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that the coal can be developed as part of an independent operation <br />and that there is an apparent competitive interest. (See 43 CFR <br />Part 3524.2-1 (a)(ii)). Therefore, the application for modifi- <br />cation is hereby rejected." <br />With the rejection, Energy Fuels requested on May 23, 1974, that Interior <br />offer Lease Application C-20900 for sale under Interior's then-existing <br />"short-term leasing criteria"; but it was not until 24arch 3, 1976, that <br />a "Notice of Competitive Coal Lease Offering by Sealed Bid and Oral <br />Auction, Colorado 20900" was published by Interior. <br />On May 14, 1976, Interior conducted the competitive Lease offering for <br />for C-20900. Energy Fuels and one other bidder participated in the <br />bidding, but the sale was unsuccessful due to the fact that the sealed <br />bids were reported to be less than Interior's presale evaluation. The <br />rules for the bidding procedure had stated that an oral auction would be <br />held following the opening and reading of sealed bids if the sealed bids <br />were less than Interior's predetermined fair market value. Oral bidding <br />was not permitted. <br />• Negotiations between Energy Fuels and Interior continued into the <br />summer of 1978 concerning the acquisition of Lease C-20900. Interior <br />finally announced September 26, 1978 as the date of the second lease <br />sale for C-20900. Energy Fuels participated in the sale and was deter- <br />mined to be the high bidder. Mining commenced on C-20900 immediately <br />upon the approval of the mining plan by OSM on December 8, 1978. The <br />reserves will be depleted by the end of 1979. <br />Federal Coal Lease Application No. C-16284. Federal Coal Lease Appli- <br />cation No. C-16284 covered slightly less than 264 acres, and the acreage <br />encompassed adjoins the eastern boundary of Energy Fuels' Federal Lease <br />No. D-052547. (See Figure 4, Permit Areas and Federal Lease Boundaries, <br />page 12). <br /> The recoverable coal tonnage within C-16284 was deposited along the edge <br /> of Federal Lease No. D-052547 and was located on a small knoll that juts <br />• to the east. The only access to that coal on the nose of the hill was <br />-16- <br />