existing 

approved mining operations at the Black Thunder Mine and the Federal coal could be mined 

using their existing mine facilities, equipment, and employees (Appendix 1, Figure 1). In the 

Wright Area Coal EIS, the alternatives that are analyzed in detail assume that the applicant 

would be the successful bidder if a competitive coal lease sale is held. 

History of Coal Leasing Activity in the Wyoming Portion of the Decertified Powder River 

Coal Region 

Since decertification of the Powder River Federal Coal Region in 1990, 24 Federal coal leases 

have been issued in Wyoming’s Campbell and Converse counties under the LBA process with 

competitive sealed-bid sales. These leases include approximately 56,614 acres and 6.5 billion 

tons of mineable coal. Twenty-two of these leases were issued to the following producing mines 

for the purpose of extending operations at those mines: Jacobs Ranch (2), Black Thunder (3), 

North Antelope Rochelle (4), Eagle Butte (2), Antelope (5), Caballo (1), Belle Ayr (1), 

Buckskin (1), Cordero/Rojo (2), and the former North Rochelle (1). 

The remaining two leases, the West Rocky Butte and the West Roundup, were issued to 

companies intending to open new mines. The West Rocky Butte lease was issued to 

Northwestern Resources Company in 1992. They planned to start a new mine to recover the coal 

included in the Rocky Butte and West Rocky Butte leases but the new mine was never 

3 
 

 

 

 

 

 

 

 

developed. The Rocky Butte and West Rocky Butte leases are now held by Caballo Coal 

Company, a subsidiary of PEC, and are included in the Caballo Mine. The West Roundup lease 

was issued to West Roundup Resources, Inc., a subsidiary of PEC, and has been incorporated 

into the recently permitted School Creek Mine. 

Pending Coal Leasing Applications and Other Proposed Projects in the Wyoming Powder 

River Basin 

There are currently nine Wyoming PRB maintenance coal lease applications being processed by 

BLM including the North Hilight Field LBA tract and the recently completed South Porcupine 

and North Porcupine LBA Records of Decision. As applied for, the pending coal lease 

applications comprise of approximately 36,148 acres and 4.443 billion tons of Federal coal 

(Appendix 1, Figure 1). The coal lease applications and applicant mines include the following: 

Belle Ayr West (Belle Ayr Mine), Antelope Ridge (North Antelope Rochelle Mine), North 

Hilight Field (Black Thunder Mine), West Hilight Field (Black Thunder Mine), Hay Creek II 

(Buckskin Mine), West Jacobs Ranch (Jacobs Ranch Mine), Maysdorf II (Cordero Rojo Mine), 

South Porcupine (North Antelope Rochelle Mine), and North Porcupine (North Antelope 

Rochelle Mine). 

In addition to coal leasing and mining, oil and gas leasing and development have also occurred in 

the area. Both conventional and coalbed natural gas (CBNG) wells have been drilled in and 

around the Black Thunder Mine and the North Hilight Field LBA. Conventional and CBNG 

resources are currently being recovered from Federal and private oil and gas leases in the 

application area. Federal oil and gas lease ownership in the North Hilight Field LBA area is 

described in detail in the Final EIS. Federal oil and gas lessees and private interests identified by 

the applicant were included on the mailing list for the Wright Area Coal EIS. 

The EIS discusses energy development in and around the North Hilight Field LBA. The 

discussion includes a summary of the results of an analysis of the conventional oil and gas 

drilling that has occurred in the area, prepared by the BLM Wyoming Reservoir Management 

Group (WSO-RMG). The analysis found that 37 oil wells have been drilled on lands included in 

the North Hilight Field BLM study area. Twenty of these were still producing; seven were shut 

in; and ten were plugged and abandoned. 

The Wright Area Coal EIS includes a summary of the results of the BLM WSO-RMG analysis of 

the CBNG resources in the area. Most of the CBNG production in the area has occurred from 

the upper Fort Union Formation (Paleocene) Wyodak-Anderson coal seam, the same coal beds 

being mined by the surface coal operators. In the Wyoming portion of the PRB, CBNG has been 

produced from the Wyodak-Anderson zone since the late 1980s. According to data analyzed by 

the BLM WSO-RMG and the U.S. Geological Survey, measured gas content was minimal in all 

of the Wyodak-Anderson coal cores that were collected in the year 2000 at locations near the 

surface coal mines, indicating that the coal seams were already substantially depleted of CBNG 

in the vicinity of the mines. The EIS identifies 40 CBNG wells that have been drilled over time 

within the North Hilight Field BLM study area. Thirty-four of those wells have been producing 

4 
 

 

 

 

 

 

and six were shut in. CBNG wells that continue to produce in advance of coal mining assist in 

removing any remaining methane in the coal seams. 

Several mechanisms can be used to facilitate recovery of the conventional oil and gas and CBNG 

resources prior to mining if the Federal coal in the tract is leased: 

•	 BLM will attach a Multiple Mineral Development stipulation in the Federal coal lease 

which states that BLM has the authority to withhold approval of coal mining operations 

that would interfere with the development of mineral leases that were issued prior to the 

North Hilight Field coal tract being leased (Appendix 2). 

•	 Conventional oil and gas wells must be abandoned while mining and reclamation 

operations are in progress. If the value of the remaining oil and gas reserves justifies the 

expense of reestablishing production, the wells could be recompleted or redrilled 

following mining. 

•	 BLM has a policy in place regarding CBNG-coal development conflicts (BLM 

Washington Office Instruction Memorandum (IM) No. 2006-153). The IM directs BLM 

decision-makers to optimize the recovery of both CBNG and conventional resources and 

to ensure that the public receives a reasonable return. This policy offers royalty 

incentives to CBNG operators to accelerate production in order to recover the natural gas 

while simultaneously allowing uninterrupted coal mining operations. The IM also states 

that it is the policy of the BLM to encourage oil and gas and coal companies to resolve 

conflicts between themselves and, when requested, BLM will assist in facilitating 

agreements between the companies. 

•	 Mining of the North Hilight Field LBA tract would not be authorized until: 1) the coal 

lessee obtains a permit approved by the WDEQ/LQD to mine the tract, and 2) the MLA 

mining plan is approved by the Secretary of the Interior. Before the MLA mining plan 

can be approved, BLM must approve a Resource Recovery and Protection Plan (R2P2). 

Prior to approving the R2P2, BLM can review the status of CBNG and conventional oil 

and gas development on the tract and the mining sequence proposed by the coal lessee. 

Because the permit approval process generally takes the coal lessee several years to 

complete, CBNG resources on the coal tract could continue to be recovered during that 

time. 

•	 Prior to mining the Federal coal, the coal lessee can negotiate an agreement with the oil, 

gas, and pipeline owners and operators regarding the removal of their existing facilities 

on the North Hilight Field tract. 

Other proposed projects in the Wyoming PRB that have advanced to the planning, permitting, or 

construction stages and that would reasonably be expected to be completed in the foreseeable 

future include: the Dry Fork Station coal-fired power plant constructed by Basin Electric Power 

Cooperative near the Dry Fork Mine north of Gillette (being tested); the Two Elk coal-fired Unit 

1 and Unit 2 power plants proposed by the North American Power Group (NAPG) which would 

5 
 

 

 

 

 

 

 

 

be located east of the Black Thunder Mine; and a railroad line from the PRB to Minnesota 

proposed by the Dakota, Minnesota, and Eastern Railroad Corporation (DM&E). In September, 

2007, Canadian Pacific Railway Ltd. announced acquisition of the DM&E and its subsidiaries. 

The transaction was reviewed and approved by the Surface Transportation Board in October, 

2008. 

Additionally, the newly constructed 100-megawatt Wygen III coal-fired power plant, located at 

the Black Hills Corporation energy complex near the Wyodak Mine in Gillette, Wyoming, has 

been completed. It is fully operational and is currently delivering electricity to approximately 

70,000 residents in western South Dakota and parts of Wyoming and Montana. 

