Coal Lease Sale Reoffer Policy

U.S. DEPARTMENT OF THE INTERIORBUREAU OF LAND MANAGEMENT

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UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C. 20240
http://www.blm.gov/

September 26, 2014

In Reply Refer To:
3422 (320) P

EMS TRANSMISSION 12/19/2014
Instruction Memorandum No. 2014-160
Expires: 09/30/2015

To:	All Washington Office and Field Office Officials
From:	Assistant Director, Energy, Minerals, and Realty Management
Subject:	Coal Lease Sale Reoffer Policy

Program Area:  Coal Management.

Purpose: This Instruction Memorandum (IM) provides updated coal lease sale reoffer policies to the Bureau of Land Management (BLM) state offices.  

Policy/Action: This IM establishes a more efficient coal lease sale reoffer policy. Lease sale reoffers can occur when the BLM rejects all bids as not meeting the fair market value (FMV).  Currently, the BLM�s policy allows only the applicant to request a reoffer of the lease sale. Under this new policy, if the applicant declines to request a reoffer, the BLM will allow other bidders an opportunity to request a reoffer. The State Offices (SO) will process lease sale reoffers in a manner that minimizes the associated workload and in some cases eliminate the need to complete a new FMV evaluation.

If the post-sale panel determines that no bids represent FMV, the SO will prepare a decision clearly stating the reason(s) for the rejection of the bids and adecision will be sent to each bidder (see 43 CFR 3422.3-2(b)). The BLM will include a statement that the bidder has 30 days to appeal the decision to the Interior Board of Land Appeals (IBLA). The BLM will request each bidder to express in writing their interests in a lease sale reoffer.  If no timely appeals are filed, the BLM may consider a reoffer.  The BLM may also consider a reoffer if the bidder ultimately prevails in any challenge to a BLM�s rejection decision where their bid was less than the presale estimate of FMV. The BLM will determine when to hold the reoffer after consultation with the State Governor (see 43 CFR 3420.4-3).  

When the BLM determines to hold a reoffer, the BLM will request from the bidder(s) additional information to be considered in the coal tract valuation review. If no adjustment to the FMV estimate is necessary, the BLM will process the reoffer expeditiously. If the FMV estimate requires adjustment, the reoffer will occur once the adjustment has been completed by the BLM and reviewed by the Office of Valuation Services.   

Timeframe: Effective immediately.

Budget Impact:   Reoffers will require funding, but should be implemented within existing budgets and with cost recovery funding where applicable.

Background: The Office of Inspector General (OIG) published its Coal Management Program report (Report) on June 11, 2013. The Report contained 13 recommendations.  This IM addresses OIG recommendation 5, to explore options for a more efficient lease reoffer process. 

Allowing other bidders at a coal lease sale standing to request reoffers, when the applicant has not expressed interest, conforms with the OIG request to the BLM to explore options for a more efficient lease reoffer process, and complies with statutory requirements (30 USC 201) to obtain FMV at coal lease sales.

Manual/Handbook Sections Affected:  This policy will be incorporated into the H-3420 - 1 Competitive Coal Leasing Handbook.

Coordination:  State, district, and field office specialists and Washington Office Solid Minerals Division coal specialists evaluated the OIG�s recommendation 5 and developed these steps to help ensure lease reoffers are processed timely. 

Contact:  If you have any questions concerning the content of this IM, please contact me at 202-208-4201, or your staff may contact Mitchell Leverette, Division Chief Solid Minerals (WO-320) at 202-912-7113 or [email protected]; or John A. Lewis, 202-912-7117, or [email protected].

 

Signed by:                                                                    Authenticated by:

Michael Nedd                                                                Robert M. Williams

Assistant Director                                                         Division of IRM Governance,WO-860

Energy, Minerals, and Realty Management

Last updated: 12-29-2014

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