Conflict of Interest [re: study funding]

Caswell Messenger
Oct 06, 2009 - 06:25:03 pm CDT

To the editor:

I think it's a bit disingenuous for Dr. Karmis, the Director of the Virginia Center for Coal & Energy Research at Virginia Tech and a professor in its Department of Mining and Minerals Engineering to say Tech's nuclear engineering program has "nothing to do with Coles Hill."

Professors and graduate students of Virginia Tech's Departments of Geosciences and Hydrogeosciences have already been on-site at Coles Hill performing various studies and tests on the unmined uranium ore body. According to Dr. Robert J. Bodnar, a professor with Tech's Geosciences Department: "All of these studies are telling us something about the subsurface - the rocks, when the rock type changes, where the major faults are. All those pieces of information are critical to understanding the ore deposit as it exists today, and that will be very useful information as the company [VUI] starts to develop the deposit in the future." ("Beneath the Surface, Virginia Tech conducts research at Coles Hill" by T. Davis, Star-Tribune, Sept. 10, 2008. Online source: www.virginiauranium.com/pdf/Beneath_the_Surface.pdf )

Clearly Virginia Tech's studies at Coles Hill are contributing to the front end of the nuclear fuel cycle, the mining and milling of uranium.

Dr. Karmis is also well aware of the ongoing "nuclear renaissance" where the back end of the nuclear fuel cycle, nuclear power production, is being promoted by nuclear power companies like Areva to have more nuclear power plants built. This, according to nuclear power proponents, is to offset the country's growing energy needs and dependence on fossil fuels. Areva, Dominion Power and Oakridge National Laboratories are working with southeastern universities like Virginia Tech to help meet the goal of training more nuclear engineers to run the planned nuclear power plants.

Let's not forget a "nuclear renaissance" would also benefit VUI in creating the need for more uranium. Increasing the "need" will raise the price of uranium and make it profitable to mine the ore body at Coles Hill.

Finally, Dr. Karmis' statement that nuclear engineers "don't care where uranium comes from" may be true, but Tech's having a domestic supply of uranium ore in its back yard, would complement its nuclear engineering program in no small measure. The waste management aspect (tailings, holding ponds and long-term storage, e.g., Superfund planning), I suspect, would turn up in Virginia Tech's curriculum.

As much as I admire Virginia Tech, for it is a fine institution of learning, I see a clear conflict of interest in its "implementing" the money VUI will pay to the NAS to perform a "research study."

Anne Cockrell
Danville, Virginia

http://www.caswellmessenger.com/articles/2009/10/06/opinion/opinion02.txt

Funding the study

Money-laundering and political incest...

Danville Register & Bee

To the editor:

OK, let’s get this straight. Virginia Uranium Inc. wants studies that might indicate uranium mining and milling is good business and is safe for Virginia’s citizens. It also wants the National Academy of Sciences to conduct at least one of the studies.

The Virginia General Assembly voted not to fund such a study two years ago. Virginia Uranium Inc. persisted and apparently convinced the Virginia Coal and Energy Commission to do its bidding. The VCEC formed a uranium mining subpanel.

With the aid of Michael Karmis of Virginia Tech’s Mining and Minerals Engineering Department/Director of Virginia Center for Coal and Energy Research Center, a study’s scope was determined and Karmis began communication with the National Academy of Sciences/National Research Council. At present, no one can or will fund the NAS study but VUI.

The National Academy of Sciences will not accept VUI’s offer to pay because it does not perform its services for private industry. So Virginia Tech will take VUI’s money and give it to the NAS. The National Academy of Sciences will do the study for private industry as long as the industry does not pass the money directly to them? A “blind eye” kind of thing, I suppose.

Does this seem akin to money laundering? If NAS gets “besmirched,” they will have done it to themselves. Virginia Tech appears to be an accomplice. At this point, if the state offers to pay for a study, it looks like a disingenuous offer with those supporting it seemingly subjects of tampering. If citizens question the process, the get called “silly!” VUI has managed to make everyone look bad.

