Lessons LearnedLessons LearnedSmall Site Small Site

Transition/TransferTransition/Transfer

Licensee PerspectiveLicensee Perspective

Tom GieckTom GieckUmetco Minerals CorporationUmetco Minerals Corporation

Subject Site (Maybell Title II)Subject Site (Maybell Title II)

Relatively Small Former Heap Leach Facility Relatively Small Former Heap Leach Facility (About 2,000,000 Tons)(About 2,000,000 Tons)

No Groundwater IssuesNo Groundwater Issues

Previously Approved Reclamation Design revised Previously Approved Reclamation Design revised to meet current NRC Criteriato meet current NRC Criteria

First Title II site transferred in ColoradoFirst Title II site transferred in Colorado

Site Located on Federal Land (millsite claims) Site Located on Federal Land (millsite claims) with exception of 20 acre parcel acquired by with exception of 20 acre parcel acquired by licensee (surface only)licensee (surface only)

Maybell Title IIMaybell Title II

Reclamation CompletionReclamation Completion Completed Mill Demolition, Windblown Completed Mill Demolition, Windblown

Cleanup, Cover ConstructionCleanup, Cover Construction

Worked with CDPH&E to generate Worked with CDPH&E to generate Construction Completion Report (CRR)Construction Completion Report (CRR)

CDPH&E Submitted to NRCCDPH&E Submitted to NRC

NRC Comment and ResponseNRC Comment and Response

NRC Approval of CRRNRC Approval of CRR

Problematic Items from DOE Check Problematic Items from DOE Check List for this SiteList for this Site

• USACE provides DOE their request for any additional USACE provides DOE their request for any additional items needed to complete the warranty deed (draft items needed to complete the warranty deed (draft warranty deed is provided for review).warranty deed is provided for review).

• DOE forwards USACE request to licensee, along with the DOE forwards USACE request to licensee, along with the draft warranty deed to be reviewed.draft warranty deed to be reviewed.

• Licensee provides requested information to USACE (and Licensee provides requested information to USACE (and any comments on draft warranty deed.any comments on draft warranty deed.

• DOE provides comments on the draft warranty deed DOE provides comments on the draft warranty deed (once all information requested by USACE has been (once all information requested by USACE has been provided).provided).

• DOE Realty Officer performs the final site inspection and DOE Realty Officer performs the final site inspection and completes the Certificate of Inspection and Possession for completes the Certificate of Inspection and Possession for the USACE as required by the USDOJ; provides the CIP to the USACE as required by the USDOJ; provides the CIP to USACE.USACE.

Problem with Subsurface RightsProblem with Subsurface Rights 10 CFR 40, Appendix A, Criterion 11 – 10 CFR 40, Appendix A, Criterion 11 – “…applicant/operator must “…applicant/operator must

demonstrate a demonstrate a serious effortserious effort to obtain such subsurface rights, and must, to obtain such subsurface rights, and must, in the event that certain rights cannot be obtained, in the event that certain rights cannot be obtained, provide notification provide notification in local public land records of the fact that the land is being used in local public land records of the fact that the land is being used for the disposal of radioactive material and is subject to either an for the disposal of radioactive material and is subject to either an NRC general or specific license prohibiting the disruption and NRC general or specific license prohibiting the disruption and disturbance of the tailingsdisturbance of the tailings.”.”

““Serious Effort” to obtain subsurface rights turned out to be a lengthy process Serious Effort” to obtain subsurface rights turned out to be a lengthy process (ambiguous language)(ambiguous language)

Obtained 1/5 interest in subsurface estate at twice the appraised value, other Obtained 1/5 interest in subsurface estate at twice the appraised value, other owners threaten litigation, etc.owners threaten litigation, etc.

Value of subsurface right necessary to demonstrate “serious effort”Value of subsurface right necessary to demonstrate “serious effort”

Mineral appraisals are extremely expensive – much more then value of Mineral appraisals are extremely expensive – much more then value of subsurface right. Even expert opinion cost several times more then value of subsurface right. Even expert opinion cost several times more then value of subsurface rightsubsurface right

““Serious effort” demonstration acceptable after offer to owners to acquire at Serious effort” demonstration acceptable after offer to owners to acquire at twice the value of the subsurface righttwice the value of the subsurface right

Who determined – DOE not sure, NRC deferred to CDPH&E for determination of Who determined – DOE not sure, NRC deferred to CDPH&E for determination of “serious effort”“serious effort”

Deed Notice – language needs to be accepted/approved by agenciesDeed Notice – language needs to be accepted/approved by agencies

Problem with Site AccessProblem with Site Access Site was located entirely on Federal Land with Site was located entirely on Federal Land with

exception of 20 acre strip purchased by licenseeexception of 20 acre strip purchased by licensee

Title Commitment indicated no access to property Title Commitment indicated no access to property because ROW on Federal lands are not recorded because ROW on Federal lands are not recorded and ROW terminated at withdrawal boundaryand ROW terminated at withdrawal boundary

Exception in Title Commitment was unacceptable Exception in Title Commitment was unacceptable to USACEto USACE

Resolution – underwriter for Title Company Resolution – underwriter for Title Company approved removal of exception because US approved removal of exception because US (regardless of agency) does not have to give itself (regardless of agency) does not have to give itself an easementan easement

Resolution to issue took about 30 daysResolution to issue took about 30 days

Problem with $10.00, and Strange Problem with $10.00, and Strange QuestionsQuestions

Warranty Deed Stated “… for and in Warranty Deed Stated “… for and in consideration of the sum of Ten Dollars ($10.00), consideration of the sum of Ten Dollars ($10.00), and for other good and valuable consideration…”and for other good and valuable consideration…”

A significant amount of time and resources (all parties) A significant amount of time and resources (all parties) spent on resolution of this issue, i.e., does DOE really spent on resolution of this issue, i.e., does DOE really have to issue and document a $10.00 payment to have to issue and document a $10.00 payment to Umetco?Umetco?