Several coal conversion projects have also been proposed. Based on status and available 

information, only one, the KFx Coal Beneficiation Project, was considered to have a high 

enough likelihood of proceeding to include it in the PRB Coal Review. The KFx (now 

Evergreen Energy) coal beneficiation plant produced commercially viable product in 2007 until 

the plant was idled down in 2008. Since then, Evergreen Energy Inc. and its strategic partner, 

Bechtel Power Cooperation, have relocated their operations. 

The proposed power plants, DM&E railroad line, coal conversion projects, and the ongoing and 

proposed oil, gas, and CBNG operations are separate projects being developed independently of 

leasing the North Hilight Field tract. If these projects are developed as proposed and the North 

Hilight Field area is leased and mined as proposed, there would potentially be some overlap 

between the environmental and socioeconomic impacts of constructing and operating some of 

the projects and the environmental and socioeconomic impacts of mining the North Hilight Field 

tract. The cumulative effects of these projects are described in Chapter 4 of the Wright Area 

Coal Lease Applications EIS. The cumulative impact discussion in the EIS is based on analyses 

completed for the PRB Coal Review. The PRB Coal Review can be accessed at the following 

BLM website: 

http://www.blm.gov/wy/st/en/programs/energy/Coal_Resources/PRB_Coal/prbdocs.html. 

DECISION 

As the BLM Wyoming High Plains District Manager, my decision is that it is in the public 

interest to offer the North Hilight Field LBA tract as described below for competitive sale so that 

these reserves are available to compete for sale in the open coal market to meet the national coal 

demand that is expected to exist until at least 2035. The public interest is served by leasing the 

North Hilight Field LBA tract because doing so provides a reliable, continuous supply of stable 

and affordable energy for consumers throughout the country. Developing this coal also helps 

reduce our nation’s dependence on foreign energy supplies and provides significant 

socioeconomic benefits for the United States, Wyoming, and local communities. 

Under this decision, Alternative 2 for the North Hilight Field LBA tract has been selected from 

the Wright Area Coal Lease Applications EIS. Under Alternative 2, the Federal coal included in 

the North Hilight Field LBA tract, as modified by BLM, will be offered for lease at a 

competitive sealed-bid sale. Under Alternative 2, the North Hilight Field tract has been modified 

6 
 

 

 

 

 

 

 

 

by BLM to include additional lands from the BLM study area. The tract includes 4,529.79 acres, 

more or less, and the BLM estimates that the tract contains approximately 467,596,000 tons of 

mineable Federal coal resources in Campbell County, Wyoming. 

If the highest bid received at the sale meets or exceeds the FMV as determined by the BLM and 

if all other leasing requirements are met, a lease will be issued to the successful qualified high 

bidder. The competitive lease sale will be held as described in Federal regulations found at 43 

CFR Subpart 3422, Lease Sales. In the event that the highest bid submitted at the competitive 

lease sale of the North Hilight Field LBA tract does not meet or exceed the FMV as determined 

by BLM, the BLM may, but is not obligated to, re-offer the coal tract for leasing at a later date. 

Under Alternative 2, it is assumed that the applicant would be the successful bidder on the North 

Hilight Field LBA tract and that the Federal coal would be mined to extend the life of the 

adjacent Black Thunder Mine. The tract would be mined and reclaimed in a logical sequence in 

concert with ongoing mining and reclamation operations at the adjacent existing mine. This 

would be consistent with the analysis of the impacts described in the EIS. 

This decision incorporates by reference the standard coal lease stipulations which address 

compliance with the basic requirements of the environmental statutes and additional BLM 

special stipulations (Appendix 2). 

This decision is in conformance with the Approved Resource Management Plan for Public Lands 

Administered by the BLM Buffalo Field Office (RMP), which was completed in 2001 and 

amended in 2003. This decision is also in conformance with the USDA-FS Land and Resource 

Management Plan for the Thunder Basin National Grassland which was completed in 2001. 

For FS-administered lands, consent decision authority has been delegated to the Forest 

Supervisor level on the Medicine Bow-Routt National Forests and Thunder Basin National 

Grassland. The North Hilight Field LBA tract includes Federal coal lands located within the 

TBNG administered by FS. Therefore, FS must consent and prescribe terms and conditions in 

order for the tract to be leased. The FS provided BLM their consent to lease the lands in the 

North Hilight Field LBA tract in the FS Record of Decision signed on November 23, 2011. The 

FS consent decision is conditioned on application of the Notice for Lands of the National Forest 

System under Jurisdiction of the Department of Agriculture (FS Notice) on the North Hilight 

Field Federal coal lease tract (WYW164812), when and if the tract is leased (Appendix 2). 

REASONS FOR DECISION 

Denying this proposed coal leasing project is not likely to affect current or future coal 

consumption used for electric generation. Not offering the North Hilight Field Federal coal tract 

for lease is unlikely to affect changes in the national electric generation portfolio. The rationale 

for this conclusion is summarized below. 

Various commenters on the Wright Area Coal EIS asserted that by not leasing this LBA, and, in 

a cumulative sense, by denying proposed federal coal leasing in the Wyoming portion of the 

7 
 

 

 

 

PRB, BLM would slow global climate change and would push the national electric generation 

portfolio to contain only non-carbon fuel alternatives. BLM has thoroughly considered this 

comment in our decision. 

BLM agrees that movement toward electric generation capacity not reliant on carbon fuels is 

positive. Carbon fuels are a finite resource and may become more costly in the future. Having 

more non-carbon instead of carbon-based electric generation would assist in decreasing humancaused greenhouse gas (GHG) emissions. Reducing human-caused GHG emissions would help 

to lessen any harmful effects that they may be causing to global climate. 

BLM reviewed two independent studies that determined the ability of the domestic electric 

generation industry to alter the present portfolio (mix of electric generation technologies) 

corresponding to the time period that the North Hilight Field reserves would be leased and 

produced. The first study was done by the Department of Energy (Annual Energy Outlook 2008 

Report, Energy Information Administration, April 2008) and the second was by the domestic 

electric generation industry's research arm, the Electric Power Research Institute (Electricity 

Technology in a Carbon Constrained Future, authored by R. James, Carnegie-Mellon University, 

November 2007). 

Both studies projected the electric generation portfolio to 2030 and both studies recognized the 

likelihood of carbon regulation. While there were differences in each study related to the mix of 

renewable sources, nuclear, and energy conservation, both studies were consistent in finding that 

coal-fired electric generation would represent 52-58 percent of the electric generation portfolio 

by 2030, as compared to the current 51 percent. 

The Annual Energy Outlook 2010 Report (Energy Information Administration, December 2009) 

represents a forecast to the year 2035. This report incorporates the 2009 downturn in electric 

demand which resulted from lower electric demand for manufacturing in the depressed domestic 

economy of 2009. This forecast lowered the percentage of coal-fired electric generation in the 

domestic electric generation portfolio to 44 percent by 2035, based on a slowing in electric 

demand through 2035, and a doubling, to 17 percent, of renewable electric generation in the 

domestic electric generation portfolio by 2035. 

Based on these studies, even with a considerably more optimistic projection for renewable 

sources, coal use continues to be projected as the largest portion of the domestic electric fuel 

mix. As described in the Final EIS, the key determinant of energy consumption is population. 

As human population and activities have increased over time, coal and other carbon-based fuels 

have been utilized to provide for these additional energy demands. As directly stated by the 

Department of Interior Secretary Salazar, “The fact remains that oil and gas and coal are a very 

important part of our energy portfolio now and they will continue to be an important part of our 

energy portfolio in the future . . . Fossil fuels and clean technology coal will have to be part of 

the mix if the U.S. is able to have enough energy in the future” (Great Plains Energy Address, 

November 9, 2009). 

8 
 

 

 

 

 

 

 

 

 

Thousands of mines worldwide extract and produce coal for the purpose of generating electricity. 

Other coal mines located outside of the PRB have the capacity to replace the coal production 

generated by the Black Thunder Mine. 