Without mining the first shovel of uranium Virginia Uranium, Inc. is already tearing at the fabric of Virginia and polluting our government institutions and causing deep divisions in the citzenry. If for no other reason than to protect the Commonwealth's integrity, uranium mining should be banned. Unfortunately, we stand to lose more if we mine and mill uranium. Why risk Virginians’ health, heritage, agricultural and tourism industry, future economic opportunities, clean air and water for a boom-bust uranium mine? To allow this, as Karmis might opine, would be “silly.”

KAREN B. MAUTE

Mount Cross

Note: The R&B chose to omit the follwing from Ms. Maute's original letter: "Without mining the first shovel of uranium Virginia Uranium, Inc. is already tearing at the fabric of Virginia and polluting our government institutions and causing deep divisions in the citzenry. If for no other reason than to protect the Commonwealth's integrity, uranium mining should be banned."

http://www2.godanriver.com/gdr/news/opinion/letters_to_the_editor/danville_letters/article/funding_the_study/14385/

This is the editorial that prompted Ms. Maute's letter:

Editorial: No conflict at Tech

A nuclear engineering program at Virginia Tech shouldn't impact its involvement in uranium study.

There is ample reason to be disappointed in, and wary of, the planned study of uranium mining safety in Virginia -- most notably the fact that the corporation wanting to do that mining is paying for the study.

But it is wrong to allege, as some critics of the study have, that Virginia Tech has a conflict of interest in its assigned role of managing the money and coordinating with the National Academy of Sciences on the study.

Anne Cockrell, a Danville resident and member of the mining opposition group Southside Concerned Citizens, said Tech's nuclear engineering program poses a conflict of interest.

"Tech's having a domestic supply of uranium ore in its back yard would complement its nuclear engineering program in no small measure," she wrote in a recent e-mail. She repeated the charge in a commentary in the Chatham Star Tribune.

In an interview with the Danville News, Michael Karmis, director of Tech's Center for Coal and Energy Research, called that argument "silly."

Tech is not revitalizing its nuclear engineering program because of the possibility that there may be a local source of uranium available. Rather, the move is in response to a growing demand for nuclear energy and the upcoming retirement of a generation of nuclear engineers.

There are serious reasons to doubt the safety and feasibility of mining and processing uranium in Virginia's damp climate and in a location near population centers.

For appearances' sake, it would have been far better for the state to have paid for the study. The corporation that could mine as much as $10 billion worth of uranium from the Coles Hill site has a clear vested interest in the outcome of the study, and should not be involved.

But no one else stepped up with the money, and the state isn't exactly flush with cash.

The safeguards in place -- including Tech's management of the funds -- seem sufficient to ensure that the study is not biased by its funding.

Certainly, the National Academy of Sciences will not trade its reputation in exchange for a $1.2 million study.

Based on the available evidence, Tech doesn't deserve to have its reputation besmirched, either.

http://www.roanoke.com/editorials/wb/221135

Danville Regional Foundation pursues uranium study

By John Crane

Published: October 1, 2009

While the state anticipates approval of a statewide uranium-mining study conducted by the National Re-search Council, the Danville Regional Foundation is pursuing its own separate, regional analysis of the socioeconomic impacts of uranium mining and milling.

The foundation announced Thursday its request for qualifications seeking proposals from interested firms, nonprofits and academic programs.

“DRF is considering sponsoring an independent and rigorous socioeconomic examination of the effects the proposed mine, mill, and long-term waste management upon the people and institutions, including the economy, limited to the region served by DRF,” foundation President and CEO Karl Stauber said in a statement Thursday.

The Danville Regional Foundation, created in 2005 with the assets from the sale of Danville Regional Medical Center, serves Danville and Pittsylvania County as well as Caswell County, N.C. It uses about $165 million in assets to help transform the region culturally and economically.

Virginia Uranium Inc. seeks to mine and mill a 119-million-pound uranium ore deposit at Coles Hill, about six miles northeast of Chatham. Virginia has a moratorium on uranium mining.

Mining supporters say an operation at Coles Hill would bring economic benefits to Southside and supply hundreds of jobs. Opponents believe the project would destroy the environment and threaten public health in Pittsylvania County.

Delegate Terry Kilgore, head of the Virginia Coal and Energy Commission, sent a written request in August to the National Research Council, an arm of the National Academy of Sciences, to conduct a statewide study to determine whether uranium can be mined and milled safely in the commonwealth. NRC officials say the proposed study is worth pursuing.

