DRC-2013-002380 - 0901a06880386bcc

f/m ENERGYFUELS
Energy Fuels Resources (USA) Inc.
225 Union Blvd. Suite 600
Lakewood, CO, US, 80228
303 974 2140
www.energyfuels.com
IT DRC-2013-002380"
VIA EMAIL AND OVERNIGHT DELIVERY DECEIVED1
May 14, 2013 MAY 1 6 ?013
Mr. Rusty Lundberg, Director
DEPARTMENT Or
ENVIRONMENTAL QUALITY
Utah Division of Radiation Control
State of Utah Department of Environmental Quality
195 North 1950 West
P.O. Box 144850
Salt Lake City, UT 84116-4850
Re: State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill
Notice Pursuant to Part I.G.3 of the Permit and UAC R317-6-6.16 (C)
Dear Mr. Lundberg:
Please take notice pursuant to part I.G.3 of the White Mesa Mill's (the "Mill's") State of Utah
Groundwater Discharge Permit No. UGW370004 (the "GWDP") and Utah Administrative Code
("UAC") R313-6-6.16 (C) that Energy Fuels Resources (USA) Inc. ("EFRI") as operator of the Mill and
holder of the GWDP, failed to meet discharge minimization technology ("DMT") standards by allowing
the wastewater elevation in the Mill's tailings Cell 1 to exceed the freeboard limits set out in Part I.D.2
of the GWDP, as described in more detail below.
This exceedance was discovered by Mill personnel on February 1, 2013 and continued until
approximately March 22, 2013. It was first brought to the attention of EFRI's Corporate Environmental
Management at 4:00 pm on Wednesday, May 8, 2013. Initial notice of this freeboard exceedance was
given to Mr. Russ Topham of the Utah Department of Radiation Control ("DRC") at 1:40 pm on
Thursday, May 9, 2013.
1. Facts and Background Information
1.1 Regulatory Background
Part I.D.2 of the Mill's GWDP requires that:
"Authorized operation and maximum disposal capacity in each of the existing tailings
cells shall not exceed the levels authorized by the License. Under no circumstances shall
the freeboard be less than three feet, as measured from the top of the FML."
Condition 10.3 of the Mill's Radioactive Materials License (the "License") states that:
N:\WMM\Notices\Cell 1 Freeboard Notice 05.14.13\Cell 1 Freeboard Notice 5 14 13 revision4.doc
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May 14, 2013
Page 2 of 6
"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."
As a result of the calculations set out in the above-described documents, the Mill's Tailings
Management Plan states that the resulting freeboard limit for Cell 1 under the License is 5,615.40
FMSL. •
Part I.D.2 of the GWDP also sets a freeboard limit of not less than three feet from the top of the flexible
membrane liner (FML). For Cell 1, this limit is 5,615.50 FMSL. Compliance with Part I.D.2 of the
GWDP therefore requires satisfaction of the stricter of these two freeboard limits.
1.2 Sequence of Events
The sequence of events associated with the operation of Cell 1 before and since the freeboard
exceedance is as follows:
• During the period from June 2010 to June 4, 2012, the Mill performed repairs to the Cell 1
flexible membrane liner ("FML") based on commitments in letters dated August 30, 2010 and
September 30, 2010.
• During October 2012, the Mill commenced raising the level of solutions in Cell 1, to achieve the
elevation of 5613.1 FMSL to confirm the integrity of the repairs to the FML; that is, to monitor
whether any solutions appeared in the leak detection system.
• During the period preceding and during the solution level exceedance of the freeboard limits,
Cell 1 was receiving solutions from:
o Solvent extraction ("SX") raffinate discharge
o Alternate feed circuit solution discharge
o Groundwater from the chloroform and nitrate pumping wells
o Minor volumes from laboratory sinks and drains
o Minor and sporadic volumes from pumping of pooled rainwater
• During the process of repairing the FML, the Mill removed the raft (also referred to as the dock
or barge), which held the transfer pump used to transfer solutions from Cell 1 to other cells.
• Mill environmental personnel performed tailings inspection and solution level monitoring
consistently during the entire quarter, as indicated in the daily and weekly tailings inspection
reports which are retained at the Mill.
• Mill environmental personnel notified EFRI's Manager, Environmental, Health and Safety (the
"Environmental Manager") and the Mill Manager on February 1, 2013 that the solution elevation
level of 5615.44 FMSL exceeded the freeboard limit set out in the License and referenced in Part
I.D.2 of the GWDP.
