FONSI-1 of 7 

U.S. DEPARTMENT OF THE INTERIOR

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

FINDING OF NO SIGNIFICANT IMPACT

Coyote Creek 

Federal Coal Lease Serial Number: NDM-110277 

Federal Mining Plan 

A. Introduction

Coyote Creek Mining Company (CCMC) owns and operates the Coyote Creek Mine in Mercer

County, North Dakota, that is approximately 5 miles south of Beulah, North Dakota. CCMC

proposed a lease by application (LBA) for federal coal resources underlying private surface lands 

in Mercer County, North Dakota. The lease area (referred to herein as LBA Tracts; serial number 

NDM-110277) consists of approximately 284 acres of private surface lands and federal minerals 

managed by the Bureau of Land Management (BLM) in the following locations:

• SW 1⁄4 Section 24, Township 143N, Range 89W (125 acres)

• SE 1⁄4 Section 26, Township 143N, Range 89W (158.5 acres) 

CCMC submitted the final LBA to the BLM on December 13, 2017. The BLM issued federal 

lease NDM-110277 to CCMC on November 1, 2020. CCMC currently operates the Coyote 

Creek Mine under Permit NACC-1302, which was approved by the North Dakota Public Service 

Commission (PSC). 

The LBA Tracts in Sections 24 and 26 are within Coyote Creek Mine’s permit area that was 

approved by the PSC (NACC-1302). On September 1, 2021, the PSC approved Revision 11 to 

Permit NACC-1302, which incorporated the federal coal in federal lease NDM-110277 into the 

state mining permit.

All coal from the Coyote Creek Mine is currently supplied to the Coyote Station coal-fired 

power plant adjacent to the permit area. The Coyote Station is jointly owned by the Otter Tail 

Power Company, Northern Municipal Power Agency, Montana-Dakota Utilities Company, and 

NorthWestern Energy. The Proposed Action would not change production levels at the Coyote 

Station or require changes to its current regulatory permits. If the mining plan is disapproved, the 

Coyote Station will continue to operate and be supplied with non-federal coal from other Coyote 

Creek Mine production areas. As needed, the Coyote Station would operate independently of the 

coal in the LBA Tracts. Although the Coyote Station is not considered a connected action, 

operating data from the power plant were evaluated to provide context and assist with analyzing 

the reasonably foreseeable future action of coal combustion sourced from the LBA Tracts. 

In accordance with the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. §§ 4321 

et seq., the Office of Surface Mining Reclamation and Enforcement (OSMRE) prepared the

accompanying Coyote Creek Mine Emergency Lease of Federal Coal, Serial Number: 

NDM-110277 Supplemental Environmental Assessment (hereafter, the SEA), to address 
Finding of No Significant Impact

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proposed mining activities affecting LBA Tracts in Sections 24 and 26 at the Coyote Creek 

Mine. The SEA provides an updated analysis of greenhouse gases and climate change impacts, 

including the potential social cost of greenhouse gases, that would be associated with the 

approval of the federal mining plan, i.e., the Proposed Action, or selection of the No Action 

Alternative. The SEA also incorporates by reference the analyses in the Coyote Creek Mine 

Lease by Application for Emergency Lease Sale of federal Coal, Serial Number: NDM-110277 

Environmental Assessment (hereafter 2020 EA) (reference (1)). 

B. Statement of Environmental Significance of the Proposed Action

This Finding of No Significant Impact (FONSI) is issued in conjunction with OSMRE’s review 

of the LBA Tracts, in light of the assessment of the 2023 SEA, 2020 EA, and 2023 Biological 

Assessment (BA). Under 30 C.F.R. § 746.13, the OSMRE recommends selecting and approving 

the Proposed Action for the reasons described in Section C, below. The undersigned person 

determined that approval of a federal mining plan authorizing the mining and recovery of the 

federal coal would not have a significant impact on the quality of the human or natural 

environment under NEPA Section 102(2)(C), 42 U.S.C. § 4332(2)(C); therefore, an 

environmental impact statement (EIS) is not required.

C. Reasons for a Finding of No Significant Impact

The OSMRE prepared the SEA to satisfy its requirements under NEPA. The SEA evaluates the 

potential social cost of greenhouse gases that would be associated with the approval of the 

federal mining plan, i.e., the Proposed Actions, or selection of the No Action Alternative. The 

SEA was prepared according to the requirements of NEPA; the Council on Environmental 

Quality (CEQ), Department of the Interior (DOI), and the federal regulations; and guidance 

regarding NEPA implementation. As part of the evaluation process, the OSMRE will make a 

recommendation to the Assistant Secretary, Land and Minerals Management (ASLM), on a new 

decision to approve, disapprove, or conditionally approve the federal mining plan. 

