Tobacco cash eyed for uranium study: Kilgore asks Tobacco Commission to fund study on socio-economic impact of Coles Hill mine

Comment: Sorry, sort of late but now we know who introduced the socio-economic study and the letter reads like a promotion for uranium mining, sneaky bunch!  Pushers of uranium mining, listen to the No uranium mining song!  No to uranium mining and milling!  Thanks C, great job!

By By ALTA LeCOMPTE
The News & Record / April 07, 2010

The Virginia Coal & Energy Commission wants $200,000 from the Virginia Tobacco Commission to pay for a study analyzing the socioeconomic effects of uranium mining and milling at the proposed Coles Hill mine site in Pittsylvania County.

VCEC’s request for a Southside Economic Development Grant is one of 13 proposals the Tobacco Commission will consider Apr. 29.

Although two studies currently are docketed to address the safety of operating a uranium mine at Coles Hill, neither will look at socio-economic impacts.

Virginia Del. Terry Kilgore, who chairs the Tobacco Commission, also chairs the Virginia Coal and Energy Commission, which is requesting the funding.

In VCEC’s application to the Tobacco Commission, Kilgore noted that VCEC’s Uranium Mining Subcommittee, chaired by Del. R. Lee Ware, is charged with conducting both scientific and socioeconomic studies on the proposed mining operation at the Pittsylvania County site owned by Virginia Uranium, Inc.

Neither delegate was available yesterday to comment.

Clarksville Sen. Frank Ruff, vice-chairman of the commission, commented that he does not now see a “direct conflict of interest” in Kilgore’s dual role, since there apparently is no possibility of financial gain for him.

Ruff said that if there is a conflict of interest, Kilgore would recuse himself from a vote on the application, or the commissioners would ask him to do so.

Ruff said he is concerned, however, that the application may be premature since the scientific studies have not reached their conclusions.

“I’m not sure I’d be prepared to move forward on the socioeconomic study until we have a better understanding of the safety factors,” he said.

Katie Whitehead, Pittsylvania County resident and chair of the Dan River Basin Association Mining Task Force commented: “Del. Kilgore’s letter raises many questions:

n How will the commission ensure the study is independent of inappropriate influence?
n Will this study benefit from the research by the NAS?
n What counties other than Pittsylvania will be studied?
n How will this socioeconomic study be different from the study under consideration by the Danville Regional Foundation?”

The grant application letter stated: “At Chairman Ware’s request, VUI will submit a preliminary mining and milling plan, also known as a ‘scoping study.…’ The VUI submission will provide additional details regarding the project scope, anticipated capital investment, anticipated number and types of jobs and associated payrolls, and likely revenue generation.”

The NAS study is designed to review existing scientific literature, clarify issues, and identify concerns that would be relevant in Virginia. Virginia Uranium, Inc. is funding that $1.4 million study.

Kilgore in the tobacco grant application wrote that he is requesting public funding for the proposed socio-economic impact study because “a significant private sector contribution already has been made to underwrite the NAS study.” The reference is to Virginia Uranium.

In addition, Kilgore wrote, the Coles Hill project has the potential for substantial positive or negative socioeconomic impacts on Southside Virginia.

VUI estimates that developing the Coles Hill site would involve an initial investment of “several hundred million dollars,” according to the grant application letter. The company projects that it would create 300-500 jobs.

“VUI also estimates that, given a mine life of 30 years, the annual gross revenue generated from the project would exceed $220 million,” the application letter stated.

According to the letter, VUI believes the site contains the largest undeveloped uranium deposit in the U.S., estimated at 119 million pounds and valued at more than $7 billion.

Whitehead commented: “Va. Tech geologist Dr. Robert Bodnar, who has done research at Coles Hill has said ‘there’s a very high probability that there are other deposits of the same size, same grade, as Coles Hill located in the eastern United States.’ VUI’s Coles Hill deposit may be the largest known undeveloped uranium deposit, but there may well be other uranium of economic interest in Virginia.

The socioeconomic study is expected to be completed no later than the 18-month NAS study.
which recently got underway.

In addition to the NAS study, the other scientific study currently in progress is sponsored by the City of Virginia Beach. It will use modeling in an effort to determine how a catastrophic weather event would affect radiation in the rivers downstream of the proposed mine site. This study is expected to be completed in early autumn.

Read more:
http://www.thenewsrecord.com/index.php/news/article/tobacco_cash_eyed_for_uranium_study/