DRC-2012-002082 - 0901a068803151aa

DRC-2012-002082
Energy FUEIS Resources IU5HI Inc.
September 25,2012
VIA E-MAIL AND OVERNIGHT DELIVERY
Mr Rusty Lundberg
Du-ector, Division of Radiation Control
Utah Department of Environmental Quality
195 North 1950 West
P O Box 144850
Salt Lake City, UT 84114-4850
Re: Compliance - License Condition 9.5, Surety Update: Radioactive Materials License
UT1900479; DUSA White Mesa MUl; Request for Information
Dear Mr Lundberg
This letter supersedes and replaces the September 11,2012 letter sent to you regardmg this matter
Reference is made to the Apnl 19, 2012 Request for Information ("RFF') from the Director (the
"Director") ofthe State of Utah Division of Radiation Control ("DRC") relatmg to the Surety Update for
the White Mesa Mill (the "Mill") submitted to DRC on March 4, 2012, and to the response to the RFI by
Energy Fuels Resources (USA) Inc ("EFRP'), then named Demson Mines (USA) Corp , dated May 25,
2012 (the "May 25 Response")
In Item 4 of the RFI, you noted that License Condition 9 5 of the Mill's Radioactive Matenals License
UTl 900479 requires mclusion of a contmgency Ime item m the Surety estunate, and sets the minimum
value ofthe contmgency at 15%, which you noted is consistent with what is found in NUREG-1620, Rev
1 (Standard Review Plan for the Review of a Reclamation Plan for Mill Tailmgs Sites Under Title n of
the Uramum Mill Tailmgs Radiation Control Act of 1978) You also noted that, m accordance with these
requirements, EFRI has currently mcluded a contmgency Ime item m the Surety estimate m the amount of
15% However, you also stated that "given the mdustry's history of exceedmg surety budgets, the value
of 15% seems low, therefore, because of the uncertamty in contaimnation levels, waste disposal costs, and
other costs associated with decommissiomng, the cost estimate should apply a higher contmgency factor",
and requested that the contmgency Ime item be increased from 15% to 25%, citmg NUREG-1757 Vol 3
(Consolidated NMSS Decommissiomng Gmdance Fmancial Assurance, Record Keepmg, and
Timeliness), which recommends establishmg a 25% contmgency
In our May 25 Response, we noted that NUREG-1757 Vol 3 states specifically that it does not apply to
licensees, such as the Mill, that are subject to cntena 9 and 10 of Appendix A to 10 CFR Part 40, and that
NUREG-1620 is the applicable guidance on this matter We thus concluded that a 15% contmgency
should be considered to be an acceptable amount
These matters were discussed further by DRC staff and EFRI personnel dunng conference calls on June
28, July 25, August 14 and August 30, 2012 Dunng those calls, DRC staff advised that it does not agree
Energy Fuels Resources (USA) Inc 225 Union Boulevard, Suite 600
Lakewood, CO 80228 Phone [phone]
Letter to Rusty Lundberg
September 25,2012
Page 2 of2
with EFRI's conclusion that a 15% contmgency should be considered to be an acceptable amount, and
advised that all of the uramum mills, former uramum mills and mill tailmgs disposal facilities in the State
will be asked to mcrease the contmgency m their surety estimates to 25% DRC staff also advised that the
particular concems raised by the Director with respect to the Mill's Surety are potential imcertainties
relatmg to the costs of corrective action measures that will have to be unplemented if required with
respect to the chloroform and mtrate plumes at the Mill, to restore groundwater to the established site-
specific standards (mcludmg any altemate corrective action concentration limits) before the site is
transferred to the government for long-term custody
In order to address these concems, and on the basis that the Mill is treated similarly to all other nulls and
facilities m comparable circumstances, EFRI confirms that it will voluntanly mclude a contmgency
amount to the total cost amoimt for the final site closure contemplated by Article VII of Appendix C of
NUREG-1620 of 20% for the annual update to the surety amount to be submitted on or before March 4,
2013 (i e, an mcrease from the current 15% to 20%), and a contmgency amount of 25% for the aimual
update to the surety amount to be submitted on or before March 4, 2014 (i e, an increase from 20% to
25%)
While EFRI mamtains its position that NUREG-1757 Vol 3 is mapplicable and that a 15% contmgency
should be considered an acceptable amount imder NUREG-1620, it is voluntanly making the foregoing
commitment in order to address the Du-ector's concems
Please advise, by way of a Confirmatory Action Letter or otherwise, that you accept EFRI's commitment
descnbed above
If you have any questions or would like to discuss these matters fiirther, please contact me at your
convemence
Yours very tmly.
ENERGY FUELS RESOURCES (USA) INC.
By
Da^^d C "Frydenlund
Sr Vice President Regulatory Affau-s and General Counsel
cc Phihp Goble, DRC
Russ Topham, DRC
Stephen P Antony
Harold R Roberts
Jo Ann Tischler
Jeffrey L Vigil