DRC-2011-001729 - 0901a068801ff957

State of Utah
GARY R. HERBERT
Governor
GREG BELL
UeulenanI Governor
Department of fIDP OH^i O H ^ 0 Oi
Environmental Quality Unb" CUi i"UU it C>7
Amanda Smith
Execulive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
February 7, 2011
CERTIFIED MAIL
(Return Receipt Requested)
Chuck Wentz, Environmental Department Supervisor/RSO
Rio Algom Mining L.L.C.
P.O. Box 218
Grants, NM 87020
Re: Rio Algom Mining L.L.C. August 17, 2010, Lisbon Operation, 1'' Half 2010
Groundwater Stability Monitoring Report, Received by DRC August 25, 2010,
Radioactive Materials License No. 1900481, Amendment 3:
DRC Notice of Enforcement Discretion and Confirmatory Action Letter
Dear Mr. Wentz:
2010 1"' Semi-Annual Groundwater Stability Report
DRC has reviewed the document titled, "Rio Algom Mining LLC, License UT 1900481, Serni
Annual Groundwater Stability Monitoring Report - l" Half 2010, dated August 17, 2010"
(Report). The Report was received by DRC on August 25, 2010 to comply with requirements of
the Utah Division of Radiation Control Radioactive Materials License, UT1900481 (License),
Condition 53 (Ground Water Compliance Monitoring Program).
DRC found during the review of the Report and through additional correspondence with Rio
Algom (via e-mails and telephone conversations) that an "out of compliance (OOC)" status
occurred during the period. Rio Algom obtained two consecutive sample results for total Uranium
at well RL-1 above the License Target Action Levels. Rio Algom failed to follow the required
License actions for the OOC status. This has resulted in violations of License conditions as
discussed in the "Notice of Enforcement Discretion" section below.
Additionally, DRC found that the current Uranium time vs. concentration plot fpr well RL-1
shows an increasing trend. This is not in conformance with the February 19, 2004- Rio Algom
Long-Tenn Groundwater Monitoring Plan (LTGMP). This issue is discussed in the
"Confirmatory Action" Section beiow.
195 North 1950 West • Salt Lake City. UT
Mailing Address: P.O. Box 144850 • SaK Lake Cily. UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
\vw\v.deq.litah.f;nv
Printed on 100% recycled paper
Chuck Wentz, Rio Algom Mining L.L.C.
Page 2
Notice of Enforcement Discretion
DRC received notification via a letter dated May 19, 2010 from Rio Algom that the April 2010
sample results for Uranium at well RL-1 exceeded the Uranium License Target Action Level
(42.1 mg/L). Per DRC review of the EnergyLaboratories sheet submitted with the 1^' Semi
Annual report, it was noted that the report was issued on May 17, 2010. DRC noted that the
notification was within the 30-day notification requirement of License Condition 53.C.(1)
"Probable Out of Compliance" Status (POOC).
Rio Algom instituted elevated quarterly sampling for Uranium at well RL-1 per the requirement of
License condition 53.C.(2) POOC. Therefore it appears that all POOC requirements were
implemented in compliance with the License.
However, per DRC e-mail communication with Rio Algom representatives on December 27,
2010, it was noted that quarterly samples were taken August 2010 (3'^'' Quarter) and October 2010
(4'^ Quarter), and that the August sample result was again above the Target Action Level. Per the
License, these two consecutive exceedences (April and August) resulted in "Out of Compliance"
Status (OOC) and Rio Algom was required to initiate OOC License Conditions 53.C.(1), (2) and
(3) as listed below:
1) Verbally notify the Executive Secretary within 24 hours of discovery of the event; followed by
a written notice within 5 days of verbal notification:
2) Initiate monthly ground water sampling for the exceeded parameter in the well indicating the
exceedence unless the Executive Secretary determines that other periodic sampling is
appropriate, until the event is resolved to the Executive Secretary's satisfaction:
3) Prepare and submit within 30 days of discovery a plan and schedule to evaluate and assess the
source of the exceedence and possible actions needed to restore and maintain compliance with
License Condition 53.B. Such actions may include but are not limited to:
a) Re-evaluation of the ground water flow and contaminant transport models used to set
compliance limits and target action levels:
b) Additional site investigation and characterization, and investigation of potential
contamination sources, and:
c) Active ground water remediation deemed necessary by the Executive Secretary.
Rio Algom Mining failed to comply with the above three License Conditions.
Per Rio Algom e-mail notification to DRC on December 20, 2010, it was reported that the
October sample result for Uranium at RL-1 (4'*^ Quarter) was below the License Target Action
Level. DRC also noted that the August 2010 split sample result from the DRC contract laboratory
(Eberiine Services) for Uranium at RL-1 (39.5 mg/L) was below License Target Action Level.
