DRC-2011-005799 - 0901a06880231ec5

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State of Utah
GARY R. HERBERT
Govemor
GREG BELL
Lieulenant Governor
May 19, 2011
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
011-00579
CERTIFIED MAIL
(Return Receipt Requested)
David C. Frydenlund, Vice President, Regulatory Affairs and Counsel
Denison Mines (USA) Corp.
1050 17'*' Street
Suite 950
Denver, CO 80265
Subject: Final Memorandum of Agreement, Revision 3 between DRC and Denison Mines
(USA) Corp. Regarding URS Services for the White Mesa Nitrate Contamination
Investigation Work Pl'an Review
Dear Mr. Frydenlund:
A copy of the Final and Executed Memorandum of Agreement between the Utah Division of
Radiation Control and Denison Mines (USA) Corp., Revision 3, is enclosed.
If you have any questions or concems regarding this transmittal, please contact Tom Rushing at
[phone].
Sincerely,
Rusty Lundberg, Director
Utah Division of Radiation Control
F:\DUSA\Nitrate Contamination lnvestigation\MOA for URS ServicesVRev. 3\FinaI Executed MOA Rev 3 Cover Ltr.doc
195 North 1950 Wesi • Salt Lake City, UT
Mailing Address: P.O. Box 144850 • Salt Lake City. UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
ii-wM-.deq.mnli.nor
Primed on 100'^ recycled p;ipcr
MEMORANDUM OF AGREEMENT
BETWEEN
UTAH DIVISION OF RADIATION CONTROL
AND
DENISON MINES (USA) CORP.
I. General
The Utah Division of Radiation Control (DRC) and Denison Mines (USA) Corp. (DUSA)
hereby enter into this Memorandum of Agreement (MOA).
^A. ©USA owns and operates a uranium mill tailings faciiity near Blanding, Utah.
B. This MOA pertains to project tasks associated with the following:
1) DUSA Nitrate Investigation Report dated December 30, 2009.
2) DRC Notice of Additional Required Action, dated October 5, 2010.
3) DRC / DUSA Tolling Agreement, dated December 15, 2010.
4) DRC / DUSA Tolling Agreement Rev 1, dated April 28, 2011.
5) DRC review ofthe DUSA February 18, 2011 "Work Plan and Schedule for
Supplemental Contaminant Investigation Report for White Mesa Mill Nitrate
Investigation."
6) DRC review of the DUSA Phase I (Including Phases 1 A through 1 C as outlined
in the Rev 1 Tolling Agreement) Work Plan for the White Mesa Uranium Mill
Nitrate Contamination Investigation due to DRC by May 6, 2011.
7) DRC review ofthe DUSA Phase 2 through 5 White Mesa Uranium Mill Nitrate
Contamination Investigation Work Plan and Completion Schedule due to DRC by
June 3, 2011
C. This agreement may be extended or modified to include other identified project tasks or
phases of activity, if expressly agreed to in writing by both parties to this agreement at
least 30 days prior to its expiration date,
D. Per discussion during a meeting between DRC and DUSA on Febmary 14, 2011
(Meeting), it was agreed that comments related to the initial work plan would be
submitted to DUSA by March 21, 2011. This is 30 days fi-om the submittal ofthe
amended initial work plan received by DRC on February 18, 2011. Therefore, item 4 of
the 12/15/2010 Tolling Agreement between DRC and DUSA was agreed to be March 21,
2011 instead March 15, 2011 based on agreements during that Meeting. DRC does
acknowledge that the original work plan was submitted on February 14, 2011, via hand
delivery during the Meeting; however, during the Meeting, it was identified that certain
revisions to one or more figures in the work plan were required and that laboratory
QA/QC issues associated with isotopic sample collection and analysis had not been
specifically addressed in the February 14, 2011 version. DUSA agreed to address these
issues in the amended work plan submitted on February 18, 2011.
The DRC provided DUSA with its comments regarding the February 18, 2011 Work Plan
in a March 21, 2011 URS Memorandum by e-mail on March 21, 2011 per agreements in
Revisions 1 and 2 of this MOA.
March 15, 2011 Page 1 of 6 Rev. 3
II. Duration
This MOA will become effective inunediately upon signature by DUSA and DRC.
This MOA will expire on August 1, 2011.
The DEQ fee schedule allows for reimbursement of actual costs of special projects.
