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| 4/11/2008 11:42:00 AM | Email this article • Print this article |
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| Horizon Nevada Uranium Inc. President Bill Wilson attended the April 2 informational meeting in Fairplay. (Photo by Mike Potter/The Flume) |
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HASP holds meeting on uranium mining
Lynda James
Correspondent
(This is part one of a two-part
article related to the HASP meeting.)
Roughly 75 people heard experts field questions for approximately one and a half hours after their presentations on in-situ uranium mining in South Park at a meeting in Fairplay on April 2.
The meeting was sponsored by the Headwater Authority of the Upper South Platte. HASP is a joint business venture between the Center of Colorado Water Conservancy District and the Upper South Platte Water Conservancy District.
Among the speakers was William Wilson, president and chief executive officer of New Horizon Uranium Corp., the company proposing in-situ uranium mining northeast of Hartsel along the Elk Horn Road. The county road bisects South Park from Como to Hartsel.
Wilson said the company has approximately 25,000 acres of land leased in Wyoming, Colorado, Utah and Nevada for both traditional surface/underground and in-situ uranium mining operations.
Wilson opened the meeting by explaining the time frame of operations. The company is now in the first stage of a five- stage process.
During the first stage that will last about one year, the company will stake claims, acquire leases from surface property owners and select target areas for exploration drilling. The company plans to drill 20 holes to identify areas for mining uranium.
During stage one, surface and groundwater samples will be taken and tested for uranium content. Wilson said the company would sample private wells at the request of the property owner.
Stage two would involve drilling approximately 1,000 holes to establish the extent of the uranium ore body. Then a mining feasibility study would be completed. That would take between one and two years.
During stage three, applications for all federal, state, and local permits would be submitted. It could take up to three years to receive all permits.
Permits Wilson mentioned include an exempt aquifer permit form the United States Environmental Protection Agency, permits from the Colorado Department of Public Health and Environment, a surface reclamation permit for Colorado Department of Reclamation Mining and Safety and any permits that Park County would require.
Stage four, mining, would commence once all permits are received. Wilson anticipated that would be seven or eight years from now. He said mining would probably last five to seven years.
Stage five, restoration of the well field and surface reclamation, would take about three years after mining was completed.
The second speaker at the April 2 meeting was Jeffrey Parsons, senior attorney with Western Mining Action Project based in Lyons, Colo. Parsons said the organization is a non-profit that provides legal representation for citizen groups on mining issues. He is currently working with a citizens' group in Weld County where Powertech Uranium Corp. has proposed an in-situ uranium mining operation.
Parsons said the large increase in uranium mining claims over the past few years is due to the rise in uranium prices, which have jumped from $7 a pound in 2001 to $70 per pound today. Prices peaked last year at about $120 a pound.
Parson said even though the mining process uses harmless substances such as oxygen, carbon dioxide and baking soda, it isn't harmless. These substances not only release uranium from the ore body, they also release any other heavy metals found in the rock. These are then all pumped to the surface.
According to Parsons, several issues exist including "excursions" where the aquifer in the geologic formation being mined and used to transport uranium travels to other groundwater aquifers.
Water under pressure is pumped into the mining zone and then pumped back to the surface. The geologic layers above and below the mining area must be impermeable (water can not travel through them) to prevent contamination of other aquifers. Parsons said cross-contamination can happen if the subsurface is fractured or if wells are nearby.
"Track records of the companies show there are excursions," Parsons said.
A second issue, Parsons said, is that national regulations require companies to attempt to restore the mined aquifer to pre-mining standards. "Again, the track record is fairly poor," Parsons said.
Three examples were cited by Parsons. In Texas where 32 mines exist, groundwater regulations were lowered so companies could meet the standards.
In Wyoming, the Smith Ranch Highlands Mine was cited for violations on March 10, 2008, for several reasons, including lack of groundwater restoration. Parsons said that 10 years after mining has ceased, the aquifer is in the same condition as it was when mining stopped.
Another example was near Grover in Weld County, where post-restoration of 1980s mining shows a 16-fold increase in radiation in the aquifer. Grover is near the Wyoming, Nebraska, and Colorado state lines.
