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Dolores, Colo. – The U.S. Department of the Interior’s (DOI) Bureau of Land Management (BLM) has released a draft Environmental Assessment (EA) for public review that evaluates a Lease-by-Application (LBA) for GCC Energy, LLC’s (GCCE), King II Coal Mine, approximately 15 miles west of Durango, Colorado. The EA, titled “Dunn Ranch Area Lease-By-Application and Mine Plan Modification,” is being prepared jointly with DOI’s Office of Surface Mining Reclamation and Enforcement (OSMRE).

The BLM is also holding a public hearing to receive public comments on the fair market value and maximum economic recovery of the federal coal in the LBA, and on the preliminary EA, Wednesday, July 24 from 6 to 8 pm at the BLM Tres Rios Field Office, 29211 Highway 184, Dolores, CO 81323. An information session on the project and EA will also be held on that day from 5 to 6 pm at the same location.

“The Trump Administration is committed to creating jobs and producing energy safely,” said Secretary of the Interior David Bernhardt. “The BLM and OSMRE worked together to reduce environmental analysis redundancies and streamline the overall process to bring this project to fruition. We look forward to receiving public comments on a proposal that would extend the life of this mine and sustain jobs for another 22 years.”

“The coal reserves covered by this proposal are a key component in the production of concrete, which is essential to the nation’s construction industry and infrastructure. Public participation and input will help the BLM identify and address issues raised by the proposal,” said BLM Tres Rios Field Manager Connie Clemenston. “We encourage people to review the EA and submit comments.”

This proposed lease of 2,462 acres of Federal coal under a parcel referred to as the “Dunn Ranch” property holds approximately 9.54 million tons of recoverable coal. If the BLM approves the lease sale, a total of up to 12 million tons of combined Federal and privately owned coal could be mined under the mine plan modification proposed to OSMRE.

GCCE uses coal produced from the King II Mine primarily to fire cement kilns, rather than generating electricity. GCCE transports coal from the King II Mine to kilns located in Colorado, New Mexico, Arizona, Texas, and Mexico. The low sulfur, heat content, and ash chemistry make this coal better suited than many for this purpose.

The Federal coal is below surface estate primarily owned by the Ute Mountain Ute Tribe. If GCCE is the highest bidder at the lease sale, it would mine the coal by underground mining methods as an extension of the existing King II mine. A “low-cover crossing” (a capped tunnel excavated from the surface) would allow underground mining equipment to reach the Dunn Ranch property from the King II mine without daylighting. There would be approximately 20 acres of surface disturbance. Along with unmined coal at the existing mine, and additional privately owned coal accessed from the LBA, the King II mine could operate for another 22 years. The King II mine employs between 83 and 140 people with total salaries and employee benefits estimated to be about $12 million annually. 

This EA served as a pilot project to streamline the NEPA process and enhance coordination between the BLM and OSMRE. Historically, the BLM has prepared a NEPA document for the leasing application, while

OSMRE, after issuance of the lease, has prepared a separate NEPA document for its recommendation to the Assistant Secretary for Land and Minerals Management on whether to approve, disapprove or condition the mining plan. With this project, the BLM and OSMRE jointly prepared the EA as co-leads to create an efficient “one-NEPA” review process. This pilot project aims to support the development of national guidance and formalized process for other federal coal leasing and permitting projects.

Coal mines in Colorado generated $35 million in Federal royalties in 2017. This revenue is split with the State of Colorado. Mining coal from BLM Colorado lands and minerals generated $742.5 million in total economic output in 2017. Currently, there are six producing coal mines in the State of Colorado (two are surface mines, the remaining four are subsurface mines) totaling 60,000 acres and with an estimated economic output of $1.2 billion. There are 51 coal leases in Colorado, covering 80,203 acres.

The draft EA, maps, and information about how to comment electronically are available through the BLM ePlanning site, which can be found athttps://go.usa.gov/xEKTV. Comments may be submitted verbally at the hearing; otherwise they must be submitted electronically through the ePlanning site and must be received by August 5, 2019.

Before including your address, phone number, e-mail address, or any other personal identifying information in your comments, please be aware that your entire comment, including personal identifying information, may be made publicly available at any time. While individuals may request BLM to withhold personal identifying information from public view, the BLM cannot guarantee it will be able to do so.

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