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HomeMy WebLinkAboutDRC-2003-001161 - 0901a06880adec68Michael 0. Leavitt Governor Dianne R. Nielson, Ph.D. Executive Director William J. Sinclair Dilector lltnh) Where ideas connect Department of Environmental Quality Division of Radiation Control 168 North 1950 West P.O. Box 1,14850 Salt Lake City, Utah 84114-4850 (801) 536-4250 (801) 533-,097 Fax (801) 536-,1414 T.D.D. www.deq.utah.gov MEMORANDUM Re: From: Brian Hamos g\ tf To: Bill Sinclairff July 3, 2003 NRC Inspection of IUC Millsite Located at Rlanding, Utah Introduction The purpose of this memorandum is to document my observations during the annual inspection conducted by the Nuclear Regulatory Commission (NRC) at the International Uranium Corporation (IUC) Blanding, Utah millsite on June 24, 25, and 26, 2003. In anticipation of the State of Utah receiving agreement state status over uranium mills from the NRC later this year, I was in attendance as training for conducting uranium mill inspections. The lead inspector from the NRC was Louis Carson. In addition, NRC chemical process engineers Nick Baker and Diana Diaz-Toro were present on June 24 to inspect chemical safety procedures at the facility. NRC staff Bill Von Till and Ron Linton were also part of the inspection team to review groundwater issues at the site. Terry Brock, a recent hire of the NRC Office of State and Tribal Programs, was present during the inspection primarily to observe as part of his internal training. Chemical Safety The primary focus of the NRC inspection was on chemical safety. NRC personnel indicated that within the past few years, the NRC has determined that at uranium millsites, the health and safety risks are typically greater from the chemicals used in the processing of the feed material than from the radioactive material itself. IUC personnel were surprised that chemical safety was the focus of the inspection, and questioned if Occupational Safety and Health Administration (OSHA) or Mine Safety and Health Administration (MSHA) might not have the jurisdiction over chemical issues. NRC response was that as long as the chemicals are used in the processing of uranium, NRC also has authority. NRC personnel also indicated this was the first such t t July 3, 2003 inspection conducted at a millsite, so there still may need to be some procedures that would require clarification internally before they could offer more guidance to the Licensee regarding NRC chemical inspections. Alternate Feed Material Processing The most recent mill run conducted by IUC was completed at the end of May 2003. The mill was processing alternate feed material from June 2002 through May 2003. All of the bulk feed material has been processed. None of the feed material from drums was processed, and is still being stored onsite in 55-gallon drums. The site is receiving between 7 to 15 trucks per day of bulk alternate feed material from Linde, and is again stockpiling the material on the ore pad pending another mill run at a future, undetermined time. The recently completed mill run processed approximately 266,000 tons of feed material. The end result is approximately 5500 pounds of uranium currently in the thickener stage of mill processing. The next step would be drying the material to produce yellowcake. This final stage of the mill process was not completed because there is not yet enough material to efficiently operate that stage of the plant. Background Radiation Levels Louis Carson noted that he has been inspecting the mill site since 1994. He observed the highest ambient background radiologic readings that he has ever seen at the site. He did not expect this, given that the bulk alternate feed material was gone. Speculation was that the alternate feed material had been shielding doses from the ore pad, but that was inconclusive. Corporate Radiation Safety Officer NRC observed that Dave Frydenlund is now the corporate radiation safety officer since Michelle Reymund is no longer with the company. NRC was concerned that Dave (an attorney) does not have a scientific background and has not had any type of appropriate training such as a 40-hour radiation safety course. Dave committed to getting such training. Document Control Procedures One potential violation observed by NRC was a lack of document control procedures. There were a few instances where IUC was still using standard operating procedures (SOPs) written by UMETCO, the previous millsite owner/operator. The inspection was not formally closed during the onsite inspection, so this may or may not be cited in the final inspection closeout. UNITED STATES NUCLEAR REGULATORY COTiTIISSlON REGIOil lV 6II RYAN PLAZA DRIVE, SUITE 4OO ARLINGTOI, TEXAS 7601 l.|(n5+**tx March 10, 2004 David C. Frydenland, Vice-President and GeneralCounsel lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRCINSPECTIONREPORT040-08681/04-001 Dear Mr. Frydenland: On February 19, 2004, the NRC completed an inspection at your White Mesa Mill near Blanding, Utah. This inspection consisted of a review of site status, management organization and controls, radiation protection, and site operations. The inspection results were provided to members of your staff at the conclusion of the inspection. The enclosed report presents the results of that inspection. No violations or deviations were identified during this inspection; therefore, no response to this letter is required. ln accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter, its enclosure, and your response (if any) will be made available electronically for public inspection in the NRC Public Document Floom or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NRC Web site at Public Electronic Reading Room). Should you have any concerning this Mr. Louis C. Carson ll at 17) 860-8221 or Jack 197. Licensing Branch Docket No.: 040-08681 License No.: SUA-1358 Enclosure: NRC lnspection Report 040-08681/04-00'1 lnternational Uranium (USA) Corporation cc w/enclosure: Mr. Ron Hochstein, President lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Mr. Kenneth T. Miyoshi, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 Mr. Dane Finerfrock, Director State of Utah Department of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 -2- ENCLOSURE U.S. NUCLEAR REGULATORY COMMISSION REGlON IV Docket No. 040-08681 License No. SUA-1358 Report No. 040-08681/04-001 Licensee: lnternational Uranium (USA) Corp. Facility: White Mesa Mill Location: San Juan County, Utah Dates: February 18-19,2004 lnspector: Louis C. Carson ll, Health Physicist Nuclear Materials Licensing Branch Accompanied by: R. William VonTill, Senior Project Manager Fuel Cycle Safety and Safeguards (FCSS) Uranium Processing Section Approved By: Jack E. Whitten, Chief Nuclear Materials Licensing Branch Attachment: Supplemental lnspection lnformation -2- EXECUTIVE SUMMARY White Mesa Mill NRC lnspection Report 040-08681/04-001 This inspection included a review of site status, management organization and controls, radiation protection, and site operations. Overall, the licensee was conducting operations in compliance with license and regulatory requirements. Management Organization and Controls . The licensee had maintained an organization structure that agreed with the requirements of the license (Section 2.0). . The licensee had adequately implemented the performance-based conditions of the license (Section 2.0). . The licensee had adequately reviewed and properly used site procedures (Section 2.0). Operations Review . Operational activities were being conducted safely by the licensee in accordance with the license and NRC regulations (Section 3.0). . lnspection of the licensee's alternate feed material operations revealed that the material was handled in an orderly and controlled fashion (Section 3.0). Badiation Protection . The radiation protection program areas reviewed by the inspectors and found to be acceptable were facility postings, personnel exposures, and radiation surveys (Section 4.0). Radioactive Waste Management and Environmental Protection . Environmental, groundwater, and radioactive waste activities were being conducted safely by the licensee and in accordance with the license and NRC regulations (Section 5.0). 2.1 -3- Report Details Site Status The NRC issued Source Material License SUA-1358 to Energy Fuels Nuclear during August 1979. lnternational Uranium Corporation (lUC) assumed ownership of the White Mesa Mill on May 10,1997, with the NRC's approval of License Amendment 2. The licensee had not received and processed any natural ore containing uranium or vanadium since December 1999. The licensee is authorized by License Conditions 10.6 through 10.17 to receive and process alternate feed materials.from certain out-of-state entities. The mill processed alternate feed material during calendar years (CY) 2002 and 2003. There were no yellowcake drying operations in progress during the inspection. License Condition 10.5 authorizes the licensee to dispose of 11e.(2) byproduct material waste on site. However, 1 1e.(2) disposal operations had not taken place since the last inspection. Management Organization and Controls (88005) lnspection Scope The organization structure was reviewed to ensure that the licensee had maintained effective organization and management controls necessary to maintain compliance with NRC requirements. Also reviewed was the utilization and implementation ol the licensee's performance-based license (PBL) and selected procedures. Observations and Findings Management Organization The licensee's required organization structure is described in License Condition g.3, which references the NRC-approved license renewal application dated January 30, '1997. No changes have been made to the licensee's organization structure since the previous inspection. The current organization structure was found by the inspectors to be in agreement with the intent of License Condition 9.3. At the time of this inspection, White Mesa's staff included 15 employees. The inspectors determined that the licensee's staffing level was adequate based on current limited facility operations. Performance-Based License Review License Condition 9.4 states, in part, that the licensee may, under certain conditions and without prior NRC approval, make changes in the facility or processes, make changes to procedures, or conduct tests and experiments not presented in the license application. The licensee's implementation of the PBL provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a PBL in March 1997. 2.2 b. 2.3 .4- Pursuant to License Condition 9.4, the licensee is authorized to make certain changes to the licensed program as long as they are reviewed by the safety and environmental review panel (SERP). Proposed changes and SERP deliberations are required to be documented in accordance with the provisions of License Condition 9.4(D). On August 26,2003, the licensee submitted its annual SERP report to the NRC. During the licensee's current SERP period (July 1 ,2002 - June 30, 2003), the licensee held eight SERP meetings. The inspectors reviewed the meeting summaries from the SERPs conducted during the period and found them to be adequate. Site Procedures ln accordance with License Condition 9.6, the licensee is required to establish and follow standard operating procedures (SOPs) for all operational process activities involving radioactive materials that are handled, processed, or stored under the provision of the NRC license. Based on reviews of the licensee's SOPs and SERP minutes, the inspectors determined that the radiation safety officer (RSO) had reviewed and approved procedures as required by the provisions of License Condition 9.6. During this inspection, the inspectors reviewed the health physics manual, SOPs for plant process operations, and the emergency response plan. The RSO and staff had updated the SOPs, reviewed the SOPs on a quarterly basis, and approved procedures as required by the provisions of License Condition 9.6. The inspectors noted improvement by the licensee in the quality of the SOP review process. However, the inspectors did identify one example where an established SOP was not adequately maintained by the licensee. The Respiratory Protection Program SOP had not been updated to reflect that the licensee had started using a new powered air-purifying full- face respirator in July 2003. However, the inspectors noted that new respirator was appropriately addressed under the radiation work permit program. Conclusions The licensee had maintained an organization structure that agreed with the requirements of the license and had correctly implemented the provisions of the SERP and PBL license conditions. The licensee's review and use of site procedures met requirements. Operations Review (88020) lnspection Scope The objective of this portion of the inspection was to verify that site operations were being conducted in accordance with applicable regulations and license conditions, and to ensure that operational controls were adequate to protect the health and safety of workers and members of the general public. There are three operations authorized by the IUC White Mesa license: (1) conventional uranium ore processing, (2) non- conventional ore processing of alternate feed material, and (3) commercial 11e.(2) byproduct waste disposal. However, the licensee has not processed conventional ore since 1999. 3 3.1 3.2 tr'rJ- Observations and Findinqs Alternate Feed Material Operations The first licensed operation involving processing of either alternate feed or uranium ore material occurred on June 13,2002, the licensee had not processed alternate feed material or uranium ore since CY2000. License Conditions 10.6 through 10.17 authorizes the licensee to receive and process alternate fded materialfrom 11e.(2) providers. Some of the sites identified on the license that the IUC White Mesa was authorized to receive alternate feed materials includ: (1) Honeywell Corporation, formerly Allied Signal lncorporated, Metropolis, lllinois; (2) Ashland and Linde Formerly Utilized Sites Remedial Action Program (FUSRAP) sites near Tonowanda, New York, and Saint Louis, Missouri; (3) drummed calcined byproduct materials from Cameco Corporation's Blind River and Port Hope facilities, Ontario, Canada; (4) W.R. Grace material from Chattanooga, Tennessee; (5) Heritage Minerals, Lakehurst, New Jersey, and (6) Molycorp, Mountain Pass, California. The licensee had not processed any alternate feed material since May 2003. As of this inspection, the only alternate feed material remaining unprocessed consisted of a total of 45,221tons; 39,036 tons of Linde feed material and 6,185 tons (42,740 drums) of Cameco material. The license does not plan to resume alternate feed material processing until this summer. Conclusions Operational activities were being conducted safely and in accordance with the license and NRC regulations. Observations of the licensee's alternate feed material operations revealed that the material was handled in an orderly and controlled fashion. Radiation Protection (838221 lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the license as well as the requirements of 10 CFR Part20- Observations and Findings Site Tour The inspectors toured the facility to observe activities in progress at various locations throughout the mill and around the ore pad. Licensee radiation measurements were found to be consistent with the licensee's previously recorded radiation survey results. During the inspectors' site tour, radiation levels were measured using an NRC microRoentgen (pR) meter, Serial Number 15540 with a calibration due date of March 2,2004. The background radiation level measured offsite ranged between 10-15 pR/hr. Radiation surveys were conducted in various locations throughout the mill 3.3 4.1 a. 4.2 b. -6- and around the ore pad. No "radiation areas" as defined by 10 CFR 20.1003 were identified within the process facility. Site perimeter postings required by License Condition 9.9 were in place at the appropriate entrances to the mill. No radiological health or safety concern was identified during the tour. lnternal and External Fladiation Exposures and Bioassay Results The inspectors reviewed the deep dose equivalent (DDE) radiation exposures since the previous inspilction. The RSO had issued dosimeters and reviewed the DDE results of each radiation worker's dosimeter. The inspectors observed that all radiation workers were wearing dosimeters in the restricted area. The highest worker total effective dose equivalent (TEDE) recorded for CY 2003 was 280 millirems based on combined dosimeter and air sampling analyses. During CY 2003, all workers'TEDEs were less than 10 percent of the 5,000 millirem annual limit specified in 10 CFR 20.1201. The inspectors reviewed the licensee's bioassay results for CY 2003. The licensee had implemented the bioassay program specified in NRC Regulatory Guide 8.22, "Bioassay at Uranium Mills." Employee urinalysis results were required to be investigated if bioassay samples exceeded the action level of 15 micrograms per liter uranium. No bioassay results had exceeded the action level during CY 2003. The inspectors observed the licensee preparing bioassays for processing. The licensee's bioassay program was found to be adequate. Conclusions The radiation protection program was found to be adequate. Personnel exposures during CY 2003, were well below limits, and bioassay results were acceptable. Radioactive Waste Management (88035) and Environmental Monitoring (88045) lnspection Scope The environmental, effluent and groundwater monitoring programs were reviewed by the inspectors to assess the effectiveness of the licensee's programs and to evaluate the affects, if any, of site activities on the local environment. Observations and Findings Groundwater Detection Monitoring Program License Condition 11.3(A) requires, in part, that the licensee implement a groundwater detection monitoring program. The licensee's internal proceduie entitled "Groundwater Monitoring Plan and Standard Operating Procedures," was reviewed along with monitoring records maintained by the licensee since the last inspection. The inspectors focused on the licensee's performance when following and implementing the 4.3 5 5.1 5.2 b. -7- groundwater sampling procedure. lnspectors reviewed the implementation of the licensee's procedures and results from groundwater, springs, and surface water sampling. The inspectors observed licensee staff performing leak detection of cell4A. ln addition, the inspectors observed corrective action activities related to an effort to remediate chloroform in the groundwater. The inspectors determined that the licensee had adequately followed their procedures on groundwater sampling and monitoring. 1 1e.(2) Radioactive Waste Receipts and Disposal Operations l-icense Condition 10.5 authorizes the licensee to dispose of 1 1e.(2) byproduct material from licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. During the site tour, the inspectors noted that Disposal Cell 3 was being used for disposal of. offsite 11(e).2 byproduct waste, as authorized in License Condition 10.5(C). Disposal Cell2 was being used for disposal of White Mesa waste. During the site tour, the inspectors did not observe any problems with the 1 1(e).2 disposal area. The inspectors determined that the licensee had not received 1 1e.(2) byproduct waste shipments since the last inspection. Conclusions Environmental, groundwater, and radioactive waste activities were being conducted safely and in accordance with the license and NRC regulations Exit Meeting Summary The inspectors presented the inspection results to representatives of the licensee at the conclusion of the inspection on February 19,2004. The licensee did not identify any information reviewed by the inspectors as propriety information. 5.3 ATTACHMENT PARTIAL LIST OF PERSONS CONTACTED Licensee Fl. Bartlett, Maintenance Manager R. Berg, Radiation Safety Officer D. Frydenlund, Vice President and General Counsel R. Hochstein, President K. Miyoshi, Mill Manager Utah Department of Environmental Quality-Division of Radiation Controls B. Hamos, Environmental Scientist B. lmai, Environmental Scientist INSPECTION PROCEDURES USED Radiation Protection Management Organization and Controls Operations Review Radioactive Waste Management Environmental Monitoring ITEMS OPENED, CLOSED AND DISCUSSED Opened None Closed None Discussed None CFR CY DDE FUSRAP IUC aNhr PBL PDR SERP SOP TEDE -2- LIST OF ACRONYMS USED Code of Federal Regulations calendar year deep dose equivalent Formerly Utilized Sites Remedial Action program I nternational Uranium Corporation microRoentgen/hour Performance-Based License Public Document Room safety and environmental, review panel, standard operating procedure total effective dose equivalent o NU $-.cen" "too'r.ot 'W-t *X1*i UI{ITED STATES GLEAR REGULATORY CO]f, MIS REGION IV 611 RYA!{ PLA:ZA DRIVE, SUITE /r00 ARLIilGTON, TEXAS 7601t-8064 April 19, 2002 David C. Frydenland, Vice-President and GeneralCounsel lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681/02-ol Dear Mr. Frydenland: On April 3,2002, the NRC completed an inspection at your White Mesa Mill near Blanding, Utah. This inspection consisted of a review of site status, management organization and controls, radiation protection, site operations, radioactive waste management, and environmenta! protection. The inspection results were provided to members of your staff at the conclusion of the inspection. The enclosed report presents the results of that inspection. No violations or deviations were identified during this inspection; therefore, no response to this letter is required. ln accordance with 10 CFR 2.790 of the NRC's'Rules of Practice,'a copy of this letter, its enclosure(s), and your response (if any) will be made available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room). Should you have any questions concerning this inspection, please contact Mr. Louis C. Carson ll at (817) 860-8221 or the undersigned at (817) 860-8186. Sincerely, [t,rt" /. 0q1,r Charles L. Cain, Chief Nuclear Materials Licensing Branch Docket No.: 40-8681 License No.: SUA-1358 Enclosure: NRC lnspection Report 40-8681/02-01 o sto lnternational Uranium (USA) Corporation -2- cc Menclosure: Mr. Ron Hochstein, President lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, CO 80265 Ms. Michelle Rehmann lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, CO 80265 Mr. Kenneth T. Miyoshi, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 lilr. William J. Sinclair, Director State of Utah Department of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & lntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 ENCLOSURE U.S. NUCLEAR REGULATORY COMMISSION REGION IV Docket No. 40-8681 License No. SUA-1358 Report No. 40-8681/02-01 Licensee: lnternational Uranium (USA) Corp. Facility: White Mesa Mill Location: San Juan County, Utah Dates: April2-3,2002 lnspector: Louis C. Carson ll, Health Physicist Nuclear Materials Licensing Branch Accompanied By: Charles L. Cain, Chief Nuclear Materials Licensing Branch Approved By: Charles L. Cain, Chief Nuclear Materials Licensing Branch Attachment: Supplementary lnformation -2- EXECUTIVE SUMMARY White Mesa Mill NRC lnspection Report 40-8681/02-01 This inspection included a review of site status, management organization and controls, radiation protection, site operations, radioactive waste management, and environmental protection programs. Overall, the licensee was conducting operations in compliance with license and regulatory requirements. Management Organization and Controls ' The licensee had maintained an organizationalstructure that agreed with the requirements of the license (Section 2.0). . The licensee had adequately implemented the safety environmentat review paneland performance-based license conditions (Section 2.0). ' The licensee's review and use of site procedures met requirements (Section 2.0). Radiation Protection ' The radiation protection and'As Low As is Reasonably Achievable" (ALARA) programs were found to be adequate. Personnel exposures during year 2001 were well below limits, and bioassay results were acceptable (Section 3.0). Operations. Radioactive Waste Management. and Environmental Protection ' Operational activities were being conducted safely and in accordance with the license and NRC regulations (Section 4.0). ' Observations of the licensee's alternate feed material receipt operations revealed that the material was handled in an orderly and controlled fashion (Section 4.0). ' The licensee was noted to have cotlected environmental monitoring samples as required by the license and as reported in the January - June 2001 semi-annual effluent report. Sample results were less than the associated effluent release limits specified in 10 CFR Part 20. No adverse trends were identified (Section 4.0). 2.1 2.2 Report Details Site Status The NRC issued Source Material License SUA-I358 to Energy Fuels Nuclear during August 1979. lnternational Uranium Corporation (lUC) assumed ownership of the White Mesa Mill on May 10,1997, with NRC's approval of License Amendment 2. The licensee had not received and processed natural ore for uranium or vanadium since December 1999. As authorized by License Condition 10.5, the licensee was disposing of 11e.(2) byproduct material waste on site. The millwas in a preoperational state during this inspection with an anticipated restart of operations in June 2002. The millwas actively receiving alternate feed material during this inspection. Alternate feed material is ore other than natural uranium ore. The licensee is authorized to receive and process alternate feed materials from certain out-of-state entities by License Conditions 10.6 through 10.17. !n December 2001, the licensee was granted permission by the NRC to receive and process approximately 17,750 tons of alternate feed materials from Molycorp of Mountain Pass, California. This alternate feed material from Molycorp resulted from the extraction of lanthanides and other rare earth metals that were processed from bastnasite ore. The residuals of the processed ore were stored in ponds as lead sulfide sludge with an estimated uranium content of 0.15 percent or more. Management Organization and Controls (S8005) lnspection Scope The organization structure was reviewed to ensure that the licensee had maintained effective organization and management controls to maintain compliance with NRC requirements. Also reviewed was the utilization and implementation of the licensee's performance-based license (PBL) and selected procedures. Observations and Findinqs Management Organization The organization structure requirements are provided in License Condition 9.3 as described in the NRC-approved license renewal application dated January 30, 1997. No changes had been made to the organization structure since the previous inspection. However, the licensee had hired a process engineer to fill the position of mill manager. There were 23 workers employed at the mill at the time of this inspection. The licensee's organization structure was found to be in agreement with the intent of License Condition 9.3. b. -4- Performance-Based License (PBL) Review License Condition 9.4 states that the licensee may, under certain conditions and without prior NRC approval, make changes in the facility or processes, make changes to procedures, or conduct tests and experiments not presented in the license application. The licensee's implementation of the PBL provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a PBL in March 1997. Pursuant to License Condition 9.4, the licensee is authorized to make certain changes to the licensed program as long as they are reviewed by a safety and environmental review panel (SERP). Proposed changes and SEFIP deliberations are required to be documented pursuant to License Condition 9.4(D). Since the previous inspection, the licensee had completed one SERP meeting. SERP meeting No. 01/02-03 involved reviews of changes to six environmentalstandard operating procedures (SOPs). The SERP meeting minutes and changes were reviewed and found to be acceptable. The NRC inspector found that the SERP changes met the requirements of License Condition 9.4. Site Procedures ln accordance with License Condition 9.6, standard operating procedures are required to be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. The inspector reviewed SOPs for plant process operations, environmental monitoring, and the emergency response plan. Based on reviews of the licensee's SOPs and SERP minutes, the inspector determined that the radiation safety officer (RSO) had reviewed and approved procedures as required by License Condition 9.6. The inspector observed the licensee's implementation of SOPs for the release of intermodal containers, tailings capacity evaluation, and leakage detection at Pond 4A. The licensee was observed to have been following the established SOPs as required by License Conditions 9.4 and 9.6. Conclusions The licensee had maintained an organization structure that agreed with the requirements of the license and had correctly implemented SERP and PBL license conditions. The licensee's review and use of site procedures met requirements. Radiation Protection (83822) lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the license as well as the requirements of 1O CFR Part 20. 