B. STANDARD STIPULATIONS

1. Surface reclamation control

All spoil banks, coal slack and other wastes shall be disposed of and the area of and affected reclaimed in accordance with the following requirements:

(a) Soil Material.-In those areas to be strip-mined and identified by the District Manager, soil material will be removed and stockpiled. Following flattening and grading of the spoil banks and to the extent possible, the oil material will be spread over the reclaimed spoil banks prior to the revegetation work required in (c) below.

Soil Materials are those horizons containing topsoil and soils leached free of soluble salts and capable of sustaining plant growth and recognized as such by standard authorities.

(b) Spoil Banks.-All spoils within 660 feet of any public road, public building, or cemetery must be graded to a rolling topography traversable by farm machinery with slopes no greater than 4:1 unless the original grade in the area exceeds that.

On all affected land which is to be seeded to pasture the operator shall strike off all peaks or ridges to a minimum width of thirtyfive feet at the top.

On all affected land which is to be used for crops including hay, the operator shall grade peaks and ridges to a slope of not more than 4:1 and fill valleys in such manner that the area can be traversed with farm machinery reasonably necessary for such use.

Spoil banks on all other lands shall be flattened on the top to a width of not less than 25 feet and have side slopes no greater than 2:1, unless otherwise specified; they shall be so deposited that they do not block the flow of water nor produce sediment in drainages. Final grading of backfilled and other unconsolidated materials shall be performed so as to present a surface suitable for revegetation. To the degree practicable backfilling and final grading shall be completed within one (1) year after the completion or termination of the particular operation.

(c) Revegetation.-(1) Except for rock fences, bench fences, and excavations used for water impoundments, each surface area of the leased premises which will be disturbed by operations conducted by the lessee and identified by the District Manager shall be revegetated when its use for extractive purposes is no longer required.

(2) Seeding and planting shall be done in a manner to achieve a reasonable vegetative cover for wildlife, livestock and retardation of erosion as specified by the District Manager.

(3) All seed will be drilled except that aerial or ground broadcasting will be allowed in areas too steep or rocky for drilling.

(4) In the event that the first seeding is not successful, the operator will make a second attempt. Such attempt will generally not be sooner than two years after the first. No more than two seeding attempts will be required of the operator if he meets the requirements of the mining plan as it relates to seeding and planting.

(5) Following emplacement of soil material and to the degree practicable. revegetation shall be initiated within one (1) year after the completion or termination of the particular operation.

(d) Excavations.-(1) All slacked coal and other wastes shall be returned to the excavation and covered to a depth of not less than two (2) feet. When the District Manager determines that it would be desirable to use an excavation for the permanent impoundment of water or for other beneficial uses, the slack and wastes shall be transported to an alternate area identified by the District Manager and there covered to a depth of not less than two (2) feet.

(2) Where an excavation is to be left for permanent water impoundment. access should be provided at suitable intervals for persons, wildlife and livestock (3) Surface coal mining operations that remove and do not replace the lateral support, unless mutually agreed upon by the operator and the adjacent property owner, shall not approach property lines, established right-of-way lines of any public roads, street, or highways closer than a distance of one and one-half (1) times the depth of the excavation except where consolidated material or materials of sufficient hardness or ability to resist weathering and to inhibit erosion or sloughing exists.

2. Pollution control

(a) To prevent or abate environmental pollution any excessive amounts of pollutants will be prevented from reaching the air, water or land resources in

cluding surface watercourses and groundwater aquifers. "Excessive amounts" of pollutants means any amount which exceeds the maximum amount permitted by the Federal Water Pollution Control Administration or by the appropriate agency of the State of North Dakota.

(b) All access, haul and other support roads shall be located, constructed and maintained in such a manner as to control and minimize sloughing, channeling and other erosion.

3. Fire and safety control

(a) All operations shall be conducted so as to avoid range and forest fires and spontaneous combustion. Open burning of carbonaceous materials shall be in accordance with suitable practices for fire prevention and control. The operator shall take immediate steps to extinguish any fires in piles of coal wastes, slack or in any exposed face of in-place coal.

(b) The active mining areas shall be posted and fenced or otherwise protected where necessary to minimize injury to persons, livestock and wildlife. (c) Drill holes shall be temporarily protected at all times so as to prevent injury to persons, livestock and wildlife; they shall be permanently sealed when the need for the drill hole no longer exists.

