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According to the Associated Press, the bid, which equates to 30 cents per recoverable ton, gives the company five unleased coal parcels in Musselshell County next to its active Bull Mountain underground operation just south of Roundup.
The BLM rejected the producer’s initial $5.3 million bid last November, calling it “insufficient” and not representing fair market value for the 2680-acre property.
Signal Peak requested another auction and the federal agency agreed.
The company, which is jointly owned by Boich, FirstEnergy and the Gunvor Group, was the only bidder in both auctions.
“With this successful coal lease sale, Musselshell County, the Montana economy and all Americans benefit from the jobs and royalty payments generated,” BLM state director Jamie Connell told the AP.
The agency said the tract was key to the continued operations of Signal Peak’s 300-worker Bull Mountain, as it was within the complex’s permit boundary.
