01-29026. Notice of Competitive Coal Lease Offering by Sealed Bid-NDM 90783

AGENCY:

Bureau of Land Management, Montana State Office.

SUMMARY:

Notice is hereby given that the coal resources in the lands described below, in Mercer County North Dakota, will be offered for competitive lease by sealed bid. This offering is being made as a result of an application filed by The Coteau Properties Company, in accordance with the provisions of the Mineral Leasing Act of 1920, as amended (41 Stat. 437; 30 U.S.C. 181 et seq.)

The lease sale will be held at 11 a.m., Tuesday, December 11, 2001, in the Montana State Office 920 conference room, at the Bureau of Land Management, 5001 Southgate Drive, Billings, Montana 59101. Bids for the tract will be in the form of sealed bids. Sealed bids clearly marked “Sealed Bid for NDM 90783 Coal Sale—Not to be opened before 11 a.m., Tuesday, December 11, 2001”, must be submitted on or before 10 a.m. December 11, 2001, to the cashier, Bureau of Land Management, Montana State Office, 5001 Southgate Drive, Post Office Box 36800, Billings, Montana 59107-6800.

An Environmental Assessment of the proposed coal development and related requirements for consultation, public involvement, and hearings have been completed in accordance with 43 CFR 3425. The results of these activities were a finding of no significant environmental impact.

The coal resource to be offered consists of all recoverable reserves in the following-described lands:

T. 146 N., R. 88 W., 5th P.M.

Sec. 14: SW1/4SW1/4

Sec. 22: N1/2N1/2, SW1/4NE1/4, S1/2NW1/4 excluding a 4.59-acre tract described by metes and bounds and further described as: Beginning at a point on the west line of said Section 22, said point being 250.00 feet north of the southwest corner of the NW1/4 of Section 22; thence north along said west line of Section 22, 500.00 feet; thence east at right angles to the last described line, 400.00 feet; thence south parallel with said west line, 500.00 feet; thence west at right angles, 400.00 feet to the point of beginning.

SW1/4 excluding a 12.61-acre tract described by metes and bounds and further described as: Beginning at the southwest corner of the SW1/4 of said Section 22, 500.00 feet; thence north at right angles to said south line, 500.00 feet; thence northwesterly to a point on the west line of said Section 22, said point being 1,700.00 feet north of said southwest corner; thence southerly along said west line to the point of beginning.

NW1/4SE1/4

Containing 502.80-acres, Mercer County, North Dakota.

The tract in this lease offering contains split estate lands. Written consent is on file from all qualified surface owners as defined in the regulations at 43 CFR 3400.0-5.

SUPPLEMENTARY INFORMATION:

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 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 10 a.m., Tuesday, December 11, 2001, will not 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.

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.

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 coal mined by underground methods. The value of the coal shall 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 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 NDM 90783 is also available for public inspection at the Montana State Office.

FOR FURTHER INFORMATION CONTACT:

Connie Schaff, Land Law Examiner, or Rebecca Good, Coal Coordinator, at 406-896-5060 or 406-896-5080, respectively.

Dated: October 31, 2001.

Randy D. Heuscher,

Chief, Branch of Solid Minerals.