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Section 1 PURPOSE OF AND NEED FOR This environmental assessment (EA) is prepared in accordance with the Federal Coal Management Program and in compliance with 43 CFR 3400 and 40 CFR 1500. The Dorchester Coal Company has submitted a preference right lease application (PRLA) for three coal lease areas totaling 14,729 acres. If leased, the coal would most likely be used for local or regional power generation. Preference right leases are issued to applicants that prove, among other things, that they have discovered commercial quantities of coal. The original applicant, Gerald T. Tresner, applied for, and received three prospecting permits. These prospecting permit areas are the same areas that the coal leases could be issued upon. The leases are issued on a noncompetitive basis to the applicant or his successor. -Dorchester Coal Company purchased these rights from Mr. Tresner on January 1, 1981 (43 CFR 3430). Dorchester Coal Company currently operates a small mine on privately-owned land adjacent to the PRLAs and would like to continue operation of the mine by extending the underground mine into public land. This environmental assessment along with the mining plan and final showing of commercial quantities of coal will be used in the final determination for lease issuance. If the leases are issued and the need for rights-of-way for coal transporta- tion is presented to BLM, then further analysis will be completed on the specific type of transport and exact location of the right-of-way. BAf.KGROIIND As part of the federal coal management program the Bureau of Land Management (BLM) has initiated a series of steps toward meeting national and regional targets for coal production. After further study and evaluation, the proposed lease areas may be considered as suitable for leasing and development. Any areas, containing commerical quantities of coal, that are found to be unacceptable for leasing for environmental reasons may be exchanged for areas that are environmentally acceptable. Leasing of areas identified in the PRLAs is limited by multiple use management decisions that consider all resource values, resource demands, public _- concerns, and social and economic values. The leasing is further constrained by application of unsuitability criteria for coal development (43 CFR 3430) that could eliminate specific areas from further consideration for leasing. Unsuitability criteria have been applied to the three proposed lease areas and are discussed in appendix 1. All three lease areas were found suitable for coal leasing according to the criteria. Any rights-of-way required for transporting coal, employees, or utility corridors are issued separately from the coal leases. The Corps of Engineers 1-1