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�W <br />Environmental Scientists and Engineers, LLC <br />1.2 Purpose and Need for Action <br />The proposed action is to approve and issue a federal coal lease for approximately 1,407 <br />acres of federal lands administered by the BLM pursuant to ColoWyo's March 2005 <br />lease application, as subsequently modified on January 10, 2006. <br />The purpose and need for the proposed action are to make the coal resources available for <br />extraction and beneficial use consistent with applicable provisions of: <br />• The National Environmental Policy Act of 1969 <br />• The Mineral Leasing Act of 1920 as amended by Sections 2 and 3 of the Coal <br />Leasing Amendments Act of 1976 <br />• The Federal Land Policy and Management Act of 1976 (FLPMA) <br />• BLM Coal Regulations found at 43 CFR 3400 <br />• The Little Snake Resource Area, Resource Management Plan and Record of <br />Decision (1989) <br />• The Green River -Hams Fork Regional Coal Environmental Impact Statement <br />(EIS) 1984 <br />ColoWyo applied for the subject coal lease to replace existing surface mined production <br />as those reserves are exhausted. ColoWyo estimates that there exists within this lease <br />application area approximately 130 million tons of in- place, low - sulfur coal from the X, <br />B, C, D, E, F, and G seams. Development of this coal reserve would extend the life of <br />the current operation, generating additional federal, state, and county tax revenues. Utility <br />markets for low - sulfur coal are expected to continue strong demand as the Phase II <br />emission standards of the Clean Air Act are enforced on coal -fired generating stations <br />located in mid - western and eastern states. ColoWyo believes that the fuel quality of the <br />coal reserve underlying the lease tract will maintain its attractiveness to electric utilities. <br />ColoWyo's history of successful operations and the existence of rail transport facilities, <br />extensive mining support infrastructure, and a mining -based economy in the area suggest <br />continued success of surface coal mining in this area. <br />1.3 Authorizing Actions <br />The United States Department of the Interior, through the BLM, conducts leasing of <br />federal coal resources to assure adequate coal supplies are available to meet long -term <br />national energy requirements. The BLM has the responsibility and authority to determine <br />if a coal lease is to be issued for the proposed lease area. <br />1.4 Agency Responsibilities <br />The proposed federal coal leasing and the planned surface mining and related activities <br />will be designed to effect full compliance with all applicable federal, state, and local laws <br />and regulations. Specifically, coal lease acquisition and management must comply with <br />applicable land management regulations and guidelines of the BLM. Additionally, any <br />mining plan application that may result from BLM's leasing decision must adhere to <br />applicable regulations and guidelines set forth by the Office of Surface Mining <br />P •PROJt :Colcm 0188 EA Final•BLM -+.FA ('.dlom418 01 nb.dnc <br />2 <br />