# Petition for Writ of Certiorari — Morris v. Nuclear Regulatory Commission

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2010
- **Citation:** 562 U.S. 1045

## Text

oupreme Court, U.o.
FILED
190-368 SEP 15 2010

No. 10°___ QFFICE OF THE CLERK

IN THE
Supreme Court of the United States

ee ss

MARILYN MORRIS, ET AL..

Petitioners,
5

U.S. NUCLEAR REGULATORY COMMISSION, ET AL.,

Respondents.

On Petition for A Writ of Certiorari to the
United States Court of Appeals for the Tenth Circuit

PETITION FOR A WRIT OF CERTIOKARI

Diane Curran Eric Jantz

Counsel of Record New Mexico Environmental
Harmon, Curran, Spielberg Law Center
& Kisenberg, L.L.P. Suite 5
Suite 600 1405 Luisa Street
1736 M Street N.W., Santa Fe, NM 87505
Washington, D.C. 20035 (505) 989-9022

(202) 328-3500
dcurran@harmoncurran.com

Counsel for Petitioners Eastern Navajo Diné Against Ura-
nium Mining and Southwest Research and Information Cen-
ter

Other counsel listed inside cover

Levon Henry

Jesse Traugott
DNA-People’s Legal
Services, Inc.

P.O. Box 306
Window Rock,
Arizona 86515
(928) 871-415]

Zackeree Kelin
Kelin Law Firm
1309 Rio Grande
Boulevard N.W.
Albuquerque,

New Mexico 87104
(505) 242-7200

Counsel for Petitioners Marilyn Morris and Grace Sam

QUESTIONS PRESENTED

1. In determining whether public radiation
doses from a proposed new uranium mine would
exceed regulatory limits, could the U.S. Nuclear
Regulatory Commission (“NRC”) interpret 10
C.F.R. § 20.1301(a)(1) to allow it to ignore ra-
dioactive emissions from existing uranium mine
waste on the mine site?

2. Where, in establishing a groundwater res-
toration surety for a proposed uranium mine,
the NRC failed to follow its own criteria for pro:
tecting the drinking water on the site, did the
NRC violate the Atomic Energy Act’s prohibi-
tion against licensing operations that are tnimi-
cal to public health and safety”?

PARTIES TO THE PROCEEDING
AND CORPORATE DISCLOSURE STATEMENT

The following parties were petitioners below and
are petitioners here: Grace Sam, Marilyn Morris,
Eastern Navajo Dine Against Uranium Mining
(““ENDAUM”), and the Southwest Research and In-
formation Center (““SRIC”). The United States and
the United States Nuclear Regulatory Commission
(“NRC” or “Commission”) were the respondents be-
low and are respondents here. Hydro Resources, Inc.
(“HRI”) was a respondent-intervenor below and is
also a respondent-intervenor here.

ENDAUM is a nonprofit organization incorpo-
rated under the laws of the Navajo Nation and is ex:
empt from taxation under Section 501(c)(3) of the In-
ternal Revenue Code. ENDAUM does not issue stock
and no parent corporation or publicly held corpora-
tien has ten percent or more ownership interest.
ENDAUM’s membership consists of concerned com-
munity members in Church Rock and Crownpoint,
who are predominantly members of the Navajo Na-
tion. ENDAUM’s mission is to protect public health
and the water of the communities of Church Rock
and Crownpoint.

SRIC is a nonprofit organization incorporated
under the laws of New Mexico and is exempt from
taxation under Section 501(c)(3) of the Internal Rev-
enue Code. SRIC does not issue stock and no parent
corporation or publicly held corporation has ten per-
cent or more ownership interest. SRIC’s mission is
to promote the health of people and communities,
protect natural resources, ensure citizen participa-
tion in government decisions that affect their wel-

11

fare, and secure environmental and social justice for
present and future generations.

Marilyn Morris and Grace Sam are individual
members of the Navajo Nation who reside and graze
livestock near the proposed Church Rock mine sites.

1V

TABLE OF CONTENTS

QUESTIONS PRESENTED ........ccccccccccssccsescceseess
RM PE GAPECEERET LED csvicesscccseccecoseccccaconeseanssneba
Bete OE AAS THPORITIEG ........0cccccccsssasonsecsesecsas
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ME 5.55 cc bacixaecancocasacdecnsteeedeess eesneoneananee
STATUTES AND REGULATIONS INVOLVED .
STATEMENT OF THE CASE...................cceseeseeees
Pi, FPOCOUUIA TEIBGORY os.cocccsecccvcssesecesssscscssasennes
B. Radioactive Air Emissions at Section 17 ..

C. Groundwater Quality at Church Rock
TE ics aves ccnicksancheciséacasscesncs erie
1. Groundwater quality and ISL mining .

2. NRC requirements for restoration
and financial surety ...............ccccsssescerees
a. Restoration goals .................c:eceee
D. PRMPBCIA SUTEEY oo ..c.ecssssaceee
er SEI BIIOW ~ oi. 0ssessssccsnadecsesossentaneeeee
1. Radioactive air emissions at Section 17

2. Groundwater restoration goals and
murety for Section & ..........c.cscccssssssciseans
REASONS FOR GRANTING THE WRIT ...........
oi vcucensceneneesntesasisnsasseneuvnnsaneenn een

I. The NRC’s Interpretation of 10 C.F.R. §
20.1301, as Upheld by the Court of Appeals,
Violates Fundamental Principles of Statutory
Interpretation as Outlined by this Court. ......... 12

9

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A. The Plain Language of 10 C.F.R. §
20.1301(a)(1) Does not Support the NRC's
Interpretation of the Regulation .................. 12

B. The Majority’s Opinion is Inconsistent with
Other Part 20 Regulations and the
PUUREINEIIDEEE, REOMUOEY 6..ccccccvccosvsetecvsscscscosesnceess 14

Il. The NRC Approved Groundwater Surety for
Groundwater Restoration at Section 8 Violates
the Atomic Energy Act’s Public Health

EE 17
Ne ee cauauseeseens 19
Appendix:

Opinion of the United States Court of Appeals
for the Tenth Circuit, filed March 8, 2010...App. 1

CLI-06-29, 64 N.R.C. 417 (2006) ...........000.. 02. App. 68
CLI-06-14, 63 N.R.C. 510 (2006) ............... .....App. 91
CLI-04-33, 60 NRC 681 (2004) .................... App. 109
OEI-01-04, 58 N.R.C. 31 (2004) .................... App. 156
Ceo te, Ge PVE... 1 (2000) .................. ... App. 235
CLI-06-1, 63 N.R.C. 1 (2006) ....................... App. 248

Order of the United States Court of Appeals
for the Tenth Circuit Denying Rehearing
and Rehearing En Banc, filed May 18,

Atomic Energy Act, 42 U.S.C. § 2022(a) ..... App. 263
Atomic Energy Act, 42 U.S.C. § 2099........... App. 264
Rt OD RO LURILLD oesscssssnssvecresensonces oes App. 265
10 C.F.R. Part 40, Appendix A, Criterion 9...App. 267

vi

TABLE OF AUTHORITIES
Page(s)

CASES:
Robertson v. Methow Valley Citizens Council,

I I I cilia aia eaecsvevennee 17
Thomas Jefferson Univ. v. Shalala, 512 U.S.

Ra RR ae aiaeetaa tie ite ie Oe ee oe 9,14
STATUTES:
ACOMIC EMETAY ACE .......ccccccesnescescccscvcsssesece 1, 16, 18, 10

GEES TES. B BO vccicerssenasesesconsss 1,11, 12, 16, 17, 19
National Environmental Policy Act ..................... 1,17
Uranium Mill tailings Radiation Control Act............ l

i NN socenaetssocasazecsscausceucececccisseasnioccan: 1

Rte Fee SL} | re APNE DANA mr or ]
REGULATIONS:
10 C.F.R. § 20.1301(a)(1) 0.0... I, 3, 8, 11, 12, 15, 16
BE Bs We i ncn scsi ck.csnciundscencsiesvsscaseccicceceoneds 5
Internal Revenue Code § 501(¢)(3) wo...ccceecc eee ccccceeeees 1
ADMINISTRATIVE DECISIONS
In re Hydro Resources, Inc., CLJ-06-29, 64

FE eT EEE getseritsontuise reine aiacicoen l
In re Hydro Resources, Inc., CL1-06-14, 63

PE DE CUI cscccexanexesecpnsepesszcinsercgiens 1, 3, 8, 9
In re Hydro Resources, Inc., CL1-06-1, 63

te I ecrcraniciecescrevausekcsavnudeouceaseaisaedeutccs ]

In re Hydro Resources, Inc., CL1-04-33, 60
Be ei We I ctecios cece ctass sesuseensiazcnansos 1, 10

Vil

in re Hydro Resources, Inc., CL1-01-04, 53

Ee NED t a
licensee may release in effluents in order to restrict the collec-
tive dose.” Thus, the NRC could still deny a license or make a
license more restrictive where a licensed operation would
significantly increase the airborne radiation already being
emitted. But that is not the case here. The parties do not dispute
that HRI’s licensed operation will add only negligibly to the
airborne radiation being emitted on Section 17.

In light of this conclusion, we need not consider the
NRC’s alternative conclusion that the airborne radiation being
emitted from the prior mining operation is background radiation
expressly excluded from the radiation dosage calculation called
for under § 20.1301(a)(1).

App. 23

B. National Environmental Policy Act

Petitioners assert that the manner in which the
NRC considered the airborne radiation at the Church
Rock Section 17 site also violated NEPA. “[NEPA|]
mandates that federal agencies ... assess potential
environmental consequences of a proposed action.”
Utah Envtl. Cong. v. Russell, 518 F.3d 817, 820-21
(10th Cir. 2008); see also New Mexico ex rel. Richard-
son v. Bur. of Land Mgmt., 565 F.3d 683, 703 (10th
Cir. 2009); Citizens’ Comm. to Save Our Canyons v.
Krueger, 513 F.3d 1169, 1177-78 (10th Cir. 2008)
(noting “NEPA places upon federal agencies the
obligation to consider every significant aspect of the
environmental impact of a proposed action”) (quota-
tion omitted). NEPA further “ensures that an agency
will inform the public that it has considered environ-
mental concerns in its decision-making process.”
Krueger, 513 F.3d at 1177-78 (quotation omitted). “By
focusing both agency and public attention on the
environmental effects of proposed actions, NEPA
facilitates informed decisionmaking by agencies and
allows the political process to check those decisions.”
New Mexico, 565 F.3d at 703.

But “NEPA itself does not mandate particular
results”; “{iJnstead [it] imposes only procedural re-
quirements to ensure that the agency, in reaching its
decision, will have available, and will carefully con-
sider, detailed information concerning significant
environmental impacts.” Winter v. Natural Res. Def.
Council, Inc., 129 S. Ct. 365, 376, 172 L. Ed. 2d 249
(2008) (quotations omitted); see also New Mexico, 565

App. 24

F.3d at 704; Russell, 518 F.3d at 821 (“NEPA dictates
the process by which federal agencies must examine
environmental impacts, but does not impose substan-
tive limits on agency conduct.”). Nor does NEPA
“require agencies to elevate environmental concerns
over other appropriate considerations.” Krueger, 513
F.3d at 1178 (quotation omitted). Instead, NEPA
“requires only that the agency take a ‘hard look’ at
the environmental consequences before taking a
major action.... The role of the courts in reviewing
compliance with NEPA is simply to ensure that the
agency has adequately considered and disclosed the
environmental impact of its actions... .” Id. at 1178
(citations, quotations omitted); see also New Mexico,
565 F.3d at 704.

1. Standard of review

NEPA itself does not provide for a private right
of action; therefore, this court reviews an agency’s
approval of a project, including the agency’s compli-
ance with NEPA, under the APA. See Russell, 518
F.3d at 823. In doing so, this court “will not set aside
an agency decision unless it is ‘arbitrary, capricious,
an abuse of discretion, or otherwise not in accordance
with law.’” Jd. (quoting 5 U.S.C. § 706(2)(A)); see also
New Mexico, 565 F.3d at 704.

An agency’s decision is arbitrary and capri-
cious if the agency entirely failed to consider
an important aspect of the problem, offered
an explanation for its decision that runs
counter to the evidence before the agency, or

App. 25

is so implausible that it could not be ascribed
to a difference in view or the product of
agency expertise. Furthermore, we must de-
termine whether the disputed decision was
based on consideration of the relevant factors
and whether there has been a clear error of
judgment.

Russell, 518 F.3d at 823-24 (quotation, citations,
alterations omitted); see also New Mexico, 565 F.3d at
704. Again, our “deference to the agency is especially
strong where the challenged decisions involve tech-
nical or scientific matters within the agency’s area of
expertise.” Russell, 518 F.3d at 824 (quotation omit

ted). “A presumption of validity attaches to the agen-
cy action and the burden of proof rests with the
[parties] who challenge such action.” Krueger, 513
F.3d at 1176 (quotation omitted).

2. Analysis

Petitioners assert that the NRC’s consideration
of airborne radiation at Section 17 violated NEPA in
two respects: 1) the NRC failed to consider the cumu-
lative amount of airborne radiation that will be
emitted from both the prior conventional mining
operation and HRI’s proposed ISL mining operation;
and 2) the NRC mischaracterized the airborne radia-

tion as “background radiation.”