The North Hilight Field coal reserves, if leased and approved for mining, would allow the coal 

mining operator to continue to compete for coal sales in a diverse open supply and demand 

market. Denying this lease offer would not cease currently approved mining operations. Rather, 

a denial would require the mine to cease operations only after the current lease reserves were 

depleted. This would deny the mine operator the ability to compete with other operators in an 

open market for a future coal demand that is projected to continue until at least 2035. The 

inability of the Black Thunder Mine, or any other existing PRB producer, to offer reserves in the 

coal market would not cause electric generators to stop burning coal. Utility companies will 

likely operate existing coal-burning facilities until either cost or regulatory requirements render 

them ineffective or they are replaced by other reliable large scale capacity electric generation 

technologies capable of consistently supporting the bulk electrical demands of the United States’ 

people. 

The effect of rejecting the North Hilight Field LBA would be that the existing mine would cease 

operations after the current reserves are depleted (approximately 9.3 years), and the Black 

Thunder Mine would not be competitive in the national coal market to meet the future coal 

demand in the U.S. that is expected to last until at least 2035. Other coal producers have the 

capacity to produce coal and replace the production from this existing mine. 

Lastly, PRB coal has competed for an increasing share of coal sales in the market primarily 

because it is lower cost, environmentally compliant, and successful post-mining reclamation has 

been thoroughly demonstrated. For these reasons, over the past several decades, PRB coal has 

been replacing other domestic coals in the open market, and would be expected to compete 

similarly in the future. 

Cumulatively, the effect of rejecting the coal leasing proposed throughout the PRB would be that 

many of the existing mines would cease operations once current reserves are depleted (ranging 

from 7 to 15 years). Those mines would then not be able to compete with other mines to meet 

the future coal demand that is expected to last until at least 2035. When current reserves are 

depleted at these mines, their production would likely be replaced by other domestic and, 

potentially, international coal producers with coal that is more costly, less environmentally 

compliant, and has greater residual environmental impact. 

Many other factors including but not limited to those listed below were considered in the 

decision to lease the North Hilight Field LBA tract: 

•	 The Federal Coal Program encourages the development of domestic coal reserves and the 

reduction of the United States’ dependence on foreign sources of energy. BLM 

recognizes that coal extraction is currently necessary in order to meet the nation’s energy 

needs. A primary goal of the National Energy Policy is to add energy supplies from 

diverse sources including domestic oil, gas, and coal. Private development of Federal 

9 
 

 

 

 

 

 

 

 

 

 

coal reserves is integral to the BLM Coal Leasing Program under the authorities of the 

Mineral Leasing Act of 1920, the Federal Land Policy and Management Act of 1976 

(FLPMA), and the Federal Coal Leasing Amendments Act of 1976 (FCLAA). 

•	 Ark Land Company applied for the North Hilight Field LBA coal tract in order to extend 

the life of the Black Thunder Mine. The tract, if leased and sold, would allow the mine to 

acquire access to a continuing supply of low sulfur compliance coal that would be sold to 

power plants for generating electricity. Continued leasing of low sulfur PRB coal assists 

coal-fired power plants in meeting the Clean Air Act requirements without constructing 

new power plants or revamping existing plants. Generally, the expenses associated with 

constructing new power plants, retrofitting or revamping existing plants, or substituting 

alternative fuels would increase overall energy costs to customers and consumers. 

•	 The leasing and subsequent mining of Federal coal reserves provides the United States, 

the State of Wyoming, and its affected counties with income in the form of lease bonus 

payments, lease royalty payments, and tax payments. Production of Federal coal also 

provides the public with a supply of cost-efficient, low sulfur coal for power generation. 

The Governor of Wyoming and other state and local officials support Federal coal 

leasing. 

•	 The BLM is the lead agency responsible for leasing Federal coal lands under the MLA as 

amended. When an application to lease Federal coal is submitted, the BLM is obligated 

to respond to the application in a timely manner. In order to process an LBA, BLM must 

fulfill the requirements of NEPA by preparing environmental analyses. In this case, an 

EIS was prepared to provide agency decision-makers and the public with a complete and 

objective evaluation of the environmental impacts of leasing and mining the Federal coal. 

BLM then makes a decision on whether or not to offer the Federal coal for lease. In 

either case, BLM must notify the applicant in a timely fashion of its decision. 

•	 Offering the North Hilight Field LBA tract (totaling 4,529.79 acres containing 

approximately 467,596,000 tons of mineable Federal coal reserves as estimated by the 

BLM) is responsive to the coal lease application received on October 7, 2005. 

•	 The decision to offer the North Hilight Field coal tract for leasing is in conformance with 

the BLM land use plan decisions covering this area (see section entitled “Conformance 

with Existing Land Use Plans”). 

•	 The Wright Area Coal Lease Applications EIS was prepared in response to applications 

BLM received to lease tracts of Federal coal adjacent to existing mines in Wyoming. The 

environmental impacts of this decision were fully disclosed in the EIS. Public comments 

were addressed throughout the NEPA process. 

•	 The BLM’s selected tract configuration under Alternative 2, as modified and described in 

this decision, provides for maximum economic recovery of the coal resource. 

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•	 The U.S. Fish and Wildlife Service has provided written concurrence for leasing the 

North Hilight Field coal tract pursuant to Section 7(a)(2) of the Endangered Species Act 

of 1973, as amended (Appendix 3). Multiple surveys have been conducted for Ute 

ladies’-tresses orchid during the known flowering periods. Two sage-grouse leks have 

been documented within the North Hilight Field general analysis area. The Butch Lek is 

an unoccupied/abandoned lek on the North Hilight Field LBA tract. The Hansen Lakes 

Lek, an occupied lek, is also located on the North Hilight Field tract. The North Hilight 

Field general analysis area is outside of the Governor of Wyoming’s statewide designated 

greater sage-grouse core area. Two prairie dog colonies, approximately 3.4 acres and 

19.5 acres in size, are located on the North Hilight Field tract. Twenty-three bird species 

on the “Coal Mine List of 40 Migratory Bird Species of Management Concern in 

Wyoming” have historically been observed at least once in the Wright EIS general 

analysis area. Wildlife mitigation measures will be prescribed in concert with USFWS 

during the permit for mining process of the North Hilight Field LBA. 

•	 Consultation with the appropriate Native American tribes was initiated by the BLM 

Wyoming State Office on May 29, 2008. No tribes indicated concerns with the 

disturbance of cultural sites in the North Hilight Field general analysis area. 

•	 Fifty-three archeological sites have been identified within the North Hilight Field general 

analysis area, all of which have been determined not eligible for the NRHP (48CA177, 

48CA334, 48CA337, 48CA339, 48CA341, 48CA343, 48CA362, 48CA366, 48CA367, 

48CA373, 48CA376, 48CA452, 48CA453, 48CA2117, 48CA2118, 48CA3375, 

48CA3514, 48CA3542, 48CA3543, 48CA3544, 48CA3545, 48CA3546, 48CA3547, 

48CA3560, 48CA3562, 48CA3845, 48CA3846, 48CA3849, 48CA3850, 48CA3851, 

48CA3853, 48CA3854, 48CA3855, 48CA3856, 48CA3857, 48CA4245, 48CA5573, 

48CA6733, 48CA6734, 48CA6735, 48CA6736, 48CA6737, 48CA6738, 48CA6739, 

48CA6740, 48CA6741, 48CA6742, 48CA6743, 48CA6744, 48CA6745, 48CA6746, 

48CA6755, and 48CA6841). 

•	 The BLM consulted SHPO in relation to determinations of eligibility and impacts for 

these sites and has determined that leasing the coal would result in no effect to historic 

properties. No further consultation or resolution of effects is required. On June 29, 2011, 

BLM notified SHPO that the undertaking would result in no effect to historic properties. 

Any further National Historic Preservation Act consultation with the Wyoming State 

Historic Preservation Office will be completed as required during the mine permitting 

process by OSM and WDEQ prior to any surface disturbance of the tract. 

