Sheep Mountain, Energy Fuels work toward water - The Daily Planet

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Inch by inch, the company hoping to build the nation's first uranium mill in decades is making progress.

Last week, Energy Fuels announced it had reached a settlement with one of its staunchest adversaries regarding the water — at minimum some 144 gallons a minute, according to some reports — in Sheep Mountain Alliance.

SMA, a Telluride-based environmental non-profit, has opposed the planned mill — to be located in Paradox Valley, about 60 miles west of Telluride — at nearly every turn.

But last week, Sheep Mountain and others agreed to withdraw their objections regarding water use in exchange for the mining company's adherence to certain environmental and water supply provisions.

"This water settlement is a major milestone for Energy Fuels and the Pinon Ridge Mill," said Steve Antony, president and CEO of Energy Fuels, in a press release. "In the Western United States water is scarce and highly significant for all projects. By settling with all of the objectors, we will secure the water needed for the mill and add flows to the Dolores River for enhanced wildlife and habitat protection."

Not so fast, though, says Hilary White, SMA's executive director. "The stipulation between Sheep Mountain Alliance/Living Rivers and Energy Fuels does not provide Energy Fuels with a water right," she wrote in an email on Wednesday. "The agreement requires Energy Fuels to obtain all necessary conditions including water from McPhee Reservoir to mitigate impacts from withdrawing groundwater in the Paradox Valley.  However, it remains to be seen whether or not Energy Fuels is able to purchase Dolores Project Water and satisfy conditions of [Colorado Water Conservation Board] — the remaining objector." 

White said the stipulation also contemplates that any rights Energy Fuels may gain in the case would extinguish should Energy Fuels be unable to obtain the necessary approvals or build the mill in a timely manner. "SMA will continue to pursue means by which to protect the water quality and quantity on the San Miguel and Dolores Rivers," she wrote.

Energy Fuels has a similar water agreement in place with the Bureau of Land Management.

Energy Fuels was granted its radioactive materials license — the main hurdle — last winter from the State of Colorado. SMA and a host of other environmental groups are still challenging the approval in court.

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