Per a telephone conversation between DRC and Rio Algom representatives on January 4, 2010,
Rio Algom representatives reported that they were unclear regarding the OOC status definition
and thought that OOC status would not occur unless two consecutive exceedences occurred after
the original POOC exceedence. Consequentiy, the interpretation by Rio Algom would have
required three consecutive quarterly exceedences prior to OOC status. While DRC feels that the
Chuck Wentz, Rio Algom Mining L.L.C.
Page 3
License condition is clear (OOC is defined as two consecutive exceedences), DRC does
understand that this is the first violation of the License for OOC repoiting and that the current
License Modification (License UTI900481 Modification 3), which included an update to the
OOC reporting requirements, was recently issued (signed by the Executive Secretary January 2,
2010).
Based on these findings, DRC will not pursue formal enforcement action for the above violations
and will instead use Enforcement Discretion based on the following justifications:
1. This is a first time violation regarding OOC status notifications and required follow-up
actions,
2. The Rio Algom 4'^ quarter (October 2010) sample result was below the License Target
Action Level for Total Uranium at RL-1 (40.1 mg/L as reported to DRC via e-mail dated
12/20/2010),
3. The DRC RL-1 Uranium split sample result for the 3"" quarter (August 2010) was below
the License Target Action Level,
4. Rio Algom has agreed to provide additional investigation/deliverables regarding the
apparent increasing Uranium concentration trend at RL-1 as outlined in the "Confirmatory
Action" section below.
Confirmatory Action
Per DRC review of the time versus concentration plot and plotted regression line for well RL-1,
included with the 2010 l" Semi-Annual Groundwater StabiUty Report (includes 28 plots
beginning in January, 2003 to present), an increasing Uranium trend is shown for well RL-1. The
increasing trend is not in conformance with the predicted breakthrough curve for RL-1 in the
Long Term Ground Water Monitoring Plan, prepared by KOMEX, February 19, 2004 (LTGMP),
which depicts a decreasing Uranium concentration trend (Figure 6 of the LTGMP).
Based on this finding, the following confirmatory actions were negotiated during: 1. A telephone
conference call amongst Chuck Wentz (Rio Algom), Billy Ray (Rio Algom), Loren Morton
(DRC) and Tom Rushing (DRC) on January 26, 2011; 2. A follow up e-mail from Chuck Wentz
on January 27, 2011, and; 3. Subsequent conversations and e-mails between Rio Algom and DRC:
1. Rio Algom will hire an independent consultant, qualified to; 1. Review pertinent
information and documents, including the existing ACL model, relevant laboratory data,
LTGMP and associated technical information, and; 2. Provide potential additional ground
water modeling (revised ACL model), as appropriate. Per the January 27, 2011 e-mail,
Rio Algom expects that a qualified consultant can be under contract within 1 month of
receipt of this Confirmatory Action Letter (CAL). Rio Algom will notify DRC once the
contract has been finalized and provide information regarding the contractor name and
individual qualifications;
2. On or before May 1, 2011, Rio Algom will provide the Executive Secretary a detailed
written action plan and schedule for the investigation. The action plan is subject to review
and approval by the Executive Secretary. The action plan and schedule will include a
Chuck Wentz, Rio Algom Mining L.L.C.
Page 4
logic diagram identifying all actions, including dates that those actions will be initiated and
completed, necessary to achieve outlined performance objectives. Performance objectives
include but are not limited to:
a. Justify whether the current RL-1 data set is or is not sufficient to depict the
Uranium concentration trend;
b. Conclude with definitive evidence whether the Lisbon Valley Facility is operating
within or outside of the analyzed condition of the Nuclear Regulatory Commission
(NRC) approved "Application for Altemate Concentration Limits" (Approved May
11, 2004), and LTGMP, and;
c. Determine whether the ACL model should be revisitecJ/revised to account for more
recent data.
3. On or before August 1, 2011, Rio Algom will provide the Executive Secretary a written
final report. The report shall provide conclusions for all performance objectives listed in
the approved action plan and schedule.
DRC received confirmation of concurrence by Rio Algom with the above confirmatory actions
and schedule, after Rio Algom's review of a draft of this letter, via an e-mail dated 2/3/2011 (C/O
Tom Rushing, DRC).
If you have questions or concems, please contact Tom Rushing at [phone].
Sincerely,
UTAH RADIATION CONTROL BOARD
Rusty Lundbefg, Executive Secretary
RL:TR:tr
cc: David Ariotti, DEQ District Engineer
Ann Marie Aubry, Bureau of Land Management, Moab Field Office. 82 East Dogwood, Moab, Utah 84532
Richard Bush, U.S. Department of Energy, Office of Legacy Management, 2597 B % Road, Grand Junction, CO 81503
Dr. Claron Bjork, Southeastem Utah District Health Department
F:\Rio AlgomXGroundwater Monitoring Ist 20IO\Rio Algom 1st 2010 NOED and CAL.doc