Coal leases, exploration licenses, etc.: North Dakota,

[Federal Register: August 27, 1998 (Volume 63, Number 166)]

[Notices]

[Page 45854]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr27au98-117]

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[MT-921-08-1320-01; NDM 86601]

Coal Lease Offering

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of coal lease offering by sealed bid: NDM 86601--Knife River Corporation.

U.S. Department of the Interior, Bureau of Land Management, Montana State Office, Granite Tower Building, 222 North 32nd Street, P.O. Box 36800, Billings, Montana 59107-6800.

Notice is hereby given that the coal resources in the lands described below in Mercer County, North Dakota, will be offered for competitive lease by sealed bid. This offering is being made as a result of an application filedby Knife River Corporation, 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 3425. The results of these activities were a finding of no significant environmental impact.

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 2.5 miles south of the town of Beulah, North Dakota:

T. 143 N., R. 88 E., 5th P.M.,

Sec. 24: NW\1/4\NW\1/4\, S\1/2\NW\1/4\, SW\1/4\, S\1/2\SE\1/4\.

Containing 360 acres, Mercer County, North Dakota.

There are three principal minable coal seams in the tract. They are the School House, Upper Beulah-Zap, and Lower Beulah-Zap. The tract contains an estimated 6.21 million tons of recoverable reserves.

The School House seam averages 5.8 feet in thickness. Coal quality, as received, averages 6,643 BTU/lb., 36.66 percent moisture, 10.43 percent ash, and 1.24 percent sulfur.

The Upper Beulah-Zap seam averages 10.9 feet in thickness. Coal quality, as received, averages 6,776 BTU/lb., 38.52 percent moisture, 5.94 percent ash, and 0.49 percent sulfur.

The Lower Beulah-Zap seam averages 3.5 feet in thickness. Coal quality, as received, averages 6,717 BTU/lb., 38.27 percent moisture, 7.32 percent ash, and 0.76 percent sulfur.

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 the coal mined by surface methods and 8.0 percent of the value of the coal mined by underground methods. The value of the coal shall be determined in accordance with 43 CFR 3485.2.

Date: The lease sale will be held at 10 a.m., Wednesday, September 30, 1998, in Side B of the Conference Room on the Sixth Floor of the Granite Tower Building at the above address.

Sealed Bids: Sealed bids must be submitted on or before 9 a.m., Wednesday, September 30, 1998, to the cashier, Bureau of Land Management, Montana State Office, Second Floor, Granite Tower Building, 222 North 32nd Street, P.O. 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.

SUPPLEMENTAL 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: August 20, 1998. John E. Moorhouse, Acting State Director.

[FR Doc. 98-22974Filed8-26-98; 8:45 am]

BILLING CODE 4310-DN-P