Coal exploration license filed in La Plata County for 4,846 acres
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DURANGO, Colo. – GCC Energy, LLC filed a coal exploration license with the Bureau of Land Management for approximately 4,846 acres of federal minerals in La Plata County, within the Tres Rios Field Office. As part of the licensing process, BLM regulations require a company to announce an invitation to the public to participate in the coal exploration process prior to beginning any exploration activities. The deadline for a person or company to state their interest to participate is Dec. 3, 2014.
Opening the invitation to other companies allows them to share data and costs. This is primarily done to encourage the widest dissemination of coal resource information and to encourage a more competitive coal market. Drilling exploration wells is the next step a company takes to gather definitive information about the existing coal resources.
The BLM is working on an environmental assessment to analyze the effects of the proposed exploration. The project area is located within 4549.55 acres of split-estate lands (private surface/federal minerals) and 296.65 acres of federal surface/federal minerals.
GCC Energy, LLC sent in a proposed exploration plan in May 2014 and revised it in June 2014. The proposal includes drilling 24 exploration sites north of the existing operation at the King II Mine near Hesperus, Colorado. Existing roads would be used to access 14 sites and 10 sites are proposed to be accessed via eight overland travel routes.
Overland travel would require limited clearing of brush and rocks to access the site. No blading or grading would be necessary. The total disturbance is estimated at less than six acres. Road work and drilling would be expected to begin after the license is issued, depending on weather and road conditions and equipment availability. Operations would last between four and seven weeks. After the coal exploration is completed and the data is analyzed, the company may decide to apply for a lease.
Currently, there are eight producing coal mines (six underground and two surface operations) encompassing 66,000 acres in the state. In Fiscal Year 2013, coal energy production on BLM Colorado public lands directly contributed $734 million to the economy, generating royalty revenue of $42 million, according to the Office of Natural Resources Revenue, and accounted for 5,936 direct and indirect jobs in Colorado.
Those who seek to participate in the exploration process should notify Sharon Sales with the BLM Colorado State Office at 303-239-3987 or the applicant at GCC Energy, LLC, Attn: Seth McCourt, Mining Engineer, 6473 County Road 120, Hesperus, CO 81326, by the date listed above.
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.