App Zh

a. Whether the NRC erred in failing
to consider the cumulative air-
borne radiation that will result
from both the prior conventional
mining activities and HRs pro-
posed ISL mining operation

In arguing that the NRC violated NEPA by
failing to consider the cumulative impact of the au
borne radiation at Section 17, Petitioners rely on 40
CLF.R. § 1508.7." Under NEPA

lojur yob is NOL Lo Question the wisdom of the
agency's ultimate decision or its conclusion
concerning the magnitude of indirect) im
pacts. Rather, our job is to examine the ad
ministrative record, as a whole, to determine
whether the agency made a reasonable, good
faith, objective presentation of those impact:
sufficient to foster public participation and

informed decision-making

40 CFR. & 1508.7 define cumulative impact” a

the impact on the environment which results from th
incremental impact of the action when added to past
present, and reasonably foresecable future actions re
yardless of what apency (Federal or non-rederal) or
person undertake such other action: (cumulative
impacts can result from individually minor but colle
'

lively sipmifteant actions taking place over a period of
Lime
See also Wilderness Workshop vo. U.S. Bur. of Land Mygmt., 55)
KeSd 1220, 1228 n.& (10th Cir. 2008). Utah Enotl Conpress
Richmond, 443 F.4d 1127, 1155, 3159-40 (10th Cir, 2007). The
NRC has also promulpated its own repvulations for complying

with NEPA, 10 C.F R. Pt. 5)

App. 27

Fuel Safe Washington v. FERC, 389 F.3d 1313, 1331
(10th Cir. 2004) (quotations, citations, alterations
omitted); see also Richmond, 483 F.3d at 1140 (noting
that “NEPA does not prohibit approval of projects
with negative cumulative effects; it only requires that
the [agency] consider and disclose such effects”). We
conclude the NRC has met that standard here.

In addressing “airborne radiation,” the NRC’s
FEIS noted that “(t]he primary radiological impact to
the environment in the vicinity of the project results
from naturally occurring cosmic and _ terrestrial
radiation and naturally occurring radon-222 and its
daughters.” (Jt. App. at 276.) After further noting
that “[t]he average whole-body dose rate to the popu-
lation in this part of New Mexico,” resulting from
“local natural background radiation and ... from
medical procedures[,] ... is estimated to be about
2.25 mSv/year,” the FEIS went on to acknowledge
that the “l[rladiological effects during project con-
struction would include natural background plus
remnant radiation stemming from previous mining
and milling activities near the Church Rock site.” (Jd.
at 276-77.)

The FEIS went on to discuss the possible air-
borne radiation that the ISL mining operations would
create, and then considered

the cumulative effect of the long history of
mining in the area and the large exposures
to radon (and other radioactive elements
that form as radon decays) that occurred
primarily to miners and resulted in a high

App. 28

incidence of cancer among them. [The FEIS]
concludes that the proposed project would
result in a negligible increase in existing im-
pacts to the area due to mining and milling.

The NRC staff is aware that to some mem-
bers of the local community, any increase in
the cumulative effect or in radioactivity,
brought to the surface by any uranium min-
ing activity, would be unacceptable. This
perception is likely to be most prevalent
among those whose health has been, or who
have family members or friends whose
health has been negatively affected by ura-
nium mining activity.

Ud. at 284.)

The FEIS concluded that HRI’s ISL mining

would have “negligible” impact on the current air-

borne emissions levels:

The proposed project would make a minor
contribution to cumulative impacts in terms
of health physics and _ radiological im-
pacts.... The annual population dose was
estimated for the period in time of greatest
releases from all three project sites. Two
population dose estimates were calculated:
one for the Crownpoint/Unit I sites and one
for the Church Rock site. As the area of im-
pact is similar for both calculations, the re-
sults were combined with a total population
dose less than .01 man-Sv/year. ...

Northwest New Mexico has a long history
of uranium mining and milling. Effects of

App. 29

previous mining and milling operations in
the area are considered here as they relate to
the proposed licensing action. The Church
Rock facility as proposed would mine an area
previously mined by underground mining to
supply ore to the Church Rock mill site...
Early mines and mills operated under much
less stringent standards than exist today,
and this resulted in large exposures to radio-
active materials, especially radon and its
daughters. The exposures were large enough
to result in a high incidence of cancer among
workers, and information gathered on these
workers resulted in development of risk fac-
tors on radon.

In addition, the methods used to mine and
mill the uranium (i.e., “conventional” min-
ing) resulted in very large amounts of radio-
actively and chemically contaminated sands
and slimes, also known as tailings. In 1978,
the U.S. Congress passed the Uranium Mill
Tailing Radiation Control Act, which re-
quired standards to be developed to control
exposure from tailings and clean up past
sites of uranium milling... .

The proposed project would result in a negli-
gible increase in cumulative impacts in the
area due to uranium mining and milling.
HRI has proposed an ISL process which, by
its nature, does not result in large amounts
of tailings or environmental releases of radio-
active particulate material. Additionally, HRI
has proposed to use a vacuum dryer, which
reduces the total releases of radio-active

App. 30

particulates to nearly zero, and a pressurized
process circuit with a feedback system to re-
turn radon to the mine zone, which reduces
environmental radon releases. The expected
exposures from the remaining possible
sources of radon are a very small fraction of
the allowable limits for exposure of the pub-
lic. The amount of generated tailings is very
small, in the tens of cubic meters per year,
and would be disposed of at an off-site li-
censed facility. In addition, the facility and
related well fields would be required to be
decontaminated and decommissioned to the
appropriate State and Federal standards.

(id. at 289-90.)

It is clear, then, that the NRC did consider the
cumulative effect of the airborne radiation from past
mining as well as that expected from HRI’s proposed
ISL operations.” Petitioners, nevertheless, fault the

The FEIS also considered the cumulative impact of the
past, present and future airborne radiation when it noted, in
several places, that as a result of the NRC granting HRI a
license, HRI will be required to clean up the Section 17 site, thus
remedying the past contamination. For example, the FEIS noted
that

[t]he proposed project may result in a positive health

effect at the Church Rock site. This effect would occur

because some areas of the site have higher concentra-
tions of residual activity (from previous mining activi-

ties) than would be allowed in decommissioning the

site under the proposed action. Therefore, these areas

may be cleaned up as part of the well field decontami-

nation.

(Continued on following page)

App. 31

FEIS for not quantifying the amount of airborne
radiation already being emitted on Section 17 from
the past mining debris. “But NEPA’s ‘hard look’ does
not necessarily always require the agency to develop
‘hard data.’” Krueger, 513 F.3d at 1179 (citing Ecolo-
gy Ctr., Inc. v. U.S. Forest Serv., 451 F.3d 1183, 1190
(10th Cir. 2006)). In this administrative proceeding,
the NRC was considering the environmental impact
of granting HRI a mining license. And the NRC
determined that those mining operations would have
only a negligible effect on the amount of airborne
radiation on Section 17. The agency’s “hard look” at
the airborne emissions HRI’s operations are expected
to produce, therefore, sufficed to meet the NRC’s
obligation under NEPA to consider the cumulative
impact that granting HRI’s license would have on
airborne radiation. The NRC was not tasked here
with specifically mitigating the contamination left
from prior mining operations.’ Cf. Richmond, 483
F.3d at 1140 (noting that NEPA requires only that
the agency consider and disclose negative effects; it

(Jt. App. at 284.) Although Petitioners disagree with this
reasoning, the FEIS’s discussion of this possibility nevertheless
reinforces the fact that the FEIS did consider the cumulative
impact of the past, present and future airborne radiation at
Section 17.

'* Because they raise the issue for the first time before this
court in their reply brief, Petitioners have waived their argu-
ment that the FEIS improperly averaged airborne radiation
readings. We, therefore, decline to address tnat issue. See
Silverton Snowmobile Club v. U.S Forest Serv., 433 F.3d 772,
783-84 (10th Cir. 2006).

App. 32

does not prohibit the agency’s approval of programs
with negative cumulative effects).

2. Whether the NRC erred in character-
izing the airborne radiation emitted
from the prior conventional mining
operation as background radiation

Petitioners also argue that the FEIS, in address-
ing the effects of the past mining operations, errone-
ously treated the airborne radiation already being
emitted from the debris as naturally occurring rather
than as man-made background radiation. Even if it
did so, the FEIS still adequately considered the
cumulative impact from all of these sources of air-
borne radiation, regardless of how the NRC charac-
terized that airborne radiation.

3. Conclusion

For the foregoing reasons, the NRC’s considera-
tion of the cumulative impact of airborne radiation at
Section 17 amounted to the “hard look” NEPA re-
quired. We cannot say, therefore, that the NRC’s
decision to issue HRI a license was arbitrary, capri-
cious, an abuse of discretion, or otherwise contrary to
law.

App. 33

Ill. GROUNDWATER CONTAMINATION AND
RESTORATION AT SECTION 8

“Although ... ‘in situ’ leach mining techniques
are considered more environmentally benign [than]
traditional mining and milling practices they still
tend to contaminate the groundwater.” (Jt. App. at
1394 (NRC publication “Consideration of Geochemical
Issues in Groundwater Restoration at Uranium In-
Situ Leach Mining Facilities”).) In light of that, the
lhcense the NRC issued HRI requires HRI to restore
the groundwater after it finishes mining each site.
The license also requires HRI to maintain an ade-
quate financial surety to guarantee that HRI or a
third party, in HRI’s absence, will be able financially
to conduct this restoration. See also 10 C.F.R. §§ 40.1,
40.36, 40.42, App’x A, Criterion 9. Petitioners assert
that the NRC, in crafting these license provisions,
violated the AEA’s mandate that the NRC not issue
any license that, “in the opinion of the Commission,”
is “inimical to the common defense and security or
the health and safety of the public.” 42 U.S.C. § 2099;
see also 10 C.F.R. § 40.32(d). Further, Petitioners
contend that the FEIS violated NEPA because it
failed to take the required “hard look” at the possible
impact ISL mining might have on Section 8’s
groundwater quality, and particularly the impact on
that groundwater quality should HRI be unable to
meet the restoration goals set forth in the license.

App. 34

A. Atomic Energy Act

As previously mentioned, the AEA mandates that
the NRC not grant a license “if, in the opinion of the
Commission, the issuance of a license to such person
for such purpose would be inimical to the common
defense and security or the health and safety of
the public.” 42 U.S.C. § 2099; see also 10 C.F.R.
§ 40.32(d). In order to implement that mandate, the
NRC has promulgated regulations governing “the
issuance of [these] licenses . . . and [to] establish and
provide for the terms and conditions upon which the
[NRC] will issue such licenses.” 10 C.F.R. § 40.1(a);
see also id. § 40.1(b). Among those regulations, Ap-
pendix A to 10 C.F.R. Pt. 40 sets forth criteria the
NRC will consider in making licensing determina-
tions for an ISL uranium mining operation.’ See
In re Hydro Res., Inc., 49 N.R.C. 233, 235 (1999). At
issue here, then, is whether the conditions the NRC
imposed on the license it issued HRI, addressing the

” According to HRI, the NRC promulgated Appendix A’s
criteria with only conventional uranium milling operations in
mind. But a panel of the NRC’s Atomic Safety and Licensing
Board (“ASLB”) concluded in this case that 10 C.F.R. Part 40
and its Appendix A also apply generally to ISL mining. See Jn re
Hydro Res., Inc., 49 N.R.C. at 235; see also In re Hydro Res., Inc.,
51 N.R.C. 227, 238 (2000). Nevertheless, some of Appendix A’s
criteria, because they are aimed at uranium milling, are not
directly relevant to ISL mining. See In re Hydro Res., Inc., 49
N.R.C. at 236. After the NRC issued HRI the license disputed in
this case, the agency developed a Standard Review Plan specifi-
cally applicable to ISL recovery operations.

App. 35

restoration of the quality of the groundwater at
Section 8, remain true to the AEA’s mandate.

1. Standard of review

This court “will not set aside an agency’s decision
unless it is ‘arbitrary, capricious, an abuse of dis-
cretion, or otherwise not in accordance with law.’”
Russell, 518 F.3d at 823 (quoting 5 U.S.C.
§ 706(2)(A)). Further, this court defers to the agency’s
reasonable interpretation of its own regulations and,
thus, will “accept the agency’s position unless it is
plainly erroneous or inconsistent with the regula-
tion.” Holowecki, 552 U.S. at 397 (quotations omit-
ted).

2. HRI’s license”
a. Restoration of water quality

The problem the NRC faced in this case, regard-
ing the restoration of the groundwater at Section 8,
was this: NRC regulations require that HRI decom-
mission the site, including restoring the quality of the
groundwater. But no one had, as yet, fully restored

'* HRI’s license incorporated “all commitments, representa-
tions, and statements made in its licensing application,” as well
as the “Crownpoint Uranium Project Consolidated Operations
Plan (COP) ... except where superseded by license conditions
contained in th[e] license.” (Jt. App. at 314 (§ 9.3).) In addition,
the license also included a later-developed “Restoration Action
Plan.” See In re Hydro Res., Inc., 51 N.R.C. at 234, 238, 241-42.

App. 36

the groundwater quality after an ISL mining opera-
tion.’ Nonetheless, based upon results from pilot
demonstrations and small-scale tests, the NRC
became convinced that it was possible for HRI to
restore the groundwater at a well site after it finished
ISL mining.

HRI proposes to do so by

flushing the aquifer with naturally occurring
groundwater and decontaminated water to
remove any remaining lixiviant and degrad-
ed groundwater. Affected water in each mine
unit being restored would be withdrawn ... ,
processed through [the] ion exchange to re-
move uranium, then treated to remove radi-
um and total dissolved solids. This treated
water, known as permeate, would then be
reinjected to further flush the aquifer.
Groundwater sweep and pernieate injection
would be balanced so that a cone of depres-
sion would be maintained, causing ground-
water to flow toward the mining unit. Thus,
natural groundwater would be drawn into
the mining unit’s center.

(Jt. App. at 244.) The number of times the aquifer
will need to be flushed is measured by “pore vol-
umes”:

” There is evidence in the record indicating that, after the
NRC issued the FEIS in this case, groundwater quality was
successfully restored at the Bison Basin mine following an ISL
mining operation.

App. 37

A pore volume is an indirect measure of the
volume of water that must be pumped or
processed to restore the groundwater. It rep-
resents the water that fills the void space in-
side a certain volume of rock or sediment.
Restoration costs are closely linked to the
amount of water that must be processed to
effect restoration. The pore volume parame-
ter is used to represent how many times the
contaminated volume of water in the rock
must be displaced or processed to restore
sroundwater quality. It provides a means of
comparing the level of effort required to re-
store groundwater regardless of the scale of
the test. In general, the more pore volumes
of water it takes to restore groundwater
quality, the more money it will cost to
achieve restoration.

(id. at 258.)

