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HomeMy WebLinkAboutDRC-2012-002442 - 0901a0688032bfd1DRC-2012-00244 2 ENERGYFUELS Energy Fuels Resources (USA) Inc. 225 Union Blvd. Suite 600 Lakewood, CO, US, 80228 303 974 2140 www energyfuels com November 29, 2012 VIA OVERNIGHT DELIVERY Mr. Rusty Lundberg Director of the Utah Division of Radiation Control State of Utah Department of Environmental Quality 195 North 1950 West P O Box 144850 Salt Lake City, UT 84116-4850 Re: Transmittal of DMT Performance Standards Monitoring Report and Cell 4A BAT Performance Standards Monitoring Report for the 3rd Quarter of 2012 Dear Mr. Lundberg. Enclosed please find two copies of the DMT Performance Standards Monitonng Report and Cell 4A BAT Performance Standards Monitoring Report for the 3rd Quarter of 2012, as required under Parts LF2 and I.F3 of the White Mesa Mill's States of Utah Groundwater Discharge Permit No UGW370004. Also enclosed are two CDs, each with an electronic word-searchable copy of the enclosed Report. If you have any questions regarding this Report, please contact the undersigned at (303) 389-4132 or Mr. David Turk at (435) 678-2221. Yours VI ENfikGY FUELS RESOURCES (USA) INC. Jo Ann Tischler Director, Compliance cc David C. Frydenlund Harold R. Roberts David E. Turk Kathy Weinel November 29, 2012 VIA OVERNIGHT DELIVERY Mr. Rusty Lundberg Director of the Utah Division of Radiation Control State of Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144850 Salt Lake City, UT 84116-4850 Energy Fuels Resources (USA) Inc. 225 Union Blvd. Suite 600 Lakewood, CO, US, 80228 . 303 974 2140 www .energyfuels.com Re: Transmittal of DMT Performance Standards Monitoring Report and Cell 4A BAT Performance Standards Monitoring Report for the 3rd Quarter of 2012 Dear Mr. Lundberg: Enclosed please find two copies of the DMT Performance Standards Monitoring Report and Cell 4A BAT Performance Standards Monitoring Report for the 3rd Quarter of 2012, as required under Parts I.F.2 and I.F.3 of the White Mesa Mill's State of Utah Groundwater Discharge Permit No. UGW370004. Also enclosed are two CDs, each with an electronic word-searchable copy of the enclosed Report. If you have any questions regarding this Report, please contact the undersigned at (303) 389-4132 or Mr. David Turk at (435) 678-2221. cc David C. Frydenlund Harold R. Roberts David E. Turk Kathy Weinel WHITE MESA URANIUM MILL DMT PERFORMANCE STANDARDS MONITORING REPORT AND CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS MONITORING REPORT 3rd Quarter July through September 2012 State of Utah Groundwater Discharge Permit No. UGW370004 Prepared By: Energy Fuels Resources (USA) Inc. 225 Union Boulevard, Suite 600 Lakewood, CO. 80228 November 29, 2012 TABLE OF CONTENTS 1.0 INTRODUCTION ....••..••...................••....••••••...........•...•............••..•..................•......................•........•.....•...... 1 2.0 MEASUREMENTS TAKEN AND MONITORING PERFORMED DURING THE QUARTER .....••• 1 3.0 WEEKLY TAILINGS WASTEWATER POOL ELEVATION MONITORING ••••...............•.....••...•... 2 4.0 QUARTERLY SLIMES DRAIN WATER LEVEL MONITORING ..........................•..••.•..•..•............... 3 4.1 GENERAL ...................................................................................................................................................... 3 4.2 RESULTS FOR THE QUARTER ......................................................................................................................... 4 4.3 QUALITY ASSURANCE EVALUATION AND DATA VALIDATION ..................................................................... 5 4.4 GRAPHIC COMPARISON TO PREVIOUS YEAR ................................................................................................. 5 5.0 WEEKLY WASTEWATER LEVEL MONITORING: ROBERTS POND ............................................ 5 6.0 WEEKLY FEEDSTOCK STORAGE AREA INSPECTIONS AND INSPECTIONS OF FEEDSTOCK MATERIAL STORED OUTSIDE THE FEEDSTOCK STORAGE AREA .•.••....•.•.•... 5 7.0 TAILINGS CELLS AND POND LINER SYSTEM REPAIRS ...............................................................• 6 8.0 DECONTAMINATION PADS ...............•..•............................