2.3 3.1 3.2 -5- Observations and Findings Site Tour The inspector toured the facility to observe activities in progress. The inspector measured radiation levels using an NRC microRoentgen (pR) meter (Serial Number 15525, calibration due date December 10,2OO2\. Radiation surveys taken by the inspector at various locations throughout the mill, around the ore pad, and radioactive material storage areas were consistent with radiation levels from previous inspections. The inspector's radiation measurements were found to be consistent with the licensee's routine survey results. No "radiation areas" as defined by 10 CFR 20.1003 were identified within the process facility. Site perimeter postings required by License Condition 9.9 were in place at the appropriate entrances to the mill. No health or safety concern was identified during the tour. As low As ls Reasonablv Achievable Program In accordance with License Condition 11.6, an annual ALARA audit of the radiation safety program is required to be performed in accordance with Regulatory Guide 8.31. This ALABA audit was also required by Section 3.6 of the license application. The most current ALARA audit was conducted December 5-6, 2001, and was found to have been adequate. The report provided useful information pertaining to the implementation of the radiological program. No significant health or safety issue was identified. Since the last inspection, the licensee had conducted several routine ALARA committee meetings. The inspector reviewed the third quarter ALARA committee meeting minutes and the ALARA Action ltems Tracking List. The tracking list contained 47 action items that the ALARA committee had prioritized for improving the White Mesa radiation protection program. The inspector determined that the ALARA program was adequate. lnternal and External Radiation Exposures and Bioassay Results The inspector reviewed the deep dose equivalent (DDE) radiation exposures from year 2001. According to dosimeter results, 12 workers had DDEs that measured 100-260 millirems. The inspector noted that the RSO had monitored radiation exposures of all radiation workers. The highest worker total effective dose equivalent (TEDE) recorded was 290 millirems of which 200s millirem was background radiation. Allworkers TEDE were less than 10 percent of the 5,000 millirem annuallimit specified in 10 CFR 2O.12O1. The inspector reviewed the licensee's bioassay results for year 2OO1. The licensee had implemented the bioassay program as specified by NRC Regulatory Guide 8.22, "Bioassay at Uranium Mills." Employee urinalysis results were required to be investigated if bioassay samples exceeded the action levelof 15 micrograms per liter uranium. No bioassay results had exceeded the action level during year 2001. The licensee's bioassay program was found to be adequate. b. 3.3 -6- Equipment Release Surveys The inspector observed the licensee's process for the release of intermodalcontainers. The licensee conducted contamination surveys on each intermodal container before being released and transported from the White Mesa facility. The licensee was required to assure that external radiation contamination on the containers was not in excess of Department of Transportation (DOT) limits per 49 CFR 173.428. The DOT's external radiation contamination limit was22 disintegrations per minute per square centimeter loose beta-gamma contamination. The inspector reviewed container release survey records and determined that the licensee was meeting the DOT's contamination limit. The inspector concluded that the licensee was continuing to release and ship empty alternate feed material containers in accordance with applicable license conditions, NRC regulations, and DOT requirements. Conclusions The radiation protection and ALARA programs were found to be adequate. Personnel exposures during year 2OO1 were well below limits, and bioassay results were acceptable. Operations Review (88020), Radioactive Waste Management (88035), and Environmental Monitoring (88045) lnspection Scope The environmental monitoring, effluent monitoring, radioactive material storage, and waste management programs were reviewed to assess the effectiveness of the licensee's programs and to evaluate the effects, if any, of site activities on the local environment. Observations and Findings Alternate Feed Material Operations During calendar year 2001, and so tar in 200{ the licensee had not processed alternate feed material or uranium ore. License Conditions 10.6 through 10.17 authorizes the licensee to receive and process alternate feed material from 11 providers. Some of the sites that the licensee was authorized to receive alternate feed materials from included: (1) Honeywell Corporation, formerly Allied Signal lncorporated, in Metropolis, lllinois; (2) Ashland and Linde Formerly Utilized Sites RemedialAction Program (FUSRAP) sites near Tonowanda, New York, and Saint Louis, Missouri; (3) drummed calcined byproduct materials from Cameco Corporation's Blind River and Port Hope facilities in Ontario, Canada; (4) W.R. Grace materialfrom Chattanooga, Tennessee; (5) Heritage Minerals in Lakehurst, New Jersey, and (6) Molycorp in Mountain Pass, California. Since the previous inspection, the licensee has continued to receive alternate feed materialfrom the Cameco, Ashland, Linde, Heritage sites, and 35 barrels from Molycorp. 4 4.1 4.2 a- b. -7- During this inspection, the license was preparing for receiving bulk alternate feed materials from Molycorp in May 2002, and for commencing operations in June 2002, processing alternate feed material. License Condition 10.17 and related correspondence for Molycorp alternate feed material required the licensee to implement several protective measures prior to receiving bulk shipments of Molycorp feed material. The licensee was required to certify the concentration of hazardous and radioactive waste constituents in the Molycorp material. White Mesa was required to determine if their tailings impoundments had adequate capacity to store the waste generated from the Molycorp material. Additionally, the licensee was required to assure that the Molycorp material would be stored on a concrete pad that was bermed to prevent liquid runoff from the material. The licensee was also required to utilize a water spray process for dust suppression. The inspector verified that the licensee had conducted a tailings capacity evaluation on December 19, 2001, for tailings Cells 1 ,2, and 3. The evaluation included projecting waste generated from 11(e).2 materia! from Texas and Wyoming and alternate feed material waste from Ashland l, Linde, Heritage, and Molycorp. The licensee had also received an alternate feed material report from the Molycorp site which certified that hazardous waste constituents met specifications. The inspector observed that the licensee had prepared a concrete storage area for the receipt of Molycorp materialthat was bermed using plastic liner materialand stacked barrels around the perimeter. The inspector observed the licensee's dust suppression in operation. The inspector determined that the licensee had met the protective requirements of License Condition 10.17. Environmental and Effluent Monitoring Programs The environmental monitoring program requirements are identified in License Condition 11.2. The licensee must implement the effluent and environmental monitoring programs specified in Section 5.5 of the renewal application. The inspector reviewed the semi-annual effluent report for the second half of calendar year 2001. The licensee's environmental monitoring program consisted of continuous air, groundwater, surface water, and vegetation, as wellas ambient gamma exposure rate measurements. The licensee had collected and analyzed the required samples at the sampling stations, including one at the nearest resident and at a background location. The inspector observed the operation of two environmental monitoring stations. (1) EnvironmentalAirSamplino Particulate air sampling was performed at the sampling stations using continuous high volume samplers. The sample filters were exchanged weekly and analyzed quarterly for natural uranium, radium-226, thorium-230, and lead-210 concentrations. All sample results were less than 2 percent of the concentrations specified in 10 CFR Part 20, Appendix B. No adverse trends were identified. (2)Environmental Exposure Rates Ambient gamma radiation levels were continuously measured at the sample stations with dosimeters. The dosimeters were exchanged and analyzed on a quarterly basis. The environmental dosimeter results were approximately 4.5 pR/hr, which was consistent with the background station dosimeter located at an onsite sample station (East Tailings Area). Ambient gamma exposure rates were determined to be below the limits established in 10 CFR 20.1301(a). Tailinqs Cell Leak Detection Prooram The inspector condugted a tour of the licensee's disposal cells. Cells 1 and 3 were actively being used for waste water recirculation and evaporation processing. Cell 4A water was being pumped into Cell 3. Liquid recovered from Cell 2 operations was being transferred to Cell 3. No abnormalconditions such as leaks or berm failures were obserued at any of the other cells during the site tour. License Condition 11.3(B-E) requires the licensee to implement a monitoring program of the leak detection systems for the disposal cells. The inspector toured the four cell areas with mill staff responsible for the leak detection system and field monitoring. During year 2001, the licensee had reported to the NRC that the 1-gallon per minute (gpm) flow rate specified in License Condition 11.3(D) was being exceeded at Cell 44. During this inspection, the inspector observed the licensee implementing the corrective actions in Cell 4A that included dissolving crystalized vanadium material and keeping control of the water level in Cell 44. The inspector observed a licensee technician measure the liner leakage at Cell 44 and enter the results into the "Cell 44 Leak Detection System Database." The inspector reviewed the Cell 44 leakage data from March 1 to April 3, 2001, and the average leakage measured 4.8S gpm. The inspector concluded that the licensee was properly implementing License Condition 11.3 regarding disposal cel! management. 11e.(2) Radioactive Waste Receipts and Disposal Operations License Condition 10.5 authorizes the licensee to dispose of 1 1e.(2) byproduct material from licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. Disposal Cell3 was being used for disposal of offsite 11(e).2 byproduct waste, as authorized in License Condition 10.5(C). Cell2 was being used for disposalof White Mesa waste. During the site tour, the inspector did not obserue any problems with the 11(e).2 disposal area. The inspector determined that the licensee had not received 11e.(2) byproduct waste shipments since the last inspection. d. 4.3 -9- Conclusions Operationalactivities were being conducted safely and in accordance with the license and NRC regulations. Observations of the licensee's alternate feed material receipt operations revealed that the materialwas handled in an orderly and controlled fashion. The licensee was noted to have collected environmental monitoring samples as required by the license and as reported in the July - December 2001 semi-annual effluent report. Sample results were less than the associated effluent release limits specified in 10 CFR Part 20. No adverse trends were identified. Exit Meeting Summary The inspector presented the inspection results to representatives of the llcensee at the conclusion of the inspection on April 3,2002. The licensee did not identify any information reviewed by the inspector as propriety information. 5 ATTACHMENT PARTIAL LIST OF PERSONS CONTACTED Licensee' R. Berg, Radiation Safety Officer R. Bartlett, Maintenance Mariager K. Miyoshi, Mill Manager M. Rehmann, Environmental Manager INSPECTION PROCEDURES USED 83822 Radiation Protection88005 Management Organization and Controls88020 Operations Review88035 Radioactive Waste Management88045 Environmental Monitoring ITEMS OPENED, CLOSED AND DISCUSSED Opened None Closed None Discussed None LIST OF ACRONYMS USED ALARA as low as reasonably achievableCFR Code of Federal RegulationsDDE deep dose equivalentDOT Department of Transportationgpm gallons per minutepH/hr microRoentgen/hourPBL Performance Based LicensePDR Public Document RoomRSO Radiation Safety OfficerSERP Safety and Environmental Review PanelSOP Standard Operating ProcedureTEDE totaleffective dose equivalent UNITED STATES NUCLEAR REGULATORY COUTISSION REGION IV 6ll RYAI{ PLAZA DR|VE, SUTTE 400 ARLINGTON, TEXAS 76011-806/0 REGION IV October 16, 2001 David C. Frydenland, Vice-President and General Counsel lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681/01-02 Dear Mr. Frydenland: On September 19, 2OO1, the NRC completed an inspection at your White Mesa Mill near Blanding, Utah. This inspection consisted of a review of site status, management organization and controls, radiation protection, site operations, radioactive waste management, and environmental protection. The inspection results were provided to members of your staff at the conclusion of the inspection. The enclosed report presents the results of that inspection. No violations or deviations were identified during this inspection; therefore, no response to this letter is required. ln accordance with 10 CFR 2.790 of the NRC's'Rules of Practice," a copy of this letter, its enclosure, and your response, if any, will be made available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/NRC/ADAMS/|ndex.html (the Public Electronic Reading Room). Should you have any questions concerning this inspection, please contact Mr. Louis C. Carson ll at (817) 860-8221 or the undersigned at (817) 860-8186. Sincerely, OltaJ.s 7. Qall Charles L. Cain, Chief Nuclear Materials Licensing Branch Division of Nuclear Materials Safety Docket No.: 40-8681 License No.: SUA-1358 Enclosure: NRC lnspection Report 40-8681/01 -02 frf',:"\ll rc:i' ,, -6' 6' i;;t.-''rot 6.. & "id,uo $ lnternational Uranium (USA) Corporation -2- cc w/enclosure: Mr. Ron Hochstein, President lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Ms. Michelle Rehmann lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Mr. Richard E. Bartlett, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 Mr. William J. Sinclair, Director State of Utah Department of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & !ntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 Docket No. License No. Report No. Licensee: Facility: Location: Dates: lnspector: Accompanied By: Approved By: Attachment: ENCLOSURE U.S. NUCLEAR REGULATORY COMMISSION REGION IV 40-8681 suA-1358 40-8681/01-02 lnternational Uranium (USA) Corp. White Mesa Mill San Juan County, Utah September 18-19, 2001 Louis C. Carson ll, Health Physicist Nuclear Materials Licensing Branch Jack E. Whitten, Senior Health Physicist Nuclear Materials Licensing Branch Charles L. Cain, Chief Nuclear Materials Licensing Branch Supplementary lnformation -2- EXECUTIVE SUMMARY White Mesa Mill NFIC lnspection Report 40-8681/01 -02 This inspection included a review of site status, management organization and controls, radiation protection, site operations, radioactive waste management, and environmental protection programs. Overall, the licensee was conducting operations in compliance with license and regulatory requirements. Management Organization and Controls . The licensee had maintained an organizational structure that agreed with the requirements of the license (Section 2.0). . The licensee had adequately implemented the Safety Environmental Review Panel and performance-based license conditions (Section 2.0). . The licensee's review and use of site procedures met requirements (Section 2.0). Radiation Protection . The radiation protection and 'As Low As is Reasonably Achievable" programs were found to be adequate. Personne! exposures during year 2001 have been below limits, and bioassay results were acceptable (Section 3.0). Operations. Radioactive Waste Management. and Environmental Protection . Operational activities were being conducted safely and in accordance with the license and NRC regulations (Section 4.0). o fi review of the licensee's handling of the alternate feed material and 11e.(2) byproduct material demonstrated that they were maintaining control of radioactive material shipments in an orderly, controlled fashion (Section 4.0). . The licensee was noted to have collected environmental monitoring samples as required by the license and as reported in the January - June 2001 semiannual effluent report. Sample results were less than the associated effluent release limits specified in 10 CFR Part 20. No adverse trends were identified (Section 4.0). 2 2.1 -3- Report Details Site Status The NRC issued Source Material License No. SUA-1358 to Energy Fuels Nuclear during August 1979. Ownership ol the site was eventually transferred to Umetco Minerals, back to Energy Fuels Nuclear, and finally to lnternational Uranium (USA) Corporation (lUC). IUC assumed ownership of the White Mesa Mill on May 10,1997, with NRC's approvalof License Amendment No. 2. The millwas actively receiving alternate feed material during this inspection. Alternate feed material is materialother than natural uranium ore. The licensee is authorized to receive and process alternate feed materials from certain out-of-state entities by License Conditions 10.6 through 10.16. The licensee had not received and processed ore for uranium or vanadium since the previous inspection. The licensee as authorized by License Condition 10.5 was disposing of 11e.(2) byproduct material waste on site. Management Organization and Controls (88005) lnspection Scope The organization structure was reviewed to ensure that the licensee had maintained effective organization and management controls and maintained compliance with NRC requirements. Also reviewed was the utilization and implementation of the licensee's performance-based license (PBL) and selected procedures. Obseruations and Findinqs Management Orqanization The organizationalstructure requirements are provided in License Condition 9.3, which references the NRC-approved license renewal application dated January 30, 1997. No changes had been made to the organization structure since the previous inspection. However, the licensee had assigned another individualto the position of mill manager. The licensee's organizational structure was found to be in agreement with the intent of License Condition 9.3. Performance-Based License Review License Condition 9.4 states that the licensee may, under certain conditions and without prior NRC approval, make changes in the facility or processes, make changes to procedures, or conduct tests and experiments not presented in the license application. The licensee's implementation of the PBL provisionswas reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a PBL in March 1997. 2.2 a. b. 3 3.1 Pursuant to License Condition 9.4 the licensee is authorized to make certain changes to the licensed program as long as they are reviewed by a safety and environmental review panel (SERP). Proposed changes and SERP deliberations are required to be documented pursuant to License Condition 9.4(D). Since the previous inspection, the licensee had held two SERP meetings. The SERP reviews involved changes to the "Heritage Alternate Feed Managemenf procedure. The SERP meeting minutes and changes were found to be acceptable. The NRC inspector found that the SERP changes met the requirements of License Condition 9.4. Site Procedures ln accordance with License Condition 9.6, standard operating procedures (SOPs) are required to be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. The inspector reviewed the health physics manual, SOPs for plant process operations, and the emergency response plan. Because of the potentialfor personnel being exposed to thorium during the handling of ore from the Heritage site, the licensee established an SOP, "Heritage Alternate Feed Management," for that activity. Based on the licensee's SERP and ALARA committee minutes, the inspector determined that the radiation safety officer (RSO) had reviewed and approved the procedure as required by License Condition 9.6. The inspector obserued the licensee's execution of the SOP during the receipt of alternate feed material and release of intermodal containers. The license was observed to have been following the established SOP as required by License Conditions 9.4 and 9.6. Conclusions The licensee had maintained an organization structure that agreed with the requirements of the license and had correctly implemented SERP and PBL license conditions. The licensee's review and use of site procedures met requirements. Radiation Protection (83822) lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the license as well as the requirements of 10 CFR Part 20. Observations and Findinqs Site Tour The inspector toured the facility to observe activities in progress. Site perimeter postings, required by License Condition 9.9, were in place at the appropriate entrances to the mill. The inspector measured radiation levels using an NRC microRoentgen (pR) 3.2 a. b. -5- meter (Serial Number 15544, calibration due date November 29,2001). Radiation surveys taken by the inspector at various locations throughout the mill and around the ore pad were consistent with radiation levels from the previous inspection. The inspector's radiation measurements were found to be consistent with the licensee's routine survey results. No "radiation areas" as defined by 10 CFR 20.1003 were identified within the process facility. lt was determined that the site restricted area was posted as required by License Condition 9.9. No health or safety concern was identified during the tour. As low As ls Reasonably Achievable Proqram Since the last inspection, the licensee had conducted routine "As low As is Reasonably Achievable" (ALARA) committee meetings. The inspector reviewed the third quarter ALARA committee meeting minutes and the third quarter ALARA Action Tracking List. The tracking list contained 29 action items that the ALARA committee had prioritizedtor improving the White Mesa radiation protection program. The inspector determined that the ALARA program was adequate. The Heritage Ore Radiation Work Permit The inspector reviewed activities, since the previous inspection, that required the licensee to issue a radiation work permit (RWP) due to a significant potentialfor workers to be exposed to radioactive material. The only licensed activity that required the issuance of an RWP was the handling of the Heritage ore during the period July 31 - August 4,2001. RWP-370 was issued by the RSO to work in conjunction with the SOP, "Heritage Alternate Feed Management." The inspector reviewed the RWP and the SOP for the Heritage activity. The RSO explained that personnel conducting the Heritage operation received training on the RWP and the SOP. The inspector reviewed the training records of the workers who signed onto RWP-370 and determined that they were adequately trained. RWP-370 required personnel to don protective equipment such as full-face respirators, coveralls, and rubber gloves. The inspector reviewed the results of airborne radioactivity samples that were collected during the Heritage work. With the exception of one air sample that was collected during a windstorm, the airborne concentrations were less than the licensee's action level of 25 percent of the derived air concentration level for the Heritage ore. The licensee had collected breathing zone measurements and analyzed them for radon, uranium, and thorium. Overall, the workers'total effective dose equivalent results were less than 1 percent of the 5,000 millirem annual limit specified in 10 CFR 20.1201. External Radiation Exposures and Bioassay Results The inspector reviewed the deep dose equivalent (DDE) radiation exposures during calendar year 2001. According to dosimeter results though July 2001, there were only four workers with DDEs of at least 100 millrem (102, 103, 110, and 152 millirem). The inspector noted that the radiation safety officer was continuing to track the radiation exposures of all radiation workers. The RSO gave the inspector a report that showed that the licensee actively used ALARA assessments to ensure that workers'dosimeters d. 3.3 4.',1 -6- were being worn and stored properly. Additionally, the RSO showed the inspector that they varied the work assignments of individuals at the ore pad and scalehouse to assure that worker exposures were ALARA. The inspector reviewed the licensee's bioassay results since the previous inspection. The licensee had implemented the bioassay program as specified by NRC Regulatory Guide 8.22,"Bioassay at Uranium Mills." Employee urinalysis results were required to be investigated if bioassay samples exceeded the action level of 15 micrograms per liter uranium. No bioassay results had exceeded the action level duiing the period. The licensee's bioassay program was found to be adequate. Conclusions The radiation protection and ALARA programs were found to be adequate. Personnel exposures during year 2001 were below limits, and bioassay results were acceptable. Operations Review (88020), Radioactive Waste Management (88035), and Environmental Monitoring (88045) lnspection Scope The environmental monitoring, effluent monitoring, radioactive materialstorage, and waste management programs were reviewed to assess the effectiveness of the licensee's programs and to evaluate the effects, if any, of site activities on the local environment. Obseruations and Findinos Alternate Feed Material Operations So far during calendar year 2001, the licensee had not processed alternate feed material or uranium ore. License Conditions 10.6 and 10.7 authorize the licensee to process alternate feed material from Allied Signal. ln accordance with License Conditions 10.10, 10.11, 10.12, 10.14,10.15 and 10.16, the licensee was authorized to receive bulk alternate feed materials in soilform from the following sites: (1) Ashland and Linde Formerly Utilized Sites RemedialAction Program (FUSRAP) sites near Tonowanda, New York, and Saint Louis, Missouri; (2) drummed calcined byproduct materials from Cameco Corporation's Blind River and Port Hope facilities in Ontario, Canada; (3) W.R. Grace materialfrom Chattanooga, Tennessee; and (4) Heritage Minerals in Lakehurst, New Jersey. So far during year 2001, the licensee only stockpiled alternate feed material. Since the last inspection, the licensee received and stockpiled ore from the Cameco, Ashland, Linde, and Heritage sites. 4.2 a. b. -7- The inspector obserued the licensee's process for the release of intermodal containers. The licensee conducted contamination surueys on intermodal containers before being released and transported from the White Mesa facility. The licensee was required to assure that external radiation contamination on the containers was not in excess of Department of Transportation (DOT) limits per 49 CFR 173.428. The inspector observed radiation protection personnel affix "Empty'' labels on containers leaving the site. The labels stated that the package conformed to the limitations of 49 CFR 173.428 for radioactive material. Specifically, the DOT's external radiation contamination limit was 22 disintegrations per minute per square centimeters (dpm/cm2) loose beta-gamma contamination. The inspector observed the licensee use a beta-gamma detector for the surveys and noted the level of sensitivity that the detector exhibited during the conduct of the surveys. The inspector reviewed container release survey records and determined that the licensee was meeting the DOT's contamination limit. The inspector concluded that the licensee was continuing to release and ship empty alternate feed material containers in accordance with applicable license conditions, NRC regulations, and DOT requirements. Environmental and Effluent Monitoring Programs The environmental monitoring program requirements are identified in License Condition 11.2. The licensee must implement the effluent and environmental monitoring programs specified in Section 5.5 of the renewal application. The inspector reviewed the semiannual effluent report for the first half of calendar year ZOO1. The licensee's environmental monitoring program consisted of continuous air, groundwater, surface water, and vegetation, as well as ambient gamma exposure rate measurements. The licensee had collected and analyzed the required samples at the sampling stations, including one at the nearest resident and at a background location. (1) EnvironmentalAirSampling Particulate air sampling was performed at four stations using continuous high volume samplers. The sample filters were exchanged weekly and analyzed quarterly for natural uranium, radium-226, thorium-23O, and lead-210 concentrations. All sample results were less than 2 percent of the concentrations specified in 10 CFR Part 20, Appendix B. No adverse trends were identified. (2) Environmental Exposure Rates Ambient gamma radiation levels were continuously measured at the four sample stations with thermoluminescent dosimeters (TLDs). The TLDs were exchanged and analyzed on a quarterly basis. The environmental TLD results were approximately 6 pH/hr, which was consistent with the background station TLD located at an onsite sample station (East Tailings Area). Ambient gamma exposure rates were determined to be below the limits established in 10 CFR 20.1301(aX2). (3) -8- Vegetation Vegetation samples were collected at three locations around the mill during spring 2OO1. The samples were analyzed for radium-226 and lead-210 concentrations. Sample results were comparable to those taken in 2000, with no observable adverse trends. Surface Water Sampling ln accordance with Section 5.5 of the license application, surface water samples are required to be obtained from two locations. Water samples were obtained from Westwater Creek and quarterly from Cottonwood Creek. The samples were analyzed for natural uranium, radium-226, thorium-23O concentrations, and total dissolved solids. Surface water sample results were comparable to those taken in 2000, with no observable adverse trends. (4) d. Tailings Cell Leak Detection Proqram License Condition 11.3(B-E) requires the licensee to implement a monitoring program of the leak detection systems for the disposal cells. The inspector toured the four cell areas with millstaff responsible for the leak detection system and field monitoring. During year 2001, the licensee had reported to the NRC that the 1-gallon per minute (gpm) flow rate specified in License Condition 11.3(D) was still being exceeded for Cell 4A. Cell 44 had been built for disposal of byproduct waste material; however, byproduct had not been placed into the cell. During this inspection, the inspector obserued that the licensee had initiated corrective actions in Cell 44 that included dissolving crystalized vanadium material and keeping the water level in Cell 44 very low. The licensee stated that they planned to replace the damaged polyvinyl liner in Cell 44. The inspector conducted a tour of the licensee's disposal cells. Cells 1 and 3 were actively being used for waste water recirculation and evaporation processing. Cell 4A water was being pumped into Cell 3. Liquid recovered from Cell 2 operations was being transferred to Cell 3. No abnormal conditions, such as leaks or berm failures, were obserued at any of the other cells during the site tour. The inspector concluded that the licensee was properly implementing License Condition 11.3 regarding disposal cell management. 11e.(2) Radioactive Waste Receipts and Disposal Ooerations License Condition 10.5 authorizes the licensee to dispose of 11e.(2) byproduct material from licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. Disposal Cell 3 was being used for disposalof offsite 11(e).2 byproduct waste, as authorized in License Condition 10.5(C). Cell2 was being used for disposal of White Mesa waste. 4.3 -9- The inspector reviewed the licensee's most current 11e.(2) summary for year 2001. So far in 2001, the licensee had received 11e.(2) byproduct waste for disposal from two waste generators. The inspector reviewed nine waste shipping manifest records and the licensee waste receipt process. The inspector determined that the licensee's 11e.(2) byproduct waste receipt inspection process was adequate. Shipments of 11e.(2) waste were found to have been conducted within the 5000 cubic yard limit of License Condition 10.5. Conclusions Operationalactivities were being conducted safely and in accordance with the license and NRC regulations. A review of the licensee's handling of the alternate feed material and 11e.(2) byproduct material demonstrated that they were maintaining control of radioactive material shipments in an orderly, controlled fashion. The licensee was noted to have collected environmental monitoring samples as required by the license and as reported in the January - June 2001 semiannual effluent report. Sample results were less than the associated effluent release limits specified in 10 CFR Part 20 . No adverse trends were identified. Exit Meeting Summary The inspector presented the inspection results to representatives of the licensee at the conclusion of the inspection on September 19, 2001 . The licensee did not identify any information reviewed by the inspector as propriety information. 