Montana’s Land Board will have to reconsider its price for developing the half-billion ton Otter Creek tracts after receiving no offers during a lease sale that ended on Monday.
The state had asked for an up front “bonus” bid of at least $143 million plus annual royalty payments that could approach $1 billion over the coming decades.
The only respondent was Arch Coal who sent a letter saying that the state’s price was too high. The “bonus” bid was double what Arch Coal had paid for a nearby tract only a few months ago.
The Land Board will meet on 16 February to review the situation.
No comments:
Post a Comment