SUPPLEMENTARY INFORMATION:

OSM Western Region, U.S. Department of the Interior Regions 5, 7-11, prepared an EIS for the No Name SMCRA Permit application (Project). In accordance with SMCRA, OSM must approve the Project, disapprove the Project, or approve the Project with conditions because the Project is on Indian lands, as that term is defined under SMCRA, including tribal lands with leased tribal coal (BIA Mine Lease 14-20-603-2505). The lease agreement grants NTEC the right to mine within the lease area; however, mining cannot occur until a SMCRA permit is obtained. The Navajo Nation owns the surface and mineral rights of the entire lease area and the permit areas located within it.

The No Name Permit area is located on the Navajo Nation approximately 22 miles from Farmington, New Mexico. The proposed surface coal mine is within NTEC's existing Navajo Mine Lease 14-20-603-2505, located adjacent to the southern boundary of NTEC's existing Navajo Mine operating area (OSM Permit No. NM-0043A). The No Name Permit area covers 11,526 acres, completely within tribal lands, and the current surface land use is grazing. The Project would allow for 9,042 acres of additional surface disturbance and production of 502,984,700 tons of recoverable coal, extending the life of the mine to 2136. The initial permit will be for five years with a right of renewal for the life of the mine as long as all legal requirements are met.

Purpose and Need for the Proposed Action

OSM's purpose and need for the EIS is for OSM to analyze NTEC's SMCRA permit application package to mine Navajo Nation coal on approximately 11,526 acres from Areas 4 South and 5 within the Navajo Mine Lease Area (BIA 14-20-603-2505). Under the Department's Handbook of National Environmental Policy Act Implementing Procedures, 516 DM 1 Section 2.2, “when the proposed action concerns a bureau's duty to act on an application for authorization, the purpose and need for the proposed action will also be informed by the goals of the applicant.” Here, NTEC informed OSM that NTEC's goal is to exercise its valid existing rights granted by the Navajo Nation under BIA Mine Lease No. 14-20-603-25205 to access and mine Navajo Nation coal resources, to continue to provide coal to the Four Corners Power Plant for the duration of operations there, and to provide coal to future customers if the Four Corners Power Plant shuts down. NTEC was created by the Navajo Nation to exercise sovereignty over its natural resources.

Proposed Action and Alternatives

The FEIS analyzes three alternatives: the No Action Alternative, the Proposed Action Alternative, and the Avoid Pinabete Arroyo Alternative.

The No Action Alternative evaluates the effects of OSM not approving the Project. Under this alternative, NTEC would continue to be able to mine coal within its existing SMCRA permit boundaries but would not be authorized to expand the mine to include the proposed No Name Permit area covering an additional 11,526 acres, would not disturb 9,042 acres of additional surface disturbance, and would not produce the approximately 502,984,700 tons of recoverable coal.

The Proposed Action Alternative evaluates the effects of approval of a new SMCRA permit area within Area 4 South and Area 5 of NTEC's existing Navajo Mine Lease 14-20-603-2505, located on the western flank of the San Juan Structural Basin south of the Navajo Mine (the No Name SMCRA Permit), authorizing the disturbance of 9,042 acres and the production of approximately 502,984,700 tons of recoverable coal. Under this alternative, the life of the mine would depend on the rate of production. To account for this uncertainty, the Proposed Action considers two demand alternatives that were included in NTEC's permit ( printed page 56205) application package: (1) a low demand alternative—mining up to 5 million tons of coal per year, and (2) a high demand alternative—mining up to 15 million tons of coal per year. This alternative also considers the diversion of the Pinabete Arroyo into No Name Arroyo to mine in Area 4 South, as well as realignment of 7 miles of Burnham Road.

The Avoid Pinabete Arroyo Alternative evaluates the effects of approval of the No Name SMCRA permit with a condition that avoids mining through Pinabete Arroyo in Area 4 South. The Avoid Pinabete Arroyo Alternative was identified during the scoping process. Under this alternative, there would be no need for a diversion of Pinabete Arroyo into No Name Arroyo, although mining equipment would need to cross the arroyo to access the areas west of Pinabete Arroyo. Because this alternative would reduce the area available for mining within the permit area, the total recovery of coal would be less than estimated for the Proposed Action.

Based on the analyses contained in the FEIS, OSM selected the Proposed Action as the preferred alternative.

Summary of Expected Impacts

The FEIS evaluated the following reasonably foreseeable effects of the Project:

• Air Quality and GHG Emissions
• Cultural Resources
• Fish and Wildlife
• Geology, Mineral Resources and Paleontology
• Hazardous and Solid Waste
• Public Health and Safety
• Land Use and Transportation
• Noise and Vibration
• Socioeconomics
• Vegetation and Invasive Species
• Visual Resources
• Water Resources and Hydrology

Anticipated Permits and Authorizations

SMCRA permit.

Public Participation

OSM issued a notice of intent (NOI) to prepare an EIS in the Federal Register on January 15, 2026, announced the NOI through a news release and on its website, and hosted a 20-day public scoping period. OSM requested public scoping comments to identify any additional relevant issues concerning the proposed SMCRA permit that should be evaluated in the EIS. Public comment on the Project was accepted through mail, email, and during a public scoping meeting. OSM received 37 comment letters during the public scoping period. Comment letters received during the public scoping periods were reviewed, and a description of issues analyzed are summarized in the FEIS.

Lead and Cooperating Agencies

OSM is the lead agency for this EIS. The Bureau of Land Management, Environmental Protection Agency, Navajo Nation Department of Agriculture, Navajo Nation Mineral Program, and Navajo Nation Department of Fish and Wildlife are cooperating agencies.

Decision Maker

OSM.

OSM Decision

Informed by, at a minimum, the material required at 30 CFR 746.13, including information prepared in compliance with NEPA, OSM must make a decision about the proposed No Name SMCRA permit application. As documented in the ROD, OSM will approve the No Name SMCRA permit application.

91 FR 56204