DRC-2009-006290 - 0901a0688014bd81

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State of Utah
GARY R. HERBERT
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CREti BELL
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Department of
Environmental Quality
Amanda Smitii
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D[\'1S10N OF RADIATION CONTROL
Dane L Fmerfrnck
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November 18. 2009
CERTIFIED MAIL
(Reiurn Receipt Requested)
Mr. Steven D. Landau
Manager of Env/ronmental Affairs
Denison Mines (USA) Corp. (DUSA)
1050 17'^ Street. Sie. 950
Denver. CO 80225
Dear Mr. Roberts:
SUBJECT: October 28, 2009 DRC Letter, Estimate Approval and Request for Evidence of Surety;
Correction of lhe Approved Surety Feedstock Tonnage Inventory Limit
On November 3. 2009 Mr. David Rupp of this office received a phone call from Mr, Harold Roberts of
DUSA. Mr. Roberts mentioned apparent errors on the tola! feedstock tonnage inventory limit reported by
DRC in our subject letter of October 28, 2009. Such tonnages are shown on both that letter and a summary
table (jttached lo the letter.
The latest DUSA estimate shows an anticipaled increase in the inventory limit for the combined feedstock
material in storage. This letter maintains the approved surely estimate at $15,807,429, but hereby corrects
the approved surety feedstock tonnage inventory Umit to 223,364 tons.
The latest surely estimaies supplied by DUSA dated July 27, 2009 and October 5, 2009 show a total
projected storage inventory of 223,364 tons, an increase of 87,544 tons over the 2008 projected inventory
eslimale (135,820 tons). The original DUSA surety estimale of March 3, 2009 showed a total decrease in
the estimated feedstock inventory.
The DRC letter of October 28, 2009 approved the latest DUSA surely estimate cost amount, but
erroneously showed the total feedstock tonnage inventory linait to be a decrease in tonnage, corresponding
to the original DUSA eshrnate of Match 3, 2009.
We have enclosed a corrected sunimary spreadsheet entitled Corrected 2009 Conveniional Ore and
.Mieniatc t'eedstock hivemor\- Estimate, per DUS.A Supplied Volumes. As you are aware, the License for
the facility limits the lotal conventional ore and alternate feedstock inventory in storage lo the estimated
amounts covered by the approved surely (Condition 10.I.D).
IfiS North 1<J^() West • Salt LaKf Cil>. L'T
Maihng Address P.U Bo^ 144350 • Salt Like City UT S4114-4e;30
Ttlt:phoncvS0l).T:-i6-4:^r,-Fax f«(lh ^"^1-4097 • P D D (SOt.i:i''f) 4414
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Page 2
Thi.s aclion does not change the approved surety amount of iJ 5,807,429, nor the date required for submittal
of a replacement surely instrument consistent wilh our approval letter of October 28, 2009. If you have
any questions on this issue, please contact Mr. Rupp at [phone].
ITAH RADIATION CONTROL BOARD
Dane L. Fineifrock, Executive Secretary
DLF/dar
Enclosure
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File Docujneiuuiii
Corrrected 2009 Conventional Ore and Alternate Feedstock Inventorv Estimate per DUSA Supplied Volumes
Conventional Ore Material CY
Year Source Volume
2007 Various Conventional Ores 37.037
2008 Various Conventional Ores S8.889
2009 Various Conventional Ores 148,148
Annu;il Prujecled Change 59,250
•'Toniiiige estimate biised on IOO pcf
Tonnage*
50,000 projected for 2007
120,000 projected for 2008
200,000 projected for 2009
80,000
1.35 estimated tons/cy
100 Estimated pcf
Below from Submitted Notes in Suretv Report:
Changed from original Feb 2009 estimate of 88,000 tons
Bulk (CY) Alternate Feed Material in Storage CY
Year Source Companv Volume Tonnage*
2006 Linde,Cabot,Molycorp,Heritage& Fausteel 43,743 59,053
2007 Unde,Cahot,Moiycorp,Herilage& Fansteel 41,638 56.211
2008 Cabot & Fansteel (FMRI) S,63i I 1.652
2009 Linrfe, Cabot <Si Fan.steeI(FMRI) 12,119 16.361
Annual Cliange .3,488 ,4,709
•''Tonnaae eslimiue based on 100 lbs/cubic foot
2009*
Unknown Units
5,184 Cabot 0,3-0.6% U308
as of 2/29/08 11,177 FMRI (fansteel). No Linde shown.
as of 1/31/09 : 16,361 Total Tons Match
'Pet Spread Sheel Submitted WMM Invenjoiy AccountingSui»mary
Cameco Barrels
Year Source Company
2006 Cameco Barrels
2007 Cameco Barrels
2008 Cameco & Honeywell Barrels
2009 Cameco & Honeywell Barrels
Annual Projected Chnnge
Number
Barrels Tonnaqe**
29,972 11,019
9,288 3,415
11.336 4.168
19.049 • 7.003
7,713 2,836
Anticipated .Alternate Feed Total Tonnage
Conventional Ore Anticipated Tonnage
TOTAL
23.364
200.000
223,364
('^mdCclJaiTels Cjkiiied. KE UF4 and Rcgcn ai I 247. 1.007, 202 atid 1X5 respectively.-
^'••"Tonnnjie cslnnate based on 100 lbs/cubic toot &. 55 gnl/barrel
Equivaleiii lo 7 .^5 cf/bniiel, 735 lbs. or 0.368 tons each
Combined Totals for Conventional Ore and Alternate Feed Materials
Year Source Companv
2007 Tonnage noted above, expected 2007
2008 Tonnage noted nbove, expected 2008
2(309 Tonnage noted above, expected 2009
Annual Change
Change in expected inventory on site
Number
N/A
N/A
Increase
Tonnaqe
109.626
135,820
223.364
87.544
87,544
tons
tons
ions TOTAL
Increase of total inventory from previous year expected.
tons