•.........•........•............................•.................... 7 8.1 SUMMARYOFWEEKLYINSPECTIONS ........................................................................................................... ? 8.2 ANNUAL INSPECTION OF EXISTING DECONTAMINATION PAD ....................................................................... 8 8.3 ANNUAL INSPECTION OF NEW DECONTAMINATION PAD .............................................................................. 8 9.0 CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS REPORT FOR THE QUARTER.9 9.1 LDS MONITORING ........................................................................................................................................ 9 9.1.1 Operational Status of LDS Pumping and Monitoring Equipment ........................................................... 9 9.1.2 Measurement of Weekly Fluid Head at the Lowest Point in the Secondary FML ................................. 10 9.1.3 Measurement of the Volume of Fluids Pumped from the LDS ............................................................... 10 9.2 MEASUREMENT OF WEEKLY WASTEWATER FLUIDS IN CELLS 4A AND 4B ................................................. 11 9.3 SLIMES DRAIN RECOVERY HEAD MONITORING .. ; ....................................................................................... 11 10.0 CELL 1, CELL 2, AND CELL 3 LDS MONITORING FOR THE QUARTER ......................................... 11 10.1 OPERATIONAL STATUS OFLDS PUMPING AND MONITORING EQUIPMENT ................................................. 11 10.2 MEASUREMENT OF THE VOLUME OF FLUIDS PUMPED FROM THE LDS ....................................................... 12 10.3 MEASUREMENT OF WEEKLY WASTEWATER FLUIDS IN CELLS 1, 2, AND 3 ................................................. 12 10.4 SLIMES DRAIN RECOVERY HEAD MONITORING .......................................................................................... 12 11.0 ANNUAL SLIMES DRAIN RECOVERY HEAD REPORT FOR THE CALENDAR YEAR 2012 •• 12 12.0 SIGNATURE AND CERTIFICATION ................................•••..............................••••••.•.•.......................•• 13 i LIST OF TABLES Table 1 -Summary of Waste Water Pool Elevations Table 2-New Decontamination Pad Inspection Portal Level ATTACHMENTS A Tailings Cell and Roberts Pond Wastewater Elevations B Notices Pursuant to Part I.G.3 of the GWDP C Monthly Cel12 Slimes Drain Monitoring Data D Graph of Cell 2 Slimes Drain Water Levels Over Time E Cell Liner Repair Reports and Notices F Cel14A and Cel14B Leak Detection System Data for the Quarter and BAT O&M Plan Tables lA and lB, Cell4A and 4B Calculations G Annual Inspection Forms for Existing and New Decontamination Pads (Part I.F.l2) ii WHITE MESA URANIUM MILL DMT PERFORMANCE STANDARDS MONITORING REPORT AND CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS MONITORING REPORTS FOR THE 3rd QUARTER OF 2012 1.0 INTRODUCTION This is the routine Discharge Minimization Technology ("DMT") Performance Standards Monitoring Report for the third quarter of 2012 (the "Quarter") prepared by Energy Fuels Resources (USA) Inc. ("EFRI"), as required under Part I.F.2 of the White Mesa Mill's (the "Mill's") State of Utah Groundwater Discharge Permit No. UGW370004 (the "GWDP"), and the Routine Cell 4A and Cell 4B Best Available Technology ("BAT") Performance Standards Monitoring Reports for the Quarter, as required under Part I.F.3 of the GWDP. 2.0 MEASUREMENTS TAKEN AND MONITORING PERFORMED DURING THE QUARTER During the Quarter, the following DMT monitoring was performed or addressed, as required under Part I.D .3, I.E. 7, and I.F .11 of the GWDP: • W eeldy tailings wastewater pool elevations for tailings Cells 1 and 3 (Part I.E.7(a)); • Quarterly slimes drain water levels in Cell2 (Part I.D.3(b)(l) and (2)); • Annual Slimes Drain Compliance (Part I.D.3 (b) and I.F.11); • Weekly wastewater level measurements in Roberts Pond (Part I.D.3(e) and Part I.E.7(c)); • Weekly feedstock storage area inspections and inspections of feedstock materials stored outside of the feedstock storage area (Part I.D.3(t) and Parts I.E.?( d); and (e)); • Any tailings cell and pond liner system repairs (Part I.E.7 (t) and Part I.E.