BLM Rejects Bid for Coal Lease Tract

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BLM Rejects Bid for Coal Lease Tract

For the second time in as many months, a federal coal auction resulted in no sale, as the Bureau of Land Management Wednesday rejected Kiewit Mining Company's $35 million bid for the Hay Creek II coal tract. Kiewit's bid was the lone bid, and the lowest offer for Powder River Basin coal in 15 years. The BLM released a statement saying that the bid was rejected because it did not meet fair market value.

The 1,254 acre Hay Creek II coal tract contains an estimated 167 million tons of mineable coal. Kiewit Mining Company operates the Buckskin mine in Campbell County and bid $0.21 per minable ton. In late August, Cloud Peak Energy declined to bid on the Maysdorf II tract, citing current market conditions and the uncertainty caused by the current political and regulatory environment towards coal and coal powered generation.

First Northern Bank
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