DSHW-2011-008522 - 0901a06880274b98

March 3, 2011
CERTIFIED MAIL RETURN RECEIPT REQUESTED
David P. Gosen, P.E. 7005 0390 000 7508 5838
Director, Environmental Services
ATK Launch Systems -Promontory Facility
P.O. Box 707
Brigham City, UT 84302-0707

RE: Updated Financial Assurance
Post-Closure Care Cost Estimate
UTD009081357

Dear Mr. Gosen:

The Division of Solid and Hazardous Waste has completed its review of ATK Promontory financial assurance issues regarding the adjustment of post-closure cost estimates. There are four
components, addressed below, to this issue.

1. The Division has completed a review of your proposal, dated October 25, 2010 to adjust post-closure costs, the cost estimate provided on October 25, and subsequent revisions based
on communications between ATK and the Division. The most recent cost estimate, provided by ATK on February 17, 2011 (and enclosed with this letter) is acceptable to the Division. Therefore,
the total post-closure cost for the Promontory facility will be based on an annual cost of $63,367.

2. ATK has proposed to fund the annual post-closure costs based on the number of years the facility has been in post-closure care. Since the original Post-Closure Permit was issued
on September 21, 1992, ATK is currently in its 19th year of post-closure care. Funding post-closure costs only for the years left in the 30-year period results in a “discounted” cost.
The Division has contacted EPA Region VIII for assistance in evaluating your proposal. The EPA has not authorized the practice of discounting post-closure costs and this practice is
not authorized by the financial assurance requirements specified in R315-8-8. Based on our evaluation, ATK must fund post-closure financial assurance costs, as required by Permit Condition
II.G and R315-8-8 [40 CFR 264.144(a)(2)] for the full 30-year period.

3. The Division is in receipt of Irrevocable Standby Letter of Credit (ISLOC) No. SLCMSP00090730 in the amount of $4,135,181 dollars. The receipt of the ISLOC satisfies Post-Closure
Permit Condition III.D.3.

4. In regard to the ATK/US Bank, Standby Trust Agreements, ATK must now update Schedules A and B of the Agreement to incorporate the new ISLOC information into that document as required
by R315-8-8. In addition, it is requested that ATK update the ATK Standby Trust Agreement document that is used for guaranteeing financial liability requirements for non-sudden coverage,
by incorporating language specified by R315-8-8, that incorporates 40 CFR 264.151(n), and revise Schedules A and B of that agreement.

Thank you for your cooperation in addressing these issues. If you have any questions, please contact David McCleary at [phone].

Sincerely,

ORIGINAL DOCUMENT SIGNED BY SCOTT T. ANDERSON ON 3/3/2011

Scott T. Anderson, Executive Secretary
Utah Solid and Hazardous Waste Control Board

STA/DMM/tjm

Enclosure

c: George Gooch, ATK Launch Systems

TN201000984 2

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144880 • Salt Lake City, UT 84114-4880
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
TN201000984 Printed on 100% recycled paper

Solid and Hazardous Waste Control Board
John D. Newman, Chair
Michael D. Brehm, P.E., Vice-Chair
Scott Bruce
Carlton Christensen
Kory Coleman
Jeff Combs, MPH, LEHS
R. Ryan Dupont, Ph.D.
Larry A. Ellertson
Brad Mertz
Gary Mossor
Kevin Murray
Dennis Riding
Amanda Smith
Scott T. Anderson
Executive Secretary

State of Utah

GARY HERBERT
Governor

GREG BELL
Lieutenant Governor

Department of Environmental Quality

Amanda Smith
Executive Director

DIVISION OF SOLID AND HAZARDOUS WASTE
Scott T. Anderson
Director