DRC-2003-001165 - 0901a06880adecd8

IurBnNerro*J)
UneNruv (use)
ConponATroN
Independence Plaza, Suite 950 . 1050 Seventeenth Street o Denver, CO 80265 o 303 628 7798 (main) . 803 889 4\25 (fax)
June 4, 2003
VIA FACSIMILE & FIRST CLASS MAIL
Mrs. Susan M. Frant
Chief, Fuel Cycle Facilities Branch
Division of Fuel Cycle Safety & Safeguards
U.S. Nuclear Regulatory Commission
Mail Stop T-8A33, 2 White Flint North
11545 Rockville Pike
Rockville, MD 20852 -2738
RE: FOLLOW-UP TO MAY 9,2003 LETTER ON
MATERIALS LICENSE SUA-1358 _ WHITE
Dear Mrs. Frant:
VANADIUM PRODUCTS
MESA URANIUM MILL
ln response to your letter of May 9,2003,International Uranium (USA) Corporation ("IUSA") is
very pleased that this issue has finally been resolved in a matter acceptable to all parties. As noted in
your letter, the White Mesa Mill (the "Mill") has minor quantities ofvanadium that contains uranium
in quantities greater than 0.05 percent by weight, i.e., the "contaminated" vanadium. In addition to
the contaminated vanadium, the Mill has over 600,000 lbs. of vanadium as black flake and vanadium
pregnant liquor.
With regard to the contaminated vanadium, the Mill will keep this inventory in the Mill's restricted
area in a secure location in sealed drums in anticipation of a future processing campaign whereby the
vanadium can be processed to reduce the uranium content to below 0.05 percent by weight. If no
opportunity presents itself to process the vanadium, the vanadium will be placed in the tailings cells
as part of the final Mill reclamation plan.
-ftA{f"'
'S v5E -"s
id{\o
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NRC Vanadium Respon."O
June 4,2003
Page 2 of2
With regard to the other vanadium products, IUSA intends to sell this product; however, as detailed
in previous correspondence, prior to the sale of the vanadium product IUSA will implement a
standard operating procedure which will ensure that any vanadium that is released from the Mill's
restricted area complies with applicable l0 cFR Part20 requirements.
If you have any further questions or require clarification on the above please feel free to contact me
at [phone] or David Frydenlund at [phone].
Sincerely,
t_.:_\-<.)
Ron F. Hochstein
President & Chief Executive Offrcer
lntemational Uranium (USA) Corporation
cc: William von Till - NRC
William Sinclair - UDEQ
Tom Rice - Ute Mountain Ute Tribe
Terry Brown, US EPA Region VIII
David Frydenlund
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JlJtt-01-03 l0:51 rJ[HK^O*^,
Un q,MuM (usA)
ConronATroN
T-361 P.0ll03 Job-68430338e1rb
lndependencePlaza,Suite950 o 1050seventeenthSrreer o Denver,COg0265 .303d2g2?gg(main) r 3033g94125(fax)
I,ACSIMILE TRANSMITTAL
TO: Susan Frant FAx No: [phone]
U.S. Nuclear Regulatory Commission I'HoNENo: [phone]
FROM: Ron F. Hoctrstein DATE: June4,2003
lnternational Uraniurn (USA) Corporation PACE I OF: 3
IF ALL PAGES ARE NOT RECEIVED, PLEASE CALL: Monica L. HuITn
PHoNENo: [phone]
DiStribution List:
Wtliam von Till
,l{Villiro, Sinclair
Tom Rice
Terr)'Brown
[{tk
ANT/CONFIDENTIAL: FAXmos @
uqt \rt lll9
:Tff]ftt?: I:,:f$-".l:nhoy 1r fax numbel shown above if you arc not rhc addrcsscs ar someonc rcsponsibte for delivcring ir ro the
T-361 P.02/03 Job-604
UueNtul,r (usn)
ConronnuoN
lndepentlerrce Plaza, Sr.rite 950 r 1(80 Severrteccnth Street . Dcnvor, CO 80S65 r 303 628 7798 (rnairr) o 303 389 41.25 (frrx)
June 4,2003
vIA FA.C$,IMILE & FIRqT CLASS MAIL
Mrs. Susan M. Frant
Chief, Fuel Cycle Facilities Branch
Division of Fuel Cycle Safety & Safeguards
U.S. Nuclear Regulatory Commission
Mail Stop T-8A33, 2 White Flint North
11545 Rockville Pike
Rockville, MD 20E52-2738
RE: FOLLOW-UP TO MAY 9,2003 LETTER ON VANADIUM PRODUCTII
MATERIALS LICENSE SUA.135E _ WHITE MESA URANIUM MILL
Dear Mrs. Frsnt:
In response to your letter of May 9, 2003, International Uranium (USA) Corporation ("IUSA") is
very pleased that this issue has funally been resolved in a matter acceptable to all parties. As noted in
your letter, the White Mesa Mill (the "Mill") has minor quantities of vanadium that contains uraniurn
in quantities greater than 0.05 percent by weight, i.e., the "contaminated" vanadium. In addition to
the contaminated vanadium, the Mill hasover600,000lbs. ofvanadium asblack flakeandvanadium
pregnant liquor.
With regard to the contaminated vanadium, the Mill will keep this irrventory in the Mill's restricted
area in e secufe location in sealed drums in anticipation of a futurc proccssing campaigr, whoreby the
vanadium can be processed to reduce the uranium content to below 0,05 percent by rveight. If no
opportunity presents itself to process the vanadium, the vanadium will be placed in the tailings cells
as part of the final Mill reclamation plan,
ft'.'#,oil.,
30338e4r5J UN-04-03
r JUl{-04-03 l0:52 From:lUC
I
NRC Vanadium Response
June 4, 2003
Page 2 of2
30338s45 T-361 P.03/03 Job-684
With regard to the other vanadium products, ruSA intends to sell this product: however, as detailed
in previous correspondence, prior to the sale of the vanadium product IUSA will i:nplement a
standard operating procedure which will ensure that any vanadium that is released frorn the Mill's
restricted area complies with applicable l0 CFR Part 20 requirements.
If you heve any furthet questions or require clarification on the above please feel free t(r contaot me
at [phone] or David Frydenlund at (303) 3894130.
Sincerely,
)<_ q--
Ron F. Hochstein
President & Chief Executive Officer
lnternational Uranium (USA) Corporatic n
cc: William von Till - NRC
William Sinclair - UDEQ
Tom Rice - Ute Mountain Ute Tribe
Torry Brown, US EPA Region VIII
David Frydcnlurtd
UNITED STATES
EAR REGULATORY COMMISSION
WASHtNGTON, D.C. 20555_OOOI
May 8, 2003
Ms. Michelle Rehmann, Environmental Manager
lnternational Uranium (IUSA) Corporation
lndependence Plaza, Suite 950
1050 Seventeenth Street
Denver, Colorado 80265
SUBJECT: FOLLOW-UP TO JULY 2T,2OOO INSPECTION VANADIUM PRODUCTS
MATERIALS LICENSE SUA-1358 -- WHITE MESA URANIUM MILL
Dear Ms. Rehmann:
On July 27,2000, the NRC completed an inspection at your White Mesa Mill near Blanding,
Utah. Although the NRC does not license the vanadium circuit at the Mill, the vanadium circuit
falls within the "restricted area" and therefore is subject to NRC inspection for potential
radiological exposures. The inspection revealed that some vanadium black-flake drums were
contaminated with elevated levels of uranium, i.e., the "contaminated" drums of vanadium
black-flake contained uranium greater than 0.05 percent by weight.
ln response to this information, you committed to hold the "contaminated" drums until this issue
is resolved. We received yourApril 18,2001 submittal describing howyou believe the
contamination occurred. You also proposed additional mill procedures to ensure that all
vanadium products leaving the Mill site contain less than 0.05 percent uranium and/or thorium
by weight, and comply with applicable 10 CFR Part 20 requirements. We have discussed this
issue with you in the interim and have kept you apprized of the staff's review.
Based on your submittal and our discussions, we agree with the proposed procedures outlined
in your April 18ft letter, and request that these procedures be implemented immediately. Any
vanadium product that can be released based on these procedures may be shipped off-site for
sale at this time, excluding the above mentioned "contaminated" vanadium black-flake drums.
As we discussed, a proposal to address the "contaminated" vanadium black-flake drums should
be submitted within 30 days of this letter.
ln accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter 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 NRC Web site at http://www.nrc.gov/NRC/ADAMS/index.html (the Public
Electronic Reading Room).
lf you have any questions regarding this letter, please contact William von Till, the NRC Project
Manager for the White Mesa mill, at [phone] or by e-mail to [e-mail].
o
NUCL
lf you have any questions regarding this letter or the enclosures, please contact William
vonTill, the NRC Project Manager for the White Mesa mill, at (301) 41 5-6251 or by e-mail
to [e-mail].
Sincerely,
lRAl
E*,*Tnfir,"tr
Susan M. Frant, Chief
Fuel Cycle Facilities Branch
Division of Fuel Cycle Safety
and Safeguards
Office of Nuclear Material Safety
and Safeguards
Docket No. 40-8681
suA-1358
cc: W. Sinclair, UT
Tom Rice, Ute Mountain Ute Tribe
Terry Brown, US EPA Region Vlll
lNrrnNerro*otO
UneNruu (use)
ConponertoN
Independence Plaza, Suite 950 . 1050 Seventeenth street . Denver, CO 80265 . 303 628 7798 (main) . 303 389 4125 (fax)
April 18,2001
Vie Overnisht Mail
Mr. Phillip Ting, Branch Chief
Fuel Cycle and Safety and Safeguards Branch
Division ofFuel Cycle Licensing
Office ofNuclear Materials Safety and Safeguards
U.S. Nuclear Regulatory Commission
2 White Flint NorttU Mail Stop T-719
I1545 Roclcville Pike
Roclrville, MD 20852
Re: NRC Regulations Applicable to the Release of Vanadium Product from the
White Mesa Mill Site, and Proposed Mill Procedures
DearMr. Ting:
I. INTRODUCTION AI\ID SUMMARY
This letter reviews NRC regulations that are applicable to radionuclides associated with
vanadium product produced at International Uranium (USA) Corporation's ('IUSA's")
White Mesa uranium mill (the "Mill"), and the procedures that will be followed at the
Mill to ensure that the vanadium product that leaves the Mill site is in compliance with all
such regulations.
