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CHAPTER 1 <br />r- DESCRIPTION OF 7NE PROPOSED ACTIOFI <br />• SHORT-TERI.1 COAL LEASE APPLICATIOt; C-27432 <br />The proposed federal action is to offer for lease 5.6 million tons <br />of recoverable coa] reserves lying in the D seam on an 864.41-acre tract <br />in Delta County, Colorado for underground mini n; (see figure 1-1). <br />This tract cf federal coal reserves lies irumediztely northeast of <br />and adjacent to federal and private coal leases which supoert production <br />from the er.isting Colorado tdestr:oreland, Inc. (Ctil) Orchard Vailev ;line. <br />The portal facilities for the existing underground coal nine are located <br />2.5 miles •ncrth of the torn of Paonia, Colorado (see rap 1). The <br />existing facilities and operations at the Orchard Valley i•1ir.e are <br />described in appropriate sections of chapter 2. <br />Background <br />The tract r.as identified in a short-term coal lease a~clication <br />(C-2J 432) sub^itted by Cl+'I on ;ioverber 6, 1978, *_o the State Director of <br />the Bureau of Lznd Management (BLhi) Colorado. After consultation ui±h <br />the Office of the Area ~.ining Supervisor, Corservaticn Division, J.S. <br />Geolocical Survey (US3S) the application ~~as found to i.*.eet the <br />• "employment" criteria of the short-term leasing progra~~ defined by the <br />June 14, 19i8, court decision of id~DC vs Ruches. <br />'The short-term lease application stated that present coal reserves <br />lying on tl:e existing Orchard Valley trine property are not adepuate for <br />CWI to continue to meet binding contractual a5reements with northern <br />Indiana Public Service Co:~.pany (t;IPSCO). That contract requires ChI to <br />supply up to 700,000 tons of coal annually to t;IPSCO froi^ 19?7 to 1992. <br />Production from the Orchard Valley Mine currently is used to fulfill the <br />contract. <br />With the iezse application C;:I sube.i*.ted preliminary information <br />concerning the proposed mining operation on this tract. Under the <br />proposal, C'.!I intends to extend existing underground mine ~~orkings from <br />their present oesition at the northern ooundary cr' the existing federal <br />coal lease onto this tract. In addition, an intake ventilation shaft <br />would be instilled on the tract in the early 1980s. <br />• <br />