Colorado Bungled Public Review of Proposed Uranium Mill Near Nucla (Denver Post)

Federal regulators say Colorado health officials botched public hearings as they licensed the nation's first new uranium mill since the Cold War — to be built between two rivers on the Western Slope.The U.S. Nuclear Regulatory Commission on Wednesday said Colorado's Department of Public Health and Environment must hold a proper formal hearing to ensure adequate scrutiny of Energy Fuels Resources' proposed $150 million mill. An NRC inquiry substantiated complaints raised by project opponents.Colorado also must improve its overall system for public review of uranium activities, said NRC spokesman David McIntyre."We want them to provide a public hearing, and when we say hearing, we do not mean a public meeting. A public hearing is a legal process" involving adjudication, testimony under oath and cross-examination, McIntyre said. "Their process needs to have the opportunity for public hearings in general."State officials granted Energy Fuels a radioactive-materials license for the project last year.Energy Fuels officials have been hunting for investors in Asia, Europe, Canada and elsewhere to finance the Piñon Ridge Uranium and Vanadium Mill. They say it will bring 85 jobs paying $45,000 to $70,000 a year, with health benefits, to the uranium-rich Paradox Valley, near Nucla in southwestern Colorado. The area between the Dolores and San Miguel rivers once was a nuclear hub but has fallen on hard times.The federal red flag infuriated residents awaiting the mill and a revival of mining."We're the first ones who don't want the mill to be unsafe, but, so far, we don't see any reason to stop it — or we would stop it ourselves," said John Reams, chief of the Tomcat Mining construction company in Naturita. "We can't sustain ourselves on tourism. We need steady jobs. We want to get our schools back up and running, get our restaurants opened again, get some recreational activities."The health department's radiation-program manager, Steve Tarleton, responded to a Feb. 27 letter from the NRC on March 6, asking for clarification. Tarleton said, "It has not been determined that there is, in fact, an issue with the state program" and that "we understand any newly identified issues would be addressed prospectively and not retroactively. Do you concur with our understanding?"State health officials Wednesday said they would send the NRC more information.The NRC "has not formally notified the CDPHE of any deficiencies requiring corrective action," spokesman Warren Smith said. "Our review of the Piñon Ridge license application featured a robust public process, including two public hearings and six additional public meetings. We also reviewed hundreds of pages of comments from the public. Our license decision was based upon sound technical criteria."Under an agreement, federal authorities delegated Colorado the authority to regulate uranium-related activities — as long as state oversight meets federal standards. It's unclear whether the NRC could cancel Energy Fuels' license.In April 2010, NRC reviewers rated Colorado's radiation program "adequate and compatible" — a passing grade."But this is the first" mill-licensing action in decades, McIntyre said. "And, obviously, they hadn't been licensing anything. The problems hadn't come to light."Energy Fuels attorney Curtis Moore said state officials' process seemed thorough, requiring submission of multiple volumes of studies and assessments. Public meetings were held in Montrose, Naturita, Telluride and elsewhere, in which project opponents voiced environmental concerns."It's disappointing that the federal government is taking these steps," Moore said. "We firmly dispute their interpretation of Colorado law."The health department recently gave Energy Fuels more time to pay $12 million in surety money to guarantee cleanup should the mill contaminate soil, water or the air.The Telluride-based Sheep Mountain Alliance complained that meetings held by state officials and Energy Fuels were insufficient."These were 'stand up, say your piece in three minutes, shut up and sit down' " sessions that ignored requirements for review of evidence under oath, said attorney Travis Stills.Colorado leaders ought to ensure meaningful public hearings, Stills said. "Whether it's in Cañon City, at the Schwartzwalder mine or here in the Paradox Valley, their approach is that the courts have no business, the public has no business, the NRC has no business. Leave it to us. That has to change," he said.Denver Post: Feds: Colorado bungled public review of proposed uranium mill near Nucla