(8)(c)); • Weekly New Decontamination Pad Inspection (Part I.E.7 (g)) and • Annual Decontamination Pad Concrete Inspection (Part I.F.11) (not required this reporting period) Also during the Quarter, the following Cell4A and 4B BAT performance standards monitoring was performed, or addressed, as applicable and as required by Parts I.E.8 and I.E.12 of the GWDP: • Leak detection system ("LDS") monitoring for Cell 4A (Part I.E.8.(a)), and Cell 4B (Part I.E.12 (a)); and • Weekly tailings wastewater pool elevations for tailings Cell 4A (Part I.E.8 (a)) and Cell4B (Part I.E.12 (a)). 1 3.0 WEEKLY TAILINGS WASTEWATER POOL ELEVATION MONITORING Mill personnel monitored and recorded weekly the elevation of wastewater in the Mill's tailings cells during the third quarter 2012, to ensure compliance with the maximum wastewater elevation criteria mandated by Parts I.E.7(a), I.E.8(a) and I.E.l2(a) of the GWDP. The results of such monitoring, reported as feet above mean sea level ("fmsl"), are included in Attachment A. Part I.D.2 of the GWDP provides that under no circumstances shall the freeboard of any tailings cell be less than three feet, as measured from the top of the flexible membrane liner ("FML"). The top of the FML in Cell 1 is at 5,618.5 fmsl, and the top of the FML in Cell 4B is 5600.4 fmsl. This means that the maximum wastewater pool elevations in Cells 1 and 4B permitted under Part I.D.2 of the GWDP are 5,615.5, and 5597.4 fmsl, respectively. The maximum wastewater pool elevations in Cells 1 and 4B, as measured during the Quarter, are summarized in the following Table 1. The requirements to meet freeboard elevation limits in Cell 3 and Cell4A were eliminated as documented on March 14 and 15, 2011 respectively. As indicated in Table 1, the applicable freeboard limits were not exceeded during the Quarter for any cell. All cells also met the maximum wastewater criteria of the Mill's State of Utah Radioactive Materials License No. UT 1900479 (the "License") throughout the period. However, the requirements to maintain a minimum freeboard in Cell 3 and Cell 4A were removed by the Director of the Utah Division of Radiation Control (the "Director") during the first quarter of 2011 as detailed below. Condition 10.3 of the License provides that the freeboard limit for Cell 1 shall be set in accordance with procedures that have been approved by the U.S. Nuclear Regulatory Commission ("NRC"). Under those procedures the freeboard limit for Cell 1 is set as per the January 10, 1990 Drainage Report for Celli at a liquid maximum elevation of 5,615.4 fmsl. Condition 10.3 of the License also provides that the freeboard limit for Cells 3, 4A and 4B shall be recalculated annually in accordance with the procedures approved by the Director. A letter from the Director dated January 27, 2011 which approved the use of Cell 4B and a subsequent letter dated March 14, 2011, stated that authorization of the use of Cell 4B and approval of the DMT and Cell 4A Operations and Maintenance ("O&M") Plans effectively eliminated the former freeboard elevation requirements for tailings Cell 3. The approvals of the DMT and Cell 4A O&M Plans also resolved previous freeboard exceedance issues and further stated that former issues regarding the freeboard exceedances for Cell 3 are closed-out. Pursuant to the receipt of the March 14, 2011letter, freeboard elevation survey measurements in Cell 3 were no longer required or conducted. A letter from the Director dated January 27, 2011 which approved the use of Cell 4B and a subsequent letter dated March 15, 2011, stated approval of the DMT and Cell 4A and Cell 4B O&M Plans effective! y eliminated the former freeboard elevation requirements for tailings Cell 4A. The approvals of the DMT and Cell 4A and 4B O&M Plans also resolved previous freeboard exceedance issues and further stated that former issues regarding the freeboard 2 exceedances for Cell 4A are closed out. Pursuant to the receipt of the March 15, 2011 letter, freeboard limits in Cell 4A were no longer required. The solution elevation measurements in Cell 4A are not required for compliance with freeboard limits but are required for the calculation of the daily allowable volume of fluids