DRC-2012-002401 - 0901a06880325692

• -• LICENSING ACTION :ROUTING SHEET
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Ltcensee /Y&t.SJuauga;s (4$19). Iiuc. Ltcense # I.)T I ~oo¥79 Ltc Cat 2-.b
Pnonty RSO
Date Request Recetved
Action Requested Aws 3, zo,z ~
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,Expedite
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End Date
Action# ___ _
Amend# OS R.0'10
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Comments fov."l:; 3C, 1 "2-
2
Phase I Revtewed by Staff
Phase II Revtewed by Staff .~~ ~~J Gwyn
Conme
Conme
Dave John
Dave John ~2, ,CbQOSe t_HBrM ~ re~renca.t. ~M
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LICENSING ACTJOJ SUPE~ ~
Conductedby ~ ~~
Y N N/A C::ewat:t::mlts entrrety "
Y N N/ A Licensee name, address correct
y N
y N
N/A
N/A
Pnonty & hcense type correct
Exp1rahon date correct, database correct
Date
y N
y N
N/A
N/A
Items 6, 7, 8, & 9 correct, sub1tems match, locatiOns and uses
SS&D's venfied
y N N/A RSO correct, Database correct
y N N/A Authonzed users venfied, superv1s1on adequate
y N N/A Leak test procedures adequate & appropnate 3-yr, 1-yr, or Ra-226
~Licensee Name D Status
, )f Ad~~~ss -D ExpDate
D RSO D TermDate
D Category D Telephone
D Contact D FaxNumber
D Ema~l D Med Users
D NONE D Medlnfo
y N
y N
N/A
N/A
L C appropnate, L T, mventory, transportation, ventilation, pacemaker, IND's, non-rl..------------------'
Preceptors, or other medical certificates for trammg
y N N/A
y N N/A
y N N/A
y N N/A
y N N/A
y N N/A
y N N/A
y N NIA
y N N/A
y N N/A
y N N/A
y N N/A
y N N/A
DIS authonzed, waste procedures
ALARA
Dos1metry, b1oassy
Area momtonng, surveys, mstruments, calibration, adequacy of, openmg, ordenng, safe use RAM, emergency procedures
Incmerahon or other unusual authonzat10ns, etc
RSC, meetmg frequency, personnel, adequacy
Adrrumstrat!Ve procedures for Broad Scope Licenses
Techmcally well drafted
Appropnate license conditions used
License properly supported by mforrnatlon m file
Unusual lapse of hme between application and hcensmg
Compliance record considered
Application deficiencies corrected
Management Comments ~~ pi~,
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U.S. Postal ServiceiM
CERTIFIED MAIL™ RECEIPT
(Domestic Mail Only; No Insurance Coverage Provided)
For d«liverv Information visit our website at www.usps.come
0 F F i A L U S fc
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Postmar1<
8/24/12 amendment dated 8/3/12 / gg
David C Frydenlund
Vice President & General Counsel
Denison Mines (USA) Corp (DUSA)
445 Union Blvd Ste 121
LakewoodCO 80228-14239
PS Form 3«00. August 2006 See Reverse for Instructions
SENDER: COMPLETE THIS SECTION
Complete items 1,2, and 3 Also complete
Item 4 if Restncted Delivery is desired
Print your name and address on the reverse
so that we can return the card to you
Attach this card to the back of the maiipiece,
or on the front if space permits
COt/IPLETE THIS SECTION ON DELIVERY
8/24/12 amendment dated 8/3/12 / gg
David C Frydenlund
Vice President & General Counsel
Denison Mines (USA) Corp (DUSA)
445 Union Blvd Ste 121
LakewoodCO 80228-14239
ltem1?
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i delivery address different/l
If YES, enter delivery addreS
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(Transfer from service label) 7DD7 0710 OODO 7^^0 675^
PS Form 3811. February 2004 Domestic Return Receipt 102595-02-M-1540
State ofUtah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
CERTIFIED MAIL
Department of
Environmental Quahty
Amanda Sm1th
Execut1ve D1rector
DIVISION OF RADIATION CONTROL
Rusty Lundberg
D1rector
RETURN RECEIPT REQUIRED
August 24,2012
David Frydenlund
VIce President Regulatory Affairs and Counsel
Energy Fuels Resources (USA) Inc
225 Umon Boulevard, Smte 600
Lakewood, Colorado 80228
RE License Amendment as Requested m Letter Dated August 3, 2012 for Radioactive Matenal
License Number UT 19004 79, and Permit Modification as Requested m Letter Dated
August 14,2012 for Utah Ground Water Discharge Permit Number UGW370004
Dear Mr Frydenlund
Please find enclosed your Utah Radioactive Matenal License Amendment No 05 and the
modified Utah Ground Water Discharge Permit
If you have any questions or require clanfication concermng the amendment or modificatiOn, you
may contact us at [phone]
Smcerely,
~lu&~
Rusty Lundberg, Director
Division ofRad1at10n Control
Enclosure
RL/geg
195 North 1950 West • Salt Lake C1ty, UT
Ma1 hng Address P 0 Box 144850 • Salt Lake C1ty, UT 84114-4850
Telephone [phone] • Fax [phone] • T D D [phone]
www deq utah gov
Pnnted on I 00% recycled paper
DRC-03
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
Pursuant to Utah Code Ann Title 19, Chapter 3 and the Radiation Control Rules, Utah
Administrative Code R313, and in reliance on statements and representations heretofore made by
the licensee designated below, a license is hereby issued authonzing such licensee to transfer,
receive, possess and use the radioactive matenal designated below, and to use such radioactive
matenal for the purpose(s) and at the place(s) designated below. This licensee is subject to all
applicable rules, and orders now or hereafter in effect and to any conditions specified below
LICENSEE
Name
3 License Number UT 1900479
Amendment # 05
4 Expiration Date
March 31,2007
(under timely renewal)
5 License Category - 2-b
Energy Fuels Resources (USA)
Inc
2 Address 225 Union Boulevard, Suite 600
Lakewood, CO 80228
6 Radioactive matenal
(element and mass
number)
A Natural Uranium
Chemical and/or physical 8
form
Any
Maximum quantity
licensee may possess at
any one time
Unlimited
SECTION 9: ADMINISTRATIVE CONDITIONS
9 1 The authonzed place of use shall be the licensee's White Mesa uranium milling facility,
6425 Highway 191, Blanding, Utah Mill process and wastewater storage and tailings
disposal shall be limited to existing engineenng design, construction, and operation of
Tailings Cells 1, 2, 3, 4A and 4B, as authonzed in Part ID ofthe Groimd Water Discharge
Permit No UGW370004 (hereafter Permit), issued by the Director, Utah Division of
Radiation Control New construction of any tailings disposal embankments is prohibited
until after the reclamation plan is approved by the Director of the Utah Division of
Radiation Control (Director)
9 2 All wntten notices and reports to the Director required under this license, with the exception
of incident and event notifications under R313-15-1202 and R313-19-50 requmng telephone
notification, shall be addressed to the Director, Utah Division of Radiation Control, Utah
Department of Environmental Quality, 195 North 1950 West, P O Box 144850, Salt Lake
City, UT 84114-4850
DRC-03
Page 2 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
Incident and event notifications that require telephone notification shall be made to the
Director at [phone] dunng normal business hours or after hours to the DEQ Duty
Officer at [phone]
9 3 RESERVED [License Condition moved to SECTION 13 CLOSE OUT CONDITION]
9 4 A The licensee may, without pnor Director-approval, and subject to the
conditions specified m Part B of this condition
(1) Make changes in the facility or process, as presented m the application
(2) Make changes m the procedures presented in the application
(3) Conduct tests or expenments not presented in the application
B The licensee shall file an apphcation for an amendment to the license, unless the
following conditions are satisfied
(1) The change, test, or expenment does not conflict with any requirement
specifically stated in this hcense, or impair the licensee's ability to meet all
apphcable regulations
(2) There is no degradation in the essential safety or environmental commitments
in the license application or provided by the approved reclamation plan
(3) The change, test, or expenment is consistent with the conclusions of actions
analyzed and selected in the Environmental Assessment dated February
1997
C The licensee's determinations concermng Part B of this condition shall be made by a
"Safety and Environmental Review Panel (SERP) " The SERP shall consist of a
minimum of three individuals One member of the SERP shall have expertise m
management and shall be responsible for managenal and financial approval changes,
one member shall have expertise in operations and/or construction and shall have
responsibility for implementing any operational changes; and, one member shall be
the corporate radiation safety officer (CRSO) or equivalent, with the responsibility
of assunng changes conform to radiation safety and environmental requirements
Additional members may be included in the SERP as appropnate, to address
technical aspects such as health physics, groundwater hydrology, surface-water
hydrology, specific earth sciences, and other techmcal disciplines Temporary
members or permanent members, other than the three above-specified individuals,
may be consultants
D The licensee shall maintain records of any changes made pursuant to this condition
imtil license termination These records shall include vmtten safety and
DRC-03
Page 3 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
environmental evaluations, made by the SERP, that provide the basis for determining
that changes are m compliance with the requirements refened to m Part B of this
condition The licensee shall furmsh, m an annual report to the Director, a
descnption of such changes, tests, or expenments, including a summary of the safety
and environmental evaluation of each In addition, the licensee shall annually submit
to the Director changed pages to the Operations Plan and Reclamation Plan of the
approved license application to reflect changes made under this condition Annual
reports shall address the previous calendar year and be submitted no later than March
31 each year
The licensee's SERP shall function in accordance with the standard operating
procedures submitted by letter to the NRC dated June 10,1997
[Applicable NRC Amendments 3] [Applicable UDRC Amendment 3]
9 5 The licensee shall at all times maintain a financial surety, approved by the Director,
consistent with UAC R313-24-4 (lOCFR 40, Appendix A, Cntena 9 and 10, as incorporated
by reference), that is adequate to cover the estimated costs, accomplished by a third party,
for decommissioning and decontamination of the mill and mill site, reclamation of any
tailings or waste disposal areas, groundwater restoration as warranted, and the long-term
surveillance fee. The Licensee is prohibited from use and/or operation of any tailmgs
disposal cell, or related new permanent fixture or facility not akeady accounted for by the
currently approved surety, without pnor submittal and Director approval of wntten evidence
of adequate financial surety Within 60 calendar days of Director approval of a revised
reclamation/decommissioning plan, the licensee shall submit wntten evidence of an
adequate surety regarding the newly approved plan.
Annual updates to the surety amount, required by UAC R313-24-4 (10 CFR 40,
Appendix A, Cntena 9 and 10, as incorporated by reference), shall be submitted for Director
approval by March 4 of each year Within 30 calendar days of Director approval of an
annual update of surety cost estimates, the licensee shall submit wntten evidence of
adequate surety for Director approval
Along with each proposed revision or annual update, the licensee shall submit supporting
documentation showing a breakdown of the costs and the basis for the cost estimates with
adjustments for inflation, maintenance of a mmimum 15 percent contingency fee, changes in
engineenng plans, activities performed and any other conditions affecting estimated costs
for site closure The basis for the cost estimate is the current Director-approved
reclamation/decommissioning plan or Director-approved revisions to the plan and guidance
contained in NUREG-1620, "Standard Review Plan for the Review of a Reclamation Plan
for Mill Tailings Sites under Title II of the Uranium Mill Tailings Radiation Control Act of
1978 "
DRC-03
Page 4 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
The currently approved surety instrument, a Performance Bond issued by National Umon
Fire Insurance Company in favor of the Director, and the associated Standby Trust
Agreement, shall be continuously maintained by the Licensee in an amount not less than the
amount currently approved by the Director pursuant to the requirements of UAC R313-24-4
(10 CFR 40, Appendix A, Cntena 9 and 10 as incorporated by reference)
[Applicable NRC Amendments 2, 3, 5, 13, 15, 19, 21, 23, 24, 25]
[Applicable UDRC Amendment 1][Applicable UDRC Amendment 3]
9 6 Standard operatmg procedures (SOPs) shall be established and followed for all operational
process activities involving radioactive matenals that are handled, processed, or stored
SOPs for operational activities shall enumerate pertinent radiation safety practices to be
followed Additionally, vmtten procedures shall be established for non-operational activities
to include m-plant and environmental momtonng, bioassay analyses, and instrument
calibrations An up-to-date copy of each wntten procedure shall be kept m the mill area to
which it applies
All wntten procedures for both operational and non-operational activities shall be reviewed
and approved in writing by the radiation safety officer (RSO) before implementation and
whenever a change m procedure is proposed to ensure that proper radiation protection
pnnciples are being applied In addition, tiie RSO shall perform a documented review of all
existing operating procedures at least annually
9 7 As per the Memorandum of Agreement (MOA) negotiated by the Utah State Histonc
Preservation Officer (SHPO), the Advisory Council on Histonc Preservation (ACHP), the
NRC and Energy Fuels Nuclear Inc (EFN) and ratified on August 20, 1979 and as amended
on May 3,1983 and substantially as implemented in NRC License SUA-1358
Before engaging in any activity not previously assessed by the Director, the licensee shall
administer a cultural resource inventory. AIL disturbances associated with the proposed
development will be completed m compliance with the National Histonc Preservation Act
(as amended) and its implementing regulations, and the Archaeological Resources
Protection Act (as amended) and its implementing regulations
In order to ensure that no unapproved disturbance of cultural resources occurs, any work
resulting m the discovery of previously unknown cultural artifacts shall cease The artifacts
shall be mventoned and evaluated in accordance with the National Histonc Preservation Act
(as amended), and no disturbance shall occur until the licensee has received authonzation
from the Director to proceed
DRC-03
Page 5 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
The licensee shall avoid by project design, where feasible, the archaeological sites
designated "contnbuting" in the report submitted by letter to the NRC dated July 28, 1988
When it IS not feasible to avoid a site designated "contnbuting" m the report, the licensee
shall institute a data recovery program for that site based on the research design submitted
by letter from C E Baker of Energy Fuels Nuclear to Mr. Melvm T. Smith, Utah State
Histonc Preservation Officer (SHPO), dated Apnl 13, 1981
The licensee shall recover through archaeological excavation all "contnbuting" sites listed in
the report which are located m or within 100 feet of borrow areas, stockpile areas,
construction areas, or the penmeter of the reclaimed tailings impoundment Data recovery
fieldwork at each site meeting these cntena shall be completed pnor to the start of any
project related disturbance within 100 feet of the site, but analysis and report preparation
need not be complete
Additionally, the licensee shall conduct such testmg as is required to enable the Director to
determine if those sites designated as "Undetermined" in the report and located within
100 feet of present or known future construction areas are of such significance to warrant
their redesignation as "contnbuting " In all cases, such testing shall be completed before any
aspect of the undertaking affects a site
Archaeological contractors shall be approved in wntmg by the Utah SHPO The Utah SHPO
will approve an archaeological contractor who meets the minimum standards of the State of
Utah as the pnncipal investigator
9 8 The licensee is hereby authonzed to possess byproduct matenal m the form of uranium
waste tailings and other uramum byproduct waste generated by the licensee's milling
operations authonzed by this license. Mill tailings shall not be transferred from the site
without specific pnor approval of the Director in the form of a license amendment The
licensee shall mamtain a permanent record of all transfers made under the provisions of this
condition
9.9 The licensee is hereby exempted from the requirements of R313-15-902(5) for areas within
the mill, provided that all entrances to the mill are conspicuously posted in accordance with
R313-15-902(5) and with the words, "Any area within this mill may contain radioactive
matenal"
9 10 Release of equipment or packages from the restncted area shall be in accordance with the
NRC "Guidelines for Decontamination of Facilities and Equipment Pnor to Release for
Unrestncted Use or Termination of Licenses for Byproduct, Source, or Special Nuclear
Matenal," dated May 1987, or suitable altemative procedures approved by the Director pnor
to any such release
DRC-03
Page 6 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
9 11 Updated Reclamation Plan and Specifications - the licensee shall complete and submit an
updated Reclamation Plan and Specifications for the White Mesa Mill Facility, for Director
approval on or before June 30, 2010 The plan and specifications shall include information
identified m this condition and information that is adequate for determimng financial surety
requirements for the White Mesa Mill with all tailings management cells, including Cells
4A and 4B, and any new features or facilities that are constructed m conjunction with
operation of Cells 4A and 4B Said Reclamation Plan and specifications shall be approved
by the Director before disposal of any tailings or wastewater in Cell 4B The updated
reclamation plan shall revise the information contained in the Reclamation Plan Revision
3 0 submitted to the NRC on July 17, 2000, and an update to Rev 3 0 of the Reclamation
Plan that was prepared by the Licensee July 25, 2008, and approved on August 4, 2008 (now
referred to as Rev 3 1) After revision of Rev 3 1, the updated Reclamation Plan shall be
referred to as Rev 3 2, and shall contain the following information
A Information pertaining to the design and use of Cells 4A and 4B for tailings
management/disposal, including information on the design of the final top cap(s),
and design of the final cap side slopes including rock sizing and fill depth, and the
estimated quantities of matenals required for final cover construction and final
erosion protection, adequate for assessing the needs of the associated financial surety
based on currently approved Cover design extended to include Cell 4B,
B Estimated costs for constructing the final cover system and for installing final
stormwater control systems for the tailings management cells, including Cells 4A
and 4B, following completion of tailings management operations,
C Information on reclamation activities required for reclaiming any new permanent
fixtures or facilities that have been installed or are contemplated to be constructed in
conjunction with construction and operation of Cells 4A and 4B, and the financial
surety needs associated therewith, and
D Information demonstrating the adequacy ofthe long-term care fund with respect to
the White Mesa Mill Facility that includes consideration of Cells 4A and 4B, the
final cover and drainage systems associated with these cells and any other new
structure or facility installed or contemplated to be constructed m conjunction with
the construction and operation of these two cells
[Applicable UDRC Amendment 4]
SECTION 10: OPERATIONAL CONTROLS, LIMITS, AND RESTRICTIONS
10 1 A The mill production rate shall not exceed 4380 tons of yellowcake per year
DRC-03
Page 7 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
B The licensee may not dispose of any matenal on site that is not "byproduct matenal,"
as that term is defined in 42 U S C Section 2014(e)(2) (Atomic Energy Act of 1953,
Section 11(e)(2))
C The licensee may not receive or process any altemate feed matenal without first
applying for and obtaming approval of a license amendment For any such proposal,
the licensee shall demonstrate that it will comply with Condition 10 1(B) Any such
demonstration shall include
(1) Demonstration of compliance with the NRC Regulatory Summary 2000-23
Recent Changes to Uranium Recovery Policy, November 30, 2000, and
(2) Demonstration ofy compliance with the November 22, 1999 Protocol for
Determimng Whether Altemate Feed Matenals are Listed Hazardous Wastes,
as approved by the Utah Division of Solid and Hazardous Waste on
December 7, 1999
D Maximum quantities of feed matenal stored on the mill site, including altemate feed
matenals or other ores, shall not exceed the total matenal storage quantity found m
the cunently approved mill surety pursuant to License Condition 9 5, without pnor
approval ofthe Director
E The licensee may not receive any altemate feed matenals or other ores if those
matenals would cause the facility to exceed the tailings cell disposal capacity
established by the currently approved reclamation plan and/or the annual surety
report required by License Conditions 9 11, and 9 5, respectively, without pnor
approval of the Director
[Applicable UDRC Amendment 2]
10 2 All liquid effluents from mill process buildings, with the exception of samtary wastes, shall
be retumed to the mill circuit or discharged to the tailings impoundment.
