DRC-2012-001943 - 0901a0688030af90

State of Utah
GARY R HERBERT
Goverwor
GREG BELL
Lieutenant Governor
DRC
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
2012-001943
MEMORANDUM
TO
Through
FROM
DATE
SUBJECT
File
Phil Goble, Section Manager
Russell J Topham, P E
August 30, 2012
Notes from conference call regarding 2012 Surety, Energy Fuels (EF) uramum mill at
White Mesa, near Blanding, Utah
At 8 30 this moming, Harold Roberts and David Frydenlund of EF, new owners of the former Denison
uramum mill at White Mesa, joined Phil Goble and myself for a conference call to discuss outstanding
issues relative to the mill's Surety The discussion centered on two outstanding issues, as summanzed
below
1.0 Correlation of unit costs with an industry standard
In response to the annual Surety Submittal dated March 2, 2012, the UDRC sent EF a Request for
Information dated Apnl 19, 2012 (the RFI) seeking adjustment of unit costs in the Surety to align with the
RSMeans data set for heavy constmction During subsequent teleconferences and exchanges of
information, EF argued persuasively that the RSMeans database significantly overstated labor costs as
compared with those available through local employment agencies serving the constmction industry In
preparation to today's conference call Harold Roberts submitted an attached spreadsheet in an email The
information presented includes labor unit costs reflective of the higher of those currently paid at the White
Mesa mill, those available through the local employment agency, and those presented in the relevant
General Decision posted on the US Department of Labor website Dunng the conference call we agreed to
accept the labor rates as presented in the email attachment
2.0 Escalation of Contingency line item to 25% of direct costs ^
Dunng the conference call EF proposed escalating the Contingency line item from 15% to 25% in two
equal steps (5% each year) in the 2013 and 2014 Surety submittals This staging would allow time to adjust
corporate budgets without exposing the public to unreasonable risk
3.0 Next step
At the request of EF the UDRC will delay issuing a Confirmatory Action Letter and Surety Approval until
EF formally proposes the above resolution to the Apnl 19, 2012 RFI In the interim, the UDRC and EF
195 North 1950 West • Salt Uke City, UT
Mailing Address P O Box 144850 • Salt Uke City, UT 84114-4850
Telephone [phone] • Fax (801) 533^097 "TDD [phone]
www deq iilah gov
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Page 2
may exchange draft documents to allow for crafting of the document's wording to provide EF upper
management clanty over the agreements reached UDRC can expect a draft of the proposal by September
7, 2012