•	 Issuing a Federal coal lease for the North Hilight Field tract would not result in the 

creation of new sources of human-caused GHG or mercury emissions. The Black 

Thunder Mine would produce the North Hilight Field coal at currently permitted levels 

using existing production and transportation facilities. If the North Hilight Field tract is 

leased and mined, site-specific GHG emission rates from the Black Thunder Mine are 

anticipated to increase slightly compared to current emission rates due to increased strip 

ratios and added hauling distances. 

11 
 

 

 

 

 

 

 

•	 If the coal reserves contained within the North Hilight Field tract are leased and mined at 

production levels of approximately 135 million tons per year and the coal is used to 

generate electricity by coal-fired power plants, the emissions of GHG and mercury 

attributable to the coal produced at the Black Thunder Mine would be extended for 

approximately two years. The rate of human-caused CO2 and mercury emissions would 

depend upon the permitted levels at the coal combustion facilities where the coal is 

burned and the potential emission limits that may be applied to those facilities in the 

future by regulation or legislation. 

•	 The potential for regulation of GHG emissions as an air pollutant is recognized in this 

decision. Should such regulation be put in place, there may be an effect on coal demand, 

depending on how the regulatory actions affect the demand for electric power and the 

mix of methods used to produce electricity. Effects to coal demand would be reflected 

through the coal market, coal pricing, and supply. If demand decreases, it is expected 

that less efficient coal producers, or those with reserves having less desirable coal 

characteristics, may lose customers. Based on review of past performance, Black 

Thunder Mine has competed very well in the national coal market. 

PUBLIC INVOLVEMENT 

BLM received the North Hilight Field coal lease application on October 7, 2005. BLM 

announced the receipt of the LBA and published a Notice of Public Meeting in the Federal 

Register on February 9, 2006. At the public meeting held in Casper, Wyoming on April 19, 

2006, the Powder River Regional Coal Team (PRRCT) reviewed the North Hilight Field coal 

lease application and ALC presented information about their existing mine and the pending lease 

application. The PRRCT recommended that BLM process the application. On April 27, 2006, 

BLM notified the Governor of Wyoming that ALC had made application for the North Hilight 

Field Federal coal lands. 

BLM published a Notice of Intent to Prepare an EIS and Notice of Public Meeting in the Federal 

Register on July 3, 2007, in the Gillette News-Record on July 6, 2007, and in the Douglas 

Budget on July 11, 2007. Scoping notices were also mailed to Federal, state, and local 

government agencies, conservation groups, commodity groups, and individuals who could be 

impacted by this LBA. BLM and the applicant jointly developed the distribution list. On July 

24, 2007, a public scoping meeting was held in Gillette, Wyoming. The scoping period extended 

from July 3 through September 3, 2007, during which time BLM received nine comment letters. 

A notice announcing the availability of the Wright Area Coal Lease Applications Draft EIS was 

published in the Federal Register by the EPA on June 26, 2009. Parties on the distribution list 

were sent copies of the Draft EIS at that time. A 60-day comment period on the Draft EIS 

commenced with publication of the EPA’s Notice of Availability and ended on August 25, 2009. 

The BLM published a Notice of Availability/Notice of Public Hearing for the Draft EIS in the 

Federal Register on July 8, 2009. The BLM’s Federal Register notice announced the date and 

12 
 

 

 

 

 

 

 

 

 

 

time of the formal public hearing, which was held on July 29, 2009, in Gillette, Wyoming. The 

purpose of the public hearing was to solicit public comment on the Draft EIS, fair market value, 

maximum economic recovery, and the proposed competitive sale of Federal coal from the 

Wright Area LBAs. BLM also published a Notice of Public Hearing in both the Douglas Budget 

and Gillette News-Record newspapers on July 8, 2009. Two individuals presented statements on 

the Draft EIS during the hearing. BLM received written comments from 17 individuals, 

agencies, businesses, and organizations as well as over 500 comment e-mails from other 

interested parties. Comments that BLM received on the Draft EIS and how BLM considered 

these comments during the preparation of the Final EIS were included in Appendix I of the Final 

EIS. Written comments and the transcript of the formal public hearing are also available for 

review at the BLM Wyoming High Plains District Office in Casper. 

A notice announcing the availability of the Wright Area Coal Lease Applications Final EIS was 

published in the Federal Register by the EPA on July 30, 2010. Parties on the distribution list 

were sent copies of the Final EIS at that time. The comment period for the Final EIS ended on 

August 30, 2010. As explained on the first page of the Final EIS, the public review period was 

open for 30 days after EPA’s Notice of Availability published in the Federal Register. 

BLM received written comments on the Final EIS from Michael J. Strawn, Powder River Basin 

Resource Council/Sierra Club/Center for Biological Diversity, Leslie Glustrom, WildEarth 

Guardians/Sierra Club/Defenders of Wildlife, Dorsey & Whitney LLP/Ark Land Company, and 

the Campbell County Board of Commissioners. BLM has reviewed, evaluated, and considered 

these comments. The comment letters and BLM’s responses are available at 

http://www.blm.gov/wy/st/en/info/NEPA/HighPlains/Wright-Coal.html. All comments that 

were received in a timely manner were considered in the preparation of this Record of Decision 

(ROD). 

SUMMARY OF THE PROPOSED ACTION AND ALTERNATIVES 

The EIS analyzed the proposed action and two alternatives in detail for the North Hilight Field 

LBA tract. Chapter 2 of the EIS contains a full description of each. Summarized descriptions 

are presented below. 

Proposed Action: Hold a competitive lease sale for the Federal coal lands as applied for 

and issue a maintenance lease to the successful bidder. 

Under the Proposed Action, the as applied for lands in the North Hilight Field application as 

submitted by ALC would have been offered for lease at a competitive sealed-bid sale. As 

applied for, the tract included approximately 2,613.50 acres (Appendix 1, Figure 2). The 

applicant estimated that the lands contained approximately 263.4 million tons of recoverable 

Federal coal. This alternative assumed that the applicant would be the successful bidder and that 

the coal would be mined, processed, and sold by the Black Thunder Mine. 

13 
 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative 1 (Environmentally Preferable Alternative): Reject the application. 

Under this alternative, ALC’s application to lease the Federal coal lands included in the North 

Hilight Field LBA tract would be rejected and the tract would not be offered for competitive sale 

at this time. This is the No Action Alternative. 

The applicant is presently mining existing leases that were previously acquired. Previously 

approved and permitted mining activity at the adjacent Black Thunder Mine would continue with 

or without leasing the North Hilight Field LBA tract. Assuming that the North Hilight Field 

LBA tract would never be leased and coal removal and the associated disturbance would never 

occur, this alternative would be the environmentally preferable alternative. However, selection 

of this alternative would not preclude future applications to lease all or part of the Federal coal 

included in the North Hilight Field LBA tract. 

Rejection of the application would not cause mining operations to immediately cease at the 

Black Thunder Mine, nor would it immediately reduce production from this mine. Coal is mined 

in 27 states and is mostly used for generating electricity to support the country’s demand for 

energy. If the North Hilight Field application was rejected and, in the long term, the Black 

Thunder Mine was to close, other regional and national mining companies would replace the 

coal production that would have been lost due to the Black Thunder Mine’s closure. 

Alternative 2 (Selected Alternative): Reconfigure the tract, hold one competitive sale for 

Federal coal lands included in the tract as modified by BLM, and issue a lease to the 

successful bidder. 

Along with the Federal coal lands that were applied for by ALC, BLM identified and evaluated 

an additional area comprised of approximately 4,525.87 acres of unleased Federal coal adjacent 

to the northern and eastern edges of the application lands (Appendix 1, Figure 2). These 

additional lands and the as applied for tract were referred to as the BLM study area. The study 

area enabled BLM to evaluate and explore the potential of increasing competitive interest in the 

tract, allowing for more efficient recovery of Federal coal in the area, and reducing the likelihood 

of bypassed Federal coal. 

