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n <br />U <br />Based on our analysis, there aze presently involved in [he agreement <br />some thirty-five (35) leases amounting to a total of 275-300 million <br />tons of coal. Annual production from these leases would range between <br />13-17 million tons, a significant increase over the current production <br />from Federal leases, which amounts to fifty (50) million tons annually <br />(1977 figures). <br />The alternative to this agreement was continuing the appeal of Judge <br />Pratt's order. While we felt our case was soundly based, the outcome <br />was by no means certain. Moreover, even if the appeal were successful, <br />the delays caused by the appeal process would be significant, especially <br />for those applicants whose needs for new leases are urgent. <br />The Department will continue to proceed with a new environmental impact <br />statement (EIS) on a revised coal leasing program. Once the programma- <br />tic is completed, the injunction should be lifted. The agreement will <br />not only allow us to respond [o urgent coal lease situations during the <br />period of the injunction, but it will also permit us to concentrate our <br />efforts on a new programmatic EIS without the uncertainty created by an <br />appeal of Judge Pratt's order. <br />The Department now estimates that a new programmatic EIS will be pub- <br />. lished as final in April or May of 1979, with a program decision to <br />follow immediately. If new leasing is warranted, we would then proceed <br />with site-specific coal Lease EIS's, with the first lease sales occuring <br />in mid-1980. <br />Let me assure you that my decision to approve an agreement with the <br />plaintiffs in NRDC v. Hughes, rather than continue the appeal, was made <br />only after very careful consideration of the alternatives. On balance, <br />I felt the need to fulfill the more urgent short-term leasing require- <br />ments outweighed the uncertain benefits which might occur through the <br />appeal process. The agreement represents a practical and timely solu- <br />Cion to some very serious hardships. <br />I am enclosing a copy of the agreement and an outline of its major <br />provisions, along with a list of those lease applicants who may benefit <br />from the timely conclusion of a settlement. <br />Sinc rely, <br />3.~f.~..~+~~ <br />SECRETARY <br />Enclosures <br />• ~ ~ .~, <br />