P.O. Box 218, Grants, NM USA 87020 - Tel: 505.287.8851 - Fax: 505.285.5550 Rio Algom Mining LLC June 16, 2017 Mr. Varughese Kurian Materials Decommissioning Branch Two White Flint North, Mailstop T-8F05, 1545 Rockville Pike Rockville, MD 20852 Subject: Rio Algom Mining LLC – Ambrosia Lake Facility License No. SUA-1473, Docket No. 40-8905 2017 Surety Update – License Condition #22 Dear Mr. Kurian: Rio Algom Mining LLC (RAML) is pleased to submit the 2017 annual surety update for the above referenced source material license. The surety calculations are consistent with 10CFR40, Appendix A, Criteria 9 and 10. Work carried out over the past year includes routine health physics activities, and groundwater monitoring and sampling. For the Final Status Survey, some gamma surveying has occurred; however, the majority of the sampling and analysis is scheduled to occur this summer. In addition, we have preliminary plans to pick up remaining windblown materials and covering Alternative Release Criteria (ARC) areas. The work to be completed this upcoming year resulted in an increase in the anticipated completion costs compared to last year’s estimate. However, the total estimated amount is still substantially less than the current surety amount. The indirect costs in this submittal were revised following the previously received NRC guidance. The 2017 estimate of indirect plus total contingency is $2,513,283. The total estimated cost to complete the work by a third-party is approximately $5,501,494. The enclosed tables summarize the revised 2017 surety calculations. RAML currently retains a financial surety instrument in the amount of $16,000,000. RAML requests approval to retain the current financial surety instrument in place. The attached tables provide supporting information to justify cost estimates (10CFR Part 40, Appendix A, Criterion 9 and Appendix C, NUREG-1620). A summary table is included as well as calculations for the Groundwater, Lined Pond Closure, Monitor Well Closure and Radiological Surveying and Monitoring. The Tailings Reclamation and Mill Decommissioning are complete. The work and cost estimates represented in the tables comes from Scopes of Work submitted to RAML by consultants familiar with the site and the work that needs to be done.
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June 16, 2017 Mr. Varughese Kurian Materials Decommissioning Branch Two White Flint North, Mailstop T-8F05, 1545 Rockville Pike Rockville, MD 20852 Subject: Rio Algom Mining LLC – Ambrosia Lake Facility
Dear Mr. Kurian: Rio Algom Mining LLC (RAML) is pleased to submit the 2017 annual surety update for the above referenced source material license. The surety calculations are consistent with 10CFR40, Appendix A, Criteria 9 and 10. Work carried out over the past year includes routine health physics activities, and groundwater monitoring and sampling. For the Final Status Survey, some gamma surveying has occurred; however, the majority of the sampling and analysis is scheduled to occur this summer. In addition, we have preliminary plans to pick up remaining windblown materials and covering Alternative Release Criteria (ARC) areas. The work to be completed this upcoming year resulted in an increase in the anticipated completion costs compared to last year’s estimate. However, the total estimated amount is still substantially less than the current surety amount. The indirect costs in this submittal were revised following the previously received NRC guidance. The 2017 estimate of indirect plus total contingency is $2,513,283. The total estimated cost to complete the work by a third-party is approximately $5,501,494. The enclosed tables summarize the revised 2017 surety calculations. RAML currently retains a financial surety instrument in the amount of $16,000,000. RAML requests approval to retain the current financial surety instrument in place. The attached tables provide supporting information to justify cost estimates (10CFR Part 40, Appendix A, Criterion 9 and Appendix C, NUREG-1620). A summary table is included as well as calculations for the Groundwater, Lined Pond Closure, Monitor Well Closure and Radiological Surveying and Monitoring. The Tailings Reclamation and Mill Decommissioning are complete. The work and cost estimates represented in the tables comes from Scopes of Work submitted to RAML by consultants familiar with the site and the work that needs to be done.
If you have any questions on this matter or require additional information, please contact me at (209)736-4803 or by email at [email protected]. Respectfully submitted,
Rio Algom Mining LLC.
Theresa Ballaine Site Manager cc: NRC Document Control Attachments
Activity
Real Dollars as of
May 1, 2017
Tailings Reclamation 0
Groundwater 844,616
Mill Decommissioning 0
Lined Pond Closure 887,863
Monitoring Well Closure 145,039
Radiological Survey and Monitoring 1,110,693
Activity Total 2,988,211
Indirects
Site Management (3.9% - RSMeans) 116,540
Overhead at 25% 776,188
Long Term Surveillance and Monitoring Fee ($250K in 1978 $ adjusted )
Using the March 2017 CPI-U Average - (((244.524-67.7)/67.7)+1) X $250,000 902,969
Total Estimated Indirect Costs 1,795,697
Total (Activity + Indirect) 4,783,908
Contingency (15% of Total) 717,586
Estimated Grand Total Financial Assurance 2017 5,501,494
RIO ALGOM MINING LLC - AMBROSIA LAKE OPERATION
FINANCIAL ASSURANCE COST ALLOCATION
SUMMARY
Activity Unit/Quantity Unit Rate Task Estimate SourceDate of