Regulatory And Permitting Requirements For New Western Surface Coal Mines

This paper addresses the state and federal permit- ting requirements and regulatory constraints associated with the development of new "grass roots" surface coal mines in the Western United States. Since a major portion of new coal development in the West will be on federally leased coal in Wyoming, my comments are directed towards that geographical area. This will give the reader some insight into the current regulatory framework within which western mining companies must operate-i.e., the major applicable state and federal laws and regulations, the more important state and federal regulatory agencies, and the major construction and operating permits that are required. Before discussing the impact of the regulations on our business, I would like to tell you something of my company and then briefly discuss Exxon's forecast of the long range outlook for coal. Carter Mining is an Won affiliated surface coal mining company. Exxon became interested in the coal business in the mid 1960's with the recognition of the future need for alternative fuel sources. Since that time, it has acquired coal reserves located in Wyoming, Montana, North Dakota, Arkansas, Texas, Illinois and West Virginia. Carter's first surface mine, the Rawhide Mine, located north of Gillette, Wyoming began production in August, 1977. Our second surface mine, Caballo, located just south of Gillette, began operating last October. We have a third block of federally leased coal just east of Gillette. By 1985 we anticipate Carter's western surface mines will be producing at an annual rate of 30 million tons, subject, of course, to successful market development efforts and regulatory considerations. Rawhide will ultimately have a permitted capacity of 24 MM tons per year. The coal at Rawhide is in two seams; one 80 feet in thickness and the other 20 feet (including a 6 to 10 foot parting). A large shovel is used to remove the overburden, and a similar shovel and dragline are used to mine the coal. Caballo has a 75 foot seam; otherwise it is similar in design and operation to the Rawhide Mine.