2012-03-07_PERMIT FILE - C2010088 (28)

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McClane Canyon Mine Expansion and Fruita Loadout Facility Biological Assessment 1.0 INTRODUCTION McClane.Canyon Mine (Mine), owned and operated by CAM - Colorado, LLC (CAM) in Garfield County, provided 280,000 tons of coal per year to the Cameo Power Plant located in Mesa County. The Mine produced coal from -the Cameo Seam using conVentional underground room and pillar mining techniques. The Cameo Power Plant was the Mine's only customer but the plant closed at the end 2010. The Mine was idled at the end of 2010 and proposes to increase coal production to 500,000 clean tons of coal per year when new markets are obtained. CAM submitted a Request for Lease Modification to the Bureau of Land Management Grand Junction Field Office (BLM -GJFO) for 320 -acres adjacent to federal coal lease C- 0125439 to ensure long -term access to unmined reserves-located north and south of the existing mine workings within the McClane Canyon Mine leasehold. The lease modification would reduce the risk 'of bypassing millions of tons of federal coal within the leasehold. The Mine intends to process coal in an air jig plant located at the Mine site. The cleaning plant would necessitate construction of a new permanent waste rock stockpile and runoff retention /sedimentation pond at the Mine site. The coal in the Cameo Seam is ranked as high- volatile C bituminous coal but a higher quality product achieved with the air jig plant would meet a wider array of contract specifications. Cleaned coal would be transported by truck to a new coal storage location, loading facilities, and rail spur at the proposed 'Fruita Loadout Facility located west of the old Fruita Refinery in Mesa County (Map*!). Coal produced by the Mine would be transported from the Loadout Facility by Union Pacific Railroad to new markets east and west of Colorado. BLM administers the federal coal leasing program under the Mineral Leasing Act of 1920. A federal coal lease grants the lessee the exclusive right to obtain a mining permit, which would allow coal mining on the leased tract, and be subject to the terms of -the lease, the mining permit, and applicable state and federal laws. Before a new lease can be mined, the lessee must obtain approval of a detailed permit to conduct mining operations. After a lease has been issued by'the BLM but prior to mine development, the lessee must file a permit application package with the Colorado Division of Reclamation, Mining and Safety (DRMS) for a mining permit and approval of the mining plan. An analysis of the detailed site - specific mining and reclamation plan occurs at that time, which `involves the determination of potential effects on federally listed threatened and endangered species. As part of this analysis, the Office of Surface Mining Reclamation , and Enforcement .(OSM) serves as the Federal contact for coal permitting actions and serves as the lead agency on Endangered Species Act (ESA) section 7 consultations. OSM, in coordination with 'BLM, has prepared this Biological Assessment (BA) for submittal to the U.S. Fish and Wildlife Service (FWS), Western Colorado Ecological Services Field Office, Grand Junction, Colorado. The purpose of this BA is -to evaluate effects of the Proposed Action - construction and operation of the McClane Canyon Mine expansion and lease modification, and construction and operation of the Fruita Loadout Facility - in sufficient detail to determine effects on federally listed endangered, threatened, and species proposed for listing. Section 7 of the ESA, as amended, requires federal agencies to consult with the FWS to ensure that any action the agency authorizes, funds, or implements is ' not likely to jeopardize the continued existence of a listed species, threaten a species, or result in the destruction or adverse modification of designated critical habitat (16 United States Code (USC) section 1536((a)(2)(1988)). This BA is intended to fulfill the consultation requirements of section 7(a)( with the Proposed Action by providing adequate.detail to deferrinine potential effects to the ESA - listed threatened and endangered species and designated critical habitats.