Wilson disagreed with Parsons that the mining industry's track record was poor. He didn't cite any examples, saying he didn't have the data with him.
Parsons also elaborated on the permits needed to mine. The EPA exempt-aquifer permit requires a mining company to prove the aquifer in the formation to be mined is not currently being used as drinking water and contains economically viable minerals.
The Bureau of Land Management, which manages minerals owned by the federal government (as is the case in most of Park County), will require a process from the National Environmental Protection Act, known as NEPA. If a surface owner signs a lease with a mining company, the process is not as detailed as when an owner does not sign a lease. Then a full-blown NEPA process will be required.
Parsons said regulations by both the Colorado Department of Reclamation, Mining and Safety and Colorado Department of Public Health and Environment did not specifically address uranium in-situ mining.
He said House Bill 1161, a bi-partisan bill that just passed Colorado's House of Representatives, will set standards for in-situ mining reclamation, permits and restoration of groundwater. It now will be heard by Colorado's Senate.
Wilson said he had opposed the original bill and worked to get it amended. "We can live with it," he said.
In 2003, said Parsons, CDPHE amended its regulations to include mitigation of socio-economic impacts from mining. He said a recent court case had upheld denying a CDPHE permit based solely on socio-economic impacts.
Parsons also cited another case in which Summit County won a Colorado Court of Appeals decision upholding the county's regulations governing mining operations. That case has been appealed by the mining company to the Colorado Supreme Court. Parsons expects a decision from the Supreme Court by the end of the year.
The third speaker at the April 2 meeting was James O'Brien, certified geologic consultant and college professor.
O'Brien explained that in-situ mining involves a series of injection wells and another series of extraction wells. He said that in addition to having a confined aquifer that is not connected to another aquifer, the company must prove "the aquifer does not have water good enough to be drinking water."
O'Brien said the company would probably have to fracture the rock formation it is mining. That is usually done by pumping down sand to break up the rock formation.
He said all wells would need to be double-cased to reduce the possibility of "excursions." But even then, he said, failure of the system is possible in several places. He said the high pressure needed to inject water into the uranium ore formation could cause failure in any place in the piping system.
Using a diagram showing a typical operation, O'Brien showed where failure could take place in the piping system. Critical points included a pipe failure in a formation above the ore body, above- ground piping to the facility where uranium is extracted from the water, in the facility itself, in piping to the evaporation pond, or a breach in the liner of the pond. He said if soil contamination occurred, all the soil would need to be removed.
O'Brien said other avenues for contamination included fractures and faulting in the area that extended through the target formation to other formations and old abandoned exploration wells.
O'Brien said residents should conduct tests now for radon in both their house and their drinking water to establish background limits before mining begins. He recommended samples be taken in the house, one in the basement or crawl space and one in the living space.
Uranium questions addressed at meeting
Denver Water concerned about potential affects
By Lynda James - Correspondent
(This is the second part of an examination of a recent meeting on potential uranium mining in Park County.
Questions asked by citizens attending the Headwater Authority of the South Platte's April 2 meeting in Fairplay yielded more information on the proposed in-situ mining operations in South Park.
Most questions and comments were directed to William Wilson, president of Golden-based New Horizon Uranium Corp. and president of a New Horizon wholly owned subsidiary called Horizon Nevada Uranium Inc.
Questions were also answered by other panel members speaking at the meeting: Jeffery Parsons, senior attorney for Western Mining Action Project, and James O'Brien of O'Brien and Associates, a geologic and environmental consulting firm.
James Culichia, attorney for the Center of Colorado Water Conservancy District was scheduled as a presenter, but gave up his time to allow more questions. He answered legal questions asked by the audience.
Facilities and mining process
Wilson said the uranium mining process was enclosed and would remove 60 percent to 80 percent of the uranium.
The resulting uranium resin would probably not be processed on site but would be shipped to another facility such as the one in Crawford, Neb.
Some in the audience questioned the use of the term "enclosed" when evaporation ponds would be used. They were concerned about air pollution from the ponds, particularly radon gas.
Radon gas is a radioactive decay element of uranium and the second leading cause of lung cancer.