VUI would pay for the state study’s first part covering the technical aspects of mining and milling. The state study’s second part focusing on the socioeconomic impacts has not been determined, Kilgore said. The Virginia Coal and Energy Commission or its Uranium Mining Subcommittee may meet in November to discuss the socioeconomic portion of the state study, Kilgore said.

Kilgore expressed support for the Danville Regional Foundation’s separate plans for a regional socioeco-nomic analysis of its own.

“I think it would be good for them to go ahead and do that,” Kilgore, R-1st District, said Thursday. “That, hopefully, will answer some questions for local citizens there in the Pittsylvania County area.”

The foundation’s study will not affect the state’s efforts, Kilgore said.

“The more information and knowledge we have on this issue, the more better off we’ll be,” he said.

Stauber said during an interview Thursday the foundation’s study will be different in scope and geography from the state’s. It will be more regional than statewide, with a focus on mining and millings impacts on local citizens and institutions, he said. The study will examine three scenarios under uranium mining and milling – best reasonable, worst reasonable and reasonable — and will based on its effects on employment, wages, property taxes, property values, churches, schools, retail businesses and other institutions, Stauber said. The survey will also analyze jobs and secondary industries that may result from uranium mining and milling.

Stauber said he doesn’t know how much the study would cost or how long it would take, but the foundation aims to be the primary funding source. The study, including the entity selected to perform it, scope, work-plan outline, results and analysis, will be public via the foundation’s Web site. Stauber said the foundation wants to make sure area residents and the General Assembly have the best information about the implications of uranium mining and milling for this region.

Stauber said he is not sure whether the foundation will formally submit results to the state.

The foundation seeks firms, nonprofits or academic organizations from outside the state to perform the socioeconomic analysis.

“We’re hoping that we will get proposals from around the U.S.,” Stauber said.

The foundation will review letters of interest and qualification and will invite full proposals from a small number of candidates. Inquiries should be directed to Karl Stauber, president and CEO, Danville Regional Foundation at kstauber@danvilleregionalfoundation.org . Letters of interest are due by Dec. 1.

Stauber said it would take up to three months to narrow interested firms down to three to five and up to another three months to make its final selection. Stauber the foundation would make its funding decision in June or July at the soonest. The foundation takes no position on uranium mining, he said.

Eloise Nenon, a member of Southside Concerned Citizens, a group that opposes uranium mining, said the foundation’s plans have the potential to be a good idea. However, the study should include extensive hearings for residents and plenty of public input, Nenon said.

Jack Dunavant, head of SCC in Halifax, said he is suspicious of the motivations for any study, but if it’s truly objective and independent, he has no problems with it.

“I wish them Godspeed and good luck,” Dunavant said. “We would be interested to see what any study would find.”

Patrick Wales, VUI spokesman and geologist, said the company hopes that whoever investigates the socioeconomic aspects of uranium mining will maintain the independence and objectivity that VUI supports.

http://www2.godanriver.com/gdr/news/local/danville_news/article/danville_regional_foundation_pursues_uranium_study/14308/

Virginia Tech rejects conflict of interest allegations in uranium study

What did we expect Va Tech to say? "Oh, snap...how did we miss that"?

By John Crane

Published: September 30, 2009

The director of Virginia Tech’s Center for Coal and Energy Research says its role to administer funding for a uranium mining study poses no conflict of interest.

At least one mining opponent contends Virginia Tech stands to benefit from the excavation of uranium at Coles Hill by expanding its nuclear engineering program.

“… (Virginia) Tech’s having a domestic supply of uranium ore in its backyard would complement its nu-clear engineering program in no small measure,” said Anne Cockrell, a Danville resident and member of Southside Concerned Citizens, a group that opposes uranium mining, via e-mail Wednesday.

During an interview Wednesday, Michael Karmis, director of Virginia Tech’s Center for Coal and Energy Research, called Cockrell’s allegations “a very silly argument.” The nuclear engineering program at the school has nothing to do with Coles Hill, Karmis said.