In calculating the restoration efforts needed for
HRI to restore the groundwater quality during its
Crownpoint project, the NRC considered at length
data HRI submitted from demonstrations and test
results “conducted at other project locations.” (/d. at

” HRI submitted to the NRC data from several studies and
projects. The NRC first considered the results of HRI’s own
small core tests done in a laboratory using samples of rock
removed from the ore zones at the sites HRI seeks to mine as
part of its Crownpoint project. HRI conducted these tests in
order to “demonstrate the restoration potential” of this area. (Jt.
App. at 258-60.) Data from tests conducted on the core samples
taken from the Church Rock site “show[ed] the restored values
(Continued on following page)

App. 38

Eo

after 20 pore volumes [weJre circulated through the core,” 16 if
the pore volumes were run through at a faster pace; tests on the
Crownpoint core took 28 pore volumes to reach “restored
values.” (Ud. at 260: see also id. at 261-64.) While the NRC
recognized that results from such small-scale studies can
provide useful information, the agency had “significant con-
cerns” about whether these small-scale test results accurately
reflected an actual full-scale restoration process. (/d. at 258-60.)

Next, HRI submitted the results of “a single-well pilot
solution mine test, conducted in the Westwater Canyon aquifer”
- the aquifer where HRI proposes to conduct the ISL mining at
issue here — “near the Church Rock site in June 1980 by United
Nuclear Corporation and Teton Exploration Company.” (/d. at
260.) This test “showled] the restored values after 3 pore
volumes had been pumped from the aquifer.” (Jd.) Nevertheless,
the data from this test indicated that not all of the individual
parameters — chemicals or properties used to measure ground-
water quality — were returned to baseline levels. While this test
“was a larger-scale test than HRI’s core restoration studies,” the
NRC was still concerned that the Teton

test may not represent restoration of a full-scale well

field because (1) considerable dilution from uncontam-

inated groundwater occurs during the clean-up phase;

(2) one pore volume (at most) was leached, which is

much less than in a commercial operation; (3) there

‘as a relatively short contact time between the rock

and lixiviant (5 days); and (4) fresh lixiviant was not

continuously injected into the formation as would oc

cur in an operating ISL mine.

Ud.)

HRI also submitted data from a 1979-80 pilot project,
referred to as “Mobil Section 9 pilot,” conducted by Mobil Oi)
Company at a location one mile from HRI’s proposed Unit 1
mine site. Ud. at 266-67.) In that test, Mobil created an actual
well field and injected lixiviant there for eleven months. This
test “showled] restored water quality values after 16.7 pore
volumes had been pumped from the aquifer.” (/d.) But again not
all of the individual parameters were restored to baseline levels

(Continued on following page)

App 39

In particular, Mobil had trouble restoring the concentration of
molybdenum and radium to pre-mininy levels

In addition to these test results, HRI also submitted
“restoration demonstration data” from its production-scale
facilities in Wyoming and New Mexico. (/d. at 266.) The NRC
noted that it “regulates ISL mining in Wyoming and New
Mexico,” and that it had previously “approved the restoration of
several test patterns [there] to explore the feasibility of ISL
mining or demonstrate the feasibility of production-scale
restoration.” Ud.) But the “NRC has not yet approved the
successful restoration of a production-scale well field at any of
its licensed sites.” Ud.)

The NRC went on to acknowledye that Texas had “approved
groundwater restoration of production-scale ISL facilities,” but
that occurred “in groundwater of lower water quality than that
on the New Mexico properties” at issue in HRI’s license applica-
tion. Ud.) For that reason, the NRC did “not consider the Texas
data as representative for demonstrating restoration at the New
Mexico sites.” (/d.)

Lastly, the NRC noted the results of its own test, “conducted
to investigate the ability of natural geochemical processes to
restore water quality after ISL mining activities in an aquifer.”
(id. at 268.) That test studied the migration of lixiviant “down
rradient from a mined area into the area of an aquifer where
reducing conditions occur naturally.” (/d.)

The study indicated that major ion concentrations el-
evated during ISL mining, such as sodium, chloride,
and sulfate, are affected very little when the lixiviant
migrates into the undisturbed reduced zone. As a
result, concentrations tend to remain at the level
to which the water was restored for some distance
from the area of former mining. Conversely, redox-
(oxidation/reduction) sensitive ions such as uranium,
arsenic, selenium, and molybdenum precipitate from
solution if the restored water moves into a reducing
zone. Therefore, after restoration activities, if ground-
water moves into a reducing area, concentrations of
these ions should rapidly decrease in the groundwater
(Continued on following page)

Ay p ,f
258%.) The NRC concluded from this data that “all thre
paramete! " used by the license to measure vround
wate! quality can eventually be restored to water
use standards.” (dd. at 269.) The NRC. however, al

concluded that. notwith Landing these demonstration

and test results and because “water quality in aqu

ler containing uranium deposit may be highly
variable} groundwater restoration eriteria for
peciiie mining projects should be set taking: into

account ie pecili condition and patial Voriabion

(id. at 268.) Further. “lrlestoration criteria should be

based on a tatistical analysi a) fyroundw iter chen

try data from a lary et of well ampled over
period of time. (Ud
In hehe 7) Lhe C’ CONCIUSIO#N Live NR in Crattuin
the terms of HRI heense addre ing restoration of

yround water quality at Section &, did two thing
Kirst, the NRC determined that HERI's restoration

efforts would be measured using thirty-five pecihed

paramete! r chemical elements or properts
lad Phy Lus wso indicated that water i ity " i
ontaimminy uranium deposits may be highly arycatohe rf

Hithi's leense pecihically provide

In establishing restoration vou! Lhe followinp 4
ramcver!: hall bye measured alkalinity HMmMmMmOnMN
imsenic. barium, bicarbonate. boron, cadmium, cal

um, carbonate, chlomde, chromium, copper, fluorids
electrical conductivit iron, lead, mapnesium, mat
vanese, mercury, molybdenum, mickel, nitrate, pil
potassium, combined radium-226 and radium-22*
lenium, sodium, silver, sulfate, total dissolved soli

( ontlinuecd o1 followiny prcipie

App. 41

“HRI [is] required to use baseline | pre-mining] condi-
tions as the primary restoration target for all constit-
uents” or parameters. (/d. at 244.) The parties do not
challenge this means by which the license measures
HRI’s restoration efforts.

Lixiviant shall not be injected into a well
field before groundwater quality data is col-
lected and analyzed to establish groundwater
restoration goals for each monitored aquifer
of the well field, as follows:

A) The lcensee shall establish ground-
water restoration goals by analyzing three
independently-collected groundwater sam-
ples of formation water from: (1) each
monitor well in the well field; and (2) a
minimum of one production/injection well
per acre of well field. Samples shall be
collected a minimum of 14 days apart
from each other. Groundwater resto-
ration goals shall be established on a
parameter-by-parameter basis, with the
primary restoration goal to return all
parameters to average pre-lixiviant injec-
tion conditions. If groundwater quality pa-
rameters cannot be returned to average
pre-lixiviant injection levels, the second-
ary goal shall be to return groundwater
quality to the maximum concentration

uranium, vanadium, zinc, gross Beta, and gross Alpha
(excluding radon, uranium, and radium).

(Jt. App. at 320.)

App. 42

limits specified in the U.S. Environmen-
tal Protection Agency (EPA) secondary
and primary drinking water regulations.
The secondary restoration goal for bari-
um and fluoridel, however,] shall be set
to the State of New Mexico primary
drinking water standard. The secondary
restoration goal for uranium shall be

0.44 mg/L (300 pCi/L).”

(Ud. at 320 (§ 10.21) (footnote added).)” The FEIS
explained that meeting the secondary goals will
suffice if “water quality parameters cannot be re-
turned to average pre-mining baseline levels through
reasonable restoration efforts.” Ud. at 244.) And,
although HRI’s license does not state this, the FEIS
suggests that if HRI “found that it were impracticable
to restore to primary or secondary goals, it might
request a license amendment that would allow some
change in restoration requirements on a parameter-
by-parameter basis.” (/d. at 256.) The FEIS indicates,
however, that

lilf a groundwater parameter could not be
restored to its secondary goal, HRI would
have to make a demonstration to NRC that
leaving the parameter at the higher concen-
tration would not be a threat to public health

“ The parties later agreed to reduce this amount to 0.03
mg/L. See In re Hydro Res., Inc., 62 N.R.C. 77, 92 & n.7 (2005).
“ “These goals are consistent with the NRC Staff Technical

Position Paper Groundwater Monitoring at Uranium In Situ
Solution Mines (NRC 1981b).” (Jt. App at 256.)

App. 43

and safety and that, on a parameter by pa-
rameter basis, water use would not be signif-
icantly degraded.

Id.)

The NRC was particularly concerned about
restoring the “total dissolved solids,” or “IDS,” pa-
rameter:

TDS is a measure of the total sum of all dis-
solved constituents, but it is most affected by
the major constituents (sulfate, chloride, cal-
cium, bicarbonate, carbonate, fluoride, sodi-
um, and potassium). However, not all major
constituents have a secondary or primary
drinking water standard (for example, bicar-
bonate, carbonate, calcium, magnesium, po-
tassium). Consequently, it is possible that
after groundwater restoration, the TDS sec-
ondary goal might be achieved, but the sec-
ondary goal for individual major ions that
contribute to TDS might not be achieved. If
such a situation occurred, HRI would have to
make a demonstration to NRC that leaving a
parameter at higher than secondary goal
concentrations would not be a threat te pub-
lic health and safety and that water use
would not be significantly degraded. For
groundwater with TDS concentrations less
than the secondary goal, NRC staff hals]
assumed that worst-case groundwater resto-
ration would return water quality to the sec-
ondary goal, even though it cannot be achieved
without leaving some of the major parameters
at higher than background concentrations

App. 44

Gi.e., between primary and secondary goal
concentrations).

Ud. at 256-58.)

The second thing the NRC did in drafting the
terms of HRI’s license was to employ a graduated
approach to groundwater restoration at Section 8 and
as to the Crownpoint project as a whole. Because
“water quality in aquifers containing uranium depos-
its may be highly variable” and, thus, “groundwater
restoration criteria for specific mining projects should
be set taking into account site-specific conditions” (id.
at 268), the license requires HRI, when it begins
mining at Section 8, to conduct a demonstration of its
restoration methods. HRI must set aside a well field
in Section 8, perform ISL mining there “for at least
three months under commercial activity conditions,”
and then restore the groundwater quality in this test
field “to levels consistent with baseline.” Ud. at 311.)
HRI will then be able to use this demonstration to
calculate the pore values needed generally to restore
the groundwater throughout the project to baseline.
“Authorization for expansion of mining into addition-
al areas will be contingent upon the results of the
restoration demonstration.” (/d.)

b. Surety to guarantee the finan-
cial ability to conduct restora-
tion efforts

In order to facilitate the restoration of a mine site
after the operator has finished mining it, the NRC’s

App. 45

regulations further require that the mine operator
provide a surety in order to insure that the licensee
will have the economic wherewithal to “decommis-
sion” the ISL mine site. 10 C.F.R. Pt. 40, App. A,
Criterion 9. The NRC will review the amount of the
required surety annually and can adjust the surety
requirements as necessary “to recognize increases or
decreases resulting from inflation, changes in engi-
neering plans, activities performed, and any other
conditions affecting cost.” Jd.

In addressing this required surety arrangement,
HRI’s license mandates that the “ground water
restoration of the initial well fields shall be based on
nine pore volumes” (zd. at 312):

Surety for groundwater restoration of the in-
itial well fields shall be based on 9 pore-
volumes. Surety shall be maintained at this
level until the number of pore volumes re-
quired to restore the groundwater quality of
a production-scale well field has been estab-
lished by the restoration demonstration de-
scribed in [the license’s section] 10.28. If at
any time it is found that well field restura-
tion requires greater pore-volumes or higher
restoration costs, the value of the surety wil!
be adjusted upwards. Upon NRC approval,
the licensee shall maintain the NRC-,
approved financial surety arrangement con-
sistent with 10 CFR Part 40, Appendix A,
Criterion 9.

App. 46

Annual updates to the surety amount, re-
quired by 10 CFR Part 40, Appendix A, Cri-
terion 9, shall be provided to the NRC at
least 3 months prior to the anniversary date
of the license issuance. If the NRC has not
approved a proposed revision 30 days prior to
the expiration date of the existing s rety ar-
rangement, the licensee shall extend the ex-
isting arrangement, prior to expiration, for 1
year. Along with each proposed revision or
annual update of the surety tne licensee
shall submit supporting documentation
showing a breakdown of the costs and the
basis for the cost estimates with adjustments
for inflation (i.e., using the approved Urban
Consumer Price Index), maintenance of a
minimum 15 percent contingency, changes in
engineering plans, activities performed, and
any other conditions affecting estimated
costs for site closure.

Ud. at 315.)

3. Petitioners’ challenges to the license’s
terms governing the restoration of
groundwater at Section 8

Petitioners assert that the NRC violated the
AEA, in two ways, when it issued HRI a license to
conduct ISL mining at Section 8.

App. 47

a. The license the NRC issued HRI
is inimical to the public’s health
and safety because the nine pore
volumes required by the license
to restore the ground water at
Section 8, and the surety based
upon that nine-pure-volume res-
toration, are inadequate

Petitioners contend that the NRC acted arbitrari-
ly and capriciously in basing HRI’s license and the
required surety on a nine-pore-volume restoration
effort. More specifically, Petitioners contend that the
nine pore volumes will be inadequate to insure the
public health and safety, as the AEA requires.

In choosing nine pore volumes, the NRC rejected
HRI’s original proposal that a four-pore-value resto-
ration effort would be sufficient to restore the
groundwater quality. The NRC chose nine pore
volumes based on the agency’s detailed analysis of
the test and demonstration results HRI submitted,
see supra n.20. Summarizing those results, the NRC
concluded:

Depending on the parameter and the test
chosen, the pore volumes required to achieve
the lower water quality of the secondary res-
toration goal or background ranged from less
than 1 pore volume to greater than 28 pore
volumes. However, plots of TDS concentra-
tions and specific conductivity values (an
indirect measure of TDS) show little im-
provement with continued pumping after 8
to 10 pore volumes. The Mobil Section 9 pilot

App. 48

is the largest restoration demonstration con-
ducted in the project area to date. During
groundwater restoration activities in the
Mobil demonstration, TDS concentrations
were close to the secondary goal of 500 mg/L
after 6.9 and 9.7 pore volumes. On the basis
of the data submitted by HRI, the [NRC]
staff conclude[s] that practical production-
scale groundwater restoration activities
would at most require a 9 pore volume resto-
ration effort. Accordingly the staff ha[s] cal-
culated groundwater impacts assuming the
use of 9 [pore] volumes for groundwater
restoration. Furthermore, surety should be
maintained at this level until the number
of pore volumes required to restore the
groundwater quality of a production-scale
well field has been demonstrated.