After analyzing the additional lands included in the BLM study area for the North Hilight Field, 

BLM selected the tract configuration as described below. BLM’s selected tract configuration 

includes approximately 1,916.29 acres of additional lands from the BLM study area. The final 

configuration (Appendix 1, Figure 3) was selected because it allows for more efficient recovery 

of the Federal coal, decreases the amount of bypassed Federal coal in the area, and best serves 

the public interest. Under the selected configuration, the North Hilight Field tract includes 

approximately 4,529.79 acres and BLM estimates that it contains approximately 467,596,000 

tons of mineable Federal coal resources. 

The legal description of the lands to be offered for competitive lease sale under Alternative 2, 

BLM’s selected tract configuration, for the North Hilight Field tract is as follows: 

14 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North Hilight Field Tract (WYW164812): 

T. 44 N., R. 70 W., 6th P.M., Campbell County, Wyoming 

Section 19: Lots 5 through 20 (aka All); 656.88 acres 

Section 20: Lots 1 through 16 (aka All); 651.07 acres 

Section 21: Lots 1 through 16 (aka All); 658.37 acres 

Section 22: Lots 1 through 15 (aka W1⁄2NE1⁄4, SE1⁄4NE1⁄4, W1⁄2, SE1⁄4); 606.85 acres 

T. 44 N., R. 71 W., 6th P.M., Campbell County, Wyoming 

Section 23: Lots 1 through 16 (aka All); 653.11 acres 

Section 24: Lots 1 through 16 (aka All); 653.44 acres 

Section 26: Lots 1 through 16 (aka All); 650.07 acres 

North Hilight Field Tract Total: 4,529.79 acres 

The land descriptions and acreages are based on the BLM Status of Public Domain Land and 

Mineral Titles Approved Master Title Plats as of August 30, 2005 and September 7, 2007 and 

Coal Plats as of September 7, 2007. The coal estate in the tract described above is Federallyowned. Surface ownership consists of privately owned lands and Federal lands administered by 

the USDA-Forest Service (FS). The selected configuration for the North Hilight Field tract 

(Appendix 1, Figure 3) includes approximately 80.7 acres of National Forest System lands in the 

Thunder Basin National Grassland (TBNG) administered by the FS. 

ALTERNATIVES CONSIDERED BUT NOT ANALYZED IN DETAIL 

Further descriptions of these alternatives may be found in Chapter 2 of the Final EIS. 

New Mine Start 

Under this alternative, as under the Proposed Action, Alternative 1, and Alternative 2, BLM 

would have held a competitive coal lease sale and issued a lease for the lands included in the 

North Hilight Field tract. This alternative assumed, however, that the successful qualified bidder 

would have been someone other than the applicant and that this bidder would have planned to 

open a new mine to develop the Federal coal resources. In BLM’s current estimation, for a new 

mine to open in the Wyoming PRB, the first lease would need to contain approximately 500 to 

600 million tons of coal. 

This alternative was considered but was not analyzed in detail because it was unlikely that a new 

mine would start up and lease this tract. The North Hilight Field selected configuration may 

include enough coal resources to initially support opening a new mine. However, the sufficient 

quality future coal reserves that are required in order to support a sustainable, active mining 

operation may potentially be limited in this area. A new mine start would require considerable 

initial capital expenses, development of new mining and reclamation plans, and a large number 

of new employees. A new mine start would additionally create a new source of air quality 

15 
 

 

 

 

 

 

 

impacts. The potential difficulty in obtaining an air quality permit is another issue that could 

discourage new mine starts in the PRB. In view of these issues, the development of a new mine 

start on any of the LBA tracts included in the Wright Area EIS is considered unlikely. 

Delaying the Sale 

Under this alternative, the BLM would have delayed the sale of the North Hilight Field tract as 

applied for. This alternative assumed that the tract could be developed later as either a 

maintenance tract or a new mine start, depending on how long the sale would have been delayed. 

The environmental impacts of mining this Federal coal at a later time as a maintenance tract 

would be expected to be similar to the Proposed Action and Alternative 2. If a new mine start 

was required to mine the coal in this tract, the environmental impacts would be expected to be 

greater than if it were mined as an extension of an existing mine. 

In general, delaying the sale may have allowed CBNG resources in the Wright general analysis 

area to be more completely recovered prior to mining. If market prices increased in the future, 

bonus and royalty payments to the government would have been higher if the tract was offered 

for sale at a later date. 

This alternative was considered but was not analyzed in detail because it would not produce 

substantially different impacts than other alternatives that were analyzed in detail. First, rental 

and royalty provisions in the proposed lease provide for the United States to benefit if coal prices 

increase by the time of mining. Royalty and tax payments are collected at the time the coal is 

sold. They increase as coal prices increase, which allows the United States to benefit if coal 

prices have increased by the time of mining. Second, as described in Chapter 2 of the EIS, 

several mechanisms are already in place to facilitate continued CBNG recovery prior to mining 

the lands included in the Wright general analysis area. 

CONFORMANCE WITH EXISTING LAND USE PLANS 

Under the requirements of FCLAA, lands that are being considered for Federal coal leasing must 

be included in a comprehensive land use plan and leasing decisions must be compatible with that 

plan. The Approved Resource Management Plan (RMP) for Public Lands Administered by the 

Bureau of Land Management Buffalo Field Office, completed in 2001 and amended in 2003, 

governs and addresses the leasing of Federal coal in Campbell County. The USDA-FS Land and 

Resource Management Plan for the Thunder Basin National Grassland (TBNG), Medicine BowRoutt National Forest, Rocky Mountain Region, completed in 2001, guides resource management 

activities on the TBNG. 

The major land use planning decision that BLM must make concerning Federal coal resources is 

a determination of which Federal coal lands are acceptable for further consideration for leasing. 

There are four coal screening procedures that BLM uses to identify these coal lands. The 

screening procedures require BLM to: 1) estimate development potential of the coal lands, 2) 

apply the unsuitability criteria listed in the regulations at 43 CFR 3461, 3) make multiple land 

use decisions that eliminate Federal coal deposits from consideration for leasing to protect other 

16 
 

 

 

 

resource values, and 4) consult with surface owners who meet the criteria defined in the 

regulations at 43 CFR 3400.0-5 (gg) (1) and (2). The coal screens were developed for Federal 

decision-making and are utilized in environmental analyses associated with BLM RMPs, EISs, 

USDA-FS TBNG planning documents, evaluations, and other resource management activities. 

Under the first coal screening procedure, a coal tract must be located within an area that has been 

determined to have coal development potential in order to receive further consideration for 

leasing [43 CFR 3420.1-4(e)(1)]. The North Hilight Field tract is within the area identified by 

BLM as having coal development potential. 

The second coal screening procedure requires the application of the coal mining unsuitability 

criteria which are listed in the Federal coal management regulations at 43 CFR 3461. These 

criteria have been applied to high to moderate coal development potential lands in the Wyoming 

PRB, including the North Hilight Field tract and surrounding lands. 

Biological surveys have been conducted throughout the North Hilight Field general analysis 

area. The USFWS has provided written concurrence for leasing the North Hilight Field LBA 

tract pursuant to Section 7(a)(2) of the Endangered Species Act of 1973, as amended (Appendix 

3). In coordination with WDEQ, the USFWS will develop and prescribe wildlife mitigation 

measures as a component of the mining permit authorization process. 

A portion of the Burlington Northern Santa Fe & Union Pacific (BNSF & UP) railroad right-ofway (ROW) borders the west side of the North Hilight Field tract. Lands within the rail line 

right-of-way (ROW) and associated 100-foot buffer zone were found to be unsuitable for mining 

under Unsuitability Criterion 2. Although the lands within the railroad ROW and buffer zone 

have been determined to be unsuitable for mining, they are included in the tract lease to allow for 

efficient recovery of all mineable coal adjacent to and outside of the ROW and its associated 

buffer zone. This determination also complies with coal leasing regulations which do not allow 

leasing in less than 10-acre aliquot parts. The lease will include a stipulation stating that no 

mining activity may be conducted in the portion of the lease within the railroad ROW or 

associated 100-foot buffer zone. This stipulation honors the finding of unsuitability for mining 

under Criterion 2. 

