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Act of 1920, Federal Coal Leasing Amendments Act of 1976, and 43 CFR 3400. Specifically, the BLM has reviewed the coal lease modification application in accordance with applicable regulatory provisions of 43 CFR 3432, Lease Modifications. Consistent with these provisions, the proposed lease modification would serve the interests of the United Stales. [hire is no competitive interest in these reserves, and the reserves could not be developed as part of another potential or existing independent operation. In addition, the proposed modification area is less than the 160 acre limit under 43 CFR §3432 and less than the area of 1,339.56 acres covered by the existing lease, and no prior modifications of this lease have occurred nor are there any other lease modification applications pending for this lease. The United States would receive fair market value for the coal contained in the modification area. The BLM has prepared this Environmental Assessment (EA) to evaluate potential impacts of the proposed lease modification on the environment and to develop mitigating measures to be included as lease stipulations as appropriate to prevent, control, or adequately mitigate identified potential impacts. In order to make a preliminary determination of whether the proposed coal lease modification and potential associated environmental impacts should be evaluated under an EA or the more extensive and rigorous Environmental Impact Statement (EIS) process, [he BLM considered a number of factors. These factors included; 1) The proposed action would occur as a modification of an existing lease and, as proposed, is consistent with the applicable provisions of 43 CFR 3132; 2) The need for a timely determination on the lease modification application in order to avoid bypass of the subject coal reserves as ongoine mining operations progress to the west; and 3) Potential [elated environmental impacts are similar to those previously evaluated for the existing coal lease and the incremental impacts associated with the proposed modification, when considered cumulatively with other leasing and related actions, are not significant. 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 CFR 3461, Federal Lands Review -Unsuitability for Mining. The coal unsuitability criteria was applied to the modification area. Appendix A, Unsuitability Analysis and Report, summarizes, for each of the regulatory unsuitability criteria, considerations and applicability relative to the proposed coal lease modification. Any specific stipulations resulting from application of the unsuitability criteria aze included in the discussion of mitigation measures for this EA. Following completion of the final EA, the BLM -Uncompahgre Field Manager will forward the EA, the Finding of No Significant Impact (FONSl). Record of Decision (ROD), and Maximum Economic Recovery Report (MER) to the BLM Colorado State Director in Denver. If the State Director determines that the EA is adequate and that a FONSI isjustified, she will concur with [he ROD. The requirements for reclamation bonding aze reviewed and approved and the applicant must post the required bond before the lease can be issued. The information Oxbow submitted in the coal lease modification application and the environmental evaluation provided in this document do no[ constitute or substitute for a formal underground mining permit application. The application information has been used in order to develop this EA impact analysis for development of the federal coal reserves contained in the proposed lease modification area and the general limitations and mitigation measures necessary to address overall impacts. Applicable terms and conditions under Coal Lease COC-53510 (refer to Appendix B, Coal Lease COC-53510 -Terms and Conditions) would also apply to this modification, as well as any specific Terms and Conditions attached to the approval of the modification. Detailed mining and reclamation plans complying with all applicable federal and state regulations and provisions must be submitted and approved before mining operations can proceed under the lease modification. The Surface Mining Control and Reclamation Act of 1977 (SMCRA) gives OSM primary responsibility for administration of programs regulating surface coal mining operations on federal lands and the surface effects of underground coal mining operations on federal lands. Pursuant to Section 503 of SMCRA, the Colorado Division of Minerals and Geology (CDMG) developed, and the Secretary of the Interior approved, a permanent program authorizing CDMG to regulate surface coal mining operations and surface effects of underground coal mining on non- -~-