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-2- 2. Section 2 of the lease also specifies that the "pro~ucfioh of coal under this lease shall not exceed the annual rate of product~lon i that the lessee may be required to produce in the contract.. " While EPA is pleased with this ceiling on the rate of production for a short- term lease, it is also concerned that a company may elect tolproduce at a low rate and for more than three years if the contract is not bind- ing. If this were done by lessee's choice, it would appear to void the short-term demonstration. 4Jhile EPA recognizes the current necessli.ty of coordinating short-term leasing criteria and the Mineral I~easir~~g Act, EPA inquires as to the controls the Department will employ to ass~llhe that production meets the apparent tonnage requirements of the contract(s) provided by a bidder to demonstrate the short-term criteria are me,t. It is recommended that special stipulation (a) be amended to requireeither termination after three years or to make this lease subject to renlewal in three years unless production is delayed through no faultlof ti'e lessee. 3. Section 2 of the lease specifies that the 1,966,667 'tonsof coal leased will be mined only on the advance. EPA is pleased with this stipulation. We recommend that the lease also include.a stipula- tion to the effect that mining conducted to recover the leased c'oa~,l will not be conducted in a manner that adversely affects subsequent recovery of coal left in place either in lower mineable coal seams Orlin 'th'e remaining portions of the "D" seam. Due to the potential for mining a thickness of the coal seam significantly less than the totallthicsfhess, we think this stipulation is necessary and appropriate. We maintann our concern over the fact that state-of-the-art mining is requir~d toobtain maximum recovery in the situations apparently existing at the Orchard Valley Mine. If a bidder cannot achieve maximum recovery of i,the entire seam scheduled to be leased, we believe that seam should notlbe leased. 4. The special stipulations listed under (b) of the prcfposed lease are generally quite appropriate. EPA recommends that stipulaition(b) (ii) be amended to include all operations that may cause excessive fugi- tive dust (not solely limit~to heavy construction activity); that stipulation (b) (iii) (if such a standard is necessary in they lease) be amended to include standards to return the vegetation of the area to an equivalent seasonal variety and productivity and stability as well as to minimize disturbance of the hydrologic balance; that stiipulat~on (b) (iv) be amended to show what standards of hydrocarbon controls will be employed; and that a stipulation requiring adequate air q~aiit~, monitoring of particulates and any other pollutants that coulld exceed 100 tons per year from the mining and related operations be added 5. Section 30 ("Special Stipulations") contains a gener~ al state- ment that the special stipulations may be revised or amendedby tde mutual consent of a number of parties, including the lessee. The general statement also acknowledges that revisions or amendments maylresu~'t from the West-Central Colorado Coal EIS. Thus, if additional mitigatin'ig meas- ures are identified as a result of the EIS process, they will) be implemented ~~~1.r~ ,~ J~~~ ~: