2008-07-16_REVISION - C1980007 (3)

Home Browse Search

IBLA 2007-213 correspond to lands subject to pre-eNisting coal leases on which an operating underground coal mine is located. This mine is venting methane into the atmosphere. The three relevant leases subject to the 2007 oil and gas lease sale were not issued for purposes of conveying rights to explore for, drill for, mine or develop gas deposits, but only to convey,the right to capture methane at surface venting structures constructed and maintained by the coal operator. As such, they ate not leases issued pursuant to the Mineral Leasing Act (MLA), 30 U.S.C. § 226 (2000), or subject to competitive bid at a lease sale conducted pursuant to that statute. Although the State Director properly concluded that the MLA is not a source of authority for the leases, we nonetheless reverse the protest decision. The protest against inclusion of the leases in an oil and gas lease sale under the MLA should have been granted. BACKGROUND The facts of this case are complicated and raise matters of first impression. The parcels at issue are subject to MLA leases for coal. Federal coal leases UTU-81893, UTU-66060, and UTU-79975, were issued no later than 1994 for lands in Carbon County, to, inter alia, Andalex Resources, Inc. (Andalex), and AMCA Coal Leasing, Inc.2 The coal leases give the lessee rights to explore for, mine, and produce coal deposits, subject to payment of a 12.5% royalty. 30 U.S.C. § 207 (2000). Federal coal leases do not convey such rights with respect to oil and gas. Amoco v. Southern Ulte Indian Tribe, 526 U.S. 865, 679-80 (1999). Rather, oil and gas deposits on public lands subject to coal leases remain in the lessor, and sights to explore for, drill for, and develop them are conveyed by oil and gas leases issued under the MLA. Id.; 30 U.S.C. § 226 (2000). UAE is the operator of the deep underground Aberdeen Coal Mine (Aberdeen Mine) which nunes coal resources on State-owned and private lands, as well as on public lands subject to the three Federal leases. To the extent the Aberdeen Mine 1 (...continued) for 79 parcels of land in Carbon County, Utah, Vessels Exhibit (Ex.) 1, Jan. 5, 2007, Notice of Competitive Lease Sale, Oil and Gas, attached to Vessels' Statement of Reasons (SOR). Other than the three leases subject to Vessels' protest, the remaining oil and gas leases are not at issue a.nd we address them no further. ` BLM's case record does not include the three coal leases. Vessels' Reply attaches three leases at Ex. B, but its copy of coal lease UTU-81893 is unsigned and fails to identify a lessee. BLM asserts that all three leases are held now by Andalex and we accept this as true for purposes of this appeal. Andalex's name was apparently changed to UtahAmerican Energy, Inc. (i1AE). 175 IBLA 9 lZ/Z d ??EL'ON 9 IM 1 W011:71 RG', 1. ` t 'Q Z 'N n ? VVJ QQ!CT QAA7 /17ion