PERRY COUNTY - Almost 30,000 acres of undeveloped coal reserves in Perry and Washington counties recently changed hands in a $39 million business transaction.

Ark Land Co., a subsidiary of St. Louis-based Arch Coal, purchased the land in northwest Perry and southwest Washington counties at the end of September. The land had previously been owned by the Scott Depot, W.Va.-based International Coal Group, Inc.

Arch Coal does not have plans to develop the site into a mining operation right now but rather hold it in reserves until the market for bituminous coal improves, said spokeswoman Kim Link.

The Clean Air Act Amendments of 1990 regulated the sulfur content allowed for coal-burning energy producers, and the high-sulfur coal of the Illinois Coal Basin became undesirable. New developments in clean coal burning technologies have allowed somewhat of a rebirth to begin in the bituminous coal market.

"We see the scrubber technology to be coming online," Link said. "It's becoming more and more prevalent in energy plants."

Link said the choice to purchase the land was based on predictions of the best long-term option for shareholders. Since the end of August, stocks prices for Arch Coal have steadily increased about $29 per share to about $35.

Arch Coal expanded its presence in the Illinois Coal Basis when it acquired one-third interest in Knight Hawk Coal LLC in 2006. Arch Coal's annual report addresses the impact of this acquisition on the company.

"This acquisition expands our footprint and complements our 220-million-ton reserve position in Illinois," according to the report. "It also represents an initial step towards re-engaging in an increasingly important coal-producing region where Arch has a successful history and deep organizational knowledge."

Ira Gamm, vice president of public and investor relations for International Coal Group, said the company decided to sell the land in Southern Illinois because it did not fit with the company's long term, six-year plan. A different mining company approached ICG with an offer, so the company decided to open the property up to bid before selling.

After the sale, ICG owns 350 million tons of undeveloped coal reserves in Illinois and operates the Viper Mine near Springfield.

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