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Mesa, Uncompahgre and Gunnison National Forests (9/911. The Coal Unsuitability decisions affecting the <br />lease application area are analyzed in Appendix I. As a result of the application of the Coal Unsuitability, <br />there are some lands within the tract that are unsuitable for coal mining. <br />Following completion of the EA far competitive coal lease application COC-56447, the Montrose District <br />Office of BLM would forward the competitive lease application, the EA, maximum economic recovery report <br />(MERI, Decision Record (DR), Finding of No Significant Impact (FONSII, proposed lease terms and conditions, <br />and preliminary recommendations to the BLM State Director in Denver. The Colorado State Director would <br />make a determination on the leasing action, the proposed lease terms and conditions and bonding <br />requirements, and the adequacy of the FONSI or the need for an environmental impact statement. The State <br />Director then prepares newspaper and Federal Register notices of the sale and posts a notice of the proposed <br />sale in the Public Room. The notice of the proposed sale is then distributed to the public and advice of sale is <br />sent to the Attorney General. A sales panel consisting of the Deputy State Director for Mineral Resources, a <br />BLM mining engineer, a BLM geologist, and a BLM mineral economist is then designated. <br />Once the sale has been held, qualified bidders are evaluated and ranked by the sale panel which would then <br />make recommendations of acceptance to the State Director. The successful bidder is then notified of <br />additional requirements and requested to submit data and information necessary for a review by the Attorney <br />General. When the Attorney General has completed his review, the lease documents are then transmitted to <br />the successful bidder for signature and submission of the bond. The State Director then makes the decision <br />approving the bond and issuing the lease. Copies of the decision are then distributed to the BLM District <br />Office, the Office of Surface Mining (OSMI and the Minerals Management Service IMMS). <br />SMCRA gives OSM primary responsibility to administer programs that regulate surface coal mining operations <br />on federal lands and the surface effects of underground coal mining operations on federal lands. Pursuant to <br />Section 503 of SMCRA, the Colorado Division of Minerals and Geology ICDMGI developed, and the Secretary <br />of the Interior approved, a permanent program authorizing CDMG to regulate surface coal mining operations <br />and surface effects of underground coal mining on non-federal lands within the State of Colorado. In <br />September 1982, pursuant to Section 5231c) of SMCflA, CDMG entered into a cooperative agreement with <br />the Secretary of the Interior authorizing CDMG to regulate surface coal mining operations and surface effects <br />of underground mining on federal lands within the state. <br />Pursuant to the cooperative agreement, federal coal lease holders in Colorado must submit permit application <br />packages to OSM and CDMG for proposed mining and reclamation operations on federal lands in the State. <br />The CDMG reviews the packages to ensure that the permit application complies with the permitting <br />requirements and that the coal mining operation will meet the approved permanent program's performance <br />standards; if it does comply, CDMG issues the lessee a permit to conduct coal mining operations. The OSM, <br />USFS, BLM, and other federal agencies review the permit application package to ensure that it complies with <br />the terms of the coal lease; the requirements of the Mineral Leasing Act of 1920; the National Environmental <br />Policy Act of 1969; and other federal laws and their attendant regulations. The OSM recommends approval, <br />approval with conditions, or disapproval of the mining plan to the Assistant Secretary -Land and Minerals <br />Management. Before the mining plan can be approved, BLN, USFS and the surface-managing agency (if <br />other than BLM or USFS) must concur with this recommendation. <br />The CDMG enforces the performance standards and permit requirements during the mine's operation and has <br />primary authority in environmental emergencies. The OSM retains oversight responsibility for this <br />enforcement. The BLM has authority in those emergency situations where CDMG or OSM inspectors cannot <br />act before significant environmental harm or damage occurs. <br />The information submitted in the coal lease application by Mountain Coal Company does not constitute a <br />formal underground mining permit application. It has been used in order to develop an impact analysis. Its <br />use is intended to illustrate one possible plan for developing federal coal reserves on this tract and does not <br />imply that Mountain Coal Company would be given any preference in the event that a lease sale is held. In <br />addition, it does not imply that the mining permit application developed from these preliminary plans would <br />comply with the regulations or be approved by the Colorado Division of Minerals and Geology if a lease sale <br />were held and Mountain Coal Company obtained the lease. Any plan which is ultimately submitted must <br />Page 2 <br />