Mont. coal lease sale set for Feb. 28

AP News
Posted: Jan 18, 2012 10:22 AM
Mont. coal lease sale set for Feb. 28

Federal officials will hold a lease sale on Feb. 28 for 35.5 million tons of publicly-owned coal near Roundup, Mont.

The sale marks the second time the Bureau of Land Management has offered the underground coal tracts for lease. The agency in November rejected a $5.3 million offer from Signal Peak Energy as insufficient.

Signal Peak wants another sale to be held because acquiring the leases is a key component of its mining plan. The coal tracts are in the path of Signal Peak's 300-employee Bull Mountain mine.

Signal Peak is jointly owned by two Ohio companies, Boich Co. and FirstEnergy, and the Gunvor Group of Europe.

The BLM has not disclosed how much it thinks the coal is worth.