III. Agreement
Per Revisions 1 and 2 of this MGA DRC agrees to:
A. Engage the services of URS Corporation to accomplish Phase 1 of the project under the
current contract (State Contract No. 116259), according to the agreed upon tasks and total
costs in Table 1, below
Table 1. URS Task and Cost Summar>^ For Phase 1 *
Task Description Hours
Attend 4 DWO Meetings 20
Review and discuss historical documents from DWQ website 48
Review the initial Work Plan and produce comments 36
Conduct two teleconference calls with the state DEQJDRC 7
Conduct one teleconference call with Denison Mines (USA) Corp. (approximately 7 work
days after review start) 5
Review the final work plan 7
Subcontract and payment for M. Singleton for isotopic analysis/review 6
Contract IDWA Management 12
Total Hours 141 ?
Total Cost f up to) $17,704
* Tasks and costs per an e-mail fi-om URS, received by DRC on 2/15/2011 (Included as
Attachment A of this MOA).
B. Provide DUSA with:
1) A telephone conference call with DRC and URS to share preliminary impressions and
observations regarding review of the initial work plan (to be arranged approximately
7 days after beginning work plan review).
March 15, 2011 Page 3 of 6 Rev. 3
Per additional discussion during a meefing between both parties in Salt Lake City, Utah
on April 13, 2011 to discuss the DRC comments for the February 18, 2011 Work Plan. A
subsequent meeting was held in Salt Lake City, Utah on April 20, 2011. During the April
20 Meefing, it was agreed by both parties that the Nitrate Invesfigafion field work would
be conducted in five (5) Phases. During the meefing, the DRC and DUSA discussed in
detail what Phase 1 would include and came to a consensus. Phase 1 will include three
(3) sub-phases, as follows:
Phase 1A - Geoprobe invesfigation of a possible natural nitrate salt reservoir in vadose
zone soils.
Phase IB - Geoprobe invesfigation of potential nitrate source locafions in the Mill site
area.
Phase 1C - Geoprobe invesfigation of other potential nitrate sources.
During the April 20 Meeting, the Co-Execufive Secretary and DUSA agreed that DUSA
would prepare and submit a Revised Work Plan for Phase 1A through C on or before
May 6, 2011. The DRC committed to give DUSA its comments for the Phase 1 Work
Plan on or before May 12,2011.
During the April 20 Meeting, it was agreed that as many as four other phases of study /
activity may be required as part of the nitrate invesfigafion. These were briefly discussed
in concept; and it was agreed that the possible remaining phases and activities could
include the following:
Phase 2 - Groundwater quality sampling and analysis of existing wells for non-isotopic
analytes, including, but not limited to submittal of a revised Quality Assurance Plan
(hereafter QAP) for all non-isotopic constituents not currenfiy found in the March 22,
2010 DUSA QAP (Rev 6).
Phase 3 - Deep bedrock core sampling and analysis at possible natural nitrate reservoir
and potential nitrate source locations, with similar objectives as Phase 1 A, B and C,
above.
Phase 4 - Stable isotopic sampling and analysis of groundwater in existing wells, with
details to be defined later, and approved by both parties.
Phase 5 - Isotopic soil sampling and analysis (if needed).
During the April 20 meeting, the Co-Execufive Secretary and DUSA agreed that DUSA
would prepare and submit a Revised Phase 2 through 5 Work Plan and Complefion Schedule
for Co-Execufive Secretary review and approval on or before June 3, 2011. DUSA also
committed to provide, as part of the Revised Phase 2 through 5 Work Plan, an inifial
Conceptual Site Model (hereafter CSM) to guide the Nitrate Investigafion. Both parties
agreed that the inifial CSM could be subject to revision as Phases 2 through 5 of the
investigation proceeded forward.
March 15,2011 Page 2 of 6 Rev. 3
2) A final report of findings (observafions and requests for additional information)
regarding the Revised Work Plan, on or before March 21, 2011, and,
3) Any URS invoices for services rendered on this project, including hours expended,
hourly rates and job classification of URS staff involved, and a breakdown ofany
other expenses incurred during project complefion.
C. Bill DUSA for URS work efforts expended in complefion of fhe total project for review
of the February 18, 2011 Work Plan Review (MOA Part I.B.5) and/or Attachment A, up
to $17,704. These costs are based on the work element and schedule assumptions found
in Table 1 above. This agreement may be amended, for any reason, after consent by both
parties.
