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Home My WebLink AboutDRC-2009-008037 - 0901a06880140985OENISON MINES August 26,2008 VIA OVERNIGHT DELIVERY Mr.Dane L.Finerlrock Director Division of Radiation Control Department of Environmental Quality 168 North 1950 West P.O Box 144850 Salt Lake City,UT 84114·4850 Denison Mines (USA)Corp. 1050 17th Street,Suite 950 Denver,CO 80265 USA Tel:303 628·7798 Fax:303389-4125 www.denisonmines.com Re:2008 Surety Update for the White Mesa Mill and Tailings Management System Dear Mr.Finerlrock: Attached please find the original of the Rider to Corporate Surety Bond,increasing the surety bond for reclamation of the White Mesa Mill and Tailings Management System from $12,576,428 to $15,017,129. If you have any questions please feel free to contact me at 303 389-4160. Yours very truly, Denison Mines (USA)Corp. /L#~~;(J-u Harold R.Roberts Executive Vice President -U.S.Operations cc:Ron F.Hochstein,wi enclosure David C.Frydenlund,wi enclosure Carol L.Marsala,wi enclosure Steven D.Landau,wlenclosure GENERAL SURETY RIDER To be attached and form a part of Type of Bond: Bond Number: Dated Effective: Executed by: and by: In Favor of: Reclamation February 24,2006 Denison Mines (USA)Corp.,as Principal National Union Fire Insurance Company of Pittsburgh,PA,as Surety State of Utah,Radiation Control Board In consideration ofthe mutual agreements herein contained,the Principal and Surety hereby consent to the following changes: Bond amount is increased from: Twelve Million Five Hundred Seventy Six Thousand Four Hundred Twenty Eight and 00/100----------------------($12,576,428.00)Dollars To: Fifteen Million Seventeen Thousand One Hundred Twenty Nine and 00/100-------------------------------------($15,017,129.00)Dollars. Nothing herein contained shall vary,alter or extend any provision or condition ofthis bond except as herein expressly stated. This rider is effective August 21,2008. Signed,sealed and dated this 21st August,2008. Denison Mines (USA)Corp. /~.~.- ---_._-~-~-._~.--.., By:.---<.~ National Union Fire Insurance Company of Pittsburgh,PA 11550 17th Street,Suite 600 Denver CO 80202.1657 ,...... ......•..........•.••~.... :.".......,:..'.:"."... .,..~c:~. JULIANAE.HALLENBECK . ...NOTARY PUBLIC.STATE.oF NEWYORK •. NO,O)HA6j~5671 •• OUALlFlm IN 880NX COUNTy···· MY COW1ISSIO"EXPIRES APRIL 18,..2009. ....... STATE OF NEWYOkk .•,. COUNTY OF NEW YOM·}ss,. :::.,:..'.:-:'.::':.::":' its true and I~~ful MtPm~y{~j~jn~FA~~'~ith·:frJ:j·atihorily:to-'e~ec~t~op,;iis ·b.e:b{\If:.:~~~:·;~lderta~gS,.r~o~i~~nces'~hd·9ili~I;;b9~ti~¢ts of 1~de'mnity and';:.. .wtitingg:o"biigatorY.tnWl~~~:ttife'tl1el!e'of;jssu~d iJit~~c6~,~..i?