A lack of engineering capabilities in the work force to run nuclear power plants and nuclear programs at military bases is prompting schools like Virginia Tech to revive their engineering departments, Karmis said. Industries did not hire engineers in the 80s and 90s, leaving a generation gap among nuclear and other types of engineers, Karmis said. Nuclear engineering has become almost extinct and engineers about to retire need to be replaced, he said. In addition, demand for nuclear power is increasing, he said.

“That’s what the universities are responding to,” Karmis said.

Virginia Uranium Inc. seeks to mine and mill a 119-million-pound uranium ore deposit at Coles Hill, about six miles northeast of Chatham. Virginia currently has a moratorium on uranium mining. Delegate Terry Kilgore, head of the Virginia Coal and Energy Commission, sent a written request in August to the National Research Council, an arm of the National Academy of Sciences, to conduct the study. NRC officials say the proposed study is worth pursuing.

Mining supporters say an operation at Coles Hill would bring economic benefits to Southside and supply hundreds of jobs. Opponents believe the project would destroy the environment and threaten public health in Pittsylvania County.

Cockrell said the nuclear-power industry, including Areva, Dominion Power and Oakridge National Laboratories, is working with schools like Virginia Tech to help train more nuclear engineers to run planned nuclear-power plants. Also, Cockrell said professor and graduate students of Virginia Tech’s departments of geosciences and hydrogeosciences have conducted on-site studies and tests of unmined uranium at Coles Hill.

“Clearly Virginia Tech’s studies at Coles Hill are contributing to the front end of the nuclear fuel cycle, the mining and milling of uranium,” Cockrell said in her e-mail.

William Kearney, a spokesman for the NRC, said the organization operates independently of sponsors, who have no role in the study’s results

“Nobody knows the outcome of the study which hasn’t even started,” Kearney said of opponents’ allega-tions. “The study still needs to be approved by our governing board.”

Kearney said the NRC’s governing board will likely discuss the study request at the board’s regular meeting this month or in November. In the meantime, NRC staff will prepare a prospectus, or study proposal, that will include a scope, timeline, likely costs and sponsorship, Kearney said. The board would review the prospectus before deciding whether to approve the request.

The study’s first portion would cost $1.2-$1.4 million. Virginia Tech’s Virginia Center for Coal and Energy Research will handle the money and work with the NAS for the study. The second part of the study, dealing with the socioeconomic aspects of mining, still needs to be worked out by the Virginia Coal and Energy Commission. VUI will not fund the second part.

Katie Whitehead, a member of the Dan River Basin Association, said a detailed draft contract should be open to the public.

“A draft contract with details regarding such things as financial provisions, public hearings, interim reports, and release of information needed for the socioeconomic study should be made available for public comment,” Whitehead said in a statement. “For transparency, a meeting to explain the draft contract and take comments is essential.”

http://www2.godanriver.com/gdr/news/local/danville_news/article/virginia_tech_rejects_conflict_of_interest_allegations_in_uranium_study/14270/

Time/Place Changes for October 6th meeting of the Virginia Commission on Energy and Environment

Take a look at the agenda...link is in the meeting text. Virginia Energy is set to lob a few over the net unopposed...unless there's a substantial turnout of citizens!

SENATE OF VIRGINIA
OFFICE OF THE CLERK
RICHMOND

September 09, 2009

CHANGE IN MEETING LOCATION

TO:	Members, Virginia Commission on Energy and Environment
FROM:	Patty Lung, Coordinator, Senate Committee Operations
RE:	Change in Meeting Date/Time/Location

The time and location for the Tuesday, October 6th meeting of the Virginia Commission on Energy and Environment has been changed. The Commission will meet in conjunction with the Southern Virginia Bioenergy Conference at the Institute for Advanced Learning and Research, 150 Slayton Avenue, Danville, Virginia. Directions to the facility are on the Institute website. The conference begins at 9:00 a.m. and the Commission meeting is scheduled for 3:15 p.m. The agenda for the conference is posted on the Commission website. Additional information will be sent to Commission members as available. If you have questions regarding the meeting content, please contact Ellen Porter or Patrick Cushing with the Division of Legislative Services (804) 786-3591. If I may assist you in any other manner, or if you are a member and cannot attend, please call me at (804) 698-7450.