4. Surface improvement control

(a) All existing improvements including but not limited to: gates, cattleguards, roads, trails, pipelines, bridges, public land survey monmuments and water development and control structures shall be replaced, restored or appropriately compensated for as soon as practicable in the event they are damaged or destroyed by company operations.

(b) Surface buildings, supporting facilities and other structures that have served their purpose shall be removed and the area graded and revegetated.

NOTICE OF COMPETITIVE COAL LEASE OFFERING BY BID AND ORAL AUCTION

U.S. Department of the Interior, Bureau of Land Management, Colorado State Office, Denver, Colorado. Notice is hereby given that the lands hereinafter described, located in Moffat County, Colorado, approximately 6 to 9 miles south of Craig, Colorado, will be offered for competitive coal lease as one leasing unit by sealed bids, followed by oral auction, on the terms hereinafter specified to the qualified bidder of the highest cash amount per acre or fraction thereof as a bonus for the privilege of leasing the lands in accordance wtih the provisions of the Mineral Leasing Act of 1920 (30 U.S.C. sec. 181, et seq.) as amended, and the regulations in 43 CFR 3521.2-2(c)(1) and 3521.2-3. Submission of a sealed bid is not necessary for a bidder to be qualified to participate in the oral auction bidding.

Sealed bids may be submitted to the Bureau of Land Management, Room 700, Colorado State Bank Building, Denver, Colorado 80202, on or before 2 p.m., M.D.T., October 27, 1971. Sealed bids received after that time will not be considered. The envelope used by the bidder must be plainly marked that it is not to be opened before that hour and date, and must show that the bid is for coal lease Colorado 3506. Bids may not be modified or withdrawn unless the modifications or withdrawals are received prior to the time fixed for the bid opening. Each sealed bid must be accompanied by, and the highest oral bidder on the day of the sale must submit the following: One-fifth of the amount of the bid in cash or by cashier's check, certified check, bank draft, or money order payable to the order of the Bureau of Land Management, and a statement over the bidder's own signature with respect to citizenship and qualifications, interests held, and sole party in interest statement, as specified in 43 CFR 3502.

The lease will be offered to the qualified bidder submitting the highest acceptable cash amount per acre or fraction thereof as a bonus for the privilege of leasing the lands. The Government reserves the right to reject any and all bids whether sealed or oral.

At 2 p.m., M.D.T. on October 27, 1971, in Room 600-A, Colorado State Bank Building, sealed bids, if any, will be opened and read. After the sealed bids have been opened and read, oral auction bids will be received from those persons present. The amounts submitted by unsuccessful bidders will be returned to them. The successful bidder, as a condition of lease award, will be required to sign

a certificate to the effect that the bid was arrived at by the bidder or offeror independently, and was tendered without collusion with any other bidder or offeror. Independent Price Determination Certificate, Form 1140-6, will be used for this certification.

The following must be submitted with sealed bids, and if the successful bidder is an oral bidder, these items must be submitted prior to issuance of the lease: A. Form 1140-1, Equal Employment Opportunity Compliance Report Certifica tion, required by Title 41 CFR 60-1.6(b). Form 1140-3, Certification of Nonsegregated Facilities, will be made a part of any lease issued and compliance with its provisions will be required effective upon execution of the lease. Identical certifications must be obtained from proposed subcontractors prior to the award of subcontracts exceeding $10,000 which are not exempt from the provisions of the Equal Opportunity Clause.

B. A statement in accordance with 43 CFR 7 as to whether he is an employee. the spouse of an employee, or agent of an employee of the Department of the Interior.

C. Form 1140-6, Independent Price Determination Certificate.

The lands offered are described as follows:

Township 5 North, Range 90 West, 6th P.M.

Sec. 7: Lots 5 through 20 (all); Sec. 8: Lots 1 through 16 (all); Sec. 17: Lots 2, 3, 4, 5, and 6; Sec. 18: Lots 5, 6, 7, and 12.

Township 5 North, Range 91 West, 6th P.M.

Sec. 1: Lots 17, 18, 19, and 20; Sec. 9: Lots 5 through 12; Sec. 10: Lots 5 through 16; Sec. 11: Lots 1 through 16 (all); Sec. 12: Lots 1 through 16 (all); Sec. 13: Lots 3 and 4; Sec. 14: Lots 1 through 8; Sec. 15: Lots 3, 4, 5, and 6. Containing 4780.38 Acres.