5 o ATTACHMENT PARTIAL LIST OF PERSONS CONTACTED Licensee B. Berg, Radiation Safety Officer. R. Bartlett, Mill Manager M. Rehmann, Environmental Manager INSPECTION PROCEDURES USED 83822 Radiation Protection88005 Management Organization and Controls88035 Radioactive Waste Management88045 Environmental Monitoring ITEMS OPENED, CLOSED AND DISCUSSED Opened None Closed None Discussed None o LIST OF ACRONYMS USED ALARA as low as reasonably achievableCaF calcium fluorideCFR Code of Federal RegulationsDOT Department of Transportationdpm disintegrations per minuteIUC lnternational Uranium Corporationmg/l milligrams per literpR/hr microRoentgen/hourPBL Performance Based LicensePDR Public Document RoomRSO Radiation Safety OfficerSERP Safety and Environmental Review PanelSOP Standard Operating ProcedureTLD thermoluminescent dosimeter -2- UNITED STATES NUCLEAR REGULATORY COT]UIISSION REGION IV 6I' RYAN PLAZA DRIVE, SUITE 4OO ARLINGTON, TEXAS 7801 1-806'l April 27, 200L David C. Frydenland, Vice-President and General Counsel lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681/01-01 Dear Mr. Frydenland: On April 4,2001, the NRC completed an inspection at your White Mesa Mill near Blanding, Utah. This inspection was an examination of activities conducted under your license as they relate to safety and compliance with the Commission's rules and regulations and your license conditions. The inspection included an examination of selected procedures and representative records, observations of activities, and interviews with personnel. This inspection consisted of a review of site status, site operations, radioactive waste management, environmental monitoring, and followup of previously identified NRC inspection findings. The preliminary inspection results were provided to members of your staff at the conclusion of the onsite inspection. The enclosed report presents the results of that inspection. No violations or deviations were identified during this inspection; therefore, no response to this letter is required. ln accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter, its enclosure, and your response will be made available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.goviNRC/ADAMS/index.html (the Public Electronic Reading Room). Should you have any questions concerning this inspection, please contact Mr. Louis C. Carson ll at (817) 860-8234 or the undersigned at (817) 860-8191. ,.1 irl t..l Sincerely,ffiD. Blair Spitzberg, Ph.D., Chief Fuel Cycle and Decommissioning Branch Docket No.: 40-8681 License No.: SUA-1358 lnternational Uranium (USA) Corporation -2- Enclosure: NRC lnspection Report 40-8681/00-01 cc Menclosure: Mr. Ron Hochstein, President lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Ms. Michelle Rehmann lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Mr. William Deal, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 Mr. William J. Sinclair, Director State of Utah Department of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & lntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 ENCLOSURE U.S. NUCLEAR REGULATORY COMMISSION REG]ON IV Docket No. 40-8681 License No. SUA-I358 Report No. 40-8681/01-01 Licensee: lnternational Uranium (USA) Corp. Facility: White Mesa Mill Location: San Juan County, Utah Dates: April3-4, 2001 lnspector: Louis C. Carson ll, Health Physicist Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Approved by: D. Blair Spitzberg, Ph.D., Chief Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Attachment: Supplementary lnformation -2- EXECUTIVE SUMMARY White Mesa Mill NRC lnspection Report 40-8681/01 -01 This inspection included a review of site status, management organization and controls, site operations, radioactive waste management, radiation protection and environmental protection programs. Also, a followup review was performed of previously identified NRC inspection findings. Overall, the licensee was conducting operations in compliance with license and regulatory requirements. Management Organization and Controls . The licensee had maintained an organization structure that agreed with the requirements of the license (Section 2.0). . The licensee had adequately implemented the As Low As is Reasonably Achievable (ALARA) committee, the Safety Environmental Review Panel (SERP), and performance-based license conditions (Section 2.0). . The licensee's review and use of site procedures met requirements (Section 2.0). Radiation Protection . The radiation protection and ALARA programs were found to be adequate. Personnel exposures for year 2000 were below limits, and bioassay results were acceptable (Section 3.0). Operations. Radioactive Waste Management. and Environmental Protection . Operational activities were being conducted safely and in accordance with the conditions of the license as well as NRC regulations (Section 4.0). o I review of the licensee's onsite control of the alternate feed material demonstrated that the licensee was maintaining control of the material in an orderly, controlled fashion (Section 4.0). o. The licensee was noted to have collected environmental monitoring samples as required by the license and as reported in the year 2000 semiannual effluent reports. Sample results were less than the associated effluent release limits specified in 10 CFR Parl20 during year 2000. No adverse trends were identified (Section 4.0). Followup . Five open items were closed which included four violations and one inspection followup item (Section 5). 2 2.1 -3- Report Details Site Status The NRC issued Source Material License SUA-I358 to Energy Fuels Nuclear during August 1979. Ownership of the site was eventually transferred to Umetco Minerals, back to Energy Fuels Nuclear, and finally to lnternational Uranium (USA) Corporation (lUC). IUC assumed ownership of the White Mesa Mill on May 10,1997. The NHC approved the transfer via Amendment 2 of the revised License and issued to IUC on May 9, 1997. The mill was actively receiving alternate feed material during the inspection. Alternate feed material is material other than natural uranium ore. The licensee is authorized to receive and process alternate feed materials from certain out-of-state entities by License Conditions 10.6 through 10.16. The licensee had not received and processed ore for uranium or vanadium since the previous inspection. The licensee as authorized by License Condition 10.5 was disposing of 1 1e.(2) byproduct material waste. Management Organization and Controls (88005) lnspection Scope The organization structure was reviewed to ensure the licensee had maintained effective organization and management controls to ensure compliance with NRC requirements. Also, reviewed was the utilization and implementation of the licensee's performance-based license (PBL). Observations and Findings Management Organization The organizationalstructure requirements are provided in License Condition 9.3, which references the NRC-approved license renewal application dated January 30, 1997. No changes had been made to the organization structure since the previous inspection. The licensee's organizational structure was found to be in agreement with the intent of License Condition 9.3. Performance-Based License Review License Condition 9.4 states, that the licensee may, under certain conditions and without prior NRC approval, make changes in the facility or processes, make changes to procedures, or conduct tests and experiments not presented in the license application. The licensee's implementation of the performance-based license provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a performance-based license in March 1997. 2.2 a. b. 2.3 -4- Making changes pursuant to License Condition 9.4 are required to be reviewed by a safety and environmental review panel (SERP). Proposed changes and the deliberations are required to be documented pursuant to License Condition 9.4(D). Since the previous inspection, the licensee had held eight SERP meetings. Some of the SERP reviews involved changes to the following procedures: instrument calibration and functional checks, environmental monitoring, alternate feed material receipt, and release of intermodalcontainers. The SERP meeting minutes and changes were found to be acceptable. The SERP changes since July 2000 met the requirements of License Condition 9.4. Site Procedures ln accordance with License Condition 9.6, standard operating procedures (SOPs) are required to be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. The inspector reviewed the health physics manual, SOPs for plant process operations, and the emergency response plan. The inspector noted improvements in the quality of the licensee's procedures since the last inspection. The radiation safety officer (RSO) had reviewed and approved updates to procedures as required by License Condition 9.4. Additionally, the inspector observed the licensee's performance of SOPs associated with the receipt of alternate feed material and release of intermodal containers. The license was observed to have been following the established SOPs as required by License Condition 9.6. Conclusions The licensee had maintained an organization structure that agreed with the requirements of the license and had correctly implemented the performance-based conditions of the license. The licensee's review and use of site procedures met requirements. Radiation Protection (83822) lnspection ScoLe Portions of the licensee's radiation protection program were reviewed to verify compliance with the conditions of the license as well as the requirements of 10 CFR Part 20. Observations and Findinqs Site Tour A facility tour was performed to observe activities in progress. Site perimeter postings, required by License Condition 9.9 were in place at the appropriate entrances to the mill. During the inspector's site tour, radiation levels were measured using an NRC 3.1 3.2 a. b. -5- microRoentgen (pR) meter (Serial Number 15544, calibration due date November 29, 2001). The background radiation level offsite was 10-15 pR/hr. Surveys taken in various locations throughout the mill and around the ore pad showed the following radiation levels: . Central Mill - 200 pH/hr. Main Grizzly - 800 pF/hr. Truck Wash/Decon Pad - 200-600 ;rH/hr. Ore Pad Area - 300 - 1,000 pH/hr. Truck Checkpoint - 7O pF/hr The inspector's radiation measurements were consistent with the licensee's routine survey results. No "radiation areas" as defined by 10 CFR 20.1003 were identified within the process facility. lt was determined that the site restricted area was posted as required by License Condition 9.9. No health or safety concern was identified during the tour. As low As Reasonablv Achievable Program Review ln accordance with License Condition 11.6, an annual As Low As is Reasonably Achievable (ALARA) audit of the radiation safety program is required to be performed in accordance with Regulatory Guide 8.31. The most current ALARA audit was conducted December 5-6, 2000, and was found to have been adequate. This ALARA audit was also required by Section 3.6 of the ALARA Program section of the license application. The report provided useful information pertaining to the implementation of the radiological program. No significant health or safety issue was identified. Since the last inspection, the licensee had conducted routine ALARA committee meetings. The inspector reviewed the ALARA committee meeting minutes and the ALARA Action Tracking List. The tracking list contained 38 action items that the ALARA committee had prioritized for improving the White Mesa radiation protection program. The inspector determined that the ALARA audit and program were adequate. Personnel Radiation Exposure and Bioassav Results The inspector reviewed the Annual Report of Dose to Employee - 2000 letters dated March 15, 2000, that the licensee had issued pursuant to 10 CFR 19.13. The highest worker total effective dose equivalent (TEDE) recorded was 566 millirem of which 449 millirem was committed effective dose equivalent (CEDE). All other worker's TEDE were less than 10 percent of the 5,000 millirem annual limit specified in 10 CFR 20.1201. The licensee's bioassay results for year 2000 were reviewed. The licensee had implemented the bioassay program as specified by NRC Regulatory Guide 8.22, "Bioassay at Uranium Mills." Employee urinalysis results were required to be investigated if bioassay samples exceeded the action level of 15 micrograms/ liter uranium. No bioassay results had exceeded the action level during the period. The licensee's bioassay program was adequate. c. -6- 3.3 Conclusions The radiation protection and ALARA programs were found to be adequate. Personnel exposures for year 2000 were below limits, and bioassay results were acceptable. Operations Review (88020), Radioactive Waste Management (88035), and Environmental Monitoring (88045) lnspection Scope The environmental, effluent, radioactive material storage and waste, and groundwater monitoring programs were reviewed to assess the effectiveness of the licensee's programs and to evaluate the effects, if any, of site activities on the local environment. Observations and Findinqs Alternate Feed Material Operations During year 2000, the licensee had not processed alternate feed material or uranium ore. Conventional uranium ore operations last occurred in November-December 1999. The licensee plans to process alternate feed material in June 2001. License Conditions 10.6 and 10.7, authorizes the licensee to process alternate feed materialfrom Allied Signal. This material, referred to as "CaF'(calcium fluoride), had been stockpiled for future processing. ln accordance with License Conditions 10.10, 10.1 1, 10.'12, 10.14, 10.15 and 10.16, the licensee was authorized to receive bulk alternate feed materials in soilform from the following sites: (1) Ashland and Line Formerly Utilized Sites RemedialAction Programs (FUSRAP) near Tonowanda, New York and Saint Louis, Missouri; (2) drummed calcined byproduct materials from Cameco Corporation's Blind River, Port Hope facilities in Ontario, Canada; (3) W.R. Grace materialfrom Chattanooga, Tennessee; and (4) Heritage Minerals in Lakehurst, New Jersey. During year 2000, the licensee only stockpiled alternate feed material. Since the last inspection, the licensee had been authorized to receive alternate feed material from the Linde, W.R. Grace, and Heritage sites. However, the licensee was only stockpiling Linde material. The inspector noted that License Condition 10.14 for Linde alternate feed material, required the licensee to certify that the Linde material did not contain hazardous waste material, and determine if the White Mesa tailings impoundment had adequate capacity to store the waste generated from the Linde material. The inspector verified that the licensee had conducted a tailings capacity evaluation on September 25, 2000, for tailings Cells 1 ,2, and 3. The evaluation included projecting waste generated from USX 11e.2 material, Ashland l, Molycorp, Heritage, and Linde. The licensee had also received an alternate feed material report from the Linde site which certified that hazardous waste constituents met specifications. The inspector determined that the licensee had met the requirements of License Condition '10.14. 4 4.1 4.2 a. b. -7- The licensee's onsite control of the alternate feed material demonstrated that the licensee was maintaining control of the radioactive waste shipments in an orderly, controlled fashion. The inspector concluded that the licensee had been receiving alternate feed material in accordance with the detail of the applicable license conditions. Environmental and Effluent Monitorinq Proorams Environmental monitoring program requirements are identified in License Condition 11.2, which specifies that the licensee implement the effluent and environmental monitoring programs specified in Section 5.5 of the renewal application. During the inspection, the inspector reviewed the semiannual effluent reports for year 2000. The licensee's environmental monitoring program consisted of continuous air, groundwater, surface water, and vegetation, as well as ambient gamma exposure rate measurements. The licensee had collected the required samples at the sampling stations, including a nearest resident and a background location. Environmental Air Sampling Particulate air sampling was performed at four stations using continuous high volume samplers. The sample filters were exchanged weekly and analyzed quarterly for natural uranium, radium-226, thorium-23O, and lead-210 concentrations. All sample results for year 2000 were less than 2 percent of the concentrations specified in 10 CFR Part 20, Appendix B. No adverse trends were identified. Environmental Exposure Rates Ambient gamma radiation levels were continuously measured at the five sample stations with thermoluminescent dosimeters (TLDs). The TLDs were exchanged and analyzed on a quarterly basis. The environmental TLD results for year 2000 were approximately 10 pR/hr, which was consistent with the background station TLDs located at an onsite sample station (East Tailings Area). Ambient gamma exposure rates were determined to be below the limits established in 10 cFR 20.1301(ax2). Vegetation Vegetation samples were collected at three locations around the mill during early spring, late spring, and fall. The samples were analyzed for radium-226 and lead-210 concentrations. Sample results for year 2000 were comparable to those taken in 1999, with no observable adverse trends. Surface Water Sampling ln accordance with Section 5.5 of the license application, surface water samples are required to be obtained from two locations. Water samples were obtained from Westwater Creek and quarterly from Cottonwood Creek. The samples were analyzed for their natural uranium, radium-226, thorium-230 concentrations, and total dissolved d. t. g. solids. Surface water sample results for year 2000 were comparable to those taken in 1999, with no observable adverse trends. Tailinqs Cell Leak Detection Program License Condition 11.S(B-E) requires the licensee to implement a monitoring program of the leak detection systems for the disposal cells. The licensee's procedures for tailings management, training and quality assurance were reviewed. The inspector toured the cell area with millstaff responsible for the leak detection system and field monitoring. The licensee notified the NRC that the 1-gallon per minute (gpm) flow rate specified in License Condition (LC) 11.3(D) has been exceeded for Cell 4A, and that it may have been exceeded since January 2001. The licensee noted that they were fulfilling the requirement in License Condition 11.3(DX3) to report this exceedence to the NRC within 48 hours. Millstaff had not reported this exceedence until recently due to equipment problems. The licensee had initiated corrective action by pumping the leak detection sump. During this inspection, the licensee was investigating this matter in order to issue a written report to the NRC in 30 days as specified in LC 11.3(DX3). The inspector determined that the licensee was properly implementing License Condition 11.3. 11e.(2) Radioactive Waste Receipts and Disposal Operations License Condition 10.5 authorizes the licensee to dispose of 1 1e.(2) byproduct material from licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. The licensee's most current annual 11e.(2) summary for year 2O0O was reviewed. During 2000, the licensee received 1 1e.(2) byproduct waste for disposal from one waste generator. Shipments of 11e.(2) waste were found to have been conducted within the 5000 cubic yard limit of License Condition 10.5. A field inspection of the licensee's disposal cells was conducted. Cells 1 and 3 were actively being used for process solution evaporation and recycling. Cell 3 was also used for disposal of White Mesa's tailings and wastes from offsite, as authorized in License Condition 10.5. Cell2 was being used for disposal of White Mesa waste and had been covered as the cell was filled. Liquid recovered from Cell2 operations was being transferred to Cell 3. No abnormal conditions, such as leaks or berm failures were observed at any of the other cells during the site tour. Conclusions Operational activities were being conducted safely and in accordance with the conditions of the license as well as NRC regulations. A review of the licensee's onsite control of the alternate feed materialdemonstrated the licensee was maintaining control of the radioactive waste shipments in an orderly, controlled fashion. The licensee was noted to have collected environmental monitoring samples required by the license at the intervals specified in the license, as reported in the 2000 semiannual effluent reports. 4.4 5.1 -9- Sample results were less than the associated effluent release limits specified in 10 CFR Part 20 during year 2000. No adverse trends were identified. Followup (92701) (Closed) lFl 40-8681/9903-01: Receipt of Hazardous Waste Material at the White Mesa Miil On October 26,1999, the licensee inadvertently received and accepted a shipment of potentially hazardous waste materialfrom the Massachusetts Highway Department Central Artery Tunnel project. The waste material sample result showed a lead concentration of 5.75 milligrams per liter (mg/l) which was above the criteria of 5.0 mg/l for classifying the material as hazardous waste. The waste material had been erroneously shipped to the site because of a duplication in shipping container numbers. Several programmatic weaknesses contributed to the problem including poor control of shipping manifests and use of generic versus specific ore receipt inspection procedures. The licensee's random sampling program would not have identified the wastes because the hazardous constituent (lead) was not one of the constituents that the licensee tested for incoming material. Finally, the shipment of the materialwas determined not to be under the jurisdiction of the NRC. An NRC lnspection Followup ltem (lFl) was opened to ensure the licensee resolves the mixed waste concerns, disposes of the waste material, and implements corrective actions to prevent recurrence of the incident. The inspector observed that the licensee had completely excavated the hazardous material and stored the hazardous material in an intermodal container. The licensee was expecting the intermodal container to be shipped in August 2000. This matter was to remain open untilthe waste materialwas removed from the site. The licensee had established a new SOP "lntermodal Container Acceptance, Handling, and Release," to preclude the recurrence of this type of situation. During this inspection, the inspector verified that the container of hazardous material had been shipped off the White Mesa site. This matter is closed. (Closed) VIO 40-8681/0001-01: Failure to follow procedures for alpha detector functional checks License Condition 9.6 required that SOPs be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. Additionally, written procedures were to be established for non-operational activities to include instrument calibrations. Section 3.1.2.3.2 of the licensee's SOP "Checks," required that instrument checks were made for each detector using an appropriate calibrated source. A comparison of the results with those obtained at the calibration was to be conducted to determine field performance. lf deviations exceeding 10 percent were noted, a recalibration of the detector was required. However, alpha detector functional check results for June and July 200O were not compared to the results of the instruments'calibration to determine the field performance of the alpha detectors. 5.2 5.3 -10- During this inspection, the inspector verified that the licensee had implemented corrective actions as stated in the violation response letter to the NRC dated October 13, 2000. The licensee's corrective actions included retraining radiation protection staff, revising the SOP concerning functional checks, and providing new instructions to the instrument calibration vendor. This matter is closed. (Closed) VIO 40-8681/0001-03: Failure to follow the Performance Based License and use the SafeV and Environmental Review Panel to change the procedure in the license application for uranium and vanadium product surveys License Condition 9.4 subjected the licensee to specific conditions regarding changes to procedures presented in the application. The licensee must maintain records of any changes made pursuant to this condition until license termination. These records include written safety and environmental evaluations made by the SERP that provide the basis for determining if changes are in compliance with the requirements referred to in Part B of this condition. License application Section 2.7, required that product be monitored by the radiation protection department before released and shipped from the site. Product shipments included uranium and vanadium. Section 2.7 of the license application required that all barrels be fixed alpha and gamma scanned; inspected for leaks and cleanliness; and all the results documented. tn December 1998, the licensee determined that the procedure in license application Section 2.7, "Product Shipment Surveys," did not apply to vanadium product shipments. Therefore, the licensee stopped performing fixed alpha and gamma scan surveys and inspections on all vanadium product barrels. Records of this change and a written safety and environmenta! evaluation that provided the basis for determining that the change met the requirements in License Condition 9.4(B) were not maintained. During this inspection, the inspector verified that the licensee had implemented corrective actions as stated in the violation response letter to the NRC dated October 13, 2000. The inspector noted that the licensee increased the level of administrative rigor associated with conducting SERP and ALARA meetings, especially, pertaining to potential changes to the license application. This matter is closed. (Closed) VIO 40-8681/0001-04: Failure to conduct free release surveys on vanadium product shipments as required by the license License Condition 9.10 required that releases of equipment or packages from the restricted area be in accordance with "Guidelines for Decontamination of Facilities and Equipment Prior to Release for Unrestricted Use of Termination of Licenses for Byproduct, Source, or Special Nuclear Material," dated May 1987, or suitable alternative procedures approved by the NRC prior to any such release. Section 2.7.5.(3) of the SOP "Procedures - Uranium & Vanadium Concentration Shipments," required the licensee to perform removable alpha contamination (smear/swipe) surveys on any barrel that exceeds 1,000 disintegrations per minute per 100 square centimeters (dpm/l00cm2) fixed alpha contamination. However, on March 17 andApril 14,2000, three barrels containing vanadium product were released from the site restricted area with measured fixed contamination that exceeded 1,00O dpm/100cm2. The licensee measurements were not capable of determining the fraction of this radioactivity that was 5.4 5.5 11- alpha contamination. Therefore, the licensee did not perform surveys for removable alpha contamination as required. Specifically, the three barrels had fixed contamination levels of 1,200, 1,600, and 2,000 dpm/l00cm2, respectively. During this inspection, the inspector verified that the licensee had implemented corrective actions as stated in the violation response letter to the NRC dated October 13, 2000. This matter is closed. (Closed) NCV 40-8681/0001-05: Failure to follow procedures for surveyinq equipment such as intermodal containers for unrestricted release On June 22,2000, the licensee reported to the NRC that they had failed to implement their SOP for releasing intermodal containers offsite. Failure to implement the SOP for releasing intermodal containers for restricted use was a violation of License Conditions 9.6 and 9.10. The inspector determined that the licensee had satisfactorily implemented corrective actions, and the contamination levels that were detected on the containers had a low safety consequence to members of the public. This matter was considered non-repetitive, licensee-identified and corrected. Therefore, the violation was treated as a non-cited violation, consistent with Section Vl.A(8) of the NRC Enforcement Policy. During this inspection, the inspector obserued the decontamination and release surveys of intermodal containers. The inspector noted that the licensee's program for releasing intermodalcontainers was extensive. Due to the licensee's implementation of its corrective actions, this matter is closed. Exit Meeting Summary The inspector presented the inspection results to representatives of the licensee at the conclusion of the inspection on April 4,2AO1. The licensee did not identify any information reviewed by the inspector as propriety information. ATTACHMENT PARTIAL L]ST OF PERSONS CONTACTED Licensee R. Berg, Radiation Safety Officer W. Deal, Mill Manager M. Rehmann, Environmental Manager 83822 88005 88035 88045 92701 INSPECTION PROCEDURES USED Radiation Protection Management Organization and Controls Radioactive Waste Management Environmental Monitorin g Followup ITEMS OPENED, CLOSED AND DISCUSSED Opened None Closed 40-8681/9903-01 lFl Receipt of hazardous was at the White Mesa Site 40-8681/0001-01 VIO Failure to follow procedures for alpha detector functional checks (License Condition 9.6). 40-8681/0001-03 VIO Failure to follow the PBL and utilized the SERP to change the procedure in the license application for uranium and vanadium product surveys (License Condition 9.4). 40-8681/0001-04 VIO Failure to conduct free release surueys on vanadium product shipments as required by the license (License Condition 9.10). 40-8681/0001-05 NCV Failure to follow procedures for surveying equipment such as intermodal containers for unrestricted release. (License Condition 9.6) Discussed None -2- LIST OF ACRONYMS USED ALARA as low as reasonably achievableCaF calcium fluorideCFR Code of Federal Regulationscpm counts per minuteDOT Department of Transportationdpm disintegrations per minutelN lnformation NoticeIUC lnternational Uranium Corporationmg/l milligrams per literpR/hr microRoentgeilhourPBL Performance Based LicensepCi/g picocuries/gramPDR Public Document RoomRSO Radiation Safety OfficerSERP Safety and Environmental Review PanelSOP Standard Operating ProcedureTLD thermoluminescent dosimeter \\ UNITED STATES NUCLEAR REGULATORY COMMISSION REGION lV 6I.I RYAN PLAZA DRIVE, SUITE 4OO ARLlNGTON, TB(AS 7601't -8064 September 6, 2000 David C. Frydenland, Vice-President and General Counsel lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681/00-01 AND NOTICE OF VIOLATION Dear Mr. Frydenland: On July 27,2000, the NRC completed an inspection at your White Mesa Mill near Blanding, Utah. The inspection consisted of selective examinations of procedures and representative records, interviews with personnel, and observations of activities in progress. The preliminary inspection findings were presented to you and members of your staff at the conclusion of the onsite inspection. A telephonic briefing was held with Mr. Hochstein and members of your staff on August 22,2000, following the completion of additional in-office inspection. The enclosed repod presents the results of that inspection. Based on information developed during the inspection, the NRC has determined violations of NRC requirements occurred. Three violations are cited in the enclosed Notice of Violation (Notice) and the circumstances surrounding them are described in detail in the enclosed inspection report. The first violation involved the failure to follow established standard operating procedures (SOPs) for performing functional checks of radiation detection instruments in accordance with License Condition 9.6. The second violation involved a failure to implement the Performance-Based License condition, a violation of License Condition 9.4. Specifically, your staff changed a radiation survey procedure that is described in the license application, but failed to maintain records required by the license, of the basis for determining the change was in compliance with the requirements referred to in the license. The thinl',yiolation was for failuro to perform unrestricted release surueys of ceftain vanadium product drums prior to shipment as specified by your license. Additionally, the inspection found that some vanadium product drums exhibited elevated levels of radioactivity. This finding is the subject of an Unresolved ltem in this repoft. An Unresolved ltem is a matter about which the NRC needs additional information in order to ascedain whether the issue in question is an acceptable item, a deviation, a nonconformance, or a violation. The issues which appear to be unresolved center on jurisdiction of the NRC over the radioactivity in your vanadium product and any safety controls which may be needed for this material. With respect to these issues, we are in receipt of your letter dated August 25,2000, which describes your position on the subject. Until these matters are resolved, we understand that you committed to make no shipments of contaminated vanadium product currently in storage. lf your understanding of this commitment is different than stated above, please contact us immediately. {r.:\S 9...r ...r" Ig -s:t* $,\e,,-,:g lnternational Uranium (USA) Corporation -2- A fourth violation concerning the release of contaminated intermodal containers is being treated as a Non-Cited Violation (NCV), consistent with Section Vl.A(8) of the Enforcement Policy. This NCV is described in the subject inspection report. lf you contest the violation or the significance of this NCV, you should provide a response with 30 days of the date of this inspection report, with the basis of your denial, to the U.S. Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington, DC 20555, with a copy to the Regional Administrator, U.S. Nuclear Regulatory Commission, Region lV, 611 Ryan Plaza Drive, Suite 400, Arlington, Texas 76011. You are required to respond to this letter and should follow the instructions specified in the enclosed Notice when preparing your response. The NRC will use your response, in part, to determine whether further enforcement action is necessary to ensure compliance with regulatory requirements. For your consideration and convenience, NRC lnformation Notice 96-28, "SUGGESTED GUIDANCE RELATING TO DEVELOPMENT AND IMPLEMENTATION OF CORRECTIVE ACTION," is enclosed. ln accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter and its enclosure will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NHC Web site at http://www.nrc.oov/NRC/ADAMS/index.html (the Public Electronic Reading Room). Should you have any questions concerning this inspection, please contact Mr. Louis C. Carson ll at (817) 860-8220 or Dr. D. Blair Spitzberg at (817) 860-8191. Sincerely, il*rltA &hrh Owffnt D. Chamberlain, Director Division of Nuclear Materials Safety Docket No.: 40-8681 License No.: SUA-1358 Enclosures: 1. Notice of Violation 2. NRC lnspection Report 40-8681/00-01 't lnternational Uranium (USA) Corporation -3- cc w/enclosures: Mr. Ron Hochstein, President lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Ms. Michelle Rehmann lnternational Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Mr. William Deal, Mill Manager lnternational Uranium (USA) Corp. 6425 S_outh Highway 191 P.O,8ox 809 BJanding, Utah 84511 t/ Mr. William J. Sinclair, Director State of Utah Depadment of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & lntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 ENCLOSURE 1 NOTICE OF VIOLATION lnternational Uranium (USA) Corporation San Juan County, Utah Docket No.: 40-8681 License No.: SUA-1358 During an NRC inspection conducted on July 24-27,2000, violations of NRC requirements were identified. ln accordance with the "General Statement of Policy and Procedure for NRC Enforcement Actions," NUREG-1600, the violations are listed below: A. License Condition 9.6 states, in part, that standard operating procedures (SOPs) shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. Additionally, written procedures shall be established for non-operational activities to include instrument calibrations. Section 3.1.2.3.2 of the licensee's procedure "Checks" required that instrument checks are made for each detector using an appropriate calibrated source. Comparison of the results with those obtained at the calibration is utilized to determine field pedormance. lf deviations exceeding 10 percent are noted, recalibration of the detector is required. Contrary to the above, alpha detector functional check results for June and July 2000, were not compared to the results of the instruments' calibration to determine the field performance of the alpha detectors. This is a Severity Level lV violation (Supplement Vl). B. License Condition 9.4(A&B) states, in part, that the licensee may, subject to the conditions specified in this condition, make changes in procedures presented in the application. The licensee shall maintain records of any changes made pursuant to this condition until license termination. These records shall include, written safety and environmental evaluations, made by the safety, environmental, and review panel (SERP) that provide the basis for determining if changes are in compliance with the requirements referred to in Paft B of this condition. The January 1991 License Application, Section 2.7, "Ptoduct Shipment Surueys," states, in part, that product shipment from the facility will be monitored by the radiation protection department prior to shipment release. Product shipment includes uranium and vanadium. Section 2.7 of the license application requires that all barrels are fixed alpha and gamma scanned; inspected for leaks, holes, and cleanliness; and the inspection is documented. ln December 1998, the licensee determined that the procedure in License Application Section 2.7 "Product Shipment Surueys," did not apply to vanadium product shipments and therefore, the licensee stopped performing fixed alpha and gamma scan surveys and inspections on all vanadium product barrels as specified in Section 2.7 ol the license application. Contrary to the above, records were not maintained of this change with a written safety and environmental evaluation that provided the basis for determining that the change was in compliance with the requirements referred to in License Condition 9.a(B). This is a Severity Level lV violation (Supplement Vl). License Condition 9.10 requires those releases of equipment or packages from the restricted area shall be in accordance with "Guidelines for Decontamination of Facilities and Equipment Prior to Release for Unrestricted Use of Termination of Licenses for Byproduct, Source, or Special Nuclear Material," dated May 1987, or suitable alternative procedures approved by the NRC prior to any such release. Section 2.7.5.(g) and (4) of the SOP "Procedures - Uranium & Vanadium Concentration Shipments" required, in part, the licensee to perform removable alpha contamination (smear/swipe) survey on any barrel that exceeds 1 ,000 disintegrations per minute per 100 square centimeters (dpm/100cm2 ) fixed alpha contamination. Contrary to the above, on March 17 and April 1 4,2OOO, three barrels containing vanadium product were released from the site restricted area with measured fixed contamination that exceeded 1,000 dpm/100cm2. The licensee measurements however were not capable of determining the fraction of this radioactivity that was alpha contamination. Therefore, the licensee did not perform surueys for removable alpha contamination as required. Specifically, the three barrels had fixed contamination levels of 1,200, 1,600, and 2,000 dpm/1 00cm2, respectively. This is a Severity Level lV violation (Supplement Vl). Pursuant to the provisions of 10 CFR 2-201, lnternational Uranium (USA) Corporation, is hereby required to submit a written statement or explanation to the U.S. Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington, DC 20555, with a copy to the Regional Administrator, U.S. Nuclear Regulatory Commission, Region lV, 61'l Ryan Plaza Drive, Suite 400, Arlington, Texas 76011, within 30 days of the date of the letter transmitting this Notice of Violation (Notice). This reply should be clearly marked as a "Reply to a Notice of Violation" and should include for each violation: (1) the reason for the violation, or, if contested, the basis for disputing the violation or severity level, (2) the corrective steps that have been taken and the results achieved, (3) the corrective steps that will be taken to avoid fudher violations, and (4) the date when full compliance will be achieved. Your response may reference or include previous docketed correspondence, if the correspondence adequately addresses the required response. lf an adequate reply is not received within the time specified in this Notice, an order or a Demand for lnformation may be issued as to why the license should not be modified, suspended, or revoked, or why such other action as may be proper should not be taken. Where good cause is shown, consideration will be given to extending the response time. -3- lf you contest this enforcement action, you should also provide a copy of your response, with the basis for your denial, to the Director, Office of Enforcement, United States Nuclear Regulatory Commission, Washington, DC 20555-0001. Because your response will be placed in the NRC Public Document Room (PDR), to the extent possible, it should not include any personal privacy, proprietary, or safeguards information so that it can be placed in the PDR without redaction. lf personal privacy or proprietary information is necessary to provide an acceptable response, then please provide a bracketed copy of your response that identifies the information that should be protected and a redacted copy of your response that deletes such information. lf you request withholding of such material, you must specifically identify the portions of your response that you seek to have withheld and provide in detail the bases for your claim of withholding (e.9., explain why the disclosure of information will create an unwarranted invasion of personal privacy or provide the information required by 10 CFR 2.790(b) to support a request for withholding confidential commercial or financial information). lf safeguards information is necessary to provide an acceptable response, please provide the level of protection described in 10 CFR 73.21 . ln accordance with 10 CFR 19.1 1 , you may be required to post this Notice within two working days. Dated this 6th day of September 2000 ENCLOSURE 2 U.S. NUCLEAR REGULATORY COMMISSION REGION IV Docket No. 40-8681 License No. SUA-1358 Report No. 40-8681/00-01 Llcensee: lnternational Uranium (USA) Corp. Facility: White Mesa Mill Location: San Juan County, Utah Dates: July 24-27, 2000 lnspector(s): Louis C. Carson ll, Health Physicist Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Judith L. Walker, lnspector-ln-Training Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Accompanied by: R. William VonTill, Geotechnical Engineer Uranium Recovery Section Fuel Cycle Safety and SafegUards Phillip Ting, Branch Chief Fuel Cycle Licensing Branch Fuel Cycle Safety and Safeguards Approved by: D. Blair Spitzberg, Ph.D., Chief Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Attachment: Supplementary lnformation -2- EXECUTIVE SUMMARY White Mesa Mill NRC lnspection Report 40-8681 /99-01 This inspection included a review of site status, management organization and controls, site operations, radioactive waste management, radiation protection and environmental protection programs. Manaqement Orqanization and Controls . The licensee had maintained an organization structure that agreed with the requirements of the license (Section 2.0). . With one exception that is discussed in Section 3.2(f) of this report, the licensee had adequately implemented the pedormance-based conditions of the license (Section 2.0). . The licensee's review and use of site procedures were adequate with two exceptions that are discussed in Sections 3.2 (c) and (f) of this report (Section 2.0). Radiation Protection . The radiation protection program areas that were reviewed and found to be acceptable were facility posting and access control, personnel air sample analyses, and as low as reasonably achievable (ALARA) program reviews (Section 3.0). . Violations were identified in the radiation safety area for failure to follow procedures for compliance with instrument functional checks, radioactive material and contamination controls, and material and equipment free release surveys. Three cited violations and one non-cited violation were identified in these areas. An Unresolved ltem was identified concerning the controls for vanadium product (Section 3.0). Radioactive Waste Manaqement and Environmental Protection . Operational activities were being conducted safely and in accordance with the conditions of the license as well as NRC regulations (Section 4.0). o fl review of the licensee's onsite control of the alternate feed material demonstrated the licensee was maintaining control of the material in an orderly, controlled fashion (Section 4.0). . The licensee was noted to be collecting environmental monitoring samples as required by the license and as reported in the 1999 semi-annual effluent reports. All sample results were less than the associated effluent release limits specified in 10 CFR Part 20 during 1999. No adverse trends were identified (Section 4.0). -3- One open item remained open regarding a shipment of soil containing hazardous waste that had to be reclaimed and shipped (Section 5). 2.1 -4- Report Details Site Status The NRC issued Source Material License SUA-1358 to Energy Fuels Nuclear during August 1979. Ownership of the site was eventually transferred to Umetco Minerals, back to Energy Fuels Nuclear, and finally to lnternational Uranium (USA) Corporation (lUC). IUC assumed ownership of the White Mesa Mill on May 10, 1997. The NRC approved the transfer via Amendment 2 of the revised License SUA-I358. This amendment was issued to IUC on May 9, 1997. The millwas actively receiving alternate feed material during the inspection. Alternate feed material is material other than natural uranium ore. The licensee is authorized to receive and process alternate feed materials from certain out-of-state entities by License Conditions 10.6 through 10.13. The licensee is also receiving and processing bulk uranium ore from active mines through private contractors. Since the previous inspection, the licensee had processed vanadium from Colorado Plateau Ore and reprocessed old vanadium that had been stored at the site since 1988. The licensee had shipped 30 lots of vanadium product since the last inspection. Additionally, the licensee as authorized by License Condition 10.5 was disposing of 1 1e.(2) byproduct material waste. Management Organization and Controls (88005) lnspection Scope The organization structure was reviewed to ensure the licensee had maintained effective organization and management controls in place to ensure compliance with NRC requirements. Also, the utilization and implementation of the licensee's performance-based license (PBL) was reviewed. Observations and Findinqs Management Oroanization The organization structure requirements are provided in License Condition 9.3, which references the NRC-approved license renewal application dated January 30, 1997. The licensee had made no changes to the organization structure since the previous inspection. The licensee's organization structure was found to be in agreement with the intent of License Condition 9.3. 2.2 b. -5- Performance-Based License Review License Condition 9.4 states that the licensee may, under ceftain conditions and without prior NRC approval, make changes in the facility or processes, make changes to procedures, or conduct tests and experiments not presented in the license application. The licensee's implementation of the pedormance-based license provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a performance-based license during March 1997. Making changes pursuant to License Condition 9.4 are required to be reviewed by a safety and environmental review panel (SERP). Proposed changes and the deliberations are required to be documented pursuant to License Condition 9.4(D). On July 7, 2000, the licensee submitted its annual SERP report to the NRC pursuant to License Condition 9.4(D). During the licensee's SERP period (July 1 , 1999 - June 30, 2000), the licensee held six SERP meetings. The licensee has held three SERP meetings since the previous inspection. The inspectors reviewed the meeting minutes from SERP No. 00/01 and 02 dated July 21 and24,2000, and found them to be adequate. However, the licensee held a SERP meeting in December 1999, that resulted in a change to a procedure that is in the license application, and the SERP's decision was not documented in accordance with License Condition 9.4. This matter is further discussed in Section 3.2(f) of this report. Additionally, License Condition 9.4 states that the licensee's SERP shall function in accordance with the SOP submitted to the NRC on June 10, 1997. The inspector reviewed SOP No. PBL-1, "Safety and Environmental Review Panel," Revision 2, dated June 7, 1997, which implemented the PBL process. The inspectors did not identify any changes in the SOP as approved by the NRC. Based on review of the 1999 and the July 2000 SERP minutes, the inspectors determined that the SERP met the requirements of License Condition 9.4, with the exception that is discussed in Section 3.2(f) of this report. Site Procedures ln accordance with License Condition 9.6, SOPs are required to be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. The inspectors reviewed the health physics manual, SOPs for plant process operations, and the emergency response plan. The inspectors noted continual improvements in the quality of the licensee's procedures since 1994. The radiation safety officer (RSO) had been updating, reviewing, and approving procedures as required by License Condition 9.4. However, the inspectors identified an example where an established radiation protection SOP was not consistent with the procedure described in the license application. Additionally the inspectors identified an example where radiation protection staff was not following the established procedure. The specific examples of these inconsistencies are further discussed in Sections 3.2 (c) and (f) of this repofi. 2.3 Conclusions The licensee had maintained an organization structure that agreed with the requirements of the license. With one exception, the licensee had correctly implemented the pedormance- based conditions of the license. The licensee's review and use of site procedures were adequate with two exceptions that are discussed in Sections 3.2 (c) and (f) of this report. Radiation Protection (83822) lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the conditions of the license as well as the requirements of 10 CFR Part 20. Observations and Findinqs Site Tour A facility tour was performed to obserue activities in progress. Site perimeter postings, required by License Condition 9.9 were in place at the appropriate entrances to the mill. During the inspectors' site tour, radiation levels were measured using an NRC microRoentgen (pR) meter. The background radiation level offsite was 10-15 pR/hr. Surveys taken in various locations throughout the mill and around the ore pad showed the f ollowing radiation levels: . Sag Mill - 200 pR/hr. Ash Lot No. 133 - 500 pR/hr. Main Grizzly - 800 pR/hr. Pulp storage tank area - 2O0 pR/hr. Truck Wash/Decon Pad - 700 pR/hr. Ore pad near fenceline - 300 pR/hr. Truck checkout Point - 50 pR/hr. Cell2, 11e.(2) area - 60 pR/hr The inspectors' radiation measurements were consistent with the licensee's routine survey results. No "Radiation Areas" as defined by 10CFR20.1003 were identified within the process facility. The inspectors identified that the vanadium storage area had elevated radiation levels of 300-400 pR/hr. lt was determined that this area was part of the site restricted area and was adequately posted as required by License Condition 9.9. No health or safety concern was identified during the tour. As low As Reasonably Achievable Prooram Review ln accordance with License Condition 11.6, an annual as low as reasonably achievable (ALARA) audit of the radiation safety program is required to be performed in accordance with Regulatory Guide 8.31. The most current ALARA audit was conducted in 1999 and was found to have been adequate. Portions of the radiation safety officer's daily, weekly and monthly inspection reports were reviewed. These repofts were required by Section 3.6 of the ALARA Program section of the license application. The reports provided 3.1 3.2 b. (1) -7- useful information such as in-plant radiological sampling and survey results. No significant health or safety issue was identified. On June 14 and 16,2000, the licensee conducted ALARA Meetings. The inspectors reviewed the ALARA committee meeting minutes. The licensee's ALARA meeting covered several topics including the investigation of intermodal container management, vanadium circuit operations, reviewing and establishing SOPs, and assuring compliance with regulatory requirements. The inspector determined that the ALARA meeting minutes were adequate. I nstrument Calibrations Requirements License Condition 9.6 states, in paft, that standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. Additionally, written procedures shall be established for non-operational activities to include instrument calibrations. An up-to-date copy of each written procedure shall be kept in the mill area to which it applies. All written procedures for both operational and non-operational activities shall be reviewed and approved in writing by the radiation safety officer (RSO) before implementation and whenever a change in the procedure is proposed to ensure that proper radiation protection principles are being applied. The inspectors found that the licensee used several procedures for calibrating and conducting efficiency checks on instruments. Section 3.0 of the license application from January 1991 addresses the site's required radiation protection procedures for instrument calibrations. Section 3.0 of the license application had been duplicated as the established calibration SOP in the January 1991 , Radiation Protection Manual, Section 3, Appendix D. ln December 1998, Pages 29-31 of the health physics manual was drafted as the licensee's latest written SOP for calibrating and performing efficiency checks of alpha radiation detection instruments. The inspectors noted that the 1991 procedure identified the specific brands and models of radiation instruments used at the site. The 1998 SOP did not identify specific instrument brands; it was generically written for performing calibrations and efficiency checks on instrument types like alpha meters. The licensee also used the vendor manual to operate the instruments to provide guidance during calibrations and efficiency checks. The RSO explained that they were continuing to revise instrument calibration procedures. lnstrument Functional Checks Section 3.'1.2.3.2 of the licensee's procedure "Checks" required the following: "Checks are made for each detector using an appropriate calibrated source. Mounting a source a fixed repeatable distance from the detector, a reading is made. Comparison of the results with those obtained at the calibration is utilized to determine field performance. lf deviations exceeding 10 percent are noted, recalibration of the detector is required." (2) d. The inspectors reviewed the June and July 2000 alpha instrument efficiency check records. It was determined that the licensee did not compare the results of the instrument efficiency checks to the results of the instrument calibration. Therefore, the licensee had not been conducting alpha detector checks in accordance with the established procedure. This was identified as a violation of License Condition 9.6 for failure to follow established procedures for instrument calibrations (40-8681/0002-01 ). Additionally, the inspectors noted that the alpha detectors were calibrated with plutonium-239, but efficiency checked with a thorium-232 check source. The inspector observed the RSO perform a conventional efficiency check on an alpha detector. The inspectors noted that the apparent efficiency of the alpha detector using thorium-232 was 7-8 percent. The inspectors compared the 7-8 percent efficiency to the revised plutonium-239 calibration efficiency of 15-17 percent. The inspectors determined that the different instrument responses to thorium and plutonium illustrated the importance of assuring that the calibration efficiency check source was equivalent to calibration source. ln summary, the licensee had not been conducting alpha instrument functional checks in accordance with the approved SOP, which was a violation of License Condition 9.6. Air Samples Analyses License Condition 11.4 requires that on an annual basis, the licensee collects, during mill operations, 8 hours of air samples in routinely and frequently occupied areas of the mill. ln addition, with each change in millfeed material, the licensee must analyze millfeed or production product for natural uranium, thorium-23O, radium-226, and lead-210. The inspectors reviewed air sample results from January 1999 to March 2000. The RSO had collected annual 8-hour air samples for the Ashland-2 alternate feed material and for materials that were in storage that contained both uranium and vanadium. The RSO found that airborne thorium-230 concentrations were significantly higher from the Ashland-2 material than other feedstock such as the Colorado Plateau Ore. The RSO determined that operators who worked with the Ashland-2 material had to be assigned an additional 100 millirem dose for 1999 based on the 8-hour air sample results. The inspectors concluded that the licensee had met the requirements of License Condition 11.4. Contaminated Vanadium During site tours the inspectors conducted radiation surveys using an NRC calibrated microRoentgen meter. The inspectors noted that the offsite background levels measured 10-15 pR/hr. However, the inspectors found a fenced area of the owner controlled property that measured 300-400 pR/hr at the fence. The inspectors noted that blue S5-gallon drums were stored behind the fenced area. Based on the inspectors' inquiry about the contents of the barrels, the licensee revealed that the drums contained vanadium product that was contaminated with radioactive material. Vanadium is a constituent of some ores (Colorado Plateau Ore) and is present in the uranium recovery process raffinate as a dissolved solid. The licensee's vanadium process involves processing the uranium recovery raffinate through a solvent extraction process in order to precipitate and recover vanadium as a commercial product. This vanadium recovery process was designed to remove all radioactive material from the vanadium product. The RSO had notified IUC management that the vanadium was radioactively contaminated by a letter dated May 5, 2000. Although not required, the licensee did not inform the NRC of this situation. The inspectors surveyed the barrels containing vanadium and the contact radiation readings measured by the inspector were as follows: Lot 45 Drum No. 39 - 210 pR/hr Lot 45 Drum No. 22 - 2OO pR/hr Lot 44 Drum No. 45 - 100 pR/hr Lot 49 Drum No. 41 -1,600 pR/hr Lot 51 Drum No. 61 - 700 pR/hr Lot 51 Drum No. 34 - 7OO pR/hr Lot 52 Drum No. I -1,000 pR/hr Lot 52 Drum No. I -1,000 pR/hr The licensee's energy compensated Geiger-Mueller detector measured 1,500 pR/hr on contact at Drum No. 41. The inspectors' review of the licensee's May 5, 2000, letter from the RSO to the IUC president revealed the following: . Each vanadium lot consisted of 66 barrels. . Lots 34-52 were ready for shipment when a buyer was found. . Lots 34-52 had total uranium concentrations between 32-850 picocuries/gram (pci/g) and total thorium concentrations between 232-1462 pCilg. The licensee's course of action regarding the contaminated vanadium product was to blend the higher contaminated lots of vanadium with the lower contaminated lots. This strategy was in order to get the amount of source material in each lot below the 0.05 percent by weight "Unimpoftant Quantities" limit from 10CFR40.13. According to the licensee, they had not determined a root cause for the vanadium product lots being contaminated. However, they believed the problem was due to a possible failure in the process circuit and that they had reprocessed contaminated vanadium that had been stored since 1988. The inspeitors noted however that Section 3.9 of the July 1991 license application "Byproduct Vanadium Recovery," states that the vanadium is not radioactive. ln addition, Section 3.2.2.2 of the White Mesa Environmental Statement Report, "Byproduct Vanadium Recovery''states that less than 0.005 percent UrOrwill be contained in the vanadium product. The inspectors noted that radioactive material labels had not been placed on the vanadium barrels that were in the storage area. Additionally, the inspectors noted that Lots 1-33 had been shipped as non-radioactive material. The inspectors noted that the licensee's vanadium shipping records routinely included a non-radiological analyses of the constituents that were in the vanadium product. However, the licensee did not routinely perform radioisotopic analyses on the vanadium product, and they had no requirement to conduct such analyses. The licensee provided vanadium shipment records from the previous shipments that occurred in 1988. The radiation suruey records for these releases of the product measured 300-1100 dpm/100cm2 fixed contamination and 0.1 millirem/hour. f. (1) 10- The inspectors determined that this matter would be considered an Unresolved ltem (URl) pending further review by the NRC. An Unresolved ltem is a matter about which the NRC needs additional information in order to asceftain whether the issue in question is an acceptable item, a deviation, a nonconformance, or a violation (40-8681/0001-02). Meanwhile, the IUC president committed that White Mesa would not release and ship the contaminated vanadium product that was in storage until this URI is resolved. The inspectors also found the licensee had decided that Section 2.7 ol license application "Product Shipment Surveys" and SOP 2.7.5, "Procedures - Uranium & Vanadium Concentrates Shipments," were no longer applicable to vanadium product shipments. The inspectors questioned whether this change degraded licensee safety conimitments as specified in the license application Section 2.7. Llcense Condition 9.4 allows the licensee, without prior NRC approval, to make changes in procedures presented in the application if there is no degradation in the essential safety or environmental commitments. The licensee's SERP did not document the reason for the change. This aspect is further detailed in Section 3.2.t(2) of this repoft. However, the licensee's decision to drop vanadium product surveys as a license requirement is considered part of the URI pending resolution of the question of jurisdiction over the contaminated vanadium product. Release Surveys for Equipment and Packages Release Survey Requirements License Condition 9.10 requires that releases of equipment or packages from the restricted area shall be in accordance with "Guidelines for Decontamination of Facilities and Equipment Prior to Release for Unrestricted Use of Termination of Licenses for Byproduct, Source, or Special Nuclear Material," dated May 1987, or suitable alternative procedures approved by the NRC prior to any such release. Section 2.7 of the January 1991 license application "Product Shipment Surveys," states, in part, that product shipments from the facility will be monitored by the radiation protection department prior to shipment release. Section 2.7 of the license application requires that all barrels are fixed alpha and gamma scanned; inspected for leaks, holes, and cleanliness; and the inspection is documented. Additionally, Section 2.7.4 provides detailed procedural steps to be followed when surveying the product drums for release. Reduction in Product Drum Surveys ln December 1998, the licensee determined that the procedure in License Application Section 2.7 "Product Shipment Surveys," did not apply to vanadium product shipments and therefore, the licensee