GRAND JUNCTION, Colo.—Oxbow Mining has paid nearly $1 million for federal leases so it can expand its Elk Creek Mine near Somerset.
The Daily Sentinel reports ( ) that at a Bureau of Land Management auction this week, Oxbow paid $990,264 for rights to develop about 4 million tons of coal on more than 700 federal acres. Oxbow was the sole bidder.
The BLM has estimated the leased coal could produce $6.3 million in royalties, half of which the state of Colorado would receive. Oxbow has said the lease will allow it to extend the life of Elk Creek Mine by a year.
The BLM says the mine employs 250 to 335 people.
Following challenges by WildEarth Guardians, the BLM is requiring Oxbow to study possibly capturing methane that’s vented during mining.
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Information from: The Daily Sentinel,
