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Show Coal leasing bill receives environmental opposition By Helene C. Monberg, Vernal Express Washington Correspondent 'i Washington Here are the provisions :J the controversial coal leasing bill : vhich Rep. Ray Kogovsek, D. Colo., atroduced last month that has solid odustry support but major mironmental opposition. ; It is supported by the American fining Congress and the National Coal Association, which helped draft it. It is liposed by a coalition of environmental roups led by Dave Albersworth of the "'ower River Basin Council operating ere out of the Environmental Policy (Inter Nn hparinac havfl hppn theduled on it yet in the House Mining . subcommittee. -.It is co-sponsored by Reps. Dan Harriott, R-Utah, and James V. Hansen, R-Utah, Dick Cheney, R-Wyo., -lank Brown, R-Colo., D. M. Station, R-Va., R-Va., Nick J. Rahall II, D-WVa., Austin J. Murphy, D-Pa., and Don oung, R-Alaska. ; Under the 1976 Coal Leasing 'intendments, leases were restricted to - years, with a requirement that an aerator exercise "due diligence" and - into operation in 10 years, mmerical operation is defined as 2'2 - ercent of reserves mined each year. The Kogovsek bill is so controversial ecause it would give an operator the -'M 20 years to get into operation, and 'Deration commercially is defined as nming l percent of the reserves each 'ear. Theoretically an operator could ' 'W his lease for a full 20 years before 'ginning operations. Then he could perate it commercially indefinitely ecause, once commercial operations 38111, a lease is in force until the operator ceases operations, the Serves play out, or the time limit is tended, as has happened in the past. $ bil1 allows payment of advance oyalties for 10 years in lieu of iptinued operation and in lieu of miction in commercial quantities of production constituting diligent "elopment. Current law permits the ment of advance royalties in lieu of ,iitinued operation to allow for such jRances as where a coal mine loses a tract to supply coal. The industry r's that it needs flexibility "t'cularly for the development of jj.ge mines because the 10-year 'Sent development provision in the blaw is impossible to meet in some ilrnhf due to Permitting and other rWems. In effect this provision I s an operator a full 20 years to get X Prduction, rather than 10 under if c""ent law. I Jt would allow logical mining units to L?0Uped Pretty much as the operator jJerators wanted providing the U.S. hang'Cal Survev approved, rather under the continguous ' ywement of the present law. Again, the industry claims that it needs this flexibility because of the interposition of rights-of-way and other legal barriers and loss of resource continuity due to burn lines or pinch-outs. It would delete the requirement that a mineral in a logical mining unit be mined so that the reserves are exhausted in 40 years. The industry claims the 40-year requirement is unfair, as it applies solely to coal, and that it is impractical, particularly where "a single lease contains both surface minable and underground minable reserves and where synthetic fuels projects require large reserves of feedstock." according to the American industry claims, and it has considerable support in the financial community to back this claim. It would delete a prohibition on issuing leases for any leasable mineral to a coal lessee who has held a federal coal lease for 10 years without producing coal in commercial quantities. The industry claims that this is unfair because other mineral lessees are not subject to the same requirement, such as an oil or gas lease. The National Coal Association told this correspondent on April 23 a number of companies with coal operations in the West and other mineral interests as well as hurt by this provision because, they cannot ort,Virafo thoir nhilitv tn lpnsp nthpr mining ongiess. .....pn . j -- . , , , . :mt tw a minerals or more coal on public lands It would delete a requirement that a t mining plan be submitted within three . J years of issuance of the coal lease. restriction. Particularly in today's "soft" market, The bill is so controversial it is not a lessee may not have acquired a likely to get anywhere this year customer within three years from the particularly in light of the impasse over date of issuance of the lease, the the federal budget. |