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These reserves are not adequate to meet National King Coal's contracts and local sales. At 70 percent coal recovery (applicant's recovery rate), the mine life is 1.8 years on the existing reserves. Under their present contracts they supply 90,000 to 120,000 tons per year to Ideal Cement Company of Albuquerque, New hlexico, and 10,000 tons per year to Rio Algom Uranium Mill in Utah. They have an agreement with Northwest Alloy Company for the sale of 10,000 to 15,000 tons per year. The local domestic market, i.e., those farmers, ranchers, and business men who get coal delivered to them or pick it up at the mine, account for 9,000 tons _ per year. Two narrow gauge railroads depend upon the coal from the National King Coal Mine and account for approximately 2,000 tons per year. The emergency lease application shows the intention to mine from the present lease tract P-0583G0 into the lease application area C-29125. The present underground workings would be extended south. They have no plans for developing additional surface acreage for coal production on the proposed lease area. They intend to continue using the roar-and- pillar mining method utilizing a continuous miner. Drill and blasting methods may be used to mine the coal as well. The information received in the application does not constitute a formal underground mining permit application as required by 30 CFR 710.11 or 741.11 according to the standards required by 30 CFR 782, 783, 784. It has been used in order to develop an impact analysis. Its use is intended to illustrate one possible plan for developing the federal coal reserves on this tract and does not imply that National King Coal, Inc., will be given any preference in the event that a lease sale is held. In addition, it does not imply that the mining permit application developed from these preliminary plans would comply with the regulations of or be approved by the Office of Surface tlining (OSM) if a lease sale were held and National King Coal, Inc., obtained the lease. Any plan which is ultimately submitted must comply with all applicable federal regulations before it can be approved. Finally, if another company were to obtain the lease, the mining permit application submitted by the company would be the subject of an unsuitability analysis and report and would be -reviewed for compliance with the regulations developed .under the authority of the Surface t4ining Control and Reclamation Act (SMCRA) of 1977. STAGES OF Ih1PLETIENTATION If a lease were issued, mining of~the federal coal reserves would be scheduled to cormence immediately following approval of an underground mining permit. r 4