Members:

The Honorable Mary Margaret Whipple, Chair The Honorable J. Chapman Petersen The Honorable Richard H. Stuart The Honorable Charles D. Poindexter, Vice Chair The Honorable Samuel A. Nixon, Jr. The Honorable Clarke N. Hogan The Honorable Joseph P. Johnson, Jr. The Honorable Mark D. Sickles Patrick G. Hatcher Karen Kennedy Schultz Hugh E. Montgomery, Jr. August Wallmeyer Arlen K. Bolstad David K. Paylor Stephen A. Walz

cc:	The Honorable Susan Clarke Schaar The Honorable Bruce F. Jamerson Ellen Porter, Division of Legislative Services Patrick Cushing, Division of Legislative Services Mail List, Virginia Commission on Energy and Environment

http://dela.state.va.us/Dela/ComOpsStudy.nsf/82965f555b18a72185256c330058a983/C489563D01DC82C28525762C006BF481?OpenDocument

Individuals requiring interpreter services or other special assistance should telephone Senate Committee Operations at (804) 698-7450, TDD (804) 698-7419. Persons making audio-visual presentations to the committee should call for specifications.

Stephen Walz, Senior Advisor for Energy Policy in Governor Timothy Kaine's Office to Open Virginia Clean Energy Summit in South Boston, VA

Stephen A. Walz, Senior Advisor for Energy Policy in the Office of Governor Timothy Kaine and Director of the Department of Mines, Minerals and Energy (DMME), will open the upcoming “Show Me the Energy Money” energy summit on Wednesday, July 15 at 9:00 a.m. at Riverstone Technology Park in South Boston. He will bring central focus to the discussion of opportunities for businesses and residents in Virginia to leverage the Governor's plans for energy, as well as the Tobacco Commission's plans for commercialization of emerging clean and renewable energy technologies.

Mr. Walz provides energy policy analysis and advice to the Office of the Governor and oversees state mine safety and mine environmental programs, state geologic services, and energy efficiency services at the DMME. He directs implementation of the Virginia Energy Plan, is Chair of the Governor’s Energy Policy Advisory Council, and served on the Governor’s Commission on Climate Change.

Mr. Walz has 29 years experience in program management, policy, and administrative duties at DMME. Prior to joining Virginia state government, Mr. Walz worked in energy and community development programs in Missouri and Nebraska. He has a BS in Civil Engineering from Worcester Polytechnic Institute in Worcester, Massachusetts.

So far this year, nearly $300 million in American Recovery and Reinvestment Act (ARRA) funds have been allocated to Virginia for energy-related programs, including $94 million for weatherization, $75 million for the Jefferson Laboratory, $70 million for the State Energy Program and $60 million in Energy Efficiency and Conservation Block Grants.

The programs to be supported by these federal funds will create or preserve jobs, reduce consumption of energy from conventional sources, increase production of renewable energy, reduce greenhouse gas emissions and reduce energy costs. "In Virginia, we have dedicated 2009 as our Year of Energy and the Environment, and these funds could not come at a more appropriate time," said Virginia Governor Tim Kaine. "This money will not only help Virginians adopt efficient energy practices and technologies, it will also go a long way towards creating and maintaining jobs for many Virginians."

“Show Me The Energy Money” summit dates are Tuesday, July 14, from 4:00pm-8:30pm at Berry Hill Resort and Conference Center and Wednesday, July 15, from 8:00am-4:30pm at Riverstone Technology Park in South Boston VA. Joining Mr. Walz are Drew Bond, Vice President, Battelle; Katherine Hamilton President, Gridwise Alliance; Henry McGuire, Vice President, Tetra Tech; Timothy Cook, Vice President, Alion Science and Technology; Charles Bonnucceli, Partner, Argy, Witse & Robinson, PC, and; James F. Groelinger, Executive Director, Clean Energy Alliance.

Registration is $225 and includes Summit presentations, Opening Welcome Reception and Dinner at Berry Hill Resort on July 14, and Presentations, Breakfast and Lunch at Riverstone Technology Park on July 15. To register and for additional information, please visit online at www.virginiaenergynetwork.com or call the Incubator Offices at 434-575-7766.

Show Me The Energy Money!