10 3 Freeboard limits, stormwater and wastewater management for the tailings cells shall be
determined as follows
A The Freeboard limit for Cell 1 shall be set annually in accordance with the
procedures set out in Section 3 0 to Appendix E of the previously approved NRC
license application, including the January 10, 1990 Drainage Report Discharge of
any surface water or wastewater from Cell 1 is expressly prohibited
DRC-03
Page 8 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
B The freeboard limit for Cells 3, 4A, and 4B shall be recalculated annually m
accordance with the procedures approved by the Director Said calculations for
freeboard limits shall be submitted as part of the Annual Technical Evaluation
Report (ATER), as descnbed in Condition 12 3 below
C The discharge of any surface water, stormwater or wastewater from Cells 3, 4A, and
4B shall only be through an Director authonzed spillway structure
[Applicable NRC Amendment 16] [Applicable UDRC Amendment 3] [Applicable
UDRC Amendment 4]
10 4 Disposal of matenal and equipment generated at the mill site shall be conducted as
descnbed in the licensee's submittals to the NRC dated December 12, 1994 and May 23,
1995, with the following addition
A The maximum lift thickness for matenals placed over tailings shall be less than 4-
feet thick Subsequent lifts shall be less than 2-feet thick Each lift shall be
compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times pnor
to placement of subsequent lifts
10 5 In accordance with the licensee's submittal to the NRC dated May 20, 1993, the hcensee is
hereby authonzed to dispose of byproduct matenal generated at licensed in-situ leach (ISL)
facilities, subject to the following conditions
A Disposal of ISL waste is limited to 5000 cubic yards from a single source
B All ISL contaminated equipment shall be dismantled, crushed, or sectioned to
mimmize void spaces Barrels containing waste other than soil or sludges shall be
emptied mto the disposal area and the barrels crushed Barrels containing soil or
sludges shall be venfied by the Licensee to be full pnor to disposal Barrels not
completely full shall be filled with tailings or soil pnor to disposal
C All ISL waste shall be buned m Cell No 3 unless pnor wntten approval is obtained
from the Director for altemate bunal locations
D All disposal activities shall be documented and records thereof mamtamed on-site.
The documentation shall include descnptions of the ISL waste and the disposal
locations, as well as all actions required by this License condition
E The licensee shall also submit for Director approval a revised wntten Standard
Operating Procedure (SOP) for ISL disposal on or before December 1, 2010 The
DRC-03
Page 9 of20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
revised SOP shall descnbe the documentation required for ISL disposal, which shall
include but is not limited to the following,
(1) The matenal disposal area must be located on a tailings beach area of the
disposal cell or on an area of the cell that is underlain by tailings sands,
(2) The elevation of the matenal disposal area will not exceed the plane or grade
of the elevations of the uppermost flexible membrane liner of the tailings
cell,
(3) Such ISL byproduct matenal will be segregated from any mill matenal and
equipment disposed of in the cells pursuant to License Condition 10 4, and
the ISL byproduct matenal from each in-situ leach source will be segregated
from the byproduct material from all other in-situ leach sources,
(4) Absence of void space mside barrels disposed, including physical venfication
before disposal, and
(5) Detailed engineenng drawings which demonstrate
a There are at least 4 feet of tailings sands under the bottom of each
disposal area, and
b The bottom of each disposal area is located at least 12 feet from the
sides or dikes of the tailings cell
F The Licensee shall notify the Director m vmtmg at least 7 calendar days pnor to the
proposed scheduled date for disposal of any byproduct matenal generated at ISL
facilities in the tailings cells
An annual summary of the amounts of waste disposed of from off-site ISL
generators shall be sent to the Director on or before November 1 of each calendar
year.
[Applicable UDRC Amendment 4]
10 6 The licensee is authonzed to receive and process source matenals from the Allied Signal
Corporation's Metropolis, fllmois, facility in accordance with the amendment request to the
NRC dated June 15, 1993
10 7 The licensee is authonzed to receive and process source matenal from Allied Signal, Inc of
Metropolis, fllmois, in accordance with the amendment request to the NRC dated September
20, 1996, and amended by letters to the NRC dated October 30, 1996 and November 11,
1996
10 8 The licensee is authonzed to receive and process source matenal, in accordance with the
amendment request to the NRC dated March 5, 1997
DRC-03
Page 10 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
[Applicable NRC Amendments 1]
10 9 The licensee is authonzed to receive and process source matenal from Cabot Performance
Matenals' facility near Boyertown, Pennsylvania, in accordance with the amendment
request to the NRC dated Apnl 3, 1997, as amended by submittals to the NRC dated May
19, 1997 and August 6, 1997
[Applicable NRC Amendments 4]
10 10 The licensee is authonzed to receive and process source matenal from the Ashland 2
Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonawanda,
New York, in accordance with the amendment request to the NRC dated May 8, 1998, as
amended by the submittals to the NRC dated May 27, 1998, June 3, 1998, and June 11,
1998
[Applicable NRC Amendments 6]
1011 The licensee is authonzed to receive and process source matenal from Cameco
Corporation's Blind River and Port Hope facilities, located m Ontano, Canada, in
accordance with the amendment request to the NRC dated June 4, 1998, and by the
submittals to the NRC dated September 14, 1998, September 16, 1998, September 25, 1998,
October 7,1998, and October 8,1998
However, the licensee is not authonzed to receive or process from these facilities, the
crushed carbon anodes identified in these submittals, either as a separate matenal or mixed
in with matenal already approved for receipt or processing.
10 12 The licensee is authonzed to receive and process source matenal from the Ashland 1 and
Seaway Area D Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located
near Tonowanda, New York, in accordance with statements, representations, and
commitments contained in the amendment request to the NRC dated October 15, 1998, as
amended by letters to the NRC dated November 23, 1998, November 24, 1998, December
23,1998, January 11, 1999, January 27,1999, and February 1, 1999
[Applicable NRC Amendment 10]
10 13 The hcensee is authonzed to receive and process source matenal from the St Louis
Formerly Utilized Sites Remedial Action Program (FUSRAP) site, m accordance with
statements, representations, and commitments contained m the amendment request to the
NRC dated March 2, 1999, and as amended and supplemented by submittals dated June 21,
1999, June 29, 1999 (2), and July 8, 1999 Pnor to the licensee receiving matenals from the
St Louis FUSRAP site, the licensee must make a determination that adequate tailings space
IS available for the tailings produced from the processing of this matenal This
determination shall be made based on a SERP approved intemal procedure
DRC-03
Page 11 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
[Applicable NRC Amendments 13, 14]
10 14 The licensee is authonzed to receive and process source matenal from the Lmde Formerly
Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements,
representations, and commitments contained in the NRC amendment request dated March
16, 2000, and as amended and supplemented by submittals dated Apnl 26, 2000, May 15,
2000, June 16, 2000, June 19, 2000, and June 23, 2000
Pnor to the licensee receiving matenals from the Lmde FUSRAP site, the licensee must
make a determination that adequate tailings space is available for the tailings produced from
the processing of this matenal This determination shall be made based on a SERP-approved
mtemal procedure. Design changes to the cells or the reclamation plan require the licensee
to submit an amendment request for Director review and approval
Pnor to the licensee receiving matenals from the Linde FUSRAP site, the licensee must
require that the generator of the matenal certify that the matenal does not contain listed
hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per
a Radioactive Matenal Profile Record
[Applicable NRC Amendment 14]
10 15 The licensee is authonzed to receive and process source matenal from the W R Grace site
located in Chattanooga, Tennessee, m accordance with statements, representations, and
commitments contained m the amendment request to the NRC dated Apnl 12, 2000, as
amended and supplemented by submittals dated Apnl 24, 2000, Apnl 26, 2000, May 5,
2000, November 16, 2000, and December 18, 2000.
Pnor to the licensee receiving matenals from the W.R. Grace site, the licensee must make a
determination that adequate tailings space is available for the tailings produced from the
processing of this matenal. This determination shall be made based on the SERP-approved
standard operating procedure for determination of tailings capacity Design changes to the
cells or the reclamation plan require the licensee to submit an amendment request for
Director review and approval
Pnor to the licensee receiving matenals from the W R Grace site, the licensee must require
that the generator of the matenal certify that the matenal does not contain listed hazardous
waste as defined under the Resource Conservation and Recovery Act (RCRA) per a
Radioactive Matenal Profile Record
[Applicable NRC Amendment 17]
10 16 The licensee is authonzed to receive and process source matenal from the Hentage Minerals
Incorporated site, m accordance with statements, representations, and commitments
DRC-03
Page 12 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
contained in the amendment request to the NRC dated July 5, 2000, and as supplemented by
submittals dated November 16,2000, and December 18, 2000
Pnor to the licensee receiving matenals from the Hentage Minerals Incorporated site, the
licensee must make a determination that adequate tailings space is available for the tailings
produced from the processing of this matenal This determination shall be made based on
the SERP-approved standard operating procedure for determination of tailings capacity
Design changes to the cells or the reclamation plan require the licensee to submit an
amendment request for Director review and approval
Pnor to the licensee receiving matenals from the Hentage Mmerals Incorporated site, the
licensee must require that the generator of the matenal certify that the matenal does not
contain listed hazardous waste as defined under the Resource Conservation and Recovery
Act (RCRA) per a Radioactive Matenal Profile Record
[Applicable NRC Amendment 18]
10 17 The licensee is authonzed to receive and process source matenal from the Molycorp site
located m Mountain Pass, Califorma, m accordance with statements, representations, and
commitments contained m the amendment request to the NRC dated December 19, 2000,
and supplemental information in letters dated January 29, 2001, February 2, 2001, March
20, 2001, August 15,2001, October 17,2001, and November 16,2001
Pnor to the licensee receiving matenals from the Molycorp site, the licensee must make a
determination that adequate tailings space is available for the tailings produced from the
processing of this matenal This determmation shall be made based on a SERP-approved
intemal procedure Design changes to the cells or the reclamation plan require the licensee
to submit an amendment request for Director review and approval
[Applicable NRC Amendment 20]
10 18 The licensee is authonzed to receive and process source matenal from the Maywood site
located m Maywood, New Jersey, in accordance with statements, representations, and
commitments contained in the amendment requests to the NRC dated June 15, 2001, June
22, 2001, August 3, 2001, and supplemented by letters dated November 19, 2001, December
6,2001, December 10, 2001, March 11, 2002, and July 1, 2002
Pnor to the licensee receivmg matenals from the Maywood site, the licensee must make a
determination that adequate tailings space is available for the tailings produced from the
processing of this matenal This determination shall be made based on a SERP-approved
intemal procedure If such determination requires the licensee to make design changes to the
cells or the reclamation plan, the licensee shall submit an amendment request for Director
review and approval
DRC-03
Page 13 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
Pnor to the licensee receiving matenals from the Maywood site, the licensee must require
that the generator of the matenal certify that the matenal does not contain listed hazardous
waste as defined under the Resource Conservation and Recovery Act (RCRA) per a
Radioactive Matenal Profile Record
[Applicable NRC Amendment 22]
10 19 The licensee is authonzed to receive and process source matenal from Ponds 2 and 3 ofthe
FMRI's Muskogee Facility located in Muskogee, Oklahoma, in accordance with statements,
representations, and commitments contamed in the amendment requests and submittals to
the Director dated March 7, 2005, June 22, 2005, and Apnl 28, 2006
[Applicable UDRC Amendment 2]
SECTION 11: MONITORING, RECORDING, AND BOOKKEEPING REQUIREMENTS
111 The results of sampling, analyses, surveys and momtonng, the results of calibration of
equipment, reports on audits and inspections, all meetings and traimng courses required by
this license and any subsequent reviews, investigations, and corrective actions, shall be
documented Unless otherwise specified in the State of Utah regulations all such
documentation shall be maintained for a penod of at least five (5) years
112 The licensee shall implement the effluent and environmental monitonng program specified
m Section 5 5 of the renewal application, as amended by the submittal to the NRC dated
June 8,1995, and as revised with the following modifications or additions'
A Stack sampling shall include a determination of flow rate
B Surface water samples shall also be analyzed semiarmually for total and dissolved
U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall
be sampled annually for water or sediments and analyzed as above A sediment
sample shall not be taken in place of a water sample unless a water sample was not
available
C Groundwater sampling shall be conducted in accordance with the requirements in the
Utah Ground Water Discharge Permit No UGW370004
D With the exception of groundwater sampling the licensee shall utilize lower limits of
detection m accordance with Section 5 of the NRC Regulatory Guide 4 14, as
amended, for analysis of effluent and environmental samples
DRC-03
Page 14 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
E The inspections performed semiannually of the cntical onfice assembly committed
to in the submittal to the NRC dated March 15, 1986, shall be documented The
cntical onfice assembly shall be calibrated at least every 2 years against a positive
displacement Roots meter to obtain the required calibration curve
[Applicable NRC Amendment 5][Applicable UDRC Amendment 3]
113 The licensee shall implement a momtonng program of the leak detection systems for
disposal Cells 4A and 4B m accordance with requirements of the Ground Water Discharge
Permit The licensee shall implement a monitonng program of the leak detection systems for
disposal Cells 1, 2, and 3 as follows
A The licensee shall measure and record the "depth to fluid" in each of the tailings
disposal cell standpipes on a weekly basis If sufficient fluid is present in the leak
detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to
the extent reasonably possible, and record the volume of fluid recovered Any fluid
pumped from an LDS shall be retumed to a disposal cell
If fluid IS pumped from an LDS, the licensee shall calculate the flow rate by dividing
the recorded volume of fluid recovered by the elapsed time since fluid was last
pumped or increases in the LDS fluid levels were recorded, whichever is the more
recent The licensee shall document the results of this calculation
B Upon the mitial pumping of fluid from an LDS, the licensee shall collect a fluid
sample and analyze the fluid for pH and the parameters listed m paragraph A of this
license condition The licensee shall determine whether the LDS fluid ongmated
from the disposal cell by ascertaining if the collected fluid contains elevated levels of
the constituents listed in paragraph A of this hcense condition or has a pH level less
than 5 0 If either elevated constituent levels or a pH less than 5.0 is observed, the
licensee shall assume that the disposal cell is the ongin of the fluid
If the LDS fluid is determined not to have ongmated from the disposal cell, the
licensee shall continue with weekly measurements of "depth to fluid" in the LDS
standpipes The licensee shall confirm, on an aimual basis, that fluid from the
disposal cell has not entered the LDS by collecting (to the extent possible) and
analyzing an LDS fluid sample for the above stated parameters
C Upon indication that the LDS fluids ongmated from the disposal cell, the licensee
shall determine the flow rate through the liner by the calculation method in
paragraph B of this license condition If the flow rate is equal to or greater than one
gallon per minute, the licensee shall
DRC-03
