PERMFILE112199

• Permit No: C1980006
• IBM Index Class Name: Permit File
• Doc Date: 7/31/1980
• Section_Exhibit Name: SUMMARY & LETTER
• Media Type: D
• Archive: No

Suly 31, 1980
Page 2

request for vacious regulatory approvals and permits is to allow fur [lie
Wining and exploring of an adjacent area encompassed within a recently issued
Federal Coal Lease C-22777 and to bring ilarr Strip 111 as so expanded, and the
11:irr Prep Plant into compliance with the Permanent Regulatory Program.
The within application of. Kerr Coal for approval of its mining plan and for
state and federal permits is the next and last step prior [o the commencement
of mining nn Federal Lease C-22777 issued on July 1, 1980, pursuant to [he
Emergency Leasing Criteria set forth in 43 CFR Part 3425. Mining of the coal
resucves contained in Federal Lease C-22777 is necessary to maintain employ-
ment and production levels and to meet Sanding contracts.
:Jithou[ regulatory approval of the accompanying application by Fehruary 1,
Io81, coal production of Kerr Coal will plummet and its operations will he
severely curtailed, if not halted altogether. Employees wilt he laid off,
defaults under existing contracts will occur, and in [he broader perspective,
the nation's critical energy shortage will be aggravated. 1oreover, failure
to obtain all necessary regulatory approvals by February 1, 1981 will result
in an absolute increase of 14Y, in the unemployment rate in Jackson County,
Colorado when the 114 emnloyees of Kerr Coal are laid off.
In an effort to bring [he problem to [he attention of the Office of Surface
inning Reclamation 6 Enforcement ("OSit") and "1LRB and to facilitate and expe-
dite review of this application, Kerr Coal has held a series of meetings with
_ OSM and MLRR repcesen[atives throughout the spring and summer of 1980 for the
purpose of discussing and reaching some understanding on the permit format,
design criteria for certain structures in the mining area, and environmental
baseline information requirements in a wide variety of areas. The substance
of these discussions, including detailed confirmation of baseline parameters,
has heen set foctli in correspondence from Kerr Coal to OSM and representa-
tives of the Colorado MLRR.
Moreover, we must emphasize that [he applicatLon is not for a new mine Sn
virgin country. On the contrary, the application encompasses an existing
operation that has heen producing significant quantities of coal for over
five years. Kerr Coal is a well-respected operation in the local community
with an excellent reclamation record. Equally important, the application
does not seek to expand the existing levels of production requiring added
employees or significantly greater levels of disturbance. Mining will simply
proceed logically into the adjacent newly acquired Federal Coal Lease. No
new railroad transportation or support facilities will be required. On the
other hand, delay in the approval of the permit application will have devas-
tating repercussions on the community and the prospects for successful recla-
mation of previously disturbed areas.
Both OSM and the State have significant familiarity with on-going operations
of Kerr Coal. The MLRB has evaluated the Kerr Coal operation thoroughly in
the course of numerous permit and permit admendment applications over [he
past several years. Since much of [he present application covers on-going
operations which have been scrutinized previously under [he Interim Regula-
tions and prioc state law, it 1s hoped [ha[ the past familiarity will allow