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HomeMy WebLinkAboutDRC-2002-001129 - 0901a06880adecd6INrnnNerro*ol UneNtul,t (usn) ConponertoN IndependencePlaza, Suite 950. 1050 Seventeentl Street. Denver, CO 80265.303 628 7798 (main) .303 389 aL25 (fur) February 15,2002 t': 'ti i\ 't$VIA EXPRESS COURIER Mr. MelvynN. Leach, Chief Fuel Cycle Licensing Branch Mail Stop T-8A33 Office of Nuclear Materials Safety and Safeguards U.S. Nuclear Regulatory Commission 2 White FlintNorth 11545 Rockville Pike Rockville, \,[D 20852-2738 /cvl*ll i ll .. I\6i\o\(; \'(-. .\(r a co (o +9 .,{.9 Re: U.S. Nuclear Regulatory Commission letter of November 30, 2001 White Mesa Uranium Mill Source Material License No. SUA-1358; Docket No. 40-8681 Dear Mr. Leach: International Uranium (USA) Corporation ("IUSA") hereby responds to the question relating to the Jones Well in your letter dated November 30, 2001. In its letter to the U.S. Nuclear Regulatory Commission ('NRC") dated November 19,2001, IUSA provided concrurence that the Jones Well is located cross gradient, rather than down gradient, of existing operations and site activities at the White Mesa Uranium Mill (the "Milf'). The purpose of this letter is provide the NRC further detail that IUSA has been able to obtain. regarding the Jones Well. Under separate cover, IUSA will respond to NRC's questions regarding control of potential dust and protection of groundwater relative to IUSA's practice of stockpiling alternate feed on the Mill's ore pad. These questions were also mentioned in NRC's November 30, 2001 letter, and were detailed in NRC's letter to IUSA dated January 14, 2002. INTRODUCTION Over time, certain details regarding the Jones Well have been documented in numerous sections of reports concerning the occurrence of groundwater in the vicinity of the Mill, Mr. Melvyn N. Leach, il. **a February 15,2002 Page 2 of5 purposes of watering approximately 30 head of cattle and l0 horses, under Water Right 09-193. In the following sections, IUSA lists data from three of the submittals previously sent to NRC that contained information regarding the Jones Well. In addition, IUSA provides a sunmary of information gleaned from the Utah.gov website, as well as a swnmary of the current itutor of the well, followed by an assessment of the potential that this well could be impacted from site activities. Environmental Report In the Envirorunental Report - White Mesa Uranium Project. San Juan Countv. Utah (Dames & Moore, January 30,1978;the "Environmental Report"), Table 2.6-1 lists details for the Jones Well as follows: . Well Identification No. (from Table 2.6-l):37. Utah Appropriation No.: 27954. Location: Section 33, Township 37S, Range 22E . Owner/Operator: Alma U. Jones. Nature of Use: Stockwatering. ProducingFormation: Dakota./Morrison. Depthof Well: 200ft.. Casing Depth: 200 ft.. Size of Casing: 4 %" O.D.. Yield of Well: 0.015 CFS Plate2.6-3 of the Environmental Report shows the location of the subject well in Section 33. Copies of Plate 2.6-3 and Table 2.6'l ue attached. The location of the Jones Well is to the south/southeast of the present Mill facilities. It shoulilbe noted that the Mill property ownership has expanded considerably since 1978, and now includes the property on which the Jones Well is located. Hvdroseolosic Evaluation Table 1.1 of the Hydrogeoloeic Evaluation of White Mesa Uranium Mill (Titan, 1994; the "Titan Report") lists details for the subject well as follows: . Water Right: Alma U. Jones. Location: Section 33, Township 37S, Range 22E . Potential yield (estimated prior to drilling): 0.015 cubic feet per second (CFS) . Depth: 200 feet. Use: Stockwatering S:11r,4RR\l.iRCQuestions(general)\NRCletterofNovembe130200l\lettertoNRCrejoneswellfinal02l502 Mr. Melvyn N. r"u.rrl.S. NRC February 15,2002 Page 3 of5 September 2001 Map A September 2001 map sent to the State of Utah and to the U.S. NRC entitled White Mesa Mill Topographic Mao - 2001 Contour Base shows the estimated location of the subject well, southeast and east of the Mill facilities. Records from Utah.eov Website In addition to the above, records on Water Right 09-193 from the Utah.gov website contain a small amount of additional detail regarding well construction, as follows: *9114159 The applicant appeared at the hearing held at 4:00 p.m. June 15, 1959, in the courthouse at Monticello, Utah. At this hearing the applicant stated that Mr. C.M. Conway drilled this well in March of 1956, to a depth of 200 feet, using 4-inch casing. All aquifers were perforated. The static level of water being approximately 100 feet below ground surface. Mr. Conway bailed 97.5 g.p.hour from the well. This well is not used but it is planned to deepen this well." The State record contains no information on dates following the above, nor do they contain any indication that the well was ever deepened. IUSA notes that the 97.5 g.p.hour yield estimated and reported by the driller when he bailed the well would be approximately an order of magnitude less than the 0.015 CFS yield estimated for appropriation purposes. Current Status Mill personnel inspected the well in February 2002 and reported that the well, which is constructed of 4-inch standard steel casing, is capped with a 4-inch threaded steel cap. The cap is fastened so tightly that it cannot be removed by hand. The well is not being put to any beneficial use, including stockwatering. The well is located on fee land owned and controlled by the licensee. During the week of February 4, 2002, Mill personnel interviewed local ranchers and farmers who have grazed cattle in the immediate area during the past 40 years. These individuals reported that, to the best of their knowledge, the Jones Well was last used for stock watering purposes in the early 1970's. None of these individuals, nor any of the Mill personnel who live in the area, can recall the water from this well having been put to any beneficial use since the Mill began to be permiued, which was in 1978. The last attempt to collect any water from the Jones Well took place during a groundwater split sampling event performed in 1999, in cooperation between IUSA and the Utah Department of Environmental Quality. At that time, it was impossible to collect S:\MRR\NRCQuestions(generalINRCletterolNovembe130200l\lettertoNRCrejoneswellfinal02l502 Mr. MelvynN. Leach, il. *a February 15,2002 Page 4 of5 any water from the Jones Well, because the well contained only a very small amount of water mixed with mud. The Jones Well is depicted in Figure 2.1 of the Titan Report as being east of the Mill tailings facilities. The hydraulic gradient in the perched groundwater zone at the Mill site has historically been to the south and southwest, which would not be in the direction of the Jones Well. Recent water level increases observed in perched zone wells along the eastem side of the Mill property may indicate a somewhat more westerly hydraulic gradient, although the data indicate that a southerly gradient still exists near MW-4. In view of these current data, which still support the site conceptual model of a southwesterly and southerly hydraulic gradient, it is reasonable to assume that the Jones Well has little potential for being impacted by Mill site activities. Furthermore, as reported in numerous reports concerning investigation of chloroform detected at MW-4, thi data indicate that no monitoring wells show any impacts from site activities. Rather, the chloroform contamination detected in MW-4, which is the only contamination detected at the site, resulted from the use of a sanitary leachfield, prior to Mill operations. Because the Jones Well is located much fhrther away from the locations of site activities than the wells that are located to monitor near those active areas, and because the monitoring wells indicate no impact from site activities, the monitoring data support the conclusion that the Jones Well has little potential for being impacted by Mill site activities. In addition, the reported low yield of the Jones Well (approximately 1.5 gpm) is indicative of its being in an area of low hydraulic conductivity, which, combined with the gradient considerations, further decreases the likelihood that any contaminants would be transported to this well. Finally, as noted above, the well has not been put to any beneficial use for approximately 25 or more years, and it presently appears to contain so much silt and mud as to be unusable. SUMMARY AND CONCLUSIONS In response to the NRC's letter of November 30,200l,IUSA has hereby transmitted to the NRC the above details regarding the Jones well. Data from three reports or submittals that contained information regarding the Jones well are detailed above, and indicate the following regarding the Jones well: . It is a shallow, poorly-producing well, that was drilled in March of 1956, to a depth of 200 feet, using 4-inch steel casing . Water was measured at a depth of approximately 100 feet below ground surface at the time of drilling . Yield was only about 1.5 gallons per minute at the time of drilling, but the well currently yields no water S:\tvlRRNRCQuestions(general)\NRCletterofNovember30200l\leftertoNRcrejoneswellfinal02l502 Mr. MelvynN. Leach,t. **a February 15,2002 Page 5 of5 With respect to well use, as reported in State records, the applicant stated in 1959 that the well was not being used, but that the applicant planned to deepen the well prior to using it. The state records contain no indication that the well was ever deepened. Information obtained in interviews indicates that the well was last used for stock watering in the early 1970's, and that it has been unused for more than 25 yeurs. Finally, IUSA concludes that that the Jones well has little potential for being impacted by Mill activities for the following reasons: . Hydraulic gradient in the perched groundwater zone is to the south and southwest . Water quatity data demonstrate that site activities have had no impact on groundwater quality . Low likelihood of transport to the well due to poor hydraulic properties Should the NRC have any questions regarding this submittal,I can be reached at (303) 389.4131. Sincerely, h-U,-U Michelle R. Rehmann Environmental Manager MRR Attachments cc: Ronald E. Berg/IUSA Richard E. Bartlett, IUSA David C. Frydenlund, IUSA Ron F. Hochstein,IUSA William von Till/IrlRC William J. SinclairAJDEQ Tom Rice, Ute Mountain Ute Tribe Loren Setlow, U.S. EPA Offrce of Radiation and Indoor Air (6608.f) Paul Giardina, Radiation Program Manager, U.S. EPA, Region 2 S:WRR\NRCQuestions(gcncral)NRCIetterolNovcmber302O0l\lcttertoNRCrejoneswcllfinal02l502 iK' TR VIJ ilttts It UIG IX -*ili'i o 't. rJ 'i( j^/,ll 'yo i.(rUMBER ANO LOCATIONa2 l\\l-, 33 WATER WELL irr# ,^! v.! 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Hwy. l9l . P.O. Box 809 ' Blanding, UT 8451I o Mr. William Von Till Proj ect Manager/Hydrogeo lo gist U.S. Nuclear Regulatory Commission .: 1 1545 Pike Two White Flint North ', . Rockville, MD 20852-2738 .,i' , Mail Stop T7J8 435-678-2221 (phone; ' 435-678-2224 (fttx) May 29,2001 ffi, rioi tni v 'l'.)'.i .i \tr-, \r\{l 1. 4,,, i,. , ,.: /.7 RE:Cell4-A Leak Detection System Follow-up Report Source Material License No. SUA-1358 Docket No. 40-8681 Dear Mr. Von Till: This letter transmits to the U.S. Nuclear Regulatory Commission ("NRC") the follow-up investigative report of the recent apparent exceedance of the prescribed infiltration rate into the leak detection system ("LDS") of Tailings Cell4-A at the Intemational Uranium (USA) Corporation ("IUSA") White Mesa Uranium Mill (the "Mill"). While Cell4-A has a double liner system and there is no evidence or expectation of any release to the environment through the bottom clay liner, the Mill is required, under License Condition 1 1.3.D of its license, to notiff the NRC by telephone within 48 hours of determination of a flow rate into the LDS greater than 1 gallon per minute (>1 gpm) and submit a report within thirty days which details the mitigative actions taken and their results. Mill staff determined on March 27 ,2OOl that the infiltration rate into the LDS appeared to exceed the 1 gpm level and subsequently notified IUSA's Corporate Management on that date. IUSA Corporate Management notified the NRC of the apparent excessive infiltration rate via telephone on March 28,2007. IUSA submitted a preliminary report to the NRC on Apil27,200l. The attached report discusses the results of mitigative actions currently underway, additional planned mitigative actions, and suggested corrective actions. As NRC is aware, Cell4-A is not in use and its synthetic liner is in need of repair before it can be put into use. IUSA is currently in the process of updating the Cell 4-A design, with the intent of removing the existing crystals in the cell and installing a new synthetic liner system. If you have any questions or concerns regarding this matter, please, do not hesitate to contact me at (435) 678-2221. William N. Deal Manager, White Mesa Mill Intemational Uranium (USA) Corporation. cc: William J. Sinclair Ron Hochstein RonBerg Michelle Rehmann David Frydenlund CELL 4.A LEAK DETECTION FOLLOW.UP REPORT Submitted by TNTERNATTONAL URAIIUM (USA) CORPORATION WHITE MESA MILL License No. SUA-1358 Docket No. 40-8681 May 29,2001 a ?;:rN:;Sf Detection rort Tn RePort Page I of5 1.0 INTRODUCTION The White Mesa Mill (the "Mill") is currently operated by Intemational Uranium (USA) Corporation ("IUSA") under Source Material License SUA-I358 (the "Mill License"). The Mill's tailings Cell4-A was originally constructed and permitted by the NRC in January of 1990. Its liner system consists of two liners: a 40 ml HDPE synthetic top liner and a twelve inch compacted clay bottom liner. Between the two liners is a leak detection system ("LDS"). In addition, there is a slimes drain system on the top surface of the synthetic liner. The Cell was initially used for storage and evaporation of process solutions. Early problems with the synthetic liner installation limited its use to only solution storage, and no tailings solids have been discharged to the Cell. During the early years of operation the evaporation of process solutions resulted in the precipitation of dissolved solids into the bottom of the Cell. No additional process solutions have been added to the Cell for several years, but the original crystals have remained. The Cell has not been in use for several years, and, as the NRC is aware, its synthetic liner is in need of repair before the Cell can be put into use. ruSA is currently in the process of updating the design of Cell 4-A with the intent of removing the existing crystals and installing a new synthetic liner system for the Cell. While Cell 4-A has a double liner system, and any leakage through the top synthetic liner is designed to be pumped out through the LDS and, in any event prevented by the bottom clay liner from being released to the environment, an excessive rate of flow from the synthetic liner to the LDS would indicate that the system is not performing as designed and mitigative actions would be required by the licensee. License Condition 11.3.D.3 of the Mill License states the following: "Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. If the flow rate is equal to or greater than one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; 2. Continue to measure and record LDS "depth to fluid" measurements weekly; and 3. Notify NRC by telephone within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notifying NRC by telephone, in accordance with License Condition 9.2. The written report shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results." During a review of pump rates from the LDS for Tailings Cell 4-A by Mill staff on March 27 , 2OOl, the flow rate was calculated to be in excess of 1.0 gallon per minute (gpm). Subsequently, on that date Mill staff notified IUSA's Corporate Management via telephone of the apparent Cell 4-A Report_5-29-01 .doc 2.0 ;r:'i ii hTk Detection Forlun RePort Page 2 of5 excessive infiltration into the LDS and, after further review of all available information, IUSA Corporate Management notified the NRC via telephone, on March 28,2001. At that time, IUSA committed to submit a preliminary report by April 27, 2001 as per License Condition I 1.3.D.3. In the Apil 27,2001 report, IUSA committed to sending a follow-up report within 30 days of the date of that report. License Condition 9.2 states that "All written notices and reports to the NRC required under this license, with the exception of incident and event notifications under 10 CFR 20.2202 and 10 CFR 40.60 requiring telephone notification, shall be addressed to the Chiel Uranium Recovery and Low-Level Waste Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards". It should be emphasizedthat, while notification has been given to NRC and mitigative actions are required under License condition 11.3.D, as a result of the increased flow rate to the LDS, there is no evidence nor expectation that there has been any seepage or release through the bottom clay liner into the environment. As a result, there has been no incident or event requiring notification under either 10 CFR 20.2022 or 10 CFR 40.60. This report will review the results of the mitigative actions taken to date and further analysis of the cause of the infiltration into the LDS and proposed mitigative actions. RESULTS OF IVTITIGATIYE ACTIONS TO DATE Since the submittal of the preliminary investigative report on April 27,2001, the LDS has been pumped nearly continuously (the pump was shut down for several hours on May 17, 2001 for maintenance) ata pump rate of approximately 11.0 gpm. The transferpump in Cell 4-Ahas operated intermittently to pump solution from the interior of Cell 4-A to Cell 3. The levels in the LDS have dropped 1.55 feet (18.6 inches) since the preliminary report was written. Cell 4-A Report_5-29-0 I .doc Cell4-A Leak Detection Folln Report May 29,2001 Page 3 of5 3.0 ANALYSIS OF CURRENT INFILTRATION RATE The potential causes for the infiltration into the LDS are: a) Initially, Mill staff suspected that the increased amount of infiltration into the LDS could be attributed to the heavy amounts of precipitation received at the Mill during late fall and early winter of 2000. Such precipitation events have appeared to impact the LDS in previous years, although a direct correlation is difficult to show with the data, and in no previous years has the flow rate to the LDS exceeded 1.0 gpm. It now appears that this scenario is not the cause of the increased flow rate in the LDS, as enough time has elapsed to pump out any precipitation that may have accumulated beneath the HDPE liner from precipitation. b) Mill staff also suspected that the current excessive infiltration rate into the LDS may be the result of the aforementioned precipitation infiltrating beneath the liner then freezing, causing a pooling effect as the weather warmed. It seems possible that this scenario could in fact affect the infiltration rate into the LDS and subsequent pumping rate from the system. As stated above, however, it now seems unlikely that this is the cause of the increased flow in the LDS as enough time has elapsed to pump out any such pooling of solution. c) Another potential cause of the infiltration is the mechanical failure of a check valve, which was located on the discharge of the Cell 4-A sump pump. This sump pump is on the surface of the crystals in Cell4-A and is used to pump to Cell 3 any liquid that may have accumulated in Cell4-A. The LDS pump also pumped into the same discharge line as the sump pump, through a check valve. During one pumping event, when the sump pump was operating, the check valve failed and the solution from the sump pump was pumped into the LDS. The volume of fluid pumped is unknown. This scenario has also been ruled out, as the maximum volume that could have been injected into the LDS due to equipment failure is far less than what has been pumped from the system. d) A potential leak in the HDPE lining under the area in which solution crystals have formed. This now seems to be the most likely cause of the increased flow into the LDS. Cell 4-A Report_5-29-0l .doc i 4.0 i,liiihTk Detection FoUe RePort Page 4 of5 ONGOING MITIGATIVE EFFORTS Since March 28,2001 the pumps in the LDS have been operating nearly continuously. The piping of the leak detection pump and the Cell 4-A sump pump have been changed such that each pump has a dedicated discharge line, which discharges solutions to Cell 3. As stated earlier in this report, the level of solution has dropped approximately 1.55 feet since the writing of the preliminary report. Operation of this pump will continue until the LDS is pumped out. The Mill also purchased a pump for the slimes drain in order to drain that system as well; however, this pump had to be installed in the LDS when the leak detection pump failed. Another pump has been ordered for installation into the slimes drain. Pumping and monitoring of the Cell 4-A LDS, slimes drain and sump pump will continue, until the infiltration rate into the LDS is stabilized or stops. 5.0 FUTURE MITIGATIVE ACTIONS As mentioned above and in the preliminary report, ruSA has been investigating the removal of the crystals from Cell4-A, in connection with the redesign and reconstruction of Cell4-A. Both mechanical removal and dissolution of the crystals have been considered, with the latter being the preferred altemative. Preliminary test work at the Mill indicates that a very mild caustic solution will effectively dissolve the crystals. The process would involve the addition of solution to the crystals using a sprinkler system followed by a period of time to allow the solution to dissolve the crystals. Once sufficient solution is generated it will be pumped from Cell 4-A to Cell 3 and the cycle will be repeated. It is estimated that once the process is started it will take approximately three to four months to remove all of the crystals from the Cell. Once the crystals are removed from the cell, the Cell will be empty. Currently, a work plan, accompanied by a Safety Analysis Plan (SAP), is being developed to begin the crystal dissolution and removal as discussed in the above paragraph. This plan should be finalized in the next few days, and will be submitted to the NRC for review prior to implementation. The results from the recent quarterly sampling of the Point of Compliance (POC) wells have been received and reviewed by Mill and IUSA Corporate staff. As expected, the data did not indicate any impact from the increased flow into the LDS. Mill environmental staff has been instructed to monitor the depth to water in Monitor Wells adjacent to Cell 4-A on a weekly basis. The results of these monitoring efforts will be available for review by NRC at the Mill. Cell 4-A Report_5-29-01 .doc * 6.0 ;,:,liiffif Detection For!'i' ' ,'-^. Page 5 of5 CONCLUSIONS At this time, there is still insufficient data available to develop any final conclusions regarding the cause of the increased infiltration into the Cell 4-A LDS; however, it appears most likely at this time that a leak may have developed in the HDPE liner below the surface of the crystals. As stated above, as ongoing mitigative actions, the current pumping program, including the pumping of solutions from the interior of the cell, and the weekly monitoring of depth to water in the monitoring wells adjacent to Cell4-A, will continue until the system is dried out. As a long-term mitigative action, ruSA will, subject to NRC approval, ftnalize and implement a work plan to remove the crystals using the dissolution process, and remove the contents from the cell. As Cell 4-A has a double liner system, there is no evidence or expectation that this increased flow rate to the Cell4-A LDS has resulted in, or will result in, a release to the environment. An updated status report of this investigation and mitigative actions will be submitted to NRC within 30 days after completion of implementation of the removal of the crystals from Cell 4-A, outlining any new data and the results of the mitigative actions. Cell 4-A Report_5-29-01 .doc IrrsRs.rrrot-O Unlxrur,r (use) ConponATroN Independence Plua. Suite 950 o 1050 Seventeenth Street r Denver, CO 80265 . 303 628 7798 (main) o 303 389 "1125 ttrr"r) November I l, 1999 ). I jili ,-.. .'liuS ji,ii.i 0a1.r:i.,. '" ,.- .: ,.' UCrl'1'" )' \ Re: NRC Cheirmen Dicus' July 29, 1999, Responsc To Your July 12, 1999, Letter Resardine lle.(2) Bvoroduct Material At F[TSRAP Sites Dear Congressman Dingell : I am writing with regard to former Nuclear Regulatory Commission (NRC) Chairman Greta Joy Dicus' July 29, 1999 letter (hereinafteE the "Dicus letter") responding to your July 12, 1999 correspondence in which you raised concerns about the NRC's regulation of the disposal of lle.(2) byproduct material located at various Formerly Utilized Sites Remedial Action Program (FUSRAP) sites. Former Chairman Dicus' response to your inquiry requires clarification. The Dicus letter's responses to the various questions posed in your letter are apparently based on a single premise: pursuant to Section 83 of the Atomic Energy Act (AEA) as amended, NRC does not have the authority to regulate the cleanup of FUSRAP material if the material was not generated by an activity licensed by the NRC on the effective date of the Uranium Mill Tailings Radiation Control Act of 1978 ([JIVITRCA).' Based on this premise, the Dicus letter concludes that, since FUSRAP material was not generated pursuant to an activity licensed by the NRC on the effective date of UMTRCA NRC lacks the authority to regulate that material. This conclusion, and the premise upon which it is based, are faulty in several significant respects. First, as discussed in my August 27, lggg letter to Chairman Dicus (see enclosed) and contrary to the Dicus letter's premise, a plain reading of the AEA reveals that Section 83 in no way limits NRC's authority to license or otherwise regulate pre-1978 byproduct material. Section 83 simply provides that a license for I le.(2) blproduct material that is in t As a convenient slrcrthand we refer to material that fits this description (i.e., materid that othenvise satiffies the definition of 'byproduct rnaterial" in Section lle.(2) of the AEA but that was not generated by an activity that nas licensed by NRC as of the efrective darc of UMTRCA) as 'pre-197t" byproduct material. This is distitrguished from 'poot-197t" blgoduct material, which is marcrial ttnt was generated either after the efrective date of LTMTRCA or by an activity rhat was licensed as of the efrective date of t MTRCA. {The Honorable John D. Dingell United States House of Representatives 2328 Rayburn House Offrce Building WashingtorL DC 205 15-61 15 The Honorable lohn D. Dingell November ll, 1999 Page2 effect on or after the effective date of Section 83 must contain certain provisions pertaining to the transfer of ownership and custody of both the byproduct material produced pursuant to such license and the land used for disposal of that byproduct material. Contrary to the Dicus letter's assertiorl Section 83 does not provide that the Commission can only license materials that have been produced pursrant to an already-existing license. In fact, the statute requires the very opposite: under Section 8l of the AEA any person who seeks to possess transfer or receive byproduct material as defined in Section I le.(2) of the AEA must obtain a license to do so, without regard to the date when the material was created or whether it was created pursuant to a license. Next, the Dicus letter ignores the fact that the material present at FUSRAP sites was generated by NRC's predecessors, which undeniably makes it AEA waste, like materials at Title I uranium mill tailings sites and Title II sites with so-called "commingled" Atomic Energy Commission (AEC) and commercial tailings. In light of the fact that the Manhattan Engineering District (t!GD) and the AEC, the precursors of NRC and the Department of Energy (DOE), were not required to have licenses for the FUSRAP materials they generated,z it makes no sense to treat pre-1978 and post-1978 byproduct materials differently and to assert that NRC is powerless to regulate pre-1978 byproduct material, solely based on the fact that the material was not generated pursuant to an AEA license. Moreover, as discussed in detail in the enclosed Addendum to the National Mining Association (NMA) White Paper on regulation of the uranium recovery industry (August 1999) (the *NMA White Paper Addendum"), the erroneous and unsupported interpretation of Section 83, which seems to underlie the Dicus letter, is inconsistent with the position NRC has taken in the past on this issue and ultimately detracts from public health and safety and inures to the benefit of no one. If the Commission depalts frcm i,s previous position" thar it ha. authority to regulate pre-1978 byproduct material, and furstead NRC follows tre approach suggested by the Dicus letter, this will present a seriou threat to the continued protection of public health and the environment as wastes ftat satisry the definition of I le.(2) blproduct material will be disposed of in a manner that does not provide the protections that Congress intended for such material wtren it enacted LJMTRCA. Specifically, turder the approach outlined in the Dicus letter, pre-1978 byproduct material would not have to be disposed of in licensed I le.(2) disposal facilities, but instead could be disposed of z Similarly, NRC and DOE are not r€quired to have licenses for AEA rnaterial, since they arc not considered "personso ruder the AEA ard as such are not srbject !o the Act's licensing requiremens. &e 42 U.S.C. $ 20la(s). In fact, DOE only becomes a licensee of NRC in certain stanrtorily defined circumstances (e.9., as the long-term custodian of uranium/thorium mill ailings disposal facilities pursuant to UMTRCA). Consequently, the presence of FUSRAP material at a DOE site does not implicate the need for an NRC license. The Honorable lohn D. Dingell November ll, 1999 Page 3 in solid or hazardous waste (i.e. RCRA) landfills. Consequently, even though pr+'1978 byproduct material satisfies the definition and is in all respects the same thing as post-1978 I le.(2) byproduct material, pre-1978 I le.(2) byproduct material, including FUSRAP material, could be disposed of in facilities that are not licensed under the AEA and that do not satisfy the long term stability and other technical criteria set out in NRC's and EPA's regulations under UMTRCA.T Furdrermore, unlike wastes disposed of in licensed lle.(21 facilities, these pre-1978 byproduc't material wastes would not be subject to long-term govenrment custody and monitoring and perpetud licersing following final closure of the sites used for their disposal.. This danger is real. Publicly available information indicates that at least one hazardous waste disposal facility that is not licensed to accept lle.(2) byproduct material - the Buttonwillow facility in California- has already accepted pre-1978 byproduct material for disposal. In additiorL a second hazardous waste facility - the Envirosafe facility in Idaho - has been selected by fte U.S. Army Corps of Engineers (USACE) to receive pre-1978 byproduct material from variou FUSRAP sites across tre country, despite the fact that ttre facility is not licensed to dispose of I le.(2) byproduct material. Similarly, Envirocare has requested permission to utilize its LLRW facility, uihich as a result of a waiver by the State of Utah has no assured long-term governmental custodiaru to dispose of pre-1978 byproduct material. The position set forth in the Dicrs letter also poses a threat to public health and the environment by jeopardizing the transfer to DOE of NRC licensed I le.(2) disposal facilities that consistent with prior positions articulated by the Commissioq accepted pr+1978 byproduct material for disposal in the past. At least one lle.(2) disposal facility has previously accepted pre-1978 byproduct material (pursuurt to an NRC license) that under the Dicus letter may now not be considered lle.(2) byproduct material. If the interpretation set out in the Dicus letter prevails, material that under the Dicus letter's approach is deemed to be non-lle.(2) material will have been cornmingled with I le.(z') byproduct material that was already present at the facility. r This is precisely the concern rhrt uas raised by Senators tlatch and Bennec and Representatives Cannoq Cook and tlansen h their recent letter to the U.S. Army, where the Congressmen state tlrat: 'If the [Anny Corps of Engin€€rsl follo*s thc ill-advisd poeition of NRC's stafr and fails 3o exercise regulatory control, these radioactivc [Fc-1978 bproductl materials could bc dispced at landfills which arc not designed or operated to handle thc unique characterisics of radioactive byproduct matetrial." Leuer from Senator Orrin tlatct\ Senator Robert Benneu, Representative Chris Cannog Represenative Menill Cook and Representative James Hansen to Mr. Joseph W. Westrtnl, Assistant Secreury of the Army - Civil Worts (June 23, 1999). r Mor€fler, an unlicensed sirc that disposes of I le.(2) byproduct material could conceivably be required, after disposing of srch material, to comply with Ure technical criteria and other requirements set out rmder LJMTRCA (to ttre surprise of the site operator). Even if this rvere th case, however, DOE presunably would still be reluctant or unwilling to accept title and custody of the site following closure because lle.(2) and non-lle.(2) material would have been commingled at the site. The Honorable John D. Dingell November ll, 1999 Page 4 Through is policies governing I te.(2) disposal facilities, the Commission has consistently sought to prevent this sort of commingling in order to ensure that lle.(2) disposal facilities would not be subject to dual regulation and that DOE would be free to accept crstody and title to such sites as the long-term govemment cutodian following site closurg consistent with AEA Section 83.s If NRC were to adhere to the position set out in the Dicus letter, it effectively would be sanctioning precisely the sort of corrrmingiing that the Commission has sruggled so hard to avoid over the years. We note that even to the sophisticated readeq the Dicts letter remains somewhat unclear as to wtrether NRC has reached an ultimate determination regarding the status of FUSRAP materials. For example, when former Chairman Dicus suggests trat NRC does not have authority to regulate FUSRAP material, it is unclear whether she is referring to authority over the materials at the FUSRAP site or material that has left the zuSRAP site and that is to be sent elsewhere for final disposal. As discussed in the enclosed NMA White Paper Addendum, NRC does indeed have jurisdiction over FUSRAP material when it leaves the FUSRAP site for disposal and, as it must, arrives at an NRC licensed lle.(2) facility. In contras! NRC may not license the materials a, a zuSItAP site because DOE, which has title to and custody of the FUSRAP site and the \yaste materials located there, is not a "person" under the AEA and therefore is not required to have a license. See n.2 supra. Moreover, the Dicus letter appears to be somewhat internally inconsistent. If it is NRC's position that FUSRAP materials are not regulated by the Commission and that legislation would be required to regulate it,. rrrry is it that NRC licensed Envirocare, an NRC lle.(2) licensee, to receive FITSRAP material for disposal in iB I le.(2) impoundment? If it is NRC's s *e, e-g., Uranium Mill Facilities, Notice of Two Guidane Docttments: Final Rwised Guidance on the Disposal of Non-Atomic Energ Act of 1954, *ction lle.Q) Byproduct Material in Tailings Impoundnents; Final Position and Guidorce on the Ue of Uranium Mill Feed Materials Other Than Natural Ores,60 Fed. Reg. 49,29ti (1995). c On page 4 of Ctairman Dicus' letter states: We believe legislation would be required to give NRC authority to regulate Section I le.(2) byproduct material in the FUSRAP program. I On page I however, the lerer sates: Additionally, therc are NRC licensed facilities that have accepted pre-197t lle.(2) blaroduct mat€rial for direct diryosal or processing and disposal in their mill tailings impoundments. For oomple, Envirocare of Utah has an NRC license that allows it to accept some forms of this materid directly for disposal. Pre-1978 lle.(2) byproduct rraterial presented to NRC or Footnote continued on next page The Honorable John D. Dingell November 11, 1999 Page 5 position that FUSRAP material is not subject to regulation as I le.(2) byproduct material (in a similar manner as po$-1978 I le.(2) byproduct material), and if it is NRC's policy not to allow non-lle.(2) material to be placed directly into an I le.(2) tailings impoundment without satisfying its *lYon-l le.(2) Poliry" (which requires satisfaction of nine criteria, including State and Compact approval), wtry did NRC allow FUSRAP materials to go to these licensed I le.(2) disposal facilities without ensuring the "Non-l le.(2) Policy" was suisfie4 uihich in fact it was not?e As indicated above, these issues are analyzed extensively in the following enclosed documents: National Mining Association (NMA) White Paper Addendum (August 1999); Letter from Earl E. Hoelleq President of International Uranium (USA) Corporation (ruQ to Chairman Dicus (August 27,1999) with attachments; and r Letter from Earl E. Hoellen to Chairman Dicus (October 6, 1999) with attachments. For the reasons stated above, and discussed at length in the attached documents, NRC should regulate zuSRAP materials as I le.(2) byproduct material and require facilities disposing of such materials to have an appropriate NRC license. This would not, of course, require NRC to regulate FUSRAP material at the zuSRAP sites since those sites are regulated by DOE, which is not a "person" requiring a license under the AEA Footnote continued from previous page Agreement State licensed facilities for disposal or processing must comply with all requirements applicable to those facilities. @mphasis add€d). Either the material is l le.(2) material or it is not If its is not, it carurot be directly disposed of in an lle.(2) impoundment without sati$ing NRC's'i[on-lle.(2) Policy." If the material isl le.(2), it mns be disposd of in a NRC licensed I le.(2) facility. s Similrly, tbe Dicrs letter is misleading in stating that NRC has not said pre-197t lle.(2) blproduct materid may be dispos€d of at a RCRA facility but rather that *there arc no NRC rules or regulations that preclude disposal of the material at a RCRA facility," since, as discussed above at r41e 2, Section 8 t of the AEA ptovides tlut '[nlo person may trander or receive in interstate ootrrmerce, manufacture, ptoduce, Eansf,er, acquire, own, po6s€ss, import or export any byproduct material" except as anthorized by NRC pursuant to the AEA 42 U.S.C. $ 2llr. nr The Honorable lohn D. Dingell November I l, 1999 Page 6 Finally, please accept my apologies for not providing you with this information at an earlier date, but I only received I copy of your letter to Chairman Dicus a few days ago. If I can provide you with any further informatioq please have one of your staffcall me at 303-389- 4150. Cordially, Enclosures oc: The Honorable Thomas J. Bliley, Jr. Chairman Richard A. Meserve Commissioner Greta Joy Dicrs (w/o enclosures) Commissioner Nils l.Diaz (w/o enclosures) Commissioner Edward McGaffrgarq Jr. (do enclosures) Commissioner Jeffrey S. Merrifield (w/o enclosures) Dianne R Nielsoru Executive Director, IJDEQ (w/o enclosures) William f. Sinclair, Director, UDEQ Division of Radiation Control (w/o enclosures) Edgar D. Bailey, Chiet California DHS, Radiological Health Branch (w/o enclosures) David Eisentrager, Idaho Division of Health and Welfare (w/o enclosures) Kip R Huton, USACE (do enclosures) The Honorable Carol M. Bro',vner, Administator, Environmental Protection Agency Karen D. Cyr, C.rcneral Counsel, NRC William D. Travers, Executive Director for Operations, I{RC (w/o enclosures) Parrl IL [.olrarrs, Director, NRC Office of State Programs (w/o enclosures) IohnT. C.reoves, Director,I{RC Division of Waste Management (w/o enclosures) John I. Surmeier, Chief, NRC Uranium Recovery urd Low Level Waste Branch (w/o enclosures) Maria E. Sctrwartz, NRC, Office of General Counsel (w/o enclosures) Fred G. Nelsoru Utah Attorney General's Offrce (w/o enclosures) Senator Orrin G. Hatch (w/o enclosures) Senator Robert F. Bennett (w/o enclosures) Representative Christopher B. Cannon (w/o enclosures) Represenative Menill A. Cook (w/o enclosrues) Re,presentative James V. Hansen (w/o enclosures) President and Chief Executive .i..rffi t,-ro*'Jdllli;;ffiIo*,*$* wASHtNGTON, D.C. 20s55-0001 February 2, 2004 Mr. Ron F. Hochstein, President and Chief Executive Officer lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, Colorado 80265 SUBJECT: LICENSE AMENDMENT 24 - SUA-1358 - FINANCIAL SURETY (REVISION) FOR THE WH|TE MESA URANIUM M|LL (TAC 1U0030) Dear Mr. Hochstein: Per the conversation between the NRC Project Manager, William von Till, and Harold Roberts on January 21,2004, and follow-up e-mail on January 22,2004, we have amended Source Material license SUA-1358 to revise the financial surety amount from $10,518,429 to $10,522,914. We had amended the license by letter dated December 31, 2003, with the $10,51 8,429 amount based on information received f rom your cover letter of March 4,2003. The attached amendment reflects the actual revised bond amount, as calculated under the White Mesa Mill Reclamation Cost Estimate (page 6 of March 4, 2003, plan) and requested in Harold Robert's January 22,2004, e-mail, of $10,522,914. An environmental review was not performed for this action since it is categorically excluded per 10 CFR Part 51.22(cX10Xi). lf you have any questions concerning this letter, please contact Mr. William von Till of my staff at (301) 415-6251 or e-mail at rwv@nrc.gov. R. Hochstein ln accordance with 1 0 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:/iwww,nrc.gov/reading-rm/adams.html. Gary S. Janosko, 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 Enclosure: License Amendment Number 24 cc: Dane Finerfrock, UT Tom Rice, Ute Mountain Ute Tribe Terry Brown, US EPA Region Vlll NRC FORM 374A BEGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SHEET Amendment No. 24 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Pad B of this condition: (1) Make changes in the facility or process, as presented in the application. (2) Make changes in the procedures presented in the application. (3) Conduct tests or experiments not presented in the application. B. The licensee shall file an application:for ah,amendrnent to the license, unless the following conditions are satisfied. D. The licensee shall maintain records of any changes made puriuant to this condition until license termination. These records sh,all inctude written safe.ty:,'and environmental evaluations, made by the SERP, that provide the basis for determin,ihg thar!,chahges are in compliance with the requirements referred to in Part B of this condition. :The'licenSee shall furnish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shall function in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] 9.5 The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, Docket or Reference Number 40-8681 9.4 (1) (2) (3) C. NRC FOBM 374A REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SIMET Amendment No. 24 for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the longterm surveillance fee. Within three months of NRC approvalof a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Docket or Reference Number 40-8681 shall enumerate pertinent,:radiation safety practices to be followed,; Additionally, written procedures shall be established for non-operational activities to include in-ptaht and environmental monitoring, bioassay analyses, and instrument::Calibrations, An up-to;'date copy of each written procedure shall be kept in the mill area to which it applies. ,:,::,l' ,:: ' ,' , Allwritten 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 procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preseruation Act (as amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). 9.6 9.7 NRC FORM 374A REGULATORY COMMISSION License Number suA-13s8 MATERIALS LICENSE SI'PPLEMENTARY SHEET Amendment No. 24 ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur until the licensee has received authorization from the NRC to proceed. The licensee shall avoid by pro1ect design, where feasible, the archeological sites designated "contributing" in the report submitted by letter dated July 28, 1988. When it is not feasible to avoid a site designated "contributing" in the report, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic ,Freservdtion Of{jcer (SHPO), dated April 13, 1981 . The licensee shall recover 16fqU,gh archeological excavation afi :bontributing" sites listed in the report which are located in or within,'100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclairned,tailings impoundment. Data recovery fieldwork at each site meeting these briteria shall be complet€:d prior to the starl of any project related distOr,bance within 100 feet of the site, but analysis and report'prepalation need not be complete. 9.9 The licensee is hereby exempted fr.sm the requirements of Section ZO.f 902 (e) of 10 CFR Part 20 for areas within the mill, provided that'.'afl entirAnces,,to the.mi'llrr::are conspicuously posted in accordance with Section 20J902 (e) and with the words;"'IAnyr:aiea Within this mill may contain radioactive material." 9.10 Release 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 or 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. 9.1 1 The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A, submitted on June 22,1999, and Flevision 3.0 submitted on July 7,2000. Prior to the placement of alternate feed material, ihe licensee shall determine that adequate cell space is available iorthat additional material. This determination shall be made by a SERP-approved procedure. Docket or Reference Number 40-8681 9.8 NRC FORM 374A REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SI]PPLEMENTARY SHEET Docket or Reference Number 40-8681 Amendment No. 24 SECTION 10: Operational Controls, 10.1 10.2 10.3 10.4 10.5 A. B. 10.6 10.7 The licensee is authorized to receive and process source materialfrom Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated October 30, and November 11, 1996. 10.8 The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. NRC FORM 374A REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SI]PPLEMENTARY SIIEET Amendment No. 24 [Applicable Amendments: 1] 10.9 The licensee is authorized to receive and process source material f rom Cabot Performance Materials' facility near Boyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended by submittals dated May 19, and August 6, 1997. [Applicable Amendments: 4] 10.10 Docket or Reference Number 40-8681 .,:.,::::' 10.11 The licensee is authoiiz€d to receive and process source material from,,Gameco Corporation's Blind River and Port Hope facilities; Iocated in Ontario, Canada, in accordan.t,..*'*n the amendment request dated June 4, 1998; ,and by lhe,;$ubmittals dated September:.1:4; S:eptember I6, September 25,OaIeO JUne 4, I YVU.; ,anO^O!. me.1$UDmlllals OaIeO SepIemDeF;,.1,4, .b,€pIeIT]D€f,,,1 October 7, and October 8, 1998:.: : ' . ::, ' 10.12 10.13 The licensee is authorized io r:eceive and p..".r source material ,f;rorn tn" St. Louis Formerly Utilized Sites RemedialAction Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March 2, 1999, and as amended and supplemented by submittals dated June,,2l, 1999; .Ju,he 29, 1 999 (2); and July 8, 1999. Prior to the licensee receiving materials from the St. LouiS FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. [Applicable Amendments: 13, 14] 1 0.14 The licensee is authorized to receive and process source material f rom the Linde Formerly Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March '16, 2000, and as amended and supplemented by submittals dated April 26, 2000, May 15, 2000, June 16, 2000, June 19, 2000, June 23, 2000. NRC FORM 3744 u.s. NU0R REGULAT.RY coMMrssroN MATERIALS LICENSE SI'PPLEMENTARY SHEET Amendment No. 24 Prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must make a determination ihat adequate tailings space is available for the tailings produced f rom the processing of this material. This determination shall be made based on a SERP-approved internal procedure. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 1 4] 10.15 10.16 Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must make a determination that adequate tailin:gS Sp:ace is::available for the tailings produced from the processing of this material. This determination Shall be made based on the SERP- approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 1 8] 10J7 The licensee is authorized to receive and process source material from the Molycorp site located in Mountain Pass, California, in accordance with statements, representations, and commitments contained License Number suA-1358 Docket or Reference Number 40-8681 u.s. NtaAR BEGULAT.RY coMMrssroNNRC FORM 374A License Number suA-1358 MATERIALS LICENSE ST]PPLEMENTARY SIIEET Amendment No. 24 in the amendment request dated December 19, 2000, and supplemental information in letters dated January 29, 2001, February 2,2001, March 20, 2001, August 1 5, 2001 , October 1 7, 2001 , and November 16, 2001. Prior to the licensee receiving materials f rom the Molycorp site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP-approved internal procedure. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. :: :: [Applicable Amendment: 20],, :r ':,:,,, ,,. ,,:,, ,: "' : :r :::: : 10.18: The licensee is authorized tb,,reCeive and process source material,from the Maywood site located in Maywood, New Jersey, in accordance with statements, representatiohs, and commitments contained in the amendment requests dated June 15, 2001, June 22,2001, Augus't 3, 2001, and supplemented by letters dated Novembdi l9, 2001, December 6, 2001 , December 10, 200r1,n March 11,2002, and July 1 , SECTION 11: 11.1 The results of sampling, ahatyses, surveys and monitoring, the teSults of calibration of equipment, repofts on audits and inspections,,a|| meetings and training courSes required by this license and any subsequent reviews, investigationS;r:and,,conective actions;r::shall be documented. Unless othenntise specified in the NRC regulations all such'docurnentation shall be maintained for a period of at least five (5) years. 11.2 The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Sudace water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually forwater or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. Docket or Reference Number 40-8681 NRC FORM 374A REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SI]PPLEMENTARY SIIEET Amendment No. 24 Groundwater sampling shall be conducted in accordance with the requirements in License Condition 11.3. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmentalsamples. [Applicable Amendment: 5],,,,.,,,, 11.3 The licensee shall implement a groundwater detection monitoring prdQram to ensure compliance to 10 CFR Part 40, Appendii A. The detection monitoring program shall'bb in accordan_ce with the report entitled, "Points of ComBliance, White Mesa Uranium Mill," submitted byo,:letter dated October 5, 1994, C. .,.,,:..i,...,.:.: Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license condition. The licensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels or a pH less than 5.0 is observed, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an annual basis, that fluid from the disposal cell has not entered the LDS by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. Docket or Reference Number 40-8681 C. D. E. A. B. NRC FORM 374A 11.4 11.5 11.6 REGULATORY COMMISSION MATERIALS LICENSE SIIPPLEMENTARY SIMET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 24 D. Upon indication that the LDS fluids originated f rom the disposal cell,.the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. lf the flow rate is equat to or greater than one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; 2. Continue to measure and record LDS "depth to fluid" measurements weekly; and 3. Notify NRC by telephone within 48,hou:rS, ih accordance with License Condition 9.2, and submit a wriiten report within 30 dayS,bf notifying NRC br'telephone,-in accordance with License Condition 9.2. The,writfen,.r6port shall include a desoriptlon of the mitigative action(s) taken and a discussion of the:rnitigative action results. . lf the calculated flOw"fate is less than one gallon per minute, the liCensee shall continue with weekly measurem.n,. of'lidbpth to fluid" in the LDS standpipes ,, 'r .,:":'. ,,,,, '.., ' E. All sampling, ,ahalysis, and,,evaluation of LDS fluids shall,,be documentbd and retained onsite until license termination tor NRC,',,in,sBection. ..:,::',,,.,. [Applicable Amendment: 8] ,,';,: ;,,,;,,;, ;,;:1. , Calibration of in-plant air and radiation monitoring:equpmeni shall be perfolned as specified in the license renewal applicatioih,,:r,iinder Section 3.0 otthe "Radiation:,Protection Procedures Manual," with the exception that in-piant air sampling equipment shall be cafibfated:at least quafierly and air sampling equipment checks shall be documo.nted,,,..,,'..l,, .,.,...,.;.,,, .,,,..,-..,. -,,::,.,,,: ,,,:::::,, The licensee shall perform an annual ALARA'aUdit of the radiation safety program in accordance with Regulatory Guide 8.31. UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 September 23, 2002 Ms. Michelle Rehmann, Environmenta! Manager lnternational Uranium (IUSA) Corporation I ndepende ner- Plaza, S uite 950 1050 Seventeenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 22 TO MATERIALS LICENSE SUA-1358 -- APPROVAL TO RECEIVE AND PROCESS ALTERNATE FEED MATERIAL FROM THE MAYWOOD SITE AT THE WHITE MESA URANIUM MILL Dear Ms. Rehmann: ln your letters dated June 1 5,2001, June 22,2001, August 3,2001, and supplemented by letters dated, NOvember 19,2001, December6, 2001, December 10, 2001, March 11,2002, and July 1, 2002, you asked that we amend your license for the White Mesa uranium mill to permit the receipt and processing of material from the Maywood site, located in Maywood, New Jersey. You propose to receive this material at your White Mesa uranium mill in Blanding, Utah, use this material as alternate feed for the primary purpose of removing the uranium so that it can be reused, and dispose of the process tailings in the mill's tailings pile. You estimate the material amount to be up to 600,000 cubic yards (840,000 tons) with an average uranium content of approximately 0.0018 percent by weight, or greater. However, you have stated in your request that you will only receive materials that are 0.01 percent uranium content or higner. You have determined, based on your review of the Maywood site information and use of your Listed Hazardous Waste Protocol, that this material does not contain listed hazardous waste. We have determined that your request to receive and process this material as alternate feed is acceptabte, and have amended your license accordingly. We have enclosed the amended license and our Technical Evaluation Report that provides our bases for granting the amendment. Our principal criteria for evaluating this request are contained in our guidance entitled, "Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores". We also ensured that this request complies with our requirements for uranium mills in 10 CFR Part 40, Appendix A. As you requested in your submittal, this material cannot be received by the mill until it has been determined that adequate cell space is available. ln approving the Maywood request, we have added the following license condition to your license: 10.18: The licensee is authorized to receive and process source materialfrom the Maywood site located in Maywood, New Jersey, in accordance with statements, representations, and commitments contained in the amendment requests dated June 15,2001, June22, 2001, August 3, 2001, and supplemented by letters dated November 19, 2001, December 6, 2001 , December 10, 2001 , March 11 , 2002, and July 1 , 2002. B t'"r;il l{10 I M. Rehmann 2 prior to the licensee receiving materials from the Maywood site, the licensee must make a determination that adequat,e tailings space is available for the tailings producedlrom the processing of this maierial. Thia determination shall be made based on a SERP appioved inteinal procedure. lf such determination requires the licensee to make Olilgn changes to the cells or the reclamation plan, the licensee shall submit an amendment request for NRC review and approval' prior to the licensee receiving materials from the Maywood site, the licensee must require that the generator otlne material certify that the material does not contain listed hazardous wastJ as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record' [Applicable Amendment: 22] An opportunity for a hearing on this amendment was provided in August 2001 (66FR 44384' August 23,2001). lf you have any questions regarding this letter or the NRC staff review, please contact the NRC prqect Manager, William ,oi Till, it (gOt ) 415-6251. ln accordance with 10 CFR 2.790 of the NRb's "RuleJof 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/reading-rm/adams.html (the Public Electronic Reading Room)' Sincerely, QP* )cd- DanielGillen, 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, Amendment No. 22 Enclosure 1: Technical Evaluation Report and Source Material License SUA-1358 Enclosure 2: Source Material License SUA-1358 cc: W. Sinclair, UT Tom Rice, Ute Mountain Ute Tribe Terry Brown, U.S. EPA Region Vlll Loren Setlow, u.s. EPA Office of Radiation and lndoor Air (6608J) Paul Giardina, Radiation Program Manager, U.S. EPA, Region 2 DOCKET NO.: LICENSE NO.: LICENSEE: FACILITY: TECHNICAL EVALUATION REPORT REQUEST TO RECEIVE AND PROCESS MAYWOOD SITE MATERIAL 040-8681 suA-1358 lnternational Uranium (IUSA) Corporation White Mesa Uranium Mill DATE: August 22,2002 PROJECT MANAGER: William von Till TECHNICAL REVIEWERS: William von Till- Project Management and Groundwater John Lusher - Health Physicist SUMMARY AND CONCLUSIONS We have reviewed lnternational Uranium (USA) Corporation's (IUSA's) license amendment application dated June 15, 2001, June22,2001, August 3,2001, and supplemented by letters dated November 19, 2001, December 6,2001, December 10,2001, March 11,2002, and July 1 ,2002, to amend its U.S. Nuclear Regulatory Commission (NRC) Source Material License SUA-1358, to allow its White Mesa Uranium Mill near Blanding, Utah, to receive and process up to 600,000 cubic yards (840,000 tons) of alternate feed material from the Maywood site located in Maywood, New Jersey. The Maywood site is being remediated under the Formerly Utilized Sites ilemedialAction Program (FUSRAP) by the U.S. Army Corps of Engineers. The materials are by-products from the processing of thorium and lanthanum from monazite sands. These materials would be used as "alternate feed material". We have reviewed IUSA's request using our formal guidance, "Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" provided in the NRC Regulatory lssue Summary 2000-23 that was mailed to uranium recovery licensees on November 30, 2000. We find the amendment request to be acceptable and have amended the license so that IUSA may process this material. DESCRIPTION OF LICENSEE'S AMENDMENT REQUEST By its submittal dated June 15, 2001, June 22, 2001, and August 3, 2001, and supplemented by letters dated November 19, 2001 , December 6, 2001 , December '10, 2001 , March 11 , 2002, and July 1,2OO2,IUSA requested that NRC amend Materials License SUA-1358 to allow the receipt and processing of material other than natural uranium ore (i.e., alternate feed material) at its White Mesa uranium mill located near Blanding, Utah. The proposed alternate feed materialwould come from the Maywood FUSMP site in Maywood, New Jersey. IUSA proposes to receive materials from the Maywood site for processing at its White Mesa uranium mill near Blanding, Utah, as alternate feed. IUSA is proposing to allow its millto receive and process up to 600,000 cubic yards (840,000 tons) of alternate feed material from the Maywood site. The Maywood site is being remediated under the FUSRAP by the U.S. Army Corps of Engineers. The materials are by-products from the processing of thorium and lanthanum from monazite sands. IUSA is proposing to condition its license to state that the mill shall not accept any of the Maywood material at the site unless and untilthe mill's Safety and Environmental Review Panel (SERP) has determined that the mill has sufficient licensed tailings capacity. The tailings capacity must be sufficient to permanently store: (1)All 11e.(2) byproduct material, as defined under the Atomic Energy Act of 1954, as amended, created by the processing of all of the Maynnrood material; (2) All other ores and alternate feed materials currently on site; and (3) All other materials required to be disposed of in the mill's tailings impoundments pursuant to the mill's reclamation plan. By letter dated November 16, 2000, IUSA developed a standard operating procedure entitled "Tailings Capacity Evaluation", which will be used in its evaluation. A draft EA was sent to the Utah Department of Environmental Quality (DEO) by letter dated September 21,2001, with a copy sent to the Ute Mountain Utes in White Mesa, Utah. This document was placed in the NRC's data management system, ADAMs, and made publically available. Since the time the Draft EnvironmentalAssessment was submitted for comment, staff issued a request for additional information by letter dated November 30, 2001, and IUSA responded by letters dated February 15, 2002, March 11,2002, and July 1, 2002. The February 15, 2OO2,letter from IUSA includes additional information on a well called the "Jones Well" in which NRC staff needed more information. The March 11, 2002,letter from IUSA provides additional information regarding the temporary storage of alternate feed materials on the ore pad regarding dust control, potential groundwater concerns, and surety cost issues. The NRC staff needed additional information regarding potential seepage of material while stored on the ore pad and IUSA adequately addressed those issues in their July 1 ,2002,letter. ln addition IUSA submitted, by letters dated December 6, 2001, and December 10, 2001, information that was missing from the original submittal relating to Attachment 2 of their submittal and other background information regarding the Maywood site. Site and Material lnformation The Maywood site is being remediated under the authority of the U.S. Army Corps of Engineers. To find detailed information about the Maywood site clean-up, visit the web-site http://www.fusrapmaywood.com/index.asp. This site began operations in 1895 and over the years monazite sands were processed for thorium, lanthanum, and other rare earth elements. Uranium was not extracted and remains in the process residues. The material is currently located in three pits and elsewhere on or adjacant to the Maywood site. Material in the three pits is licensed by the NRC under STC-1333 for the Stepan Chemical Company. This license covers 19,000 cubic yards of buried tailings. The Maywood material (pits and off-site materials) has been classified as byproduct material under Section 11.e.(2) of the Atomic Energy Act of 1954, as amended (attached). The average uranium content, based on 4000 samples, ranges from non-detectable to 0.06 percent by weight, with an average grade of 0.0018 percent uranium. However, IUSA is proposing to only receive material that contains higher than 0.01 percent uranium. The thorium content of tne material ranges from non-detectable to 3,800 pCi/g with an average ol gzq pCi/9. The thorium content is relaiively tow due to thorium extraction at the Maywood site. IUSA states that hazardous wastes regulated under the Resource Conservation and Recovery Act (RCRA) have not been identified in this material. IUSA also proposes that verification sampling at the tvtaywood site will be implemented to assure that the material does not contain hazardous wastes regulated under RCRA. STAFF TECHNICAL EVALUATION We have reviewed IUSA's request in accordance with NRC staff guidance entitled, "Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" provided in the NRC Regulatory lssue Summary 2000-23, and 1O CFR Part 40, Appendix A requirements. The staff guiEance (referred to hereinafter as the "Alternate Feed Guidance") requires that the staff make i-he following determinations in its reviews of licensee requests to process material other than natural uranium ores: (1) Whether the feed material qualifies as "ore" as defined in the NRC guidance for alternate feed; (2) Whether the feed material contains listed hazardous waste; and (3) Whether the feed material is being processed primarily for its source-material content. ln this evaluation, we discuss how IUSA has addressed each of these criteria in its application to amend the license. We also discuss the other considerations that affect the granting of this amendment. Determination of whether the feed material is "ore" For the tailings and wastes from the proposed processing to qualify as 1_1e.