DRC-2010-003702 - 0901a0688019926b

DRC-2010-00370
Rio Algom Mining LLC
June 17. 2010
Mr. Dane L. Finerfrock, Director
Division of Radiation Control
Utah Department of Environmental Quality
168 North 1950 West
PO Box 144850
Salt Lake City, UT 84114-*850
Re: License UTI900481
2010 Annual Surety Update
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ReceWea
JUN 2010
Division of . Radiation Control
Dear Mr. Finerfrock,
Please find enclosed Rio Algom Mining's 2010 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 2011.
Please contact me if you have any questions or need additional information related to this
submittal.
Sincerely,
Chuck Wentz
Environmental Department Supervlsor/RSO
Rio Algom Mining LLC
PO Box 218
Grants, NM 87020
505.287.8851 ext IS
[e-mail]
Attachments - 2
cc: T. Fletcher
File
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 2010
Hemized Subtotal 1 2010 status 2010 Subtotal 1
Upper Evaporatron Cell Closufe
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
Sijbtotal' 283,241 0
Lower Evaporation Cell Closure
Cost to place cover 92283 Complete
Radiation surveys - radon flux measurements 12150 Complete
Recontour Outslope 45133 Complete
Rock purchase 158313 Complete
Rock placement 186720 Complete
QA on rock placement 83 Complete
Subtotal' 494,681 0
UDD-2 Completion
Rock purchase 14602 Complete
Rock placement 14990 Complete
Subtotal 29,592 0
Building Demolition and site clean-up
Shop Building 52875 Complete
OfTice building 68000 Complete
Fencing for LTSM 9560 Complete
Revegetation cost 22000 Complete
Subtotal: 152,435 0
Groundwater (analysis costs calculated through license tennination - 201 1)
iStabiTity monitoring - well sampHng 8676 On-going
Subtotal 14,446 14,446
Total—> 974,395 14,446
Site Management (10% - RSMeans) 97,440 1,445
Subtotal Reclamation Cost 1,071,835 15,891
Overtiead and Profit @ 10% 107,184 1,589
Subtotal 1,179,019 17,480
Contingency (15% of all costs) 176,853 2,622
Subtotal
LTSM Fee ($250K in 1978 $ adjusted )
1,355,871
750,000
20,102
810,000
Total Reclamation Cost 2,105,871 867,684
ATTACHMENT 2
STABILITY MONITORING DETAIL
Rio Algom Mining LLC
Lisbon Operation
Task -> Stability Monitoring - Groundwater
Annual costs are calculated outward until anticipated license tennination in 2011
Cost Description
1800 Labor - sampling/shipping. ($25/hr * 2 hr/well * 16 wells * 2.25 times/yr)
2988 Laboratory analysis (17 wells [data sets] * $83/well * 2.25 times/year)
957.6 Miscellaneous work tasks - data review, QA, reports (20% of items 1 and 2)
1.5 Number of years to perform sampling
16 Number of wells to be sampled (14 wells + 1 well twice/yr)
2 Time to sample well
4 Days to perform sampling event
2.25 Number of sample events per year
75 per diem for sampling technician
675 annual per diem for sampling
1.5 Number of years to perform sampling
1012.5 Total per diem
9630.9 Annual groundwater sampling cost
2011 Projected license termination date
14446.35 Total costs for groundwater monitoring through license termination (2011)