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_ ~ <br />Oxbow has applied for a federal coal lease with the BLM to increase their coal <br />reserves. The BLM is currently preparing an Environmental Impact Statement for <br />that coal lease, as well as an adjacent lease which is being sought by Bowie <br />Resources at the nearby Bowie No. 2 Mine. These leasing processes are <br />generating substantial interest and input from the community in the Paonia area. <br />The Division has received comments from dozens of citizens related to future <br />mining plans at the Bowie Mine. <br />Division representatives have established a dialogue with the Delta County <br />Public Lands Partnership, the Western Slope Environmental Resources Council, <br />the Terror Creek Ditch Company, the BLM, the US Forest Service and other <br />interested parties, in an attempt to address issues proactively and keep the state <br />permitting process working effectively. The Division has also participated in <br />public outreach meetings organized by the Public Lands Partnership and the <br />BLM. <br />Oxbow has submitted plans to the Division to develop new mine infrastructure <br />necessary for mining the new coal seam which is the subject of their federal coal <br />lease application. We anticipate that they will be submitting other permit <br />revisions to expand their permit into the federal coal as the federal lease process <br />nears completion. The BLM anticipates finalizing the coal lease EIS in <br />Decembef or January. The leases may be awarded shortly afterwards. <br />