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determines that substantial financial and legal commitments were made by an operator prior to January 1, 1977, in connection with any such operation, is authorized, in accordance with such regulations as the Secretary may prescribe, to.enter into an agreement with that operator pursuant to law, lease other Federal coal deposits to such operator in exchange for the relinquishment by such operator of his Federal lease covering coal deposits involving such mining operations, or pursuant to Section 206 of the Federal Land Policy and Management Act of 1976, convey to the fee holder of any such coal deposits involving such mining operations the fee title to other available Federal coal deposits in exchange for the fee title to such deposits so involving such mining operations. It is the policy of the Congress that the Secretary shall develop and carry out a coal exchange program to acquire private fee coal precluded from being mined by the restrictions of this paragraph (5) in exchange for Federal coal which is not so precluded. Such exchanges shall be made under Section 206 of the Federal Land Policy and Management Act of 1976;" By making the above statement, Congress established its position that a surface coal mine operator is due compensation (by way of a coal lands exchange program) for coal where mining was limited due to the presence of an alluvial valley floor if it had made a substantial financial and legal commitment to the project. IV. BASIS FOR THE EXISTENCE OF THE EXEMPTION Empire, by documentation and analysis, will demonstrate the basis for its exemption are that: (1) in the 12 months prior to August 3, 1977, it produced coal in commercial quantities from the Eagle Mine Complex within or adjacent to an alluvial floor, and (2) prior to August 3, 1977, it had a permit from Colorado to conduct surface coal mining operations within an alluvial valley floor. A. Empire Produced Coal in Commercial Quantities Prior to August 3, 1977 Beginning in 1971, Empire produced coal in commercial quantities. Exhibit E to this request shows the number of tons produced each year from 1971 through 1979 and reveals that by 1977, almost 1,500,000 tons of coal had been produced. This exhibit also shows that in the 12 months • preceding the passage of the FSMCRA that approximately 450,000 tons of coal were commercially produced. Moreover, 4