Good evening and thank you for the opportunity to testify, my name is Pat Calhoun. I am a rancher in Goliad County, the President of Goliad County Farm Bureau and a member of the Goliad County Uranium Research and Advisory Committee. This committee was established by the Goliad County Commissioner’s Court and in that capacity; I represent the agricultural and wildlife producers in Goliad County. Tonight I would like to address three issues concerning agriculture and wildlife; first, financial impact of water loss; second, impact on water quality; and third, risk of the historical pattern of permit violations.

Livestock production and wildlife resources are major economic factors in Goliad County, where livestock sales (according to the 2002 Agricultural Census for Goliad County) accounted for $15,046,000 of $16,933,000 total agricultural sales, 88.85%. The loss of, or restrictions in production of either would cripple the land owners’ livelihood. Most ranchers depend on water wells to supply the water needed for their livestock. Wildlife is often dependent on the same water made available for livestock, especially during drought conditions. The same degradation effects that apply to livestock usage apply to wildlife. For example, according to the mining permit filed by Uranium Energy Corporation, (UEC), their plan is to dispose of a minimum of 72,000 gallons of water per day, every day the mine is in operation, due to the in-situ process. According to Texas Agricultural Statistic Services, the average beef cattle herd in Texas is approximately 48 head. A lactating cow will drink 20 to 25 gallons of water per day, so if you do the math, a loss of 72,000 gallons of water means that potentially 60 herds per day will be without water every day that mine is in operation, and that is just for this one mining permit!!! Again, according to the mining permit filed by UEC, they plan to dispose of a minimum of 260,000 gallons of water per day, every day, during the reclamation phase of the mining process. This equates to the loss of water for over 200 herds per day, EVERY DAY!! At this point, I would like to stress that these water figures are UEC’s own figures, which I believe are greatly understated. As I mentioned previously, groundwater not only provides water for human and livestock consumption, but also wildlife. Landowners in Goliad County realize approximately $1,200,000 in annual income from wildlife resources. Loss of available groundwater for livestock and wildlife operations would be financially catastrophic to area landowners!

Six water wells in and contiguous to the exploration permit area have been degraded since exploration began. Wells that have never before had a problem are now plugging up and have been contaminated with iron oxide bacteria, causing a “red slime” to collect in water filters and form in household appliances. In one particular instance, when livestock were forced to use an older well that provided water solely for livestock use and were barred from using a newer filtered well, the animals broke through the barrier fence to get to that filtered water. The Railroad Commission of Texas was asked to conduct an investigation into the well degradation and concluded that there was no proof that the exploration was the cause of the problems. The suggestion was made that the excessive rainfall in the spring of this year was the culprit. I still don’t understand how only those wells in close proximity of the exploration site could become degraded when the entire county received that “excessive” rainfall. Additionally, since we have been in drought conditions since the last quarter of 2007, the Railroad Commission has offered no revised reason for the occurrence of degraded groundwater and why the wells have not cleared up, but in fact, an additional one has became contaminated.

UEC has publicly stated that they want to be “good neighbors”, yet they were cited by the Railroad Commission in an inspection report, during an inspection conducted 7 – 9 March 2007, attached in a letter to Mr. James Blackburn, for 74 violations of their exploration permit. One specific violation, repeated many times over, was the improper surface plugging of boreholes. Another was the improper backfilling of mud pits, resulting in the exposure of radioactive materials to the surface. According to a Railroad Commission report sent to Goliad County Judge Harold Gleinser on 9 May 2007, reads in part: “ingestion of the radioactive materials (including inhalation of airborne dust) from this limited number of mud pits should be avoided.” A statement such as this indicates that someone within the Surface Mining and Reclamation Division of the Railroad Commission believes there is some sort of potential hazard, but what, still remains unknown. I have been in either direct or indirect contact with the following experts: Dr. Hillman, Texas Animal Health Commission, Dr. Poston, Nuclear Engineering Department, Texas A&M University, and Dr. Acuff, Animal Science Department, Texas A&M University. They have all assured me that there are no short-term ill effects on livestock or wildlife to this type of exposure; however, they reported that there has been no research conducted to determine the possible long-term ill effects. Additionally, Section 9.5 of the application titled “Rain and Emergency Operations” addresses rainfall captured on the production pads being disposed of as “waste fluids.” It also discusses a 25 year rain event of 8.5 inches in a 24 hour period. We have had MANY instances where this is exceeded, which begs the question, WHAT IF??? Surface spills, whether from rain water or equipment failure, CANNOT be tolerated! Lastly, I would like to point out that broken pipes or failed valves are accidents, violations such as “surface plugs” found to be in excess of 20 feet below the surface, or improperly backfilled mud pits are not.

In conclusion, I would like to emphasize that statewide agricultural organizations, such as the Texas Farm Bureau and the Texas and Southwestern Cattle Raisers Association, believe very strongly in private property rights. As President of the Goliad County Farm Bureau, an active member of the Texas and Southwestern Cattle Raisers Association, a member of the Goliad County Uranium Research and Advisory Committee and a Goliad County rancher and property owner I am a strong and vocal advocate of private property rights; however, let it be understood that my property rights stop at my property line. Whatever my neighbor does on his property is his business, but his business cannot infringe on my rights. The historical evidence indicates that no unconfined aquifer can be mined without irrevocable change and damage to it, in other words, reduction of water volume and degradation of water quality. Our aquifer in the mining area, as well as the rest of the county, is in continuous use and must remain available for continuous use. Lastly, regarding this company’s historical track record, until it can be scientifically PROVEN that this, or any other uranium mining company will not harm our aquifer and ultimately the agricultural and wildlife producers of Goliad County, then I respectfully request and STRONGLY urge the Commission to reject this and all future requests by this or any other uranium mining company in Goliad County. Thank you.