(Jt. App. at 269.)

“In order for a factual determination to survive
review under the arbitrary and capricious standard,
an agency must examine the relevant data and
articulate a rational connection between the facts
found and the decision made.” New Mexico, 565 F.3d
at 713 (quotation, alterations omitted); see also Rus-
sell, 518 F.3d at 831. There is evidence in the admin-
istrative record supporting the NRC’s determination
that it is a reasonable estimate that HRI will be able
to restore groundwater quality in Section 8 using
nine pore volumes. For instance, the test results
detailed in the FEIS suggest restoration of the
groundwater quality is eventually possible. And in

App. 49

some of those tests, water quality was restored with
fewer than nine pore volumes.

In addition, based upon those test results, the
NRC’s hydrologist, William Ford, indicated that it is
“extremely likely that after in situ leach mining is
completed, the groundwater quality will be restored
to acceptable levels so that the water use of the
aquifer is maintained.” (Jt. App. at 484.) Ford further
asserted that, while the Mobil Section 9 demonstra-
tion indicated that “it is unlikely that groundwater
restoration activities at the Church Rock site will
achieve baseline concentrations for all groundwater
parameters,” at “the 9-10 pore volume range,” “it is
likely that most, if not all, of t. e groundwater param-
eters will achieve the secondary groundwater restora-
tion goals stated in HRI]’s License Condition 10.21.”

(Id.)

While Ford noted that “[a]pproximately 74% of
the parameters monitored in the Mobil demonstra-
tion met the secondary groundwater restoration goals
after 9-10 pore volumes of restoration effort” (id. at
484-85), he went on to explain why several of the
parameters that the Mobil Section 9 demonstration
could not restore should not present a problem for
HRI’s restoration efforts. According to Ford, two
of the six parameters that Mobil could not restore —
calcium and sodium — do not have primary or second-
ary drinking water standards because they are
not hazardous to humans. And another — molybdenum
— “is primarily a concern for cattle uptake.” (Ud. at
485.) Ford concluded that, in the Mobil Section 9

App. 50

restoration demonstration, “[a]t 9.7 pore volumes,
total dissolved solids (TDS) concentrations were at
587 parts per million (ppm), which was close to the
seccndary drinking water standard for dissolved
solids of 500 mg/L.” Ud.) Ford, therefore, concluded
that “it is very likely that the TDS secondary goal will
be achieved at Section 8, even though it cannot be
accomplished without leaving some of the major
parameters which are not a threat to public health
and safety at higher than background concentra-
tions.” (/d.) In addition, Ford noted that, although the
Mobil test did not restore arsenic after 9 pore vol-
umes, it “was very close to” and “was for all practical
purposes at the primary drinking water standard.”
(Id. at 485-86.) Finally, Ford acknowledged that the
Mobil Section 9 demonstration was not able to restore
uranium and radium levels after nine pore volumes.
But after 9.7 pore volumes, “uranium was nearly in
compliance with the NRC standard, and radium
concentrations were restored to anticipated baseline
conditions.” (id. at 486.) Moreover, Ford opined that
“parameters like arsenic, radium, molybdenum, and
uranium are readily retarded by rock water interac-
tions,” and “[t)herefore, it is extremely unlikely that
after restoration activities, arsenic, radium, molyb-
denum, or uranium levels would impact water quality
outside the restored well field areas.” (/d.)

The NRC’s Atomic Safety and Licensing Board
found Ford’s explanation persuasive. See In re Hydro
Res., Inc., 50 N.R.C. 77, 102-06 (Aug. 20, 1999). We
cannot conclude here that that determination was

App. 51

arbitrary or capricious. See New Mexico, 565 F.3d at
713. Nor do we find any evidence in the administra-
tive record to support Petitioners’ assertion that the
NRC based its adoption of the nine-pore-volume
restoration effort on economic reasons and “HRI’s
financial well-being.” (Pet. Br. at 47 n. 32.)

The NRC, then, considered in detail HRI’s ability
to restore the groundwater at Section 8 to its pre-
lixiviant levels. And in drafting HRI’s license, the
NRC took a reasoned approach by requiring HRI to
attempt to restore the groundwater at Section 8
before beginning ISL recovery operations at any of
the other three sites. In light of that, we must uphold
the NRC’s licensing decision in this respect as not
arbitrary or capricious, an abuse of discretion or
contrary to law. See Utah Shared Access Alliance v.
Carpenter, 463 F.3d 1125, 1134 (10th Cir. 2006)
(noting that for an agency decision to survive arbi-
trary-and-capricious review, the agency must have
“examined the relevant data and articulated a ra-
tional connection between the facts found and the
decision made,” and “there must be a reasoned basis
for the agency’s action”).

For the same reasons, we reject Petitioners’
related contention that the NRC failed to require HRI
to post an adequate surety for its groundwater resto-
ration efforts. Petitioners contend that the actual
pore volumes necessary to restore the groundwater at
Section 8 could be much greater than the nine pore
volumes on which the surety is currently based. But
the regulations, as well as HRI’s license, call for a

App. 52

surety based upon the “estimated” restoration costs.
(Jt. App. at 315.) And, as just explained, the NRC has
made a reasoned and informed determination of the
needed restoration efforts. Further, based upon the
relevant regulations, see 10 C.F.R. Part 40, Appendix
A, Criterion 9, the license provides for an annual
review of the surety and a mechanism by which that

surety can be changed.

b. The license the NRC issued HRI
is inimical to the public’s health
and safety because it allows HRI
to remedy any deficiency in the
surety funding at the time the
site is decommissioned

Petitioners also argue that the NRC shirked its
responsibility to set restoration goals and the surety
in an amount adequate to insure the operator can
restore the groundwater by simply relying on the fact
that the surety can be increased later, during the
NRC’s annual reviews of the surety amount. As
previously explained, however, the NRC did not shirk
its responsibility. While the NRC regulations do
provide for an annual review of the surety and the
possibility that the surety will need to be adjusted,
see 10 C.F.R. Part 40, Appendix A, Criterion 9, the
NRC made a definitive and reasoned selection of nine
pore volumes at the outset of this project as the
estimated necessary restoration effort that HRI must
fund. The graduated nature of the project the NRC

App AS

approved, however, represents a reasoned way to

address the unknowns at play in this case

4. Whether the NRC denied Petition-
ers the right to an administrative
hearing on HRI’s ability to restore
the water quality in the other three
mining sites

The AEA provides that, “lilnm any proceeding
under this chapter, for the granting, suspending,
revoking, or amending of any license ... the Commis
sion shall grant a hearing upon the request of any
person whose interest may be affected by the proceed
ing.” 42 U.S.C. § 2239(a)(1)(A). Petitioners requested
such a hearing, and the NRC conducted one. Petition
ers do not challenge the adequacy of that hearing
Instead, they complain that there will be a number of
determinations about HRI’s project that will be made
in the future, and yet Petitioners will not at that time
have the opportunity for another hearing on those
issues. For example, the exact groundwater restora
tion standards cannot be determined until HRI drills
its wells in Section 8. And restoration and surety
requirements for the other three mining sites will not
be determined until HRI initially demonstrates it:

ability to restore the groundwater at Section &
The NRC determined, however, that Petitioner

had a fair opportunity to challenge the 9 pore
volume estimate for Section &, which was

based upon the available information to date

App 54

The fact that data from the restoration
demonstration project will be reviewed for
confirmation of the 9 pore volume estimate
does not obviate the fact that a meaningful
hearing has been provided for the adjudica
tion of the 9 pore volume estimate

In re Hydro Res., Inc., 60 N.R.C. 581, 598 (2004). That
determination was not arbitrary, capricious, an abuse
of discretion or otherwise unlawful. The NRC conducted
a hearing, after which it definitively determined that at
this time a nine-pore-volume restoration effort: would

he necessary.

The NRC further noted that, if HRI or the
NRC requested to amend the license and/or HRs
surety, Petitioners will, at that time, have an oppor
tunity to request another hearing. See 42 U.S.C
§ 2239(ay 1A) (“In any proceeding under this chap
baie for the pranting, revoking, or amending of any
license ... the Commission shall grant a hearing
upon the request of any person whose interest may be
affected by the proceeding.”) (emphasis added). If, on
the other hand, the NRC decides it does not need to
amend HRI’s license and/or surety, Petitioners them
selves can petition to amend HRI’s license. See 10
C.FLR. § 2.206(a) (stating that “laljny person may
file a request to institute a proceeding pursuant to

§ 2.202 to modify, suspend, or revoke a license, or for

any other action as may be proper”). See generally
Ila. Power & Light Co. v. Lorvon, 470 U.S. 729, 731,
105 S. Ct. 1598, 84 L. Ed. 2d 645 (1985)

App. 55

Petitioners argue that it is unlikely that the
relevant NRC Director will exercise its discretion, see
Ohio ex rel. Celebrezze v. NRC, 868 F.2d 810, 814-15
(6th Cir. 1989), to grant them a hearing under
§ 2.206. See Eddleman v. NRC, 825 F.2d 46, 48 (4th
Cir. 1987) (noting there is no mght to a hearing under
10 C.F.R. § 2.206). But they are entitled to request a
hearing. And if an NRC Director wrongly denies them
a hearing, although there is no further administra-
tive review available, see 10 C.F.R. § 2.206(c)(2),
Petitioners may be able to seek judicial review of that
determination. See Lorion, 470 U.S. at 740-41, 746;
see also Kelley v. Selin, 42 F.3d 1501, 1515 (6th Cir.
1995) (citing Bellotti v. United States Nuclear Regula-
tory Comm'n, 725 F.2d 1380, 1383, 233 U.S. App.
D.C. 274 (D.C. Cir. 1983)) (noting NRC may not deny
arbitrarily a petition seeking a hearing under 10
C.F.R. § 2.206); Massachusetts v. United States Nu-
clear Regulatory Comm’n, 878 F.2d 1516, 1522, 1525
(lst Cir. 1989) (reviewing to determine whether
agency “inexcusably default{ed] on its fundamental
responsibility to protect the public safety”). But see
Riverkeeper, Inc. v. Collins, 359 F.3d 156, 164 (2d Cir.
2004) (holding that NRC’s denial of § 2.206(a) petition
for a hearing was not reviewable because it was left
to the agency’s total and unreviewable discretion);
Nuclear Info. Res. Serv. v. Nuclear Regulatory
Comm’n, 969 F.2d 1169, 1178, 297 U.S. App. D.C. 169
(D.C. Cir. 1992) (noting the same); Arnow v. United
States Nuclear Regulatory Comm’n, 868 F.2d 223,
235-36 (7th Cir. 1989) (same).

App. 56

For these reasons, the NRC does not appear to
have deprived Petitioners of their right to a hearing.

B. Whether the NRC violated NEPA by
failing to consider adequately the im-
pact HRI’s mining might have if HRI
is unable to restore the groundwater
quality at Section 8

Petitioners contend that the NRC violated NEPA
by not properly considering the cumulative environ-
mental impacts on Section 8 that might result if HRI
is unable to restore the groundwater quality.” As
previously mentioned, NEPA requires the NRC to
consider the potential consequences of its proposed
action by taking a “hard look” at those consequences.
See Russell, 518 F.3d at 820-21; Krueger, 513 F.3d at
1179. This court “will not set aside an agency decision
unless it is ‘arbitrary, capricious, an abuse of dis-
cretion, or otherwise not in accordance with law.’”
Russell, 518 F.3d at 823 (quoting 5 U.S.C.
§ 706(2)(A)).

The FEIS, in fact, does address the possibility
that HRI will be unable to restore fully the ground-
water at Section 8.

“ The NRC argues that Petitioners failed to preserve this
issue before the agency. We need not address this waiver
argument because, in any event, the NRC has complied with

NEPA.

7

App. &

The potential groundwater impacts of ISL
mining are related to the consumption of
groundwater (i.e., water is pumped from the
aquifer but not returned to it) and short- and
long-term changes to groundwater quality
(i.e., the chemistry of the water). Perhaps the
most significant environmental impact that
can occur as a result of ISL mining is the
degradation of water quality in the ore-
bearing aquifer.

(Jt. App. at 254.) Further, the FEIS recognized that
“(llocal groundwater quality in the Westwater Can-
yon sandstone within the proposed mining units
would deteriorate during HRI’s proposed project.”
(/d.) In particular, during mining, “the concentrations
of most of the naturally occurring dissolved constitu-
ents will be appreciably higher than their concentra-
tions in the original groundwater.” (Ud.) “The total
volume of groundwater tnat would be chemically
affected by ISL mining is estimated to be 3.3 million
m (2671 acre-ft.).” dd. at 287.)

In addition, the FEIS recognized the dangers
posed by possible excursions — “unanticipated releas-
es of mining solutions that move beyond the ‘well
field area’” — occurring during the mining process.
(Id. at 254.) Specifically, the FEIS noted that “signifi-
cant adverse effects to groundwater quality would
result if an excursion (either horizontal or vertical)
occurs or if, after routine mining, water quality is not
restored.” (/d. at 280.)

App. 58

Not only did the FEIS recognize these possibili-
ties, the FEIS expressly explored ways in which the
groundwater contamination could be contained and
eventually remediated.

To preserve the community’s use of the
Westwater Canyon aquifer as a drinking wa-
ter source, NRC staff would require several
mitigation measures of HRI.... Generally,
the measures include additional characteri-
zation, testing, and bonding above that
proposed by HRI, for groundwater restora-
tion. A groundwater restoration demonstra-
tion would be required at Church Rock
before lixiviant could be injected at Unit t or
Crownpoint.

