Federal land reserves of coal are being leased for mining in Alabama, Montana, Utah, Wyoming and North Dakota in new deals accelerating under Trump administration domestic energy directives.
A succession of coal lease deals for mines has taken place in the months following the U.S. Department of Interior ending a past moratorium on federal coal leasing in lands under the oversight of the Bureau of Land Management.
U.S. Interior Department Secretary Doug Burgum announced a commitment April 8 to fulfill directives by President Donald Trump’s April 6 executive order to reinvigorate America’s coal industry.
“The Golden Age is here, and we are starting to ‘Mine, Baby, Mine’ for clean American coal,” Burgum declared. “Interior is unlocking America’s full potential in energy dominance and economic development to make life more affordable for every American family while showing the world the power of America’s natural resources and innovation.”
Part of Trump’s order directed the Interior Department to assess U.S. coal resources and accessibility on federal lands.
The BLM administers federal land leases for new coal mines. The agency is in charge of 700 million acres of subsurface minerals.
Since April, the BLM has been actively offering coal leases for new mines and selecting winning bids.
“Coal has long been the backbone of America’s energy and industrial strength,” Burgum noted in a Sept. 2 announcement about three competitive coal leases in Alabama, Montana and Utah. “By moving forward with these lease sales, we are creating good-paying jobs, supporting local communities, and securing the resources that keep America strong. President Trump’s leadership is putting American workers first and ensuring our nation’s energy future is built on reliable, homegrown resources.”
New Wyoming Coal Lease Offer Outside Gillette
The newest BLM lease for offer is 3,508 acres in Campbell and Converse counties, 15 miles south of Wright, about 40 miles south of Gillette. The deadline to submit sealed bids in the competitive lease process is Oct. 8.
“The tract is located adjacent to the Antelope Mine’s current operation and contains approximately 445 million tons of coal of which approximately 365 million tons are considered to be mineable,” described a Federal Register notice issued Sept. 25. “A lease issued as a result of this offering will require payment of an annual rental of $3 per acre, or fraction thereof, and a royalty payable to the United States.”
The winning be will be the highest cash amount offered by a qualified bidder if that bid meets/exceeds the BLM’s estimated fair market value for the tracts.
Kris Kirby, acting state director of the BLM Wyoming, issued a Sept. 24 announcement about the coal lease offer on federal land. “This lease sale exemplifies BLM’s vital role in strengthening America’s energy independence and positioning Wyoming for long-term economic opportunities,” Kirby said. “The BLM is committed to the responsible management of public lands, bolstering domestic energy production while benefiting local communities.”
120 Acres of Federal Land Offered for Utah Coal Lease
The BLM issued a public notice issued Sept. 10 about its intent to lease 120 acres of federal land thought to hold 858 thousand tons of recoverable coal in the Little Eccles Federal Coal Lease Tract. The Utah parcel is near Skyline Mine in east-central Emery County, about a three-hour drive south of Provo. Sealed bids are due Oct. 1.
“This project strengthens national energy security and will provide a boost to the local economy,” Christina Price, BLM Utah’s deputy state director for lands and minerals, stated in the announcement. “We are proud to be a part of the effort to provide Americans with an affordable, supply of domestic energy.”
Two Alabama Coal Leases Offered On 4,050 Acres Under Private Lands
The BLM will be selecting winning bids on Sept. 30 for leases on two tracts under private lands in Tuscaloosa County, Ala. The tracts in the north-central area of the state (about an hour away from Birmingham) are estimated to have 53 million tons of recoverable metallurgical coal. This substance is designated critical material under the Energy Act of 2020 and is used in steel production.
Montana Federal Coal Lease for Estimated 167.5 Million Tons of Recoverable Coal
The BLM has set an Oct. 6 deadline for bids to lease a 1,262 acre tract in Big Horn County, Mont. The area is thought to have 167.5 million tons of recoverable coal. “The lease sale responds to an application by Navajo Transitional Energy Co. LLC, operator of the Spring Creek Mine. If issued, the lease could extend the mine’s life through 2051, supporting high-paying jobs and contributing to U.S. energy security,” a BLM notice stated Sept. 2.
BLM Awards Coal Leases in North Dakota
This year, the BLM has selected winning bids in North Dakota:
- $79,996 from Falkirk Mining Co. of Underwood, N.D., to mine 11.3 million tons of available coal across about 800 acres at the Falkirk Mine in McLean County.
- $106,292 from Coteau Properties Co. of Beulah, N.D. to mine 8.3 million tons of available federal coal across 1,070 acres at Freedom Mine in Mercer County.
The BLM stated that both N.D. coal leases also will bring in $3 per acre in yearly rental fees plus a 7% royalty payment on coal produced. Paid royalties will be split 50/50 between the state and the U.S. Treasury.
More Coal Mines on Federal Lands Likely
The federal government is moving forward with its first coal exploration project since 2019, the BLM announced in July.
Utah is the site for a proposed drilling by Canyon Fuel Co. LLC. The Salt Lake company wants to drill 10 exploratory holes on 9,276 acres of public land in rural Sanpete County, located about 50 miles north of Richfield.
“The project would use low-impact drilling methods to assess potential coal resources,” according to the BLM Utah. Public input on the project was being sought by the BLM.
