PERMFILE135328

• Permit No: C1981016
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Doc Name: Coal Lease by Sealed Bid
• Section_Exhibit Name: APPENDIX V Section V.1
• Media Type: D
• Archive: No

UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEHEN7
• COLORADO STATE OFFICE
700 Colorado State Bank Building
Denver, Colorado 80202
DETAILED STATEMENT
TERMS OF LEASE OFFER AND OF COAL LEASE
TNAT MAY BE ISSUED AS A RESULT OF THIS OFFER
C-27103
At 2:00 p. m., August 7, 1979, an authorized officer of the Bureau of
Land Management, Colorado State Office, will offer certain coal resources
in the lands hereinafter described for competitive lease by sealed bid
of S25 per acre minimum to the qualified bidder of the highest cash
amount per acre ar fraction thereof in accordance with the provisions of
the Mineral Leasing Act of 1920 (41 Stat. 437), as amended (30 U.S.C.
Sec. 181 et se ) and the Department of Energy Organization Act of
August 4,-T97T~91 Stat. 565, 42 U.S.C. 7101).
COAL OFFERED: The coal resource to be offered is limited to the under-
ground reserves of the "E" seam in the following described lands located
approximately 12 miles northeast of Paonia, Colorado:
T. 13 S., R. 90 N., 6th P.F1.
Sec. 1: Lots 13, 14, 19, 20
Sec. 22: Lots 1, 2 and those Darts of Lot 5,
SNy,NE:, and SE;NI,a: lying north of
the North Fork of the Gunnison River
Containing 289.74 acres. Bonus
bid calculations will be based on
290.00 at res.
• There are approximately 900,000 tons of recoverable coal greater than
four feet thick in the "E" seam, which is the uppermost coal seam. It
is expected to average about 13,200 Btu per pound with 3.15; ash and
.59: sulfur.
RENTAL AND ROYALTY: If a lease is issued as a result of this offering,
it will provide for payment of an annual rental of 53.00 per acre or
fraction thereof and a royalty payable to the United States at a rate of
8.0% of the value of the coal mined by underground methods. The value
of the coal shall be determined in accordance with 30 CFR 211.63.
ADVANCE ROYALTY: Upon request by the lessee, the Mining Supervisor may
accept, for a total of not more than 10 years, the payment of advance
royalties in lieu of the condition of continued operation for any particular
year. Any payment of advance royalties in lieu of continued operation
shall be pursuant to an agreement, signed by the lessee and the Mining
Supervisor, which shall be made a part of this lease. The agreement
shall include a schedule of payments and shall be subject to the advance
royalty conditions set forth in the applicable regulations in 43 CFR
Part 3500. The advance royalty shall be based on a percent, as specified
in the lease, of the value of a minimum number of tons which shall be
determined an a schedule sufficient to exhaust the leased reserves in 40
years from the date of approval of the mining and reclamation plan.
PUBLIC COMMENTS: The public is invited to sutmit written comments con-
cerning fair market value of the offered coal reserves to the Bureau of
Land Management and the U. S. Geological Survey. Public comments will
be reviewed and taken into consideration in the determination of fair
market value for the offered lands. Comments should address specific
factors related to fair market value including: the quantity and quality
of the coal resource, the estimated market value of the coal, the esti-
mated cost of producing the coal, the expected rate of industry return,
the appropriate discount rate for use in calculating present value along