(Id.) The FEIS discussed monitoring the groundwater
contamination during ISL mining, as well as the
methods and timing of HRI’s efforts to restore the
groundwater quality after its mining operations
cease. And the FEIS addressed the primary aid
secondary restoration goals which were eventually
included in HRI’s license. Further, the FEIS noted
that, if HRI could not meet even the secondary resto-
ration goals required of it, HRI “would have to make
a demonstration to NRC that leaving the parameter
at a higher concentration would not be a threat to
public health and safety and that, on a parameter by
parameter basis, water would not be significantly
degradeu.” (/d. at 256.)

In addressing all of these issues, the FEIS
acknowledged that “[sluccessful restoration of a

App. 59

production-scale ISL well field has not previously
occurred. Further, site-specific tests conducted by
HRI have not demonstrated that the proposed resto-
ration standards can be achieved at a production
scale.” (Ud. at 280.) Nevertheless, the FEIS ultimate-
ly determined that HRI would be able eventually to
meet the required restoration goals. It did so based
upon a detailed analysis of the test results from this
and other projects offered by HRI, discussed above.”

For these reasons, we conclude that the NRC
took the “hard look” NEPA requires regarding
groundwater restoration at Section 8. See Krueger,
513 F.3d at 1178 (quotation omitted); cf. Richmond,
483 F.3d at 1140 (noting NEPA does not prohibit
agency from approving project with negative cumula-
tive effects, so long as agency considered those effects).
Therefore, we cannot say that the NRC’s decision to
issue HRI’s license was arbitrary, capricious, an
abuse of discretion or otherwise contrary to law.

” There is evidence in the record that “after the FEIS was
published[,] ... groundwater was successfully restored by the
State of Wyoming at the Bison Basin ISL mine site.” (Jt. App. at
477 n.7.)

* On review, Petitioners fault the NRC for rejecting
Petitioners’ NEPA claim pertaining to the groundwater restor’
tion at Section 8. In particular, Petitioners complain that NRC
summarily upheld the NRC’s compliance with NEPA because
the agency had already rejected their arguments that HRI’s
license, as it addressed groundwater restoration, violated AEA.
Most of Petitioners’ arguments challenging HRI’s ability to
restore groundwater, however, are the same, under both the
AEA and NEPA. And the NRC addressed those at length.

App. 60

IV. Conclusion

For all of the foregoing reasons, we DENY the
petition for review and upho!d the NRC’s licensing
decision in all respects.

DISSENT BY: LUCERO

DISSENT
LUCERO, J., dissenting:

Because the majority’s decision in this case will
unnecessarily and _ unjustifiably compromise the
health and safety of the people who currently live
within and immediately downwind from Section 17, I
must respectfully dissent. For thirty years, the Unit-
ed Nuclear Corporation (“UNC”) mined Section 17.
When it abandoned the mine, it failed to undertake a
basic responsibility: cleaning up after itself. UNC left
behind mining spoil that continuously emits gamma
radiation and radon. Now, the Nuclear Regulatory
Commission (“NRC”) has granted a license to Hydro
Resources, Inc. (“HRI”) to mine the same property.
HRI plans to mine the site, which will result in total
radiation levels nine to fifteen times the permitted
regulatory limit.

Petitioners in this case include members of three
families that live within or near Section 17 and Eastern
Navajo Dine Against Uranium Mining, a Navajo com-
munity organization representing members who reside

App. 61

primarily in Church Rock and Crownpoint, New
Mexico. These petitioners should be able to rely on
the NRC to properly interpret statutes and agency
regulations designed to protect the public’s health
and safety. Instead, the NRC has abandoned its
statutory commitment to refrain from issuing licenses
if doing so “would be inimical to ... the health and
safety of the public,” 42 U.S.C. § 2099, and has ren-
dered this community vulnerable to the ill effects of
dangerous radiation.

My respected colleagues compound the NRC’s
error by failing to adequately review the agency’s
action. The NRC issued HRI’s license at Section 17
using an interpretation of 10 C.F.R. 1 § 20.1301(a)(1)
that 1s inconsistent with the text of the regulation.
We should therefore set aside the NRC’s decision and
remand to the agency for decisionmaking consistent
with the proper interpretation of the rule — an inter-
pretation that is true to the regulation and that
adequately protects the interests of the public and the
petitioners in this case. Because the majority’s deci-
sion compounds past injustice by committing legal
error, I respectfully dissent.

I

In affirming the NRC’s grant of a mining license
to HRI, the majority erroneously concludes that
we should defer to the NRC’s interpretation of
§ 20.1301(a)(1). (Majority Op. 14.) The majority notes
that when we review an agency’s interpretation of

App. 62

its own regulations under the Administrative Proce-
dure Act (“APA”), 5 U.S.C. § 551 et seg., we must give
the agency’s interpretation “controlling weight unless
it is plainly erroneous or inconsistent with the regu-
lation.” (Majority Op. 9) (quoting Udall v. Tallman,
380 U.S. 1, 16-17, 85 S.Ct. 792, 13 L. Ed. 2d 616
(1965)). In this case, the NRC’s interpretation of
§ 20.1301(a)(1) is “inconsistent with the regulation”
and thus warrants no deference. Thomas Jefferson
Univ. v. Shalala, 512 U.S. 504, 512, 114 S. Ct. 2381,
129 L. Ed. 2d 405 (19:94).

Section 20.1301(aX1) requires that a licensee
conduct operations such that:

[t]he total effective dose equivalent to indi-
vidual members of the public from the li-
censed operation does not exceed 0.1 rem (1
mSv) in a year, exclusive of the dose contri-
butions from background radiation, from any
medical administration the individual! has
received, from exposure to individuals ad-
ministered radioactive material and released
under § 35.75, from voluntary participation
in medical research programs, and from the
licensee’s disposal of radioactive material in-
to sanitary sewerage in accordance with
§ 20.2003.

1 § 20.1301(a)(1).

In granting the license in this case, the NRC
interpreted the cap on the total effective dose equiv-
alent (“TEDE”) from the “licensed operation” to limit

App. 63

only the radiation “directly linked to licensed activi-
ty.” In re Hydro Res., Inc., 63 N.R.C. 510, 516 (2006).
The majority concludes that this interpretation is not
“plainly erroneous” because “(t]he 1 [sic] clear lan-
guage of this regulation supports the NRC’s decision
to focus only on the licensed operation.” (Majority Op.
14.) This conclusion, however, seems merely to beg
the question: the meaning of the phrase “licensed
operation” as used in § 20.1301(a)(1).

The NRC’s interpretation of “licensed operation”
is inconsistent with the regulation because it renders
superfluous the exclusion of “background radiation”
and radiation from other specified sources in
§ 20.1003. It is a well-established principle of statuto-
ry and regulatory interpretation that a provision
should be read such that no term is rendered nugato-
ry. See Time Warner Ent. Co., L.P. v. Everest Midwest
Licensee, L.L.C., 381 F.3d 1039, 1050 (10th Cir. 2004)
(“As with statutory construction, in interpreting
regulations; 6937; 6937, [sic] we strive to construe the
text so that all of its provisions are given effect and
no part is rendered superfluous.”). The NRC inter-
prets “licensed operation” to refer only to the licen-
see’s activity. However, § 20.130l(a) expressly
excludes from the radiation limit on a “licensed
operation” any “background radiation,” along with
radiation from any “medical administration the
individual has received, from exposure to individuals
administered radioactive material ... , from volun-
tary participation in medical research programs, and

App. 64

from the licensee’s disposal of radioactive material
into sanitary sewerage.”

By focusing only on the licensee’s activities, the
NRC’s interpretation of “licensed operation” renders
these specific exclusions unnecessary: There is no
reason to expressly exclude radiation from medical
research programs if “licensed operation,” by defini-
tion, refers only to activity of the licensee. The major-
ity apparently accepts the NRC’s explanation that not
every licensee is a mining company and “this lan-
guage clarifies that the NRC’s regulations specifically
addressing sanitary sewers and medical administra-
tion of radiation continue to govern those other
matters.” (Majority Op. 15.)

The regulation does no such thing. It does not
refer to these other sets of regulations or state that
they apply notwithstanding § 20.1301(a). Moreover,
the NRC itself has admitted the superfluity of the
relevant language under its interpretation:

[Slimply interpreting the phrase ‘from the li-
censed operation’ as limiting the scope of
TEDE arguably renders unnecessary other
provisions in the TEDE rule expressly ex-
cluding doses resulting from medical admin-
istration and disposal of radioactive material
in sanitary sewerage.

In re Hydro Res., 63 NRC at 516.

Because the NRC’s asserted interpretation of
§ 20.1801(a)(1) violates a fundamental rule of construc-
tion, and because the NRC granted HRI a license in

App. 65

derogation of its duty to protect public health and
safety, I would reject its definition of “licensed opera-
tion.”

Il

Although the majority does not reach the issue, |
would also hold that radioactive emissions from
existing mining spoil at Section 17 should not be
excluded from the TEDE limit as “background radia-
tion.” Section 20.1301(a) excludes radiation doses due
to “background radiation” from the limit on TEDE.
The regulations define “background radiation” to
include “naturally occurring radioactive material”
(“NORM”). § 20.1003. Moreover, neither the Atomic
Energy Act nor NRC regulations define NORM. The
NRC concluded that NORM includes “technologically
enhanced naturally occurring radioactive material”
(“TENORM”), or “radioactive materials that, as a
result of human activities, are no longer in their
natural state,” Jn re Hydro Res., Inc., 63 N.R.C. 41, 67
(2006), including mining spoil. /n re Hydro Res., Inc.,
63 N.R.C. at 518 (2006).

The NRC’s interpretation of the regulation is yet
again unreasonable. When a term is not defined by
the relevant statute or regulation, we interpret it
using its “ordinary, contemporary, common meaning.”
Perrin v. United States, 444 U.S. 37, 42, 100 S. Ct.
311, 62 L. Ed. 2d 199 (1979) (citation omitted). “Natu-
rally” means “according to or by the operation of the
laws of nature.” Webster’s 3d New Int'l Dictionary

App. 66

1507 (1993). Thus, “naturally occurring radioactive
material” is radioactive material that occurs accord-
ing to or by the operation of the laws of nature. It
does not include radioactive materials that are no
longer in their natural state as a result of human
activities.

The NRC asserts that that “technical terms of art
should be interpreted by reference to the trade or
industry to which they apply.” Although an accurate
statement of the law, see La. Pub. Serv. Comm’n v.
FCC, 476 U.S. 355, 372, 106 S. Ct. 1890, 90 L. Ed. 2d
369 (1986), this argument is unavailing. The NRC
failed to provide any authority — even one of its own
past decisions — indicating that NORM is, in fact, a
technical term of art with the meaning it now asserts.
In contrast, petitioners cite a number of authorities
indicating that TENORM was not understood to be a
subset of NORM when the latest version of NRC rules
was promulgated in 1991. “Background radiation”
does not include radiation caused by existing mining
spoil at Section 17 and thus should not be considered
radiation from a licensed operation.

Ill

Because the NRC granted HRIl’s license using
interpretations of its regulations that are inconsistent
with the regulations themselves, I would set aside its
decision and remand for the agency to reconsider its
licensure of HRI. Petitioners have submitted substan-
tial evidence indicating that the total TEDE at

App. 67

Section 17 already exceeds the 0.1 rem permitted by
§ 20.1301. Further, they have presented evidence
that HRI’s mining will ultimately produce radiation
many times the permitted limit. Using the correct
interpretation of § 20.1301, the NRC would likely
revoke HRI’s license.

Families currently live within and just downwind
from Section 17. The NKC’s erroneous decision and
the majority’s endorsement of that decision will
expose these families to levels of radiation beyond
those deemed safe by the NRC’s own regulations,
jeopardizing their health and safety. Accordingly, I

dissent.

App. 68

(‘11-06-29
Cite as 64 N.R.C. 417 (2006)

UNITED STATES OF AMERICA
NUCLEAR REGULATORY COMMISSION

COMMISSIONERS:
Dale Ek. Klein, Chairman
Edward McGaffipan, Jr.

Jeffrey S. Merrifield

Gregory B. Jaczko
Peter B. Lyons

IN THE MATTER OF HYDRO No. 40-8968-ML
RESOURCES, INC,
(P.O. Box 777, Crownpoint, December 14, 2006

New Mexico 87313)

MEMORANDUM AND ORDER

In this decision, we consider a petition for review
filed jointly by Intervenors Eastern Navajo Dine
Against Uranium Mining (“ENDAUM”), Southwest
Research and Information Center (“SRIC”"), Grace
Sam, and Marilyn Morris. Intervenors seek review of
LBP-06-19, the Presiding Officer’s Final Partial
Initial Decision in this lengthy materials license
proceeding. The Presiding Officer’s decision addresses
the adequacy of the Final Environmental Impact
Statement’s (“FIEIS”) analysis for the Ilydro Re-
sources Inc, (“HRI”) Crownpoint Uranium Solution
Mining Project. The decision focuses on the EIS
insofar as it relates to the Church Rock Section 17,

App. 69

Unit 1, and Crownpoint sites' HRI and the NRC Staff
oppose Intervenors’ petition for review. The Commis-
sion carefully has considered the Intervenors’ peti-
tion, but finds that it does not identify any “clearly
erroneous” factual finding, significant legal error, or
any other reason warranting plenary review. For the
reasons outlined below, we deny the petition.

I. FEIS SUPPLEMENT

The Intervenors argue that the NRC must sup-
plement the FEIS to address a “change in the legal
status of HRI’s proposed mining project.” Specifically,

‘ The HRI license, issued by the NRC in 1998, authorizes
HRI to conduct in situ leach uranium mining at four sites in
McKinley County, New Mexico: Church Rock Section 8, Church
Rock Section 17, Unit 1, and Crownpoint. Earlier decisions by
the Presiding Officer and Commission rejected Intervenor
arguments on the adequacy of the FEIS analysis as it relates to
the Church Rock Section 8 site. See LBP-99-30, 50 NRC 77
(1999), affd, CLI-01-4, 53 NRC 31 (2001). The first portion of
this proceeding (“Phase I”) focused on Church Rock Section 8.
Issues specific to the other three mining sites — Church Rock
Section 17, Unit 1, and Crownpoint — have been litigated in this
second portion (“Phase II”) of the proceeding.

