22
POWER RESOURCES Smith Ranch - Highland Uranium Project P. 0. Box 1210 Glenrock, Wyoming USA 82637 Casper: 307-235-1628 Douglas: 307-358-6541 Fax: 307-358-4533 July 30, 2007 Mr. Paul Michalak Nuclear Regulatory Commission Two White Flint North 11545 Rockville Pike, T8F5 Rockville Maryland 20852-2738 RE: Response to letter dated May 22, 2007 NRC License: SUA-1548, Docket: No. 40-8964 Dear Mr. Michalak: Please find attached Power Resources response to surety bond issues identified in your letter of May 22, 2007. The four points have been addressed and if approved will be incorporated in Power Resource, Inc. bond submittals going forward. Please call if me at (307) 358-6541 ext. 46 if you have any questions. Sincerely, ýJohn McCarthy Manager-Health, Safety & Environmental Affairs Cc: L. Spackman, WDEQ/LQD C. Foldenauer File HUP 4.3.3.1 File S Steve Ingle, WDEQ/LQD R 4.6.4.2 File SR 4.6.4.4 Camneco group of companies A member of the

Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

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Page 1: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWERRESOURCES

Smith Ranch - HighlandUranium ProjectP. 0. Box 1210Glenrock, Wyoming USA 82637Casper: 307-235-1628Douglas: 307-358-6541Fax: 307-358-4533

July 30, 2007

Mr. Paul MichalakNuclear Regulatory CommissionTwo White Flint North11545 Rockville Pike, T8F5Rockville Maryland 20852-2738RE: Response to letter dated May 22, 2007

NRC License: SUA-1548, Docket: No. 40-8964

Dear Mr. Michalak:

Please find attached Power Resources response to surety bond issues identified in yourletter of May 22, 2007. The four points have been addressed and if approved will beincorporated in Power Resource, Inc. bond submittals going forward.

Please call if me at (307) 358-6541 ext. 46 if you have any questions.

Sincerely,

ýJohn McCarthyManager-Health, Safety& Environmental Affairs

Cc: L. Spackman, WDEQ/LQDC. FoldenauerFile HUP 4.3.3.1 File S

Steve Ingle, WDEQ/LQD

R 4.6.4.2 File SR 4.6.4.4

Camneco group of companiesA member of the

Page 2: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

* -WorleyParsons Komexresources & energy

Mr. John McCarthy July 25, 2007Manager, Environmental Health & Safetyc/o Mary Anne ValentineP.O. Box 210Glenrock, WY 82637

Re: Responses to NRC Remaining Bond Surety Revision Issues

Dear John:

This letter provides responses to the remaining bond surety revision issues identified by theU.S. NRC in their letter dated May 22, 2007.

Item #1:

An estimate of the cost (e.g., delineation, excavation, removal and disposal) of impactedsoils resulting from lixiviant or other liquid releases related to uranium recovery andprocessing operations. A review of SR-HUP spill reports docketed in the Publicly AvailableRecords (PARS) component of the NRC's Agencywide Documents Access and ManagementSystem (ADAMS) since October 2001, indicates 37 reported liquid releases. These includeliquid releases related to wellfield, headerhouse, Satellite facility, Central Processing Plant,and Deep Well Disposal operations.

Response to Item #1

The cost to delineate, excavate, dispose, recontour, and reseed areas impacted by surfacespills is estimated on a "per well basis" and can be located in the current 2007 Surety Bondproposal previously submitted June 30, 2007. PRI has adopted the previously approvedCrow Butte Resources method for determination of impacted soils and incorporated into thecurrent sureties. The Smith Ranch surety estimate can be found on the WF REC. Tab, itemIII and item IV on the Highland surety estimate. The estimated costs for Smith Ranch is$137,108.00 and Highland $ 131,186.82 and can be found on the Attached 2007 SuretyEstimate.

Item #2:

An analysis of the potential for surface releases to infiltrate into the underlying surficialaquifer at SR-HUP. If this analysis indicates the likelihood of surficial aquifer water qualityimpact from surface releases, the cost to investigate the nature and extent of the impact, andremediation of the surficial aquifer, should be addressed in the rebaselined surety estimate.It should be noted that of the 38 reported liquid releases discussed above, four containedvolumes of between 18,000 and 62,400 gallons, with no reported recovered amount.

Page 3: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

WorleyParsons Komexresources & energy

Response to Item #2

The first aquifer at the SR-HUP is located between 150 to 300 feet below the surface. Acrossthe site, and throughout this depth, the geology is composed of predominantly thickly beddedclaystone, mudstone, shale, siltstone, and lesser sandstone of the Wasatch and Fort UnionFormations.

An example of the geology above the first aquifer is provided in a recently completed well ata spill site in Mine Unit H, 6/22/07. The geophysical and lithologic logs of this hole areprovided in Attachment A.

The average sedimentary sequence above the first aquifer at the SR-HUP consists of atleast 120 feet of low-permeability claystone, mudstone, shale, and siltstone. This isconsistent with observations in the well logs provided in Attachment A (130 out of 175 feet ofsediments above the water table are of low permeability). As a result, any surface spills willbe greatly limited in vertical extent and the rate of any residual movement would be veryslow. This information, in conjunction with estimates of the depth of soil impacts presentedin the response to Item 1 (less than 15 feet), PRI does not anticipate that surficial spills willimpact the first aquifer at the SR-HUP. Because of these factors, PRI anticipates no cost toinvestigate or remediate the surficial aquifer at spill locations.

