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• Colorado DMG reviews the packages to ensure that the permit application complies with the <br />pernmitting requirements and that the coal mining operation will meet the approved permanent <br />program's performance standards. if it does comply, Colorado DMG issues the lessee a permit <br />to conduct coal mining operations. OSM, BLM, and other federal agencies review the pennu <br />application package to ensure [hat it complies with the terms of tlme coal ]ease; the requirenments <br />of the Mineral Leasing Act (MLA) of 1920; the National Environmental Policy Act of 1969; and <br />other federal laws and their attendant regulations. <br />OSM recommends approval, approval with conditions, or disapproval of the MLA mining plan <br />to the Assistant Secretary -Land and Minerals Management. Before the mining plan can be <br />approved, BLM and the surface-managing agency (ifolher than BLM) must coacur with this <br />recommendation. <br />Colorado DMG enforces the performance standazds and permit requirements during the mine's <br />operation and has primary authority in environmental emergencies. OSM retains oversigimt <br />responsibility for this enforcement. BLM has authority in those emergency situations where <br />Colorado DMG or OSM inspectors cannot act before environmental harm or damage occurs. <br />Background <br />The Hay Gulch azea has historically been a coal producing azea. Nunmerous abandoned mines <br />• exist throughout the Hay Gulch drainage. However, except for the King Coal mine, there are <br />currently no active coal mining operations in the Hay Gulch area or in La Plata County. <br />National King Coal currently has approximately ],047.79 acres under Federal lease, <br />approximately 160 acres under State lease, approximately 360 acres underprivate lease, and 120 <br />acres leased from the Ute Mountian Ute Indian Tribe which afford minable coal reserves to the <br />operation. All of these lease areas are currently permitted with Colorado DMG. All of the lease <br />areas are mined by an underground method. The surface facilities at the mine are located on <br />approximately 11 privately owned acres. <br />The total remaining minable reserves in coal bed I as of August 9, 1999 contained on leased <br />lands controlled by National King Coal are approximately 1,333,440 tons. <br />To provide for its current market demands, National King Coal produces on average 200,000 to <br />280,000 tons of coal, annually. Total mine production for 1998 was 283,214 tons. Federal lease <br />production for 1998 was 262,481 tons. Lease production of Ute Mountain Ute lands was <br />approximately 4,985 tons, and approximately 15,745 tons from private production. There was <br />no production from the Colorado State lease. <br /> <br />