Bid made on state coal tracts near Ashland

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By The Associated Press

Story Published: Feb 8, 2010 at 4:19 PM MDT

Story Updated: Feb 8, 2010 at 4:19 PM MDT

BILLINGS - Montana land officials will open at least one bid Monday from an entity that wants to lease more than a half-billion tons of coal near the Wyoming border.

In December, the Montana Land Board said it would take offers on the state-owned Otter Creek coal tracts near Ashland. Bids were due by 5 p.m. Monday. The state wants at least $143 million up front and annual royalty payments that could approach $1 billion.

St-Louis-based Arch Coal Inc., the nation's second largest coal mining company, already has leased adjoining tracts that hold an estimated 731 million tons of the fuel.

Arch paid less than half what the state wants, raising speculation that no one would bid for the Montana coal.

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