Bids on 572M tons of state-owned coal due Monday

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By The Associated Press

Story Published: Feb 7, 2010 at 4:42 PM MDT

Story Updated: Feb 7, 2010 at 4:42 PM MDT

HELENA - Bids are due Monday on a vast tract of coal in eastern Montana that the state is considering leasing out for a mine.

The state-owned Otter Creek coal tracts near Ashland hold an estimated 572 million tons of the fuel. The Montana Land Board in December said any would-be developer would have to pay a $143 million upfront "bonus bid." That's a high price, more than double what Arch Coal Inc. paid for adjacent tracts in November. State officials will find out Saturday if that was enough to discourage interest in the lease sale.

Members of the Land Board, five Democrats led by Gov. Brian Schweitzer, said they set the price high to ensure the state gets the best possible price for the coal.

Any bids offered by Monday will be considered at the board's Feb. 16 meeting.

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