Page 15 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
(1) Evaluate the cause of the liner distress and take appropnate and timely
actions to mitigate the leak and any consequent potential impacts,
(2) Continue to measure and record LDS "depth to fluid" measurements weekly,
and
(3) Notify the Director by telephone within 48 hours, in accordance with License
Condition 9 2, and submit a wntten report within 30 calendar days of
notifying the Director by telephone, in accordance with License Condition
9 2 The vmtten report shall include a descnption of the mitigative action(s)
taken and a discussion of the mitigative action results
If the calculated flow rate is less than one gallon per minute, the licensee shall
continue with weekly measurements of "depth to fluid" in the LDS standpipes
D All sampling, analysis, and evaluation of LDS fluids shall be documented and
retained onsite until license termination for Director inspection
[Applicable NRC Amendment 8] [Applicable UDRC Amendment 3] [Applicable
UDRC Amendment 4]
114 Annually, the licensee shall collect, dunng mill operations, a set of air samples covenng
eight hours of sampling, at a high collection flow rate (i.e , greater than or equal to 40 liters
per minute), m routinely or frequently occupied areas of the mill These samples shall be
analyzed for gross alpha. In addition, with each change in mill feed matenal or at least
annually, the licensee shall analyze the mill feed or production product for U-nat, Th-230,
Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent
composition of air sample particulates
[Applicable NRC Amendment 7]
115 Calibration of in-plant air and radiation momtonng equipment shall be performed as
specified in the license renewal application, under Section 3 0 of the "Radiation Protection
Procedures Manual," with the exception that in-plant air sampling equipment shall be
calibrated at least quarterly and air sampling equipment checks shall be documented
116 The licensee shall perform an annual ALARA audit of the radiation safety program in
accordance with the NRC Regulatory Guide 8 31
117 Settlement Momtonng Standard Operating Procedure - the licensee shall submit for Director
approval a wntten Settlement Monitonng Standard Operating Procedure (SOP) on or before
December 1, 2010 The proposed SOP shall descnbe methods for momtonng vertical
settlement in the tailings management cell areas and for recording and documenting
settlement monitonng data and companng such data to previous data to track potential
settlement All data collected by the Licensee for these purposes shall be included in an
DRC-03
Page 16 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
annual report to be submitted to the Director, pursuant to License Condition 12 3 The SOP
shall also
A Require that settlement monitors (e g, settlement stands) be promptly installed
following placement of temporary cover over placed tailings,
B Require installation of one or more representative settlement monitonng stand(s)
above each ISL source disposal area that has been closed to further disposal pursuant
to License Condition 10 5 A There shall be at least one settlement monitonng stand
for each ISL source disposal area, estimated to be about 22,500 square feet
Installation of said settlement monitonng stand and imtial elevation survey shall be
completed by the Licensee withm 30 calendar days of completion of each ISL source
disposal area For ISL source disposal areas or trenches completed before Apnl 1,
2010 the Licensee shall install the required settlement stand(s) and complete the
initial elevation survey pnor to June 1, 2010,
C Indicate that the licensee will utilize settlement momtonng devices and methods that
are resistant to shifting in their positions as a result of such forces as frost heave,
erosion, burrowmg ammals, or other environmental factors,
D Include provisions to prevent man-caused damage to settlement momtonng devices,
including, but not limited to vehicle and constmction traffic damage Such measures
will include 1) all equipment, procedures, and provisions needed to protect said
settlement monitonng devices, 2) schedules for rapid verbal and wntten reporting of
any such damage, and 3) corrective actions taken or to be taken by the Licensee to
replace and/or repair said devices,
E Indicate that settlement momtors will be
(1) Imtially surveyed by a Utah Licensed Professional Land Surveyor withm, 30
calendar days of installation,
(2) Surveyed monthly, and
(3) Surveyed aimually by a Utah Licensed Land Surveyor Review of the data
and an analysis shall be performed and certified by a Utah Licensed
Professional Engineer and submitted annually as part of the ATER required
by License Condition 12 3,
F Include procedures requinng that such settlement monitors be placed, surveyed,
mapped, and maintained, that conective action and maintenance activities be
performed to maintain existing monitonng devices m a reliable, good working
condition, as needed, that the addition, surveying and mapping of new settlement
DRC-03
Page 17 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
monitonng devices installed be documented, and that records be made of
observations of site conditions as they relate to the conditions at and m the vicinity
ofthe installed monitonng devices,
G Provide quantitative performance cntena and descnbe how such cntena will be used
to evaluate vertical movement,
H Indicate that any settlement monitonng device that is irreparably damaged as a result
of environmental stresses or through man-caused contact, including but not limited
to cell construction or other operational equipment, shall be promptly replaced with
an identical or equivalent monitonng device, and provisions provided to guide the
interpretation of data from both the former and the replacement device,
I Indicate that where survey evidence suggests that significant apparent movement in a
settlement monitor has occurred, m excess of the approved performance cntena, that
the departure(s) will be investigated and explained, and errors corrected and resolved
in a timely manner, subject to Director approval,
J Indicate that photographs shall be taken of the momtonng areas at least annually to
document site and device conditions Additionally, the SOP shall indicate that
" photographs shall be taken following any instances of unusually severe weather or
incidents involving equipment if they result in physical damage or disturbance to any
settlement momtonng device, or sigmficant changes to the ground surface areas
adjacent to or smrounding a settlement or displacement momtonng device,
K Include a list of records that will be prepared for documenting settlement data for
each settlement momtonng device and related site observations and activities, and
L. Indicate that results and records of settlement monitonng shall be submitted annually
as part of the ATER required by License Condition 12 3.
[Applicable UDRC Amendment 4]
118 Movement (Displacement) Monitonng Standard Operating Procedure - the licensee shall
submit for Director approval a wntten Movement Momtonng Standard Operating Procedure
(SOP) on or before December 1, 2010 The proposed SOP shall descnbe methods for
momtonng potential vertical and honzontal movements in the constmcted dike portions of
the tailings management cells, and for recording and documenting displacement momtonng
data and companng such data to previous data to track potential movement (displacement)
All data collected by the Licensee for these purposes shall be included in an aimual report to
be submitted to the Director, pursuant to License Condition 12 3 The SOP shall also
DRC-03
Page 18 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
A Require that movement monuments be promptly installed following completion of
constmction of cell dikes,
B Indicate that the licensee will utilize movement monuments and momtonng methods
that are resistant to shifting in their positions as a result of such forces as frost heave,
erosion, bunowing animals, or other environmental factors,
C Include an obligation for the Licensee to prevent man-caused damage to movement
monuments, including, but not limited to vehicle and constmction traffic damage
Such measures will include 1) all equipment, procedures, provisions need to protect
said settlement monitonng devices, 2) schedules for rapid verbal and wntten
reporting of any such damage, and 3) corrective actions taken or to be taken by the
Licensee to replace and/or repair said devices,
D Indicate that movement monuments will be
(1) Initially surveyed by a Utah Licensed Land Surveyor within 30 calendar days
of installation,
(2) Surveyed semi-annually for the first three years following installation by a
Utah Licensed Land Surveyor
(3) Surveyed annually after the first three years by a Utah Licensed Land
Surveyor
(4) Subjected to accelerated momtonng conducted under certain circumstances,
at a frequency and in a manner approved by the Director, and
(5) Reviewed annually by a Utah Licensed Professional Engineer, who shall
perform and certify an analysis of all survey data This analysis shall be
submitted pursuant to License Condition 12 3,
E. Include procedures requinng that such movement monuments be placed, surveyed,
mapped, and maintained, that corrective action and maintenance activities be
performed to maintain existing movement monuments in a reliable, good working
condition, as needed, that the addition, surveying and mapping of new movement
monuments installed be documented, and that records be made of observations of
site conditions as they relate to the conditions at and in the vicimty of the installed
monuments,
F Provide quantitative performance cntena and descnbe how such cntena will be used
to evaluate movements (displacements),
G Indicate that any movement monument that is irreparably damaged as a result of
environmental stresses or through man-caused contact, including but not limited to
DRC-03
Page 19 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
cell constmction or other operational equipment, shall be promptly replaced with an
identical or equivalent movement monument, and provisions provided to guide the
interpretation of data from both the former and the replacement device,
H Include a list of records that will be prepared for documenting movement
(displacement) data for each movement monument and related site observations and
activities, and
I Indicate that results and records of movements (displacements) shall be submitted
annually as part of the ATER required by License Condition 12 3
[Applicable UDRC Amendment 4]
SECTION 12: REPORTING REQUIREMENTS
12 1 DELETED by NRC Amendment 13
[Applicable NRC Amendment 13]
12 2 The licensee shall submit a detailed decommissioning plan to the Director at least twelve
(12) months pnor to planned final shutdown of mill operations that includes a detailed
Quality Assurance Plan The plan will be in accordance with NRC Regulatory Guide 4 15,
"Quality Assurance for Radiological Monitonng Programs" and NUREG-1575, "Multi-
Agency Radiation Survey and Site Investigation Manual (MARSSIM)" or equivalent most
current guidance
[Applicable NRC Amendment 13][Applicable UDRC Amendment 1]
[Applicable UDRC Amendment 2]
12 3 Annual Techmcal Evaluation Report (ATER) - the licensee shall submit an ATER for
Director approval no later than November 15, of each year, to coincide with the annual
freeboard calculation date of November 1^* of each year when using the new Freeboard Calculation
Method, as descnbed in the letter from David A Rupp of the Utah Division of Radiation Control to
Mr David C Frydenlund of Denison Mines (USA) Corp, dated Apnl 29,2010 Each ATER shall
incorporate all documents and attachments, includmg applicable updates to previously
submitted documents with attachments that support information presented in the ATER,
including, but not limited to maps, drawings, tables, and figures The licensee shall mclude,
as part of the ATER, results of tailings cell temporary cover settlement and dike
displacement monitonng activities. The content of the tailings cell temporary cover
settlement and displacement momtonng program related information shall include those
records required under the Settlement Monitonng and Movement Monitonng SOPs (License
Conditions 11 7 and 11 8), as approved by the Director
[Applicable UDRC Amendment 4]
DRC-03
Page 20 of 20
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
SECTION 13: CLOSEOUT CONDITION
13 1 Except as specifically provided otherwise by this license, the licensee shall conduct
operations in accordance with the statements, representations, and procedures contained m
the documents, including any enclosures, listed below Whenever the word "will" is used in
the documents referenced below, it shall denote a requirement The Utah Radiation Control
Rules shall govern unless the statements, representations, and procedures m the licensee's
application and correspondence are more restnctive than the mles *
A Licensee's Standby Tmst Agreement, as amended,
B Licensee's letter to the NRC dated August 23, 1991 (including the license renewal
application),
C Licensee's revision submitted to NRC January 13, 1992,
D Licensee's revision submitted to NRC Apnl 7,1992,
E Licensee's revision submitted to NRC November 22, 1994,
F Licensee's revision submitted to NRC July 27,1995,
G Licensee's revision submitted to NRC December 13, 1996,
H Licensee's revision submitted to NRC December 31, 1996,
I Licensee's revision submitted to NRC January 30, 1997
J Licensee's letter dated May 25, 2012 (Transfer of Control)
K Licensee's letter dated June 27, 2012 (Transfer of Control)
L Director's Letter dated Jime 27, 2012 (Transfer of Control Approval)
M Licensee's letter dated August 3,2012 (Name Change)
N Electromc Mail from David Frydenlund dated August 15, 2012 (Change Maihng
Address)
* For 13 1 B through 13 II-NRC Amendment 2,
For 13 1 J through 13 1 N- UDRC Amendment 5
UTAH DIVISION OF RADIATION CONTROL
Rusty Lundjberg, Director \ \ Date
DRC-0403
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
Pursuant to Utah Code Ann Title 19, Chapter 3 and the Radiation Control Rules, Utah
Administrative Code R313, and in reliance on statements and representations heretofore made by
the licensee designated below, a license is hereby issued authonzing such licensee to transfer,
receive, possess and use the radioactive matenal designated below, and to use such radioactive
matenal for the purpose(s) and at the place(s) designated below This licensee is subject to all
applicable mles, and orders now or hereafter m effect and to any conditions specified below
LICENSEE ) 3 LicenseNumberUT 1900479
) Amendment # 0405
1 Name Energy Fuels Resources (USA) ^*******************************
Inc Denison Mines (USA) ) 4 Expiration Date
Gei^ )
2 Address 225 Umon Boulevard, Suite 600 ) March 31,2007
Lakewood, CO 802286425 Highway (under timely renewal)
P O Box 809 ) 5 License Category-2-b
Standing, UT 81511 )
6 Radioactive matenal 7 Chemical and/or physical 8 Maximum quantity
(element and mass form licensee may possess at
number) any one time
A Natural Uranium A Any A Unlimited
SECTION 9: ADMINISTRATIVE CONDITIONS
9 1 The authonzed place of use shall be the licensee's White Mesa uramum milling facility,
located m San Juan Countv6425 Highway 191, Blanding, Utah Mill process and wastewater
storage and taihngs disposal shall be hmited to existing engineenng design, constmction,
and operation of Tailings Cells I, 2, 3, 4A and 4B, as authonzed m Part I D of the Ground
Water Discharge Permit No UGW3 70004 (hereafter Permit), issued bv the Director, Utah
Division of Radiation Control New constmction of any taihngs disposal embankments is
prolnbited until after the reclamation plan is approved by the Director of the Utah Division
of Radiation Control (Director)
I 9 2 All wntten notices and reports to the Executive SecretarvDirector required under this
license, with the exception of incident and event notifications under R313-15-1202 and
R313-19-50 requinng telephone notification, shall be addressed to the Executive
SecretanDirector, Utah Division of Radiation Control Board, Utah Department of
DRC-0403
Page 2 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
Environmental Quality, 448-195 North 1950 West, P O Box 144850, Salt Lake City, UT
84114-4850
Incident and event notifications that require telephone notification shall be made to the
Executive Secretary^Director at [phone] dunng normal business hours or after hours
to the DEQ Duty Officer at [phone]
9 3 RESERVED [License Condition moved to SECTION 13 CLOSE OUT CONDITIONI
9-^ RESERVED [License Condition moved to Section 13 Close out Condition]
The licensee shall conduct operations m accordance with statements, representations, and
conditions contained m the license renewal application submitted by letter to the NRC dated
August 23, 1991, as revised by submittals to the NRC dated Januarys 13, 1992 and Apnl 7,
1992, Novombor 22, 1991, July 27, 1995 Docombor 13, 1996, and Deccmbor 31, 1996, and
January 30, 1997, which are heieby mcorporated by reference, and for the Standby Trust
Agreement, as amended, except where superseded by license conditions below
Whenever the word "will" is used in the above referenced documents, it shall denote a
requirement
[Applicable NRC Amendment 2]
9 4 A The licensee may, without pnor Executive SecretarvDirector-approval, and
subject to the conditions specified in Part B of this condition
(1) Make changes in the facility or process, as presented in the application
(2) Make changes in the procedures presented in the application
(3) Conduct tests or expenments not presented in the application.