* See 10 C.E.R. § 2.786(b)(4) (2004). The NRC has amended
its adjudicatory procedural rules in 10 C.F.R. Part 2. See Final
Rule: “Changes to Adjudicatory Process,” 69 Fed. Reg. 2182 (Jan.
14, 2004). For cases docketed prior to February 13, 2004 (such as
this case), the previous procedural rules, including tie former 10
C.F.R. § 2.786, continue to apply. A substantially equivalent new
rule now appears in 10 C.F-.R. § 2.341(b)(4).

* Intervenors’ Petition for Review of LBP-06-19 (Sept. 11,
2006) (“Petition”) at 3.

App. 70

they state that the Diné Natural Resources Protec-
tion Act (““DNRPA”), passed by the Navajo Nation
Council in 2005, “definitively prohibits uranium
mining or processing within Navajo Indian Country,”
and that Section 17, Unit 1, and part of the
Crownpoint site are “Indian Country.” They therefore
claim that “HRI is prohibited by law from mining on
at least two of its four proposed sites,” and that an
FEIS supplement is necessary because the DNRPA is
a “significant change in the legal requirements affect-
ing the HRI mine.” According to Intervenors, by
rejecting their argument on the need for an EIS
supplement, the Presiding Officer violated 10 C.F-R.
§ 51.71(d).°

But as the Commission explained earlier in this
proceeding, not all new information that might
emerge following issuance of an environmental im-
pact statement requires a supplement to the impacts
analysis. The new information must present a “‘seri-
ously different picture of the environmental impact

i
* Td.

* Intervenors’ petition does not explain their reference to
section 51.71 (d), an NRC regulation on the contents of a draft
envirenmental impact statement. We assume they mean to
reference the provision’s statement that “[d]ue consideration will
be given to compliance with ... requirements that have been
imposed by Federal, State, regional, and local agencies having
responsibility for environmental protection. ...” The regulation
emphasizes that “irrespective” of any such requirements, the
NRC will consider the environmental impacts of the proposed
action.

App. 71

of the proposed project from what was previously
envisioned.’”’ Here, the Presiding Officer found that
the Intervenors “failfed] to provide evidence or argu-
ment to suggest that the DNRPA calls into question
any of the environmental conclusions in the FEIS.”
Concluding that there was no “indication that the
DNRPA will result in a significantly new potential
impact not considered in the FEIS,” the Presiding
Officer rejected the Intervenors’ argument on the
need for an FEIS supplement.”

The Presiding Officer did note that HRI must
comply with all applicable legal requirements, includ-
ing obtaining any necessary underground injection
control permit and aquifer exemption. He therefore
stated that resolution of “whether the sites on which
HRI proposes to conduct NRC-licensed mining opera-
tions are in ‘Indian Country’.... may affect HRI’s
ability to mine,” just as whether HRI can obtain
necessary permits or exemptions would affect its
ability to mine” Pursuant to license condition, HRI
must “obtain all necessary permits and licenses from
the appropriate regulatory authorities” prior to
injecting lixiviant.”

” Hydro Resources, Inc. (P.O. Box 15910, Rio Rancho, NM
87174), CLI-04-39, 60 NRC 657, 659 (2004) (quoting Sierra Club
v. Froehlke, 816 F.2d 205, 210 (5th Cir. 1987)).

* LBP-06-19, 64 NRC 53, 104 (2006).
* Id.

'° Id. at 104 n.40.

'' See License Condition 9.14.

App. 72

To the extent that the DNRPA presents another
“legal requirement [|] affecting the HRI mine,” the
Presiding Officer’s decision itself effectively supple-
ments the FEIS, thereby updating the FEIS descrip-
tion of the Navajo Nation’s position on uranium
mining activities and making clear the DNRPA’s
enactment and HRI’s need “to ensure its operations
do not run afoul” of the DNRPA.” However, it is
beyond the NRC’s authority or the scope of this
proceeding to resolve jurisdictional questions that
ultimately may determine whether HRI is able to
proceed with the uranium mining project. While the
NRC recognizes the tribal sovereignty of the Navajo
Nation, it is not the function of the EIS process to
resolve existing or potential jurisdictional disputes.”

‘* LBP-06-19, 64 NRC at 104 n.40 (quoting LPP-06-1, 63
NRC 41, 71 n.29 (2006)). At the time the FEIS was issued, there
was an ongoing moratorium on uranium mining activity on
Navajo lands. The Navajo Nation issued the moratorium in
1983, and renewed it by tribal executive order in 1992. See
NUREG-1508, “Final Environmental Impact Statement to
Construct and Operate the Crownpoint Uranium Solution
Mining Project, Crownpoint, New Mexico” (February 1997)
(“FEIS”) at 3-87. The FEIS nonetheless noted that many indi-
viduals (“allottees”) had agreed to lease their land to HRI, and
that a conflict existed between the Navajo Nation moratorium
on uranium mining and the “individuals’ decisions about their
land.” Jd. at 4-120. In light of unresolved conflicts over applica-
bility of the moratorium to allotted lands, the FEIS describes
that the NRC chose to proceed “with the EJS process and with a
Safety Evaluation Report” to determine the potential impacts of
HRs proposed project and alternatives. Id.; see also id. at A-54.

See, e.g., FEIS at 4-114 to 4-115 (regarding “competing
jurisdictional claims” over “which sovereign — the Navajo Nation

(Continued on following page)

App. 73

The FEIS notes expressly that resolution of which
proposed project areas are Indian Country and relat-
ed jurisdictional questions “may ultimately be deter-
mined through litigation” outside of the EIS process.”
Simply put, if HRI cannot satisfy applicable Federal,
State, and Navajo Nation requirements, it cannot go
forward with the project.

Ultimately, at issue is whether the DNRPA
significantly alters the FEIS’s findings on environ-
mental impacts. In their petition for review,
Intervenors simply call “the effects of the DNRPA on
the FEIS ... major and obvious,” and then go on to
suggest that because of the DNRPA, the FEIS re-
quires a new cost-benefit analysis, a new analysis of
project “alternatives,” and a new analysis of the

environmental effects of liquid waste disposal)"

As a threshold matter, we note that these argu-
ments were not part of the Intervenors’ original
NEPA presentation to the Presiding Officer, and are
therefore impermissibly late).'’ The Commission

or the State of New Mexico — can administer the utilization of
water rights”; see also, e.g., td. at 1-5 (“there are disputes over
the jurisdictional status of some of the project area, and similar
conflicts may arise regarding other project areas”), 4-115, A-54 to
A-55.

See id. at 4-101; see also id. at 5-4, A-54 to A-56.

'* Petition at 3 n.3.

16 Id

' See Intervenors ENDAUM’s, SRIC’s, Grace Sam’s and
Marilyn Morris's Written Presentation in Opposition to HRI's

(Continued on following page)

App. 74

deems waived arguments or legal theories not raised
before a Presiding Officer or Licensing Board,” or
only introduced in a reply filing which opposing
parties did not have the opportunity to address.” In
any event, Intervenors’ broad-brushed calls for “revis-
itling|]” or “reevaluatling|” the FEIS cost-benefit
analysis, analysis of alternatives, and liquid waste
disposal analysis do not indicate how the DNRPA
significantly alters the FEIS’s findings and conclu-

SIONS.

Intervenors’ petition for review suggests that the
HRI project is “effectively halved” because “at least
two of [HRI’s] proposed sites” are Indian Country

Application for a Materials License with Respect to NEPA Issues
for Church Rock Section 17, Unit 1, and Crownpoint (June 24,
2005) at 50-51.

'* See Hydro Resources, Inc. (P.O. Box 15910, Rio Rancho,
NM 87174), CLI-04-33, 60 NRC 581, 592 (2004).

" See Louisiana Energy Services, L.P. (National Enrichment
Facility), CLI-04-25, 60 NRC 223, 225 (2004) (“lijn Commission
practice, and in litigation practice generally, new arguments
may not be raised for the first time in a reply brief”). In replying
to the NRC Staff and HRI, Intervenors introduced a claim that
the FEIS cost-benefit analysis requires revision because the
Navajo Nation would not receive tax or other benefits from the
HRI project. See “Reply to HRI's and the NRC Staff’s Responses
in Opposition to Intervenors’ Written Presentation with Respect
to NEPA Issues for Church Rock Section 17, Unit 1, and
Crownpoint” (Aug. 19, 2005) at 21. Intervenors’ arguments on a
need for new analyses of alternatives and liquid waste disposal
impacts appear to be entirely new claims raised on appeal! before
the Commission.

*° See Petition at 3.

App. 75

and cannot be mined under the DNRPA. Thus, they
claim that the cost-benefit analysis must be redone.
But Intervenors have had the opportunity to litigate
the adequacy of the FEIS’s analysis of potential
environmental impacts at all four proposed sites:
Church Rock Section 8, Church Rock Section 17, Unit
1, and Crownpoint. In the event that HRI proceeds
with a much smaller project with two fewer sites, the
estimated environmental impacts from mining at the
two eliminated sites would not occur. Potential pro-
ject benefits (e.g., amount of domestically produced
uranium to offset imports, new local jobs, and new
additional county and state tax revenues) also would
be reduced correspondingly.”” It is not apparent,
however, why the overall conclusions of the cost-
benefit analysis would significantly change, and the
Intervenors do not suggest how they would.” Of

*" See, e.g., FEIS at 5-1 to 5-7 (cost-benefit analysis), 4-97 to
4-105 (socioeconomic impacts).

* See, e.g., LBP-06-19, 64 NRC at 92 (summarizing general
cost-benefit conclusions). Nor do we find persuasive Intervenors’
new claims that the DNRPA requires additional FEIS analysis
of project “alternatives” and of liquid waste disposal options. The
FEIS provides an extensive analysis of alternatives and their
potential impacts, examining a variety of alternative sites for
mining (including the options of only mining at one or two of the
proposed sites), alternative sites for yellowcake drying and
packaging, and various liquid waste disposal options. See, e.g.,
FEIS at 2-31, 4-13, 4-58, 4-60, 4-65, 4-80 to 4-81, 4-83, 4-86 to 4-
88, 4-94, 4-110 to 4-111. In light of these comprehensive anal-
yses, the Intervenors fail to identify what other “range of
alternatives” must be considered. An agency need not “under-
take a ‘separate analysis of alternatives which are not signifi-

(Continued on following page)

App. 76

course, if in the end HRI cannot proceed or chooses
not to proceed with the proposed project because of
the DNRPA, there would be no project impacts or
benefits at all. Such a result would be equivalent to
the “no action” alternative discussed in the FEIS.

il. CUMULATIVE IMPACTS TO AIR QUALITY
AND TO GROUNDWATER RESOURCES

Cumulative impacts are “the impact on the
environment which results from the incremental
impact of the [proposed] action, when added to other
past, present, and reasonably foreseeable future
actions.” Thus, a cumulative impacts analysis will
consider whether the incremental impacts from an
action will combine with preexisting environmental
impacts in a “fashion that will enhance the signifi-
cance of their individual effects.” Intervenors argue
that the Presiding Officer erred when he found
adequate the FEIS’s cumulative impacts analyses for
radiological air impacts and groundwater impacts.

The Presiding Officer’s cumulative impacts
findings rest. heavily upon his analysis of technical

cantly distinguishable from alternatives [already] considered, or
which have substantially similar consequences.’” Westlands
Water District v. United States Department of the Interior, 376
F.3d 853, 871-72 (9th Cir. 2004), quoting Headwaters, Inc. v.
Bureau of Land Management, 914 F.2d 1174 (9th Cir. 1990).

“ 40 C.F.R. § 1508.7 (emphasis added).

* Hydro Resources, Inc. (P.O. Box 15910, Rio Rancho, NM
87174), CLI-01-4, 53 NRC 31, 57 (2001).

App. 77

and fact-intensive arguments presented by the par-
ties. On such fact-specific technical issues, where a
Presiding Officer has reviewed an “extensive record
in detail, with the assistance of a technical advisor,”
the Commission is disinclined to upset the Presiding
Officer’s findings and conclusions, particularly where
the submissions of experts have been weighed.”
While the Commission on occasion may choose to
make its own de novo findings of fact, we generally do
not exercise that authority where a Presiding Officer
or Licensing Board has issued “‘a plausible decision
that rests on carefully rendered findings of fact.’””
Intervenors’ petition does not identify any clear error
or other reason warranting review of the Presiding
Officer’s findings on cumulative air impacts or cumu-
lative groundwater impacts, and we therefore decline
to review them. Below we provide additional brief
comment on the Intervenors’ claims.

A. Cumulative Air lmpacts

Intervenors argue that the FEIS evaluates only
the expected “incremental” airborne radiological
emissions expected from the HRI project, but not the

* Hydro Resources, Inc. (P.O. Box 777, Crownpoint, New
Mexico 87313), CLI-06-1, 63 NRC 1, 2 (2006), quoting Hydro
Resources, Inc. (P.O. Box 15910, Rio Rancho, NM 87174), CLI-
00-12, 52 NRC 1, 3 (20006).

* HRI CLI-06-1, 63 NRC at 2, quoting Private Fuel Storage,
L.L.C. (Independent Spent Fuel Storage Installation), CLI-03-8,
58 NRC 11, 25-26 (2003).

App. 78

“combined impacts of airborne radiological emissions
from HRI’s operation and residues of past mining.””
The Presiding Officer rejected this argument, explain-
ing that the incremental increase in radiological air
impacts due to the HRI project is so “de minimis” or
“negligible” that it would not significantly enhance
already existing environmental effects from back-
ground airborne radiation.” Intervenors provide us
with no reason to question that conclusion. As we
stated in Phase I of this proceeding regarding ex-
pected environmental impacts at Church Rock Sec-
tion 8, “Intervenors understandably ... focus upon
the adverse effects of former mining, but they have
not explained why [an] additional, and expected to be
negligible, radiation impact ... would have any
public health and safety significance.”