USACE asked “would you rate the land as USACE asked “would you rate the land as excellent, good, or average as far as condition?” excellent, good, or average as far as condition?” Deferred response to DOE.Deferred response to DOE.

Our initial reaction was – land has 2,000,000 tons of Our initial reaction was – land has 2,000,000 tons of radioactive waste – outside of that it is in excellent radioactive waste – outside of that it is in excellent condition. condition.

Other Unanticipated requestsOther Unanticipated requests Updated Title Commitment – necessary if Title Evidence is Updated Title Commitment – necessary if Title Evidence is

old (i.e., more then one year).old (i.e., more then one year).

Property Taxes – proof of payment and paid in full prior to Property Taxes – proof of payment and paid in full prior to transfer (check to USACE for advance payment).transfer (check to USACE for advance payment).

Final Inspection by USACE once Title Commitment has been Final Inspection by USACE once Title Commitment has been received and reviewed. Same inspection to complete same received and reviewed. Same inspection to complete same Federal (CIP) form that DOE Real Estate Officer had Federal (CIP) form that DOE Real Estate Officer had performed.performed.

It was finally determined that CIP by DOE was It was finally determined that CIP by DOE was acceptable not necessary for USACE to also complete.acceptable not necessary for USACE to also complete.

Corporate Resolution – Before property is conveyed, owner Corporate Resolution – Before property is conveyed, owner needs to provide signed corporate resolution authorizing needs to provide signed corporate resolution authorizing conveyance, i.e., establishes authority of who executes on conveyance, i.e., establishes authority of who executes on behalf of owner/company.behalf of owner/company.

What Worked WellWhat Worked Well Communication/Cooperation with DOE project Communication/Cooperation with DOE project

manager and staff.manager and staff.

Communication regarding license termination Communication regarding license termination between NRC and CDPH&E.between NRC and CDPH&E.

Updated LTSF amounts by NRC, i.e., current Updated LTSF amounts by NRC, i.e., current amount determined on monthly basis with cutoff amount determined on monthly basis with cutoff date established.date established.

Transfer of funds and verification to US via. NRC.Transfer of funds and verification to US via. NRC. If wire/electronic transfer ensure/verify If wire/electronic transfer ensure/verify

appropriate account information, etc.appropriate account information, etc.

Lessons LearnedLessons Learned Process seems to degrade once personnel outside Process seems to degrade once personnel outside

established DOE, NRC, State, and Licensee team are established DOE, NRC, State, and Licensee team are brought in (i.e., USACE, DOE Real Estate, Licensee brought in (i.e., USACE, DOE Real Estate, Licensee legal/corporate, etc.).legal/corporate, etc.).

Insure access to all private/transferred lands (parcels) are Insure access to all private/transferred lands (parcels) are well defined during preparation of Title Commitment.well defined during preparation of Title Commitment.

Do not assume this process is simple real estate Do not assume this process is simple real estate transaction. DOJ requirements are much different then transaction. DOJ requirements are much different then typical marketable property, inclusive of subsurface rights typical marketable property, inclusive of subsurface rights and water rights (monitor wells, permits, etc.).and water rights (monitor wells, permits, etc.).

Do not assume agencies are effectively communicating --- Do not assume agencies are effectively communicating --- keep the dialog constant.keep the dialog constant.

Insure internal legal and real estate understand DOJ Insure internal legal and real estate understand DOJ requirements.requirements.

Lesson Learned (con’t)Lesson Learned (con’t) Recommend institute internal QC check, by knowledgeable Recommend institute internal QC check, by knowledgeable

staff, of all land documents submitted to and received from staff, of all land documents submitted to and received from DOE and USACE – will save valuable time and money.DOE and USACE – will save valuable time and money. Corporate resolution signed exactly as shown (middle initial, Corporate resolution signed exactly as shown (middle initial,

etc.)etc.) Title documents, access documents, proof legal descriptions, Title documents, access documents, proof legal descriptions,

typo’s, etc.typo’s, etc.

Identify all personnel internal and external (all agencies) Identify all personnel internal and external (all agencies) who are new to this process – maintain clear who are new to this process – maintain clear communication and understanding.communication and understanding.

Ensure Title Commitments and Corporate Resolutions are Ensure Title Commitments and Corporate Resolutions are current and correct at time of submittal – if process drags current and correct at time of submittal – if process drags out they will need to be updated.out they will need to be updated.

Recommend formal face to face closing as opposed to Recommend formal face to face closing as opposed to circulating documents – sets firm deliverable dates. circulating documents – sets firm deliverable dates. Execution of deed must be the copy prepared and printed Execution of deed must be the copy prepared and printed by USACE and contained in “the package”.by USACE and contained in “the package”.