Letter to Rusty Lundberg
May 14, 2013
Page 3 of 6
• Mill environmental personnel apprised the Environmental Manager and the Mill Manager each
week that the Cell 1 solution elevation exceeded the freeboard limits set out in the License and as
referenced in Part I.D.2 of the GWDP (February 8, February 15, February 22, March 3, March 8,
and March 15, 2013), until the week in which the weekly solution level measurement was again
within the freeboard limits (March 22, 2013). The attached Table 1 provides the solution
elevation data relative to applicable freeboard limits for each week during the first quarter of
2013.
• Mill Maintenance personnel constructed repairs/replacement of the raft/barge during the period
from January 30 to February 3, 2013. The raft was in place prior to the daily tailings inspection
on February 6, 2013.
• Mill Maintenance personnel constructed repairs/replacement of the Drisco transfer line during
the period from February 4 to February 8, 2013, to allow transfer of solutions from Cell 1 to Cell
4B.
• Mill Maintenance personnel installed a transfer pump on the pump barge and initiated transfer of
solutions from Cell 1 to Cell 4B on February 8, 2013.
• On February 21, 2013, SX raffinate solution discharge into Cell 1 ceased and the raffinate
solution was transferred to discharge into Cell 4B.
• The transfer pump on the Cell 1 pump barge (transferring solutions to Cell 4B) was replaced
with a larger transfer pump (125 hp/700 gpm) on February 21, 2013, and the larger pump was
immediately put into service.
• The coupler on the Cell 1 transfer pump failed during the night of February 15 to 16, 2013. The
coupler was replaced and the pump returned to service on February 16, 2013. The temporary
interruption of transfer flow was minimal.
• Cell 1 returned to compliance between the weekly solution elevation measurements on March
15, 2013 (of 5615.47 FMSL) and March 22, 2013 (of 5615.21 FMSL). The solution elevation
measurements on Cell 1 elevation have remained in compliance continually since the March 22,
2013 measurement.
• Corporate Environmental Management was not notified of the exceedance at any time during the
period when the solution elevations were in excess of the freeboard limits.
It should be noted that the provisions of UCA 19-5-107 have not been violated. There has been no
discharge of a pollutant into waters of the state. EFRI has not caused pollution which constitutes a
menace to public health and welfare, or is harmful to wildlife, fish, or aquatic life, or impairs domestic,
agricultural, industrial, recreational, or other beneficial uses of water, nor has EFRI placed or caused to
be placed any waste in a location where there is probable cause to believe it will cause pollution.
Letter to Rusty Lundberg .
May 14,2013
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There was no discharge of solutions from the Mill's tailings impoundments at any time during the period
when the solution elevation exceeded the freeboard.
2. Action Taken
As discussed above, the Mill took the following action to return the Cell 1 solution levels to
compliance with Part I.D.2 of the GWDP:
• Pumping of solution from Cell 1 to Cell 4B began on February 8,2013.
• Pumping of solution from Cell 1 to Cell 4B was increased to 700 gpm on February 21,2013.
• Pumping of SX raffinate solution to Cell 1 ceased on February 21,2013.
• Cell 1 solution elevation returned to compliance with the Part I.D.2 limits between March 15
and March 22, 2013.
• EFRI Corporate Environmental Management identified that Cell 1 solution elevation had
exceeded the Part I.D.2 limits during the quarter while reviewing solution elevation data for
preparation of the quarterly DMT report for the first quarter of 2013, on May 8, 2013.
• EFRI Corporate Environmental Management notified DRC on May 9,2013.
3. Root Cause
Three root causes resulted in the non-compliance condition described above.
First, the Mill Manager was not sufficiently familiar with the applicable requirements in the GWDP,
License and Contingency Plan that restrict solutions level in the tailing cells, and/or require notifications
and actions when the solution elevation standard is exceeded. As a result, the Mill Manager did not
respond to the initial notification from tailings inspection personnel that solution elevation in Cell 1 was
approaching, and later exceeded, the freeboard limits set out in Part I.D.2 of the GWDP, which includes
the limits in Condition 10.3 of the License.
Second, the Mill plans and procedures governing response, actions and notifications for exceedances of
limits and failures of compliance did not adequately address internal and external (to DRC) notifications
or provide cross references to plans, procedures and permits that do clearly require notifications. During
the period of freeboard exceedance, Mill personnel referred to the Freeboard Sections and Tailings
Emergencies sections of the Tailings Management System document applicable to Cell 1. The Tailings
Management System document did not provide a requirement to make internal notifications to
Corporate Environmental Management or external notifications to DRC for exceedances of freeboard
limits. Further, that document did not refer to the requirements of the Contingency Plan or Part I.G.3 of
the GWDP, which were overlooked by Mill management.
