DOI announces Alton, SUFCO coal projects in Utah
By Department of the Interior
On Feb. 14, the U.S. Department of the Interior announced that the Bureau of Land Management’s approval of two mining projects in Utah: the $12.3 million Alton Coal Tract coal lease in Kane County and two coal lease modification proposals for the SUFCO Mine in Sevier County, which will extend the life of the existing mine by up to five years. These approvals will further the administration’s energy dominance and economic prosperity goals, leveraging American energy wealth and creating jobs in Utah communities.
Through the continued approval of coal lease applications and modifications, the BLM has been able to support the success of coal development on federal lands, including the Alton and SUFCO coal mines. Secretarial Order 3348 made these actions possible by overturning the 2016 moratorium on all new coal leases on federal land. The projects will help foster Utah’s continued economic expansion through access to premier natural resources in the most efficient and responsible manner possible.
On Nov. 28, 2018, the BLM Utah state office held a competitive sale of federal coal on approximately 2,114 acres 30 miles south of Panguitch near Alton. The tract contains approximately 40.9 million tons of in-place coal and an estimated 30.8 million tons of recoverable coal. The bid of $12,320,000 by Alton Coal Development, LLC, was determined to be the high and acceptable bid ensuring fair market value for the coal.
The lease covers a total of 3,581 acres of federal mineral estate, of which 2,305 acres of the surface are BLM-administered and 1,276 acres are in private surface ownership by eight private landowners. Based on an estimated two million tons of production annually, this lease could directly create over 100 new jobs at the mine and indirectly increase employment by 240 to 480 jobs, including fuel providers, and positions in maintenance, grocery stores, and retail stores.
The successful lessee would be required to obtain additional federal, state, and local approval to develop, mine, and operate facilities on the affected public lands. The lessee or the operator cannot construct or operate a coal mine without the appropriate licenses and permits from the Office of Surface Mining, Reclamation, and Enforcement or the affected state and local governments, as required by the Surface Mining Control and Reclamation Act of 1977.
The SUFCO mine currently produces approximately 5–6 million tons of coal per year. The mine has been producing coal since 1941 and is one of the most productive and technologically advanced underground coal mines in the world. Coal produced by the mine provides for the annual electrical household needs of approximately three million people.
The SUFCO mine lease modifications will support employment for approximately 383 direct mining jobs. Assuming most mine employees and supporting employment would be within Sanpete and Sevier Counties, these direct mine jobs represent some 3.6 percent of the non-farm employment levels in the counties. About 1,307 jobs in total would be created domestically through direct and induced economic activity.
The coal industry on public lands in Utah contributed $748 million in total economic output in FY 2017.
