By Dennis Webb

May 10, 2016 - A federal appeals board overturned the approval of a coal lease that would add nearly 1,800 acres and 8 million tons of reserves to the currently idled Bowie No. 2 Mine near Paonia.

The Interior Board of Land Appeals set aside the Bureau of Land Management’s approval of what’s called the Spruce Stomp lease, saying it had no legal effect because the BLM official who approved the lease lacked the authority to do so. Barbara Sharrow, manager of the Uncompahgre Field Office, issued the approval, which the interior board says was something only officials in the state-level BLM office were authorized to do.

“We’re reviewing the decision to see what comes next,” said Steven Hall, a spokesman for the Colorado BLM office.

The ruling on the technicality meant the board did not consider more substantive aspects of the appeal, which had been brought by WildEarth Guardians. The group had challenged the adequacy of the environmental assessment of the lease application, when it comes to issues ranging from air quality impacts to impacts from possible exporting of the coal by the mine.

Bowie Resource Partners, the mine’s owner, idled the mine earlier this year, citing continued deterioration in the coal market and the need to evaluate the future market. The action came at a time of continuing setbacks in the industry, including bankruptcies of major companies.

The world’s largest privately owned coal company, Peabody Energy, recently filed for Chapter 11 bankruptcy reorganization, and a deal for Bowie to buy Peabody’s Twentymile Mine in Routt County fell through after Bowie apparently was unable to obtain financing.

Jeremy Nichols of WildEarth Guardians said by email, “While Bowie No. 2 is idled right now, there’s no indication that the company won’t be restarting operations in the near future, especially as Bowie continues its push to lock in more coal export capacity on the West Coast.

“We won on the basis that the lease was inappropriately approved by the wrong official. It really underscores just how out of whack the BLM’s coal management program is; that the agency doesn’t even know who has the authority to make decisions is a disturbing sign. It really highlights the importance of the Interior Department’s current reform push and the need for a sweeping review of the coal program.”

Interior’s review of the program includes looking at things such as environmental impacts and the appropriateness of current royalty rates. The Interior Department is holding a meeting June 23 from 10 a.m. to 4 p.m. at the Avalon Theatre in Grand Junction as part of its review.

Bowie could not be reached for comment Friday on the IBLA decision.