DRC-2015-002727 - 0901a0688053752f

Department of
Environmental Quality
Alan Matheson
Acting Executive Director
State of Utah DIVISION Ol RADIAI ION CON I ROI.
GARY R HI.RBF.R7
(iovernor
Rush I undberg
Director
SPI NCTRJ COX
Lieutenant (iovernor
DRC-2015-002727
June l. 2015
David C. Frydenlund
Sr. Vice President, General Counsel and Corporate Secretary
Energy Fuels Resources (USA) Inc.
225 Union Blvd. Suite 600
Lakewood, CO 80228
RF: Radioactive Materials License Number UT 1900479 and Groundwater Discharge Permit No.
UGW37004: Notice of Transaction and Request for Confirmation
Dear Mr. Frydenlund:
In a letter dated May 7. 2015, Energy Fuels Resources (USA) Inc. (EFRI) informed the Utah
Division of Radiation Control (DRC) of a pending business transaction where EFRI will be
acquiring Uraner/. Energy Corporation (Uraner/.). According to the Ulah Administration Code
Radioactive Material Licenses (RML) and Groundwater Discharge Permits (GWDP) control
cannot be transferred to another entity without consent from the Director of the DRC. In their
letter. EFRI stated that they did not need the DRC Director's consent for the Uranerz business
transaction because the transaction does not meet the definition of a direct or indirect transfer of
control ofthe White Mesa Uranium Mill's RML and GWDP. Iherefore, EFRI has requested a
confirmation from the DRC that a Director's consent to the transaction is not required.
In the Nuclear Regulator Commision's (NRC) NUREG 1556 Volume 15 Program-Specific
Guidance About Changes of Control and About Bankruptcy Involving Byproduct. Source, or
Special Nuclear Material Licenses, Section 5 Change of Control the definition of control is
defined as "fC]ontrol of a license is in the hands ofthe person or persons who are empowered to
decide when and how that license will be used." In addition to that definition it states, "A change
of ownership may be an example of a change of control, depending on whether the authority over
the license has transferred from one person to another. The transfer of stock or other assets is not
necessarily a change of control. The central issue is whether the authority over the license has
changed."
Based on the information provided by EFRI on the Uranerz transaction and the information
provided by the NRC on transfer of control of a RML in NUREG 1556 Volume 15. the DRC has
concluded that the Uranerz transaction does not meet the definition of a transfer of control. This
iys North 1951) West • Salt l.akeCih U I
Mailing Address P O Box 144850 • Salt Lake Cm. I I 84114-4850
lclcphone(801) 536-4250-lax(80l-533-40y7. ri)l) [phone]
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conclusion is due to the fact that Uranerz is not taking ownership or control of the White Mesa
Uranium Mill. Therefore, the DRC concurs with EFRI that Director consent is not required for
the Uranerz transaction. If you have any questions please contact Ryan Johnson at (801) 536-
4250 or at rmjohnson®utah.gov.
Sincerely.
Rusty Lundberg
Director