Wilson said the company would contract out the well drilling. He also said that exploration wells could be sealed off to prevent "excursions," a term used for mining water escaping from the piping system or the target formation.
If more aquifers than the target aquifer were found in an exploration hole, then the hole would be plugged (filled with cement) from top to bottom. If not, only the top of the hole would be plugged.
Wilson said the facilities would be electronically monitored for problems and people would be on site 24 hours a day to monitor operations.
Wells would be installed to monitor for excursions of the mined aquifer. If any hint was detected, Wilson said the company would be given time to fix the problem.
Undersheriff Monte Gore expressed concern for the safety of first responders in case of an accident.
Wilson said the mine operators would work with first responders, and operators would be responsible for any clean-up.Water
To restore the water after mining, Wilson said "fresh" water would be pumped into the geologic formation for several years until all chemical reactions stopped. O'Brien said that the success of pumping water down that had been filtered through reverse osmosis (filters water at the molecular level) to fix a problem was "very dependent on the medium drilled through."
When asked where the company would obtain water for the restoration process, Wilson said the company would use water that was left over from the mining process or purchase water if necessary.
Wilson said other heavy metals released from the target formation during uranium mining would either be processed or left in the water.
On a question regarding whether the company would need an adjudicated water right to mine, Culichia responded, "A year ago, the answer would be a simple no".
But then, he said, last year a court ruled that water production in mining coal methane by a company near Durango needed a water right. That case has been appealed by the mining company.
Culichia said that in-situ mining companies would have to prove that the mined aquifer was non-tributary to any river system. Non-tributary means the groundwater never migrates to the surface.
Under Colorado water law, unless proven otherwise, all groundwater is considered tributary, meaning it eventually makes its way to a river system by traveling through permeable rock and soil. Colorado river systems have many adjudicated water rights that allow entities and individuals to use the water.
Hartsel Fire chief Jay Hutchinson said that studies show that seven aquifers come to a point within three miles of Hartsel. In his opinion, aquifer studies have been incomplete.
Residents were concerned about their well water becoming contaminated, whether mining was on their property or on adjacent property.
Company to discuss buying property; already has claims on federal property
Wilson said that when the company talks to property owners about mining, it will discuss buying the property first. He also said the company has 30 claims on about 600 acres of federal property in the area.
"Without water, we can't live here," resident Larry Ledue responded. "Your company can't afford to buy us all out."
Denver Water response
Jim Miller of Denver Water asked Wilson if the aquifer was a closed (non-tributary) basin and at what depth. Wilson said he didn't know if it was closed and the target formation was 500 to 700 feet deep.
Miller provided The Flume with a March 26 Denver Water letter sent to Park County stating, "Denver Water is potentially affected."
The letter states that based on preliminary information, the mining site and groundwater is up-gradient and in close proximity to the South Platte River and Spinney Reservoir. "Groundwater in the location is likely to reach the South Platte River in just a few years, long before the cessation of uranium production," says the letter.
Most of the South Platte River water is owned by Denver Water and other Front Range entities.
The letter outlines site-specific characterization and information that would be needed to fully evaluate possible impacts to Denver Water. Some of the necessary information includes topography, geology, hydrology, depth and thickness of aquifer, direction of groundwater flow, baseline water quality and geochemical impacts both during and after mining.
The letter states that if chemically altered groundwater migrates to the South Platte, Denver Water's treatment facilities could be significantly affected by elevated concentrations of radioactive and other unstable and mobile substances.
Potential effects on more than 1 million people?
"In fact, several of these constituents can not be removed by Denver Water's facilities and thus, seemly minor impacts on groundwater quality could have significant public health consequences to the water supply to more than a million people."
The letter asked Park County to keep Denver Water informed throughout the submittal and permitting stages.
Miller told The Flume that the letter is based on the assumption that the target aquifer is not a closed basin and that groundwater eventually emerges as surface water near the South Platte River.
He said if chemically altered water containing high concentrations of substances such as uranium, radium and molybdenum reached Denver Water facilities, "much different and more elaborate types of treatment would be required."
Denver Water has proposed an amendment to House Bill 1161, which deals with in-situ mining, he said. That bill recently passed the Colorado House of Representatives and is on its way to the Senate.