B The licensee shall file an application for an amendment to the license, unless the
following conditions are satisfied
(1) The change, test, or expenment does not conflict with any requirement
specifically stated in this license, or impair the licensee's abihty to meet all
applicable regulations
(2) There is no degradation in the essential safety or environmental commitments
in the license application or provided by the approved reclamation plan
(3) The change, test, or expenment is consistent with the conclusions of actions
analyzed and selected in the Environmental Assessment dated Febmary
1997
C The licensee's determinations concermng Part B of this condition shall be made by a
"Safety and Environmental Review Panel (SERP)" The SERP shall consist of a
DRC-0403
Page 3 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
mimmum of three individuals One member of the SERP shall have expertise in
management and shall be responsible for managenal and financial approval changes,
one member shall have expertise in operations and/or constmction and shall have
responsibility for implementing any operational changes, and, one member shall be
the corporate radiation safety officer (CRSO) or equivalent, with the responsibility
of assunng changes conform to radiation safety and environmental requirements
Additional members may be included in the SERP as appropnate, to address
technical aspects such as health physics, groundwater hydrology, surface-water
hydrology, specific earth sciences, and other technical disciplines Temporary
members or permanent members, other than the three above-specified individuals,
may be consultants
D The licensee shall maintain records of any changes made pursuant to this condition
until license termination. These records shall include wntten safety and
environmental evaluations, made by the SERP, that provide the basis for determining
that changes are in compliance with the requirements referred to in Part B of this
condition The licensee shall furnish, in an annual report to the Executive
SecretarvDirector, a descnption of such changes, tests, or expenments, including a
summary of the safety and environmental evaluation of each In addition, the
licensee shall annually submit to the Executive SecretarvDirector changed pages to
the Operations Plan and Reclamation Plan of the approved license application to
reflect changes made under this condition Annual reports shall address the previous
calendar year and be submitted no later than March 31 each year
The licensee's SERP shall function in accordance with the standard operating
procedures submitted by letter to the NRC dated June 10,1997
[Applicable NRC Amendments 3] [Applicable UDRC Amendment 3]
9 5 The licensee shall at all times maintain a financial surety, approved by the Executive
SecretarvDirector, consistent with UAC R313-24-4 (lOCFR 40, Appendix A, Cntena 9 and
10, as incorporated by reference), that is adequate to cover the estimated costs,
accomplished by a third party, for decommissioning and decontamination of the mill and
mill site, reclamation of any tailings or waste disposal areas, groundwater restoration as
wananted, and the long-term surveillance fee The Licensee is prohibited from use and/or
operation of any tailings disposal cell, or related new permanent fixture or facility not
already accounted for by the cunently approved surety, without pnor submittal and
Executive SecretarvDirector approval of wntten evidence of adequate financial surety
Within 60 calendar days of Executive—SecretarvDirector approval of a revised
reclamation/decommissiomng plan, the licensee shall submit vmtten evidence of an
adequate surety regarding the newly approved plan
DRC-0403
Page 4 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
Annual updates to the surety amount, required by UAC R313-24-4 (10 CFR 40,
Appendix A, Cntena 9 and 10, as incorporated by reference), shall be submitted for
Executive SecretarvDirector approval by March 4 of each year Withm 30 calendar days of
Executive SocrotaryDirector approval of an annual update of surety cost estimates, the
licensee shall submit wntten evidence of adequate surety for Executive SecretaryDirector
approval
Along with each proposed revision or annual update, the licensee shall submit supporting
documentation showing a breakdown of the costs and the basis for the cost estimates with
adjustments for inflation, maintenance of a mimmum 15 percent contingency fee, changes in
engineenng plans, activities performed and any other conditions affecting estimated costs
for site closure The basis for the cost estimate is the cmrent Executive SecretarvDirector-
approved reclamation/decommissioning plan or Executive SecretarvDirector-approved
revisions to the plan and guidance contained m NUREG-1620, "Standard Review Plan for
the Review of a Reclamation Plan for Mill Taihngs Sites under Title II of the Uramum Mill
Tailings Radiation Control Act of 1978 "
The currently approved surety instmment, a Performance Bond issued by National Umon
Fire Insurance Company in favor of the Executive SecretarvDirector, and the associated
Standby Tmst Agreement, shall be continuously maintained by the Licensee in an amount
not less than the amount cunently approved by the Executive SecretarvDirector pursuant to
the requirements of UAC R313-24-4 (10 CFR 40, Appendix A, Cntena 9 and 10 as
incorporated by reference)
[Applicable NRC Amendments 2, 3, 5, 13, 15, 19, 21, 23, 24, 25]
[Applicable UDRC Amendment 1][Applicable UDRC Amendment 3]
9 6 Standard operating procedures (SOPs) shall be established and followed for all operational
process activities involving radioactive matenals that are handled, processed, or stored
SOPs for operational activities shall enumerate pertinent radiation safety practices to be
followed Additionally, wntten procedures shall be established for non-operational activities
to include m-plant and environmental monitonng, bioassay analyses, and instrument
calibrations An up-to-date copy of each wntten procedure shall be kept in the mill area to
which it applies
All vmtten procedures for both operational and non-operational activities shall be reviewed
and approved m wntmg by the radiation safety officer (RSO) before implementation and
whenever a change in procedure is proposed to ensure that proper radiation protection
pnnciples are being applied In addition, the RSO shall perform a documented review of all
existing operating procedures at least annually
DRC-0403
Page 5 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
9 7 As per the Memorandum of Agreement (MOA) negotiated by the Utah State Histonc
Preservation Officer (SHPO), the Advisory Council on Histonc Preservation (ACHP), the
NRC and Energy Fuels Nuclear Inc (EFN) and ratified on August 20, 1979 and as amended
on May 3,1983 and substantially as implemented in NRC License SUA-1358-_
Before engaging m any activity not previously assessed by the DirectorExecutive Secretary,
the licensee shall administer a cultural resource inventory All disturbances associated with
the proposed development will be completed m compliance with the National Histonc
Preservation Act (as amended) and its implementing regulations, and the Archaeological
Resources Protection Act (as amended) and its implementing regulations
In order to ensure that no unapproved disturbance of cultural resources occurs, any work
resulting m the discovery of previously unknown cultural artifacts shall cease The artifacts
shall be mventoned and evaluated m accordance with the National Histonc Preservation Act
(as amended), and no disturbance shall occur until the licensee has received authonzation
from the Executive SecretarvDirector to proceed
The licensee shall avoid by project design, where feasible, the archaeological sites
designated "contnbuting" in the report submitted by letter to the NRC dated July 28, 1988
When It is not feasible to avoid a site designated -"contnbuting" in the report, the licensee
shall institute a data recovery program for that site based on the research design submitted
by letter from C E Baker of Energy Fuels Nuclear to Mr Melvin T. Smith, Utah State
Histonc Preservation Officer (SHPO), dated Apnl 13, 1981
The licensee shall recover through archaeological excavation all "contnbuting" sites listed in
the report which are located in or within 100 feet of bonow areas, stockpile areas,
constmction areas, or the penmeter of the reclaimed tailings impoundment Data recovery
fieldwork at each site meeting these cntena shall be completed pnor to the start of any
project related disturbance within 100 feet of the site, but analysis and report preparation
need not be complete
Additionally, the licensee shall conduct such testing as is required to enable the Executive
SecretarvDirector to determine if those sites designated as "Undetermined" in the report and
located within 100 feet of present or known fliture constmction areas are of such
significance to warrant their redesignation as "contnbuting " In all cases, such testing shall
be completed before any aspect ofthe undertaking affects a site
Archaeological contractors shall be approved in wnting by the Utah SHPO The Utah SHPO
will approve an archaeological contractor who meets the minimum standards of the State of
Utah as the pnncipal investigator
DRC-0403
Page 6 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
9 8 The licensee is hereby authonzed to possess byproduct matenal in the form of uranium
waste tailings and other uranium byproduct waste generated by the licensee's milling
operations authonzed by this license Mill tailings shall not be transfened from the site
without specific pnor approval of the Executive SecretarvDirector in the form of a license
amendment The licensee shall maintain a permanent record of all transfers made under the
provisions of this condition
9 9 The hcensee is hereby exempted from the requirements of R313-15-902(5) for areas within
the mill, provided that all entrances to the mill are conspicuously posted in accordance with
R313-15-902(5) and with the words, "Any area within this mill may contain radioactive
matenal"
9 10 Release of equipment or packages from the restncted area shall be m accordance with the
NRC "Guidelines for Decontamination of Facilities and Equipment Pnor to Release for
Umestncted Use or Termination of Licenses for Byproduct, Source, or Special Nuclear
Matenal," dated May 1987, or suitable alternative procedures approved by the Executive
SecretaryDirector pnor to any such release
9 11 Updated Reclamation Plan and Specifications - the hcensee shall complete and submit an
updated Reclamation Plan and Specifications for the White Mesa Mill Facility, for Director
Executive Secretary approval on or before June 30, 2010 The plan and specifications shall
include information identified m this condition and information that is adequate for
determimng financial surety requirements for the White Mesa Mill with all tailings
management cells, including Cells 4A and 4B, and any new features or facilities that are
constmcted in conjunction with operation of Cells 4A and 4B Said Reclamation Plan and
specifications shall be approved by the Director Executive Secretary before disposal of any
tailings or wastewater in Cell 4B The updated reclamation plan shall revise the information
contained in the Reclamation Plan Revision 3 0 submitted to the NRC on July 17, 2000, and
an update to Rev 3 0 of the Reclamation Plan that was prepared by the Licensee July 25,
2008, and approved on August 4, 2008 (now refened to as Rev 3 1) After revision of Rev
3 1, the updated Reclamation Plan shall be refened to as Rev 3 2, and shall contain the
following information
A Information pertaimng to the design and use of Cells 4A and 4B for tailings
management/disposal, including information on the design of the final top cap(s),
and design of the final cap side slopes including rock sizing and fill depth, and the
estimated quantities of matenals required for final cover constmction and final
erosion protection, adequate for assessing the needs ofthe associated financial surety
based on cunently approved Cover design extended to include Cell 4B,
DRC-0403
Page 7 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
B Estimated costs for constmcting the final cover system and for installing final
stormwater control systems for the tailings management cells, including Cells 4A
and 4B, following completion of tailings management operations,
C Information on reclamation activities required for reclaiming any new permanent
fixtures or facilities that have been installed or are contemplated to be constmcted m
conjunction with constmction and operation of Cells 4A and 4B, and the financial
surety needs associated therewith, and
D Information demonstrating the adequacy of the long-term care fund with respect to
the White Mesa Mill Facility that includes consideration of Cells 4A and 4B, the
final cover and drainage systems associated with these cells and any other new
stmcture or facility installed or contemplated to be constmcted m conjunction with
the constmction and operation of these two cells
[Applicable UDRC Amendment 4]
SECTION 10: OPERATIONAL CONTROLS, LIMITS, AND RESTRICTIONS
10 1 A The mill production rate shall not exceed 4380 tons of yellowcake per year
B The licensee may not dispose of any matenal on site that is not "byproduct matenal,"
as that term is defined in 42 U S C Section 2014(e)(2) (Atomic Energy Act of 1953,
Section 11(e)(2))
C The licensee may not receive or process any altemate feed matenal without first
applying for and obtaining approval of a license amendment For any such proposal,
the licensee shall demonstrate that it will comply with Condition 10 1(B) Any such
demonstration shall include
(1) Demonstration of compliance with the NRC Regulatory Summary 2000-23
Recent Changes to Uranium Recovery Policy, November 30, 2000, and
(2) Demonstration of compliance with the November 22, 1999 Protocol for
Determining Whether Altemate Feed Matenals are Listed Hazardous Wastes,
as approved by the Utah Division of Solid and Hazardous Waste on
December 7,1999
D Maximum quantities of feed matenal stored on the mill site, including altemate feed
matenals or other ores, shall not exceed the total matenal storage quantity found in
the cunently approved mill surety pursuant to License Condition 9 5, without pnor
approval of the DirectorExecutive Secretary
DRC-0403
Page 8 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
E The licensee may not receive any altemate feed matenals or other ores if those
matenals would cause the facility to exceed the tailings cell disposal capacity
established by the cunently approved reclamation plan and/or the aimual surety
report required by License Conditions 9 11, and 9 5, respectively, without pnor
approval of the DirectorExecutive Secretary^
[Applicable UDRC Amendment 2]
10 2 All hquid effluents from mill process buildings, with the exception of samtary wastes, shall
be retumed to the mill circuit or discharged to the tailings impoundment
10 3 Freeboard limits, stormwater and wastewater management for the tailings cells shall be
determined as follows
A The Freeboard limit for Cell 1 shall be set annually in accordance with the
procedures set out in Section 3 0 to Appendix E of the previously approved NRC
license application, including the January 10, 1990 Drainage Report Discharge of
any surface water or wastewater from Cell 1 is expressly prohibited
B The freeboard limit for Cells 3, 4A, and 4B shall be recalculated annually in
accordance with the procedures approved by the Director Executive Secretary Said
calculations for freeboard limits shall be submitted as part of the Aimual Technical
Evaluation Report (ATER), as descnbed in Condition 12 3 below
C The discharge of any surface water, stormwater or wastewater from Cells 3, 4A, and
4B shall only be through an DirectorExecutive Secretary authonzed spillway
stmcture
[Applicable NRC Amendment 16] [Applicable UDRC Amendment 3] [Applicable
UDRC Amendment 4]
10 4 Disposal of matenal and equipment generated at the mill site shall be conducted as
descnbed in the hcensee's submittals to the NRC dated December 12, 1994 and May 23,
1995, with the following addition
A The maximum lift thickness for matenals placed over tailings shall be less than 4-
feet thick Subsequent lifts shall be less than 2-feet thick Each lift shall be
compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times pnor
to placement of subsequent lifts
10 5 In accordance with the licensee's submittal to the NRC dated May 20, 1993, the licensee is
hereby authonzed to dispose of byproduct matenal generated at licensed in-situ leach (ISL)
facilities, subject to the following conditions
DRC-0403
Page 9 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
A Disposal of ISL waste is limited to 5000 cubic yards from a single source
B All ISL contaminated equipment shall be dismantled, cmshed, or sectioned to
minimize void spaces Banels contaimng waste other than soil or sludges shall be
emptied into the disposal area and the banels cmshed Banels containing soil or
sludges shall be venfied by the Licensee to be fiiU pnor to disposal Banels not
completely full shall be filled with tailings or soil pnor to disposal
C All ISL waste shall be buned m Cell No 3 unless pnor wntten approval is obtained
from the Director Executive Secretary^ for altemate bunal locations
D All disposal activities shall be documented and records thereof maintained on-site
The documentation shall include descnptions of the ISL waste and the disposal
locations, as well as all actions required by this License condition
E The licensee shall also submit for Director Executive Secretary approval a revised
wntten Standard Operating Procedure (SOP) for ISL disposal on or before December
1, 2010 The revised SOP shall descnbe the documentation required for ISL
disposal, which shall include but is not limited to the following,
(1) The matenal disposal area must be located on a tailings beach area of the
disposal cell or on an area of the cell that is underlain by tailings sands,
(2) The elevation of the matenal disposal area will not exceed the plane or grade
of the elevations of the uppermost flexible membrane liner of the tailings
cell,
(3) Such ISL byproduct matenal will be segregated from any mill matenal and
equipment disposed of in the cells pursuant to License Condition 10 4, and
the ISL byproduct matenal from each in-situ leach source will be segregated
from the byproduct matenal from all other m-situ leach sources,
(4) Absence of void space inside banels disposed, including physical venfication
before disposal, and
(5) Detailed engineenng drawings which demonstrate
a There are at least 4 feet of tailings sands under the bottom of each
disposal area, and
b The bottom of each disposal area is located at least 12 feet from the
sides or dikes of the tailings cell
DRC-0403
Page 10 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
F The Licensee shall notify the Director Executive Secretary m vmting at least 7
calendar days pnor to the proposed scheduled date for disposal of any byproduct
matenal generated at ISL facilities m the tailings cells
An annual summary of the amounts of waste disposed of from off-site ISL
generators shall be sent to the Director Executive Secretary on or before November 1
of each calendar year
[Applicable UDRC Amendment 4]
10 6 The licensee is authonzed to receive and process source matenals from the Allied Signal
Corporation's Metropolis, Illinois, facility in accordance with the amendment request to the
NRC dated June 15, 1993
10 7 The licensee is authonzed to receive and process source matenal from Allied Signal, Inc of
Metropolis, Illinois, in accordance with the amendment request to the NRC dated September
20, 1996, and amended by letters to the NRC dated October 30, 1996 and November 11,
1996
10 8 The licensee is authonzed to receive and process source matenal, m accordance with the
amendment request to the NRC dated March 5, 1997
[Applicable NRC Amendments 1]
10 9 The licensee is authonzed to receive and process source matenal from Cabot Performance
Matenals' facility near Boyertovm, Pennsylvania, m accordance with the amendment
request to the NRC dated Apnl 3, 1997, as amended by submittals to the NRC dated May
19, 1997 and August 6, 1997
[Applicable NRC Amendments 4]
10 10 The licensee is authonzed to receive and process source matenal from the Ashland 2
Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonawanda,
New York, m accordance with the amendment request to the NRC dated May 8, 1998, as
amended by the submittals to the NRC dated May 27, 1998, June 3, 1998, and June 11,
1998
[Applicable NRC Amendments 6]
1011 The licensee is authonzed to receive and process source matenal from Cameco
Corporation's Blind River and Port Hope facihties, located in Ontano, Canada, in
accordance with the amendment request to the NRC dated June 4, 1998, and by the
submittals to the NRC dated September 14, 1998, September 16, 1998, September 25, 1998,
October 7,1998, and October 8, 1998
DRC-0403
Page 11 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
However, the licensee is not authonzed to receive or process from these facilities, the
cmshed carbon anodes identified in these submittals, either as a separate matenal or mixed
in with matenal already approved for receipt or processing
10 12 The licensee is authonzed to receive and process source matenal from the Ashland 1 and
Seaway Area D Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located
near Tonowanda, New York, in accordance with statements, representations, and
commitments contained m the amendment request to the NRC dated October 15, 1998, as
amended by letters to the NRC dated November 23, 1998, November 24, 1998, December
23, 1998, January 11,1999, January 27,1999, and Febmary 1,1999
[Applicable NRC Amendment 10]
10 13 The licensee is authonzed to receive and process source matenal from the St Louis
Formerly Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with
statements, representations, and commitments contained in the amendment request to the
NRC dated March 2, 1999, and as amended and supplemented by submittals dated June 21,
1999, June 29, 1999 (2), and July 8, 1999 Pnor to the licensee receiving matenals from the
St Louis FUSRAP site, the licensee must make a determination that adequate tailings space
IS available for the tailings produced from the processing of this matenal This
determination shall be made based on a SERP approved intemal procedure
[Applicable NRC Amendments 13, 14]
10 14 The licensee is authonzed to receive and process source matenal from the Linde Formerly
Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements,
representations, and commitments contained in the NRC amendment request dated March
16, 2000, and as amended and supplemented by submittals dated Apnl 26, 2000, May 15,
2000, June 16, 2000, June 19, 2000, and June 23, 2000
Pnor to the hcensee receiving matenals from the Linde FUSRAP site, the licensee must
