FOR IMMEDIATE RELEASE
June 20, 2013
Contact:
Cloud
Peak Energy Inc.
Karla Kimrey
Vice President, Investor
Relations
720-566-2932
U.S. BUREAU OF INDIAN AFFAIRS APPROVES
OPTION TO LEASE AND EXPLORATION AGREEMENTS BETWEEN CLOUD
PEAK ENERGY SUBSIDIARY AND THE CROW TRIBE OF INDIANS
GILLETTE,
Wyo.)—June 20, 2013-- Cloud Peak Energy Inc. (NYSE:CLD), one of the largest
U.S. coal producers, and the Crow Tribe of Indians today announced that the
U.S. Department of Interior, through the Bureau of Indian Affairs (“BIA”) Rocky
Mountain Regional Director Ed Parisian, has approved the Option to Lease
Agreement and Exploration Agreement signed by the Crow Tribe of Indians and Big
Metal Coal Co. LLC, a wholly-owned subsidiary of Cloud Peak Energy Inc. Cloud Peak Energy paid the Tribe $1.5 million
upon BIA approval, as provided in the agreements, and will fund $75,000 in
college and vocational scholarships annually beginning with the 2013-2014
academic year.
Cloud
Peak Energy and the Crow Tribe signed the agreements on January 24, 2013, and
the Tribe submitted them to the BIA for the required approval shortly
thereafter. The terms provide for exclusive
options to lease and develop up to an estimated 1.4 billion tons of in-place
Northern Powder River Basin coal on the Crow Indian Reservation in southeast
Montana, near Cloud Peak Energy’s Spring Creek mine and Youngs Creek Mining Company,
LLC and CX Ranch properties. Cloud Peak
Energy has now paid a total of $3.75 million in option payments to the Tribe
and will make additional annual payments during the initial five-year option
period that could bring total option payments during the initial period to $10
million. Upon any future exercise and required
regulatory approval of a lease or leases, and development of mining, Big Metal
Coal Co. LLC will provide preferential hiring, training, and promotion to
qualified Indians and will make bonus, production tax and royalty payments to
the Tribe.
“We are pleased to receive
the Bureau of Indian Affairs’ approvals for our agreements with the Crow Tribe,”
said Colin Marshall, Cloud Peak Energy’s President and CEO. “We have
already begun preliminary work in support of exploration, including the opening
of a project office at Crow Agency and engagement with Tribal landowners. I am pleased that the $75,000 in annual
scholarships and option payments will bring immediate benefits to members of
the Tribe at the start of what will be a long term partnership as we seek to
develop the Crow Tribe’s natural resources.”
“I
want to thank the Bureau of Indian Affairs and other Interior Department agencies
for their thorough review and prompt approval of the agreements with Cloud Peak
Energy,” said Darrin Old Coyote, Chairman of the Crow Tribal Executive Branch.
“The Tribe’s large coal resources offer significant potential for good-paying
jobs and a diversified source of revenue for essential Tribal Government
services. I look forward to continuing to work with Cloud Peak Energy on
this important project, which is a priority for the Crow Tribe’s future.”
“This agreement will yield
much needed good-paying Montana and Crow Nation jobs while helping build up a
work force of Montanans and tribal members ready to fill those jobs,” said U.S.
Senator Max Baucus (D-Mont.). “Responsible energy development is a cornerstone
of our state’s economy and one of my top priorities for improving American
energy security while creating jobs here at home.”
“Responsibly
tapping into our natural resources will bring new economic development and job
opportunities to the Crow Tribe,” U.S. Senator Jon Tester (D-Mont.) said.
“Implemented properly, partnerships like this one between Cloud Peak Energy and
the Crow Tribe will improve the quality of life for tribal members and benefit
the region.”
“I’m
pleased that the Bureau of Indian Affairs has approved this job-creating
agreement between the Crow Tribe and Cloud Peak Energy,” said U.S.
Representative Steve Daines (R-Mont.). “This project holds tremendous potential
for creating good-paying Montana jobs, growing our state’s economy and creating
new opportunities for the Crow Tribe.
