DRC-2011-002169 - 0901a06880208705

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State of Utah
GARY R. HERBERT
Gni'einor
GREG BELL
LieutenanI Governor
Department of
Environmental Quality
Amanda Smith
E.xecutive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Direcior
DRC-2011-002i69
February 28, 2011
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 between DRC and Denison Mines (USA) Corp.
Regarding URS Services for the White Mesa Nitrate Contamination Investigation
Work Plan 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. is enclosed.
If you have any questions or concems regarding this transmittal, please contact Tom Rushing at
[phone].
Sincerely,
RustY_UrHndberg\plrector
Utah Division of Radiation Contro
F:\DLlSA\Nitiate Contamination lnvestigation\MOA for URS ServicesNFinal Executed MOA.doc
105 North IQ50 West • Salt Lake City, UT
Mailing Address-. P.O. Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
i\ ^'w.(icq.Utah.fioy
Printed on lOO'*' recycled paper
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. DUSA owns and operates a uranium mill tailings facility 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 review of the DUSA February 18,2011 "Work Plan and Schedule for
Supplemental Contaminant Investigation Report for White Mesa Mill Nitrate
Investigation" (hereinafter "Work Plan"). Said DRC review shall hereafter be
referred to as Phase 1.
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 February 14, 2011
(Meeting), comments related to the initial work plan will be submitted to DUSA by
March 21, 2011. This is 30 days from the submittal of the amended initial work plan
received by DRC on February 18,2011. Therefore, item 4 ofthe 12/15/2010 Tolling
Agreement between DRC and DUSA will be March 21,2011 instead March 15,2011
based on agreements during the Meeting. DRC does acknowledge that the origineil 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.
II. Duration
This MOA will become effective immediately upon signature by DUSA and DRC.
This MOA will expire on June 21,2011.
The DEQ fee schedule allows for reimbursement of actual costs of special projects.
III. Agreement
DRC agrees to:
A. Engage the services of URS Corporation to accomplish Phase 1 of the project under the
current contract (State Contract No. 046317), according to the agreed upon tasks and total
costs in Table 1, below
February 17,2011 Page 1 of 4 Rev. 1
Table 1. URS Task and Cost Summary For Phase *
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 DEQ/DRC 7
Conduct one teleconrerence call with Denison Mines (USA) Corp. (approximately 7 work
days after review start) 5
Review the final work plan 7 . -. .
Subconttaa and payment for M. Singleton for isotopic analysis/review 6
Contiact IDWA Manaeement 12
Total Hours 141
Total Cost (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),
2) A final report of findings (observations 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 completion.
C. Bill DUSA for URS work efforts expended in completion of the total project, up to
$17,704. These costs are based on the work element and schedule assimiptions foiind in
Table 1 above. This agreement may be amended, for any reason, after consent by both
parties.
DUSA Agrees to:
Provide DRC with timely payment ofany invoice for URS Corporation consulting services
related to completion of the activities, referenced above.
February 17,2011 Page 2 of 4 Rev. 1
SIGNATURES:
Ru?mLundberg, iDireetpr
Div^ion of Raoiition Control
Date
Tlardld R. Roberts
Executive Vice President, US
Operations
Denison Mines (USA) Cqrjj.
Date
l-":\DUSA\Nitraie Conlaminaiion lnvcsttgalion\MOA for URS Scrvlccs\Nitraic Work Plan^MOA_dran,doc
February 17,2011 Page 3 of4 Rev. 1
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 Teieconference calls
with state DWQ
5) One teleconference call with
Denison
6) Review final work plan
7) Subcontract and payment
for M Singleton for isotope
analysis consultation
8) Contract IDWA management
Total hours
Totals
20
48
36
7
5
6
12
141
$117,704
EFFORT BY PERSON
Totals
Robert Baird
Paul Bitter
Jeremy Cox
M Singleton
Admin
Total hours
LloSilC<)8fc
17
38
44
28
14
141
February 17,2011 Page 4 of 4 Rev. 1