The OSMRE is the lead federal agency responsible for developing the SEA because, under the 

Mineral Leasing Act (MLA), the OSMRE will prepare a mining plan decision document 

(MPDD) in support of its recommendation to the ASLM regarding federal mining plans or 

mining plan modifications to either approve, conditionally approve, or deny the proposed mining 

plan. The ASLM will decide whether the mining plan is approved, conditionally approved, or 

disapproved. The Proposed Action would authorize mining approximately 5.2 million tons of 

federal coal. If the 5.2 million tons of federal coal from the LBA Tracts are mined continuously, 

it will represent approximately 24 months of coal production at the Coyote Creek Mine at the 

maximum mining rate of 2.6 million tons per year. However, the Coyote Creek Mine plans to 

mine this federal coal more slowly, blending federal coal with non-federal coal, over 

approximately 13 years. The projected mine life and operating plans of the Coyote Creek Mine, 

whether the ASLM approves the federal mining plan for the LBA Tracts, are anticipated to 
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extend through the year 2040. Therefore, the Proposed Action is a continuation of current surface 

mining. 

The SEA also analyzed the impacts of the No Action Alternative. Under the No Action 

Alternative, the OSMRE would not recommend, and the ASLM would not approve the proposed 

mining plan. However, mining would continue at the Coyote Creek Mine under existing permits, 

and non-federal coal would continue to be provided to the Coyote Station to generate electricity. 

The attached SEA and the 2020 EA incorporated by reference in the SEA disclose the potential 

environmental effects of the Proposed Action and provide sufficient evidence and support for 

this FONSI. The SEA was prepared by a third-party consulting firm at the direction of the 

OSMRE. During the SEA development, the OSMRE independently reviewed the document to 

ensure compliance with 43 C.F.R. part 46, Subpart D, and all relevant provisions of CEQ 

regulations and other program requirements. This independent review included the OSMRE’s 

evaluation of all environmental issues disclosed in the SEA and those identified in comments 

received from the public. The OSMRE takes full responsibility for the SEA’s accuracy, scope, 

and content. 

The undersigned has determined that, per the CEQ, DOI, and OSMRE regulations and guidance, 

the public involvement requirements have been met. The OSMRE conducted a 30-day public 

comment period for the SEA and unsigned FONSI from December 7, 2023 to January 5, 2024. 

All substantive public comments received to date have been fully considered in the SEA and in 

reaching this FONSI. Appendix B of the SEA includes the public comments received and the 

OSMRE’s responses. 

This FONSI is based on the potentially affected environment and degree of the effects of the 

Proposed Action per 40 C.F.R. § 1501.3(b). 

1. The affected area (national, regional, or local) and its resources, such as listed species 

and designated critical habitat under the Endangered Species Act: 

The potential to affect federally threatened or endangered species as well as proposed and final 

designated critical habitat that may occur within the designated analysis areas was evaluated by 

preparing a BA in 2023 to fulfill the requirements of the U.S. Fish and Wildlife Service

(USFWS) under section 7(c) of the Endangered Species Act of 1973 (ESA). The OSMRE made 

the following effects determinations to threatened and endangered species or critical habitat as a 

result of the Proposed Action. 
Finding of No Significant Impact

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Species or Critical Habitat Scientific Name Species Listing

Status

Effect Determination

Dakota skipper Hesperia dacotae Threatened May affect, not likely to adversely affect

Northern long-eared bat Myotis septentrionalis Endangered May affect, not likely to adversely affect

Pallid sturgeon Scaphirhynchus albus Endangered May affect, not likely to adversely affect

Piping plover Charadrius melodus Threatened May affect, not likely to adversely affect

Rufa red knot Calidris canutus rufa Threatened May affect, not likely to adversely affect

Whooping crane Grus americana Endangered May affect, not likely to adversely affect

The BA was submitted to the USFWS on January 18, 2024 for review and concurrence. The 

USFWS responded to the agencies’ BA with a letter on January 24, 2024, concurring with the 

determination of effects for the species listed above. 

2. Short- and Long-term Effects

The OSMRE evaluated the possible issues in the context of reasonably foreseeable activities, 

including mining of federal coal, combustion of that federal coal at the Coyote Station, and the 

associated social cost of greenhouse gases.

The SEA determined that disapproving the Proposed Action would not reduce global emissions 

in any meaningful way because the No Action Alternative has a very similar, but not perfectly 

identical, emissions profile. Under both the Proposed Action and the No Action Alternative, the 

same amount of coal is expected to be mined at the same annual rate, until 2040. Mining the 

federal coal under the Proposed Action would allow CMCC to pursue a more cost-effective 

mining sequence but is not anticipated to create an incentive or opportunity to mine additional 

coal. Any non-federal coal not mined under the Proposed Action is not expected to be mined at a 

later time, such as after 2040 when the mine is slated for closure. Therefore, while climate 

change does significantly impact the environment and the Proposed Action would produce 

climate changing emissions, there is no indication that the amount of greenhouse gas emissions 

from the Proposed Action as compared to the No Action Alternative would have a significant 

impact on climate change. 

The Proposed Action is consistent with previous approvals of federal mining plans and mining 

plan modifications that have been made in the area for several decades. No other anticipated 

effects have been identified that are scientifically controversial. Overall, there were no 

significant effects identified for the Proposed Action. 

