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NATIONAL KING COAL LEASE APPLICATION C-29125 PURPOSE AtJD NEED The Colorado State Director of the Bureau of Land Management has received from National King Coal, Inc., a competitive short-term lease application dated October 16, 1979. The application C-29125 was submitted under the t•lineral Leasing Act of 1920, Federal Coal Leasing Amendments Act of 1976, and 43 CFR 3425.1-4. The coal reserves are managed by the Montrose District Office of the BLM. The applicant has need for the coal in order to maintain an existing operation at its current level of production. The purpose of the EA is to evaluate potential impacts of the emergency lease upon the physical and socioeconomic environment and to develop mitigating measures to be included as lease stipulations in the event a competitive lease sale is held. II. ALTERNATIVES ALTERNATIVE A -- PROPOSED ACTION The proposed action is to offer for competitive lease, 160 acres (1,670,000 tons) of in-place coal reserves in the~Pueblo or F seam in the Upper tlenefee formation of the Mesa Verde group. This will give the application area a mine life of not more than eight years, if it is mined at the current production rate (90,000 to 125,000 tons per year) of the King oal Mine, Lease - 300. ~ . The land applied for lies in T. 35 N., R. 11 W., NM PM, Sec. 32: SW';. The surface is privately owned and the coal has been reserved to the federal government. See t•laps 1 and 2. _ The application has been reviewed by the U.S. Geological Survey (USGS) and has been found to meet the emergency coal leasing criteria pursuant to 43 CFR 3425.1-4(a)(1)(i ). The total in-place remaining reserves (in the F seam) as of July 1980 contained on lease tract P-058300, where the National King Coal Kline is located, is 470,000 tons. The mineable reserves on lease tract P-058300 are estimated in application C-29125 to be 284,000 tons as of July 1980.