BLM issues lease for Dunn Ranch Coal Tract
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Lakewood, Colo. – Today, the Bureau of Land Management (BLM) issued a lease for the 2,462.07-acre Dunn Ranch Coal Tract in LaPlata County, Colorado that is estimated to contain approximately 9.54 million tons of recoverable coal. The lease was issued to GCC Energy, LLC., out of Tijeras, New Mexico and is effective June 1, 2020.
GCC Energy successfully bid for the tract with $3,434,400, or $1,394.92 per acre. With the lease, the company will pay an annual rental of $3 per acre, along with a royalty payment of 8 percent of the value of coal produced by underground methods.
“The coal reserves in this tract are important for infrastructure projects and will generate millions of dollars for Colorado’s economy,” said BLM Colorado State Director Jamie Connell. “BLM supports working landscapes across the West and issuing this lease is a fine example of that.”
The tract is located approximately 20 miles west of Durango, Colorado and adjacent to the existing King II coal mine. It was offered for sale in response to a Lease-by-Application submitted by GCC Energy. The BLM analyzed the potential impacts of leasing this coal resource in an Environmental Assessment and signed a Finding of No Significant Impact and a Decision Record on Oct. 11, 2019. The environmental analysis included multiple opportunities for public involvement.
As consistent with Executive Order 13783 of March 28, 2017, Promoting Energy Independence and Economic Growth; and Secretarial Order 3349, American Energy Independence, the BLM plays an important role in the responsible development of oil and gas, coal, critical minerals, and renewable sources – all of which can occur on public lands. Energy produced in the United States is beneficial to national security, national and local economies, and job creation.
There are 49 coal leases covering 80,675 acres in Colorado, with six producing coal mines (two are surface mines, the remaining four are subsurface mines) totaling 60,000 acres. Mining coal from BLM Colorado lands and minerals generated $784.4 million in total economic output and supported over 2,000 jobs statewide in fiscal year 2018. Coal mines in Colorado generated $2 million in Federal royalties in 2018. This revenue was split with the State of Colorado.
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The BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska, on behalf of the American people. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. Our mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations.