BLM approves GCC coal exploration license in La Plata County

Organization:

BLM Colorado State Office

Media Contact:

Shannon Borders

DURANGO, Colo. – Today, the Bureau of Land Management Colorado State Office approved a coal exploration license that allows GCC Energy, LLC (GCC) to explore for recoverable federal coal underlying private and federal lands adjacent to the King II coal mine near Hesperus, Colo. 

The coal exploration license authorizes GCC to drill up to 23 exploration holes to collect core sample in order to test for the presence and extent of federal coal resources in the exploration area. The proposed exploration project is expected to result in up to 5 acres of new surface disturbance. Once exploration activities have concluded (about two months after they begin) all disturbed areas will be reclaimed, and the exploratory drill holes will be plugged per state and BLM standards.

The coal exploration project is intended to assist GCC in determining whether and where economically recoverable federal coal resources exist on lands that are located in close proximity to the existing King II coal mine. GCC began the application process for this license in June 2014 with the publication of a notice of invitation to participate in exploration in the Federal Register.

The decision to authorize the exploration license does not authorize a federal coal lease, nor does it authorize any coal mining operations on any of the lands within the exploration area. Any future proposal to conduct coal mining within the exploration area would require a BLM-approved federal coal lease and either a mining plan approved by the United States Office of Surface Mining Reclamation and Enforcement or a mining permit approved by the Colorado Division of Reclamation, Mining and Safety. All of these actions would require additional environmental reviews and public participation.

The coal mined from the King II mine is known for its low sulfur, ash and alkali content, and it is sold mostly in the southwestern U.S. and Mexico for use in manufacturing cement, local home heating and operating a railroad in Durango, Colo.  Currently, there are six producing coal mines in the State of Colorado (two surface mines and four subsurface mines) totaling 60,000 acres, and there are a total of 55 coal leases in Colorado, covering 88,677 acres. Federal coal produced in the State of Colorado supports about 6,000 jobs and contributes $42 million in federal royalties to the State of Colorado. The King II coal mine employs between 140 and 165 people.

Environmental assessment documents are located at: http://go.usa.gov/x92jw

 


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.