DRC-2011-006599 - 0901a068802450e9

Certified Mail: (7010 029 0003 3163 4629)
June 16, 2011
Mr. Rusty Lundberg, Director
Division of Radiation Control
Utah Department of Environmental Quality
168 North 1950 West
PO Box 144850
Salt Lake City, UT 841144850
Re: License UT1900481
2011 Annual Surety Update
1 ^^I'veci
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Dear Mr. Lundberg,
Please find enclosed Rio Algom Mining's 2011 surety update for the above referenced
license. Activity during the past year included normal maintenance of the mine site and
groundwater monitoring as required by license condition 53.
Rio Algom Mining requests that the surety of $2,214,366 remain unchanged. Rio Algom
Mining is anticipating transfer of the site to the DOE by the end of 2013.
Please contact me if you have any questions or need additional information related to this
submittal.
Sincerely,
Chuck Wentz
Environmental Department Supervisor/RSO
Rio Algom Mining LLC
POBox 218
Grants, NM 87020
505.287.8851 ext 15
Chuck.Wentz(a)bhpbilliton.com
Attachments - 2
cc: B. Ray
P.O. Box 218, Grants, NM USA 87020 - Tel: [phone] - Fax: [phone]
ATTACHMENT 1
SUMMARY PAGE
RIO ALGOM MINING LLC - LISBON OPERATION
FINANCIAL ASSURANCE COST ALLOCATION
June 2011
Itemized 2011 Status 2011 Subtotal 1
1 Upper Evaporation Cell Closure
Cost to place cover 67437 Complete
Radiation surveys - radon flux measurements 12150 Complete
Rock purchase 92238 Complete
Rock placement 111345 Complete
QA on rock placement 70 Complete
Subtotal 0
1 Lower Evaporation Cell Ciosure
Cost to place cover 92283 Complete
Radiation surveys - radon flux measurements 12150 Complete
Recontour Outsiope 45133 Complete
Rock purchase 158313 Complete
Rock placement 186720 Complete
QA on rock placement 83 Complete
Subtotal 0
|UDD-2 Completion
Rock purchase 14602 Complete
Rock placement 14990 Complete
Subtotal 0
1 Building Demolition and site clean-up
Shop Building 52875 Complete
Office building 68000 Complete
Fencing for LTSM 9560 Complete
Revegetation cost 22000 Complete
Subtotal 0
IGroundwater (costs calculated throuqti license termination - 2013)
Stability monitoring - well sampling 19392 On-going
Modei review and update 104000 On-going
Subtotal 123392 123,392
Total—> 123,392
Site Management (10% - RSMeans)
Subtotal Reclamation Cost
12.339
135,731
Overtiead and Profit @ 10%
Subtotal
Contingency (15% of all costs)
Subtotal
LTSM Fee ($250K in 1978 $ adjusted )
13,573
149,304
22,396
171,700
810,000
Total Reclamation Cost 981,700
ATTACHMENT 2
STABIUTY MONITORING DETAIL
Rio Algom Mining LLC
Lisbon Operation
Task -> Stability Monitoring - Groundwater
Annual costs are calculated outward until anticipated license termination in 2013
Cost Description
3675 Labor - sampling/shipping. ($35/hr * 2 hr/well * 14wells * 2.5 times/yr)
2905 Laboratory analysis (17 wells [data sets] * $83/well * 2.5 times/year)
1316 Miscellaneous work tasks - data review, QA, reports (20% of items 1 and 2)
2 Number of years to perform sampling
14 Number of wells to be sampled
3 Time to sample well
4 Days to perform sampling event
2.5 Number of sample events per year
90 per diem for sampling technician
900 annual per diem for sampling
2 Number of technicians
1800 Totai per diem
9696 Annual groundwater sampling cost
2013 Projected license termination date
19392 Total costs for groundwater monitoring through license termination (2013)