Tuesday, July 14, 4:00pm - 8:30pm - Berry Hill Resort and Conference Center
Wednesday, July 15, 8:00am - 4:30pm – Riverstone Technology Park

South Boston, Virginia

Hosted by

The Virginia Clean Energy Incubator

www.virginiaenergynetwork.com

A Program of the Virginia Tech Modeling and Simulation Center for Collaborative Technologies

Uranium Mining Study Under Way

The uranium-mining study is under way with public safety and the health impact No. 1 in the revised study statement of tasks.

The Virginia Coal and Energy Commission’s Uranium Mining Subcommittee revised the study’s final draft Thursday in Richmond, moving public safety and the health impact from No. 7 on the statement to No. 1.

The uranium subcommittee approved the study document in an 8-2 vote with Delegate Watkins Abbitt, I-59th District, and Delegate William Janis, R-56th District, opposing.

A moratorium on uranium mining is currently in effect in Virginia.

Virginia Uranium Inc. wants to mine a large ore deposit in Pittsylvania County located about six miles northeast of Chatham at Coles Hill.

Uranium mining opponents were vocal at the subcommittee meeting Thursday.

Katie Whitehead, chairman of the Dan River Basin Association Mining Task Force, speaking on behalf of DRBA, called for changes in the study’s scope as well as specific task amendments at the Richmond meeting.

“I think the National Academy will give us reliable information, a way to look at the big picture and the complexity and will point to areas where additional information is needed,” said Whitehead.

However, Whitehead emphasized, “The need for amendments to clarify what the study will and will not do were not included.”

(emphases mine...SB)

http://www.gazettevirginian.com/news/news/uranium/675-uranium-mining-study-under-way.html

Urgent Questions Remain Regarding the Two Uranium Studies

The mining study is shaping up to be one big expensive joke with potentially lethal consequences. Socio-economic aspects are getting short shrift and tailings containment, one of the gravest dangers of mining, will be ignored. Katie Whitehead makes a compelling argument for the inclusion of socio-economics here. SB

News reports regarding the work and responsibilities of the Uranium Mining Subcommittee do not begin to inform the public about the true status and complexity of the uranium study process. There may not be a market for such information, yet there is certainly a need. Urgent questions remain unanswered.

Contrary to some reports, the uranium mining study has not started. We need to remember, as well, that “the study” is now two studies – a technical study and a socio-economic study. The subcommittee is negotiating the technical study with the National Academy of Sciences (NAS). Before NAS can call for nominations for a study committee, both parties must agree on the scope of work, the NAS has to draw up a budget and timeline, and someone has to come up with money and sign a contract.

Subcommittee members have yet to discuss the equally important, complicated, and challenging socio-economic study.

Will there be a socio-economic study?

If a technical study is done, a socio-economic study should also be done.

Some people have gotten the impression that the Uranium Mining Subcommittee sees the socio-economic study as secondary and perhaps unnecessary. The Danville Register and Bee reported on May 13^th that subcommittee member Sen. Phillip Puckett opposes conducting a socio-economic study if mining is found to be unsafe in the technical study: “If that is a ‘no,’ we don’t have to answer any more questions.”

One could make the same argument for the socio-economic study: if uranium mining is undesirable for social and economic reasons, we don’t have to know absolutely whether it is safe or not. Contrary to what we have been led to believe, the technical study will not make a final judgment on whether mining is safe or unsafe. A socio-economic study might provide greater clarity.

The stigma associated with uranium mining and tailings has real social and economic impacts, as does the volatility of the market for uranium. We need to understand how uranium mining might influence perception of a region for current residents, as well as for business executives, farm product consumers, families, students and their parents, retirees, tourists, and others contemplating coming to the area to live or to visit. We should look at available evidence about whether uranium mining harms or enhances a region’s character, quality of life, and economic well-being.

The only way to ensure that the socio-economic study is done and done adequately is to identify an independent and objective research institution, get budget estimates, and secure full funding for both studies before either study begins. This is not happening.

Who will do the socio-economic study? Will it be objective?

The Coal and Energy Commission chose as its advisor Dr. Michael Karmis, a world-renowned mining engineer and director of the Virginia Center for Coal and Energy Research (VCCER). Whether he is an appropriate advisor regarding a socio-economic study is a valid and important question that implies no disrespect.