In summary, it is IUSA's position that NRC does not have jurisdiction over vanadium
product produced at the Mill that contains less than 0.05% source material by weight.
However, under l0 C.F.R. PafiZ0 the Mill must ensure that any product that leaves the
licensed area of the Mill site is not inappropriately affected by licensed material.
Accordingly, IUSA proposes additional procedures to be followed at the Mill to ensure
that all vanadium products leaving the Mill site contain less than O.OSyo source material
by weight and comply with the applicable l0 C.F.R. Part2D requirements.
Mr. PhitpTing
April 18,2001
Page 2 of 10
2. BACT(GROUNI)
During the most recent mill run, which was conducted in 1999, the Mill processed
conventional ores from uranium/vanadium mines in the Colorado Plateau mining district
for the recovery of uranium and vanadium. Most of the vanadium produced was in the
form of "blackflake," although some vanadium was in the form of "vanadium pregnant
liquor" ('VPL"), which is an intermediate liquid product that is extracted from the
vanadium circuit prior to the oxidation and fusing process. VPL, if processed further in
the vanadium circuit, becomes blackflake. Ammonium Metavanadate ("AM\I') is
another intermediate product in the form of a powder which is extracted from the process
prior to the fusion stae, but after further processing of the VPL in the oxidation circuit.
No AMV was produced in the last mill run as a final product. Blackflake is shipped in 55
gallon metal drums in lot sizes of 66 drums. There is approximately 550 lbs. of
blackflake per drum. VPL is typically shipped as a liquid in bulk in tanker trucks.
All vanadium is produced from the uranium raffinate stream after it leaves the uranium
solvent extraction circuit at the Mill.
During the 1999 mill run, after all of the conventional ore had been processed, the Mill
re-processed certain vanadium clean-up materials (the "Cleanup Materials") from
previous mill runs (performed by the previous operator of the Mill) that had been stored
at the Mill site since 1988. The Cleanup Materials were re-processed through the fusion .
circuit only to produce blackflake. As the Cleanup Materials were only fused, no VPL or
AMV were produced from the re-processing of the Cleanup Materials.
During routine alpha contamination surveys on the exterior surfaces of certain vanadium
blackflake drums produced during the 1999 mill run, as the drums were being prepared
for shipment to a vendor, it was discovered that there was elevated radioactivity coming
from some of the drums. Mill staffheld those drums back for further analysis, and it was
determined that the blackflake in question had been produced from re-processing the
Cleanup Materials. ruSA believes there is a Iikelihood that some of the Cleanup
Materials somehow contained minor quantities of uranium prior to their being re-
processed, and that some of this uranium found its way into this blackflake.
These facts were explained to an NRC Inspector at the July 2000 inspection of the Mill,
and are referred to in the NRC's September 6, 2000Inspection Report and Notice of
Violation, as well as in other correspondence and discussions between ruSA and NRC.
ruSA has agreed not to ship any blackflake or VPL offof the Mill site until the question
of what constitutes acceptable levels of radioactivity in the vanadium products is
determined
Mr. PhilipTing
April 18,2001
Page 3 of l0
3. APPLICABLE NRC REGULATIONS
3.1. 10 C.F.R Part 40 and the Licensing Requirements of Section 62 of the
Atomic Energy Act
As detailed in the August 10, 2000 letter from Shaw Pittman included as part of
Attachment A to this letteq NRC's jurisdiction under the Atomic Energy Act (the
"AEA") is material-based; that is, the AEA grants NRC jurisdiction to regulate only
source, special nuclear and byproduct material. 42 U.S.C. $ 2201. Since operations at
the Mill do not involve special nuclear material or I le.(l) byproduct material, NRC's
jurisdiction over the Mill extends only to activities involving source material or lle.(2)
byproduct material. Further, as the vanadium products are not waste products they
cannot be, and to date never have been considered or licensed as, lle.(2) byproduct
material.
With respect to source material at the Mill, NRC's authority is further circumscribed by
Section 62 of the AEA which expressly provides that "licenses shall notbe required for
quantities of source material which, in the opinion of the Commission, are unimportant."
42 U.S.C. S 2092 (emphasis added). NRC has taken the position that any chemical
mixture, compound, solution, or alloy in which the uranium or thorium content is less
than 0.05% by weight is considered to be an "unimportant quantity'' and is exempt from
regulation as source material. l0 C.F.R. $ 40.13. Therefore, the requirement to have a
license and the requirements of l0 C.F.R. Part 40 only apply to vanadium products if the
products contain 0.05% or greater source material by weight. It is therefore necessary for
the Mill to have procedures in place to ensure that vanadium products do not contain
0.05% source material by weight. Procedures to be established by the Mill to ensure that
the vanadium products produced at the Mill do not exceed these source material levels
are discussed in Section 4.1 below.
3.2. Labeling Requirements of Part 20.
The labeling requirements set out in l0 C.F.R. $20.1904 apply only to packages
containing licensed material. Therefore, so long as the vanadium products contain less
than 0.05% source material by weight, these requirements do not apply. The procedures
discussed in Section 4.1 below will ensure that no vanadium products will leave the Mill
site if they contain O.Osyo source material by weight. The only potential circumstance in
which vanadium products that contain 0.05% source material would leave the Mill site
would be if the products were to be shipped to another site that is licensed to accept
source material, in which case the labeling requirements of l0 C.F.R. $20.1904 would
apply to those shipments of vanadium products. ruSA is currently unaware of any such
circumstances having taken place in the past or that are likely to take place in the future.
3.3. Dose to the Public Requirements of 10 C.F.R Part 20.
The only other provisions of l0 C.F.R. Part 20 that are potentially relevant to the
shipment of vanadium products off site are the requirements set out in l0 C.F.R.
Mr. PhilipTing
April 18,2001
Page 4 of l0
$20.1101, $20.1301 and $20.1302 which require that a licensee must have a radiation
protection program in place that, among other things, ensures that the total effective dose
equivalent to individual members of the public from the licensed operation does not
exceed 0.1 rem (l millisievert) in ayear, and 0.002 rem (0.02 millisievert) in any one
hour, in any unrestricted area.
It is ruSA's position that, as the requirements set out in l0 C.F.R. $20.1301 and
$20.1302 apply only to the "licensed operation", and as vanadium products that contain
less than 0.05% source material are not licensable under the AEd these requirements do
not apply to vanadium products that contain less than 0.05% source material by weight, if
the source material originates from the natural ores or feed materials from which the
vanadium is extracted.
However, it is possible that vanadium products and/or containers of vanadium product
could, in unusual circumstances, become contaminated by licensed operations while at
the Mill site. Therefore, ruSA will put procedures in place at the Mill to ensure that
when containers of vanadium product leave the Mill site the requirements contained in l0
C.F.R. $20.1301 and $20.13 02 aresatisfiedr.
Since the ores from which the vanadium products are made contain uraniurq some
uranium may somehow end up in the final vanadium products. This, however, is not a
situation where materials from licensed operations have been added to contaminate the
vanadium products. Rather, the uranium is an element that co-exists naturally with the
uranium in Colorado Plateau ores. So long as this natural uranium element does not
result in the vanadium products containing 0.O5yo or more source material content, the
requirements of l0 C.F.R. $20.1301 and $20.1302 do not apply. However, if source
material from licensed operations is added to the variadium products or if there is external
source material contamination on the vanadium product drums, originating from licensed
operations at the site, then the requirements of l0 C.F.R. $20.1301 and $20.1302 would
be applicable.
To ensure that no such potential contamination of vanadium products from licensed
activities at the Mill would result in a violation of l0 C.F.R. $20.1301 and $20.1302, the
Mill proposes to adopt the procedures set out in section 4.2 below to ensure protection to
human health and the environment.
I This is similar to the requirement that a piece of equipment (originally made offsite by an unlicensed third
paay) trat leaves the restricted area at the Mll must be decontaminated and surveyed. The uranium
content of the piece of equipment is irrelevant (except to the extent it may contribute to a radiation dose to
the public), but the piece of equipment must nevertheless be decontaminated and suweyed to ensure that it
has not been contaminated by the licensed activities at the Mill. Once the piece of equipment meets the
criteria for unrestricted release from the Mill, it can be released unconditionally, wen though the metals
originally used to make the piece of equipment may contain up to but less than 0.05% soruce material.
Mr. PhilipTing
April 18,2001
Page 5 of 10
4. PROCEDURES TO BE FOLLOWED BY THE MILL
The Mill proposes to adopt the following procedures to ensure that the applicable laws
and regulations discussed above are complied with:.
4.1. Compliance with the Requirements of 10 C.F.R 540.13
In addition to the procedures detailed below in Section 4.2 relating to compliance with
the relevant 10 C.F.R. Pafi 20 requirements, the Mill will follow the following
procedures.
4.1.1. Vanadium Blackflake Product
As discussed above, vanadium blackflake is packaged in 55 gallon sealed metal drums
and is sold in lots of 66 drums totaling approximately 36,300 lbs. The primary use of the
blackflake is in the production of ferrovanadium. Over 90Yo of the world's production of
vanadium is used in the manufacture of steel and other metal alloys. Vanadium is
typically added in percentages ranging from 0.05 to 0.15 percent of the steel or alloy.
Each lot of vanadium is added to the ferrovanadium conversion process as a complete lot.
The Mill will take a composite sample for each lot of vanadium blackflake, comprised of
one grab sample from each 55 gallon drum in the lot. The composite sample will be
assayed for total uranium and total thorium. No lot that has a composite sample with a
source material content of 0.05% uranium and/or thorium or greater will leave the Mill
site. If for any reason vanadium blackflake is not sold in a 66 drum lot, then the
composite sample will be made up from such number of 55 gallon drums as make up
such end-use quantity. Only quantities of vanadium blackflake that have a composite
sample with less than 0.05% source material will be permitted to leave the Mill site.
4.1.2. VPL Product
As discussed above, \IPL is a liquid that is sold and delivered in tanker trucks. The
quantity of VPL to be deposited into each tanker truck will be segregated and a sample
taken and assayed for total uranium and total thorium prior to loading the VPL into the
tanker truck. Only quantities of VPL that have a source material content of less than
0.05% will be permitted to leave the Mill site.
