The University of Alabama requests proposals to lease certain underground mining rights to coal located in the NW¼; the W½ of SW¼; and the SE¼ of SW¼ of Section 5, T18S, R6W; the S½ of NE¼; the NE¼ of SE¼; the S½ of SE¼; and the NW¼ of Section 6, T18S, R6W; the NE¼; the SE¼ of NW¼; the NW¼ of NW¼; and the E½ of SW¼ of Section 7, T18S, R6W; the S½ of NE¼; the N½ of SE¼; the SE¼ of SE¼; the W½ of NW¼; and the NW¼ of SW¼ of Section 8, T18S, R6W; the NE¼; the E½ of SE¼; and the NE¼ of NW¼ of Section 18, T18S, R6W, all in Jefferson County, Alabama, containing 1560 acres, more or less. The University will require the successful proposer to execute a University underground coal mining lease; however, the University reserves the right to add coalbed methane recovery rights (including but not limited to gob gas and underground horizontal borings) to the underground coal mining lease between the University and the successful proposer. The underground coal mining rights offered for lease are in the Blue Creek Seam or the lower bench of the Mary Lee Seam. The minimum acceptable royalty rate is $3.00 per ton or eight (8%) percent of the actual gross selling price for each ton of 2,000 pounds of merchantable coal, whichever is greater. The University makes no warranty or representation as to the ownership of said lands or as to the existence, quality, quantity, or location of any coal on or under said lands. The successful proposer must demonstrate the ability to mine the coal by longwall mining methods.
The award made shall be in the best interests of the University, as solely determined by the University. The University reserves the right to accept or reject any and all proposals, to waive any informalities in a proposal, and, unless otherwise specified in writing by the Proposer, to accept any items in the proposal. The University may require oral presentation of one or more Proposers for the purposes of discussion or clarification. Only proposals from financially responsible organizations, as determined by the University, presently engaged in the underground coal mining business shall be considered. Representatives of the University reserve the right to inspect the Proposer’s current operations and to contact references prior to lease award.
The deadline for submission of proposals is 4:00 p.m. CST, March 10, 2023, to University Lands, the University of Alabama. Proposals received after this time will not be considered for the project award. The submission should be marked “Underground Mining Proposal”.
Persons interested in more information should contact University Lands, Box 870176, Tuscaloosa, AL 35487-1076, call 205/348-6462 or visit our website at universitylands.ua.edu
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