Caballo West Tract Federal Mining Plan Modification EA for Permit No. 433 FONSI-1

U.S. DEPARTMENT OF THE INTERIOR

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

FINDING OF NO SIGNIFICANT IMPACT

Caballo Mine

Federal Coal Lease WYW172657

Federal Mining Plan Modification

A. Introduction

Peabody Caballo Mining, LLC (PCM) operates the Caballo Mine, which is located in Campbell 

County, Wyoming, approximately 10 miles south-southeast of Gillette. In 2011, the Bureau of 

Land Management (BLM) issued federal coal lease WYW172657 to PCM. The Wyoming 

Department of Environmental Quality (WDEQ)-Land Quality Division (LQD) issued Permit 

No. 433 in accordance with the Surface Mining Control and Reclamation Act of 1977 (SMCRA)

and the Wyoming State Coal Regulatory Program (30 CFR Part 950). If approved, this federal 

mining plan modification (the Project) would allow the mining of federal coal within lease 

WYW172657, and more specifically within a tract of land known as Caballo West tract, from the 

date of approval through the life-of-mine (LOM). The accompanying Caballo Mine, Federal Coal 

Lease WYW172657, Mining Plan Modification Environmental Assessment (hereafter, the EA) details 

the environmental effects of this Project, beginning in 2019 through the LOM for the area. The 

EA incorporates by reference the Final Environmental Impact Statement for the South Gillette 

Area Coal Lease Applications (hereafter 2009 SGAC EIS).

On November 30, 2015, WDEQ-LQD approved PCM’s application to amend Mine Permit 

No. 433 to include the Caballo West tract. As discussed in EA chapter 4, mitigation measures 

required by WDEQ-LQD Permit No. 433 (in accordance with WDEQ-LQD Rules and 

Regulations) and Air Permit MD-1477 will offset/reduce potential resource impacts. 

B. Statement of Environmental Significance of the Proposed Action

Pursuant to 30 CFR Part 746, the Office of Surface Mining Reclamation and Enforcement 

(OSMRE) is recommending selection and approval of the Proposed Action (see section C). The 

undersigned person has determined that approval of a federal mining plan modification 

authorizing continuation of mining operations for approximately 8.9 more years and additional 

surface disturbance of approximately 866.7 acres to recover the federal coal would not have a 

significant impact on the quality of the human environment under section 102(2)(C) of the 

National Environmental Policy Act (NEPA), 42 USC 4332(2)(C); therefore, an Environmental 

Impact Statement (EIS) is not required.

C. Reasons for a Finding of No Significant Impact

OSMRE prepared the EA to satisfy OSMRE’s requirements under NEPA. OSMRE prepared this 

EA to evaluate the environmental effects resulting from approving federal mining plan 

modification request related to WYW172657, pursuant to the requirements of NEPA; the 

Council on Environmental Quality (CEQ), DOI, and OSMRE regulations; and guidance regarding 

implementing NEPA. As part of the evaluation process, OSMRE will make a recommendation to 

the Assistant Secretary of Lands and Minerals (ASLM) on a new decision to approve, disapprove, 

or approve the federal mining plan modification with conditions. 
Finding of No Significant Impacts

FONSI-2 Caballo West Tract Federal Mining Plan Modification EA for Permit No. 433

OSMRE is the lead federal agency responsible for development of this EA because, under the 

SMCRA and Mineral Leasing Act (MLA), 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, approve with conditions, or deny the proposed federal 

mining plan modification. The ASLM will decide whether the federal mining plan modification is 

approved, disapproved, or approved with conditions. As such, this EA followed the CEQ’s, DOI’s, 

and OSMRE’s regulations and guidance for implementing NEPA. The EA analyzed the potential 

impacts associated with the Proposed Action and No Action Alternative. The Proposed Action 

would authorize mining of approximately 130.2 million tons (Mt) and recovery of approximately 

119.8 Mt of additional federal coal, at an estimated rate of 13.5 million tons per year (Mtpy) and 

with a surface disturbance of 866.7 acres. The Proposed Action includes design features to reduce 

or eliminate potential adverse impacts to the environment.

The EA also analyzed the impacts of the No Action Alternative. Under the No Action Alternative,

OSMRE would not recommend and the ASLM would not approve the proposed federal mining 

plan modification. 

