DRC-2015-002145 - 0901a0688051de85

Energy Fuels Resources (USA) Inc.
225 Union Blvd. Suite 600
Lakewood, CO, US, 80228
ENERG YFUELS 303 974 2140
D RC-201 5-002145 www.energyfuels.com
VIA EMAIL AND OVERNIGHT DELIVERY
April 3, 2015
Mr. Rusty Lundberg
Director of the 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 "Permit") 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 Permit, failed to meet the Best Available Technology ("BAT") standards in Part
I.E. 12.a.2 of the Permit, by not maintaining the fluid head in the Cell 4B leak detection system
("LDS") below the required limit as described in more detail below.
Section I.E.12.a.2 of the Permit states that "Under no circumstances shall [the] fluid head in the leak
detection system (LDS) sump exceed a 1-foot level above the lowest point in the lower flexible
membrane liner on the cell floor." For the purposes of compliance monitoring, this 1-foot distance
equates to 2.25 feet (27 inches) above the LDS system. On Monday March 30, 2015, Field Personnel
noted that the pump in the Cell 4B LDS was not working. The pump was replaced immediately. After
the pump replacement, it was noted that the fluid level in the LDS had exceeded the 27 inch maximum
noted in the Permit. Immediately after the pump replacement, pumping of the 4B LDS system was
started. Initial notice was given by telephone to Mr. Phil Goble of DRC at approximately 3:00 pm on
Monday March 30, 2015 (within 24 hours of the discovery).
1. Facts and Background Information
a) Section I.E. 12.a.2 of the Permit states that "Under no circumstances shall [the] fluid head in the
leak detection system (LDS) sump exceed a 1-foot level above the lowest point in the lower
flexible membrane liner on the cell floor. Any occurrence of leak detection system fluids
above this 1-fot limit shall constitute failure of BAT, and a violation of this Permit."
b) The LDS systems in all Cells is inspected daily in accordance with the Permit and the DRC-
Letter to Rusty Lundberg
April 3, 2015
Page 2 of 4
approved Discharge Minimization Technology Monitoring Plan ("DMT Plan").
c) The LDS systems were inspected on Sunday March 29, 2015. No problems or issues were
identified with the Cell 4B LDS system during the daily inspection.
d) On March 29, 2015, Field Personnel noted that, based on fluid levels, pumping of the Cell 4B
LDS would start within 24-hours.
e) The Mill Personnel inspected the Cell 4B LDS on Monday March 30, 2015. The LDS system
was alarming due to the pump failure and because the fluid level had exceeded the trigger level
of 15-inches.
f) Mill Personnel attempted to turn on the Cell 4B LDS pump manually. The pump
malfunctioned and would not operate. The fluid level reading in the Cell 4B LDS was
approximately 18-inches.
g) Mill Personnel immediately began replacement of the faulty pump. The replacement pump
was installed within four hours of discovery. After replacement of the pump, the fluid level
reading in the Cell 4B LDS was approximately 38-inches.
h) Mill personnel notified the EFRI Quality Assurance Manager ("QAM") of the fluid level
readings.
i) The EFRI QAM notified Mr. Phil Goble of DRC at approximately 3:00 pm on Monday March
30, 2015 of the fluid level exceedance.
j) The fluid level difference is attributed to the faulty pump and the associated equipment on the
malfunctioning pump. The nature and composition of the tailings fluids causes the equipment
to malfunction prematurely.
2. Actions Taken
Upon identification of the malfunctioning pump, EFRI took the following actions:
a) Mill Personnel immediately replaced the pump, transducer and all associated equipment.
b) Mill Personnel observed the system more frequently to confirm proper operation.
3. Root Cause
The root cause analysis is as follows:
a) Issues have been identified with the current system. The issues are caused by the nature and
composition of the fluids present in the system, which fluids cause the equipment to
malfunction prematurely.
Letter to Rusty Lundberg
April 3,2015
Page 3 of 4
4. Actions That Will be Taken to Prevent a Reoccurrence of this Incident
The following action will be taken to prevent a reoccurrence of this incident:
a) Mill Personnel have historically checked the pump quarterly by manually switching it on to
verify it is operating. Mill Personnel will increase the frequency of the operation checks to
monthly.
5. Affirmative Defense
EFRI believes that the affirmative defense in Part I.G.3.c) of the Permit should be applicable to this
incident, for the following reasons:
a) Notification
By virtue of the initial oral notification given to UDEQ at 3:00 PM on Monday March 30, 2015
(within 24 hours of the discovery) and this written notice, EFRI has submitted notification according
to UAC R317-6-6.13.
b) Failure was not Intentional or Caused by the Permittee's Negligence
The failure of the LDS equipment was not caused by EFRI's negligence, either in action or in failure
to act. As discussed above, the equipment malfunctioned due to the nature and composition of the
tailings fluids. Mill Personnel will increase the frequency of manual checks of the system to monthly.
c) The Permittee has Taken Adequate Measures to Meet Permit Conditions
Mill personnel complete daily checks of the fluid levels as required. The exceedance of the prescribed
fluid level is the result of malfunctioning equipment. EFRI has set the systems to pump the LDS well
before the limit is exceeded, however, the pumping equipment suffered a premature failure due to the
nature and composition of the tailings fluids.
d) EFRI has taken adequate measures to meet Permit conditions in a timely manner.
The provisions of the Permit were implemented immediately. DRC was notified within 24 hours of
discovery of the solution measurement information.
e) The Provisions of UCA 19-5-107 Have Not Been Violated
The provisions of Utah Code 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
April 3, 2015
Page 4 of 4
There was no discharge of solutions from the Mill's tailings impoundments.
If you have any questions, please contact me at [phone].
ENERGY FUELS RESOURCES (USA) INC.
Kathy Weinel
Quality Assurance Manager
cc Phil Goble
Dean Henderson, DRC
Dan Hillsten
Harold R. Roberts
David E. Turk