Dr. Karmis, in his rough draft scope for the socio-economic study, recommended a site- and region-specific study, not a study anticipating statewide consequences of lifting the moratorium. He envisioned a smaller, shorter, less complicated, less costly study than the technical study. He also advised that the National Academy of Sciences would not likely be interested in undertaking the socio-economic study. We should ask the academy. The National Academy of Sciences does socio-economic studies and some original research and is, of course, known for its independence and objectivity.

The NAS might well be willing to study by analogy how introduction of a controversial industry can influence the perception of a region and its economy. The academy is also able to study the potential for boom-bust cycles in mining communities and their effects on regional economic activity and quality of life. Real-life examples of uranium mining communities and regions with analogous industrial activities can help researchers tell us what we might be facing.

An alternative approach would specifically identify businesses, institutions, schools, government bodies, and other entities in a region of interest and study in detail how each might be affected by the potentially disruptive introduction of a stigmatized industry. Two entities have been named in private conversations as perhaps being capable of this sort of socio-economic study, but one of these institutions may have been suggested by industry lobbyists after prior contact with researchers. Such contact could inappropriately influence the framing of a study and compromise the independence of the research.

Who is paying for the studies? Who should pay? Will adequate funds be available?

According to various members of the Uranium Mining Subcommittee, Del. Terry Kilgore, Chairman of the Virginia Coal and Energy Commission and ex-officio subcommittee member, is responsible for finding money to do the two studies. Del. Kilgore listened to the May 21^st subcommittee meeting by telephone. He did not participate in discussion or respond to questions or comments about funding. Kilgore has asked for donations to pay for the studies. No other information is publicly available.

The National Academy of Sciences cannot perform a study directly for a private industry.

The Virginia General Assembly has not budgeted money for a study. The Virginia Coal and Energy Commission cannot accept contributions to spend on a study.

The Virginia Citizens have emphasized to the subcommittee the need to consider the whole study process, secure appropriate funding, and ensure independent experts give adequate time and attention to both studies. Even the best study process does not ensure a sound public policy decision. The current process raises serious doubts.

Katie Whitehead of Chatham is chairman of the Dan River Basin Association Mining Task Force.

Santoy Resources Jump-Starts Growth with Virginia Uranium Stake

By James West
MidasLetter.com
Monday, May 25, 2009

As far as uranium companies go, there aren't many who can say they are developing one of the largest undeveloped deposits in the world. But Santoy Resources (TSX.V:SAN), through its acquisition of a minority stake in Virginia Uranium, is doing just that. Santoy is in the process of acquiring a 20% interest in the holding company ("Holdco") that controls the leasehold development and operating rights of the Coles Hill uranium property in southside Virginia.

The transaction is structured as a plan of arrangement that also provides Santoy with a right of first refusal on future financings. Santoy's ambition is to earn a 30% interest over the next few years through various financing transactions.

Ron Netolitzky, Chief Executive Officer of Santoy, is also a director and a shareholder of Holdco. To increase the number of Holdco shares available to Santoy, Mr. Netolitzky and Santoy have agreed under the Business Combination Agreement that Santoy will acquire his 2,000,0000 Holdco shares in exchange for Santoy shares at the same ratio of six shares of Santoy for each one share of Holdco. The transaction has been negotiated by an independent committee of the board of Santoy and has received full board approval with Mr. Netolitzky abstaining.

It is contemplated that Santoy will, subject to regulatory approval, change its name to "Virginia Energy Resources Inc." or such other name as approved by the Santoy Board to reflect the significance of the transaction to Santoy.

According to Virginia Uranium CEO Norman Reynolds, who will become CEO of Santoy upon the transaction's closing, "What this gives Santoy is a very substantial interest in one of the largest undeveloped uranium projects in the world. Its in an area that is very nuclear friendly, Virginia has four reactors generating more than a third of the state's electricity needs. Forty miles from the project there are two nuclear facilities, one owned by Areva that manufactures fuel rods for the commercial reactors and the other one manufactures the fuel rods for the navy. When the Atlantic fleet is in its home port of Norfolk Virgina, there are in the neighborhood of 50 reactors in the various aircraft carriers and submarines, so it's a state that is very comfortable and supportive of nuclear energy."