The attached EA considers the Proposed Action and a reasonable range of alternatives to the 

Proposed Action, discloses the potential environmental effects of the Proposed Action and 

reasonable alternatives, and provides sufficient evidence and support for this Finding of No 

Significant Impacts (FONSI). The EA was prepared by a third-party consulting firm at the direction 

of OSMRE. During the development of the EA, OSMRE independently reviewed the document 

to ensure compliance with 43 CFR Part 46, Subpart D and all relevant provisions of CEQ 

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

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

received from the public. OSMRE takes full responsibility for the accuracy, scope, and the content 

of this document.

The undersigned has determined that, per CEQ, Department of Interior (DOI), and OSMRE 

regulations and guidance, the public involvement requirements have been met. OSMRE conducted 

public scoping regarding the preparation of the EA from December 19, 2018 through 

January 18, 2019. However, the OSMRE Western Region website was inaccessible from late 

December 2018 through January 2019 due to the government shutdown. Therefore, OSMRE 

extended the scoping period from February 7, 2019 through February 22, 2019. Additional 

outreach occurred from May 16, 2019 to June 17, 2019 with release of the EA and unsigned 

FONSI. All substantive public comments received to date have been fully considered in the EA

and in reaching this FONSI (see EA Appendix A and B).

This finding is based on the context and intensity of the proposed federal mining plan modification 

that would be conducted under the Proposed Action, as described in the following paragraphs.

a) Context: This means that the significance of an action must be analyzed in several contexts 

such as society as a whole (human, national), the affected region, the affected interests, and 

the locality. Significance varies with the setting of the proposed action. For instance, in the 

case of a site-specific action, significance would usually depend upon the effects in the locale 

rather than in the world as a whole. Both short- and long-term effects are relevant.
Finding of No Significant Impacts

Caballo West Tract Federal Mining Plan Modification EA for Permit No. 433 FONSI-3

PCM proposes to meet demand for coal and continue mine operations for approximately 

33 years by

1. securing federal mining plan modification approval authorizing mining of leased federal 

coal within a previously authorized area (i.e., WYW172657) and

2. continuing to mine, process, and transport coal from the Caballo Mine.

Approval of the Proposed Action is a site specific action that would authorize recovery of 

approximately 119.8 Mt of federal coal at a maximum rate of 13.5 Mtpy and a surface 

disturbance of 866.7 acres. The effects of the action have been analyzed at the local and 

regional scale.

b) Intensity: This refers to the severity of impact. Responsible officials must bear in mind that 

more than one agency may make decisions about partial aspects of a major action. The 

following should be considered in evaluating intensity.

The 10 significance criteria in the federal regulations at 40 CFR 1508.27 have been considered 

in evaluating the severity of impacts.

1. Impacts that may be both beneficial and adverse:

Beneficial and adverse impacts of the Proposed Action are described in the attached EA. 

Environmental design features to reduce potential short-term and long-term impacts to 

topography, air quality, water resources, vegetation, fish and wildlife, threatened and endangered 

(T&E) species, cultural resources, visual resources, and soils are incorporated into the design of 

the Proposed Action. Additionally, mitigation measures related to air quality, migratory birds, 

special status species, cultural resources, and paleontological resources are required by the 

state-approved mine permit and stipulations to the federal coal lease, and approved mining plan.

As discussed in section 4.4.5 of this EA, the contribution of the Proposed Action to greenhouse 

gas (GHG) emissions to Campbell County totals would be minor and short-term. The direct 

impacts on air quality from a state and U.S. comparison are considered to be moderate and shortterm (EA section 4.4.5.1). Indirectly, the Proposed Action would contribute to criteria 

emissions and GHG emissions through rail transport and the combustion of coal at power plants 

located throughout the U.S. The indirect impacts on air quality are considered moderate and 

short-term. The direct and indirect effects to topography, geology, water resources, soils, 

vegetation, fish and wildlife, species of special interest, land use, visual resources, noise, and 

transportation are considered moderate, short-term, long-term, and permanent (EA Sections 

4.2, 4.3, 4.8-4.11, and 4.13-4.15). Impacts to weltands/aquatic resources and hazardous and 

solid waste would be minor and short-term (EA Sections 4-7 and 4-16). Impacts to cultural 

resources would be negligible and long-term (EA Section 4.12).

The Proposed Action would result in moderate and short-term impacts to socioeconomics in 

the area of influence. There would be an extension of employment for approximately 156

employees, primarily from Campbell County of up to approximately 8.9 years. The Proposed 

Action represents an estimated economic impact to this area over the LOM of wages, goods and 

services related to the mining operation, and payment of federal, state, and local taxes. The 

socioeconomic impacts are derived from payroll, insurance, retirement contributions, local 

expenditures, taxes, and federal coal royalty payments (EA Section 4.17).
Finding of No Significant Impacts

FONSI-4 Caballo West Tract Federal Mining Plan Modification EA for Permit No. 433

None of the environmental effects discussed in the EA are considered to be significant.

