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lands within the State. <br />"^ Pursuant to the cooperative agreement, federal coal lease holders in Colorado must submit permit <br />application packages to OSM and Colorado DMG for proposed mining and reclamation operations <br />on federal lands in the State. <br />Colorado DMG reviews the packages to ensure that the permit application complies with the <br />permitting requirements and ihat the coal mining operation will meet the approved permanent <br />program's performance standards. OSM reviews the package to 'ensure that the coal mining <br />operation will meet the Federal Indian program performance standards. If it does comply, Colorado <br />DMG issues the lessee a permit to conduct coal mining operations on the federal lands portion of <br />the project area and OSM issues the lessee a permit to conduct coal mining operations on the Indian <br />lands portion of the project area. OSM, BLM, and other federal agencies review the permit <br />application package to ensure that it complies with the terms of the coal lease; the requirements of <br />the Mineral Leasing Act of 1920; (MLA); the National Environmental Policy Act of 1969; and other <br />federal laws and their attendant regulations. <br />OSM recommends approval, approval with conditions, or disapproval of the MLA mining plan to <br />the Assistant Secretary - Land and Minerals Management. Before the mining plan can be approved, <br />BLM and the surface -managing agency (if other than BLM) must concur with this recommendation. <br />Colorado DMG and OSM jointly enforce the performance standards and permit requirements during <br />the mine's operation and have joint authority in environmental emergencies. OSM retains oversight <br />responsibility for all enforcement. BLM has authority in those emerj�•rcy situations where Colorado <br />DMG or OSM inspectors cannot act before environmental harm or d zmage occurs. <br />Background <br />The Hay Gulch area has historically been a coal producing azea. Numerous abandoned ;nines exist <br />throughout the Hay Gulch drainage. However, except for the King Coal mine, there are currently <br />no active coal mining operations in the Hay Gulch area or in La Plata County. <br />National King Coal currently has approximately 1209 acres under Federal lease, approximately 160 <br />acres under State lease, and approximately 541 acres under private lease which afford minable coal <br />reserves to the underground room and pillar operation. All of these lease areas are currently <br />permitted by Colorado DMG. The surface facilities at the mine are located on approximately I I <br />privately owned acres <br />The total remaining recoverable reserves in coalbed 1 as of May 26, ''000 contained on Teased iands <br />controlled by National King Coal are approximately 1,900,000 tons. <br />Production Data - The current operation mines entirely within the Upper Menefee coal seam just <br />nn nnn -r..e <br />south of the East Alkali Tract. the current mine is capable of producirgg up to 3VV,VVV wua;..s1i. <br />t"►, and maximum annual federal production to date was 262,481 tons which occurred in 1998. The total <br />