stopped perforrning fixed alpha and gamma scan surueys and inspections on all barrels as specified in Section 2.7 of the license application. Additionally, the licensee's SERP did not maintain a record of this change with a written safety and environmental evaluation that provided the basis for determining that the change was in compliance with the requirements referred to in License Condition 9.4(B). The inspectors' review of vanadium shipment records of Lots 1-33 from March-June 2000 confirmed that the licensee was no longer conducting radiological surveys in accordance with the instructions in Section 2.7 of the license application. (2) (3) 11- Further discussions with the RSO and corporate management revealed that it was decided in either a December 1998 ALARA or SERP meeting that the survey requirements for product shipments did not apply to vanadium product shipments and therefore, these surveys were no longer performed. At the time of this inspection, the licensee could not provide the inspectors with the December 1998 ALARA Committee or SERP minutes. License Condition 9.4 states, in part, that the licensee may, subject to the conditions specified in this condition make changes in procedures presented in the application. The licensee shallfile an application for an amendment to the license, unless the following conditions are satisfied: There is no degradation in the essential safety or environmental commitments in the license application. The licensee shall maintain records of any changes made pursuant to this condition until license termination. These records shall include written safety and environmental evaluations, made by the safety, environmental, and review panel. These records shall include written safety and environmental evaluations made by the SERP that provide the basis for determining that changes are in compliance with the requirements referred to in Part B of this condition. ln summary, in December 1998 the licensee changed the requirements of Section 2.7 ol lhe license application for conducting radiological surveys on vanadium product shipments. However, the licensee did not maintain records of the safety evaluation made by the SERP for determining that the change was in compliance with the performance-based license. This was a violation of License Condition 9.4 (40-8681/0002-03). Contaminated Drums of Vanadium Released Offsite The licensee's equipment and material release limits are found in the White Mesa "Equipment Release/Radiological Survey Procedure," which incorporates the "Guidelines for Decontamination of Facilities and Equipment Prior to Release for Unrestricted Use of Termination of Licenses for Byproduct, Source, or Special Nuclear Material," (Guidelines) dated May 1987. Table 1 of the Guidelines "Acceptable Surface Contamination Levels" for natural uranium contamination has a release limit of 5,000 dpm/l00cm2 average fixed contamination and 1000 dpm/100cm2 removable contamination. The Guidelines specifies release limits for thorium-230 and radium-226 which are 100 dpm/l00cm2 average fixed contamination and 20 dpmil00cm2 removable contamination. Natural uranium, thorium-230, and radium-226 are part of the White Mesa site's radiological profile. Additionally, the Guidelines states, in part, that the average and maximum radiation levels associated with surface contamination resulting from beta-gamma emitters should not exceed 0.2 millirad/hour at 1 centimeter for beta radiation and 1.0 millirad/hour at 1 centimeter for gamma radiation. The inspectors reviewed release survey records of vanadium product that had been released out of the restricted area since March 2000. The inspectors reviewed vanadium shipment records associated with 33 lots. One lot normally consisted of 66 barrels (drums) that weighed on average 550 pounds. The inspectors' review of the other vanadium lots that were shipped revealed that some barrels were released with measured contamination levels of more than 1,000 dpm/100cm2. However, the RSO stated that the barrels had been washed off before leaving the site in accordance with the SOP. The inspectors examined g. the shipping records associated with Lot Nos.7 and 9 that were shipped on March 17 and April 1 4, 2000, respectively. Records indicated that barrel Nos. 32 and 44 in Lot No. 7 had measured radiation readings of 0.16 and 0.2 millirem/hour, respectively. Likewise, the licensee's records indicated that Barrels 32 and 44 had total contamination levels of 1 ,600 and 2,000 dpm/100cm2. Records indicated that barrel No. 37 in Lot No. t had measured radiation reading of O.12 millirem/hour. Likewise, the licensee's records indicated that Barrel No. 37 had total contamination level of 1,200. Additionally, there were four other barrels that measured fixed contamination at 1,000 dpm/l00cm2. Sections B(1, 3, and 5) of the SOP "Determination of External Contamination of Product Drums," dated December 1998, required, in paft, that product drums must be swiped with filter paper discs to determine if they are externally contaminated. The filter swipe must be counted via standard gross alpha counting techniques. The results of the contamination surveys for each drum must be logged onto the drum contamination report. The inspectors fufther noted that the drum contamination repofts stated that if total alpha contamination is greater than or equal to 1000 dpm/100cm2, a removable smear is required. Section 2.7.5.(3) and (4) of the SOP "Procedures - Uranium & Vanadium Concentration Shipments" required, in part, that the licensee to perform removable alpha contamination (smear/swipe) surveys on any barrel that exceeds 1 ,000 disintegrations per minute per 100 square centimeters (dpm/1 00cm2) fixed alpha contamination. However, on March 17 and April 14, 2000, three barrels containing vanadium product were released from the site restricted area that exceeded 1 ,000 dpm/100cm2 fixed contamination, and the licensee did not conduct fixed or removable alpha contamination (smear/swipe) surveys on the barrels. The three barrels surveyed had contamination levels of 1,200, 1,600, and 2,000 dpm/100cm2. However, the licensee had not determined if the contamination was from alpha radioactivity The inspectors determined that the licensee's failure to conduct required fixed or removable alpha contamination release surueys on the barrels from Lots 7 and 9 was a violation of License Condition 9.10 (40-8681/0002-04). lntermodal Container Releases During the period from January 2lo April 18, 2000, the licensee had determined that 17 intermodal containers had been released from the White Mesa facility with external radiation contamination in excess of Department of Transportation (DOT) limits. The licensee repofted this finding to the NRC on March 1, 2000. The licensee conducted an extensive investigation of the circumstances surrounding the release of the contaminated containers. The licensee had implemented short and long term corrective actions associated with this matter. The inspectors reviewed the following licensee investigation reports and corrective actions concerning the inadvertent intermodal container releases: . lnvestigation Report of lntermodal Container Management at the lnternational Uranium Corporation White Mesa Mill, May 26,2000. . SERP No. 00/01-02: Meeting Minutes, July 21 and 24,2000. . ALARA Committee Meeting Minutes, June 14 and 16,2000. . SOP: "lntermodal Container Acceptance, Handling, and Release," July 27,2000. 13- The licensee found that out of approximately 6,000 intermodal containers released from the site, 17 were found to have been contaminated with radioactive materialfrom the White Mesa site in excess of the DOT shipping limit of 22,0OO dpm/100cm2. A review the survey data revealed that contaminated containers measured between 2,31 5-37,791 dpm/100cm2. The inspectors determined that these contamination levels did not represent a significant safety potential to members of the public because the containers were empty and in transit during most of the time they were in the public domain. The licensee determined that the cause of the inadvertent releases were as follows: . Failure to adhere to the general SOP for equipment releases and failure to establish an SOP that was specific to intermodal container releases. . Wet radioactive materialfrom within the site restricted area splattered on the underside of the container and would not be decontaminated. . The amount of traffic accessing the restricted area had increased the probability of releasing contaminated containers. The licensee's corrective actions included the following: . On July 24,2000, the licensee implemented a new SOP "lntermodal Container Acceptance, Handling, and Release." . Truck routes on the site were modified. Trucks that transport feed material to White Mesa have limited site access, if any, to the restricted area. Most trucks have access to the owner controlled area where the trailer or intermodal container of material is disconnected and transferred to the licensee's truck. The licensee's staff now unloads the contents of the container at the ore pad. . The licensee instituted new intermodal trailer/container washing and decontamination procedu res. lnspectors observed the licensee's implementation of the new intermodal container SOP. Licensee personnel were observed satisfactorily conducting contamination surveys on both the intermodal containers and licensee vehicles that were exiting the restricted area. ln a letter dated June 22,2000, the licensee stated that during a telephone call with the NRC project manager regarding the intermodal container issue, that they concluded that they failed to implement their SOP for releasing intermodal containers for restricted use. Failure to implement the SOP for releasing intermodal containers for restricted use was a violation of License Conditions 9.6 and 9.10. The inspectors determined that the licensee had satisfactorily implemented corrective actions, and the contamination levels that were detected on the containers had a low safety consequence to members of the public. This matter was considered non-repetitive, licensee-identified and corrected. Therefore, this violation is being treated as a non-cited violation, consistent with Section Vl.A(8) of the NRC Enforcement Policy (NCV: 40-8681/0001 -05). -14- 3.3 Conclusions The radiation protection program areas that were reviewed and found to be acceptable were facility posting, personnel air sample analyses, and ALARA program reviews. Violations were identified in the radiation safety area for failure to follow procedures for instrument calibrations and functional checks, radioactive material and contamination controls, and material and equipment free release surveys. Three cited violations and one non-cited violation were identified in these areas. An Unresolved ltem was identified concerning controls for vanadium product. 4 Radioactive Waste Management (88035) and Environmental Monitoring (88045) 4.1 lnspection Scope The environmental, effluent and groundwater monitoring programs were reviewed to assess the effectiveness of the licensee's programs and to evaluate the effects, if any, of site activities on the local environment. 4.2 Observations and Findings a. Site Operations The licensee was not processing alternate feed material or uranium ore during this inspection. Conventional uranium ore operations occurred from April-October 1999. From November-December 1999, the licensee had processed Colorado Plateau Ore that contained both uranium and vanadium, and the licensee also reprocessed vanadium that had been storage since 1989. ln accordance with License Conditions 10.6 and 10.7, IUC is authorized to process alternate feed materialfrom Allied Signal. This material, referred to as "CaF'(calcium fluoride), had been stockpiled for future processing. ln accordance with License Conditions 10.1 0, 10.1 1 , 10.12, and 1 0.13, the licensee was receiving bulk alternate feed materials in soil form from the Ashland Formerly Utilized Sites Remedial Action Program near Tonowanda, New York, and drummed calcined byproduct materials from Cameco Corporation's Blind River and Port Hope facilities in Ontario, Canada. License Condition 10.5 authorizes the licensee to dispose of 1 1e.(2) byproduct material generated at licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. The inspectors specifically reviewed the licensee's implementation of License Condition Nos 10.5, 10.10, 10.11 ,10.12, and 10.'13 in the areas of airborne contamination, radiation safety, and vehicle scanning. The inspectors found that the licensee had been receiving and processing the alternate feed material and disposing of the 1 1e.(2) materials in accordance with the detail of the applicable license amendment request commitments. b. 15- Environmental and Effluent Monitorinq Proqrams Environmental monitoring program requirements are identified in License Condition 11.2, which specifies that the licensee implement the effluent and environmental monitoring programs specified in Section 5.5 of the renewal application. During the inspection, the inspectors reviewed the semi-annual effluent report for the second half of 1999. The first half of 2000 had not been issued, however, the raw data was reviewed for consistency. The licensee's environmental monitoring program consisted of continuous air, groundwater, sudace water, and vegetation, as well as ambient gamma exposure rate measurements. The licensee collected the required samples at the five sampling stations, including a nearest resident and a background location. Environmental Air Sampling Particulate air sampling was performed at four stations using continuous high volume samplers. The background sampling station (BHV-3) was taken down due to vandalism. The sample filters were exchanged weekly and analyzed quaderly for natural uranium, radium-226, thorium-230, and lead-210 concentrations. All sample results for July 1999-December 1999 were 6.4 percent or less of the concentrations specified in 10 CFR Part 20, Appendix B. No adverse trends were identified. Environmental Exposure Rates Ambient gamma radiation levels were continuously measured at the five sample stations with thermoluminescent dosimeters (TLDs). The TLDs were exchanged and analyzed on a quaderly basis. The sample results varied from 9.7 pR/hr at the background station to 11.1 pR/hr at an onsite sample station (East Tailings Area) for 1999. Ambient gamma exposure rates were found to be below the limits established in 10 CFR 20.1301. A review of TLD data revealed that each TLD location was less than 12 pRlhr. The average dose rate offsite was determined to be 10-15 pR/hr by surveys, which was comparable to the readings at each TLD location. The licensee reported each TLD location as background corrected. Vegetation Vegetation samples were collected at three locations around the mill during early spring, late spring, and fall. The samples were analyzed for radium-226 andlead-210 concentrations. Sample results for the second half of 1999 were comparable to those taken in the first half of 1999, with no obseruable adverse trends. Surface Water Sampling ln accordance with Section 5.5 of the license application, surface water samples are required to be obtained from two locations. Water samples (or sediment samples if the streams are dry) are to be obtained annually from Westwater Creek and quarterly from Cottonwood Creek. The samples were analyzed for their natural uranium, radium-226, and thorium-230 concentrations, as well as their quantity of total dissolved solids. The natural uranium concentration was 2.2 percent of the concentration specified in Appendix B to 10 CFR Part 20. c. d. t. -16- g.Groundwater Detection Monitoring Proqram License Condition 11.3(A) requires the licensee to implement a groundwater detection monitoring program. The licensee's internal procedure entitled "Groundwater Monitoring Plan and Standard Operating Procedures," revised May 1g9g, was reviewed along withrecords since the last inspection. Staff involved in groundwater sampling were interuiewed. It was determined that the licensee was following proper procedures in this area. Tailinqs Cell Leak Detection Proqram License Condition 11.S(B-E) requires the licensee to implement a monitoring program of theleak detection systems for the disposal cells. The licensee's procedures toitaitings management, training and quality assurance were reviewed. The inspector toured the cell area with mill staff responsible for leak detection system field monitoring and observed demonstrations of field protocol. Based on observations of mill staff and the review ofrecords, it was determined that the licensee was properly implementing License Condition 11.3. Radioactive Waste Receipts and Disposal lnspections The licensee is required to submit an annual summary to the NRC of wastes disposed offrom offsite generators in accordance with Condition io.s.o. The licensee's most currentannual summary dated February 17, 2O0O, was reviewed. During 1ggg, the licensee received 57 shipments of 1 1e.(2) byproduct waste for disposal from three individual wastegenerators. Seven shipments of 1 1e.(2) waste had been received from offsite generators in2000. Shipments of 11e.(2) waste were found to have been conducted within the limits ofthe license. A review of the licensee's four disposal cells was conducted. Cells 1 and 3 were actively being used for process solution evaporation and recycling, with Cell 3 also used for dispbsal of tailings generated onsite and wastes generated offsite (as authorized in License Condition 10.5). Cell 2 was being used for disposal of solid wastes generated onsite, and was covered as the cell was filled. Any liquid recovered from Cell 2 operations was transferred to Cell 3. Since Cell 4 was not in service during the inspection, receiving onlyprecipitation. Cell 4 had multiple tears and channels in the liner system, the licensee statedthat Cell 4 would not be used until the liner is replaced. No abnormal conditions, such asleaks or berm failures were observed at any of the other cells during the site tour. Conclusions Operational activities were being conducted safely and in accordance with the conditions of the license as well as NRC regulations. A review of the licensee's onsite control of the alternate feed material demonstrated the licensee was maintaining control of the radioactive waste shipments in an orderly, controlled fashion. The licensee was noted to be collecting all environmental monitoring samples required by the license at the interuals specified in the license, as reported in the 1999 semi-annual effluent reports. All sample results were less than the associated effluent release limits specified in 10 CFR Parl2O during 1999. No adverse trends were identified. h. i. 4.4 5.1 -17- Followup (92701) (Qpen) lFl 40-8681/9903: Receipt of Hazardous Waste Material at the White Mesa Mill On October 26,1999, the licensee inadvertently received and accepted a shipment of potentially hazardous waste material from the Massachusetts Highway Department Central Artery Tunnel project. On the basis of a single analyzed sample, the material contained lead, a hazardous waste. The result of the sample showed a lead concentration of 5.75 milligrams per liter (mg/l) which was above the criteria of 5.0 mg/l for classifying the material as hazardous waste. The lead contaminant most likely originated from automotive exhaust particles that had settled into the soil prior to excavation. The waste material was erroneously shipped to the site primarily because of a duplication in shipping container numbers. Several programmatic weaknesses helped contribute to the problem including poor control of shipping manifests and use of generic versus specific ore receipt inspection procedures. The licensee's random sampling program would not have identified the wastes because the hazardous constituent (lead) was not one of the constituents that the licensee tested for incoming material. Finally, the shipment of the material was determined not to be under the jurisdiction of the NRC. An NRC lnspection Followup ltem (lFl) was opened to ensure the licensee resolves the mixed waste concerns, disposes of the waste material, and implements corrective actions to prevent recurrence of the incident. The inspectors obserued that the licensee had completely excavated the hazardous material and stored the hazardous material in an intermodal container. The licensee was expecting the intermodal container to be shipped in August 2000. This matter will remain open untilthe waste material is removed from the site. On July 24,2000, the licensee established a new SOP "lntermodal Container Acceptance, Handling, and Release," to preclude the recurrence of this type of situation. The inspectors noted that the licensee had improved the process for verifying shipment manifests. Exit Meeting Summary The inspectors presented the preliminary inspection results to the representatives of the licensee at the conclusion of the inspection on July 27,2OOO. A telephonic exit briefing was held on August 22,2OO0, to discuss the results of the inspection as presented in this report. Licensee representatives acknowledged the findings as presented. The licensee did not identify any information reviewed by the inspector as propriety information. 6 a AfiACHMENT PARTIAL LIST OF PERSONS CONTACTED Licensee R. Hochstein, President R. Berg, Radiation Safety Officer W. Deal, Mill Manager M. Rehmann, Environmental Manager INSPECTION PROCEDURES USED 83822 Radiation Protection88005 Management Organization and Controls88035 Radioactive Waste Management88045 Environmental Monitoring92701 Followup ITEMS OPENED, CLOSED AND DISCUSSED Ooened 40-8681/0001-01 VIO Failure to follow procedures for alpha detector functional checks (License Condition 9.6). 40-8681/0001-02 URI NRC determination on whether radioactively contaminated vanadium is a byproduct material or is it an Unimpofiant Quantity pursuant to10 cFR 40.13. 40-8681/0001-03 VIO Failure to follow the PBL and utilized the SERP to change the procedure in the license application for uranium and vanadium product surveys (License Condition 9.4). 40-8681/0001-04 VIO Failure to conduct free release surveys on vanadium product shipments as required by the license (License Condition 9.10). 40-8681/0001-05 NCV Failure to follow procedures for surveying equipment such as intermodal containers for unrestricted release. (License Condition 9.6) Closed none Discussed 40-8681/9903 lFl Receipt of hazardous was at the White Mesa Site ALARA CaF CFR cpm DOT dpm IN IUC mg/l pR/hr PBL pCi/g PDR RSO SERP SOP TLD URI LIST OF ACRONYMS USED as low as reasonably achievable calcium fluoride Code of Federal Regulations counts per minute Department of Transpoftation disintegrations per minute lnformation Notice lnternational Uranium Corporation milligrams per liter microRoentgen/hour Performance Based License picocuries/gram Public Document Room Radiation Safety Officer Safety and Environmental Review Panel Standard Operating Procedure thermol uminescent dosimeters Unresolved ltem UNITED STATES NUCLEAR REGULATORY COMMISSION REGION tV 611 RYAN PLAZA DRIVE, SUITE 4OO ARLINGTON, TEXAS 7601 1{064 August L7, 1999 Harold R. Roberts, Executive Vice-President !nternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, Cotorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681/99-02 Dear Mr. Roberts: On July 29, 1999, the NRC completed an inspeotion at your White Mesa Mill near Blanding, Utah. The inspection consisted of selective examinations of procedures and representative records, interviews with personnel, and obseruations of activities in progress. The inspection findings were presented to you and members of your staff at the conclusion of the onsite inspection. The enclosed report presents the results of that inspection. Overall, the inspection determined that you have continued to operate the uranium production facility in a safe and effective manner. Based on the results of this inspection, no violations or deviations were identified; therefore, no response to this letter is required. ln accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter, its enclosures, and your response, if any, will be placed in the NRC Public Document Room (PDR). Should you have any questions concerning this inspection, please contact Mr. Douglas Simpkins at (817) 860-8220 or myself at (817) 860-8191 . Fuel Cycle and Decommissioning Branch Docket No.: 40-8681 License No.: SUA-1358 Enclosure: NRC !nspection Report 40-8681/99-02 \ 6ouoh flk*t-)p" '$-ffi*-R &, QQ". nrr/ D. Blair Spitzberg, Chief lnternational Uranium (USA) Corporation -2- White Mesa Mill cc Menclosure: Ms. Michelle Rehmann lnternational Uranium (USA) Corp. Independence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Mr. William Deal, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 1Ar. William J. Sinclair, Director State of Utah Department of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake city, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & lntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 ENCLOSURE U.S. NUCLEAR REGULATORY COMMISSION REGION IV Docket No. 40-8681 License No. SUA-1358 Report No. 40-8681/99-02 Licensee: lnternational Uranium (USA) Corp. Facility: White Mesa Mill Location: San Juan County, Utah Dates: July 28-29, 1999 lnspector: Douglas S. Simpkins, Health Physicist Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Accompanied By: Randolph W. Von Till, Project Manager Uranium Recovery and Low LevelWaste Branch Division of Waste Management Approved By: D. Blair Spitzberg, Ph.D., Chief Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Attachment: Supplementary lnformation -2- EXECUT]VE SUMMARY White Mesa Mill NRC lnspection Report 40-8681/99-02 This inspection included a review of site status, management organization and controls, site operations, radioactive waste management, radiation protection and environmental protection programs. Overall, the licensee was operating the facility in a safe and effective manner. Manaoement Orqanization and Controls . The licensee's organizational structure was in agreement with the license requirements, and adequate oversight had been provided for site activities (Section 2.2). . The licensee had correctly implemented the requirements of its performance-based license (Section 2.3). Radioactive Waste Manaqem enVOSHA ! nterf ace Activities . Operational activities were being conducted safely and in accordance with the conditions of the license and NRC regulations (Section 3.2). o I review of the licensee's onsite control of the alternate feed material demonstrated the licensee was maintaining control of the incoming alternate feed material in an orderly, controlled fashion. Several examples of OSHA health and safety findings were brought to the attention of the Safety Officer and management (Section 3.3). Radiation Protection . The radiation protection program areas reviewed were found to be acceptable, including audit program review, decommissioning recordkeeping, radiation and contamination surveys, bioassay and'respiratory protection activities (Sections 4.2-4.6). Environmental Protection . The licensee was noted to be collecting all environmental monitoring samples required by the license at the intervals specified in the license, as reported in the first half of 1999 semiannual effluent report. All sample results were less than the associated effluent release limits specified in 10 CFR Part 20 during the tirst half of 1999. When the 1999 sample results were compared to those from 1998, no adverse trends were identified (Sections 5.2-3). 2 2.1 -3- Reoort Details Site Status The NRC issued Source Material License No. SUA-1358 to Energy Fuels Nuclear during August 1979. Ownership of the site was eventually transferred to Umetco Minerals, back to Energy Fuels Nuclear, and finally to !nternational Uranium (USA) Corporation (lUC). IUC assumed ownership of the White Mesa Mill on May 10, 1997. The NRC approved the transfer via Amendment No. 2 of the revised License No. SUA-I358. This amendment was issued to IUC on May 9, 1997. The millwas actively processing alternate feed materialduring the inspection. (Alternate feed material is material other than natural uranium ore.) The licensee is authorized to receive and process alternate feed materials from four out-of-state firms by License Conditions 10.6 through 10.13. ln accordance with License Conditions 10.6 and 10.7, lUC is authorized to process alternate feed materialfrom Allied Signal. This material, referred to as "CaF (calcium fluoride), is being processed as alternate feed. ln accordance with License Conditions 10.10, 10.11 and 10.13, the licensee is receiving bulk alternate feed nlaterials in soilform from the Ashland 2 Formerly Utilized Sites Remedial Action Program near Tonowanda, New York. Only fingerprint analysis of the Ashland 2 material is being conducted in preparation for future processing. The licensee is also receiving and processing bulk uranium ore from active mines through private contractors. The licensee was conducting yellowcake and vanadium drying and packaging operations. To date, approximately 160,000 pounds of yellowcake had been produced for the year, but none had been shipped offsite. An additional 60-70 thousand pounds of yellowcake are in the process tanks. The licensee currently employs 101 individuals, with 6 additional employee vacancies. Management Organization and Controls (88005) lnspection Scope The organizational structure was reviewed to ensure the licensee had established an effective organization with defined responsibilities and functions and appropriate controls were in place to ensure compliance with NRC requirements. Also, the - utilization and implementation of the licensee's pedormance-based license was reviewed. Manaqement Oroanization The organizational structure requirements are provided in License Condition 9.3, which references the NRC-approved license renewalapplication dated January 30, 1997. The licensee had made no changes to the structure since the previous inspection. 