2012-02-13_REVISION - C1981012 (8)

Home Browse Search

Project Name New Elk Coal Company Coal Lease CPW Region Name HP, RM, SE, NW, NE, SW, SE Southeast ' State Park Name or Wildlife Area Number 11 • SWA, SHA, or SPU Name For Wildlife projects, provide the name of the associated SWA, SHA, or SFU, or the dosest one to the proles. Bosque del Oso SWA County or Counties Las Animas County Location For example, 'Property is 5 mills east of Smithtown on 00." Property is approxnnately25 miles west of Trinidad, CO Project Description/ Purpose/ Rationale/ Recommendation Please state what genera' type of real estate transaction is being requested, if known (e.g., lease renewal, public access easement, oil & Bas pipeline easement, etc.). Explain why this project is important In terms of such things as CPW priorities and strategies, spedes of concern, recreation, wildlife habitat, etc. The Bosque del Oso Is a 29,940 ac. SWA under which the New Elk Coal Company has a coal lease agreement (March 2008) on 15,552.8 acres. New Elk has requested CAW amend the contract to lease the remaining 14,387.2 acres under the current lease agreement at 8% royalty. New Elk has begun to corn merlly produce coal and reserve analysis has determined that the company could begin extracting coal under the new acreage as early as Fall 2012. This amendment would allow the coal company to expand operations to the new . coal nmennm Project History/ Materials Previously Provided to Real Estate unit Summarize the proposed project's history, if any, if any materials on this project have been given previously to anyone In the Real Estate Unit, either attach the materials or describe them and state to whom and when they have been provided. CROW and. New Elk Coal Company negotiated a 20 - year lease agreement In 2008 on 15,552.8 acres of coal reserves under the SWA. All coal processing is off -site of the SWA and surface disturbances are limited to two airshafts that may be built at the south end of the SWA. Two pre ventilation shafts were refurbished during the re- opening of the mine. Mine safety conditions will dictate whether additional ventilation shafts will be required but they are not amid . , ted at this time. Term Length if the requested real estate transaction is a lease, a non- perpetual easement or other transaction that is not permanent, please state the proposed term length, (e.g., ten-year lease). The existing contract is for a term of 20 -years subject to automatic extensions for so long as coal is being produced in paying quantities. This acreage amendment would run concurrent with the existing contract. Date of Expiration if this is an extension of an existing lease or term agreement, what Is the date of expiration of the adsting document? 2027 but with automatic extensions as long as coal is being produced In paying quantities. - Federal Funding Status if this project lnvohres a use or sale of CPW property. SWA acquisition was with Game Cash. No federal funds were used, • please determine if federal funds were used to acquire the property. in order to do this, If the project Involves former DOW property, please call the Federal Aid coordinator {x7244) to determine if federal f+ds were used to purchase the property 002/004 SENT Colorado Parks and Wildlife 12.6. 1 / i a Real Estate Action Proposal Please Complete EVERY section. if not applicable, write N /A. If unknown, write unknown. 02/07/2012 12:29 FAX 7182275297 DOWCOS u_..,... • •• wv.ix.. Page 1 Or