Item #3:

An analysis of the expected life span of mine unit (well field) metal pipes and fittings. Thisanalysis should consider industry experience with the failure rate and timing of metal pipesand pipe fittings due to corrosion and the anticipated operating periods (production andrestoration) of the well fields. Using this analysis as a basis, the costs associated with pipeand pipe fitting repair/replacement should be addressed in the rebaselined surety estimate.

Response to Item #3

Between 2001 - 2006, SR-HUP had 38 reportable spills. This equates to 0.09 % of the totalproduction and injection wells having reportable spills within a five year period.Consequently, this averages 7.6 spills per year from wells carrying 11 e2 materials.

Based on historical records documenting parts failures for injection and production wells, andthe cost to replace these parts, PRI estimates the cost to replace pipes and parts on 0.09%of existing wells would be approximately $1255.66 per year. All assumptions andcalculations associated with this cost estimate are provided in Attachment B.

PRI recommends this cost be used for purposes of estimating replacement part costs for the

rebaselined bond surety estimate.

Item #4:

Please provide restoration mass-balance flow charts for Smith Ranch, Highland, ReynoldsRanch, Gas Hills, and North Butte well fields to confirm water disposal capacity is consistent

Remaining Surety Issues.doc 2 July 31, 2007

Page 4: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

WorleyParsons Komexresources & energy

with anticipated restoration sequence, flow volumes, and storage capacities. If these mass-balance flow charts are not consistent with current water disposal capacity, the costsassociated with increasing the water disposal capacity for each of these sites should beaddressed in the rebaselined surety estimate.

Response to Item #4

The mass balance flow charts for current and future operations are provided in Figures 1 and2, respectively. As these charts illustrate, there is adequate current water disposal capacity.By adding the capacity provided by Deep Disposal Well (DDW) #3, there is also adequatefuture disposal capacity.

Future satellite operations at Gas Hills, Reynolds Ranch, and North Butte will utilize on-sitewater disposal (e.g. deep disposal wells and/or evaporation ponds) and will not affect theliquid balance at SR-HUP other than the small amounts of transported resin liquid.

We hope this addresses the remaining bond surety issues in a satisfactory manner. Pleasecontact me or Mike Franko directly if you have any questions or comments.

Best Regards,WorleyParsons Komex

Robert L. Lewis, PGManager

Remaining Surety Issues.doc 3 July 31, 2007

Page 5: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

Q WorleyParsons Komexresources & energy

Figure 1. Current Mass Balance Flow Chart

Total Available Waste Stu Capacty. 329 gpm

Total Waste Stuam Volumte 290 gpm

Unused System Capacit 48 opm

Remaining Surety Issues.doc 4 July 31, 2007

Page 6: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

WorleyParsons Komexresources & energy

Figure 2. Future Mass Balance Flow Chart

Tobta Am.ttshts 'MAvsSftWAnCqMKT 464 Wm

Total Waste $1ens Volume: 305 gpm

Unused System Capadty. 99 gpm

Remaining Surety Issues.doc July 31, 2007

Page 7: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

WorleyParsons Komexresources & energy

Attachment A

Well Log for H-12Mine Unit H Spill Site Well

Remaining Surety Issues.doc 6 July 31, 2007

Page 8: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

WorleyParsons Komexresources & energy

UdO H-12RA HM40O 24S

Remaining Surety Issues.doc 7July 31, 2007

Page 9: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

WorleyParsons Komexresources & energy

LITHOLOGY LOG- JanA

PftGE OF

Remaining Surety Issues.doc 8 July 31, 2007

Page 10: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

O1 WorleyParsons Komexresources & energy

Attachment B

Cost Assumptions for Replacement of Welifield Pipes andFittings

Remaining Surety Issues.doc 9 July 31, 2007

Page 11: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

WorleyParsons Komexresources & energy

Between 2001 - 2006, SR-HUP had 38 reportable spills; this equates to 0.09 % of the totalproduction and injection wells having a reportable spills within a five year period.Consequently, this averages 7.6 spills per year from wells carrying 11 e2 materials.

SR-HUP records indicate that likely failure for injection wells occur in the following wellfieldparts (with replacement values indicated).

/ inch pop off - $16.81

1 / X 1 inch reducing collar - 7.181 / inch poly transition - 11.631 inch mpt X smpt hose - 40.004.5 inch completion cap - 50.00/ inch pressure valve - 16.00

¼ inch valve - 19.751 inch nipple - 2.50

Total $163.88

If all parts were replaced during repair and or maintenance, costs would be $164.00 per well.Calculating the total costs for 0.09 % of the injections wells annually:

0.09% X 5902 injection wells = 5.4 wells5.4 wells X $164.00 per well = $ 890.26 annually

SR-HUP records indicate that the likely failures for production wells occur in the followingparts (with replacement values indicated).

