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Juue 25, 2001-LEI letter committing to submittal of additional bond by July 25, 2001 and committing to submittal of renewal PAR responses by August 15, 2001, was received by the Division. August 20, 2001-LEI submitted two amended renewal application pages that had been requested in the PAR October 17, 2001-LEI submitted responses to the Division's March 14, 2001 Renewal PAR letter, including amendments to the renewal application form information, and replacement application text, exhibits, and appendices. In accordance with Division request, the substantive responses were submitted as a technical revision application (TR-11). TR-11 was deemed complete on October 19, 2001, and a preliminary adequacy review letter (PAR) was sent to LEI on October 30, 2001. The TR-11 review entailed a number of additional operator response submittals and Division adequacy reviews. The Division ultimately issued a proposed approval decision on July 2, 2002. The proposed decision was published in the Grand Junction Sentinel on July 18, 2002, and there were no objections. In addition to resolving the various concerns identifted by the Division, the revision allowed for an increase in annual coal production from the previously approved level of 500,000 tons, to approximately 1.7 million tons per yeaz. Maximum production level was subsequently revised to 600,000 tons per year, in association with TR-12. June 26, 2003-SO-3 Permit Transfer application was submitted by LEI. The successor operator/permittee was Central Appalachia Mining, LLC, (CAM). The permit transfer became fmal on December 20, 2004. The Division was unable to issue a proposed decision to renew the permit to CAM until the permit transfer was approved. Applicant Violator System (AVS) checks were made on CAM on multiple occasions in association with the permit transfer and permit renewal, most recently on January 4, 2005. The OSM recommendation was "Issue". Publication of this proposed decision by the Division will initiate a thirty (30) day public comment period, after which the renewal decision becomes final, provided there aze no objections, DECCrlrinn nfthr Fnvirnnment The McClane Canyon Mine is located approximately 20 miles north of Loma, Colorado, at an elevation of approximately 5,800 feet. Land use within the permit and adjacent azeas is rangeland supporting both livestock grazing (cattle) and wildlife habitat. There is some irrigated agriculture in the East Salt Creek Valley adjacent to the permit azea. Livestock grazing is generally confined to the lower lying canyon bottom lands. The steep canyon sideslopes and rugged uplands are primazily used by wildlife. Both mule deer and elk utilize habitat within and adjacent to the permit azea in various seasons, and aze the most common large mammals. Black beaz and mountain lion also occur in the azea, along with numerous smaller mammals, songbirds, raptors, mourning doves and chukaz partridge. McClane Canyon is located in the Book Cliffs azea just north of the Grand Valley. This area is northeast of the Gazmesa Anticline and on the southern flank of the Piceance Basin. Local strata strike north-northwest and dip to the northeast into the Piceance Basin at between 2 and 3 degrees. The surface geology of the permit area is made up of the Mesa Verde Group of Upper Cretaceous Age, the Wasatch Formation of Lower Tertiary Age, and alluvium and colluvium of Quaternary Age. All local coal seams aze in the Mount Garfield Formation of the Mesa Verde Group. The Mount Garfield Formation consists of fine grained to medium grained sandstones, gray shales, and coal bearing zones. The Sego Sandstone underlies the Mount Ga~eld Formafion. Overlying the Mount Garfield Formation is the Hunter