CHEYENNE — The Bureau of Land Management (BLM) Wyoming State Office rejected a below-fair-market-value bid for the South Porcupine coal tract in northeastern Wyoming yesterday. The 3,243.03-acre tract contains an estimated 401.8 million tons of mineable coal.
BTU Western Resources Inc., a subsidiary of Peabody, submitted a bid for $361,647,000 — which was the largest overall bid for Wyoming coal made in the past seven years. However, the bid worked out to about 90 cents per ton, which is less than the last accepted bid of $1.35 per ton made last December.
Larry Claypool, deputy state director of Minerals and Lands, said, “BLM received one bid for the tract. After reviewing the bid, we determined that it could not be accepted because it did not meet the BLM’s estimated fair market value.”
The coal resource offered consists of all reserves recoverable by surface mining methods. The tract is located 2-5 miles south of State Highway 450 and east of the Burlington Northern/Union Pacific main line railroad.
The lease-by application tract is adjacent to federal leases to the east and south, as well as a State of Wyoming lease to the north, all controlled by the North Antelope Rochelle Mine.
It is also adjacent to federal leases to the west across the mainline railroad, which is part of Cloud Peak Energy Resources LLC's Antelope Mine. It is adjacent to additional unleased federal coal to the west.
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