~:irs'bu~.\i.i~ss~·.fi¥fi~~~ind the'respec"ti:v:e:i?&iPpaiiy't~¢.r~J)Y:<·:,::.::".....,.....,............'.:::::',..""c::::.<.1-;"'"'J ".:"'.:.:,, IN WiTNES~..W~~E~9F;~.Aineri<;.an 1-lo~n~iASS:ui<1l~~~:r::OlJ;lpany a.~~Naffooal:W*lon Fii~:rnsuUi.J:iC:e Gq~np'~ljiOf~~itsburgJ~;'pAi)).ave .each e~~ci.ited the~.f!.pre~en$:::.::··;i:;::,.,-,:.;~.::.:.:,,:,I ,::-"',.:.'::':.,:.'••••::.::.:'.:"••'':.':.',,'.'.' ':'c:::::'-:"-::<,t1i~~j§~)~~~of;.:~~~~e~b·~i2QOt·;'./ ..:;":.(..;!.:·..·c:'.:-'.;~'..:...'.:.'.'-:':..'....:./:..>:/:: .··......;owEit O~ATT~RNEY.· .:.,..:....~...~.'...:::~<:.'.<{::.:::!>"c.'::·:':,.::>::.::.;.~;.\:i(...·}~A;; ~neri~~n ~~(jri'(~~As~:U~jtn~~..:C~Ji1PariY·:;::'.::'::':,::».<:'.:)::).,:/.:.: ¥~t~~~alpi!io~.;;~ir~~~.*su~~.?~~:Company ~.f.P.~ti~~b~~.g~?:~~.:..~,:: ~i~~~~p.al apJ.i(Offl.ce:ti$·W~tet;$£rl:;et,N.ew·Yof~J/¥dQQ~$:./:.'KN()WAL~~ENBYTJiJlS~pJiSENtS:•....•. .•..r:~~~::~~~~~~c~~~~~~~~p~T::pariy"~~e",YOrk co~oratijJ,al,~National U~lOn F\relnsu4rice601~r~nfl'i~sb~rg!l,I'A,~pcll~yi"~nIL •.•.. .:....,.·~~~k~b~~~·~L·~~heri,.S~.'~'M;Fj;X~Bradi~t-i,:J~fer.~~:£9:·~&if~i:~·~b,·~M~i~L:Mccol~:~m,R~8~ii~L·t~~i.t~:r)'.. .i,:~:·Shehi~~·1$.,Sh:aw;)ti~~t,~~.L~M~Qo~.~.~·:~:iie:.~~i.Wh.9,~·%.~.~t~:M(ttl~~ps.9n::'Q.f;Q~n:vel\'COiOl1tdQ1·~::·::.:.,. .....,.>........:...·qERTIFICA,TE·.:....•.....•..':,'•.•..•... Excipts ofResolutions u:dopte;<l"by th~:136ards ~.fDireCtbl's Of Amei-ican H9!ne A~su11lnce Company and·.Nat1omii Union fil:e'hlSurahcc,Company of Pittsburgh,PA.00 Mayl8,1976,···............................. .:..l/~~E:SOL~Eb,tha~til~.:CI:a.h~nafl;Qf:th~.Borir~,.~i~~resid:¢.nt;or a:J~v.i~~·p,~~i~e~t:J~,aj~d··'l~~reb;Is,~l.;tfi6riZ¢d)o appoji).rit~6i~eYS~ill:'~~~t·tQ:t'i~i'~~l1i .... and act for and olt.behalf6f:tbeCb1npany.to e;<eciW~bOllds~:'illidertaKiligs,re2"ogilizanc;es im((othCI::conttiicts othi~e.JiiitY-aiId writiiigs oi:i.liga-tory ill the'lmfure' thereof,and to'alja~h tileret6.·tlie c9d,ql.-atc sea(of.the'COll1ii·any,"~.the·tl:ansact.io~·ofits s~r.ety b'usiii6.ss;··.....'.'..-......-.,. ."RESQLYE~,.t~at ~~~;Sig~it~J'e'~:JIl:~~ttesta~i~·~s.OfSll~~of4ce~~:~i~ci.~he seal.~f~lici c91rip~ny\ni~'be affix.ed·to at~y s~';1:1~:~~~et:·jf ~t1o.;~~~.Ol::~~·a~;::' .'cerfirr~ate "el~t.i.rig:thel;~toJ;y'facsi~iln~,an.d '311Y s~ich:~qWel':of.Atto.tiley:or ·~ertifi.<int~:be$ji'lg si.Jcl{facs.finil~..~ig!iattu"es ot::(aC;$.imile'seal:shal!Qr;::valJd'and.:' binding upon.~e'Comp~~y'\'(h.e"il::s6,.?-.rflXe"4 wi~h.~esp:ec~.tQ':<inY:boiid,uiidertaki"ng,"recogqizalice and other contl'a"ct of~~4~~~.tyaJ~.d,~~·i.tjng obligatory u~.~I~~' nattu'e thereof;'..' . .'.. .:::-EIj~P~.t,~.0.Tu~k,Secre.t~ry:... .65166 (4/96) ..............,...."