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~;~ <br />2 <br />1983 and a Dorchester drawing dated December 7, 1978, showing up to 12 feet of ash <br />above the coal bed, MSIiA stated that it appeazed the coal was already burning along <br />the top of the bed when the mine was developed in 1979 and the $re had finally burned <br />through the intervening coal to become visible in the two entries. Despite Dorchester's <br />efforts to monitor and control the spontaneous combustion, including the installation of <br />thermornuples and chemical grouting in the mine, a fire broke out in June 1983. The <br />mine was flooded and sealed during June and July 1983 to extinguish the fire. An <br />inspection of the mine site by Grand Junction District Office personnel on <br />March 2, 1990, found that the surface area adjacent to the sealed portal had been graded <br />and revegetated. <br />Lease Diligence Requirements. The additional data received on June 18, 1990, contains <br />a mine development schedule that assumes the BLM could grant a suspension that would <br />suspend the rent and the diligent development period, and would allow the proposed <br />mine to reach sufficient production to meet diligence and maintain continued operation <br />at the end of the S-yeaz suspension. A section 39 suspension of operations and <br />production suspends not only the rent but also beneficial use of the lease. Any <br />production under a section 39 suspension will terminate the suspension. A force majeure <br />suspension does not suspend rent but does allow production up to the pre-suspension <br />level. Because the pre-suspension production level of these leases is zero, a force <br />tnajeure suspension also will terminate once production begins. <br />The applicants' mine development schedule shows that diligent development will not be <br />achieved until the fourth year of production. The diligent development period of these <br />leases will end on July 1, 1990. If we were to grant a suspension with an effective date <br />of January 1, 1990, there vn11 be only 18 months remaining to meet diligence once <br />production begins and terminates the suspension. We have concluded that 18 months is <br />not enough time for these leases to reach a level of production sufficient to meet <br />diligence. Thus suspensions of these leases will not enable the lessees to achieve diligent <br />development. <br />We also reviewed the application for evidence of sales contracts and operating <br />agreements documenting a diligent effort to develop these leases. The supply and <br />demand forecast provided by a Japanese coal broker and letters from several companies, <br />either acknowledging an exchange of information or providing an estimate of time and <br />costs to permit and re-enter the Cameo bed, are not legally binding sales contracts or <br />operating agreements. <br />Section 39 Susnension. The authority for a suspension of operations and production is <br />provided by section 39 of the Mineral Leasing Act of 1920, as amended (MLA). In <br />order for an application for a suspension of operations and production to conform to the <br />requirements of section 39 of the MLA, the regulations, and Bureau policy, the lessee <br />must have received authorization to mine and onsite mice development must have <br />