2008-02-22_APPLICATION CORRESPONDENCE - C2008086 (45)

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CHAPTERONE Purpose and Need 1.1 INTRODUCTION This Environmental Impact Statement (EIS) has been prepared to analyze the environmental consequences of the development of the Red Cliff Mine project as proposed by CAM-Colorado, LLC (CAM). The Red Cliff Mine would be a new underground coal mine located in northwestern Colorado. The EIS is asite-specific analysis of potential impacts that could result from the implementation of a Proposed Action or alternatives to the Proposed Action. The components of the Proposed Action are shown on Figure 1-1, Proposed Action, and Figure 1-2, Coal Lease Area. The physical area that encompasses all of the components of the Proposed Action is termed the Project Area. Impacts on private as well as federal lands are disclosed and analyzed. The need to prepare an EIS in accordance with the National Environmental Policy Act (NEPA) was triggered by two applications submitted by CAM to the Bureau of Land Management (BLM). CAM submitted an Application for Transmission and Utility Systems and Facilities on Federal Lands on September 27, 2005 for railroad facilities (Appendix A, Permit Applications), and they submitted a Land Use Application and Permit on February 10, 2006. The right-of--way (ROW) and use of public lands are necessary to support expansion of the CAM mining operation. Two additional connected actions will also be analyzed in the EIS. BLM received a request (Lease by Application [LBA]) from CAM to lease federal coal on approximately 14,466 acres adjacent to CAM's existing leases. CAM's Lease Application Boundary is shown on Figure 1-2, Coal Lease Area. BLM determined that, if this coal were to be leased, it would be by a competitive bid process. BLM also received a separate Application for Transmission and Utility Systems and Facilities on Federal Lands from Grand Valley Power (GVP) dated June 8, 2007 to construct an electric transmission line for the power requirements for the Red Cliff Mine. This application is also included in Appendix A. Other agencies and government entities have been invited to participate in the NEPA process as cooperating agencies. These include: • U. S. Army Corps of Engineers (USAGE) • Office of Surface Mining, Reclamation, and Enforcement (OSM) • Colorado Division of Reclamation, Mining, and Safety (CDRMS) • Mesa County • Garfield County 1.2 BAC KG RO U N D The basic purpose of this project is to mine, transport, and offer coal for sale at competitive prices to help supply the energy needs of the U. S. The purpose of the proposed Red Cliff Mine project is to provide better access to CAM's existing coal leases and provide access to the adjacent potential federal coal leases. CAM proposes to utilize public and private lands to 1-1