DRC-2010-006001 - 0901a068801dcc7f

---LJt'J.i'"''
State of Utah
GARY R HERBERT
Ciini'iiiiii
GRECl BELL
LicliU'iuiin (iin i'niiir
Department of
Environmental Quality
Amanda Smith
Executive Dini l<ir
DIVISION OF RADIATION CONTROL
Riisl) Liindberg
Director
DRC-2010-006001
November 16. 2010
CERTIFIED MAIL
(Return Receipt Requested)
Ms. Jo Ann Tischler
Director, Compliance and Permitting
Denison Mines (USA) Corp. (DUSA)
1050 17"" Street, Ste. 950
Denver. CO 80225
Dear Ms. Tischler:
SUBJECT: October 15, 2010 DUSA Response Letter to September 23. 2010 DRC Request for
Information; March 3, 2010 DUSA Letter, 2010 Surety Update; November 10, 2010
Telephone Conversation between Messrs. Harold Roberts of DUSA and David Rupp;
Request for Information
We received the subject letter from DUSA dated October 15, 2010 to update the current surety. We have
reviewed this information and have a few brief comments, listed below:
A. Equipment Maintenance Hourly Rate. The fixed monthly equipment maintenance cost of
$65,430 provided by North Central Rental and Leasing (NCRL) is exclusively for the
machinery rented from NCRL. The subject DUSA letter of March 3, 2010, has an Equipment
Costs tab. An Equipment Costs spread sheet is provided under that tab. The first table in that
spread sheet shows a list of NCRL equipment hours totaling 2,992 hours per month. Thus, the
hourly rate for maintenance of the NCRL equipment would be $65,430/2,992 hours or $21.87
per hour.
However, DUSA used a figure of $20.57 per hour for the maintenance in the subject submittal
of October 15, 2010. The figure of $65,430 for NCRL equipment plus $759/month for
corresponding fuel monthly was divided by 3,218 hours. The 3,218 hours are an additional
226 hours greater than the 2,992 hours mentioned in the paragraph above. DRC requested that
DUSA please explain the use of 3,218 hours for the NCRL equipment rather than the 2,992
hours.
In the subject telephone conversation, Mr. Roberts stated he would adjust the hourly
maintenance cost by using 2,992 hours as the divisor to obtain the hourly cost.
B. Please assure the following items are included in the current surety estimate:
(1). The truck shop/barrel painting building south of the main entry road.
105 North 1950 West • Salt Lake City. UT
Mailing Address. P.O. Box 144850 • Salt Lake City. UT 841 14-4850
Telephone (801) 5.^6-4250 • Fax [phone] - T D D. (801) 5."C-44I4
\\\\w.{itq.{itnh.i:(iv
Printed on I00^/( recycled piiper
Ms. Jo Ann Tischler
Page 2
(2). The electrical/maintenance storage building south of the ore sample storage building.
In the same subject telephone conversation, Mr. Roberts stated he would include reclamation
costs for the truck shop and the electrical/maintenance storage building mentioned above.
We request you please review the above comments, and respond in writing, making any needed
conesponding adjustments to the surety estimate sheets, including a final summary of the adjusted costs.
Inasmuch as these comments are brief, we requested you respond fully to the above within 15-calendar
days of receipt. In your email dated November 10, 2010, you agreed to this schedule. If you have any
questions on the above, please contact me.
Since/ely,
David A. Rupp, P.E.
Geotechnical Services Section
DAR:dr
F:\drupp\wp\ IUC\ Siirety\2010\RFB 1 l-2010.doc