DRC-2011-007811 - 0901a068802a7620

State of Utah
GARY R. HERBERT
Governor
GREG BELL
Lieutenant Governor
September 14, 2011
Depart]
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Dane L. Finerfrock
Director DRC- 201 1-007 6
DRC-2011-007811
Mr. Jon C. McKay
Uranium One Exploration USA Inc. (Ul Exploration)
11850 South Highway 191, Ste. A-5
Moab,UT 84532
Subject: September 7, 20il Wells Fargo Bank Trust Surety Escalation Payment and Balance
Confirmation Letter; September 6, 2011 Wells Fargo Bank Holdings List Balance
Statement with a Record of Transactions Receipt; Uranium One Exploration USA Inc.,
Radioactive Materials License Number UT0900480; 2011 Surety Closeout Letter
Dear Mr. McKay: >
We received the subject letter, statement and receipt from Wells Fargo Bank regarding the Surety
Account balance as dated above. Our surety estimate approval letter, dated August 3, 2011
approved the surety amount of $8,328,140. This amount is covered by the subject current account
balance as attested by Wells Fargo Bank. These items satisfy the requirement for submittal of
evidence of surety.
Therefore the 2011 surety requirements of the license have been satisfied, and this matter is
closed until the next required surety submittal, in 2012. If you have any questions on the above,
please contact Mr. David Rupp at [phone].
UTAH RADIATION CONTROL BOARD
Rusty Lundberg, Executive Secretary
Cc: Mr. Norman Schwab, Vice President, Ul Inc.
F:\drupp\wp\UfaniumOne\Surety\2010\Closeout2011Surety.doc
168 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. BOA 144850 • Sail Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.ffoy
Printed on 100% recycled paper
WELLS
FARGO
Wells Fargo Bank, N A.
Corporate Trust and Escrow Services
1740 Broadway, MAC C7300-107
Denver, CO 80274
(303)-863-6o29, Phone
(303)-863-5645, Fax
[e-mail]
September 7, 2011
David A. Rupp, P.E.
Utah Division of Radiation Control
P.O. Box 144850
Salt Lake City, UT 84114-4850
Subject: UraniumOne/Utah DRC 04/30/07 Trust Escrow Shootaring Surety Escalation Payment
Account
Dear David:
This letter is to confirm our receipt of UraniumOne's escalation payment to Wells Fargo in the amoimt
of $217,369 on August 24,2011 increasing the Bond amount to $8,328,140.00 as per the State of Utah's
request. I have also enclosed a transaction document for the account showing the deposit was received
and a balance statement shoving the total amount in the account as of September 7, 2011.
As always, I am available to answer your questions and can be reached at 303 863 6029.
Sincerely,
Gregory S. Rosenblum
Relationship Manager
Corporate, Municipal and Escrow Solutions
Together we'll go far
Wells Fargo Bank, N.A.
WELLS FARGO & CO
HOLDINGS LIST PRICED AS OF: 9/06/11
URANIUM ONE/UTAH DRC 4/30/07 TRUST CASH BASIS
: .. ' • V • ' • ' ; • ' •
SECURITY DESCRIPTION ~p ANNUAL INC/ CURR
S SHARES/PV , MARKET VALUE FEDERAL COST %MKT UNREAL G/L YIELD
PROPRIETARY FUNDS
ADMIN PG 1
09/07/11 11:51
WF ADV CASH, INVT MM-ADMIN #94 6
8,328,783.2400 8,328,783.24
VP7001457 , 1
8,328,783.24 100.0
INVESTMENTS
PRINCIPAL CASH
TOTAL
INCOME CASH
INV. INCOME CASH
VERY LIQUID BALANCE
8,328,783.24 8,328,783.24 100.0
0.00
8,328,783.24
0.00
0.00
0.00
8,328,783.24
8,328,783.24
833
0 0.0
833
0
0.0
TRANSACTIONS FROM 08/07/11 TO 09/07/11 - ALL PORTFOLIOS
URANIUM ONE/UTAH DRC 4/30/07 TRUST PRIN. CASH
COMMAND ===>
08/06 BALANCES CARRIED FORWARD
08/24 CASH RECEIPT
WIRE RECEIPT
URANIUM ONE-AMERICAS, INC. 907 N POPLAR, SUITE260
CASPER, WY 82601 US RFB=000000233 /FTR/ BNF=D OOOO
00001038377 URANIUM 1 UTAH/UTAH DEQ, RCB SEI ACCOU
NT 1740 BROADWAY, lOTH FLOOR DENVER, CO
80274-0001
0.00
217,369.00
08/25 PURCHASED 217,369 DOLLARS OF
WF ADV CASH INVT MM-ADMIN #946
TRADE DATE 8/25/11
09/01 CASH RECEIPT OF INTEREST EARNED ON
WF ADV CASH INVT MM-ADMIN #946
INTEREST FROM 8/1/11 TO 8/31/11
217,369,00-
69.31
PAGE 1 OF 2
INCOME CASH
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CERTIFIED MAIL. RECEIPT
(Dornestic Mail Only; No Insurance Coverage Provided)
For delivery information visit our website at www.usps.coms
OFFICIAL USE
Postage
Certified Fee
$ Postage
Certified Fee
RE: 8/3/11; surety approval & request / DR
NORMAN SCHWAB
URANIUM ONE, INC.