4.1.3. AMV Product
AMV was only sold as a final product during the 1988 - 89 milling campaign. Since that
time all of the AMV produced as an intermediary product was further processed to
produce blackflake. In the event that AMV product is sold it will typically be packaged
in one ton super sacs. A composite sample will be prepared for each super sac and
assayed for total uranium and total thorium prior to sale. Only quantities of AIvtV that
have a composite sample with less than 0.05% source material will be permitted to leave
the Mill site.
Mr. PhilipTing
April 18,2001
Page 6 of l0
4.1.4. Other Products
In addition to uranium and vanadiunq the Mill is capable of extracting other metals, such
as tantalum, scandiunL zirconium and titanium from natural ores and alternate feed
materials. These metals are generally extracted using the vanadium circuit at the Mill.
The same analysis of the applicable laws and regulations discussed above for vanadium
product apply in exactly the same manner to these other metals. When other such metals
will be extracted, the Mill will follow procedures, similar to those discussed above for
vanadium product, to ensure that no sale lots of such metals will leave the Mill site if the
source material content in such sale lot of metals is 0.05% or gfeater.
4.2. Compliance with the Requirements of l0 C.F.R 520.1301 and $20.1302
In addition to the procedures detailed above relating to compliance with the relevant l0
C.F.R. Part 40 requirements, the Mill will implement the following procedures.
4.2.1. General
l0 C.F.R. g20.1302(a) provides that the licensee shall make or cause to be made, as
appropriate; ru*.yr of radiation levels in unrestricted and controlled areas and
,aaiouctir" materials in eflluents released to unrestricted and controlled areas to
demonstrate compliance with the dose limits for individual members of the public in
$20.1301 (l mrem per year, and 0.002 rem in any one hour in unrestricted areas). l0
C.f.n. 920.1302(b) provides that the licensee shall show compliance with the annual
dose limit in $20.1301by either:
a) Demonstrating by measurement or calculation that the total effective dose
equivalent to the individual likely to receive the highest dose from the
licensed operation does not exceed the annual dose limit; or
b) Demonstrating that- (i) The annual average concentrations of radioactive material released
in gaseous and liquid eflluents at the boundary of the unrestricted
area do not exceed the values specified in Table 2 of Appendix B
to Part 20; and(iD If an individual were continuously present in an unrestricted areq
the dose from external sources would not exceed 0.002 rem (0.02
mSv) in an hour and 0.05 rem (0.5 mSv) in ayear.
Of these requirements, the proposed Mill procedures are intended to satisfy the
requirements set out in paragraph a) above by ensuring that the total effective dose
equivalent to the individual likely to receive the highest dose from the vanadium products
does not exceed the annual and hourly dose limits. In developing the proposed
procedures outlined below, the Mill has made a determination as to the individual likely
io receive the highest dose from the vanadium products, and, in so doing has taken into
account the use and manner ofuse ofthe vanadium product by purchasers ofvanadium
from the Mill. In developing these procedures, ruSA has retained SENES Consultants
Mr. PhilipTing
April 18,2001
Page 7 of l0
Limited ("SENES") as independent radiation and health physics experts. Included as
Attachment B to this letter is a copy of the memorandum prepared by SENES.
4.2.2. Summary of SENES'Findings
As described in the attached memorandum from SENES, it is possible to estimate the
doses to transport workers and the public arising from the shipping of vanadium products
from the Mill. In briefi, using data from alpha spectroscopy the likely range of gamma
dose rates from blackflake product were estimated by SENES for two cases which
bracket actual experience.
For uranium and thorium set at 0.043Yo and 0.005% respectively, colresponding to a total
source material content of 0.048%, two sets of calculations were performed. In the first
case ("Caso l"), lJ-238 and all of its decay products were assumed to be in equilibrium as
were Th-232 and all of its decay products. In the second case ("Case2"), the Th-230
activity concentration (and all of the decay products following Th-23O were assumed to
be in equilibrium) were assumed to be (the extreme of measured data) 55.6 times the U-
238 activity along with Th-232 in equilibrium with all of its decay products.
Four exposure scenarios were considered by SENES: a Mill worker loading vanadium
product for transport, a truck driver, a member of the public living near a rest stop used
by the truck driver and a worker in the ferrovanadium plant where the Mill's vanadium
blackflake product is further processed.
SENES concludes that the dose limits of 0.1 remly (l mSv/y, 1000 pSv/y) and 0.02
mSv/hr (20 pSv/hr) are not exceeded in any of the Case I scenarios described above. In
other words, vanadium product that contains source material below the 0.05% by weight
threshold, when in equilibrium, would not be expected to result in the potential for
overexposure to members of the public. However, in some situations vanadium product
that contains less than 0.05% by weight source material that is not in equilibriunq can
result in the potential for overexposure to members of the public. SENES concludes that
it is therefore necessary for the Mill to scan each drum or other package of vanadium
product before it is shipped from the Mill, to ensure that the dose from the drum or other
package, whether alone or as part of a lot, will not cause a potential overexposure to
members of the public. Procedures that address these issues are discussed in Section 4.2
below.
By backcalculating from the dose to the truck driver, estimated to receive the highest
dose, for Case 2, SENES calculated the maximum contact dose rate on vanadium product
that would still result in the dose to the public requirements not being exceeded. The
average contact dose rate per lot, over all sixty-six 55 gallon drums in the lot, that would
result in an annual effective dose equivalent of 1,000 pSv/y to the truck driver was
calculated by SENES to be 9.07 pSv/h (907 pR/h). Using the same method,
corresponding average contact dose rates on the drums were calculated for doses to the
public and ferrovanadium workers.
Mr. Philip Ting
April 18,2001
Page 8 of l0
The most restrictive contact dose rate was concluded by SENES to be an average of 907
pR[r per lot, and this value is proposed by SENES as the limit on the average contact
radiation exposure rate for drums of blackflake, and for supersacs of AI\{V.
The limit on contact dose rate measured on individual 55 gallon drums and supersacs of
0.002 rem/h was converted by SENES to an exposure rate of 2,000 pR/h. By limiting the
dose rate to 2,000 pR/h (20 pSv/h) at contact with the side of a 55 gallon drum or
supersac, the effective dose equivalent rate is expected to be less than 20 pSv/h (0.002
rem/h) in all accessible areas to which workers and members of the public may be
continuously exposed.
In summary, SENES concludes that:
r The limit on the werage contact radiation exposure rate for a lot of sixty-six
55 gallon drums of blackflake, and for a comparable size shipment of
supersacs of AMV, should be set at 907 pR/tr. This limit is expected to ensure
that the limit on annual dose (1,000 pSv/y) to members of the public and
ferrovanadium workers will not be exceeded;
. The limit on the individual contad radiation exposure rate for drums of
blackflake, and for supersacs of AMV, should be set at 2,000 FR/h. This limit
is expected to ensure that the limit on hourly dose rate (0.002 rem/h) to
members of the public and ferrovanadium workers will not be exceeded; and
r For shipments of VPL, the proposed limit on the individual contact radiation
exposure rate should be set at 2000 pR/h. As each shipment of VPL is
shipped in a single tanker truck, it is not necessary to calculate an average
contact radiation exposure rate for shipments of VPL.
4.2.3, Vanadium Blackflake Product
Based on the foregoing analysis, the Mill will institute the following procedures:
r Each drum of blackflake will be scanned prior to release from the Mill's
restricted area to ensure that the contact radiation exposure rate from the drum
does not exceed 2,000 pR/h; and
r No lot of sixty-six 55 gallon blackflake drums will be permitted to be released
from the Mill's restricted area unless the average contact dose rate for the lot,
calculated over all drums in the lot, does not exceed 907 pR/h. If a lot size is
not sixty-six 55 gallon drums of blackflake, then an equivalent calculation will
be made to determine the appropriate average contact dose rate for such lot.
Mr. PhilipTing
April18,2001
Page 9 of 10
4.2.4. YPL Product
Based on the foregoing analysis, the Mill will institute the following procedure:
r The exterior of each tanker truck containing VPL will be scanned prior to
release from the Mill's restricted area to ensure that the contact radiation
exposure rate from the tanker truck does not exceed 2,000 pR/h.
4.2.5. AMV Product
Based on the foregoing analysis, the Mill will institute the following procedures:
r Each super sac or other conveyance of AMV will be scanned prior to release
from the Mill's restricted area to ensure that the contact radiation exposure
rate from the conveyance does not exceed 2,000 pR/h; and
. No lot of AMV will be permitted to be released from the Mill's restricted area
unless the average contact dose rate for a lot of comparable size to a 66-drum
lot ofblackflake, calculated over all conveyances in the lot, does not exceed
907 pR/h. If a lot is not comparable in size to sixty-six 55 gallon drums of
blackflake, then an equivalent calculation will be made to determine the
appropriate average contact dose rate for such lot.
4.2.6. Other Products
When other metals are to be extracted at the Mill, the Mill will follow procedures, similar
to those discussed above for vanadium product, to ensure that no sale lots of such metals
will leave the Mill site unless the requirements set out in l0 C.F.R. $20.1301 and
$20.1302 are satisfied.
4.2.7. Standard Operating Procedures
The Mill will develop SERP-approved Standard Operating Procedures that incorporate
the procedures discussed in Sections 4.2.3 to 4.2.6 above prior to any further vanadium
shipments from the Mill.
5. CONCLUSION
While the l0 C.F.R. Part 40 and licensing requirements do not apply to vanadium
products that have a source material content of less than 0.05%, the requirements set out
in l0 C.F.R. $20.1301 and $20.1302 could apply to the extent that vanadium products
having a source material content of less than 0.05%, and/or containers containing such
products, may be contaminated with licensed material. The additional procedures
outlined above are intended to be applied to all vanadium products to be shipped from the
Mill site, regardless of source material content, to ensure that the applicable NRC laws
Mr. PhilipTing
Aptil tt,2ml
Page l0dl0
and rcgutations are complied with in aII circumstances and to ensure protoction of public
health and safety.
If you have any questions or would require any further informetioq please contact the
undersigned st 303-3894 130.