Intervenors also argue that the FEIS inappropri-
ately averaged background radiation levels for
Church Rock and Crownpoint, when Church Rock has
significantly higher radiation levels. But the Presid-
ing Officer acknowledged “the existence of discrete
sources of higher background radiation in Church
Rock.”” Indeed, he noted that background doses as
high as 1000 mrem/year are not unusual in the

Petition at 5 (emphasis added).

* See LBP-06-19, 64 NRC at 71-72, 74, 80.

* CLI-01-4, 53 NRC at 69.

* LBP-06-19, 64 NRC at 70; see also id. at 70-71.

nm

ao

App. 79

United States.*’ He concluded, however, that the
actual “typical background radiation level for the
general public at Church Rock is closer to the 225
mrem/year estimated in the FEIS, rather than the
1000 mrem/year alleged by the Intervenors.””
Intervenors’ petition does not suggest otherwise.

B. Cumulative Groundwater Impacts

Intervenors argue that the FEIS fails to take a
hard look at the potential for groundwater contami-
nants to migrate from HRI’s proposed mine. Their
particular concern is the presence of underground
mine workings (from a previous underground mining
operation) located in the southern end of the Church
Rock site, and the potential for these mine workings
to form preferential pathways for lixiviant (mining
solutions) to move away from the well field. Such
pathways could Jead to “excursions,” which are “un-
anticipated releases of mining solutions that move
beyond the well field area.””

Specifically, Intervenors argue that the Presiding
Officer erred by “accepting the FEIS’s unexplained

* See id. at 70; see also LBP-06-1, 63 NRC at 61 n.16
(Phase II Radiolegical Air Emissions Challenges), aff’d, CLI1-06-
14, 63 NRC 510 (2006).

* LBP-06-19, 64 NRC at 71 (emphasis added).
* FEIS at 4-15 (internal quotation omitted).

App. 80

and unjustified failure to model the acknowledged
potential for excursions in the old mine workings.”
They claim that by finding the FEIS discussion of the
mine workings adequate, the Presiding Officer “vio-
lated” 10 C.F.R. § 51.71, an NRC regulation which
calls for environmental impacts to be quantified to
the “fullest extent practicable.”” They further claim
that the Presiding Officer “lacked any rational basis”
for assuming that HRI is capable of correcting an
excursion if one were detected.”

The FEIS discusses the potential for horizontal
and vertical excursions during HRI’s proposed mining
operations extensively, particularly focusing on the
underground mine workings in Church Rock.” Con-
trary to Intervenors’ claims, we see no indication that
the Presiding Officer relied upon “unexplained and
unjustified” discussion in the FEIS, or that he lacked
any reasonable basis for concluding that the FEIS
provides adequate consideration of the old mine
workings and the potential risks they pose to
groundwater impacts.”

“ Petition at 7.

* Id. (quoting 10 C.F.R. §51.71).
36 Id

" See FEIS at 4-54 to 4-56.

*’ See LBP-06-19, 64 NRC at 76-78. We find unpersuasive
Intervenors’ claim that the Presiding Officer lacked “any ration-
al basis” to assume that an excursion can be corrected. In
addressing potential vertical excursions, the FEIS states that it
“should be possible” to mine in the Westwater Canyon aquifer

(Continued on following page)

App. 81

Referencing the FEIS, the Presiding Officer notes
that there are established methods in in situ leach
mining for detecting and correcting horizontal and
vertical excursions, that HRI has a sensitive excur-
sion monitoring program, and that HRI would employ
premining testing and particular drilling methods to
minimize the risk of excursions.” In the event of an
excursion, HRI must follow procedures mandated by
license condition, including notifying the NRC by
telephone within 24 hours.’ If HRI cannot correct an
excursion within 60 days, it must either terminate
injection of lixiviant within the well field until aquifer
cleanup is complete, or increase its surety amount to
cover the full third-party cost of correcting and clean-
ing up the excursion.”

In short, the record amply supports the Presiding
Officer’s finding that the FEIS “adequately considers

without creating a vertical excursion, but notes that HRI has not
actually “specifically demonstrated” how it would accomplish
this. See FEIS at 4-56. Therefore, the FEIS does not exclude the
possibility that there could be a vertical excursion. That HRI has
not provided a specific “demonstration” of how it would mine in
the Westwater Canyon without creating an excursion, however,
does not by itself suggest that HRI would be incapable of
correcting an excursion if one were detected.

” See LBP-06-19, 64 NRC at 77; see also FEIS at 4-16 to 4-
17.

“ See License Condition 12.1; see also FEIS at 4-21 to 4-22.
“ See License Condition 10.13; see also FEIS at 4-21 to 4-
22.

App. 82

the cumulative impact of HRI’s proposed ISL mining
operation on groundwater contamination vis a vis the
old mine workings.” Intervenors have not shown the
Presiding Officer’s fact-based findings to be unrea

sonable.”

fil, MITIGATION MEASURES FOR THE
CROWNPOINT MUNICIPAL WATER WELLS

The FEIS identifies potentially significant
groundwater impacts associated with HRI’s proposed
mining at the Crownpoint site.“ Under a conservative
analysis, the NRC Staff found a potential risk that
the local water supply at Crownpoint could be con-
taminated by excessive amounts of uranium. There-
fore, the Staff has imposed a license condition

requiring HRI to move the town of Crownpoint’s

“ LBP-06-19, 64 NRC at 78

Intervenors’ arguments on the underyround mine work-
ings are not entirely clear. In one part of their argument they
apparently challenge the Presiding Officer’s discussion of
potential horizontal excursions, see Petition at 7 (quoting the
Presiding Officer’s discussion of horizontal excursions at LBP-
06-19, slip op. at 23 [64 NRC at 77]), but then in another part of
the argument go on to quote parts of the Presiding Officer's
decision and FEIS that specifically address vertical excursions
See id. (quoting LBP-06-19, slip op. at 24 [64 NRC at 78] and
FEIS at 4-56). Regardless, their petition does not present any
clear error or other reason for revisiting the Presiding Officer's
fact-based evaluation of groundwater impacts

“ See FEIS at 4-48 to 4-49, 4-113, 4-122 to 4-123, 5-7

App. 83

existing water supply wells and water delivery sys-
tem prior to injecting any lixiviant at Crownpoint.”

Specifically, HRI’s license requires it to replace
the town of Crownpoint’s water supply wells, con-
struct the necessary water pipeline, and provide
funds so that the existing water supply systems of the
Navajo Tribal Utility Authority (“NTUA”) and the
Bureau of Indian Affairs (“BLA”) can be connected to
the new wells. The license further requires that
“Lajny new wells, pumps, pipelines, and other changes
to the existing water supply systems ... shall be
made such that the systems can continue to provide
at least the same quantity of water as the existing
systems.”*” Moreover, water quality at each individual
well head must “not exceed the EPA’s primary and
secondary drinking water standards.™’ To determine
“the appropriate placement of the new wells,” HRI
must “coordinate with the appropriate agencies and

regulatory authorities,” including the BIA, the

“ See License Condition 10.27; see also FEIS at 4-62, A-1 to
A-2.
** License Condition 10.27(A).

“ Id. Placement of new water wells and implementing
details relating to the requirement that the new water supply
systems provide “at least the same quantity of water as the
existing systems” would implicate the jurisdiction of other
agencies and regulatory authorities as indicated in License
Condition 10.27. For example, local authorities may confront
issues, such as planned water usage or population growth
issues, relating to the sustainable yield of a different aquifer if
one were chosen for a new water supply.

App. 84

NTUA, the Navajo Nation Department of Water
Development and Water Resources, and the Navajo
Nation Environmental Protection Agency.”

The Presiding Officer found that the FEIS ade-
quately addresses mitigation measures for replacing
the Crownpoint water supply wells.“ Intervenors
challenge this ruling, arguing that the mitigation
measures are “insufficiently discuss[ed]” and must be
supported by “scientific studies and _ substantial
evidence.”” In particular, they claim that while the
replacement wells must provide the same quantity of
water as existing wells and must meet specific drink-
ing water standards, “this mitigation measure is not
supported by any data as to whether there are other
locations in or near Crownpoint that might meet
these criteria, which regulatory agency, if any, will be
responsible for well relocation or oversight of well
relocation, whether existing water infrastructure or
new infrastructure will be needed and whether
building such infrastructure is even feasible.””

Intervenors, however, demand a level of detail
not required by NEPA. The purpose of addressing
possible mitigation measures in an FEIS is to
ensure that the agency has taken a “hard look” at
the potential environmental impacts of a proposed

“ Id.; see also FEIS at 4-113.

“ LBP-06-19, 64 NRC at 93-95.
” Petition at 8.

*- Id.

App. 85

action.” An EIS therefore must address mitigation
measures “in sufficient detail to ensure that envi-
ronmental consequences have been fairly evaluat-
ed.” An EIS need not, however, contain “a complete
mitigation plan,” or “a detailed explanation of specific
measures which will be employed.”” Indeed, a mitiga-
tion plan “‘need not be legally enforceable, funded or
even in final form to comply with NEPA’s procedural
requirements.’”” As long as the potential adverse
impacts from a proposed action have been adequately
disclosed, it is not improper for an EIS to describe
“mitigating measures in general terms and relly] on
general processes. .. .””’

957

*° Westlands Water Dist., 376 F.3d at 872, citing Robertson uv.
Methow Valley Citizens Council, 490 U.S. 332, 352 (1989).

* Robertson, 490 U.S. at 352.
ae
* Td. at 353.

* Okanogan Highlands Alliance v. Williams, 236 F.3d 468,
473 (9th Cir. 2000), quoting National Parks & Conservation
Ass’n v. United States Department of Transportation, 222 F.3d
677, 681 n.4 (9th Cir. 2000). We find unpersuasive Intervenors’
argument that mitigation measures set forth in an E1S must be
“supported by scientific studies.” See Petition at 8. The case cited
by Intervenors for that proposition did not involve an EIS, but
instead mitigation measures relied upon to avoid the need to
prepare an EJS. See Wyoming Outdoor Council v. Corps of
Engineers, 351 F. Supp. 2d 1232, 1250 (D. Wy. 2005).

* Northern Alaska Environmental Center v. Kempthorne,
457 F.3d 969, 979 (9th Cir. 2006). Moreover, HRI will need to
coordinate the placement of the new water wells with various
specified authorities. Consequently, numerous details that will
bear on potential well placement are simply not yet known, and

(Continued on following page)

App. 86

At bottom, Intervenors fear that HRI may be
unable to meet the “criteria” specified in the license
condition. But if HRI cannot meet the specified water
quantity and quality and related requirements for the
replacement water supply wells, it will not be able to
begin mining at Crownpoint. In short, the mitigation
measures set forth specific goals that are a condition
that HRI must meet prior to injecting lixiviant at
Crownpoint.

IV. LAND USE IMPACTS AND MITIGATION
MEASURES

Intervenors argue that the Presiding Officer
erred when he found adequate the FEIS discussion of
potential land use impacts. They claim that the
Presiding Officer ignored evidence they presented on
the impacts that HRI’s mining project would have on
the Navajo people who live and work in Church Rock
Section 17, and that by “failing to examine the envi-
ronmental impacts of HRI’s operation on the specific
locale of Section 17, the Presiding Officer violated
40 C.F.R. § 1508.27.” They also argue that the

may not be known until HRI has been able to survey potential
locations for replacement wells.

* Again, the Intervenors cite to a regulation without
identifying their precise argument. Section 1508.27 sets forth
the Council on Environmental Quality’s definition of the word
“significantly” as used in the NEPA process to describe the
significance of environmental impacts. It provides that the
significance of an action must be analyzed in several contexts,
including the “locality.” See 40 C.F.R. § 1508.27.

App. 87

Presiding Officer ignored their evidence showing that
the mitigation measures for land use impacts are
inadequate.

We find no indication that the Presiding Officer
failed to address or “ignored” evidence that the
Intervenors presented. Instead, he rejected their
claims, agreeing instead with HRI and the NRC Staff
in concluding that the FEIS adequately discusses the
land use impacts. To be sure, HRI’s proposed mining
project necessarily would cause adverse land use
impacts at all of the proposed mining sites.” These
include temporarily disrupting livestock grazing,
which “‘would adversely affect Navajo who have
grazing permits for the land and rely on livestock as
an important economic resource.’”” The mining
activities also would force the relocation of particular
individuals or families that are Navajo “allottees”
(owners of surface and mineral rights) or their ten-
ants. But as the FEIS notes, the allottees were “vol-
untary signatories” to leases negotiated by HRI. They
were informed as a condition of the leases that there
would be a need for relocation and access restrictions
during HRI’s mining. Among those forced to relocate,
however, there may be individuals who were not

** See FEIS at 92-96.

* LBP-06-19, 64 NRC at 82 (quoting FEIS at 4-94). The
FEIS notes that under the Federal General Mining Law of 1872,
“mineral rights owners [HRI has secured mineral leases] can

disrupt surface grazing permits in order to remove minerals.”
See FEIS at 4-94.

App. 88

actual signatories to a lease, but are living on allotted
lands (e.g., as tenants).

To help mitigate land use impacts, HRI is to
compensate those individuals who hold livestock
grazing permits that would be interrupted:

HRI should compensate these permittees
directly (for private lands) or indirectly
through the relevant tribal [authority] (for
tribal lands) or Federal agency (BIA for
allottee lands). Staff recommend that the
Navajo Nation negotiate compensation ar-
rangements for lands where grazing permits
are held in tribal trust, and that BIA negoti-
ate compensation arrangements for lands
where allottees have grazing permits.”

In addition, HRI is to provide direct compensa-
tion to any residents of allotted lands who were not
signatories to leases, but are forced to relocate during
project construction and operation.”