2 inch mpt X 1 ½ inch mpt swage - $18.642 3/8 inch eve X 1 ½ fpt swage - 55.502 3/8 inch ewe X 1 ½ inch reducer collar - 36.671 ½ inch X 1 inch reducing collar - 11.261 inch mpt X smpt hose - 40.00

Total $162.07

If all parts were replaced during repair and or maintenance, costs would be $ 162.00 perproduction well. If 0.09% of all production wells were repaired or replaced annually:

0.09 % X 2361 production wells = 2.2 wells

2.2 wells X $ 162.00 = $ 356.40

Total parts replacement on 0.09 % of injection and production wells:

$ 890.56+ 356.40$ 1255.66 Annually

Remaining Surety Issues.doc 10 July 31, 2007

Page 12: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC SMITH RANCH URANIUM PROJECTSURETY ESTIMATE REVISION

I IIIIITotal Restoration and Reclamation Cost Estimate

L GROUNDWATER RESTORATION COST $10,293,022

IL EQUIPMENT REMOVAL & DISPOSAL COST $365,345

IlL BUILDING DEMOLITION AND DISPOSAL COST $1,165,980

IV. WELLFIELD BUILDINGS & EQUIPMENT REMOVAL & DISPOSAL COST $671,510

V. WELL ABANDONMENT COST $1,782,875

VL WELLFIELD AND SATELLITE SURFACE RECLAMATION COST $248,403

VIIL TOTAL MISCELLANEOUS RECLAMATION COST $1,000,120

SUBTOTAL RECLAMATION AND RESTORATION COST ESTIMATE $15,527,254

SUBTOTAL $15,527,254

ADMINISTRATIVE, OVERHEAD, AND CONTINGENCY ITEMS (25%) $3,881,814

TOTAL $19,409,068

TOTAL CALCULATED SURETY (IN 2006 DOLLARS) $19,409,100

Revised June 2007 I TOTALS

Page 13: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC SMITH RANCH URANIUM PROJECTSURETY ESTIMATE REVISION

O h. Uxd•-S 8.6

W.8N4led md 0.1.181. S..ft Red.a.88.. .Nh. -I MOh. Ur88-2 MO.. 0.8-3 C.o:P. MNi. U11-4 MI.. U1.-4A M&. 08. 15 Oh. .Ult-ISA MU.. U08-K .. U7.8-9

.27.1 53.2 387 18.0 31.4 29.6 59.0 18.0 23.0 59.0

S t2co 1' $820 1 29 0 S4 280 $280 1280 S280 1280 1280 $808So 0M 8 a L ay , A.% -d Road I.1-2io Cot 7,588 $14,907 S10,84 $5,040 18800 $a, 816,520 850440 $4 816,322Io 0. 4 8 6 A-. RodmoI. Coo8 S___0,985

EL, Su= K0A .Rai;;.18 I ___ __R-i SR-2

o-f~i9.Mt.(-oI.. _______ 2.05 3,.ýDo4.of08trgdTowo~iI88I) I I

I ff a,.&: L-oI aowod

.1.~ oo W E 4, I ~ A Il(81...) S8914.22 1814.22S"W0h

0 8R08......L... 8166 12.443

no oMTo.oiI, Removed 3o) ____]507 4.00 ______

IjippingitCod 0W DEQ Ch,8 m No. 12.. A1.11 (Stn) 10.711 10.7190utudoi pp

90 5 5)A ost $ 2,348 $343

I I ./scig .edi Un0it Cost (Sin.) s __ 290 2820I 88 Die,, /O 9ýi [ý 1574 88404861, fR.I..I O86ý1 W SIt 4,391 $6.709

z~~~~b iI:.11 1.O 3 08-2.d'U M ~ ,~ 6 j______Mt.. U.1.1-1 Ohi. 0041-2 088.. U.11-3 C..88M.. 001- 4 Oh.w U2.8-4A 088.. U.8I-15 Mb .08- 15A Af8.. 0.88 K ?m88.081.89

I I n.h ofcmt ia. oiI (0.4. 37 yd58W jojooti.. md dprod.80insoI- e.ii.. ) 120.25 150.96 146152 126.91 10IL12 278.611 90.28 140.37 284.551

jlw~p $ ___ 3,908.13 14,906.20 84,761.90 WeO. acotootod 14,124.58 $3,3518.90 19.054.83 82,934.10 S48= 18.597.881_______ ol n-boo ftr)'ýý 2 8.-m. 1,022.13 283~.16 Si924142 fA. i.8963 81,078.74 8868.02 22,36&19 81767.38 $1,261.15 S2,248.68

28,.),. oo.J ott.) ýsa ý.t ojd S4,962.58 olti 6,201.69 86,019.65 15,215.64 84,199.25 S111,435.34 93,713.81 S6055 810,858.88

D.- d -- 6 (in.L ot 2E'o-, ___ $290.90 8280.90 8290.90 828 0.0 8290.90 $820.90 3820.90 81280.90 8290.800'08ta~mmo an~' d $__ __ 7,580.900 S14,907.201 310,841.60 088041) 8,20.90D 85,060.00 Z6,".0

0 31950000.90

3 'ji

T.W _ _ 1TTA 8o .d 81703

Tool

Rooijod J.- 2007 P.B. I al WF REC

Page 14: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC SMITH RANCH URANIUM PROJECTSURETY ESTIMATE REVISION

Mine Unit-3 2nd Mine Unit-4

Ground Water Restoration Mine Unit-1 Mine Unit-2 Mine Unit-3 Comp. Mine Unit- 4 Mine Unit-4A Extension Mine Unit-IS Mine Unit-15A Mine Unit K Mine Unit 9

