For  example, many states with uranium deposits require that an operator  provide a financial assurance for the full cost of reclamation for a mining  site. Agencies Differ in Their Oversight of Uranium Operations on Federal Land

BLM, the Forest Service, and DOE all oversee uranium exploration and  extraction operations on the federal land they manage, but we identified  three areas where their processes differ: (1) notification of exploration or  extraction operations, (2) oversight of financial assurances, and (3)  royalties and rents earned. DOE has collected approximately $64 million in royalties since the  beginning of the lease program in the 1940s. Over 200 Uranium Operations Are on Federal Land, but Few Are Actively Extracting Uranium

As of January 2012, a total of 221 uranium operations were on federally  managed land, but only 7 of these operations were actively extracting  uranium and these were all on BLM land. An additional 29 uranium  operations were awaiting federal approval. Most of the operations—202— were on BLM land; another 3 were on Forest Service land, and the  remaining 16 were on DOE lease tracts. Agency Data Indicate That Financial Assurances Adequately Cover Nearly All Operations, but BLM and NRC Do Not Coordinate in Establishing Some Assurances

As of January 2012, BLM, the Forest Service, and DOE reported $249.1  million in financial assurances, and these assurances appear to be  generally adequate to cover the estimated reclamation costs for uranium  operations on federal land, according to our analysis of agency data. The remaining $1.5  million in financial assurances is for authorized operations on land  managed by the Forest Service and for DOE lease tracts. BLM and NRC Do Not Coordinate when Establishing and Reviewing Assurances for ISR Operations

We found that two ISR operations—the Smith Ranch and Highland  operations in Wyoming—account for $213 million in financial assurances,  or 86 percent of the total financial assurances held for uranium operations  on land managed by BLM. Federal Agencies Do Not Have Reliable Data on the Number and Location of Abandoned Uranium Mines or Their Associated Cleanup Costs

Federal agencies do not have reliable data on the number and location of  abandoned uranium mine sites on federal lands and the potential cleanup  costs associated with these sites, according to our review of agencies’  databases and discussions with agency staff. According to agency officials, the cost to  clean up these sites varies according to site-specific conditions, including  the amount and type of work required at each site, and the total number  of sites needing cleanup. Federal Data on Abandoned Uranium Mines Are Unreliable

There are likely thousands of abandoned uranium mine sites on federal  land where either exploration or extraction may have taken place, but the  available federal data on these sites are generally unreliable. Agencies do not have a consistent definition of an abandoned mine site. Cleanup Costs for Abandoned Uranium Mines Vary Greatly, Depending on Site-Specific Conditions

In addition to not knowing how many abandoned uranium mines are on  federal land, BLM, the Forest Service, EPA, and the National Park  Service do not have information on the total cost of cleaning up  abandoned uranium mines. However, we found some  limitations in agencies’ oversight of uranium operations’ financial  assurances, which raise some concerns about these financial  assurances. To enhance data collection efforts on abandoned mines, we recommend  that the Secretaries of the Interior and of Agriculture and the  Administrator of the Environmental Protection Agency work to develop a  consistent definition of abandoned mine sites for use in data-gathering  efforts. All of these agencies concurred with our  recommendations. EPA and the Department of the  Interior also provided us with technical comments, which we have  incorporated as appropriate. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) compare Bureau of Land Management (BLM),  Forest Service, and Department of Energy (DOE) oversight of uranium  exploration and extraction operations on federal land; (2) determine the  number and status of uranium operations on federal land; (3) examine the  coverage and amounts of financial assurances in place for reclaiming  current uranium operations on federal land; and (4) examine what is  known about the number and location of abandoned uranium mines on  federal land and their potential cleanup costs.
Why GAO Did This Study

From 2005 through 2007, uranium prices increased from about $20 a pound to over $140 a pound, leading to renewed interest in uranium mining on federal land. This interest has raised concerns about the potential impacts that more uranium operations could have on the environment. GAO was asked to (1) compare key agencies oversight of uranium exploration and extraction operations on federal land, (2) determine the number and status of uranium operations on federal land, (3) identify the coverage and amounts of financial assurances for reclaiming current uranium operations on federal land, and (4) examine what is known about the number and location of abandoned uranium mine sites on federal land and their potential cleanup costs. GAO reviewed agency reports and regulations, surveyed relevant agency field staff on the status of these operations, and examined federal data on uranium operations, financial assurances, and abandoned uranium mine sites.

What GAO Found

The Bureau of Land Management (BLM), the Forest Service, and the Department of Energy (DOE) are the key agencies that oversee uranium exploration and extraction on federal land, but GAO identified three areas where their oversight processes differ. First, these agencies have different processes for notification of uranium exploration or extraction activities on federal land. Second, the agencies require operators to have in place financial assurances to cover the full estimated cost of reclaiming a uranium operation, but they differ in who estimates the value of the financial assurance and the frequency of their reviews of the assurances. Third, under existing authorities, DOE can collect royalties or rents for uranium extraction, but BLM and the Forest Service cannot. DOE has collected about $64 million in rents and royalties from its leasing program since the 1940s.
As of January 2012, a total of 221 uranium operations were on federally managed land, but only 7 were actively extracting uranium and all of these were on BLM land. An additional 29 uranium operations were awaiting federal approval. Of the 202 operations on BLM land, the majority were engaged in either reclamation or exploration activities, according to BLM field officials. In addition, 3 uranium operations were on Forest Service land, and 16 operations were on lease tracts that DOE manages, none of which were actively extracting uranium.
As of January 2012, BLM, the Forest Service, and DOE reported having $249.1 million in financial assurances, and these assurances were generally adequate to cover the estimated reclamation costs for uranium operations on federal land. Nearly all of these assurances ($247.6 million) were for authorized uranium operations on BLM-managed land, with the remaining $1.5 million for authorized operations on Forest Service land and for DOEs lease tracts. BLM and the Nuclear Regulatory Commission (NRC), which is responsible for overseeing some aspects of uranium operations on federal land, do not coordinate efforts to establish and review financial assurances for in situ recovery operations, which use a series of wells to extract uranium. Such operations account for a large percentage of the total financial assurances held by the agencies.
Federal agencies do not have reliable data on the number and location of abandoned uranium mine sites on federal land or a definitive cost for their cleanup. There are likely thousands of abandoned uranium mine sites on federal land, but GAO identified significant limitations in agencies data that make their databases generally unreliable. For example, these databases do not have complete data and do not use a consistent definition of an abandoned mine site. Agencies do not know how many sites will need cleanup, and they do not have information on the total cost to clean up these sites. Based on agencies experiences with cleanup at some sites, cleanup costs could vary significantly from thousands to hundreds of millions of dollars, depending on site-specific conditions and the amount and type of work required at each site.

What GAO Recommends

GAO recommends, among other things, that federal agencies better coordinate their efforts when establishing financial assurances and develop a consistent definition for abandoned mine sites. The Departments of the Interior, Agriculture, and Energy, along with NRC and the Environmental Protection Agency (EPA), concurred with these recommendations. In addition, Interior and EPA provided technical comments, which GAO incorporated as appropriate.