2.2 2.3 -4- ln summary, the licensee's organizational structure was in agreement with License Condition 9.3. Perf ormance-Based License Review The NRC granted the licensee a performance-based license during March 1997. License Condition 9.4 states that the licensee may, under certain conditions and without prior NRC approval, make changes in the facility or processes, make changes to procedures, or conduct tests and experiments not presented in the license application. The licensee's implementation of the performance-based license provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The licensee's determinations under License Condition 9.4 are required to be made by a Safety and Environmental Review Panel (SERP). No SERP reviews had been conducted since the previous inspection. Site Procedures ln accordance with License Condition 9.6, standard operating procedures (SOPs) are required to be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. During the inspection, the inspector observed operating procedures being properly implemented. Conclusions The licensee had established an organizational structure that agreed with the requirements of the license. Also, the licensee had correctly implemented the performance-based conditions of the license. Standard operating procedures were correctly implemented. Radioactive Waste Management (88035) OSHA lnterface Activities (93001) lnspection Scope The objective of this portion of the inspection was to verify site activities were being conducted in accordance with applicable regulations and the conditions of the license, and to ensure operational controls were adequate to protect the health and safety of the workers and the members of the general public. Site Operations A facility tour was performed to obserye activities in progress. Site perimeter postings, required by License Condition 9.9, were in place at all entrances to the site. Several OSHA health and safety concerns were identified during the tour and relayed to the onsite Safety Officer and management: 2.4 2.5 3.1 3.2 3.3 -5- . Although posted appropriately as a high noise area with hearing protection required, at least two workers were observed to be in designated high noise areas without hearing protection. . Auger guards at the exit stage of the vanadium filter presses had been removed for maintenance. However, no compensatory measures were in place to minimize risk to personnel (e.9., actual workers, barriers, signs, etc.) . Several hot pieces of machinery were observed, without appropriate hazard warning signs or barriers. . An oven used to melt vanadium for processing had an approximate 2 foot flame shooting out of a vent on one end at head height with no barriers or warning mechanisms. . Approximately one-half of the fire extinguishers had been last checked in May 1999, even though the safety program required monthly checks. o fl liquid process tank was dramatically overflowing in the process circuit, creating a 6-S" flooding condition. Several electricalwires were dangling into the liquid, creating a potential electrical hazard. A review of the licensee's four disposal cells was conducted. Cells 1 and 3 were actively being used for process solution evaporation and recycling, with Cell 3 also used for disposal of tailings generated onsite and wastes generated offsite (as authorized in License Condition 10.5). Cell 2 was being used for disposal of solid wastes generated onsite, and was covered as the cellwas filled. Any liquid recovered from Cell 2 operations was transferred to Cell 3. Finally, Cell 4 was not in service during the inspection, receiving only precipitation. Since the cell had multiple tears and channels in the liner system, the licensee stated that Cell4 would not be used untilthe liner is replaced or repaired. No abnormal conditions, such as leaks or berm failures, were observed at any of the cells during the site tour. An inspection of all four cells was performed by the radiation safety technicians. Conclusions The licensee was maintaining control of site operations in accordance with the conditions of the license and NRC regulations. Although several OSHA health and safety issues were identified, both the Safety Officer and management committed to increased attention to these safety concerns. 4.1 4.2 -6- Radiation Protection (83822) lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the conditions of the license as wellas the requirements of 10 CFR Part 20. Audit Program Review The radiation safety officer's monthly reports were reviewed. These reports are required by Section 3.6.3, "Monthly Reviews," of the ALARA Program section of the license application. The reports provided useful information such as in-plant radiological sampling and survey results. Finally, the licensee's weekly inspection reports were reviewed. These reports are required by Section 3.6.2, 'Weekly lnspections," of the license application. No significant health or safety issue was identified. Decom missioninq Recordkeepinq ln accordance with 10 CFR Part 40.36(f)(1), records are required to be permanently maintained, including a description of the restricted area, spills, and any unusual events. The licensee was noted to be maintaining these records in onsite files, specifically the "Spill Containment and Countermeasures Plan and Reports" file. Licensee representatives stated that they had not added any new information to this file since 1 995. The licensee was operating in compliance with the recordkeeping requirements of 10 CFR Part 40.36. Bioassay Proqram Review License Condition 9.6 requires written procedures for a bioassay program. The licensee had maintained extensive records related to bioassay sampling. During 1999, bioassay samples were obtained from site workers at the appropriate frequency and analyzed by the onsite laboratory, including blank and spiked samples for quality control purposes. At least ten percent of the samples were split and sent to an offsite laboratory forquality assurance purposes. No verified sample result exceeded the lowest action level of 15 micrograms of natural uranium per liter of urine. The sample results for 1999 were compared to 1998 sample results. No individual exceeded the action level during these years, suggesting that the licensee was effectively controlling intake of radioactive materials through the use of respirators, control of the radioactive materials and engineering controls. 4.3 4.4 -7- 4.5 Respiratory Protection The respiratory protection program was reviewed during the inspection. Respirators were maintained in the control room area with smoke tubes to assure proper fit when donning. Plant personnelwere interviewed and demonstrated appropriate knowledge of respiratory protection equipment usage. Since the previous inspection, the licensee had revised procedures for establishing airborne radiation areas, establishing consistency for respiratory requirements. However, airborne radiation area signs were incorrectly posted on a set of external entrance doors to the mill. The licensee stated the signs would be removed. Radiation and Contamination Surveys Radiation and contamination surveys were reviewed, including breathing zone, alpha, beta-gamma, radon and personnelcontamination as required by the license and NRC requirements. Surueys had been conducted as required. Although extensive surueys were conducted, no levels exceeding regulatory limits were found. Conclusions Radiation protection program areas reviewed and found acceptable included audit program review, recordkeeping of decommissioning activities, bioassay, radiation and contamination surueys and respiratory protection programs. Environmental Monitoring (88045) !nspection Scope The environmental monitoring program was reviewed to assess the effectiveness of the licensee's program and to evaluate the effects of site activities on the local environment. Environmental Monitoring Program Review License Condition 11.2 states, in part, that the licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewalapplication. Also, the results of the environmental monitoring program are required to be submitted to NRC on a semiannuat basis in accordance with License Condition 11.3.C. The semiannual effluent report for the second half of 1998 was reviewed. The 1998 sample results were compared to those from 1997 to ascertain whether any adverse trends existed. Air Particulate Samplinq The licensee collected particulate air samples at four locations around the site. (The operation of the air sampler at the background station was discontinued by the licensee with NRC approvalseveralyears ago.) The sample filters are required to be changed 4.6 4.6 5 5.1 5.2 a. b. -8- weekly, composited quarterly, and analyzed for their natural uranium, radium-226, thorium-23O, and lead-210 quantities. The sample results, all appropriately sampled as required by the license and NRC regulations, were less than 3 percent of the respective 10 CFR Part 20, Appendix B, effluent concentration limits. Also, the laboratory's lower limit of detection was equal to or better than the limits specified in License Condition 11.2.D. The 1998 sample results were compared to those from 1997. Overall, the 1998 sample results were down from the previous year. Therefore, no adverse trends were noted in this area of the environmental monitoring program. Ambient External Gamma Exposures Environmental gamma thermoluminescent dosimeters (TLDs) were located at all five sample stations. The TLDs were changed out and analyzed on a quarterly basis. The site perimeter sample stations measured an ambient gamma exposure that was comparable to the background value. Historically, the difference between the site stations and background rarely exceeded 10 millirems per quarter. The sample results for 1999 were comparable to those from 1998 and no adverse trend was observed. Surface Water Samples !n accordance with Section 5.5 of the license application, surface water samples are required to be obtained from two locations. Water samples (or sediment samples if the streams are dry) are to be obtained annually from Westwater Creek and quarterly from Cottonwood Creek. The samples were analyzed for their natural uranium, radium-226, and thorium-230 concentrations, as well as for the quantity of total dissolved and suspended solids. Sample results were less than 2 percent of the natural uranium effluent concentration limit specified in Appendix B of Part 20. Also, the 1999 sample results were noted to be comparable to those from 1998. Ground Water Samples The wellwater samples, all appropriately sampled per the license and NRC regulations, were analyzed for chloride, potassium, nickel, and uranium concentrations. No trends were observed with the groundwater sample results. I nstrument Calibrations Air Sampler Calibration !n accordance with License Condition 11.2.E, the licensee is required to perform a semiannual inspection as well as a biennialcalibration of the criticalorifice assembly. This device was used to check the accuracy of the environmental air sampler flow rates. c. d. 5.3 a. b. -9- Records for inspection and calibration of the critical orifice assembly were reviewed satisfactorily, as well as calibration records for the air sampling pumps; I nstrument Calibrations The Health Physics Manualstates all radiation and environmental monitoring, sampling, and detection equipment shall be recalibrated after repair and as recommended by the manufacturer or at least annually, whichever is more frequent. The licensee's calibration records and availability of equipment were reviewed. The licensee had maintained calibrated equipment available for use, and had maintained records indicating all equipment was routinely calibrated. Conclusions A cursory review of the licensee's implementation of the environmental monitoring program requirements was performed. The licensee was noted to be collecting all samples required by the license at the intervals specified in the license, and reporting these sample results in their 1999 semiannual effluent report. All sample results were less than the associated limits specified in 10 CFR Part20. When the 1999 data was compared to the 1998 sample results, no adverse trend was identified. Sampling equipment and instruments had been calibrated as required. Followup (92701) NRC lnformation Notice 96-70: Year 2000 Effect on Computer System Software This Notice was issued to alert licensees of the potential problems that may occur with their computer systems and associated software as a result of the upcoming change to the new century. During this inspection, the licensee's actions taken in response to this NRC lnformation Notice were reviewed. ln summary, the licensee had established that there were no operational equipment controllers affected by the Year 2000 effect. (Closed) Violation 40-8681/9901-01 Failure to Follow Procedures During the previous inspection, three examples were observed of failure to follow procedures: 1) an individual did not conduct face seal checks when donning respiratory protection equipment, 2) personneldid not sign in on Radiation Work Permits but rather were listed, and 3) an emergency evacuation drill had not been conducted within-the semiannual periodicity. During this inspection, several individuals were observed donning respiratory protection equipment and properly conducting face seal checks, personnelwere trained to sign in on Radiation Work Permits, and an emergency evacuation drill had been conducted within the previous six months. Corrective actions for this violation have been completed. This violation is now closed. 5.4 6.1 6.2 -10- 7 Exit Meeting Summary The inspector presented the preliminary inspection results to the representatives of the licensee at the conclusion of the inspection on July 29, 1999. Licensee representatives acknowledged the findings as presented. The licensee did not identify any information reviewed by the inspector as propriety information. Attachment 1 PARTIAL LIST OF PERSONS CONTACTED Licensee H. Roberts, Executive Vice-President R. Berg, Radiation Safety Officer W. Deal, Mill Manager M. Rehmann, Environmental Manager INSPECTION PROCEDURES USED 83822 Radiation Protection88005 Management Organization and Controls88035 Radioactive Waste Management88045 Environmental Monitoring92701 Followup93001 OSHA lnterface Activities ITEMS OPENED, CLOSED AND DISCUSSED Ooened None Closed 40-8681/9901-01 VIO failure to follow procedures Discussed NRC lnformation Notice 96-70: Year 2000 Effect on Computer System Software LIST OF ACRONYMS USED ALARA as low as reasonably achievableCaF calcium fluorideCFR Code of Federal RegulationsPDR Public Document RoomRWP radiation work permitSERP Safety and Environmental Review PanelSOP Standard Operating ProcedureTLD thermoluminescent dosimeters +11arr UNITED STATES REGULATORY COMMI REGION IV 611 RYAN PLAZA DRIVE, SUITE 'IOOARLINGTON, TEXAS 7601 1 €064 April 21, L999 Harold R. Roberts, Executive Vice-President International Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681/99-01 AND NOTICE OF VIOLATION Dear Mr. Roberts: On March 25, 1999, the NRC completed an inspection at your White Mesa Mitl near Blanding, Utah. The inspection consisted of selective examinations of procedures and representative records, interviews with personnel, and observations of activities in progress. The inspection findings were presented to you and members of your staff at the conclusion of the onsite inspection. The enclosed report presents the results of that inspection. Overall, the inspection determined that you have continued to operate the uranium production facility in a safe and effective manner. However, based on information developed during the inspection, the NRC has determined a violation of NRC requirements occurred. The violation is cited in the enclosed Notice of Violation (Notice) and the circumstances surrounding it are described in detail in the enclosed inspection report. The violation involved the failure to follow Standard Operating Procedures (SOPs). Specifically, three examples were found of failure to follow established SOPs, a violation of License Condition 9.6. The violation is of concern because it was identified by the NRC, and demonstrates a lack of attention to detail to procedural requirements. Since you committed to corrective actions during the inspection, you are not required to respond to this letter. ln accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter, its enclosures, and your response, if any, will be placed in the NRC Public Document Room (PDR). Should you have any questions concerning this inspection, please contact Mr. Douglas Simpkins at (817) 860-8220 or Dr. D. Blair Spitzberg at (817) 860-8191 . Docket No.: 40-8681 License No.: SUA-1358 Enclosures: (See next page) o NUCLEAR a SSION .=". >!c);"r; iDu =l)r' ^ 4i, ;r' ti )rit?J,7;: ',, E Sincerely, Division of Nuclear Materials Safety lnternational Uranium (USA) Corporation White Mesa Mill Enclosures: 1. Notice of Violation 2. NRC lnspection Report 40-8681/99-01 cc denclosure: Ms. Michelle Rehmann International Uranium (USA) Corp. lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, CO 80265 Mr. William Deal, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 Mr. William J. Sinclair, Director State of Utah Department of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & lntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 -2- ENCLOSURE 1 NOT]CE OF VIOLATION lnternational Uranium (USA) Corporation San Juan County, Utah Docket No.: 40-8681 License No.: SUA-1358 During an NRC inspection conducted on March 23-25,1999, a violation of NRC requirements was identified. ln accordance with the "General Statement of Policy and Procedure for NRC Enforcement Actions," NUREG-1600, the violation is listed below: License Condition 9.6 states, in part, standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. Contrary to the above, the licensee did not follow established SOPs in three separate occasions: . The Health Physics Manual requires personnel donning respiratory protection equipment to conduct positive or negative face seal checks. Contrary to this requirement, on March 24, 1999 an individual was obserued to have not conducted face seal checks when using respiratory protection for protection from radionuclides. . The Ore Receiving, Feed and Grinding Manual requires personnelconducting work under a radiation work permit to sign the permit. Contrary to this, personnelwere simply listed on six radiation work permits since the previous inspection. . The Emergency Response Plan requires emergency evacuation drills be conducted, documented and reviewed by management semi-annually. Contrary to this, as of March 25, 1999, the last drill had been conducted in June, 1998, the last documented drill had been conducted April 29, 1996, and no record of drill reviews was found. This is a Severity Level lV violation (Supplement V!). The NRC has concluded that information regarding the reason for the violation, the corrective actions taken and planned to correct the violation and prevent recurrence and the date when full compliance will be achieved is already adequately addressed on the docket in this inspection report. However, you are required to submit a written statement or explanation pursuant to 10 CFR 2.201 if the description therein does not accurately reflect your corrective actions or your position. ln that case, or if you choose to respond, clearly mark your response as a "Reply to a Notice of Violation," and send it to the U.S. Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington, DC 20555 with a copy to the Regional Administrator, Region lV, 61 1 Ryan Plaza Drive, Suite 400, Arlington, Texas 7601 1, within 30 days of the date of the letter transmitting this Notice of Violation. -2- lf you contest this enforcement action, you should also provide a copy of your response, with the basis for your denial, to the Director, Office of Enforcement, United States Nuclear Regulatory Commission, Washington, DC 20555-0001. lf you choose to respond, your response will be placed in the NRC Public Document Room (PDR). Therefore, to the extent possible, the response should not include any personal privacy, proprietary, or safeguards information so that it can be placed in the PDR without redaction. lf personal privacy or proprietary information is necessary to provide an acceptable response, then please provide a bracketed copy of your response that identifies the information that should be protected and a redacted copy of your response that deletes such information. lf you request withholding of such material, you must specifically identify the portions of your response that you seek to have withheld and provide in detail the bases for your claim of withholding (e.9., explain why the disclosure of information will create an unwarranted invasion of personal privacy or provide the information required by 10 CFR 2.790(b) to support a request for withholding confidential commercial or financial information). lf safeguards information is necessary to provide an acceptable response, please provide the levelof protection described in 10 CFR 73.21. ln accordance with 10 CFR 1 9.1 1 , you may be required to post this Notice within two working days. Dated this 21"tday of April 1999 ENCLOSURE 2 U.S. NUCLEAR REGULATORY COMMISS]ON REGION IV Docket No. 40-8681 License No. SUA-I358 Report No. -8681/99-01 Licensee: lnternational Uranium (USA) Corp. Facility: White Mesa Mill Location: San Juan County, Utah Dates: March 23-25, 1999 lnspector: Douglas S. Simpkins, Health Physicist Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Accompanied By: Ted Johnson, Senior Technical Reviewer Uranium Recovery and Low LevelWaste Branch Division of Waste Management Daniel Rom, Geotechnical Engineer Uranium Recovery and Low LevelWaste Branch Division of Waste Management Approved and Accompanied By: D. Blair Spitzberg, Ph.D., Chief Fuel Cycle and Decommissioning Branch Division of Nuclear Materials Safety Attachment: Supplementary lnformation -2- EXECUTIVE SUMMARY White Mesa Mill NRC lnspection Report 40-8681/99-01 This inspection included a review of site status, management organization and controls, site operations, radioactive waste management, radiation protection and environmental protection programs. Overall, the licensee was operating the facility in a safe and effective manner. Manaoement Orqanization and Controls . The licensee's organizational structure was in agreement with the license requirements, and adequate oversight had been provided for site activities (Section 2.2). o I review of the licensee's implementation of the performance-based license showed the licensee had correctly utilized a performance-based license (Section 2.3). . Three examples of a failure to follow established procedures were noted, a violation of License Condition 9.6 (Section 2.4). Radioactive Waste Manaqement . Operational activities were being conducted safely and in accordance with the conditions of the license as well as NFIC regulations (Section 3.2). o fi review of the licensee's onsite control of the alternate feed material demonstrated the licensee was maintaining controlof the radioactive waste shipments in an orderly, controlled fashion (Section 3.3). Radiation Protection . The radiation protection program areas reviewed were found to be acceptable with the exception of the noted procedural compliance violations, including audit program review, decommissioning recordkeeping, radiation work permits (RWPs), bioassay and respiratory protection activities (Sections 4.2-4.6). Envi ronmental Protection . The licensee was noted to be collecting all environmental monitoring samples required by the license at the intervals specified in the license, as reported in the 1998 semiannual effluent reports. All sample results were less than the associated effluent release limits specified in 10 CFR Part 20 during 1998. When the 1998 sample results were compared to those from 1997, no adverse trends were identified (Sections 5.2-3). 2.1 -3- Report Details Site Status The NRC issued Source Material License No. SUA-1358 to Energy Fuels Nuclear during August 1979. Ownership of the site was eventually transferred to Umetco Minerals, back to Energy Fuels Nuclear, and finally to lnternational Uranium (USA) Corporation (lUC). IUC assumed ownership of the White Mesa Millon May 10, 1997. The NRC approved the transfer via Amendment No. 2 of the revised License No. SUA-1358. This amendment was issued to IUC on May 9, 1997. The mill was actively processing alternate feed material during the inspection. (Alternate feed material is material other than natural uranium ore.) The licensee is authorized to receive and process alternate feed materials from four out-of-state firms by License Conditions 10.6 through 10.13. ln accordance with License Conditions 10.6 and 10.7, IUC is authorized to process alternate feed materialfrom Allied Signal. This material, referred to as "CaP (calcium fluoride), is currently being stockpiled for future processing. ln accordance with License Conditions 10.10, 10.11 and 10.13, the licensee is receiving bulk alternate feed materials in soilform from the Ashland 2 Formerly Utilized Sites RemedialAction Program near Tonowanda, New York, and drummed calcined byproduct materials from Cameco Corporation's Blind River and Port Hope facilities in Ontario, Canada. Although the Cameco material is currently being processed, only fingerprint analysis of the Ashland 2 material is being conducted in preparation for future processing. The licensee is also receiving and processing bulk uranium ore from active mines through private contractors. Management Organization and Controls (88005) lnspection Scope The organizational structure was reviewed to ensure the licensee had established an effective organization with defined responsibilities and functions and appropriate controls were in place to ensure compliance with NRC requirements. Also, the utilization and implementation of the licensee's performance-based license was reviewed. Management Organization The organizational structure requirements are provided in License Condition 9.3, which references the NRC-approved license renewal application dated January 30, 1997. The licensee had made no changes to the structure since the previous inspection. 2.2 2.3 -4- ln summary, the licensee's organizational structure was in agreement with the intent of License Condition 9.3. Performance-Based License Review License Condition 9.4 states that the licensee may, under certain conditions and without prior NRC approval, make changes in the facility or processes, make changes to procedures, or conduct tests and experiments not presented in the license application. The licensee's implementation of the performance-based license provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a performance-based license during March 1997. The licensee's determinations under License Condition 9.4 are required to be made by a Safety and Environmental Review Panel (SERP). The licensee held three SERP meetings since the previous inspection as discussed below: August 3. 1998 - The SERP reviewed two areas: The utilization of Cell No. 2 for storage of process tailings after dewatering from Cabot uranium/tantalum ores. The use of resin lX for the purification and concentrating step in place of liquid lX, or solvent extraction. August 21. 1998 - The SERP reviewed two areas: Formal review and discussion of the Draft Sampling and Analysis Plan ("SAP") for confirmatory sampling of the Ashland 2 material. Discussion of the detection of naphthalene in one of the 15 characterization samples obtained by ICF Kaiser Engineers. December 2. 1998 The SERP reviewed a modification to the front-end processing procedures of Ashland 2 ore material to incorporate a trommel screening mechanism for gross separation of feed materials. All SERP panel conclusions were technically adequate. However, the SERP review accounting process was in need of improvement. The licensee stated it would develop a formal indexing and enumeration system. Site Procedures ln accordance with License Condition 9.6, SOPs are required to be established and followed for all operational process activities involving radioactive materials that are 2.4 b. -5- handled, processed, or stored. However, the licensee did not follow established SOPs in three separate occasions as discussed below: The Health Physics Manual requires personneldonning respiratory protection equipment to conduct positive or negative face seal checks. Contrary to this requirement, on March 24, 1999 an individual was observed to have not conducted face seal checks when using respiratory protection for protection from radionuclides. The licensee committed to a corrective action to include a review and emphasis of respiratory protection requirements at the next safety meeting. The Ore Receiving, Feed and Grinding Manual requires personnelconducting work under a RWP to sign the permit. Contrary to this, personnelwere simply listed on six RWPs since the previous inspection. The licensee committed to a corrective action of supervisory training on the proper use of RWPs at the next daily meeting. The Emergency Response Plan requires emergency evacuation drills be conducted, documented and reviewed by management semi-annually. Contrary to this, as of March 25, 1999, the last drill had been conducted in June 1998, and the last documented drill had been conducted April29, 1996, with no record of drill reviews found. The licensee committed to corrective actions of conducting and documenting an emergency drill in the next 7-10 days, and subsequent timely review by appropriate management personnel. The corrective actions committed during the inspection were adequate to resolve this violation (40-8681 /9901 -01 ). Conclusions The licensee had established an organizational structure that agreed with the requirements of the license. Also, the licensee had correctly implemented the performance-based conditions of the license. Three examples of failing to follow procedures were obserued, a violation of License Condition 9.6. The licensee committed to adequate corrective actions during the inspection. Radioactive Waste Management (88035) Inspection Scope The objective of this portion of the inspection was to verify site activities were being conducted in accordance with applicable regulations and the conditions of the license, and to ensure operational controls were adequate to protect the health and safety of the workers and the members of the general public. Site Operations A facility tour was performed to observe activities in progress. Site perimeter postings, required by License Condition 9.9, were in place at all entrances to the site, although 2.5 3.1 3.2 3.3 -6- many were faded and in need of replacement. The licensee indicated an intent to replacing the signs on an as-needed basis. No significant health or safety concern was identified during the tour. A review of the licensee's four disposal cells was conducted. Cells 1 and 3 were actively being used for process solution evaporation and recycling, with Cell3 also used for disposal of tailings generated onsite and wastes generated offsite (as authorized in License Condition 10.5). Cell2 was being used for disposal of solid wastes generated onsite, and was covered as the cell was filled. Any liquid recovered from Cell 2 operations was transferred to Cell 3. Finally, Cell 4 was not in service during the inspection, receiving only precipitation. Since the cell had multiple tears and channels in the liner system, the licensee stated that Cell 4 would not be used until the liner is replaced. No abnormal conditions, such as leaks or berm failures, were observed at any of the cells during the site tour. An inspection of all.four cells was performed by the radiation safety technicians. Radioactive Waste Receipts License Condition 10.5 authorizes the licensee to dispose of byproduct material generated at licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. The licensee is also required to submit an annual summary to the NRC of wastes disposed of from off-site generators in accordance with Condition 10.5.D. The licensee's most current annual summary was reviewed during the inspection. Eleven shipments from three offsite generators in 1998 and one in 1999 were conducted within the limits of the license. Conclusions The licensee appeared to have maintained control of site operations and radioactive waste receipts in accordance with the conditions of the license and NRC regulations. No detrimental health or safety issue was identified. Radiation Protection (83822) lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the conditions of the license as well as the requirements of 10 CFR Part 20. Audit Program Review ln accordance with License Condition 11.6, an annual as low as reasonably achievable (ALARA) audit of the radiation safety program is required to be performed in accordance with Regulatory Guide 8.31. The most current audit was found to be thorough and comprehensive. 3.4 4.1 4.2 -7- The radiation safety officer's monthly reports were reviewed. These reports are required by Section 3.6.3, "Monthly Reviews," of the ALARA Program section of the license application. The reports provided useful information such as in-plant radiological sampling and survey results. Finally, the licensee's weekly inspection reports were reviewed. These reports are required by Section 3.6.2, 'Weekly lnspections," of the license application. No significant health or safety issue was identified. 