3. Beneficial and Adverse Effects

Impacts of the Proposed Action are described in the attached SEA. The Proposed Action does 

not extend the life of the Coyote Creek Mine or change the mining rate; therefore, the overall 

annual amount of direct emissions is also not anticipated to increase from current levels with the 

Proposed Action. The Proposed Action would directly and indirectly contribute to greenhouse 
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gas emissions through activities at the Coyote Creek Mine and the coal combustion at the 

adjacent Coyote Station. Indirect emissions from burning the LBA Tracts’ coal would not change 

the total annual emissions at the Coyote Station because that coal will be similar to coal already 

being delivered, power production will be within permitted limits, and the amount of coal 

produced at Coyote Creek Mine and continuing to be delivered to the station would be 

essentially unchanged from current production levels already permitted under the No Action 

Alternative. 

The social cost of greenhouse gases from the Proposed Action is estimated to range from $120.6 

million to $1.2 billion based on the Interagency Working Group’s (IWG) Technical Support 

Document: Social Cost of Carbon, Methane, and Nitrous Oxide: Interim Estimates under 

Executive Order 13990 (reference (2). The IWG Interim SCC Report updated previous guidance 

from 2016. For federal agencies, the best currently available estimates of the social cost of 

greenhouse gases are the interim estimates of the social cost of carbon dioxide, methane, and 

nitrous oxide developed by the IWG. The estimated social cost of greenhouse gases for the 

Proposed Action is the same as is estimated for the No Action Alternative because the Proposed 

Action does not increase the coal mining rate, does not require additional mining equipment, and 

does not increase coal combustion by the Coyote Station. The Proposed Action provides federal

coal reserves to the Coyote Creek Mine, but the mine will continue operating at the current rate 

and providing private coal to the Coyote Station at the current rate. In other words, the Proposed 

Action does not cause an incremental increase in direct or indirect greenhouse gas emissions or 

potential associated social costs. Accordingly, emissions under the Proposed Action and any 

associated effects, monetized or otherwise, would not by definition produce any significant 

effects relative to the No Action Alternative. In any event, OSMRE currently lacks peer 

reviewed science or a similarly robust management tool allowing the agency to establish 

thresholds to determine the significance of quantifiable greenhouse gas emissions or social cost 

of an action in terms of the action's propensity to affect the climate, incrementally or otherwise.

There are no established thresholds for NEPA analysis to contextualize the quantifiable 

greenhouse gas emissions or social cost of an action in terms of the action's propensity to affect 

the climate, incrementally or otherwise. That said, the OSMRE acknowledges that all greenhouse 

gases contribute incrementally to climate change and cumulatively climate change significantly 

impacts the environment. However, disapproving the Proposed Action would not reduce global 

emissions in any meaningful way because the No Action Alternative has a very similar emissions 

profile. Therefore, while climate change does significantly impact the environment and the 

Proposed Action would produce climate changing emissions, there is no indication that the 

amount of greenhouse gas emissions from the Proposed Action would have a significant impact 

on climate change when compared to the No Action Alternative. 

None of the environmental effects discussed in the SEA or the 2020 EA incorporated by 

reference in the SEA are considered to be significant. 
Finding of No Significant Impact

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4. Effects on Public Health and Safety

The 2020 EA (reference (1)) evaluated emissions and effluent limits and confirmed they are 

within approved standards, as state permits require, thereby limiting potential impacts on public 

health. Potential risks to public health and safety would be negligible and occur over limited, 

brief periods. After full reclamation occurs, no public health or safety concerns are expected. 

5. Effects that Would Violate Federal, State, Tribal, or Local Law Protecting the 

Environment

The Proposed Action’s effects would not violate federal, state, tribal, or local laws protecting the 

environment. The Proposed Action is consistent with applicable plans, policies, and programs. 

As described in section 1.3 of the SEA, the Proposed Action is compliant with known federal, 

state, tribal, or local laws. The public, as well as state, tribal, and local stakeholders were given 

the opportunity to comment on the draft SEA. The OSMRE re-initiated ESA Section 7 

consultation the outcome of which is described in Section 1 of this FONSI. The OSMRE sent 

tribal consultation letters to the governments of the following Native American Nations that 

could be affected by the Proposed Action, inviting the following Tribes to consult on the 

Proposed Action. 

• Crow Tribe

• Crow Creek Sioux Tribe 

• Cheyenne River Sioux Tribe 

• Flandreau Santee Sioux Tribe 

• Fort Belknap Indian Community 

• Fort Peck Assiniboine and Sioux 

Tribes

• Lower Brule Sioux Tribe 

• Lower Sioux Indian Community 

• Mandan, Hidatsa, and Arikara 

Nation

• Northern Cheyenne Tribe 

• Oglala Sioux Tribe

• Rosebud Sioux Tribe 

• Santee Sioux Nation 

• Sisseton-Wahpeton Oyate of the 

Lake Traverse Reservation

• Spirit Lake Sioux Tribe

• Standing Rock Sioux Tribe 

• Turtle Mountain Band of Chippewa 

• Yankton Sioux Tribe 

The OSMRE did not receive comments or requests for formal consultation from Tribes.
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_______________________________ _________________________________ 

Marcelo Calle, Manager Date

Program Support Division 

Unified Regions 5, 7, 8, 9, 10 and 11 

OSMRE