A federal judge in Colorado has shut down a uranium leasing program in that state, finding that the Department of Energy violated the National Environmental Policy Act and Endangered Species Act (Colorado Environmental Coalition v. Office of Legacy Management, 08-1624-WJM-MJW, D. Colo.).
Here’s a copy of the 53-page ruling, which the environmental plaintiffs said in a news release “invalidates [DOE's] approval of the program; suspends each of the program’s 31 existing leases; enjoins the Department from issuing any new leases; and enjoins any further exploration, drilling or mining activity at all 43 mines approved under the program pending satisfactory completion of new environmental reviews under the National Environmental Policy Act and Endangered Species Act.

From DOE's Uranium Leasing Program page
In a footnote, Martinez distinguished the decision in The Wilderness Society v. Wisely, 524 F. Supp. 2d 1285 (D. Colo. 2007).
In Wilderness Society, the court ultimately held that the failure to consult with FWS constituted harmless error because consultation with the FWS took place only two months later, prior even to the issuance of any leases, and so there was no reason to believe that a conference prior to issuance of the EA would have yielded any different results from the actual conference that took place two months later. See id. at 1302. That state of affairs is very much different than the situation present here, where the EA was issued in July 2007, consultation with the FWS had still not occurred as of June 2011, and in the meantime DOE issued 31 leases, approved five exploration plans (with the exploratory boreholes already drilled), and approved 13 [Reclamation in-lieu-of Royalties (RILOR)] plans (with the reclamation activities already conducted). The court holds that, under these circumstances, a finding of harmless error is not appropriate.”
The plaintiffs argued that DOE unlawfully relied on categorical exclusions in approving the exploration and reclamation activities. The judge, however, agreed with DOE, even though he said that “[t]he use of this particular categorical exclusion for these reclamation activities presents a closer question.” See below for more of the judge’s discussion of this issue.
More excerpts (all direct quotes)
ESA consultation
The ESA requires consultation “at the earliest possible time,” and here DOE had already attempted to assess in the EA the impacts of leasing on the four endangered fish, coming to its own conclusion that affects [sic] on the fish would be “highly unlikely.” Also, there is no evidence in the record regarding what new information DOE learned between its issuance of the EA and its current position that consultation with FWS is proper. Therefore, following The Wilderness Society, the court holds that DOE acted arbitrarily and capriciously by failing to consult with FWS prior to or immediately following the issuance of the EA, in violation of the ESA.
The court holds that DOE’s determination that effects on listed species would be “highly unlikely” satisfies this low “may affect” standard. Thus, DOE’s own conclusion in the EA on this point triggered DOE’s duty to consult with FWS. This determination in the EA was made in July 2007. By DOE’s own admission, it still had not entered into formal consultation with FWS as of June 2011, although by that time it was planning to do so. (See ECF No. 82, Ex. B, at 2-3 ¶ 6.) In the meantime, DOE issued 31 leases, approved five exploration plans (with the exploratory boreholes already drilled), and approved 13 RILOR plans (with the reclamation activities already conducted). This failure to consult promptly with FWS upon its reaching its conclusion in the EA violated ESA. See 50 C.F.R. § 402.14(a).
[C]ontrary to DOE’s representations, it did not arrive at a “no effect” determination in the EA. Instead, the EA states, “Impacts to threatened, endangered, and sensitive fish in the Dolores River or downstream in the Colorado River would be highly unlikely due to the small scale of disturbances, implementation of storm-water controls, and lack of discharge into waterways during mining operations.” (AR002715 (emphasis added).) DOE has improperly conflated the EA’s conclusion that effects on endangered fish would be highly unlikely with its current position that the ULMP would have no effect on endangered fish. The EA does not include a “no effect” determination, it includes a determination that effects on endangered fish would be “highly unlikely,” a not unimportant distinction.
NEPA
In this section of the court’s decision, the Court has only held that DOE acted arbitrarily and capriciously by failing to analyze site-specific impacts in the EA. The court orders that DOE on remand conduct a NEPA analysis that considers and analyzes site-specific impacts of the various alternatives considered. DOE has represented that it will do so through its completion of an EIS.
The court applauds DOE for planning to conduct an EIS for the ULMP that will include site-specific impacts. However, the question before the court is whether DOE acted arbitrarily and capriciously in failing to analyze site-specific impacts in its 2007 EA. The court concludes that it did.
The court declines to make a determination regarding whether the ULMP will significantly affect the quality of the human environment. That is DOE’s role.
Alternatives analysis
Plaintiffs have not discharged their burden of showing that DOE’s selection of alternatives was arbitrary and capricious.
Cooperation with other agencies
[T]he court concludes that DOE violated NEPA by failing to request the participation of EPA in the NEPA process at the earliest possible time.
Supplemental analysis
[T]he EA/FONSI was issued in July 2007, and the leases were issued during 2008. Plaintiffs have not pointed out to the court “significant” new information that was available to DOE in 2008 that was not available to it in July 2007, which would require a supplemental environmental analysis. Thus, plaintiffs have not met their burden of showing that DOE acted arbitrarily and capriciously by issuing leases pursuant to the EA/FONSI without conducting further environmental analyses under NEPA.
Categorical exclusions
“It is a stretch to characterize the reclamation activities that took place as “[r]outine maintenance activities . . . for buildings, structures, rights-of-way, [infrastructures] (e.g., pathways, roads, and railroads), vehicles and equipment, and localized vegetation and pest control.” Further, the record does not indicate that the primary purpose of reclamation of abandoned uranium mines would be “erosion control” or “soil stabilization.” The use of this categorical exclusion is further questionable given that an entirely different section of DOE’s categorical exclusions (B6) are “Categorical Exclusions Applicable to Environmental Restoration and Waste Management Activities.” See 10 C.F.R. Pt. 1021, Subpt. D, App. B.38 Nevertheless, the reclamation activities that took place did involve soil work and reseeding.
Piñon Ridge Mill
DOE’s other two arguments – that the effects of the [Piñon Ridge Mill] need not be evaluated because (1) it is being built by a company on private land, and (2) approval of the mill is controlled by other governmental entities – lack merit. Regardless of whether an EA or EIS is being prepared, the agency conducting the analysis must consider the “cumulative impacts” of the proposed action.
Nevertheless, the judge found that DOE “did not act arbitrarily and capriciously by declining to analyze the effects of the planned Piñon Ridge Mill in the 2007 EA, given the preliminary nature of the mill at that time.”
Road access
As for road access, plaintiffs’ argument fails because the EA did explicitly consider, in detail, the effects that expansion of the ULMP would have on transportation. (See AR002643-53; AR002662-63.) In terms of other uses of off-lease lands by leaseholders, plaintiffs’ undetailed argument on this point fails to carry their burden of showing that the EA failed to sufficiently analyze such off-lease impacts. However, given that DOE is being ordered on remand to conduct a NEPA-compliant analysis of the ULMP, it makes sense to point out that DOE is incorrect in its arguments in its response brief for why off-lease land uses by leaseholders need not be analyzed under NEPA. First, it argues that “[t]he scope of off-lease land uses is speculative at best at the pre-leasing stage.” (ECF No. 82, at 22 n.7.) This argument is unpersuasive for the same reason the argument that site-specific impacts need not be considered is unpersuasive, namely, because such impacts are reasonably foreseeable given DOE’s history of managing the ULMP program and its detailed knowledge regarding the mining that would occur under the expanded ULMP (e.g., how much uranium would be mined, the number and size of mines, etc).