The agency has set the sale for the South Porcupine coal tract for February 29 at 10am local time at its office in Cheyenne.
South Porcupine encompasses 3243 acres and contains an estimated 402Mt of mineable coal. It is adjacent to Peabody Energy’s North Antelope Rochelle operation.
The highest bidder in the sealed-bid auction will be offered the lease, though the BLM said the amount must meet or exceed the tract’s fair market value estimate, or a minimum of $US100 per acre.
Bidders have until 4pm local time on February 28 to send information via certified mail or hand delivery.
Once a lease is issued, the BLM will receive an annual rental payment of $3 per acre, as well as a 12.5% royalty payment on the produced coal’s value.
According to agency data, coal royalties of $590 million were collected last fiscal year and split nearly equally with the state of Wyoming.
