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• Colorado state lease. Coal sales for 1995 expressed as a <br />percentage are as follows: <br />Cement Production 80-85$ <br />Electric Utilities (Japan) 12-15$ <br />Domestic 3- 4$ <br />Tourist Train 1- 2$ <br />As a note of interest, National King Coal also supplies the <br />narrow gauge railroads (tourist trains) in Durango, Colorado <br />and Chama, New Mexico. <br />Since there are no freight trains serving the area, trucking <br />is the only method of transporting the coal to its markets in <br />New Mexico, Arizona, and Colorado. This is done utilizing the <br />services of 8-30 ton trucks provided by three major and <br />several independent operators. These trucks are operated by <br />a force of approximately 18 drivers. The coal buyer pays the <br />freight, which generates an additional $3.5 million annually <br />to "satellite industry" for this provided service. <br />The mine supplies coal for residential heating to .local <br />customers who pick it up in their own trucks or have it <br />delivered to their homes. This is important to the area <br />because very few mines in other areas produce or sell lump and <br />• stoker coal. <br />II. DESCRIPTION OF THE ALTERNATIVES INCLUDING THE PROPOSED ACTI N <br />A. Alternative 1 - ProAOSed Action <br />The proposed action is to modify existing coal lease C- <br />29125 by adding 100 acres of coal bed 1 reserves and <br />modify existing coal lease COC 49465 by adding 160 acres <br />of coal bed 1 reserves. Adding this 260 acres would <br />increase the C-29125 lease acreage to 340 acres and the <br />COC 49465 lease acreage to 354 acres. The estimated <br />minable coal reserves for coal bed 1 within this <br />modification area is 2.5 million tons with approximately <br />1.5 million tons estimated as being recoverable. At the <br />current rate of production (200,000-250,000 tons/yr) the <br />life of mine will Le extended approximately 7 years. The <br />tract is adjacent to and south of the existing C-29125 <br />lease. <br />The applicant proposes to enter the proposed modification <br />area via existing underground workings from the west <br />along the north boundary and project the underground mine <br />workings to the south using the room-and-pillar method of <br />mining. The mining plan consists of development of main <br />• <br />