pumped from the Cell 4A LDS and are collected for this purpose. Table 1 -Summary of Waste Water Pool Elevations Tailings Maximum Maximum Maximum Cell Wastewater Elevation Wastewater Elevation Wastewater Measured During the Permitted Under Elevation Permitted Quarter (fmsl) License Condition Under Part I.D.2 of 10.3 (fms1) the GWDP (fmsl) Cell1 5610.76 5,615.40 5,615.50 Cell3 Not Measured -No Limit No Limit freeboard limit was (5,602.50*) (5,605.50*) removed in Q 1 2011 Cell4A 5593.54 Freeboard limit No Limit No Limit was removed in Q 1 (5,593.74**) (5,595.50**) 2011. Cell4B 5579.65 5594.60 5597.40 *The Director approved the removal of the Cell 3 freeboard limit and authorized the use of Cell4B on January 27, 2011. Cell 3 is nearly full of solids, and is undergoing pre-closure steps. **The Director granted a variance from the Cell4A freeboard limit on January 13, 2011, and approved the removal of the Cell 4A limit and authorized the use of Cell 4B on January 27, 2011. The previous freeboard limit noted above for Cell4A was not set out in the License. The freeboard limit of 5,593.74 for Cel14A was set out in a letter from the Director dated November 20, 2008. The approved DMT Plan, Revision11.1 dated January 2011, included the removal of the freeboard limit for Cell4A to be replaced by a freeboard limit for Cell4B that will accommodate the freeboard requirements of Cells 1, 4A, and 4B. 4.0 QUARTERLY SLIMES DRAIN WATER LEVEL MONITORING 4.1 General Part I.D.3(b)(1) of the GWDP provides that the Permittee shall at all times maintain the average wastewater recovery head in the slimes drain access pipes of each of Cells 2 and 3 to be as low as is reasonably achievable, in accordance with the DMT Plan. Part I.D.3(b )(3) of the GWDP provides that for Cell 3, this requirement shall apply after initiation of dewatering operations. Part I.D.6(c) of the GWDP provides that, after the Permittee initiates pumping conditions in the slimes drain layer in Cell 4A, the Permittee will provide: 1) continuous declining fluid heads in the slimes drain layer, in a manner equivalent to the requirements found in Part I.D.3(b), and 2) a maximum head of 1.0 feet in the tailings (as measured from the lowest point of the upper FML) in 6.4 years or less. Similarly, Part I.D.13(c) of the GWDP provides that, after the Permittee initiates pumping conditions in the slimes drain layer in Cell 4B, the Permittee will provide: 1) continuous declining fluid heads in the slimes drain layer in a manner equivalent to the requirements found in Part I.D.3(b), and 2) a maximum head of 1.0 feet in the tailings (as measured from the lowest point of the upper FML) in 5.5 years or less. 3 The GWDP, dated July 14, 2011, Part I.D.3 (b)(2) states "effective July 11, 2011, the Permittee shall conduct a quarterly slimes drain recovery test ... ". Monthly testing was conducted through the second quarter of 2011. The frequency change dictated by the GWDP was implemented in the third quarter 2011. The test ensures that each tailings cell meets the following minimum requirements: 1) includes a duration of at least 90-hours, as measured from the time that pumping ceases, and 2) achieves a stable water level at the end of the test, as measured by three consecutive hourly water level depth measurements with no change in water level, as measured to the nearest 0.01 foot. At this time, dewatering operations have not commenced in Cell 3, Cell 4A, or Cell 4B. As a result, the requirements in Part I.E.7(b) to monitor and record monthly the depth to wastewater in the slimes drain access pipes as described in Part I.D.3 of the GWDP apply only to Cell 2 at this time. Accordingly, this Report is limited to slimes drain recovery head information relating to Cell2 only. Pursuant to Parts I.E.7(b) and I.F.2 of the GWDP, Section 8.2 of the DMT Plan and correspondence from DRC, dated February 7, 2008, the results of quarterly recovery monitoring of the slimes drain for Cell 2 are to be recorded and included with the results of quarterly monitoring in the quarterly White Mesa Mill DMT Performance Standards Monitoring Report and Cell 4A and Cell4B BAT Performance Standards Monitoring Reports (the "DMT Reports"). Further, beginning