The U.S. Bureau of Land Management is preparing to auction off the right to mine more than 400 million tons of coal in the Powder River Basin.
The coal lease sale is set for Feb. 29 in Cheyenne.
The 3,200-acre tract is adjacent to the North Antelope Rochelle Mine operated by Powder River Coal, a subsidiary of Peabody Energy.
The BLM says coal royalties in Wyoming last year totaled $590 million. The money was shared nearly equally between the state and federal governments.