Miller said the current bill focuses on groundwater reclamation after in-situ mining is complete. Denver Water's proposed amendment would seek additional protection by requiring reclamation upon any failure to contain the targeted aquifer during in-situ mining operations.
At the April 2 meeting, resident Eddie Kochman urged everyone to contact Colorado Senator Tom Weins asking that Weins vote for HB 1161. Park County's House Representative Tom Massey voted for the bill. It passed the Colorado House of Representatives on March 31 with 49 votes for the bill and 16 votes against.
Geology and exploratory drilling
At the meeting, O'Brien answered "no" to a question about whether exploration could use seismic technology instead of drilling. He said seismic detects density, not mineral type.
When asked what formation Horizon was planning to mine, Wilson referred the question to the company's senior geologist, William Thompson, who worked for a company in the late 1970s that explored Mud Springs Gulch. The gulch is in the area proposed by Horizon for exploration and mining. That area is roughly northeast of Hartsel.
Thompson said that in the 1970s, the company was exploring the Antero Formation, which is from 100 to 200 feet deep, and the Echo Park Alluvium, which is 400 to 600 feet deep. He said the company initially found areas to explore based on radon testing a few feet below the ground's surface.
Thompson said the Antero Formation is a shallow lake bed filled with volcanic ash and that the deeper Echo Park lies on top of granite. He did not say whether the company had found an impermeable layer on top or bottom of either targeted formation.
According to the U.S. Geological Survey's Colorado Geological map, the proposed mining area lies between two large faults that bisect South Park, the Elk Horn Thrust on the east and Reinecker Ridge on the west. The map also shows that both Antero and Echo Park formations outcrop (reach the surface) south of Hartsel.
Permits, bonds, royalties
Culichia addressed questions regarding Park County's 1041 permit processes, which address mitigations for water projects and wildlife habitat impacts from development. He said that in his opinion, a water 1041 permit should be required before the 20 exploration holes planned for this summer are drilled.
Culichia said the 1041 permitting process required mitigation, including socio-economic impacts and could be denied if impacts could not be mitigated. He pointed out that loss of property values equates to loss of county property tax dollars.
Answering questions regarding the state permitting timeframe, Wilson said the company has a statewide prospecting permit. With each new project, the company must provide maps of its plans and receive an individual reclamation permit. The company does not have an individual permit for the South Park project and does not have any well drilling permits as of now.
A $3,000 bond must be submitted for each well drilled to cover reclamation, according to Wilson.
Parsons added that the $3,000 bond covered only surface reclamation and plugging the well and was based on no accidents. He said the Summitville mine bond for full reclamation had been $4.5 million and as a Superfund Site had now cost the taxpayers $200 million dollars.
When asked about royalties, Wilson said the company pays royalties to the mineral owner and includes royalties to the surface owner in surface leases. In the case of mining federally owned minerals, he said, royalties are not paid to the government.
Property values
Regarding loss of property values, Wilson said that had not occurred near Crawford, Neb., where mining and uranium processing occur.
Parsons said that was not the case in Weld County, where the only willing buyers near a recently proposed in-situ mine were uranium companies.
When asked about the company's ability to mine if leases were obtained in a checkerboard pattern, Wilson said it could have an affect. If a lot of surface owners didn't sign leases, he said, it probably wouldn't be feasible to mine.
He wasn't sure what size of an area would be needed for mining until exploration was complete and quantities of uranium were known.
Parsons responded to a question about whether mining could recover uranium from only below the leased property. He said since the minerals were owned by the federal government, probably recovery could extend into the target formation beyond the leased property.
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Opposing sides meet over uranium
75 turn up for meeting on possible uranium mining
By Mike Potter- Staff Writer
Bill Wilson, President of Horizon Nevada Uranium Inc, said he doubts he changed anybody's mind at the April 2 meeting in Fairplay regarding possible uranium exploration and mining near Hartsel.
The meeting, hosted by the Headwater Authority of the South Platte River, drew a crowd of 75 people, brought together Wilson, Jeff Parsons of the Western Mining Action Project, James O'Brien, a geologist and professor for the Colorado Mountain College, and Jim Culichia, attorney for the Central Colorado Water Conservancy District.