(2) byproduct material, theJeed material must qualify as "ore." ln the Alternate Feed Guidance, we define "ore" in part as: "...any other matter from which source material is extracted in a licensed uranium or thorium mill." IUSA has proposed to use alternate feed materialfrom the Maywood site that contains varying concentrations of uranium, a "source material" as defined by the Atomic Energy Act of 1954 (AEA). Uranium concentrations are estimated to be 0.0018 percent by weight, however, IUSA proposes to receive only materials from Maywood that contain 0.01 percent or higher uranium content. Because IUSA is proposing in this amendment request to extract the uranium from this material at their White Mesa uranium mill, we find that the proposed feed material qualifies as "ore" as defined in our guidance. Determination of whether the feed material contains hazardous waste Under the Alternate Feed Guidance, we would not approve proposed feed materialfor processing at a licensed mill that contains a listed hazardous waste. The purpose of this is to avoid dual regulation over the material at the Mill site. The IUSA amendment request addresses several measures that provide assurance that listed hazardous wastes will not be processed at the White Mesa mill. First, IUSA conducted its own review of information on potential listed hazardous wastes in existing Maywood documents. Second, IUSA also hired an independent consultant to review available information and perform a separate review for classifying various Maywood properties and determining which may contain listed hazardous waste. The consultant's analysis was included in the license amendment request. IUSA developed a listed hazardous waste protocol that has been accepted by the Utah Department of Environmental Quality (UDEO) (letter dated December 7, 1999). This protocol was used in IUSA's amendment request for the St. Louis, Linde, W.Fl. Grace, and Heritage Mineral alternate feeds and found acceptable by the NRC. IUSA used documents completed as part of the characterization and clean-up of the site for their research on potential hazardous wastes in the material. The U.S. Department of Energy, which was responsible for clean-up oversight prior to the Army Corps of Engineers ( ACE), issued a Final Remedial lnvestigation (Rl) for the Maywood site in 1992 (DOE, 1992). The Stepan Company issued a Final Rl for the chemical contamination areas of the site in 1994 (Stepan Chemical Company, 1994). Comprehensive characterization of the materials was conducted as a result of these investigations. ln addition, IUSA states that the Maywood material does not meet the definition of a characteristic hazardous waste by ignitability, corrosiveness, reactivity, or toxicity. However, since IUSA's initialamendment request, the NRC has classified the Maywood material as 1 1e.(2) byproduct material by letter dated September 20,2001, from Martin Virgilio of NRC to Jonathan Carter, of Envirocare (attached). Under 10 CFR Par|264.4, "byproduct" material as defined under the Atomic Energy Act of 1954, as amended, is excluded by definition as a solid or hazardous waste under the Resource Conservation and Recovery Act (RCRA). Therefore, the material would not be classified as a hazardous waste under RCRA at the mill. Within the condition allowing the licensee to receive and process Maywood material, we have placed the following text: 4 Prior to the licensee receiving materials from the Maywood site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. Determination of whether the feed material is being processed primarily for its source-material content Using our Alternate Feed Guidance, a licensee must show that potential alternate feed material is being processed primarily for its source-material content. ln the Commission Memorandum and Order of February 10, 2OOO, the Commission stated: the staff does not need to consider the quantity of uranium in its review, only whether the feed material (ore) is being processed primarily for its source material content and that radiation safety has been considered. IUSA has provided a signed certification that the uranium-bearing material is being processed primarily for the recovery of uranium and for no other primary purpose. This TER addresses the safety of such processing. Transportation Considerations IUSA does not have a contract to receive the Maywood material at this time and therefore, the exact mode of transporting the materials to the mill has not been determined. Transportation may be similar to that of other alternate feed materials shipped to the mill. This would consist of inter-modal containers shipped by railthen by truck. lf the maximum volume requested were to be shipped to the mill, IUSA estimates that 7500 rail cars over seven years by rail and 46-86 truckloads per week would occur. lt is more likely that 206,000 cubic yards would be shipped which would consist of 46 truckloads per week. IUSA does not expect there to be an impact from the transportation of these materials due to exclusive-use containers, the small increase in truck traffic (4 to 7.4 percent), and the fact that the material will be transported in lined, covered containers. Based on this information , a very minor increase in truck traffic from this action is anticipated and therefore, environmental impacts from this increase are expected to be negligible. Handling and Processing at the Mill Site The materialwill be added to the mill circuit in a manner similar to that used for normal processing of conventional ore, either alone or in combination with other approved alternate feed materials. The material will either be dumped into the ore receiving hopper and fed to the SAG mill, or run through an existing trommel, before being pumped to the Pulp Storage. The leaching process may begin in Pulp Storage with the addition of sulfuric acid. IUSA has proposed that it will be a condition of the license that the mill shall not accept any of the Maywwod material at the site unless and until the mill's Safety and Environmental Review Panel (SERP) has determined that the mill has sufficient licensed tailings capacity. The tailings capacity must be sufficient to permanently store: All 1 1e.(2) byproduct material, as defined under the Atomic Energy Act of 1954, as amended, that would result from the processing of all of the Maywood material; (1) (2) All other ores and alternate feed materials currently on site; and (3) All other materials required to be disposed of in the mill's tailings impoundments pursuant to the mill's reclamation plan. By letter dated November 16, 2000, IUSA developed a standard operating procedure entitled "Tailings Capacity Evaluation" which it will use in its evaluation. Staff evaluated the procedure and finds it acceptable. IUSA does not anticipate any unusual or extraordinary airborne contamination dispersion when processing this material. The contamination potential is expected to be comparable to the processing of conventional ores. Environmental monitoring will continue and has been evaluated under previous NEPA actions. This includes monitoring of surface and groundwater, airborne particulates, radon, soils, and vegetation, according to the existing License Conditions. IUSA will continue to conduct a Dust Suppression program in accordance with the License Renewal Application for the White Mesa Mill, sections 2.0 and 4.0 (Umetco, 1991), and the September 11 , 1997, Utah Division of Air Quality Approval Order for White Mesa Mill (Air Quality Permit Conditions). The Thorium-232 content for the Maywood material ranges from non-detectable to 3,800 pCi/g with an estirnated average of 970 pCilg. Material from Maywood does not contain any additional chemicals that would pose an increase in threat to the groundwater resources above conventional ore. Tailings from the Maywood material processing will be disposed in the lined tailings cells along with other process tailings. A groundwater detection monitoring program is implemented to determine if any leakage from the tailings cells has occurred. IUSA has determined that processing the additional Maywood material will not cause the mill's production to exceed 4,380 tons of yellowcake per year, as outlined in License Condition 10.1 . Conclusions concerning compliance with alternate feed material criteria Based on the information provided by IUSA, the NRC staff finds that the Maywood material meets the criteria in the Alternate Feed Guidance, because (1) it qualifies as an "ore" as defined by NRC guidance, (2) the materialto be processed will not be or contain listed hazardous wastes, and (3) it is being processed primarily for its source-material content. RECOMMENDED LICENSE CHANGE Pursuant to Title 10 of the Code of Federal Regulations, Part 40, Materials License SUA-1358 will be amended by the addition of License Condition 10.18 as follows: 10.18: The licensee is authorized to receive and process source materialfrom the Maywood site located in Maywood, New Jersey, in accordance with statements, representations, and commitments contained in the amendment request dated June 15, 2001 , June 22, 2OO1 , August 3, 2001 , and supplemented by letters dated November 19, 2001 , December 6, 2001 , December 1 0, 2001 , March 11 , 2002, and July 1 , 2002. Prior to the licensee receiving materials from the Maywood site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. lf such determination requires the licensee to make design changes to the cells or the reclamation plan, the licensee shall submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Maywood site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 22] ENVIRONMENTAL IM PACT EVALUATION The Environmental Assessment for this action was issued on August 22,2002. A Finding of No Significant lmpact was published in the Federal Register on August 29,2002. The EA and documents related to this proposed action are 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). REFERENCES Stepan Chemical Company. Remedial lnvestigation Report for the Stepan Chemical Site (CH2MHill, November, 1 994). U.S. Department of Energy. Remedial lnvestigation Report for Maywood Site. December, 1 992. U.S. Fish and Wildlife Service. Letter from Henry Maddux, Utah Field Supervisor, to William von Till, U.S. NRC. August 5,2002. U.S. Nuclear Regulatory Commission (NRC). Commission Memorandum and Order, lnternational Uranium (USA) Corp., CLI-00-01, 52 NRC 9 (Feb. 10, 2000). NRC "Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores," NRC Regulatory lssue Summary 2000-23. November 30, 2000. NRC "Final Environmental Statement" for the White Mesa Uranium Project, Energy Fuels Nuclear, lnc. May, 1979. NRC. Letter from Martin Virgilio of NRC to Jonathan Carter, of Envirocare, regarding classification of material as 11e.(2) byproduct material. September 20,2001. Utah Department of Transportation. Phone conversation with Ms. Vicki Hanshew of the Program Development Division with William von Tillof NRC regarding tratfic statistics on Highway 191 and through Moab, Utah. December 20,2000. FORM 374 Or.r. NU.LEAR REGULAT.R' co*MrssroN O MATERIALS LICENSE to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93- ), and the applicable parts of Title 10, Code of Federal Regulations, Chapter l, Parts 19, 20, 30, 31 , 32, 33, 34, , 36, 39, 40,51, 70, and 71, and in reliance on statements and representations heretofore made by the licensee, license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and nuclear material designated below; to use such material for the purpose(s) and at the place(s) designated ; to deliver or transfer such materialto persons authorized to receive it in accordance with the regulations of applicable Part(s). This license shall be deemed to contain the conditions specified in Section 183 of the Atomic y Act of 1954, as amended, and is subject to all applicable rules, regulations, and orders of the Nuclear Commission now or hereafter in effect and to any conditions specified below. Licensee 3. License Number SUA-1358, Amendment 221. 2. 2. lnternational Uranium (USA) [Applicable Amendment 2] 6425 Highway 191 P.O. Box 809 ,.| ,'.:: Blanding, Utah 8451 1'"., [Applicable ion Date March 31,2OOT 40-8681 Maxintiir*r amount that Licensee May Pffiss at Any One Time Under ffip License Unlimiffiqrrs# 9.2 6. Byproduct Sourc4'r*nd/or Special Nuclear [@ferial t-,-.,.,.Natural Uranium r r "i.l SECTION 9: 9.'1 lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. 9.3 The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated August 23, 1991, as revised by submittals dated January 1 3, and April 7, 1992, November 22, 1994, July 27 , 1995, December 1 3, and December 31, 1996, and January 30, 1997 , which are hereby incorporated by reference, and for the Standby Trust Agreement, datedApril 29, 1997, except where superseded by license conditions below. Whenever the word "will" is used in the above referenced documents, it shall denote a requirement. [Applicable Amendment: 2] g.4 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: (1) Make changes in the facility or process, as presented in the application. NRC FORM 374A REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SITEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 22 (2) Make changes in the procedures presented in the application' (3) Conduct tests or experiments not presented in the application. B. The licensee shall file an application for an amendment to the license, unless the following conditions are satisfied. :...-.., (1)in this r, shalt$e made by a "Safety and of a miiiirrnum of three individuals. d i s c i pline s. Te m p o rh"fly m 6 m OerS.tiff p"g iifi en ptgl individu-ats, may be coAsultatltsl,:!i,r. .1,.',..1+jii,6!specified individq.EfS,,may be corllsuftAms. 1] . :.,6f; The licensee shall maintain records of any ihanges madrD. The licensee shall"rs''6igttain records of any Changes- made pu6s-_1rgnt to this condition until license- termination. These r6dtUs shall include ivritten-safety and,e.qyiionmental evaluations, made.by theIgrIIllIlallo[I. I llE|lttr lti(/*IuD Dlrcilr Irrt/ru\.rE YYllltEll oq1sry qrrv-rP,J!*ar.vrilr,vt,rs. vre,! Sfip, {njt provide tne U5sis f,,g; determining changeq-*rg in'ebmpliance with.the requirements rE"rreO to in Part B of this co,,iiilition,,,.TheJiiensejslffi furnish, in an annual repo-rt.to NRC, a description of such changes, tebts,,iillbxffi;imenb,.indluding.a summary of the safety aft.{_ envirohmental evaluation-of each. tn'aOdition, the licensee ihall annually submit to the NRC inangeO pages to the Operations Plan and Reclamation Plan of the approved license application to refleCt changes made under this condition. c and shdl#*e responsible for health The licensee's SERp shallfunction in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40' nopenoix A, Criteria g and 10, adequat6 to cover the estimated costs, if accomplished by a.third party, idii".oi.'niislioning and decbntamination of the mill and mill site, for reclamation of any tailings-or *"rt" Oiiposil areai,-ground-water restoration as warranted and for the long-term surveillance fee. 9.5 NRC FORM 374A Therefore, REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 22 estimated costs for site Within three months of NRC approval of a revised reclamation/decommissioning plan, the licen_see shall submit, for NRC review and approval, a proposed revision to the financial surety arangement if estimated costs in the newly approved plan exceed the amount covered in the existing financialsurety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at babt S months prior to the anniversary date which is designated as June 4 of each year. lf the NRC has not approved a.propoped. revision to the surety qoyeragg -30 days prior to the expirdtion date of the existing surety arrang,jement, thq.lieensee shall extend the existing surety. ariangement for 1 year. Alori''g ffvithbaih piOpoSed rerlieibtt:gf qnnual update, the licensee shall submit suppdrting documentation sh6vting a breit<Obwn of the costb Ag.,t*re, basis for the cost estimates with adjdstmeits for inflation, miintenance of a minimum 15 percenfdOn$gpencY tee, changes-in engineering plans, activitip'E performed and any other cohditions cloiure. The basis for,,Ihe bost estimate is the NRC approved recloEure. TFd basis fo.r,,,,,,,,,Ihe c<ist estimate is the-NRC approved reclam4tidr/decommissioning pla.n-or ltRC approved revisioiis'ip the plan. The previously frbvided guidance e1$tted "Recommended Outline for Sitd Specific Replomation"arid Stanitizaiion Cos[ Estimates" outlines.tl'iH.qninimum considerations used by the NRC iri'tltb reviev*--0{.f#tp- closure estimates. Rmna$On/dedmmissioning plans and annual updates shottld follow tlll$r.dutliae " ."',:i,i,".,:. .:,.:::ii:. 3i l::..: :::: ' . ,l -,....:1. ''-r- adjissued by National Union Fire lnsurance iu$t Agreementr"dhted April 29, 1997, shall Sfi,Z8g,for the p."q6pose of _complying with ' ii authorizeor$;iiine ru nc. 9.6 9.7 Allwritten procedures for both operational and non-op_qrational activities shall be reviewed and approveO ih writing by the radiation safety officer (RSO) before implementation and whenever a change iri irocedure is pr|poied to ensure that froper rai]iation-proteclion principles are being applied. ln iOlitlon, the RSO inatl perform a documented review of all existing operating procedures at least annually. Before engaging in any activity not previously assessed. by.the NRC, the licensee shall administer a iultural reioilrcE inventory. nit oisturoances associated \iith the proposed development will be iorpf"t"O in compliance ivitn the National Historic Preservatior Act (3s amended) and.its..implementing iJgrliiitls (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). NRC FORM 374A REGULATORY COMMISSION License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 22 Oasdd on the research iesign sunhitte"d b"y,lettei from C E pgker_of Enerqy-Fuels Nuclear to Mr. Metvin T. Smith, Utah Siate nisior:idi:Pfe'Servation BSCpr,l9liPO), dated April 13, 1981. ln order to ensure that no unapproved disturbance of cultural resources occurs, a.ny.work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in acc6rdance with 36 CFR Part 800, and no disturbance shall occur untilthe licensee has received authorization from the NRC to proceed. The licensee shall avoid by project design, where feasible, the archeological sites_desig.nated " . . contributing" in the report sdOniitteO by i-etter dated July 28, 1988. When it is not feasible to avoid a site designated-"contributing" in the report, the licenspg,tha! ilst[ule adgg recovery.prg.gr?m forthat site MATERIALS LICENSE SUPPLEMENTARY SHEET n. THe Commission will for,il1pri ncipal investigator set rigw'ptaOte by the SHPO. tal in the:ffid of uranium waste tailings 's millinguS'g6rations authorized by this9.8 9.9 The licensee is hereby,.authorized to posqesi byproduct hl in the: -,.4!tl of uranium waste talllngs and other uranium bviiioOuct waste denerated,Oyttre licefffi's milling*operations authorized by !l1is tiCense. Mill tailings'shall"not be tran-sferred froni the site wfthout spd"dfic prior app.royal.gf theNRC in the form of a licenie ambn{ment. The licensbe shall maintain a.p6-i?r*5neht record of all transfers made ,:,.,1=under the provisions of this'bgndition.- "...,:r, :: ,:. ,rti{F,,. The licensee is hereby exempted fram tnti reqg$pements otiSection 20J902 (e) of 10 CFR Part 20 for areas within the mill, firovidei that all entranc6s to the mill are conspicuously posted in accordance with SeAion 20.1gO2 (e)'dnd with the words, "Any area within this mill may contain radioactive material." g.1O Release of equipment or packages from the restricted area shall be in accordance with "Guidelines for Decontaminatioh of Faciliiies ari'd Equipment Prior to Release for Unrestricted Use or Termination of Licenses for dyproOuit, Source, or Sp6cial Nuclear Material," dated May 1987, or suitable alternative procedures approved by the NRC prior to any such release' g.1 1 The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22,1999, and Revision-3.0 submitted on July 7, 2q90 Prior to the plicement of alternate feed material, the licensee shall determine that ldequate cell space is available ior that additional material. This determination shall be made by a SERP approved procedure. REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SHEET Amendment No. 22 sECTtoN 10: Operational Controls, Limits, and Restrictions Docket or Reference Number 40-8681 10.1 10.2 10.3 The mill production rate shall not exceed shall be returned to 10.4 10.5 the NRC for D. All disposal activities shall be documented. The documentation shall include descriptions of the waste'and the disposal locations, as well as all actions required by this condition. An annual summary of the ainounts of waste disposed of from off-site generators shall be sent to the NRC. 10.6 The licensee is authorized to receive and process source materials from the Allied Signal Corporation's Metropolis, lllinois, facility in accordance with the amendment request dated June 15, 1993. 10.T The licensee is authorized to receive and process source material from Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated October 30, and November 1 1, 1996. A. B. NRC FORM 374A REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 22 1O.g The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. [Applicable Amendments: 1] 10.g The licensee is authorized to receive and process source materialfrom Cabot Performance Materials' tjcif ity neii goyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended by submittals dated May 19, and,{qgust 6, 1997. June 11,1998. 10.11 . . | :,.: :ii ri lL ..trr .i i :r :. : , tr ;:::r ;1; [ApplicableAmendments: 4] ,, '.,, ,,' ' ' n ],-f .^, 10.10 The licensee is authorized to,receive and process source materiaEfrom Jhe Ashland 2 Formerly Utilized. Sites RemeOiaf Aiiion P. nediam (FUSRAP) site, located near tonavfrnhla, N9* Yqt, ilS.cordance with the amendment requestdhed Miy 8, 199'8, as amended by the subniffilg dated May 27, June 3, and :'tl-;iii'However, the liceFeee is no-?:= anodes identified in these approved for receiptpr pro$ :1 | ,ita:: these faoilitjes, the crushed carbon GI'r mixediiilh'with material already 10.12 10.13 The licensee is authorized to receive "nO pro."rs source material from the St. Louis Formerly Utilized Sites RemeOiaf Aiiion program (FUSRAP) site, in accordance with statements, representations, and commitmenti iontained in-the amendment request dated March 2, 1999, and a-s am^endld.and supptementeO oV LJorittjti dated June 21 , t Sqs;_J_rnq 29, 1999 (f ); and .tuly-?,_19,99 - Prior to the licensee r"."lririg-rnlt"ilaiJ tiom ine st. t-ouis rusMP site, the iicensee must make a determination ttiit aoequ"t" t"ir]ngilpiie it ariitinte for the tailings produced. from the processing of this material' This determination Enati ne made based on a SERP approved internal procedure' [Applicable Amendments: 13, 14] 10.14 The licensee is authorized to receive and process source material from the Linde Formerly Utilized Sites Remedial n6tion Fiogi21n tFusnnCl iite,'in accordance with statements, representations, and NRC FORM 374A REGULATORY COMMISSION License Number suA-1358 Docket or Reference Number 40-8681 MATERIALS LICENSE SUPPLEMENTARY SHEET NRC review and approval. Amendment No. 22 commitments contained in the amendment request dated March 16, 2000, and as amended and supplemented by submittals dated April 26, 2000, May 15, 2000, June 16, 2000, June 19, 2000, June 23, 2000. Prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. Design changes to the cells or the reclamation plan requirq.,fhe licensee to submit an amendment request for Prior to the licensee receiving materials from the Linde FUSMP*gtle, the licensee must require that the generator of the material eeffiff7 that the material does not contaifrSislhd hazardous waste as defined under the Resource Cc.riqdfva[ion and Recovery Act (RCRA) per a Radioactive Material Profile Record. ' :i' [Applicable Amendmeni tlS 10.15 Grace site located in tions, .Am{J commitments contained I supplpdented by submittals J, and,@cember 18, 2000. the licensesmust make a rgs produced from the processing of approved standard operating the cells^or the reclamation plan and-iip'firoval. [Applicable Amendment: f 7] 10.16 The licensee is authorized to receiVC.andrp;ocff-Q soufce rfidterialfrom the Heritage Minerals lncorporated siite, in accordance with statiime'ffifl iepresentations, and commitments contained in the ameridment request dated July 5, 2OOO, and as iupflemented by submittals November 16, 2000, and December 18, 2000. Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. Thib determination shall be made based on the SERP approved standard bperating procedure for determination of tailings capacity. Design changes !9 lhe cells or the rlclamaiion plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Heritage Minerals lncorporated sl!e, the licensee must require that the generator of the material certify that the material does not contain listed hazardous and NRC FORM 374A REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SHEET Amendment No. 22 waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profi le Record. [Applicable Amendment: 18] 10.17 The licensee is authorized to receive and process source materialfrom the Molycorp site located in information in letters dated ffi,2001, October 17,2001, and [Applicable Ame6dment: 20] Docket or Reference Number 40-8681 1 0.1 8:the M{wood site located in and-:Ernmitments contained in.lY'ul.YF.ilyi st 3, 200i[l and supplemented by QOO1, March 11,2002, and July 1, [Applicable Amendment: 22] SECTIoN 11: Monitoring, Recording, and Bookkeeping Requirements 11.1 The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any suibsequent reviews, investigations, and corrective actions, shall be documented. Unless otherwise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. NRC FORM 374A REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 22 11.2 The licensee shall implement the effluent and environmental monitoring program spe_c_ified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the"We$.vater Creek, which shall be sampled annually for water or sediment's and analyzed as abole; A sedimenflSample shall not be taken in place of a water sample unless a water sample was not availabl€. ' t:C. Groundwater samplirq'$hill be conducted in accordance witf$th , requirements in License Condition 1 1.3. . :. ,i: I [Applicable Amendment: 5]', 1 1.3 The licensee shail and the following: 10 CFR Part 40, Appendix&b.* entitled, "Points of Compliance; 5 of Regulatory Roots r,rreler to obtain the required m t$,,.€nsure compliance to be in Ctecordance with the report by felt€r dated October 5, 1994, D. E. A. ln addition, the licensee shall implement a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection.s.ystem.(LDS).ol any cJll, tnd licensee shall'pump fluid from the LDS, to the q{enJ reasonably possible, and record the volume of fluid recover'ed. Any fluid pumped from an LDS shall be returned to a disposal cell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing the recorded volume oi ttuib recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. NRC FORM 374A 11.4 11.5 REGULATORY COMMISSION C. Upon the initial pumping of fluid from an LDS, the licensee shallcollect a fluid,samP!."..1d analyze th'e fluid for pH inO ine parameters listed in paragraph A of this license condition. The licensee shall deterniine whethei the LDS fluid originated from the disposal cell by ascertaining.if the collected fluid contains elevated levels oflhe constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels.or a pH less than 5.0 is obierved, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have O.riginated from the disposal cell, the licensee shall continue with weekly measure.ments of "depih to ffuld'-;in-the LDS standpipes. The licensee shall confirm, on an annu'al basis, tEa$UiO from'thd dispogal,cell has not entered the LDS by. collecting (to the 6*ent posJiOtel andbn'Slyzing an LDS fluid sam*plb folthe above stated parameters. :, '.:r:! MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 22 and tirynfV actions to mitigate the ".,r'i , the lice&e shall continue with weekly and retained onsite until D. [Appticable Amendment: 8] '$ ,i{: .;; :=:i ':'a' j Annually, the licensee shall collect, during mill oierations, a set of air samples covering eight hours of slmpiintj, if a hrgh LorreCtion flow iate(i.-e., greiter than o.r equal to 40.liters per minute),.in routinely or ir6qffit-li, ociupiea arial of the mill. These-samples shall.be ?nalyzed for.gross alph.a. ln.addition, ;itil;;li cnange in milLfeeA materialor atleast inp.uqlty.the licen-see shall analyze|!e^Il!l?:9It prJOuction prod-uct toi U-nat, Tfi-230, Ra-226, and Pb-2i0 and use the analysis results to assess the tundamentil constituent composition of air sample particulates. [Appticable Amendment: 7] Calibration of in-plant air and radiation monitoring equpment shall be performed as specified in..the Gni" ,"newir ippritition, ,no"r Section 3.0 of-the "Radiation Proteition Procedures Manual," with the "ii"ption t6rfin-iiiJni-aii sbmpting equipment shall be calibrated at least quarterly and air sampling equifment checks shall be documented. Condition 9.2. The wdtten.report a discussion of the mitigative acti. ::' , . .; ' lf the calcuiateoffiw ,.t" s t"*"-tn"n od-j,b$ll measurements of ppth to fluid?, in the" LD-S s1l .,-1' ,-..ttti':. tffi UNITED STATES REGULATORY COMMISS o loN $" ",Tlt: F)€ 't.t: ''1 -' | , \ \ ''J ';l $/\;;,s NUCLEAR wASHTNGTON, D.C. 205ss-0001 September 5, 2002 +**tf Mr. Ron F. Hochstein, President and Chief Executive Officer lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 21 TO MATERIALS REVIEW FOR THE WHITE MESA Dear Mr. Hochstein: LICENSE SUA-1358 -. ANNUAL SURETY URANIUM MILL The U S. Nuclear Regulatory Commission (NRC) staff has completed its review of lnternational Uranium (USA) Corporation's (IUSA's) March 1,2OO2, and Augusl S,2OO2,letters requesting that IUSA's surety be approved as revised for changes in reclamation equipment pricing. Staff finds IUSA's up-dated surety to be acceptable and the staff's Technical Evaluation Report is attached (enclosure 1). The license has been revised (License Condition 9.5) and is attached (enclosure 2). All other conditions of the license remain unchanged. lf you have any questions regarding this letter or the NRC staff review, please contact the NRC Project Manager for the IUSA site, William von Till, at (301) 415-6251. 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://wirvr,v.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room). Sincerely, O._-p H.-/JOZ^ Daniel Gillen, Chief Fuel Cycle Licensing Branch Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards Docket No. 40-8681 SUA-1358, Amendment No. 21 Enclosure 'l: Technical Evaluation Report Enclosure 2: Source Material License SUA-1358 cc: W. Sinclair, UT Tom Rice, Ute Mountain Ute Tribe Terry Brown, US EPA Region Vlll DATE: LICENSEE PROJECT MANAGER: TECHNICAL EVALUATION REPORT July 3, 2002 40-8681 License No. SUA-1358 lnternational Uranium (USA) Corporation White Mesa Mill William von Till TECHNICAL HEVIEWER: Jill Caverly EVALUATION: ln response to letters submitted March 1, 2OO2, and August 5,2002, f rom lnternational Uranium (USA) Corporation (lUC), staff has reviewed the Licensee's detailed cost estimate for reclamation of the White Mesa uranium millfacility near Blanding, Utah. IUC submitted an updated cost estimate for: 1)Mill Decommissioning; 2) Cell 1 ; 3) Cell 2; 4)Cell3; 5) Cell aA; 6) Miscellaneous items; 7) Rock production; 8)Equipment; 9)Labor; and 10) Long-term costs. ln addition, IUC submitted information that adequately addressed staff's concerns on specific rates. Therefore, the cost basis supports a revised bond amount of $10,336,283 which is a decrease to the prior year's bond amount of $10,365,458. This amount was based on updated information on labor rates, equipment and material cost from reputable sources. The quantities were based on takeoffs by IUC and were supported with calculations. Reasonable profit (10%) and contingency (15"/") are included in the total. IUC's cost estimates were presented in a logical manner and appeared to be thorough. However, it was not apparent that the licensee had updated blasting and drilling unit costs. NRC staff requested that the licensee verify the current cost of blasting. The staff also asked that the licensee verify that the unit cost of fuel, $0.55/gallon, be secured for the one year and be transferable to a successor in the event that a third party would complete decommissioning of the site. IUC adequately addressed both of these issues in a letter dated August 5,2AO2. IUC stated that blasting costs for the current surety are based on a contractor quote for similar conditions and drilling depths and updated to current costs by increasing the quote 20 percent. The staff finds this an acceptable approach. However, IUC was unable to guarantee a fuel cost of $o.Ss/gallon for one year and also could not guarantee that this rate was transferable. Alternately, IUC proposed using a fuel cost that is based on a three-year rolling average of the Department of Labor, Producer Price lndex - Commodities for #2 Diesel fuel. The fuel cost calculated using the 36 month average resulted in a cost of $0.785 per gallon. The staff considered this an acceptable alternative method which more closely represents the cost of reclamation. IUC updated the proposed costs and surety to reflect the changes associated with the fuel cost adjustment to $10,336,283. Enclosure 1 FORM 374 U.S. NUCLEAR BEGULATORY COMMISSION MATERIALS LICENSE rsuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93-438), and the applicable parts Title 10, Code of Federal Regulations, Chapter l, Parts 19,20,30,31, 32,33,34,35,36,39,40,51,70, and 71, and in reliance on ts and representations heretofore made by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, and transfer byproduct, source, and special nuclear material designated below; to use such material for the purpose(s) and at the s) designated below; to deliver or transfer such material to persons authorized to receive it in accordance with the regulations of the able part(s). This license shall be deemed to contain the conditions specified in Section 183 of the Atomic Energy Act of 'l 954, as and is subject to all applicable rules, regulations, and orders of the Nuclear Regulatory Commission now or hereafter in eflect and any conditions specified below. 1. 2. 2. Licensee lnternational Uranium (USA) Corporation [Applicable Amendment 2] 6425 Highway 191 Box 809 Blanding, Utah 84511 Amendment 2l 3. License Number SUA-1358, Amendment 21 4. Expiration Date March 31,2007 5. Docket No. 40-8681 Reference No. 8. Maiimum amount that Licensee May Possess at Any One Time Under This License Unlimited 6. Byproduct Source, andlor 7. Special Nuclear Material Natural Uranium SECTION 9: Chemical andl or Physical Form Any Administrative Gonditions g.'l The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan County, Utah. g.2 All written notices and reports to the NRC required-under this license, with the exception of incident and event notifications under'10 CFR 2O.22O2 and'10 CFR 40.60 requiring telephone notification, shall be addressed to the Chief, Uranium Recovery and Low-_LevelWaste Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. 9.3 The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated August 23, 1991, as revised by submittals dated January 13, and April 7, 1992, November 22, 1994, July 27 , 1995, December 13, and December 31, 1996, and January 30, 1997, which are hereby incorporated by reference, and for the Standby Trust Agreement, dated April 29, 1997 , except where superseded by license conditions below. Whenever the word "will" is used in the above referenced documents, it shall denote a requirement. [Applicable Amendment: 2] 9.4 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: (1) Make changes in the facility or process, as presented in the application. (2) Make changes in the procedures presented in the application. NRC FORM 374A U.S, NUCLEAR REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SHEET Amendment No. 21 (3) Conduct tests or experiments not presented in the application. B. The licensee shall file an application for an amendment to the license, unless the following conditions are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in this license, or impair the licensee's ability to meet all applicable NRC regulations. (2) There is no degradation in the essential safety or environmental commitments in the license application, or provided by the approved reclamation plan. (3) The change, test, or experiment is consistent with the conclusions of actions analyzed and selected in the EA dated February 1997. C. The licensee's determinations concerning Part B of this condition, shall be made by a "Safety and Environmental Review Panel (SERP)." The SERP shallconsist of a minimum of three individuals. One member of the SERP shall have expertise in management and shall be responsible for managerial and financial approval changes; one member shall have expertise in operations and/or construction and shall have responsibility for implementing any operational changes; and, one member shall be the corporate radiation safety officer (CHSO) or equivalent, with the responsibility of assuring changes conform to radiation safety and environmental requirements. Additional members may be included in the SEFIP as appropriate, to address technical aspects such as health physics, grouhdwater hydrology, surface-water hydrology, specific earth sciences, and other ieihnical-disciplines. Temporary members or permanent members, other than the three above- specified individuals, may be consultants. D. The licensee shall maintain records of any changes made pursuant to this condition until license termination. These records shall include written safe$ and environmental evaluations, made by the SERP, that provide the basis for determining changes are in compliance with the requirements referred to in Part B of this condition. The licensee shall furnish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety a!{ _environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shallfunction in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for'decommissioning and decontamination of the mill and mill site, for reclamation of any tailings- or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within thiee months oirunC approval of a revised reclamation/decommissioning plan, the licensee shall Docket or Reference Number 40-8681 9.5 NRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 9.6 Amendment No. 21 submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimaied costs in the newly approved pian exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitteil to the NRC at lea-st g months prior to the anniversary date which is designated as June 4 of each year. lf the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety. ariangement for 1 year. Along with each pioposed revision or annual update, the licensee shall submit suppdrting documentation showing a breakdown of the costs and the basis for the cost estimates with aOjdstmeits for inflation, maintendnce of a minimum 15 percent contingency fee, changesin engineering plans, activities pedormed and any other conditions affecting estimated costs for site clolure. Thd basis for the cost estimate is the NRC approved reclamation/decommissioning plan or NRC approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in-favdr of the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be c6ntiriuously rnaintained in an amount not less than $10,336,283 for the purpose of complying with 1O CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by the NRC. [Applicable Amendments:2,3,5, 13, 15, 19,21] Therefore, this office must receive an updated surety in this amount within 9O days of this letter. Standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. SOPs for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and 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 procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural reiource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preservation Act (as amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and 9.7 NRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 21 evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur until the licensee has received authorization from the NRC to proceed. The licensee shall avoid by project design, where feasible, the archeological sites designated " contributing" in the report submitted by letter dated July 28,'1988. When it is not feasible to avoid a site designated "contributing" in the report, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preservation Officer (SHPO), dated April 13, 1981 . The licensee shall recover through archeological excavation all "contributing" sites listed in the report which are located in or within 100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at each site meeting these briteria shall be completed prior to the start of any project related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shall conduct such testing as is required to enable the Commission to determine lf those sites designated as "Undetermined" in the report and located within 100 feet of present or known future construction areas are of such significance to warrant their redesignation ?-si'contributing." ln all cases, such testing shall be completed before any aspect of the undertaking affects a site. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set tortn in 36 CFR Part 66, Appendix C, and whose qualifications are found acceptable by the SHPO. 9.8 The licensee is hereby authorized to possess byproduct materiat in the form of uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. Mill tailings shall not be transferred from the site without specific prior approval of the NRC in the form of a licen-se amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. 9.9 The licensee is hereby exempted from the requirements of Section20.1902 (e) of '10 CFR Part 20 for areas within the mill, provided that all entrances to the mill are conspicuously posted in accordance with Section 20.1902 (e) and with the words, "Any area within this mill may contain radioactive material." g.1O Release 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 or 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. 9.11 The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22, 1999, and Revision 3.0 submitted on July 7,2OOO. Prior to the placement of alternate feed material, the licensee shall determine that adequate cell space is available ior that additional material. This determination shall be made by a SERP approved procedure. NRC FORM 374A U.S. NUCLEAR REGULATORY COMMISS]ON MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 21 SECTION 10: Operational Controls, Limits, and Restrictions 10.1 The mill production rate shall not exceed 4380 tons of yellowcake per year. 10.2 All liquid effluents from mill process buildings, with the exception of sanitary wastes, shall be returned to the mill circuit or discharged to the tailings impoundment. 10.3 Freeboard limits for Cells 1-1,3, and 4A, shall be set periodically in accordance with the.procedures set out in Section 3.0 to Appendix E of the approved license ap_Plicition, including lhegglolqr 13, 1999 revisions made to the Jhnuary 10, 1990 biainage Report. The freeboard limit for Cell 3 shall be recalculated annually in accoidance with the pr6cedures set in the October 13, 1999 revision to the Drainage Report. [Applicable Amendment: 16J 1O.4 Disposal of material and equipment generated at the mill site shall be conducted as described in the licensee's submittals dated'Dbcember 12,1994 and May 23,1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet inicf . Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. 1O.S ln accordance with the licensee's submittal dated May 20, 1993, the licensee is hereby authorized to Oispose of byproduct material generated at licensed ih situ leach facilities, subject to the following conditions: A. Disposal of waste is limited to 5000 cubic yards from a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Barrels .ontrining wabte other than soil or sludges shall be emptied into the disposal area and the barrels crushed. -Barrels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for alternate burial locations. D. All disposal activities shall be documented. The documentation shall include descriptions of the waste ,nd the disposal locations, as well as all actions required by this condition. An annual ,r.rriy-oi tf,e ,i:nounts of waste disposed of from off-site generators shall be sent to the NRC. 10.6 The licensee is authorized to receive and process source materials f rom the Allied Signql Corporation's Metropolis, lllinois, facility in accordance with the amendment request dated June 15, 1993. 10.7 The licensee is authorized to receive and process source materialfrom Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendmeni request dated September 20, 1996, and amended by letters dated October 30, and November 1 1 , 1996. NRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 21 10.8 The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. [Applicable Amendments: 1] 10.9 The licensee is authorized to receive and process source material from Cabot Performance Materials' facility near Boyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended by submittals dated May 19, and August 6, 1997. [Applicable Amendments: 4] 10.10 The licensee is authorized to receive and process source materialfrom the Ashland 2 Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonawanda, New York, in accordance with the amendment request dated lrlay 8, 1998, as amended by the submittals dated May 27, June 3, and June 11,1998. [Applicable Amendment: 6] 10.11 The licensee is authorized to receive and process source materialfrom Cameco Corporation's Blind River and Port Hope facilities, located in Ontario, Canada, in accordance with the amendment request dated June 4, 199.8, and by the submittals dated September 14, September 16, September 25, October 7, and October 8, 1998. However, the licensee is not authorized to receive or process from these facilities, the crushed carbon anodes identified in these submittals, either as a separate materialor mixed in with material already approved for receipt or processing. 10.12 The licensee is authorized to receive and process source material from the Ashland 1 and Seaway Area D Formerly Utilized Sites Remedial Action Program (FUSHAP) site, located near Tonowanda, New York, in aCcordance with statements, represenlations, and commitments contained in the amendment request dated October 15, 1998, as amended by letters dated November 23, 1998, November 24, 1998, December 23, 1998, January 1 1 , 1999, January 27, 1999, and February 1 , '1999. [Applicable Amendment: 10] 10.13 The licensee is authorized to receive and process source materialfrom the St. Louis Formerly Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements, representations, and commitments contained inlhe amendment request dated March 2, 1999, and as amended and supplemented by submittals dated June 21 , 1999; June 29, 1999 (2); and July 8, 1999. Prior to the licensee receiving materials from the St. Louis FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. [Applicable Amendments: 13, 14] 10.14 The licensee is authorized to receive and process source material from the Linde Formerly Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements, representations, and NRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 21 commitments contained in the amendment request dated March 16, 2000, and as amen-de-d and supplemented by submittals dated April 26, 2ObO, May 15, 2000, June 16, 2000, June 19, 2000, June 23, 2000. prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must make a determination iniiiOequateiailings space is available for the tailhgs produced from the processing of this materiaf . ifris determination inatibe made based on a SERP approved internal procedure. Design cf,angeJto the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and aPProval. prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must require that the gJnerator of the material cert-ify that the material does not contain listed hazardous waste as defined Jnder the Fleiource Conseryafion and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 14] 0.15 The licensee is authorized to receive and process source materialfrom the W.R. Grace site located in Chattanooga, Tennessee, in accordance with statements, representations, and commitments contained in the ameidment request dated April 12,2OOA, and as amended and supplemented by.submittals dated April24,20OO, April 26, 2000, May 5,2000, November 16,2000, and December 18, 2000. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must make a determination that adequatelailings space is available for the lqllngs produced from the processing of this material. This determination ifrdibe made based on the SERP approved standard operating procedure for determination of tailings capacity. Design ch.anges to the cells or the reclamation plan i.equire the licensee to submit an amendment request for NRC review and approval. prior to the licensee receiving materials from the W.R. Grace site, the licensee must require that the generator of the material certlfy that the materialdoes not contain listed hazardous waste as defined Inder the Resource Conservaiion and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 17] 0.16: The licensee is authorized to receive and process source material f rom the Heritage Minerals- - lncorporated siite, in accordance with statbments, representations, a.nd.commitments contained in the ameridment request dated July 5,2OOO, and as supplemented by submittals November 16,2000, and December 18,2000. prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must make a determination that adequate tailings space is available for the tailings pro_duced from the processing of this material. Thib determination shall be made based on the SERP approved standard bperating -procedure for determination of tailings capacity. Design changes. Ig ln" cells or the rdclamaiion plan require the licensee to submit an amendment request for NRC review and approval. prior to the licensee receiving materials from the Heritage Minerals lncorporated s{e, the licensee must require that the generator of lne material certify that the material does not contain listed hazardous NRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SHEET Amendment No. 21 waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 18] 10.17: The licensee is authorized to receive and process source materialfrom the Molycorp site located in Mountain Pass, California, in accordance with statements, representations, and commitments contained in the amendment request dated December 19, 2000, and supplemental information in letters dated January 29,2OO1, February 2,2OO1, March 20,2OO1, August 15,2001, October 17,2OO1,and November 16, 2001. Prior to the licensee receiving materials from the Molycorp site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination snaliOe made based on a SERP approved internal procedure. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. [Applicable Amendment: 20] sECTtoN t t: Monitoring, Reeording, and Bookkeeping Requirements 11.1 The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits ahd inspections, all meetings and training coulqes required by this license.and any sr.ibsequent reviews, investigations, and corrective actions, shallbe documented. Unless otherwise specifi6d in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. 11.2 The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 11.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmental samples. E. The inspections performed semiannually of the critical orifice assembly committed to in the submitthl dated March 15, 1986, shall be documented. The critical orif ice assembly shall be Docket or Reference Number 40-8681 NRC FORM 374A 11.3 MATERIALS LICENSE SUPPLEMENTARY SHEET U.S. NUCLEAR REGULATORY COMMISSION License Number suA-1358 Docket or Reference Number 40-8681 Amendment No. 21 A. calibrated at least every 2years against a positive displacement Roots meter to obtain the required calibration curve. [Applicable Amendment: 5] The licensee shall implement a groundwater detection monitoring program to ensure compliance to 1O CFR Part 40, Appendix A. The detection monitoring program shall be in accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, and the following: The licensee shall sample monitoring wells WMMW-S, -1 1, -12, -14, -15, and '17, ona quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium, and the results of such samfling shall be inc[ided with the environmental monitoring reports submitted in accordance with 10 cFR 40.65. ln addition, the licensee shall implement a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection.system (LDS) 91 any cell, the licensee shalt-pump fluid from the LDS, to the extent reasonably possible, and record the volume of fluid recoverbd. Any fluid pumped from an LDS shall be returned to a disposal cell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate,by dividing the recorded volume oi ttuib recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, rirhichever is the more recent. The licensee shall document the results of this calculation. C. Upon the initial pumping of fluid from an LDS, the licensee shallcollect a fluid.sampJ." r.ld analyze the fluid for pH hnO ine parameters listed in paragraph A of this license condition. The licensee shall determine whethei the LDS fluid originated from the disposalcell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels or a pH less than 5.0 is obierved, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an anndal basis, that fluid from the disposal cell has not entered the LDS by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. D. Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine tl're flow rate through the liner by the calculation method in paragraph B of this license condition. lf the flow rate is equal to or greater than one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; NRC FORM 3744 U.S. NUCLEAR REGULATOHY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SHEET Amendment No. 21 2. Continue to measure and record LDS "depth to fluid" measurements weekly; and 3. Notify NRC by telephone within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notifying NRC by telephone, in accordance with License Condition 9.2. The written report shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results. lf the calculated flow rate is less than one gallon per minute, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. E. All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. [Applicable Amendment: 8] 11.4 Annually, the licensee shall collect, during mill operations, a set of air samples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equalto 40 liters per minute), in routinely or frequently occupied areas of the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in mill feed material or at least annually, the licensee shall analyze the mill feed or production product for U-nat, Th-230, Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] 11.5 Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the 'Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shall be calibrated at least quarterly and air sampling equipment checks shall be documented. 11.6 The licensee shall perform an annual ALARA audit of the radiation safety program in accordance with Regulatory Guide 8.31. SECTIoN 12: Reporting Requirements 12.1 DELETED by Amendment 13. [Applicable Amendment:'13] Docket or Reference Number 40-8681 NRC FORM 374A REGULATORY COMMISSION License Number suA-1358 MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number 40-8681 Amendment No. 21 12.2 The licensee shall submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations that includes a deailed Quality Assurance Plan. The plan will be in accordance with Regulatory Guide 4.15, "Quality Assurance for Radiological Monitoring Programs," and NUREG-1575, "Multi-Agency Radiation Survey and Site lnvestigation Manual (MARSSIM), or equivalent most current guidance. [Applicable Amendment: 13] FOR THE NUCLEAR REGULATORY COMMISSION Date: q lol"Q-or,Agp- Daniel M. Gillen, Chief Fuel Cycle Facilities Branch Division of FuelCycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards t NUC UNITED STATES LEAR REGULATORY COMMI wASHtNGTON, D.C. 20555-0001 Apri 1 6,2001 -,;i',,rii-\_r d{.,\.J 'i\ ,!!!,ol, ti &?:t:'" ,,iJ - ,;i'..1 : ,. I,; ,,'t;,:;) -' o SSION /,i 1,t" i,;:I -;if, l,:\i \.-:. ice\'. .offMr. Ron F. Hochstein, President and Chief Executive lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 19 TO MATERIALS LICENSE SUA-1358 -- ANNUAL SURETY REVIEW FOR THE WHITE MESA URANIUM MILL Dear Mr. Hochstein: The U S. Nuclear Regulatory Commission (NRC) staff has completed its review of lnternational Uranium (USA) Corporation's (IUSA's) March 1, 2001, letter requesting that IUSA's surety be approved as revised for the upward adjustment for inflation using the Consumer Price lndex (CPl), for changes in reclamation equipment pricing, and credit based on completed reclamation work on a portion of the current tailings cells. Staff finds IUSA's up-dated surety to be acceptable and the staff's Technical Evaluation Report is attached (enclosure 1). The license has been revised (License Condition 9.5) and is attached (enclosure 2). All other conditions of the license remain unchanged. lf you have any questions regarding this letter or the NRC staff review, please contact the NRC Project Manager for the IUSA site, William von Till, at (301) 415-6251 . 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.qov/NRC/ADAMS/index.html (the Public Electronic Reading Room). Sincerely, QIr" -.{Og- Daniel Gillen, Chief Fuel Cycle Licensing Branch Division of Fuel Cycle Safety & Safeguards Office of Nuclear Material Safety and Safeguards Docket No. 40-8681 SUA-1358, Amendment No. 19 Enclosure 1: Technical Evaluation Report Enclosure 2: Source Material License SUA-56 cc: W. Sinclair, UT C.Crist, Ute Mountain Ute Tribe EPA Terry Brown, US EPA Region Vlll a(txt TECHNICAL EVALUATION REPORT ANNUAL SURETY REVIEW FOR THE WHITE MESA URANIUM MILL LOCATED IN BLANDING, UTAH DATE: DOCKET NO.: LICENSEE: FACILITY: PROJECT MGR: TECHNICAL REVIEWER: March 29,2001 40-8681 lnternational Uranium White Mesa Mill W. von Till Daniel Rom License No. SUA-'t358 (USA) Corporation ln response to a January,2001, submittal from lnternational Uranium (USA) Corporation (IUSA), staff has reviewed the licensee's detailed cost estimates for reclamation of the White Mesa facilities near Blanding, Utah. IUSA submitted detailed 2001 cost estimates for 1) Mill Decommissioning; 2) Cell 1; 3) Cell 2; 4) Cell 3; 5) Cell aA; 6) Miscellaneous items; 7) Rock production; 8) Equipment; 9) Labor; and 10) Long-term costs. The cost basis supports a revised bond amount of $10,365 ,457. The licensee's surety figure was based on production estimates, equipment costs, and labor costs from apparently reputable sources. The quantities were based on takeoffs by IUSA, and were supported with calculations. Adjustments to the Long-term Care figure were made to reflect an increase in the Consumer Price lndex based on a December, 2000, CPI-U factor of 174.O. Reasonable profit (10%), contingency (15"/"), and licensing/ bonding allowances (2%) are included in the total. The IUSA cost estimates were presented in a logical manner, and appeared to be thorough. On the basis of updated rental, equipment, and fuel costs, the overall surety bond increased despite the credit taken for completed reclamation work and installation of ancillary facilities projected to be used during final reclamation and decommissioning. Plan modifications including Platform Fill in Cell 3, miscellaneous items related to the decontamination/wash pad, and concrete demolition operations were also detailed. The licensee's submittal of March 1, 2001, satisfactorily addresses license requirements for annual surety reporting. lf you have any questions regarding the above, please contact Daniel Rom at (301) 415-6704. U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE PAGE 1 OF 10 PAGE 70, and 71, and in reliance on sratements and repreientations hereiofore made by the licensee, a licensee is hereby issued authorizing the licensee to receive, acquire, port.rt, and transfer byproduct, source, and special nuclear material designated below: ro use such marerial for the purpose(i) and at the place(s) dliignated 9."19y, to deliver or transfer such material to persons autholzed to recei'e it in accordance with the rSulatrons of ihe applicable Part(s)' This license shall be deemed to conrain the conditions specified in Section I 83 of the Atomic Energy Act of I 9-54' as amended, and is subject to all pursuanr ro rhe Aromic Energy Act of l9-54, as amended, the Energy R_eorganizatigl,^a.ct of 1974 (Public Law 93-438)' and the applicabte parts of Title iO, Coa. of Feieral Regulations,.Chapier [, Parts l9' 20'.30, 31,32,33,34' 35' 36' 39' 40' -51' applicable rules. regulatlons, and orders of the Nuclear Regulatory Commission now or hereafter in effect and to any onditions specified below. , License Number - Amend No. 1g-1' suA-1358 Licensee lnternational Uranium (USA) Corporation [Applicable Amendments: 2] 6425 S. HighwaY 191 P.O. Box 809 Blanding, Utah 84511 [Applicable Amendments: 2] 4. Expiration Date March 31,2007 5. Docket orReference 40-8681 Natural Uranium SECTIoNe: Administrative Conditions g.1 The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan County, Utah. g.2 All written notices and reports to the NRC required unler this license, with the excepti.on of incident and- - event notifications under'10 CFR 20.22o}anb tO CFR 40.60 requiring telephone notification, shall be addressed to the Chief, Uranium Recovery and Low-Level Waste Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301 ) 816-5100. g.3 The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated Aygust 23, 1991 , as revised by . submittals dated Januury 13, and A'pril Z, 1992, November 22, 1994, July 27 , 1995, December 13, and December 31 , 1996, and January Sb, t gbZ, which are hereby incorporate! by reference, and for the Standby Trust Agreement, dateO nprit 29, 1997, except wheie superseded by license conditions below' Whenever the word "will" is used in the above referenced documents, it shall denote a requirement' [Applicable Amendment: 2] g.4 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition. (1) Make changes in the facility or process, as presented in the application' (2) Make changes in the procedures presented in the application. (3) Conduct tests or experiments not presented in the application. PAGE 2 OF r0 PAGEr NRC FORM 374A AR HEGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference 40-868 I Number Amendment No. l9 C B.onforanamendmenttothelicense,UnleSSthefollowingconditionS are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in this license, or implir'the liiensee's ability to meet all applicable NRC regulations' (2) There is no degradation in the essential safety or environmental commitments in the license application, or[rovided by the approved reclamation plan' (3) The change, test, or experiment is consistent with the conclusions of actions analyzed and selected in the EA dated February 1997. The licensee's determinations concerning Part B of this condition, shall be made by a "Safety ald Environmental Review piner (SERP)." ihe srRp shall consist of a minimum of three individuals. One memOer of the SERP shall have expertise in management and shall be responsible for ,r.rg"iirlinO tinunfil approval changes; one membe-r shall have expertise in operations and/or construction and sfrafi nive'responsibilitly tor implementing any operational changes; .?n9' ole member shall be the corporate radiation safety ofiicer (CRSO) or e-quivalent, with the responsibility of assuring it.'rng"r conform to iadiation safety ind enviionmenial requirements. Additional members may be included in the SERP as appropriate, to address technical aspects such as health physics, gr"r"J*uter hydrology, *-4.; water hydrolog.y, specific earth sciences, and other technical disciptines. rempoffi members or permunen"t'members, other than the three above-specified individuals, maY be consultants. The licensee shall maintain records of any changes made pursuant to this condition until license termination. These records shall include writteniafety anci environmental evaluations, made by the 5inf, inrt provide the basis for determining change: ql9 in compliance with,the require.ments ,"t"rr"O to in part g of tnis condition. The liiensed shall f urnish, in an annual report to NRC, a Oescrrpiion of such changes, tests, or exp-eriments,.including.a summary of the safety aU ^ environmental evaluation"of each. ln adijition, the iicensee shall annually submit to the NRC changed prg"i to the operations plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee,s SERp shall f unction in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] The licensee shall maintain an NRC-approved financial surety arrang.ement, consistent with f O Cf n 40, Appendii A, Criteria 9 and iO, adeqrute to covei the estimated costs, if accomplished by u tniro party, fb'r de;;m;rsiioning and decontamination of the mill and mill site, for reclamation of any Liii^g.'"i riraste disposal areas, Iround-water restoration as warranted and for the long-term ,rrdirrrn.e fee. wjtnin three months of NRC approval of a revised reclamation/decommissioning plan, the licensee snatt sJumit, for NRC review ind approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the "ii.1ii,g finaiciat ,rr.ty- The revised surety shall'thdn be in effect within 3 months of written NRC approval. D. 9.5 NBC FOF[,'l 374 (3-2000)ON RECYCLE PAGE 3 OF 10 PAGESNRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SUA- l3-58 Docket or Reference 40-868 I Number Amendment No. l9 Ar.rrl updates to the surety amount, required by 1O CFR 40, Appendix A, Criteria 9 and 10, shall be submitteil to the NRC at tea'st g months prior to the anniversary date which is designated as June 4 of rr.6 y"rr. lf the NRC has not approved a proposed re.vision to the surety coverage 30 days prior to the expiration date of the existing sui'ety arrangem'ent, the.licensee shall extend the existing surety. iri"ngerent for 1 year. Alorig with'each pioposed.revision or annual update, the licensee shall submit JJppdrting documentation sh6wing a Oreifdown of the costs and the basis for the cost estimates with iOiristmeits for inflation, maintenince of a minimum 15 percent contingency f9e, changes in engineering pfini, ictirities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC ailproved reclamation/decommissioning_plan or NRC approv-ed revisions to tne plan. The previously providbb guidance entitled "Recommended Outline for Site Specific Reclamation and'stabilizaiidn Cost EStimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company iniavcjr of the NRi, and the associated Standby Jrqst.lgr.eement, dated April 29, 1997, shall be cdntir1uously maintained in an amount not less than $10,365,452 for the purpose of complying with 10 CFR 40, RppenOix A, Criteria 9 and '10, until a replacement is authorized by the NRC. [Applicable Amendments: 2, 3, 5, 13, 15, 19] Therefore, this office must receive an updated surety in this amount within 90 days of this letter. g.6 Standard operating procedures shall be established and followed for all operational process activities invotving raOioactiie materials that are handled, processed, or stored. SOPs for operational activities shall en-umerate pertinent radiation safety practiies to be followed. Additionally, written procedures shall be establislied for non-operational 6itivities to include in-plant and environmental monitoring,.. . bioassay analyses, and instruhent 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-operationalactivities shall be reviewed and approved in writing by the radiation safety'officer (RSO) before implementation and whenever a change in pro_cedure ls propole<l to ensure that profer radiaiion piotection piinciples are being ]PRlieO ln addition, the RSo sfrltt ileform a documenteb rdview of all existing operating procedures at least annually. g.7 Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural ,esoirc6 inveniory. Rlt OisturOances associated with the proposed development will be iompleted in compliance with the National Historic Preservation Act (as amended) and its . implbmenting regulations (36 CFH 800), and the_Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, a1Y work resulting in the Oirlou"ry of previously unknowh cultural artifacts shall cease. The artifacts shall be inventoried and evaluatei in accordance with 36 CFR Part 800, and no disturbance shall occur until the licensee has received authorization from the NRC to proceed. The licensee shall avoid by project design, where feasible, the archeological sites designated ,;.ontribrting" in the report'suOmitted by-letter dated July 28, 1988. When it is not feasible to avoid a site designatedYcontributing" in the report,'the licensee shail institute a data recov€ry program for that site baseid on the research lesign submitted by letter f rom C. E. Baker of Energy.Fuels_Nuclear to Mr. trtrtuinT. Smith, Utah SIate Historic Preservation Officer(SHPO), datedApril 13, 1981. PRINTED ON RECYCLED PAPERNFC FOBM 374 (3-2000) PAGE 4 OF 10 PAGESU.