Unsuitability Criterion Number 3 states that lands within 100 feet of the outside line of the ROW 

of a public road shall be considered unsuitable for surface coal mining. SMCRA Section 

522(e)(4) and 30 CFR 761.11(d) prohibit surface mining operations on lands within 100 feet of 

the outside line of the ROW for a public road. A portion of the ROW of Shroyer Road 

(Campbell County Road 116), Hilight Road (Campbell County Road 52), Small Road (Campbell 

County Road 89), and Jacobs Road are located within BLM’s selected configuration for the 

North Hilight Field tract (Appendix 1, Figure 3). Without further action, these roads, their 

associated ROWs, and the 100-foot buffer zones extending on either side of the ROWs would be 

considered unsuitable for mining at this time under Criterion Number 3. 

17 
 

 

 

 

 

 

 

 

 

 

 

 

 

There is an exception to the public road ROW prohibition in the regulations at SMCRA Section 

522(e)(4) and 30 CFR 761.11(d) which can be applied if the appropriate road authority 

(Campbell County Board of Commissioners) allows the public road to be relocated or closed. 

Surface coal mining could potentially occur within a public road ROW and buffer zone if the 

regulatory authority, or the appropriate public road authority designated by the regulatory 

authority, allows the public road to be relocated or closed after providing public notice and 

opportunity for a public hearing. A finding must be reached, and stated in writing, that the 

interests of the affected public and landowners will be protected [30 CFR 761.11(d) and 43 CFR 

3461.5(c)(iii)]. Both the Small Road and the Jacobs Road have been closed and vacated by the 

Campbell County Commissioners. 

For public roads granted approval for closure and relocation, the exception to the prohibition on 

mining within the public road ROW and associated buffer zone could be applied and the 

unsuitability determination could be reconsidered. A mining company could recover the coal 

underlying those segments of the public road ROWs and buffer zones that are approved for 

closure and relocation. If approval is not obtained to relocate or close a public road, the coal 

underlying the ROW and buffer zone would remain unsuitable for mining and would not be 

recovered. 

The Small Road and the Jacobs Road have been closed and vacated by the Campbell County 

Commissioners. The Hilight Road and Shroyer Road remain open. Although a portion of the 

lands within the Hilight Road, Shroyer Road, Small Road, and Jacobs Road ROWs and buffer 

zones have been determined to be unsuitable for mining, they are included in the tract lease to 

allow for efficient recovery of all mineable coal adjacent to and outside of the ROWs and buffer 

zones. This determination also complies with coal leasing regulations which do not allow 

leasing in less than 10-acre aliquot parts. If a lease is issued for this tract, stipulations will be 

attached stating that no mining activity may be conducted within the public road ROWs and 

associated buffer zones unless permits to close or relocate the roads are approved by the 

Campbell County Board of Commissioners. This stipulation honors the finding of unsuitability 

for mining under Criterion 3. 

No other lands included in the North Hilight Field tract were found to be unsuitable for mining 

during the application of the unsuitability criteria for BLM’s 2001 Buffalo RMP update. Sitespecific unsuitability determinations for some criteria were deferred until an application to lease 

was filed. These findings are included in Appendix B of the Wright Area Coal Final EIS. 

The third coal screening procedure, a multiple land use conflict analysis, must be completed to 

identify and “eliminate additional coal deposits from further consideration for leasing to protect 

resource values of a locally important or unique nature not included in the unsuitability criteria,” 

in accordance with 43 CFR 3420.1-4(e)(3). The 2001 Buffalo RMP update addresses two types 

of multiple land use conflicts: municipal/residential conflicts and multiple mineral development 

(coal versus oil and gas) conflicts. 

18 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The municipal/residential multiple land use conflict was addressed by applying buffers around 

the municipal planning boundaries for the major municipalities within the BLM Buffalo Field 

Office area including Gillette and Wright. BLM’s selected North Hilight Field tract 

configuration does not extend into any of the municipal buffer zones. 

BLM’s evaluation of the multiple mineral development conflicts related to issuing a lease for the 

North Hilight Field tract is discussed above in the “Pending Coal Leasing Applications and Other 

Proposed Projects in the Wyoming Powder River Basin” section of this record of decision. 

The fourth coal screening procedure requires consultation with surface owners who meet the 

criteria defined in the regulations at 43 CFR 3400.0-5(gg)(1) and (2). Under BLM’s selected 

tract configuration for the North Hilight Field, surface ownership consists of Federal lands 

administered by the USDA-FS and privately owned lands held by various entities. Ark Land 

Company, Thunder Basin Coal Company LLC, Foundation Coal West, Inc., and Western 

Railroad Properties, Inc. and Burlington Northern Railroad currently own the private lands 

contained within the selected North Hilight Field LBA tract. If private surface owners are 

determined to be qualified under this CFR citation, then qualified surface owner consent is 

required before those lands can be included in a Federal coal lease. There are currently no 

qualified surface owners within the selected configuration for the North Hilight Field LBA tract. 

In summary, the lands in the North Hilight Field coal tract have been subjected to the four coal 

planning screens and are determined to be acceptable for further consideration for leasing. Thus, 

a decision to lease the North Hilight Field Federal coal lands is in conformance with the current 

BLM Buffalo RMP and the Thunder Basin National Grassland LRMP. 

MITIGATION, COMPLIANCE, AND MONITORING 

If the North Hilight Field tract is leased, the lease will contain standard coal lease stipulations 

and also BLM Special Stipulations. BLM has applied special stipulations (Appendix 2) to avoid 

environmental damage or mitigate potential conflicts affiliated with cultural resources, 

paleontological resources, threatened and endangered species, multiple mineral development of 

oil and/or gas and coal resources, resource recovery and protection, and/or public land survey. 

Special coal lease stipulations were identified in Appendix D of the Final EIS. The final special 

stipulations are attached (Appendix 2) to this decision and will become part of the Federal coal 

lease records and pertain to all lands as described in the Federal coal lease tract. 

After Federal coal leases are issued, SMCRA gives the OSM authority to administer programs 

that regulate surface coal mining operations. The WDEQ regulates surface coal mining activities 

in Wyoming. If ALC is the successful, qualified high bidder for the Federal coal included in the 

North Hilight Field coal tract, a permit revision must then be approved by the WDEQ/LQD. An 

MLA mining plan revision must also be approved by the Assistant Secretary of the Interior 

before the coal in the tract could be mined. The existing mitigation measures specific to the 

currently approved mine plan for the adjacent mine would then be revised to include the new 

mitigation measures specific to the North Hilight Field tract. The mining permit would be 

amended to include the new mitigation requirements. 

19 
 

 

 

 

If the successful bidder on the North Hilight Field coal lease sale does not currently operate a 

mine that is adjacent to WYW164812, then the bidder would likely propose to construct a new 

mine in order to recover these Federal coal reserves. Because this would be a new mine start, the 

proponent would then submit a new permit application package to WDEQ/LQD for approval. A 

new MLA mining plan would also need to be submitted and approved by the Assistant Secretary 

of the Interior before the tract could be mined. The approved permit would include mitigation 

measures and monitoring plans specific to mining the newly leased tract. 

Prior to mining a coal lease area, the lease must be permitted for mining by OSM and WDEQ. If 

a lease is permitted for mining, additional conditions and stipulations may be assigned by OSM 

and WDEQ. Please see Section 1.3 of the Final EIS for additional information regarding 

regulatory authority and responsibility in relation to coal mining in Wyoming. 

To ensure that the revised plan is in compliance with the leasing stipulations, BLM has a 

responsibility to review the R2P2 prior to approval of the mining plan. Before any mining 

operations can begin on the North Hilight Field tract (WYW164812), the appropriate R2P2 must 

be approved by the BLM, a permit or permit revision must be approved by WDEQ/LQD, and an 

MLA mining plan or plan revision must be approved by the Assistant Secretary of the Interior. 

