BLM releases final environmental assessment on proposed King II coal mine lease modification near Hesperus

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BLM Colorado

BLM Office:

Tres Rios Field Office

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DOLORES, Colo. – Today, the Bureau of Land Management released the final Environmental Assessment and Decision Record for a lease modification for the King II coal mine near Hesperus, Colo. The decision could allow GCC Energy, LLC to expand its existing coal lease by 950 acres.

“This decision allows over 100 jobs to stay in our community, along with the economic benefits from federal mineral development,” said Connie Clementson, BLM Tres Rios Field Manager.

The BLM and the Office of Surface Mining Reclamation and Enforcement worked jointly to prepare the analysis. Public participation played an important role in the process, and the BLM received 128 comments on the proposal. Other state and federal permits would be required prior to mining the lease area.

In addition to extending the life of the GCC Energy’s King II Mine by an estimated five to seven years, the decision allows GCC Energy to access low sulfur, high BTU (British thermal unit) coal, providing a continuing supply of compliant coal that can be sold for use in manufacturing cement, local home heating and operating the railroad in Durango.

Coal production is a valuable economic driver for the State of Colorado. Coal mines on public mineral estate support close to 6,000 jobs and contribute about $42 million in federal royalties to the State of Colorado. The King II coal mine employs between 140 and 165 people with total salaries and employee benefits estimated to be about $12 million annually. 

Six producing coal mines on federal minerals in the State of Colorado yielded an estimated economic output of more than $742 million in Fiscal Year 2016. There are 51 federal coal leases in Colorado, covering 60,000 acres.  

To review the Environmental Assessment and Decision Record, go to https://go.usa.gov/xnQCB. 


The BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska, on behalf of the American people. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. Our mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations.