CHEYENNE- Wyoming uranium producers will be notified shortly that they must resume payment of mineral severance taxes because of a rise in the price of yellowcake for the past six months, a Department of Revenue official says
The producers have been excused from paying severance taxes since Jan. 1, 1996. Under a 1995 law the tax need not be paid unless the spot market price of yellowcake reaches $14 per pound for six months straight."It exceeded that for six months now so they have to start paying the severance tax again," said Edmund Schmidt, director of the Department of Revenue's mineral tax division.
The uranium producers, however, have continued to pay counties ad valorem taxes, he said.
Only two uranium producers are working in Wyoming on in situ or leaching operations in three counties Campbell, Converse and Johnson.
Total uranium valuation in 1996 is $ 10.8 million, an increase of $46G,774 over 1995.
Johnson County lost $ 1.8 million in uranium valuation this year, while Campbell picked up $2.4 million when the Malapai in situ mine production points shifted from Johnson to Campbell counties, Schmidt said.
Johnson County officials complained, but Malapai mine officials confirmed that the production moved to Campbell County, he said.
The only other working uranium mine is run by Power Resources in Converse County, he said.
The Wyoming Board of Land Commissioners, meanwhile, recently approved 21 applications for uranium leases filed by Pathfinder Mines Corp. On state lands in Campbell, Carbon, Johnson and Natrona counties.
Donna Wichers, manager of in situ leach Environmental Regulatory Services for Pathfinder and COGEMA Inc. in Casper, said earlier the applications are for leases the company dropped in 1993.
"The price of uranium has: come up so we went and applied to get them back," Wichers said."We're cautiously.optimistic."
The leases surround Pathfinder's existing in situ leach operations in Campbell and Johnson counties and its remaining reserves in the Shirley Basin and the Gas Hills.
Uranium now sells for $16.50 per pound, up from $12 per pound last year.
This is far below the $40 per pound price of the 1980's
Wyoming remains the top uranium producer in the country at 705,000 pounds per year, followed by Texas
.
