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Chapter 1 Purpose and Need 1.2 PURPOSE OF AND NEED FOR ACTION The purpose and need for this Federal action is to lease additional Federal coal reserves in the Dry Fork LBA tract for economic development and production of the coal, consistent with applicable laws and regulations. The purpose of this FEIS is to evaluate the potential environmental consequences of leasing additional Federal coal lands for underground coal resource development. Ark Land made application to obtain the Dry Fork LBA tract to add reserves to the existing reserve base and to extend the life of the West Elk Mine. If Ark Land were the successful bidder at a potential lease sale, then MCC would extract coal from this lease tract as part of a logical extension of the West Elk Mine current underground longwall mining activities. MCC holds a permit with the Colorado Division of Minerals and Geology (CDMG) for the West Elk Mine. The West Elk Mine was opened in 1981 and presently produces coal from several existing Federal coal leases. The coal mined at the West Elk Mine, as well as from other mines in the North Fork Valley, is a high British Thermal Uni[ (BTU), low sulfur, low ash coal. It is considered a "clean coal." Its use in industry helps meet standards of the Clean Air Act. As such, there is a demand for coal from the West Elk Mine and other mines in the North Fork Valley for electric power generation. Recovering these Federally-administered coal reserves ensures that they would not be bypassed or rendered inaccessible. 1.3 LEASING PROCESS, AUTHORIZING ACTS AND RELEVANT POLICIES, PLANS AND PROGRAMS This FEIS is prepared to inform Federal agency decision makers, publicly disclose the probable environmental impacts of coal leasing and future development of the coal reserves, and establish protections in the form of lease stipulations for surface resources. In order fora mining company to access Federal coal reserves, the company must apply to lease the Federal lands for development of the coal resource. An application is submitted to the BLM, who administers [he Federal mineral estate on all Federal lands. BLM initiates the lease consideration process, which ensures that a NEPA analysis is completed. BLM directives indicate the need to offer Federal coal in quantities responsive to market conditions and assure maximum economic recovery of mineable Federal coal reserves. BLM cooperates with the surface management agency (in this case, the Forest Service), which, by agreement, may take the lead on the NEPA analysis. This Federal coal tease application (the Dry Fork LBA tract) is being processed under the authority of the Mineral Leasing Act of 1920, as amended by the Federal Coal Leasing Amendments Act of 1976, and implementing regulations at 43 CFR 3425, Lease-on-Application. The BLM has the mineral leasing authority, and since the Dry Fork LBA tract contains NFS lands, the Forest Service is the surface management agency. Their consent is required before a lease can be offered by the BLM. The Forest Service must also prescribe conditions for protection of non-coal resources. The Forest Service will develop terms, conditions and stipulations that will be attached to the coal lease, should it be offered for sale, to ensure protection of non-coal resources. If the Dry Fork LBA tract is leased, it will be done under a competitive bid at a lease sale. Granting the lease would give the successful bidder (the lessee) exclusive rights [o mine the coal but does not authorize actual mining or surface disturbing activities. This FEIS documents the potential environmental impacts associated with leasing these lands for underground coal development. A Reasonably Foreseeable Mine Operations Plan (RFMP), a conceptual mine operations plan, was developed by MCC to aid in assessing potential impacts. The RFMP is described in Section 1.8.1 Reasonably Foreseeable Operations Mine Plan. The RFMP also includes foreseeable uses of the surface lands within the lease tract boundaries for use in the environmental analysis cumulative impacts discussions. Dry Fork Lease-By-Application FEIS 1-3