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the potential impacts of the proposed lease and to develop mitigating measures to be included as lease stipulations in the event a competitive sale ie held. The BLM conducts a public hearing before a competitive sale is held to allow public comment on the effects of mining on the proposed lease. The BLM must also evaluate lease proposals with respect to the coal unsuitability criteria developed by the Department of the Interior in compliance with Section 522 of the Surface Mining Control and Reclamation Act of 1977 (SMRCA) and 43 CPR 3461. This evaluation was done in conjunction with the Uncompahgre Basin Resource Management Plan (1989). Unsuitability decisions affecting the lease application area have been reviewed and it was found that the exceptions to Criteria 11 and 14 also apply to this proposed lease tract. The special stipulations to protect bald and golden eagle nest sites and migratory birds are listed in Section V - Mitigation Measures of this document. In addition, new exceptions to Criteria No. 9 and 14 are addressed in the following paragraph. No other exceptions to the Coal Unsuitability Criteria apply. The Grand Mesa Penstomen and the loggerhead shrike have become Category 2 threatened and endangered species since the application of the criteria. Criterion No. 9 states that habitat for a proposed threatened or endangered plant or animal shall be considered unsuitable. Criterion 14 states that federal lands which are high priority habitat for migratory bird species of high federal interest shall be considered unsuitable. The lands involved in Criteria No. 9 and 14 are suitable for coal leasing after applying the exceptions to the criteria. Mining would occur approximately 500 to 1,200 feet below the surface and would not interfere with the habitat of the penstomen or loggerhead shrike. in addition, if surface disturbance is proposed it would be stipulated that a Threatened and Endangered plant survey be conducted and that habitat for the loggerhead shrike be avoided. Following completion of the EA for competitive coal lease application COC-54558, the Montrose District Office of BLM would forward the competitive lease application, the EA, maximum economic recovery report (MER), Decision Record (DR), Finding of No Significant Impact (FONSI), proposed lease terms and conditions, and preliminary recommendations to the BLM State Director in Denver. The Colorado State Director would make a determination on the leasing action, the proposed lease terms and conditions and bonding requirements; and the adequacy of the FONSI or the need for an environmental impact statement. The State Director then prepares newspaper and Federal Register notices of the sale and poets a notice of the proposed sale in the Public Room. The notice of the proposed sale is then distributed to the public and advice of sale is sent to the Attorney General. A sales panel consisting of the Deputy State Director for Mineral Resources, a BIM mining engineer, a BIM geologist, and a BLM mineral economist is then designated. Once the sale has been held, qualified bidders are evaluated and ranked by the sale panel which would then make recommendations of acceptance to the State Director. The successful bidder is then notified of additional requirements and requested to submit data and information necessary for a review by the Attorney General. Once the Attorney General has completed his review, the lease documents are Page 2