RonF. Hochstein
Mchellc R. Rehmann
\Uilliam N. Deal
RonE. Berg
Bill von TiIUI,{RC
Dwight D. ChamberlainNRc
P$ Mackir/NRC
Idaria Sclnnartz/tlRC
'tt
'
Anthony J. Thompso4 Shaw Pittman
oo
ATTACHMENT A
e{
INrrnNerro*^"O
UneNtuu (use)
ConroneuoN
Intlepe,tlence prirzr, suite g5o o l0b0 seventeenth street . Denver, co 8026s ' s03 628 T7g8 (main) ' 303 389 4125 (fo()
August 25,2000
Mr. Louis Carson
U.S. Nuclear Regulatory Commission
Resion fV
6l iRyan PlazaDrive, Suite 400
Arlingtoq TX 6601 l-8064
Re: Source Material License No. SUA-I358
Conference Call Exit Meeting Regarding NRC Inspection No. 40-8681/2000/t for
the White Mesa Mill
Dear Mr. Carson:
Further to our telephone meeting held on August 22, 2OOO and our letter to you of AugUst
ii, iooo, I enclise a copy 6f . l.tt"r addressed to International Uranium (USA)
e;,";;i;n ("IUSA") from-our counsel, Shaw Pinman, relating to the issue as to the
NnC" jurisdiction over vanadium processing at the White Mesa Mill'
Although a copy of the atrached letter has been sent to you ty. Shaw Pjtj3tn we are
enclosiig a copy of the letrer herewirh as a formal submission by IUSA for your
consideration in evaluating this issue'
lf you have any questions or concerns, please do not hesitate to give me a call'
Counsel
Enclosure
cc: William von Till, NRC
AnthonY J. ThomPso4 Shaw Pittman
,rru
Vite Presidenl and General
REC'D
orn r?rr*
ShawPitman
--i' lnt io^it ip raclttdiry PmJcssioml Corgototioas
August 10,2000
By Facsimile
David C. Frydenlund, Esq.
Vice President and General Counsel
lnternational Uranium (USA) Corporation
lO5O lTth Street, Suite 950
Denver, Colorado 80265
NRC Jurisdiction Over Vanadium Processing Activities At The White
Mesa Mlll
Dear Mr. Frydenlund:
This lener is inrended to address several questions regarding the Nuclear
negutarory Commission's (NRC's) jurisdiction over vanadium processing sctivities at
iril-urional Uranium (USA) Corporation's (IUSA's) White Mesa Mill, located near
ij-airg, Utah (rbe Miil). Specifically, you have asked us to opine as to whetber, and to
*frr,.ri.nt, NRC can lawfuily exercise regulatory jurisdiction over the feedstoclc, end
products and wastes associared with vanadium processing tbat occurs in the Mill's
vanadium circuit. These issues arose recently in the context of an NRC inspection of the
fr4;ii; f,o*.ver, this lener merely confirms the oral advice that we provided to you on this
issue prior to the recent inspection.
Before addressing the scope of NRC's jurisdiction, ir would be useful to set out
the relevant facS.
Factual Background
The Mill has been a dual uranium/vanadium circuit mill from the time it was
designed and constnrcted. This design was intended to allow recovery of both the
;;;ril, and vanadium values that are characteristic of the Colorado Plateau ores, which
*.r.,o be the primary feedstock for the Mill. Broadly speaking, when the Mill is
operated to recover uianium and vanadium, ore passes through the uranium and
vlnaaium circuits in sequence. First, ore containing uranium and vanadium is crushed
-a grorna and fed intothe uranium leactr/solvent extraction (SX) circuit. After the
,r.riim is recovered from the ore, the ralfinate from the uranium recovery prooess is fed
Washington DC
l{ewYorl
london
23oo N Strctt, NW Warhington. DC 2o037'I 128 202.663.8(Xr0 Far: 2O2.663.8007 www.showpittmon.com
ShawPittman I
I
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David C. Frydenlund, Esq.
August 10,2000
Page2
through the vanadium circuit. Thus, tbe raffinate fiom the uranium recovery Process
becolies tbe feed material for tbe vanadium circuit, wbich uses'different chemicals and
operating conditions to recover the vanadium.' Finally, af,er processing through the
vanadium recovery circuit is complete, the remainingwaste stream proceeds to the Mill's
tailings impoundments.
The Mill is operared pursuant to a source material license issued by NRC under
the Aromic Energy Act (SUA-1358). The terms and conditions in that license are
inrended ro address the uranium recovery aspects of Mill operations. Under ordinary
operating conditions, the license is not (and has not been) applicable to the vanadium
circuit porrion of the mill (other than the tailings and wastes fiom that Process, which are
*unugid as I I e.(2) byproduct material). This is because, -under normal operating
condiiions, the vanadium feed material and tbe final vanadium product are not source
material or I le.(2) byproduct material and tbe processing activities that occur in the
vanadium circuit do not involve I le.(2) byproduct material or licensable quantitics of
source material.
Discussion
The starting point for our analysis is the AEA, from which NRC derives its
authority over rhe Mitt. NRC's jurisdiction under the AEA is material-based; that is, tbe
AEA grants NRC jurisdiction to regulate only source, special nuclear and blprodud
mareri'al. 42 U.S.C. $ 2201. Since operations at the Mill do not involve special nuclear
material or I le.(t) blproduct material, NRC's jurisdiction over the Mill extends only to
activities involving source material or I le.(2) blproduct material.
Wirh respect to source material at the Mill, NRC's autbority is furthcr
circumscribed by Section 62 of the AEA, which expressly provides tbat"licenses slrall
notberequired for guantities of source material which, in the opinion of the Commission,
' Two points about the vanadium circuit are worth n-oting.. First, although the ralfinate from thc
urani,m circuit becomes feed material for the vanadium circuit, in their final recovcry stages, the
uranium and vanadium circuits are sepamle and distinct. Also, since it is intended to remove only
vanadium, tbe vanadium recovery circuit has little or no impact on (either enhancing o
diminishing) any naturally occurring radionuclides contained in the vanadium circuit's feed
material and, similarly, no such impact on the final vanadium product.
ShawPittman
David C. Frydenlund, Esq.
August 10,2000
Page 3
are unimporrant.,, 42 U.S.C. S 2OgZ (emphasis added). NRC bas taken the position that
mate;ats conuining less tban 0.05% source material are'hnimportant quantities" of
*r. marerial. Splcifically, the regulations provide that "any che4ical mixture,
."rp"rra, solution, or altoy' in wbich the uranium or thorium content is less tban 0.05%
;il.i;tiis considered to be an'tnimportant quantity" and is exempt from regulation as
,our".-.uterial. l0 C.F.R. $ 40.13. Thus, under Section 62 of the AEA, NRC is
prohibited fiom exercising its "source material" regulatory authority with respect to
materials that contain less than o.}s%uranium or thorium.
Under normal operating conditions at tbe Mill, licensable quantities of source
material (i.e., materials containing greater than 0.05% uranium) are not present in the
vanadium ciicuit, because tUe uu* of the uranium content of the feedstock is removed in
tb, uruniu- circuit.2 Consequently, since there normally are no licensable quantities of
uranium in tbe vanadium circuit (including the feed material, the final vanadium product
;;; i;;r.rulring tailings and wasres), NRC cannot ordinarily exercise jurisdjction over
the vanadium circuit (o-r tbe mareriais involved in the vanadium circuit) on the basis of ir
AEA autbority over source material'
Similarly, the materials involved in the vanadium circuit, other than the tailings
from that circuii (i.e., the vanadium feed material and the final vanadium product) are not
if ..(Z) Ul'producl marerial. Tbe stamte defines I le.(2) blproduct material as:
rbe ruilings or wastes produced by tbe extraction or
concentration of uranium or thorium from any ore
processed primarily for its source material content'
42 U.S.C. $ 2014e.(2) (emphasis added). Tailings are the waste materials that come out
oirt. tail end of thi mill once the extraction of valuable metals from ore has been
comptetea. As NRC has explained in the conrext of its uranium milling regulations,
2 It is conceivable that, as a result of process upsets or other unintentional deviations from normal
;;;;;;t;"rdirions "i th. MiU, the ievels of uranium contained in tbe uranium circuit raflinatc
niighi.*-... do.o5%. ln such circumstances, the rafllnate wou.l! presumably be subject to
i.gfirtion by NRC as source material (or source material ore, if the rallinate were furthcr
nrocessed to recover uranium). Under normal operating conditions, however, the levels of
iirnium in the uranium circuit raflinate should fall well below 0.05%.
ShawPittman
David C. Frydenlund, Esq'
August 10,2000
Page 4
tailings, consisting of sands, slimes and liquids, comprise the bulk of the wastes
g.r.r7,ra at a mii. USNRC, Final Generic Environmental Impact Statement on
\jrirr", MillingNuREG-0706 (Seprember l98o) (hereinafter GEIS) vol. I at 5-l to 5-4.
i", .lr" GEISr-ot. Z at B-l I ("The iailings represent the bulk of the wastes originating
tor rt. uranium mill and, with the exceplion of the recovered uranium and process
rorr.r, account for practically all of tbe ore solids and the process additives, including
;;;,t Thus, tailings "r. or. kturd of wasre (indeed, the biggest single wa1!e) produced
.rl i.rrt, of rhe mill-ing process.3 Other wastes that would constitute I I e.(2) blprodua
3 This undersunding, that railings arewastes, is consisrent wi h_the mining industry dcfinition of
.fr;fingr,;*ruch is:-"The parts, or a Pd, of any incoherenl or fluid malerial separated as refusc,
or-rffit"fy t .rr.O as ilfe;oi in quality ot rulr"; leavings; remainders; dregs"' B,reau of
Mines, U.S. Deparunent of the Interior, A Dictionary of Mining, Mineral and Related Terms
iffi;i -fraor"or.r, NRC,r inlerpreration of rhe AEA, as amended by the Uranium Mill Tailings
ii.Oiriio, Control Act (UMTRie1, and the legislatiY. hil9ry-.of the statute reveal that whcn
d"rgr.r, a.fined I te.()) byproducimarerial to consist of 'lailings and wastes" produced from
the extraction uno "or..nt riion of ruanium, its inlent was 10 ensure that all wastes (tailings and.
