2010-03-03_PERMIT FILE - X201023101

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Wildlife: The sagebrush, pastureland and mixed brush vegetation types in this area support a variety of wildlife species. Information on wildlife in the vicinity of the Sage Creek area was obtained from federal and state agencies, as well as, site-specific studies for adjacent coal properties. BLM and CDOW, in partnership with CNHP, keep information on area wildlife including big game and game birds and other species of concern. This includes federally- and state-listed threatened and endangered (T&E) species, and other species considered to be rare or of special interest. Seneca Coal Company (SCC) conducts annual site-speck surveys of the Sage Creek area as part of its mine permit reclamation monitoring requirements for both the Seneca H and Yoast mines. Big Game: The project area provides good year-round habitat for deer, elk and pronghorn. The CDOW and U.S. Fish and Wildlife Service (USFWS) have identified winter range and critical winter range within the project and adjacent areas (Natural Diversity Information Source; http://www. ndis.nrel.colostate.edu; accessed 4/7108). The latest aerial surveys conducted in 2007 by SCC mapped elk herds wintering along the eastern edge of the project area. Raptors: The project area contains potential habitat for raptors, including known nesting sites in the sandstone cliffs along the eastern and southern boundary. CDOW data includes historic nest sites of golden eagles, red-tailed hawks, and other Buteo species. Adjacent areas contain historic nest locations for great horned owl and prairie falcon. Bald eagles are listed as a state threatened species. CDOW data shows a historic bald eagle nest location approximately 2 miles north of the project area, as well as, winter range along the Yampa River corridor. The ferruginous hawk and peregrine falcon are state listed species of concerns, as well as on the BLM's sensitive species list. Their occurrence in the area is likely, however, there are no known nest locations in or near the Sage Creek area (CDOW data shows the nesting distribution for the ferruginous hawk further to the west in Moffat County). Game Birds: Greater sage grouse and Columbian sharp-tailed grouse (both state and BLM species of concern) are known to inhabit and/or utilize the area. Map 3, PSCM 2010 Exploration Program - Grouse Lek Locations, shows grouse habitat in the project area. CDOW mapping, as well as SCC site-specific surveys has identified 10 sage grouse (2 active) and 16 sharp-tailed grouse leks (13 active) within or immediately adjacent to the proposed Sage Creek project boundary. Additional leks likely exist in the general vicinity. CDOW, in partnership with federal land management agencies, recently implemented a conservation plan for the greater-sage grouse (Colorado Greater-sage-grouse Conservation Plan, CDOW, 2008). The plan recommends a 0.6 mile breeding season buffer for Greater sage-grouse and a 0.4 mile breeding season buffer for Columbian sharp-tailed grouse. Sage Creek has consulted with the CDOW regarding potential impacts to grouse habitat in the exploration program area. CDOW biologists surveyed the 15 proposed drill sites in October 2009 and do not anticipate any unacceptable impacts to grouse the lek sites and or breeding habitat as a result of the exploration activities. However, CDOW has recommended an appropriate season for activities at each exploration site to minimize potential impacts to grouse as outlined below: Early Season Drilling March 1 to July 1: ccu049, ccu051 Mid Season Drilling July 1 to September l: ccu050, ccu051, ccu059, ccu060, ccu061 Late Season Drilling September 1 to March 1, 2011: ccu053, ccu057, ccu061 Any Season Drilling: ccu049, ccu052, ccu054, ccu055, ccu056, ccu062, ccu063 The CDOW wildlife consultation for this exploration program is provided in Appendix D. In addition, Sage Creek Holdings will conduct a field reconnaissance prior to beginning exploration activities to ensure that the drill pad is not directly on top of an active lek. If necessary, a drill pad encroaching on a lek site will be moved to a suitable location further from the active lek site. Sage Creek Project - 2010 N01 6 02124110