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then transmitted to the successful bidder for signature and submission <br /> of the bond. The State Director then makes the decision approving the <br /> bond and issuing the lease. Copies of the decision are then <br /> • distributed to the BLM District Office, the Office of Surface Mining <br /> (OSM) and the Minerals Management Service (MMS) . <br /> SMCRA gives OSM primary responsibility to administer programs that <br /> regulate surface coal mining operations on federal lands and the <br /> surface effects of underground coal mining operations on federal <br /> lands. Pursuant to Section 503 of SMCRA, the Colorado Division of <br /> Minerals and Geology (CDMG) developed, and the Secretary of the <br /> Interior approved, a permanent program authorizing CDMG to regulate <br /> surface coal mining operations and surface effects of underground coal <br /> mining on non-federal lands within the State of Colorado. In <br /> September 1982, pursuant to Section 523 (c) of SMCRA, CDMG entered into <br /> a cooperative agreement with the Secretary of the Interior authorizing <br /> CDMG to regulate surface coal mining operations and surface effects of <br /> underground mining on federal lands within the state. <br /> Pursuant to the cooperative agreement, federal coal lease holders in <br /> Colorado must submit permit application packages to OSM and CDMG for <br /> proposed mining and reclamation operations on federal lands in the <br /> State. The CDMG reviews the packages to ensure that the permit <br /> application complies with the permitting requirements and that the <br /> coal mining operation will meet the approved permanent program's <br /> performance standards; if it does comply, CDMG issues the lessee a <br /> permit to conduct coal mining operations. The OSM, BLM, and other <br /> federal agencies review the permit application package to ensure that <br /> it complies with the terms of the coal lease; the requirements of the <br /> • Mineral Leasing Act of 1920; the National Environmental Policy Act of <br /> 1969; and other federal laws and their attendant regulations. The OSM <br /> recommends approval, approval with conditions, or disapproval of the <br /> mining plan to the Assistant Secretary - Land and Minerals Management. <br /> Before the mining plan can be approved, BLM and the surface-managing <br /> agency (if other than BLM) must concur with this recommendation. <br /> The CDMG enforces the performance standards and permit requirements <br /> during the mine's operation and has primary authority in environmental <br /> emergencies. The OSM retains oversight responsibility for this <br /> enforcement. The BLM has authority in those emergency situations <br /> where CDMG or OSM inspectors cannot act before significant <br /> environmental harm or damage occurs. <br /> The information submitted in the coal lease application by Mountain <br /> Coal Company does not constitute a formal underground mining permit <br /> application. It has been used in order to develop an impact analysis. <br /> Its use is intended to illustrate one possible plan for developing <br /> federal coal reserves on this tract and does not imply that Mountain <br /> Coal Company would be given any preference in the event that a lease <br /> sale is held. In addition, it does not imply that the mining permit <br /> application developed from these preliminary plans would comply with <br /> the regulations or be approved by the Colorado Division of Minerals <br /> and Geology if a lease sale were held and Mountain Coal Company <br /> . obtained the lease. Any plan which is ultimately submitted must <br /> comply with all applicable state and federal regulations as described <br /> above before it can be approved. <br /> Page 3 <br />