,i", irrilassociaied with milling uranium would be covered by the regulatory program put in
pi.". fr.f te.lZl Uyproduct material. For example, NRC has noted that:
TbeUMTRCAamendedthcAEAtoincludeuraniumand
thorium mill tailings and other wastes from tbe milling Process
as marerial to be liiensed by NRC. Specilically, the definition of
blproductmalerialwasrevisedinsectionlleoftheAEAby
adding
,..and(2)thetailingsorwastesproducedbytheextractionor
concentration. . ."
Sucb blproduct malerial includes all the wastes resulting from
the milling process, not jus the radioactive components'
57 Fed. Reg. 20,525, 20,531 (1992). In other words, I le.(2) byproduct ry1qral-is defined to
;;".p*r-rll wasres reiulting from tbe milling process; uilings are one kind of zuch wastc.
A similar conclusion was reached by the Court of Appeals f9t-9. D.C' Circuit upon that colut's
,.ri* "f U|UTRCA's legislative history in Kel-McGee v' U'S' Nuclear Regulatory'io^^rsrion,903 F.2d r ip.c. cir. l99o). The court in that case, guoting from the legislative
history, noted that:
uranium mills are a part of the nuclear fuel cycle. They extract
Footrote continued on next Page
ShawPitman
David C. FrYdenhurd, Esq.
August 10,2000
Page 5
marerial could include equipment used in the milling process when that equipment is
ready for disposal, and otber similar decommissioning wastes.t'
The vanadium feed material (the raflinate fiom the uranium circuit) is not tailings-
or otber waste; it is valuable feed material tbat is processed for the removal of vanadium.s
Footnote continued fiom previous Page
uranium from ore . . . leaving radioactive sand-like waste -
commonly called uranium mill tailings - in generally unanended' piles.
Id. atZ(quoting from H.R. Rep. No. 1480, 95d'Cong., 2d Sess., pt2,28 (1978). Later the court
went on to conclude that:
It is clear from this exchange [in the legislative history] that the
definition of 'blproduct malerial" proposed by [tben NRC
chairman] Dr. Hendrie and adopted by congress was designed to
exrend NRC',s regulatory authority over all wastes resulting from
the extraclion and concentration of source material
Id. st7.
. See Memorandum from Paul H. Lohaus, Division of Low-Level Waste Management and
p..tmmissioning, NMSS to All Uranium Recovery Licensees (March 15, 1989) ('Wastes fiom
te decommissioning ofbuildings and equipment wbose primary function was to conducl the
exraction or concentration of uranium or thorium from ore processed primarily for its souroe
material content, are considered to be blproduct material")'
5 Tbere can be no question lhat Congress did not intend to reach process intermediates likc tbe
uunJir1n feed maierial when it defrned I le.(2) blproduct material to consi$ of "tailings and
wastes.,, The statute and the legislaiive history clearly indicate that Congress inrendcd I le.(2)
Uyproarrt.aterial to .n.o*p.is rbe wasres produced from milling operations - both tailings and
oitrer kinas of wasres as outlined above - and the regulatory Program created *dg t M1RCA
*ri irr.na.d to provide for &e management and disposal of those wastes. Thus, for example, the
"Findings and Purposes" section ofIJMTRCA provides that:
The Congress finds that uranium mill tailings located at active
and inactlve mill operations may pose a polential and significanf
radiation health hazard to the public, and thal the protection of
the public health, safety and the regulation of interstate
Footnote continued on next Page
o
ShawPittman
David C. Frydenlund, Esq.
August 10,2000
Page 6
Similarly, the final vanadium product obviously is not tailings or other waste.
Consequently, these materials are not subject to regulation as l'le.(2) blproduct material.
Thus, tL. oniy marerial fiom tbe vanadium circuit that constitutes I le.(2) blproduct
material are the mill tailings - i.e., tbe tailings that exit the vanadium circuit and that are
then deposited into the Mill's tailings impoundments. Under normal operating conditions
then, these railings would be the only material associated with the Mill's vanadium circuit
thar would be,subject to regulation as I le.(2) blproduct material.
Tbis analysis is the only one rbat comports with tbe plain meaning of the AEA, as
amended by UMTRCA, and witb Congressional intent. ln addition, this analysis is also
consislent with NRC's general approach to the regulation of secondary process streams.
Specifically, tbere is a long history of NRC and Agreement state regulation of portions of
mineral recovery facilities that are not nuclear fuel cycle facilities but that recovetr
uranium in a seconda4y processing circuit. In those circumstances, NRC bas reguired a
source material licenseTust for the uranium circuit;however, because the uranium circuit
is not the primary purpose of the facility, the portions of the facility tbat are unrelated to
tbe uranijm circuit have not been licensed by NRC and the waste sream from tbc facility
is nor considered I le.(2) blproduct material.6 As NRC has explained:
Sometimes [uranium] is caprured in a side-stream recovery
operation, in whicb uranium is precipitated out of the
pregnant solution before or afier tbe rare earth or other
Footnote continued from previous page
commerce require thal every reasonable effort be made to
provide for the stabilization, disposal and control, in a safe and
environmentally sound matrncr, of such tailings.
42 U.S.C. $ 7901.
o Tbe Climax molybdenum mill is a case in point. The primary purpose (and tbe primary ciro$t)
of the mill was foi motybdenum recovery; however the mill at one time also recovered uranium
in a side-stream process. Although the mill was required to have a source material license for the
side-steam uranium recovery circuit, such a license was nol required for other parts of the mill
(i.e., rhe mitl was not a licensed nuclear fuel cycle facili$) and the mill tailings were not
regulated as I le.(2) blproduct material.
i.,i5-:i-._:5:- :i':_ : ----'i:
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I
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--'.:--'1l-::i:E#=#
David C. Frydenlund, Esq'
August 10,2000
PageT
meral. Although this side-stream operation is licensed by
NRC,tbetailings...arenotlle.(2)blproductmaterial.
This is because the ore was not processed primarily for its
source material content, but for the rare earth or other
metal.
57 Fed. Reg. 20,52 7 (1gg2). conversely, at a licensed fuel cycle facility (for example,
;h.-Whii. I;esa Mil$ wheie theprimary purpose of processing ore is fol its source
material content, ^iy ,rrondoryhin.tui recovery Processes that do not involve licensable
ouanrities of source-material are not subject to NRC jurisdiction. Because tbe primary
il;;;;f ,hr Mill is to recover uranium, however, tbe mill tailings - the final waste
##;;;1Le milting activities at the facility - are regulated as I le.(2) blproduct
material.
Thus, given the fact that NRC and Agreement States have routinely differentiated
U.r*..n efA-and non-afe porrions of miniral recovery facilities (see, e.$-, footnote 6
,i"r.i, ,"a since the vanadiJm recovery circuit .t 1!: Mitl does not involve I le'(2)
;;;;e;;i.rrerial or, under normal opirating conditions, licensable quantities of source
,ii,*.f,i, is evident ihrt n.itb", tbe vanadium recovery circuit nor the vanadium feed
marerial ror runrdir- ftoauo itself is subject to NRC'i regulatory jurisdiction'?
mffi,-p
? Similarly, any non-AEA radionuclides in tbe vanadium product would not be subject to
Nli'Cffi;;iction either. For example, to the exlent that some radium may accompany tbe
;;;;d;produa, i i. ,o, subjectio i.rRC5Utaiction because it is not associated witb
either source or blproduct material'
oo
ATTACHMENT B
SENES Consultants Limited
MEMORANDT]M
TO:
FROM:
SUBJ:
International Uranium (USA) Corporation ('IUC")
Doug Chambers, Morley Davis
Estimated Annual Dose from Vanadium Products
33010
l8 April200l
Further to our telephone discussion of 9 April 2001 with Mr. Hochstein and Mr. Frydenlund, we have
reviewed the information available to us concerning the potential levels of uranium in vanadium
products produced at the White Mesa Mill, and made (conservative) estimates of potential annual
dose to transport workers and the public arising from exposure to these products.
In briefi, our understanding of the issues are as follows:
o strictly, NRC licensing jurisdiction applies only to source material containing 0.05%
or more uranium and thorium;o if the vanadium product is found to contain less than 0.05yo uranium and thoriunl
there should be no licensing issues with NRC; however. an issue could arise with respect to potential doses from vanadium products
containing levels of uranium and thorium less than 0.05%.
Our approach to evaluating this issue was to review data provided by IUC and to evaluate likely
potential doses to transport workers (loader, driver) transporting vanadium products (containing less
than 0.05% uranium and thorium by weight) in lots, to members of the public living adjacent to
roadways, and to ferrovanadium plant workers.
The presumption is that none ofthese individuals will receive more than I mSv/y (1000 pSv/y) and
no more than 0.02 mSv/lr (20 pSv/hr) from exposure to these materials. l0 C.F.R. $20.1301(a)(l)
and (2). It is further assumed that the dose calculations can be performed for gamma radiation only
as it is assumed that the exterior of the vanadium drums will be cleaned (to surface contamination
criteria values specified in NRC Regulatory Guide 1.86) prior to transport. In developing our
assessment, we have also considered the relation between surface gamma and the uranium and
thorium contents ofthe vanadium products.
After reviewing the possible doses to the individuals described above, we propose additional
procedures that can be followed by the Mll to ensure that members of the public, as exemplified by
such individuals, will not receive doses in excess of these limits.
33010
l8 April200l
Memo to ruC (Continued)
Page2
Information Provided by IUC
The following information was provided by IUC via facsimile dated 5 April 2001 and used in this
analysis:
l. Excerpts from the NRC Inspection Report dated September 6, 2000, from
Inspection 40-8681/00-01 which state the concern of the NRC regarding
uranium contamination in the vanadium product.
2. An internal IUC memorandum dated May 5, 2000, which detailed the first
identification of the potential contamination of the final vanadium blackflake
product at the White Mesa Mill.
3. Assays of uranium (,J-234,1J-235 and U-238) and thorium (Th-228, Th-230
and Th-232) from each of the remaining lots at the White Mesa Mll. We
understand that Lots 5 I and 52 arenot intended to be sold, due to the level of
contamination, and will therefore not be considered in this analysis.
4. Letter to NRC Region IV dated August 25, 2000, outlining IUCs initial
position regarding regulation of the vanadium circuit.
5. A letter to NRC Region IV dated January 19,2001, detailing a potential
miscommunication between ruSA and the NRC regarding the sale of
vanadium pregnant liquor (VPL).
