The Bureau of Land Management has to decide if it will allow an energy company to mine up to 4.1 million more tons of coal in northwest Colorado.
The Denver Post reports Peabody Energy has applied to lease 1 more square mile of federal coal west of Steamboat Springs as part of an ongoing mining operation.
The agency says it will make the decision under the President Donald Trump administration's energy policies.
BLM says Peabody estimates it could recover 4.1 million tons of coal from the lease area, generating about $13 million in royalties, half of which would go to Colorado.
The lease would help the mine to continue at its current employment level of 365 people.