Reynolds was the president of Marline Corp. when the deposit was discovered in the '80s.

Dominion Virginia Power has four nuclear plants in Virginia that provide about a third of the state's energy, but the uranium used at the facilities is imported. The situation in neighboring states is similar, including in Maryland, which gets 31 percent of its electricity from nuclear power, according to the federal government.

Marline Corp. began searching for uranium deposits in the Eastern US in the late 1970s and in 1982 said it discovered 30 million pounds of uranium oxide in Pittsylvania County, potentially worth $1 billion or more.


Since then, the estimate of available ore has climbed to 119 million pounds, worth perhaps $10 billion. However, Virginia placed a moratorium on uranium mining in 1982, until such time as uranium mining regulations are enacted into law. Marline was working with the state legislature in the 1980's to develop the appropriate laws and regulatory framework for uranium mining in Virginia when the price of uranium declined to the point that the project was abandoned. Santoy's will support Virginia Uranium's efforts to pick up today where Marline left off 25 years ago. In the meanwhile, the state continues to import all of its nuclear fuel requirements.

In 1982, Virginia did pass laws covering uranium exploration. Per those regulations Virginia Uranium Inc. applied for and received a permit from the Virginia Department of Mines, Minerals and Energy in November 2007 to conduct uranium exploration drilling on 194 acres in and around the Coles Hill deposit in Pittsylvania County.

Baseline water quality has been established for water wells, surface water ponds, and streams in the area. An archeological, cultural, and historic resources review of the area has been completed. There are no threatened or endangered species within or near the permit area.

The Virginia governor's energy plan issued in the Fall 2007 mentioned this project about 50 times, saying that studies needed to be done to assess the potential for developing it, and generally supporting the idea of a developed uranium mining industry in the state," said Reynolds "That was largely the catalyst that motivated the Coles and Bowen Families to begin developing Coles Hill more aggressively."

Family patriarch Walter Coles said in January 2008, "There's too much uranium here. Somebody's going to mine it. I felt like while I was alive, it was my duty to make sure it was done right."

Virginia Uranium is focused on and committed to best practices in terms of environmental protection and community relations. To that end, the company is:

* Supporting an independent study authorized by the Commonwealth of Virginia to analyze the effect of mining on the community with emphasis on agriculture;
* Actively working with the Virginia Farm Bureau to assist the county's efforts to preserve the agricultural traditions of the region, and;
* Supporting local and regional colleges and universities with research, scholarships, grants and job opportunities related to agriculture, mining and geology.

Gov. Timothy M. Kaine (D) supports a study, and a state energy report released this fall recommends one. Virginia currently gets more of its energy from nuclear power than almost any other state -- about 35 percent, almost twice the national average.

In addition to the Virginia acquisition, Santoy has actively been exploring its strategically located uranium properties within three main geographic locations in Canada; the Athabasca Basin of Saskatchewan, the Central Mineral Belt of Labrador and in the Otish Mountains of Quebec. These projects are located on favourable geological trends and are in close proximity to known deposits.

The company currently holds interests in 12 uranium properties within or on the margins of the prolific Athabasca Basin of northern Saskatchewan.

Santoy and its 50-50 joint venture partner Denison Mines Corp. (TSX:DML, AMEX:DNN) have approved a $300,000 budget for fieldwork on the Hatchet Lake and Murphy Lake properties for 2009. Ground electromagnetic surveys are currently underway on the Tuning Fork and Tuning Fork West grid on the Hatchet Lake property.

Santoy will also spend $1 million on nine claim blocks within and on the margins of the Proterozoic Otish basin it controls in the province of Quebec.

The company has an experienced management team which is supported by a veteran board of directors who have been directly involved with the discovery and development of three major gold discoveries in Canada that have subsequently been put into production (Eskay Creek, Snip and Brewery Creek mines); of coal and coalbed methane projects in Western Canada; of producing "green power" projects throughout Canada; of conventional oil & gas discoveries throughout North and South America; and of taking uranium discoveries through to feasibility study.

Visit the company's web site at www.Santoy.ca and also at www.VirginiaUranium.com to learn more.

SOURCE: http://www.midasletter.com/news/09052506_Santoy-resources-jump-starts-growth-with-Virginia-Uranium-stake.php