6. An ruC memorandum dated January 22,2001, regarding the addition of the
uranium concentration stated in microcuries per millilitre of solution.
7. Selected text from l0 C.F.R. Part20.
Subsequently, information on the vanadium purchasing cycle was provided by IUC in a memorandum
dated l6 April200l.
Discussion of Measurements on Drums of Vanadium Blackllake (VBf)
In this part, the results ofmeasurements ofradioactivity concentrations and exposure rates at contact
with VBF drums are discussed.
Composite samples of product from individual lots 34to 52were analysed forU-238,U-234,Th-230
andTh-232by alpha spectrometry by IUC. ATh-232 concentration of 3.6 pCrlgis the detection limit
for this radioisotope. External gamma exposure rates at contact with drums from 5 ofthe lots were
measuredbyNRC. TheresultsaresummarizedinTable I (leftside). Weunderstandthatlots5l and
52havebeen removed from the scope of work and they are not discussed further.
During preparation of this memorandum, the calculations on the right side of the table were made.
Specifically, the ratios ofU-238/Th-230,1J-234lTh-230, ppm U (using 0.33 pCi U-238l1tgU), and
ppm Th (using 0.1 I pCi Th-232l1tgTh). The mass ofTh-230 is insignificant with respect to the mass
of Th-232 present.
33010
l8 April200l
Memo to ruC (Continued)
Based on alpha spectroscopy results, the lots appear to fall into two groups. The results indicate
depletion of U-238 andlJ-234 compared to Th-230 in one group (lots 34 to 42, and lots 48 to 50,
inclusive). Also, the results indicate equilibrium or slight excess of uranium between U'238 and U-
234 compared to Th-230 in lots 43 to 47, inclusive. The alpha spectroscopy results provide no
indication ofthe concentration ofRa-226 relative to its parent Th-230. For the analysis in this report,
it is assumed that all decay products of Th-230 are in secular equilibrium with Th-230.
Most ofthe eldernal gamma radiation from the uranium series isotopes is attributable to Ra-226 and
its short-lived decay products. Therefore, it is considered reasonable, more likely than not, to
calculate external gamma dose rate using the assumption that all decay products of Th-230 are in
equilibrium with Th-230. The exposure rates at contact with drums in each lot were calculated using
thl results ofMcroShieldrM (V5.05-00170) code runs. The results ofthese calculations are shown in
Table l. Predicted exposure rates overestimate measured rates in three cases, lots 44, 45 and 52,and
underestimate dose rates in the other two cases, lots 49 and 51. It is possible that Ra-226
concentrations are higher than corresponding Th-230 concentrations; however, there are no data to
support this assumption other than the exposure rate measurements.
The lowest ratio of U-238 to Th-230 is calculated to be 0.018. In the calculations described in the
following parts, the inverse of this ratio, 55.6, is used to calculate the highest concentrations ofTh-
230 and its decay products relative to the U-238 concentration.
The highest concentration ofTh-232 in lots 34 to 50 was calculated to be 42.8 ppm Th'232 in lot 34.
Therefore, the concentration of thorium is expected to be less than 50 ppm (0.005% thorium) in all
blended lots. To estimate an upper limit on the external gamma exposure and dose rates from
vanadium products described in the following parts, the maximum total concentration ofuranium and
thorium was set at 0.048o/o, and the corresponding nominal concentrations of uranium and thorium
were set at0.043Yo (i.e. 430 ppm U) and 0.005% (i.e. 50 pmTh-232).
In summary, exposure and dose rate calculations described in the following parts are made using
concentrations of uranium and thorium set at 0.043 oh and 0.005%, respectively which are below the
NRC definition of source material. For each vanadium product configuration two sets ofcalculations
are made.
o In Case l, U-238 and all of its decay products are set in radioactive equilibrium; and
o In Case 2, the Th-230 activity concentration (and all of its decay products in
equilibrium) are set at (the e)ftreme of) 55.6 times the U-238 activity.
Dose Rate Near Product Containerc
In this part, dose rate calculations at selected distances from various forms of vanadium product
containing "unimportant quantities" of uranium and thorium (i.e. less than 0.05%) are described.
33010
18 April200l
Memo to ruC (Continued)
Page 4
Specifically, calculations were made for concentrations at 0.048%uranium and thorium in individual
product containers, and from full loads.
Individual Drums of Blackfl ake
The exposure and dose rates at selected distances from a 55 gallon drum of blackflake were
calculated using the MicroShieldrM code and the following parameter values:
o Drum height 80 cm;
o Drum diameter 60 cm;
o Blackflake density 1.189 gl"nf ;o Case I concentrations 4.043% uranium (all decay products in equilibrium), and
0.005% Th-232 (pCilg Th-232, all decay products in equilibrium); and
o Case 2 concentrations 4.043%uranium (Th-230 and each decay product 55.6 times
the U-238 activity concentration), and 0.005% Th-232 (all decay products in
equilibrium).
The results ofthe dose calculations were used to calculate the number ofhours ofexposure required
to accumulate 1000 pSv at various distances in the two cases, Figure l. In the first case where all the
lJ-238 decay products are in equilibrium, a person could not accumulate 1000 pSv in a working year
of 2000 hours at distances of greater than % m from a drum of blackflake, nor would he/she be
exposed to an hourly dose of 0.02 mSv/hr (20 pSv/tr).
In the second case where Th-230 and its decay products are 55.6 times the U-238 concentratior; a
person could not accumulate 1000 pSv (l mSv) in a working year of 2000 hours at distances of
greater than 4 m from a drum of blackflake. Similarly, at these distances a person would not be
exposed to an hourly dose of0.02 mSv/tr (20 pSv/hr). However, at closer distances to the drum the
exposure limits for individual members ofthe public could be exceeded in this second case scenario.
We propose procedures below that will ensure that these limits are not exceeded.
Trailer Truck Load ofBlacHlake Drums
The exposure and dose rates at selected distances from a trailer loaded with a lot consisting of sixty-
six 55 gallon drums of blacldlake were calculated using the MicroShieldrM code, and the following
parameter values:
o The drums are loaded in two layers onto a trailer ofwidth, height and length of 2.4,
2.4 and 13.7 m (approximately 8 by 8 by a5 ft);
o Case I concentrations 4.0430 uranium (all decay products in equilibrium), and
0.005% Th-232 (pcilg Th-232, all decay products in equilibrium);
33010 (D
l8 April200l
Memo to ruC (Continued)
Page 5
Case 2 concentrations-0.043olo uranium (Th-230 and each decay product 55.6 times
the U-238 activity concentration), and 0.005oA Th-232 (all decay products in
equilibrium);o Dose calculations at distances of I to 5 m from the end of the load were used for
individual dose calculations (the driver); and
o Dose calculations at distances of 5 to 30 m from the side of the load were used for
public dose calculations.
The results ofthe dose calculations were used to calculate the number ofhours ofexposrreto drivers
required to accumulate 1000 pSv at various distances in front of the load in the two cases, as
illustrated in Figure 2. In the first case where all the U-23 8 decay products are in equilibriurq a driver
could not accumulate 1000 pSv in a working year of 2000 hours, or an hourly dose of 0.02 mSv/lr
(20 pSv/hr), at distances of greater than 1.5 m from a load of blackflake drums.
In the second case where Th-230 and its decay products are 55.6 times the U-238 concentration, a
driver could potentially accumulate 1000 pSv or more in a working year of2000 hours. We propose
procedures below that will ensure that these limits are not exceeded.
The results of the dose calculations were also used to calculate the number of hours of exposure to
members ofthe public required to accumulate 1000 pSv at various distances to the side ofthe load in
the two cases (Figure 3). In the first case where all the U-238 decay products are in equilibrium, a
member of the public could nbt accumulate 1000 pSv in a year (8766 hours), or an hourly dose of
0.02 mSv/hr (20 pSv/hr), at distances of greater than l0 m from a load of blacldlake drums.
In the second case where Th-230 and its decalproducts are 55.6 times the U-238 concentration, a
member ofthe public could potentially accumulate 1000 pSv during an exposure of2000 hours at a
distance of 30 m from a load ofblackflake drums, although, as discussed below, at the more likely
exposure of 500 hours in a year, such a member of the public would not accumulate 1000 pSv. In
neither case would the individual be exposed to an hourly dose of 0.02 mSv/hr (20 pSv/hr).
In addition, exposure scenarios for workers in the ferrovanadium plant to which the vanadium
product is delivered were evaluated. In certain circumstances, described below, vanadium in the
second case where Th-230 and its decay products are 55.6 times the U-238 concentration, such
workers could potentially accumulate 1000 pSv in a year. Additional procedures that can be
followed by the Mill to ensure that such exposure limits are not in fact exceeded are described below.
Detailed calculations for each of these scenarios are set out below.
Other Products
We understand that most of the vanadium product is produced as blacldlake; however, another
product, vanadium pregnant liquor (VPL), is an intermediate liquid product that is also produced.
33010
18 April2001
Memo to IUC (Continued)
Page 6
VPL is shipped as a bulk liquid in tanker trucks. We understand that the VPL liquid typically contains
0.016 g UsOe/L (or less). On occasion, another product, ammonia metavanadate (AMV), is produced
as a powder. AMV is shipped in "super sacs" of about I ton capacity.
Our calculations using McroShieldrM indicate that the dose rate from VPL is very much lower (orders
of magnitude) than for blacldlake. However, these predictions are based on the assumption that each
radionuclide in the U-238 series is in equilibrium with U-238. Direct measurements of external
garnma dose rate in contact with containers or loaded tankers, as discussed in more detail below, is
recommended to veriS this assumption. For present purposes, AMV is assumed to present the same
radiation dose characteristics as blackflake.
Vanadium Shipping Cycle
From information provided by IUC, during the last mill run, approximately 2.0 million lbs. of
vanadium were produced, ofwhich 1.8 million lbs was in blackflake and the remaining 200,000 lbs in
VPL.
VPL
The VPL was contracted for sale with only one chemical supplier (a broker). The commercial
arrangement is such that the VPL is stored at the Mill until the chemical supplier's customers can
receive additional material. The supplier informs the Mll that additional material is required and
dispatches a tanker truck to the Mill. The Mll prepares a solution for transport at which time the
solution is assayed. The truck is loaded at the White Mesa Mill and then scanned for release. Since
the Mll began shipping VPL, in February 2000, twelve loads of VPL have been shipped. The
average solution shipped pertruckload is approximately 35,400lbs., containing approximately6,400
Ibs. of VzO5. The shipping schedule varies between one and two shipments per month.
