SALT LAKE CITY — The Bureau of Land Management held a competitive coal lease sale by sealed bid for the Greens Hollow Coal Tract — a 6,175.39 acre area in Sanpete and Sevier counties that is estimated to contain approximately 55.7 million tons of recoverable coal and is adjacent to the Sufco mine, which contains other federal coal leases.
The BLM received one bid from Canyon Fuels Company LLC, out of Grand Junction, Colorado, for $22.85 million, or $3,700.17 per acre. However, this result is considered preliminary and will not be confirmed until the BLM sale panel determines if the bid meets or exceeds the estimated fair market value for the coal resource in the Greens Hollow Tract. The BLM will not accept any bid that is less than estimated fair market value; a date has not been set for the sale panel meeting; however, it will be conducted as soon as possible.
If the BLM sale panel determines that a high bid meets or exceeds fair market value, the BLM will only issue the lease after the Justice Department has been allowed 30 days to conduct an antitrust review of the bidder’s coal holdings. When a coal lease is issued, an annual rental payment of $3 per acre is required, along with a royalty payment of 8 percent of the value of coal produced by underground mining methods. The Greens Hollow coal tract will be mined using underground methods.
For more information or to obtain further bidding instructions, contact Jeff McKenzie at telephone 801-539-4038. Persons who use a telecommunications device for the deaf may call the Federal Information Relay Service at 1-800-877-8339 to leave a message or question with McKenzie. The FIRS is available 24 hours a day, seven days a week. Replies are provided during normal business hours.
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