BUDGET AND PERSONNEL

The source of funds for these programs is described under the Conservation of Lands and Minerals Budget Activity in the Geological Survey Budget. Funds for these activities have increased by 10.4 percent to almost $85.5 million in fiscal year 1979. Program obligations for fiscal years 1978 and 1979 are shown in the table. The OCS lands subactivity was appropriated about $49.1 million an increase of 6.8 percent over the appropriation for fiscal year 1978. In fiscal year 1979, funding for the Federal and Indian lands subactivity increased to a total of approximately $36.2 million, which represents a 15.7-percent increase.

In response to an increased workload, the Division has expanded its employment base in such areas as economics, automated data processing, and environmental sciences, in addition to the traditional disciplines of geophysics, geology, and petroleum and mining engineering.

On June 1, 1979, Interior Secretary Cecil W. Andrus established a new program directed at the development of Federal coal reserves in ways acceptable to State and local governments, the coal industry, environmental groups, and the public. This program was established after 2 years of intensive study by the Department of the Interior. The program allows for the competitive leasing of Federal coal to be resumed for the first time since an informal moratorium was imposed in 1971. Geological Survey personnel made major contributions in formulating the Secretary's Federal Coal Management Program by participating on task forces analyzing individual aspects of the Program; by assisting in the Secretary's Office of Coal Leasing, Planning, and Coordination; and by recommending various options for the Secretary's decisions.

The Federal Coal Management Program has two distinct elements, issuance of new leases and the management of new and existing leases. The major prelease activities in the competitive leasing phase support BLM in land use planning, activity planning, and lease sales; the major postlease activity is management of operations on leases. The Geological Survey provides geologic, engineering, and economic evaluation input primarily in the prelease program elements.

A critical portion of land use planning is the identification of areas with high and moderate potential for minable coal. Only areas of high or medium potential are considered for competitive leasing. By using established geologic and economic criteria, the Survey classifies lands with respect to their coal potential and land with minable coal into Known Recoverable Coal Resource Areas (KRCRA's). These areas are mapped to show their coal potential as part of the Coal Resource Occurrence/Coal Development Potential (CRO/CDP) Program. Data used in this analysis come from public, private, and industry sources. To date, this project has identified lands containing approximately 76.2 billion tons of Federal coal of high and medium development potential. Initial tract delineation is proceeding in the Green River-Ham's Fork, Uinta SW Utah, and Alabama coal regions. Tract profile reports prepared by the Survey provide data on the geologic, engineering, environmental, social, and economic impacts of mining on each tract delineated. Tract selection, ranking, and regional environmental impact statements follow delineation.

After a sale is scheduled by the Secretary of the Interior, the Geological Survey must calculate the Coal Resource Economic Value (CREV) for each tract to be offered. CREV forms an integral part of the fair-market value or the minimum acceptable bid for each tract. The

concept of fair-market value assures that the people of the United States receive a fair price for potential resources to be leased.

Outstanding preference right lease applications will be examined to determine the existence of commercial quantities of coal. Modifications of lease boundaries, right-of-way cases, emergency lease sales, and proposed land exchanges are also being evaluated.

In fiscal year 1979, the Survey conducted 26 economic evaluations of coal, completed 146 quadrangles as a part of the CRO/CDP Mapping Program, classified over 1.25 million additional acres in KRCRA's, completed administrative work on one comprehensive coal exchange and continued work on another, and conducted drilling operations (fig. 1) and drilled 606 holes with a cumulative depth of approximately 300,000 feet.

The Geological Survey is responsible for the review and approval of exploration plans submitted by coal lessees on Federal and Indian lands and for the inspection and enforcement of regulatory requirements, including reclamation of areas disturbed by exploration activities. During fiscal year 1979, coal lessees drilled 2,791 holes for a total footage of 610,088.

The Survey is also responsible for the review and approval of mining plans submitted by coal lessees on Federal and Indian lands and for the inspection and enforcement of regulatory requirements pertaining to coal mining operations based on the requirements mandated by the Mineral Leasing Acts. The regulations include rules concerning the formation of logical mining units, diligent development, maximum economic recovery, protection of other mineral resources from damage by coal mining operations, and the collection of royalties.

In addition to the supervision of exploration and mining operations by lessees on Federal lands, the Survey assists BLM in its responsibilities on coal leases by providing geologic, engineering, and economic evaluations when required in the periodic readjustment of the terms and conditions of coal leases, including changes in royalty rates and lease exchanges.

The production of coal was 55.6 million tons from Federal lands and 21.3 million tons from Indian lands during fiscal year 1979. Royalties derived from Federal and Indian leases amounted to $24 million.

The environmental protection and reclamation responsibilities of coal mining operations were transferred from the Geological Survey to the Office of Surface Mining (OSM) by the Surface Mining Control and Reclamation Act of 1977. The Survey, OSM, and BLM have finalized a memorandum of understanding for the purpose of coordinating their activities.

Figure 1.-Coal drilling and mining operations in Colorado.