20 


 

 

Appendix 1. Figures 1, 2, and 3 

Appendix 2. BLM Special Coal Lease Stipulations (WYW164812), Notice for Lands of the 

National Forest System under Jurisdiction of the Department of Agriculture 

(WYW164812), and BLM Coal Lease Form 3400-12 

Appendix 3. U.S. Fish and Wildlife Service Concurrence Letter 

Appendix 4. Appeal Procedures 

23 
APPENDIX 1 
 

FIGURES 
Figure 1. General Location Map with Federal Coal Leases and LBA Tracts 
Figure 2. North Hilight Field LBA Tract Alternatives 
Figure 3. North Hilight Field Tract Selected Configuration 
 

 

APPENDIX 2
 

BLM SPECIAL COAL LEASE STIPULATIONS,
 

NOTICE FOR LANDS OF THE
 

NATIONAL FOREST SYSTEM UNDER JURISDICTION 

OF THE DEPARTMENT OF AGRICULTURE,
 

AND BLM COAL LEASE FORM 3400-12
 
 

 

 

 

 

 

SPECIAL STIPULATIONS FOR THE
 

NORTH HILIGHT FIELD LBA COAL TRACT:
 

WYW164812 

In addition to observing the general obligations and standards of performance set out in the 

current regulations, the lessee shall comply with and be bound by the following special 

stipulations. 

These stipulations are also imposed upon the lessee's agents and employees. The failure or 

refusal of any of these persons to comply with these stipulations shall be deemed a failure of the 

lessee to comply with the terms of the lease. The lessee shall require his agents, contractors, and 

subcontractors involved in activities concerning this lease to include these stipulations in the 

contracts between and among them. These stipulations may be revised or amended, in writing, 

by the mutual consent of the lessor and the lessee at any time to adjust to changed conditions or 

to correct an oversight. 

(a) CULTURAL RESOURCES 

(1) Before undertaking any activities that may disturb the surface of the leased lands, the 

lessee shall conduct a cultural resource intensive field inventory in a manner specified by the 

Authorized Officer of the BLM or of the surface managing agency, if different, on portions 

of the mine plan area and adjacent areas, or exploration plan area, that may be adversely 

affected by lease-related activities and which were not previously inventoried at such a level 

of intensity. The inventory shall be conducted by a qualified professional cultural resource 

specialist (i.e., archeologist, historian, historical architect, as appropriate), approved by the 

Authorized Officer of the surface managing agency (BLM, if the surface is privately owned), 

and a report of the inventory and recommendations for protecting any cultural resources 

identified shall be submitted to the Regional Director of the Western Region of the Office of 

Surface Mining (the Western Regional Director), the Authorized Officer of the BLM, if 

activities are associated with coal exploration outside an approved mining permit area 

(hereinafter called Authorized Officer), and the Authorized Officer of the surface managing 

agency, if different. The lessee shall undertake measures, in accordance with instructions 

from the Western Regional Director, or Authorized Officer, to protect cultural resources on 

the leased lands. The lessee shall not commence the surface disturbing activities until 

permission to proceed is given by the Western Regional Director or Authorized Officer. 

2) Any existing Class III inventory report covering the lease area that has not received 

federal agency review must be reviewed and accepted by the agency, site NRHP eligibility 

determinations made, and consultation with the State Historic Preservation Officer completed 

before any surface disturbing activities take place. 

(3) The lessee shall protect all cultural resource properties that have been determined eligible 

or unevaluated to the National Register of Historic Places within the lease area from leaserelated activities until the cultural resource mitigation measures or site evaluations can be 

implemented as part of an approved mining and reclamation or exploration plan unless 

modified by mutual agreement in consultation with the State Historic Preservation Officer. 

2 
 

 

 

 

 

 

 

 

(4) The cost of conducting the inventory, preparing reports, and carrying out mitigation 

measures shall be borne by the lessee. 

(5) If cultural resources are discovered during operations under this lease, the lessee shall 

immediately bring them to the attention of the Western Regional Director or Authorized 

Officer, or the Authorized Officer of the surface managing agency if the Western Regional 

Director is not available. The lessee shall not disturb such resources except as may be 

subsequently authorized by the Western Regional Director or Authorized Officer. Within 

two (2) working days of notification, the Western Regional Director or Authorized Officer 

will evaluate or have evaluated any cultural resources discovered and will determine if any 

action may be required to protect or preserve such discoveries. The cost of data recovery for 

cultural resources discovered during lease operations shall be borne by the lessee unless 

otherwise specified by the Authorized Officer of the BLM or of the surface managing 

agency, if different. 

(6) All cultural resources shall remain under the jurisdiction of the United States until 

ownership is determined under applicable law. 

(b)	 PALEONTOLOGICAL RESOURCES 

If paleontological resources, either large and conspicuous, and/or of significant scientific 

value, are discovered during mining operations, the find will be reported to the Authorized 

Officer immediately. Mining operations will be suspended within 250 feet of said find. An 

evaluation of the paleontological discovery will be made by a BLM-approved professional 

paleontologist within five (5) working days, weather permitting, to determine the appropriate 

action(s) to prevent the potential loss of any significant paleontological value. Operations 

within 250 feet of such discovery will not be resumed until written authorization to proceed 

is issued by the Authorized Officer. The lessee will bear the cost of any required 

paleontological appraisals, surface collection of fossils, or salvage of any large conspicuous 

fossils of significant scientific interest discovered during the operations. 

(c)	 THREATENED, ENDANGERED, CANDIDATE, OR OTHER SPECIAL STATUS 

PLANT AND ANIMAL SPECIES 

(1) The lease area may now or hereafter contain plants, animals, or their habitats determined 

to be threatened or endangered under the Endangered Species Act of 1973, as amended, 16 

U.S.C. 1531 et seq., or that have other special status. The Authorized Officer may 

recommend modifications to exploration and development proposals to further conservation 

and management objectives or to avoid activity that will contribute to a need to list such 

species or their habitat or to comply with any biological opinion issued by the U.S. Fish and 

Wildlife Service for the Proposed Action. The Authorized Officer will not approve any 

ground disturbing activity that may affect any such species or critical habitat until it 

completes its obligations under applicable requirements of the Endangered Species Act. The 

Authorized Officer may require modifications to, or disapprove a proposed activity that is 

likely to result in jeopardy to the continued existence of a proposed or listed threatened or 

3 
 

 

 

 

 

 

endangered species, or result in the destruction or adverse modification of designated or 

proposed critical habitat. 

(2) The lessee shall comply with instructions from the Authorized Officer of the surface 

managing agency (BLM, if the surface is private) for ground disturbing activities associated 

with coal exploration on federal coal leases prior to approval of a mining and reclamation 

permit or outside an approved mining and reclamation permit area. The lessee shall comply 

with instructions from the Authorized Officer of the Office of Surface Mining Reclamation 

and Enforcement, or his designated representative, for all ground disturbing activities taking 

place within an approved mining and reclamation permit area or associated with such a 

permit. 

(3) Any potential habitat that has not already been surveyed for Ute ladies’-tresses within the 

project area shall be identified and surveyed prior to surface mining activities. 

(d) MULTIPLE MINERAL DEVELOPMENT 

Operations will not be approved which, in the opinion of the Authorized Officer, would 

unreasonably interfere with the orderly development and/or production from a valid 

existing mineral lease issued prior to this one for the same lands. 

(e) OIL AND GAS/COAL RESOURCES 

The BLM realizes that coal mining operations conducted on Federal coal leases issued 

within producing oil and gas fields may interfere with the economic recovery of oil and 

gas, just as Federal oil and gas leases issued in a Federal coal lease area may inhibit coal 

recovery. BLM retains the authority to alter and/or modify the resource recovery and 

protection plans for coal operations and/or oil and gas operations on those lands covered by 

Federal mineral leases so as to obtain maximum resource recovery. 