4.g Decommissioning Recordkeepinq ln accordance with 1O CFR Part 40.36(f)(1), records are required to be permanently maintained, including a description of the restricted area, spills, and any unusual events. The licensee was noted to be maintaining these records in onsite files, specifically the "Spill Containment and Countermeasures Plan and Reports" file. Licensee representatives stated that they had not added any new information to this file since 1 995. The licensee was operating in compliance with the recordkeeping requirements of 10 CFR Part 40.36. 4.4 Radiation Work Permits Radiation Work Permit (RWP) requirements are provided in the Health Physics Manual. The licensee issued six RWPs since the previous inspection. Allwere reviewed, and were within the scope of the RWP procedure. However, some RWP's were completed in pencil, allowing smudges and alterations to completed forms. The licensee indicated that they would have future forms completed in ink. !n addition, a procedural violation; previously discussed in Section 2.4, was identified for the failure to have workers sign RWPs prior to performing the work covered by the RWP. 4.5 Bioassay Prooram Review License Condition 9.6 requires written procedures for a bioassay program. The licensee had maintained extensive records related to bioassay sampling. During 1998, 220 bioassay samples were obtained from site workers and were analyzed by the onsite laboratory, including 34 blank and spiked samples for quality control purposes. At least ten percent of the samples were split and sent to an offsite laboratory for quality assurance purposes. No sample result exceeded the lowest action level of 15 micrograms of natural uranium per liter of urine. The sample results for 1998 were compared to 1997 sample results. No individual exceeded the action level during these years, suggesting that the licensee was effectively controlling intake of radioactive materials through the use of respirators, control of the radioactive materials and engineering controls. 4.6 -8- Respiratory Protection The respiratory protection program was reviewed during the inspection. Respirators were maintained in the control room area with smoke tubes to assure proper fit when donning. However, of three individuals interviewed, one incorrectly stated that a half- face respirator was appropriate for protection from radionuclides, contrary to site training protocols. Upon review of various procedures, several examples were found of inconsistencies of respirator usage. For example, in the Ore Receiving, Feed and Grinding Manual, a half-face respirator is required during semiautogenous grinding mill operations, even though this area is posted as an airborne radiation area. The licensee stated it would review and update procedures to establish consistency for respiratory requirements. ln addition, a proceduralviolation, previously discussed in Section 2.4, involved an individual observed not conducting a required face seal check when using a respirator. Conclusions Radiation protection program areas reviewed and found acceptable with the exception of the noted procedural compliance violations, included audit program review, recordkeeping of decommissioning activities, radiation work permits, bioassay and respiratory protection programs. Environmental Monitoring (88045) lnspection Scope The environmental monitoring program was reviewed to assess the effectiveness of the licensee's program and to evaluate the effects of site activities on the local environment. Environmental Monitoring Proqram Review License Condition 11.2 states, in part, that the licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewalapplication. Also, the results of the environmental monitoring program are required to be submitted to NRC on a semiannual basis in accordance with License Condition 11.3.C. The semiannual effluent report for the second half of 1998 was reviewed. The 1998 sample results were compared to those from 1997 to ascertain whether any adverse trends existed. Air Particulate Samplino The licensee collected particulate air samples at four locations around the site. (The operation of the air sampler at the background station was discontinued by the licensee with NRC approval several years ago.) The sample filters are required to be changed weekly, composited quarterly, and analyzed for their natural uranium, radium-226, thorium-23O, and lead-210 quantities. The sample results were less than 3 percent of the respective 10 CFR Part 20, Appendix B, effluent concentration limits. Also, the 4.7 5.1 5.2 a. b. -9- laboratory's lower limit of det6ction was equal to or better than the limits specified in License Condition 1 1.2.D. The 1998 sample results were compared to those from 1997. Overall, the 1998 sample results were down from the previous year. Therefore, no adverse trends were noted in this area of the environmental monitoring program. Stack Samolino The licensee is required to sample the stack emissions for natural uranium content on a quarterly basis during plant operations. Also, sampling for total particulates, thorium-230, radium-226, and lead-210 content is required on a semiannual basis. ln addition, License Condition 11.2.A specifically requires the licensee to determine the stack flow rates. According to information provided by the licensee, the yellowcake stacks were not used during the second half of 1998; therefore, stack samples were not obtained during this time frame. Ambient External Gamma Exposures Environmentalgamma thermoluminescent dosimeters (TLDs) were located at allfive sample stations. The TLDs were changed out and analyzed on a quarterly basis. The site perimeter sample stations measured an ambient gamma exposure that was comparable to the background value. Historically, the difference between the site stations and background rarely exceeded 10 millirems per quarter. The sample results for 1998 were comparable to those from 1997 and no adverse trend was observed. Vegetation Sampling Vegetation samples are required to be obtained three times per year from three separate locations. The samples were required to be analyzedtor their radium-226 and lead-210 concentrations. The 1998 sample results showed no increase in radionuclide concentrations from the 1997 sample results. Soil Sampling Soil samples are required to be obtained once each year at all sample stations, including the background station. The radionuclide concentrations in the soilsamples were very low, and the site boundary sample results were comparable to the background value. Also, the 1998 sample results were comparable to those from 1997. Surface Water Samples ln accordance with Section 5.5 of the license application, surface water samples are required to be obtained from two locations. Water samples (or sediment samples if the streams are dry) are to be obtained annually from Westwater Creek and quarterly from c. d. e. f. 5.3 g. a. .10- Cottonwood Creek. The samples were analyzed for their natural uranium, radium'226, and thorium-23o concentrations, as well as for the quantity of total dissolved and suspended solids. Sample results were less than 2 percent of the natural uranium effluent concentration limit specified in Appendix B of Part 20. Also, the 1998 sample results were noted to be comparable to those from 1997. The wellwater samples are analyzed for chloride, potassium, nickel, and uranium concentrations. No trends were observed with the groundwater sample results. I nstrument Calibrations Air Sampler Calibration ln accordance with License Condition 11.2.E, the licensee is required to perform a semiannual inspection as well as a biennial calibration of the critical orifice assembly. This device was used to check the accuracy of the environmental air sampler flow rates. Records for inspection and calibration of the critical orifice assembly were reviewed, as well as calibration records for the air sampling pumps. Although the orifice assembly was due for calibration in February 1999, the licensee had used it for calibrating environmental air sampling pumps in March 1999, two weeks overdue. This finding was determined to be a violation of minor significance and was therefore not cited. The licensee committed to getting the orifice calibrated and the environmentalair sampling pumps recalibrated in a timely manner. ! nstrument Calibrations The Health Physics Manualstates all radiation and environmental monitoring, sampling, and detection equipment shall be recalibrated after repair and as recommended by the manufacturer or at least annually, whichever is more frequent. The licensee's calibration records and availability of equipment were reviewed. The licensee had maintained calibrated equipment available for use, and had maintained records indicating all equipment was routinely calibrated. Conclusions A thorough review of the licensee's implementation of the environmental monitoring program requirements was performed. The licensee had used an out-of-calibration orifice to calibrate the environmental air sampling pumps, but had committed to orifice calibration and pump recalibration in a timely manner. The licensee was noted to be collecting all samples required by the license at the intervals specified in the license, and reporting these sample results in their 1998 semiannual effluent report. All sample results were less than the associated limits specified in 10 CFR Part 20 during 1998. When the 1998 data was compared to the 1997 sample results, no adverse trend was identif ied. b. 5.4 6.1 -1 1- Followup (92701) NRC lnformation Notice 96-70: Year 2000 Effect on Computer System Software This Notice was issued to alert licensees of the potential problems that may occur with their computer systems and associated software as a result of the upcoming change to the new century. During this inspection, the licensee's actions taken in response to this NRC lnformation Notice were reviewed. ln summary, the licensee had established that there were no operational equipment controllers affected by the Year 2000 effect. NRC Information Notice 99-03: Exothermic Reactions lnvolving Dried Uranium Oxide Powder (Yellowcake) This lnformation Notice was issued to alert licensees to the potentialfor drummed yellowcake to react with hydrocarbons and generate excessive pressures. ln two cases, excessive pressures were generated in drummed yellowcake from the generation of orygen from the breakdown of process hydrogen peroxide. ln two additional cases, hydrocarbon contaminants were introduced into the processes and packaged with the yellowcake. Subsequent reactions generated excessive heat and gas production. The licensee's actions taken in response to lnformation Notice 99-03 were reviewed. The licensee was aware of the oxygen generation problem at other facilities and had trained dryer operators to incorporate a cool-down period prior to package sealing; therefore, the licensee had taken the appropriate corrective actions in relation to the lnformation Notice. The licensee was also aware of the hydrocarbon contaminant problem. The licensee stated visual inspections of the processed yellowcake are performed while the product is being packaged. The licensee planned to take no further specific action related to the hydrocarbon contaminant incidents discussed in the lnformation Notice. Exit Meeting Summary The inspector presented the preliminary inspection results to the representatives of the licensee at the conclusion of the inspection on March 25, 1999. Licensee representatives acknowledged the findings as presented. The licensee did not identify any information reviewed by the inspector as propriety information. 6.2 7 a Attachment 1 PARTIAL LIST OF PERSONS CONTACTED Licensee H. Roberts, Executive Vice-President R. Berg, Radiation Safety Otficer W. Deal, MillManager M. Rehmann, Environmental Manager State of Utah G. Ripley, Environmental Scientist, Division of Radiation Control Environmental Protection Aqency R. Graham, Health PhysicisUEco-Toxicologist, Office of Pollution Prevention - Toxicology T. Brown, Environmental Engineer, Pollution-Hazardous Waste INSPECTION PROCEDURES USED 83822 Radiation Protection88005 Management Organization and Controls88035 Radioactive Waste Management88045 Environmental Monitoring92701 Followup ITEMS OPENED, CLOSED AND DISCUSSED Opened 40-8681/9901-01 VIO failure to follow procedures Closed None Discussed NRC lnformation Notice 96-70: Year 2000 Effect on Computer System Software NRC lnformation Notice 99-03: Exothermic Reactions lnvolving Dried Uranium Oxide Powder (Yellowcake) LIST OF ACRONYMS USED ALARA as low as reasonably achievableCaF calcium fluorideCFR Code of Federal RegulationsPDR Public Document RoomRWP radiation work permitSERP Safety and Environmental Review PanelSOP Standard Operating ProcedureTLD thermoluminescent dosimeters IurrnNerro*oD UneNruvr (use) ConponATroN IndependencePlaza, Suite 950 o 1050 Seventeenth Street . Denver, CO 80265 o 303 628 7798 (main) o 303 389 al25 (fax) July 17, 1998 Bill Sinclair, Director Utah Department of Environmental Qulaity Director of Radiation Control P.O. Box 144850 Salt Lake City, UT 84114-4850 Dear Mr. Sinclair: Attached for your information is a copy of the July 9, 1998 Commission ("NRC") on the second NRC inspection for report from the U.S. Nuclear Regulatory 1998 of the White Mesa Mill. , r. -.]-it 4 'JU[ Iggg i ,ft6at.(lt riv::tco ol "Er#fl' Sincerely yours, \ ) /z-zta Michelle R. Rehmann Environmental Manager MRR/tay Enclosure: NRC inspection report 40-686198-02 +t*;r UNITED STATES NUCLEAR REGULATORY COMMISSION REGION IV 611 RYAN PLAZA DBIVE. SUITE .1OO AFLINGTON, TEXAS 7601 1.8064 -:_-+-:i. j_ JUL 1 3 tggg --! July 9, 1998 Harold R. Roberts, Executive Vice-President lnternational Uranium (USA) Corporation !ndependence Plaza, Suite 950 1050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681/98-02 Ig: t 't' /' trTtr Dear Mr. Roberts: This refers to the inspection conducted on June 9 -11, 1998, at your Wtite Mesa Mill near Blanding, Utah. The purpose of this inspection was to determine if activities were being conducted in accordance with NRC regulations and your license which authorizes uranium milling operations and 11e.(21byproduct material disposal. The enclosed report presents the results of that inspection. The inspection disclosed that site operations were being conducted in accordance with NRC regulations.' The facility was properly staffed, and plant operations, radiation protection, radioactive waste management, and environmental protection programs had been properly implemented. ln accordance with 10 CFR 2.790 of the NRC's 'Rules of Practice,' a copy of this letter and its enclosure will be placed in the NRC Public Document Room. Should you have any questions conceming this inspection, please contact Mr. Louis C. Carson ll at (817) 860-8221or Mr. Charles Cain at (817) 860-8186. Scarano, Director of Nuclear Materials Safety Docket No. 40-8681 License No. SUA-1358 Enclosure: NRC lnspection Report 40-8681/98-01 Sincerely, Rdss A. lnternational Uranium (USA) Corp. -2' cc w/enclosure: Mr. William Deal, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 Mr. \A/illiam J. Sinclair, Director Utah Department of Environmenta! Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & lntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 ENCLOSURE U.S. NUCLEAR REGUI-ATORY COMMISSION REGION IV Docket No. 40-8681 License No. SUA-1358 Report No. 40-8681/98-02 Licensee: lnternational Uranium (USA) Corporation (lUC) Facility: \l1/ttite Mesa Mill Location: San Juan County, Utah Dates: June 9 -1 1, 1998 lnspector: Louis C. Carson ll, Health Physicist Nuclear Materials Safety Branch 1 Division of Nuclear Materials Safety Region lV Approved By: Charles L. Cain, Chief Nuclear Materials Safety Branch 1 Division of Nuclear Materials Safety Region lV Attachment Supplementary lnformation -2- EXECUTIVE SUMMARY lnternational Uranium (USA) Corporation NRC lnspection Report 40-8681 /98-02 This inspection included a review of site status, management organization and controls, site operations, radioactive waste management, radiation protection, and environmental protection programs. Site Status and Operations Review . The site was being maintained in accordance with the NRC license and applicable NRC regulations for uranium mill sites (Section 1). . Site security, perimeter postings and security of licensed material were found to be maintained as required by License Condition 9.9, 10 CFR 20.1801, and 10 CFR 20.1902(e) (Section 1). Management Organization and Controls . The licensee had established an organizational structure that agreed with the conditions of the license. Also, the licensee had established a procedures improvement program (Section 2). Radiation Protection . The licensee had implemented a radiation protection program that was found to be in accordance with requirements established in 10 CFR Parts 19 and 20 and the license (Section 3). . Areas of the radiation protection program that were reviewed and found to be acceptable included worker occupational dose determination, radiation work permit implementation, bioassay program, and the respiratory protection program (Section 3). Radioactive Waste Management . Radioactive waste management activities were being conducted safely and in accordance with the conditions of the license as well as NRC regulations (Section 4). Environmental Protection . A review of the licensee's environmental monitoring program and the licensee's semiannual effluent report for the second half of 1997 indicated that the licensee was in compliance with license requirements and 10 CFR 40.65. All sample results were less than the associated effluent release limits specified in 10 CFR Pxl20 during 1997, and no adverse trends were identified (Section 5). 1 1.'.l -3- Report Details Site Status and Operations Review (88020) Scope On May 10, 1997, Source Material License No.1358 was transfened to lUC to operate the Write Mesa uranium mill and 11e.(2) byproduct disposal site. The NRC inspector reviewed the site status and the state of operations to determine: (1) if licensed activities were being conducted in accordance with the IUC license and applicable NRC regulations for uranium mill sites and (2) that operational controls were adequate to protect the health and safety of the workers and the members of the general public. Observations and Findings The Write Mesa Mill is capable of producing 2,000 tons of yellowcake per day. During this inspection, the millwas shut down and in an outage. On April 3, 1998, the license ceased processing Cabot altemate feed material. Altemate feed material is material other than uranium ore. License Conditions (LC) 10.6 through 10.9 authorize receipt and processing of four altemate feed materials from three out-of-state firms. The licensee plans to resume processing the Cabot material and conventional uranium ore material from Colorado during July 1998. The licensee has not produced any yellowcake since January 1998. The site also produces other nonradiological products such as vanadium. Additionally, the \Mrite Mesa facility recycles altemate feed material in order to recover uranium, vanadium, and tantalum. During this inspection, the licensee was performing maintenan@ on uranium mill equipment and conducting housekeeping around the millsite during the outage. The most significant maintenance activity involved the replacement of the liner material in the semiautogenous grinding (SAG) mill. A facility tour was performed to observe activities in progress. Site perimeter postings, required by LC 9.9 and 10 CFR 20.1902(e), were noted to be in place at allentrances to the site. Site security was maintained by keeping the site ac@ss gate closed to prevent unauthorized access to the property. No significant health or safety concems were identified during the tour. The inspector concluded that licensed materialwas secure within the site property as required by 10 CFR 20.1801. Conclusion The site was being maintained in accordance with the IUC license and applicable NRC regulations for uranium mill sites. Site security, perimeter postings and security of licensed materialwere found to be maintained as required by License Condition 9.9, 10 CFR 20.1801, and 10 CFR 1902(e). No significant health or safety concems were identified. 1.2 1.3 2 2.1 .4- Management Organization and Controls (88005) lnspection Scope The inspector reviewed the licensee's organization structure and management controls to determine: (1) whether functional responsibilities and personnel qualifications had been ctearly established and fulfilled in accordance with the conditions of the license, and (2) what controls were in place to ensure compliance with NRC requirements. Management Organization The organizational structure requirements are provided in LC 9.3. Also, the licensee provided details of its organizational structure to the NRC by a letter dated January 30,1997. The onsite staff consisted of 95 individuals and six contractors. The inspector determined that the licensee's organization and staff remained consistent with the license (Figure 3.1, '\Mrite Mesa Uranium MillOrganizationalChart'). Site Procedures and Procedure Revisions ln accordance with LC 9.6, standard operating procedures (SOPs) are required to be established and followed for all operationa! process activities involving radioactive materials that are handled, processed, or stored. Additionally, written procedures must be established for nonoperational activities to include in-plant and environmental monitoring, bioassay analyses, and instrument calibrations. An uptodate copy of each applicable written procedure must be kept in the mill. The inspector noted that LC 9.6 requires that the RSO review and approve in writing al! operational and nonoperationa! procedures before implementation and whenever a change had been proposed to assure that proper radiation protection practices were applied. Additionally, the RSO is required to perform a documented review of all operating procedures annually. The inspector found that reviews were being conducted. The inspector reviewed the following procedures: a a a a a a SERP Millequipment SOPs Bioassays Environment Protection Respiratory Protection Radiation Work Permits (RWP) The licensee's implementation of the performance-based license provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a performance-based license in March 1997. LC 9.4 allows the licensee, under the direction of the Safety and Environmental Review Panel (SERP), to make changes in the facility or processes, make 2.2 2.3 2.4 changes to procedures, or conduct tests and experiments not presented in the license application without prior NRC approval. Although the licensee had a SERP procedure for implementing LC 9.4, the procedure neither established SERP meeting frequencies nor set requirements for maintaining meeting records and distributing meeting minutes to responsible personnel. Additionally, provisions were not made for resolving SERP identified concems. The corporate RSO and the mill manager were members of the SERP, and the site RSO was the chairman of the site As Low As is Reasonably Achievable (ALARA) Committee. The licensee, under the direction of the SERP, had undertaken an extensive site procedures revision program since the last inspection. The licensee had contracted a consultant to rewrite \Mrite Mesa procedures by August 1998. The licensee planned to have all revised procedures reviewed by the SERP. Additionally, the licensee stated that it would evaluate the need for detailed management procedures for goveming the SERP, the AI,ARA committee, administrative control, problem identification, and quality assurance matters. The environmental protection procedures and mill equipment SOPs were in draft form and were scheduled to be reviewed and approved by the SERP in the following weeks. The inspector found that those revised procedures represented a substantial improvement from the site's cunent procedures. However, many radiation protection procedures had not been revised and needed updating. For example, IUC had not developed specific procedures for RWPs or for the respiratory protection program. The bioassay procedure had not been updated with the cunent methods used to analyze bioassays. The SERP had not formally reviewed the results of the bioassay program changes. The inspector also observed that development of \Mite Mesa procedures was not controlled by any administrative program. ln some instances, White Mesa staff were still using radiation protection procedures that were written by a previous owner. No violations were identified during the inspection. However, weaknesses noted above were being addressed by the licensee as a part of the procedures improvement program. Nonetheless, the inspector determined that IUC was raising the quali$ standards of the \Mrite Mesa operation by the procedures improvement program and concluded that the licensee was in compliance with LC 9.6. Conclusions The licensee had maintained organization and staff that agreed with the requirements of the license. The licensee's SERP procedure improvement program enhanced the quality standard of the Write Mesa operation and was found to be in compliance with LC 9.6. 3 3.1 .6- Radiation Protection (83822) lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the conditions of the license as wellas the requirements of 10 CFR Part 20. Observations and Findings Occupational Radiation Exposures The licensee's intemal and external radiation exposure programs were reviewed. The inspeclor also reviewed personnel exposures associated with the SAG mill repair project. The licensee's program included the issuance of thermoluminescent dosimeters (TLD), sampling for airborne radioactivity using high volume air samplers and lapel air samplers, and use of urine bioassays. The licensee reported occupational radiation exposures (total effective dose equivalent) based on TLD and air sample results. Bioassay results were used to validate the air sampling program. The licensee maintained each worke/s exposure data in a detailed, computerized spreadsheet that included allthe worke/s air sampling data, exposure time, and applicable derived air concentrations (DAC) for specific locations in the facility. During 1997 the licensee had issued 121 TLDs to workers. Five workers had extemal exposures between 250 and 750 millirems, 9 workers had exposures between 100 and 249 millirems, and 107 workers had extemal radiation exposures of less than 100 millirems. During 1997, the highest committed effective dose equivalent was 950 millirems. The inspector determined that occupational exposures during 1997 were less than the 5000 millirems annual limit in 10 CFR 20.1201. The inspector examined intemalexposure records associated with the SAG mill project. Air sampling records indicated that uranium-238 airbome concentrations inside of the SAG mill had been measured as high as 892 percent (5.35E-10 microcuries per cubic centimeter (UCi/cc)) of the DAC value in late May 1998 and 551 percent (3.31E-10 UCUcc) of the DAC value in June 1998. The DAC value for uranium-238 in air is 6.0E-11 pCi/cc. The inspector reviewed the air sample analysis, worker residence times, protective measures, and internal exposure calculations for 12 SAG mill project workers. At the time of the inspection, SAG millworkers were being issued full-face respirators with a protection factor (PF) of 50. Early in the project, workers had been issued positive air supply respirator protection with a PF of 1000. The inspector determined that the licensee's calculations of potentialworker intemal exposure were adequate. lnternalexposures were found to be well below regulatory limits because the licensee had utilized respiratory protection equipment that was consistent with airbome concentrations inside the SAG mill . 3.2 d. -7- Radiation Work Permits The inspector reviewed the licensee's radiation work permit (RWP) program. The inspector noted that many of the licensee's procedures required that workers obtain an RWP from the radiation protection staff prior to performing work with a significant potential for radiological exposure. The inspector noted, however, that the licensee had not established a specific procedure for R\A/Ps. Some general instructions for RWPs were located in Section 3.5.2 of the ALARA program that was written by the previous owner. The SAG mill repair projed was undenivay at the time of the inspection and was being conducted under RWPs-330 and 331. The inspector reviewed RWPs and found that both RWPs included the following elements: job description, requirements for radiological monitoring and sampling protective equipment, respiratory protection equipment, ALARA considerations, and a listing of personnelwho were assigned to the RWP. The inspeclor's observation of workers performing the SAG mill project revealed that the workers were complying with RWP instructions. The inspector determined that the RWP instructions were adequate to preclude unnecessary personnel exposures. Bioassays The inspector reviewed the licensee's bioassay program. The licensee primarily used urinalysis on a monthly basis for uranium bioassay. However, for workers involved in work under certain RWPs, additionalsamples were required. According to the license application, the licensee analyzed urine samples by in-house fluorometrics, but the inspector found that they stopped using fluorometric analysis as the principal analytical method in February 1998. According to the licensee, the fluorometric analysis equipment was obsolete, no longer reliable, and replacement parts were hard to procure. Therefore, the chemistry department started using an inductively coupled plasma mass spectrometer (|CP-MS) for urinalysis. The licensee showed the inspector that ten percent of the urinalysis samples were sent to a certified laboratory as part of their quality control (QC) program. The inspector reviewed the licensee's reports of investigations into potentially elevated bioassay results from 1997 and 1998. The licensee's bioassay investigation levelwas 15 micrograms per liter. The licensee had investigated bioassay results that were analyzed during the transition from the fluorometric method to the ICP-MS method. Based on the inspector's reviews and comparisons of ICP-MS, flurometric, and QC bioassay results, the inspector determined that the licensee's bioassay program was in compliance with license requirements. Respiratory Protection Program The inspector reviewed the licensee's respiratory protection program. The inspector observed workers wearing full-face respirators and half-face respirators during the SAG mill project. According to the RSO, the licensee did not take credit for the half-face respiratory PF during radiological work. However, credit was taken for use of full-face 3.3 -8- and positive air supply respirators during radiological work that had a significant potential for exposure like the SAG mill project. The inspector found that the site maintained the respiratory protection program manual from a previous owner. The inspector reviewed the training records and medical certification records for some of the employees that had been issued respiratory protection equipment. The records certified allthe workers who were qualified to wear respiratory protection equipment. The inspector toured the area where the licensee maintained and issued respiratory protection equipment. The inspector determined that the licensee's respiratory protection program was adequate, and the selection of respiratory protection equipment was deemed appropriate for airbome concentrations in the mill. Conclusions The licensee had implemented a radiation protection program that was found to be in accordance with requirement established in 10 CFR Parts 19 and 20 and the license. Areas of the radiation protection program that were reviewed and found to be acceptable included worker occupationaldose determination, radiation work permit implementation, bioassay program, and the respiratory protection program. Radioactive Waste tanagement (88035) lnspection Scooe The objective of this portion of the inspection was to verify that site radioactive waste management activities were being conducted in accordance with applicable regulations and the conditions of the license, and to ensure that controls were adequate to protect the health and safety of the workers and the members of the general public. Observations and Findings During the site tour, the licensee's disposal cells were observed and found to be processing liquid waste through evaporation and recycling. No abnormal conditions, such as leaks or berm failures, were observed at any of the cells during the site tour. LC 10.5 authorizes the licensee to dispose of byproduct material generated at licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. The licensee is also required to submit an annual summary to the NRC of waste disposed of from off-site generators in accordance with LC 10.5(D). The licensee's most cunent annual summary dated April6, 1998, was reviewed by the inspector. This document summarized the waste received during 1997 from offsite waste generators. The total amount of waste received was within the limit specified in the license. 