2011-10-03_APPLICATION CORRESPONDENCE - C1981015

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McClane Canyon Mine Expansion and Fruita Loadout Facility Biological Assessment restoring the area to the approximate original contour. Most of the rail loop and facilities are constructed on land classified as Industrial. It is barren land that was previously used as a land farm area for a now closed gilsonite refinery. The land farm areas consist of barren evaporation ponds. The reclamation plan for this industrial land is to remove facilities, clean up coal fines, and grade the area to the approximate original contour. The industrial area would not be seeded or mulched. If Haul Road #1 is not annexed by the City of Fruita, it would be reclaimed, as well. 3.0 CONSULTATION HISTORY The following chronology documents consultations by FWS on developments at the McClane Canyon Mine and the Fruita Loadout Facility: • OSM submitted a BA on October 4, 1985 and an amendment (February 20, 1986) to allow Salt Creek Mining Company to continue operating its underground McClane Canyon Mine. The Proposed Action included an average annual water depletion of 1.5 acre -feet. In their March 3, 1986 Biological Opinion (BO), FWS concurred (SE /SLC: 6- 5 -86 -F -003) that water depletions from the Upper Colorado River Basin could have detrimental effects on listed fish species but a contribution of $22.00 for depletion of 1.5 acre -feet was an appropriate conservation measure to offset impact to listed species and would avoid jeopardy of the species. • On March 2, 1992 OSM submitted a letter to FWS stating that a proposed mining plan modification and permit revision at the McClane Canyon Mine would cause an average annual water depletion of 5 acre feet (3.5 acre feet more than the 1.5 acre feet consulted on in 1986). FWS provided a BO on April 16, 1992 (FWS /GJ- 6- CO -92 -F -007) that addressed the additional average annual depletion of 3.5 acre feet of water from the upper Colorado River. FWS reiterated that water depletion impacts could be offset by a one -time contribution to the listed species' Recovery Program and legal protection of in- stream flows pursuant to State Law. Salt Creek Mining Company paid $41.93 in November 1992. • On December 20, 1999 OSM reported to FWS that the McClane Canyon Mine increased coal production and increased water usage that would cause an annual depletion of 0.9 acre feet. On January 11, 2000 FWS responded to OSM (ES- 6- RO -95 -F- 001 -GJ291 MS 65412 GJ) that fees for depletions 5100 acre -feet were no longer required (citing July 8, 1997 intra- Service BO) and the depletion fee for the action would be waived. • On December 17, 2001 OSM informed FWS that annual production of coal by McClane Canyon Mine would increase from 500,000 tons to 1.7 million tons which would result in an average annual water depletion of 7.49 acre feet. On January 10, 2002 FWS responded to OSM (ES- 6- RO -95 -F- 001 -GJ316 MS 65412 GJ) that fees for depletions 5100 acre -feet were no longer required (citing July 8, 1997 intra - Service BO). FWS stated "if new information becomes available, if a new species becomes listed, if incidental take occurs, if the total average annual amount of water depleted by this project changes, or if any other project element changes from what is described... ", then formal section 7 consultation should be reinitiated." • On November 10, 2010 DRMS notified FWS that McClane Canyon Mining filed Permit Revision Application No. 2 (PR -2) to expand existing surface facilities and the mining plan. The PR -2 included increased production to 500,000 clean tons per year, new coal cleaning facility, new coal mine waste pile, sediment pond, and topsoil and construction materials stockpiles. On December 16, 2010 FWS replied to DRMS (ES /CO: CDRMS TAILS 65413- 2011 -1 -0020) noting that the depletion of 7.49 acre -feet was consulted on in their 2002 BO; consequently there was no need for formal consultation. FWS stated, "if OSM and the Mine 13