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s s <br />Mr. David Shelton, Director <br />February 24, 1981 <br />Page Six <br />(1) to impair the Government's ability to obtain necessary <br />information in the future; or (2) to cause substantial <br />harm to the competitive position of the person from <br />wham the information was obtained. (Emphasis added) <br />Using the narrative description above regarding <br />the analogous treatment of the FOIA §(b)(4) exemption, the <br />following assertions are submitted in support of DCC's claim <br />of confidential treatment of its hydrology report: <br />(1) "Customarily Confidential" Test. Most, if <br />not all, Colorado coal operators wish to and/or have taken <br />steps to protect as confidential their hydrologic and geologic <br />investigations, reports, etc. which have only recently been <br />required as part of MRP applications. These hydrologic/ <br />geologic studies and reports usually describe or supplement <br />other descriptions of the coal deposit which upon close <br />analysis by a competitor can lead to an identification of <br />certain mining and/or reclamation costs of the mining <br />operation. As such hydrologic studies have been required in <br />all MRP applications for only a short time, the "customary" <br />aspect of this subject should be examined only over the past <br />few years. In this writer's experience, he has known of no <br />instance where coal operators have exchanged such hydrologic <br />information, except where some financial investment by the <br />reviewing company was an inducement to the exchange of such <br />information. Hydrologic studies done for or by coal companies <br />have customarily been viewed as a valuable asset of the <br />owning company and customarily not released to the public at <br />large, directly, or indirectly through public agencies. <br />(2) "Impair Government's Ability to Obtain Such <br />Information in the Future" Test. It is our understanding <br />that a number of coal operators have and are filing claims <br />of confidentiality on hydrology and other specific data <br />reports. An increase of such claims could be viewed as a <br />potential impairment of the CMLR's ability to secure such <br />information in the future, particularly if all such claims <br />for confidentiality are unilaterally denied by the CMLR. A <br />claim of confidentiality, however, does not now impair the <br />CMLR from using this information to meet its statutory <br />obligations. If CMLR were to deny, on some theory of legal - <br />authority, all pending and future claims of confidential <br />information, then it is conceivable that the CMLR might ~ <br />become the subject of either amendatory legislation or law <br />suits challenging the CMLR's authority and action in denying <br />such claims. Such a possible response.could further impair <br />or impede the agency's ability to secure this information. <br />