[Federal Register Volume 63, Number 97 (Wednesday, May 20, 1998)]
[Notices]
[Pages 27745-27746]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12953]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[WY-920-08-1320-01; WYW136142]


Competitive Coal Lease Sale; Powder River Tract; WY

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice.

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SUMMARY: Notice is hereby given that certain coal resources in the 
Powder River Tract, described below, in Campbell County, Wyoming, will 
be offered for competitive lease by sealed bid in accordance with the 
provisions of the Mineral Leasing Act of 1920, as amended (30 U.S.C. 
181 et seq.).

DATES: The lease sale will be held at 2 p.m., on Tuesday, June 30, 
1998. Sealed bids must be submitted on or before 4 p.m., on Monday, 
June 29, 1998.

ADDRESSES: The lease sale will be held in the First Floor Conference 
Room (Room 107) of the Wyoming State Office, 5353 Yellowstone Road, 
P.O. Box 1828, Cheyenne, Wyoming 82003. Sealed bids must be submitted 
to the Cashier, Wyoming State Office, at the address given above.

FOR FURTHER INFORMATION CONTACT: Mavis Love, Land Law Examiner, or 
Melvin Schlagel, Coal Coordinator, at 307-775-6258 and 307-775-6257, 
respectively.

SUPPLEMENTARY INFORMATION: This coal lease sale is being held in 
response to a lease by application (LBA) filed by Powder River Coal 
Company of Gillette, Wyoming. The coal resources to be offered consist 
of all reserves recoverable by surface mining methods in the following-
described lands located in Campbell County approximately 48 miles 
south-southeast of Gillette, Wyoming, and about 7 miles east of State 
Highway 59 just south of Piney Canyon Road:

T. 41 N., R. 70 W., 6th P.M., Wyoming
    Sec. 6: Lots 10 thru 13, 18 thru 21;
    Sec. 7: Lots 6, 11, 14, and 19;
    Sec. 18: Lots 5, 12, 13, and 20;
    Sec. 19: Lots 5, 12 (N2);
    Sec. 20: Lots 1 thru 4, 5 (N2), 6 (N2), 7 (N2), 8 (N2);
    Sec. 21: Lots 4, 5 (N2);
T. 42 N., R. 70 W., 6th P.M., Wyoming
    Sec. 31: Lots 5 thru 20;
    Sec. 32: Lots 1 thru 16;
    Sec. 33: Lots 1 thru 16;
    Sec. 34: Lots 1 thru 16;
    Sec. 35: Lots 1 thru 16.

Containing 4224.225 acres.

    The tract is adjacent to the North Antelope and Rochelle mines 
operated by Powder River Coal Company. It contains surface minable coal 
reserves

[[Page 27746]]

in the Wyodak seam currently being recovered in the adjacent, existing 
mines. The Wyodak seam averages about 74 feet thick and is the primary 
recoverable coal seam on the tract. The seam splits roughly in two in 
the far southwestern portion of the LBA and a thin split off the bottom 
occurs in the eastern portion. There are no coal outcrops on the tract.
    The overburden above the main seam ranges from about 200-300 feet 
thick on the LBA. The total in-place stripping ratio (BCY/Ton) of the 
coal is 3.0:1.
    The tract contains an estimated 532 million tons of minable coal. 
This estimate of minable reserves includes the two splits mentioned 
above but does not include any tonnage from localized seams or splits 
containing less than 5 feet of coal.
    The coal is ranked as subbituminous C. The overall average quality 
is 8742 Btu/lb, 27.93% moisture, 4.21% ash, 0.18% sulfur, and 1.84% 
sodium in ash. These quality averages place the coal reserves near the 
high end of the range of coal quality currently being mined in the 
southern Powder River Basin south of Wright, Wyoming.
    There are several oil and gas wells on the tract. The estimate of 
the bonus value of the coal lease will include consideration of the 
future oil and gas 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. Other costs considered will include moving or removing 
roads, pipelines, and surface facilities.
    The tract in this lease offering contains split estate lands. There 
are qualified surface owners as defined in the regulations at 43 CFR 
3400.0-5. Consent granted by the qualified surface owners has been 
filed with and verified by the Bureau of Land Management. The lands and 
purchase price of the consent are shown below:

T. 41 N., R. 70 W., 6th P.M., Wyoming
    Sec. 19: Lots 5, 12 (N2).

Containing 60.115 acres.

    Purchase Price: $10.00 and an overriding royalty of three percent 
(3%) of the gross realization of all coal mined and sold from the 
subject property.
    The tract will be leased to the qualified bidder of the highest 
cash amount provided that the high bid equals 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 
Monday, June 29, 1998, 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.
    If identical high bids are received, the tying high bidders will be 
requested to submit follow-up sealed bids until a high bid is received. 
All tie-breaking sealed bids must be submitted within 15 minutes 
following the Sale Official's announcement at the sale that identical 
high bids have been received.
    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 augur 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 Wyoming 
State Office at the addresses above. Case file documents, WYW136142, 
are available for inspection at the Wyoming State Office.
Michael Madrid,
Acting Deputy State Director.
[FR Doc. 98-12953 Filed 5-19-98; 8:45 am]
BILLING CODE 4310-22-P