Wilson said after the meeting that many landowners he spoke with on the phone had similar concerns, but the meeting seemed to increase the residents' anxiety.
"Of the calls I received, these comments [from the meeting] were not typical," he said.
The majority of the questions that night were directed toward Wilson and Parsons.
Wilson and his company were also the subject of a number of statements from attendees, almost all opposing any mining operations.
Parsons, whose organization opposes in-situ mining, told The Flume after the meeting that many of the concerns residents expressed were typical questions property owners have when they first hear of a possible in-situ recovery uranium mine in their neighborhoods.
In-situ recovery mining involves the extraction of uranium from an aquifer by pumping chemicals into the water body, releasing the uranium and other heavy metals.
The biggest concern with the process has to do with groundwater, Parsons said, and a mining company's ability to restore the aquifer to a useful condition.
"To my knowledge, there has never been an aquifer restored," Parsons said.
There are some aquifers labeled as restored, he said, but that's because the Nuclear Regulatory Agency or the state lowered the standard for water restoration.
Wilson disagreed with Parsons' claim that no aquifer had been restored, but said he couldn't comment as to the number that had been restored because he didn't have the data.
Charlie Spielman, a former Park County resident and also the chairman for Action-22 Energy Committee, attended the meeting and told The Flume that he had worked on in-situ recovery uranium projects in the late 1950s and early 1960s in Wyoming.
"At the time I was involved in solution mining of uranium, we were not very concerned about the aquifer recovery," he said.
Action-22 is a coalition of the 22 southeastern Colorado counties, which includes Park County.
Spielman said at the meeting there would be a great need for alternative energy sources in the future, and nuclear power might be the best option.
"This country is in an energy emergency," he said.
The 40-year veteran of mining questioned the timing of the meeting and whether it was being held too soon, as Horizon Nevada is only in the starting stages of the mining operation.
"I think these people are getting way ahead of themselves," Spielman said.
There was evidence of this when Wilson said he couldn't answer a number of questions from the crowd, which was seeking specific answers about this specific project.
"A lot of the questions that I've been asked tonight, I've tried to answer as honestly as I can," Wilson said.
But many of them were hypothetical, and Wilson didn't have any specific information about the possible mine sites in Park County.
He said more information would be available after this summer, when about 20 exploratory holes are drilled to determine the concentration and location of uranium deposits.
Dave Wissel, president of the Headwater Authority of the South Platte River, said the meeting was held to make information available, and he believes the mission was accomplished.
"Our goal was to arm our citizens with knowledge," he said.
A few people came up to him after the meeting and thanked him for helping organize the meeting, and he believes not all of them had already made their mind up about the possibility of mining in their back yard.
In response to Spielman's comment about it being too soon for a meeting, Wissel disagreed.
It's never too soon to make information available, he said. The meeting was designed to do just that.
"Hopefully it served its purpose," he said. "And I believe it did."
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Crowd gathers in Hartsel to discuss uranium
Petition to governor circulated
By Lynda James
Correspondent
Approximately 50 people crowded into the Hartsel Community Center on Saturday April 5 to learn more about Horizon Nevada Uranium's proposed in-situ uranium mining and to develop a plan of action. Newly formed citizen action group Save Our South Park Water 2008 sponsored the event.
Thirty-year area resident and affected property owner Ramon Castro prepared and presented a PowerPoint presentation. He said research for the presentation was done via the Internet. He used an analogy of yelling "Fire!" in a theater and people panicking, then said, "I'm not going to be saying fire, but I am saying smoke."
He showed a map of the area in South Park that Horizon Nevada Uranium has staked since last October for uranium mining claims. The area covers more than 1,000 acres north of State Highway 24 and east of the Elk Horn Road near Hartsel.
Ron Swanigan, Center of Colorado Water Conservancy District director, said one stake was 10 feet away from his water well.
Several residents said that due to the depth of their water wells, they may be getting their drinking water from the same formation Horizon wants to mine.