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SUA- 1358 Docket or Reference 40-868 I Number Amendment No. l9 The licensee shall recover through archeological excavation all "contributing" sites listed in the report which are located in or within t06 feet of boirow areas, stockpile areas, construction areas, or the p*i*"].r of tn" reclaimed tailings impoundment. Data recovery.fieldwork at each site meeting these criteria shall be completed priorio th6 start of any project related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shall conduct such testing as is required to ena.b.le the Commission to determine if those sit6s designated as "Undetermined" in the-report and located within 100 feet of present or known future constructioi areas are of such significance to warrant their redesignation as "contributing." ln all cases, such testing shall be completed -before any aspect of the undertaking affects a site. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an arcfredtogical contractor who meeis the minimumltdndards for a principal investigator set forth in 36 CFR Pari66, Appendix C, and whose qualifications are found acceptable by the SHPO. g.B The licensee is hereby authorized to possess byproduct material in the form of uranium waste.tailings and other uranium byfiroduct waste gjenerated by the licensee's milling.operations authorized Qy]!. license. Mill tailings shatl not be tranlferred from the site without specific prior approval,,of the NRC in the form of a licenie amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. g.9 The licensee is hereby exempted from the requirements of Section20.1902 (e) of 10 CFR Parl20lor areas within the mill, frovided that all entranc6s to the mill are conspicuously pos.ted in. acc.ordance with Section 20.1902'(e) and with the words, "Any area within this mill may contain radioactive material." g.1 Release of equipment or packages from the restricted area shall be in accordance with "Guidelines for Decontaminaiioh of Faciliiies an? Equipment Prior to Release for Unrestricted Use or Termination of Licenses for Byproduct, Source, or Sp6cial Nuclear Material," dated May 1987, or suitable alternative procedures approved by the NRC prior to any such release. g.1 The final reclamation shall be in accordance with the May't999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22,1999, and Revision 3.0 submitted on July 7,2000. Prior to the placement of alternate feed material, the licensee shall determine that adequate cell space is available for that additional material. This determination shall be made by a SERP approved procedure. g.11 The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22,1999, and Revision 3.0 submitted on July 7 ,2000. Prior to the placement of alternate feed material, the licensee shall determine that adequate cell space is available for that additional material. This determination shall be made by a SERP approved procedure. Operational Controls, Limits, and Restrictions The mill production rate shall not exceed 4380 tons of yellowcake per year. All liquid effluents from mill process buildings, with the exception of sanitary wastes, shall be returned to the mill circuit or discharged to the tailings impoundment. SECTION 1O: 10.1 10.2 NRC FORM 374 (3-2000)PRINTED ON REC MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SUA- 1358 Docket or Reference 40-8681 Number Amendment No. l9 10.3 10.4 10.5 10.6 10.7 10.8 Freeboard limits for Cells 1-1, 3, and 44, shall be set periodically in accordance with the procedures set out in Section 3.0 to Appendix E of the approved licenselPPlication, including the October 13, 1999 revisions made to the January 10, 1990 Drainage Report. The freeboard limit for Cell 3 shall be recalculated annually in accordance with the procedures set in the October 13, 1999 revision to the Drainage Report. fApplicable Amendment: 16] Disposal of material and equipment generated at the mill site shall be conducted as described in the licensee's submittals dated December 12,1994 and May 23, 1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet thick. Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. ln accordance with the licensee's submittal dated May 20,1993, the licensee is hereby authorized to dispose of byproduct material generated at licensed in situ leach facilities, subject to the following conditions: A. Disposal of waste is limited to 5000 cubic yards f rom a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Barrels containing waste other than soil or sludges shall be emptied-into the disposal area and the barrels crush-ed. Barrels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for alternate burial locations. D. All disposal activities shall be documented. The documentation shall include descriptions of the waste and the disposal locations, as well as all actions required by this condition. An annual summary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. The licensee is authorized to receive and process source materials from the Allied Signal Corporation's Metropolis, lllinois, facility in accordance with the amendment request dated June 15,1993. The licensee is authorized to receive and process source materialfrom Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated October 30, and November 1 1 , 1996. The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. [Applicable Amendments: 1] PqINTED ON RECYCLED PAPERNRC FORM 374 (3-2ooo) PAGE 6 OF ,10 PAGESNRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SUA- l3-58 Docket or Reference 40-8681 Number Amendment No. l9 10.g The licensee is authorized to receive and process source material from Cabot Performance Materials' facility near Boyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended by submittals dated May 19, and August 6, 1997. [Applicable Amendments: 4] 'lO.1O The licensee is authorized to receive and process source material from the Ashland 2 Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonawanda, New York, inaccordance with the amendment request dated May B, 1998, as amended by the submittals dated May 27, June 3, and June 1 1, 1998. [Applicable Amendment: 6] 10.1 1 The licensee is authorized to receive and process source material f rom Cameco Corporation's Blind River and Port Hope facilities, located in Ontario, Canada, in accordance with the amendment request dated June 4, 1998, and by the submittals dated September 14, September 16, September 25, October 7, and October B, 1998. However, the licensee is not authorized to receive or process from these facilities, the crushed carbon anodes identified in these submittals, either as a separate material or mixed in with material already approved for receipt or processing. 10.12 The licensee is authorized to receive and process source material from the Ashland 1 and Seaway Area D Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonowanda, New York, in accordance with statements, representations, and commitments contained in the amendment request dated October 15, 1998, as amended by letters dated November 23, 1 998, November 24, i998, December 23, 1998, January 1 1, 1999, January 27, 1999, and February 1, 1999. [Applicable Amendment: 10] 10.13 The licensee is authorized to receive and process source material f rom the St. Louis Formerly Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March 2, 1999, and as amended and supplementedbysubmittalsdatedJune2l,lggg; June29, 1999(2); andJulyS, 19.99. Priortothe licensee receiving materials from the St. Louis FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shalt be made based on a SERP approved internal procedure. [Applicable Amendments: '13, 14] 10.14 The licensee is authorized to receive and process source materialfrom the Linde Formerly Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements, representattons, and commitments contained inlhe amendment request dated March 16, 2000, and as amended and supplemented by submittals dated April 26,2000, May 15,2000, June 16,2000, June 19,2000, June 23,2000. Prior to the licensee receiving materials f rom the Linde FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This deteimination shall be made based on a SERP approved internal procedure. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. 374 (3-2000)ED ON RECYCLED PAPEF PAGE 7 OF 10 PAGESU.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SUA- 1358 Docket or Reference 40-8681 Number Amendment No. l9 10.15 The licensee is authorized to receive and process source material from the W.R. Grace site located in Chattanooga, Tennessee, in accordance with statements, representations, and commitments contained in the amendment request dated April '12,2000, and as amended and supplemented by submittals dated April 24,2000, April 26, 2000, May 5, 2000, November 1 6, 2000, and December 18, 2000. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must make a determination that adequate tailings spaceis available for the tailings produced from the processing of this material. This determination snali Oe made based on the SERP approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials f rom the W.R. Grace site, the licensee must require that the generator of the material ceriify that the material does not contain listed hazardous waste as defined under Ihe Resource Conservation and Recovery Act (RCRA) per a Radioactive Materral Profile Record. [Applicable Amendment: 17] 10.16: The licensee is authorized to receive and process source material f rom the Heritage Minerals lncorporated siite, in accordance with statements, representations, and commitments contained in the amendment request dated July 5, 2000, and as supplemented by submittals November 16, 2000, and December 18,2000. Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on the SERP approved standard bperating procedure for determination of tailings capacity. Design changes to the cells or the reclamation pian requiie the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must require that the generator of ihe material certify that the material does not contain listed hazardous waste as defined undei the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 18] Prior to the licensee receiving materials f rom the Linde FUSRAP site, the licensee must require that the generator of the materialtertify that the material does not contain listed hazardous waste as defiied under the Resource Cons6rvation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 14] Monitoring, Recording, and Bookkeeping Requirements The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any subsequent reviews, investigations, and corrective actions, shall be documented. Unless otherwise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. SECTION 11: 11.1 PRINTED ON RECYCLED PAPEBNBC FORM 374 (3-2000) PAGE 8 OF ,10 PAGESNRC FORM 374A U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SUA- 1358 Docket or Reference 40-868 I Number Amendment No. l9 11.2 The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 1 1.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmental samples. E. The inspections performed semiannually of the critical orifice assembly committed to in the submittal dated March 15, 1986, shall be documented. The critical orifice assembly shall be calibrated at least every 2 years against a positive displacement Roots meter to obtain the required calibration curve. [Applicable Amendment: 5] 11.3 The licensee shall implement a groundwater detection monitoring program to ensure compliance to 10 CFR Part 40, Appendix A. The detection monitoring program shall be in accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, and the following: A. The licensee shall sample monitoring wells WMMW-S, -1 1, -12, -14, -15, and -17, on a quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium, and the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 cFR 40.65. ln addition, the licensee shall implement a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to the extent reasonably possible, and record the volume of fluid recovered. Any fluid pumped from an LDS shall be returned to a disposal cell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing the recorded volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation.C. Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license condition. The licensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels or a pH NRC FORM 374 (3'2000)PRINTED ON R PAGE 9 OF ,10 PAGESU.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SUA- I 3-58 Docket or Reference 40-868 I Number Amendment No. l9 less than 5.0 is observed, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipel.-The licensee shall confirm, on an annual badis, that fluid from the disposal cell has not entered the LDS by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. D. Upon indication that the LDS fluids originated from the disposal 9e]!, tlre licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. lf the flow rate is equal to or greater than one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; 2. Continue to measure and record LDS "depth to fluid" measurements weekly; and 3. Notify NRC by telephone within 48 hours, in accordance with License Condition 9.2, and submit a wriiten report within 30 days of notifying NRC by telephone, in accordance with License Condition 9.2. The written report shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results. lf the calculated flow rate is less than one gallon per minute, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes' E. All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. 11.4 11.5 1 1.6 [Applicable Amendment: 8] Annually, the licensee shall collect, during mill operations, a set of air samples covering eight hours oi sampling, at a high collection flow rate (i.e., greater than or equal to 40 liters per minute), in routinety or f requently occupied areas of the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in mill feed material or at least ann_u_ally, the licensee shall analyze the mill feed or production product for U-nat, Th-230, Ra-226, and Pb- 210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the "Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shall be calibrated at least quarterly and air sampling equipment checks shall be documented. The licensee shall perform an annual ALARA audit of the radiation safety program in accordance with Regulatory Guide 8.31. NRC FORM 374 (ED PAPER PAGE 10 OF 10 PAGES NRC FORM 374A I.J,S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET License Number SI.JA- I 358 Docket or Reference '10-8681 Number Amendment No. l9 SECTIoN 12: Reporting Requirements 12.1 DELETED by Amendment '13. [Applicable Amendment: 1 3] 12.2 The licensee shall submit a detailed decommissioning plan to the NR.C at least twelve (12) months prior to planned final shutdown of mitt opbrations that"includes a deailed Quality Assurance Plan. The plan will be in acCordance wlth Regula!,iry cuioe 4.15, "Quality Assurance for Radiological Monitoring F.grur.,;' ,nd NUREG-1575, "Mirti-ngelcy Radiation Survey and Site lnvestigation Manual (MA-RSSIM), or equivalent most current guidance' [Applicable Amendment: 13] FOR THE NUCLEAR REGULATORY COMMISSION Q-grn Aep.^ Date r\u \o' - Daniel Gillen, Acting Branch Chief Fuel Cycle Licensing Branch Divisioh of Fuel CYcle SafetY and Safeguards Office of Nuclear Material SafetY and Safeguards UNITED STATES NUCLEAR REGULATORY COMMISSION WASHtNGTON. D.C. 20555-0001 January 22, 2001 Ms. Michelle Rehmann, Environmental Manager lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1050 Seventeenth Street Denver, Colorado 80265 AMENDMENT 19 TO MATERIALS LICENSE SUA.1358 -. ACCEPTANCE REVIEW REGARDING THE REQUEST TO RECEIVE AND PROCESS ALTEHNATE FEED MATERIAL FROM THE MOLYCORP SITE AT THE WHITE MESA URANIUM MILL Dear Ms. Rehmann: We have completed the initial processing, which is an administrative review, of your application for the White Mesa uranium mill to receive and process material from the Molycorp site, located in Mountain Pass, California, submitted by letter dated December 19, 2000. During our acceptance review we discussed several preliminary questions with you that you addressed by letter dated January 5, 2001. During the initial processing, we identified no significant omissions or deficiencies in the provided information and we consider your submittals acceptable for the purpose of conducting a detailed technical review to further evaluate the proposed licensing action. Please note that the detailed technical review may identify a need for additional information or analyses for completing the requested licensing action. We will proceed with the detailed review of your application and provide any requests for additional information within 60 days from the receipt of this letter. lf you have any questions regarding this letter, please contact William von Till, the NRC Project Manager for the White Mesa mill, at (301) 415-6251 or by e-mail to rwv@nrc.gov. ln accordance with 1OCFR 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 Electron Reading Room). S-incerely, Philip Ting, Chief Fuel Cycle Licensing Branch Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards Docket No.40-8681 suA-13s8 W. Sinclair, UT C.Crist, Ute Mountain Ute Tribe EPA Terry Brown, US EPA Region Vlll a(flrt uNtrED srArEs oAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 December 29, 2000 Ms. Michelle Rehmann, Environmental Manager lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 18 TO MATERIALS LICENSE SUA-1358 -- APPROVAL TO RECEIVE AND PROCESS ALTERNATE FEED MATERIAL FROM THE HERITAGE MINERALS SITE AT THE WHITE MESA UR/\NIUM MILL Dear Ms. Rehmann. ln your letter dated July 5, 2OOO, you asked that we amend your license for the White Mesa uranium mill to permit the receipt and processing of material from the Heritage Minerals lncorporated (HMl) site, located in Lakehurst, New Jersey. The material at the Heritage site is currently being regulated under NRC Source Materials License No. SMB 1541 and is in storage for decommissioning. You propose to receive this material at your White Mesa uranium mill in Blanding, Utah, use this material as alternate feed for the primary purpose of removing the uranium so that it can be reused, and dispose of the process tailings in the mill's tailings pile. You estimate the material amount to be up to 2000 cubic yards with a uranium content of approximately 0.05 percent by weight, or greater. You have determined, based on your review of the HMI information and use of your Listed Hazardous Waste Protocol, that this material does not contain listed hazardous waste. We have determined that your request to receive and process this material as alternate feed is acceptable, and have amended your license accordingly. We have enclosed the amended license and our Technical Evaluation Report that provides our bases for granting the amendment. Our principal criteria for evaluating this request are contained in our guidance entitled, "lnterim Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" provided in the NRC Regulatory lssue Summary 2000-23 that was mailed to uranium recovery licensees on November 30, 2000. We also ensured that this request complies with our requirements for uranium mills in 10 CFR Part 40, Appendix A. As you requested in your submittal, this material can not be received by the mill until it has been determined that adequate cell space is available. ln approving the Heritage Minerals request, we have added the following license condition to your license: 10.16: The licensee is authorized to receive and process source material from the Heritage Minerals lncorporated siite, in accordance with statements, representations, and commitments contained in the amendment request dated July 5, 2000, and as supplemented by submittals November 16, 2000, and December 18, 2000. o NUCLE F,':"%ii-\; Jii}i 2001 sE JAfl ZUU EI ...""r 3 December 29, 2000 Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on the SERP approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 1 8J lf you have any questions regarding this letter or the enclosures, please contact William von Till, the NRC Project Manager for the White Mesa mill, at (301) 415-6251 or by e-mail to nrv@nrc.gov. A,t, Philip Ting, Chief Fuel Cycle Licensing Branch Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards Docket No. 40-8681 SUA-1358, Amendment No. 18 Enclosures: Technical Evaluation Report and Source Material License SUA-1358 cc: W. Sinclair, UT C.Crist, Ute Mountain Ute Tribe EPA Terry Brown, US EPA Region Vlll NRC FORM 374 17-e4)O u.s. NU.LEAR REGULAToR' coMMrssroNO PAGE 1 or 11 'noes MATERIALS LICENSE Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93-438), and Title 10, Code of Federal Regulations, Chapter l, Parts 30,31,32,33,34,35,36,39,40, and 70, and in reliance on statements and representations heretofore made by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and special nuclear material desi,enated belowi to use such material for the purpose(s) and at the place(s) designated below; to deliver or transfer such material to persons authorized to receive it in accordance with the regulations of the applicable Part(s). This license shall be deemed to contain the conditions specified in Section I 83 ol the Atomic Energy Act of 1954, as amended, and is subject to all applicable rules, regulations, and orders of the Nuclear Regulatory Commission now or hereafter in effect and to any conditions specified below. International t ?A'rffifm (uSA) Corporation [Applicable Amendments: 2] 6425 S. Highway 191 P.O. Box 809 Blanding, Utah 84511 [Applicable Amendments: 2] 3. License Number SUA-13S8, Amendment No. 18 4. Expiration Date March 31,2007 5. Docket or Reference No.40-8681 Natural Uranium 8. Maximum Amount that Licensee May Possess at Any One Time Under This License Unlimited SECTIoN e: Administrative Conditions 9.1 The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan County, Utah. 9.2 All written notices and reports to the NRC required under this license, with the exception of incident and event notifications under 10 CFR 2O.22OZ and 10 CFR 40.60 requiring telephone notification, shall be addressed to the Chief, Uranium Recovery and Low-Level Waste Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. 9.3 The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated August 23, 1991, as revised by submittals dated January 13, and April 7, 1992, November 22,1994, July 27, 1995, December 13, and December 31 , 1996, and January 30, 1997, which are hereby incorporated by reference, and for the Standby Trust Agreement, dated April 29, 1997, except where superseded by license conditions below. Whenever the word "will" is used in the above referenced documents, it shall denote a requirement. [Applicable Amendment: 2] 9.4 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: 6. Byproduct, Source, and/or Special Nuclear Material 7. Chemical and/or Physical Form Any Printed on rec;-cled puper NRC FORM 374A (7-94) U.S.REGULATORY COMMISSION License Numbet MATERIALS LICENSE SUPPLEMENTARY SHEET Docket oi (1) Make changes in the facility or process, as presented in the application. (2) Make changes in the procedures presented in the application' (3) Conduct tests or experiments not presented in the application. B. The licensee shall file an application for an amendment to the license, unless the following conditions are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in this license, or impair the licensee's ability to meet all applicable NRC regulations. (2) There is no degradation in the essential safety or environmental commitments in the license application, or provided by the approved reclamation plan. (3) The change, test, or experiment is consistent with the conclusions of actions analyzed and selected in the EA dated February 1997. C. The licensee's determinations concerning Part B of this condition, shall be made by a "safety and Environmental Review Panel (SERP).' The SERP shall consist of a minimum of three individuals. One member of the SERP shall have expertise in management and shall be responsible for managerial and financial approval changes; one member shall have expertise in operations and/or construction and shall have responsibility for implementing any operational changes; and, one member shall be the corporate radiation safety officer (CRSO) or equivalent, with the responsibility of assuring changes conform to radiation safety and environmental requirements. Additional members may be included in the SERP as appropriate, to address technical aspects such as health physics, groundwater hydrology, surface-water hydrology, specific earth sciences, and other technical disciplines. Temporary members or permanent members, other than the three above-specified individuals, may be consultants. D. 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 SERP, that provide the basis for determining changes are in compliance with the requirements referred to in Part B of this condition. The licensee shall furnish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shallfunction in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] OF NRC FORM 374A (7-94) REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET 9.5 The licensee shall maintain an NRO-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at least 3 months prior to the anniversary date which is designated as June 4 of each year. !f the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety arrangement for 1 year. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in engineering plans, activities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC approved reclamation/decommissioning plan or NRC approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in favor of the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be continuously maintained in an amount not less than $10,064,794 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by the NRC. [Applicable Amendments: 2, 3, 5, 13, 15] Therefore, this office must receive an updated surety in this amount within 90 days of this letter. 9.6 Standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. SOPs for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and 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 procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. NRC FORM 374A (7-94\ 9.10 9.7 AR REGU LATORY COMMISSION PAGE OF PAGES License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preservation Act (as amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFH Part 800, and no disturbance shall occur untilthe licensee has received authorization from the NRC to proceed. The licensee shall avoid by project design, where feasible, the archeological sites designated "contributing" in the report submitted by letter dated July 28, 1988. When it is not feasible to avoid a site designated "contributing" in the report, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preservation Officer (SHPO), dated April 13, 1981. The licensee shall recover through archeological excavation all "contributing" sites listed in the report which are located in or within 100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at each site meeting these criteria shall be completed prior to the start of any project related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shall conduct such testing as is required to enable the Commission to determine if those sites designated as "Undetermined" in the report and located within 100 feet of present or known future construction areas are of such significance to warrant their redesignation as "contributing.' ln all cases, such testing shall be completed before any aspect of the undertaking affects a site. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set forth in 36 CFR Part 66, Appendix C, and whose qualifications are found acceptable by the SHPO. The licensee is hereby authorized to possess byproduct material in the form ol uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. Mill tailings shall not be transferred from the site without specific prior approval of the NRC in the form of a license amendment. The licensee shall maintain a permanent record of alltransfers made under the provisions of this condition. The licensee is hereby exempted from the requirements of Section20.1902 (e) of 10 CFR Part20 for areas within the mill, provided that all entrances to the mill are conspicuously posted in accordance with Section 20J902 (e) and with the words, "Any area within this mill may contain radioactive material." Release 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 9.8 9*9 NBC FORM 374A (7-94) 9.11 SECTION 10.1 10.2 10.3 10.4 10.5 U.S.REGULATORY COMMISSION PAGE License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Use or Termination of Licenses for Byproduct, Source, or Special Nuclear Material," dated May 1 987, or suitable alternative procedures approved by the NRC prior to any such release. The final reclamation shallbe in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22, 1999, and Revision 3.0 submitted on July 7,2OOO. Prior to the placement of alternate feed material, the licensee shall determine that adequate cell space is available for that additional material. This determination shall be made by a SERP approved procedure. 10: Operational Controls, Limits, and Restrictions The mill production rate shall not exceed 4380 tons of yellowcake per year. All liquid effluents from mill process buildings, with the exception of sanitary wastes, shall be returned to the millcircuit or discharged to the tailings impoundment. Freeboard limits for Cells 1-1, 3, and 44, shall be set periodically in accordance with the procedures set out in Section 3.0 to Appendix E of the approved license application, including the October 13, 1999 revisions made to the January 10, 1990 Drainage Report. The freeboard limit for Cell 3 shall be recalculated annually in accordance with the procedures set in the October 13, 1999 revision to the Drainage Report. [Applicable Amendment: 1 6] Disposal of material and equipment generated at the mill site shall be conducted as described in the licensee's submittals dated December 12,1994 and May 23, 1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet thick. Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. ln accordance with the licensee's submittal dated May 20, 1993, the licensee is hereby authorized to dispose of byproduct material generated at licensed in situ leach facilities, subject to the following conditions: A. Disposal of waste is limited to 5000 cubic yards from a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Barrels containing waste other than soil or sludges shall be emptied into the disposal area and the barrels crushed. Barrels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for alternate burial locations. NRC FORM 374A (7-94) 10.6 10.7 10.8 10.9 10.10 10.11 10.12 REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number D. All disposal activities shall be documented. The documentation shall include descriptions of the waste and the disposal locations, as well as all actions required by this condition. An annual summary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. The licensee is authorized to receive and process source materials from the Allied Signal Corporation's Metropolis, !llinois, facility in accordance with the amendment request dated June 15, 1993. The licensee is authorized to receive and process source materialfrom Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated October 30, and November 11, 1996. The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. [Applicable Amendments: 1 ] The licensee is authorized to receive and process source materialfrom Cabot Performance Materials'facility near Boyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended'by submittals dated May 19, and August 6, 1997. [Applicable Amendments: 4] The licensee is authorized to receive and process source materialfrom the Ashland 2 Formerly Utilized Sites RemedialAction Program (FUSRAP) site, located near Tonawanda, New York, in accordance with the amendment request dated May 8, 1998, as amended by the submittals dated May 27, June 3, and June 1 1, 1998. [Applicable Amendment: 6] The licensee is authorized to receive and process source materialfrom Cameco Corporation's Blind River and Port Hope facilities, located in Ontario, Canada, in accordance with the amendment request dated June 4, 1998, and by the submittals dated September 14, September 16, September 25, October 7, and October 8, 1998. However, the licensee is not authorized to receive or process from these facilities, the crushed carbon anodes identified in these submittals, either as a separate material or mixed in with material already approved for receipt or processing. The licensee is authorized to receive and process source materialfrom the Ashland 1 and Seaway Area D Formerly Utitized Sites Remedial Action Program (FUSRAP) site, located near Tonowanda, New York, in accordance with statements, representations, and commitments contained in the amendment request dated October 15, 1998, as amended by letters dated November 23, 1998, November 24, 1998, December 23, 1998, January 1 1 , 1999, January 27,1999, and February 1, 1999. [Applicable Amendment: 1 0] NRC FORM 374A (7-94) 10.13 10.14 10.15 EAR REGU LATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Nurhber The licensee is authorized to receive and process source materialfrom the St. Louis Formerly Utilized Sites RemedialAction Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March 2, 1999, and as amended and supplemented by submittals dated June 21, 1999; June 29, 1999 (2); and July 8, 1999. Prior to the licensee receiving materials f rom the St. Louis FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. [Applicable Amendments: 13, 14] The licensee is authorized to receive and process source materialfrom the Linde Formerly Utilized Sites RemedialAction Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March 16, 2000, and as amended and supplemented by submittals dated April 26, 2000, May 15, 2000, June 16,2000, June 19,2000, June 23,2000. Prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shallbe made based on a SERP approved internal procedure. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 1 4] The licensee is authorized to receive and process source materialfrom the W.R. Grace site located in Chattanooga, Tennessee, in accordance with statements, representations, and commitments contained in the amendment request dated April 12, 2000, and as amended and supplemented by submittals dated April24,20OO, April 26, 2000, May 5, 2000, November 16,2000, and December 18,2000. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on the SERP approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conseruation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 1 7] NRC FORM 374A (7-94r. REGULATORY COMMISSION 8oF License Number SUA-1358, Amendment No. 18 Docket or Reference Number40-8681 10.16: The licensee is authorized to receive and process source material from the Heritage Minerals lncorporated siite, in accordance with statements, representations, and commitments contained in the amendment request dated July 5, 2000, and as supplemented by submittals November 16, 2000, and December 18, 2000. Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on the SERP approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materiats from the Heritage Minerals lncorporated site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 1 8J sECTloN 11: Monitoring, Recording, and Bookkeeping Requirements 1 1.1 The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any subsequent reviews, investigations, and corrective actions, shall be documented. Unless otherwise specified in the NRC regulations allsuch documentation shall be maintained for a period of at least five (5) years. The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shallbe sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 1 1.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmental samples. E. The inspections performed semiannually of the critical orifice assembly committed to in the submittal dated March 15, 1986, shall be documented. The critical orifice assembly shall be calibrated at least every 2years against a positive displacement Roots meter to obtain the required calibration curve. 11.2 MATERIALS LICENSE SUPPLEMENTARY SHEET NRC FORM 374A (7-94) REGULATORY COMMISSION MATERIALS LICENSE lDocket oiReference Nurhber SUPPLEMENTARY SHEET [Applicable Amendment: 5] 11.3 The licensee shall implement a groundwater detection monitoring program to ensure compliance to 10 CFR Part 40, Appendix A. The detection monitoring program shall be in accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, and the following: A. The licensee shaltsample monitoring wells WMMW-S, -11, -12, -14, -15, and -17, on a quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium, ani the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. ln addition, the licensee shall implernent a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection system (LDS) of any cell, the license6 shall pump fluid from the LDS, to the extent_reasonably possible, and recor-d the volume of fluid recovered. Any fluid pumped from an LDS shall be returned to a disposal cell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing.the recorded'volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. C. Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and aialyze the fluid for pH and the parameters listed in paragraph A of this license condition. The jicensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated bonstitubnt levels or a pH less than 5.0 is obserued, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an annual basis, that fluid from the disposal cell has not entered the LDS by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. D. Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this . license condition. lf the flow rate is equal to or greater than one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; Z. Continue to measure and record LDS "depth to fluid" measurements weekly; and u.slr-enn REGU LAToRY coMMrssroN MATERIALS LICENSE SUPPLEMENTARY SHEET E. 3. Notify NRC by telephone within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notifying NRC by telephone, in accordance with License Condition 9.2. The written report shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results. lf the calculated flow rate is less than one gallon per minute, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. [Applicable Amendment: 8] Annually, the licensee shall collect, during mill operations, a set of air samples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equal to 40 liters per minute), in routinely or frequently occupied areas of the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in millfeed material or at least annually, the licensee shall analyze the millfeed or production product for U-nat, Th-230, Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the 'Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shall be calibrated at least quarterly and air sampling equipment checks shall be documented. The licensee shall perform an annualALARA audit of the radiation safety program in accordance with Regulatory Guide 8.31. 12: Reporting Requirements DELETED by Amendment 13. [Applicable Amendment: 13] The licensee shall submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations that includes a deailed Quality Assurance Plan. The plan will be in accordance with Regulatory Guide 4.15, "Quality Assurance for Radiological Monitoring Programs," and NUREG-1575, "Multi-Agency Radiation Survey and Site lnvestigation Manual (MARSSIM), or equivalent most current guidance. [Applicable Amendment: 1 3] FOR THE NUCLEAR REGULATORY COMMISSION 11.4 11.5 11.6 SECTION 12.1 12.2 Printed on recvcled paper NRC FORM 374A (7-94) R REGU LATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number -,JdL Philip Ting, Chief €.- Fuel Cycle Licensing Branch Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards TECHNICAL EVALUATION REPORT REQUEST TO RECEIVE AND PROCESS HERITAGE MINERALS SITE MATERIAL DOCKET NO.: 040-8681 LICENSE NO.: SUA-1358 LICENSEE: lnternational Uranium (IUSA) Corporation FAGILITY: White Mesa Uranium Mill DATE: December21,2000 PROJECT MANAGER: William von Till TECHNICAL REVIEWERS: William von Till - RCRA and Groundwater John Lusher - Health Physicist Dan Rom, Geotechnical Engineer SUMMARY AND CONCLUSIONS: We have reviewed lnternational Uranium (USA) Corporation's (IUSA's) license amendment application dated July 5, 2000, and supplemental information in letters dated November 16, 2000, and December 18, 2000, to receive and process uranium-bearing materials from the Heritage Minerals lncorporated (HMl) site, located in Lakehurst, New Jersey. These materials would be used as "alterrrate feed material". We have reviewed IUSA's request using our formal guidance, "lnterim Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" provided in the NRC Regulatory lssue Summary 2000-23 that was mailed to uranium recovery licensees on November 30, 2000. A concern was raised regarding the need for special handling procedures due to the high thorium content of the material. This was addressed by the licensee, by letter dated December 18, 2000, by adding a standard operating procedure entitled "High thorium content ore management". During the review process, available cell space was an issue. This was addressed under a separate TER and license amendment by NRC letter dated July 21, 2000. We find the amendment request to be acceptable and have amended the license so that IUSA may process this material. DESCRIPTION OF LICENSEE'S AMENDMENT REQUEST By its submittal dated July 5, 2000, IUSA requested that NRC amend Materials License SUA-1358 to allow the receipt and processing of material other than natural uranium ore (i.e., alternate feed material) at its White Mesa uranium mill located near Blanding, Utah. The proposed alternate feed material would come from the Heritage Minerals site in Lakehurst, New Jersey. This material is currently licensed by the NRC under Source Materials License No. SMB 1541. IUSA proposes to receive contaminated materials from the Heritage Minerals site for processing at its uranium mill as alternate feed. The material is a dry sand, consisting of dense, finely divided solids containing uranium. Uranium, thorium, and radium are its primary radiological constituents. Based on HMI documents, IUSA estimates the amount of material that it would receive under this amendment request to be 1000 to 2000 yds3. IUSA has determined that the material does not contain listed hazardous waste as defined in the Resource Recovery and Conservation Act, as amended, 42 U.S.C. Section 6901-6991. IUSA has proposed that lt will be a condition of the license that the mill shall not accept any of the Heritage material at the site unless and until the mill's Safety and Environmental Review Panel (SERP) has determined that the mill has sufficient licensed tailings capacity. The tailings capacity must be sufficient to permanently store: (1) All 11e.(2) byproduct material, as defined under the Atomic Energy act, that would result from the processing of all of the material; (2) All other ores and alternate feed materials on site; and (3) All other materials required to be disposed of in the mill's tailings impoundments pursuant to the mill's reclamation plan. By letter dated November 16, 2000, IUSA developed a standard operating procedure entitled "Tailings Capacity Evaluation". Staff evaluated the procedure and finds it acceptable. a. Site and Materia! lnformation The HMI site is located in Lakehurst, New Jersey. Material is being stored at the site for decommissioning under the Final Status Survey Plan (FSSP) for License Termination submitted by HMI in 1997. This material consists of monazite sands which were processed for heavy minerals (primarily titanium mineral ilmenite) by mechanical methods with no chemical treatment or extraction. IUSA estimates the amount of material for this amendment request to be up to 2000 yds3. HMI has estimated that the material has a uranium content of approximately 0.05 weight percent, or greater. From 1973 to 1982 ASARCO, lnc. dredged and processed natural monazite sands for recovery of heavy minerals using mechanical and magnetic separation processing. The primary byproduct was a lighter tailings fraction stored on site. ASARCO ceased operations in '1982. HMI purchased the property in 1986 and resumed operations until 1990, when all production stopped. During HMI's operation, the facility reprocessed the lighter tailings fraction remaining for further recovery of heavy minerals, and produced an additional product stored as waste in a monazite sand pile. This monazite pile was licensed by the NRC as source material in December 1990. The FSSP provides for transport of the material to an off-site facility for disposal. The actual amount is estimated to be approximately 1000 CY. To account for potential expansion, IUSA has requested to receive and process up to 2000 CY. b. Transportation Considerations The materialwill be shipped by rail and truck in intermodal containers. The covered containers will be loaded onto railcars and transported to an intermediate transfer point where the intermodal containers will then be loaded onto trucks for the final leg of the trip to the mill. The transfer point is expected to be either near Grand Junction, Colorado; Cisco, Utah, Green River, Utah; or East Carbon, Utah. The materialwill be shipped in exclusive containers as "low specific activity" (LSA) Hazard Class 7 Hazardous Material as defined by Department of Transportation regulations. According to the Utah Department of Transportation (UDOT, 2000), on an average day 6,675 motor vehicles (467 trucks total) traveled the stretch of State Road 191 on the south limit of Blanding, Utah. Based on this information, an average of '1.4 additional trucks per day represents an increased truck traffic load of 0.3 percent for approximately 3 months. Total motor vehicle traffic through Moab, Utah on a daily basis is 17,075 (683 trucks total). Additional trucks transporting the inter-modal containers for Heritage Minerals material would be approximately 1.4 on the average per day, which is approximately 0.2o/o of the total truck traffic or 0.008% of the total traffic. Based on this information, a very minor increase in truck traffic from this action is anticipated. c. Handlinq and Processinq at the Mill Site IUSA proposes to process the material in a similar manner to normal processing of conventional ore, either alone or in combination with other approved alternate feed materials. Tailings produced by the processing of this material will be disposed of on-site in an existing lined tailings impoundment (Cell 3). Depending upon the amount of material processed and the length of time that material is shipped to the site, IUSA may have to build additional tailings impoundments or utilize cell 4a, which is presently not being used. lf this is the case, a license amendment will be necessary to revise the reclamation plan and surety amount. As we note later in this report, IUSA must comply with its existing license requirements that limit the amount of tailings in Cell 3, and obtain whatever approvals are necessary for additional impoundments, if they are needed. IUSA will ensure safety of workers and the environment using already established procedures and equipment in the radiation safety program for processing natural ores. The potential for employee exposures from the handling and processing of this material is not expected to be any more significant than that normally encountered with the milling of conventional uranium ores. Mill employees involved in handling the material will be provided with personal protective equipment (e.9., coveralls, rubber gloves), including respiratory protection, if necessary. Airborne particulate and breathing zone sampling will be conducted in accordance with the environmental monitoring program established by the licensee. During the review of the submittals, a concern was raised regarding the need for special handling procedures for high thorium content ore material. IUSA addressed this concern, by letter dated December 18, 2000, by the addition of a Standard Operating Procedure entitled "High Thorium Content Ore Management". Staff evaluated this procedure and deemed it adequate to address the original concerns. J STAFF TECH NICAL EVALUATION We have reviewed IUSA's request in accordance with NRC staff guidance "lnterim Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" provided in the NRC Regulatory lssue Summary 2000-23 that was mailed to uranium recovery licensees on November 30, 2000 and 10 CFR Part 40, Appendix A requirements. The staff guidance (referred to hereinafter as the "Alternate Feed Guidance") requires that we make the following determinations in our reviews of licensee requests to process material other than natural uranium ores: Whether the feed material qualifies as "ore" as defined in the NRC guidance; Whether the feed material contains listed hazardous waste; and (c) Whether the feed material is being processed primarily for its source-material content. ln this evaluation, we discuss how IUSA has addressed each of these criteria in its application to amend the license. We also discuss the other considerations that affect the granting of this amendment. a. Determination of whether the feed material is "ore" For the tailings and wastes from the proposed processing to qualify as 11e.(2) byproduct material, the feed material must qualify as "ore." ln the Alternate Feed Guidance, we define "ore" in part as: "...any other matter from which source material is extracted in a licensed uranium or thorium mill." IUSA has proposed to use alternate feed material from the Heritage Minerals site that contains varying concentrations of uranium, a "source material" as defined by the Atomic Energy Act of 1954 (AEA). Uranium concentrations are estimated to be 0.05 percent by weight. Because IUSA is proposing in this amendment request to extract the uranium from this material at their White Mesa uranium mill, we find that the proposed feed material qualifies as "ore" as defined in our guidance. b. Determination of whether the feed material contains hazardous waste Under the Alternate Feed Guidance, we would not approve proposed feed material for processing at a licensed mill that contains a listed hazardous waste. The IUSA amendment request addresses several measures that will provide assurance that listed hazardous wastes will not be processed at the White Mesa mill. First, IUSA conducted its own review of information on potential listed hazardous wastes in existing HMI and NRC documents. Second, IUSA also hired an independent consultant to review available information and perform a separate review for classifying various Heritage Minerals properties and (a) (b) determining which may contain listed hazardous waste. The consultant's analysis was included in the license amendment request. IUSA developed a listed hazardous waste protocol that has been accepted by the Utah Department of Environmental Quality (UDEO) (letter dated December 7, 1999). This protocol was used in IUSA's amendment request for the St. Louis, Linde, and W.R. Grace alternate feeds and found acceptable by the NRC. Thirdly, IUSA has provided an affidavit from the manager of the HMI facility certifying that the material in question does not contain a listed hazardous waste. IUSA will require that the generator certify that the incoming material is not a listed hazardous waste as defined in EPA's regulation in 40 CFR 261 andlor that the material is exempt from RCRA regulation under 40 CFR 261 .4(a)(4). Within the condition allowing the licensee to receive and process Heritage Minerals material, we have placed the following text: Prior to the shipment of Heritage Minerals material to the mill, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. All components of the HMI materials are byproducts from the physical processing of sands for the recovery of heavy minerals, which is not a RCRA listed process. HMI has also certified that no other waste material was mixed in with the byproduct. No chemicals were used in the process. c. petermination of whether the feed materia! is beinq processed primarily for its source-material content Using our Alternate Feed Guidance, a licensee must show that potential alternate feed material is being processed primarily for its source-material content. ln the Commission Memorandum and Order of February 10, 2000, the Commission stated. the staff does not need to consider the quantity of uranium in its review, only whether the feed material (ore) is being processed primarily for its source content and that radiation safety is considered. IUSA has provided a signed certification that the uranium-bearing material is being processed primarily for the recovery of uranium and for no other primary purpose. d. Gonclusions concerninq compliance with alternate feed material criteria Based on the information provided by IUSA, the NRC staff finds that the Heritage Minerals Site material meets the criteria in the Alternate Feed Guidance, because (1) it qualifies as an "ore" as defined by NRC guidance, (2) the material to be processed will not be or contain listed hazardous wastes, and (3) it is being processed primarily for its source-material content. e. Other Considerations We have also considered other factors related to the granting of this amendment request. We have concluded that the processing of this material will not result in (1) a significant change or increase in the types or amounts of effluents that may be released offsite; (2) a significant increase in individual or cumulative occupational radiation exposure; (3) a significant construction impact; or (4) a significant increase in the potential for or consequences from radiological accidents. We base this conclusion on the following. Yellowcake produced from the processing of this material will not cause the currently-approved yellowcake production limit of 4380 tons per year to be exceeded. Yellowcake is the useful product of the mill and contains elevated concentrations of uranium that are further refined in other plants and processes to produce fuel for nuclear reactors, for example. ln addition, and as a result, radiological doses to members of the public in the vicinity of the mill will not be elevated above levels previously assessed and approved. The licensee will dispose of the tailings produced by the processing of this material on-site in an existing lined tailings impoundment (Cell 3), and if processing of large amounts continues for an extended period of time, in additional NRC approved tailings impoundments. The volume of tailings that would be generated by processing the alternate feed material is comparable to the volume that would be generated from processing an equivalent amount of ore authorized under the license. The design of the existing impoundment, which includes a leak detection system, has been previously approved by NRC, and IUSA is required by its NRC license to conduct regular monitoring of the impoundment liners and of the groundwater around the impoundments to detect leakage if it should occur. By license condition under this amendment, IUSA must first determine if cell space exists prior to receiving Heritage Minerals material. lf any additional tailings cells are needed, they will be first approved by NRC under a license amendment and will have similar monitoring. The licensee originally proposed to build a six cell impoundment system which was addressed in the Final Environmental Statement for the license application (NRC, 1979). ln general, the Heritage Minerals site material will be similar in composition to the mill tailings currently disposed of in the Cell 3 impoundment, because it will contain metals and other chemicals which are present already in the tailings. Furthermore, IUSA is required to conduct regular monitoring of the impoundments to detect leakage if it should occur. Therefore, any environmental impacts that could be associated with the disposal of the additional quantity of Heritage Minerals Site material from processing in the mill will not be larger than impacts previously evaluated and determined to be acceptable for this mill. 1. 2 3) 4. RECOMMENDED LICENSE CHANGE: Pursuant to Title 10 of the Code of Federal Regulations, Part 40, Materials License SUA-1358 will be amended by the addition of License Condition 10.16 as follows: 10.16 The licensee is authorized to receive and process source materialfrom the Heritage Minerals lncorporated siite, in accordance with statements, representations, and commitments contained in the amendment request dated July 5, 2000, and as supplemented by submittals November 16, 2000, and December 18, 2000. Prior to the licensee receiving materials from the Heritage Minerals lncorporated site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Heritage Minerals site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 18] ENVIRONMENTAL IMPACT EVALUATION An environmental report covering the information identified in 10 CFR 51.45 was not required from the licensee. Because IUSA's receipt and processing of the material will not result in (1) a significant change or increase in the types or amounts of effluents that may be released offsite; (2) a significant increase in individual or cumulative occupational radiation exposure; (3) a significant construction impact; or (4) a significant increase in the potential for or consequences from radiological accidents, an environmental review was not performed since actions meeting these criteria are categorically excluded under 10 CFR 51.22(c)(11). ln consultation with the State of Utah, the issue of cell space came up as a general concern in the mill receiving these alternate feed materials. This issue was addressed under a previous licensing action by NRC letter dated July 21, 2000, and the licensee now has an operation procedure in place for making that determination. lf the licensee needs to expand cells or refurbish cell44, a separate amendment and evaluation would be necessary. The licensee originally proposed to build a six cell impoundment system which was addressed in the Final Environmental Statement for the license application (NRC, 1979). The mill has only utilized four cells, one of which (Cell 4a), is not currently in use. IUSA's current proposal includes expansion into an existing cellfootprint. Transport trucks driving through Moab, Utah was a concern from a member of the public. According to the Utah Department of Transportation (UDOT, 2000), total motor vehicle traffic through Moab, Utah on a daily basis is 17 ,075 (683 trucks total). Additional trucks transporting the inter-modal containers for Heritage Minerals material would be approximately 1.4 on the average per day, which is approxim ately 0.2o/o of the total truck traffic or 0.008% of the total traffic. Based on this information, a very minor increase in truck traffic from this action is anticipated. ln addition, transportation impacts for various remediation alternatives have already been examined by the NRC in the Environmental Assessment, Finding of No Significant lmpact, and Notice of Opportunity for a Hearing for Remediation of the Lakehurst, New Jersey Site" dated September 1, 1999 (Federal Register Volume 64, Number 169) for the decommissioning of the site and by the Final Environmental Statement for the White Mesa mill (NRC, 1979). REFERENGES: U.S. Nuclear Regulatory Commission (NRC). Commission Memorandum and Order, lnternational Uranium (USA) Corp., CLI-00-01, 52 NRC 9 (Feb. 10, 2000). NRC "EnvironmentalAssessment, Finding of No Significant lmpact, and Notice of Opportunity for a Hearing for Remediation of the Lakehurst, New Jersey Site", September 1, '1999 (Federal Register Volume 64, Number 169). NRC "Final Position and Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" FederalRegister, Volume 60, No. 184, Pages 49296-49297. September 22,1995. NRC "Final Environmental Statement" for the White Mesa Uranium Project, Energy Fuels Nuclear, lnc. May, 1979. Utah Department of Transportation. Phone conversation with Ms. Vicki Hanshew of the Program Development Division with William von Till of NRC regarding traffic statistics on Highway 191 and through Moab, Utah. December 20,2000. oNUCLEAR UNITED STATES REGULATORY COMMISSION wASHTNGTON, D.C. 20sss-000'l December 27, 2000a((rt Ms. Michelle Rehmann, Environmental Manager lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 17 TO MATERIALS LICENSE SUA-1358 -- APPROVAL TO RECEIVE AND PROCESS ALTERNATE FEED MATERIAL FROM THE W.R. GRACE SITE AT THE WHITE MESA URANIUM MILL Dear Ms. Rehmann: ln your letter dated April12,2OOO, you asked that we amend your license for the White Mesa uranium mill to permit the receipt and processing of material removed from the W.R. Grace site located in Chattanooga, Tennessee. This site is being remediated under the authority of the State of Tennessee and is licensed by the Division of Radiological Health under source material license S-3306-E9. You propose to receive this material at your White Mesa uranium mill in Blanding, Utah, remove the uranium so that it can be reused, and dispose of the process tailings in the mill's tailings pile. You have requested to receive and process for its uranium content 140,000 cubic yards (CY) of materialfrom the W.R. Grace Site. You have determined that this material does not contain listed hazardous wastes as defined by subpart D of the Resource Conservation and Recovery Act (RCRA). As indicated in the license condition below, this material can not be received by the mill until adequate cell space is available in accordance with your standard operating procedure for determination of available tailings capacity as indicated in your November 16, 2000 letter. !n approving the W.R. Grace request, we have added the following license condition to your license: 10.15 The licensee is authorized to receive and process source materialfrom the W.R. Grace site located in Chattanooga, Tennessee, in accordance with statements, representations, and commitments contained in the amendment request dated April 12, 2000, and as amended and supplemented by submittals dated Apri!24,2000, April 26, 2000, May 5, 2000, November 16, 2000, and December 18, 2000. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on the SERP approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 1 7] .<23456h ff ;is E -. ir '.)'lu$u t@ "'-- rt 'fflor: AglrtdlF\- ,j,.: :q.i;ui ..5fU# ,t) Qoo*eP lf you have any questions regarding this letter or the enclosures, please contact William von Till, the NRC Project Manager for the White Mesa mill, at (301) 415-6251 or by electronic mail at rwv@nrc.gov. Sincerely, ,/)/, */'-/'0 l-)" ,f Philip fing, Chief- Fuel Cycle Licensing Branch Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards Docket No.40-8681 SUA-1358, Amendment No. 17 Enclosures: Technical Evaluation Report and Source Material License SUA-1358 cc: Bill Sinclair, State of Utah J. Graves, State of Tennessee C.Crist, Ute Mountain Ute Tribe EPA Terry Brown, US EPA Region Vlll NRC FORM 374 (7-94\U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE PAGE 1 or 10 pa6sg Pursuant to the Atomic Energy Act of 1954, as amended, the Ener-ey Reorganizarion Act of 1974 (Public Law 93-438), and Title 10, Code of Federal Regulations, Chapter I, Parts 30, 3 I , 32, 33, 34, 35, 36, 39, 40, and 70, and in reliance on sratements and representations heretofore made by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and special nuclear material designated below; to use such material for the purpose(s) and at the place(s) designated below; to deliver or transfer such material to persons authorized to receive it in accordance with the regulations of the applicable Part(s). This license shall be deemed to contain the conditions specified in Section I 83 of the Atomic Energy Act of I 954, as amended, and is subject to all applicable rules, regulations, and orders of theNuclear Re-eulatory Commission now or hereafter in effect and to any conditions specified below. Licensee lnternational Uranium (USA) Corporation [Applicable Amendments: 2] 6425 S. Highway 191 P.O. Box 809 Blanding, Utah 84511 le Amendments: 2I 3. License Number SUA-1358, Amendment No. 17 4. Expiration Date March 31,2007 5. Docket or Reference No.40-8681 6. Byproduct. Source, and/or Special Nuclear Material SECTION 9.1 9.2 9.3 9.4 7. Chemical and/or Physical Form 8. Maximum Amount that Licensee May Possess at Any One Time Under This License UnlimitedNatural Uranium e: Administrative Conditions The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan County, Utah. All written notices and reports to the NFIC required under this license, with the exception of incident and event notifications under 10 CFR 20.2202 and 10 CFR 40.60 requiring telephone notification, shall be addressed to the Chief, Uranium Recovery and Low-Level Waste Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated August 23, 1991 , as revised by submittals dated January 13, and April 7, 1992, November 22, 1994, July 27,1995, December 13, and December 31, 1996, and January 30, 1997, which are hereby incorporated by reference, and for the Standby Trust Agreement, dated April 29, 1997, except where superseded by license conditions below. Whenever the word "will" is used in the above referenced documents, it shall denote a requirement. [Applicable Amendment: 2] A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: Any NRC FORM 374A (7-54) U.S. I-EAR REGU LATORY COMMISSION PAGE 2 OF License Number SUA-1358, Amendment No. 1 o ,oces 17 MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number 40-8681 (1) Make changes in the facility or process, as presented in the application. (2) Make changes in the procedures presented in the application. (3) Conduct tests or experiments not presented in the application. B. The licensee shallfile an application for an amendment to the license, unless the following conditions are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in this license, or impair the licensee's ability to meet all applicable NRC regulations. (2) There is no degradation in the essential safety or environmental commitments in the license application, or provided by the approved reclamation plan. (3) The change, test, or experiment is consistent with the conclusions of actions analyzed and selected in the EA dated February 1997. C. The licensee's determinations concerning Part B of this condition, shall be made by a "Safety and Environmental Review Panel (SERP).' The SERP shall consist of a minimum of three individuals. One member of the SERP shall have expertise in management and shall be responsible for managerial and financial approval changes; one member shall have expertise in operations and/or construction and shall have responsibility for implementing any operational changes; and, one member shall be the corporate radiation safety otficer (CRSO) or equivalent, with the responsibility of assuring changes conform to radiation safety and environmental requirements. Additional members may be included in the SERP as appropriate, to address technical aspects such as health physics, groundwater hydrology, surface-water hydrology, specific earth sciences, and other technicaldisciplines. Temporary members or permanent members, other than the three above-specified individuals, may be consultants. D. 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 SERP, that provide the basis for determining changes are in compliance with the requirements referred to in Part B of this condition. The licensee shall furnish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shallfunction in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] NRC FORM 374A (7-94) U,S.REGULATORY COMMISSION PAGE 3 oF 1oron.. License Number SUA-1358, Amendment No. 17 MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number 40-8681 9.5 The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at least 3 months prior to the anniversary date which is designated as June 4 of each year. lf the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety arrangement for 1 year. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in engineering plans, activities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC approved reclamation/decommissioning plan or NRC approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in favor of the NRC, and the associated Standby Trust Agreement, dated April29, 1997, shall be continuously maintained in an amount not less than $10,064,794 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by the NRC. [Applicable Amendments: 2, 3, 5, 13, 15] Therefore, this office must receive an updated surety in this amount within 90 days of this letter. 9.6 Standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. SOPs for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and 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 procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. NRC FORM 374A (7-94) 9.10 U.S. ILEAR REGU LATORY COMMISSION APAGE , OF I-icense Number SUA-1 358, Amendment No. MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number 40-8681 Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preseruation Act (as amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur untilthe licensee has received authorization from the NRC to proceed. The licensee shall avoid by project design, where feasible, the archeological sites designated "contributing" in the report submitted by letter dated July 28, 1988. When it is not feasible to avoid a site designated'contributing" in the report, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preseruation Officer (SHPO), dated April 13, 1981. The licensee shall recover through archeological excavation all "contributing" sites listed in the report which are located in or within 100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at each site meeting these criteria shall be completed prior to the start of any project related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shallconduct such testing as is required to enable the Commission to determine if those sites designated as "Undetermined" in the report and located within 100 feet of present or known future construction areas are of such significance to warrant their redesignation as "contributing." !n all cases, such testing shallbe completed before any aspect of the undertaking affects a site. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set forth in 36 CFR Part 66, Appendix C, and whose qualifications are found acceptable by the SHPO. The licensee is hereby authorized to possess byproduct material in the form of uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. Mill tailings shall not be transferred from the site without specific prior approval of the NRC in the form of a license amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. The licensee is hereby exempted from the requirements of Section 2O.19O2 (e) of 10 CFR Part 20 for areas within the mill, provided that all entrances to the mill are conspicuously posted in accordance with Section 2O.19O2 (e) and with the words, "Any area within this mill may contain radioactive material." Release 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 1 o ,on., 17 9.7 9.8 9.9 NRC FORM 374A (7-94]. 9.11 SECTION 10.1 10.2 10.3 10.4 10.5 REGULATORY COMMISSION 10 pecEs License Number SUA-1358, Amendment No. 17 MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number 40-8681 Use or 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. The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22,1999, and Revision 3.0 submitted on July 7,2OOO. Prior to the placement of alternate feed material, the licensee shall determine that adequate cell space is available for that additional material. This determination shall be made by a SERP approved procedure. 10: Operational Controls, Limits, and Restrictions The mill production rate shall not exceed 4380 tons of yellowcake per year. All liquid effluents from mill process buildings, with the exception of sanitary wastes, shall be returned to the mill circuit or discharged to the tailings impoundment. Freeboard limits for Cells 1-1, 3, and 44, shall be set periodically in accordance with the procedures set out in Section 3.0 to Appendix E of the approved license application, including the October 13, 1999 revisions made to the January 10, 1990 Drainage Report. The freeboard limit for Cell 3 shall be recalculated annually in accordance with the procedures set in the October 13, 1999 revision to the Drainage Report. [Applicable Amendment: 1 6] Disposal of material and equipment generated at the mill site shall be conducted as described in the licensee's submittals dated December 12,1994 and May 23, 1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet thick. Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. ln accordance with the licensee's submittal dated May 20,1993, the licensee is hereby authorized to dispose of byproduct material generated at licensed in situ leach facilities, subject to the following conditions: A. Disposal of waste is limited to 5000 cubic yards from a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Barrels containing waste other than soil or sludges shall be emptied into the disposal area and the barrels crushed. Barrels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for alternate burial locations. NRC FORM 374A (7-94) 10.6 10.7 10.8 10.9 10.10 10.11 10.12 R REGU LATORY COMMISSION License NumberSUA-1358, Amendment No. 17 MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number40-8681 D. All disposal activities shall be documented. The documentation shall include descriptions of the waste and the disposal locations, as well as all actions required by this condition. An annual summary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. The licensee is authorized to receive and process source materials from the Allied Signal Corporation's Metropolis, lllinois, facility in accordance with the amendment request dated June 15, 1993. The licensee is authorized to receive and process source materialfrom Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated October 30, and November 1 1, 1996. The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. [Applicable Amendments: 1 ] The licensee is authorized to receive and process source materialfrom Cabot Performance Materials'facility near Boyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended by submittals dated May 19, and August 6, 1997. [Applicable Amendments: 4] The licensee is authorized to receive and process source material from the Ashland 2 Formerly Utilized Sites RemedialAction Program (FUSRAP) site, located near Tonawanda, New York, in accordance with the amendment request dated May 8, 1998, as amended by the submittals dated May 27, June 3, and June 1 1 , 1998. [Applicable Amendment: 6] The licensee is authorized to receive and process source materialfrom Cameco Corporation's Blind River and Port Hope facilities, located in Ontario, Canada, in accordance with the amendment request dated June 4, 1998, and by the submittals dated September 14, September 16, September 25, October 7, and October 8, 1998. However, the licensee is not authorized to receive or process from these facilities, the crushed carbon anodes identified in these submittals, either as a separate material or mixed in with material already approved for receipt or processing. The licensee is authorized to receive and process source materialfrom the Ashland 1 and Seaway Area D Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonowanda, New York, in accordance with statements, representations, and commitments contained in the amendment request dated October 15, 1998, as amended by letters dated November 23, 1998, November 24, 1998, December 23, 1998, January 1 1, 1999, January 27,1999, and February 1, 1999. [Applicable Amendment: 1 0] NRC FORM 374A (7-94) 10.13 10.14 10.15 EAR REGU LATORY COMMISSION 10 PAGES t''",''tfJff-l3sg, Amendment No. 17 MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference YCISOAf The licensee is authorized to receive and process source materialfrom the St. Louis Formerly Utilized Sites RemedialAction Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March 2, 1999, and as amended and supplemented by submittals dated June 21 , 1999; June 29, 1999 (2); and July 8, 1999. Prior to the licensee receiving materials from the St. Louis FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. [Applicable Amendments: 13, 14] The licensee is authorized to receive and process source material from the Linde Formerly Utilized Sites Remedial Action Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March 16, 2000, and as amended and supplemented by submittals dated April26, 2000, May 15, 2000, June 16,2000, June 19,2000, June 23,2000. Prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved internal procedure. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the Linde FUSRAP site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment 1 4] The licensee is authorized to receive and process source materialfrom the W.R. Grace site located in Chattanooga, Tennessee, in accordance with statements, representations, and commitments contained in the amendment request dated April 12,2OOO, and as amended and supplemented by submittals dated Apri!24,2000, April 26, 2000, May 5, 2000, November 16,2000, and December 18,2000. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on the SERP approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conseruation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 17] NRC FORM 374A (7-94\ EAR REGU LATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET SUA-1358, Amendment No. 17 Docker or Rererence yfilEiOgf sECTloN 11: Monitoring, Recording, and Bookkeeping Requirements 1 1.1 The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any subsequent reviews, investigations, and corrective actions, shall be documented. Unless otherwise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 1 1.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmental samples. E. The inspections performed semiannually of the critical orifice assembly committed to in the submittaldated March 15, 1986, shall be documented. The criticalorifice assembly shall be calibrated at least every 2 years against a positive displacement Roots meter to obtain the required calibration curve. [Applicable Amendment: 5] The licensee shall implement a groundwater detection monitoring program to ensure compliance to 10 CFR Part 40, Appendix A. The detection monitoring program shall be in accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, and the following: A. The licensee shall sample monitoring wells WMMW-S, -1'1, -12, -14, -15, and -17, on a quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium, and the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. ln addition, the licensee shall implement a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. !f sufficient fluid is present in the leak detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to the extent reasonably possible, and 11.2 11.3 NRC FORM 374A (7-941 11.4 MATERIALS LICENSE SUPPLEMENTARY SHEET REGULATORY COMMISSION 9PAGE OF License NumberSUA-1358, Amendment No. 17 c. D. E. Docket or Reference Y6BOAf record the volume of fluid recovered. Any fluid pumped from an LDS shall be returned to a disposalcell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing the recorded volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license condition. The licensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels or a pH less than 5.0 is obserued, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an annual basis, that fluid from the disposal cell has not entered the LDS by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. !f the flow rate is equal to or greater than one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; 2. Continue to measure and record LDS "depth to fluid" measurements weekly; and 3. Notify NRC by telephone within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notifying NRC by telephone, in accordance with License Condition 9.2. The written report shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results. lf the calculated flow rate is less than one gallon per minute, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. [Applicable Amendment: 8] Annually, the licensee shall collect, during mill operations, a set of air samples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equalto 40 liters per minute), in routinely or frequently occupied areas ol the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in millfeed material or at least annually, the licensee shall analyze the mill feed or production product for U-nat, Th-230, NRC FORM 374A (7-94r. 11.5 1 1.6 12.1 12.2 MATERIALS LICENSE SUPPLEMENTARY SHEET REGULATORY COMMISSION Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards 10 OF License NumberSUA-I358, Amendment No. 17 Docket or Reference Y6SOAf 1 o ,oo.. Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the "Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shall be calibrated at least quarterly and air sampling equipment checks shall be documented. The licensee shall perform an annual ALARA audit of the radiation safety program in accordance with Regulatory Guide 8.31. SECTION 12: Reporting Requirements DELETED by Amendment 13. [Applicable Amendment: 1 3] The licensee shall submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations that includes a deailed Quality Assurance Plan. The plan will be in accordance with Regulatory Guide 4.15, "Quality Assurance for Radiological Monitoring Programs," and NUREG-1575, "Multi-Agency Radiation Survey and Site !nvestigation Manual (MARSSIM), or equivalent most current guidance. [Applicable Amendment: 13] FOR THE NUCLEAR REGULATORY COMMISSION oate?o.c , >7, >, a o TECHNICAL EVALUATION REPORT REQUEST TO REGEIVE AND PROGESS DOCKET NO.: LIGENSE NO.: LICENSEE: FACILITY: DATE: PROJECT MANAGER: W.R. GRACE SITE MATERIAL 40-8681 suA-1358 lnternational Uranium (USA) Corporation White Mesa Uranium Mill December 20,2OOO William von Till TECHNICAL REVIEWERS: William von Till - RCRA and Groundwater John Lusher - Health Physicist Dan Rom - Geotechnical Engineer SUMMARY AND CONCLUSIONS: We have reviewed lnternational Uranium Corporation's (IUSA's) license amendment application dated April 1 2, 2000, with supplemental information dated April 24,2000, April 26, 2000, and May 5, 2000, November 16, 2000, and December 18, 2000 to receive and process uranium- bearing materials from the W.R. Grace site located in Chattanooga, Tennessee. This site is being remediated under the authority of the State of Tennessee and is licensed by the Division of Radiological Health under source material license S-3306-E9. These materials would be used as "alternate feed material". We have reviewed IUSA's request using our formal guidance, "Final Position and Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" and the Commission's Memorandum and Order, lnternational Uranium (USA) Corp., CLI- 00-01 , 52 NRC 9 (Feb. 10, 2000). During the review of the submittals, a concern was raised regarding the need for special handling procedures for high thorium content ore material. IUSA in response to this concern, by letter dated December 18, 2000, developed a Standard Operating Procedure, consequently, this issue was adequately addressed. During the review process, available cell space was an issue. This was addressed under a separate TER and license amendment by NRC letter dated July 21, 2000. Therefore, we find the amendment request to be acceptable and have amended the license so that IUSA may receive and process this material. We have conditioned the license such that this material can not be received by the mill until it has been determined that adequate space is available in the tailings cells. 1. DESCRIPTION OF LICENSEE'S AMENDMENT REQUEST By its submittal dated April 12, 2000, IUSA requested that NRC amend Materials License SUA-1358 to allow the receipt and processing of material other than natural uranium ore (i.e., alternate feed material) at its White Mesa uranium mill located near Blanding, Utah. These sites currently are being remediated by the by W.R. Grace under the regulatory authority of the State of Tennessee. IUSA proposes to receive materials from the W.R. Grace site for processing at its uranium mill. This material consists of uranium-bearing material resulting from the processing of monazite sands for the extraction of thorium and rare earth materials. Uranium, thorium, and radium are its primary radiological constituents. Based on W.R. Grace information, IUSA estimates the amount of material for this amendment request to be up to 140,000 yds3. ln addition to its April 12,2000,letter requesting that the license be amended, IUSA provided additional information in the following letters to NRC: . Aprl24,2OOO,letter with revision of IUSA's Radioactive Material Profile Record (RMPR) form to clarify the history of the material. . April26,2OOO,letter addressing NRC concerns over placement of processed W.R. Grace materials in tailing cell 3. NRC had a concern that due to the high thorium content, if the material was placed too close to the radon cap, it could change the radon barrier thickness design. To address this concern, IUSA committed to place the material in the deepest areas of the cell with additional processed cover material on top of the W.R. Grace material. . May 5, 2000, and November 16, 2000 letters addressing NRC's concern over available space in tailings cell 3. IUSA conducted a survey at the NRC's request to determine space available and developed a Standard Operating Procedure entitled "Tailings Capacity Evaluation". . December 18, 2000 letter addressing NRC's concern over high thorium content and the need for special handling procedures. IUSA developed a Standard Operating Procedure entitled "High Thorium Content Ore Management. a. Site and Material lnformation A consortium of four companies; Heavy Minerals Company, Crane Company, Vitro Corporation and Pichney Company, began operations at this facility in 1957. The facility received monazite sands and extracted thorium and other rare earth elements. W.R. Grace purchased the facility in 1965 and continued operations until 1983. Tailings from the monazite operation, which contain uranium, were collected in six areas, two filled sedimenUsettling ponds, one partially filled sedimenVsettling pond, and a sand blast area. The ponds have been removed from service and have been under remedial action since 1999. A portion of these materials have been shipped to the Envirocare of Utah waste disposal facility as Low Level Radioactive Waste. The primary radioactive contaminants in the soils are Uranium-238 (U-238), Radium-226 (Ra-226), Radium-228 (Ra-228), Thorium-230 (Th-230), Thorium 232 (Th-232), Potassium-40 (K-40) and their respective decay products. IUSA, based on a review of material, states that the weighted average grade of uranium for the W.R. Grace site is estimated to range from 0.5 to approximately 1 .1 weight percent, or greater, with an overall average grade ol0.74 percent uranium (0.87 percent U.O.). W.R. Grace and IUSA have determined that no listed hazardous wastes are contained within this material. a. Transportation Gonsiderations NRC does not regulate the transportation of this material to the White Mesa Mill. These shipments are regulated under the U.S. Department of Transportation, and associated state regulations. The material will be shipped by rail in intermodal containers and then transferred to truck for the part of the trip to the mill. Material would be loaded onto railcars and transported cross-country to the final rail destination, where they will be transferred to truck for the final leg of the trip to the mill (expected to be either near Grand Junction, Colorado; Cisco, Utah; Green River, Utah; or East Carbon, Utah). lt is expected that W.R. Grace may ship an average of 20-25 trucks per day over the life of the project, for a period of approximately 1 2 to 18 months. The material will be shipped as radioactive low specific activity (LSA) Hazard Class 7 Hazardous Material as defined by Department of Transportation regulations. On an average during 1998 (latest report), 385 trucks per day traveled the stretch of State Road 191 between Monticello, Utah and Blanding, Utah. Based on this information, an average of 100 additional trucks per week (W.R. Grace material transport) represents an increased traffic load of 5 percent for approximately 12 to 18 months. According to the Utah Department of Transportation, total traffic through Moab, Utah on a daily basis is 17,075 of which trucks make up approximately 4o/o or 683. Trucks transporting the inter-modal containers for W.R. Grace material would be approximately 14 on the average, which is approximately 2o/o of the total truck traffic or 0.08% of the total traffic. c. Handlinq and Processinq at the Mill Site The Uranium Material will be added to the mill circuit in a manner similar to conventional natural ores that are processed. The material will either be dumped into the ore receiving hopper and fed to the SAG mill, run through an existing trommel before being pumped to the Pulp Storage, or may be fed directly to Pulp storage. The leaching process may begin in Pulp storage with the addition of sulfuric acid. Tailings produced by the processing of this material will be disposed of on-site in an existing lined tailings impoundment (Cell 3). Depending upon the amount of material processed and the length of time that material is shipped to the site, IUSA may have to build additional tailings impoundments or utilize cell 4a, which is presently not being used. lf this is the case, a license amendment will be necessary revise the reclamation plan and surety amount. As we note later in this report, IUSA must comply with its existing license requirements that limit the amount of tailings in Cell 3, and obtain whatever approvals are necessary for additional impoundments, if they are needed. IUSA will ensure safety of workers and the environment using already established procedures and equipment in the radiation safety program for processing natural ores. The potential for employee exposures from the handling and processing of this material is not expected to be any more significant than that normally encountered with the milling of conventional uranium ores. Mill employees involved in handling the materialwill be provided with personal protective equipment (e.9., coveralls, rubber gloves), including respiratory protection, if necessary. Airborne particulate and breathing zone sampling will be conducted in accordance with the environmental monitoring program established by the licensee. During the review of the submittals, a concern was raised regarding the need for special handling procedures for high thorium content ore material. IUSA addressed this concern, by letter dated December 18, 2000, by the addition of a Standard Operating Procedure entitled "High Thorium Content Ore Management". Staff evaluated this procedure and deemed it adequate to address the original concerns. 2. STAFF TECHNICAL EVALUATION We have reviewed IUSA's request in accordance with NRC staff guidance "Final Position and Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" (60 FR 49296; September 22, 1995 and lnterim Guidance November 30, 2000), the Commission's Memorandum and Order, lnternational Uranium (USA) Corp., CLI-00-01, 52 NRC 9 (Feb. 10, 2000), and 10 CFR Part 40, Appendix A requirements. The staff guidance (referred to hereinafter as the "Alternate Feed Guidance") requires that we make the following determinations in our reviews of licensee requests to process material other than natural uranium ores: (a) Whether the feed material qualifies as "ore" as defined in the NRC guidance; (b) Whether the feed material contains listed hazardous waste; and (c) Whether the feed material is being processed primarily for its source-material content. Note: This part has been eliminated in the interim guidance dated November 30, 2000). ln this evaluation, we discuss how IUSA has addressed each of these criteria in its application to amend the license. We also discuss the other considerations that affect the granting of this amendment. ln the Commission Memorandum and Order of February 10, 2000, several decisions were made which changed some aspects of the NRC staff Alternate Feed Guidance (NRC, 1996). The following summarizes these changes: 1) The staff does not need to consider the quantity of uranium in its review, only that the feed material (ore) is processed primarily for its source content and that radiation safety is considered. 2) The staff does not need to consider financial motives involved in the receipt or processing of alternate feed material, only health and safety issues. The "Certification and Justification" test is not necessary. 3) The presence of listed hazardous waste under the Resource Conservation and Recovery Act (RCRA) is necessary due to. . Possible health and safety issues. . The potential for undesirable, complex NRC-EPA "dual regulation" of the same tailings impoundment. . The potential for jeopardizing the ultimate transfer of the tailings pile to the U.S. government, for perpetual care and maintenance. Therefore, the staff has incorporated these changes into this review. a. Determination of whether the feed material is "ore" For the tailings and wastes from the proposed processing to qualify as 11e.(2) byproduct material, the feed material must qualify as "ore." ln the Alternate Feed Guidance, we define "ore" in part as: "...any other matter from which source material is extracted in a licensed uranium or thorium mill." IUSA has proposed to use alternate feed materialfrom the W.R. Grace site that contains varying concentrations of uranium, a "source material" as defined by the Atomic Energy Act of 1954 (AEA). IUSA, based on a review of material, states that the weighted average grade of uranium for the W.R. Grace site is estimated to range from 0.5 to approximately 1.1 weight percent, or greater, with an overall average grade of A.74 percent uranium (0.87 percent U.Ou). Because IUSA is proposing in this amendment request to primarily extract uranium from this material at their White Mesa uranium mill, we find that the proposed feed material qualifies as "ore" as defined in our guidance. b. Determination of whether the feed material contains hazardous waste Under the Alternate Feed Guidance, we would not approve proposed feed material for processing at a licensed mill that contains a listed hazardous waste as defined by subpart D of RCRA. IUSA has developed a hazardous waste protocol that has been accepted by the Utah Department of Environmental Quality (UDEO) (letter dated December 7, 1999). This protocol was used in IUSA's amendment request for the W.R. Grace alternate feed and found acceptable by the NRC. Within the source investigation of this protocol, the following is one type of information that would be considered satisfactory: "Where the material is or has been generated from a known process under the control of the generator. (a) an affidavit, certiflcate, profile record or similar document from the Generator or Site Manager, to the effect, together with (b) a Material Safety Data Sheet ('MSDS') for the material, limited profile sampling, or a material composition determined by the generator/operator based on a process material balance." IUSA has provided an affidavit from the Operations and Technical Manager for W.R. Grace Corporation at the company's Chattanooga facility, dated April 11, 2000, which states that "the proposed alternate feed materials do not contain any of the listed wastes numerated in the U.S. Code of Federal Regulations, Title 40 261, Subpart D, as amended by the U.S. Federal Register August 6, 1998". Envirocare of Utah has been receiving some of this material for disposal as Low Level Radioactive Waste not containing hazardous waste. ln the IUSA submittal of April 12,2000, is a Radioactive Waste Profile Record prepared by W.R. Grace for Envirocare of Utah which states that there is no listed or characteristic hazardous waste. ln a phone conversation with State of Tennessee Division of Radiological Health, they indicated that they were not aware of any hazardous waste issues with this material. The NRC also contacted the UDEQ about this material and they stated that they did not see a listed hazardous waste issue with this material. IUSA had submitted a copy of this request to the UDEQ. Due to the material being shipped to the White Mesa Mill for processing rather than direct disposal, NRC guidance does not require approvalfrom the Low-LevelWaste Compacts. This material is not classified as Low-Level Waste by the NRC for the purposes of processing at the mill. Based on the above, we find that the material proposed in IUSA's April 12, 2000, license amendment request and supplemental submittals, for processing W.R. Grace Site material at the White Mesa mill will not contain a listed hazardous waste. Because this material is source material, under a license from the State of Tennessee, as a result of processing of thorium and rare earth minerals uranium ores, we also find that it meets the Alternate Feed Guidance provision that it not be a residue from water treatment. c. Determination of whether the feed material is being processed primarilv for its source-materia! content Using our Alternate Feed Guidance, a license must show that potential alternate feed material is being processed primarily for its source-material content. ln the Commission Memorandum and Order of February 10, 2000, the Commission stated. the staff does not need to consider the quantity of uranium in its review, only whether the feed material (ore) is being processed primarily for its source content and that radiation safety is considered. The material has been classified as source material under a source material license by the State of Tennessee Division of Radiological Health. Uranium content averages 0.74 percent by weight. IUSA has provided a signed certification that the uranium-bearing material is being processed primarily for the recovery of uranium and for no other primary purpose. The fact that a licensee plans to process the proposed feed material is further evidence that the licensee is primarily processing the feed material for its source material content, since processing the material would not be necessary to dispose of the material in the impoundment. d. Conclusions concerninq compliance with alternate feed material criteria Based on the information provided by IUSA, the NRC staff finds that the W.R. Grace Site material meets the criteria in the Alternate Feed Guidance, because (1) it qualifies as an "ore" as defined by NRC guidance, (2) the material to be processed will not be or contain listed hazardous wastes, and (3) it is being processed primarily for its source-material content. e. Other Considerations We have also considered other factors related to the granting of this amendment request. We have concluded that the processing of this material will not result in (1) a significant change or increase in the types or amounts of effluents that may be released offsite; (2) a significant increase in individual or cumulative occupational radiation exposure; (3) a significant construction impact; or (4) a significant increase in the potential for or consequences from radiological accidents. We base this conclusion on the following: Yellowcake produced from the processing of this material will not cause the currently-approved yellowcake production limit of 4380 tons per year to be exceeded. Yellowcake is the useful product of the mill and contains elevated concentrations of uranium that are further refined in other plants and processes to produce fuel for nuclear reactors, for example. ln addition, and as a result, radiological doses to members of the public in the vicinity of the mill will not be elevated above levels previously assessed and approved. No modifications to the mill circuit design are necessary to process the W.R. Grace Site material. The licensee will dispose of the tailings produced by the processing of this material on-site in an existing lined tailings impoundment (Cell 3), and if processing of large amounts continues for an extended period of time, in additional NRC approved tailings impoundments. The volume of tailings that would be generated by processing the Uranium Material is comparable to the volume that would be generated from processing an equivalent amount of ore authorized under the license. The design of the existing impoundment, which includes a leak detection system, has been previously approved by NRC, and IUSA is required by its NRC license to conduct regular monitoring of the impoundment liners and of the groundwater around the impoundments to detect leakage if it should occur. lf any additional tailings cells are needed, they will be approved by NRC and will have similar monitoring. By license condition under this amendment, IUSA must first determine if cell space exists prior to receiving W.R. Grace material. lf any additional tailings cells are needed, they will be first approved by NRC under a license amendment and will have similar monitoring. The licensee originally proposed to build a six cell impoundment system which was addressed in the Final Environmental Statement for the license application (NRC, 1979). ln general, the W.R. Grace Site materialwill be similar in composition to the mill tailings currently disposed of in the Cell 3 impoundment, because it will contain metals and other chemicals which are present already in the tailings. Furthermore, IUSA is required to conduct regular monitoring of the impoundments to detect leakage if it should occur. Therefore, any environmental impacts that could be associated with the disposal of the additional quantity of W.R. Grace Site material from processing in the mill will not be larger than impacts previously evaluated and determined to be acceptable for this mill. NRC discussed with IUSA, on April 21,2000, a concern that due to the high thorium content of the material, if the material was placed too close to the radon cap, it could alter the design of the cap. The area of most concern in processing the W.R. Grace material is the high concentration of Thorium-230. Thorium-23O decays to radium-226, which decays lo radon-222, and would increase the radon flux to the barrier if it is not placed in the lower part of the tailings pile, e.9., grater 1) 2) 3) 4) than 3meters (10 feet) from the radon barrier. ln a letter dated April26, 2000, the license indicated that the W.R. Grace materialwould be placed in the deepest areas of Cell 3 and then covered with tailings materialwith less radioactivity. Additionally, the licensee stated "Because the radon cap is required to meet specific performance criteria, adjustments may be necessary, and can be made, during the final design phase to ensure that adverse effects from areas in the Cell are adequately addressed." The NRC staff concludes that if the W.R. Grace material is placed at 3 meters (10 feet) or greater from the radon barrier the licensee should be able to meet the 1000 year requirements for the radon flux in 10 CFR 40, Appendix A, Criteria-6(4), of less then 20 picocuries per meter square per second. 3. RECOMMENDED LICENSE CHANGE: Pursuant to Title 10 of the Code of Federal Regulations, Part 40, Materials License SUA-1358 will be amended by the addition of License Condition No. 10.15 as follows: 10.15 The licensee is authorized to receive and process source materialfrom the W.R. Grace site located in Chattanooga, Tennessee, in accordance with statements, representations, and commitments contained in the amendment request dated April 12, 2OOO, and as amended and supplemented by submittals dated Apr\|24,2000, April 26,2000, May 5, 2000, November 16, 2000, and December 18, 2000. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on the SERP approved standard operating procedure for determination of tailings capacity. Design changes to the cells or the reclamation plan require the licensee to submit an amendment request for NRC review and approval. Prior to the licensee receiving materials from the W.R. Grace site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment: 17] 4. ENVTRONMENTAL IMPACT EVALUATION An environmental report covering the information identified in 10 CFR 51.45 was not required from the licensee. Because IUSA's receipt and processing of the materialwill not result in (1) a significant change or increase in the types or amounts of effluents that may be released offsite; (2) a significant increase in individual or cumulative occupational radiation exposure; (3) a significant construction impact; or (4) a significant increase in the potential for or consequences from radiological accidents, an environmental review was not performed since actions meeting these criteria are categorically excluded under 10 CFR 51.22(c)(11). The issue of cell space availability was addressed under a previous licensing action by NRC letter dated July 21, 2000, and the licensee now has an operation procedure in place for making that determination. Environmental impacts associated with that action will be evaluated at that time. However, the licensee originally proposed to build a six cell impoundment system which was addressed in the Final Environmental Statement for the license application (NRC, 1979). The mill has only utilized four cells, one of which (Cell 4a), is not currently in use. IUSA's current proposal includes expansion into an existing cellfootprint. Truck traffic through Moab, Utah was a concern on another alternate feed request (Heritage Minerals). According to the Utah Department of Transportation, total traffic through Moab, Utah on a daily basis is 17,075 of which trucks make up approximately 4o/o or 683 (UDOT, 2000). Trucks transporting the inter-modal containers for W.R. Grace material would be approximately 14 on the average per day, which is approxim ately 2o/o of the total truck traffic or 0.08% of the total traffic. 5.0 STATE CONSULTATION AND ENVIROCARE OF UTAH COMMENTS The UDEQ was consulted on several occasions. Verbal comments from the UDEQ consisted of issues with cell space and classification of the material. Staff addressed the cell space issue by placing text in the license that requires IUSA to determine that adequate cell space exists prior to this material being received at the mill. Secondly, IUSA has an operating procedure in place for determination of tailings space availability per their November 16, 2000 letter. This issue was addressed in a separate licensing action by NRC letter dated July 21, 2000. With regard to the classification of the material, the NRC and the state of Tennessee classify this material as source material since the material will be processed primarily for its uranium content at the White Mesa mill. Since the materialwill be processed, and will not be directly disposed in the tailings cells, approvalfrom the Low-LevelWaste Compact is not necessary. The State of Tennessee was contacted on several occasions. The Project Manager for the site indicated that he was not aware of any RCRA listed wastes in the material and confirmed that the site was licensed under Source Material License S-3306-E9 by the state under an NRC Agreement State license. No concerns were voiced by Tennessee in shipping this material to the White Mesa mill for uranium processing. Tennessee stated that they need to have this material shipped to a licensed facility such as the White Mesa mill and that this helps to achieve their goal of remediating the site. Envirocare of Utah submitted comments to the NRC by letter dated June 2, 2000. The comments focused on the cell space issue. The staff addressed this issue as discussed above. 6.0 REFERENCES: U.S. Nuclear Regulatory Commission (NRC) "Final Position and Guidance on the Use of Uranium Mill Feed Material Other Than Natural Ores" Federal Register, Volume 60, No. 184, Pages 49296-49297. September 22, 1 995. NRC. Commission Memorandum and Order, lnternational Uranium (USA) Corp., CLI-00-01, 52 NRC 9 (Feb. 10, 2000). NRC "Final Environmental Statement" for the White Mesa Uranium Project, Energy Fuels Nuclear, lnc. May, 1979. Utah Department of Transportation. Phone conversation with Ms. Vicki Hanshew of the Program Development Division with William von Till of NRC regarding traffic statistics on Highway 191 and through Moab, Utah. December 20,2000. . UNITED STATES CLEAR REGULATORY COM wASHtNGTON, D.C. 20555-0001 September 15, 2000 Ms. Michelle Rehmann, Environmental Manager lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 16 TO MATER]ALS LICENSE SUA-I358 .. APPROVAL OF FREEBOARD CALCULATION METHOD FOR CELL 3 AT THE WHITE MESA URANIUM MILL Dear Ms, Rehmann: ln your letter dated October 13,1999, lnternational (IUSA) Uranium Corporation requested an amendment to its Source Material License SUA-1358 to revise the freeboard computation procedure for Cell 3 at the White Mesa Mill. Based on its review, the NRC staff has determined that the proposed revision to the procedure is adequate. Enclosed is Source Material License SUA-1358 and the Technical Evaluation Report. License Condition 10.3 previously read as indicated below: 10.3 Freeboard limits for Cells 1-1, 3, and 44, and tonnage limits for Cell 3, shall be as stated in Section 3.0 to Appendix E of the approved license application. The amended license now reads as follows: 10.3 Freeboard limits for Cells 1-1, 3 and 4A, shall be set periodically in accordance with the procedures set out in Section 3.0 to Appendix E of the approved license application, including the October 13, 1999 revisions made to the January 10, 1990 Drainage Report. The freeboard limit for Cell 3 shall be recalculated annually in accordance with the procedures set in the October 13, 1999 revision to the Drainage Report. o NU o MISSION SepLember 15, 2000 O lf you have any questions regarding this letter or the enclosures, please contact William von Till, the NRC Project Manager for the White Mesa mill, at (301) 415-6251 . He can be reached by e-mailat rwv@nrc.qov. 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 Floom 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). Sincerely, a-r'..-&-8p\ Philip Ting, Chief k Fuel Cycle Licensing Branch Division of FuelCycle Safety and.Safeguards Otfice of Nuclear Material Safety and Safeguards Docket No. 40-8681 SUA-I358, Amendment No. 16 Enclosure 1: Source Material License SUA-1358 Enclosure 2: Technical Evaluation Report cc: W. Sinclair, UT C.Crist, Ute Mountain Ute Tribe EPA Terry Brown, US EPA Region Vlll NRC FORM 374 (7-e4)O ,.r.NU.LEAR REGULAT.R' "orr,".,o* ! pnoe 1 or 10 paoEs MATERIALS LICENSE Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93-438), and Title 10, Code of Federal Regulations, ChapterI, Parts 30,31,32,33,34,35,36,39,40, and 70, and in reliance on statements andrepresentations heretofore made by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and special nuclear material designated below; to use such material for the purpose(s) and at the place(s) designated below; to deliver or transfer such material to persons authorized to receive it in accordance with the regulations of the applicable Part(s). This license shall be deemed to contain the conditions specified in Section 183 of the Atomic Energy Act of 1954, as amended, and is subject to all applicable rules, regulations, and orders of the Nuclear Regulatory Commission now or hereafter in effect and to any conditions specified below. Licensee lnternational Uranium (USA) Corporation [Applicable Amendments: 2] 6425 S. Highway 191 P.O. Box 809 Blanding, Utah 84511 [Applicable Amendments: 2] 3. License Number SUA-1358, Amendment No. 16 4. Expiration Date March 31,2007 5. Docket or Reference No.40-8681 6. Byproduct, Source, and/or Special Nuclear Material Natural Uranium 7. Chemical and/or Physical Form Any 8. Maximum Amount that Licensee May Possess at Any One Time .,,. Uld€r This License : Unlimited SECT1oN9:AdministrativeConditiotrS....:9.1 The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan',County, Utah-. : , : 9.2 All written notices and reports to the NRC required under this ticense, with the exception of incident and event notifications under 10 CFR 202202 and 10 CFR 40.60 requiring telephone notification, shall be addiessed to the Chief, Uranium Recovery and Low-Level Waste Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. 9.3 The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal appliction submitted by letter dated August 23, 1991, as revised by submittals dated January 13, and April 7, 1992, November 22,1994, July 27 , 1995, December 13, and December 31, 1996, and January 30, 1997, which are hereby incorporated by reference, and for the Standby Trust Agreement, dated April 29, 1997, except where superseded by license conditions below. Whenever the word "will" is used in the above referenced documents, it shall denote a requirement. [Applicable Amendment: 2] 9.4 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: Printed on recvcled oaoer 'NRC FORM 374A (7-94) SUA-1358, Amendment No.16 Docket or Reference Number 40-8681 B. (2) (3) c. u.ucLEAR REGULATORY COMMTSSTON i MATERIALS LICENSE SUPPLEMENTARY SHEET (1) Make changes in the facility or process, as presented in the application. (2) Make changes in the procedures presented in the application. (3) Conduct tests or experiments not presented in the application. The licensee shall file an application for an amendment to the license, unless the following conditions are satisfied. (1) D. The licensee shall maintain records of any changes made pursuant to this condition until license termination. These recordg shall include written safety and environmental evatuations, made by the SERP, that irovide the basis for determining changes are in compliance with the requirements referred to in Part B of this condition. The licensee shall furnish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shallfunction in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] 10 pnces .NRC FORM 3744 (7-94)U.U,CLEAR REGULATORY COMMTSSTON MATERIALS LICENSE SUPPLEMENTARY SHEET 9.5 The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as waranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. . Annual updates to the surety amount required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRe at'leaSt'3,i7ronths prior to the anniversary date which is designated as June 4 ef each year. lf the NRC'haS,,not'approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety arrangement for 1 ye'br. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the'costs and the basis for the cost estimates with.a$ustments for inflation, maintenance ,of a minimum 15 percent contingency fee, changes, inpngineering plans, activities performed and-any other conditions affectingestimated costs for site closure. The basis for the cost estimate is th"e NRC approved r-eclambtibn/decommissioning plan or NRC approved revisions to the'plan, The previously provi{gd guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates'l outlines the minimum considerations used by the NRC in the revjew of 'siteiclosure estimates. Reclamation/decommissioning'plans and annllal.updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsuranie Company in fivor 6f the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be continuously maintained in an amount not less than $10,064,794 for the purpose of complying with 10 CFR 40, Appendix A, Criteria g and 10, until a replacement is authorized by the NRC. [Applicable Amendments: 2, 3, 5, 13, 15] Therefore, this office must receive an updated surety in this amount within 90 days of this letter. 9.6 Standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. SOPs for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and instrument calibrations. An up-to-date copy of each written procedure shall be kept in the mill area to which it applies. Allwritten 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 procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. lo rooEs SUA-1358, Amendment No. 16 Docket or Reference Number 40-8681 'NRC FORM 374A (7-94) 9.7 U.UCLEAR REGULAToRY coMMrssroN N4ATERIALS LICENSE SUPPLEMENTARY SHEET Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preservation Act (as amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur untilthe licensee has receiver9,eylf,oriation from the NRC to proceed. The licensee shall avoid by projeit design, where feasible, the archeological sites designated "contributing'lin the report submitted by letter dated July 28,1988. When it is not feasible to avoid a:site designated "contributing" in ih'e report, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preservation Officer (SHPO), dated April 13, 1981.o:;l- : License Nu Docket or Reference Number The licensee shall recover through archeological excavation all "contributing" sites listed in the report which are located in orwithin 100 ieet of bonow areas, stockpileireas, construction'areas, or the perimeter of the reclaimed tailings impoundment. Data recovery 9.8 Archeological contractors shall be approved in writing Uy tne tommission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set forth in 36 CFR Part 66, Appendix,C, and whose qualifications are found acceptable by the SHPO. The licensee is hereby authorized to possess byproduct material in the form of uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. Mill tailings shall not be transferred from the site without specific prior approval of the NRC in the form of a license amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. The licensee is hereby exempted from the requirements of Section 20.1902 (e) of 10 CFR Parl20 for areas within the mill, provided that all entrances to the mill are conspicuously posted in accordance with Section 20J902 (e) and with the words, "Any area within this mill may contain radioactive material." 9.9 .NRC FORM 374A (7-94) 9.10 SECTION 10.1 10.2 10.3 u.lcLEAR REGULAToRY coMMlsstoN MATERIALS LICENSE SUPPLEMENTARY SHEET 9.11 Release 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 or 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. The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22, 1999, and Revision 3.0 submitted on July 7 ,2OOO. Prior to the placement of altemate feed material, the licensee shall determine that adequate cell space is available for that additional material. This determination shall be made by a sERp approved procedure. . , , i,.,, ;;..- ,, ,, 10: Operationa.l Controls, Limits, and Rbstrictions ,"i The mill production'Aie shall not exceed 4380 tons of yeltowcakg per year. All liquid efflue,lrts from mill process buildings, with the exception of sanitary wastes, shall be returned to the mill circuit or discharged to the tailings impoundment. Freeboard limits for Cells 1-t;"3, and 4A, shall be set periodically in accordance with the procedures,set out in Section 3.0 to Appendix E of the approved license application, including the October 13, 1999 revisions.made to the January 10, 1990 Drainage Report. The freeboard limit for Cell 3 shall be recalculated annually iri accordance with the procedures set in the October,13, 1!€9 revision to the Drainage Report. [ApplicableAmendmenti,l6J ,,,,i,] ,l 1O.4 Disposal of material and equipment generated at the mill site shall be conducted as described in the licensee's submittali dated December 12,1994 and May 23, 1995, with the following addition: ,, ,' , )t:A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet thick. Each lift shall be compacted by tracking of heavy equipment, suc!'r. as a Cat D6, at least 4 times prior to placement ol subsequent lifts. 10.5 ln accordance with the licensee's submittal dated May 20, 1993, the licensee is hereby authorized to dispose of byproduct material generated at licensed in situ leach facilities, subject to the following conditions: A. Disposal of waste is limited to 5000 cubic yards from a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Barrels containing waste other than soil or sludges shall be emptied into the disposal area and the barrels crushed. Banels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. SUA-1358, Amendment No. 16 Docket or Reference Number 40-8681 .NRC FORM 374A (7-94) 10.6 10.7 10.8 10.9 10.10 10.11 1412 ,''iL'1ili.and process source material; in accordance with the 1997. " j :i-r: ',li u.slucLEAR REGULATORy COMMtSStoN MATERIALS LICENSE SUPPLEMENTARY SHEET C. Allwaste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for altemate burial locations. D. All disposal activities shall be documented. The documentation shall include descriptions of the waste and the disposal locations, as well as all actions required by this condition. An annual summary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. The licensee is authorized to receive and process source materials from the Allied Signal Corporation's Metropolis, lllinois, facility in aqcordpnce with the amendment request dated June 15, 1993. i:*.r. ;. - i."r',j ui -a The licensee is authoriieOto receive and process source materialfrom Allied Signal, lnc. of Metropolis, lllinois,'in accordance with the amendment req0eSt'dated September 20, 1996, and amended bylletters dated October 30, and November 11, 1996.'1' The licensee is'authorized to receive amendment request dated March 5, t',. ' 1: li 'j' [Applicable Amendments; 1] ,. , The licensee is authorized to'receive and process source materialfrom Cabot Performance Materials'facility near Boyertown, Pennsyivania, in accordan." *itn tne amenOment request dated April 3,,1997, as amended by submittals dated May. 19, and August 6, 1997. [Appticable Amendments: 4] The licensee is authori2ed to receive'and process source material from the Ashland 2 Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonawanda, New York, in accordance with the amendment request dated May 8, 1998, as amended by the submittals dated May 27 , June 3, and June 1 1 , 199p.. . . [Applicable Amendment: 6] ' , ':l i .,- The licensee is authorized to receive and process source material from Cameco Corporation's Blind River and Port Hope facilities, located in Ontario, Canada, in accordance with the amendment request dated June 4, 1998, and by the submittals dated September 14, September 16, September 25, October 7, and October 8, 1998. However, the licensee is not authorized to receive or process from these facilities, the crushed carbon anodes identified in these submittals, either as a separate material or mixed in with material already approved for receipt or processing. The licensee is authorized to receive and process source material from the Ashland 1 and Seaway Area D Formerly Utilized Sites RemedialAction Program (FUSRAP) site, located near Tonowanda, New York, in accordance with statements, representations, and commitments contained in the amendment request dated October 15, 1998, as amended by Amendment No. 16 Docket or Reference Number Drintcrl nn rerwclarl namr 'NRC FORM 374A (7-941 10.14 SECTION 11.1 11.2 SUA-1358, Amendment No. 16 Docket or Reference Number 40-8681 ':. The licensee is huthorized to receive and process source material from the Linde Formerly Utilized Sites,Repedial Action Program (FUSRAP) site, in ac,corqance with statements, representations, and iomfnitments contained in the amendm''ent reqUest dated March 16, 2000, and as amended end supplemented by submittali."dated Apri| 26, 2000, May 15, per a Radioactive Material Profile Record. [Applicable Amendment: 14] 11: Monitoring, Recording, and Bookkeeping Requirements The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any subsequent reviews, investigations, and corrective actions, shall be documented. Unless othenryise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. u.uCLEAR REGU LATORY COMMTSSTON MATERIALS LICENSB SUPPLEMENTARY SHEET [Applicable Amendments: 13, 14] letters dated November23, 1998, November24, 1998, December23, 1998, January 11, 1999, January 27,1999, and February 1, 1999. [Applicable Amendment: 10] 10.13 The licensee is authorized to receive and process source materialfrom the St. Louis Formerly Utilized Sites RemedialAction Program (FUSRAP) site, in accordance with statements, representations, and commitments contained in the amendment request dated March 2, 1999, and as amended and supplemented by submittals dated June 21, 1999; June 29, 1999 (2); and July 8, 1999. Prior to the licensee receiving materials from the St. Louis FUSRAP site, the licensee mqst make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based fI e,SEne approved intemalprogedure. Prior to the licensee receiving materials from the,,Linde'FUSRAP sitb, the licensee must make a delermination that adeguate tailings space is available for the tailings produced from the processin-g of this materiaf.'This determination shall be made based on a SERP approved ihtemal procedure. Design changeslo the cells or the reclamation plan require the licensee to submit an.amendment 1eOue.st1,9r NRC. Fview and approval. Prior to the license" ,"..*,nn mateiials from the Linde FUSRAP,site, the licensee must require that the.generator of the material certify that the materialdoes not contain listed hazardous waste as defined under the Resource eonservation and Recovery Act (RCRA) .NRC FORM 374A (7-e4) 11.3 sl A. u.uCLEAR REGULATORY COMMTSSTON MATERIALS LICENSE SUPPLEMENTARY SHEET B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 1 1.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmentalsamples. .. .. ,,, i ,,,,,;..,, E. The inspections performed semiannually of the critical orifice assembly committed to in the submittal dated March 15, 1986, shall be documented. The critical orifice assembly shall'be calibrated at least every 2 years against a positive displacement Roots mefqr,!o obtain the required calibration curye. ,-,ii . [Applicable Amendment: The licensee shall sample monitoring welF WMMW:S; -1 1,'-12, -14:;' -15, and -17, on a quarterly basis. Samples shallbe,analyied forchloride, potassium;'nickel, and uranium, and the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. ln addition, the licensee shall implement a monitoring ptogram of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to the extent reasonably possible, and record the volume of fluid recovered. Any fluid pumped from an LDS shall be retumed to a disposal cell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing the recorded volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. C. Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license condition. The licensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated 10 pecEs SUA-1358, Amendment No. 16 Docket or Reference Number 40-8681 .NRC FORM 374A (7-94) 11.4 11.5 D. E. u.uCLEAR REGULATORY COMMTSSTON MMERIALS LICENSE SUPPLEMENTARY SHEET constituent levels or a pH less than 5.0 is observed, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an annual basis, that fluid from the disposal cell has not entered the LDS by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. lf the flow rate is equal to.or greater than one gallon per minute, the licensee shall: .. i -l ' .,:. .'1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the.!gak and any consequent potential impacts;.r.'