The property, known as the Maysdorf II north coal tract, contains about 149 million tons of mineable coal and neighbors Cloud Peak Energy's Cordero Rojo mine in Campbell County.

In September 2006, Cloud Peak subsidiary Cordero Mining Company applied for a coal lease for approximately 4653 acres (approximately 504Mt of estimated coal) in the maintenance tract adjacent to the Cordero Rojo mine.

The BLM determined that the application would be processed as two separate tracts, Maysdorf II north tract and Maysdorf II south tract.

The BLM said the lease sale for the Maysdorf II north tract would be held at 10am on August 21 in the BLM Wyoming office. The south tract is yet to be leased.

Once the lease is issued to the highest qualified bidder, an annual rental payment of $3 per acre is required, along with a royalty payment of 12.5% of the value of coal produced by surface mining methods.