4 4.1 4.2 4.3 -9- Conclusions The licensee appeared to have maintained radioactive waste in accordance with the license and NRC regulations. No health or safety issues were identified. Environmental Monitoring (88045) lnspection Scooe The environmental monitoring program was reviewed to assess the effectiveness of the licensee's program and to evaluate the effects of site activities on the local environment. Observations and Findings Environmental Monitoring Program Overview LC 11.2 states that the licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application. Also, the results of the environmental monitoring program are required to be submitted to NRC on a semiannual basis in accordance with LC 11.3(C) and 10 CFR 40.65. The semiannual effluent report for the second half of 1997 was submitted to the NRC on March 2, 1998, and reviewed during this inspection. The results of the 1997 effluent report were compared to the 1996 reports to ascertain whether any adverse trends existed. Air Particulate Sampling The licensee collected particulate air samples at four locations around the site. Sample filters were required to be changed weekly and analyzed for natural uranium, radium-226, thorium-23O, and lead-210 quantities. Sample results for the second half of 1997 were reviewed. Sample results were less than 7 percent of the respective 10 CFR Part 20, Appendix B, effluent concentration limits. Also, the laboratory's lower limit of detection was equal to or better than the limits specified in LCl1.2(D). The 1997 sample results were compared to the 1996 sample results, and no adverse trends were noted in this area of the environmental monitoring program. Stack Sampling The licensee is required to sample the stack emissions for natural uranium content on a quarterly basis during plant operations. Sampling for total particulates, thorium-230, radium-226, and lead-210 content is required on a semiannual basis. Also, LC 11.2(A) requires the licensee to determine the stack flow rates. Yellowcake stacks were in service during the second half of 1997 and were sampled. The licensee also reported the results of stack samples in the semiannual effluent report for the second half of 1997. The inspector determined that licensee calculation of stack flowrates, radioactive material release rates, and radioactive material concentrations were performed adequately. 5 5.1 5.2 d. 10- Ambient External Gamma Exoosures Environmental TLDs were located at five sample stations. One duplicate sample was used at one station for quality control purposes. The TLDs were replaced and analyzed on a quarterly basis. The sample results for 1997 were reviewed during the inspection. The TLD ambient gamma exposure measurements were comparable to the background radiation and were comparable to the 1996 TLD results. No adverse trend was observed. Surface Water and Groundwater Samples Section 5.5 of the license application requires surface water samples to be obtained from two locations. Quarterly samples had been collected from Westwater Canyon and Cottonwood Creek. The samples were analyzed for natural uranium, radium-226, and thorium-230 concentrations, as well as for the quantity of total dissolved and suspended solids. Sample results were found to be less than the natural uranium effluent concentration limit specified in Appendix B of 10 CFR Part 20. Also, the 1997 sample results were noted to be comparable to the 1996 sample results. LC 11.3(C) requires monitoring wells to be sampled quarterly and analyzed for chloride, potassium, nickel, and uranium concentrations. The sample results for the fourth quarter of 1997 were reviewed. The highest natural uranium concentration (0.05 milligrams per liter) was measured in a sample obtained from well MW-14. There were no deleterious trends. Conclusions A review of the licensee's environmental monitoring program and 10 CFR 40.65 report indicated that the licensee was in compliance with license requirements. Exit Meeting Summary The inspector presented the preliminary inspection results to licensee representatives at the conclusion of the inspection on June 1 1, 1998. Licensee representatives acknowledged the findings as presented. The licensee did not identify any information reviewed by the inspector as propriety information. e. 5.3 ATTACHMENT SUPPLEMENTAL INFORMATION PARTIAL LIST OF PERSONS CONTACTED Licensee R. Berg, Radiation Safety Officer (RSO) W. Deal, Mill Manager W. Palmer, Radiation Technician M. Rehmann, Environmental Manager and Corporate RSO INSPECTION PROCEDURES USED lP 83822 Radiation ProtectionlP 88005 Management Organizational ControlslP 88020 Operations ReviewlP 88035 Radioactive Waste ManagementlP 88045 Environmental Monitoring ITEIf,S OPENED. CLOSED AND DISCUSSED Opened None Closed None Discussed None LIST OF ACRONYTS USED AI-ARA As Low As Reasonably Achievable Code of Federal Regulations derived air concentrationICP-MS inductively coupled plasma mass spectrometer lntemational Uranium (USA) Corporation license condition monitoring well protection factor quality control radiation safety officer radiation work permit semiautogenous grinding Safety and Environmental Review Panel Standard Operating Procedure Thermoluminescent Dosimeter CFR DAC tuc LC MW PF QC RSO RWP SAG SERP SOP TLD o NU a N UNITED STATES CLEAR REGULATORY COMMISSIO BEGTOil "'':1i RYAII PLAZA DPIT'E SiTITE.:CC AirLlllGTOll rEXAS -rC11 o06.1 JuIy 9, 1998 b \\t \$$ ^,o.a-ii', : 't::l:l$ Harold R. Roberts, Executive Vice-President lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: NRC INSPECTION REPORT 40-8681198-02 Dear Mr. Roberts: This refers to the inspection conducted on June I -1 1 , 1998, at your White Mesa Mill near Blanding, Utah. The purpose of this inspection was to determine if activities were being conducted in accordance with NRC regulations and your license which authorizes uranium milling operations and 11e.(2) byproduct material disposal. The enclosed report presents the results of that inspection. The inspection disclosed that site operations were being conducted in accordance with NRC regulations.' The facility was properly staffed, and plant operations, radiation protection, radioactive waste management, and environmental protection programs had been properly implemented. ln accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter and its enclosure will be placed in the NRC Public Document Room. Should you have any questions concerning this inspection, please contact Mr. Louis C. Carson ll at (817) 860-8221 or Mr. Charles Cain at (817) 860-8186. Rdss A. Scarano, Director Division of Nuclear Materials Safety Docket No. 40-8681 License No. SUA-1358 Enclosure: NRC lnspection Report 40-8681/98-01 Sincerely, lnternational Uranium (USA) Corp. -2- cc Wenclosure: Mr. William Deal, Mill Manager lnternational Uranium (USA) Corp. 6425 South Highway 191 P.O. Box 809 Blanding, Utah 84511 Mr. William J. Sinclair, Director Utah Department of Environmental Quality Division of Radiation Control 168 North 1950 West Salt Lake City, Utah 84115-4850 Mr. Pat Mackin, Assistant Director Systems Engineering & lntegration Center for Nuclear Waste Regulatory Analyses 6220 Culebra Road San Antonio, Texas 78238-5166 ENCLOSURE U.S. NUCLEAR REGULATORY COMMISSION REGION IV Docket No. 40-8681 License No. SUA-1358 Report No. 40-8681/98-02 Licensee: lnternational Uranium (USA) Corporation (lUC) Facility:White Mesa Mill Location: San Juan County, Utah Dates:June 9 -11, 1998 lnspector: Louis C. Carson ll, Health Physicist Nuclear Materials Safety Branch 1 Division of Nuclear Materials Safety Region lV Approved By: Charles L. Cain, Chief Nuclear Materials Safety Branch 1 Division of Nuclear Materials Safety Region lV Attachment: Supplementary lnformation -2- EXECUTIVE SUMMARY lnternational Uranium (USA) Corporation NRC lnspection Report 40-8681/98-02 This inspection included a review of site status, management organization and controls, site operations, radioactive waste management, radiation protection, and environmental protection programs. Site Status and Operations Review . The site was being maintained in accordance with the NRC license and applicable NRC regulations for uranium mill sites (Section 1). . Site security, perimeter postings and security of licensed material were found to be maintained as required by License Condition 9.9, 10 CFR 20.1801, and 10 CFR 20.1902(e) (Section 1). Manaoement Oroanization and Controls . The licensee had established an organizational structure that agreed with the conditions of the license. Also, the licensee had established a procedures improvement program (Section 2). Radiation Protection . The licensee had implemented a radiation protection program that was found to be in accordance with requirements established in 10 CFR Parts 19 and 20 and the license (Section 3). . Areas of the radiation protection program that were reviewed and found to be acceptable included worker occupational dose determination, radiation work permit implementation, bioassay program, and the respiratory protection program (Section 3). Radioactive Waste Management . Radioactive waste management activities were being conducted safely and in accordance with the conditions of the license as well as NRC regulations (Section 4). Environmental Protection . A review of the licensee's environmental monitoring program and the licensee's semiannual effluent report for the second half of 1997 indicated that the licensee was in compliance with license requirements and 10 CFR 40.65. All sample results were less than the associated effluent release limits specified in 10 CFR Part 20 during 1997, and no adverse trends were identified (Section 5). 1.1 -3- Report Details Site Status and Operations Review (88020) Scope On May 10, 1997, Source Material License No.1358 was transferred to IUC to operate the White Mesa uranium mill and 11e.(2) byproduct disposal site. The NRC inspector reviewed the site status and the state of operations to determine: (1) if licensed activities were being conducted in accordance with the IUC license and applicable NRC regulations for uranium mill sites and (2) that operational controls were adequate to protect the health and safety of the workers and the members of the general public. Observations and Findings The White Mesa Mill is capable of producing 2,000 tons of yellowcake per day. During this inspection, the millwas shut down and in an outage. On April 3, 1998, the license ceased processing Cabot alternate feed material. Alternate feed material is material other than uranium ore. License Conditions (LC) 10.6 through 10.9 authorize receipt and processing of four alternate feed materials from three out-of-state firms. The licensee plans to resume processing the Cabot material and conventional uranium ore material from Colorado during July 1998. The licensee has not produced any yellowcake since January 1998. The site also produces other nonradiological products such as vanadium. Additionally, the White Mesa facility recycles alternate feed material in order to recover uranium, vanadium, and tantalum. During this inspection, the licensee was performing maintenance on uranium mill equipment and conducting housekeeping around the mill site during the outage. The most significant maintenance activity involved the replacement of the liner material in the semiautogenous grinding (SAG) mill. A facility tour was performed to observe activities in progress. Site perimeter postings, required by LC 9.9 and 10 CFR 20.1902(e), were noted to be in place at all entrances to the site. Site security was maintained by keeping the site access gate closed to prevent unauthorized access to the property. No significant health or safety concerns were identified during the tour. The inspector concluded that licensed material was secure within the site property as required by 10 CFR 20.1801 . Conclusion The site was being maintained in accordance with the IUC license and applicable NRC regulations for uranium mill sites. Site security, perimeter postings and security of licensed materialwere found to be maintained as required by License Condition 9.9, 10 CFR 20.1801 , and 10 CFR 1 902(e). No significant health or safety concerns were identified. 1.2 1.3 -4- 2 Management Organization and Gontrols (88005) 2.1 lnspection Scope The inspector reviewed the licensee's organization structure and management controls to determine: (1) whether functional responsibilities and personnel qualifications had been clearly established and fulfilled in accordance with the conditions of the license, and (2) what controls were in place to ensure compliance with NRC requirements. 2.2 Management Organization The organizational structure requirements are provided in LC 9.3. Also, the licensee provided details of its organizational structure to the NRC by a letter dated January 30,1997. The onsite staff consisted of 95 individuals and six contractors. The inspector determined that the licensee's organization and staff remained consistent with the license (Figure 3.1, "White Mesa Uranium Mill Organizational Chart"). 2.3 Site Procedures and Procedure Revisions ln accordance with LC 9.6, standard operating procedures (SOPs) are required to be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. Additionally, written procedures must be established for nonoperational activities to include in-plant and environmental monitoring, bioassay analyses, and instrument calibrations. An up-to-date copy of each applicable written procedure must be kept in the mill. The inspector noted that LC 9.6 requires that the RSO review and approve in writing all operational and nonoperational procedures before implementation and whenever a change had been proposed to assure that proper radiation protection practices were applied. Additionally, the RSO is required to perform a documented review of all operating procedures annually. The inspector found that reviews were being conducted. The inspector reviewed the following procedures: . SERP. Mill equipment SOPs. Bioassays. Environment Protection. Respiratory Protection. Radiation Work Permits (RWP) The licensee's implementation of the performance-based license provisions was reviewed to ensure that any changes made by the licensee did not negatively impact the licensing basis of the site. The NRC granted the licensee a performance-based license in March 1997. LC 9.4 allows the licensee, under the direction of the Safety and Environmental Review Panel (SERP), to make changes in the facility or processes, make 2.4 tr changes to procedures, or conduct tests and experiments not presented in the license application without prior NRC approval. Although the licensee had a SERP procedure for implementing LC 9.4, the procedure neither established SERP meeting frequencies nor set requirements for maintaining meeting records and distributing meeting minutes to responsible personnel. Additionally, provisions were not made for resolving SERP identified concerns. The corporate RSO and the mill manager were members of the SERP, and the site RSO was the chairman of the site As Low As is Reasonably Achievable (ALARA) Committee. The licensee, under the direction of the SERP, had undertaken an extensive site procedures revision program since the last inspection. The licensee had contracted a consultant to rewrite White Mesa procedures by August 1998. The licensee planned to have all revised procedures reviewed by the SERP. Additionally, the licensee stated that it would evaluate the need for detailed management procedures for governing the SERP, the ALARA committee, administrative control, problem identification, and quality assurance matters. The environmental protection procedures and mill equipment SOPs were in draft form and were scheduled to be reviewed and approved by the SERP in the following weeks. The inspector found that those revised procedures represented a substantial improvement from the site's current procedures. However, many radiation protection procedures had not been revised and needed updating. For example, IUC had not developed specific procedures for RWPs or for the respiratory protection program. The bioassay procedure had not been updated with the current methods used to analyze bioassays. The SERP had not formally reviewed the results of the bioassay program changes. The inspector also observed that development of White Mesa procedures was not controlled by any administrative program. ln some instances, White Mesa staff were still using radiation protection procedures that were written by a previous owner. No violations were identified during the inspection. However, weaknesses noted above were being addressed by the licensee as a part of the procedures improvement program. Nonetheless, the inspector determined that IUC was raising the quality standards of the White Mesa operation by the procedures improvement program and concluded that the licensee was in compliance with LC 9.6. Conclusions The licensee had maintained organization and staff that agreed with the requirements of the license. The licensee's SERP procedure improvement program enhanced the quality standard of the White Mesa operation and was found to be in compliance with LC 9.6. 3.1 -6- Radiation Protection (83822) lnspection Scope Portions of the licensee's radiation protection program were reviewed to verify compliance with the conditions of the license as well as the requirements of 10 CFR Parl20. Observations and Findings Occupational Radiation Exposures The licensee's internal and external radiation exposure programs were reviewed. The inspector also reviewed personnel exposures assoclated with the SAG mill repair project. The licensee's program included the issuance of thermoluminescent dosimeters (TLD), sampling for airborne radioactivity using high volume air samplers and lapel air samplers, and use of urine bioassays. The licensee reported occupational radiation exposures (total effective dose equivalent) based on TLD and air sample results. Bioassay results were used to validate the air sampling program. The licensee maintained each worker's exposure data in a detailed, computerized spreadsheet that included all the worker's air sampling data, exposure time, and applicable derived air concentrations (DAC) for specific locations in the facility. During 1997 the licensee had issued 121 TLDs to workers. Five workers had external exposures between 250 and 750 millirems, 9 workers had exposures betwelen 100 and 249 millirems, and 107 workers had external radiation exposures of less than 100 millirems. During 1997, the highest committed effective dose equivalent was 950 millirems. The inspector determined that occupational exposures during 1997 were less than the 5000 millirems annual limit in 10 CFR 20.1201. The inspector examined internal exposure records associated with the SAG mill project. Air sampling records indicated that uranium-238 airborne concentrations inside of the SAG mill had been measured as high as 892 percent (5.35E-10 microcuries per cubic centimeter (pCi/cc)) of the DAC value in late May 1998 and 551 percent (3.31E-10 ;rCi/cc) of the DAC value in June 1998. The DAC value for uranium-238 in air is 6.0E-11 pCi/cc. The inspector reviewed the air sample analysis, worker residence times, protective measures, and internal exposure calculations for 12 SAG mill project workers. At the time of the inspection, SAG mill workers were being issued full-face respirators with a protection factor (PF) of 50. Early in the project, workers had been issued positive air supply respirator protection with a PF of 1000. The inspector determined that the licensee's calculations of potential worker internal exposure were adequate. lnternal exposures were found to be well below regulatory limits because the licensee had utilized respiratory protection equipment that was consistent with airborne concentrations inside the SAG mill . 32 b -7- Radiation Work Permits The inspector reviewed the licensee's radiation work permit (RWP) program. The inspector noted that many of the licensee's procedures required that workers obtain an RWP from the radiation protection staff prior to performing work with a significant potential for radiological exposure. The inspector noted, however, that the licensee had not established a specific procedure for RWPs. Some general instructions for RWPs were located in Section 3.5.2 of the ALAM program that was written by the previous owner. The SAG mill repair project was underway at the time of the inspection and was being conducted under RWPs-330 and 331. The inspector reviewed RWPs and found that both RWPs included the following elements: job description, requirements for radiological monitoring and sampling protective equipment, respiratory protection equipment, ALARA considerations, and a listing of personnel who were assigned to the RWP. The inspector's observation of workers performing the SAG mill project revealed that the workers were complying with RWP instructions. The inspector determined that the RWP instructions were adequate to preclude unnecessary personnel exposures. Bioassays The inspector reviewed the licensee's bioassay program. The licensee primarily used urinalysis on a monthly basis for uranium bioassay. However, for workers involved in work under certain RWPs, additional samples were required. According to the license application, the licensee analyzed urine samples by in-house fluorometrics, but the inspector found that they stopped using fluorometric analysis as the principal analytical method in February 1998. According to the licensee, the fluorometric analysis equipment was obsolete, no longer reliable, and replacement parts were hard to procure. Therefore, the chemistry department started using an inductively coupled plasma mass spectrometer (ICP-MS) for urinalysis. The licensee showed the inspector that ten percent of the urinalysis samples were sent to a certified laboratory as part of their quality control (QC) program. The inspector reviewed the licensee's reports of investigations into potentially elevated bioassay results from 1997 and 1998. The licensee's bioassay investigation levelwas 15 micrograms per liter. The licensee had investigated bioassay results that were analyzed during the transition from the fluorometric method to the ICP-MS method. Based on the inspector's reviews and comparisons of ICP-MS, flurometric, and QC bioassay results, the inspector determined that the licensee's bioassay program was in compliance with license requirements. Respiratory Protection Program The inspector reviewed the licensee's respiratory protection program. The inspector observed workers wearing full-face respirators and half-face respirators during the SAG mill project. According to the RSO, the licensee did not take credit for the half-face respiratory PF during radiological work. However, credit was taken for use of full-face C. d. -8- and positive air supply respirators during radiological work that had a significant potential for exposure like the SAG mill project The inspector found that the site maintained the respiratory protection program manual from a previous owner. The inspector reviewed the training records and medical certification records for some of the employees that had been issued respiratory protection equipment. The records certified all the workers who were qualified to wear respiratory protection equipment. The inspector toured the area where the licensee maintalned and issued respiratory protection equipment. The inspector determined that the licensee's respiratory protection program was adequate, and the selection of respiratory protection equipment was deemed appropriate for airborne concentrations in the mill. 3.3 Conclusions The licensee had implemented a radiation protection program that was found to be in accordance with requirement established in 10 CFR Parts 19 and 20 and the license. Areas of the radiation protection program that were reviewed and found to be acceptable included worker occupational dose determination, radiation work permit implementation, bioassay program, and the respiratory protection program. 4 Radioactive Waste Management (88035) 4.1 lnspection Scope The objective of this portion of the inspection was to verify that site radioactive waste management activities were being conducted in accordance with applicable regulations and the conditions of the license, and to ensure that controls were adequate to protect the health and safety of the workers and the members of the general public. 4.2 Observations and Findings During the site tour, the licensee's disposal cells were observed and found to be processing liquid waste through evaporation and recycling. No abnormal conditions, such as leaks or berm failures, were observed at any of the cells during the site tour. LC 10.5 authorizes the licensee to dispose of byproduct materialgenerated at licensed in-situ leach facilities subject to several conditions, including a 5000 cubic yard limit from a single source. The licensee is also required to submit an annual summary to the NRC of waste disposed of from off-site generators in accordance with LC 10.5(D). The licensee's most current annual summary dated April 6, 1998, was reviewed by the inspector. This document summarized the waste received during 1997 from offsite waste generators. The total amount of waste received was within the limit specifled in the license. 43 5.1 -9- Conclusions The licensee appeared to have maintained radioactive waste in accordance with the license and NRC regulations. No health or safety issues were identified. Environmental Monitoring (88045) lnspection Scope The environmental monitoring program was reviewed to assess the effectiveness of the licensee's program and to evaluate the effects of site activities on the local environment. Observations and Findings Environmental Monitoring Program Overview LC 11.2 states that the licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application. Also, the results of the environmental monitoring program are required to be submitted to NRC on a semiannual basis in accordance with LC 11.3(C) and 10 CFR 40.65. The semiannual effluent report for the second half of 1997 was submitted to the NRC on March 2, 1998, and reviewed during this inspection. The results of the 1997 effluent report were compared to the 1996 reports to ascertain whether any adverse trends existed. Air Particulate Sampling The licensee collected particulate air samples at four locations around the site. Sample filters were required to be changed weekly and analyzed for natural uranium, radium-226, thorium-230, and lead-210 quantities. Sample results for the second half of 1997 were reviewed. Sample results were less than 7 percent of the respective 10 CFR Part20, Appendix B, effluent concentration limits. Also, the laboratory's lower limit of detection was equal to or better than the limits specified in LC1 1 .2(D). The 1997 sample results were compared to the 1996 sample results, and no adverse trends were noted in this area of the environmental monitoring program. Stack Sampling The licensee is required to sample the stack emissions for natural uranium content on a quarterly basis during plant operations. Sampling for total particulates, thorium-230, radium-226, and lead-210 content is required on a semiannual basis. Also, LC 11.2(A) requires the licensee to determine the stack flow rates. Yellowcake stacks were in service during the second half of 1997 and were sampled. The licensee also reported the results of stack samples in the semiannual effluent report for the second half of 1997. The inspector determined that licensee calculation of stack flowrates, radioactive material release rates, and radioactive material concentrations were performed adequately. 5.2 a. b. c. d. -10- Ambient External Gamma Exposures Environmental TLDs were located at five sample stations. One duplicate sample was used at one station for quality control purposes. The TLDs were replaced and analyzed on a quarterly basis. The sample results for 1997 were reviewed during the inspection. The TLD ambient gamma exposure measurements were comparable to the background radiation and were comparable to the 1996 TLD results. No adverse trend was observed. Surface Water and Groundwater Samples Section 5.5 of the license application requires surface water samples to be obtained from two locations. Quarterly samples had been collected from Westwater Canyon and Cottonwood Creek. The samples were analyzed for natural uranium, radium-226, and thorium-230 concentrations, as well as for the quantity of total dissolved and suspended solids. Sample results were found to be less than the natural uranium effluent concentration limit specified in Appendix B of 10 CFR Part20. Also, the 1997 sample results were noted to be comparable to the 1996 sample results. LC 11.3(C) requires monitoring wells to be sampled quarterly and analyzed for chloride, potassium, nickel, and uranium concentrations. The sample results for the fourth quarter of 1997 were reviewed. The highest natural uranium concentration (0.05 milligrams per liter) was measured in a sample obtained from well MW-14. There were no deleterious trends. Conclusions A review of the licensee's environmental monitoring program and 10 CFR 40.65 report indicated that the licensee was in compliance with license requirements. Exit Meeting Summary The inspector presented the preliminary inspection results to licensee representatives at the conclusion of the inspection on June 1 1, 1998. Licensee representatives acknowledged the flndings as presented. The licensee did not identify any information reviewed by the inspector as propriety information. e. 5.3 6 ATTACHMENT SUPPLEMENTAL INFORMATION PARTIAL LIST OF PERSONS CONTACTED Licensee R. Berg, Radiation Safety Officer (RSO) W. Deal, Mill Manager W. Palmer, Radiation Technician M. Rehmann, Environmental Manager and Corporate RSO INSPECTION PROCEDURES USED lP 83822 Radiation ProtectionlP 88005 Management Organizational Controls lP 88020 Operations ReviewlP 88035 Radioactive Waste ManagementlP 88045 Environmental Monitoring ITEMS OPENED. CLOSED AND DISCUSSED Opened None Closed None Discussed None LIST OF ACRONYMS USED As Low As Reasonably Achievable Code of Federal Regulations derived air concentration inductively coupled plasma mass spectrometer lnternational Uranium (USA) Corporation license condition monitoring well protection factor quality control radiation safety officer radiation work permit semiautogenous grinding Safety and Environmental Review Panel Standard Operating Procedure Thermolum inescent Dosimeter ALARA CFR DAC ICP-MS IUC LC MW PF QC RSO RWP SAG SERP SOP TLD