PV Aumtions IWellfield Area (ff2) (HH x 20 patterns x 10,000) 1,115,229 2,260,172 1,622,462 782,800 1,334,798 1,050,576 340,421 000 800,000 1,000,000 2,600,000

Wellfield Area (acres) 25.6 51.9 37.2 18.0 30.6 24.1 7.8 59.7 18.4 23.0 59.7

Affected Ore Zone Area (ft2) 1,115,229 2,260,172 1,622,462 782,800 1,334,798 1,050,576 340,421 2,600,000 800,000 1,000,000 2,600,000

leted Tbickness 18 24 20 14 18 17 18 19 19 20 20

T 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27Flare Factor 1.7 1.4 1.5 2.2 1.7 1.9 3.4 1.2 2.2 2 1.2

Affected Volume (B3) 34,126,007 75,941,779 48,673,860 24,110,240 40,844,81 9

33,933,605 20,833,765 59,280,000 33,440,000 40,000,000 62,40 0 0

Kialons ýper Pore Volue 68,921 153,372 98,302 48,693 82,490 68,532 42,076 119,722 67,535 80,784 126,023

Number ofPattern3 m Unit(s)

Cu t 1 116 146 162 76 128 101 35 251 89 106 0

Estimated next report period 0 0 0 0 0 0 0 0 40 260

Total Estimated 116 146 162 76 128 101 35 251 89 146 260

Number of Wells in Unit(s)Production Wells

Current 1 115 146 145 Wells 124 101 Wells 251 89 106 0

S Estimnated next report period 0 0 0 included 0 0 included 0 0 40 260

1 Total Estimated " 115 146 145 under 124 101 under 251 89 146 260Injection Wells I Wellfield 3 Wellfield 4

C nt 210 262 251 219 175 and 502 155 185 0

atsnated next report period 0 0 0 0 0 Wellfield 4A 0 0 70 455

Total Estimated 210 262 251 219 175 502 155 255 455

___ Morn8 WellsCurrnt 1 49 50 40 51 39 105 61 56 0

stdimated next report d 0 0 0 0 0 0 0 0 93Total Estimated 49 50 40 51 39 105 61 56 93

Number of Wells er Wellfield 374 458 436 394 315 858 305 457 808

Total Number of W ells 2835 -T5 -0

AiA Well Depth (ft) 500 850 750 850 750 450 500 950 950

L Ground Water Swee CostsPV's Required [1 1 1 1 1 1 1 1 1]

Total Kgds for Treatment 68,921 153,372 98,302 48,693 82,490 68,532 42,076 119,722 67,535 80,784 126,023

$round a Sweep Unit Cost ($/K1) $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35

Subtotal Ground Water Sweep Costs per Wellfield $93,085 $207,144 $1 32,766 $65,765 $111,411 $92,560 $56,828 $161,696 $91,213 $109,107 $170,207

Total Ground Water Sweep Costs $1,291,782

11 Reverse Osmosis CostsPV's Required 3 3 3 3 3 3 3 3 3 3 3Total Kgs for Treatment 206,763 460,116 294,905 146,079 247,471 205,597 126,228 359,166 202,606 242,352 378,069

Reverse Osmosis Unit Cost ($/Kfo $0.96 $0.96 $0.96 $0.96 $0.96 $0.96 $0.96 $0.96 $0.96 $0.96 $0.96Subtotal Reverse Osmosis Costs per Wellfield $197,635 $439,804 $281,887 $139,631 $236,546 $196,521 $120,655 $343,310 $193,662 $231,653 $361,379

Total Reverse Osmosis Costs S2,742,683

mIL Chemical Reductant Costs

ITotal Kgals for Treatment (2 Pore Volumes) 137842 306744 196603 97386 164980 137065 84152 239444 135071 161568 252046

Chemical Reductant Unit Cost ($/Kgal) $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30

Subtotal Chemical Reductant Costs per Wellfield $41,353 $92,023 $58,981 $29,216 $49,494 $41,119 $25,246 $71,833 $40,521 $48,470 $75,614

Total ChemicalR Reductant Costs S573,870

I i.Euo Cot I [IV Elution.Poe otIA.JElutlo jo

I I I t i F I

Revised June 2007 Page I of 3 GW REST

Page 15: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC SMITH RANCH URANIUM PROJECTSURETY ESTIMATE REVISION

Mine Unit-3 2nd Mine Unit-4Ground Water Reto ation Mine Unit-I Mine Unit-2 Mine Unit-3 Comp. Mine Unit- 4 Mine Unit-4A Extension Mine Unit-iS Mine Unit-iSA Mine Unit K Mine Unit 9

Ksa lution Required 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000_ NumerofElution s [ 8 18 11 6 9 8 5 14 8 9 14

[Processing Unit Cost ($/Elution) $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900Subtotal Proeesmg Costs per Wellfield $7,200 $16,200 $9,900 $5,400 $8,100 $7,200 $4,500 $12,600 $7,200 $8,100 $12,600

I I I I Total Elution Costs $99,000B. Deep Well Injection Costs I

Deep Well Injection Volume Ils/Elution) 12 12 12 12 12 12 12 12 12 12 12TotalKgalsforlneetion | 96 216 132 72 108 96 60 168 96 108 168Deep Well Injection Unit Cost s) $1.40 $1.40 $1.40 $1.40 $1.40 $1.40 $1.40 $1.40 $1.40 $1.40 $1.40

