[Federal Register Volume 65, Number 39 (Monday, February 28, 2000)]
[Notices]
[Pages 10539-10540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4601]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[ES-930-1320-AC-KYES-34711]


Lease Modification Application for Coal Lease KYES 34711

AGENCY: Bureau of Land Management, Department of the Interior.

ACTION: Notice of Public Hearing and Availability of Environmental 
Assessment.

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SUMMARY: Eastern States hereby gives notice that a public hearing will 
be held for comments on the environmental assessment, maximum economic 
recovery, and the fair market value of the coal resources covered by an 
application for modification of Coal Lease KYES 3471. Appolo Fuels 
Incorporated filed the lease modification application in accordance 
with 43 CFR 3432. The potentially bypass coal resource to be mined by 
UNDERGROUND mining methods from the Poplar Lick and Stray ``C'' coal 
seams in the Kentucky Ridge State Forest (KY-LU-1, Tract 1101a) Bell 
County, Kentucky. This lease modification application is to add 160 
acres to Federal lease KYES 34711 and State lease CLR-795. The tract 
would be accessed from underground and is north of private reserves 
leased to Appolo Fuels, Inc. The eastern and northern boundary extends 
to the outcrop of the coal seam and the western boundary is contiguous 
to Federal lease KYES 34711 and State lease CLR795. The 160-acre 
modification to the Federal lease KYES 34711 was delineated as a result 
an application by the lessee. The BLM geologic report estimates 737,300 
Federal and 245,800 State tons in the coal reserve base of the lease 
modification area. Due to the thinness of the seam, the coal reserve 
base (as defined in 43 CFR 3480.0.5(a)(5)) does not include the Buckeye 
Springs seam. Mining on the existing lease tract and on adjoining 
private land will proceed with or without the Federal lease 
modification tract. The proposed action will protect the Federal and 
State interest by preventing the underground bypass of 307,200 tons of 
recoverable reserves, the loss of $607,000 royalty to the general 
funds, and by providing an overall $4,366,500 positive economic impact. 
Of the 307,200 tons, 259,200 tons are in the lease modification tract 
and 48,000 tons are in the existing lease. The 48,000 tons can only be 
mined from proposed portals.
    We have found the quality range of the coal beds is as follows:

                                             Coal Quality--Dry Basis
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                                                                              Fixed
             Seam                     DH#            ASH        Volatile      carbon       B.T.U.       Sulfur
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Stray ``C''..................  AF-10...........         5.31        41.71        52.98       14,145         1.45
Poplar Lick..................  AF-10...........        40.18        26.22        33.60        9,025         0.70
                               AF-11...........         8.17        37.09        54.74       13,714         1.28
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    Note: Percentages sum to more than 100 due to rounding. Dry 
basis calculated by mathematically removing water.

    The purpose of the hearing is to obtain comments on the 
Environmental Assessment prepared on the following items:

    1. The method of mining to be employed to obtain maximum 
economic recovery of the coal;
    2. The impact that mining the coal in the proposed lease 
modification area may have on the surrounding area including, but 
not limited to, impacts on the environment; and
    3. Factors affecting, and methods of determining, the fair 
market value of the coal to be mined.

    The environmental assessment will be available for review on 
February 24, 2000, the Bureau of Land Management, Jackson Field Office, 
411 Briarwood Drive, Suite 404, Jackson, Mississippi 39206. Copies of 
the environmental assessment will also be available at the public 
hearing.

SUPPLEMENTARY INFORMATION: Written requests to testify orally at the 
March 24, 2000, public hearing should be received at Jackson Field 
Office, Eastern States, Bureau of Land Management, address set out 
above, prior to the close of business at 4:00 p.m., on March 21, 2000.
    Both oral and written comments will be received at the public 
hearing, but speakers will be limited to a maximum of 10 minutes each 
depending on the number of persons desiring to comment. The time 
limitation will be strictly enforced, but the complete text of prepared 
speeches may be filed with the presiding officer at the hearing, 
whether or not the speaker has been able to finish oral delivery in the 
allotted minutes. In addition, the public is invited to submit written 
comments concerning the fair market value of the coal resource to the 
Bureau of Land Management. Public comments will be utilized in 
establishing fair market value

[[Page 10540]]

for the coal resources in the described lands. Comments should address 
specific factors related to the fair market value, including, but not 
limited to: the quantity and quality of the coal resources, the price 
that the mined coal would bring in the marketplace, the cost of 
producing the coal, the probable timing and rate of production, the 
interest rate at which anticipated income streams may be discounted, 
depreciation and other accounting factors, the expected rate of 
industry return, the value of the surface estate and the mining method 
or methods which would achieve maximum economic recovery of the coal. 
Documentation of similar market transactions, including location, terms 
and conditions, may be submitted at this time. These comments will be 
considered in the final determination of fair market value as 
determined in accordance with 43 CFR 3422.1. Should any information 
submitted as comments be considered to be proprietary, the information 
should be labeled as such and stated in the first page of the 
submission.

DATE AND TIME:  The public hearing will be held on March 24, 2000, at 
5:00 p.m. EST.

ADDRESSES:  The public heading will be held in the conference room at 
the Days Inn, (606) 248-6860, 11252 N. 12th Street, Middlesboro, 
Kentucky 40965.

FOR FURTHER INFORMATION CONTACT: John Lewis, John Lewis@jfo/es/blm.gov. 
Bureau of Land Management, Jackson Field Office, 411 Briar Wood Drive, 
Suite 404, Jackson, Mississippi, 39206, (601) 977-5437 or Tim Best, Tim 
Best@eso/es.blm.gov. Bureau of Land Management, Eastern States 7450 
Boston Boulevard, Springfield, Virginia 22153, (703) 440-1527.

    Dated: February 23, 2000.
Walter Rewinski,
Deputy State Director, Division of Resources Planning, Use and 
Protection.
[FR Doc. 00-4601 Filed 2-25-00; 8:45 am]
BILLING CODE 4310-GJ-M