.. .2. Continue to measure and record LDS "depth to fluidl ,"".1i.rents weekly; and 3. Notify NRC by telephone'within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notitying NRC by telephone, in accordance with License Condition 9.2i |he'written report shall include a description of the mitigative action(s) taken an! a discussion of the mitigative action results. lf the calculated flow rate is less than one gallon per minute, the licensee shall continue with weekly measurements of "depth to fluid'inthe LDS standpipes. '' ... a All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. [Applicable Amendment 8] Annually, the licensee shall collect, during mill operations, a set of air samples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equal to 40 liters per minute), in routinely or frequently occupied areas of the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in mill feed material or at least annually, the licensee shall analyze the mill feed or production product for U-nat, Th-230, Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the "Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shall be calibrated at least quarterly and air sampling equipment checks shall be documented. 1o ,oc.s SUA-1358, Amendment No. 16 Docket or Reference Number 40-8681 TECHNICAL EVALUATION REPORT AMENDMENT 16 TO SOURCE MATERIAL LICENSE SUA.1358 TO REVISE FREEBOARD CALCULATION PROCEDURE AT THE WHITE MESA MILL DATE: August 13,2000 DOCKET NO.: 40-8681 SOURCE MATERIAL LICENSE NO.: SUA-1358 LICENSEE: lnternational Uranium (IUSA) Corporation PROJECT MANAGER: William von Till TECHNICAL REVIEWER: Jill S. Caverly SUMMARY AND CONCLUSIONS: lnternational Uranium (IUSA) Corporation, by letter dated October 13,1999, requested an amendment to its Source Material License to revise the freeboard computation procedure for Cell 3 at the White Mesa Mill. Based on its review, the NRC staff has determined that theproposed revision to the procedure is adequate. The new procedure does not create additional risk to the public health and safety or to the environment. Therefore, the staff recommends Sources Material License SUA-1358 be amended to include the revised freeboard calculation. DESCRIPTION OF LICENSEES REQUEST: IUSA, by letter dated October 13,1999, requested an amendment to its source material license to revise the freeboard limit calculation procedure and to adjust the freeboard amount at the White Mesa Uranium Mill located in Blanding, Utah. The request describes the current method of calculation and provides an explanation and example of the new procedure. The licensee states that the revision to the procedure includes the next 12 months of mill throughput, plus a factor of safety, in lieu of the existing assumption of maximum tonnage for the following 12 months. The licensee further describes the high degree of conservativism that is included in the revised procedure. TECHNICAL EVALUATION: The proposed method for determining the freeboard for Cell 3 uses several assumptions to determine a value of freeboard. A detailed discussion of the revised procedure and the assumptions upon which it is based, are presented below. The staff, based on its review of IUSA's request, concludes that the amendment request is sufficiently conservative. Accordingly, IUSA's amendment request is approved. Endosure The original design of the tailings impoundment at the White Mesa Mill includes four cells working in conjunction to contain the water volume produced by the Probable Maximum Precipitation (PMP), as well as the tailings discharge from the mill. The dual function of the cells subsequently effects the available storage volume for the Probable Maximum Flood (PMF). Presently, not all cells have extra capacity to accommodate the PMF. Cell 2 is essentially full and has no available storage, due to the placement of tailings. Cell 1-l is assumed to be operated at maximum capacity and has no available storage capacity for the PMF. Therefore, Cell 3 is required to store the entire volume of runoff resulting from the PMP. License Condition 10.3 requires that when the volume of tailings placed after Octob er 23, 1989 reaches 600,000 tons, Cell 3 freeboard will be re-evaluated. The procedure for evaluating the freeboard limits was presented in a January 1990 submittal and was approved by the NRC staff. This submittal presented the basis and calculation for the PMP storm event and the wind wave run-up factor used to calculate the freeboard limit. The proposed license change will modify the current procedure, except for the PMF volume and the wave run-up height, since the values were previously approved. The previous procedure for determining the freeboard for Cell 3 is based on the assumption that the volume of additional tailings in the cell is directly proportional to the surface area reduction. The basis for this assumption was determined during a period of time in 1988 when a known quantity of dry tailings was added to the cell. The surface area reduction after the addition of the tailings was used to determine the tons of tailings required to reduce pool size by one acre, or 39,146 dry tons per acre. Using this relationship and the maximum amount of tailings that could be discharged in a one-year time period, with the mill running al93o/" availability, is 678,900 dry tons. The maximum tonnage divided by the number of tons required to reduce pool size by one acre, yields the maximum expected pool area reduction, or 17.3 acres. ln simple terms, if the mill is working to capacity, it can be anticipated that the surface area of the pool will be reduced by 17.3 acres per year. Once determined, the expected pool surface area can then be divided by the required volume for PMF storage, or 123.4 acre-ft, yielding the minimum freeboard, or height, required for flood storage. ln addition to the flood freeboard, the wave run-up is included for the final freeboard. The totalfreeboard requirement is the sum of the PMF freeboard requirement and the wave run-up value. The final available storage elevation will be the top of embankment elevation minus the total required freeboard. This amendment request proposes that the initial calculation to determine the surface area reduction (i.e. 17.3 acres per year) due to the addition of the tailings be re-calculated so that the freeboard is dependent on a more realistic value of the volume reduction from the tailings for the upcoming year. ln other words, the revised procedure presented in the amendment request, revises the estimate of the mill throughput using an estimate based on the current production of the mill and a factor of safety of 50 percent in lieu of the existing assumption of maximum tonnage for the upcoming year. Due to the conservative nature of the revised procedure, the staff has no objections to the revision of freeboard based on a more realistic estimate of mill production. The amendment request states that the procedure will be used yearly to recalculate the Cell 3 freeboard unless -3- the actual mill production approaches 2/3 of the Maximum Annual Mill Production. After mill production reaches this value, the procedure for determining freeboard will be re-evaluated. RECOMMENDED LICENSE CHANGE: License Condition 10.3 previously read as follows: 10.3 Freeboard limits for Cells 1-1, 3, and 4A, and tonnage limits for Cell 3, shall be as stated in Section 3.0 to Appendix E of the approved license application. With this approval, License Condition 10.3 now reads as follows: 10.3 Freeboard limits for Cells 1-1, 3 and 44, shall be set periodically in accordance with the procedures set out in Section 3.0 to Appendix E of the approved license application, including the October 13, 1 999 revisions made to the January 10, 1990 Drainage Report. The freeboard limit for Cell 3 shall be recalculated annually in accordance with the procedures set in the October 13, 1999 revision to the Drainage Report. ENVIRONM ENTAL IM PACT EVALUATION: An environmental assessment for this action is not required, since this action is categorically excluded under 10 CFR 51.22(c)(3)(i), and an environmental report from the licensee is not required under 10 CFR 51.60(bX2). REFERENGES: lnternational (IUSA) Uranium Corporation, 1999: Letter from Michelle Rehmann (IUSA) to John Surmeier (NRC), dated October 13, 1999, Request for Amendment of SUA-1358; Revised Freeboard Limit Calculation Procedure and Adjustment of Freeboard Amount - White Mesa Uranium Mill. UNITED STATES CLEAR REGULATORY COMM WASHTNGTON, D.C. 20555-0001 July 21, 2000 Ms. Michelle Rehmann, Environmental Manager lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 15 TO MATERIALS LICENSE SUA-1358 -- APPROVAL OF REVISION TO RECLAMATION PLAN AT THE WH]TE MESA URANIUM MILL Dear Ms. Rehmann: ln IUSA's letter dated May 5, 2OOO, IUSA requested that the NRC approve a modification to th6 reclamation plan in order to allow for additional cell space. Subsequently, IUSA and NRC staff helcl several telephone conference calls to discuss the need for IUSA to submit additional detail. IUSA provided this detail by letter dated July 7,2000. Based on IUSA's Tailings Capacity Study conducted in May 2000, IUSA identified a 200,000 cubic yards (CY) shortfall in existing storage capacity in the Tailings Management System, assuming that reclamation materials and processed materials were disposed in Cell 2 or Cell 3. IUSA has proposed to handle additional volume by the addition of space within the Cell 1-l impoundment area. This alternative would allow for the placement of approximately 280,000 CY of material from the mill site cleanup along the north slope of the Cell 2 dike, within a portion of the current Cell 1 -1. Cell 1 -l Tailings Area will be lined with a minimum of 12 inches and up to 18 inches of compacted clay. IUSA has determined that the placement of these materials in the Cell 1-l Tailings Area will effectively create an extension of the Cell2 disposal area. There would be no greater radiological content, and thus the radon cap design would remain the same. With this revision to the reclamation plan, IUSA has estimated the surety amount at $10,064,794, which is an increase from the current surety amount of $9,682,467. The staff has determined that your proposal is acceptable, and has amended your license accordingly. We have enclosed the amended license (enclosure 1) and our Technical Evaluation Report (enclosure 2) that provides our bases for granting the amendment. The staff evaluation used the "Standard Review Plan for the Reclamation for Mitl Tailings Sites Under Title ll of the Uranium Mill Tailings Radiation ControlAct" (NUREG-1620, NRC June 2000) and requirements under 10 CFR Part 40 to review your proposal. Further, the staff determined that this expansion meets the requirements for a categorical exclusion under 10 CFR 51 .22 (cX1 1) and, therefore, no environmental assessment has been prepared. ln addition, the staff has approved your proposed revision to the financial surety arrangement, increasing the current amount to $10,064,794. Therefore, we have revised License Condition 9.11 as follows: 9.1 1 : The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22,1999, and Revision 3.0 submitted on July 7,2000, and July 17,2O0O. Prior to the placement of alternate feed material, the licensee shall determine that adequate cell space is available for that additional material. This determination shall be made by a SERP approved procedure. o NU o ISSION [Applicable Amendments 13, 15] July 21, 2000 2 We have revised License Condition 9.5 as follows: 9.5 The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at least 3 months prior to the anniversary date which is designated as June 4 of each year. lf the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety arrangement for 1 year. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in engineering plans, activities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC approved reclamation/decommissioning plan or NRC approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in favor of the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be continuously maintained in an amount not less than $10,064,794 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by the NRc. [Applicable Amendments: 2, 3, 5, 13, 15] Therefore, this office must receive an updated surety in this amount within 90 days of this letter. July 21, 2000 3 lf you have any questions regarding this letter or the enclosures, please contact William von Ti[], the NRC Project Manager for the White Mesa mill, at (301) 415-6251 . He can be reached by e-mail to RWV@nrc.gov. Sincerely, -"-> iq^ffi-,"),",{ Fuel Cycle Licensing Branch Division of FuelCycle SafetY and Safeguards Office of Nuclear Material SafetY and Safeguards Docket No. 40-8681 SUA-1358, Amendment No. 15 Enclosure 1: Source Material License SUA-1358 Enclosure 2: Technical Evaluation Report cc: W. Sinclair, UT C.Crist, Ute Mountain Ute Tribe EPA Terry Brown, US EPA Region Vlll PAGElOF9PAGESNRC FORM 374 (7-94\U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE Pursuant to the Atomic Energy Act of 195,1. as amended, the Fnergy Reorganization Act of 197;l (Public Law 93-438). and Title 10, Code of Federal Regulations, Chapter I, Parts 30, 31, 32, 33,34. 35. 36. 39.40, and 70, ancl in reliance on statements and representations heretofore made by the licensee, a Iicense is hereby issued authorizing the licensee to receive, accluire. possess. and transf'er byproduct. source. and special nuclear material designated below; to use such material for the purpose(s) and at the place(s) designated below: to deliver or transfer such material to persons authorized to receive it in accordance with the regulations ofthe applicable Part(s). This license shall be deemed to contain the conditions specifiedinSection lS3oftheAtonricEnergyActofl954,asamended.andissubjecttoallapplicablerules.regulations,andordersofthe Nuclear Regulatory Commission now or hereatier in etfect and to any conditions specified below. SUA-1358, Amendment No. 15 4. Expiration Date March 31,2OOT Natural Uranium Any 8. Maximum Amount that Licensee May Possess at Any One Time Under This License Unlimited SECTIoN e: Administrative Conditions 9.1 The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan County, Utah. 9.2 All written notices and reports to the NRC required under this license, with the exception of incident and event notifications under 10 CFR 2O.22O2 and 10 CFR 40.60 requiring telephone notification, shall be addressed to the Chief, Uranium Recovery and Low-Level Waste Branch, Division of Waste Management, Otfice of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. 9.3 The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated August 23, 1991, as revised by submittals dated January 13, and April 7, 1992, November 22,1994, July 27,1995, December 13, and December 31, 1996, and January 30, 1997, which are hereby incorporated by reference, and for the Standby Trust Agreement, dated April 29, 1997, except where superseded by license conditions below. Whenever the word "will" is used in the above referenced documents, it shall denote a requirement. [Applicable Amendment: 2] 9.4 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: Licensee lntemational Uranium (USA) Corporation [Applicable Amendments: 2] 6425 S. Highway 191 P.O. Box 809 Blanding, Utah 84511 [Applicable Amendments: 2] 3. License Number 5. Docket or Reference No.40-8681 6. Byproduct, Source, and/or Special Nuclear Material 7. Chemical and/or Physical Form NRC FORM 374A (7-94) REGULATORY COMMISSION License Number SUA-1358. Amendment No. 1 Docket or Reference NumberMATERIALS LICENSE SUPPLEMENTARY SHEET (1) Make changes in the facility or process, as presented in the application. (2) Make changes in the procedures presented in the application. (3) Conduct tests or experiments not presented in the application. B. The licensee shallfile an application for an amendment to the license, unless the following conditions are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in thie licens* orimpair the licensee's ability to meet all applicable NRC regrddions. (2) There is no, Oegradation in the essential safety or environmental commitments in the license app-lication, or provided by the apiroved reclamation plan. (3) The change, test, or experiment is consistent with the conclusions of actions analyzed and selected in the EA dated February 1997. C. The licensee's determlnations concerning Part B of this condition, shall be made by a "Safety and EnvironmentalReview Panel (SERP).' The SERP shall consist of a minimum of three individuals. One member,rof the SERP shall have expertise in maRagement and shall be responsible for managerial and financial approval changes; one member shall have expertise in opemtion$ and/or construction and shall have responsibility for implementing any operational changes; and, one member shall be the corporate radiation safaty,officer (CRSO) or equivalent, with the responsibility of assuring changes conform to radiatbn safety and environmental requirements. Additional members may be included in the SERP as appropriate, to address technical aspects such as health physics, groundwater hydrology, sudace-water hydrology, specific earth sciences, and other technical disciplines. Temporary members or permanent members, other than the three above-specified individuals, may be consultants. D. 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 SERP, that provide the basis for determining changes are in compliance with the requirements referred to in Part B of this condition. The licensee shal! fumish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shal! annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shall function in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] NRC FORM 374A (7-94) U.S. I{T,EAR REGULATORY COMMISSION PAGE 3 OF 9 PAGES 15 License Number SUA-1358, Amendment No. Docket or Refurcnce NumberMATERIALS LICENSE SUPPLEMENTARY SHEET 9.5 The licensee shall maintain an NRC-approved financial surety arangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamatiorVdecommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, r$Srqgq.by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at basi3 rnonths prior to the anniversary date which is designated as June 4 of eaefr year. tf the NRC has,not approved a proposed revision to the surety coverage 3O,days prior to the expiration date of the:existing surety anangement, the licensee shall extend the existing surety arangement for 1 year. Along with each proposed revision or annuat,update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in-engineering plans, activities perf.ormed and any other conditions affecting'estimated costs for site closure. The basis for the cost estimatE is the NRC approved redamation/decommissioning plan or NRC approved revisions to the plan. The prcviously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annualupdates should follow this outline. The cunently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in favor of the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be continuously maintained in an amount not less than $10,064,794 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by the NRC. [Applicable Amendments: 2, 3, 5, 13, 151 Therefore, this office must receive an updated surety in this amount within 90 days of this letter. 9.6 Standard operating procedures shatt be established and followed for all operationat process activities involving radioactive materials that are handled, processed, or stored. SOPs for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and instrument calibrations. An up-to-date copy of each written procedure shall be kept in the mitl area to which it applies. Allwritten procedures for both operational and non-operational activities shall be reviewed and approved in writing by the radiation safety otficer (RSO) before implementation and whenever a change in procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. NRC FORM 374A (7-94) REGULATORY COMMISSlON License Number Docket or Reference NumberMATERIALS LICENSE SUPPLEMENTARY SHEET 9.7 Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. Al! disturbances associated with the proposed development will be completed in compliance with the National Historic Preservation Act (as amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shatl cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur untilthe licensee has received authorization from the NRC to proceed. The licensee shall avoid by,proiect design, wherc hasible, the archeologicat sites designated "contributing" in the report submitted by letter dated July 28, 1988. When it is not feasible to avoid a site designated "contributing" in the report, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preservation Officer (SHPO), dated April 13, 1981. The licensre,,shatt recover through archeological excavation alt "contributing" sites listed in the report which are located in or within 100 feet of bonow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at,each site meeting these criteria shall be completed prior to the start of any project related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shall conduct such testing as is required to enable the Commission to determine if those sites designated as oUndetermined* in the report and located within 100 feet of present or known future mnstruction areas are of such significance to warrant their redesignation as "contributing." ln all cases, such testing shall be completed before any aspect of the undertaking affects a site. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set forth in 36 CFR Part 66, Appendix C, and whose quatifications are found acceptable by the SHPO. The licensee is hereby authorized to possess byproduct material in the form of uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. Mill tailings shall not be transfened from the site without specific prior approval of the NRC in the form of a license amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. The licensee is hereby exempted from the requirements of Section 20.1902 (e) of 10 CFR Part 20 for areas within the mil!, provided that all entrances to the mill are conspicuously posted in accordance with Section 20.1902 (e) and with the words, "Any area within this mill may contain radioactive material." 9.8 9.9 NRC FORM 374A (7-941 9.10 9.11 SECTION 10.1 10.2 10.3 10.4 10.5 MATERIALS LICENSE SUPPLEMENTARY SHEET U.S.-LEAR REGULATORY COMMISSION PAGE5OFqPAGES 1358. Amendment No. 15 License Number Docket or Reference Number Release of equipnnent or packages from the restricted area shall be in accordance with "Guidelines for Decontamination of Facilities and Equipment Prior to Release for Unrestricted Use or Termination of Licenses for Byproduct, Source, or Special Nuclear Material," dated May 1987, or suitable altemative procedures approved by the NRC prior to any such release. The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22, 1999, and Revision 3.0 submitted on July 7, 2O0O and July 17,2000. Prior to the placement of altemate feed material, the licensee shall determine that adequate ce!! space is available for that additional material. This determination shall be made by ? SRP apprgved procedure. [Applicabte Amendments 1.3,'1'51 10: Operational. Controls, Limits, and Restrictions The mill production rate shal! not exceed 4380 tons of yellowcake per year. All liquid effluents from mill process buildings, with the exception of sanitary wastes, shall be returned to the mill circuit or discharged to the tailings impoundment. Freeboard limits for Cells 1-1, 3, and 4A, and tortnage limits for Cell 3, shall be as stated in Section 3.0 to Appendix E of the approved license application. Disposal of material and equipment generated at the mill site shall be con(ucted as described in the licensee's submittali dated December 12,1994 and May 23, 1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet thick. Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. ln accordance with the licensee's submittal dated May 20, 1993, the licensee is hereby authorized to dispose of byproduct material generated at licensed in situ leach facilities, subject to the following conditions: A. Disposal of waste is limited to 5000 cubic yards from a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Banels containing waste other than soil or sludges shall be emptied into the disposal area and the barels crushed. Barrels containing soil or sludges shall be verifled to be full prior to disposa!. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for altemate burial locations. NRC FORM 374A (7-94) u.s.REGULATORY COMMISSION OF License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Refe?enc€ Number 106 this condition. An annual summary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. The licensee is authorized to receive and prooess source materials from the Allied Signal Corporation's Metropolis, lllinois, facility in accordance with the amendment request dated June 15, 1993. The licensee is authorized to receive and process source materialfrom Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated Oct1ber30, a1l November 11, 1996. The licensee is authorized b.rg6ei9diand procds gource material, in accordance with the amendment request &ted Ntarch 5, 1997. ri [Applicable Amendments: 1]'--' 'J l The licensee is authorized to receive and process source materiatfrom Cabot Performance Materials'facitip near Boyertown, Pennsylvania, in accordance with the amendment request dated April S, 1997, as amended by submittals dated illay 19, and August 6, 1997. [Applicable Amendments: 4l ,' The licensee is authorized to receive and process source materialfrom the Ashland 2 Formerly Utilized Sites Remedial Action Prograrn (FUSRAP) site, located near Tonawanda, New York, in accordance with the amendment rcquest dated May 8, 1998, as amended by the submittals dated May 27 , June 3, and June 1 1 , 1998. [Applicable Amendment: 6] The ticensee is authorized to receive and process source material from Cameco Corporation's Blind River and Port Hope facilities, Iocated in Ontario, Canada, in accordance with the amendment request dated June 4, 1998, and by the submittals dated September 14, September 16, September 25, October 7, andOctober 8, 1998. However, the licensee is not authorized to receive or process from these facilities, the crushed carbon anodes identified in these submittals, either as a separate material or mixed in with material already approved for receipt or processing. The licensee is authorized to receive and process source material from the Ashland 1 and Seaway Area D Formerly Utilized Sites RemedialAction Program (FUSRAP) site, located near Tonowanda, New York, in accordance with statements, representations, and commitments contained in the amendment request dated October 15, 1998, as amended by letters dated November23, 1998, November24, 1998, December23, 1998, January 11, 1999, January 27, 1999, and February 1, 1999. [Applicable Amendment 10] The licensee is authorized to receive and process source materialfrom the St. Louis Formerly Utilized Sites RemedialAction Program (FUSRAP) site, in accordance with 14.7 10.8 10.9 10.10 10.11 10 12 10.13 NRC FORM 374A (7-94) SECTION 11.1 11.2 REGULATORY COMMISSION License Number Docket or Reference NumberMATERIALS LICENSE SUPPLEMENTARY SHEET statements, representations, and commitments contained in the amendment request dated March 2, 1999, and as amended and supplemented by submittals dated June 21, 1999; June 29, 1999 (2); and July 8, 1999. Prior to the licensee receiving materials from the St. Louis FUSMP site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processing of this material. This determination shall be made based on a SERP approved intemalprocedure. [Applicable Amendments: 13, 14] 10.14 The licensee is authorized to reoeive and process source materialfrom the Linde Formerly Utilized Sites Remedia! Action Prog*am: representations, and commitnontgthntt Utilized Sites RemedialAction Prognam {EI}SRAP) site, in accordance with statements, representations, and commitnontgeontaihed in$e amendment request dated March 16, 2000, and as amended and,supplemented by subrnittals dated April26, 2000, May 15, 2000, June 16, 2000;June 19, 2000, June 23, 2000. ,.t Prior to the ticen$ee'receiving materials from the Linde FUSRAF site, the licensee must make a determination that adequate tailings space is available for the tailings produced from the processingof this material. This determination shall be made based on a SERP approved intemal procedure. Design changes to the,cefis;or the reclamation plan require the licensee to submit an amendment request for l.lRC review and approval. Prior to the licensee receiving materials from the Unde FUSRAP site, the licensee must require that the generator of the material certify that the material does not contain listed hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA) per a Radioactive Material Profile Record. [Applicable Amendment 14] 11 Monitoring, Recording, and Bookkeeping Requirements The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any subsequent reviews, investigations, and conective actions, shall be documented. Unless otherwise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. The licensee shall implement the etfluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shal! include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. NRC FORM 3744 (7-94) 113 REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Referenee C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 1 1.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmental samples. E. The inspections performed semiannually of the critical orifice assembly committed to in the submittaldated March 15, 1986, shall be documented. The criticalorifice assembly shall be calibrated at least every 2 years against a positive displacement Roots meter to obtain th_?1lelll{reC ca$brdion curye. [Applicable Amendment:'51 .,I The ticensee shall'implement a groundwater detection monitoripg program to ensure compliance to 1O CFR Part 40, Appendix A. The detection mo-nltoring program shall be in accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by'letter dated October 5, 1994, and the following: A. The licensee shall sample monitoring wells WM[vfuV.5; -71, -12, -14, -15, and -17, on a quarterly basis. Samples shall be analyzed for cfilonide, potassiurn, nickel, and uranium, and the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. ln addition, the Iiensee shall implement a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the .depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to the extent reasonably possible, and record the volume of fluid recovered. Any fluid pumped from an LDS shall be retumed to a disposalcell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing the recorded volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. C. Upon the initia! pumping of fluid from an LDS, the Iicensee shall cotlect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license condition. The licensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in. paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels or a pH less than 5.0 is obseryed, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an annual basis, that fluid from the disposal cell has not entered the LDS NRC FORM 374A (7-94) U.S. IJLEAR REGULATORY COMM]SS]ON PAGEctOFrrPAGES License Number Docket or ReferenceMATERIALS LICENSE SUPPLEMENTARY SHEET by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. D. Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. lf the flow rate is equa! to or greater than one gallon per minute, the licensee sha!!: 1. Evatuate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; Continue to measureiand r-etiord LD$,fd€pth to fluid' measurements weekly; and 3. Notify NRC by tenpnone within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notifying NRC by telephone, in accor&nce with License Condition 9.2. The written refiort shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results. lf the catcutated flow rate is tess than one gatton per minute, the liconsee shalt continue with weekly measurements of 'depth to fluid' in the LDS standpipes. E. All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. [Applicable Amendment 8] 11.4 Annually, the licensee shall collecf, during mill operations, a set of air samples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equal to 40 liters per minute), in routinely or frequently ocanpied areas of the miff. These samples shall be analyzed for gross alpha. In addition, with each change in milfrfeed material or at least annually, the licensee shall analyze the mill feed or production producl for U-nat, Th-230, Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] 11.5 Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the "Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shall be calibrated at least quarterly and air sampling equipment checks shall be documented. 11.6 The licensee shall perform an annual ALARA audit of the radiation safety program in accordance with Regulatory Guide 8.31. SECTTON 12: Reporting Requirements 12.1 DELETED by Amendment 13. 2. NRC FORM 374A (7-94) REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Refercnce Number 122 [Applicable Amendment 13] The Iicensee shal! submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations that includes a deailed Quality Assurance Plan. The plan will be in accordance with Regulatory Guide 4.15, "Quality Assurance for Radiological Monitoring Programs,'and NUREG-1575, "Multi-Agency Radiation Survey and Site lnvestigation Manual (MARSSIM), or equivalent most current guidance. [Applicable Amendment 13] FOR THE NUCLEAR REGUI.ATORY COMMISSION /t//_f h- r\ - Philip Tirig, Chief ' Fuel Cycle Licensing Branch Division of Fuel Cycle Safety and Safeguards Office of Nudecr Material Safety and Safeguards DOCKET NO.: LICENSE NO.: LICENSEE: FACILITY: DATE: TECHNICAL EVALUATION REPORT REOUEST TO RECEIVE AND PROCESS HERITAGE MINERALS SITE MATERIAL 040-8681 suA-1358 lnternational Uranium (IUSA) Corporation White Mesa Uranium Mill July 13, 2000 PROJECT MANAGER: William von Till TECHNICAL REVIEWERS: Ted Johnson - Surface Water Hydrology and Erosion Protection John Lusher - Health PhYsicist Dan Rom - Geotechnical and SuretY SUMMARY AND CONCLUSIONS: We have reviewed lnternational Uranium Corporation's (IUSA's) Reclamation Plan Revision 3.0 (Cell expansion) dated May 5, 2OOO, with supplements dated July 7, 2000, and July 17, 2OOO. This revision was reviewed using the "standard Review Plan for the Reclamation for Mill Tailings Sites Under Title ll of the Uranium Mill Tailings Radiation Control Act" (NUBEG-1620, NRC June 2OOO) and requirements under 1O CFR Part 40. We find the proposal to be acceptable and i"rave amended the license to tie in these revisions to the Reclamation Plan. The "ur.ty amount increased with this revision and the licensee shall update the amount accordingly to cover these additional costs. 1. DESCRIPTION OF LICENSEE'S PROPOSAL By its submittal dated May 5, 2ooo, IUSA requested that the NRC approve a modification to the reclamation plan in orderio allow for additional cell space. Subsequently, IUSA and NRC staff held several telephone conference calls to discuss the issue in which IUSA agreed to submit additional detail. IUSA provided this detail by letter dated July 7, 2000, and July 17,2000. Based on IUSA's Tailings Capacity Study conducted in May 2000, a shortfall in existing storage capacity was identified in the Tailings Management System of approximately 200,000 cubic y"iOr 1Cy;, assuming that reclamaiion materials and processed materials were disposed in Cell 2 or Cell 3. IUSA has proposed to handle additional volume by the addition of space within the Cell 1-l impoundment area. This alternative would allow for the placement of approximately 2BO,0OO CY of materialfrom the mill site cleanup along the north slope of the Cell2 dike, within a portion of the current Cell 1-1. Cell 1-l Tailings Area will be lined with a minimum of 12 inches and up to 18 inches of compacted clay. IUSA has determined that the placement of these materials in the Cell 1-l Tailings Area will effectively create an extension of the Cell 2 disposal area with no greater radiological content with the radon cap design remaining the same. 2.O BACKGROUND IUSA, by letter dated March 16, 2OOO, requested that the NRC amend its license to allow it to receive and process up to l OO,OOO cubic yards of alternate feed/ore material from the Linde Formerly Utiiized Sites Remedial Action Program (FUSRAP) site in Tonawanda, New York. As part of tiris review, the NRC staff held discussions with IUSA regarding potential cell storage space shortages. ln IUSA's letter dated April 12,2O0O, which requested that the NRC allow it to receive and process alternate feed/ore material from the W.R. Grace site in Chattanooga, Tennessee, IUSA stated that there was not adequate storage space available for these additional alternate feed materials (W.R. Grace and Linde) and the previously approved St. Louis Alternate Feed/ore material (140,000 CY). ln IUSA's letter dated May 5, 2000 (letter addressing NRC's comments), IUSA stated that a tailings cell space shortfall of 230,000 tons existed. To address this concern, IUSA proposed to expand Cell 2 into the area of Cell 1-1. Staff and IUSA held several phone calls and the NRC stated that additional detailwas necessary to conduct a full review. IUSA then submitted a revision to the Reclamation Plan by letter dated July 7,2000. 3.0 STAFF TECHNICAL EVALUATION The submittal was reviewed using the "standard Review Plan for the Reclamation for Mill Tailings Sites Under Title ll of the Uranium Mill Tailings Radiation Control Act" (NUREG-1620, NRC June 2000) and requirements under 10 CFR Part 40. Health Phvsics evaluation: The licensee stated that the cell 2 design for the radon-222 barrier and frost cover will be extended into cell 1-1, and that the material placed in the tailings cell 2 extension into cell 1-l will consist of windblown tailings, cleanup material, and mill debris that contains low level activity. The staff concludes that the radon-222 barrier design is sufficient to accomodate disposal of these additional materials. Surface Water Hvdrology and Erosion Protection Staff considers the design change proposed by IUC to be a minor revision to their existing reclamation plan. IUC intends to place a relatively small amount of additional tailings upstream of the existing tailings cells and to slope the cover away from the existing tailings. This design results in very short top slopes and side slopes, which is beneficial to stability. IUC intends to place rock of similar size and gradation on the new portion and to meet the same criteria that was already approved by the staff for much longer slope lengths. Staff review of the proposalfinds that the revision is acceptable. IUC's design provides a high level of conservatism because the sizes of erosion protection are identical to the original design which had much longer slope lengths. ln addition, the change insignificantly reduces the storige area upstream of the existing tailings cells and will have little or no effect on flood calculations that staff previously approved. Geotechnical Enqineeri ng/Construction : Staff considers the design change proposed by IUC to be a minor revision to the existing reclamation plan. IUC intends to place a relatively small amount of additional tailings upstream of the existing tailings cells and to slope the cover away from the existing tailings. The revised design does not substantially affect sideslopes or thicknesses of material, thus design of the embankments is acceptable. IUC must build a clay liner; however, substantial clay borrow of satisfactory quality is available near the site. The surety has been revised to account for the modif ications proposed. Staff review of the proposal indicates that the revision is acceptable. IUC's design provides a satisfactory level of conservatism because the slopes are relatively flat and the embankments are low. As discussed on July 12, 2000, a minimum clay liner thickness of twelve inches should be satisfactory. 4.0 RECOMMENDED LTCENSE CHANGE: Pursuant to Title 10 of the Code of Federal Regulations, Part 40, Materials License SUA-I358 will be amended by the modification of License Condition No. 9.5 and License Condition No. 9.11 as follows: 9.5 The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at least 3 months prior to the anniversary date which is designated as June 4 of each year. lf the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety arrangement for 1 year. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in engineering plans, activities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC approved reclamation/decommissioning plan or NRC approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. 9.11: The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in favor of the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be continuously maintained in an amount not less than $10,064,794 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by the NRC. [Applicable Amendments: 2, 3, 5, 13, 15] The final reclamation shall be in accordance with the May 1999, Reclamation Plan Revision 2.0, Attachment A submitted on June 22,1999, and Revision 3.0 submitted on July 7,2OOO, and July 17,2OOO. Prior to placement of alternate feed material, the licensee shall determine that adequate cell space is available for that additional material. This determination shall be made by a SERP approved procedure. 1 0.1 3 [Applicable Amendments: 13, 15] 6.0 ENVIRONMENTALIMPACTEVALUATION An environmental report covering the information identified in 10 CFR 51 .45 was not required from the licensee. An EnvironmentalAssessment (EA) was completed on February 10, 2000, for the approved Reclamation Plan. ln this EA construction impacts were considered. Since the expansion will be within the original cell area "footprint" and no additional environmental impacts beyond those already evaluated in the February 10,2000, EA, this action will not result in (1) a significant change or increase in the types or amounts of effluents that may be released offsite; (2) a significant increase in individual or cumulative occupational radiation exposure; (3) a significant construction impact; or (4) a significant increase in the potential for or consequences from radiological accidents. An environmental review was not performed since actions meeting these criteria are categorically excluded under 10 CFR 51 .22(c)(1 1). The licensee originally proposed to build a six cell impoundment system which was addressed in the Final Environmental Statement for the license application (NRC, 1979). The mill has only utilized four cells, one of which (Cell 4a), is not currently in use. IUSA's current proposal includes expansion into an existing cell 'Tootprint". REFERENCES: U.S. Nuclear Regulatory Commission (NRC). "Standard Review Plan for the Reclamation for Mill Tailings Sites Under Title ll of the Uranium Mill Tailings Radiation Control Act" (NUREG- 1620, NRC June 2000). AUC-00-99 l5;22 Frsm; ' . s-pn AeCg, ..r* '-9t W a; UNITED STATES NUCLEAR HEGUIATORY COMMISSION wAEHlH6t6ll, D.c. 4O55E{OOi T-124 P 0?,/Zt Job-300 A[JE 0 s tggs July 28. 1999 Ms. Michelle Rehmann, Environmental Manager lnternational Uranium (IUSA) Corporation lndependence Plaza, Suite 950 1 050 $everrteenth Street Denver, Colorado 80265 SUBJECT: AMENDMENT 12 TO MATERIALS LICENSE SUA-1358 -- APPROVAL TO RECEIVE AND PROCESS ALTERNATE FEED MATEBIAL FROM THE ST. LOUIS FUSRAP SITE AT THE WHITE MESA URANIUM MILL Dear Me. Rehmann: ln your lcttcr datsd March 2, 1999, you asked that we amend your lioense for the White Meaa uranium mill to perrnii the receipt and processing of materigl ("Uranium Material") removed from various St. Louis, Mlssourl, sltes. The U.S. Army Gol'ps ol Englneers (USACE) is remediating properties in the St. Louie, Miesouri, area thet have been contaminated with radioactive materiale from the ManhettEn Projeet. Theee citee, collec'tively known as the "St. LouiE 8it6," are heing managed by the LJSACE under the Forrnerly Utilized Sites RemedialAction Program (FUSRAP), ln consultatlon wl'th the U.S. Environmental Protestion Agency (EPA). You propose to reoeive thie material at your White Mepq urqnium mill in Blanding, Utah, remove the uranium so that it can be re{Jsed, and dirpoae of the proc€Bs tailings in he mill's lailings pile. You estirnate that the USACE and ito contractors will renrove approximately 686,000 to 1,029,000 cubic yards (CY) of Uranium Material from the St. Louis Site, and that some or allof this material could be sent to your mill ior processing, Wu havc dotcrmined that your requeut to receive and process thie material ie acceptable, and have amended your license accordingly. We have enclosed the amended license and our Technical Evaluation Report that provides our bates for granting the amendment" Our principal oriteria for evaluating thie requeet sre qontained in our guidance entitled, "FinEl Poeition and Guidance on th6 Use of Ursnium Mill Feed MaterialOther Than Natural OreE" (60 FR 49296: September 2e, 19EE). We alEo eneured that thls reguEet compll€E wlth our requlremente tor uranium millE in 10 CFR Part 40, Appendix A. ln approving this request, we have added the followlng llcense condltlon to your license: 10.13 The licensee is authorized to recaive and process source material from lhe St. Louis Formerly tJtilized Sites RemedielAction Program (FUSRAP) site, in accordance with statements, reprasentations, end commitments contained in the amendrnent request dated Merch 2, IOOO, end ee emondod rnd eupplemented by cubmittal+ dcted June 21, 1999 June 29, lggg (2); and July 8, 1999. AU0-00-99 P.03/23 Job-300 M, Rehnnen6 '2- lf you have eny queetiong regarding this letter or the enclosures, pleass contact William von Till, tha NRC Project Munager for the White Mesa rnill, at (301) 4{5-S251' $lncerely,";Jfu /ffi surrneier, Chief Eranium Recovery ancl I ow-l-evel Waste Branch Division of WaEte Managomcnt Office of Nuclear MaterialSafety and Safeguards Docket No. 40-8681 SUA-I356, Amendment No. 1? Enclowree: AE etated (2) cc: W. Sinclair, UT C.Crirt, Ute Mountain Ute Tribe EPA Terry Brown, US EPA Region Vlll AU6-00-Eg l5:4I Frsm; DOGKET NO.: LICEHSE NO.: LICENSEE: FACILITY: T-l 25 P.11/Zl Job-300 TECH N ICAL EVALUATIOH REPORT REOUEST TO RECEIVE ANO PROCE$S ST. LOUIS FUSRAP SITE ifiATERIAL 040-8681 suA-1358 I nternationsl Uranium ( IUSA) Corporation White Mesa Uranium Mill PROJE9T HANAGER; William von"Till SUMHARY AT'ID CONCLUSION$: We hava reviewed lntemational Uranium Corporation's (lU$A's) license amendme,tt application dated March 2, 1989, to receive and proceea uranium-hearing materiale from tlte Formerly Utilieed $itee RemedirlAction Prograrn (FUSRAP) sites in St I ouis, Missouri" Theee materiels would be usec! a8 an "alternate feed materlal" (1.8., metter that is procesaed in the mill to rcmoyc the uranium but which ic diffarent from natural uranium orce). We have reviewed IUSA'E request usirrg our formal guidance, .Firral Poaition and Guidanoe on the Uee of l,.lranium Mill Feed Mateflal Other Than Natural Ores."r We find the arrerdlnent requeat to tre acceptable and have amended the license s0 that IUSA may process this material. 1. OESCRIPTION OF LICENSEE'g AIUEHDiIIEHT REOUEST Ey it* submittal dated Mereh 2, 1909, lU.9A reqrrested that NRC emend Materiels License SUA-1358 to allow the receipt and processirg of material other than natural uranium ore (i,e", alternate fecd material) at its White Meea uranium mill located near Blanding, Utah. Theoe eitEE currently are being remEdiated by the U.S. Army Corps of Engineera (USACE) under FUSMP. ($6e the USACE tt/eh BitB at http:/,4#rff,r,mvs.usace-armv.mil/Engr/fusrapiindex.htm for localiorrs, documants, and photographs of the sites being remediated). lu.SA proposse to receive contaminated rnaterials from the St, Louis site for processing at its uranium mill. IUSA calls this alternate feed material "Uranium Material." .Uranium Material" coneiete prirnarily of moist materialE containing byproducts frorn uranium processing operations (i,e,, 'tailings"), mixed with gite soils. Uranium, thoriurn, and radium are its primary radiological conEtituents. Baa;d on USACE dooumonts, lUsA, ealimatee the amount of rnatorialfor triE amendment request to be 656,000 to 975,000 ydss, but the amourrt could be up to double this qLlantlty, $incE n ls dlfflCult t0 esumatc me ExtEnt of lBafiing of raqlonrrclldos lnto adJacant coils. Adual amounts removed would be determined besed on sampling at the time of excavation. The total firnount could also be less than this range becauue the USACE has selected other r:nnfrnrrfnrs tn dispnne af lhis material. 1 See Fodera, E6getdr, Volume 60, No, 184, Pagss +9e96.+9297. AUfi-00-99 15:40 From:T-l 2$ P.1 5/eO jsb-360 2 ln addltlon to ltE Mafch 2, 1999, letter requesting that the liocnao be amended, lUgA provided additional information in the following letters to NRC: . June 21, 1999, letter that includeE a more legible copy of a gBngrator'$ certification form in Attachmant 7 of the original submittal. ' June 29, 1990, letter that providcs additional IUSA rEvieur rnateriale fsr listed hazardoua waste and EPA rugulations and guidanoe ofl hazardoua waete. . June 29, 1090, letter that provid€s an IUSA generator csrtlficatlon form, . JulV 8, 190s, letter that contains a revised IUSA generator certification form and information on Applicehle or Relevani and Appropriate Requirements used by the U8ACE. & Slte and iiateriallflfo{matlon The St. Louis FUSRAP eite compn$es mulilple propertieg located ln two dlstlnct arEaE. downtown Sl. Louis and lend close to Lambert-St. Louis lntemationalAirport, From 1$42 to 1957, Mallinokrodt lno. in downtown St. Louis separated uranium from ores. These proceasing activities, conducted under Manhatten Engineer Diatrict (MED, also known as tha Mqnhattan Project) and U.S, Atomic Energy Commission qontracls, oontaminatcd portions of the property and buildings with radium, thorium, snd uranium. Uranium-beerirrg proces$ reeidues from Mallinckrodt procesoing oparations wtsre subo€quently stored at the 8t, Louis Airport Site (SIAPS) and the nearby Latty Avenua pruperties. Relocation and storage of theae procasrad waetes at SLAP$ and the Latty Avenue Properties resulted in the subEequent contamination of the SI-I\PS "vicinity propeftieo." The USACE (and hefore 1e07, the U.B. Departnnent of Energy) has been evaluating the extent of contamination, determining cleanup criteria, and seleeting methode tor cleaning up thes€ propertles, IUSA stated in its lieenEe amendment application that it would not accept alternatE f€Bd rnaterial from a property known ss Coldwater Creek hecauee of the a large number of organic chemical contarninant clasEes that are present. IUSA haE also stated that if some areas are found to cantain ligted hazardous waetee ln future eempling of other proprrties, IUSA would ncrt accept them fcr processing at the aite. ljranium, thorium and radium and their progeny are the primary radiological constituents in the surfacr and subeurface soil contamination at these propertiee. IUSA estimatee that the average uranium content for the cntim St. Louis Sile to be approrimately 0.0904 hy weight. tr frsnsportation GoEgiideffitionr Follovring excavatlon ot tne fflaterlal aI tne St. Louls slte, lt would be shipped by train in intermodal containers or by truck to the White Mesa mill. lf intermodal containers are used, the Uranium Materialwould be loaded into covered exdusiv+use container$ et the tite, The covered eontainere would be loaded orrto railcars and transporled cross-oountry to tre final rail AUc-0E-Eg 15;50 Frsm:T-l l5 P. I $/23 ioh-300 3 destinathn (expected to be Bither near Grand Junction, Colorado; Cicco, Utah; Grccn River, Utah; or East Carbon, Utah), where they would be traneferred to trucl<s lor the final leg of the jolrmey to the White Mesa mill. According to the IUSA application, the company Bxpects that iour "ontainer6 would be placed on each rail car. IUSA expects that up to 70 to E0 truckloads parweek fortwelve montha of tho year oould be lped io transport Uranium Meterialfrom the rail transfer site to the mill. lf truck transport wer6 used, as many as 70 to 60 trucks per week could DB loacled at the 8t' Louis eite and the Uranium MateriElwould be transported by a predetermined surfaca roUte directly to the mill for twelve monthE of the year. This rate could continue for 7 to 18 years, depending upon th€ level of the FUSRAP program's annual funding. The matarial is not rubjact to our juri*diotion durirE transportation, however. Although the St, Louis $ite matorial rneetg the definition of i {e.(2} byproduct material in the AE.A, this material is not subject to NRC regulation until lt ls receivect by lU$A undtsr their NRC license. The $t. Louis $ile materialwae produc€d hy adtlvltles not licenEed by NRC, either before or after the enactmenl of the Uranium Mill Tailings Radiation Control Act of 197E, which Euthorizes NRC to regulate such material. S Handllng and Procptoinq,rttho Hill $ita The Uranium Materialwill he added to the mill circuit ln a manner slmllarto conventlonal natural r.xes ttrat are procassed, lU$A expactr to procese solutione after leaching without ony significant modifications to either the circuit or the recovery proce$s. No physical changes or aEsociated construction Impact$ are €xpectecl, Tailings produced by the processing of this material will be disposed sf on-site in an exieting lined tailings irnpoundment (Cell 3). Depending upon the amount of material proccooed and the length of time that maiErialia shipptd to the site, ItJSA may have to build additienaltailings impoundments. As we note later in this report, IUSA must comply with its existing lioense rBqlllrements that llmlt the arnount of lalllngs ln Gell 3, and obtain whatever approvals ers n€c€Baary for additional impoundments, if they are neetlec{ lU$A will €nourti safety of workere and the environmcnt using alroady eEtablighed procedures and equipment in the radiation safety program for processing naturalores. The potentialfor employee cxpoturco from the handling and proccaaing ot thrs material ie not Expeetsd to be any more significant than that normally encountered with the milling of conventional uraniuril ores, Mill employ€eE irtvolvBd in handling the rnaterlalwlll be provlded with personal protectlve equipment (e.9., coveralls, rrrbber gloves), including respiratory protection, if necessary. Airborne particulate and breathing zone sarnpling will be conducted in accordance with the snvironmenlal rnonitoring progrEm eetablished by the liceneee. ?. ETAFF TECFINIOAL EVALUATION We have reviewed lU$A's request in accordance with NRC star guEance "Frnel Poslllon and Guidance on the UEe of Uranium Mill Feed Materialother Than Natural Ores" (60 FR 49296; September 22, 1995) and 10 CFR Part 40, Appendix A requirements. The staff guidanca (refened to hereinafter ae the *Aiternate Feecl Grridanne") requiree that we make the following AU6-00-EE 15;13 Frsm:T-l eE P .lflli ioh-3E0 4 daterminations in our revlews of llcensee requests to process material other than natural uranium ore$: (a) Whether the tbed rnaterial qualifies aB "ore" as defined in the NRC guidance; (b) Whother the feed nraterial containe lieted hazardous waste; end (c) Whether the feed material ir being proccsscd prinrarily for itr aource-material content. ln this Bvaluation, we diacus$ how IUSA has eddressd each of these criteria in its application to amend the license. We also diserrsr the other considerations that affect the grantlng of this arnondment, & Eat€ffiinstio[of whFther " For the tailings and wastes frorn the propoeed processing to qualify as 11e,(2) byproduct material, the feed materiai must qualify as "ore." ln the Altemate Feed Gulctan0e, we cleflne uoren in part ag: ",..eny other matter from which snurce material is extracted in a licensed uranium or thoflum mlll." IUSA has propoaed to use alternate feed meterialfrom the St. Louis Site that contains varying concentratlons of uranlum, s "$ource material" as defilred by the Atomic Energy Act of 1954 (AEA) Uranium concentrations range up to 12 percent by weight in emall hot epots, with an egtimatad avcrags corrteni of uranium of epproximately 0,09 percerrt by weight in allof the various propertiee from which material mav be shipfred. Becauae IUSA is proposing in thig emenctment reguast to extrast the uranlum from this materialat their White MesE uranlum miil, we find that the propoeed feecl meterial qualifie* es "ore' es defined in our guidance, tr Detcrminatietr of whsrtherthe fee-d matarial pgntsine ha*ardoue waEtg Under thc Altcmata Peerl Guidanoe, we would not epprovo propoeed feed meterialfor processirrg at a llcensed rnillthat contains a listed hazardous waste, We could approve feed rnateraals whlcn exhlblt only a characterEtlc of hazardoua waste (i.e., ignitability, oonosivity, reactivity, or toxicity) because they are not regulated as hazardous waste for recycling and exlraction of sourca rnaterial (according to our guidance, this exception does not apply to reoiduee from wEtEr treatment). The IUSA anisndnrprrt request eddrceeeE Eeveral mcasurc€ that will provido eceurance that listed hazardous wastes will not be processed at the White MesE mill. First, IUSA condueted its own revieu/ of infonnation on potenfld llgted nazardou$ wastes ln exlstlng pgE ancl usAcE documEnts remediating the $t. Louls eite properties. They found that the deta and historic information were suffrcient to conclude that the Uranium Materialin the amendment request does not contain Resource Conservetion and Recovery Act listed hazardous waste. Second, Ati6-00-t9 15.95 Frqm,T-l eB P fi/23 iob-300 5 lU$A also nlred an independant consultant to review availabls information and pcrform a separate review for classifying variou$ $t. Louis properties and d€termrning which may cofltaln listed hazardous $,aste. ln addition to reviewing documents, the consultant visitad the slte, ancl interviewed USACE, itE contractor who performed the initial review of the site history, and Mallinckodt prooeas pcrsonnel, Ths coneultant'a analyeis was included in the license amendment roquest. Basod an this work, IUSA elirninEted one property, the Coldweter Creek Vicinily property, fronn lts amendment raqueut, because of the large number of chemical corrtaminants and muitiple potentialeontamlnant sources. IUSA alao determined that the other properties evaluated were acceptable for processing at the mrll because thBy did not contaln liEted hazardous wa6te. IUSA noted that USACE is further characterizing warte sources for sevaral properties, and stated that if these supplementalinvestigatiorrs change the RCRA evaluatiorrs to date, IUSA will notify tha NFIC immediately. These materials would not be thippcd ts IUSA for procarsirrg. A third measure ]USA will u$B to anoure tnf,t n0 llsted hazarclour waste is shipped for proceasing et the mlll ls eampllng and chernical analysis. The approaoh will be similar to that used for a pravious IUSA alternate fped emendment regueet (.Ashland ?') that wa$ approved by NRC in 1998. The USACE contractorwill collect end anatyze samples aeeordlng to a Sampling and Analysis Plan. Any rnatorialthat is found to contain listed hazardous waetes during any of the three tampling set.s defined in thc Plan will not be inoludod in the material ehipped to the mill fon proceesing. Finally, es committed to in its amendment applieation, IIJSA will conduct testing of materialfron fie St. Louis Site arrlvlng at the mlllon s regular basls to confirm the U$ACE contractor'e conglusiona. IUSA wtll alao require that the generator certify the incoming materiul is not a hazardous waste as defined in EPA's regulation in '10 CFR 261 and/or that the material is exernpt frorn Resource Conseryatisn and Reoovery Aot regulation under 40 CFR 261..a(a)(a), Thie eestion exemptc "Srlurce, special nuclear, or byproduct malerial as defined by the AEA, as amended . . ." from rEgulation as a solid or hazsrclou$ waste. uranlum Material that was classlfled as 11e,(2) byproduct mEterialunder the AEA would be included in these eremptec{ nraterials. Firrally, the Altornate Feed Guidance rtatas that we may oon$ult with EPA (or the $tete) before making a determination of whether the feed rnatailei contains hazardous waste, We contactedt EPA Rogion Vll staff (the St" Louis ilte i$ in their Region) and d€Eorlhed thB above mflnsuras het IUSA haE used and will uEe to Bnsurc that no listed hazardoua waste is stripped to the mill. EPA stated the tollowing: '. . . fom a conceptualstandpoint, the deEcribed strategy ffor en*uring hat no listed hezardouE waata ia shippod to White Meeal66etrns reaeonable and complete. We would agrec that tlpre is suffident data urd triutorical information eveilable to draw relevent conclusions about the nature of the St. Louis FUSRAP waate , and we would agree thet the uuaste Qualillee e$ 118,(z) hypro0uct matenar eno B nor dtr0cuy associated with any RCRA limted wastes. There is no evidence and little reason to ' J,iy 21, 1999, etsctronic mail from Jarnes Kennedy, NRC, to Daniel Wali, EPA Region Vll. AU6-00-98 15;57 Frsm:T-l ?5 P. I E/23 Job-380 6 sutsp€ct tnat RCRA llsted wastes ara co-losatad with St, Louia wsstes. The groataet potential for such an occurrsnee is prsbably 1t tlq Malltnckrodt plant, raferTed to ln sltB documents aB the St. Louis Downtown Site (SLD$), where thB FUSRAP wastee are in doee proximity to current and former chEmical manufastuilng proffissas. Available chemical dete on thE $t. Loqie FUSR.AF waates show few contaminsnts that cannot reasonably bo associated with uranium ore proceeeing. PAHs and a fa* other organlc compounds commonly fsund in induatriat eettingt havo boen deteoted eporadrcally and in low concentratlons. Limited TCLP tauting does nst indioate the widespread preEence of RCRA characterietic waste," EPA affrrms that the likelihood forthe feed material containing listed haaerdouE waste ia small. IUSA'c imposition of a sempling and analyeis plan on the contrector at the St. LouiE site, and its own independent testing of ehipmerrte will provide the neceseary additionel asstirence that listari h8zardous waEtss are not prooegsed at the rnill, Based on the above, $,6 find that the rnaterial proposed in IUSA's March 2, 1999, licenee amendrnent request for proeessrng St, Louis $ite FLISRAP materlal atthe \ /hite Me.sa millwill not contain a listed hazardouE waste. Because thie material is from the procee*ing of uraniurn ores and contaminated soile, ws eleo find that it meEts the Altemate Feed Guidtnce provision thet it not be a residue from water treetrnent. c. Oetomlrtation of whcthar tho feed mnterirl i* bgil!0 proce0eed primartlv fpr its so u f$e--rnete rleLconbnt Using ourAlternate Feed Guidance, a licensee muet show that potential alternata feed material is being proceseed prlmarily for its sourcs-mttenal contsnt, To do thi$, a licen*ee must either (1) demonskate that the material would be approved for disposal in ihe tailings impoundment unclerthe'Flnal Revlsed Guidance on Disposal of Non-Atomic EnergyAst of 1954, Seotion 11e,(2) Byproduct Material in Tailings lmpoundmentg;" or (2) certify, under oath or afiirmation, that the material is being processed prirnarily for the recovery of uraniurn end for no other primary purpoae. Any suoh oertifioation must be supported by an appropriate justification end sccompanying documentation. IUSA hae provided a signed cefiification that the uranium-bearing material ls being proceased primarlly for the recovery 0f uranlum and for no other prirnary purpose, lU$A staics that this primary purpose (the recovery of uranium) ie based ofl the uranium content of the material, fl nancial considerations, and other considerations With reapect to uranium 60ntent, IUBA estirilates, based on USACE information, thet the uraniurn content of the rnatsrial will ba nn 3v6rtg6 of 0.0S% by weight for the entire eite, or approximately 1.2 million pounds of uranium. Because the original material gensreted at the 8t, Louis DOwntown Slte na8 Eeen Wdely olspersed, tns aGualvalues wlllvary mignif,tcantly from one location to another. IUSA noteE that material containing nondetectable levels of uranium is not likely to be included in shipmente to the mill, since lt would likely not be excavated. Our Altemsle Feed Guidanca does not specify a minimum larel of uraniurn for processing, sinca a AU8-00-Eg lE;00 From;T-leE P 2,0/?? jsb-900 7 combination of factors afrBfi our decl$lon cn whethEr rnaterial iu being prooqtsed'primarily for itr source matgriat content." Nevertheles$, IUSA notsd that thia gracle of ore {0.09 wt.7o) has been mined in the pest and that tower grad€c of natural ore$ then this request are belng mlned and stockpiled,at the millfor processing. Wth respcct to financial considerationa, IUSA intende to procaee the St. Louie $ite material either abne or corflmingled with corrventionatly-mined uranium ores during the eEme mill run. The licansee states tnai uris arrangement wlll result ln several benefits which directly influenoc the cost of processing thas materialfol its urantum content, includlng the followang: . LeEE ore will have to be stockpiled on site while waiting for enough ore to juEtify a mill run. IUSA statee thet generally nt least eight months of oontinuou$ operation6 i6 nBeded for thia iustifioation, The rate that IUSA can prooees ore at White Mesa is about ten timcs highcr than its production from its minae, and ie significantly higher than the historic daity production of conventlonelores avallable for processing at the Millfrom all sourc6s. stocl$lllng ore costs money- , IUSA statgs that cornmodity price risks are reduced by having smaller ors lnventorles. TheEe riEks alEo have a cost associaled with them' . IUSA willbe able to rEtain trsined millworkers for longer periods of time, resulting in a more efficlent worlcforce and e reduced probablllty of losing trainad employees. Now operatorc would not have to be trsined if the experienced oneE can be reteined. Both of these factore lower costs. . Also due to the longer nnill run poriod, IUSA Etates that uranium recovery percentages will increase, while start-up inefficienoiea willdecreaee, thereby alloYrling for a mora productive mill run. . IUSA may ba able to recover $ome vanadium from the uranfurn-bearing material. Althoughihe amounie of varradium that could potentially be recovered are not known, there is the potentialfor racovery of soma, thus gcncrating additional, unplenned revenue. At this tima, however, there is insufficier'tt ore grade data to estimate the amount ot vanadium, if any, that mlght be reoovered. The r€cov€ry of venirdiurtt, if arry, is not the primary purpose of processing he alternate feod materialfrom the St. Louis site. The combination of these benefits, IUSA atfirms, will reduce the costs of processing the $t. Louis Site material, thue maldng the overall coets of running the mill economically attractive to lUgA. We have reviewad IUSA'g certification, and find that it addreeEas our eriteria in a rqAgoneble mann6r and consistent with praviouu upprovalo for altemate fead matcriala thet we nave Hranted. We conclude that the economic benefits attributed to the Processing of the proposed feed material, aE certifted by IUSA, suppon e determlnailOn lhalfie Proposed leed material is being procesaed primariiy for its $ource material (i.e. uranium) content. AU0-00-98 18r02 From:T-le5 P.21/23 Job-300 g ln addltlgn, the DOE, which managed the FUSMP aitee prior to the U6ACE, deterrnined that St Louis Site matgrisl meet$ the definition of 11e.