Still dealing with multiple environmental violations at its Smith Ranch-Highland in-situ leach uranium mine north of Douglas, Cameco Resources Inc. has asked federal regulators to expand its permit boundary by 8,700 acres.

The Bureau of Land Management announced Tuesday it will prepare an environmental analysis to evaluate the potential impacts of Cameco's proposed expansion, which the company calls its "Reynolds Ranch Uranium Mine."

Company officials say they will actually target only 325 acres for production, of which 120 acres are BLM-administered surface.

Tom Foertsch, BLM Casper field office project leader for the analysis, said the agency will work with the Wyoming Department of Environmental Quality regarding that agency's ongoing environmental concerns at the existing mine site.

Following an investigation last fall, DEQ issued a notice of violation to Cameco's subsidiary, Power Resources Inc., which operates the mine. A six-page report by DEQ details several "long-standing" environmental concerns at the mine, including delayed restoration of groundwater, "routine" spills, and a seriously inadequate bond to cover restoration.

"We're working with DEQ on that," Foertsch said. "I'm sure we're going to get more public comments on this because of the negative publicity."

DEQ Land Quality Division administrator Don McKenzie did not return a call for comment Tuesday. Nor did Cameco.

The Smith Ranch-Highland mine is currently the only producing uranium mine in Wyoming. It produced a record 2 million pounds of uranium oxide in 2006, and was expected to produce at about the same level in 2007.

Cameco is the world's largest producer of uranium. It has four active mines in North America, including the Crow Butte mine in Nebraska.

Company officials previously said that Cameco expects to produce 2.7 million pounds of uranium oxide this year in Wyoming and Nebraska. By 2012, Cameco expects to increase that production to a total 4.8 million pounds per year.

Violations

On March 10, DEQ issued a notice of violation to Power Resources Inc., detailing a long list of alleged violations pursuant to two permits.

Crook County rancher Wilma Tope said Tuesday she began researching the uranium industry after she learned about plans to launch an in-situ uranium operation on property near her family ranch.

The in-situ leach process involves injecting a water and sodium bicarbonate solution down a series of injection wells to flow through a targeted sandstone containing uranium ore. Uranium is dissolved in the ground to mix with the liquid solution and it is brought to the surface through production wells.

Tope is concerned about the volume of groundwater that could be wasted in the process, as well as the potential threats to human health and the environment.

"I think we really are going to have to start talking about the true nature of nuclear power and the fact that this is not a clean energy, this is not renewable energy. The by-product is dangerous and the government hasn't successfully taken care of the waste," Tope said.

In regard to documented violations at the Smith Ranch-Highland mine, Tope said it doesn't make sense to allow an expansion of the mine when, by DEQ's own estimation, the mine is drastically underbonded. DEQ estimated it could cost $150 million in reclamation to cover the current facilities, but has asked that Cameco increase its bond to just $80 million.

"This is a huge concern," Tope said. "Logic tells me before you go forth to create more possible environmental impacts that the first part should be taken care of."

Cameco has already received a license from the Nuclear Regulatory Commission for the project, according to Foertsch. He said the BLM's analysis will "tier" off of the NRC's "generic environmental impact statement" analyzing radiation and water remediation concerns for pending in-situ leach uranium proposals across the West.

Foertsch said the BLM's analysis will add considerations for issues it commonly deals with, including wildlife, recreation, noxious weeds and recreation.

Cameco's proposed expansion is one of the first that the agencies will coordinate. Foertsch said the BLM and NRC headquarters in Washington, D.C., are drafting a memorandum of understanding that would allow such projects to be permitted under one environmental analysis instead of two.

The proposed Reynolds Ranch Uranium Mine includes 5,360 acres of split estate with private surface and BLM minerals. Portions of the project occurring on private and state lands are not subject to BLM authorization, according the agency.

Energy reporter Dustin Bleizeffer can be reached at (307) 577-6069 or dustin.bleizeffer@trib.com.