[Federal Register Volume 64, Number 164 (Wednesday, August 25, 1999)]
[Notices]
[Pages 46405-46406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21641]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[WY-920-09-1320-01; WYW139975]
Notice of Competitive Coal Lease Sale; Elk Mountain/Saddleback
Hills Tract; WY
AGENCY: Bureau of Land Management, Interior.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Notice is hereby given that certain coal resources in the Elk
Mountain/Saddleback Hills Tract, described below, in Carbon 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 10 a.m., on Wednesday, September
29, 1999. Sealed bids must be submitted on or before 4 p.m., on
Tuesday, September 28, 1999.
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
[[Page 46406]]
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 Ark Land Company, a
subsidiary of Arch Coal, Inc. The coal resources to be offered consist
of all reserves recoverable by a combination of conventional surface,
highwall, and underground mining techniques in the following-described
lands located in the east central portion of Carbon County
approximately 10 miles southeast of Hanna, Wyoming, and about 3 miles
north-northeast of Elk Mountain just north of the Medicine Bow River:
T. 20 N., R. 79 W., 6th P.M., Wyoming
Sec. 6: Lot 6;
T. 21 N., R. 79 W., 6th P.M., Wyoming
Sec. 20: Lots 1-10, NWNW, SWSW;
Sec. 30: Lots 5-20;
Sec. 32: Lots 2-5;
T. 20 N., R. 80 W., 6th P.M., Wyoming
Sec. 4: Lots 5-7;
Sec. 6: Lots 7, 8, 13-16;
Sec. 12: Lots 1 (N2), 2 (N2 & SW), 3;
T. 21 N., R. 80 W., 6th P.M., Wyoming
Sec. 22: Lots 1-16;
Sec. 24: Lots 1-16;
Sec. 26: Lots 1-16;
Sec. 28: Lots 1-12;
Sec. 32: Lots 1-6, 9-11;
Sec. 34: Lots 1-16.
Containing 5,205.565 acres.
There are no coal mining operations in the immediate area of the
lease tract that would be able to include the LBA into an existing
operation; therefore, development of the coal reserve will require a
new mine start. There are no oil and gas wells or Federal oil and gas
leases on the LBA tract.
The lease tract contains coal reserves in several seams but only
the Johnson Group is considered to be economically recoverable. For
mining purposes, the Johnson Group makes up a single seam on the lease
tract. This seam averages just under 20 feet thick for the offered
Federal coal but varies from about 8 feet thick at the outcrop in the
southeast to about 28 feet thick underground in the northern portion of
the proposed mine area. No significant splits or riders in this seam
are apparent from current drilling information.
The overburden above the Johnson seam increases rapidly from the
coal outcrop of the proposed mine area. The average stripping ratio for
the LBA is 7.69:1 BCY/ton using a cut-off stripping ratio of 12:1 to
define coal reserves recoverable by conventional surface mining
techniques.
The LBA tract contains an estimated 65.78 million tons of
recoverable coal using a combination of conventional surface, highwall,
and underground mining techniques. The overall average quality for the
LBA coal is 11,262 BTU/lb, 8.8 percent moisture, 9.2 percent ash, and
0.54 percent sulfur. These quality averages place the LBA coal reserves
at or above the coal quality for the nearby Hanna Basin mines.
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
Tuesday, September 28, 1999, 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 per acre, or fraction thereof, and 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, WYW139975,
are available for inspection at the Wyoming State Office.
August 16, 1999.
Michael Madrid,
Acting Deputy State Director, Minerals/Lands Authorizations.
[FR Doc. 99-21641 Filed 8-24-99; 8:45 am]
BILLING CODE 4310-22-P