make a determination that adequate tailings space is available for the tailings produced from
the processing of this matenal This determination shall be made based on a SERP-approved
intemal procedure Design changes to the cells or the reclamation plan require the licensee
to submit an amendment request for DirectorExecutive Secretary review and approval
Pnor to the licensee receiving matenals from the Linde FUSRAP site, the licensee must
require that the generator of the matenal certify that the matenal does not contain listed
hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per
a Radioactive Matenal Profile Record
[Applicable NRC Amendment 14]
DRC-0403
Page 12 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
10 15 The licensee is authonzed to receive and process source matenal from the W R Grace site
located m Chattanooga, Tennessee, in accordance with statements, representations, and
commitments contained in the amendment request to the NRC dated Apnl 12, 2000, as
amended and supplemented by submittals dated Apnl 24, 2000, Apnl 26, 2000, May 5,
2000, November 16, 2000, and December 18, 2000
Pnor to the licensee receiving matenals from the W R Grace site, the licensee must make a
determination that adequate tailings space is available for the tailings produced from the
processing of this matenal This determination shall be made based on the SERP-approved
standard operating procedure for determination of tailings capacity Design changes to the
cells or the reclamation plan require the licensee to submit an amendment request for
DirectorExecutive Secretary review and approval
Pnor to the licensee receiving matenals from the W R Grace site, the licensee must require
that the generator of the matenal certify that the matenal does not contain listed hazardous
waste as defined under the Resource Conservation and Recovery Act (RCRA) per a
Radioactive Matenal Profile Record
[Applicable NRC Amendment 17]
10 16 The licensee is authonzed to receive and process source matenal from the Hentage Minerals
Incorporated site, in accordance with statements, representations, and commitments
contained m the amendment request to the NRC dated July 5, 2000, and as supplemented by
submittals dated November 16, 2000, and December 18, 2000
Pnor to the licensee receiving matenals from the Hentage Minerals Incorporated site, the
licensee must make a determination that adequate tailings space is available for the tailings
produced from the processing of this matenal This determination shall be made based on
the SERP-approved standard operating procedure for determination of tailings capacity
Design changes to the cells or the reclamation plan require the licensee to submit an
amendment request for Director Executive Secretary review and approval
Pnor to the licensee receiving matenals from the Hentage Minerals Incorporated site, the
licensee must require that the generator of the matenal certify that the matenal does not
contain listed hazardous waste as defined under the Resource Conservation and Recovery
Act (RCRA) per a Radioactive Matenal Profile Record
[Applicable NRC Amendment 18]
10 17 The licensee is authonzed to receive and process source matenal from the Molycorp site
located in Mountain Pass, California, in accordance with statements, representations, and
commitments contained m the amendment request to the NRC dated December 19, 2000,
DRC-0403
Page 13 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
and supplemental information in letters dated January 29, 2001, Febmary 2, 2001, March
20, 2001, August 15, 2001, October 17, 2001, and November 16, 2001
Pnor to the licensee receiving matenals from the Molycorp site, the licensee must make a
determination that adequate tailings space is available for the tailings produced from the
processing of this matenal This determination shall be made based on a SERP-approved
intemal procedure Design changes to the cells or the reclamation plan require the licensee
to submit an amendment request for Director Executive Secretary review and approval
[Applicable NRC Amendment 20]
10 18 The licensee is authonzed to receive and process source matenal from the Maywood site
located in Maywood, New Jersey, in accordance with statements, representations, and
commitments contained in the amendment requests to the NRC dated June 15, 2001, June
22, 2001, August 3, 2001, and supplemented by letters dated November 19, 2001, December
6, 2001, December 10, 2001, March 11, 2002, and July 1, 2002
Pnor to the licensee receiving matenals from the Majwood site, the licensee must make a
determination that adequate tailings space is available for the tailings produced from the
processing of this matenal This determination shall be made based on a SERP-approved
intemal procedure If such determination requires the licensee to make design changes to the
cells or the reclamation plan, the licensee shall submit an amendment request for
DirectorExecutive Secretary review and approval
Pnor to the licensee receiving matenals from the Maywood site, the licensee must require
that the generator of the matenal certify that the matenal does not contain listed hazardous
waste as defined under the Resource Conservation and Recovery Act (RCRA) per a
Radioactive Matenal Profile Record
[Applicable NRC Amendment 22]
10 19 The licensee is authonzed to receive and process source matenal from Ponds 2 and 3 ofthe
FMRI's Muskogee Facility located in Muskogee, Okalahoma, in accordance with
statements, representations, and commitments contained in the amendment requests and
submittals to the Director Executive Secretary dated March 7, 2005, June 22, 2005, and
Apnl 28, 2006
[Applicable UDRC Amendment 2]
SECTION 11: MONITORING, RECORDING, AND BOOKKEEPING REQUIREMENTS
111 The results of sampling, analyses, surveys and monitonng, the results of calibration of
equipment, reports on audits and inspections, all meetings and training courses required by
this license and any subsequent reviews, investigations, and conective actions, shall be
DRC-0403
Page 14 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
documented Unless otherwise specified in the State of Utah regulations all such
documentation shall be maintained for a penod of at least five (5) years
112 The licensee shall implement the effluent and environmental monitonng program specified
in Section 5 5 of the renewal application, as amended by the submittal to the NRC dated
June 8,1995, and as revised with the following modifications or additions
A Stack sampling shall include a determination of flow rate
B Surface water samples shall also be analyzed semiannually for total and dissolved
U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall
be sampled annually for water or sediments and analyzed as above A sediment
sample shall not be taken in place of a water sample unless a water sample was not
available
C Groundwater sampling shall be conducted in accordance with the requirements m the
Utah Ground Water Discharge Permit No UGW370004
D With the exception of groundwater sampling the licensee shall utilize lower limits of
detection in accordance with Section 5 of the NRC Regulatory Guide 4 14, as
amended, for analysis of effluent and environmental samples
E The inspections performed semiannually of the cntical onfice assembly committed
to in the submittal to the NRC dated March 15, 1986, shall be documented The
cntical onfice assembly shall be calibrated at least every 2 years against a positive
displacement Roots meter to obtain the required calibration curve
[Applicable NRC Amendment 5][Applicable UDRC Amendment 3]
113 The licensee shall implement a momtonng program of the leak detection systems for
disposal Cells 4A and 4B in accordance with requirements of the Ground Water Discharge
Permit The licensee shall implement a momtonng program of the leak detection systems for
disposal Cells 1, 2, and 3 as follows
A The licensee shall measure and record the "depth to fluid" in each of the tailings
disposal cell standpipes on a weekly basis If sufficient fluid is present m the leak
detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to
the extent reasonably possible, and record the volume of fluid recovered Any fluid
pumped from an LDS shall be retumed to a disposal cell
If fluid IS pumped from an LDS, the licensee shall calculate the flow rate by dividing
the recorded volume of fluid recovered by the elapsed time since fluid was last
DRC-0403
Page 15 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
pumped or increases in the LDS fluid levels were recorded, whichever is the more
recent The licensee shall document the results of this calculation
B Upon the imtial pumping of fluid from an LDS, the licensee shall collect a fluid
sample and analyze the fluid for pH and the parameters listed in paragraph A of this
license condition The licensee shall determine whether the LDS fluid ongmated
from the disposal cell by ascertaining if the collected fluid contains elevated levels of
the constituents listed in paragraph A of this license condition or has a pH level less
than 5 0 If either elevated constituent levels or a pH less than 5 0 is observed, the
licensee shall assume that the disposal cell is the ongin ofthe fluid
If the LDS fluid is determined not to have ongmated from the disposal cell, the
licensee shall continue with weekly measurements of "depth to fluid" m the LDS
standpipes The licensee shall confirm, on an annual basis, that fluid from the
disposal cell has not entered the LDS by collecting (to the extent possible) and
analyzing an LDS fluid sample for the above stated parameters
C Upon indication that the LDS fluids ongmated from the disposal cell, the licensee
shall determine the flow rate through the liner by the calculation method in
paragraph B of this license condition If the flow rate is equal to or greater than one
gallon per minute, the licensee shall
(1) Evaluate the cause of the liner distress and take appropnate and timely
actions to mitigate the leak and any consequent potential impacts,
(2) Continue to measure and record LDS "depth to fluid" measurements weekly,
and
(3) Notify the Director Executive Secretary by telephone withm 48 hours, in
accordance with License Condition 9 2, and submit a vmtten report withm
30 calendar days of notifying the Director Executive Secretary by telephone,
in accordance with License Condition 9 2 The wntten report shall include a
descnption of the mitigative action(s) taken and a discussion of the mitigative
action results
If the calculated flow rate is less than one gallon per minute, the licensee shall
continue with weekly measurements of "depth to fluid" in the LDS standpipes
D All sampling, analysis, and evaluation of LDS fluids shall be documented and
retained onsite until license termination for Director Executive Secretary inspection
[Applicable NRC Amendment 8] [Applicable UDRC Amendment 3] [Applicable
UDRC Amendment 4]
DRC-0403
Page 16 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
114 Annually, the licensee shall collect, dunng mill operations, a set of air samples covenng
eight hours of sampling, at a high collection flow rate (i e , greater than or equal to 40 liters
per minute), in routinely or frequently occupied areas of the mill These samples shall be
analyzed for gross alpha In addition, with each change in mill feed matenal or at least
annually, the licensee shall analyze the mill feed or production product for U-nat, Th-230,
Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent
composition of air sample particulates
[Applicable NRC Amendment 7]
115 Calibration of in-plant air and radiation monitonng equipment shall be performed as
specified m the license renewal application, under Section 3 0 of the "Radiation Protection
Procedures Manual," with the exception that in-plant air sampling equipment shall be
calibrated at least quarterly and air sampling equipment checks shall be documented
116 The licensee shall perform an annual ALARA audit of the radiation safety program m
accordance with the NRC Regulatory Guide 8 31
117 Settlement Monitonng Standard Operating Procedure - the licensee shall submit for
DirectorExecutive Secretary approval a wntten Settlement Monitonng Standard Operating
Procedure (SOP) on or before December 1, 2010 The proposed SOP shall descnbe methods
for monitonng vertical settlement in the tailings management cell areas and for recording
and documenting settlement monitonng data and companng such data to previous data to
track potential settlement All data collected by the Licensee for these purposes shall be
included in an annual report to be submitted to the DirectorExecutive Secretary, pursuant to
License Condition 12 3 The SOP shall also
A Require that settlement monitors (eg, settlement stands) be promptly installed
following placement of temporary cover over placed tailings,
B Require installation of one or more representative settlement monitonng stand(s)
above each ISL source disposal area that has been closed to fiirther disposal pursuant
to License Condition 10 5 A There shall be at least one settlement momtonng stand
for each ISL source disposal area, estimated to be about 22,500 square feet
Installation of said settlement monitonng stand and imtial elevation survey shall be
completed by the Licensee within 30 calendar days of completion of each ISL source
disposal area For ISL source disposal areas or trenches completed before Apnl 1,
2010 the Licensee shall install the required settlement stand(s) and complete the
initial elevation survey pnor to June 1, 2010,
DRC-0403
Page 17 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
C Indicate that the licensee will utilize settlement monitonng devices and methods that
are resistant to shifting m their positions as a result of such forces as frost heave,
erosion, bunowing animals, or other environmental factors,
D Include provisions to prevent man-caused damage to settlement monitonng devices,
including, but not limited to vehicle and constmction traffic damage Such measures
will include 1) all equipment, procedures, and provisions needed to protect said
settlement monitonng devices, 2) schedules for rapid verbal and wntten reporting of
any such damage, and 3) conective actions taken or to be taken by the Licensee to
replace and/or repair said devices,
E Indicate that settlement monitors will be
(1) Initially surveyed by a Utah Licensed Professional Land Surveyor withm, 30
calendar days of installation,
(2) Surveyed monthly, and
(3) Surveyed annually by a Utah Licensed Land Surveyor Review of the data
and an analysis shall be performed and certified by a Utah Licensed
Professional Engineer and submitted annually as part of the ATER required
by License Condition 12 3,
F Include procedures requinng that such settlement monitors be placed, surveyed,
mapped, and maintained, that conective action and maintenance activities be
performed to maintain existing monitonng devices in a reliable, good working
condition, as needed, that the addition, surveying and mapping of new settlement
monitonng devices installed be documented, and that records be made of
observations of site conditions as they relate to the conditions at and in the vicimty
of the installed monitonng devices,
G Provide quantitative performance cntena and descnbe how such cntena will be used
to evaluate vertical movement,
H Indicate that any settlement monitonng device that is ineparably damaged as a result
of environmental stresses or through man-caused contact, including but not limited
to cell constmction or other operational equipment, shall be promptly replaced with
an identical or equivalent monitonng device, and provisions provided to guide the
interpretation of data from both the former and the replacement device,
I Indicate that where survey evidence suggests that significant apparent movement in a
settlement monitor has occuned, m excess ofthe approved performance cntena, that
DRC-0403
Page 18 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
the departure(s) will be investigated and explained, and enors conected and resolved
in a timely maimer, subject to Director Executive Secretary approval,
J Indicate that photographs shall be taken of the monitonng areas at least annually to
document site and device conditions Additionally, the SOP shall indicate that
photographs shall be taken following any instances of unusually severe weather or
incidents involving equipment if they result in physical damage or disturbance to any
settlement momtonng device, or significant changes to the ground surface areas
adjacent to or sunoundmg a settlement or displacement momtonng device,
K Include a list of records that will be prepared for documenting settlement data for
each settlement monitonng device and related site observations and activities, and
L. Indicate that results and records of settlement momtonng shall be submitted annually
as part of the ATER required by License Condition 12 3
[Applicable UDRC Amendment 4]
118 Movement (Displacement) Monitonng Standard Operating Procedure - the licensee shall
submit for Director Executn^e Secretary approval a wntten Movement Monitonng Standard
Operating Procedure (SOP) on or before December 1, 2010 The proposed SOP shall
descnbe methods for monitonng potential vertical and honzontal movements in the
constmcted dike portions of the tailings management cells, and for recording and
documenting displacement monitonng data and companng such data to previous data to
track potential movement (displacement) All data collected by the Licensee for these
purposes shall be included in an annual report to be submitted to the DirectorExecutive
Secretary, pursuant to License Condition 12 3 The SOP shall also
A. Require that movement monuments be promptly installed following completion of
constmction of cell dikes,
B Indicate that the licensee will utilize movement monuments and momtonng methods
that are resistant to shifting in their positions as a result of such forces as frost heave,
erosion, bunowing ammals, or other environmental factors,
C Include an obligation for the Licensee to prevent man-caused damage to movement
monuments, including, but not limited to vehicle and constmction traffic damage
Such measures will include 1) all equipment, procedures, provisions need to protect
said settlement monitonng devices, 2) schedules for rapid verbal and wntten
reporting of any such damage, and 3) conective actions taken or to be taken by the
Licensee to replace and/or repair said devices,
D Indicate that movement monuments will be
DRC-0403
Page 19 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
(1) Initially surveyed by a Utah Licensed Land Surveyor within 30 calendar days
of installation,
(2) Surveyed semi-annually for the first three years following installation by a
Utah Licensed Land Surveyor
(3) Surveyed annually after the first three years by a Utah Licensed Land
Surveyor
(4) Subjected to accelerated monitonng conducted under certain circumstances,
at a frequency and m a manner approved by the DirectorExecutive Secretary,
and
(5) Reviewed annually by a Utah Licensed Professional Engineer, who shall
perform and certify an analysis of all survey data This analysis shall be
submitted pursuant to License Condition 12 3,
E Include procedures requinng that such movement monuments be placed, surveyed,
mapped, and maintained, that conective action and maintenance activities be
performed to maintam existing movement monuments in a reliable, good working
condition, as needed, that the addition, surveying and mapping of new movement
monuments installed be documented, and that records be made of observations of
site conditions as they relate to the conditions at and in the vicinity of the installed
monuments,
F Provide quantitative performance cntena and descnbe how such cntena will be used
to evaluate movements (displacements),
G Indicate that any movement monument that is ineparably damaged as a result of
environmental stresses or through man-caused contact, including but not limited to
cell constmction or other operational equipment, shall be promptly replaced with an
identical or equivalent movement monument, and provisions provided to guide the
interpretation of data from both the former and the replacement device,
H Include a list of records that will be prepared for documenting movement
(displacement) data for each movement monument and related site observations and
activities, and
I Indicate that results and records of movements (displacements) shall be submitted
annually as part of the ATER required by License Condition 12 3
[Applicable UDRC Amendment 4]
DRC-0403
Page 20 of 21
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
License #UT1900479
Amendment # 05
SECTION 12: REPORTING REQUIREMENTS
12 1 DELETED by NRC Amendment 13
[Applicable NRC Amendment 13]
12 2 The hcensee shall submit a detailed decommissioning plan to the Director Executive
Secretaiy at least twelve (12) months pnor to planned final shutdovm of mill operations that
includes a detailed Quality Assurance Plan The plan will be in accordance with NRC
Regulatory Guide 4 15, "Quality Assurance for Radiological Momtonng Programs" and
NUREG-1575, "Multi-Agency Radiation Survey and Site Investigation Manual
(MARSSIM)" or equivalent most cunent guidance
[Applicable NRC Amendment 13][Applicable UDRC Amendment 1]
[Applicable UDRC Amendment 2]
12 3 Annual Technical Evaluation Report (ATER) - the licensee shall submit an ATER for
Director Executive Secretary approval no later than November 15, of each year, to coincide
with the annual freeboard calculation date of November T' of each year when using the new
Freeboard Calculation Method, as descnbed m the letter from David A Rupp of the Utah Division
of Radiation Control to Mr David C Frydenlund of Denison Mines (USA) Corp, dated Apnl 29,
2010 Each ATER shall incorporate all documents and attachments, including applicable
updates to previously submitted documents with attachments that support information
presented in the ATER, including, but not limited to maps, drawings, tables, and figures
The licensee shall include, as part of the ATER, results of tailings cell temporary cover
settlement and dike displacement monitonng activities The content of the tailings cell
temporary cover settlement and displacement monitonng program related information shall
include those records required under the Settlement Monitonng and Movement Monitonng
SOPs (License Conditions 117 and 11 8), as approved by the DirectorExecutive Secretary
[Applicable UDRC Amendment 4]
SECTION 13; CLOSEOUT CONDITION
13 1 Except as specifically provided otherwise by this hcense, the licensee shall conduct
operations m accordance with the statements, representations, and procedures contained m
the documents, including any enclosures, listed below Whenever the word "will" is used in
the documents referenced below, it shall denote a requirement The Utah Radiation Control
Rules shall govern unless the statements, representations, and procedures in the licensee's
apphcation and conespondence are more restnctive than the rules *
Licensee's Standby Tmst Agreement, as amended.