Subtotal Deep Well Injeetion Costs] $134 $301 $184 $100 $151 $134 $84 $234 $134 $151 $234Subtotal Well Injection Costs per Wellfield $7,334 $16,501 $10,084 $5,500 $8,251 $7,334 $4,584 $12,834 $7,334 $8,251 $12,834

_....___ Total Well Injection $100,841

"-'--+_ Total: Elution & Deep Well S199,841

V. Monitoring and Sampling CostsA. Active Restoration Period____

Estimated Restoration Period (Years) 2 2 2 2 2 2 2 2 2 2 2

I of Wells 49 51 43 55 36 108 60 61 93' S/___ple$50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50

___eea6 6 6 6 6 6 6 6 6Sub-total Restoration Analyses $29,400 $30,600 $25,800 $33,000 $21,600 $64,800 $36,000 $36,600 $55,800

B. Stability Period IEstimated Stabilization Period (Years) 1 1 1 1 1 1 1 1

1.1 ull Suite Analyses (Guideline 8)4 ofWella 17 31 24 20 10 61 34 34 56Samples/Year 3 3 3 3 3 3 3 3 3$/sam le $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

2 Short List Analyses#'- of Wells 17 31 24 20 10 61 34 34 56

les/Year 9 9 9 9 9 9 9 9 9$1/sa ple $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70

I Sub-total Stability Analyses $20,910 $38,130 $29,520 $24,600 $12,300 $75,030 $41,820 $41,820 $68,880_ Subtotal Monitoring and Sampling Costs per Wellfield $50,310 $68,730 $55,320 $57,600 $33,900 $139,830 $77,820 $78,420 $124,680Total Monitoring and Sampling Costa $686,610

VI. Mechanical Integrity Test (MI) CostsFiveYear MIT Unit Cost ($/well) 1 $188 $188 $188 $188 $188 $188 $188 $188 $188 $188 $188Number of Wells (30% ofIn. and Rest. Wells) 63 79 75 66 53 151 47 77 137

Subtotal Mechanical Integrity Testing Costs per WelIfield $11,855 $14,790 $14,169 $12,363 $9,879 $28,338 $8,750 $14,395 $25,685Total Mechanical Integrity Testing Cost $140,224

TOTAL RESTORATION COSTS PER WELLFIELD $401,572 $838,992 $553,207 $240,112 $475,665 $381,313 $207,313 $757,841 $419,300 $490,296 $770,399TOTAL WELLFIELD RESTORATION COST $5,536,010

- I I i I I IVIL Building Utility Costs ___ Central Plant Main Office Satellite SR-I Satellite SR-2

Electricity ($/Month) $8,500 $1,825 $8,500 $8,500[Number ofMonths _ 48 60 36 36

Subtotal Utility Costs per Building $408,000 $109,500 $306,000 $306,000Total Building Utility Costs I S1,129,S00

viMi.Velicie 6perahon Coss1aNumber of Pickup Trucks/Pvlling Units (CGas) I 0

i 4 i i

Revised June 2007 Page 2 of 3 GW REST

Page 16: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC SMITH RANCH URANIUM PROJECTSURETY ESTIMATE REVISION

Mine Unit-3 2nd Mine Unit-4

Ground Water Restoration Mine Unit-I Mine Unit-2 Mine Unit-3 Comp. Mine Unit- 4 Mine Unit-4A Ertension Mine Unit-15 Mine Unit-iSA Mine Unit K Mine Unit 9Unit Cost in $/hr (WDEQ Guideline No. 12, Table D-I) $20.21Average Operating Time (Hrs/Year) 1000

Total Number of Years (Average) 4Total Vehicle Operation Costs $808,400

IX.Lo Costs I I INumber of Environental Maragers/RSOs I$ Year MV 1 $100,000Number of Restoration r I

___ear Ml $80,000Number ofEnvironmental Technicians 2NmYear MoVI $34,000Number f Perators/Laborers 7S/Year M1 $34,000Number of Maintenance Technicians 2

-/Year I $34,000

jUmr = fYears 4

__Total Labor Costs $2,216,000X. Ca ital Costs 1 I

7 = -r e RO Units (IX400 pm ruits) $600,000Total Capital Costs S600,000

XI. Well Repair/Spill MitiationInjection wellsn air 13.6Cost per iec $164Production wells needing repair 5.5

[Cost per production well $162Total Well Reair Costs $3,112

TOTAL GROUND WATER RESTORATION COSTS S10,293,0221

Revised June 2007 Page 3 of 3 GW REST

Page 17: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC HIGHLAND URANIUM PROJECT2006-2007 SURETY ESTIMATE REVISION