...'...'...'..;.'R~S~LVED,th~~a~l~S~~h ~ttomeY·in-F~9td~I;~eri~~:~·~~~~:~tari~~·~ert'ifi~~ti~'~:~;at.t4e;"for~gO~l~'r~s:oi·~tiOl;~:~~i:ii:b~'ineff~~til1ay'i'nse~'ill~lic1/'" 'celtfficatio'il th~date tl).e.reofi said d<.!te to be'.l)pt liif¢r th~fi the:'t4te of:d.elivet)(ih~~~cifby sii'¢l{Attq~1iey-:i~~Fa~t~!!::.....'...... ..... I>.Eli~alj6th.~,.:TJ~k::~'~~~:c~~~~ofA;iertca~'i)~~~:As~~~n·~·j't~m~~·i:Y al;~U~J~;i~nal Ul~ion F;;~~i;~:~i~~n~~''dpi~~~;~'y o.i";:i~~B~~~l,I~A:.:~6'h~;~bY certi;y'" ~I~at the foreg~i'ilg:y~erpt;r~~Resolutions adopted by th.e:B(?"~~~ls.!?f'piJ:7~c.tors .oftl~e~e ¢orpqt'~tio~s;aqd the.J;>oy.rers ofAttorney issued p!ll:Suant th~l'elo.are :l:1ue aild COlj'cct,and'that both..t!ie Resolutions \Ind the Powei'S.ofi\:tto01eY art:·in r~ll force:aild.:effej:;t.::.:..:'...,:."..:;NWITNE~~WHEREO",.r bave hereunto set my handa;:d .ffrxedthefaCSimlle;ealofeac~co;oratiOO·•...•..••.•.•••.•..•....••... tl1iQlst,l~yof August,2008. 2008 -2009 Surety Comparison Review Summary WHITE MESA MILL RECLAMATION COST SUMMARY DenliOn Mlnea (USA)Corp.(DUSA) February 2007 Compared to the Current Version ofJUly200& AS SUBMmED BY DUSA February JUly Change ,&aln &.tNl a:.uuo 1""'1U..,uMN IIUI~",_••,U.'..... 1 1 IflCIOIl8OS from equipmont,lueI.llUbcontts,and laborratao and <:orl\'llfIllOn ore MILL DECOMMISSIONING 1,799.5811 1,877,4141 77,833 .disposal wi1h areduetlon in cameco barrels andalternate feed volume. CELL 1 1,627,3601 1,755,3921 128,032 Increases from equipment,fuel.subcontts,and labor ratao. CELL 2 1.424.312 14797041 55.392 Increases from ~fuel,subcontts,and labor ratao. CELL3 1967681 1 872 9791 -94 702 Decrease from fill reduction,eastern downstream dike,due to constructed C8114A. CELL4A 27354 1 385 613\1.358.259 _cosls for the reclamation 01 the nev.ly I1lOOvated laiIinas cell MISC.(incIlodlngon"",""",,,,,,,moniloring)2,469,641 2.500,2641 30,643 Incr......for equip,fuel.sullc<iotrs,andlaborrates. SUBTOTAL 9,315,929 10,871,3861 1,555,457 Subtotals and diffllfence. PROFIT ALLOWANCE @ 10%931,5931 1,087.1391 155,546 Corraopondlngpercoolag<>product inc«lasedue to .ulJtotalincroase. CONTINGENCY @ 15%1,397,3891 1,630,7081 233,319 Correspooding perceolag<>productincrease due to s_increase. LICENSING &BONDING @ 2%186,3191 217,4281 31,109 Corresponding pen:oolag<>productincrease due tosulJtotalincrease. UDEQ Contract Admlnlatration @ 4%O(434,8551 434,855 Addllioo for uoeoto admlnlster the contraefs for reclamation. LONG TERM CARE FUND 745,1991 775,6131 30,414 Adjusted to Dec 2007 CPloU.Ratio based on CP~U currentl CPI·U December 1978. TOTAL RECLAMATION 12,576,428 15,017,1291 2,440,701 Total Surety and C/langa from 2007.