B Licensee's letter to the NRC dated August 23. 1991 (including the license renewal
application),
C Licensee's revision submitted to NRC January 13, 1992,
UTAH DIVISION OF RADIATION CONTROL
RADIOACTIVE MATERIALS LICENSE
SUPPLEMENTARY SHEET
DRC-0403
Page 21 of 21
License #UT1900479
Amendment # 05
D Licensee's revision submitted to NRC April 7, 1992,
E Licensee's revision submitted to NRC November 22, 1994,
F Licensee's revision submitted to NRC July 27, 1995,
G Licensee's revision submitted to NRC December 13, 1996,
H Licensee's revision submitted to NRC December 31,1996,
I Licensee's revision submitted to NRC January 30, 1997
J Licensee's letter dated May 25, 2012 (Transfer of Control)
K Licensee's letter dated June 27, 2012 (Transfer of Control)
L Director's Letter dated June 27, 2012 (Transfer of Control Approval)
M Licensee's letter dated August 3, 2012 (Name Change)
N Electronic Mail from David Frydenlund dated August 15, 2012 (Change Mailing
Address)
* For 13 1 B through 13 11 - NRC Amendment 2,
For 13 1 Jthroush 13 1 N- UDRC Amendment 5
UTAH DIVISION OF RADIATION CONTROL^OARD
Dane L Fmerfrock, Executive SecretarvRusty Lundberg, Director Date
Attachment B
Redlme/Stnkeout text of Energy Fuels Resources (USA) Inc UGW370004
Page 7 of 7
U \rad\COMMON\Uramum miUsM le(2)UT1900479 Denison Mines - White Mesa UMill\DUSA LicenseVLicense Amendment 5
- Name Change Dennison to Energy Fuels & Director DRC\Statement of Basis amendment 5 Draft 2 docx
Dii DENISON
MINES
August 3, 2012
VIA E-MAIL AND OVERNIGHT DELIVERY
Mr Rusty Lundberg
Director
Utah Division of Radiation Control
195 North 1950 West
PO Box 144850
Salt Lake City, UT 84114-4850
DRC-201^-001729
Denison Mines (USA) Corp
105017th street, Suite 950
Denver, CO 80265
USA
Tel [phone]
Fax [phone]
www denisonmines com
Re Application for an amendment to State of Utah Radioactive Materials License No 1900479 for the
White Mesa Uranium Mill (the "Mill") to change the name of Denison Mines (USA) Corp to Energy
Fuels Resources (USA) Inc
Dear Mr Lundberg
We are pleased to enclose with this letter two copies of an application to amend the Mill's Radioactive Materials
License No 1900479 to change the name of the licensee from Denison Mines (USA) Corp to Energy Fuels
Resources (USA) Inc
The Utah Division of Radiation Control approved an indirect transfer of control of Utah Radioactive Materials
License No 1900479 by letter dated June 27, 2012 DRC's letter of approval stated that a name change to the
Mill's license should be submitted within 30 days ofthe approval
Denison's change of name was not yet in effect at the time of our May 25, 2012 request letter or at the time of
our June 27, 2012 telephone conversation with Mr John Hultquist and Ms Gwyn Galloway of your staff The
change of name became effective on July 25, 2012, that is, 30 days after the date of DRC's approval letter
Now that the change of name is in effect, Denison herein submits the attached amendment application to
change the name ofthe licensee on the White Mesa Mill Radioactive Matenals license
Please contact me if you have any questions or require any further information
Yours very truly,
DENISON MINES (USA) CORP
'Jo Ann Tischler
Director, Compliance and Permitting
cc David C Frydenlund
Letter to Mr Rusty LundberfP
Request to Amend RML for Name Change
August 3, 2012 ^'laiiye
Page 2
Harold R Roberts
David E Turk
Dan Hillsten
KatherineA Weinel
OENISONVJJ
MINES
REQUEST TO AMEND
RADIOACTIVE MATERIALS LICENSE
DENISON MINES (USA) CORP.
WHITE MESA URANIUM MILL
SAN JUAN COUNTY, UTAH
To reflect a Change of Name to
Energy Fuels Resources (USA) Inc.
Prepared for
Utah Department of Environmental Quality
Division of Radiation Control
PO Box 144850
Salt Lake City, UT 84114-4850
Prepared by
Energy Fuels resources (USA) Inc.
(previously named Denison Mines (USA) Corp.)
1050 17th Street, Suite 950,
Denver, CO 80265
August 2012
Denison Mines (USA) Corp
TABLE OF CONTENTS
1.0 INTRODUCTION,
11 WHITE MESA MILL
12 PROPOSED ACTION
13 PURPOSE OF ACTION
14 AMENDMENT APPLICATION
2.0 REGULATORY CONSIDERATIONS
2 1 MILL TAILINGS CLOSURE AND RECLAMATION AND SURETY
3 0 CERTIFICATION
1
1
1
1
. ...2
2
2
ATTACHMENTS
Attachment 1 DRC July 27, 2012 Letter Approving Name Change
Request to Amend Radioactive Matenals License
Denison Mines (USA) Corp
2.0 REGULATORY CONSIDERATIONS
2.1 Mill Tailings Closure and Reclamation and Surety
As required by DRC in the Approval letter of June 27, 2012, following the change of name on
the Mill's Radioactive Matenals License, the Mill's financial surety instruments will be updated to
reflect
• a change of the Licensee's name to "Energy Fuels Resources (USA) Inc",
• the change of ownership, to the extent applicable, and
• a change of references from "Executive Secretary" to "Director" of the Division of
Radiation Control
3.0 CERTIFICATION
This application has been submitted as of August 3, 2012 by
ENERGY FUELS RESOURCES (USA) Inc
(previously named DENISON MINES (USA) CORP )
David C Frydenlund August 3, 2012
Vice President, Regulatory Affairs
Page 2
Denison Mines (USA) Corp
ATTACHMENT 1
DRC July 27, 2012 Letter Approving Name Change
Page 3
State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
Department of
Environmental Quality
Amanda Smith
Executive Director
DrVISlON OF RADIATION CONTROL
Rusty Lundberg
Director
June 27, 2012
David Frydenlund
Vice President Regulatory Affairs and Counsel
Denison Mines (USA) Corp
1050 17^'' Street, Suite 950
Denver, Colorado 80265
RE Acquisition by Energy Fuels Inc of Denison Mines Corp's U S Operations and Name
Change State of Utah Radioactive Matenals License No UTl 900479 and State of Utah
Ground Water Discharge Permit No UGW370004
Dear Mr Frydenlund
In your letter dated May 25, 2012, as counsel for the licensee, you notified the Division of
Radiation Control, (DRC), of the intended acquisition by Energy Fuels Inc ("Energy Fuels") of
all of Denison Mines Corp's ("Denison's") United States operations In the above referenced
letter you specifically requested that I approve an indirect transfer of control of Utah Radioactive
Matenals License Number UT 1900479 for the White Mesa uranium mill (the "Mill") from
Denison to Energy Fuels Dennison is presently the ultimate parent company of Denison Mines
(USA) Corp , the operating company and licensee of the Mill located in San Juan County, Utah
In a telephone conversation on June 27, 2012, with John Hultquist and Gwyn Galloway of my
staff, you clanfied the proposed transaction and clanfied that the Energy Fuels shares provided to
Dennison would be distributed to Denison's shareholders on a pro rata basis By distnbuting the
shares, Dennison would no longer hold Energy Fuels shares and Energy Fuels would own 100%
of Denison's United States operations including the Mill located in San Juan County, Utah As
descnbed, DRC staff concurs that the proposed transaction will require an indirect transfer of
control of the Mill License Additionally, in the telephone conversahon referenced above, Mr
Hultquist and Ms Galloway requested additional information to address the indirect transfer of
control The requested information was provided in Energy Fuels' letter dated June 27, 2012
The Utah Administrative Code, Subsection R313-19-34(2), states that licenses or nghts granted
by a license cannot be transfened, assigned, or in any manner disposed of, either voluntanly or
involuntanly, directly or indirectly, through transfer of control of a license to a person unless the
195 North 1950 West • Salt Uke City. UT
Mailing Address P 0 Box 144850 • Salt Lake City, UT 84114-4850
Telephone[phone]' Fax [phone] 'TDD (801)536-W14
www deq tilali gov
Printed on 100% recycled paper
Page 2
Director* shall give wntten consent Please know that the information you submitted has met our
needs Therefore, in accordance with R313-19-34(2), the requested indirect transfer of control is
approved Additionally, approval is granted for the indirect transfer of control regarding the Mill's
Ground Water Discharge Permit No UGW370004
Please note that a name change to the Mill license should be submitted within 30 days of this
approval if a name change is to be made Once the name has been changed on the Mill license, a
modification to the Mill's financial surety mechanism will be required Please note that dunng the
modification to the surety mechanism, in addition to the name and ownership changes, references
to the Executive Secretary should be changed to the Director of the Division of Radiation Control
If you have additional questions regarding this matter, please contact John Hultquist or Gwyn
Galloway at [phone]
UTAH DIVISON OF RADIATION CONTROL
Rusty Lundberg, Director
Please note that due to Senate Bill 21 of the 2012 Utah Legislative Session, references to Executive Secretary of
the Utah Radiation Control Board in the Utah Radiation Control Act and Administrative have been modified to
be the Director of Radiation Control
DENISO
MINES
August 3, 2012
i^ii
-00 1729
Denison Mines (USA) Corp
1050 17th street, Suite 950
Denver, CO 80265
USA
Tel [phone]
Fax [phone]
www denisonmines com
VIA E-MAIL AND OVERNIGHT DELIVERY
Mr Rusty Lundberg
Director
Utah Division of Radiation Control
195 North 1950 West
PO Box 144850
Salt Lake City, UT 84114-4850
Re Application for an amendment to State of Utah Radioactive Materials License No 1900479 for the
White Mesa Uranium Mill (the "Mill") to change the name of Denison Mines (USA) Corp to Energy
Fuels Resources (USA) Inc
Dear Mr Lundberg
We are pleased to enclose with this letter two copies of an application to amend the Mill's Radioactive Materials
License No 1900479 to change the name of the licensee from Denison Mines (USA) Corp to Energy Fuels
Resources (USA) Inc
The Utah Division of Radiation Control approved an indirect transfer of control of Utah Radioactive Materials
License No 1900479 by letter dated June 27, 2012 DRC's letter of approval stated that a name change to the
Mill's license should be submitted within 30 days ofthe approval
Denison's change of name was not yet in effect at the time of our May 25, 2012 request letter or at the time of
our June 27, 2012 telephone conversation with Mr John Hultquist and Ms Gwyn Galloway of your staff The
Change of name became effective on July 25, 2012, that is, 30 days after the date of DRC's approval letter
Now that the change of name is m effect, Denison herein submits the attached amendment application to
Change the name of the licensee on the White Mesa Mill Radioactive Matenals license
Please contact me if you have any questions or require any further information
Yours very truly,
DENISON MINES (USA) CORP
^0 Ann Tischler
Director, Compliance and Permitting
CC David C Frydenlund
Letter to Mr Rusty Lundberg
Aur.i,'2orr''^^'-^-«'=''-ge
Page 2
Harold R Roberts
David E Turk
Dan Hillsten
KatherineA Weinel
OENISONVJJ
MINES
REQUEST TO AMEND
RADIOACTIVE MATERIALS LICENSE
DENISON MINES (USA) CORP.
WHITE MESA URANIUM MILL
SAN JUAN COUNTY, UTAH
To reflect a Change of Name to
Energy Fuels Resources (USA) Inc.
Prepared for
Utah Department of Environmental Quality
Division of Radiation Control
PO Box 144850
Salt Lake City, UT 84114-4850
Prepared by
Energy Fuels resources (USA) Inc.
(previously named Denison Mines (USA) Corp.)
