2013-10-17_PERMIT FILE - M2013041 (2)

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Uranium Mining in Colorado -2013 Page 2 A No major uranium ore production in Colorado was reported from 2009 through 2013. Rimrock Exploration and Development completed an Environmental Protection Plan (EPP) to comply with Designated Mining Operation requirements in 2010. The J -Bird Mine has filed for Temporary Cessation after developing access drifts and constructing surface environmental protection facilities (EPF) infrastructure as required. Some ore was produced and shipped to the White Mesa Mill in 2013. Rimrock's other site, the Prince Albert Mine, has gained DRMS and BLM approvals but has not initiated mining activities due to economics. Mine permitting and regulations have changed significantly since the last uranium boom in the 1970's. On August 12, 2010, the Mined Land Reclamation Board (MLRB) approved changes to the Rules and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, Metal, and Designated Mining Operations that became effective on September 30, 2010. The new Rules implement changes to the Colorado Mined Land Reclamation Act, which was amended by the passage of three bills in 2008: SB 08 -228, SB 08 -169 and HB 08- 1161. The trio of laws established new rules to protect Colorado's groundwater during in -situ uranium mining, revised existing rules regarding the disclosure of additional information during prospecting activities, and updated hard rock mining fees. Prospecting Notice of Intent Activity: The Division has seen a decline in uranium prospecting activities. There are 44 total active uranium prospect Notices of Intent (NOI) in Weld, Summit, Fremont, Grand, San Miguel, Mesa, Montrose, and Moffat counties. This is a decline from a peak of 101 active prospecting NOls in 2009. An overwhelming number of the projects have been completed and are in the final reclamation phase. In- situ -leach exploration projects in Weld County have been suspended for the foreseeable future. Current Reclamation Permit Activity: There are 32 actively permitted uranium mining projects in Colorado. On September 30, 2011, the Division notified all uranium operators that an EPP must be submitted, file for an exemption, or commence final site reclamation by October 1, 2012. As of October 16, 2013 of the 31 permitted sites, 19 have the required EPPs in place and 4 are under review. 8 mines have opted to do reclamation in 2013 and spring of 2014 and terminate permits. Currently the Division is working with the CDPHE and numerous local jurisdictions on environmental impacts at Cotter's Schwartzwalder Mine in Jefferson County. On October 18, 2011, the U.S. District Court issued an injunction regarding the Department of Energy (DOE) uranium leasing program (ULP). The injunction prohibits any activities on the DOE ULP tracts until the DOE fully complies with the National Environmental Policy Act (NEPA) and Endangered Species Act (ESA). At this juncture, it is unclear what will be required or how long that process will take. While the injunction prohibits active site activity it does not preclude the Division from moving forward with the implementation of State law requirements for EPP submittals, review, and approvals. Several permitted mines are located on DOE lease land, and have entered into temporary cessation since they cannot access these sites to do construction or mining activities. The Division notes that the uranium industry has been significantly affected by the economic downturn and historic lower prices for uranium ore. If the proposed Pinon Ridge Mill in Paradox Valley is constructed, the Division anticipates a surge in uranium mining and prospecting operations and associated permitting activities. A list of permits, operators, and EPP status is attached to this report.