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th15 paragraph will provide that annual production from the lease <br />• area shall not be greater than average annual level of production <br />existing as of September 27, 1977, or the amount needed to meet the <br />annual requirements of the contract existing on September 27, 1977; <br />or <br />(2) the proposed lease is necessary because mining operations <br />existing on September 27, 1977, are being conducted that could <br />remove the coal deposit as part of an orderly mining sequence; and <br />the size, location, or physical characteristics are such that <br />removal of the coal reserves sought to be leased, except fn con- <br />junction with ongoing operations, would (a) involve costs demonstrably <br />so high that it would not be sufficiently profitable to develop the <br />deposit Tn the reasonably foreseeable future or (b) significantly <br />increase environmental damage. The extent of the proposed lease <br />cannot be greater than necessary to provide coal far five years in <br />the future at the average annual level of production existing as of <br />September 27, 1977. <br />If the bidder is other than the applicant, the documents purporting to <br />meet the criteria must be enclosed with the sealed bid. <br />BID OPENING: At 2:00 p.m., August 7, 1979, in Room 708, Colorado State <br />Bank Building. Denver, Colorado, the authorized officer will open and <br />read all of the sealed bids. In the event of tying bids, the tying <br />bidders will be allowed to submit additional oral bids to break the tie. <br />The highest bid will be announced and the successful high bidder will be <br />notified in writing after the State Director has made his determination. <br />The Department of the Interior reserves the right to reject any and all <br />bids and also the right to offer the lease to the next highest qualified <br />bidder if the successful bidder fails to obtain the lease for any reason. <br />If any bid is rejected, the deposit made on the day of the sale will be <br />returned. <br />CONSULTATION WITH THE ATTORNEY GENERAL: In accordance with the Federal <br />Coal Leasing Amendments Act of 1976, the high bidder, as a prospective <br />lessee, will have to disclose the nature and extent of its coal holaings <br />to the Department of Justice before the Bureau can issue the lease. The <br />United States will maintain the confidentiality of all submitted data in <br />accordance with its dutf es under the Privacy Act and the Freedom of <br />Information Act. <br />DEFERRED BONUS: Payment of the bonus bid shall be on a deferred basis. <br />One-fifth of the bonus will be payable on the day of the sale. The <br />balance shall be paid in equal annual installments due and payable on <br />the first four anniversary dates of the lease. If a lease is relinquished <br />or otherwise terminated, the unpaid remainder of the bid shall be immedi- <br />ately payable to the United States. <br />DAYMENTS AND BONDING REpUIREMENTS: Prior to the issuance of a lease, <br />the successful bidder will be required to furnish: <br />1. First year's_ rental, 5870.00. <br />2. Advertising costs of this offering. <br />3. Lease band in the amount of $25,000.00. <br />4. Four executed copies of the coal lease form. <br />• <br />