I’m also excited to hear of Cloud Peak Energy’s investment in education
and job training on the Crow Reservation, which demonstrates a long-term
commitment to the Crow Tribe’s future. This partnership demonstrates how we can
work together to responsibly develop our natural resources and promote economic
development in our tribal communities and across Montana.”
Additional
information on the agreements was provided in a joint press release dated
January 24, 2013, which can be found by clicking here or on the Cloud
Peak Energy website, under Investor Relations.
About Cloud Peak
Energy®
Cloud
Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming
and is one of the largest U.S.
coal producers and the only pure-play PRB coal company. As one of the safest
coal producers in the nation, Cloud Peak Energy specializes in the production
of low sulfur, subbituminous coal. The company owns and operates three surface
coal mines in the PRB, the lowest cost major coal producing region in the
nation. The Antelope and Cordero Rojo mines are located in Wyoming
and the Spring Creek mine is located near Decker, Montana. Cloud Peak Energy also owns rights
to substantial undeveloped coal and complementary surface assets in the
Northern PRB, further building the company’s long-term position to serve Asian
export and domestic customers. With approximately 1,700 employees, the company
is widely recognized for its exemplary performance in its safety and
environmental programs. Cloud Peak Energy is a sustainable fuel supplier for
approximately 4% of the nation’s electricity.
About the Crow Tribe of Indians
The
Crow Tribe of Indians (Apsáalooke Nation) is a federally-recognized Indian
tribe, whose 13,000 members occupy a 2.2 million acre Reservation in
southeastern Montana. Under the Tribe’s 2001 Constitution, the
Tribal Government consists of an Executive Branch, a Legislative Branch, and an
independent Judicial Branch.
Cautionary Note Regarding Forward Looking Statements
This
release contains “forward-looking statements” within the meaning of the safe
harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Forward-looking statements are not
statements of historical facts and often contain words such as “may,” “will,” “expect,”
“believe,” “anticipate,” “plan,” “estimate,” “seek,” “could,” “should,” “intend,”
“potential,” or words of similar meaning. Forward-looking statements are based
on management's current expectations or beliefs as well as assumptions and
estimates regarding our company, industry, economic conditions, government
regulations, energy policies and other factors. Forward-looking statements may
include, for example, (1) our current estimates of the quantity and quality of
the Tribal coal, (2) any future exercise of the options and development,
production and marketing of the coal, (3) the anticipated timing and ability to
obtain additional required regulatory approvals, (4) business development and
growth initiatives and strategies; (5) potential synergies of this transaction,
(6) the potential development of the Youngs Creek Mine and (7) other statements
regarding this transaction and our plans, strategies, prospects and
expectations concerning our business, industry, economic conditions, operating
results, financial condition and other matters that do not relate strictly to
historical facts. These statements are subject to significant risks,
uncertainties, and assumptions that are difficult to predict and could cause
actual results to differ materially from those expressed or implied in the
forward-looking statements, including the risks that (i) additional required regulatory
approvals and permits are not obtained in a timely manner or at all, (ii) economic tons are substantially less than the
currently estimated in-place tons, (iii) sufficient additional West Coast
terminal capacity is not developed at all or in a timely manner or is not
available to us on commercially reasonable terms, (iv) Asian export demand and
domestic demand for PRB coal weakens, (v) future development and operating
costs significantly exceed our expectations, or (vi) anticipated synergies of
the transaction are not achieved. For a discussion of some of the
additional factors that could adversely affect our future results or the
anticipated benefits of this transaction, refer to the risk factors described
from time to time in the reports and registration statements we file with the
Securities and Exchange Commission (“SEC”), including those in Item 1A - Risk
Factors in our most recent Form 10-K and any updates thereto in our Forms 10-Q
and current reports on Forms 8-K. There may be other risks and uncertainties
that are not currently known to us or that we currently believe are not
material. We make forward-looking statements based on currently available
information, and we assume no obligation to, and expressly disclaim any
obligation to, update or revise publicly any forward-looking statements made in
this release, whether as a result of new information, future events or
otherwise, except as required by law.
Source: Cloud Peak Energy
Resources LLC
Cloud Peak Energy
Inc.
Karla Kimrey, 720-566-2932
Vice President, Investor Relations ###