It is our understanding based on information from IUC that the tanker transfers the material from the
truck to tanks located in the customer's facility. From this tank the solution is directly metered into
the process. There are no intermediary facilities.
Blackflake
The vanadium blackflake is packaged in 55-gallon drums and grouped into lots consisting of 66
drums per lot. Each lot is sold on the basis of the vanadium content of the lot, which is determined
from an assay of a composite sample from the entire lot.
During the last campaigq a total of 38lots were sold to four different buyers. The purchases were
typically on either a lot-by-lot basis or on a batch basis varying from 3 to l2lots. There were no
long-term supply contracts during the last mill run. Once a contract is signed, the lots are kept at the
Mill until the purchaser picks up the lot at the Mill.
33010
18 April200l
Memo to IUC (Continued)
The buyer is responsible for arranging transportation. Only one lot is shipped per truckload. Based
on a preliminary review ofthe documentation for the 38 lots shipped from the last mill run, one driver
shipped four lots, three drivers shipped three lots and different drivers shipped the remainder.
IUC has indicated that vanadium from the Colorado Plateau ores is a swing source ofvanadium for
the ferrovanadium producers. They typically source their vanadium from spent catalyst converters or
from primary vanadium producers in South Africa and Australia. Typically the purchaser will spread
the shipments out to match production schedules. The ferrovanadium producer usually processes the
material, again on a lot-byJot basis, within one to three days of receipt of the material.
Estimate of Annual Doses to Workers and Members of the Public
The following analysis considers the potential doses to workers loading the product, the transport
drivers and members of the public living along the roads used to transport the vanadium product. In
additiorq we have also considered the dose to workers at the ferrovanadium plant(s) receiving the
vanadium product. For this assessment, we have assumed that no worker at the White Mesa Mll is
permitted to receive more than the occupational limit of 5 rem/y (50 mSv/y), and that the truck driver,
workers at the receiving ferrovanadium plant and members ofthe public are not permitted to receive
doses in excess of 0.1 remly (l mSv/y, 1000 pSv/y) and 0.02 mSv/lr (20 pSv/tr).
Assuming a vanadium production of 28 lb/ton feed,2x 103 tons feed/d and 330 operating days per
year, the annual production ofvanadium is about 500 lots, when the Mill is operating at full capacity.
Assuming 4 buyers, each buyer is assumed to receive some 125 lots. It is further assumed, based on
information provided by IUC, that each lot is processed within 3 days of receipt.
White Mesa Mll Worker Loading Vanadium Product
A White Mesa Mill worker loading blackflake would be exposed to gamma radiation from blacldake
(or AMV) while transferring loaded shipping containers (drums or super sacs) to trucks. Using the
following dose rates (assumed for the operator at I m from the source), calculated using
McroShieldrM:
From l Drum From a Pallet of 4 Drums
Dose Rate at I m:Case I 0.12 rrSv/h 0.24 uSv/tt
Case 2 6.2 rrSv/h 12.4 uSv/h
and assuming 500 shipments per year requiring 2 h per shipment to load, we estimate the following
doses:
33010
'l8 April200l
Memo to ruC (Continued)
Page 8
case l : o.z+ffx 500 shipments " # = 240 ff <o.ro ry,
Case2:12.4N-v x500 shipments* ..2h =12,400N 1tz.+mSv,h shipment y Y
These exposure levels are within the occupational exposure limits of 5 rem/y (50 mSv/y) for Mill
workers. Howeveq this memorandum will not address any furtherthe occupational exposure limits
for White Mesa Mill workers, as such workers are subject to the Mll's radiation protection program
for workers, which is designed to ensure that the occupational dose rates for Mll workers are not
exceeded.
Truck Driver
The annual effective dose to a truck driver was estimated using the following assumptions and
calculations.
o The barrels are loaded in two layers onto a flatbed truck trailer ofwidttL height and
length of 2.4,2.4 and 13.7 m (approximately 8 by 8 by a5 ft);
o The driver's seat in the tractor is assumed to be located at a distance of 3 m from the
front ofthe drums, and no credit is taken for shielding by the metal sides on the trailer
and the metal in the tractor cab;o The ef[ective dose equivalent rate at the driver's position is calculated using
MicroShieldrM to be Case l: 0.22 pSv/h, Case 2: 11.7 pSv/h;
o The duration ofthe delivery with full load is assumed to be 34 hours (expozure during
the return trip is assumed to be zero);
o The annual frequency of deliveries is assumed to be 30.
The annual effective dose equivalent to the truck driver who makes 30 deliveries is calculated to be:
case I : o zz+ nory,ro ff = 227 #(, -, ry)
case 2, 11.7 t$l- nory n4 #=,,e00+(, r t ry)
It can be seen that the dose limits of 0.1 remly (l mSv/y, 1000 pSv/y) and 0.02 mSvAr (20 pSv/hr)
are not exceeded in the Case I scenario, while the annual dose limits are exceeded in the Case 2
scenario. Procedures to be followed by the Mll to ensure that such exposure limits are not in fact
exceeded are proposed below.
33010
l8 April200l
Memo to IUC (Continued)
Resident Along the Transport Route
The annual effective dose to a resident along the transport route was estimated using the assumptions
described above and the additional assumptions and calculations described below.
o The resident is assumed to live at a distance of 30 m from a truck stop on the
transport route at which all loaded transport trucks stop for an average of I hour on
each trip;
The effective dose equivalent rate at 30 m from the side of the loaded trailer is
calculated to be:
o.orro d'
h
Case2: 0.72N
h
The annual effective dose equivalent to the resident at 30 m from the parked truck is
calculated to be:
case I : 0.0136 4v x 500 shipments ,t - .h = 6.8 dv [o.oou,
msvl
h y shiPment Y \ Y)
Case l:
case zt 0.724: x500 shipments ,1--h =360 N-(o.lonsvlh y shipment Y \ Y)
assuming 500 shipments a year along a give truck route and use of some rest areas.
It can be seen that the dose limits of 0.1 rem/y (l mSv/y, l000pSv/y) and 0.02 mSv/hr (20 pSv/hr)
are not exceeded in either of the Case I or Case 2 scenarios.
Worker at Ferrovanadium Plant Receiving Product
As for the loader operator at the Mll, it is assumed that the loader operator at the ferrovanadium
plant is exposed at I m from four drums on a pallet, and that each lot requires 2hto unload for a
lotal of 25Oh (125 lots x 2 Mot) of exposure. Exposure rates for the unloading activities are
assumed to be the same as those used above for the loading activities at the White Mesa Mll. In
additioq there is some potential for incidental exposure in proximity to the lot until the lot is
processed. To estimate this dose, using McroShieldrM, we assumed lh per day for 3 days at a
distance of 5 m from the lot, thus:
a
33010
l8 April200l
Memo to IUC (Continued)
Pase 10
Case I, ( o.ro + *t25 shipments x2,, o'l *( o.tl + xt25 shipment x3+l'[-'-'A'----"'r-------- -shipment) ( h ' shipment)
=60+l16
=176Psvv
Case2 , (rr.o+rt25shipmenrsx2 ,,0 'l
*(ru:+, r25shipmentx3+l' [--'' /, '. --- -"'r'- - shipmentl ( h ' shipment )
= 3,100 + 6,100
=9,200 N
v
It can be seen that the dose limits of 0. I remly (l mSv/y, 1000 pSv/y) and 0.02 mSv/hr (20 pSv/hr)
are not exceeded in the Case I scenario, while the annual dose limits are exceeded in the Case 2
scenario. Procedures to be followed by the Mill to ensure that such exposure limits are not in fact
exceeded are proposed below.
Limit on Average Contact Exposure Rate
Based on the foregoing analysis, it is evident that the dose limits of 0.1 remly (l mSv/y, 1000 pSv/y)
and 0.02 mSv/hr (20 pSvlhr) are not exceeded in any of the Case I scenarios described above. In
other words, vanadium product that contains source material below the 0.05% by weight threshold,
when in equilibrium, would not be expected to result in the potential for overexposure to members of
the public. However, in some situations vanadium product that contains less than 0.05yo by weight
source material that is not in equilibrium can result in the potential for overexposure to members of
the public. It is therefore necessary for the Mill to scan each drum or other package of vanadium
product before it is shipped from the Mill, to ensure that the dose from the drum or other package,
whether alone or as part of a lot, will not cause a potential overexposure to members ofthe public. In
the following discussion we propose additional procedures that can be performed by the Mll to
ensure that vanadium product that is shipped from the Mill will not give rise to any such
overexposures.
Specifically, limits on the average contact exposure rate on all drums in a lot, and on indMdual drums
and supersacs are calculated. These limits ensure that the annual limit on dose of 0.1 rem/y (l msv/y,
1000 pSv/y) from external gamma radiation to members of the public and ferrovanadium workers is
not expected to be exceeded.
The limit on the average contact dose on all drums in a lot was determined by the following method.
Based on the calculations described above, the estimated effective dose equivalent rate to each group
of workers and the public from drums containing 0.048Yo uranium and thorium by weight (all
33010
l8 April2001
Memo to IUC (Continued)
radioactive series in equilibrium) are summarized in the following table, and range from 6.8 to 240
pSv/y. McroShieldrM calculations also predicted an effective dose equivalent rate of 2.06 ltSv/h in
contact with the side of the 55 gallon drum of blackflake.
The average contact dose rate per lot, over all sixty-six 55 gallon drums in the lot, that would rezult in
an annual effective dose equivalent of 1000 pSv/y to the truck driver was calculated to be 9.07 pSv/h
(2.06 pSv/tr x 1000 pSv/y + 227 pSv/y). To be conservative, the equivalent exposure rate is
calculated to be 907 pR/h, assuming 100 pR/h is equivalent to I pSv/h. Using the same method,
corresponding average contact dose rates on the drums were calculated for doses to the public and
ferrovanadium workers (as shown in the following table). As the ruC Mill Worker is an Atomic
Radiation Worker subject to the higher annual occupational dose limits, so these calculations are not
relevant to such workers.