(2) byproduct materlal undsrthe AEA. Au u general matter, NRC has determined that, provicling a llcensee lE autnoflzed to receive 11e.(2) byproduct mrtsrielforn another site, the material could be disposed of in that llcensee's rnill tiiiings irnpoundment. Therefore, the fact that a lir.ensee plans to procees the proposed feed mateiialiefurther evidence that the lieensee ie primarily processing iho feed materialfor its uource nrEterial contont, cince prooeaoing the materialwould not be nee€ssery to diepose of the rnaterlal ln a mllltailings irnpoundment. ln addition to using the Alternate Feed Guidance for determining whether thls matBrial is belng procossed "primarily" for its source materiel content, irye have also conaiderEd a recBnt decision by an NFIC edmlnistrative law jr.ldge in a heering 6n albrnate feed materiale. On February 9, tbgg, an HRC Preeiding fficcr in the hearing issued a decision denying the relief requested by the State of Utah on a Eimilar Alternrte Feed amendment requeat from IUSA for the White Mesa rnpl. The State had argued that thE proressing ef FUSMP rnatcrial from another gite ("Aohland 2") at Wtrite Mesa was not justificd, since it waE being processod primarily to dispoee of the rnaterial, i.e., as a usham' disposal, not primarily for its source-meterial content, a criterion ln ilre staff's Alternate heed Guidance. The Presldhg Offlser rejected the $tate's position, atating that "primarily" referE to wfrat is removed from the material during processing (i"e., uranium, and not some other subEtenoee Euoh as titlnium, coel, vanadium, etc.), and not to the rnotivation for undertaking the procass. IUSA proposss to process the Uranium Material pilmarilv for its source nnaterial content, not for some other constituents. Thut, IUSA also fulfills the third criterion of the staffs guidanoe when the FreEiding Officer's declsion ig ueed. The State of Utah has appealed the decision to the Commission. in any case, the lU$A proposal BatisfieE the original guidance" il- Cqneluelone concerEino compliance wlth. ?lternate-fia*l- hffa Based on the information provided by IUSA, the NRC ctaff finds that the St. Louie Bite mqtEriill meets the criteria in the Alternate Feed Guidance, beceuse (1) it qualifies es an "ore' as defined by NRc guidanoe, (2)the ffiaterialto be proces$ed will not he or contaln llsted hazardou$ wastes, and (3) ii is being processed primurily for its Eource-material eontent. g othar conEiderirtlonE We have alao considered other factors related to the granting sf this arnendmant request, W€ have concluded that the proceeEing of this material will not result in (1) a significant change or increase in il'le types or amountE of effluents that may be releEsed offsite; (2) a significant increase in individuelor cumulative occupational radiation exposure: (3) a signilicant construction impect; or (4) a significant increase in the potentiel for or consequences frorn rediological acoidents. We baae this conelueian on tha fallowing: r YellowcaKB pfoclucecl from the processing rf this mEtsrial will nqt cpuss ths currently-approved yellowcake production limit of 4380 tons per year to be axceeded. Yellowcake is the useful product of the mill and containe elevetsd concentrations of uranium hat are further refined in other plants and processes AU[-0[-Eg l0:C4 From;T-125 P.ZZ/ZS Job-900 9 to produce fuelfor nuclear reactorg, for exarnpE, ln addition, and as a rcillt, radiological doees to members of the public in the vicinity of the mill wrll not bE elevated ahnve levels previously assessed and approved. ' No nrodifications to the mill cirouh deeign erg nacessary to proce$e the St I nrtis Site rneterial' " The liceneee will dispoae of tne talllng$ produced by the procorsing of thit material on-site in an existing lined tailings rmpoundmant (Cell 3), and if additional impoundments are required, IUSA will obtain whatever approvals are necess:Iry before construoting such impoundments, The volurne of tailings that would be generated by processing the Uranium Meterialis connperable to the volume that urould be gcnerated from procesuing an equivalent an'lount of oro authorized urder the lioonrc. The design of thE oxieting impourrdment, whieh includeE a leak ddection systern, has baen prevlously approved by NBc, and IUBA is req!.lired by its NRC licsnse to conduct rogular monitorirrg of the inrpoundrnent liners and of the groundwater around tlre impoundmentE to detect leakaga if it should occur. lf any additional tailings cells are needed, they will be approved by NRC and will have similar monitoring, . ln ganer6l, the St. Louis Site msterialwill be similar in composition to the mill tailings currently disposetl of m mB e*ll 3 impoundment, beffiuse it will contairt ntetals and othcr chsmicals whioh ars prccent already in the tailinge. Fudhermore, IUSA ia required to conduc{ regular monitoring of the impoundments to detect hakage if it should osuuI. TheteforE, any environnEntal impacts that could be associated with the disposal of the additional quantity of St, Lsuis Site matorial from prooeaoing irr the mill will not be larger than impacte previously avaluated and deterrnined to be acceptable for this mill. With respect to tranaportetion impaote, q6 we noted in Sec'tion ?.c, NRC dnee not regulata the fansportation of tnie materielto the Wh[e Mesa Mill. ln addition, transportation impacts for varlouE remecliation alternqtives lrave already been exarninad by the EPA and USACE undar the OERCLA proces$ uBBd et the $t. Louis $ite. Regarding FUSMP, actions proposed for a site are evaluated in light of NEPA guidclines to dete!'mine potenUalenvlronrnental effects errd the level of NEPA rlocumentiation required. lt is the position of the USACE that the CERCTA process is functionally equivalenl to the requlrernents olthe National Environmental Policy Aot.t E. RECOTTET{DED LICENEE CHAHGE: Pur$uant to Tlue 10 of thE cqde of Fedaral Regulations, Pnrt 40, Muterials Licenre SUA-1358 wilt he amended by the addition of Licenee Condition No. 10.13 as follotltrs: 3 U,S, Arrny Corpe of Engineers, Faasibility $,furJy lorttra Sl. lprirs Downtown Sile, April 1998, p 5. AUi-00-Eg lt;C? Frrm;T-l15 P.Zt/21 JoL-300 l0 10.13 The licansee is authorized to recclvs and Fretrca$ Eourc€ mstBraalfrom the St. Louis Formerly Utilized Sites Remedial Aclion Program (FUSRAP) site, in accordance wth Etatements, representationa, and commatments eontained in the amendment request dated Merch 2, 1999, and as amendsd and supplernented by submittals dated June 21, 1899; June 2s, lsgg (2); and July B, 1998 [Applicable Arnendnncnt: 1 ?l 4, ENVIRON]SENTALIiiFAGTAIALUATIOH An environmantel report covering the information identified in 10 CFR 51,45 was not required from the licensee, The environrnental impacts associated with the excavation of thie matarial and associaied site cleanup activities end for transportation were addressed previsusly by the USACE. Eeceuse IUSA's reoeipt and procoeoing of the material will nst result in (1) a significant changa or increase in the types or amounts of effluants that may bo released offgite; (2) a signifioant increase in indivicual or cumulative occupational radiation exposure; (3) a signiffcant construction impesq or (4) a slgnlflcant lncreaae h the potentlelfor or consequences from radiological accidents, an environmental reviewwas not performed since actions meeting these criteria are categorically ercluded under 10 CFR 51,22(cX11), AU0-00-E9 15:23 Ft'om:1-124 P.01/23 Jsb-360 NRC FORM 374 (7.,4) iVIATIIBIALS LICENSE iyx,cirie,.i in secriorr Ig3 of thcAtomiu Energy Acr 0f ig54, a$ am(rndcd,0n(l is suhjecr to all ryplii:nblc rtrlcs' ftgulatiolltl, ar^d ordcrs ol'tht' Nr,,rtear"l?eprrlatory Cnmrrission rrrtw or lrereafter in effcet and to nrty conditions specifir:d bclorv, Er-+'','Ir''lsx' r ''IrU'';.; ;J;;il;r;;;jfl!)=* -' = '=;':s:**'1 = Licenree I' lntemqtonslUrBnium (UsA) lApplicablB Amondmefits: 2l r. 8425 s. Haghwsy 181 P.O. Bor 809 Blgnding, utah 84511 [APPlicable Amendmentsl { ti. Bvoroduct. Source, audior Siircirrl lrJriclenr Mnr*rin Corporatlon 3. Liccnso Numhor NaturElUranium 7. Chemical and/or Physicnl Ftirm Any 8, Miuimurn Amount thnt Licsnscc May Possess at Any One Time Under This License unlimited SECT|oN 9: Admini*tltuvB conditiona g,1 The authoriz6d pleaa of usa Ehail fs tne trcsn$ea'E white Mesa ufranlum mllllrq facility, locatod in $an Juan CountY, Utah' g.2 Ail writen noticos and tEpo{ts ro thB llfi_cp_Eipd underthis licenser$I s€ ex€e-Ption of incidcni;di-irlit,totilEiLins undar 1Q cFR zo.anaz end 10 cFR 40'60 requlrlng . telaphon6 notiiiiitiln,'iniU 6[EOOres$sd to the Chief, Ura.nium Recovery and Low-Lavel W6ste HiaiiEnl'nii,iisiitiiiWi"te Monagament, Offioe of Nuclear MatErial Saloty and Safeguerds. tncident and event notifica1ons that rsquire telephone notification shallbs mad€ to tlre NRC operations cEntsr d (301) 815'5100' g.g Tha license€ shall conduct operEtions in acffird4ncs wlth statBrnents., reprqsentatlonE, and conaitnniEnirined in ini riEinie rgnEwat application submitted_by lefier dated August 23, isdifilfrffiA"{, s|'binittiEriiteO Januad-i.s, qlq Apr'|7, 1esz, November 2e' 1aB4' . Juty ?7, 1985, Decembsr 13,;nJ necemngi3l, 1996, dnd January 30,.1997, plttch PIE nereoy'inJo-rib-dtEo"iv ret'eltncs,?no toi the standby Trugt Agreement, dated April29' igg7, axc.pl tr*rere superseded by license conditiOns belOw. Whcneverthe word'\rill* is usad in the above referenced documentg, it Shall denotE A r€quirement' [ApplicablaArnendment2l g.4 A, The liconsee may, wlthout prior NRC approval, and subiect to the Eonditions spssified ln Part B of thir condition: (i) Make changff in the Iecility 6r FroeBs$. eE presEnted in the application- SUA-1358, AmEndment No" t2 Pnnled on roclcled pnpca T-1 t1 P.05/tg Jsir-300 HEGULAToHY COiltt lSsloti. NFC FORM 3?44 (7.94) MAIERIALS LICENSE $UPPLEMENTABY SHEET Dockat or Bcfercnce Numhtr (2) Make changes in the Proc6durEs prosEnled in the aPPlication' (3) Cortducf t6Ets or sxperirnEnts not presentEd in tha apilication' B. The llccn*ec strEll lile an applicetion for an gmcndmBnt to the llcanse, unlBss $6 following conditionE ara satisfied' (1) The change, tqst, gI :':Ps,.riment does not conflictwith anY raquirement spacincail"vl;Ge in thii liconil, or impair the licanu€e s abilw to meet all aPPicaUte NRC regulatione' (2) There is no degre-dation in thE eg*91ti1! safcty or environmentel commitmants in'-' ne rrcaniii'rpf,ioatibn' or pruvidad uitfre rPiroved reolametion plan' (3) Tns cnangs' lesl, or experimant is conoiatant with S'9-corrcluaions of edionsr-/ enelyroJlnd ""fLctea in thc EA dated February 1917 C. Ths ticcncce,e detErminations concerning EnB*oJ ti.* "gqqlton, shall be mede by a ,,safety anct En;irdtmanti nEvrew Fana]1geFf).' The SERF shall congict of a minimum.f 1.;,;;ltfi;iduar. Onu rr-"mUirof Urb SSRP ehall have expertisa in ;ffi;drn*i hi ;heif be rospoiiiuie ror mf,nng$pl and fl nenclal apProvsl shanses; one memb6r'ir,l1-riJrl *pcriiso iiioperg.tiong rinull conetrrrction rnd shall have ;fiilifithilityfiiiin[[illiilg a.li "pqt$4al changes; snd, ong msmper shall b€ rhe uorporatgiiriulio^ i*itvirii"iicnsol or equivalont, with the reeponsibilitv of fll$Snn#ti:f *lilxji,nltgi'1"il:gEll"*'I3iffi [hL',i!1fJI"?""*",*, &-;iii+,d;;;-#E'il[Fhv}icdi;r?*X'ffilT,Hlt'JHI'r1,ffi H;TI*'oEEH''rPionc asrth sciancEs, and othe i'"r#n.nt -il;11f,ffi ;tniii*rin rie lnril abovi-specified indivitluals, mav be bonrutuntt' D'Thglicsnggoshallmalntainrecqrdgofanychgng.es.m4:Puls-I?llll".fiucondition untillicenss termination. These rdordiinatl indude urittdn safety and environmantal ovatuationc,;;ilEi the gERp, thet Frovtor the basir fsr cetermining changct ara in complianca iiilh tfi?rqultimentsrJteneo to in Part B of this condition. Tha licansae iniii-ii,mirf,,-ill,rinnnil rsportto NRc, a desorlfllcn of sush Grtrngci' ttrtr' tlr erperimants, including , summrry-jiUil i.te"U# snvimnmentsl €valuation of each' ln addlilon, thb'ffinniEe shatl ann'uatty suhrnit io tna NRO changed p.ages to the Gparations iiin aia neAimation}iin of the epproved licanse application to reflect clianges madE under fiis condition' The licenseo'E sERp gnail functon ln accorognBE with thE standard opcratlng PrEEdurss suumitteo by lstt€r dated June 10, 1997' tApplicable Amandments: 3l AUG-00-EE 15r25 Frsm: lla [l l.ll tll lI( rlr AH HEGULATOHY COMMBEIOH T-l 14 P.00/ag Job-300 rl+.{!a-s-gi:ti-...-...-..- il PAse 3 oF '10 FAcEe 1358, Amsndmmt NgJ? NRC FOBBI 3744 (7.S4) MAI'ERIALS LTCENSE IUPPLEMENTARY SHEET or Rgfwsncc 9.5 The licensee shallrnaintsin an NRc"approvBd finandalrursty.arangsmen( conBistBntwih iij-Cli'i6, App*!il'1, Criterl, e ind 10, rd.regate tocovei tha estimated cosB, if icconiplii-rred hy " tiiiid'esrtv, roroceonmisrioning and decontsmination of the mill and mill *ni, i#ii"rl*ation of iny tiitinge or weste dispo+l?Fas, ground*rate1.r3-sloration as ;l;iind;;d iortrrs'ron6-iermiurr.illcnce tel. wittrin hree rnonths of NRC apprwal of a ;il6.d ,tsctim*onjoecofirmieebning plrn, the licafisoi shell eubmit, for NRC review and aonnrval, a o.poord revision to theiinenoial rurety snrngcmsnt if cctimeted costB in tha iltr'#,7o'"'Et plun *ceed the smoumt covered in tne eiietinglinencial eurety. The revis'ed'aurEty Etiall then be in effect within 3 monthe of wfitten NRG aPproval. Annuel updatos to the sunrty Emount roquyd hv. 10 QFt agl -APL".L!'IlCriteria 0 rnd ro, ir,ri'u" submmld to tri NRo at ieasi g rnenhs p1rcr to thc arurriverrary dete wtlich is iiirgnateOai.tunC * of each yssr. lf ttre NRC har iol.approy?d a propomd revlsion to the surety coy€ragi B0 dair prior io the expiration dEte of the cxisting.eurety.errengemmt the iliii'dei irtatt=eklnO ffiibxisting Eureri arrnng€ffnnt ror 1 year. Alons with Eacrt propo*d revisim or annualuidite, thE li&ncec-shall gupnrflt syPPcrting leo-tlmgntation shauring I liiifOuwn oini cristr and ttra basis rorthe cost eetimatss wi0t ediustmonq!?r inflEtion' miintanance of a rninirnum 15 percant contingency-foo, changes in cng-ineo.fng Plont' -.illiliffiF'drmed iriii iny othry.corrdiUons-af.fedipg ettimated oosts for slte dosufe. The iilil[1,*,tri;;t'L"i;-.r"*E?,:ir#Ifi iHy,EHfi [xigl{li;#1'fi g#lhg"Ix." digrnu ror Siti speciric Riiternation'and Sta6iliaatlon Cost Estimatesi ouUinee the minirnum considerations useO Uy the NRG in tha reviEw of site chsure estimataE' nE6amaUonlOecommissioning plano and annual updatcr should folhw thie outlinE. Thr cunentty approved surety lnetrumant, a Peformanea tspnd iequed hV [ational Unioniil ffiurilie b'ompsny in fivor of fire NRC, end thE associated Standby TruttAEreemont, iit"i ep,it Zg, ige7, sfrit ne contlnuoursly malntaill{in en amount not lEts than iii,isiiie fbiiie'purpose or complying-wirh 10 QFR {,Appendix A, crireria I and 10, untila raplacenront ii autnorized by tho NFIC. lApplieeble Amondmsnt$: z, 3, 5l standard operating pmcadurus rha[ D6 esrablishBd errd tollow€d for nll opnrationalproccts iitiuiti6s inlotving-nidioaaive matefials hgt a1a handled, processsd, or stored, sOPs for oiaffiilo]rat iotvilai ihall enurnorau pertinent radiauon safoty prtguoas to be.followed' ftdiffi;1y, *iittin proceOuree shall 6e established for non-operationali^{y!!i6s to include il:ff;i a;iii a-rivironinentat monnoflng, Dloassay.analy$gs,.and instrum€nt Galibrttionr. Afl irp:to-oltJ *pi oi eicn written procelure Ehali be kdpt in the rnill srea to which it epplies. Ail wriften orocpduros for bofr operational ard non-operqtional astivities shallbe revieuled ffid i'pE;GA-in u/ritlng btfre rirOiation Eafaty ofticei (RSO) b€tore lmpFm€ntatpn and utreniver s changi in-pniceOure is.proposedto enaurs thal prlqqtrlEEg!^qrotedion ;rilffilei are ixiififi;ppi'rea; h iocftion, the RSo shafl perrcirm'a documenteo revlew or alr bxistinq oparatins procedures 8t lesst annually' Befora engaging ln any adivity not previously..essessed by the NRCr tfr.e.licensse shall sd-rninistoii-cutiura ielsourceinvEniory, All disturbansEe associated ni[ the propoeed .do;;i;il".t *irr u" "orplatiO in comiliEnce with the Netional Histofic Preservat'pn Acrt (as 9.6 9.7 AUG-00-gg l5;2I From;T-1t4 F.07lZA Job-300 OFAR REGIILITONY ;OI{IMIEflON ItilHC FQFI, 3744 (7. 4) MATERIALS I,ICENSE $UPPLEMETTTARY SHEET 9E g.s amandsd) and its implernenting rtsgqetlons (38 cFR 800)'.and theArdraoologicEl Rercsrcs* proteriio['lii t"u "]*iioEa] and its implementing rsEulationg (43 CrR 7). ln order to lnsure that no unepproved disturbancs of cultufel fBsouroE8 occurB, Eny wotk. il.,irti"g in me circov;,y.f pievio.usty unknown cultural arfifads ahallcsasE. The artifaG:ts ehalt be inventoried gnt"r"fu"tEd in accordance with 36 BFR Part 800, gnd no disfurbnnce iniff oco,rr untilthE f*n.ec hqs rcceivnd c$thorizafion from the NRC to procead' The llcancee shallavoid by proiest design, whers feasibla,.the *cheolggpflFft daeionated ,oontrihutihs' ii ine report si,lioitteA by lettsr dated July 28, 1988- When it is ;;iiffiribl" t" ;;;id; fiu coaignitcd 'conributni" in the .r.po{, the licenrcr.shall inetitute a data reooy6ry program for the-t aite brscd on thdres_earch desigl eubmitted.by lsfter from c. E,-psfi orEirer[v]uolE Nuctsar to Mr. Mctvin T. Smith, UtglaBtate Hirprie Freseruation Officer (SHPO), datod APril 13, 1981. Ths lioonsoe shsll rgcover firough archeologlcal cxcevation alluqontrilrling- sites listed in ttilr;fi,tGich ara located in oiwihin 100 faet of bonor 0f60t; tp:l?i! ar€_as, construction a1res, or he perimeter of thE reclaimed tailinge impounCment. DstE r0covoly tiii*io* at oldr ehe meeting th€$e crlterla shallD€ colnPlsted prlorto ths startof any prolsst relatad Oisturbancc ufttrin 100 leet of the aite, but analysis arrd reput prcparation heed not be comPleie. Addltionally, he licans8e shall conduct such tgsting es i6 reguired to enaile tne Commlsslon is d;termini ir frosi ritas dqsignatod qs "undeteffinedn'ifl the rgpqrt and bcated witlin lggifii of preaant orknown fu-ture conatruction ereas are of su$. aignificaq€?_to wanant tirarrl-oelitinition Ji;cpntribuling." Jr't Ell calos, sueh testng shall be completed before Eny sspBd of the undsrtaking sffscts a Eite. Archeologicsl contradort $hsll be approved h writing by the Comrniesiofl. The Convnission wrllapprovc gn ercheotoglcrlcontra'cior who meets ihehirrimum ttandardc for a Pltncinal-i,rj.ii6-rtor eeitorttl in * crn Part 66, Appendix c, snd whosa qualificauons arE found EcsEpEDl€ by tn6 $HPO. Thc licpncoo ir hcrgby authoriEg(l to pos8€E5 byproduc* mstcrirl in lhe form of uranium ititiit*li.gr;ird ot#iuranium byprqd.qct w_eitb g.eqgratg! by the-licenses's milling- d;Emtion; iutiidriscg Ey thiiliocnii. .Milltalllngr ehsllnot.be trnnsforrcd from the $tr "inout *p.iitii eri6 ap[rovat of fre_NRC in thdform of a lissn*e arnEndment. ThE liceneee ihiiidalhtaln a permaln-Ent retrord of atl tran#6rg madc under the provisions of this condition. Tha licensee is hereby erempted frorn the requirements of Section 20.1902 (a) of 10 CFR illt iu 6iirBEE wit[iir rrc niill, povtded thar'all enrrancB8 to me mill are conEPicrroudy .. ooEteO in accordanCt wnn Secti6n 20,1902 (s) ard with tha u,ords, 'Any area wifiin $is mill inay contein radioactive material'' ReleaEe of aquiprnent or packageq [om the restriG*od ar€a Enell Do ln accor0sncs wlth iguiOifinas fdr pecontaminatio[ of Facilitiss and EguiPmsnt Prior to Release for U-nEIfiiilO-G;;t6rmiii*ion ot Licenses for Byprocluct, source, or SP€ciat Nudear 9.10 rIIa4E Cl BEEULATOHY CoililI$SIOH T-l 24 P.0Blel Joh-300 FAqE 5 OF 10 PAGFS NFG FORM S7.A 0-e4) .l0.1 10,2 10.s 10.4 10.5 10.6 MATERIALS LICENSE SUPPLEIIETTARY SHEET Material,,, dated Mey 1g87, or suitable elternative procEdures aPproved by he NRc prior to anY sudt ralease' $EcTloN 10: operrtlonnl confiols, Llmitr' a|rd Reetrictlons Thc mill produc*ion ratc shrll not exceed 4380 tons ol yellowcake per ye8r. All liqr|ict effluentE frcrn mill procsss buildings, with the exceptbn of sanitary wa$tgt' Ehall be ;ilil;a 16 the m11; .ir.rit oioiectr"rg"d to rne tailings impoundment. Frerboard limits for celle 1-1, 3, gnd 4A, and bnnrqe lflili,for cell 3, shall be as ststsd in becUon O.O to Rpp*ndix E of the approvcd licenso appElauon' Disposal ol metertal and equipm8lt.genEralE-d at the mill-titc rhqll bG-condudcd 8s deacribsd in tho 1;j#;8";;6tnittiri oaieJblcember 13, 1eS4 rnd Msv 23, 1995' with tha follodng addtion: A. Tha mrximum lift hiel$6$3 for materlals plac€d gY-a.l'tal!lng5.:.h{l f.lls than *foot thick. subseil;iiiilinri."rr'& ia*iri"n'C-teeirtiot* Eafi m rhsll be compasted bv tracking of hehry equipment, suchli;'Cat.Ct'6, Et East 4 drner prlot to placement of Eubsecuent lifts' ln accordance with lhe licensea's rubmittaldatod lV!nV.2!t.1993, the llaensee.ir hsfeby aurhodzed to oisposilifiiirrA"rt;addat genersieb at ticensed in situ leach facilities' subject to the lollowlng conditions: A. Disposelotwasta ls llmited to 5ff10 cubic yerda frpm a single iouroB' B. All oon1qmineted cqulpment rhdl ba ditrnentlod, cruthed, or soctioned to mininize voirt spaces."BirrE]i conHining wiit" otnii t#h soilor sludgat shall be Emptied hto the rtisposal aiei'iio ne nineje cnrltted. garrels oontahing soilqr rludgce ghall be verifiEd to n.l"u eri; filispilat - ilnets noi comptetely tull shall be filled with tailinga or soil. G. Allwagtg shall bE buried irr Cclt No. s unEs! Priorwrttton approvalia obtsinsd from the NRC for altEmate burial locations' D. Alldisposalac'tivitiet shall be.documEnted' The documantation shall ineludeY' a;*i[[il; oi-tffiiiiii Enot-he ilisposat rocauons, es rvellac allactlons requred Ev thig corrdition. An ennual *u*riri'*irt"-am*nts if waste disposed of from off'aite !6neretors shall bE gent to titE NRC' Tffi licangee ia authorizad to recsive anct process BoulEe.rtlalonaE from tnE AlllBd slgnel corooration,s uetr;illi;11ffiil fatriiv i-n?idoroance witn the amendmant requast dated June 15, 1993. SUA-1358, Amendmont No;Q Dock+t * Refetencc Numhrx AU6-06-99 15r30 From: ilHe FOFIM t74A (7"94t FAH EE6U LATC}HY COMMIEEIO}I MATERIALS LICENSE 8U FFLE]UIEIIITABY SHEET 10.7 ,10,6 10,e 10.10 10.11 10.12 10.13. The licsnsee is authorized b rocaive and procets souf,cs matorial frorn A[ied Sigl{, lUJr il;H;A[;l5in"ir, ilE;rd""* *u, tr" "msndment pqu.ept d-Etrd $Eptambsr 20, 1996' I]iil"liin-ireA nv ht ii aeea Oc*ober 30, and November 11' 1986. Thc licsnsee is authodzed to rcceivc rqd-pqcesi. Bqqrq meterlal' in accordanca with the amlnamunt requeet d*eA UarUr 5, 1997. lApplicable Amendments: 1l Tha licenEee ie authorized to receive and process BourcB meterialfrom cebot Per{ormance i6ffi;['6.i'iity il;i tsryrirto*'t pennryivanis, in aEcordanca witr the amondm€nt requEst ii-t"i'Iiriig,'i6ez,i;;,fr;iGd'ry suuriiittili drtcd Mav te' and Ausuet 6, 1Bs7' lAppllca-ble Amondments: dl The lic6n8e€ l8 euthiltred tp recaive and procccl q9!{IF- mnterialfrom tle Aehland 2 Foiffi;iititfid siit| RcmeoialAction Piogrem (FUSRAFl"site, located near Tonawanda, Nsw York, in accoroince wlth the amendrna-nt rqe'ug1t-{at?l M3y 8, 1998, as amcnded by 6rp supmiitarc Oatoiiiiay ii,.rr"u g, "tta .lrne 1i, tgga. tApp1csble Amendment 6J The llcEnsse ic cuthorized ts recoivg and,procesE soutqs.materialfrem cameco i,#;Effil',E[il Hili; sria'Fort n-opilicritiex hcqrqd.n ontsflo; Frlage, tn accordance udfh me amrnctmCIni i"quitt Oated Jdnq4, 1999; fnC'Of tF submittale dated Sepembl 14' StdteinOdiielseptem[ir2g, October 7, arnd OGtobEr 8, 19e8. Howover, the liceneeo is not authorized to recsive T Floceas ffom these facilitl€s, tlB cruBh€d carbsfl aniliiii"ntiiloln troac cunmitElr, elther 6E a FePtltilts metrricl ar rnixed i-,i *dt *"tJiitaireaOy approved for rrceipt or processing. Ths lic€nsee ir authorized to raceive end procalt€ourcs_rnaterialfrom theAghlend 1 and $ilstAre. D Formcrt, utrlizeo En"s R+irnedial Actlon pryqifl-q!_S^Illl tit"' located ilJainiiou,inUa, rle*'Vorh in accorOance with staternEnts,le.gresgnqlgl'15' snd corrnritments conuriiio'in ini amenomcnt r.gr1e*!{1ta_d Octobar 15, 1998, rs amcnded bv letterc dated lltr.m'b;ift;ibgii, Nov"mueri4, 1998, DecembergS, tggS' January 11' 1ggg, January2T, 1899, and FaEruary 1' 1999' lAppliceblc Amendmant: lOJ Tha llcansee is authorized to rccciva and procosr.gource rflqterlalfrorn rhc $t. Louit r;mil,illltitiiec ditainCmedial Adion Piosram (fqsnAll site, ilt t9g$19 with luii,im6nfi, iCprcs'enfafuves and commitmerits ccrrtainao in'tho amendmsnt rcquest-dated March 2, 1ggg, snO as imended g1d supplemented by submittals datEd June 21' 1009; Juns 29, 1999 (?); and JulY 8, lggg lAppl[cable Arnendments 11' 121 T-1 25 P.0S/eg Job-300 OF SECTTON 11: Itionitorlng, Recording, and Eoo[kBepmg Requlrements The results Of sarnpling, gnAlyses, survoys and rnonitofing, nB r€Eult$ of calDra$on of iiJipm-.nr iipo#iii?uOGlnc inspec[ionr, all m.eetingi a1d trairy.ng colflEes rsgu.ir€d bv [rjI'l-idffi aird anvtubu;idni reriEwi, invietigations,hnd conedive actione, thafl be Drxher or RefErcnec NurttbEt 1 1.1 AIJG-06-98 15r30 Ftcm;T-t?5 P.l0/2S.Job-9E0 BE{IULATOHVCo}rtllssl0ill I F1GFftlRc FOFIM 57aA {7+41 MATERIALS LICENSE SU PPLETIEITTAHY STIEET documanted, Unless oth6ni/i$B spscifled in ttre NRC regulations all such documBntation inatt UE msintiined for a period of at least five (5) yeers' 11.a The lioEneee ehall irnplcment the effluent and environmsntal rnonibring progxgmlpocifi€d in Eection i.S oittti reri51rrelrpplication, at Emanded by the subtnittel datEd June 8, 1S95, and pg revi*ed with the follarin0 modificatioffi or edditions: A, stsok sampling ehall include a determinethn of flmr rate. B. Surfcce watEr eamples ehall qlso be anelyzed semien_nually for totel and diseolved dnEi, na+gA,-ind fn-ago, sdth thr lxeeption of the Wertwcter Creek, whidr rhallbe rorpiuo unnue1y forwater or eedime'ntr ind rnalped as above A sediment ramplc sriiilnoi ue 6id' h placo of a water samplc unleis q water sample was not aveilable' G, Gfoundwflt€f sampllng shall be conduc*od in ascordsnsc with iho requiremente in Liccrtss Condition 1 1.3, D, The llganile ghallutilirc lower limits of detestion in aocardencr with Sec'tion 5 of Regulatofy Guida il.14 (Revision 1), foranalysls OJ eltluent affil'BnvironmEntal samplEs. E. The lnrpsctionu performed remipnnlally. of the critioal orifice etenn!!.V llmmitted to inihi riinnrittaldated March 15, 1986, shallhe documanted. Ttio criticalorifice#;;E ;-t'irt'U" *iitiiateo "t icart irery_2 years against a poeitive displacemcnt RooB mbtEr to obhin the required calibration curvs. [Applicable Amondment SJ 11.g The licanseg shall imflemant E groundwater dEtec{ion monitoring P.rogram to ensure . comifiance to 10 CFR prrt 40, f,ppqldixA I_t" tlsttstion monitoring Pgg_a.m*qtsil be in accdrdance udth tr€ report Entitled, 'Poirtts of Complianq, \A/hite Mese Uranium Milln" iu5mitted by lstt6r &tid Odgb€r 5, 199{, and tho following: A. The licsns€e ghall rampie monitoring wglli WMMW-6' -11, -12, -1.4' -1S, snd'17, on " quirt.rlttalis, Sam'ptes shall beinafized for drlg1idg, Pots.tsium, nickel, end uranium, anit ne i{sult6 of such'sampling snatt bC inclu0cd with the anvlronmental monitoring rcportr submitted in accordanco wiilt 10 CFR 40.65' ln addiUon, the licEnsee shall implement a monitoring program of the leak detec'tion syEtEmS for the diaPocalcslls as follows: B. The licsnsEe $hall mEasurs and rBcord me "oapm to fluid" in eaclr of ffic Eltlngl disporal cefst ndpipes on I wg€l{y basie. lf sufficienthuitl is present in the leak detecton systEm [U0S) of 6ny csll, the lienniee shallpump fluid from me LDS, t0 ms Bxl€nt raasonably i[ssi'Otl.iriO redorO the volume of fiuld iecovsred. Any fluid pumPsd from an LDS shallbe rotunred to a disPoaalcBll' ll fluid is oumoed from an LD$, the licensee shallE€lculate fiE flour rat6 by clividing th8 racorUeC'votdme of fluid recovered by the elaps€d time slnce fluid was last pumped or Dockct or Rsfo(strce Numb€r hintd ot rccyclcil prpcr AU6-00-gg I 5 ;39 BEGU LATOnY r.ouutislotl P^GE IHHo ronM 0744 {7.94) 11,4 MA]IERIALS LICENSE EUPPLEMET{TAHY SHEET incraareg in tho LDS fluld levele wsre recorded, whidte\rBr i5 he morE reoent. The liceneee shall dooument the retultr of thic calculation. Upon the initial pumping of fluid from an LD$, the licarrsee shall collsct a fluid ggmplo.and iia-lrr.u the fluii for'pH-rnd thc pernmeters listed ilt Fr.egrap_qA of.this licsnte.condition. iniiiceneee shallditermine wlr'eflrer tre LD$ fluid originated from the disposal cell by araattining if the oollec,ted fluid conieins elevebd lrvels of the canstituents listed in p.r"graph i of thie lieenae corrdition or hes a pH leval lags than 5.0- lf eilhor elevstsd coniEtu}* bvels ora pi,l lesg than 5,0 is onsirvod, hs licensee ahell asgume that the diryoulcdl ic the origin of the fluid' lf tlre LD$ fluld is dctrrminod not.b have originated lrern the disposalcEll, the licsn*ee shall continue wlth wEehly mossurernsnts of "depth to fluld'in tho LD$ rtcndpipes' The licengss rhall confinn, on an lnnual basiE, that flqid'from the dispoarl cell he* not entered the LDS by collecting (to thB extent posstbE) and analyzhg an LDS fluld pamplu fpr the abovc rtrtcd plremotart Upon indbatisn that thc LDS fluida originatad from the diaPoeal esll, the liccrrsee shall ditermine lhc flow rats through the lingr by th€ calculttlon method ln'paragraph E sf thir licenso cundition. lf tho flow nte is equal to or greatli0ran one gallon pcr minute, the 1' Evaluata he cause of he liner distrusE and ta[e appropriata qnd timsly actions t0 mltigate thp loah and eny eonaogu€nt potantiil impads; 2. Contnue to rflEesure ancl record LDS "depth tu fluid" mea$urements weckly; and 3. Notify NRC by lclsphone wlthln 46 hours, in accordarree with Lican*e Condition 9.3, and iubmit e written report within 30 days of notifyhg NRC by telephone, in Bccordenoo with Licdnse ConCltlon 9.2. The writterr report ahall includa a desaiption of the mltigative action(B) teken and a discuesion of the mitigative adion rEEults. lf hc cabulatatt llorv fAt€ iB leEa than one gallon pir mlnut€, the licen*tr shall contirrue with waekly m€aEur6m6nE of "depth to fluid'in tha LDS stsndPipes. All semplim, analyeic, and evaluation of LD$ tluids shallbe documented and ratained oneite until liceneE termlnatlon for NRC lnspecthn. [Applicable Amendment E] Annually, the licensee shall colled, during mill operstions, a eet of ?f samPles Pvelln.g eioht hdiirs of sampling. at a high collec[ion flow rate (i.e., greaErthen or egualto 40 llters pel minute), in roufineft or freqlantly occupied areqs of q€ mm, Tness samplss EhEll DE bnaryzed fii gross alpha. ln addition, with each change in mill faed mstefial or at lEaat anrutelly, freIiEEnsEe shall analyre the mill faBd or proouc0on ProquGI for u-nal Tr}eso, Ra-226;'and Ph210 snd us6 thi enslysis results to sssess the fundemenhl conatituent composition of air sample partioulatee, D. E. Do+kot or Rsforonce Nurnber AU0-00-E9 l5r1? Fron;T-l 25 ?.12/2,3 Job-300 HRC F(IRM 37IIA {7'94' REGU LATOHY CO}IIi|i$SIOH OF MATERIALS LICENSE SUPPLEI{EHTARY SIIEET [Applicable Amendment 7l Calibfifron of in.plent sir and redietion monitorin0 s-guipment-shfl.ba.-perf.9fined ar spocified in thc ticcnie rrnewalapplicetion, unddtSbction 3.0 of the'Rgdiqtim Protection d.ced;d ijanual,"with thc cxception that in-planteir 6amplin0 equipment shall be "elibraiiA at lEset qirartrrti snd airsEmptlng equipment cheiks shEll be documented. The liconeeo Bfiallperfcrm rn annuelALARA audit of the radiation sgfeU program in EccordEncs with Ragulatsry Suide 8.31. 11.5 11.8 12.1 gECTloNlE: ReportingRequlremgnt3 The licensee shall submit to NHC for revicw, by June 3[i, 1'897, a detailed raclemetion plan forthe Sumorfiod tailllngs disposal arsa which inoludoc the folhring: A. c, D. F. G A post-operatbns intsrim etabilizstion plan whlch dateils mdhoda to preventwind End water onirkln and rcohargs oithe taiiings area- A plan lo dotEnnine fir bost mcthodology to dewnter and/or qoneolidEta lhe tailinge Plan gnd sross"gectionslvieh,E of a finel mclamation co\r€rwhicft detrils ths locgthn ard alevEtiorr of tailingo. The plan shal!indude detaile on eo\orthicknoet, Plyeic* &eract6tistice of cover matEriale, proposed tasting of eovsr materiale. (gpecifications and quglity assursnqe), the cstim*cd volumes of c,ovor matefigle and their availabtity gnd location. D€tgipd plans for plscsment of rock or vegetativo cov€r 0n tho final reclaimEq tailings pile snd mlll rlte eree. A propOSed implementgtion schedule tor ltems A firough D above whictt defines the B€quencs of ovents qnd oxpected Ume ranges. An analysis to shonr thet the proposed Upe and thickness of soil covgq 1s adoquats t0 orovlde-attenuation of radon and rs aoeQirato to at'utt loilg-term ttablllty, es well as ln analyEio and proposal on methodology and tirna required to rEetora ground water in conforrtanc€ to rBgulEtory rBquirsmGnE. The licanseB shall include I detailsd co8t anElysi8 of 6ach pilaEo of the rodamatisn plan to includs contractor costs, projected costt of inflation baeedupon fie sdledule ifopOSed in itann E, e pfoposed oonflngency cost, ano n€ costs of long'186, maintenance and monitoring. Liccnse Number AU6-00-Ei l5;1$ From;T-ll5 P.1E/2? Jsb-300 ftiRc FOFM 374A (z-B{OF MATEBIALS LICEHSE sUPPLEMETITARV s}TEET tZ.Z Tho lhcncoc shsll subrnit s detailed decomrnietioning plan to the NRC at least hrdve (12) montht prior to Plannsd final chutdown of mill operatlons' FOR THE fiIJCLEAB/BEGULATORY COMMISSIONAfun::orw .,7:_A9'..I7 n Surmeier, Unrnium Reoovery and Lowlsvel WBrtr Erqdr Diviaion of Wa$c Management Office of Nuggdr irlateilat Selety and $aEguardr i fuT-c; UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555r(XDl September 25, 1998 Mr. Ear! E. Hoellen, President lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 --.1 .__ SUBJECT: AMENDMENT I TO SOURCE MATERIAL LICENSE SUA-1358, WHITE MESA URANIUM MILL - MODIFICATIONS TO TAILINGS IMPOUNDMENT LEAK DETECTION MONITORING PROGRAM Dear Mr. Hoellen: The U.S. Nuclear Regulatory Commission (NRC) staff has completed its review of an amendment request submitted by lnternational Uranium (USA) Corporation (lUC) for the \Mite Mesa uranium mill. By letter dated January 9, 1998, lUC requested approval of a change in its tailings impoundment leak detection monitoring program, as currently required under License Condition No. 11.3 of NRC Source Material License SUA-1358. IUC amended its application by letters dated February 26 and September 14, 1998, in response to comments from, and discussion with, the staff. Based on its review, the NRC staff finds this request acceptable with slight modifications. These modifications were agreed to by IUC by telephone on July 16 and September 2, 1998. The details of IUC's amendment request are discussed in the staffs Technical Evaluation Report (TER). The TER documents the basis for the staffs approval of this request and is provided as Enclosure 1. Therefore, pursuant to Title 10 of the Code of Federal Regulations, Part 40, NRC Source Material License SUA-1358 is hereby amended by revising License Condition No. 1 1.3. A!! other conditions of this license shall remain the same. The license is being reissued to incorporate the above modification (Enclosure 2). An environmental review was not performed since this action is categorically excluded under 10 CFR 51.22(c)(11). -/. ./,., " qj,'.'b''t'/ r'lt .. a\ -J ' 9'e''"' ' lj1' Ir E. Hoellen lf you have any questions regarding this letter or the enclosures, please contact Mr. James Park, the NRC Project Manager for the White Mesa site, at (301) 415-6699. Sincerely, -2- ;J Uranium Recovery Branch Division of Waste Management Office of Nuclear Material Safety and Safeguards Docket No.40-8681 SUA-1358, Amendment No. 8 Enclosures: As stated (2) cc: hlSindair, UT M.Rehmann, IUC C.Crist, Ute Mountain Ute Tribe EPA TECHNICAL EVALUATION REPORT DOCKET NO. 40-8681 LICENSEE: lnternational Uranium (USA) Corporation FACILIW: \Mite Mesa Uranium Mill PROJECT MANAGER: James Park L]CENSE NO. SUA.1358 TECHNICAL REVIEWERS: Michael Layton SUMMARY AND CONCLUSIONS: As part of the corrective actions taken in response to a Notice of Violation issued by NRC on August 12, l99T,lnternational Uranium (USA) Corporation (lUC) requested an amendment to Source Material License No, SUA-1358 for the White Mesa uranium mill. By letter dated January 9, 1998, IUC requested approval of a change in its tailings impoundment leak detection monitoring program, as currently required under License Condition No. 11.3 of SUA-1358. IUC amended its application by letters dated February 26 and September 14, 1998, in response to comments from, and discussion with, the staff. The staff has reviewed IUC's proposal and finds it acceptable with slight modifications. These modifications were discussed with IUC and agreed to in telephone calls on July 16 and September 2, 1998. DESCRIPTION OF LICENSEE'S AMENDMENT REQUEST: By letter dated January 9, 1998, lUC requested an amendment to SUA-1358 to modify the tailings impoundment leak detection monitoring program as currently required under License Condition No. 1 1.3. By this submittal, IUC proposed the following monitoring program: 1. Weekly measurements of the depth to fluid in the leak detection standpipes would be taken for each disposal cell. lf sufficient fluid is present to pump, then IUC would pump the fluid out, record the volume of fluid recovered, and return the fluid to the same or another disposal cell. 2. The estimated flow rate through the disposal liner would be calculated by dividing the vol,rme of fluid recovered by the elapsed time since the standpipe was pumped last. An estimated flow rate of one gallon or more per minute would be an indication of potential liner distress. 3. lf potential liner distress is identified, then IUC would evaluate and report contributing causes and, if appropriate, increase the sampling frequency of the point-of-compliance Enclosure 1 (POC) wells on the down-gradient edge of the disposal area in a manner and duration as warranted by the report. Following discussions with the NRC staff by telephone, IUC modified its proposal, by letters dated February 26 and September 14, 1998, in response to the staffs comments. IUC proposed that, following pumping from the standpipe, the fluid would be analyzed for the POC parameters (chloride, potassium, nickel, and uranium) and pH, if this was the first time that fluid ever had been recovered from the standpipe. lf these analyses indicated that the likely source of the fluid was the disposal cell, either by elevated levels of the POC constituents or by a pH level below 5.0, then IUC would calculate the estimated flow rate and analyze for potential liner distress as described in ltem 2 above. lf the analyses did not point to the cell as the likely source, then IUC proposed to analyze any recovered fluid from that cell on an annual basis for the POC parameters and pH, as positive confirmation that the fluid was not originating from that cell. TECHNICAL EVALUATION: ln general, the staff finds IUC's proposed approach acceptable. The staff recognizes that monitoring of the liner leak detection system serves as an early warning of potential liner failure and does not constitute a monitoring program for initiating ground-water corrective action. The staff also agrees that the primary method of confirming liner distress or failure should be the determination of a flow rate through the liner after the origin of the fluid in the leak detection system is determined. The licensee's proposed monitoring program was evaluated by constructing a decision flow chart (Figure 1), based on information supplied by the licensee. The licensee's approach appears to address current site conditions and potentialfuture events. However, the staff recommended minor modifications to the licensee's proposal to address reporting requirements of 10 CFR 40.60(b), and additional measures to mitigate the potential impact from a confirmed liner failure. These included: (1) specifying the time frames for reporting leaks from an impoundment to NRC (the initial telephone report within 48 hours and a written report within 30 days); and (2) retaining the analysis results and flow-rate calculations on-site for NRC inspection. Figure 1 includes these recommended changes. IUC agreed to these modifications by telephone on July 16 and September 2, 1998. IUC's proposed modifications to its leak detection system monitoring program for its tailings impoundments will not impact the approved ground-water detection monitoring program for the site. IUC will continue to be required to sample the POC wells on a quarterly basis and to analyze those samples for the indicator parameters identified above. IUC has indicated that it may increase the sampling frequency of the POC wells as part of its response to an identified leak from a disposal cell. The staff will address any modification to the ground-water detection monitoring program at that time. 2 RECOMMENDED LICENSE CHANGE: Pursuant to Title 10 of the Code of Federal Regulations, Part 40, Source Material License SUA-1358 will be amended by modifying License Condition No. 1 1.3 as follows: 11.3 The licensee shall implement a ground-water detection monitoring program to ensure compliance to 10 CFR Part 40, Appendix A. The detection monitoring program shall be in accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, and the following: A. The licensee shall sample monitoring wells WMMW-S, -1 1, -12, -14, -15, and -17, on a quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium, and the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. ln addition, the licensee shall implement a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to the extent reasonably possible, and record the volume of fluid recovered. Any fluid pumped from an LDS shall be returned to a disposal cell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing the recorded volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. C. Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license condition. The licensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels or a pH less than 5.0 is observed, the licensee shall assume that the disposal cel! is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an annual basis, that fluid from the disp'osal cell has not entered the LDS b1, collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. D. Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. lf the flow rate is equal to, or greater than, one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; 2. Continue to measure and record LDS "depth to fluid" measurements weekly; and 3. Notify NRC by telephone within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notifying NRC by telephone, in accordance with License Condition 9.2. The written report shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results. lf the calculated flow rate is less than one gallon per minute, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. E. All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. [Applicable Amendment: 8] ENVI RONMENTAL ]MPACT EVALUATION: The change in IUC's tailings impoundment leak detection program will not result in (1) a significant change or increase in the types or amounts of effiuents that may be released offsite; (2) a significant increase in individual or cumulative occupational radiation exposure; (3) a significant construction impact; or (4) a significant increase in the potential for or consequences from radiological accidents. An environmental review was not performed, since actions meeting these criteria are categorically excluded under 10 CFR 51.22(c)(11). Measure "depth to fluid" in LDS weekly. Record measurement. Fluid detected? Flow rate equal to or greater than one gallon per minute? ls fluid from the impoundment? Collect fluid sample. Analyze for POC parameters and pH. Record information. Compare analysis results to impoundment constituent levels and pH equalto 5.0 Can fluid be pumped? ls fluid from the impoundment? Collect and analyze fluid sample annually. Record informalion. Pump fluid. Estimate volume recovered. Calculate flow rate. Record information. Was LDS pumped previously? 1. Evaluate cause of liner distress and take mitigative actions. 2. Gontinue with weekly LDS fluid level measurements. 3. Record information and retain for NRC inspection. 4. Report leak to NRC. Figure 1. Flowchart of Final Revised Tailings lmpoundment Leak Detection Monitoring Program NRC FORM 374 (7-e4)U.S. NUCLEAR REGULATORY COMMISSION MATERIALS LICENSE PAGEIOFqPAGES Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93-438), and Title 10, Code of Federal Regulations, Chapter I, Parts 30,31, 32, 33,34,35,36,39,40, and 70, and in reliance on statements and representations heretofore made by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and special nuclear material designated below; to use such material for the purpose(s) and at the place(s) designated below; to deliver or transfer such material to persons authorized to receive it in accordance with the regulations of the applicable Part(s). This license shall be deemed to contain the conditions specified in Section 183 of the Atomic Energy Act of 1954, as amended, and is subject to all applicable rules, regulations, and orders of the Nuclear Regulatory Commission now or hereafter in effect and to any conditions specified below. Licensee lnternational Uranium (USA) Corporation [Applicable Amendments: 2] 6425 S. Highway 191 P.O. Box 809 Blanding, Utah 84511 [Applicable Amendments: 2] 3. License Number SUA-1358, Amendment No. 8 4. Expiration Date March 31,2OOT 5. Docket or Reference No.40-8681 6. Byproduct, Source, and/or Special Nuclear Material SECTION 9: 9.1 9.2 9.3 7. Chemical and/or Physical Form 8. Maximum Amount that Licensee May Possess at Any One Time Under This License UnlimitedNatural Uranium Any Adm i n istrative Cond itions The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan County, Utah. All written notices and reports to the NRC required under this license, with the exception of incident and event notifications under 10 CFR 20.2202 and 10 CFR 40.60 requiring telephone notification, shall be addressed to the Chief, Uranium Recovery Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated August 23, 1991, as revised by submittals dated January 13, and April 7, 1992, November 22, 1994, July 27, 1995, December 13, and December 31, 1996, and January 30, 1997, which are hereby incorporated by reference, and for the Standby Trust Agreement, dated April 29, 1997, except where superseded by license conditions below. Whenever the word "will" is used in the above referenced documents, it shall denote a requirement. [ApplicableAmendment:2] A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: 9.4 (1) Make changes in the facility or process, as presented in the application. REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number (2) Make changes in the procedures presented in the aPplication. (3) Conduct tests or experiments not presented in the application. B. The licensee shall file an application for an amendment to the license, unless the following conditions are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in this license, or impair the licensee's ability to meet all applicable NRC regulations. (2) There is no degradation in the essential safety or environmental commitments in the license application, or provided by the approved reclamation plan. (3) The change, test, or experiment is consistent with the conclusions of actions analyzed and selected in the EA dated February 1997. C. The licensee's determinations concerning Part B of this condition, shall be made by a "Safety and Environmental Review Panel (SERP)." The SERP shall consist of a minimum of three individuals. One member of the SERP shall have expertise in management and shall be responsible for managerial and financial approval changes; one member shall have expertise in operations and/or construction and shall have responsibility for implementing any operational changes; and, one member shall be the corporate radiation safety officer (CRSO) or equivalent, with the responsibility of assuring changes conform to radiation safety and environmental requirements. Additional members may be included in the SERP as appropriate, to address technical aspects such as health physics, groundwater hydrology, surface-water hydrology, specific earth sciences, and other technical disciplines. Temporary members or permanent members, other than the three above-specified individuals, may be consultants. D. 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 SERP, that provide the basis for determining changes are in compliance with the requirements refened to in Part B of this condition. The licensee shallfumish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shall function in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] NfiC FORM 374A (7-94) 9.7 9.5 u.s.REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET Docket oaR-eferenct The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at least 3 months prior to the anniversary date which is designated as June 4 of each year. lf the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety arrangement for 1 year. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in engineering plans, activities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC approved reclamation/decommissioning plan or NRC approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in favor of the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be continuously maintained in an amount not less than $11,469,859 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacemeni is authorized by the NRC. [Applicable Amendments: 2, 3, 5] Standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. SOPs for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and 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 procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preservation Act (as 9.6 9.8 9.9 9.10 REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur until the licensee has received authorization from the NRC to proceed. The licensee shall avoid by project design, where feasible, the archeological sites designated "contributing" in the report submitted by letter dated July 28, 1988. When it is not feasible to avoid a site designated "contributing" in the reporl, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preservation Officer (SHPO), dated April '13, 1981. The licensee shall recover through archeological excavation all "contributing" sites listed in the report which are located in or within 100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at each site meeting these criteria shall be completed prior to the start of any project related disturbancewithin 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shall conduct such testing as is required to enable the Commission to determine if those sites designated as "Undetermined" in the report and located within 100 feet of present or known future construction areas are of such significance to warrant their redesignation as "contributing." ln all cases, such testing shall be completed before any aspect of the undertaking affects a site. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set forth in 36 CFR Part 66, Appendix C, and whose qualifications are found acceptable by the SHPO. The licensee is hereby authorized to possess byproduct material in the form of uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. Mill tailings shall not be transferred from the site without specific prior approval of the NRC in the form of a license amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. The licensee is hereby exempted from the requirements of Section 20.1902 (e) of 10 CFR Parl20 for areas within the mill, provided that all entrances to the mill are conspicuously posted in accordance with Section 20.1902 (e) and with the words, "Any area within this mill may contain radioactive material." Release 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 or Termination of Licenses for Byproduct, Source, or Special Nuclear Material," dated May 1987, or suitable altemative procedures approved by the NRC prior to any such release. NRC FORM 374A (7-94) 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 u.sQr-een REGuLAToRY coMMrssroN MATERIALS LICENSE SUPPLEMENTARY SHEET sECTloN 10: Operational Controls, Limits, and Restrictions The mill production rate shall not exceed 4380 tons of yellowcake per year. All liquid effluents from mill process buildings, with the exception of sanitary wastes, shall be retumed to the mill circuit or discharged to the tailings impoundment. Freeboard limits for Cells 1-1, 3, and 4,A, and tonnage limits for Cell 3, shall be as stated in Section 3.0 to Appendix E of the approved license application. Disposal of material and equipment generated at the mill site shall be conducted as described in the licensee's submittals dated December 12, 1994 and May 23, 1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet thick. Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. ln accordance with the licensee's submittal dated May 20, 1993, the licensee is hereby authorized to dispose of byproduct material generated at licensed in situ leach facilities, subject to the following conditions: A. Disposal of waste is llmited to 5000 cubic yards from a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Barrels containing waste other than soil or sludges shall be emptied into the disposal area and the barrels crushed. Barrels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for altemate burial locations. D. All disposal activities shall be documented. The documentation shall include descriptions of the waste and the disposal locations, as well as all actions required by this condition. An annual summary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. The licensee is authorized to receive and process source materials from the Allied Signal Coiporation's Metropolis, lllinois, facility in accordance with the amendment request dated June 15, 1993. The licensee is authorized to receive and process source material from Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated October 30, and November 11, 1996. The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. [Applicable Amendments: 1] License NumbEr Docket oi R REGULATORY COMMISSION License Number Docket or Reference NumberMATERIALS LICENSE SUPPLEMENTARY SHEET 10.9 The licensee is authorized to receive and process source materialfrom Cabot Performance Materials'facility near Boyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended by submittals dated May 19, and August 6, 1997. [Applicable Amendments: 4] The licensee is authorized to receive and process source material from the Ashland 2 Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonawanda, New York, in accordance with the amendment request dated May 8, 1998, as amended by the submittals dated May 27 , June 3, and June 1 1 , 1998. [Applicable Amendment: 6] 10.10 sECTtoN 11: Monitoring, Recording, and Bookkeeping Requirements 11.1 The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any subsequent reviews, investigations, and corrective actions, shall be documented. Unless otherwise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 1 1.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmental samples. E. The inspections performed semiannualry of the critical oriflce assembly committed to in the submittal dated March 15, 1986, shall be documented. The criticalorifice assembly shall be calibrated at least every 2 years against a positive displacement Roots meter to obtain the required calibration curve. [Applicable Amendment: 5] The licensee shall implement a groundwater detection monitoring program to ensure compliance to 10 CFR Part 40, Appendix A. The detection monitoring program shall be in 11.2 11.3 NRC FORM 374A (7-94) REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, and the following: A. The licensee shall sample monitoring wells WMMW-S, -11, -12, -14, -15, and -17, on a quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium, and the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. ln addition, the licensee shall implement a monitoring program of the leak detection systems for the disposal cells as follows: B. The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. lf sufficient fluid is present in the leak detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to the extent reasonably possible, and record the volume of fluid recovered. Any fluid pumped from an LDS shall be returned to a disposal cell. lf fluid is pumped from an LDS, the licensee shall calculate the flow rate by dividing the recorded volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. C. Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license condition. The licensee shall determine whether the LDS fluid originated from the disposal cell by ascertaining if the collected fluid contains elevated levels of the constituents listed in paragraph A of this license condition or has a pH level less than 5.0. lf either elevated constituent levels or a pH less than 5.0 is observed, the licensee shall assume that the disposal cell is the origin of the fluid. lf the LDS fluid is determined not to have originated from the disposal cell, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. The licensee shall confirm, on an annual basis, that fluid from the disposal cell has not entered the LDS by collecting (to the extent possible) and analyzing an LDS fluid sample for the above stated parameters. D. Upon indication that the LDS fluids originated from the disposal cell, the licensee shall determine the flow rate through the liner by the calculation method in paragraph B of this license condition. lf the flow rate is equal to or greater than one gallon per minute, the licensee shall: 1. Evaluate the cause of the liner distress and take appropriate and timely actions to mitigate the leak and any consequent potential impacts; 2. Continue to measure and record LDS "depth to fluid" measurements weekly; and 3. Notify NRC by telephone within 48 hours, in accordance with License Condition 9.2, and submit a written report within 30 days of notifying NRC by telephone, OFU.S. E. REGULATORY COMMISSION License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number in accordance with License Condition 9.2. The written report shall include a description of the mitigative action(s) taken and a discussion of the mitigative action results. lf the calculated flow rate is less than one gallon per minute, the licensee shall continue with weekly measurements of "depth to fluid" in the LDS standpipes. All sampling, analysis, and evaluation of LDS fluids shall be documented and retained onsite until license termination for NRC inspection. [Applicable Amendment: 8] Annually, the licensee shall collect, during mill operations, a set of air samples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equal to 40 liters per minute), in routinely or frequently occupied areas of the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in mill feed material or at least annually, the licensee shall analyze the mill feed or production product for U-nat, Th-230, Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the "Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shal! be calibrated at least quarterly and air sampling equipment checks shall be documented. The licensee shall perform an annual ALARA audit of the radiation safety program in accordance with Regulatory Guide 8.31. 12: Reporting Requirements The licensee shall submit to NRC for review, by June 30, 1997, a detailed reclamation plan for the authorized tailings disposal area which includes the following: A. A post-operations interim stabilization plan which details methods to prevent wind and water erosion and recharge of the tailings area. B. A plan to determine the best methodology to dewater and/or consolidate the tailings cells prior to placement of the final reclamation cover. C. Plan and cross-sectional views of a final reclamation cover which details the location and elevation of tailings. The plan shall include details on cover thickness, physical characteristics of cover materials, proposed testing of cover materials (specifications and quality assurance), the estimated volumes of cover materials and their availability and location. D. Detailed plans for placement of rock or vegetative cover on the final reclaimed tailings pile and mill site area. 11.4 1 1.5 11.6 SECTION 12.1 Nnc ronu ozcn (7-94) U.S.REGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number E. A proposed implementation schedule for items A through D above which defines the sequence of events and expected time ranges. F. An analysis to show that the proposed type and thickness of soil cover is adequate to provide attenuation of radon and is adequate to assure long-term stability, as well as an analysis and proposal on methodology and time required to restore ground water in conformance to regulatory requirements. G. The licensee shall include a detailed cost analysis of each phase of the reclamation plan to include contractor costs, projected costs of inflation based upon the schedule proposed in item E, a proposed contingency cost, and the costs of long-term maintenance and monitoring. 12.2 The licensee shall submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations. FOR THE NUCLEAR REGULATORY COMMISSION o.