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• Covered Storage • Sewage Treatment Plant • Water Tank • Water Treatment Building • Mine Vent Fan • Coal Storage Piles • Unit Train Loadout • Coal Preparation Plant • Mine Access Roads Additional information regazding these facilities and the proposed operation is included in the Proposed Action in Chapter 2 of this EIS. In 2004, exploratory drilling on the existing federal coal leases held by CAM in the project azea indicated that there are substantial coal reserves in the southern portion of the leases. Exploratory drilling on surrounding BLM lands also indicated that substantial reserves exist outside of CAM's existing leases. CAM has submitted a Lease by Application (LBA) for additional federal coal underlying BLM lands (see Figure ~. If CAM is the successful bidder for this coal, it would be mined and shipped using the same mine portals and facilities described in this EIS. 1.3 Need for the Proposed Action The BLM recognizes the development of coal reserves as important to both the local economy and the nation. This project would be consistent with the goals of the Grand Junction Resource Area (now Field Office) Resource Management Plan (1987) (RMP), as well as the 2001 National Energy Policy and the Energy Policy Act of 2005. The RMP states: "The development of coal is important to both the local economy and the nation" (BLM 1987, p. 2-7). The project would encourage and facilitate meeting the country's energy needs from a domestic source; and it would help meet the current and future domestic market demand for low-sulfur coal, thereby supporting clean coal initiatives. Integral to the development of the coal reserves is the need to transport the coal to market. Currently in the western U.S., the vast majority of coal is transported by rail. The Application for Transmission and Utility Systems and Facilities on Federal Lands and the Land Use Application and Permit would allow CAM to provide for the construction and operation of an efficient infrastructure to increase coal production in a practical and feasible manner by (1) mining valuable coal reserves from the existing leases; (2) transporting the coal to market in an efficient and effective fashion; and (3) developing and mining additional coal reserves in potential new coal leases. BLM needs to respond to these applications as required by 43 Code of Federal Regulations (CFR) 2802.4 and 43 CFR 2920. BLM must approve or deny the right-of--way grant and the permit for construction and operation. BLM must also approve or deny the right-of--way grant for the transmission line. Additionally, the USACE needs to consider the applicant's needs in the context of the desired geographical area of the development and the type of project being proposed. The USACE needs to insure that the Section 404 permit they would issue for the project facilities that impact waters of the U.S. is the Least Environmentally Damaging Practicable Alternative (LEDPA) (40 CFR 230.10(a)). 1.4 Decisions to be Made BLM has received land use and right-of--way applications from CAM and from GVP and a Lease by Application from CAM. BLM can issue the permits for the Proposed Action as submitted in