“If approved, these exploration and option agreements with the Crow Tribe would allow us to access up to 1.4 billion tons of coal to further build our Northern Powder River Basin position. The location of the coal next to our Spring Creek mine and the recently acquired Youngs Creek project and CX Ranch lands will let us optimize our mine development. We are comfortable that the option structure, and variable royalty rates, will enhance the potential development of mining operations on the Crow Reservation,” said Colin Marshall, president and CEO, Cloud Peak Energy.
Cloud Peak Energy would pay the Tribe $2.25 million upon Tribal approval and execution of the agreements, $1.5 million upon approval by the Department of the Interior, and additional annual payments thereafter through the initial option period, to a cumulative total of up to $10 million.
