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lands within the State. <br />Pursuant to the cooperative aereement, federal coal lease holders in Colorado must submit pemiii <br />application packages to OSNI and Colorado DMG for proposed minutg and reclamation operations <br />on federal lands in the State. <br />Colorado DMG reviews the packages to ensure that the permit application complies with the <br />permitting requirements and iliat the coal mining operation will meet the approved permanent <br />program's performance standards. OSM reviews the package to ensure that the coal mining <br />operation will meet the Federal Indian program performance standazds. Tf it does comply, Colorado <br />DMG issues the lessee a pern-at to conduct coal mining operations oa the federal lands portion of <br />the project area and OSM issues the lessee a permit to conduct coal mining operations on the Indian <br />lands portion of the project area. OSM, BLM, and other federal agencies review the pennit <br />application package to ensure that it complies with the terms of the coal lease; the requirements of <br />the Mineral Leasing Act of 1920; (MLA); the National Environmental Policy Act of 1969; and other <br />federal laws and their attendant regulations. <br />OSM recommends approval, approval with conditions, or disapproval of the MLA mirtiag plan to <br />the Assistant Secretary - Land andMinerals Management. Before the muvng plan can be approved, <br />BLM and the surface-managing agency (ifother than BLM) must concur with this recommendation. <br />Colorado DMG and OSM jointly enforce the performance standards azd permitrequirements during <br />• the mine's operation and have joint authority in environmental emer;;encies. OSM retains oversight <br />responsibility for all enforcement. BLMhas authorityin those emerg :.cy situations where Colorado <br />DMG or OSM inspectors cannot act before environmental harm or ~_'amaae occurs. <br />Background <br />The Hay Gulch azea has historically been a coal producing area. Nuriierous abandoned mines exist <br />tluoughout the Hay Gulch drainage. However, except for the King Coal mine, there are currently <br />no active coal mining operations in the Hay Gulch area or in La Plata County. <br />National King Coal currently has approximately 1209 acres underFedetal lease, approximately 160 <br />acres under State lease, and approximately 541 acres under private lease which afford minable coal <br />reserves to the underground room and pillaz operation. All of these Lease areas are currently <br />permitted by Colorado DMG. The surface facilities at the mine aze located on approximately 11 <br />privately owned acres <br />The total remaining recoverable reserves in coalbed I as ofMay 26, 2000 contained on leased lands <br />controlled by NatianaI King Coal are approximately i,9v0,000 tons. <br />Production Data -The current operation mines entirely within the tipper Menefee coal seam just <br />south ofthe East Alkali Tract. The cun•ent mine is capaoie of producing up to 3C^v,00C tons,'year; <br />• and maximum annual federal production to date was 262,481 tons which occurred in 1998. The total <br />