Andalex Resources Inc. and Intermountain Power Agency have been accepted as the successful bidder for the 1,646.34 acre Whitmore Canyon coal tract.
Andalex and Intermountain Power submitted a bonus bid of $11,459,900 for the federal coal lease, according to Utah Bureau of Land Management State Director Sally Wisely.
The Whitmore Canyon tract is located in Carbon County, approximately four miles north of East Carbon City.
The tract, containing an estimated 14.8 million tons of recoverable high volatile B bituminous coal, is adjacent to the companies' West Ridge underground coal mine.
The companies project the that West Ridge mine will operate at a level of approximately three million tons of coal per year.
In addition to the bonus bid, the companies will pay annual rental of $4,941 and an 8 percent royalty on all future coal mined from the tract.
One-half of the bonus bid along with 50 percent of all rental and royalties collected on coal produced from the Whitmore Canyon lease will be transferred to the state of Utah.
Andalex Resources Inc. and Intermountain Power Agency were the only companies to submit a sealed bid at the coal lease sale conducted by the BLM in Salt Lake City.