No Bids on Otter Creek

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By Kyle Midura

Story Published: Feb 8, 2010 at 7:35 PM MST

Story Updated: Feb 9, 2010 at 7:00 AM MST

BILLINGS - The state has received no viable bids to develop the otter creek coal tracts in Southeastern Montana.

When the deadline came at five p.m. Monday, the department of natural resources received one letter of interest from Arch Coal. Arch did not submit a bid saying Montana's minimum requirement was too expensive for the current economic climate.

The land board voted to put the land up for bid in December saying as much as 500 million tons of coal could be mined. The area is south of Ashland near the Wyoming line.

Governor Brian Schweitzer said the state stands to see $1 billion dollars in royalties by leasing the land. Environmentalists said developing the coal will pump 1 billion tons of greenhouse gas into the environment, and compete with other Montana mines in an already saturated market.

Without a bid in hand, the DNRC will consider its options and make a recommendation to the land board on Thursday.

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