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determined based on mine design and subsidence considerations. Areal ground subsidence may occur over the longwall panels as mining progresses, however based on previous mine subsidence evaluations, surface impacts will be minimal due to the depth of overburden in this area and no surface structures, drainages, or existing land uses are expected to be adversely impacted. Coal from the lease modification area would be transpotted from the mine on [he existing underground and surface conveyor systems to the existing coal stockpile and train loadout for loading to rail cars and transport to market. Extension of longwall panel development and longwall mining within the proposed lease modification area are expected to result in the production of up to 806,400 tans of additional coal that would otherwise be bypassed. The fair market value of this coal is estimated to be between $806,400 to $1,209,600, based on a unit value between $1.00 to $ I.~O per ton. If the lease modification is approved, Oxbow would pay a combination of a minimum bid and production royalties consistent with the fair market value of the coal. No surface disturbance, other than minor surface subsidence, is proposed or anticipated within the lease modification area ALTERNATIVE A (NO-ACTION) DESCRIPTSON: The No-Action Alternative would involve denial of the proposed coal lease modification. Under this altemative, Oxbow's ongoing B-Seam longwall operations in the Sanborn Creek btine would continue until existing leased and permitted coal reserves are depleted. Current production and activity levels and the currently projected life of the active Sanborn Creek mining operations would not change. Alternative A would result in bypass of the subject B-Seam coal reserves and would forego the oppottuni[y [o extend the life o(the ongotng Sanborn Creek mining operations. As previously described, alternate access to the subject coal reserves is both technically and economically infeasible, so denial of the coal lease modification would result in Oxbow bypassing the subject coal reserves. Because of the limited reserve base and the cost of mine development, i[ is probable that these reserves would then never be developed or mined in the future and the associated loss of [his coal as an energy resource and loss oC potential related coal royalties and other revenues to federal, state, and local governments and the public would become permanent. ALTERNATIVES CONSIDERFD BUT ELIMINATED FROM DETAILED ANALYSIS: An increase/decrease in the proposed lease modification area was considered as an alternative but was eliminated from detailed analysis because; I) A decrease in area would no[ meet the objectives of the Proposed Action relative to the geometry of the proposed longwall panel extensions and supplemental resource recovery; and 2) An increase in area would not offer any mining advantage since the proposed longwall panel extensions are limited by depth of cover and any increase beyond 160 acres would not be compatible with applicable provisions of 43 CFR 3432. AFFECTED ENVIRONMENT/ ENVIRONMENTAL CONSEQUENCES /MITIGATION MEASURES AFFECTED ENVIRONMENT: Detailed descriptions of the affected environment for the proposed lease modification and surrounding areas and environmental consequences for other mining and related activities in the area are included in the Somerset, Sanborn Creek, and Elk Creek btines _ Mining and Reclamation Plan (CDMG Permit No. C-81-022); [he Coal Unsuitability Report for the Bookcliffs and Paonia/Somerset Coal Planning Areas Within the Uncompahgre Basin Planning Area (BLIvf, 1989); the Uncompahgre Basin RMP EIS (BLM, 1989); the Uinta Southwest Utah Coal EIS (BL1~1, 1983); and the West Central Coal EIS (BLM, 1979). The following sections summarize specific relevant information for critical environmental resource categories. -4-