Per Revision 3 of the MOA DRC Agrees to;
A. Engage the services of URS Corporafion to accomplish review of the project under the
current contract (State Contract No. 116259), according to the agreed upon tasks and total
costs in Attachment B of this Agreement
B. Bill DUSA for URS work efforts in completion of the current phased project (MOA Parts
I.B.6 and I.B.7), up to $14,209. These costs are based on fhe work elements and schedule
assumpfions found in Attachment B. This agreement may be amended, for any reason,
after consent by both parties.
DUSA Agrees to:
Provide DRC with timely payment of any invoice for URS Corporafion consulfing services
related to completion of the activities referenced above and/or included in Attachments A
andB.
SIGNATURES:
Rusty Lundbferg, Director ( J AufHorizep Representative
Division oLRfadiation Control Denison Mines (USA) Corp.
Date Date
F:\DUSA\Nitrate Contamination )nvesligadon\MOA for URS ServicesVRev. 3\Redline Rev. 3 Nitrate Work Plan MOA.doc
March 15,2011 Page4of6 Rev.3
Attachment A - Cost Estimates for URS by task and staff time
URS Scope of Work for UDRC: Review of Denison Mines Reports
EFFORT BY TASK
1) Attend 4 DWQ Meetings (2
meetings already attended)
2) Review and discuss
historical documents from
DWQ web site
3) Review draft work plan and
produce comments
4) Two Teleconferenoe calls
with state DWQ
6) One teleconference call wltii
Denison
6) Review final work plan 7
7) Suhoonfract and payment
for M Singleton for isotope
analysis consultation 6
8) Contract IDWA management 12
Total hours 141
Total Cost $ 17.704
Totals
20
48
36
7
5
EFFORT BY PERSON
Robert Baird
Paul Bitter
Jeremy Cox
M Singleton
Admin
Total hours
Total Cost
Totals
17
38
44
28
14
141
$17,704
March 15, 2011 Page 5 of6 Rev. 3
Attachment B - Cost Estimates for URS by task and staff time (MOA Parts LB.6 and LB.7)
DUSA NITRATE PLUME INVESTIGATION WORK PLAN; CONTINUING REVIEWS
URS^C Stc URS/)ESLC Total Labor ODCa Total SCHEDULE
TMk ActivHy B«lrd Admln-01 A(lmtn-02 Smoteton Tolal-EC Tol«l-IE Hotira Cost Ram Coat Coat Start Fin»ah
Second Meeting; UDRC S DUSA 4/2Q/11 4 2 3 A e 7 13 veniciB $61 Second Meeting; UDRC S DUSA 4/2Q/11
4" 2 3 4 0 0 6 13 $1,663 $51 $1,714
Review Phase 1 Work Plan
Review 2 3 1 . 0 c 6 m 5A) Submit Comments to UDRC 1 2 0 3 3 5A)
Teleconference with UDRC 2 1 3 3 3 6 9 6.-10 date apptpxtmnlc
Respond to UDRC Comments 1 2 2 3 S 6/10
dAte spfiroxvnnid Teleconference wrth UDRC A DUSA (essumed} 2 3 3 2 e 8 5/11 dAte spfiroxvnnid Teleconference wrth UDRC A DUSA (essumed}
6 1 13 1 0 7 24 31 $3,860 $3,880
Review Phase 11 - V Work Plan
Review 5 6 , 2 4 0 19 IS &i 6/15 Submit Comments to UDRC 3 5 4 0 12 1? 6/15
Teleoonferenoo with UDRC 2 2 3 3 2 4 B 1? 6,'20 O0to ajjpwxtmalo
Respond to UDRC Comments 2 1 3 2 2 C 8 e/7.2 datf approximittc Teleconference wilh UDRC & DUSA (assumed) ; 2 5 4 2 14 16 6/2!J datf approximittc Teleconference wilh UDRC & DUSA (assumed)
6 2 17 24 7 16 e 60 67 $8,616 $0 S8.015
Tola! (hi) 10 5 30 41 3 10 21 90 111
Rato $ 180 $ 63 $ 144 $ 96 % 48 $ IftO
$51 $ 14.209 Cost 5 2^ $ SI 4 $ 4.320 $ 3.S3C $ 144 % 2.580 s a.Itw S 10.U60 s 14.15a $14,156 $51 $ 14.209
March 15, 2011 Page 6 of 6 Rev. 3
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• SUBJECT: MAY 19, 2011 FINAL MEMORANDUM / TR
_ David C. Frydenlund
s< Vice President, Regulatory Affairs Counsel
Denison Mines (USA) Corp. (DUSA)
or 1050 Seventeenth Street, Suite 950
c; Denver, CO 80265