8055 E TUFTS AVE STE 500
DENVER CO 80237
PS Form 3800. August 2006 See Reverse for Instiuctions
State of Utah
GARY R. HERBERT
Governor
GREG BELL
Lieutenant Governor
Department ol
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
Augusts, 2011
CERTIFIED MAIL
(Retum Receipt Requested) ,
Mr. Norman Schwab, Vice President
Uranium One, Inc. .
8055 East Tufts Avenue, Suite 500
Denver CO 80237
Subject: July 6, 2011 Uranium One (Ul) Letter regarding 2011 Surety Update for Reclamation
of the Shootaring Canyon Uranium Mill; June 30, 2011 Ul Letter Request for
Extension of Annual Surety Submittal; RAM License Number UT0900480: Surety
Estimate Approval and Request for Evidence of Surety
Dear Mr. Schwab:
As you are aware, License Condition 9.5 of the subject license requires Ul to submit a surety
update by April 23"*^ annually. We informed Jon McKay of Ul by email on June 27, 2011 that we
had not received the update. On June 30, 2011 we received an email conveying a letter from Ul,
dated June 30, 2011, apologizing for the delay, and requesting an extension to submit the surety
update by July 10, 2011. We later received the subject letter dated July 6, 2011 containing an
estimate update for the subject 2011 surety.
We have reviewed this information and hereby approve the current surety estimate of
$8,328,140. This amount is $217,369 or 2.68% increase from the previous 2010 surety of
$8,110,771. This increase is based on the Consumer Price Index (CPI-U) change from March
2010 to March 2011, as described in the subject July 6, 2011 letter.
As mentioned in previous correspondence, this surety estimate, based on existing conditions, does
not support the pending license amendment application to return to operations in accordance with
the requirements of UAC R313-24-4 (10 CFR 40, Appendix A, Criteria 9 as incorporated by
reference).
195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
4
Mr. Norman Schwab
Augusts, 2011
Page 2
We remind you that Condition 9.5 of your License requires that you submit evidence of
corresponding financial surety for the above approved amount, within 30-days of receipt of this
estimate approval letter. If you have any questions, please contact Mr. David Rupp of my staff.
UTAH RADIATION CONTROL BOARD
Rusty Lundberg
Executive Secretary
Cc: Mr. Jon McKay, Uranium One Americas, Inc.
F:\drupp\ Uranium One\ Surety\201 IXEstApprovalRl 08-03-2011 .doc
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^raniumone'
investing In our energy
July 6, 2011
Mr. Rusty Lundberg, Executive Secretary
Utah Radiation Control Board
Utah Department of Environmental Quality
168 North 1950 West
PO Box 144810
Salt Lake City, Utah 84114-4810
Re: 2011 Surety Update for Reclamation of the Shootaring Canyon Uranium Mill License UT 0900480
Dear Mr. Lundberg;
As per License Condition 9.5, Uranium One hereby submits the 2011 surety estimate for reclamation of the
Shootaring Canyon Uranium Mill for Executive Secretary approval as per UAC R313-24-4 and 10 CFR Part
40, Appendix A, Criteria 9 and 10. Over the past year there have been no changes to the site conditions or
the reclamation plan and cost estimate that served as the basis for the previous surety calculation. In January
2011 a revised baseline estimate was completed and approved and this is the basis for the estimate submitted
for 2011. Using this baseline and inflating the estimate using the Consumer Price Index we have determined
the amount as follows:
Using the Consumer Price index for all urban consumers - (CPI-U), U.S. city average, all items, from March,
2010 (210.631) to March 2011 (223.467), found at this link
(ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt), we calculate a 2.68% increase in surety for 2011 as
follows.
(223.467-217.631)/217.631 x 100 =2.68%
Thereforetheincreaseofthe current surety amount of $8,110,771 is calculated as:
$8,110,771 X 0.0268 = $217,369
This results in an updated surety amount of $8,328,140.
Upon the approval of this estimate by the Executive Secretary, Uranium one will submit corresponding
financial surety documents for the amount identified above within 30 days. Please feel free to contact me if
you have any questions or comments regarding this estimate.
uraniumpne
investing in our energy
Sincerely
Normal-Schwab
Vice President, Mining
Uranium One