Annual Dose
uSv/v
Contact Dose Rate,
uR/h (:1000 uSv/v)
ruC Mll Worker 240 nla
Truck Driver 227 907
Public 6.8 30.300
Ferrovanadium Worker t76 1.170
The most restrictive contact dose rate is an average of 907 pR/h per lot, and this value is proposed as
the limit on the average contact radiation exposure rate for drums ofblackflake, and for supersacs of
AMV.
The limit on contact dose rate measured on individual 55 gallon drums and supersacs is derived from
the regulatory requirement in 10 C.F.R. 20.1301(a)(2). This section states that the dose in any
unrestricted area from external sources must not exceed 0.002 rem/h. This criterion has been
demonstrated in the preceding calculations. The limit on effective dose equivalent rate of0.002 rem/h
can be conservatively converted to an exposure rate of 2000 pR/h using the conversion factor I PR/h: I premftr.
MicroShieldrM was used to calculate ihe effective dose equivalent rate at selected distances from
several configurations of 55 gallon drums which have a contact exposure rate of 2000 PR/h on the
side. At all distances from an individual drum, the predicted dose rate is obviously less than 2000
pR/tr. At I m from a stack of drums (4 wide and 2 high), the dose rate is predicted to be 1000 pSv/h
(10 pSv/h), and less at greater distances. Similarly, the dose rate at I m and greater from a supersacis
expected to be 1000 pR/h and less when the contact dose rate on the supersac is 2000 pR/h (20
pSvlh).
33010
l8 April200l
Memo to ruC (Continued)
In summary, by limiting the dose rate to 2000 pR/h (20 pSv/h) at contact with the side of a 55 gallon
drum or supersac, the effective dose equivalent rate is expected to be less than 20 pSv/h (0.002
rem/h) in all accessible areas to which workers and members of the public may be continuously
exposed.
Conclusions
None ofthe illustrative calculations shown above indicate the potential to exceed relevant doselimits,
when the total uranium and thorium concentration is 0.048o/o and all members of the U-238, U-235
andTh-232 decay series are in equilibrium with the respective parent of the series.
The proposed limit on the average contact radiation exposure rate for a lot of sixty-six 55 gallon
drums ofblackflake, and for a comparable size shipment of supersacs ofAMV is 907 UMr. This limit
is expected to ensure that the limit on annual dose (1000 pSv/y) to members of the public and
ferrovanadium workers will not be exceeded.
The proposed limit on the individual contact radiation exposure rate for drums ofblacldlake, and for
supersacs of AlvtV is 2,000 pR/h. This limit is expected to ensure that the limit on hourly dose rate
(0.002 rem/h) to members of the public and Ferrovanadium workers will not be exceeded.
For shipments of \lPL, the proposed limit on the individual contact radiation exposure rate is
2000 UR/h. As each shipment of VPL is shipped in a single tanker truck, it is not necessary to
calculate an average contact radiation exposure rate for shipments of VPL.
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ConponATIoN
Intlepenrlence plaza, Suite g50 . 1050 Seventeenth Street o Denver, CO 80265 . 303 628 7798 (main) ' 303 389 4f25 (fax)
January 19,2001
VIA FACSIMILE TO (81N 860.8188
AND OVERNIGHT EXPRESS
Dwight D. Chamberlaiq Director
U.S. Nuclear Regulatory Commission
Region IV
Division of Nuclear Materials Safety
6l I Ryan PlazaDrive, Suite 400
Arlingtoq TX 7601 l-8064
Re: Contaminated Vanadium Product at International Uranium (USA) Corporation's
('IUSA's") White Mesa Mill (the *Milf')
Dear Mr. Chamberlain:
I. INTRODUCTION AIYD SIIMMARY
Further to our conversation of yesterday with Dr. D. Blair Spitzberg, we are writing this
letter to clarify what may be a point of confusion or miscommunication relating to our
commitment not to make any shipments of contaminated vanadium product currently in
storage, until the issues of the jurisdiction of the NRC over the radioactivity in our
vanadium product and any safety controls which may be needed for this material, are
resolved.
It was our understanding that our commitment pertained only to the drums of vanadium
blackflake product. It was the blackflake product that had been identified to be
contaminated with higher than normal levels of uraniurq and which was the topic of our
discussions with the NRC inspector during the Mill's most recent NRC inspection. We
did not understand our commitment to apply to our vanadium pregnant liquor ('\PU')
produc! which is not contaminated with unusual levels of uranium. As per this
understanding of our @mmitment, the Mill has not made any shipments of vanadium
blackflake product, since the inspection. The Mill has, howeveq made some shipments
of \lPL, since that time.
Mr. Dwight D. Cta.U"rfaj
January 19,2001
Page2 of 4
As the issue of our shipping VPL has not been specifically discussed between IUSA and
the NRC, it is possible that ruSA and the NRC may be operating under different
assumptions as to how the Mill should be handling its VPL product. The purpose of this
letter is to ensure that any such misunderstandings are rectified.
Furthermore, as per our discussions with Dr. Spitzberg, ruSA will not make any further
shipments of VPL unless and until further instructed by the NRC in response to this
letter.
2. BACKGROUNI)
The Mill is capable of producing three marketable vanadium products: blackflake, VPL
and ammonia metavanidate (.'AM\f'). Blackflake, which is material that has been
processed through the entire vanadium circuit at the Mill, is the most common form of
vanadium product produced at the Mill. Blackflake is a solid, fused flake, product that is
typically shipped in sealed 55 gallon drums. VPL is a liquid product that is extracted
from the vanadium circuit prior to the oxidation and fusing process. VPL is typically
shipped as a liquid in bulk in tanker trucks. VPL, if processed further in the vanadium
circuit, will become blackflake. AMV, is an intermediate product that is in the form of a
powder, and which is extracted from the process prior to the fusion stage, but after further
processing of the VPL in the oxidation circuit.
During the conventional Mill run completed in 1999, conventional uranium/vanadium
ores from Colorado Plateau mines were processed to produce yellowcake and vanadiunl
primarily in the form of blackflake. Some VPL was produced from these ores. Also,
some AMV was produced as an intermediate process step, but the entire volume of AMV
was further processed into blackflake. In addition, after the conventional ores had all
been processed, the Mill re-processed certain vanadium cleanup materials (the "Cleanup
Materials") from previous Mill runs, that had been stored at the Mill site since 1988. The
Cleanup Materials were re-processed through the fusion circuit to produce blackflake.
As the Cleanup Materials were only fused, no VPL was produced from the re-processing
of the Cleanup Materials.
During routine alpha contamination surveys on the exterior surfaces of certain vanadium
blackflake drums produced during the 1999 Mill run, as the drums were being prepared
for shipment to a vendor, it was discovered that there was inordinate radioactivity coming
from some of those drums. Mill staffheld the drums back for further analysis, and it was
determined that the blackflake in question had been produced from the re-processing of
the Cleanup Materials. ruSA believes that there is a strong likelihood that some of the
Cleanup Materials were contaminated with uranium prior to their being re-processed, and
that some of this uranium contamination found its way into this blackflake.
These facts were explained to the inspector at the last NRC inspection of the Mill, and are
referred to in your September 6, 2000 Inspection Report and Notice of Violation, as well
as in other correspondence and discussions between ruSA and NRC. In your September
Mr. Dwight D Chr.b"rt
January 19,2001
Page 3 of4
6 letter to ruSA you state that: "Until these matters are resolved, we understand that you
committed to make no shipments of contaminated vanadium product currently in
storage." This is a true statement. However, all of our discussions with the inspector and
the NRC related to the blackflake drums that had demonstrated inordinate levels of
radioactivity. There were no discussions relating to VPL. As the VPL that was produced
during the Mill run was not produced from the Cleanup Materials, but rather, had been
produced in the same manner as \lPL had been produced historically at the Mill, it did
not occur to ruSA that there could be any issues at all with IUSA's VPL, and hence
ruSA has not considerd the VPL to be "contaminated vanadium product."l
As a result of IUSA's understanding of its commitment to the NRC, ruSA has not
shipped any drums of vanadium blackflake off site, let alone any of the drums that had
been identified as contaminated. However, ruSA has made a total of six shipments of
VPL by tanker truck since the inspectioq comprising a total of approximately 37,137
pounds of contained V2O5, in approximately 229,400 pounds of VPL solution.
3. CURRENT STATUS
While ruSA has not considered the VPL to be "contaminated vanadium product," the
contaminated blackflake did raise IUSA'S awareness of the fact that the Mill has never
assayed its vanadium product for source material content. As a result, after this issue had
been identified, the Mill took samples of all of its blackflake and VPL that remained at
the Mill site. Attached to this letter is a table, which shows the concentration of U3O8 in
the VPL and in the V2O5 contained in the VPL. These concentrations are well within
regulatory requirements, and, although we do not have suflicient historic data to say so
with certainty, we believe these concentrations are also consistent with those of historic
production at the Mill.
As you know, the discovery of the contaminated blackflake has raised some important
issues. We are currently working with NRC headquarters to develop standard operating
procedures to ensure that all vanadium blackflake product shipped from the Mill meets a)
the 0.05 Yo Part 40 unimportant quantities requirement; and b) applicable Part 20
requirements. In the course of developing these procedures, ruSA will also be re-
evaluating all of its standard operating procedures relating to VPL and AMV to ensure
that these forms of vanadium product also meet these two requirements.
' It shoutd be noted that, while we state on page 6 of our October 13, 2000 response leser to the NRC that*. . . ruC has commiued tlnt no shipments of vanadium are planned until the issues identified in the Notic-e
are resolved," without specifically limiting this statement lo contaminated vanadiunU this statement was
made in the context of the survey and shipment of vanadium blacHlake drums.
a
a
I
Ivfr. DwigltD. *rr*#
Jaruary 19,2001
Page4 of4
4. CONCI,USION
Please advise us of whether or not the NRC agrees with our position that the Mill may
continue to ship its ry?L produc't. As stated earlier, we will not ship any more \lPL
unless and until we receive the NRC's approval to do so.
If you require any further information, or if you have any questions, please contact the
undersigned at 303-389-41 30.
Vice President and General Counscl
rcmbUDEQ
R. William von Till, NRC
Pat Mackirt NRC
RonF. Hochstein
William N. Deal
RonE. Berg
Michelle R. Rehmann
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