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Late last week the federal agency said the underground Oxbow complex in Gunnison County would develop 4 million tons of recoverable coal in the block.
It will add another year to its operations.
The producer’s bid totaled $990,264, equating to about $4.03 per mineable ton.
All BLM coal leases are subject to an annual rental fee of $3 per acre.
It will also receive a royalty payment of 8% for all developed coal.
The Oxbow mine, which employs between 250 and 335 miners, generates about $7.6 million in royalties.
About half of that amount is earmarked for the state of Colorado.
The state has nine active coal operations – seven underground and two surface – totaling 75,000 acres.
About 90% of the state’s deposits are on public lands.
