The Bureau of Land Management has to decide if it will allow an energy company to mine over 4 million more tons of coal near Steamboat Springs.
Peabody Energy has applied to lease 1 more square mile of federal coal west of Steamboat as part of an ongoing mining operation.
The BLM says it will make the decision according to the energy policies of the Trump administration.
The agency 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.
Peabody officials say the lease would also help the mine to continue at its current employment level of 365 people.