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U.S. Department of the Interior <br />Bureau of Land Management <br />White River Field Office <br />220 E Market St <br />Meeker, CO 81641 <br />DETERMINATION OF NEPA ADEQUACY (DNA) <br />NUMBER: DOI- BLM -CO- 110 -2012- 0110 -DNA <br />CASEFILEIPROJECT NUMBER: COC -74817 <br />PROJECT NAME: Modification to Blue Mountain Energy Exploration Plan for Exploration <br />License COC74817 <br />LEGAL DESCRIPTION: T3N, R101W, 6`s P.M. <br />Sec. 17, 18, 19 <br />T3N, R102W, 6`s P.M. <br />Sec. 24, 25 <br />APPLICANT: Blue Mountain Energy, Inc. <br />ISSUES AND CONCERNS: No issues were identified during public scoping for Exploration <br />License COC- 74817. <br />DESCRIPTION OF PROPOSED ACTION <br />Background/Introduction: Blue Mountain Energy (BME) operates the Deserado underground <br />longwall coal mine that supplies the Bonanza Power Plant in Bonanza, Utah. The mine is located <br />in Rio Blanco County, Colorado approximately seven miles northeast of Rangely, Colorado. <br />Deserado was permitted in 1981 and has been producing coal since 1983. Deserado Mine is <br />considered a captive mine since all coal produced is sold and shipped to its sole customer, the <br />Bonanza Power Plant, in Bonanza, Utah. The coal is transported via electric train 37 miles from <br />the mine to the power plant. There are two mineable coal seams in the currently leased mine <br />area, the D -seam and the B -seam. The upper seam is the D -seam with an inter- burden that varies <br />from 5 feet to 70 feet between the D and B- seams. Production of the D -seam in the eastern <br />portion of the mine ceased in November 1999 and the longwall moved into the B -seam located in <br />the western half of the permitted mine area. Mining of the B -seam continues and is progressing <br />towards the northwest. Depositional geology of the B -Seam is complex with multiple splits of <br />changing mineral characteristics and varying mineable coal thickness. Areal extent of coal <br />reserves need to be identified to ensure the maximum economic coal recovery by preventing the <br />bypass of mineable coal. Coal Exploration License COC74817 (1,375 acres) was issued <br />November 1, 2011 and expires November 1, 2013. Drilling of the initial 15 exploration holes <br />occurred in late fall 2011. As a result of the drilling program the need for additional exploration <br />holes to better define the coal resource was identified. Section 10 of Coal Exploration License <br />DOI-BLM-CO-1 10-2012-01 10-DNA <br />