1050 17th Street, Suite 950,
Denver, CO 80265
August 2012
Denison Mines (USA) Corp
1.0 INTRODUCTION
11 White Mesa Mill
Energy Fuels Resources (USA) Inc (previously named Denison Mines (USA) Corp ("the
Licensee") operates the White Mesa Uranium Mill (the "Mill") located approximately six miles
south of Blanding, Utah The Mill processes natural (native, raw) uranium ores and alternate
feed materials Alternate feed matenals are uranium-beanng matenals other than natural ores,
that meet the cntena specified in the United States Nuclear Regulatory Commission's ("NRC's")
Interim Position and Guidance on the Use of Uranium Mill Feed Material Other Than Natural
Ores (November 30, 2000) Alternate feed matenals are processed as "ore" at the Mill pnmanly
for their source matenal content As a result, all waste associated with this processing is lie (2)
byproduct matenal
1 2 Proposed Action
This IS a request for an amendment to State of Utah Radioactive Matenals License No UT
1900479 (the "License") to change the name of the licensee from "Denison Mines (USA) Corp "
to "Energy Fuels Resources (USA) Inc "
1 3 Purpose of Action
A summary of facts relevant to the above changes is provided below Each of the following facts was
explained to Mr John Hultquist and Ms Gwyn Galloway of the Utah Division of Radiation Control ("DRC")
on June 27, 2012
The Licensee was and still is owned by Denison Mines Holdings Corp ("DMHC")
Energy Fuels Inc ("EFI") acquired DMHC on June 29, 2012 As of that date, EFI acquired
100% of DMHC's United States holdings including the Mill located in San Juan County, Utah
DRC staff concurred that the above transaction constituted an indirect transfer of control of the
License DRC provided a letter on June 27, 2012 approving the indirect transfer of control
EFI change the name of the Licensee to Energy Fuels Resources (USA) Inc , and the name of
DMHC to "Energy Fuels Holdings Corp ", both effective July 25, 2012
The office address of the Licensee will change on August 20, 2012
1 4 Amendment Application
This application is intended to fulfill the requirements of an application for an amendment to the
Mill's Radioactive Matenals License set out in Utah Administrative Code ("UAC") R3I3-22-38
The requested change in the licensee's name would constitute a minor amendment to the
license
UAC R3I3-24-3 requires that an Environmental Analysis be included in
"each new license application, renewal or major amendment"
This application for a change of name is not a request for a new license, a renewal, or a major
amendment Hence, an environmental analysis is not included with this application
Page
Denison Mines (USA) Corp
2.0 REGULATORY CONSIDERATIONS
2.1 Mill Tailings Closure and Reclamation and Surety
As required by DRC in the Approval letter of June 27, 2012, following the change of name on
the Mill's Radioactive Matenals License, the Mill's financial surety instruments will be updated to
reflect
• a change of the Licensee's name to "Energy Fuels Resources (USA) Inc",
• the change of ownership, to the extent applicable, and
• a change of references from "Executive Secretary" to "Director" of the Division of
Radiation Control
3.0 CERTIFICATION
This application has been submitted as of August 3, 2012 by
ENERGY FUELS RESOURCES (USA) Inc
(previously named DENISON MINES (USA) CORP )
/
By
David C Frydenlund August 3, 2012
Vice President, Regulatory Affairs
Page 2
Denison Mines (USA) Corp
ATTACHMENT 1
DRC July 27, 2012 Letter Approving Name Change
Page 3
State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
June 27, 2012
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
David Frydenlund
Vice President Regulatory Affairs and Counsel
Denison Mines (USA) Corp
1050 17^^ Street, Suite 950
Denver, Colorado 80265
RE Acquisition by Energy Fuels Inc of Denison Mines Corp's U S Operations and Name
Change State of Utah Radioactive Matenals License No UTl 900479 and State of Utah
Ground Water Discharge Permit No UGW3 70004
Dear Mr Frydenlund
In your letter dated May 25, 2012, as counsel for the licensee, you notified the Division of
Radiation Control, (DRC), of the intended acquisition by Energy Fuels Inc ("Energy Fuels") of
all of Denison Mines Corp's ("Denison's") United States operations In the above referenced
letter you specifically requested that I approve an indirect transfer of control of Utah Radioactive
Matenals License Number UT 1900479 for the White Mesa uranium mill (the "Mill") from
Denison to Energy Fuels Dennison is presently the ultimate parent company of Denison Mines
(USA) Corp , the operating company and licensee of the Mill located in San Juan County, Utah
In a telephone conversation on June 27, 2012, with John Hultquist and Gwyn Galloway of my
staff, you clanfied the proposed transaction and clanfied that the Energy Fuels shares provided to
Dennison would be distributed to Denison's shareholders on a pro rata basis By distnbuting the
shares, Dennison would no longer hold Energy Fuels shares and Energy Fuels would own 100%
of Denison's United States operations including the Mill located in San Juan County, Utah As
descnbed, DRC staff concurs that the proposed transaction will require an indirect transfer of
control of the Mill License Additionally, in the telephone conversation referenced above, Mr
Hultquist and Ms Galloway requested additional information to address the indirect transfer of
control The requested information was provided in Energy Fuels' letter dated June 27, 2012
The Utah Administrative Code, Subsection R313-19-34(2), states that licenses or nghts granted
by a license cannot be transfened, assigned, or in any manner disposed of, either voluntanly or
involuntanly, directly or indirectly, through transfer of control of a license to a person unless the
195 North 1950 West • Salt Uke City, UT
Mailing Address P O Box 144850 • Salt Lake City UT 84114-4850
Telephone [phone] • Fax [phone] -TDD [phone]
www deq ulnJi gov
Printed on 100% recycled paper
Page 2
Director* shall give wntten consent Please know that the information you submitted has met our
needs Therefore, in accordance with R313-19-34(2), the requested indirect transfer of control is
approved Additionally, approval is granted for the indirect transfer of control regarding the Mill's
Ground Water Discharge Permit No UGW370004
Please note that a name change to the Mill license should be submitted within 30 days of this
approval if a name change is to be made Once the name has been changed on the Mill license, a
modification to the Mill's financial surety mechanism will be required Please note that dunng the
modification to the surety mechanism, in addition to the name and ownership changes, references
to the Executive Secretary should be changed to the Director of the Division of Radiation Control
If you have additional questions regarding this matter, please contact John Hultquist or Gwyn
Galloway at [phone]
UTAH DIVISON OF RADIATION CONTROL
Rusty Lundberg, Director
Please note that due to Senate Bill 21 of the 2012 Utah Legislative Session, references to Executive Secretary of
the Utah Radiation Control Board in the Utah Radiation Control Act and Administrative have been modified to
be the Director of Radiation Control
State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
DRC-20f2-00l63l
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
June 27, 2012
David Frydenlund
Vice President Regulatory Affairs and Counsel
Denison Mines (USA) Corp
1050 17'^ Street, Suite 950
Denver, Colorado 80265
RE Acquisition by Energy Fuels Inc of Denison Mines Corp's U S Operations and Name
Change State of Utah Radioactive Matenals License No UTl 900479 and State of Utah
Ground Water Discharge Pennit No UGW370004
Dear Mr Frydenlund
In your letter dated May 25, 2012, as counsel for the licensee, you notified the Division of
Radiation Control, (DRC), of the intended acquisition by Energy Fuels Inc ("Energy Fuels") of
all of Denison Mines Corp 's ("Denison's") United States operations In the above referenced
letter you specifically requested that I approve an indirect transfer of control of Utah Radioactive
Matenals License Number UT 1900479 for the White Mesa uranium mill (the "Mill") from
Denison to Energy Fuels Dennison is presently the ultimate parent company of Denison Mines
(USA) Corp , the operating company and licensee of the Mill located m San Juan County, Utah
In a telephone conversation on June 27, 2012, with John Hultquist and Gwyn Galloway of my
staff, you clanfied the proposed transaction and clanfied that the Energy Fuels shares provided to
Dennison would be distributed to Denison's shareholders on a pro rata basis By distnbuting the
shares, Dennison would no longer hold Energy Fuels shares and Energy Fuels would own 100%
of Denison's United States operations including the Mill located in San Juan County, Utah As
descnbed, DRC staff concurs that the proposed transaction will require an indirect transfer of
control of the Mill License Additionally, in the telephone conversation referenced above, Mr
Hultquist and Ms Galloway requested additional information to address the indirect transfer of
control The requested information was provided in Energy Fuels' letter dated June 27, 2012
The Utah Administrative Code, Subsection R313-19-34(2), states that licenses or nghts granted
by a license cannot be transfened, assigned, or in any manner disposed of, either voluntanly or
involuntanly, directly or indirectly, through transfer of control of a license to a person unless the
195 North 1950 West • Salt Uke City, UT
Mailing Address P O Box 144850 • Salt Uke City, UT 84114-4850
Telephone [phone] • Fax [phone] -TDD (801) 536^414
www deq ulaii gov
Printed on 100% recycled paper
Page 2
Director* shall give wntten consent Please know that the information you submitted has met our
needs Therefore, in accordance with R313-19-34(2), the requested indirect transfer of control is
approved Additionally, approval is granted for the indirect transfer of control regarding the Mill's
Ground Water Discharge Permit No UGW370004
Plea'se note that a name change to the Mill license should be submitted within 30 days of this
approval if a name change is to be made Once the name has been changed on the Mill license, a
modification to the Mill's financial surety mechanism will be required Please note that dunng the
modification to the surety mechanism, in addition to the name and ownership changes, references
to the Executive Secretary should be changed to the Director of the Division of Radiation Control
If you have additional questions regarding this matter, please contact John Hultquist or Gwyn
Galloway at [phone]
UTAH DIVISON OF RADIATION CONTROL
Rusty Lundberg/Director
Please note that due to Senate Bill 21 of the 2012 Utah Legislative Session, references to Executive Secretary of
the Utah Radiation Control Board in the Utah Radiation Control Act and Administrative have been modified to
be the Director of Radiation Control
Checklist to Provide a Basis for Confidence that Radioactive Materials
will be Used as Specified on the License
APPLICANT INFORMATION:
Name Enery Fuels Resources License Category 2-b
License No UT 1900479 License Action Number 2012 Transfer of Control
STEP 1 - INITIAL SCREENING
instructions for Step 1 Complete Step 1 for ail new applications and applications for transfer of control (change of
ownership) Use the questions in the Worksheet below to make a detennination on whether the applicant or proposed
new owner is a known entity Use safety infomiation in the application as well as sources of infonnation that are
outside of the application to obtain information to answer the questions If the answer to any of the questions in the
Worksheet is "YES," then do not proceed any further (i e, do not complete Step 2) Sign and date the completed fomri
and add it to the IC Guidance Directory in U \Common as Non-Sensitive and Non-Publicly Available If Step 1 is
"NO," add the completed form to the iC Guidance Directory in U \Common as Sensitive and Non-Pubiiciy
Available, and complete Step 2 (Additional Screening - Pre-licensing site visit required)
YES
or NO
The applicant is a known entity or a licensee transfernng control to a known entity Yes
Worksheet
instructions Answer each of the 5 questions below by placing a "yes" or "no" response In the column on the nght
Provide a bnef descnption of the infonnation that was identified Best practces for a reviewer are provided after each
of the questions If the answer to any of the 5 questions is "yes," indicate "YES" in Step 1, Item A, above If the
answers to all of the 5 questons are "no" then indicate "NO" in Step 1, Item A, above
YES
or NO
1 Does the applicant have a current Agreement State or NRC license? The reviewer should 1) contact the
appropnate regulatory authonty to confirm that a valid license exists for the applicant, 2) compare the existing
license to the new application to confim that the application represents a reasonable expansion of the licensee's
existing operation (i e , medical facility adding a gamma knife or an Agreement State licensee obtaining an NRC
license in order to work in NRC junsdiction without filing reciprocity), and 3) contact the licensee's corporate office
to confirm that it has knowledge of and approves of the new application
Descnbe Colorado Radioactive Matenals License Number 1170-01 issued March 7, 2011
Yes
2 Does the applicant have a current State or federal government license/registration/authorization for other
operations within the scope of its proposed licensed activities? (e g , a company authonzed by a State for
mining that is now requesting authorization to use fixed gauges) The reviewer should contact the appropnate
government office to confinn that the license/registration/authonzation is valid, and to detennine how long it has
been in place and whether the established location of use is the same as that now being proposed for the license
The reviewer should take into account how long the license/registration has been in place The reviewer should
also contact the applicant's corporate office to confinn that it has knowledge of and approves of the new application
to possess radioactive matenals
Descnbe
No
3 is the applicant a local, State or federal government entity? The reviewer should contact the local, State or
federal government agency to confirm that the applicant is a government entity
Descnbe
No
4 Does the application only involve the relocation of an existing licensee, or its mailing address, to another
State? This includes new licenses created from existing licenses listing locations in multiple States, in preparation
for transfer of licenses to States that will shortly sign an Agreement with the NRC
Descnbe
No
5 is the application only the result of a licensee failing to submit a renewal application in a timely manner?
Descnbe
No
Signature and Date for Step 1:
Date:
DRC-2012-fbl625
June 27, 2012
VIA FEDERAL EXPRESS
Mr John Hultquist
Director of the Utah Division of Radiation Control
State of Utah Department of Environmental Quality
195 North 1950 West
PO Box 144850
Salt Lake City, UT 84114-4850
Re: Commitment Letter
Dear Mr Hultquist
Please find enclosed the revised commitment letter signed by Energy Fuels Inc Please
destroy all versions of the previous letter we sent and replace with this one
Thanks again for your help and we look fonA^ard to working with you
Yours truly.
Energy Fuels Inc
Curtis H Moore
Eneigy Fuels Resources Corp
\\\vw energN fuels com
44 Union Blvd , Suite 600
Lakewood Coloi ado 80228
Phone [phone]
Fax [phone]
June 27, 2012
VIA PDF AND FEDERAL EXPRESS
Mr Rusty Lundberg
Director of the Utah Division of Radiation Control
State of Utah Department of Environmental Quality
195 North 1950 West
PO Box 144850
Salt Lake City, UT 84114-4850
Re: Acquisition by Energy Fuels Inc. of Denison Mines Corp.'s U.S. Operations.
State of Utah Radioactive Materials License No. UTl 900479 and State of Utah
Ground Water Discharge Permit No. UGW370004
Dear Mr Lundberg
Reference is made to the notice (the "Notice") dated May 25, 2012, provided to you by
Denison Mines (USA) Corp ("DUSA"), of the intended acquisition by Energy Fuels Inc
("Energy Fuels") of all of Denison Mines Corp's ("Denison's") United States operations,
and request under Utah Administrative Code R313-19-34(2) for approval by the
Executive Secretary of the State of Utah Radiation Control Board of the resulting indirect
change of control of State of Utah Radioactive Matenals License No UTl 900479 (the
"Mill License") for the White Mesa uranium mill (the "Mill") from Denison to Energy Fuels
Denison is the ultimate parent company of DUSA, the holder of the Mill License The
Mill License will continue to be held by DUSA
This IS to confirm that Energy Fuels is familiar with the Mill's quarterly Groundwater
Monitonng Reports, Semi-Annual Effluent Reports and other penodic reports filed with
the Utah Department of Environmental Quality Energy Fuels is aware that descnptions
of the Mill facility with regard to existing contamination and ambient radiation levels are
contained in those reports and in other publicly available documents Energy Fuels is
knowledgeable of the extent and levels of contamination and applicable
decommissioning requirements at the Mill
Upon completion of the Transaction descnbed in the Notice, Energy Fuels will become
the ultimate parent company of DUSA Energy Fuels confirms and agrees that, as
Eneigy Fuels Resouices Corp
www enet!i\ fuels com
44 Union Blvd , Suite 600
Lakewood Coloi ado 80228
Phone [phone]
Fax [phone]
ultimate parent company and owner of all of the outstanding shares of DUSA, it will not
take any action, in its capacity as shareholder, that would interfere with DUSA's ability to
abide by all constraints, license conditions, requirements, representations, and
commitments identified in and attnbuted to the Mill License and the above-referenced
Groundwater Discharge Permit
If you have any questions or require any further information, please contact me
Yours truly.
Energy Fuels Inc
Stephen P Antony
President and Chief Executive Officer
cc Curtis H Moore, Energy Fuels
Ron F Hochstein, Denison
Harold R Roberts, Denison
David C Frydenlund, Denison
Eneigy Fuels Inc
Suite 500, 2 Toronto Stieet
Toionto, Ontario M5C 2B6
\\ww energN luels com
44 Umon Blvd , Suite 600
Lakewood Coloi ado 80228
Phone [phone]
Fax [phone]
Energy Fuels Inc.
