CAM's proposal includes a new portal and associated facilities to extract low-sulfur coal from federal Coal Leases C-0125515 and C-0125516 and from several potential new Federal leases as well as a small amount of private coal. These facilities would include, but not be limited to, a waste rock pile, railroad loop, and unit train load-out, a conveyor system to move the coal, various buildings, storage and equipment yards, a sewage treatment plant, water tank, and fuel oil storage. County Road X would be upgraded to serve as the mine access road from State Highway 139.

A railroad spur would be located on BLM and private lands, connecting to the existing Union Pacific Railroad (UPRR) near Mack, Colorado. The proposed railroad spur would traverse approximately 9.5 miles of BLM administered public land and approximately 5 miles of private land. A water diversion would be constructed in Mack Wash and the water pipeline would follow the proposed railroad spur to the mine. The railroad spur would serve only the Red Cliff Mine to transport coal to market. CAM would own the railroad spur, but the trains using the spur would be operated by the UPRR or other railroad companies.

Electric power would be needed at the mine to run the underground mining machinery, the conveyor system, and other mine support facilities. Grand Valley Power (GVP), the local utility, has applied to BLM for a ROW to supply the necessary electric power. GVP would need to construct a new 69-kilovolt transmission line from the Uintah Substation located approximately two miles west of Fruita to the mine to supply this power. The transmission line would be approximately 14 miles long, with approximately 7 miles on federally managed lands and 7 miles on private land depending on which alternative route is chosen. This ROW application is considered a connected action, as is the Lease by Application (LBA) filed by CAM for federal coal adjacent to CAM’s existing leases. BLM determined that, if this coal is to be leased, it would be by a competitive bid process. BLM has modified the proposed LBA area to include 14,466 acres. The analysis area includes a total future lease area of about 23,000 acres which corresponds to the estimated mine life of 30 years.

CAM proposes to conduct underground mining 24 hours per day, 7 days per week, 365 days per year, using room and pillar and longwall mining techniques. CAM’s production from the Red Cliff Mine would be up to 8 million tons per year of clean coal, depending on market conditions. A company affiliated with CAM is currently mining approximately 280,000 tons of coal per year from the nearby McClane Canyon Mine.

A mine permit application has been filed with the Colorado Division of Reclamation Mining and Safety (CDRMS) and with the Office of Surface Mining (OSM) for CAM’s existing federal leases. There will be additional opportunities for public involvement as the mine permit application is processed, concurrently with and subsequent to BLM’s environmental review process.

Environmental Review and Decision-making Processes

BLM is preparing an Environmental Impact Statement (EIS) to analyze the environmental consequences of the development of the project. The EIS is being prepared in cooperation with the OSM, U.S. Army Corps of Engineers, the Colorado Department of Natural Resources, including the Colorado Division of Wildlife (CDOW) and CDRMS., and Garfield and Mesa Counties. As the lead agency, the BLM released the Draft EIS (DEIS). The DEIS describes anticipated impacts, irrespective of land ownership or jurisdiction, as required by the National Environmental Policy Act. In spite of this broad scope, BLM’s decision-making authority applies only on the federal lands it manages, and many other local, state, and federal agencies have decisions to make regarding the proposed project. Mining operations must be approved by both OSM and the State of Colorado before mine expansion and development can proceed. The DEIS was prepared to help inform decision makers with permitting responsibilities in each affected jurisdiction and the public. There will be a 60-day public comment period on the DEIS, and on BLM’s proposed LBA. The comment period ends on March 17, 2009.

BLM will also hold a public hearing on February 5, 2009, from 4 p.m. to 7 p.m. at the City of Fruita Council Chambers, 325 E. Aspen Ave., Fruita, CO 81521. The public hearing will feature an open house format, where the public can get information regarding the proposed project and environmental review process. It will also give the public an opportunity to submit written comments on the DEIS, and written comments on the fair market value and maximum economic recovery of the coal within the proposed LBA.

After the public comment period a Final EIS (FEIS) will be prepared that will respond to all substantive comments received on the DEIS. The FEIS will also disclose the BLM’s preferred alternative for those applications for which it has decision-making responsibility. After release of the FEIS there will be a 30-day period before BLM will issue its Record of Decision approving or rejecting the ROW applications and the LBA application.

For additional information regarding BLM’s environmental review process for the proposed Red Cliff Mine project, contact Glenn Wallace, (303) 239-3736, glenn_wallace@blm.gov, or by mail at BLM Colorado State Office, 2850 Youngfield Street, Lakewood, CO 80215.