in 2008, quarterly DMT Reports must include both the current year values and a graphic comparison to the previous year. The annual slimes drain recovery head report for 2012, which addresses the requirements of Part I.F.11 of the GWDP and Section 8.2 of the DMT Plan, will be included in the 4th quarter 2012 DMT Report submitted to the Director on or before March 1, 2013. The requirement in Section 3.1(b)(v) of the DMT Plan to monitor the depth to wastewater in the Cell 2 slimes drain access pipe weekly to determine maximum and minimum fluid head is a requirement of the License, is not a DMT performance monitoring standard required by Parts I.D.3 or I.E.7 of the GWDP, and hence is not required to be included in the routine DMT Performance Standards Monitoring Report under Part I.F.2 of the GWDP. EFRI has included, in Attachment C, the information requested by DRC for completeness, as noted in the EFRI letter dated November 14, 2011. However, EFRI revised the DMT Plan by preparing two separate plans for the GWDP and the License requirements and submitted the revised plans on July 25, 2012. EFR received DRC approval of the plans on August 6, 2012. Since the approval of the revised DMT plan was received mid-third quarter, the Cell 2 slimes drain data are included in this third quarter report. EFRI will provide quarterly DMT reports addressing only the GWDP DMT requirements beginning with the fourth quarter 2012 report. 4.2 Results for the Quarter In accordance with these requirements, the quarterly slimes drain recovery head monitoring data for the Quarter, which includes the date and time for the start and end of the recovery test, the initial water level, and the final depth to stable water level, as well as a weekly summary data 4 table for the slimes drain head measurements for the Quarter required under the License, are included as Attachment C to this Report. 4.3 Quality Assurance Evaluation and Data Validation EFRI management has evaluated all slimes drain data collected, data collection methods, and all related calculations required by the GWDP, and have verified the accuracy and reliability of both the data and calculations reported. As a result of its quality assurance evaluation and data validation review, EFRI has concluded that all of the 2009, and 2010 monthly slimes drain tailings fluid elevation measurements, and the 2011 monthly (through June) and quarterly (July forward) slimes drain tailings fluid elevation measurements to date meet the test performance standards found in Part I.D.3(b )(2) of the GWDP and can be used for purposes of determining compliance with the requirements of Part I.D.3(b)(2) of the GWDP. 4.4 Graphic Comparison to Previous Year A graph showing the final depth to stable water level readings for each month in 2009 through third quarter 2012 (quarterly beginning in July 2011), for which validated data is available (see Section 4.3 above), is included as Attachment D, which shows a graphic comparison of this Quarter's data to data for 2009, 2010, 2011 and 2012. 5.0 WEEKLY WASTEWATER LEVEL MONITORING: ROBERTS POND During the Quarter, Mill personnel monitored and recorded weekly the wastewater levels at Roberts Pond to determine compliance with the DMT operations standards in Part I.D.3(e) of the GWDP. Part I.D.3(e) of the GWDP provides that the water level in Roberts Pond shall not exceed an elevation of 5,624 fmsl. The maximum wastewater elevation measured in Robert's Pond during the quarter was 5,617.90 fmsl, which did not exceed the maximum permitted elevation of 5,624 fmsl. The results of such monitoring are included in Attachment A. 6.0 WEEKLY FEEDSTOCK STORAGE AREA INSPECTIONS AND INSPECTIONS OF FEEDSTOCK MATERIAL STORED OUTSIDE THE FEEDSTOCK STORAGE AREA Weekly feedstock storage area inspections were performed by the Mill's Radiation Safety Department, to confirm that the bulk feedstock materials are stored and maintained within the defined area described in the GWDP and that all alternate feedstock located outside the defined feedstock area is maintained within containers that comply with the requirements of Part I.D.11 of the GWDP. The results of these inspections are recorded on the Weekly Mill