June 27,2012
VIA PDF AND FEDERAL EXPRESS
Mr Rusty Lundberg
Director of the Utah Division of Radiation Control
State of Utah Department of Environmental Quality
195 North 1950 West
P O Box 144850
Salt Lake City, UT 84114-4850
Re: Acquisition by Energy Fuels Inc of Denison Mines Corp.'s U.S Operations.
State of Utah Radioactive Materials License No UT1900479 and State of Utah
Ground Water Discharge Permit No. UGW370004 \
Dear Mr Lundberg
Reference is made to the notice (the "Notice") dated May 25, 2012, provided to you by
Denison Mines (USA) Corp ("DUSA"), of the intended acquisition by Energy Fuels Inc
("Energy Fuels") of all of Denison Mines Corp's ("Denison's") United States operations,
and request under Utah Administrative Code R313-19-34(2) for approval by the
Executive Secretary of the State of Utah Radiation Control Board of the resulting indirect
change of control of State of Utah Radioactive Matenals License No UT1900479 (the
"Mill License") for the White Mesa uranium mill (the "Mill") from Denison to Energy Fuels
Denison is the ultimate parent company of DUSA, the holder of the Mill License The
Mill License will continue to be held by DUSA
This is to confirm that Energy Fuels is familiar with the Mill's quarterly Groundwater
Momtonng Reports, Semi-Annual Effluent Reports and other penodic reports filed with
the Utah Department of Environmental Quality Energy Fuels is aware that descnptions
of the Mill facility with regard to existing contamination and ambient radiation levels are
contained in those reports and in other publicly available documents Energy Fuels is
knowledgeable of the extent and levels of contamination and applicable
decommissioning requirements at the Mill
Upon completion of the Transaction described in the Notice, Energy Fuels will become
the ultimate parent company of DUSA Energy Fuels confirms and agrees that, as
ultimate parent company and owner of all of the outstanding shares of DUSA, it will not
take any action, in its capacity as shareholder, that would interfere with DUSA's ability to
abide by all constraints, license conditions, requirements, representations, and
commitments identified in and attnbuted to the Mill License and the above-referenced
Groundwater Discharge Permit
If you have any questions or require any further information, please contact me
Yours truly,
Energy Fuels Inc
Stephen P Antony
President and Chief Executive Officer
cc Curtis H Moore, Energy Fuels
Ron F Hochstein, Denison
Harold R Roberts, Denison
David C Frydenlund, Denison
DENISO
MINES
May 25, 2012
VIA PDF AND FEDERAL EXPRESS
DRC-20f2-001543
MAV 2012
Denison IMines (USA) Corp
105017th street, Suite 950
Denver, CO 80265
USA
Tel [phone]
Fax [phone]
www denisonmines com
Mr Rusty Lundberg
Executive Secretary
Utah Radiation Control Board
Co-Executive Secretary
Utah Water Quality Board
State of Utah Department of Environmental Quality
195 North 1950 West
PO Box 144850
Salt Lake City, UT 84114-4850
Re: Acquisition by Energy Fuels Inc. of Denison Mines Corp.'s U.S. Operations and
Name Change. State of Utah Radioactive Materials License No. UTl 900479 and State of
Utah Ground Water Discharge Permit No. UGW370004
Dear Mr Lundberg
This IS a notice of an intended acquisition by Energy Fuels Inc ("Energy Fuels") of all of
Denison Mines Corp's ("Denison's") United States operations, and a request under Utah
Administrative Code ("UAC") R313-19-34(2) for approval by the Executive Secretary of the
State of Utah Radiation Control Board (the "Executive Secretary") of the resulting indirect
change of control of State of Utah Radioactive Matenals License No UTl 900479 (the "Mill
License") for the White Mesa uranium mill (the "Mill") from Denison to Energy Fuels Denison is
the ultimate parent company of Denison Mines (USA) Corp ("DUSA"), the holder of the Mill
License The Mill License will continue to be held by DUSA
As the Mill's State of Utah Ground Water Discharge Permit No UGW370004 (the "GWDP") and
the Mill License will continue to be held by DUSA, Denison does not believe that the indirect
change of control descnbed below will constitute a transfer of the GWDP as contemplated by
Part IV L of the GWDP or UAC R317-6-6 18 However, should the Co-Executive Secretary of
the State of Utah Water Quality Board (the "Co-Executive Secretary") determine othenA/ise,
please consider this to also be a notice pursuant to Part IV L of the GWDP and UAC R317-6-
6 18
Description of the Transaction
On May 23, 2012, Denison entered into an Arrangement Agreement (the "Agreement") with
Energy Fuels, pursuant to which Energy Fuels will, subject to receipt of regulatory and other
approvals, acquire all of Denison's U S subsidianes and hence all of Denison's U S operations,
Letter to Mr R Lundberg
May 25, 2012
Page 2 of 8
including the Mill More specifically, the implementation of the terms of the Agreement will result
in Denison selling all of the outstanding shares of common stock of Denison's wholly-owned
subsidianes, Denison Mines Holdings Corp ("DMHC"), a Delaware corporation, and White
Canyon Uranium Limited ("White Canyon"), an Australian corporation, which together own all of
DMHC's direct and indirect subsidianes (collectively, the "Denison U S Group"), in exchange for
common shares of Energy Fuels (the "EF Shares"), which EF Shares will then be distnbuted by
Denison on a pro rata basis to Denison's shareholders (collectively, the "Transaction")
Denison, an Ontano corporation listed on the Toronto Stock Exchange and the NYSE MKT, is
engaged in uranium exploration, development, mining and milling, with uranium production and
development projects in both the United States and Canada and uranium development projects
in Canada, the United States, Zambia and Mongolia While Denison owns U S and non-U S
assets, this Transaction only involves Denison's U S assets
All of Denison's U 8 assets are held directly or indirectly through DMHC Denison, either
directly or through its wholly owned subsidiary White Canyon, holds all of the outstanding
shares of common stock of DMHC DMHC holds its uranium mining and milling assets through
wholly-owned subsidianes, including the Mill through Denison White Mesa LLC, a Colorado
limited liability company All of Denison's U S properties are operated by DUSA, a wholly-
owned Delaware subsidiary of DMHC A chart showing Denison and its U S subsidianes is
attached hereto as Attachment A
Energy Fuels, an Ontano corporation listed on the Toronto Stock Exchange, is a uranium and
vanadium exploration and development company, with its current projects, located in the states
of Colorado, Utah, Arizona, Wyoming and New Mexico, owned and operated through a number
of wholly-owned subsidiaries A chart showing Energy Fuels and its subsidianes is attached
hereto as Attachment B
The Transaction will result in Energy Fuels, through a number of subsidianes, owning the Mill,
along with all of Denison's existing uranium/vanadium development properties in Utah, Colorado
and Anzona and Energy Fuels' existing uranium/vanadium properties in the same geographic
regions in Utah, Colorado and Wyoming A chart showing Energy Fuels and its subsidiaries,
after completion of the Transaction, is attached hereto as Attachment C
Upon completion of the Transaction, Energy Fuels will increase the size of its Board of Directors
from 8 to 10, and will fill these two additional Board positions with nominees provided by
Denison After completion of the Transaction, the current President and Chief Executive Officer
of Energy Fuels, Mr Stephen P Antony, will continue to be the President and Chief Executive
Officer of Energy Fuels, and the current Executive Vice President, U S Operations of DUSA,
Mr Harold R Roberts, will become the Executive Vice President and Chief Operating Officer of
Energy Fuels Mr Gary R Steele, the current Executive Vice President Corporate Marketing
and Secretary of Energy Fuels, will become Senior Vice President Corporate Marketing of
Energy Fuels Mr Jeffrey L Vigil, the current Vice President and Chief Financial Officer of
Energy Fuels, will continue in that position The current Vice President, Regulatory Affairs and
General Counsel of DUSA, Mr David C Frydenlund, will become the Senior Vice President,
Regulatory Affairs and General Counsel of Energy Fuels There will be no changes of any
significance in the management of DUSA responsible for operation of the Mill and compliance
With the Mill License and GWDP, as a result ofthe Transaction
DENISO
MINES
Letter to Mr R Lundberg
May 25, 2012
Page 3 of 8
Upon completion of the Transaction, DUSA will change its name to "Energy Fuels Mines Corp "
or a similar name At such time that the Transaction is complete, DUSA will advise the
Executive Secretary and Co-Executive Secretary of its change of name and request that the Mill
License and GWDP be amended to reflect the name change Please advise us if there is any
reason why such a change of name would not be approved by the Executive Secretary and Co-
Executive Secretary as an administrative matter The names of Denison's other existing U S
subsidiaries will also be changed in a similar fashion
Special meetings for the shareholders of each company to approve the Transaction are
currently scheduled to be held on or about June 25, 2012 The parties expect the transaction to
be completed on or before June 30, 2012
Transaction Involves an Indirect Change of Control
As descnbed above. Energy Fuels will be acquinng all of the shares of White Canyon and
DMHC DUSA, the holder of the Mill License and GWDP is a wholly owned subsidiary of
DMHC As a result, although the Mill License and GWDP will continue to be held by DUSA, the
Transaction will involve an indirect change of control of DUSA Approval of this indirect change
of control, as it relates to the Mill License, is therefore required under UAC R313-19-34(2), and
IS consistent with the U S Nuclear Regulatory Commission's Guidance About Changes of
Control and About Bankruptcy Involving Byproduct, Source, or Special Nuclear Materials
Licenses - Final Report (NUREG-1556, Vol 15)
As stated above, however, because the Transaction does not involve a transfer of the
License or GWDP, Denison does not believe that the provisions of Part IV L of the GWDP and
UAC R317-6-6 18 are applicable
No Changes to Personnel or Duties.
The Mill License and GWDP will continue to be held by DUSA DUSA will continue to be wholly
owned by DMHC There will be no changes of any significance in the personnel of DUSA or
Denison White Mesa LLC, the continued owner of the Mill, as a result of the Transaction DUSA
will continue to operate the Mill and be the holder of the Mill License and GWDP Hence, there
Will be no changes in the personnel or duties that relate to the Mill or to the Mill License or
GWDP programs Existing Mill License and GWDP contacts at DUSA and the Mill will continue
unaffected No new individuals will be required to be listed on the Mill License or GWDP The
completion of the Transaction will result in the addition of Energy Fuels personnel to the existing
DUSA management team
No Changes in Organization, Location, Facilities, Equipment or Procedures.
This Transaction merely involves Energy Fuels acquinng White Canyon and DMHC This will
involve an indirect change in control of DUSA, from one publicly traded company to another
publicly traded company The direct ownership, operation and management of the Mill will not
be impacted There will be no changes in the organization, location, facilities, equipment or
procedures (operating or emergency) that relate to the Mill License or GWDP programs The
location of the pnncipal facilities and the DUSA management personnel responsible for the Mill
License and GWDP will not change
DENISO
MINES
Letter to Mr R Lundberg
May 25, 2012
Page 4 of 8
Status of Surveillance Programs at the Mill
The surveillance programs at the Mill are currently in compliance with Mill License and GWDP
conditions The Transaction will have no impact on the status of the surveillance systems at the
Mill
Records.
As the Transaction will have no impact on Mill operations, there will be no transfer of records
concerning the safe and effective decommissioning of the Mill All records will remain with
DUSA, the holder of the Mill License and GWDP Descnptions of the facility with regard to
existing contamination and ambient radiation levels can be found in the Mill's quarterly
Groundwater Monitonng Reports, Semi-Annual Effluent Reports and other penodic reports filed
With the Co-Executive Secretary and the Executive Secretary These descnptions will not be
impacted by the Transaction Energy Fuels is knowledgeable of the extent and levels of
contamination and applicable decommissioning requirements at the Mill
Financial Surety
The financial surety for the Mill will continue to be provided by DUSA, and will be unaffected by
the Transaction A bond nder will be provided after the closing of the Transaction and change
of name of DUSA, to reflect the change of name
No Transferee
There will be no transferee of the Mill License, GWDP or DUSA The Mill License and GWDP
Will remain with DUSA However, there will be an indirect change of control of DUSA through
the acquisition by Energy Fuels of all of the shares of White Canyon and DMHC As the
Transaction will not involve a transfer of the Mill License or GWDP to any person, there is no
need to consider whether or not a transferee will abide by all constraints, conditions,
requirements and commitments of DUSA or whether or not a transferee will submit a complete
descnption of the proposed licensed program There is also no need for a written agreement
between the existing and new permittee, containing a specific date for transfer of permit
responsibility, coverage, and liability between them, as referenced in Part IV L ofthe GWDP and
UAC R317-6-6 18, because DUSA will continue to be the permittee DUSA, as licensee and
permittee, will continue to abide by all constraints, conditions, requirements and commitments in
the Mill License and GWDP No amendments to the Mill License or GWDP will be required as a
result of the Transaction, other than to reflect the change of name of DUSA, as holder of the Mill
License and GWDP, after consummation of the Transaction and change of name of DUSA
This IS therefore not an application for a new or amended Mill License or GWDP Applications
to amend the Mill License and GWDP to reflect the name change will be submitted after
completion of the Transaction
DUSA hereby requests that the Executive Secretary provide wntten consent to the indirect
change of control of DUSA, the Mill License holder, as a result of the Transaction, as required
by UAC R313-19-34(2)
DUSA also requests that the Co-Executive Secretary confirm that the Transaction does not
involve a transfer within the meaning of Part IV L of the GWDP and UAC R317-6-6 18, or, if the
DENISO
MINES
Letter to Mr R Lundberg
May 25, 2012
Page 5 of 8
Co-Executive Secretary determines that the Transaction involves such a transfer, that the Co-
Executive Secretary provide wntten consent to such transfer under Part IV L of the GWDP and
UAC R317-6-6 18
If you have any questions or require any further information, please contact the undersigned at
303-389-4130
Yours tn
DaVld C Frydenlund
Vice President and General Counsel
cc Ron F Hochstein
Harold R Roberts
Jo Ann S Tischler
Stephen P Antony, Energy Fuels
DENISO
MINES
Letter to Mr R Lundberg
May 25, 2012
Page 6 of 8
Attachment A-Pre-Transaction Organizational Structure of Denison's U.S. Operations
Denison Mines Corp
(Ontano)
100%
70 1%
Denison Mines
Holdings Corp
(Delaware) 29 9%
White Canyon Uranium
Limited
(Australia)
100% 100%
Denison Mmes
(U S A) Corp
(Delaware)
Denison White
Mesa LLC
(Colorado)
100%
Denison Henry
Mountams LLC
(Colorado)
100% 100% 100% 100%
Utah Energy Corporation
(Delaware)
Denison Colorado
Plateau LLC
(Colorado)
Denison Anzona
Stnp LLC
(Colorado)
Denison Properties LLC
(Colorado)
DENISO
MINES
Letter to Mr R Lundberg
May 25, 2012
Page 7 of 8
Attachment B-Existing Energy Fuels Organization Structure
Energy Fuels Inc
(Ontano)
1 1 100%
Energy Fuels Resources
Corporation
(Colorado)
100%
Magnum Uranium Corp
(Bntish Columbia)
100%
Magnum Minerals USA
Corp
(Nevada)
100%
Titan Uranium Inc
(Canada)
100%
Uranium Power Corp
(Bntish Columbia)
100%
Energy Fuels Wyoming
Inc
(Nevada)
DENISO
MINES
Letter to Mr R
May 25, 2012
Page 8 of 8
Lundberg
Attachment C-Post Transaction Organization Structure
Energy Fuels Inc
(Ontano)
100% 100%
Energy Fuels Resources
Corporation
(Colorado)
Magnum Uranium Corp
(Bntish Columbia)
100%
Magnum Mmeral USA
Corp
(Nevada)
100%
100%
Titan Uranium Inc
(Canada)
100%
Uranium Power Corp
(Bntish Columbia)
100%
Titan Uranium U S A Inc
(Nevada)
100%
White Canyon Uranium
Limited
(Australia)
70 1%
Denison Mmes
Holdmgs Corp
(Delaware)
29 9% J
100%
Denison Mmes
(U S A) Corp
(Delaware)
Denison White
Mesa LLC
(Colorado)
100%
Denison Henry
Mountams LLC
(Colorado)
100% 100% 100%
Utah Energy Corporation
(Delaware)
Denison Colorado
Plateau LLC
(Colorado)
Denison Anzona
Stnp LLC
(Colorado)
100%
Denison Properties LLC
(Colorado)
DENISO
MINES