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C_.gb0_,C0 y <br />rFTW1AA Q. z <br />UMLUW SEIMCE <br />United States Department of the Interior <br />FISH AND WILDLIFE SERVICE <br />Ecological Services <br />764 Horizon Drive, Building B ?.,,s <br />Grand Junction, Colorado 81506-3946 <br />IN REPLY REFER TO: <br />ES/CO: CDRMS <br />TAILS 65413-2011-1-0020 <br />December 16, 2010 <br />Michael Boulay <br />Colorado Division of Mining, <br />Reclamation, and Safety <br />1313 Sherman Street, Room 215 <br />-any-er,_Colorado-8020.3_ __^_______gEC-i_UUB - ---=-------- ----- -- - <br />1?ew a'. M064"44"' <br />Dear Mr. Boulay: U and *0$* <br />The Fish and Wildlife Service (Service) has reviewed your November 10, 2010, letter regarding <br />the proposed expansion of the McClane Canyon Mine (Mine) (Permit Revision Application No. <br />2). The underground Mine is located north of Loma, Colorado in several sections in T. 7S, <br />R. 102W, Garfield County, Colorado. Surface facilities include a new coal cleaning facility, new <br />coal mine waste pile, a sediment pond and topsoil and construction material stockpiles. <br />Terry Ireland of our staff discussed the project with you on December 8, 2010, regarding water <br />depletions associated with the proposed expansion and the interrelated construction of the Fruita <br />loadout facility to move coal from the mine to destinations by rail. <br />On January 10, 2002, the Service issued a biological opinion (BO) under section 7 of the <br />Endangered Species Act for impacts to the endangered Colorado River fishes for the proposed <br />expansion of production from 500,000 tons to 1.7 million tons of coal per year. The water <br />depletion estimate was 7.49 acre-feet per year as a result of the action. However, according to <br />the information you provided, the mine continued to operate below 500,000 tons, at <br />approximately 350,000 tons per year. The current proposal is to "expand" production back to <br />500,000 tons per year. Consequently, the production will not cause an increase in water <br />depletion and no additional formal consultation is required for the mining of 500,000 tons per <br />year. <br />The Mine is also proposing a Fruita loadout facility south of the Mine, near Fruita, Colorado. <br />This load out facility will cause additional water depletions to the Colorado River, which will be <br />reviewed by Office of Surface Mining (OSM). If OSM and the Mine determine that the water <br />depletions associated with loadout facility, or any other activities exceeds 7.49 acre-feet/year, <br />OSM will reinitiate formal consultation with the Service. The owner of the mine has changed <br />from Loadstar Energy Inc. to McClane Canyon Mining, LLC (a subsidiary of Central <br />Appalachian Mining Company). However, the change in ownership does not affect the previous <br />consultation on the Mine.