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J~~~ <br />~- <br />• ~„~,~, o.,, <br />a~ ~~"P <br />;o ~~ =~ ' ~ United States Department of the Interior <br />i~ ~ o OFFICE OF THE SECRETARY <br />~„~, ,•°. WASHINGTON, D.C. 20240 <br />Mr. James A. Larson, President ~~~ 3 l'~7g <br />Energy Fuels Corporation <br />Suite 445 <br />3 Park Central <br />Denver, Colorado 80202 <br />Dear Mr. Larson: <br />I am responding to your expression of concern about our efforts to settle <br />the pending litigation, NRDC v. Hughes, which enjoins the Department from <br />issuing coal leases except under very narrowly-defined circumstances. <br />After four months of negotiations, a tentative agreement was concluded on <br />February 24, and on February 25, I approved its submission to the Court. <br />The Court must now amend its order of September 27, 1977 before the agree- <br />ment becomes binding. <br />• The agreement permits the Department to issue coal leases under three <br />categories while the injunction remains in effect. The three categories <br />are as follows: <br />(1) The Department may issue leases -- at its discretion <br />-- where Federal coal may be by-passed in the projected <br />operation of an existing mine. This provision permits <br />leasing where Federal coal reserves, unless mined in <br />the normal course of operations, would no longer be <br />economical or environmentally suitable for mining at a <br />future date. Up to five years of reserves may be in- <br />cluded in a so-called "by-pass" Lease. <br />(2) The Department may also issue leases in order to main- <br />tain production and employment or where additional <br />reserves are needed to meet existing contract require- <br />ments. Under these "employment" provisions, up to <br />eight years of reserves may be included in a lease. <br />(3) The Department may also issue seven "hardship" leases <br />as specified in the agreement; [hey may be issued <br />without regard to [he eight-year limitation on re- <br />serves. Also, as future hardship circumstances arise, <br />the Department may seek further modification of [he <br />Court's order. <br />u <br />31`° ~~~ <br />