Loading...
HomeMy WebLinkAboutDRC-2014-004851 - 0901a0688047c234ENERGYFUELS Energy Fuels Resources (USA) Inc. 225 Union Blvd. Suite 600 Lakewood, CO, US, 80228 303 974 2140 www.cneriivruels.com August 11,2014 DRC-2014-004851 VIA PDF AND OVERNIGHT DELIVERY Rusty Lundberg, Director, Division of Radiation Control Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144850 Salt Lake City, UT 84114-4850 Re: State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part I.G.I (a) Dear Mr. Lundberg: The White Mesa Mill (the "Mill") performed second quarter ("Q2") groundwater monitoring during the period from April 1, to June 30, 2014 under the August 24, 2012 version of the Mill's Groundwater Discharge Permit (the "GWDP"). All analytical data needed for comparison to the GWCLs were received during the period ending July 17, 2014. Pursuant to Part I.G.I.a) of the GWDP, (August 24, 2012) please take notice that the concentrations of specific constituents in the monitoring wells highlighted in yellow and bold italics in the columns for this quarter in the attached Table 1 exceeded their respective GWCLs. For ease of review, Table 1 has been formatted to simplify the tracking of any continued exceedances from one monitoring period to the next by charting ongoing monitoring of the same well in the same row, and by highlighting exceedances (in color and bold italics). Part l.G.l c) of the GWDP states "that the Permittee shall prepare and submit within 30 calendar days to the Executive Secretary a plan and a time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain groundwater quality to ensure that Permit limits will not be exceeded at the compliance monitoring point and that DMT or BAT will be reestablished." The summary below relating to Q2 2014 exceedances includes, for each exceedance, a brief discussion of whether such a plan and schedule is or is not required or appropriate at this time in light of other actions currently being undertaken by Energy Fuels Resources (USA) Inc. ("EFRI") or in light of other reports submitted by EFRI, and as determined by Division of Radiation Control ("DRC") Staff. A description of the other actions and reports which have affected the requirement to submit a plan and time schedule are as follows: 1. Nitrate + nitrite and chloride in monitoring wells at the site have been the subject of ongoing investigations at the Mill. Based on the results of the previous investigations, EFRI and the Director acknowledge that it has not been possible to date to determine the source(s), cause(s), attribution, magnitudes of contribution, and proportion(s) of the local nitrate + nitrite and chloride in groundwater. EFRI submitted a Corrective Action Plan ("CAP") in February 2012 for nitrate + nitrite and chloride in groundwater. The CAP was approved on December 12, 2012 and the activities associated with the CAP are on-going. Based on information provided by DRC in teleconferences on April 27, and May 2, 2011, due to the ongoing activities and actions, the 30- Letter to Mr. Rusty Lundberg August 11, 2014 Page 2 day plan and schedule for assessment is not required for nitrate + nitrite and chloride exceedances at this time. 2. As discussed in previous quarterly groundwater sampling reports, the background levels and GWCLs for pH were established based on eight or more quarters of laboratory data, which are historically higher than field data. EFRI's letter to the Director dated January 31, 2011 proposed the recalculation of the GWCLs for field pH. Following the statistical evaluation of pH data by EFRI's geochemical consultant, LNTERA, Inc., EFRI compared the Mill's groundwater pH data from Q2 2011 and noted that all of the June 2011 groundwater results, and many of the other results from Q2 2011, were already outside the revised GWCLs that were to be proposed in the June 30, 2011 letter. Pursuant to teleconferences with DRC on December 5, and December 19, 2011, EFRI submitted a Work Plan and Schedule on January 20, 2012 and a revised plan based on DRC comments on April 13, 2012. Based on the approved Work Plan and Time Schedule, EFRI and DRC entered into a Stipulated Consent Agreement ("SCA") dated July 12, 2012. The SCA required the completion of the pH Report and the Pyrite Investigation and associated report. The pH Report and Pyrite Investigation Report were submitted November 9, 2012 and December 7, 2012 respectively. By letter dated April 25, 2013, DRC accepted the conclusions that the out- of-compliance results for pH are due to background effects within the aquifer matrix and are not caused by Mill activities. DRC also approved the recalculation of the GWCLs. As a result, the 30-day plan and schedule for assessment is not required for field pH exceedances. 3. A Plan and Time Schedule will not be prepared for monitoring wells with two successive exceedances in Q2 2014 if successive exceedances were reported in a previous quarter and were included in the Source Assessment Reports ("SARs"), submitted October 10, 2012, May 8, 2013, August 30, 2013, December 17, 2013, January 13, 2014, and March 19, 2014. A Plan and Time Schedule will not be submitted for those constituents covered by the previously mentioned SARs, because the conclusions and actions delineated in those reports were either accepted by DRC as documented in DRC correspondence dated April 25, 2013, July 23, 2013, September 17, 2013 January 7, 2014, March 10, 2014, and June 5, 2014respectively. 