A lease, as a result of this offer, will provide for the payment of the following rentals for each acre or fraction thereof covered thereby: $1.00 for each of the first five years, and thereafter $9.50 per acre or fraction thereof per year for the remainder of the first twenty-year period of the lease. Rental for any year shall be credited against the royalties as they accrue for that year. The royalty rate for coal mined by strip or auger mining methods will be 5 percent of the value of the coal produced but not less than 172 cents per ton of 2,000 pounds for the first 10-year period of the lease and 20 cents per ton of 2,000 pounds for the second 10-year period of the lease. The royalty rate for coal mined by underground mining methods will be 4 percent of the value of the coal produced but not less than 15 cents per ton of 2,000 pounds for the first 10-year period of the lease and 172 cents per ton of 2,000 pounds for the second 10-year period of the lease.

A lease, as a result of this offer, will contain the following requirement for diligent development: "The lessee agrees to begin operations under this lease with reasonable diligence and to begin production in commercial quantities at the beginning of the 6th year of the effective date of the lease, unless commencement of production is interrupted by strikes, the elements, or casualties not attributable to the lessee. The lessor may grant reasonable extensions of time for the commencement of production in accordance with regulations 43 CFR 3503.3-2 for reasonable periods of time in the interest of conservation or for other reasons when such action does not adversely affect the interest of the United States."

A $10,000 lease bond is required pursuant to the regulations in 43 CFR 3504.21(b).

The lessee will be required to submit a performance bond payable to the Secretary of the Interior in the amount of $5,000 to insure protection and reclamation of all lands in this lease. This bond is in addition to the bond required by the Mineral Leasing Act and 43 CFR 3504.2-1(b), but is not required to be filed until the lessee enters upon the lands described in the lease.

If the successful bidder has an approved full nationwide coal bond in the amount of $75,000 (43 CFR 3504.5–1), or an approved statewide bond in the amount of $25,000 (43 CFR 3504.6-1) for coal leases and permits on lands in the State of Colorado, issued under 43 CFR Subparts 3510 and 3520 pursuant to the Mineral Leasing Act of February 25, 1920 (41 Stat. 437), as amended, no additional bond will be required.

Prior to issuance of the lease, the high bidder must execute and file the lease form, in quintuplicate, and a satisfactory bond in the amount specified herein.

He must also pay the remainder of the bonus bid, the first year's rental, and the total cost of publication of the notice of lease offer.

Bidder's attention is called to Section 5 of Coal Lease Form 3130-1 which requires protection of the surface, natural resources and improvements on all lands, including the privately-owned surface, in this lease offering. As a condition to lease issuance, the attached stipulations for the protection and reclamation of the surface resources of all lands in the offering must be signed by the successful bidder.

The lessee will be required to comply with all State laws and regulations concerning coal mining, including laws and regulations pertaining to the protection and reclamation of surface resources and protection of the air, land, and water environment.

Bidders are warned against violation of Sec. 1860, Title 18 U.S.C. prohibiting unlawful combination or intimidation of bidders. No particular form of sealed bid is required, but all bids must show the total amount bid, the amount bid per acre, and the amount submitted with the bid.

J. Elliott Hall, Chief, Division of Technical Services, Colorado State Office, Bureau of Land Management, Colorado State Bank Building, Denver, Colorada 80202.

STIPULATIONS

1. Before any mining operations or activities may be authorized, the lessee must post a $5,000 bond to cover estimated reclamation costs and to insure compliance with surface protection stipulations of the lease. In addition, bond coverage in the amount of $10,000 is required in compliance with 43 CFR 3504.2–1(b). An increase in the amount of the bond may be required at any time during the life of the lease on approval of mining plan or an approved change in plan or to reflect changing surface conditions.

2. All disturbed areas must be returned as nearly as practicable to their original condition, or to a condition to be agreed upon by both the lessee and the Regional Mining Supervisor, Geological Survey, after the Supervisor has agreed with the District Manager, Craig, Colorado, as to the satisfactory standards for such restoration.

