CASPER, Wyo. (AP) — A federal judge has ruled against an environmental group's challenge to an in-situ uranium mine that started production last month in Sweetwater County.

U.S. District Judge Scott Skavdahl on Wednesday upheld the U.S. Bureau of Land Management's approval of the Lost Creek In-Situ Uranium Recovery Project operated by Ur Energy. The mine is about 15 miles southwest of Bairoil.

The Biodiversity Conservation Alliance in Laramie had challenged the project, saying the BLM had failed to consider its effect on sage grouse and other species.

Alliance lawyer John Persell says the group is disappointed with the judge's ruling.

A statement on Ur Energy's website quotes company President Wayne Heili saying he commends state, local and federal officials who worked to confirm the company's compliance with environmental and safety regulations.