SPRINGFIELD, Va., Oct. 8 /PRNewswire/ -- One parcel of Federal land
brought in a competitive bid of $111.00 per acre for a total bid of
$320,568.00 on about 2,900 acres in Alabama. The Coal Lease Sale was
conducted by the U.S. Department of the Interior's Bureau of Land Management
(BLM) Eastern States on Thursday, September 30, 2004 in Springfield, VA.
The winning bid was made by Pittsburg & Midway Coal Mining, Inc. The sale
attracted only one bidder, the company which submitted the application to
lease. The tract is isolated within private coal holdings controlled by the
applicant. Any other bidder would have to negotiate with the applicant to
recover these reserves.
The presale estimate of value considered by the sales panel is based on
comparable sales and the income approach to value and estimated the fair
market value between $45.57 to $117.17 per acre depending on the mining
assumptions.
Coal leasing is in accordance with 43 CFR 3420 and 3430. Applications are
filed with the Bureau of Land Management (BLM) Eastern States office in
Springfield, VA for adjudication prior to forwarding to the Jackson District.
Income from coal leasing occurs from three primary methods, royalty for
produced coal, bonus bids at the time of lease sale, and rental prior to
production. Generally, royalty from Federal coal mined underground is 8
percent of the gross sales price and 12.5 percent for surface operations.
Royalty income to the Federal Government from Federal coal in Alabama and
Kentucky is about $765,000 per year, of which approximately 50 percent is
distributed to the states.
The date for the next Coal Lease sale has yet to be determined. Visit our
web site at http://www.es.blm.gov for more information about coal lease sales
and other BLM programs.
SOURCE U.S. Department of the Interior, Bureau of Land
Management, Eastern
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Related links:
http://www.es.blm.gov
CONTACT:
Robert Patterson of U.S. Department of the
Interior, Bureau of Land Management, Eastern States,
+1-703-440-1531
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