Federal Register, Volume 64 Issue 94 (Monday, May 17, 1999)

[Federal Register Volume 64, Number 94 (Monday, May 17, 1999)]
[Notices]
[Pages 26772-26773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12315]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management
[MT-921-09-1320-01; 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

[[Page 26773]]

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 part 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 (EIS) 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:

T. 1 N., R. 39 E., P.M.M.
    Sec. 2: N\1/2\S\1/2\NW\1/4\
T. 1 N., R. 40 E., P.M.M.
    Sec. 6: Lots 1-4 S\1/2\N\1/2\, N\1/2\S\1/2\, N\1/2\SW\1/4\SE\1/
4\, SE\1/4\SE\1/4\
    Sec. 8: NE\1/4\NE\1/4\, N\1/2\NW\1/4\NE\1/4\, SE\1/4\NW\1/
4\NE\1/4\, N\1/2\N\1/2\NW\1/4\
    Sec. 14: S\1/2\SW\1/4\, N\1/2\NE\1/4\SE\1/4\, W\1/2\SE\1/4\
T. 2 N., R. 40 E., P.M.M.
    Sec. 32: NE\1/4\, E\1/2\NE\1/4\NW\1/4\, SW\1/4\NE\1/4\NW\1/4\, 
S\1/2\SW\1/4\NW\1/4\, SE\1/4\NW\1/4\, N\1/2\S\1/2\, SW\1/4\SW\1/4\, 
N\1/2\SE\1/4\SW\1/4\, N\1/2\SW\1/4\SE\1/4\

    Containing 1,401, 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 27.6 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 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., Wednesday, 
June 16, 1999, 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 Clearly Marked ``Sealed Bid for MTM 80697 Coal 
Sale--not to be opened before 10:00 a.m., Wednesday, June 16, 1999'' 
must be submitted on or before 9:00 a.m., Wednesday, June 16, 1999, to 
the cashier, Bureau of Land Management, Montana State Office, Second 
Floor, Granite Tower Building, 222 North 32nd Street, Post Office 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: May 11, 1999.
Randy D. Heuscher,
Chief, Branch of Solid Minerals.
[FR Doc. 99-12315 Filed 5-14-99; 8:45 am]
BILLING CODE 4310 DN-P