2008-06-12_GENERAL DOCUMENTS - C1980007 (3)

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• INTRODUCTION AND BACKGROUND SUATI MARY In September 2003, Ark Land Company (Ask Land) filed a competitive coal lease application with the U.S. Department of the Interior (US[ 3I)-Bureau of Land Management (BLM), Colorado State Office under the Mineral Leasing Act of 1920, as amended (30 U.S.C. Section 201.), as implemented by regulations found at 43 CFR 3425. The lands subject to this Lease-by-Appli cation (LBA) are located near Somerset, in Gunnison County, Colorado. The tract is adjacent to the existing underground workings of the West Elk Mine operated by Mountain Coal Company, LLC (MCC). Ark Land and MCC are wholly owned subsidiaries of Arch Coal, Inc. of St. Louis, Missouri. The surface lands involved are National Forest System (NFS) lands administered by the USDA Forest Service (Forest Service) within the Grand Mesa, Uncompahgre, and Gunnison National Forests (GMUG). The coal resources in the Dry Fork Tract are administered by the BLM through the Uncompahgre Field Office in Montrose, Colorado. The BLM accepted the application, prepared a tract delineation report (BLM 2004), and has assigned the Dry Fork LBA tract with Serial Number COC- 67232. The legal description for the Dry Fork LBA tract as applied for by MCC and accepted by B"Llv[ through the tract delineation process is as follows: T. 13 S., R. 90 TV., 6`h P.M. 3. Sec. 11, NV2NI/; 4. Sec. 12, NVzN?J` '/, and NW'/4NE'/4. The tract contains about 1,517 acres. The BLM estimates that the tract contains 17 million tons of recoverable coal (BLM 2004). The coal resource within this LBA tract is limited to coal recoverable by underground mining methods. The Diy Fork LBA tract lies to the southeast of MCC fee (private) coal and fee surface property, south of existing Federal coal leases COC-56447 (Box Canyon lease), and to the east of the southern extension of Federal coal lease C-1362, both held by MCC. Ark Land applied for all the coal seam reserves within the Dry Fork LBA tract. MCC currently extracts coal from the B Seam in the West Elk Mine, to the north of the tract. The West Elk Mine currently mines coal from the B and E Seams to the west and north of the Dry Fork LBA tract. MCC intends to mine E Seam reserves within the Dry Fork LBA tract. The BLM-Colorado State Office and the USDT- Office of Surface Mining Reclamation and Enforcement (OSM) are participating in this EIS as cooperating agencies. PURPOSE OF AND NEED MR ACTION The purpose and need for this Federal action is to lease additional Federal coal reserves in the Dry Fork LBA. tract for economic development and production of the coal, consistent with applicable laws and regulations. 1. Sec. 35, lots 5-7, inclusive, and lots 9-16, inclusive, less and except land in leases C- 1362, and COC56^^-.47; as modified; 2. Sec. 36, W1/2 SW'/4NW'/4, and W'/2SW'/, less and except land in lease COC -56447; as modified: T. 14 S., R. 90 W. 6" P.M 1. Sec. 1; lots 3 and 4; S'/NWV4, SW'/4, W''/2N-VV'/SE'/4, and SW'/4SEV; 2. Sec. 2, lots 1-4, inclusive, S'/zN%, and S'/2; The purpose of this final environmental impact statement (FEIS) is to evaluate the potential environmental consequences of leasing additional Federal coal lands for underground coal resource development. ,Ark Land made application to obtain the Dry Fork LBA tract to add reserves to the existing reserve base and to extend the life of the West Elk Mine. If Ark Land were the successful bidder at a potential lease sale; then MCC would extract coal from this lease tract as part of a logical extension of the West Dry Fork Lease-By-Application FEIS S-1