DRC-2014-005328 - 0901a0688049136b

State of Utah
GARY R. HERBERT
Governor
SPENCER J. COX
Lieutenant Governor
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
MEMORANDUM DRC-2014-005328
TO: File C-2014-68
THROUGH: Phil Goble, Section Manager
FROM:
DATE:
SUBJECT:
Russell J. Topham, P.E.
September 11, 2014
Results of Review of March 24, 2014 Uranium One Surety Submittal, Shootaring Canyon
Uranium Mill, nearTicaboo, Utah
This is a summary of Utah Division of Radiation Control (DRC) staff review of the Uranium One Surety
Submittal for the Shootaring Canyon Uranium Mill dated March 24, 2014.
The original due date for the surety submittal was April 1, 2014. Uranium One submitted a request on
February 14, 2014 to extend the due date. On March 11, 2014, the DRC granted the requested extension,
setting a new due date of June 1, 2014. The submittal arrived prior to the original due date.
The 2013 surety submittal was to have employed a fresh look at the required work of decommissioning.
However, to aid the company in getting a more timely review to facilitate discussions on a potential sale of
the mill to Black Range Minerals, the DRC allowed application of a CPI adjustment along with an increase
in the contingency line item to 20% of direct costs. Uranium One is proposing the same approach for 2014
to facilitate discussion with another potential suitor (Anfield Resources) for purchase of the mill.
Simultaneously, the DRC has received a Notice of Change of Control and Ownership Information letter
dated August 15, 2014 (the Notice). In the Notice, the DRC was made aware of intent on the part of the
purchaser to bring the plant online by 2016. This would require considerable upgrade to the existing plant
and equipment, resulting in a fresh look at the surety. The proposed surety represents an increase of
$554,290 from 2013.
Given the current direction of ownership and operational discussion with respect to the mill, and the
increase in the contingency to conform with Rule, 1 recommend approving the surety in the amount of
$9,346,014 as proposed.
195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www. deq. utah.gov
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