*W Division of Waste Management Office of Nuclear Material Safety and Safeguards UNITED STATES NUCLEAR REGU]ATORY COMMISSION wASHtNGTON, D.C. 20555-OOOi August 28, 1998 Mr. Earl E. Hoellen, President lnternational Uranium (USA) Corporation lndependence Plaza, Suite 950 1 050 Seventeenth Street Denver, Colorado 80265 AMENDMENT 7 TO SOURCE MATERIAL LICENSE SUA-1358, WHITE MESA URANIUM MILL - MODIFICATIONS TO IN-PLANT MONITORING PROGRAM Dear Mr. Hoellen: The U.S. Nuclear Regulatory Commission (NRC) staff has completed its review of an amendment request submitted by lnternational Uranium (USA) Corporation (lUC) for the VUhite Mesa uranium mill. By letter dated December 3, 1997, and subsequently revised by letter dated March 23, 1998, IUC requested approvalfor a change in the in-plant radiological monitoring program at the mill. Based on its review, the NRC staff finds this request acceptable with slight modifications. These modifications were agreed to by IUC by telephone on July 20, 1998. The details of IUC's amendment request are discussed in the staffs Technical Evaluation Report (TER). The TER documents the basis for the staffs approval of this request and is provided as Enclosure 1. Therefore, pursuant to Title 't0 of the Code of Federal Regulations, Part 40, NRC Source Material License SUA-1358 is hereby amended by revising License Condition No. 1 1.4. All other conditions of this license shall remain the same. The license is being reissued to incorporate the above modification (Enclosure 2). An environmental review was not performed since this action is categorically excluded under 10 CFR 51.22(c)(11\. ,'\ tr\()" -;\ rjjc.,ii:'1i,1 (:,., , l';' ,'-,.7 '/': ^''' frP', a /s Eff 1sl3 \U, Jffil,it'\''o. nadistion\cl Gontrol \4\\e'\Qr,q., E. Hoellen lf you have any questions regarding this letter or the enclosures, please contact Mr. James Park, the NRC Project Manager for the \A/hite Mesa site, at (301) 415-6699. Sincerely, +"m"d,4 Uranium Recovery Branch Division of Waste Management Office of Nuclear Material Safety and Safeguards Docket No. 40-8681 SUA-1358, Amendment No. 7 Enclosures: As stated (2) cc: W.Sinclair, UT M.Rehmann, IUC -2- TECHNICAL EVALUATION REPORT DOCKET NO. 40-8681 DATE: August21,1998 LICENSEE: lnternational Uranium (USA) Corporation FACILITY: White Mesa Uranium Mill LICENSE NO. SUA.1358 PROJECT MANAGER: James Park TECHNICAL REVIEWER: Duane Schmidt SUMMARY AND CONCLUSIONS: As part of its corrective actions taken in response to a Notice of Violation (NOV) issued by NRC on August 12, l99T,lnternational Uranium (USA) Corporation (lUC) requested an amendment to Source Material License No. SUA-1358 for the White Mesa uranium mill. By letter dated December 3, 1997, IUC requested approval of a proposed modification to the in-plant air monitoring program committed to in its approved license application. IUC provided additional information by letter dated March 23, 1998, in response to comments received from the NRC staff. The staff has reviewed IUC's proposal and found it acceptable with slight modifications. These modifications were discussed with IUC and agreed to in a telephone call on July 20, 1998. DESCRIPTION OF LICENSEE'S AMENDMENT REQUEST: By letter dated December 3, 1997, IUC requested an amendment to SUA-1358 to modify in-plant air monitoring commitments made in its approved license application. tUC's request was part of its corrective actions taken in response to an NOV issued by the NRC on August 12, 1997, as.a result of the staffs routine inspection of the White Mesa mill on July 15-17, 1997. By letter dated March 23, 1998, IUC provided additional information in response to a February 13, 1998, written request from the NRC staff. By its submittals, lUC proposed that License Condition 11.4 of SUA-1358 be revised, in part, to require that (1) annual air samples be taken, during operational periods, in routinely or frequently occupied areas and analyzed for gross alpha radioactivity, and (2) isotopic analyses of operational mill feed or production product be performed for natura! uranium, thorium-23O, radium-226, and lead-210 to assess the composition of air particulates. Depending on the results of the isotopic analyses, derived air concentration (DAC) values would be determined for different mixtures of radionuclides, with the result that various areas in the mill would have a DAC value applied that is most appropriate for the radionuclide mixture likely to be present in air samples in that area. IUC considers that the mill site can be separated into Enclosure 1 four areas for this purpose: (1) the ore handling and storage area, where uranium and its progeny is expected to be in equilibrium; (2) the uranium precipitation circuit, where only soluble uranium is expected to be present; (3) the uranium drying, packaging, and calciner area, where only uranium in a moderately insoluble form would be present; and (4) the tailings area, where uranium and its progeny would be present in disequilibrium, as separation has been attained. IUC stated that approval of its proposed modifications will result in the collection of more meaningful isotopic data than that currently collected, and at a reduced expense to the company. TECHNICAL EVALUATION: Curently, in its approved license application, IUC has committed to taking an annual eight-hour, in-plant airborne radioactivity sample and analyzing the sample for natural uranium, thorium-230, radium-226,lead-210, and polonium-210. ln accordance with License Condition No. 1 1.4, IUC is authorized to eliminate this annual sample, during extended periods of mill standby, if routine airborne sampling show levels below ten percent of the appropriate 10 CFR Parl20limits. At issue in the licensee's proposal is an appropriate method for performing measurements to determine the isotopic composition of the airborne radioactive particulates in plant areas to which workers are, or may be, exposed. As a result of the uranium extraction process in the mill, the concentrations of the airborne radioactive particulates are expected to vary around the mill. Appropriate area-specific DACs (based on the mixture of radionuclides present) can be used (1) to determine whether measured air particulate concentrations (often gross alpha measurements) are acceptable, and (2) in the determination of worker radiation exposures. These determinations are necessary primarily for the licensee to ensure compliance with the worker dose limits of 10 CFR Part 20, Subpart C. IUC believes that the ability to sample much larger quantities of the mill feed or product materials would provide at least as accurate information regarding the radionuclide composition of potential airborne contaminants as does the current air sampling method. The NRC staff agrees that the larger sample sizes possible with the proposed method should improve the validity of the results on radionuclide composition. The staff also considers that the sampling of the mill feed materials should allow for the early identification of materials that are significantly different, in terms of radionuclide composition, from natural ores processed at the mill, an issue of some importance considering the processing of alternate feedstock materials. As a result, IUC would be able to evaluate the need for changes to DAC values for various areas of the plant commensurate with the material being processed. Thus, the NRC staff concludes that the proposed approach should be valid for the purpose of determining DAC values for the different areas of the mill. The staff cautions that the use of this approach depends on accurate determinations, in advance, of how the isotopic composition of the mill feed and product may impact the isotopic composition of air particulates in the different mill areas. 2 A second issue with the proposed license amendment is the appropriateness of the proposed approach for extended periods of mill standby. IUC did not specifically address this issue in its submittals. However, during mill standby, there would be no millfeed or product to sample. Thus, it appears to the NRC staff that, if isotopic results are needed for DAC or dose calculations during periods of standby, the licensee can make use of previously determined values, or base calculations on other knowledge of the likely airborne contaminants during standby conditions. Such an approach would generally be acceptable. Finally, approval of this request will not impact the regular weekly and monthly in-plant radiation monitoring conducted by lUC. Therefore, the staff finds IUC's proposed approach to be acceptable. However, the staff considers that an annual analysis of mill feed or product materials may not be frequent enough, in light of IUC's past and anticipated future processing of various alternate feed materials in addition to natural uranium ore. Therefore, the staff will require that IUC perform an isotopic analysis of mill feed or product materials any time a new feed material is introduced into the mill process. IUC agreed to this modification by telephone on July 20, 1998. RECOMMENDED LICENSE CHANGE: License Condition 11.4 of SUA-1358 will be modified, in part, as follows: Annually, the licensee shall collect, during mill operations, a set of air samples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equal to 40 liters per minute), in routinely or frequently occupied areas of the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in mill feed material or at least annually, the licensee shall analyze either the mill feed or production product for U-nat, Th-230, Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] ENVIRONMENTAL IM PACT EVALUATION : Because this change in IUC's in-plant radiation monitoring program will not result in (1) a significant change or increase in the types or amounts of effluents that may be released offsite; (2) a significant increase in individual or cumulative occupational radiation exposure; (3) a significant construction impact; or (4) a significant increase in the potential for or consequences from radiological accidents, an environmental review was not performed since actions meeting these criteria are categorically excluded under 10 CFR 51.22(c)(11). NRC FORM 374(7-94\ '.REGULATORY COMMISSION 1 or B pncrs MATERIALS LICENSE Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93-438), and Title 10. Cocle of Federal Regulations, Chapter I, Parts 30,31,32,33,34,35,36,39,40, and 70, and in reliance on statements and representations heretotbre made by the Iicensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and special nuclear material designated below; to use such material for the purpose(s) and at the place(s) designated below; to <Jeliver or transfer such material to persons authorized to receive it in accordance with the regulations ofthe applicable Part(s). This license shall be deemed to contain the conditions specified in Section I 83 of the Atomic Energy Act of I 954, as amended, and is subject to all applicable rules, regulations, ancl orders of the Nuclear Regulatory Commission now or hereafter in eff'ect and to any conditions specified below. Licensee lnternational Uranium (USA) Corporation [Applicable Amendments: 2] 6425 S. Highway 191 P.O. Box 809 Blanding, Utah 84511 3. License Number 4. Expiration Date 5. Docket or Reference No. 40-8681 6. Byproduct, Source, and/or Special Nuclear Material Natural Uranium 7. Chemical and/or Physical Form Any 8. Maximum Amount that Licensee May Possess at Any One Time Under This License Unlimited SECTION 9:Adm inistrative Gonditions 9.1 The authorized place of use shall be the licensee's White Mesa uranium milling facility, located in San Juan County, Utah. 9.2 All written notices and reports to the NRC required under this license, with the exception of incident and event notifications under 10 CFR 2O.22A2 and 10 CFR 40.60 requiring telephone notification, shall be addressed to the Chief, Uranium Recovery Branch, Division of Waste Management, Office of Nuclear Material Safety and Safeguards. lncident and event notifications that require telephone notification shall be made to the NRC Operations Center at (301) 816-5100. 9.3 The licensee shall conduct operations in accordance with statements, representations, and conditions contained in the license renewal application submitted by letter dated August 23, 1991, as revised by submittals dated January 13, and April 7, 1992, November 22, 1994, July 27 , 1995, December 13, and December 31 , 1996, and January 30, 1997, which are hereby incorporated by reference, and for the Standby Trust Agreement, dated April 29, 1997, except where superseded by license conditions below. \ly'henever the word "will" is used in the above referenced documents, it shall denote a requirement. [Applicable Amendment: 2] 9.4 A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: (1) Make changes in the facility or process, as presented in the application. NRC FORM 374A (7-941 u.s.COMMISSION OF C PAGES License Number MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or Reference Number (2) Make changes in the procedures presented in the application. (3) Conduct tests or experiments not presented in the application. B. The licensee shall file an application for an amendment to the license, unless the following conditions are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in this license, or impair the licensee's ability to meet all applicable NRC regulations. (2) There is no degradation in the essential safety or environmental commitments in the license application, or provided by the approved reclamation plan. (3) The change, test, or experiment is consistent with the conclusions of actions analyzed and selected in the EA dated February 1997. C. The licensee's determinations concerning Part B of this condition, shall be made by a "Safety and Environmental Review Panel (SERP)." The SERP shall consist of a minimum of three individuals. One member of the SERP shall have expertise in management and shall be responsible for managerial and financial approval changes; one member shall have expertise in operations and/or construction and shall have responsibility for implementing any operational changes; and, one member shall be the corporate radiation safety officer (CRSO) or equivalent, with the responsibility of assuring changes conform to radiation safety and environmental requirements. Additional members may be included in the SERP as appropriate, to address technical aspects such as health physics, groundwater hydrology, surface-water hydrology, specific earth sciences, and other technical disciplines. Temporary members or permanent members, other than the three above-specified individuals, may be consultants. D. 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 SERP, that provide the basis for determining changes are in compliance with the requirements refened to in Part B of this condition. The licensee shall furnish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee's SERP shall function in accordance with the standard operating procedures submitted by letter dated June 10, 1997. [Applicable Amendments: 3] NRC FORM 374A (7-94) u.s.COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to the NRC at least 3 months prior lo the anniversary date which is designated as June 4 of each year. lf the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, the licensee shall extend the existing surety arrangement for 1 year. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in engineering plans, activities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC approved reclamation/decommissioning plan or NRC approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by the NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, a Performance Bond issued by National Union Fire lnsurance Company in favor of the NRC, and the associated Standby Trust Agreement, dated April 29, 1997, shall be continuously maintained in an amount not less than $1 1 ,469,859 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by the NRC. [Applicable Amendments: 2, 3, 5] Standard operating procedures shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. SOPs for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and instrument calibrations. An up-to-date copy of each written procedure shall be kept in the mill area to which it applies. All .vritten procedures for both operation:l and non-operational activities shall be reviewed and approved in writing by the radiation safety officer (RSO) before implementation and whenever a change in procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preservation Act (as 9.5 9.6 9.7 Docket or Reference Number NRC FORM 374A' (7-94) U.S. NUCLE MATERIALS LICENSE SUPPLEMENTARY SHEET amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur until the licensee has received authorization from the NRC to proceed. The licensee shall avoid by project design, where feasible, the archeological sites designated "contributing" in the report submitted by letter dated July 28, 1988. When it is not feasible to avoid a site designated "contributing" in the report, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preservation Officer (SHPO), dated April 13, 1981. The licensee shall recover through archeological excavation all "contributing" sites listed in the report which are located in or within 100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at each site meeting these criteria shall be completed prior to the start of any project related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shall conduct such testing as is required to enable the Commission to determine if those sites designated as "Undetermined" in the report and located within 100 feet of present or known future construc{ion areas are of such significance to warrant their redesignation as "contributing." ln all cases, such testing shall be completed before any aspect of the undertaking affects a site. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set forth in 36 CFR Part 66, Appendix C, and whose qualifications are found acceptable by the SHPO. 9.8 The licensee is hereby authorized to possess byproduct material in the form of uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. Mill tailings shall not be transferred from the site without specific prior approval of the NRC in the form of a license amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. 9.9 The licensee is hereby exempted from the requirements of Section 20.1902 (e) of '10 CFR Pat+.20 for areas within the mill, provided that all entrances to the mill are conspicuously posted in accordance with Section 20.1902 (e) and with the words, "Any area within this mill may contain radioactive material." 9.10 Release 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 or Termination of Licenses for Byproduct, Source, or Special Nuclear Material," dated May 1987, orsuitable alternative procedures approved by the NRC priorto any such release. coMMrssroN II&AAXETA NRC FORM 374A. (7-94) u.s.ATORY COMMISSION OF a PAGES l-icense Number MATERIALS LICENSE SUPPLEMENTARY SHEET OUA- IJJU. A Docket or Reference Number sECTtoN 10: Operational Controls, Limits, and Restrictions 10.1 The mill production rate shall not exceed 4380 tons of yellowcake per year. 10.2 All liquid effluents from mill process buildings, with the exception of sanitary wastes, shall be returned to the mill circuit or discharged to the tailings impoundment. 10.3 Freeboard limits for Cells 1-1, 3, and 4A, and tonnage limits for Cell 3, shall be as stated in Section 3.0 to Appendix E of the approved license application. 10.4 Disposal of material and equipment generated at the mill site shall be conducted as described in the licensee's submittals dated December 12, 1994 and May 23, 1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4-feet thick. Subsequent lifts shall be less than 2-feet thick. Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. 10.5 ln accordance with the licensee's submittal dated May 20, 1993, the licensee is hereby authorized to dispose of byproduct material generated at licensed in situ leach facilities, subject to the following conditions: A. Disposal of waste is limited to 5000 cubic yards from a single source. B. All contaminated equipment shall be dismantled, crushed, or sectioned to minimize void spaces. Barrels containing waste other than soil or sludges shall be emptied into the disposal area and the barrels crushed. Banels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for alternate burial locations. D. All disposal activities shall be documented. The documentation shall include descriptions of the waste and the disposal locations, as well as all actions required by this condition. An annual summary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. 10.6 The licensee is authorized to receive and process source materials from the Allied Signal Corporat on's Metropolis, lllinois, facility in acr;ordance with the amendment request dated June 15, 1993. 1O.7 The licensee is authorized to receive and process source material from Allied Signal, lnc. of Metropolis, lllinois, in accordance with the amendment request dated September 20, 1996, and amended by letters dated October 30, and November 1 1, 1996. 10.8 The licensee is authorized to receive and process source material, in accordance with the amendment request dated March 5, 1997. [Applicable Amendments: 1] NRC FORM 3744. (7-94) 11.1 coMMtssroN License Number Docket or Reference NumberMATERIALS LICENSE SUPPLEMENTARY SHEET 10.9 The licensee is authorized to receive and process source material from Cabot Performance Materials' facility near Boyertown, Pennsylvania, in accordance with the amendment request dated April 3, 1997, as amended by submittals dated May 19, and August 6, 1997. [Applicable Amendments: 4] The licensee is authorized to receive and process source material from the Ashland 2 Formerly Utilized Sites Remedial Action Program (FUSRAP) site, located near Tonawanda, New York, in accordance with the amendment request dated May 8, 1998, as amended by the submittals dated May 27 , June 3, and June 1 1 , 1998. [Applicable Amendment: 6] 10.10 sECTtoN 11: Monitoring, Recording, and Bookkeeping Requirements 11.2 The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this license and any subsequent reviews, investigations, and corrective actions, shall be documented. Unless othenrise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application, as amended by the submittal dated June 8, 1995, and as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water or sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. Groundwater sampling shall be conducted in accordance with the requirements in License Condition 1 1.3. D. The licensee shall utilize lower limits of detection in accordance with Section 5 of Regulatory Guide 4.14 (Revision 1), for analysis of effluent and environmental samples. E. The inspections performed semiannually of the critical orifice assembly committed to in the submittal dated March 15, 1986, shall be documented. The critical orifice assembly shall be calibrated at least every 2 years against a positive displacement Roots meter to obtain the required calibration curve. [Applicable Amendment: 5] The licensee shall implement a groundwater detection monitoring program to ensure compliance to 10 CFR Part 40, Appendix A. The detection monitoring program shall be in 11.3 r(zK)I( NRC FORM 374A '(7-94) U.S. NUCL COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, as modified by the following: A. The leak detection system for all ponds will be checked weekly. lf liquid is present, it shall be analyzed for chloride, sulfate, selenium, and pH. The samples will be statistically analyzed to determine if significant linear trends exist, and the results will be submitted to NRC for review. B. lf a significant linear trend is indicated, the licensee will submit a proposed corrective action for review and approval to NRC. The corrective action shall include a discussion on delineation of the areal extent and concentration of hazardous constituents. C. The licensee shall sample monitoring wells \A/lVlMW-s, -1 1 , -12, -14, -15, and -17 , on a quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium, and the results of such sampling shall be included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. 11.4 Annually, the licensee shall collect, during mill operations, a set of airsamples covering eight hours of sampling, at a high collection flow rate (i.e., greater than or equal to 40 liters per minute), in routinely or frequently occupied areas of the mill. These samples shall be analyzed for gross alpha. ln addition, with each change in_mill feed material or at least annually, the licensee shall analyze the mill feed or production product for U-nat, Th-230, Ra-226, and Pb-210 and use the analysis results to assess the fundamental constituent composition of air sample particulates. [Applicable Amendment: 7] 11.5 Calibration of in-plant air and radiation monitoring equipment shall be performed as specified in the license renewal application, under Section 3.0 of the "Radiation Protection Procedures Manual," with the exception that in-plant air sampling equipment shall be calibrated at least quarterly and air sampling equipment checks shall be documented. 11.6 The licensee shall perform an annual ALARA audit of the radiation safety program in accordance with Regulatory Guide 8.31. SECTIoN 12: Reporting Requirements 12.1 The licensee shall submit to NRC for review, by June 30, 1997, a detailed reclamation plan for the authorized tailings disposal area which includes the following: A. A post-operations interim stabilization plan which details methods to prevent wind and water erosion and recharge of the tailings area. B. A plan to determine the best methodology to dewater and/or consolidate the tailings cells prior to placement of the final reclamation cover. C. Plan and cross-sectional views of a final reclamation cover which details the location and elevation of tailings. The plan shall include details on cover thickness, physical Docket or Reference Number NRC FORM 374A (7-94',, .U.S. NUCLEtrEGULATORY COMMISSION MATERIALS LICENSE SUPPLEMENTARY SHEET characteristics of cover materials, proposed testing of cover materials (specifications and quality assurance), the estimated volumes of cover materials and their availability and location. D. Detailed plans for placement of rock or vegetative cover on the final reclaimed tailings pile and mill site area. E. A proposed implementation schedule for items A through D above which defines the sequence of events and expected time ranges. F. An analysis to show that the proposed type and thickness of soil cover is adequate to provide attenuation of radon and is adequate to assure long-term stability, as well as an analysis and proposal on methodology and time required to restore ground water in conformance to regulatory requirements. G. The licensee shall include a detailed cost analysis of each phase of the reclamation plan to include contractor costs, projected costs of inflation based upon the schedule proposed in item E, a proposed contingency cost, and the costs of long-term maintenance and monitoring. 12.2 The licensee shall submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations. FOR THE NUCLEAR REGULATORY COMMISSION 4*"#,M,,a Uranium Recovery Branch Division of Waste Management Office of Nuclear Material Safety and Safeguards EIxE'raE.E(A INK ETEIZII Fromr afames Park <ilRpGnrc.grov> lro : EQDoI,IAIN . EQRAD ( LMORToN ) , EQDoMATN . Eewe (MNOVAK )Dat.: l/3/97 1:06pmSubJect: consultation on renewal of EFN/white Mesa's ricense Loren/Mark, Attached is the draft final EA on the renewal of EFN/White Mesa,s NRc source materiallicense. If you look under Section 9, you'll notice a blank spot. thit,s for you andr to fill in.Please look over the EA, and I'd like to set up a call for next week (1/G - 1/10) todiscuss anyconcerns the DRC and DWQ have. Before I realized f could just email the document to you both, I tried to fax it,.Loren, your fax number didnt' pick up, so you won't have a hard copy, but Mark, I did get it throught,o you. The strikeouts in Section 11 are of condit.ions we,re considering taking outs. I look forward to talking with you. ,Jim ENVIRONMENTAL ASSESSMENT FOR RENEWAL OF SOURCE MATERIAL LICENSE NO. SUA.1358 ENERGY FUELS NUCLEAR, INC. WHITE MESA URANIT]M MILL SAN JUAN COIJNTY, UTAH DECBMBER 1996 DOCKET NO.40-8681 U.S. Nuclear Regulatory Commission Office of Nuclear Material Safety and Safeguards Division of Waste Management DRAFT January 3, 1997 DRAFT 1.0 INTRODUCTION January 3, 1997 TABLE OF CONTENTS 2.0 1.3.1 Federal and State Authorities1.3.2 Basis of NRC Review SITE DESCRIPTION Location Climate and Weather Geology 2.3.1 Regional Geology 2.3.2 Local Geology 2.3.3 Seismicity2.4 Water Resources 2.4.1 Surface Water 2.4.2 Groundwater Topography Demography Land Use 3.0 PROCESS DESCRIPTION Mill Circuit MillWaste Disposal 4.0 EVALUATION OF ENVIRONMENTAL IMPACTS 1.1 1.2 1.3 4.1 4.2 4.3 4.4 4.5 4.6 4.7 Background lnformation Proposed Action Review Scope lntroduction Air Quality lmpacts Historical and Cultural Resources lmpacts to Water Resources 4.4.1 Surface Water lmpacts 4.4.2 Groundwater lmpacts lmpacts on Ecological Systems 4.5.1 Endangered Species 4.5.2 Wetlands Radiological lmpacts4.6.1 Operating Data4.6.2 RadiologicalAssessment 2.1 2.2 2.3 2.5 2.6 2.7 3.1 3.2 ln-Plant Safety DRAFT January 3, 1997 5.0 ENVIRONMENTAL EFFECTS OF ACCIDENTS 5.1 Failure of Chemical Storage Tanks 5.2 Fires and Explosions 5.3 Pipeline Failure 5.4 Minor Pipe or Tank Leakage . . 5.5 Tailings lmpoundment System Accidents . . . . 6.0 RECLAMATION AND DECOMMISSIONING . . 7.0 ALTERNATIVES 8.0 FINANCIAL SURETY 9.0 CONSULTATION WITH THE STATE OF UTAH 1O.O FINDING OF NO SIGNIFICANT IMPACT 11.0 CONCLUSION INCLUDING ENVIRONMENTAL LICENSE CONDIT]ONS . . REFERENCES . January 3, 1997 Page LIST OF TABLES 2.1 Population Centers within 80 Kilometers of the White Mesa Mill Site LIST OF FIGURES Page 1.1 2.1 2.2 3.1 5.1 iii DRAFT January3,1997 1.0 INTRODUCTION By application dated August 23, 1991 , and supplements and revisions transmitted by letters dated December 13 and 17, 1991 , January 13 and April 7, 1992, Umetco Minerals Corporation (Umetco) requested renewal of Source Material License SUA-1358, for continued authorization of milling activities at the White Mesa Uranium Mill, which is located in San Juan County, Utah. By letter dated March 29,1994, Umetco requested transfer of the license and a change in ownership of the mill to Energy Fuels Nuclear, lnc. (EFN). On May 25,1994, the license was amended to change designation of the licensee to EFN. ln the acquisition agreement between EFN and Umetco, EFN agreed to abide by all commitments and representations made to the U.S. Nuclear Regulatory Commission by Umetco. With this license renewal, NRC will be authorizing continued mill operations under the Performance-Based License Condition (PBLC) format. Under Performance-Based Licensing, the licensee has the burden of ensuring the proper implementation of the PBLC. The licensee may: . Make changes in the facility or process, as presented in the application, . Make changes in the procedures presented in the application, or . Conduct tests or experiments not presented in the application, without prior NRC approval, if the licensee ensures that the following conditions are met: (1) The change, test, or experiment does not conflict with any requirement specifically stated in the license (excluding material referenced in the Performance-Based License Condition), or impair the licensee's ability to meet all applicable NRC regulations. (2) There is no degradation in the essential safety or environmental commitments in the license application, or provided by the approved reclamation plan. (3) The change, test, or experiment is consistent with NRC's conclusions regarding actions analyzed and selected in the EA. Othenarise, the licensee is required to submit an application for a license amendment from NRC. The licensee's determinations whether the above conditions are satisfied will by made by a Safety and Environmental Review Panel (SERP). The SERP shall consist of a minimum of three individuals. One member of the SERP shall have expertise in management and shall be responsible for managerial and financial approval changes; one member shall have expertise in operations and/or construction and shall have expertise in implementation of any changes; and one member shall be the corporate radiation safety officer or equivalent. Additional members may be included in the SERP as appropriate, to address technical aspects in several areas, such as health DRAFT January 3, 1997 physics, surface water hydrology, specific earth sciences, and others. Temporary member, or permanent member other than the three identified above, may be consultants. The licensee shall maintain records until license termination of any changes made pursuant to the PBLC. These records shall include written safety and environmental evaluations, made by the SERP, that provide the basis for determining that the change complies with the requirements referred to in the above conditions. The shall furnish an annual report to NRC that describes such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit any pages of its license application that have been revised to reflect changes made under this condition. EFN has not yet submitted, for NRC review and approval, its standard operating procedure (SOP) for operation of the SERP. Therefore, NRC will require, by license condition, that EFN submit the SOP by March 31 , 1997, and until such time as NRC approves the SOP, EFN will not be authorized to implement the PBLC. EFN agreed to this license condition by telephone conversations on December 31 , 1996. NRC's inspection function remains unchanged with the administration of Performance-Based Licensing. Operational changes, regulatory commitments, and recordkeeping requirements implemented by EFN through the PBLC are subject to NRC inspection and possible enforcement actions. 1.1 Backoroundlnformation By letter dated February 6, 1978, Energy Fuels Nuclear, lnc. (EFN) applied to the U.S. Nuclear Regulatory Commission for a source and byproduct material license to construct and operate the White Mesa uranium milling facility located approximately 9.5 kilometers (km) (6 miles) south of Blanding, Utah (see Figure 1.1). As a result of studies conducted for the Final Environmental Statement (FES) (NUREG-0556; NRC, 1979), NRC concluded that mitigative measures proposed and implemented by the applicant would reduce any adverse environmental impacts associated with the White Mesa project to acceptable levels. Following issuance of the FES in May 1979 and the staff's Safety Evaluation Report (SER) in August 1979, NRC issued Source Material License SUA-1358 on August 7,1979. SUA-1358 was renewed in 1985, and was due to expire on September 23, 1991. As stated above, Umetco submitted a license renewal application by letter dated August 23, 1991, and NRC notified Umetco that the license was in timely renewal by letter dated November 7, 1991 . Source Material License SUA-1358 and ownership of the White Mesa mill were transferred from Umetco to EFN in May 1994. The mill was operated on a continual basis f rom May 1980 until February 1983, and then intermittently from October 1985 to the present time. 1.2 Proposed Action DRAFT January 3, 1997 The proposed action is to renew SUA-1358 for operation of the White Mesa mill at a maximum production rate of 4380 tons of yellowcake per year. Additionally, EFN will be authorized, by license condition, to possess byproduct material in the form of uranium waste tailings and other uranium byproduct waste generated by its milling operations authorized by the renewal license. 1.3 Review Scope 1.3.1 Federal and State Authorities NRC source material licenses are issued under Title 10, Code of Federal Regulations, Part 40 (10 CFR Part 40). As stated in 10 CFR 40.3, 'A person subject to the regulations in this part may not receive title to, own, receive, possess, use, transfer, provide for long-term care, deliver or dispose of byproduct material or residual radioactive material as defined in this part or any source material after removal from its place of deposit in nature, unless authorized in a specific or general license issued by the Commission ..." Source material is defined under 10 CFR 40.4 as (1) uranium or thorium, or any combination thereof , in any physical or chemical form, or (2) ores which contain by weight 0.05 percent or more of uranium, thorium, or any combination thereof. ln addition, the Uranium Mill Tailings Radiation Control Act of 1978, as amended (UMTRCA), requires persons who conduct uranium source material operations to obtain a byproduct material license to own, use, or possess tailings and wastes generated by the operations (including above- ground wastes from in situ operations). This EA has been prepared under 10 CFR Part 51 , "Licensing and Regulatory Policy and Procedures for Environmental Protection," which implements NRC's environmental protection program under the National Environmental Policy Act of 1969 (NEPA). ln accordance with 10 CFR Part 51 , an EA serves to (a) briefly provide sufficient evidence and analysis for determining whether to prepare an environmental impact statement (ElS) or a finding of no significant impact (FONSI), (b) facilitate preparation of an EIS when one is necessary, and (c) aid the NRC's compliance with NEPA when an EIS is not necessary. lmpacts from the commercial scale operation of the site were previously evaluated in the FES (NRC, 1979). The EA and SER for the previous renewal of SUA-1358 were issued by the NRC staff on September 26, 1985. A new SER will accompany this EA. ln preparing these two documents, the staff will evaluate the potential impacts associated with the continued commercial operation of the White Mesa mill. Should the NRC issue a FONSI, based on the licensee's application materials, previous operational data, and information in the FES and previous EA, a renewed commercial source material license would be issued to EFN. The State of Utah Department of Environmental Quality (UDEO) administers and implements the State's rules and regulations. 1.3.2 Basis of NRC Review DRAFT January 3, 1997 The NRC, Division of Waste Management, staff has assessed the environmental and safety impacts associated with the renewal of EFN's commercial license for the White Mesa mill, and documented the results of the assessment in this report. The staff performed this appraisal in accordance with the requirements of 10 CFR Part 51 . ln conducting its assessment, the staff considered the following: lnformation contained in the previous environmental evaluations of the White Mesa project (i.e., the 1979 FES and the 1985 EA); lnformation contained in EFN's August 23, 1991 , renewal application, and supplementary information submitted by letters dated December 13, 1991 ; July 28, October 5, and November 22,1994, and December 13, 1996; lnformation contained in EFN amendment requests, NRC approvals of such requests, and land use and environmental monitoring reports transmitted subsequent to August 23, 1991; Personal communications with EFN and the UDEQ; and lnformation derived from NRC staff site visits and inspections of the White Mesa mill site. SITE DESCRIPTION 2.1 Location The project site is located in central {ian Juan County, Utah, approximately 9.5 km (6 miles) south of the city of Blanding. The mill can be reached by taking a private road for approximately 0.5 miles west of Utah State Highway 191 . All operations to be authorized by the renewed license will be conducted within the confines of the existing site boundary. The project site consists of 1971 hectares (ha) (4871 acres) of private land together with mill site claims. Surface area owned by EFN is shown in Figure 2.1 and includes most of Section 28 and portions of Sections 21,22,27,32 and 33 of Township 37S, Range 22E, and Section 16 of Township 38S, Range 22E. The mill site occupies 20 ha (50 acres) and the tailings disposal cells another 182 ha (a50 acres). 2.2 Climate and Weather Southeastern Utah's climate is classified as arid, with an average annual precipitation of 30 centimeters (cm) (12 inches), 75 percent of which falls as rain. Two separate rainfall seasons can be distinguished in the area, with the first occurring during late summer and early fall, and the second between the months of December and March. Temperatures in summer normally range f rom 4'C (40'F) to 32'C (90'F), while winter temperatures range between -9"C (15'F) and 13"C (55'F). The yearly normal mean temperature is 9'C (50'F). 2.O DRAFT January 3, 1997 The mean annual relative humidity is 44 percent and is normally highest in January and lowest in July. The average evaporation rate for the period from May through October is 118.8 cm (46.8 inches), with the greatest evaporation occurring normally during the month of July. The dominant wind directions are from the north-northeast (approximately 13.5 percent of the time) and from the south-southwest (approximately 10 percent of the time). Wind speeds are generally less than 15 miles per hour (mph), with winds faster than 25 mph occurring less than one percent of the time. 2.3 Geologv 2.3.1 Regional Geology The project site lies within a region designated as the Canyon Lands section of the Colorado Plateau physiographic province. Elevations in the region range from approximately 923 meters (3000 feet) in the bottom of canyons to over 3385 m (11,000 ft) among the peaks of the Henry, Abajo and La Sal Mountains to the northeast. The average elevation for the area, excluding deeper canyons and isolated mountain peaks, is about 1524 m (5000 ft). The sedimentary rocks exposed in southeastern Utah have a total thickness of approximately 1828 to 2133 m (6000 to 7000 ft). These sedimentary units range in age f rom Pennsylvanian to Late Cretaceous; older rock units which underlie those of Pennsylvanian age are not exposed in the project area. Structural features in the project area have been divided into three main categories on the basis of origin or mechanism of the stress that created the structure. These categories are: (1) structures related to large-scale regional uplifting or downwarping directly related to movements in the basement complex (the Monument Uplift and the Blanding Basin); (2) structures due to diapiric deformation of thick sequences of evaporite deposits, salt plugs and salt anticlines (the Paradox Fold and Fault Belt); and (3) structures formed due to magmatic intrusions (the Abajo Mountains). A generalized stratigraphic column for the region is provided as Figure 2.2. The Summerville Formation, Entrada Sandstone, and Navajo Sandstone are the deepest units of concern encountered at the site. 2.3.2 Local Geology The White Mesa mill site is located on the western edge of the Blanding Basin, sometimes referred to as the Great Sage Plain, lying east of the north/south-trending Monument Uplift, south of the Abajo Mountains and adjacent to the northwest-trending Paradox Fold and Fault Belt. The Abajo Mountains are the most prominent topographic feature in the region, rising over 121 9 m (4000 ft) above the surface of the plain. The lithology of the immediate area is composed of thousands of feet of multi-colored pre-Tertiary age marine and non-marine sedimentary rocks. Erosion on the regionally-uplifted sedimentary strata has produced an array of spectacularly eroded canyons and mesas for which the area is famous. 5 DRAFT January 3, 1997 The mill rests on alluvialwindblown silt and sand which covers sandstones and shales of Jurassic and Cretaceous age. The surface of the mesa is nearly flat, with a surface relief of 30 m (98 ft). The maximum relief between White Mesa and the adjacent Cottonwood Canyon is about 230 m (750 ft). 2.3.3 Seismicity The historical record of seismicity for the region is about 150 years old. Since 1853, approximately 1200 seismic events have been recorded within 322km (200 miles) of the project area. The nearest of these events occurred in the Glen Canyon Recreation Area, 63 km (38 miles) away, and at a location approximately 88 km (53 miles) to the northeast of the site. An intensity V (Modified Mercalli Scale) event occurred on August 29,1941, just east of Durango, Colorado, 153 km (99 miles) away. Based on the region's seismic history, the probability of a major damaging earthquake occurring at or near the site is remote. 2.4 Water Resources 2.4.1 Surface Water Runoff in the project area is directed by the general surface topography either westward into Westwater Creek, eastward into Corral Creek, or to the south into an unnamed branch of Cottonwood Wash. Low average annual rainfall, local soil characteristics, and the porous nature of local stream channels cause these streams to flow intermittently in response to local snowmelt and rainstorms. These same conditions, in concert with the gentle slope of White Mesa, also contribute to the lack of perennial surface waters on or in the vicinity of the site. North of the site, a small drainage area of approximately 25 ha (62 acres) provides limited surface runoff to the site. Total runoff from the site is estimated to be less than 1.3 cm (0.5 inches) annually. The San Juan River, a major tributary to the upper Colorado River, is located approximately 29 km (18 miles) south of the mill site. 2.4.2 Groundwater The Dakota Sandstone is the rock unit that underlies the mill and the tailings disposal cells. At the mill site, this formation extends to depths of 13 to 20 m (43 to 66 feet) below the surface, and it is typically composed of sandstones with random discontinuous shale and siltstone layers. Beneath the site, the Dakota Sandstone is very dry to dry, with an average volumetric water content of 3 percent. lts porosity is predominately intergranular, ranging from 13.4 to 26.0 percent, with an average value of 19.0 percent. Measured saturated hydraulic conductivities from packer tests range from 9.1E-04 to 2.71-EOO centimeters per second (cm/sec), with a geometric mean of 3.89E-05 cm/sec. (Titan, 1994b) DRAFT January 3, 1997 The underlying Burro Canyon Formation is similar to the Dakota Sandstone. Composed of very fine- to coarse-grained sandstones, with discontinuous random shales, the Burro Canyon becomes argillaceous near its lower contact with the bentonitic mudstones and claystones of the Brushy Basin Member (Morrison Formation). Beneath the site, groundwater is first encountered at this contact as a zone of perched water. This zone occurs at depths of 22lo 33 m (73 to 1 09 feet) below the surface, and its thickness varies across the project area, from 17 m (55 feet) in the northern section to less than 1.5 m (5 feet) in the southern area. Potentiometric maps suggest that the predominant direction of groundwater flow in the saturated portion of the Burro Canyon Formation beneath the site is to the south-southwest (Titan, 1994b). The Burro Canyon outcrops along the walls of Westwater Creek Canyon and Corral Canyon, and groundwater from the perched zone discharges into these canyons, as evidenced by the occurrence of springs and productive vegetation patterns. Based on the results of 12 pumping/recovery tests and 30 packer tests, the hydraulic conductivity of the saturated portion of the Burro Canyon Formation ranges from 1.4E-06 to 1.2E-03 cm/sec, with a geometric mean of 1 .0E-05 cm/sec (Titan, 1994b). Water yields at the test wells were very low, typically less than 0.5 gallons per minute (gpm), although slightly higher yields (on the order of 2 gpm) may be possible in localized zones of higher permeability, resulting from lenses of coarser material or localized fracturing. The quality of the Burro Canyon perched water beneath and downgradient from the site is poor and extremely variable. The concentrations of total dissolved solids (TDS) measured in water sampled from upgradient and downgradient wells range between approximately 1000 and 5000 milligrams per liter (mg/l). Sulfate concentrations measured in three upgradient wells varied between 670 and 1740 mgll. As stated above, the Brushy Basin Member of the Morrison Formation is composed of bentonitic mudstones and claystones. ln the region, the thickness of this unit ranges from 60 to 135 m (200 to 450 feet). A total of approximately 365 m (1200 feet) of unsaturated, low permeability shales and poorly sorted sands of the Morrison and Summerville Formations separate the Brushy Basin from the underlying Entrada and Navajo Sandstones. The Entrada and Navajo Sandstones are prolific aquifers beneath and in the vicinity of the site. Water wells at the site are screened in both of these units, and therefore, for the purposes of this discussion, they will be treated as a single aquifer. Water in the Entrada/Navajo Aquifer is under artesian pressure, rising 245 lo 275 m (800 to 900 feet) above the top of the Entrada's contact with the overlying Summerville Formation; static water levels are 120 to 150 m (400 to 500 feet) below ground surface. Within the region, the aquifer is capable of yielding domestic quality water at rates of '150 lo 225 gpm, and for that reason, it serves as the source of water for the mill. Additionally, two domestic water supply wells drawing from the Entrada/Navajo Aquifer are located 4.5 miles southeast of the mill site on the Ute lndian Reservation. 2.5 Topography The mill site is located on a slightly tilted platform that, from the air, appears similar to a peninsula, as it is surrounded by steep canyons and washes and is connected to the Abajo Mountains to the a DRAFT January 3, 1997 north by a narrow neck of land. On the mesa, the topography is relatively flat, sloping at less than one percent to the south and nearly horizontal from east to west. 2.6 Demography According to the 1990 census, the population density of San Juan County, in which the mill is located, is 0.6 persons per square kilometer (1.6 individuals per square mile); by comparison, the statewide density is greater than 8 individuals per square kilometer (20 persons per square mile). The town of Blanding, Utah, approximately 9.5 km (6 miles) north of the mill, is the largest population center near the project with 3162 persons. Approximately 5.6 km (3.5 miles) southeast of the project site is the White Mesa Reservation, a community of approximately 320 Ute Mountain lndians, although only an estimated 60 to 75 individuals live within 8 km (5 miles) of the site. The nearest resident is located approximately 5 km (3 miles) to the northeast of the mill, which is in the prevailing wind direction. Table 2.1 provides the population centers within 80 km (49 miles) of the mill site. 2.7 Land Use Approximately 60% of San Juan County is Federally-owned land administered by the U.S. Bureau of Land Management, the National Park Service, and the U.S. Forest Service. Primary land uses includes livestock grazing, wildlife range, recreation, and exploration for minerals, oil, and gas. A quarter of the county is lndian land owned either by the Navajo Nation or the Ute Tribe. The area within 8 km (5 miles) of the project site is predominantly range land owned by residents of Blanding. The White Mesa mill site itself encompasses approximately 202 ha (500 acres). A more detailed discussion of land use at the White Mesa site, in surrounding areas, and in southeastern Utah, is presented in the FES prepared for the project (NRC, 1979). Results of archeological studies conducted at the site and in the surrounding areas as part of the original environmental report are also documented in the FES. Table 2.1 Population Centers within 80 Kilometers of the White Mesa Mill Site (modified from Umetco, 1991) Distance from Distance fromTown 1990 Population Site (km)' Site (miles) White Mesa, UT (unincorporated) 320t 6.4 4 Blandinq, UT 3162 9.5 6 Bluff, UT 847 25 15 Montezuma Creek. UT 1223 32 20 [Vlnntinolln llT 1 806 43 27 I DRAFT January 3, 1997 Aneth. UT 991 43 27 Mexican Hat. UT 495 48 30 Eastland/Ucolo, UT 249 51 32 Dove Creek, CO 623 59 37 t Approximate distance from mill site by air Aooroximate oooulation 3.0 PROCESS DESCRIPTION A simplified flow diagram of the White Mesa mill circuit is provided as Figure 3.1. 3.1 Mill Circuit Ore and other feed material is delivered to the site by truck. Once at the site, following weighing of the truck, an ore load is dumped at a specific location on the ore pad. Preliminary analyses are then conducted, and the moisture content of the ore determined. Loaders or trucks then haul stockpiled ore to the ore grizzly. A semi-autogenous grinding (SAG) mill is used to grind the ore, and the resultant slurry is pumped to two mechanically-agitated storage tanks. Material from these tanks is pumped to a two-stage acid leach process, in which sulfuric acid, an oxidant, and steam are used to leach the ore slurry. Next, a multi-staged counter-current decantation (CCD) washing circuit is employed to separate the strong acid liquor and wash the leached residue. During each CCD stage, solid particles settle to the bottom of the thickener tank, leaving a clarified uranium-bearing solution at the top. This solution is transferred "up-stage," where the same process of decantation takes place. Overflow from the top (i.e., the first) CCD thickener tank is sent to the two-stage leach process mentioned above, the overflow of which is clarified prior to solvent extraction. The slurry at the bottom of the tank is progressively transferred "down" the circuit. From the final thickener tank, it is sampled and then pumped to the tailings retention area. Meanwhile, the uranium-bearing liquid is transferred to a solvent extraction process which is carried out in a series of mixing and settling vessels. Aminetype compounds and kerosene are added to dissolve the uranyl ions from the leach solution. The solution is then stripped of uranium by acidification and pumped to a precipitation tank. Within the precipitation tank, the pregnant solution is neutralized and yellowcake is settled. The yellowcake is next transferred to a centrifuge where it is further concentrated. The thickened yellowcake slurry is transferred to either of two propane gas/diesel-fired multiple-hearth dryers. Both dryers feed to a common packaging hopper and drum filling station, where the dried yellowcake is powdered and packaged in S5-gallon drums. DRAFT January 3, 1997 These drying, powdering, and packaging operations are performed within an enclosure under negative pressure, with wet scrubbers used to collect airborne particulates. During the entire route of production, concrete curbing and sumps are designed to intercept any spillage and return it to the appropriate process circuit. 3.2 MillWaste Disposal Mill tailings are deposited within tailings cells located at the facility. The tailings, along with liquid waste, are slurried by pipeline to the impoundment system, which consists of a series of cells that are designed for phased construction and reclamation. Each cell is lined with a synthetic membrane liner covered with a couple of feet of soilfor protection. Cells are presently designated 1-1,2,3, and 44 (the higher the number refers to the more recently constructed cell). The four tailings cells are designed to accept the quantity of waste to be produced during a 15- year operating period, at a ore processing rate of 2000 tons per day. The tailings and evaporation cells are designed and constructed as partially below-grade disposal facilities, and maximum operational freeboard and tonnage limits for the cells are specified in the renewal application. Each cell has a leak detection system designed to provide an early warning of catastrophic liner failure. Each tailings cell embankment is also regularly monitored for stability and the results reported to NRC. Tailings Cell 4A was designed, constructed, and placed into operation in 1990, according to an NRC-approved plan and in accordance with U.S. Environmental Protection Agency (EPA) regulations. As stated above, all production spillage or wastes, such as tailings and process water, are either returned to the mill circuit or sent by pipeline to the appropriate tailings impoundment, while sanitary wastes are disposed of separately in a State-approved seepage system. This is currently required by license condition and will continue to be so required. All other uncontaminated wastes are trucked offsite. EFN will continue to be required to dispose of all other mill-generated waste considered as 1 1e.(2) byproduct material (e.9., contaminated equipment and parts) within Tailings Cell 2, in accordance with its procedure, "Radioactive Contaminated Waste Disposal," amended as noted in NRC's approval letter of August 1 , 1995. EFN is authorized currently to accept byproduct material from licensed in-situ leach facilities for disposal in Tailings Cell 3. Conditions of this authorization will continue to be specified by license condition. Environmental impacts associated with this disposal were assessed as part of the NRC licensing action approving EFN's amendment request. 4,O EVALUATION OF ENVIRONMENTAL IMPACTS 4.1 lntroduction '10 DRAFT January 3, 1997 Operation of the mill will directly use about 2O2ha (500 acres) of land for mill buildings and tailings cells. During operation, effluent releases (e.9., fugitive dust, hydrocarbons, radionuclides) will be maintained at levels as low as is reasonably achievable. Tailings, which are produced in large quantities and contained in lined disposal cells, will be reclaimed at the end of the project, in accordance with an NRC-approved reclamation plan. Mill operations should not, under proper operating conditions, have a significant impact on air and water quality. Environmental impacts associated with the original construction of the facility were assessed in the FES (NRC, 1979). 4.2 Air Quality lmpacts During operation of the mill, hydrocarbon release from the boiler, gaseous emissions from process chemicals, and fugitive dust and radon emissions from the ore pads will occur. Dust and radon levels will be controlled through spraying, while the other gaseous emissions should not exceed regulatory standards. Other emissions will be discussed in Section 4.6, "Radiological lmpacts." 4.3 Historical and Cultural Resources A historical survey was conducted in the project vicinity as part of the initial license application, and six historical sites were identified. However, none of these sites is in an area which will be affected by operations at the mill. Archaeological surveys of the project site conducted in 1977 and 1979, identified 121 prehistoric sites which are affiliated with the San Juan Anasazi lndians who occupied this area of Utah from about 0 A.D. to 1300 A.D. As a result of the archaeological findings, a Memorandum of Agreement (MOA) between NRC, the Utah State Historic Preservation Officer, and the Advisory Council on Historic Preservation was established to specify requirements necessary to minimize adverse impacts to the previously identified archaeological sites. The requirements were incorporated into SUA-1358 when initially issued. The requirements have been modified following subsequent amendments to the MOA. The most recent modifications were incorporated into SUA-1358 through the issuance of a license amendment on May 1 1 , 1983. These requirements will be included in the renewed license. The licensee will also be required to conduct, as a minimum, an archaeological and historical artifact survey of areas not previously surveyed prior to their disturbance. 4.4 lmpacts to Water Resources 4.4.1 Surface Water lmpacts Continued operation of the mill should have negligible impacts on surface waters on and in the vicinity of the project site, because (1) mill effluents are not discharged to local surface waters; (2) sanitary wastes are discharged to State-approved leach fields; and (3) tailings from mill 11 DRAFT January 3, 1997 operations are discharged by pipeline to partially below-grade, lined impoundments. ln addition, as noted above, EFN has committed to regular inspections of the tailings cell embankments. 4.4.2 Groundwater lmpacts For the following reasons, the NRC staff does not believe that groundwater beneath or in the vicinity of the site will be adversely impacted by continued operation of the mill: 1. Four tailings cell have been constructed to accept tailings slurry and solutions and other approved wastes. Each of the cells has been designed and constructed to minimize seepage of tailings fluids into the subsurface. Cells 1-1,2, and 3 have a 6-inch compacted sandstone bedding layer, an overlying synthetic liner, and a leak detection system consisting of : (1) a 12-inch thick compacted sand layer on the upstream face of the downstream retention dike, (2) a 3-inch diameter perforated pipe installed at the toe of the sand layer, and connecting to (3) a 12-inch diameter access riser pipe. Cell 4A is constructed with a 12-inch thick clay base layer overlain by a synthetic liner covering both the bottom and side slopes of the cell. A leak detection system is located beneath the synthetic liner. This system is composed of 4-inch perforated pipes embedded in granular materials in synthetically-lined trenches excavated into the clay base. These pipes are connected in turn to a 12-inch diameter access pipe. As part of EFN's inspection procedures for the tailings management system, daily measurements are taken of liquid levels in the leak detection system for each cell. lf specific changes in these levels are recorded, site management is notified immediately. Quarterly sampling of a number of monitor wells completed in the Burro Canyon perched water zone and located around and among the tailings cells, is also required by EFN's inspection procedures. Further discussion of the licensee's groundwater detection monitoring program is provided in Section 4.6.1. 2. Based on estimates of net infiltration and volumetric moisture content of the vadose zone (i.e., the unsaturated portions of the Dakota and Burro Canyon Sandstones) and an average thickness of the vadose zone, EFN estimates that it would take 50 to 150 years for moisture to travelfrom the bottom of a tailings disposal cell to the perched water zone, depending on the extent of failure of the tailings disposal cell liner (Titan, 1994). Tailings disposal cell seepage traveling along joints or fractures in the Dakota Sandstone could potentially reduce this travel time to a few days or months. Jointing is common in the Dakota along the mesa's rim; however, coring studies to date have revealed no evidence of continuous fractures or joints with depth. Once in the saturated portion of the Burro Canyon, the travel time for seepage from a tailings impoundment to the downgradient edge of the mesa has been estimated at 8900 to 13,400 years (Titan, 1994b). 3. The Morrison and Summerville Formations form an approximately 1200{oot thick low- permeability barrier to ground water flow separating the Entrada/Navajo Aquifer from the 12 DRAFT January 3, 1997 Burro Canyon perched zone. This barrier makes it unlikely that constituents from the tailings disposal cells would ever impact water quality of this aquifer. 4.5 lmpacts on Ecological Systems 4.5.1 Endangered Species ln the vicinity of the site, four animal species classified as either endangered or threatened (i.e., the bald eagle (Haliaeetus leucocephalus), the American peregrine falcon (Falco peregrinus anatum), the black-footed ferret (Mustela nigripes), and the Southwestern willow flycatcher (Empidonax traillii extimus)) could occur. While the ranges of the bald eagle, peregrine falcon, and willow flycatcher encompass the project area, their likelihood of utilizing the site is extremely low. The black-footed ferret has not been seen in Utah since 1952 and is not expected to occur any longer in the area. No populations of fish are present on the project site, nor are any known to exist in the immediate area of the site. Four species of fish designated as endangered or threatened occur in the San Juan River 29 km (18 miles) south of the site. There are no discharges of mill effluents to surface waters, and therefore, no impacts are expected for the San Juan River due to operations of the White Mesa mill. Currently, no designated endangered plant species occur on or near the plant site. 4.5.2 Wetlands No true wetlands exist on the project site. Two small catch basins approximately 18 m (60 feet) in diameter, fill for brief times in the fall or spring if heavy rainfall occurs. These catch basins are the only "aquatlc" habitat found on the project site, and they more properly represent terrestrial environments. No wetland plants have been found in these basins. 4.6 Radiological lmpacts 4.6.1 Operating Data Sampling results discussed in this section were provided by the licensee in accordance with the requirements of 10 CFR 40.65, as modified by license conditions currently in SUA-1358. The renewal license will retain these same license conditions, which address: (1) stack sampling, (2) surface water sampling, (3) groundwater sampling, (4) lower limits of detection, and (5) inspections and calibrations of the critical orifice assembly. a. Air Particulate Sampling EFN's air particulate monitoring program consists of continuous environmental sampling stations at four locations, three of which are located at the site boundary, and one at the 13 DRAFT January 3, 1997 nearest residence, which is 5 km (3 miles) northeast of the site. Samples are collected quarterly and analyzed for U-nat, Th-230, Ra-226, and Pb-210. Data collected during continuous mill operations in 1989-90. and again in 1995-96, indicated that measured concentrations of U-nat, Th-230, Ra-226, and Pb-210 were small f ractions (i.e., less than ten percent) of the appropriate 10 CFR Part 20 limits for unrestricted areas. Concentrations of these radionuclides measured at the BHV-S sampling station tended to be elevated during mill operations due to increased dust from the ore stockpile and the increased traffic around the ore stockpile and mill areas. Stack Effluent Sampling During operations, stack sampling is performed quarterly on the yellowcake stacks (i.e., the dryer and baghouse stacks) and semi-annually on the grizzly and demister stacks. Stack samples are analyzed for U-nat, Th-230, Ra-226, and Pb-210. Measurements performed in 1989 and 1995-96 indicate that emissions of these radionuclides have been consistently low. ln addition, measurements of product loss through the yellowcake stacks have been well below levels originally predicted in the FES for the facility (NRC, 1979). Radon Gas Monitoring Environmental monitoring for radon gas using thermoluminescent dosimeters (TLDs) was discontinued with NRC approval in September 1995. The licensee will demonstrate compliance with the 10 CFR Parl20 annualdose limit of 100 mrem through MILDOS- AREA modeling calculations. The licensee will still be required to keep radon-222 emissions from an existing mill tailings pile from exceeding 20 pCilmz-s of radon-222,in accordance with the requirements of 40 cFR 61.252. Direct Gamma Exposure Direct radiation exposure measurements are made quarterly at the four air particulate monitoring stations. The greatest differential between measured exposure rate and background for the same time period since 1989 was 8.6 mH/qtr. However, measured exposure rates are normally at or slightly above or below background rates. Surface Water Sampling Surface water monitoring is conducted at two sampling locations, known as Westwater Canyon and Cottonwood Creek, adjacent to the mill. Grab samples are collected annually from Westwater Canyon and quarterly from Cottonwood Creek. The samples are analyzed for total and dissolved U-nat, Ra-226, and Th-230, as well as for pH, specific conductivity, temperature, total dissolved and suspended solids, gross alpha concentrations. Measured values for these consituents and parameters over the period of mill operations since 1980 have been consistently low. b. c. d. e. 14 DRAFT January 3, 1997 f. Ground Water Sampling Groundwater monitoring samples have been collected quarterly from seven monitoring wells and the culinary water well. These samples were analyzed for pH, specific conductance, chlorides, sulfates, TDS, and U-nat, and water level measurements were also taken. Groundwater samples were analyzed semiannually for arsenic, selenium, sodium, Ra-226, Th-230, and Pb-210. No trends are apparent from measurements taken since 1985. With this license renewal, EFN proposed that groundwater detection monitoring be conducted in accordance with the program described in the document entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994. Under this program, samples will be collected quarterly from five "point of compliance" (POC) wells, completed in the Burro Canyon Formation (wells WMMW-S, -11, -12, -14, and -15) (see Figure 5.1). These samples will be analyzed for chloride, potassium, and nickel, and water level measurements also will be taken. EFN selected these indicator parameters, because the concentrations of these species are significantly higher in the tailings pond fluid that in the perched water of the Burro Canyon, and they are representative of both anionic and cationic species. The data will be analyzed using the Shewhart-Cusum control chart technique. These charts have been developed on a well-by-well basis, with a separate control chart for each of the four indicator parameters. lf limits on the control charts are exceeded for a parameter at a well, a program of confirmatory sampling will commence. This will involve monthly sampling for six months; a separate analysis-of-variance technique will be employed to determine whether there is a significant difference between these samples and those collected prior to the confirmatory sampling program. lf the data are significantly different, then a corrective action plan will be developed. The NRC staff found the proposed groundwater detection monitoring program to be acceptable, with modifications as follows: (1) that well WMMW-17 be included in the sampling program; and (2) that uranium be added as an indicator parameter to be analyzed for. EFN agreed to these modifications in a telephone conversation on December 11, 1996. EFN will be required, by license condition, to conduct its groundwater detection monitoring in accordance with the proposed program, as modified. Finally, the licensee will continue to be required to (1) analyze liquid found in the leak detection system during weekly inspections for specified constituents; (2) conduct statistical analyses to determine if significant linear trends exist, and (3) propose corrective action for NRC review and approval if such trends do exist. 