2. The degree to which the Proposed Action affects public health or safety:

The EA project area is located entirely on private lands. Public access to the area affected by 

mining are strictly controlled by the mine. All mine activities with potential public exposure would 

also be subject to state mine permit approval and review by the Mine Safety and Health 

Administration (MSHA), which include safety standards. Precautions for public health and safety 

would also be implemented during transport of equipment along public roads to and from the EA 

project area. Emissions and effluent limits are within approved standards, as required by state 

permits, thereby limiting potential impacts to public health. Noise levels at the nearest residences 

would be well below levels that would affect human health. According to EA sections 4.4, 4.14, 

and 4.15, potential risks to public health and safety would be negligible and would occur over 

limited, brief periods. After full reclamation has occurred, no public health or safety concerns are 

expected, and the land would be suitable for historical uses of grazing and wildlife uses and 

recreational use.

3. Unique characteristics of the geographic area such as proximity to historic or cultural 

resources, park lands, prime farm lands, wetlands, wilderness, wild and scenic rivers, or 

ecologically critical areas:

As discussed in EA sections 4.8, 4.10, 4.11, and 4.12, there are no park lands, prime 

farmlands, wilderness, wild and scenic rivers, or ecologically critical areas within the EA project 

area. There are approximately 1.79 acres of aquatic features within and adjacent to the tract 

boundary (see EA section 4.7). Inventories of historic or cultural resources have been 

completed for the EA project area and, as confirmed by the Wyoming State Historic Preservation 

Office (SHPO), no sites within the Proposed Action tract are classified as National Register of 

Historic Places (NRHP) eligible sites that would require mitigation prior to disturbance (see EA 

section 4.12). Additional cultural resources discussions are included below under Item 8.

4. The degree to which the impacts on the quality of the human environment are likely to 

be highly controversial:

As a factor for determining within the meaning of 40 CFR 1508.27(b)(4) (whether or not to 

prepare a detailed EIS) “controversy” is not equated with “the existence of opposition to a use.” 

Northwest Environmental Defense Center v. Bonneville Power Administration, 117 F.3d 1520, 1536 (9th 

Cir. 1997). The term ‘highly controversial’ refers to instances in which “a substantial dispute 

exists as to the size, nature, or effect of the major federal action rather than the mere existence 

of opposition to a use” Hells Canyon Preservation Council v. Jacoby, 9 F.Supp.2d 1216, 1242 (D. Or. 

1998).

The EA has analyzed the direct and indirect effects on and from climate change and, as discussed 

in EA section 4.4, determined the effects to be moderate and short-term. Approvals of federal 

mining lands and mining plan modifications have been made in the area for several decades. The 

environmental design features and reclamation plan would reduce the effects on the environment; 

or, in some cases, would improve the current condition (e.g., soils, vegetation, and wildlife 

habitat). No other anticipated effects have been identified that are scientifically controversial.
Finding of No Significant Impacts

Caballo West Tract Federal Mining Plan Modification EA for Permit No. 433 FONSI-5

5. The degree to which the possible effects on the human environment are highly uncertain 

or involve unique or unknown risks:

As discussed above, there are no effects on the human environment under the Proposed Action

that are highly uncertain or involve unique or unknown risks. OSMRE has experience 

implementing similar actions in similar areas.

6. The degree to which the action may establish a precedent for future actions with 

significant effects or represents a decision in principal about future considerations:

This decision is not precedent setting. The issues considered in the EA were developed by 

OSMRE within the context of past, present, and reasonably foreseeable actions. Significant 

cumulative impacts are not anticipated.

7. Whether the action is related to other actions with individually insignificant but 

cumulatively significant impacts – which include connected actions regardless of land 

ownership:

OSMRE evaluated the possible issues in context of past, present, and reasonably foreseeable 

activities, including past, present, and reasonably foreseeable mining for the Caballo Mine and 

other mining operations in the region, the combustion of that coal at coal-fired power plants, 

agriculture, livestock grazing, recreation, and oil and gas development. 

Both the indirect and cumulative effects of coal combustion were disclosed in the EA. There were 

no significant cumulative effects identified (EA section 4.4.5).

