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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />COLORADO <br />Phone: (303) 866 -3567 <br />D I v IS 1 ON OF <br />RE ON <br />FAX: (303) 832 -8106 <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />INTEROFFICE MEMORANDUM <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />TO: Mary Rodriguez, Brock Bowles, Marcia Talvitie, and Susan Burgmaier <br />FROM: Mike Boulay ! <br />DATE: November 28, 2012 <br />SUBJECT: McClave Canyon Mine Permit No. C- 1980 -004 <br />Permit Revision No. 2 Adequacy Response Submittal <br />On November 1, 2010 we received the Permit Revision No. 2 application for McClane Canyon <br />Mine and deemed it complete on November 10, 2010. The revision initially was for the <br />expansion of surface facilities and the mining plan. A lot of issues have been considered since <br />then. We sent out our original adequacy review letter on February 15, 2011. McClane Canyon <br />Mining, LLC (MCM) has submitted their first adequacy response letter received by the Division <br />on October 18, 2012. We have extended the decision deadline to December 31, 2012. I would <br />like to try and complete our review of the adequacy responses within the next few weeks. There <br />have been major changes to the plan as originally proposed by MCM primarily due to the Bureau <br />of Land Management's (BLM's) disapproval of certain aspects of the surface facility expansion <br />plan. MCM has decided to remove the surface facility expansion plans from PR -2 proposal but <br />is continuing with the plans for a Federal coal lease modification and permit boundary expansion <br />originally proposed with the PR -2 application. <br />CAM - Colorado LLC (CAM) submitted a Request for Coal Lease Modification to the Bureau of <br />Land Management (BLM) Colorado State Office for a 317 -acre modification to federal coal <br />lease C- 0125439 to ensure long -term access to unmined reserves located north and south of the <br />existing mine workings within the McClane Canyon Mine leasehold. The lease modification <br />would add reserves of 1.98 million tons of federal coal that might not be mined by any other <br />method in the future. Federal Coal Leasing Act amendments require that lands considered for <br />leasing be included in a comprehensive land use plan and that leasing decisions be compatible <br />with that plan. The BLM approved RMP for the Grand Junction Field Office (GJFO) governs <br />and addresses the leasing for federal coal in the project area (BLM, 1987). The BLM has been <br />working on an Environmental Assessment (EA) for the lease modification project and a decision <br />is forthcoming. A draft FONSI has been prepared. A Decision Record would be necessary for <br />us to approve PR -2 and the corresponding permit boundary expansion. BLM received a lot of <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />