New Mexico Uranium Exploration & Mining

BLM Uranium Workshop August 12, 2008

Salt Lake City, Utah

Holland Shepherd, Program Manager Mining Act Reclamation Program

New Mexico Mining & Minerals DivisionDepartment of Energy, Minerals & Natural Resources

Introduction What this presentation will cover. New Mexico Mining Act Environmental Laws that address mining. in New Mexico. MOU with Federal Land Management Agencies Uranium

Exploration and Mine Permitting in New Mexico. Permitting Steps Exploration Permitting Steps Mining Guidelines

NM Mining Act Development of the Act 1991 and 1992

Growing public concern about the impacts of hard rock mines on private and public lands. Summitville (example)

Other states had passed hard rock laws. Passed June 18, 1993

New Mexico the second to the last western state to enact a mining reclamation law, Arizona last

Rule promulgated in 1994 Set up a series of categories for exploration and mine permitting. Operations having mined between Jan. 1970 and June 1993 were

brought in under the Act.

Definition of Mining The NM Mining Act defines the types of mines which fall under the Act: "mining" means the process of obtaining useful minerals from the earth's crust or

from previously disposed or abandoned mining wastes, including exploration, open-cut mining and surface operation, the disposal of refuse from underground and in situ mining, mineral transportation, concentrating, milling, evaporation, leaching and other processing. ''Mining''does not mean the exploration and extraction of potash, sand, gravel, caliche, borrow dirt and quarry rock used as aggregate in construction, the exploration and extraction of natural petroleum in a liquid or gaseous state by means of wells or pipes, the development or extraction of coal, the extraction of geothermal resources, smelting, refining, cleaning, preparation, transportation or other off-site operations not conducted on permit areas or the extraction, processing or disposal of commodities, byproduct materials or wastes or other activities regulated by the federal nuclear regulatory commission;

Other Environmental Statutes Effecting Mining

On Bureau of Land Management Lands Surface Management Under General Mining Laws, 43 CFR,

Subparts 3802 and 3809. Federal Land Policy Management Act (FLPMA) of 1976.

On Forest Service Lands Locatable Minerals, 36 CFR, Part 228, Subpart A Federal Land Policy Management Act (FLPMA) of 1976.

New Mexico Water Quality Act of 1978 New Mexico Solid Waste Act of 1990 New Mexico Clean Air Act New Mexico Wildlife Conservation Act

Other Environmental Statutes Effecting Mining Continued

Federal Safe Drinking Water Act of 1974 Federal National Pollutant Discharge Elimination System Federal National Historic Preservation Act Federal Endangered Species Act USFS & BLM - Title 40 of the CFR, Parts 1500 through 1508, National

Environmental Policy Act (NEPA) 1970. Federal Comprehensive Environmental Response and Compensation

Act (CERCLA or Superfund) of 1980 Federal Clean Air Act of 1970 Federal Water Pollution Control Act (Clean Water Act) of 1972 U.S. Army Corps of Engineers - Section 401/404 permit requirements.

Uranium Milling and In Situ Mining NRC – Atomic Energy Act

Mills licensed through NRC, NM is a Non-Agreement State

NMED – Water Quality Act A Discharge Plan is required for mills In-Situ Leaching is addressed through UIC permit, NM is an

agreement state with EPA regarding issuance of UIC permits

What do Reclamation Statutes Address? Reclamation Statutes address impacts from mining during and after

mining activities Exploration phase of mining Operation phase of mining

Hydrologic impacts Assure Protection: human health and safety, environment Stabilization of site Impacts to wildlife Impacts to cultural resources Topsoil salvage Safe storage of chemicals Safe use of explosives Contemporaneous Reclamation

Reclamation Statutes Continued Reclamation phase of mining

Backfilling and grading Topsoil application Soil amendments Reseeding Restoration of hydrologic features Slope stability Removal of contaminated materials to a safe place Capping or isolating deleterious materials (tailings and waste

material) Post-mine monitoring

MOU with Federal Agencies Signed June 1997 Agencies

BLM, NM State Office3US Forest Service, Southwestern Region\

Concerning Surface Management of Locatable Minerals

Addresses coordination of permitting among the agencies

Hardrock Reclamation Program A. Result of the New Mexico Mining Act of 1993 B. Since passage of the Act about 400 mining operations

in the state that fall under the Mining Act. 1. Include: 100 existing mines, and new mines; and 300

exploration, and general permits2. Most are open pit or underground mines.

Exploration Two Types

Minimal Impact Less than 5 acres Requires a permit approval

Regular Exploration Over 5 acres Requires Public Notice Require Financial Assurance

MMD is asking operators to address radiation issue by reclaiming to background. Guideline for exploration sites developed by MMD, BLM, and USFS Radiation marker we are looking at is gamma in micro R/hr

Amending to Exploration Regulations Hole plugging, financial assurance, change minimal impact criteria

Financial Assurance Exploration

Dry holes$.88/ foot Add $5,400 first acre, and $3,300 each additional acrea

Wet holes$9.25/footAdd $5,400 first acre, and $3,300 each additional acrea

Approved Applications

Project Name Operator Surface OwnershipNumber of

HolesDrilling Completion

Ambrosia Lake Neutron Energy State 6 summer 2007La Jara Mesa Laramide Resources U.S. Forest Service 10 fall 2006, winter 2007Lily Uranium Company of New Mexico Bureau of Land Management 10 fall 2007Riley Max Resources U.S. Forest Service 14 spring 2007Riley Exploration Project MAX Resource Corp. U.S. Forest Service 5 summer 2008

Roca Honda Strathmore Mineral Resources State 4summer & fall 2007, spring 2008

Treeline Western Energy Development Private 6 summer 2006

Pending Applications

Project Name Operator Surface OwnershipNumber of

HolesMarquez Mine Confirmation Neutron Energy Private 44Roca Honda Section 10 Roca Honda Resources, LLC U.S. Forest Service 1Section 13 ISR Uranium Resources Inc. Private 10

Denied Applications

Project Name Operator Surface OwnershipCrownpoint Quincy Energy Indian TrustHosta Butte Section 3 Quincy Energy Indian TrustLa Jara Mesa Extension Urex Energy Corp. U.S. Forest ServiceRoca Honda Sections 5, 9 & 10

Roca Honda Resources, LLCU.S. Forest Service,New Mexico State Land Office

San Mateo Mesa Uranium Energy U.S. Forest ServiceSection 12 Southwest Resources PrivateTreeline II Western Energy Development U.S. Forest ServiceTreeline III Western Energy Development Private

New Mexico Uranium Exploration Applications, 2006 - 2008 *

Mining Two Types

Minimal Impact Less than 10 acres Requires financial assurance

Regular Over 10 acres Requires public notice Requires financial assurance.

MMD asking operators to address radiation hazard in permits Working on a guideline to address this that will require reclamation to an

increment close to background. Radiation markers will be in gamma radiation micro R/hr and levels of

Radium 226 in cover materials.

Radiation Reading Sampling

Feature General Disturbance

Waste Piles Shaft, Adit, Well

Mine Road

Sample size (n) 5 47 10 9

Average (μR/hr) 297.8 387.7 197.0 159.5

Range (μR/hr) 17 to 457 32 to 2857 21 to 486 26 to 400

Gamma Exposure Rates (μR/hr) at ground contact

Background: 18.8 μR/hr (n = 5)

Financial Assurance Mines

Minimal Impact Mines$5,400 first acre$3,300 each additional acreA 10 acre site would require an FA of $35,100.

Regular MinesTraditional approach of line item cost estimates.

Uranium Exploration