8. The degree to which the action may adversely affect districts, sites, highways, structures, 

or other objects listed in or eligible for listing in the National Register of Historic Places 

(NRHP) or may cause loss or destruction of significant scientific, cultural, or historical 

resources:

The EA project area was surveyed for cultural and historic resources and, as confirmed by the 

Wyoming SHPO, no NRHP-eligible sites have been identified within the Proposed Action tract

(see EA section 4.12). 

BLM consulted representatives of 18 Native American tribes during the preparation of the 2009 

SGAC EIS. In addition, OSMRE sent out public outreach and Tribal consultation letters to 24

Native American tribes/tribal representatives that could be affected by the Proposed Action 

evaluated in this EA. On March 14, 2019 the Comanche Nation stated that the location of the 

Project had been cross referenced with the Comanche Nation site files and an indication of “No 

Properties” have been identified. On March 26, 2019 the Cheyenne and Arapaho tribes 

responded that the project is categorized as No Adverse Effect.
Finding of No Significant Impacts

FONSI-6 Caballo West Tract Federal Mining Plan Modification EA for Permit No. 433

9. The degree to which an action may adversely affect a threatened or endangered (T&E) 

species or its habitat that has been determined to be critical under the Endangered 

Species Act of 1973 (ESA):

The potential to encounter T&E species, as well as proposed and final designated critical habitat 

that may occur within the Caballo West tract and/or may be affected by the Proposed Action, 

was evaluated by utilizing the U.S. Fish and Wildlife Service’s (USFWS) Information, Planning, and 

Conservation (IPaC) system and Natural Resource and Energy Explorer (NREX). As described 

in correspondence from the USFWS (2018b), IPaC species assessments fulfill the requirements 

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

suggests that a biological evaluation similar to a biological assessment be prepared to determine 

whether the project may affect listed or proposed species and/or designated or proposed critical 

habitat. A detailed biological assessment, including conservation measures, was included in 

Appendix E of the 2009 SGAC EIS and updated in EA sections 3.9.1 and 4.9.1.1 (Vegetation) 

and EA sections 3.10.3 and 4.10.4 (Wildlife).

The current USFWS list of vertebrate T&E species that may occur in Campbell County includes 

the northern long-eared bat (Myotis septentrionalis). Since the Caballo West tract lies within the 

area of impact (AOI) for the northern long-eared bat and the white noise syndrome (WNS) zone, 

OSMRE has an obligation to consult with USFWS. OSMRE has complied with the programmatic 

biological opinion (BO) and fulfilled the Section 7 consultation requirements under the 

Endangered Species Act through submission of the Northern Long-eared Bat 4(d) rule 

streamlined consultation form to the Wyoming Ecological Field Services Office. On March 29, 

2019 OSMRE received a memorandum from USFWS indicating that, although the Proposed 

Action may affect the northern long-eared bat, there are no effects beyond those previously 

disclosed in the USFWS’s programmatic biological opinion for the final 4(d) rule (USFWS 2019b). 

Therefore, the programmatic biological opinion satisfies OSRMRE’s responsibilities under section 

7 of the ESA relative to the northern long-eared bat.

In 2009 and 2010, surveys for Ute ladies’-tresses were conducted on the Caballo Mine permit 

area and the tract. No Ute ladies’-tresses were identified (PCM 2014). In addition, the USFWS 

has not designated any “critical” habitat for this species in the vicinity of the Caballo Mine at this 

time (USFWS 2018b). Given the fact that no Ute ladies’-tresses have been documented within or 

adjacent to the Caballo West tract, the direct and indirect effects related to the Proposed Action 

on T&E species on vegetation would be negligible and short term (8.9 years).

In the unlikely event that T&E species would be encountered as a result of the Proposed Action, 

they would be temporarily displaced; however, current reclamation practices in place at the 

Caballo Mine would promote the return of temporarily displaced T&E species once reclamation 

has been completed.

10. Whether the action threatens a violation of a federal, state, local, or tribal law, 

regulation, or policy imposed for the protection of the environment, where non-federal 

requirements are consistent with federal requirements:

As described in EA section 1.2.3, the Proposed Action is in compliance with known federal, 

state, local, or tribal laws or requirements imposed for the protection of the environment. During 

the public and agency involvement for this EA, state, local, and tribal interests were given the 
Finding of No Significant Impacts

Caballo West Tract Federal Mining Plan Modification EA for Permit No. 433 FONSI-7

opportunity to participate in the EA process. The Proposed Action is consistent with applicable 

plans, policies, and programs.