(f) RESOURCE RECOVERY AND PROTECTION 

Notwithstanding the approval of a resource recovery and protection plan (R2P2) by the 

BLM, the lessor reserves the right to seek damages against the operator/lessee in the event (i) 

the operator/lessee fails to achieve maximum economic recovery (MER) (as defined at 43 

CFR 3480.0-5(21)) of the recoverable coal reserves or (ii) the operator/lessee is determined 

to have caused a wasting of recoverable coal reserves. Damages shall be measured on the 

basis of the royalty that would have been payable on the wasted or unrecovered coal. 

The parties recognize that under an approved R2P2, conditions may require a modification 

by the operator/lessee of that plan. In the event a coal bed or portion thereof is not to be 

mined or is rendered unmineable by the operation, the operator/lessee shall submit 

appropriate justification to obtain approval by the Authorized Officer to leave such reserves 

unmined. Upon approval by the Authorized Officer, such coal beds or portions thereof shall 

not be subject to damages as described above. Further, nothing in this section shall prevent 

the operator/lessee from exercising its right to relinquish all or a portion of the lease as 

authorized by statute and regulation. 

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In the event the Authorized Officer determines that the R2P2, as approved, will not attain 

MER as the result of changed conditions, the Authorized Officer will give proper notice to 

the operator/lessee as required under applicable regulations. The Authorized Officer will 

order a modification if necessary, identifying additional reserves to be mined in order to 

attain MER. Upon a final administrative or judicial ruling upholding such an ordered 

modification, any reserves left unmined (wasted) under that plan will be subject to damages 

as described in the first paragraph under this section. 

Subject to the right to appeal hereinafter set forth, payment of the value of the royalty on 

such unmined recoverable coal reserves shall become due and payable upon determination by 

the Authorized Officer that the coal reserves have been rendered unmineable or at such time 

that the operator/lessee has demonstrated an unwillingness to extract the coal. 

The BLM may enforce this provision either by issuing a written decision requiring payment 

of the Office of Natural Resources Revenue (formerly known as Mineral Management 

Service) demand for such royalties, or by issuing a notice of non-compliance. A decision or 

notice of non-compliance issued by the lessor that payment is due under this stipulation is 

appealable as allowed by law. 

(g) PUBLIC LAND SURVEY PROTECTION 

The lessee will protect all survey monuments, witness corners, reference monuments, and 

bearing trees against destruction, obliteration, or damage during operations on the lease 

areas. If any monuments, corners or accessories are destroyed, obliterated, or damaged by 

this operation, the lessee will hire an appropriate county surveyor or registered land 

surveyor to reestablish or restore the monuments, corners, or accessories at the same 

location, using surveying procedures in accordance with the "Manual of Surveying 

Instructions for the Survey of the Public Lands of the United States." The survey will be 

recorded in the appropriate county records, with a copy sent to the Authorized Officer. 

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ADDITIONAL SPECIAL STIPULATIONS FOR THE
 

NORTH HILIGHT FIELD COAL TRACT (WYW164812)
 

(h) PUBLIC ROAD RIGHT-OF-WAY AND BUFFER ZONE 

No mining activity of any kind may be conducted within the Shroyer Road (Campbell 

County Road 116), Hilight Road (Campbell County Road 52), Small Road (Campbell 

County Road 89), or Jacobs Road rights-of-way and associated 100-foot buffer zones while 

these public roads remain in their recent (2009) locations. The lessee shall recover all legally 

and economically recoverable coal from all leased lands not within the foregoing rights-ofway and associated buffer zones. If permits are obtained to relocate these roads and are 

approved by the appropriate authority, the lessee shall recover all legally and economically 

recoverable coal from all leased lands within the foregoing rights-of-way and associated 

buffer zones. The lessee shall pay all royalties on any legally and economically recoverable 

coal which it fails to mine without the written permission of the Authorized Officer. 

(i) RAILROAD RIGHT-OF-WAY AND BUFFER ZONE 

No mining activity of any kind may be conducted within the Burlington Northern Santa Fe & 

Union Pacific railroad right-of-way and associated 100-foot buffer zone. The lessee shall 

recover all legally and economically recoverable coal from all leased lands not within the 

foregoing right-of-way. The lessee shall pay all royalties on any legally and economically 

recoverable coal which it fails to mine without the written permission of the Authorized 

Officer. 

NOTICE FOR LANDS OF THE NATIONAL FOREST SYSTEM 

UNDER JURISDICTION OF DEPARTMENT OF AGRICULTURE 

R2-FS-2820-13 (92) Serial No. WYW164812 

The permittee/lessee must comply with all the rules and regulations of the Secretary of 

Agriculture set forth at Title 36, Chapter II, of the Code of Federal Regulations governing the use 

and management of the National Forest System (NFS) when not inconsistent with the rights 

granted by the Secretary of Interior in the permit. The Secretary of Agriculture's rules and 

regulations must be complied with for (1) all use and occupancy of the NFS prior to approval of 

an exploration plan by the Secretary of the Interior, (2) uses of all existing improvements, such 

as forest development roads, within and outside the area permitted by the Secretary of the 

Interior, and (3) use and occupancy of the NFS not authorized by an exploration plan approved 

by the Secretary of the Interior. 

All matters related to this stipulation are to be addressed to: 

Forest Supervisor 

Medicine Bow-Routt National Forests & Thunder Basin National Grassland 

2468 Jackson Street 

Laramie, WY 82070 

307-745-2300 

who is the authorized representative of the Secretary of Agriculture. 

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_____________________________________ 

NOTICE 

CULTURAL AND PALEONTOLOGICAL RESOURCES - The FS is responsible for assuring 

that the leased lands are examined to determine if cultural resources are present and to specify 

mitigation measures. Prior to undertaking any surface-disturbing activities on the lands covered 

by this lease, the lessee or operator, unless notified to the contrary by the FS, shall: 

1.	 Contact the FS to determine if a site specific cultural resource inventory is required. If a 

survey is required, then: 

2. Engage the services of a cultural resource specialist acceptable to the FS to conduct a 

cultural resource inventory of the area of proposed surface disturbance. The operator may 

elect to inventory an area larger than the area of proposed disturbance to cover possible 

site relocation which may result from environmental or other considerations. An 

acceptable inventory report is to be submitted to the FS for review and approval at the 

time a surface disturbing plan of operation is submitted. 

3.	 Implement mitigation measures required by the FS and BLM to preserve or avoid 

destruction of cultural resource values. Mitigation may include relocation of proposed 

facilities, testing, salvage, and recordation or other protective measures. All costs of the 

inventory and mitigation will be borne by the lessee or operator, and all data and 

materials salvaged will remain under the jurisdiction of the U.S. Government as 

appropriate. 

The lessee or operator shall immediately bring to the attention of the FS and BLM any cultural or 

paleontological resources or any other objects of scientific interest discovered as a result of 

surface operations under this lease, and shall leave such discoveries intact until directed to 

proceed by FS and BLM. 

ENDANGERED OR THREATENED SPECIES - The FS is responsible for assuring that the 

leased land is examined prior to undertaking any surface-disturbing activities to determine 

effects upon any plant or animal species listed or proposed for listing as endangered or 

threatened, or their habitats. The findings of this examination may result in some restrictions to 

the operator's plans or even disallow use and occupancy that would be in violation of the 

Endangered Species Act of 1973 by detrimentally affecting endangered or threatened species or 

their habitats. 

The lessee/operator may, unless notified by the FS that the examination is not necessary, conduct 

the examination on the leased lands at his discretion and cost. This examination must be done by 

or under the supervision of a qualified resource specialist approved by the FS. An acceptable 

report must be provided to the FS identifying the anticipated effects of a proposed action on 

endangered or threatened species or their habitats. 

Signature of Licensee/Permittee/Lessee 

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APPENDIX 3
 

U.S. FISH AND WILDLIFE SERVICE
 

CONCURRENCE LETTER
 



APPENDIX 4
 

APPEAL PROCEDURES