DRC-2010-006410 - 0901a068801ea513

State of Utah
GARY R. HERBERT
Governor
GREG BELL
Lieuteitaitt Governor
Department of
Environmental Quality
Amanija Smith
Executive Director
DIVISiON OF RADIATION CONTROL
Rusty Lundberg
Director
2010-00641
December 20, 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: November 23, 2010 DUSA Response Letter to November 16, 2010 DRC Request for
Information; March 3, 2010 DUSA Letter, 2010 Surety Update; Estimate Approval
We received the subject response letter from DUSA dated November 23, 2010 containing the most current
reclamation surety cost estimate. This information provides the final revision to the initial 2010 DUSA.
Surety Update dated March 3, 2010.
We have reviewed the calculations and hereby approve the annual revised estimate of $18,777,388. This
updated estimate constitutes a $2,969,959 increase from the previous approved surety amount of
$15,807,429. The increase was mainly due to the addition of costs for the following:
1. The reclamation and closure costs for Cell 4B,
2. Construction of a slimes drain evaporation pond,
3. Contractor general liability insurance,
4. Increases of some equipment hours and material quantities, and
5. Corresponding increases due to costs tied to percentage multipliers.
The latest approved surety estimate is included in the DUSA November 23, 2010 letter. It is labeled as
Attachment C to the White Mesa Mill Reclamation Plan, Revision 4.4, titled Revised Cost Estimates for the
Reclamation of the White Mesa Mill and Tailings Management System, dated November 2010.
Information supplied in this estimate show a total projected storage inventory of 189,941 tons, a decrease
of 33,423 tons, from the 2009 projected inventory estimate of 223,364 tons. The original DUSA surety
estimate of March 3, 2009 showed a total decrease in the estimated feedstock inventory.
195 North 1950 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]
wwiv.deq.utalt.gov
Printed on 100% recycled paper
Ms. Jo Ann Tischler
Page 2
We have enclosed t^yb summarizing spreadsheets, our 2009-2010 Reclamation Cost Estimate Comparison
Review Summary as well as our 2070 Conventional Ore and Alternate Feedstock Inventory Estimate, per
DUSA Supplied Volumes. The License for the facility limits the total conventional ore and alternate
feedstock inventory in storage to the estimated amounts covered by the approved surety (Condition
lO.l.D).
As you are aware, a performance assessment study on the tailings pond cover system titled the Denison
Mines (USA) Corp. Infdtration and Contamination Transport Modeling Report, White Mesa Mill Site,
Blanding, Utah is under review by the Division. Additionally, a license renewal application was received
by the DRC in March 2007, and is currently under agency review. The review of the reclamation plan is
an important part of this process. Based on the final outcome of the study, the license renewal process, and
review of the reclamation plan, the surety may need to be adjusted separately from the normal annual
renewal sequence.
In accordance with fMCR313-24-4 (10 CFR 40, Appendix A, Criteria 9 as incorporated by reference), you
must submit a replacement surety instrument consistent with the above approvals. Condition 9.5 of the
License requires that you submit corresponding written evidence of an adequate surety within 30-days of
receipt of this letter. If you have any questions, please contact Mr. Rupp at [phone].
UTAH RADIATION CONTROL BOARD
Rusty Lundberg, Executive Secretary
RL/dar
Enclosures
F:\drupp\wp\ DUSA\ Surety\2010-1 l\EstimateApproval 12-2010
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