The block in McKinley County contains five seams in the Cleary coal member of the Menefee Formation and is ranked as subbituminous B or C coal.
It is hitting the auction block as a result of a lease by application filed by Peabody subsidiary Peabody Natural Resources.
The BLM said the estimated weighted average quality of all seams was 9,856 British thermal units per pound, 16.5% moisture, 13.2% ash, 36.9% fixed carbon, 33.4% volatile matter and 1.32% sulfur.
The sale has been set for August 14 at 10am local time. All sealed bids are due by 9am that day.
The agency said the successful bidder would submit the highest cash offer provided it met or exceeded fair market value as determined by an authorized officer after the sale.
Bids of less than $100 per acre will not be accepted under regulatory minimums.
Sealed bids should be sent by certified mail, return receipt requested, or hand delivered to the cashier of the New Mexico State BLM office in Santa Fe, marked “Sealed Bid for NMNM 126813 Coal Sale”
Prior to lease issuance, the high bidder, if other than the applicant Peabody, must pay the BLM the cost recovery fees of $107,642.17 in addition to all processing costs incurred.
The BLM will require payment of an annual rental of $3 per acre as well as a royalty payable to the US of 12.5% of the value of the coal removed from a surface mine and 8% of the value of the coal removed from an underground mine.
New Mexico has one underground coal mine, the San Juan longwall operation near Farmington.
