BLM Nov. 29, 2018, coal lease sale result
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FLOWOOD, Miss. – In keeping with the “America First Energy Plan,” the Bureau of Land Management’s Eastern States State Office held a competitive federal coal lease sale by sealed bid in its Southeastern States District Office on Nov. 29, 2018.
This sale was for a nearly 161-acre tract of federal minerals interest located on Glovers Bend Road in Jefferson County, Alabama, which is approximately five miles north of Mount Olive, Alabama. The offered federal tract is estimated to contain 469,000 tons of recoverable high-volatile bituminous coal. The federal tract was offered for sale in response to a Lease-by-Application submitted by Jasper, Alabama-based, Best Coal, Inc., and is adjacent to an existing coal mine with 300,000 tons of privately-owned coal.
The BLM received one bid from Best Coal, Inc., for $405,450, which is $2,518.32 per acre or $0.865 per recoverable ton. The BLM sale panel determined that the bid met or exceeded the estimated fair market value for the coal resource, but the BLM will wait 30 days to issue the lease pending a Department of Justice anti-trust 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 12.5 percent of the value of coal produced by surface mining methods.
The BLM analyzed the potential impacts of leasing this coal resource in an Environmental Assessment and signed a Finding of No Significant Impact on June 25, 2018, and a Decision Record on Aug. 30, 2018. The public was invited to participate in all aspects of this environmental analysis.
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.
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.