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No bids for federal coal tract a first
Aug 22, 2013 - The Associated Press
CHEYENNE -- For the first time, nobody has bid on a federal coal tract offered for sale in Wyoming after the company that initially sought to mine the location determined that it couldn't do so profitably.
The U.S. Bureau of Land Management held a coal lease sale in Cheyenne on Wednesday but received no bids.
Usually a federal coal tract offered for sale by the BLM receives exactly one bid -- the one submitted by the company that applied to mine the coal. There are two competing bids very rarely.
This time, not even Gillette-based Cloud Peak Energy followed up its 7-year-old lease application for the 149 million tons of coal next to its Cordero Rojo mine. Economic analysis that accounted for market conditions and political and regulatory uncertainty showed that not all of the coal was economically recoverable, Cloud Peak President and CEO Colin Marshall said in a release.