3. All operations must be conducted so as not to change the character or cause pollution of streams, lakes, ponds, waterholes, seeps, and marshes or damage to fish and wildlife resources. No contaminants or pollutions will be allowed to enter streams, springs, stock water, or ground water. No water will be used from stock ponds or springs without the written consent of the owner. The lessee will be required to comply with all Federal and State laws, regulations, and standards relating to air, water, and land pollution.

4. The lessee shall be required to comply with all Federal and State mine safety laws, regulations, and standards.

5. All new roads and trails shall be constructed and maintained in such a manner as to control and minimize channeling and other erosion. Roads and trails shall be constructed only at locations approved by the Regional Mining Supervisor.

6. All existing improvements including fences, gates, cattleguards, roads, trails, culverts, pipelines, bridges, public land survey monuments, and water development and control structures shall be maintained in serviceable condition to the degree practicable. Damaged or destroyed improvements shall be replaced, restored, or appropriately compensated for. When it becomes absolutely necessary, and only upon prior approval of the Regional Mining Supervisor, the lessee may disturb a public land survey corner marker or monument; however, the lessee shall bear all costs of any surveys required to preserve the true point for the marker.

7. Grazing or resting livestock will not be unnecessarily disturbed.

8. All garbage and foreign debris must be eliminated by removal or burial. Burning is permissible only by prior written consent of the Regional Mining Supervisor.

9. The clearing of timber, stumps, and snags will be kept to a minimum and due care will be used to avoid scarring or removal of ground vegetative cover. 10. The lessee shall comply with the Moffat County Planning_Resolution which requires written approval from the Moffat County Planning Commission prior to commencing any on-the-ground activities.

11. Drill holes and other excavations shall be conditioned at all times so as to prevent injury to persons, livestock, and wildlife, and upon completion of explora85-197-73-7

tions, will be permanently sealed or filled to the satisfaction of the Regional Mining Supervisor.

12. No explosives may be used without prior written consent of the Regional Mining Supervisor.

13. Excavations used for the permanent impoundment of water shall be graded to provide safe access to the water for persons, livestock, and wildlife.

14. The mining plan shall include provisions for housing and other service facilities related to community or urban development. At the termiantion of the lease, the lessee agrees to remove or otherwise dispose of any such facilities to the satisfaction of the Regional Mining Supervisor.

15. Where compatible with operations conducted by the lessee, the lease area shall be available for other public surface uses, including livestock grazing, hunting, fishing, camping, hiking, and picnicking.

16. Mining or exploratory operations shall not be conducted on the lands which, in the opinion of the Regional Mining Supervisor, Geological Survey, would constitute a hazard to oil and gas production, or which would unreasonably interfere with the orderly development and production under oil and gas leases issued prior to the date of this lease.

17. When American antiquities or other objects of historic or scientific interest. including but not limited to historic or prehistoric ruins, vertebrate fossils or artifacts, are discovered in the performances of this lease, the item(s) or condition (s) will be left intact and immediately brought to the attention of the District Manager through the Regional Mining Supervisor.

18. Prior to commencing any on-the-ground activities the lessee shall submit to the Regional Mining Supervisor a mining plan which considers these stipulations and includes those items listed in Sec. 1, Coal Lease Form 3130-1.

(Lessee)

Senator Moss. I have had a number of people communicate with me. about the delaying of issuing of leases by the Department.

Why are the coal permits and preference rights being delayed the way they are?

Mr. LOESCH. There are several reasons, Mr. Chairman.

I don't think we have issued an exploration permit-well. I don't know, for quite a long time, for 18 months. About the same time we had our last coal sale, we quit issuing exploration permits.

As to preferential leases, I can't think-I think we have issued very few of those within the last year or so, but nothing like the backlog that we have backed up.

The reasons for this are primarily concerned with the National Environmental Policy Act and the overall land use planning that we are doing.

I know the committee will be interested in when that logjam is going to break. Again, I can't give you any particular date. We are working at it. I hope within 6 months we will be able to lick it, but I can't guarantee you.

Senator Moss. Well, we are under this pressure of energy needs and at the same time it is pretty hard to explain the delay to those people who want to proceed to extract the coal.

Mr. LOESCH. That is very true. I am fully aware that all of the Senators and Representatives from the intermountain west where these coal resources are getting kicks from their constituents because of the Department's position or failure to issue preferential leases these days. I get the same kind of heat.

All I can say is that I think we will be compelled to adhere to our present view until we can get square with the Environmental Policy Act.