Consulting economic geologist
Jeffrey C. Reid, PhD, PG, CPG

Coal property for sale

Coal property for sale — Location - Clay County, West Virginia

The coal tract offered for sale is located in Clay County, West Virginia adjoining or near Interstate 79 (I-79) between Mile Posts 40 and 55 (figures 1, 2). Contact Dr. Jeff Reid for further information about this tract. Dr. Reid's direct telephone number is 919.618.0810. You may also contact him by email.

Note: The coal tract has been appraised. However, it is to be sold as a quick liquidation to dissolve a partnership.

coal property for sale Clay County, West Virginia
Figure 1. General location map of the coal tract, Clay County, West Virginia. The tract is near the junction of I-79 and State Route 16. Charleston is about 43 miles to the west. The tract is located on State Route 16, about four miles south of the Big Otter Exit off I-79 at Mile Post 40, and about 55 miles from the Kanawha River coal docks.

 

Coal property for sale Clay County, West Virginia GE image

Figure 2. The tract is bounded on the south by State Route 4 and the Elk River. State Route 4 follows the Elk River along the north shore. The Elk River Railroad, Inc. follows the Elk River along the south side of the river and could provide rail access to CSX markets through Gassaway, West Virginia. A rail siding on the CSX is also available at Flatwoods, West Virginia (I-79, Exit 67).

The tract is bisected by a Monongehela Power HV transmission line (northwesterly line visible in this image), and a large Columbia natural gas transmission line is located between this property and I-79.

 

Tract outline :

coal context map
Figure 3. Map showing tract boundaries relative to I-79, State Route 16, and the Elk River. The Kanawaha River coal docks are located about 55 miles west of the tract.

The property parcels are continuous and comprise 7,829 acres in Clay County, West Virginia as follows:

Summary of Parcels
Acres Comment
7,250 Mineral only in three contiguous parcels
459 Mineral only in three contiguous parcels bisected by Interstate 79
120 Coal and surface lease
1506 Surface leases - eleven parcels

 

Resources and tonnages:

Coal reserves have been evaluated through four reports between 1976 and 1986. However, the 459-acre parcel was not included in any of these resource reports. Maps on a topographic base showing the extent of the coal in each seam area available upon request.

Five coal seams have been identified as having minable reserves as summarized in the following table:

Tract reserve summary (thousands of tons)
Seam / Source
Proven
Probable
Total
Resources
Pittsburgh (1986)
432
0
432
0
Upper Freeport (1976a)
9,157
4,515
13,672
993
Middle Kittanning (1976b)
1,369
4,019
5,388
5,423
Lower Kittanning (1976b)
2,153
6,245
8,398
8,459
Coalburg (1976b)
2,504
8,377
10,881
7,143
Totals
15,615
23,156
38,771
22,019

Pittsbury coal seam

This seam occurs at an approximate elevation of 1,300 feet. The reserve analysis indicate the presence of 0.4mm ton in the north central area of the tract. The coal quality information available indicates that a typical as-received raw product, carefully prepared could be as follows:

Moisture 6%
Ash <12%
Sulfur <2.0%
Btu ~12,250
#SO2 3.3

Because of configuration, location and likely coal quality, only surface mining is considered likely for recovery of this seam, by mountain top removal practices according to available data.

Upper Freeport coal seam

This seam occurs at an approximate elevation of 1,000 feet. The reserves in this seam occur in minable thickness in a northeast-southeast zone near the center of the tract. The 1976 report identifies reserves of 13.7mm. While the report classifies 2.1mmt of this total as surface mineable, this portion may be considerably higher if potential auger and/or highwall mining is considered. The coal quality information available indicates that a typical as-received raw product, carefully prepared could be as follows:

Moisture 6%
Ash <10%
Sulfur <1.5%
Btu ~12,250
#SO2 1.5

Middle Kittanning coal seam

This seam occurs at an approximate elevation of 850 feet and is above drainage along the Elk River. The 1976b report indicates reserves lf 5.4mm tones of which a small portion could be recovered by surface mining. In addition 5.4mmt of inferred resources are identified. There is very little data available on this coal seam and significant additional reserves / resources may be identified through additional exploration according to that report. The coal quality information available indicates that a typical as-received raw product, carefully prepared could be as follows:

Moisture 6%
Ash <10%
Sulfur <1.0%
Btu +12,250
#SO2 ~1.2

Lower Kittanning coal seam

This seam occurs at an approximate elevation of 50-75 feet below the Middle Kittanning coal seam. The 1976b report indicates reserves of 8.4mm tones of which the majority is located below drainage in the northwest portion of the tract. In addition, a significant 8.5 mmt of inferred resources are identified. Significant additional reserves / resources may be identified through additional exploration according to that report.

Because of the location of indicated reserves, it is likely that all production from this coal seam will require preparation. The coal quality information available indicates that a typical as-received washed product, would be as follows:

Moisture 6%
Ash <8%
Sulfur <1.0%
Btu ~13,500
#SO2 ~1.2

Coalburg coal seam

This seam occurs at an approximate elevation of approximately 400 feet below drainage on this tract. The 1976b report indicates reserves of 10.9mm tons, the most significant reserve on the tract. In addition, a significant 7.1mmt of inferred resources are identified. Additional exploration data needs to be developed to develop the Coalburg seam.

Because of the location of indicated reserves, it is likely that all production from this coal seam will require preparation. The coal quality information available indicates that a typical as-received washed product, would be as follows:

Moisture 6%
Ash <10%
Sulfur <0.75%
Btu ~13,500
#SO2 <1.2

Notes to reserve summary:

Reserve evaluations for the 1976b and 1986 reports used the following criteria:

Coal density 147 tons per acre-inch
Proven reserves Within 2,500 feet of a measured coal section
Probable reserves >2,500 feet and < 5,280 feet of a measured coal section
Inferred resources >5,280 feet and <7,900 feet of a measured coal section
Minimum coal thickness 30 inches
Mining recovery rates

Surface mining = 90%

Deep mining = 67%

Auger = not evaluated

The 1976a reserve report does not define the criteria used in calculation of reserves but does reference the reserves defined in the 1976b reports.

Exploration and development history:

The area has a limited mining history, although some surface mining has occurred one mile north of the tract. Extensive mining operation have occurred about five miles east of the tract.

Some exploration and evaluation work has been performed on this tract. A Fair Market Value (FMV) report was also prepared using a sustained mining rate of 1 million tons per year for 28 years. Note: The coal tract has been appraised. However, it is to be sold as a quick liquidation to dissolve a partnership.

For further information:

Contact Dr. Jeff Reid for further information about this coal tract. Dr. Reid's direct telephone number is 919.618.0810. You may also contact him by email.