DRC-2011-007385 - 0901a06880270f7b

State of Utah
GARY R. HERBERT
GREG BELL
Lieutenant Govemor
Department of
Environmeiital Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
September 14, 2011
CERTIFIED MAIL
(Retum 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:
References:
a.
March 4, 2011 DUSA Letter Submitting 2011 Surety Update;
Retraction of NOED, Apology, Comments and Request for Information
The subject DUSA letter of March 4, 2011, submitting the DUSA 2011 Surety Estimate
Update. '
b. June 28, 2011 DRC Letter regarding non-submittal of surety estimate, containing a Notice
of Enforcement Discretion (NOED).
c. July 1, 2011 DUSA Letter regarding non-submittal of surety estimate.
DEQ received the subject DUSA letter, reference (a), dated March 4, 2011. This letter was not received by
DRC staff. Therefore DRG issued reference (b) in this regard. However, this letter was somehow
misplaced by DEQ in its mail routing system. When DUSA became aware of this error, reference (c) was
sent to DRC, to replace the missing original submittal.
Therefore, DRC hereby retracts reference (b), as the routing documents show that reference (a) was
actually delivered to the Department of Environmental Quality, but was somehow misplaced. We also
apologize for this error.
We have reviewed the subject letter, and have the following comments:
1. General Comment: Haul routes and times are sometimes referred to in various sections ofthe
estimate. Please provide a detailed table and maps^ which describe the haul routes, the haul route
numbers, distances, materials, and the total round trip haul times, which include the loading and
unloading times, for the various routes and materials to be transported. Adjust any affected costs
resulting from the new table values.
2. Mill Decommissioning Section. The "Conventional Ore Disposal" table in this section estimates
the stockpiled weight of the ore on site at 100 lbs. /cubic foot. This seems to be a low weight for
195 Norlh 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144850 • Salt Uke City, UT 84114-4850
Telephone [phone]'Fax [phone] * T.D.D. [phone] .
www.deq.utah.gov
Printed on lOO'^f recycled piiper •
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the conventional ore we have observed stockpiled on site. Please document the current average
stockpiled weight of the conventional ore on site, and apply this value in the "Conventional Ore
Disposal" portion of the estimate.
3. Cell 1 Section.
In the table of the title "Place Lower Random Fill" in this section, scraper, compactor, D8
dozer, and D7 dozer operator labor costs have been omitted in the portion of the table
provided. Please provide completed missing information for review.
4. Cell 2 Section.
a. The table of the title "Upper Random Fill" in this section, the table does not provide
operator labor costs for most of the power equipment operators. Please include the
missing information in the table.
b. A table of the title, "Rock Armor and Rip Rap Filter in this section, did not provide the
extended labor operation costs for the D7 dozer, waterwagon and motorgrader operators.
Please include these missing labor costs in this table.
5. Cell 3 Section.
a. The table of the title "Clay Layer" in this section does not have the operator labor costs
shown for most of the power equipment operators. Please include the missing information
in the table.
b. The table of the title "Upper Random Fill" in this section, as submitted, did not provide
operator labor costs for most of the power equipment operators. Please include the
missing information in the table.
c. A table of the title, "Rock Armor and Rip Rap Filter in this section, did not provide the
extended labor costs for the dozer, waterwagon and motorgrader operators. Please include
these missing labor costs in this table.
6. Miscellaneous Section.
a. In the Slimes Drain Evaporation Pond table, a 960,000 square foot pond is contemplated.
However, there is no budget for equipment or labor to install the liner, per se. That is the
equipment and labor to roll out, cut, seam, trim, patch, weld, and test the liner. Please
include this cost in the estimate.
b. Equipment Mobilization Table and the "Equipment Costs" Spread Sheet:
(i) . The "Equipment Costs" spread sheet, under the primary Mob/Demob column, do
not list the corresponding current freight charges, as shown in "Attachment A" of
the Feb. 16, 2011 letter from NCRL Leasing. This appears to total $348,850.
(ii) . The "Equipment Costs" spread sheet, The "Mobilization" cost for maintenance
support personnel is $35,600 each way for a total of $71,200, per the Feb. 16, 2011
letter from NCRL Leasing. This cost, and the amount from the above item, total
$420,050. This sum should appear on the first line of the Equipment Mobilization
Table, in the miscellaneous section of the estimate.
c. In the Management Support table, there are two line items, one for a part-time
Environmental Technician and one for Environmental Monitoring Lab Costs. In addition
to these budgeted amounts for environmental monitoring, the total should include any
separate unique monitoring costs required by the Annual Technical Evaluation Report
(ATER), the tailings cell dewatering elevations, surface water elevations and freeboard
monitoring as required by the DMT and BAT O&M plans, and other unique monitoring
outlined section 2.3 of approved Reclamation Plan 3.2. A single part-time technician will
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be unable to perform all of these tasks wiihout assistance. Please breakdown these costs to
demonstrate that all these monitoring costs (including all necessary technician labor hours)
are covered in the surety estimate.
Please review the above comments, and submit the requested information, including a final summary ofthe
adjusted costs. Per your email on September 13, 2011, you committed that DUSA would fully,respond to
the above within 45 calendar-days of receipt of this letter. If you have any questions on the above, please
Mr. David Rupp of my staff.
UTAH RADIATION CONTROL BOARD
Rusty Lundberg, Executive Secretary
RL/dar
Cc: Harold R. Roberts, Exec. V.P., DUSA
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RE: 8/14/11: retraction of NOED / DR
Jo Ann Tischler
Denison Mines (USA) Corp
1050 Seventeenth ST, STE 950
Denver, Co 80265
PS Form 3800, August 2006 See Reverse for Instructions