Coal news and updates

The Alaska Department of Natural Resources said Wednesday it would open up the 13,160-acre Canyon Creek area for a competitive coal lease sale. The Alaska Energy Corporation had requested to lease the land, but a competitive bidding process is required on tracts of land that have a high potential for commercial coal development, according to the DNR.

 

DNR estimated the Canyon Creek area, which is located in the Susitna Basin, has 257.9 million st of minable, subbituminous coal, and geologic data from DNR's notice of coal lease sale identified up to five potentially minable coal seams ranging in thickness from 10- to 45-feet thick.

 

The sealed bid auction will be made for a single lease with a minimum bid of $65,800 and royalty rates of 5% fixed. The lease term is for an indeterminate period. The rental rate is $3/acre.

 

Bids will be due to the DNR by January 12.

 

Source: Platts