[Federal Register Volume 63, Number 73 (Thursday, April 16, 1998)]
[Notices]
[Pages 18932-18933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10127]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[MT-921-08-1320-01; MTM 80697]


Coal Lease Offering

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of Coal Lease Offering By Sealed Bid MTM 80697--Western 
Energy Company.

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SUMMARY: Notice is hereby given that the coal resources in the lands 
described below in Rosebud County, Montana, will be offered for 
competitive lease by sealed bid. This offering is being made as a 
result of an application filed by Western Energy Company, in accordance 
with the provisions of the Mineral Leasing Act of 1920 (41 Stat. 437; 
30 U.S.C. 181-287), as amended.
    An Environmental Assessment of the proposed coal development and 
related requirements for consultation, public involvement, and hearing 
have been completed in accordance with 43 CFR 3425. Concerns and issues 
expressed by the public during the public scoping process centered on 
social, economic, and cultural impacts to the Northern Cheyenne and 
Crow Tribes, hydrologic impacts to the area, and the need to do an 
Environmental Impact Statement as the appropriate level of 
environmental documentation for the development of the coal resources. 
Three alternatives (Preferred, No Action, and Cultural Resource 
Avoidance) were developed to analyze impacts and to address issues 
relating to the proposed action. The Preferred Alternative, including 
special stipulations and mitigation measures, was chosen because it 
will maximize the beneficial use of the subject coal resource and will 
mitigate impacts to one historic site and two sites which have high 
values as traditional cultural properties.
    The tract will be leased to the qualified bidder of the highest 
cash amount provided that the high bid meets the fair market value of 
the coal resource. The minimum bid for the tract is $100 per acre, or 
fraction thereof. No bid that is less than $100 per acre, or fraction 
thereof, will be considered. The minimum bid is not intended to 
represent fair market value. The fair market value will be determined 
by the authorized officer after the sale.

Coal Offered

    The coal resource to be offered consists of all recoverable 
reserves in the following-described lands located approximately 10 
miles west of the town of Colstrip, Montana:

T. 1 N., R. 39 E., P.M.M.
    Sec. 2: S\1/2\NW\1/4\, N\1/2\NE\1/4\SE\1/4\
T. 1 N., R. 40 E., P.M.M.
    Sec. 6: Lots 1, 2, 3, 4, S\1/2\N\1/2\, S\1/2\
    Sec. 8: E\1/2\, N\1/2\NW\1/4\

[[Page 18933]]

    Sec. 14: S\1/2\SW\1/4\, SE\1/4\
T. 2 N., R. 40 E., P.M.M.
    Sec. 32: All.

Containing 2,061 acres, Rosebud County, Montana.

    The Rosebud seam, averaging 22.3 feet in thickness, is the only 
economically minable coal seam within the tract. The tract contains an 
estimated 35.6 million tons of recoverable reserves. Coal quality, as 
received, averages 8,360 BTU/lb., 25.52 percent moisture, 10.03 percent 
ash, and 0.97 percent sulfur. This coal bed is being mined in adjoining 
tracts by Western Energy Company.

Rental and Royalty

    A lease issued as a result of this offering will provide for 
payment of an annual rental of $3 per acre, or fraction thereof, and a 
royalty payable to the United States of 12.5 percent of the value of 
coal mined by surface methods and 8.0 percent of the value of the coal 
mined by underground methods. The value of the coal shall be determined 
in accordance with 43 CFR 3485.2.

DATES: Lease Sale--The lease sale will be held at 10 a.m., Thursday, 
May 7, 1998, in the Conference Room on the Sixth Floor of the Granite 
Tower Building, Bureau of Land Management, 222 North 32nd Street, 
Billings, Montana 59107.
    Bids--Sealed bids must be submitted on or before 9 a.m., Thursday, 
May 7, 1998, to the cashier, Bureau of Land Management, Montana State 
Office, Second Floor, Granite Tower Building, 222 North 32nd Street, 
P.O. Box 36800, Billings, Montana 59107-6800. 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 that time will not be considered.

SUPPLEMENTARY INFORMATION: Bidding instructions for the offered tract 
are included in the Detailed Statement of Lease Sale. Copies of the 
statement and the proposed coal lease are available at the Montana 
State Office. Casefile documents are also available for public 
inspection at the Montana State Office.

    Dated: April 3, 1998.
Larry E. Hamilton,
State Director.
[FR Doc. 98-10127 Filed 4-15-98; 8:45 am]
BILLING CODE 4310-DN-P