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Decision Notice And Finding of No Significant Impact West Elk Mine Coal Methane Drainage Project -Panels 16-24 Mountain Coal Company Federal Coal Leases C-1362 and COC-56447 USDA Forest Service Rocky Mountain Region Grand Mesa, Uncompahgre, and Gunnison National Forests Paonia Ranger District Gunnison County, Colorado I. INTRODUCTION Mountain Coal Company, (MCC), a wholly owned subsidiary of Arch Western Resources, LLC, operates West Elk Mine, an underground longwall coal mine, located near Somerset, Colorado on the North Fork of the Guanison River. The mine currently produces approximately 6 million tons annually of high BTU, low-sulfur coal using Mgh- ' capacity longwall mining methods. This coal is in high demand due to its conformance with the Phase II standards as required by the Clean Air Act. Coal feed electrical generation plants in several eastern and mid-western states use this coal to provide energy while meeting State and federal air quality standards. ' MCC would like to construct and operate 70 methane drainage wells (MDWs) and drill 10 exploration holes on National Forest System (NFS) lands within the Paonia Ranger District of the Grand Mesa, Uncompahgre, and Gunnison National Forests (GMUG). Since March 2001, MCC has experienced excessive methane gas build up in the underground mine. Since that time, the mine has periodically shut down to allow [he methane levels to reduce to safe concentrations. Production decreases have reduced the mine's profit margin to the point that economic viability is threatened. To remedy [he problem, MCC undertook a program to install MD Ws from the land surface into the underground mine workings to assist in liberating the methane gas. Use of NFS lands for access, constmction and operation of MDWs for Panels 14 and 15 was requested, approved and implemented in 2001. The current proposal includes access, construction and operation of MDWs and exploration drill holes for three additional longwall mining districts, encompassing Panels 16 through 24. The proposed MDWs and drill holes aze located on lands included within Federal Coal Leases C-1362 and COC-56447. MCC is the current holder of these leases issued by the BLM, Colorado State Office. MCC also holds a State mine permit issued by the Colorado Division of Minerals and Geology (CDMG). The GMUG is responsible for consenting to BLM lease issuance and authorizing subsequent waivers, exceptions, or modifications of the leases on NFS lands. Some of the proposed roads and drill pads are located in areas where construction would require exceptions to lease stipulations. The GMUG is also responsible for providing Conditions of Approval for inclusion in the State mine permit. The State will consider and approve or deny revisions to MCC's mine permit regarding constmction of the proposed roads and drill pads. The GMUG issues and administers road use pemtits for the proposed use of classified National Forest roads for mining operations. MCC holds a current road use permit that would need amendment if the proposed project were approved. The GMUG also issues and administers special use permits for [he occupancy of NFS lands. A permit would be required if construction and use of temporary roads and drill pads were approved. MCC contracted with another company, Montgomery Watson Hatza (MWH); who conducted an environmental analysis for this project. MWH prepared an environmental assessment (EA) that displays the effects of the proposed Final version 5/31/02 PagC 2