4. Chloroform and methylene chloride are the subject of the ongoing chloroform pumping program and are covered by State of Utah Notice of Violation ("NOV") and Groundwater Corrective Action Order ("CAO") State of Utah Department of Environmental Quality ("UDEQ") Docket No. UGW-20-01. As a result, the 30-day plan and schedule for assessment of chloroform and methylene chloride exceedances is not required. It is important to note that under the GWDP, GWCLs have been determined on a well-by-well basis to reflect background groundwater quality, as defined by the mean plus second standard deviation concentration, or the equivalent. Accordingly, the GWDP requires that constituent concentrations in each monitoring well shall not exceed the GWCLs set out in Table 2 of the GWDP. It should be noted that, because the GWCLs have been set at the mean plus second standard deviation, or the equivalent, un- impacted groundwater would normally be expected to exceed the GWCLs approximately 2.5% of the time. Therefore, exceedances are expected in approximately 2.5% of all sample results, and do not necessarily represent impacts to groundwater from Mill operations. In fact, more frequent sampling of a given analyte will increase the number of exceedances due to statistical variation and not due to Mill activity. Additionally, given the slow velocity of groundwater movement, accelerated sampling at a monthly frequency can result in resampling of essentially the same water and can lead to repeat exceedances for accelerated constituents not due to Mill activities, but due to repeat sampling of the same water. Letter to Mr. Rusty Lundberg August 11, 2014 Page 3 1.0 Exceedances in Required Quarterly Sampling Wells 1.1 Quarterly Wells with Two Successive Exceedances As indicated in the attached Table 1, the analytes discussed below exceeded their respective GWCLs for two successive sampling periods in Q2 2014. A 30-day plan and schedule contemplated in Part I.G.I c) of the GWDP will not be required for the consecutive exceedances below for the reasons stated below. One-time exceedances and non-successive exceedances are noted on Table 1, but not listed below. Consecutive exceedances which occurred in previous reporting periods are discussed in the SARs submitted to DRC October 10, 2012, May 8, 2013, August 30, 2013, December 17, 2013, January 13, 2014, and March 19, 2014. MW-11 • Manganese concentrations exceeded the GWCL in MW-11 in the Ql 2014 (March 2014) sampling event and the April monthly sampling event. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-25 • Uranium concentrations exceeded the GWCL in MW-25 in the April and May monthly sampling events. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-26 • Nitrate + nitrite has exceeded its GWCL in all of the Q2 2014 sampling events. As mentioned above, a CAP has been submitted and approved and the specified actions are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. • Chloroform has exceeded its GWCL for all of the Q2 2014 sampling events. MW-26 is used as a pumping well for the ongoing chloroform capture program and is expected to yield increased concentrations of chloroform. Because this well is used in the chloroform capture program which is the subject of separate investigations and actions, a plan and time schedule to address the consecutive exceedances is not necessary and is not being submitted. • Methylene chloride has exceeded its GWCL for all of the monitoring periods for Q2 2014. MW- 26 is used as a pumping well for the ongoing chloroform capture program and is expected to yield increased concentrations of methylene chloride. Because this well is used in the chloroform capture program which is the subject of separate investigations and actions, a plan and time schedule to address the consecutive exceedances is not necessary and is not being submitted. CNCKGYFVMLS Letter to Mr. Rusty Lundberg August 11, 2014 Page 4 MW-26 Note: As stated in the September 2009 Statement of Basis (page 23) in support of the January 20, 2010 revisions to the GWDP, "[i]t should be noted that, because MW-26 is a pumping well for chloroform removal, concentrations of all constituents in that well are subject to potential variation over time as a result of the pumping activity. This will be taken into account by the Executive Secretary in determining compliance for this well." Based on information provided by DRC in teleconferences on April 27, and May 2, 2011, due to the current pumping status as part of the chloroform investigation program, the 30-day plan and schedule for assessment is not required at this time for exceedances of chloroform and methylene chloride in MW-26. • The uranium concentration exceeded its GWCL in all of the monitoring periods for Q2 2014. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. • The chloride concentration exceeded its GWCL in all of the monitoring periods for Q2 2014. As mentioned above, a CAP has been submitted and approved to address nitrate+nitrite contamination which is expected to address chloride in groundwater. The actions specified in the CAP are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. MW-30 • Nitrate + nitrite has exceeded its GWCL in all of the Q2 2014 sampling events. As mentioned above, a CAP has been submitted and approved and the specified actions are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. • The chloride concentration exceeded its GWCL the Ql 2014 and the April monthly monitoring events. As mentioned above, a CAP has been submitted and approved to address nitrate+nitrite contamination which is expected to address chloride in groundwater. The actions specified in the CAP are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. • The selenium concentration exceeded its GWCL in the May monthly and the Q2 2014 sampling events. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-31 • Nitrate + nitrite has exceeded its GWCL in all of the Q2 2014 sampling events. As mentioned above, a CAP has been submitted and approved and the specified actions are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. EMEHGYnmS Letter to Mr. Rusty Lundberg August 11, 2014 Page 5 • The chloride concentration exceeded its GWCL in all of the monitoring periods for Q2 2014. As mentioned above, a CAP has been submitted and approved to address nitrate+nitrite contamination which is expected to address chloride in groundwater. The actions specified in the CAP are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. • The sulfate concentration exceeded its GWCL in the May monthly and Q2 2014 sampling events. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. • The selenium concentration exceeded its GWCL in the April and May monthly sampling events. This consecutive exceedance is addressed in the SAR, dated August 30 2013. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. • The Total Dissolved Solids ("TDS") concentration exceeded its GWCL in all of the Q2 2014 sampling events. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-35 • The manganese concentration exceeded the GWCL in MW-35 in the May monthly and Q2 2014 sampling events. A plan and schedule to address this exceedance is not necessary and is not being submitted because the exceedances are based on the interim GWCLs for MW-35, which have been set at a fraction of the Groundwater Quality Standards. Background has been established for MW-35 in the Background Report submitted to DRC on May 1, 2014. As a result of the Background Report, the GWCLs have been calculated and accepted by DRC in a letter dated July 15, 2014. The calculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the calculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. It should be noted that the exceedances of the interim GWCLs noted herein, do not necessarily represent impacts to groundwater from Mill activities. • The uranium concentration exceeded the GWCL in MW-35 in all of the Q2 2014 sampling events. A plan and schedule to address this exceedance is not necessary and is not being submitted because the exceedances are based on the interim GWCLs for MW-35, which have been set at a fraction of the Groundwater Quality Standards. Background has been established for MW-35 in the Background Report submitted to DRC on May 1, 2014. As a result of the CMmrmif Letter to Mr. Rusty Lundberg August 11, 2014 Page 6 Background Report, the GWCLs have been calculated and accepted by DRC in a letter dated July 15, 2014. The calculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the calculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. It should be noted that the exceedances of the interim GWCLs noted herein, do not necessarily represent impacts to groundwater from Mill activities. • The selenium concentration exceeded the GWCL in MW-35 in all of the Q2 2014 sampling events. A plan and schedule to address this exceedance is not necessary and is not being submitted because the exceedances are based on the interim GWCLs for MW-35, which have been set at a fraction of the Groundwater Quality Standards. Background has been established for MW-35 in the Background Report submitted to DRC on May 1, 2014. As a result of the Background Report, the GWCLs have been calculated and accepted by DRC in a letter dated July 15, 2014. The calculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the calculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. It should be noted that the exceedances of the interim GWCLs noted herein, do not necessarily represent impacts to groundwater from Mill activities. • The thallium concentration exceeded the GWCL in MW-35 in the April and May monthly sampling events. A plan and schedule to address this exceedance is not necessary and is not being submitted because the exceedances are based on the interim GWCLs for MW-35, which have been set at a fraction of the Groundwater Quality Standards. Background has been established for MW-35 in the Background Report submitted to DRC on May 1, 2014. As a result of the Background Report, the GWCLs have been calculated and accepted by DRC in a letter dated July 15, 2014. The calculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the calculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. It should be noted that the exceedances of the interim GWCLs noted herein, do not necessarily represent impacts to groundwater from Mill activities. 1.2 Quarterly Wells with New Exceedances Reported in Q2 No new exceedances for the quarterly wells were noted during Q2 2014. 2.0 Exceedances in Semiannual Sampling Wells Accelerated to Quarterly 2.1 Semi-annual Wells with Two Successive Exceedances As indicated in the attached Table 1, the analytes discussed below exceeded their respective GWCLs for two successive sampling periods (Ql 2014 and Q2 2014). MW-3 • Fluoride has exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to fMnarnMLM Letter to Mr. Rusty Lundberg August 11, 2014 Page 7 address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-3A • Selenium has exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-15 • Field pH has been slightly outside (slightly lower than) the GWCL for both the Q4 2013 sampling event and the Ql 2014 sampling event. As mentioned above, site-wide pH issues and trends are addressed in reports submitted on November 9, 2012 and December 7, 2012. As a result of the November 7, 2012 report, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-18 • Thallium has exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. In the October 10, 2012 SAR, EFRI requested the removal of GWCLs for the far upgradient wells (MW-1, MW-18, and MW-19) at the Mill which cannot be impacted by Mill activities. In correspondence dated April 25, 2013, DRC noted "DRC agrees with the justification provided by EFR, that far upgradient wells are not likely to be impacted by current Mill activities..." and has recommended the removal of GWCLs for MW-18 from the next revision of the GWDP. A plan and schedule is not necessary because the exceedance is not caused by Mill activities and was previously discussed in the October 10, 2012 SAR. Until such time as the GWCLs are removed, the exceedances will continue to be noted and reported. MW-19 • Nitrate + Nitrite have has exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event. In the October 10, 2012 SAR, EFRI requested the removal of GWCLs for the far upgradient wells (MW-1, MW-18, and MW-19) at the Mill which cannot be impacted by Mill activities. In correspondence dated April 25, 2013, DRC noted "DRC agrees with the justification provided by EFR, that far upgradient wells are not likely to be impacted by current Mill activities..." and has recommended the removal of GWCLs for MW-18 from the next revision of the GWDP. A plan and schedule is not necessary because the exceedance is not caused by Mill activities and was previously discussed in the October 10, 2012 SAR. Until such time as the GWCLs are removed, the exceedances will continue to be noted and reported. EMCKGYFtMLS Letter to Mr. Rusty Lundberg August 11, 2014 Page 8 MW-24 • Field pH has been slightly outside (slightly lower than) the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event. As mentioned above, site-wide pH issues and trends are addressed in reports submitted on November 9, 2012 and December 7, 2012. As a result of the November 7, 2012 report, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. • Cadmium has exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. • Thallium has exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event. This consecutive exceedance is addressed in the SAR, dated October 10, 2012. As a result of the SAR, the GWCLs have been recalculated and accepted by DRC. The recalculated GWCLs will become effective upon their publication in the next revision of the GWDP. As a result of DRC's acceptance of the recalculated GWCLs, a plan and schedule to address this consecutive exceedance is not necessary and will not be submitted. Until such time as the new GWCLs become effective, the exceedances will continue to be noted and reported. MW-27 • Nitrate + Nitrite have exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event and during previous quarters. As mentioned above, a CAP has been submitted and approved and the specified actions are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. • The chloride concentration exceeded its GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event and during previous quarters. As mentioned above, a CAP has been submitted and approved to address nitrate+nitrite contamination which is expected to address chloride in groundwater. The actions specified in the CAP are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. MW-28 • Chloride has exceeded the GWCL for both the Ql 2014 sampling event and the Q2 2014 sampling event and during previous quarters. As mentioned above, a CAP has been submitted and approved and the specified actions are currently being implemented; therefore a plan to address this consecutive exceedance is not necessary and is not being submitted. eNEKrnmis Letter to Mr. Rusty Lundberg August 11, 2014 Page 9 2.1 Semi-annual Wells with New Exceedances Reported in Q2 Four new exceedances for the Q2 2014 semi-annual well sampling program are listed below. These exceedances will result in an accelerated sampling frequency from semi-annually to quarterly. It is important to note that the well listed below will only be sampled during the first and third quarterly events for those constituents which exceeded the GWCLs. The well listed below will be sampled for all constituents listed in the GWDP during the second and fourth quarterly events as that is the regularly scheduled sampling for the semi-annual wells. It is important to note EFRI requested removal of Gross Alpha from MW-27 from accelerated monitoring by letter dated May 19, 2014. DRC approved the removal of this constituent from accelerated monitoring by letter dated June 11, 2014. The Gross Alpha analysis in MW-27 was scheduled for removal from accelerated monitoring beginning with the Q3 2104 sampling event. The Q2 2014 sample results received in July 2014 reported a concentration of Gross Alpha in MW-27 above the GWCL. • Gross Alpha in MW-27 was above the GWCL in the Q2 sampling event. • Cadmium in MW-28 was above the GWCL in the Q2 sampling event. • Uranium in MW-28 was above the GWCL in the Q2 sampling event. • Vanadium in MW-28 was above the GWCL in the Q2 sampling event. Relative to accelerated reporting requirements, based on phone conversations with UDEQ on April 5, 2010, reporting of exceedances is required to be completed within 30 days of receipt of the last data package for a quarterly monitoring event. Similarly, accelerated monitoring is required to commence the month following the submission of the Exceedance Notice for a specified quarter for wells that are being accelerated from quarterly to monthly and the quarter following the submission of the Exceedance Notice for wells that are being accelerated from semiannually to quarterly. Per teleconferences with UDEQ, EFRI proposed modified language for the GWDP, Part l.G.l on May 25, 2012, to document DRC concurrence with the accelerated reporting and monitoring agreements resulting from the April 5, 2012 teleconference. Yours truly, ENERGY FUELS RESOURCES (USA) INC. Kathy Weinel Quality Assurance Manager cc: David Frydenlund Harold Roberts David Turk Dan Hillsten EMCHGYnmS