4.6.2 Radiological Assessment a. Offsite lmpacts 15 DRAFT January 3, 1997 The radiological impacts from milling operations at the White Mesa site have been assessed previously and documented in the FES (NRC, 1979) and the 1985 EA (NRC, 1985a). ln the previous EA, the staff analyzed impacts associated with milling at a nominal rate of 2000 tons of ore per day, and an average ore grade of 0.60 percent, for a yellowcake production rate of 4380 tons per year, and determined that both site boundary radionuclide concentrations and individual dose commitments were small fractions of the applicable standards. As part of its November 22,1994, amendment request for authorization to install a second dryer, EFN provided updated MILDOS-AREA calculations and results. ln approving EFN's request, the NRC staff determined, based on its review of the MILDOS-AREA results, that releases from the mill would not result in a member of the public receiving a radiation dose in excess of the 10 CFR Parl2Q limit (i.e., 1 00 mrem per year). It should be noted that actual radiation doses to the public will likely be less than modeled, because EFN normally processes lower grade ores, at a rate less than 2000 tons of ore per day. b. Radiological lmpact on Biota Other than Humans Although no guidelines concerning acceptable limits of radiation exposure have been established for the protection of species other than man, it is generally agreed that the limits for humans are also conservative for other species. Doses from gaseous effluents to terrestrial biota (such as birds and mammals) are quite similar to those calculated for man and arise from the same dispersion pathways and considerations. Because the effluents of the facility will be monitored and maintained within safe radiological protection limits for man, no adverse radiological impact is expected for resident animals. 4.7 ln-Plant Safetv The licensee has established and conducts an in-plant safety and radiation safety program. EFN stated that the in-plant safety program meets the requirements of the Mine Safety and Health Administration (MSHA), as well as those pertinent requirements of the Occupational Safety and Health Administration (OSHA). The licensee's operation is based on good safety practices and procedures. During mill operations, EFN has a fulltime safety official on staff to meet all safety requirements established by Federal regulations. During routine radiation safety inspections, NRC, to the best of its ability, observes in-plant industrial safety for deficiencies and brings any identified deficiencies to the attention of plant management. NRC, through 10 CFR Part 20 and license conditions, requires a radiological safety program that contains the basic elements needed to assure that exposures are kept low or, in any event, as low as is reasonably achievable (ALARA). Therefore, an in-plant radiation safety program including the following is required: 16 DRAFT January 3, 1997 . Qualified management of the radiation safety program and appropriate training of personnel; . Written radiation procedures; . Airborne and surface contamination sampling and monitoring; . lnternal and external radiation monitoring programs; . An approved respiratory protection program; and . An annual ALARA audit and frequent in-house inspections. NRC considers the program of in-plant safety, as required by Federal regulations, and the radiation safety program as defined by 10 CFR Part 20 to be sufficient to protect the worker during normal operations. The NRC evaluation of the licensee's radiation safety program is discussed more fully in the SER. 5.0 ENVIRONMENTAL EFFECTS OF ACCIDENTS 5.1 Failure of Chemical Storage Tanks At the mill, tanks are used to store a variety of industrial chemicals, process fluids, and slurries, as well as flammable liquids. Various systems have been implemented to contain or direct routine or unplanned spillage. Tanks which are most likely to overflow are equipped with high-level alarms to reduce the possibility of spillage due to tank overflow. Spills resulting from the failure of any chemical holding tank would first be contained by engineered dikes or curbs. lf the volume was too great, such as that from a rupture in one or more of the large production tanks, flow would be captured by a lined catchment basin west of the mill, with a capacity of 1.5 million gallons. As a final containment, if all liquids within the mill process storage area escaped, Cell No. 1-l is engineered to capture this kind of catastrophic flow. 5.2 Fires and Explosions The most likely place for a fire to occur would be in the solvent extraction building or in the yellowcake or vanadium dryers. The possibility of a fire as a result of an explosion in the yellowcake dryer and solvent extraction building is remote since lndustrial Safety Codes will be strictly enforced. The solvent extraction circuit is located in a separate building due to the large quantities of kerosene present. Additionally, the warehouse, offices, and solvent extraction building are equipped with sensor- operated fire suppression systems, and hose stations are located in the millyard. The main water supply tank has a 250,000-gallon reserve for fire fighting, which is connected to an automatically- starting, diesel-fired pump if electricalservice is interrupted. Allfire suppression systems are routinely checked. 17 DRAFT January 3, 1997 ln the event of a line rupture, an explosive ammonia-air mixture could be formed inside the mill and solvent extraction buildings. Constant operator presence, facility emergency procedures, emergency vent fans, and piping sized to reduce potential ammonia release amounts all serve to minimize the potential for such an accident. 5.3 Pipeline Failure The rupture of a pipeline between the mill and the tailings impoundments would be caught by automatic alarms or by routine daily inspection. lf a leak did occur, no long-term damage would result. The pipelines are situated so that the leaking fluids would be directed into other tailings impoundments. ln the event that tailings would leak into an unwanted area, that material could be retrieved by heavy equipment accompanied by appropriate radiological safety and radiological surveys. 5.4 Minor Pipe or Tank Leakage Minor leaks resulting from, for example, loose connections in piping or tanks overflowing, will be collected in sumps designed for this type of spill. Sump pumps will be used to return the material to the circuit, and the reason for the spill will be determined and corrected. 5.5 Tailings lmpoundment Svstem Accidents The tailings cells at the White Mesa facility were designed and constructed as partially below-grade impoundments, and in accordance with Regulatory Guide 3.11 and Staff Technical Position WM-8201. Therefore, the potential failure of the cells is considered to be unlikely. ln addition, each tailings cell embankment is monitored regularly for stability as part of the licensee's site inspection program, and the results of these inspections are reported to NRC. 6.0 RECLAMATIONANDDECOMMISSIONING The licensee is expected to submit a revised detailed site reclamation plan in early 1997 for NRC review and approval. NRC will review the plan in accordance with the requirements of 10 CFR Part 40, Appendix A, and applicable staff guidance documents. Because NRC has yet to receive the reclamation plan, EFN will be required by license condition to provide the plan to NRC by June 30, 1997, for its review and approval in the form of a license amendment. Site decommissioning will be conducted under a plan approved by NRC. EFN will be required by license condition to submit a detailed decommissioning plan to NRC for approval at least 12 months prior to the planned final shutdown of mill operations. 7.O ALTERNATIVES The action under consideration is the renewal of Source Material License SUA-I358, for continued operation of the White Mesa mill, as requested by EFN. The alternatives available to NRC are to: 18 DRAFT January 3, 1997 (1) Renew the license with such conditions as are considered necessary or appropriate to protect public health and safety and the environment; or (2) Deny renewal of the license. Based on its review of the information identified in Section 1.3.2, the NRC staff has concluded that the environmental impacts associated with the proposed action do not warrant denial of the license renewal. lt is the staff's conclusion that the impacts associated with the license renewal are within the realm of impacts anticipated in the FES (NRC, 1979) and the previous EA (NRC, 1985). Additionally, in the SER prepared for this action, the staff has reviewed the licensee's proposed action with respect to the criteria for license issuance specified in 10 CFR Part 40, Section 40.32, and has no basis for denialof the proposed action. 8.0 FINANCIAL SUREry Under 10 CFR Part 40, Appendix A, Criterion g, licensees are required to establish a financial surety adequate to cover the estimated costs for (1) decommissioning and decontamination of the mill and mill site, (2) reclamation of any tailings or waste disposal areas, (3) ground water restoration, as warranted, and (4) the long-term surveillance fee. The surety is based on an estimate which must account for the total costs that would be incurred if an independent contractor were contracted to perform the work. The surety estimate must be approved by NRC and be based on an NRC-approved decommissioning and reclamation plan. The licensee must also provide the surety arrangenemt through a financial instrument acceptable to NRC. The licensee's surety mechanism will be reviewed by NRC annually to assure that sufficent funds are available to complete reclamation Additionally, the amount of the surety should be adjusted to recognize any increases or decreases in liability resulting from inflation, changes in engineering plans, or other conditions affecting cost. The surety for the White Mesa mill is carried by Umetco, under an agreement between EFN and Umetco. The current surety amount of $10,9'1 5,647 was reviewed and approved by NRC in August 1996. EFN will be required by license condition to maintain a financial surety arrangement in accordance with the requirements of Criterion 9. The surety requirements will be reviewed at least annually by NRC to assure that the funds and the surety arrangement are acceptable. 9.0 CONSULTATION WITH THE STATE OF UTAH 1O.O FINDING OF NO SIGNIFICANT IMPACT EFN has applied to NRC to renew Source Material License SUA-1358 to authorize continued operations at the White Mesa uranium mill, located in San Juan County, Utah. NRC has reexamined actual and potential environmental impacts associated with yellowcake production at the mill site, and has determined that renewal of the source material license (1) will be consistent 19 DRAFT January 3, 1997 with requirements of 10 CFR Part 40, (2) will not be inimical to the public health and safety, and (3) will not have long-term detrimental impacts on the environment. Therefore, based on an evaluation of EFN's renewal request, the NRC staff has determined that the proper action is to issue a Finding of No Significant lmpact (FONSI) in the Federal Register. The following statements support the FONSI and summarize the conclusions resulting from the staff 's envi ron mental assessment: An acceptable environmental sampling program is in place to monitor effluent releases and to detect exceedances of appropriate limits; The licensee has implemented an intensive, routine inspection program of the mill process building, associated facilities, and tailings retention impoundments, and conducts an annual ALARA audit program; Standard operating procedures (SOPs) are in place for all operational process activities involving radioactive materials that are handled, processed, or stored; Mill tailings and process liquid effluents from the mill circuit are discharged to partially below-grade, lined tailings impoundments, with leak detection systems; The licensee will implement an acceptable groundwater detection monitoring program to ensure compliance with the requirements of 10 CFR Part 40, Appendix A; The licensee will conduct site decommissioning and reclamation activities in accordance with NRC-approved plans; and Because the staff has determined that there will be no significant impacts associated with approval of the license renewal, there are no disproportionately high and adverse effects or impacts on minority and low-income populations. Consequently, further evaluation of'EnvironmentalJustice'concerns, as outlined in Executive Order 12898 and NRC's Office of Nuclear Material Safety and Safeguards Policy and Procedures Letter 1-50, Rev.1, is not warranted. Based on these findings, the NRC staff recommends that EFN's license for yellowcake production at the White Mesa uranium mill be renewed. The source material license shall be based upon the licensee's renewal application, this Environmental Assessment, the NRC staff's Safety Evaluation Report, and the license conditions which address environmental issues (see Section 10). License conditions addressing radiation safety concerns can be found in the SER. 11.0 CONCLUSION INCLUDING ENVIRONMENTAL LICENSE CONDITIONS Upon completion of the environmental review of EFN's application for renewal of Source Material License SUA-1358, the NRC staff has concluded that the operation of the White Mesa uranium mill, in accordance with the following conditions to be included in the renewed source material 20 DRAFT January 3, 1997 license, is protective of health, safety, and the environment, and f ulfills the requirements of 10 CFR Part 51. Therefore, the NRC staff recommends renewal of SUA-1358, subject, in part, to the following conditions: 1. The mill production rate shall not exceed 4380 tons of yellowcake per year. 2. A. The licensee may, without prior NRC approval, and subject to the conditions specified in Part B of this condition: (1) Make changes in the facility or process, as presented in the application. (2) Make changes in the procedures presented in the application. (3) Conduct tests or experiments not presented in the application. B. The licensee shall file an application for an amendment to the license, unless the following conditions are satisfied. (1) The change, test, or experiment does not conflict with any requirement specifically stated in this license (excluding material referenced in the Performance-Based License Condition), or impair the licensee's ability to meet all applicable NRC regulations. (2) There is no degradation in the essential safety or environmental commitments in the license application, or provided by the approved reclamation plan. (3) The change, test, or experiment are consistent with the conclusions of actions analyzed and selected in this EA. C. The licensee's determinations concerning Part B of this condition, shall be made by a "Safety and Environmental Review Panel (SERP).' The SERP shall consist of a minimum of three individuals. One member of the SERP shall have expertise in management and shall be responsible for managerial and financial approval changes; one member shall have expertise in operations and/or construction and shall have responsibility for implementing any operational changes; and, one member shall be the corporate radiation safety officer (CRSO) or equivalent, with the responsibility of assuring changes conform to radiation safety and environmental requirements. Additional members may be included in the SERP as appropriate, to address technical aspects such as health physics, groundwater hydrology, surface-water hydrology, specific earth sciences, and other technical disciplines. Temporary members or permanent members, other than the three above-specified individuals, may be consultants. D. The licensee shall maintain records of any changes made pursuant to this condition until license termination. These records shall include written safety and 21 DRAFT January 3, 1997 environmental evaluations, made by the SERP, that provide the basis for determining changes are in compliance with the requirements referred to in Part B of this condition. The licensee shall furnish, in an annual report to NRC, a description of such changes, tests, or experiments, including a summary of the safety and environmental evaluation of each. ln addition, the licensee shall annually submit to the NRC changed pages to the Operations Plan and Reclamation Plan of the approved license application to reflect changes made under this condition. The licensee shall submit to NRC by March 31 , 1997, for review and approval in the form of a license amendment, a standard operating procedure (SOP) for the SERP. The licensee shall not implement any provision of the Performance-Based License Condition until it receives NRC written approval of the SOP for the SERP. Standard operating procedures (SOPs) shall be established and followed for all operational process activities involving radioactive materials that are handled, processed, or stored. Standard operating procedures for operational activities shall enumerate pertinent radiation safety practices to be followed. Additionally, written procedures shall be established for non-operational activities to include in-plant and environmental monitoring, bioassay analyses, and 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 RSO before implementation and whenever a change in procedure is proposed to ensure that proper radiation protection principles are being applied. ln addition, the RSO shall perform a documented review of all existing operating procedures at least annually. Archeological contractors shall be approved in writing by the Commission. The Commission will approve an archeological contractor who meets the minimum standards for a principal investigator set forth in 36 CFR Part 66, Appendix C, and whose qualifications are found acceptable by the SHPO. Before engaging in any activity not previously assessed by the NRC, the licensee shall administer a cultural resource inventory. All disturbances associated with the proposed development will be completed in compliance with the National Historic Preservation Act (as amended) and its implementing regulations (36 CFR 800), and the Archaeological Resources Protection Act (as amended) and its implementing regulations (43 CFR 7). ln order to ensure that no unapproved disturbance of cultural resources occurs, any work resulting in the discovery of previously unknown cultural artifacts shall cease. The artifacts shall be inventoried and evaluated in accordance with 36 CFR Part 800, and no disturbance shall occur untilthe licensee has received authorization from the NRC to proceed. 3. 4. 22 DRAFT January 3, 1997 The licensee shall avoid by project design, where feasible, the archeological sites designated "contributing" in the attachment to this license entitled, "Archeological Sites Related to the White Mesa Project," submitted by letter dated July 28, 1988. When it is not feasible to avoid a site designated "contributing" in the attachment, the licensee shall institute a data recovery program for that site based on the research design submitted by letter from C. E. Baker of Energy Fuels Nuclear to Mr. Melvin T. Smith, Utah State Historic Preservation Officer, dated April 13, 1981. The licensee shall recover through archeological excavation all "contributing" sites listed in the attachment which are located in or within 100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at each site meeting these criteria shall be completed prior to the start of any project related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the licensee shall conduct such testing as is required to enable the Commission to determine if those sites designated as "Undetermined" in the attachment and located within 100 feet of present or known future construction areas are of such significance to warrant their redesignation as "contributing." ln all cases, such testing shall be completed before any aspect of the undertaking affects a site. The licensee is hereby authorized to possess byproduct material in the form of uranium waste tailings and other uranium byproduct waste generated by the licensee's milling operations authorized by this license. All liquid effluents lrom mill process buildings, with the exception of sanitary wastes, shall be returned to the mill circuit or discharged to the tailings impoundment. Mill tailings shall not be transferred from the site without specific prior approval of NRC in the form of a license amendment. The licensee shall maintain a permanent record of all transfers made under the provisions of this condition. The licensee shall maintain an NRC-approved financial surety arrangement, consistent with 10 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplished by a third party, for decommissioning and decontamination of the mill and mill site, for reclamation of any tailings or waste disposal areas, ground-water restoration as warranted and for the long-term surveillance fee. Within three months of NRC approval of a revised reclamation/decommissioning plan, the licensee shall submit, for NRC review and approval, a proposed revision to the financial surety arrangement if estimated costs in the newly approved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect within 3 months of written NRC approval. Annual updates to the surety amount, required by 10 CFR 40, Appendix A, Criteria 9 and 10, shall be submitted to NRC at least 3 months prior to the anniversary date which is designated as June 4 of each year. lf NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety arrangement, 5. b. 8. 9. 23 DRAFT January 3, 1997 the licensee shall extend the existing surety arrangement for 1 year. Along with each proposed revision or annual update, the licensee shall submit supporting documentation showing a breakdown of the costs and the basis for the cost estimates with adjustments for inflation, maintenance of a minimum 15 percent contingency fee, changes in engineering plans, activities performed and any other conditions affecting estimated costs for site closure. The basis for the cost estimate is the NRC-approved reclamation/decommissioning plan or NRC- approved revisions to the plan. The previously provided guidance entitled "Recommended Outline for Site Specific Reclamation and Stabilization Cost Estimates" outlines the minimum considerations used by NRC in the review of site closure estimates. Reclamation/decommissioning plans and annual updates should follow this outline. The currently approved surety instrument, lrrevocable Letter of Credit No. 500017012, issued by The Bank of New York in favor of NRC, as amended, May 10, 1994, to include a Standby Trust Agreement, shall be continuously maintained by UMETCO in an amount not less than $10,915,467 for the purpose of complying with 10 CFR 40, Appendix A, Criteria 9 and 10, until a replacement is authorized by NRC. Contaminated material and equipment generated at the mill site shall be disposed of as described in the licensee's submittals dated December 12,1994 and May 23, 1995, with the following addition: A. The maximum lift thickness for materials placed over tailings shall be less than 4- feet thick. Subsequent lifts shall be less than 2{eet thick. Each lift shall be compacted by tracking of heavy equipment, such as a Cat D-6, at least 4 times prior to placement of subsequent lifts. The licensee shall submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations. The licensee shall submit to NRC by June 30, 1997, for review and approval in the form of a license amendment, a detailed reclamation plan for the authorized tailings disposal area which includes the following: A. A post-operations interim stabilization plan which details methods to prevent wind and water erosion and recharge of the tailings area. B. A plan to determine the best methodology to dewater and/or consolidate the tailings cells prior to placement of the final reclamation cover. C. Plan and cross-sectional views of a final reclamation cover which details the location and elevation of tailings. The plan shall include details on cover thickness, physical characteristics of cover materials, proposed testing of cover materials (specifications and QA), the estimated volumes of cover materials and their availability and location. 10. 11. 12. 24 DRAFT January 3, 1997 D. Detailed plans for placement of rock or vegetative cover on the final reclaimed tailings pile and mill site area. E. A proposed implementation schedule for items A through D above which defines the sequence of events and expected time ranges. F. An analysis to show that the proposed type and thickness of soil cover is adequate to provide attenuation of radon and is adequate to assure long-term stability, as well as an analysis and proposal on methodology and time required to restore ground water in conformance to regulatory requirements. G. The licensee shall include a detailed cost analysis of each phase of the reclamation plan to include contractor costs, projected costs of inflation based upon the schedule proposed in item E, a proposed contingency cost, and the costs of long-term maintenance and monitoring. @ Monitoring data submitted in accordance with 10 CFR 40.65 shall be reported in the format shown in the NRC guidance document entitled, "Sample Format for Reporting Monitoring Data." ing tn The licensee shall implement the effluent and environmental monitoring program specified in Section 5.5 of the renewal application as revised with the following modifications or additions: A. Stack sampling shall include a determination of flow rate. B. Surface water samples shall also be analyzed semiannually for total and dissolved U-nat, Ra-226, and Th-230, with the exception of the Westwater Creek, which shall be sampled annually for water sediments and analyzed as above. A sediment sample shall not be taken in place of a water sample unless a water sample was not available. C. The licensee shall utilize lower limits of detection in accordance with Sectlon 5 of Regulatory Guide 4.14 (Revision 1 ), for analysis of effluent and environmental samples. 13. 14. 15. 16. 25 17. DRAFT January 3, 1997 D. The inspections performed semiannually of the critical orifice assembly committed to in the submittal dated March 15, 1986, shall be documented. The critical orifice assembly shall be calibrated at least every 2 years against a positive displacement Roots meter to obtain the required calibration curve. The licensee shall implement a groundwater detection monitoring program to ensure compliance to 10 CFR Part 40, Appendix A. The detection monitoring program shall be in accordance with the report entitled, "Points of Compliance, White Mesa Uranium Mill," submitted by letter dated October 5, 1994, as modified by the following: A. The leak detection system for all ponds will be checked weekly. lf liquid is present, it shall be analyzed for chloride, sulfate, selenium, and pH. The samples will be statistically analyzed to determine if significant linear trends exist, and the results will be submitted to NRC for review. B. lf a significant trend is indicated, the licensee will submit a proposed corrective action for review and approval to NRC. The corrective action shall include a discussion on delineation of the areal extent and concentration of hazardous constituents. C.The licensee shall sample monitoring wells WMMW-S, -11, -12, -14, -15, and -17, on a quarterly basis. Samples shall be analyzed for chloride, potassium, nickel, and uranium. Data for the quarterly groundwater parameters shall be maintained in graphical form, and copies of the graphs included with the environmental monitoring reports submitted in accordance with 10 CFR 40.65. REFERENCES Titan Environmental Corporation [Titan], 1994a, "Points of Compliance, White Mesa Uranium Mill," prepared for Energy Fuels Nuclear, lnc., September 1994. Titan, 1994b, "Hydrogeologic Evaluation of White Mesa Uranium Mill," prepared for Energy Fuels Nuclear, lnc., July 1994. Umetco Minerals Corporation, 1991 , "1991 White Mesa Mill License Renewal," 4 vols., August 1991. U.S. Nuclear Regulatory Commission [NRC], 1988, "Bioassays at Uranium Mills," NRC Regulatory Guide 8.22, Rev.1, August 1988. NRC, 1985a, "United States Nuclear Regulatory Commission Environmental Assessment Prepared by the Uranium Recovery Field Office in Consideration of the Renewal of Source D. 26 DRAFT January 3, 1997 Material License SUA-1358 for the Umetco Minerals Corporation White Mesa Uranium Mill," issued September 26, 1985. NRC, 1985b, "Safety Evaluation Report for Umetco Minerals Corporation White Mesa Uranium Mill, License SUA-1358, Docket No. 40-8681," issued September 26, 1985. NRC, 1983, "Hydrologic Design Criteria For Tailings Retention System," NRC Staff Technical Position WM-8201, January 1983. NRC, 1980a, "Operational lnspection and Surveillance of Embankment Retention Systems for Uranium Mill Tailings," NRC Regulatory Guide 3.1 1.1, October 1980. NRC, 1980b, "Radiological Effluent and Environmental Monitoring at Uranium Mills," NRC Regulatory Guide 4.14, April1980. NRC, 1979a, "Final Environmental Statement: Related to Operation of White Mesa Uranium Project, Energy Fuels Nuclear, lnc.," NUREG-0556, Office of Nuclear Material Safety and Safeguards, May 1979. NRC, 1979b, "Quality Assurance for Radiological Monitoring Programs (Normal Operations) - Effluent Streams and the Environment," NRC Regulatory Guide 4.15, February 1979. NRC, 1977, "Design, Construction and lnspection of Embankment Retention Systems for Uranium Mills," NRC Regulatory Guide 3.1 '1, December 1977. 27 , t llRC FOFM 374 (10-Eo)U.S. NUCLEAR REGULATORY PAGE 1 -or 12 ,-races MATERIALS LICENSE Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93-438). and Title 10. Code ofFederal Regulations, Chapter I, Parts 30,31,32,33,34,35,39,40 and 70, and in reliance on statements and representations heretofore made by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and special nuclear material designated below; to use such material for the purpose(s) and at the place(s) designated below; to deliver or transfer such material to persons authorized to receive it in accordance with the regulations ofthe applicable Part(s). This license shall be deemed to contain the conditions specified in Section 183 of the Atomic Energy Act of 1954, as amended, and is subject to all applicable rules, regulations and orders of the Nuclear Regulatory Commission now or hereafter in effect and to any conditions specified below. Ucensee l. Energy Fuels Nuclear, Inc.3. Ucense number SUA-1358, Amendment No. 4l 6425 S. Highway l9l P.0. Box 7&9 Blanding, Utah 84511 [Appl i cabl e Amendments :l0A, 351 | 5. Docket or 40-8681 Reference No 6. Byproduct, source, and/or special nuclear material Natural Uranium ) 4. Expintiono.,, SePtember 23' l99l 7. Chemical and/or physical form 8. Maximum amount that licensee may possess at any one time under this license UnI i mi tedAny 10. 11. 9. Authorized place of use: The Iicensee's uranium milling facilities located in San Juan County, Utah. The licensee is hereby authorized to possess byproduct material in the form of uranium waste tail'ings and other uranium byproduct waste generated by the licensee's milllng operations authorized by this license. For use in accordance with statements, representations, and conditions contained in Sections 3.6.6, 5.1, 5.3, 5.4,6.?, and 5.3, and Appendix E, Section 5, of the license renewal application dated January 1985, as revised May 1985, September 2, 1992, for the standby organizational structure, and l,lay 10, 1994, for the Standby Trlust Agreement. The l'icensee shall conduct operations, and statements reFerenied above, except where superseded by license conditions below. I'lhenever the l{ord "will'is used in the above referenced sections, 'it shall denote a requirement. [Applicable Amendments: 28, 31, 35] 12. The mill production per calendar year shall not exceed 4,380 tons of U.Or. 13. Any changes in the mill circuit as illustrated and described in Plate 3.1-l of thE Auguit l99l reneyral application, and revised by amendment request.of November ?2, 1904, for the addition of a second dryer, shall require approval by the U.S. NRC. [Applicable Amendments: 38] NRC FORM 3744o+.)ftucLEAR REGU LATORY COMilTSSION MATERIALS LICENSE SUPPLEMENTARY SHEET PAGE Liccnsc JUr-t- IJJO, }rlllE Docket or Referenc: Numbcr PAGES 14. 15. 15. t7. 18. Release of equipment or packages from the restricted area shall be'in accordance with the NRC document, "Guidelines for Decontamination of Facilities and Equipment Prior to Release for Unrestricted Use or Termination of Licenses for Byproduct or Source l'{ateri al s , " dated September, 1984 . [Appl icable Amendments: 38] The licensee shall avoid by project design, where feasible, the archeo'logical sites designated "contributing" in the report, "Archeological Sites Related to the Hhite I'lesa Project," submitted by letter dated JuIy 28, 1988. hlhen'it is not feasible to avoid a site designated 'contributing' in the above report, the I icensee shall inst.itute a data rg€o.ve-qy;i,prpgram for that archeolog'icaI site based on the research design stibnitteif'U!. Ietqer from C. E. Baker of Energy Fue'ls Nuclear to Mr. I'lelvin T. Smith, Utah State HiStbfic Preservation Officer (SHP0), dated April 13, 1981". , r ., The Iicensee shall l'e8over through archeological excavatlon all "contribut'ing" sites listed in the July 1988 report which are located in or. within 100 feet of borrow areas, stockpile areas, construction areas, or the perimeter of the reclaimed tailings impoundment. Data recovery fieldwork at each archeologicalsite meeting these criteria shall be completed prior to the start of any proiect related disturbance within 100 feet of the site, but analysis and report preparation need not be complete. Additionally, the Iicensee shall conduct such testing as'is required to enable the Commission to determine if those sites des'ignated as "Undetermined" in the July 1988 report and located w'ithin 100 feet of present or known future construction areas are of such significance to warrant their redesignation as "contributing.n In''all cases, such testing shal"L.,be compli$ed before any aspect of the undertaking-.affects a site. tApplicab"l#;AmendmeQis: 15, 381 Archeological contractors shalI be approved in writing, by the Commission. The Commission will consult with the SHPO regarding the'qualifications of all archeological contractors and the quality of tfre laboratory fac'ilities they will use. The Commission will appiove an trchoolo$tcal contractor who meets the minimum standards for a principal invEstigitor set forth 'in 36 CFR Part 66, Appendix C, and whose qualifications are found acceptab'le by the SHP0. The licensee shall conduct an annual survey of land use (private residences, grazing areas, private and public potable water and agricultural we11s, and non-residential structures and uses) in the area within five miles (8 km) of any portion of the restricted area boundary and submit a report of this survey to the NRC. This report shall indicate any differences in land use from that described in the last report. [Applicab]e Amendments: 381 The results of all effluent and environmental monitoring required by this license shall be reported in accordance with l0 CFR 40, Section 40.55 with copies of the report sent to the NRC. I'lonitoring data shall be reported in the format shown in NRC Regulatory Guide 4.148, "sample Format for Reporting Monitoring Data." [Appl icable Amendments: 38] Printed m recycled papet NRC FORM 3744o{,)PAGE OF PAGES MATERIALS LICENSE SUPPLEMENTARY SHEET Before engaging in any act'ivity not previously assessed by the NRC, the licensee shall prepare and record an environmental evaluation of such act'ivity. When the evaluation indicates that such activity may result'in a significant adverse environmental impact that was not previously assessed or that is greater than that previously assessed, the licensee shall provide a written evaluation of such activities and obtain prior approval of the NRC in the form of a llcense amendment. The licensee shall maintain an NRC-approved financial surety amangement, cons.i,stent with l0 CFR 40, Appendix A, Criteria 9 and 10, adequate to cover the estimated costs, if accomplishe.fl bl a tlrif(..Darty' for decommissioning and decontami nati on of the mi I I and mll I si te, fon necl amati on of any ta'i 'l i ngs or waste disposal areas, groundrater restoration Es {rarranted and the long-term surveillahce fee. t{ithin'three months of NRC approval -of a revised reclamation/decommisSioning plan, the licensee shall subm'it, for NRC revjew and approval, a proposeil revisibn to the financial surety arrangement jf estimated costs in the newly apprroved plan exceed the amount covered in the existing financial surety. The revised surety shall then be in effect withjn 3 months of written NRC approva'l . Annual updates to the surety amount, required by t0 CFR 40, Appendix A, Criteria 9 and 10, shall be submjtted to the NRC at least 3 months prior to the anniversary date which is designated as June 4,'of each year., If the NRC has not approved a proposed revision to the surety coverage 30 days prior to the expiration date of the existing surety amangement, the licensee shall extend the existing surety arrangement for one year. Along with each proposed revis'ion or annual update, the licensee shall submit supporting documentat'ion showing a breakdowh of the costs and: the basis for the cost estimatss with adjustments for'inflation, maintenance of a minimum 15 percent3.*ontingency fee, changes in eng'ineering plans,'activities performed-and any other conditions affecting estimated costs for si^te closure. The basis for the cost estimate is the NRC approved reclamation/decorrnissioning plan or NRC approved revisions to the p1an. The NRC guidance document, nRecommended Outline for Site Specific Reclamation and Stabilization Cost Estimates','' outlines the minimum considerations used by the NRC in the review of site closure estlmateS. Reclamation /decommissioning plans and annual updates should follow this outline. The cumently approved surety instrument, Irrevocable Letter of Credit No. 500017012, issued by The Bank of New York in favor of the NRC, as amended, I'lay 10, 1994, to include a Standby Trust Agreement, shall be cont'inuously maintained by UtlETC0 in an amount not'less than $10,645,247 for the purpose of complying wlttr tO CFR 40, Appendix A, Criteria 9 and 10, until a replacement'is authorized by the NRC. [Applicable Amendments: 12,21,26,29,32,35,36,38, 39] Prior to termination of this ljcense, the licensee shall provide for transfer oftitle to byproduct materia'l and land, 'including any interests therein (other than land owned by the Un'ited States or the State of Utah), wh'ich is used for the disposal of such byproduct material oris essential to ensure the long term stability of such disposal site to the United States or the State of Utah, at the State's option. TUCLEAR FEGULATORY COttlSSlOil 19. 20. ?t. Printed o{ ccycled papq( llrucLEAR REGULATOFV cottlssloll MATERIALS LICENSE SUPPLETENTARY SHEET NRC FORM E7'IA(74,1 PAGE OF PAGES 22. The'licensee shall not make any without specific prior aPProval [Appl icable Amendments: 38] the present tailings retention system in the form of a l'icense amendment. 23. The licensee shall implement the interim stabi'lization program submitted to the liC Uy Ietter dated Dbcember 18, 1985, for all tailings not covere4 by standing water-. This program shall include written operating procedures and shall minimize dispLrsit of blowing tailings. The-effectivilness of the control method used shall bb evaluated weekly by meins of a documented ta'i'lings area inspection. , , [Appl i cabl e Amendment,s: l, 3] :i r ',il. The licensee shall implement tn! !#ffuttnt'.na Bpvironmental monitoling program specified in Section b.5of"the ienewal applidatfon as revised w'ith the following modi f i cati ons or addi tions: :i .. A. Stack sampling'sliall include a determination of flor rate. B. DELETED by Amendment No. 4l [Applicable Amendment: 41] C. Surface water samp'les shall also be analyzed semiannually for total lnddissolved U-nat, ha-225, and Th-230 with the exception of the I'lestwater Creek, which snitt be sampled annually for water or sediments and analyzed as above. A sediment samble shall not be taken jn place of a water sample unless a water sample was not available. D. Ground-water samples from Monitoring wells l, ?,3,4,-5, 11, 12,14,.15, and the culinary'water well, shall be analyzed quarterly for pH, specific conductancg r,ehi orides, suliatesn TDs;, a[d:,i]-nat. QuartellV. water_ I evel measurementi-.shall als6 be made':'Groundrsiter sampTes shall be analyzed semiannually for arsenic, selenium, sodiunl; Ra-226, Th-230, and Pb-210. E. Data for the quarterly groundwater parameters shall be maintained in- graphical forni and colies of the gr-aphs included with the environmental ilonitoring reports submitted in accordance'with 10 CFR 40.65. F. The licensee shall utilize lower'limits of detection in accordance with Section 5 of Regulatory Guide 4.14, Revisio! l, dated April 1980' for analysis of effluent and environmental samples. G. The inspections performed semiannually of the critical orifice assemblycomittei to in the submittal dated March 15' _ 1985, thal I _ be documenied. The critical orifice assemb'ly shalI be calibrated at least every 2 years against a positive displacLment Roots meter to obtain the required cal ibration curve. H. The licensee is authorized to discontinue high volume air particulate radionuclide samp'ling at station BHV-3 and to use the quarterly average background'readings specified in the licensee's letter of JulY 27, 1995. [Applicable Amendments: 2, 15, 28, 31, 41] ZS. The licensee shall submit to the NRC by March 15, 1985, for review and approval changes toof the NRC ----! jf6:f-J jaflr-6lllE Dockct or Refercncc Numbct Printed m rccycled Paper ilRC FORM 3744(7{4} !I-S. NUCLEAR REGULATORY COMUISSIONo MATERIALS LICENSE SUPPLEMENTARY SHEET Docket or RefercncC Number in the form of a license amendment a detailed reclamation plan for the authorized tailings disposal area which includes the fol'lowing: A. A post operations interim stabilization plan which details methods to prevent wind and water erosion and recharge of the tail'ings area. B. A plan to determine the best methodology to dewater and/or consolidate the tailings cells prior to placement of the final reclamatjon cover. B,.ir,, .q.,'Plan and cross-secti.onal, uiews of a final reclamation covef ,whichrdetails, cover thickness, rphysical thdiacterfitic's1qf cover materi'al s, proposed testing of cover materiaJs (specifications''afid QA), the estimated volumes of cover materjals,and the'ir availabil ity and locatio,Jt. D. Detailed plans'fdr placement of rock or vegetative cover on the final reclaimed tai)ings pile and mil'l site area. E. A proposed implementation schedule for items A through D above which defines the sequence of events and expected time ranges. F. An analysis to show that the proposed type and thickness of soil cover is adequate to provide attenuation of radon and is adequate to assure long term stability as well as an analysis and proposal on methodo:logy and time required to restore ground water in conformance to regulatory requirements. G. The Iicensee shall include a detailed cost analysis of each phase of the reclamation plan to include contractor cos-t$,; projectEd costs of inflatjon based upon the schedule proposed in item'Si a propoied contingency cost, and the costs of long term maintenance and monitoring, [Applicable Amendments: 38] The Iicensee shall conduct a,tailings retention system and liner inspection program in accordance with Section 5.5.7 ad Appendix D, Section 3.0, of the i.enewal application. Notwithstanding any'statements to the contrary, changes in inspectioh-frequency shal'l requ'ire the approval of the NRC in the form of a licbnse amendment. Further, copies of the report documenting the annual technical evaluation shall be submitted to the NRC within I month of the completion of the report. During standby operations, when no effluent is being produced, appropriatgly trained shift foremen are authorized to conduct the daily tailings retention system and liner inspections. Training shall be properly documented. However, the Environmental Coordinator shall continue to conduct weekly, monthly and quarterly routine inspections during standby periods. [Applicable Amendments: 28, 38] The licensee is hereby exempted from the requirements of Section 20.203(e){?) of lO CFR 20 for areas wittrin the mill, provided that all entrances to the mill are conspicuously posted in accordance with Section 20.203(e)(?)..anA with the words, "Any'area within this milI may contain radioactive material." 26. ?7. m rccycled papdt t{RC FORM 3744o4.l PAGES MATERIALS LICENSE SUPPLEMENTARY SHEET The results of sampling, analyses, surveys and monitoring, the results of calibration of equipment, reports on audits and inspections, all meetings and training courses required by this l'icense and any subsequent reviews, investigations, and corrective actions, shall be documented. UnIess otherwise specified in the NRC regulations all such documentation shall be maintained for a period of at least five (5) years. Standard operating procedures (S0Ps) shall be established for all operational. process activitiei involving radioactive materials that are handled, processed, b,r stored. Standard operating procedures for operational activities shall.iruili.il.'p.iiin.nt raiiation,-sifety plpqtices Lo be followed. Additional'ly,- wri tten prbcedures shal I be establ lihbd' ftf nbn-operati onal acti vi ti es to 'incl ude in-p'lant and environmental monitoring, bioassaynanalyses, and instrument calibrations. An up-to-date copy of each written procedure shall be kept in the miII area to which il applies. :'ii All written procedures for both operational and non-op..ition.l activities shall be reviewed ind approved in writing by the Rad'iation Protect'ion 0fficer (RP0) before implementation and whenever a change in procedure is proposed to ensure that proper radiation protection principles are being app'lied. In addition, the RPO shali perform a documented review of all existing operating procedures at least annually. During extended periods of miII standby, eight-hour annual sampling for U-nat, Ra-226, Th-230 and Pb-210 may be eliminated if routine airborne sampling show levels below l0 percent of the maximum permissible concentration (t'lPC). Further, during periods of standby, sampling frequencies for area airborne uran'ium sampling within the mill may be reduced to quarqer.JV, proui.ded measured levels remiin Selow l0 pe[cent of the MPC. If these,]pvels exceed l0 percent of the l.lPC, the sampling frequency should follow Regulatory Guide 8.30 recommendations. [Applicable Amendments: 28, 38] The RPO shall have the following education, trlining and experience: A. Education: A bachelor's degree fn thd physical sciences, industrial hygiene, or engineering from an accredited college or university or an eq[ivalent combination-of training and relevant experience in uranium mill radiation protection. Two (2) years of relevant experience are generally considered equivalent to one (l) year of academic study. B. Health physics experience: At least I year of work experience relevant to uranium mill operation in appl'ied health physics, radiation protection, industrial hygiene, or similar work. This experience should involve actually working with radiation detection and measurement equipment, notstrictly administrative or "desk" work. C. Specialized training: At least 4 weeks of specialized classroom training lnhlalth physics specifically applicable to uranium milling. In addition, the RPO should attend refresher training on uranium mill health physics every two (2) years. SNUCLEAR REGULATORY COIUTSSTON i JUn- IJJC, r fllllEl Dockct or Refercnce Numbcr 28. 29. 30. NRC FORM 374A (-/-9{) NUCN"EAR REGULATORY COTTISSION PAGES MATERIALS LICENSE SUPPLEIIIENTARY SHEET , 31, D. Specialized knowledge: A thorough knowledge of the proper application and use of all health physics equipment used in the mjll, the chemical and analytical procedures used for radiological sampling and monitoring, methodologies used to calculate personnel exposure to uranium and its daughters, and a thorough understanding of the uranium milling process and equipment used in the mill and how the hazards are generated and controlled during the milling process. [Applicable Amendments: 38] The license shall be required to use a Radiation t{ork Permit, (Rt{P) for all work or non-routine maintenance jobs where tlre pqtential for significant exposure to radioact'ive material exists and:.fb? whTcff rib'sgandard written operating procedure already exists. The Rl{P shdl}ibe issued by th'e'RPO or his designate, qualified by way of specialized radiation protection trainirg, and shall at Ieast describe the fol I owi ng:' r , ., A. The scope of the work to be performed. B. Any precautions necessary to reduce exposure to uranium and its daughters. C. The supplemental radiological monitoring and sampling necessary prior to, during, and following completion of the work. In addition, the RPO's review of all non-routlne activities, committed to in Section 5.3.1 of the renewal appl'lcation, shall be documented. The RPO and mill foreman, or qualified designees, shall perform weekly i nspecti ons of a"'l I mi I I areas to obsenve general.:- rildi ati of control pract'ices. However, the RPO shall conduct a minimum.of onq weekly inspection per month during mill standby and two weekly inspections per month during production. A member of the radiatioR protect'ion staff'shall perform a daily walkthrough inspection during weekdays, with qualified supervisory personnel performing the 'inspection on weekends. In addition, the RPO shall prepare a monthly report which includes a review of ditly and weekly inspections, and a summary of all monitoring and exposure data for the fionthj' A copy of the monthly report shall be submitted to the 0perations Hanager. [Applicable Amendments: ?81 33. A copy of the annual ALARA report described in Section 5.3.2.2, of the renewal app'lication as modified by Ietter dated January 20, 1987, shall be submitted to the NRC by April I, 1987, and every year thereafter. [Applicable Amendments: 5, 38] 34. The licensee shall maintain effluent control systems as spec'ified in Table 4.1-l of the licensee's renewal application with the following additions: A. 0perations shall be jnmediately suspended in the affected area of the mjll'if any of the emission control equipment for the yellowcake drying or packaging areas is not operating within spec'ifications for design performance. 32. Docket or Reference Number Printed on recyclcd puper: NRC FORM 3744 c7.s{, Ir' ,} rt; 35. 36. 37. MATERIALS LICENSE SUPPLEMENTARY SHEET UCLEAR REGULATC'RY @MMls$ON PAGES Licensc B. The Iicensee shall, during all period of yellowcake drying operations, assure that the scrubber is operat'ing within the manufacturer's recommended ranges for water flow and air pressure differential necessary to achieve design performance. This shall be accomplished by either (l) perform'ing and documenting checks of water flow and air pressure differential approximately every four hours during operation or (2) 'installing instrumentation whichwill signal an audible alarm if either water flow or air pressure differential fall below the manufacturer's recommended levels. If any audible alarm is used, its operation shall be checked and documented daily. 'emi ssi on .'b#trbl' equi pment tnat r ;Ppr shift during oPerations. Sample volume and analysis for all in-plant air monitoring shall be adequate to ach'ieve an LLD of 1.0fl,,0f the MPC listed in Table l, Appendix B of l0 CFR 20. The licensee shall utiltize the results of Iapel sampling in calculating employee exposures when the lapel samplers are used. 0ccupational exposure calculations shall be performed and documented with'in one week of the end of each regulatory compliance period as specified inl0 CFR 20.103(a)(2) and l0 CFR 20.103(b)(2). Routine airborne ore dust and yellowcake samples shall be analyzed in a timely manner to allow exposure calculations to be performed in accordance ulth. this conditlsn. Non-routine ore dust and yelloucake samples shall be analyzed and the results reviewed by the RPO within two working days after sample collection. [Applicab]e Amendments: 381 38. The licensee sha.Il conduct a bioassay prograts inaccordange with Section 5.4.?.4of the renewal appl,ication with the following,g{dition:. A. A urinalysis program shall be conducted for mill personnel as specified in Section 1.4.1 of the "Radiation Protection Procedures Hanual" as revised June, 1985. ,riB. Laboratory surfaces used for bioassay analyses shall be decontaminated to less than 25 dpm alpha-(removable)/100 cm2 prior to analysis of samp'les. C. Anytime an action Ievel of 15 ug/l uranium for urinalysis or 9 nCi of natural uranium for in vivo measurement is reached or exceeded, the l'icensee shall document the corrective actions which have been performed in accordance with Revision I of Regulatory Guide 8.?2, dated January 1987. This documentation shall be submitted to the NRC as part of the semiannual report required by l0 CFR 40.55. D. Anytime an action level of 35 ug/l for two consecutive specimens or 130 ug/l uranium for one specimen for urinalysis or 16 nCi uranium for an in vivo measurement is reached or exceeded, the Iicensee shall document the corrective actions which have been performed in accordance with Revision I of Regulatory Guide 8.22. This documentation shall be submitted to the NRC within thirty (30) days of exceeding the action level. c. Ai r piletsurb ai rrerentiil be rbad and the readirigs Docket or Refercncc Number Printed on rccycled papel I NRC FORM 374A (7€.1) uaf UGLEAR REGU LAToRY corrMlssloN MATERIALS LICENSE SUPPLEMENTARY SHEET E. The licensee is released from the commitment in its license appl'ication dated January 29, 1985, for performing routine in vivo measurements of mill personnel. These measurements shall be performed in accordance wjth the recorunendations contained in Revision I of Regu'latory Guide 8.22. [Applicab]e Amendments: 9, l0A, 38I 39. Surveys for fixed and removable alpha contamination shall be conducted in accoriance with Section 2,3.2.2 of the 'Radiation Protection Procedures Manual" as revised June, 1985. Action levels shall be as specified in Section 2.3.4 of the procedures manual 40. Calibration of in-plant air" .ni radiatioii:rionitqring equipment shall be as specified in Sectibn 3.0 of the "Radiation Protectjon Procedures Manual" as rbvised June, 1985, with the exception that in-plant air sampling equi.pment shall be calibratei at l6asfi'quarter'ly and the Kurz meter will be calibrated at least annually. Air sampl'ing'equipment shall be checked prior to each use, and the checks documented. [Applicable Amendments: 28) 41. The Iicensee shall submit a detailed decommissioning plan to the NRC at least twelve (12) months prior to planned final shutdown of mill operations. 42. Disposal of material and equipment generated at the mil'l site, shall be_conducted accbrd'ing to the Licensee'i pi'oceduie, "Radioactive Contaminated I'laste Disposa'l , " and the iescription provided'in the Licensee's letters of December 12, 1994, and May 23, 1995, to the'NRC. [Applicable Amendments: 1, 3, l0A' 38, 40] 43. Mill tailings other than samples for research shalI not_be transferred from the site withou[ specific prior approval o"f the l{RC'"{'n the form of a license amendment. Tha licensbe shali'maintain a pemafient record of all transfers made under the provisions of this condition. 44. All liquid effluents from mill process buildings, uith the.excepliol gf.sanitary wastes, shall be returned to thl mill circuit or discharged to the tailings i mpoundment . 45. A decontamination and survey program for barrels containing yellowcake th1ll be conducted in accordance with Section 1.8 of Regulatory Guide 8.30, "HeaIth Physics Programs in Uranium l'liIls, " prior to shipment. The licensee sha'll implement the program to minimize dispersal of dust from the ore stockpile area(s)'as described in its letter dated December 18, 1985. This program shall incluO6 written operating procedures. The effectiveness of the tonlrol method used shall be eviluated-weekly by means of a documented inspection. [Applicable Amendments: l, 4, 38] The licensee shall implement, by December 31, 1985, the program proposed in-its Ietter dated 0ctober 31, 1986, ior the prevention of the release of material due to an S-X line rupture. Thirty days prior to the final p'lacement of the interim soil cover on Celi 2, the licensee shall propose a rupture detection program specific for CeIl 3. [Applicable Amendments: l, 3' 38] 46. 47. Printed on recycled NBC FOFM 37IA (7+{) NUCLEAR REGULATOFT COTMISSION PAGES MATER,IALS LICENSE SUPPLEMENTARY SHEET 48. The licensee shall implement a groundwater detectjon monitoring program to ensure compliance to l0 CFR Part 40, Appendix A. The detectjon monitoring program shall be in accordance with the Iicensee's August l, 1989, submittal and jnclude the fol I owi ng: The leak detection system for all ponds wil'l be checked weekly. If liquidis present, it shall be analyzed for chloride, sulfate, selenium and pH. The samples will be statistically analyzed to determine if significantlinear trends exist and the results will be submitted to the NRC for rev'iew. !. iIf a significant trend is .infli.catpdr-.tbe licensee will submit a proposed comective action for revi'en'ind:ilpilirivlu to the NRC. The corrective action shall include a discussion on delineation of the areal extent and concentration of hqardous constituents To determine dte{her increases in the Pond 2 leak detection system are fromtailings seepage or from sedimentation pond seepage, the licensee shall byApriI l, 1991, implement the changes proposed in their submittal of April 3, 1990. In addition, the licensee shall collect a minimum of six samples characterizing the sedimentation pond material prior to construction and analyze for U-nat and Ra-226. A copy of the analyses shall be submitted by February 15, 1991. D. The licensee sha'll sample monitoring rells 5, ll, 12, I{, and 15 forpotential hazardous constituents and subrnit this data to the NRC so that background can be established and groundwater protection standards set. [Appljcable Amendments: 6, 8, 10, 16, 22,387 DELETED by Amendment No. 38. [Applicable 38]. DELETED by Amendment lio. 38. [Applicable Amendments: 14, 38] The licensee is authorized to construct CeIl 4A in accordance with the plans and specifications contained in the licensee's,Fetjiuary 8, 1989, subm'ittal as revised by the January 10, 1990, submittal. Additionally, the following cond'itions wil I al so apply A. Effective with issuance of Amendment No. 20 and until April 30, 1990, the maximum operating elevation in CelI No. l-I shall not exceed 5616.1 feet. Beginning on l,lay l, 1990, the maximum operating elevation in Cell No. l-I shall not exceed 5615.4 feet, which will provide 2.8 feet of freeboard. B. Effective with issuance of Amendment No. 20 and until April 30, 1990, the maximum operating elevation in CeIl No. 3 shall not exceed 5605.4 feet. Begi nni ng on tlay I , 1990, the maximum operati ng el evati on 'in Cel I No. 3 shall not exceed 5603.0 feet which will provide 5.0 feet of freeboard. When the volume of tailings approaches 600,000 tons, considering all tailings placed since 0ctober 23, 1989, the l'icensee shall revise the maximum operating elevation for Cell No. 3 in accordance with the procedures specif ied in their January 10, 1990, subm'ittal . The revised elevat'ion shal I A. c. 49. 50. 51. hintcd m rccycled pt+di NRC FORM 3744(74.)PAGE I r OF r.r PAGES MATERIALS LICENSE SUPPLEMENTARY SHEET be submitted for NRC review and approval jn the form of a l'icense amendmentrequest. The amendment request shall be submitted to NRC by the time thetotal tonnage of dry tailings reaches the 600,000 ton Iimit. C. The maximum operating elevation for Ce'll 4A shall not exceed 5596.4 feet, which will provide 1.6 feet of freeboard. D. DELETED by Amendment No. 24. ;,r,,. j . E. DELETED by Amendment No. ?4. , i F.' DELETED by Amendment No.: ?8.t"';: ;*f *"J l-,' I " u [Applicable Amendments:". 17;, 18, 19, 20, 24, 257 .. 52. The I'icensee is authorized to construct a spillway between Cell 2 and Cell 3 in accordance with the pl.ans contained in the licensee's October 9, 1990, submitta'|. 0nce the spillway has been constructed, storage of liquids and tai'lings wi'll bepermitted in Cell No. 2. [Applicab]e Amendments: 251 53. The licensee is authorized to place interim cover over exposed tailings jn the disposal cells. If the placement of material will impact flood routing for the disposal area, a request to modify the freeboard requirements must be submittedin the form of a license amendment. [Appltcable Amendments:' 27] 54. DELETED by Amendment No. 38. [Applicable Amendments: 38] 55. In accordance with,the licenseels suffittat dated I'lay 20," 1993, the licensee is hereby authorized to dispose of byproduct matep,tal generated at licensed in sjtu leach facilities, subject to the following condftions: A. Disposal of waste is limited to 5,000 cubic yqrds from a single source. B. All contaminated equipmtint shall.be dismarrtled, crushed, or sect'ioned to minimize void spaces. Barrels ecintalhing waste other than soil or sludgesshall be emptied into the disposal area and the barre'ls crushed. Barrels containing soil or sludges shall be verified to be full prior to disposal. Barrels not completely full shall be filled with tailings or soil. C. All waste shall be buried in Cell No. 3 unless prior written approval is obtained from the NRC for alternate burial Iocations. D. AIt disposal activities shall be documented. The documentation shall include descriptions of the waste and the disposal locations, as wel'l as all actions required by this condition. An annual surTmary of the amounts of waste disposed of from off-site generators shall be sent to the NRC. [Applicable Amendments: 33, 37] 55. The licensee is authorized to receive and process source materials from theAllied Signal Corporation's l.letropolis, Illinois, facility in accordance with the amendment request dated June 15, 1993. [App'licable Amendments: 34] uuGLEAn REGULATORY COltrlSSlON Dockct or Refercnce Numbcr Printed m Ecycled paper NRC FORM 374A 17.€.1 TUCLEAB REGULATORY COutlSSpN MATERIALS LICENSE SUPPLEMENTARY SHEET 57. Notification to NRC under l0 CFR 20.2202, l0 CFR 40.50, and specific licenseconditions should be made as follows: Required written notice to NRC under this license should be sent to: Chief, High-Level Uaste and Uranium Recovery Projects Branch, Division of l{aste l.lanagement, Office of Nuclear l,laterial Safety and Safeguards, U.S. Nuclear Regul atory Corrni ssi on, l,lashi ngton, DC 20555. Required telephone notification to NRC should be made to the 0perations Center at (301) 816-5100. [Applicable Amendments: 38] . + 58. The Licensee is authorized to receive and process'source material from Phone-PouIenc Chemicalsi Freeport, Texas, in accordance with the amendmentrequest dated January 12, 1995, and supplemented by informatjon provided bytIetters of March 23,'1995, and July 21, 1995. AII Phone-Poulenc materialshall be processed or removed from the site prior to finishing the mill runthat began in August 1995. [Appticable Amendments: 41J FOR THE I{UCLEAR REGULATORY COMMISSION Date High-Level Uaste and Uranium Recovery Projects SectionDivision of Uaste Management0ffice.of t{iiclear Hateiial Safety and Safeguards SUA-1358. Amendment No. 4l Printed on recyclcd paper