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Although the Department initially filed a notice of appeal of <br />the Court's decision, the District Court approved a settlement of the <br />case on June 14, 1978. The modified order permits substantially more <br />leasing before the final nev, programmatic environmental impact statement <br />is issued than vrould have been allor,ed under the Court's initial <br />standards. The agreement grill remain in effect until the injunction is <br />lifted. Utah Fower and Light Company has appealed the settlement to the <br />Court of Appeals for the District of Columbia. <br />The agreement embodied in the amended order permits leasing under <br />any of the follovring six standards: <br />By-pass leases are permited :•There federal coal may be otherv:ise <br />lost if it is not developed by an existing mine because subsequent costs <br />(either economic or en vironrental) vrould be much higher. Uo to five <br />years of reserves may be included in a lease issued under this provision. <br />7o qualify fora lease, mining operations must have been in existence <br />on September 27, 1977. <br />Employment leases may be issued in order to c~aintain production <br />and employment in existing mines on September 27, 1977, v,hich are running <br />short of reserves needed to maintain past production or :There adsitienai <br />reserves are needed to meet existing contracts. Up to eieht years of <br />reserves may be included in a lease under this provision. <br />ERDA project leases of no more than <br />may b° issued to support Energy Research <br />• (ERDA) projects authorized under section <br />allo:aed if the teci~noiocy assessed canr,o <br />leases or private coal holdings. <br />500,000 tons annual production <br />and Development Administration <br />900 of S..CRA, Lezsinc is <br />t be demonstrated on existing <br />Lease exchanges zre permitted to implement exchanges for Federal <br />leases in alluvial valley floors under section 510(b)(5) of St'CRA. <br />Hardship Leases involve seven particular lease applications specifies <br />in the agreement as being not subject to the injunction, regardless of <br />any other particular standard, The basis for these leases varies, <br />but each has some special circumstance or hardship which justified <br />• proceeding with lease issuance in advance of the completion of the final <br />version of this statement. <br />Noncompetitive (preference rioht) lease zpplications may be processed <br />but not issued for the 20 PRL?s having the least environmental impact. <br />Preference is to be given to FRLAs for tracts containing 90 percent <br />of reserves v:hich can be mined by deep mining and.FRLAs for tracts <br />which would not require substantial additional transportation facilities <br />or vrater storage or supply systems in the recions. All activities, <br />including completion of the commercial quantities test and necessary <br />environmental analyses, are permitted under this standard. <br />• <br />