Total Restoration and Reclamation Cost Estimate

I I IL GROUNDWATER RESTORATION COST $9,125,556

IL EQUIPMENT REMOVAL & DISPOSAL COST $138,111

I3. BUILDING DEMOLITION AND DISPOSAL COST $1,741,239

IV. WELLFIELD BUILDINGS & EQUIPMENT REMOVAL & DISPOSAL COST $1,786,264

V. WELL ABANDONMENT COST $1,698,078

VL WELLFIELD AND SATELLITE SURFACE RECLAMATION COST $263,283

VII. TOTAL MISCELLANEOUS RECLAMATION COST $744,644

SUBTOTAL RECLAMATION AND RESTORATION COST ESTIMATE $15,497,175

ADMINISTRATIVE, OVERHEAD, AND CONTINGENCY ITEMS (25%) $3,874,294

1 _ TOTAL $19,371,469

TOTAL CALCULATED SURETY (IN 2006 DOLLARS) $19,371,500

Revised June 2007 Page I of I TOTALS

Page 18: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC HIGHLAND URANIUM PROJECT2006-2007 SURETY ESTIMATE REVISION

Wemed ndStelie urae ecamtinMine Unit- Mine Unit,-DWlfedadStlieSraeRcaainAIR Mine Unit-C Mine Unlt-D Mine Unlt-E Mine Unit-F Mine Unlt-H Ext. mine Unwi- Mine Unlt-J Mine Unit-JA- -I I I I I

I. Wellfeld Pattern Area Redlamatian

1Pattern Area (acres)l 1 20 31 6.5 23 77 26 5 21 28 0I isd Seeding Unit Cost M-/cr) $280 $280 $280 $280 $280 $280 $280 $280 S280 $280

Subtotal Pattern Area Reclamation Costs per Wellfield $5,60( $8,68 $1,820 $6,44 $21,56 $7,280 $1,40 $5,988 $7,840 soTotal Wellflied Pattern Area Reclamation Costs $66,5W(

If. Wellfleld Road ReclamationA. IRoad Construction Before January 1, 1997

Length of Welffield Roads (1000 ft) I12.2 11.3 2.4 13.3 15 0 0 0J 0 0IWenfidld Road Reclamation Unit Cost (S/1 000 ft) $828 $828 $828 $828 $828 $828 $828 $828 $828 $828

Subtotal Pre- 1997 Wenlfield Road Reclamation Costs $10,102 $9,356 $1,987. $11,t012 $12,420 $0 $0 so so soB. Road Construction After January 1, 1997

:: ýof Welfield Roads (1000 ft) I 0.6 0 0 0 3 15.7 5 5 51IWellfield Road Reclamation Unit Cost ($11000 ft) $426 $426 $4261 $426 $426 $426 $426 $426 $426 S426

Subtotal Post- 1997 Wellfeld Road Reclamation Costs $2561 so $0 so $1,278 S6,688 $2,130 $2,130 $2,130 S426Subtotal Road Reclamation Costs per Wellfield $10,3581 $9,356 $1,987 $11,012 $13,698 $6,688 $2,130 $2,130 $2,130 $426otal Welifield Read Reclamation Costs $59,9151

SUBTOTAL SURFACE RECLAMATION COSTS PER WELLFIELD $15,958 $18,036 $3,807 $17,452 $35,258 $13,968 $3,530 K8010 $9,970 $426TOTAL WELLFIELD SURFACE RECLAMATIO COSTIS $126,415

T1H. Sa'telit Are Relmto Satellite No.l Satellite No.2 Satellite No.3

Assmptions: I I !1 Area of Disturbance (acres) I ] I I II Average Depth of Stripped Topsoil (0•) 1 0.67 0.67

Surface Grade: Level Ground[Average Length of Topsoil Haul (ft) 1000 500 500

A.Ri pping Overburden with Dozerjl ip-ping Unit Cost We WDEQ Guideline No. 12, App.II (sare 814.22 $814.22 S814.22

Subtotal R inping Costs l 814.00 $814.00 $814B.Topsoil Application with Scraper

+ Vo~lume of Topsoil Removed (cy) 1613 1081 1081

Subtotal Top~soil Application Costs $1,1451 $767 $767DiC.12 and Seeding I

VIDiscinr/Seeding Unit Cost (S/acre) so $280 $280ISubtotal Discin/Seeding Costs so $280 $280

Subtotal Surfacoe Reclamation Costs per Satellite $1,959 $1,861 S1,861Tot IalS Iatell I te Building Area Reamto costs $5,681

IV Surfac ReclamainA. Removal and disposal of contmae soi arud mes

Volume of conta-ninated soil (0.37 yd3 per injection and production well - estimate) 199 197 43 122 493 174 36 134 132 44Disposal of contaninated soil ($/yd3) (As per Bypout Matera contract) $12.33 $12.33 $12.33 $12.33 $12.33 $12.33 $12.31 $12.33 $12.33 $12.33Eqluipment (Backhoe $65/hr)1 1 $6,457.43 $6,409.33 $1,4D6.93 $3,980.28 $16,017.30 $5,651.75 $1,166.43 $4,341.03 S4,304.95 $1,443.00

ILabor (I man-hour ($17.hr) per 2 Yd3.- estimate) $1,688.87 $1,676.29 $3M7.97 $1,041.00 $4,189.14 $1,478.15 $305.07 $1,135.35 $1,125.91 $377.40Subtotal remroval atid disposal of contaminaied soil 8,158.621 8,097.94 1,787.22 5,033.60 20,218.77 7,142.23 1,483.82 5,488.70 5,443.19 1,832.73

1 1 1 Total 64,686.82B. Recontour and seedingI

I Reontour and seeding (est $280/acre) I$280.00 $280.00 $280.00 $280.00 $280.00 $280.00 $280.00 $280.00] $280.00 $280.00560tC~ noum~edn O 8680 1820 6440 21560 7n8(] 14M 5880] 7M4 0

