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~.. • Pursuant to the cooperative agreement, federal coal lease holders in Colorado must submit permit application packages to OSMRE and Colorado MLRD for proposed mining and reclamation operations on • federal lands in the State. Colorado MLRD reviews the packages to ensure that the permit application complies with the permitting requirements and that the coal mining operation will meet the approved permanent program's performance standards; if it does comply, Colorado MLRD issues the lessee a permit to conduct coal mining operations. OSMRE, BLM, and other federal agencies review the permit application package to ensure that it complies with the terms of the coal lease; the requirements of the Mineral Leasing Act of 1920; the National Environmental Policy Act of 1969; and other federal laws and their attendant regulations. OSMRE recommends approval, approval with conditions, or disapproval of the mining plan to the Assistant Secretary - Land and Minerals Management. Before the mining plan can be approved, BLM and the surface-managing agency (if other than BLM) must concur with this recommendation. Colorado MLRD enforces the performance standards and permit requirements during the mine's operation and has primary authority in environmental emergencies. OSMRE retains oversight responsibility for this enforcement. BLM has authority in those emergency situations where Colorado MLRD or OSMRE inspectors cannot act before significant environmental harm or damage occurs. II. Description of the Alternatives Including the Proposed Action The proposed action is to offer for competitive lease the 193.08 acres of coal bed 1 reserves described in Blue Flame Coal Company's lease by application (COC 49465). The estimated coal contained • within the tract is approximately 1,833,000 tons in-place and 1,008,000 tons recoverable. There are two alternatives associated with the proposed action Alternative 1 - Lease the Hay Gulch Tract, Alternative 2 - No-action. The preferred alternative is to lease the Hay Gulch Tract. A. ALTERNATIVE 1-Lease the Hav Gulch Tract Blue Flame Scenario - If Blue Flame is the successful bidder, the lease area would be entered from the existing Blue Flame mine workings. Extensive reworking of the present mine site would be required to develop a working mine. The addition of a new portal would be required along with the construction and upgrading of a tipple, office, warehouse, bath house, scale, electrical transmission system, septic tanks and drain field. In addition, a water impoundment structure would need to be constructed. Major rehabilitation to the existing underground workings would also be required before they could be used for access or ventilation purposes. Mining of the tract would be by the room-and-pillar method with panel development off of main and submain entries. Room-and-pillar mining is a very versatile method which allows flexibility in mine planning and development and is best suited for a tract of this size and • 6