New Mexico Uranium Exploration & Mining

1. 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 Division Department of Energy, Minerals & Natural Resources

2. 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

3. 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.

4. 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;

5. 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

6. 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.

7. 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

8. 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

9. 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

10. MOU with Federal Agencies • Signed June 1997 • Agencies • BLM, NM State Office3 • US Forest Service, Southwestern Region\ • Concerning Surface Management of Locatable Minerals • Addresses coordination of permitting among the agencies

11. 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 permits • 2. Most are open pit or underground mines.

13. 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

14. Financial Assurance Exploration • Dry holes • $.88/ foot • Add $5,400 first acre, and $3,300 each additional acrea • Wet holes • $9.25/foot • Add $5,400 first acre, and $3,300 each additional acrea

18. 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.

19. Radiation Reading Sampling Gamma Exposure Rates (μR/hr) at ground contact Background: 18.8 μR/hr (n = 5)

20. Financial Assurance Mines • Minimal Impact Mines • $5,400 first acre • $3,300 each additional acre • A 10 acre site would require an FA of $35,100. • Regular Mines • Traditional approach of line item cost estimates.

23. Uranium Exploration