Feds set auction date for first major Wyoming coal lease in a decade

The U.S. Bureau of Land Management issued a “record of decision” Thursday, greenlighting the sale of 441 million tons of coal in the Powder River Basin in northeast Wyoming — the first major federal coal lease offering in the region in a decade.

The West Antelope III coal lease will go to competitive auction on Oct. 8, the agency said. 

Though the 3,508-acre tract contains approximately 441 million tons of coal, the estimated “recoverable” volume is about 365 million tons, according to the BLM. “The recoverable coal volume and duration of leased reserves is driven by economics and subject to change,” the agency said.

The tract is associated with Navajo Transitional Energy Company’s Antelope mine and spans areas of Campbell and Converse counties. Navajo Transitional’s predecessor, Cloud Peak Energy, nominated the tract in 2015, kicking off the BLM’s review process. But federal action on the request went idle when Cloud Peak filed for bankruptcy in 2019. The company eventually sold its Powder River Basin mines to Navajo Transitional. The BLM revived the lease sale approval process just days after the One Big Beautiful Bill was signed in July. 

“This coal leasing effort directly supports the Trump administration’s goals of reinvigorating the American coal industry, reducing reliance on foreign energy, and creating good-paying jobs in rural communities,” the agency said in a press release. “It also aligns with Secretary [Doug] Burgum’s vision of unleashing domestic energy production while streamlining federal processes and ensuring long-term economic growth.”

The West Antelope III coal lease, along with 14.5 million tons of extra coal reserves included in a pending modification plan for the Antelope mine, would add about 18 years to the life of the mine, according to BLM estimates. The Antelope mine extracts 20-25 million tons annually and employs about 400 workers, according to the company. It’s the third-largest coal mine in the nation in terms of production, federal records show.

The size of the coal lease, as well as the Trump administration’s expedited timeline to put it up for auction, is cause for concern, according to the Sheridan-based Powder River Basin Resource Council, which formed in the 1970s, in part, to watchdog the industry.

“Where’s the market for this lease, and does the lease make sense in the current market?” Resource Council Executive Director Donna Birkholz wants to know.

Though the Powder River Basin coal industry has benefited from a slowdown in coal-burning electric power plant retirements, it’s a long way from recovering from a steep market slide that began 15 years ago, cutting the mining district’s annual production by nearly half.

Lingering uncertainty about the industry’s future underscores concerns about potential environmental impacts if coal companies are unable to make good on reclamation requirements, Birkholz added.

The Resource Council, along with other conservation groups, has also noted that recent cuts to coal royalty rates — by both Wyoming and the federal government — will result in lower revenues to state and federal coffers compared to past coal leases.

Visit this BLM website to learn more about the West Antelope III coal lease.