Third, there was a breakdown in communications between the Environmental Manager and the Mill
Manager. The Mill has undergone a recent reorganization in which the former RSO has assumed
responsibilities as the Environmental Manager, which include responsibilities at EFRI's mines as well as
at the Mill. At the same time a new RSO was appointed at the Mill. The Environmental Manager
appeared to have misunderstood the level of his responsibilities in reporting information to, and advising
Letter to Rusty Lundberg
May 14, 2013
Page 5 of 6
what actions are required by, the Mill Manager under abnormal circumstances and non-compliant
situations, in light of these organizational changes.
As a result of these root causes,
• The Mill Manager did not understand that the freeboard exceedance situation required certain
immediate actions to bring the cell solution level into compliance as quickly as possible,
• The Mill manager did not understand the requirement to ensure that a timely notification be
provided to DRC either by contacting DRC directly or by ensuring that Corporate Environmental
Management had the information to make the notification, and
• The Environmental Manager did not advise the Mill Manager to perform the required
management and notification steps.
4. Actions That Will be Taken to Prevent a Recurrence of This Incident
The following corrective actions have been initiated.
1. As discussed under Root Cause, above, the Mill Manager was not sufficiently familiar with the
applicable requirements in the plans and procedures that govern control of tailings solution levels
and require internal and external (to DRC) notifications when certain conditions are not met.
The Mill Manager is undergoing re-training in the requirements of the License, the GWDP, the
Contingency Plan and the other plans derived from the requirements of these documents.
2. The Environmental Manager will be retrained in his responsibilities to:
• advise the Mill Manager in all environmental, safety and radiation protection compliance
issues and/or emergencies, and
• provide dual coverage and responsibility for environmental compliance, emergency response,
and notification to Corporate Management and appropriate regulatory authorities.
3. EFRI is e-evaluating its corporate and Mill environmental management functions and
organizational structures to identify any further changes that will minimize the chance of re-
occurrence of such misunderstandings of responsibilities and resulting miscommunications.
4. EFRI is re-evaluating the primary documents which require internal or external notification
under specific conditions or situations. Specifically, EFRJ will incorporate cross references to
the Contingency Plan and the notification requirements of Part I.G.3 of the GWDP into the
sections of the Tailings Management System document applicable to Cell 1 that deal with
freeboard exceedances. This should minimize the chance of the required actions being
overlooked in the future. It should be noted that references to the notification requirements of
Part I.G.3 of the GWDP had previously been added to the sections of the DMT Monitoring Plan
that deal with freeboard exceedances for Cells 4A and 4B. However, those references were not
Letter to Rusty Lundberg
May 14,2013
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carried into the Tailings Management System document applicable to Cells 1 and 3 when it was
EFRI plans to modify these and/or the procedures and plans derived from these documents to ensure that
the requirements for notification are spelled out clearly. As appropriate, EFRI will provide draft
revisions of these documents to DRC for review and approval.
If you have any questions, please contact me at [phone].
Yours very truly,
ENERGY FUELS RESOURCES (USA) INC.
Jo Ann Tischler
Manager, Compliance and Licensing
cc David C. Frydenlund
Phil Goble, Utah DRC
Dan Hillsten
N. Tanner Holliday
Garrin Palmer
Harold R. Roberts
Russ Topham, Utah DRC
David E. Turk
Kathy Weinel
drafted.
Table 1
Cell 1 Solution Level Data for Ql 2013
Date
1/4/2013
1/14/2013
1/18/2013
1/25/2013
2/1/2013
2/8/2013
2/15/2013
2/22/2013
3/1/2013
3/8/2013
3/15/2013
3/22/2013
3/29/2013
Solution
Elevation
Level (FMSL)
5614.00
5614.50
5614.63
5614.97
5615.44
5615.81
5616.04
5616.26
5616.22
5615.84
5615.47
5615.21
5614.72
License
Freeboard
Limit (FMSL)
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
5615.40
Remaining
Freeboard
Capacity per
RML (feet)
1.40
0.90
0.77
0.43
-0.04
-0.41
-0.64
-0.86
-0.82
-0.44
-0.07
0.19
0.68
Remaining
Freeboard
Capacity per
RML (inches)
16.80
10.80
9.24
5.16
-0.48
-4.92
-7.68
-10.32
-9.84
-5.28
-0.84
2.28
8.16
GWDP
Freeboard
Limit
(FMSL)
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
5615.50
Remaining
Freeboard
Capacity per
GWDP (feet)
1.50
1.00
0.87
0.53
0.06
-0.31
-0.54
-0.76
-0.72
-0.34
0.03
0.29
0.78
Remaining
Freeboard
Capacity per
GWDP
(inches)
18.00
12.00
10.44
6.36
0.72
-3.72
-6.48
-9.12
-8.64
-4.08
0.36
3.48
9.36
Cell 1 Solution Elevation has remained below the License-based (strictier) freeboard limit of 5615.4 FMSL
through the date of this Notice.