These are measures “to help mitigate”™ impacts
that understandably would bring hardship to the
individuals affected. The FEIS does not purport to
claim that the mitigation measures would relieve all
difficulty. Intervenors claim that the Presiding Officer
“violated NEPA by accepting the adequacy of mone-
tary compensation and relocation as_ mitigation

* FEIS at 4-95.
* Id.
~ ff

App. 89

measures.” Intervenors believe that “monetary
compensation does not suffice,” and that it is unac-
ceptable for any potentially affected individuals to
have to relocate.”’ Whether there is any mitigation
measure that they would find adequate is not appar-
ent because they do not suggest one. But NEPA does
not guarantee that federally approved projects will
have no adverse impacts at all. Nor does it require an
agency to select the most environmentally benign
alternative. While the HRI FEIS might have said
more about those who may be affected by HRI’s
project, the Presiding Officer found that it sufficiently
discusses potential impacts and mitigation measures.
Intervenors provide us with no reason to revisit that
conclusion.”

V. CONCLUSION

For the reasons given in this decision, we deny
the Intervenors’ petition for review of LBP-06-19.

* Petition at 9.
® See id. at 9-10.

* Intervenors also claim the FEIS is inadequate because it
does not specifically address “the logistical matters” involved
with the relocations, including “how tribal’ members unwilling
to be relocated will be treated.” See Petition at 8. But as we
stressed previously, see supra pp. 426-27, mitigation measures
need not include a complete plan with all details. The FEIS
stresses that “it would not be possible to determine how many
individuals or families might have to be relocated until well
drilling began.” See FEIS at 4-94.

App. 90

IT IS SO ORDERED.
For the Commission

ANNETTE L. VIETTI-COOK

Secretary of the Commission

App. 91

CLI-06-14
Cite as 63 N.R.C. 510 (2006)

UNITED STATES OF AMERICA
NUCLEAR REGULATORY COMMISSION

COMMISSIONERS:
Nils J. Diaz, Chairman
Edward McGaffigan, Jr.

Jeffrey S. Merrifield

Gregory B. Jaczko

IN THE MATTER OF No. 40-8968-ML
HYDRO RESOURCES, INC. May 16, 2006
(P.O. Box 777,

Crownpoint, New Mexico 87313)

MEMORANDUM AND ORDER

Intervenors Eastern Navajo Diné Against Urani-
um Mining and Southwest Research and Information
Center (together, “Intervenors”) have petitioned for
review of LBP-06-1, the Presiding Officer’s January 6,
2006, Partial Initial Decision (Phase II Radiological
Air Emission Challenges to In Situ Leach Uranium
Mining License).' The Presiding Officer found that
radiological air emission from Hydro Resources, Inc.’s
(HRI’s) proposed in situ leach mining facility in
Church Rock, New Mexico, would not exceed the NRC
dose limits.’ Intervenors claim that the Presiding
Officer erroneously discounted, as “background

' LBP-06-1, 63 NRC 41 (2006).
* Id. at 52-71.

App. 92

radiation,” existing radiation from mining spoil left at
the site by previous owners.

We granted review so that we could resolve the
“background radiation” issue definitively.’ Today we
decide, as the Presiding Officer held, that radioactive
residue from previous mining activity amounts to
“background radiation” and does not count toward the
0.1-rem dose limit applicable to new in situ facility
licenses."

I BACKGROUND
A. Regulation of Uranium Mining

The NRC does not regulate conventional urani-
um mining. The Atomic Energy Act requires an NRC
license to transfer or receive in interstate commerce
any source material (such as uranium ore) only “after
removal from its place of deposit in nature.” This
agency has traditionally viewed this provision as
precluding jurisdiction over uranium mining as such.*

* CLI-06-7, 63 NRC 165 (2006).

* Under 10 C.FR. § 20.1301(a)(1), each licensee must con-
duct operations so that a member of the public does not receive a
dose exceeding 0.1 rem in a year “exclusive of the dose contribu-
tions from background radiation.”

° Atomic Energy Act of 1954, as amended (AEA), § 62, 42
U.S.C. § 2092.

* See, e.g., Rochester Gas and Electric Corp. (Sterling Power
Project Nuclear Unit No. 1), ALAB-507, 8 NRC 551, 554 n.7
(1978) (“(TJhe Commission’s authority over uranium ore and
other ‘source material’ attaches only ‘after removal from its place

(Continued on following page)

App. 93

In keeping with this interpretation, the NRC begins
its oversight at the mill, rather than at the mine.
Part 40 of our regulations governs processing of
uranium ore.’ NRC regulates in situ leach mining, in
contrast to conventional mining, because in situ
extraction involves altering the chemical form of the
uranium and thus constitutes the first step of pro-
cessing.

Conventional mining is controlled by other
regulatory authorities. The State of New Mexico, for
example, regulates conventional uranium mining
within the state.” New Mexico’s laws address “the
process of obtaining useful minerals from the earth,”
with the exception of “the extraction, processing, or
disposal of commodities, byproduct materials or
wastes or other activities regulated by the [NRC].””

of deposit in nature,’ and not when the ore is mined,” citing 42
U.S.C. § 2092 (emphasis removed)).

"In 10 C.FER. § 40.4, our regulations define “unrefined and
unprocessed ore” as “ore in its natural form prior to any pro-
cessing such as grinding, roasting or beneficiating, or refining”
(emphasis added).

* See New Mexico Mining Act, N.M. Stat. § 69-36-1 ef seq.
(1978).

* See N.M. Stat. § 69-36-3.H. In New Mexico Mining
Commission v. United Nuclear Corp., 57 P.3d 862 (N.M. Ct. App.
2002), the New Mexico Court of Appeals rejected the argument
by a mining company that this statute gave New Mexico no
jurisdiction over its uranium mining because of the clause
exempting NRC-regulated activities. The Court noted that the
NRC has never asserted jurisdiction over conventional uranium

mining. /d. at 864.

App. 94

Pursuant to this authority, New Mexico has enforced
cleanup orders against United Nuclear Corporation
(UNC) — HRI’s predecessor-in-interest at} Church
Rock — with respect to its uranium mining activities
within the state.”

The United States Environmental Protection
Agency (EPA) exercises authority, under various
statutes, to protect the public from hazards associat-
ed with so-called “technologically enhanced naturally
occurring radioactive material” (TENORM), including
TENORM produced in uranium mining."

B. History of this Proceeding”

In 1994, HRI applied for a license to conduct in
situ leach uranium mining at four sites in McKinley
County, New Mexico. In January 1998, after complet-
ing its technical review of the application, the NRC
Staff granted HRI a materials license under 10 C.F-R.
Part 40 to mine all four sites. In May 1998, the then-
Presiding Officer granted the Intervenors’ requests
for a hearing to challenge the license.

° See id.

'' See EPA’s Web site at http/www.epa.gov/radiation/tenorm/
index.html; see also http://www.epa.gov/radiation/tenorm/uranium-
waste.htm.

’ The Presiding Officer described the long history of this
proceeding, as well as the leach-mining process, in his January
6, 2006, Order. As such, we do not provide a lenythy recapitula
tion in today’s decision.

App. 95

The adjudication was split into two phases, with
the first phase covering the sites where HRI intended
to start operations. The order now under review
comes from the second phase of the adjudication and
deals with a site known as Church Rock Section 17.
Although HRI has held its license for 8 years, it has
not yet started mining at any of the four sites, “due,
in part, to profitability concerns relating to the fluc-
tuating price of uranium.””

The Church Rock Section 17 site is contaminated
with mining spoil left over from underground urani-
um mining by its previous owner, UNC. UNC con-
ducted underground mining on Section 17 for about
30 years before selling the land to HRI. The contami-
nation is in the form of dust and rocks apparently lost
from trucks hauling the ore from the site, or possibly
from excavated rock used to build the road." No ore
was ever processed on the Section 17 site.”

Intervenors presented evidence suggesting that
spoil left over from conventional mining on Section 17
has raised the level of gamma radiation at the
site significantly." They further provided expert

" LBP-06-1, 63 NRC at 46.

See id. at 52 n.7.

”

See Intervenors Eastern Navajo Diné Against Uranium
Mining’s, Southwest Research and Information Center’s Written
Presentation in Opposition to Hydro Resources, Inc.'s Applica-

tion for a Materials License with Respect to: Radiological Air
(Continued on following page)

App. 96

testimony showing that radioactive air emissions,
particularly near the roads, were elevated as com-
pared to nearby unmined areas having “physical,
chemical, radiological and biological characteristics”
similar to Section 17.'' Intervenors claim that, due to
this contamination, the Section 17 site emits radia-
tion “above the NRC’s minimum safety levels,”” and
this is reason enough for the NRC to deny a license
for any further mining activity there. Intervenors
argue that HRI should be forced to clean up the
existing contamination before it is allowed to proceed
with additional uranium recovery processes.”

HRI argues that the dose levels of radiation at
Section 17 are high due to “natural mineralization” in
the area,” but. acknowledges that the mine spoil has
elevated the radiation levels at least to some extent.”

Emissions for Church Rock Section 17 (June 13, 2005), Declara-
tion of Melinda Ronca-Battista, at 8 9, 12.13

~ a.

" See Intervenors’ Petition for Review of LBP-06-1 (lan. 26,
2006) at 4.

’ See Intervenors’ Keply Brief Regarding Chureh Rock
Section 17 Air Emissions (Mar. 20, 2006) at 5

” See (HRI's| Response in Opposition to Intervenors’
Written Presentation to the Presiding Officer Reyurdiny Air
Emissions (July 29, 2005) at 22-23.

“ See HRI'’s Response at 28 (“It is likely that backyround
gamma radiation will be elevated due to the presence of the
naturally occurring radioactive materials (i.e, mine waste)
noted above”).

App. 97

The issue we consider today deals exclusively
with how to classify the radiation attributable to the
existing mine spoil. Radioactive air emissions from
HRI’s proposed in situ leach mining operations are
not at issue. The Presiding Officer found that HRI’s
controls would ensure its operations would not emit
airborne radiation in excess of the 0.l-rem “total
effective dose equivalent” (TEDE) limit set out in
Part 20 of our regulations.” In making this finding,
the Presiding Officer analyzed the text and history of
key provisions of Part 20 and concluded that preexist-
ing radioactive residue from prior mining should be
considered “background radiation” and therefore not
counted in the TEDE calculation.”

Conversely, however, in the first phase of this
adjudication, a different Presiding Officer held that
radioactive emissions from material left on the mine
site, as well as emissions from an underground mine,
should be considered part of the TEDE from HRI’s
operations. In the ruling now at issue, the Presiding
Officer considered and rejected the previous Presiding

“ LBP-06-1, 63 NRC at 69-71. Although Intervenors origi-
nally claimed that emissions from the old UNC mine should
count toward TEDE, the issue is moot because the Presiding
Officer found that there are no such emissions due to the sealing
of the mine. See LBP-06-1, 63 NRC at 53-55. The Intervenors do
not challenge that finding on appeal.

3 Id. at 28-33.
“ Hydro Resources, Inc. (2929 Coors Road, Suite 101, Albu-

querque, NM 87120), LBP-99-15, 49 NRC 261, 266-67, interlocu-
tory petition for review denied, CLI-99-8, 49 NRC 311 (1999).

App. 98

Officer’s reasoning on this issue.” This disagreement
between the two Presiding Officers’ rulings was one
reason we took review of this matter.”

li. DISCUSSION

We agree with and affirm the phase II Presiding
Officer’s comprehensive decision.” His ruling is
consistent with the NRC’s regulations and with its
longstanding interpretation of its role in the uranium
fuel cycle. Were the NRC to expand the definition of
TEDE to include radioactive air emissions from
debris left over from unlicensed conventional mining
activities, the agency, in effect, would be entering an
area of regulation that it has historically considered
beyond the scope of the Atomic Energy Act. This we
decline to do.

A. TEDE

The key question that the Presiding Officer had
to answer was whether the TEDE from HRI’s opera-
tion would exceed our regulatory dose limits. The

* See LBP-06-1, 63 NRC at 59.
*° See CLI-06-7, 63 NRC at 166.

* Hence, for the reasons given by the phase II Presiding
Officer, we disagree with the phase I Presiding Officer that
emissions from preexisting radioactive materials deposited
onsite as part of an operation not licensed by the NRC should be
considered part of the TEDE from the licensed operation. See
LBP-06-1, 63 NRC at 55-59.

App. 99

pertinent regulation ties the TEDE calculation to
radiation from “licensed operations”; it expressly
excludes preexisting “background radiation”:

Each licensee shall conduct operations so
that —

... The [TEDE] to individual members of the
public from the licensed operation does not
exceed 0.1 rem ...in a year, exclusive of the
dose contributions from background radia-
tion, from any medical administration the
individual has received, from exposure to in-
dividuals administered radioactive material
and released under § 35.75, from voluntary
participation in medical research programs,
and from the licensee’s disposal of radioac-
tive material into sanitary sewerage in ac-
cordance with § 20.2003... .*

Thus, the plain language of the regulation on TEDE
emissions excludes emissions not directly linked to
licensed activity. Both grammar and logic dictate that
the emissions from already existing mining spoil do
not constitute emissions from the licensed operation.
In HRI’s case, then, only emissions actually stemming
from the proposed in situ leach mining count in
calculating the TEDE.

Intervenors gain no ground with their argument
that the calculated TEDE from a “licensed operation”
must include all radioactive emissions, not just those

* 10 C.F-R. § 20.1301(a)(1) (emphasis added).

App. 100

from “licensed materials.” The Presiding Officer’s
ruling does not say that the material emitting radia-
tion must be “licensed” to count toward TEDE, only
that it must come from the licensed operation. HRI’s
bare ownership of land containing radioactive mine
spoil is not part of its NRC-licensed “operation.” HRI
did not bring the material to the surface. It is not
required to have an NRC license to possess source
material in the form of unprocessed ore (so long as it
does not process that ore). Nothing in the record
suggests that HRI plans to “process” the dust and
rock that cover the surface of Section 17.

The Presiding Officer noted that simply inter-
preting the phrase “from the licensed operation” as
limiting the scope of TEDE arguably renders unnec-
essary other provisions in the TEDE rule expressly
excluding doses resulting from medical administra-
tions and disposal of radioactive material in sanitary
sewerage. Because of this concern, the Presiding
Officer took his analysis a step farther, and inquired
whether mine spoil emissions fit into the category of
“background radiation” — which our rules explicitly
exclude from the

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_2484%3A1. Public record. Not legal advice.