Total Surfacle Reclamation 131,186.82

TOTAL WELLFIELD AND SATELLITE SURFACE RECLAMATION COSTS S263,283

Revised June 2007 Page 1 of I WF REC

Page 19: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC HIGHLAND URANIUM PROJECT2006-2007 SURETY ESTIMATE REVISION

7 7. 7 7 .7 .7

I OAh..IT.MO I nAh..!r.d.r VtiQNP.tfrn, IC .i.,,I fldftI ThAM.TT.,Ii..fl I NO,,.VT,,*!S I ~ Thai.,.! T.,*LU' n Unlt-D

Ground Water Restoratl•n

Nne UnitA I Nflne UnltB Moe UnIt-C I C-19NPattem jC-HaLd DrMsj WneUnlt-D I Nflne Urdt-E I Milne UnitF NUM UnIt-H NUMEIL ... UnitI jMlne1UnItJ lNune UnitJADIV A,

) 151900 690900 1274000 32500 279500 994500 33480001 11160001 2160001 891231 12000001 40000C

a

ne

j349 15.86 29.25 0.75] Z 6.42 22.83 76.86 25.62 4.96 20.46 27.55 9.1Ej.2) 151900 690900 1274000 32500 0 279500 994500 3348000 1116000 216000 891231 1200000 40000C

ess 15_ 1515 1513_ 1 51 15 15 151 15_ 151 201 2(

•1v I I. 0.27 0.27 0.27 0.27 0.27 0.27 0.271 0,27 0.27 0.27 0.271 0.27rnjcctu Wells/.ft2 I I 2.05E-041 I 2.54E-041 2.63E-041 2.00&-041 2.43E-041 2.45E-041 2.55E.041 2.55E-04 2.55E-04

actor I 2.94 2.94 2 2 2.5 2.6 21 2.4 2.5 2.5 2.51 2.5C. 304686901 382200001 975000] 13600001 10481250[ 38785500 10044000(1 40176000 81000001 334211631 6000000m 20000090

61535 77189 1969 10173 21168 78331 202849 81139 16359 67497 1211761 40392

31 141 465 301 124101 01_ _

0

rpotoperiod__ I0 [ OF 01 0 404031 141 196 465 155 30 124 120

_____I_____ ______

43 !19 125 04049

] ~ ~ ~ 0 01____ t _______

Wn cc t io n W e lls 1 1 1 115

c_____I_50Estm18d next repot o 0[Total Estimle 50

18nv Il

3190

-31-9

1 _ _ 431

74 ___

Well 0sincluded 74under

C-WeI~fieId 3

119

670jEstmaated nett report period 0

JTotal E•t• ed "18 67Restoration Wells

_l____ 1 713 30_Estimated next repr peod 0 0

_Total Estimated 1 13 30

Number of Wells per Wellleld 108 557Total Number of Wells 3899M

00

1,

Average,, Well Deplha IRestratin We'llnstallatilm

500 450zr ____ r _____ r ________ 5 _______ 7 ____

01 01 01 0 1 01 01 01 01 0_ 01 01 _S4.0001 14000 $4,000 $4,000 S4.0001 S4,0001 S4.0001 S4.0001 14,000 S4,0001 14,000 S4,0001 14,000

Spl• e Ir cI So0 SolSol_ __ _

u6 $o4 $sol

Revised June 2007 PWg I of 4 GW REST

Page 20: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC HIGHLAND URANIUM PROJECT2006-2007 SURETY ESTIMATE REVISION