SOSPW08 organizer Doran Moore said the company has raised $5 million dollars for in-situ operations in Converse County, Wyo., and has land in San Miguel County, Colo., as well as in Utah. Underground mines are planned for both of those sites.
Castro explained the mining process and the process of making yellowcake from the recovered uranium.
Once the uranium is released from the underground ore body by chemicals and pumped to the surface, the uranium-laden water is filtered through resin beads. Once the beads are saturated with uranium, they are removed and transported to a plant where yellowcake, a uranium oxide used in nuclear power plants, is made. Horizon has stated that the company will not process yellowcake on site, but will transport the uranium-filled resin beads to another facility, possibly in Crawford, Neb.
According to the presentation, uranium claims on land where the Bureau of Land Management owns the mineral rights have increased from 5,000 in 2004 to 32,000 in 2008. In 2007, 8,000 new claims were staked in nine Colorado counties.
One presentation slide showed an operation that used 28 wells on one acre. Castro said the typical mine on a five-area site included 16 injection wells, four extraction wells and eight monitoring wells. He did not identify his source for those figures.
Castro listed the industries' advantages of in-situ mining as being less hazardous to mine workers, less expensive, and producing less solid waste, less ground disturbance and less reclamation of the surface.
Problems with in-situ mining, according to the presentation, include possible escape of the leaching solution that would contaminate both surface and underground water, release of other heavy metals into the water, precipitation of solids from the solution that would block the water flow during mining process, disposal of extremely large amounts of wastewater, and high radon exposure from evaporation ponds.
Castro stated that as the solution in the ponds evaporate; radioactive substances and other heavy metals are left as dust. He was concerned how far the dust would blow in the South Park winds.
Concerns listed in the presentation included long-term radioactive contamination of water, soil, food chains and increased cancer in animals and human beings, possibly as far away as the Front Range.
Other concerns listed included negative impacts to county and state economies, reduced tourism and recreation in the area, a lowering of residents' quality of life, decreased property values, and the possible need for first responders to have HAZMAT training and equipment.
The last slide in the presentation overlaid Horizon's proposed mining area on Park County's Wildlife Habitat Impact map. Much of the proposed mining area is in the highest two impact zones for wildlife.
Area mining history
Fairplay resident Richard Hamilton said that in the late 1970s and early 1980s, approximately 11,000 test pits had been drilled by uranium companies in the South Park area.
Hartsel Fire Chief Jay Hutcheson said a series of exploration wells were also drilled and capped during that time. Now some ranchers have uncapped the wells and are using the water. He said exploration had also taken place during the 1950s.
Moore said that he had found many two-foot-high mounds on his property and thought they were an abandoned prairie dog town. Later he found out they were mounds from uranium exploration holes.
Another person said she had found an old metal sign on her property that identified the location of a radioactive probe that had been buried in cement and left behind.
Hamilton said that in the 1980s, the U. S. Secretary of the Interior had been asked to designate the area as unsuitable for mining under provisions in the Surface Mine Control and Reclamation Act of 1977. He is spearheading a similar effort again.
The law states a governor may make a request to withdraw an area from federal mineral leasing for minerals other than coal for specific reasons. In March, Hamilton met with the Director of Colorado Department of Natural Resources to discuss the possibility of such a request. He has forwarded the material to Denver Water requesting it also ask Governor Bill Ritter to request the designation by the U.S. Department of Interior.
Hamilton is circulating a citizen petition to Governor Ritter requesting the same.
SOSWP08 is also circulating a petition to Park County Commissioners and State of Colorado elected officials. It urges officials to avoid any permits until all safety, health and water quality questions are answered. It also asks that governments develop uranium in-situ mining regulations with adequate protection for residents and to promote economic development that provides for local people and meets local needs.
An action group was formed that will be meeting to develop and implement strategies to inform local and Front Range residents of the possible water quality contamination by in-situ uranium mining. The group will also develop other action steps.
More information is available at www.freewebs.com/soswp08/ home.htm or by writing SOSPW08, PO Box 331, Hartsel, CO 80449.
The petition to Governor Ritter may be signed at www.ipetitions.com/ petition/sospw08/index.html.
More information about New Horizon Uranium Company can be found at www.newhorizonuranium.com.
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