(AP) - Federal land managers have rejected an application by a Colorado company to use bacteria to produce methane from northeast Wyoming coal beds.
The Gillette News-Record reported Thursday the Bureau of Land Management threatened to prosecute Luca Technologies Inc. for trespassing if it continued the work.
The company says it will comply but disagrees with the decision and may sue.
The BLM acted after Luca refused to pay an additional $40,000 for the cost of processing the application, on top of $40,000 it paid previously.
Luca says it refused the additional payment because it appeared the BLM would never approve the permit.
Luca says the BLM told the company it would require a well monitoring program that would cost up to $30 million, more than the value of the project.