Ground Water Restoration

I1. Ground Water Sweep CostsP~s Re .d i

Ground Water Sweep UniSubtotal Ground Water SwegTotal Ground Water Sweep

Ill. Reverse Ostooss CostsPVs RequiredTotal Kgas for Treatftte

Reverse Osmosis Unit CoSubtotal Revese Ownosts CoTotal Reverse Osmosis Cosý

I I I I IIV. Bloremedlatlon/Cherical Rt

Total sforTrenamsaCheical RrdIctant UnitSubtotal Chemical Reddud

Total Cetmlcal Reductant C

A. Elution PressnCosts

I lphautio RquireNumba of Eution'ts

MineUnit-A I Mne Unit-B I MineUnit-C I C-19NPattern I C•Hul. DrtsrIh IMOUnt-D

1Uh, ItoL~ I L~n tlnt~t4 I Et-hT1nI- I n nItmilt -' 1-u UllL-AI I

I

St03S 61.351ý 31.319 11.33 1017? 121176 40 392

SI.351 SI.351 SI.351 $1.31 $1.35 $1.35 $1.35 %1155

field ____Sol S83,1091 104,2521 S2,659 $13,791 _ S105.794 S273.967Si.053.165

• 3 53 31 3 3 3 31S 6354 234994 668546 243418 49076 20249211 S0,961 SO.96 $0.96 $1.96 S0.96 S0.961 _

$54,553

12117659.96

S115827

80784

4lfel S60.7001 S224.620 S581.682 $232,6731 $46,910 3193,553

1 01 123069] 1543781 3938 20346 1566621 405697 242352

$0.301 S0.301 $0.301 S0.3C $0.301 $0.301 S0.30 10.30

flld so1 $01 36,211] S4,331 S1,181 S6,1041 $1,71 S46999 S21,7091 $24.235

$467.8661 _____________

I 1 1 350001 350001 350001 35071 9

350009 3300t 35000 350001 35

9 2 81 141 [$900 $900 $99 00 $90 900

$8.100 $1r800 $7,20[1 S126001 S4,500/Motion) I I sooo 1 900] soooj

$9001 $6,3001 18,t00 3900

_____121 12 _______ 12____ I1 ______ __.121 121 12

168 60

S4.22 4.22 14.22 S4.22

$51 $355 S456 $51 $51

$951 $65655 $8,556 1951 $951

2 2 2 2 _

0 20 31 5S200 1200 S200. $200 1201

$4.22 14.22$710 $253

$13310

2 2

Revised Jume 2007 Page 2 of 4 GW REST

Page 21: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC HIGHLAND URANIUM PROJECT2006-2007 SURETY ESTIMATE REVISION

Mine Unit-A Mine Unit-B Mine Unit-CI Mine UnIt-D

Mine Unlt-D Mine Unht-E IMaine Unit-F Mine Unit-H EaL i Unit-i/• IJaul "t•-Ift. Mine Unit-J Mine Unit-JACR Dilt,

5 3

6

20 69,

Sub-total Restoranion AB Slha-tem Stability _ _

IEslinated Stabilization Period (Moinhs)

INof Wells ____ISnopleS/Yeor__

12 12 121661 561

1233

6 6 6

i'_l__s_ _le $50 $501 $

I # [ofWeUs 5 201 1 Is•la-c•ycar 1616

S50216

$70

S504

S50o $50666 6 6

_1 _ _ 6] _ _

Is/sntsale 170 S70 S70 S701 70 $70 S70 170I I I5 201 311

/Sub-totlS--tr ti Atjubtotal Mcritoring and Sarrpling Coss p

2 2 212001 200 20' S 200

1_ $5,900 S33.2o01 i $6,7201__Wefild $512,900 1 t08.0001 $128,940 41 .9

2$200

21[12 4 6$21 2 §2 2 2 2

$200 $2•S2001 $200 S0

$33,820 $43,920 S30,5401 8,0801 S14.820 $14,820 $14.820S44,6401 $104,8201 $135,4801 398,1001 S24,•7201 S47,3401 S81.1801 S81,180

YEE•

$1881 S1881 S1181 $1881 118 $188 1188 $1881 11881 S1881 $1881 1881 S188foIn%, and Rest. Wells) I 1 01 01 11 01 . 221 641 2661 951 201 711 721 24

y Testiurt Costs pen Wellield s0.139.7I3

so 120,435 s0 10 S4,177

3152.708

1II,967 S50,128 $17.8381 S3,7821 $13.322 S13,548 S4.516

$45.6461 s411.1391 S529.841 25-35t81 S 74,603 502,7561 $1,184,832 $515.438 $109,222 $393,4811 691.8841 $285.064

Sticity ($/Motih) _

tane (oMolth)soso

-eiso

1 1SntMtlfliNn.2 jlateolln No.3 __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

.1030 1 S110 111116751S6801 S6801 311,1601 1 1______ 1 1____ 1______ 1 1______ ______

us 1 1 sol Sol Sol $5201 SoSIjNut of Months I

Subtotal Utility Costs per 8ildfTotal Buildhne UUllIv Costs

0 60 6 48

L0 $01 $10.38261.180i

Revised Juoe 2007 Page 3 of 4 GW REST

Page 22: Letter from Licensee Re: Response to Smith Ranch-HUP ...the site, and throughout this depth, the geology is composed of predominantly thickly bedded claystone, mudstone, shale, siltstone,

POWER RESOURCES INC HIGHLAND URANIUM PROJECT2006-2007 SURETY ESTIMATE REVISION

9 T 9 I 9 9 I I 7 9 I

Ground Water Rmtorafion

IX. Irftndon Maintenance and MmdtodMA. on enancc mid Rm=

hTioation Opemon MondWYewCost per Month I

ITotal Ntunber offeanSubtotal Mantenance and Rcpw Cost

B. m smrq)lirg I# of Iffigati 2n Ftwd SanV[cstYcu

Costisanwic Tim& Labs - CaýI#Ofvcedztimsa=lcs(ym I

Costs I[itgator No.11 Irator No.2 11667 S667

$20.010 S20.01

61 61,

itl1 1121

4F 4

$12132

$174

fo X4006nRO oo -i-I-___ ____ ___

I Costs

1. veh~e o Mon CostsNumbe" of P Trucks/Pulli Units (GmsUnit Cost in ltr (WDEQ Guideline No.12, Tabl D-I)Aw O Time q~ear I___ __

lTots Number of Yeors (AV• l__ __r•,d ve OperAterage)

Total Vehice Opration Colstl) Loo Cot

Number of Evurmnotol Os

Year I INumber of Restoroion

Ilycar I I_Number of Etkosoul Technicians

Numbr of ors/Labore

S/Yeaw_ _

Number of Mahiirancc Tedoiiciam

Numale of YoursTotal Lobor Costs_________

T _____

S21

SM4,000

4k16.000

XaiitWtI Repair/SoWl Ntimtigton

II S164

Mi~r.] I _

Revised Jour 2007 Page 4 of 4 GW REST