Inspection forms, which are available at the Mill for inspection. One item was noted during the third quarter inspections. During the weekly inspections conducted on July 13, 2012, August 3, 2012, August 24, 2012, September 9, 2012, and September 28, 2012 standing water was noted in the 5 feedstock storage areas. The water was the result of heavy precipitation. No corrective actions were necessary as the areas where water was noted are sloped towards a drainage sump that allows the water to drain to Cell 1. The remaining water noted during the weeki y inspections listed above, was a small amount which remained after the majority of the rain water had drained. 7.0 TAILINGS CELLS AND POND LINER SYSTEM REPAIRS The liner systems at Cells 1, 2, 3, 4A, and 4B were inspected on a daily basis pursuant to the requirements of Sections 2.1 and 2.2 of the Mill's DMT Plan. The results of those inspections are recorded on the Mill's Daily Inspection Data sheets, which are available at the Mill for review. A visual inspection of Roberts Pond was performed on a weekly basis. The results of those inspections are recorded on the Weekly Mill Inspection forms, which are available at the Mill for review. In accordance with Part I.E.7(t) of the OWDP, in the event that any liner defect or damage is identified during a liner system inspection, the Mill shall immediately implement the currently approved Liner Maintenance Provisions. Further, Part I.F.2 of the OWDP provides that when a liner repair is performed at any tailings cell or at Roberts Pond, a Repair Report shall be prepared and included with the next quarterly DMT report. The second quarter 2012 DMT report included the Cell1 FML repair activities report as required by the September 22, 2010 Confirmatory Action Letter. DRC approved the EFRI Cell 1 FML repair report by letter dated September 25, 2012. The September 25, 2012 DRC letter also noted "The DRC will maintain an open file for the Cell 1 liner repair until the design maximum operating fluid level is held for 30 days and monitoring of the leak detection system yields results supporting a finding of successful repair. Routine leak detection system monitoring, as presented in the quarterly DMT report will suffice as a reporting tool, along with noting the date the fluid level reached design maximum." As noted in the September 22, 2010 Confirmatory Action Letter, the fluid level design was lowered to 5613.1 fmsl to facilitate liner repair. The design maximum operating fluid level is therefore above that level. Mill personnel monitored and recorded weekly the elevation of wastewater in Cell 1 during the third quarter 2012, to ensure compliance with the maximum wastewater elevation criteria mandated by Parts I.E.7(a), I.E.8(a) and I.E.12(a) of the OWDP. The weekly measurements are included in Attachment A. As noted in Attachment A, the fluid level in Cell 1 was at all times lower than 5613.1 fmsl during the third quarter 2012. This open item will continue to be monitored and reported in future DMT reports until the DRC conditions for closure of the Cell 1 FML repair report are met. Mill operations notified EFRI Corporate environmental management on Tuesday, July 31, 2012, of a tear in the FML of Roberts Pond. The notification of the tear in the FML was made during a review of the readiness of environmental equipment for the upcoming Mill startup. EFRI provided initial notification to the DRC by telephone at approximately 2:00pm on Tuesday, July 31, 2012 (within 24 hours of the readiness determination), as contemplated by Parts I.E.7 f) and 1.0.3 of the Permit. Additionally, EFRI provided 5-day written notification to DRC contemplated by Parts I.E.7 f) and 1.0.3 of the Permit on August 6, 2012. The written notification is included in Attachment B. 6 Roberts Pond was empty and taken out of service in June 2012 for routine maintenance and preparation for Mill startup. Roberts Pond underwent cleanout of accumulated sediment during the month of July 2012. The long-arm bucket excavator used for solids removal created a tear in the FML of Roberts Pond at approximately 1:30pm on July 5, 2012. Roberts Pond was empty of solutions or wastewaters at the time of the incident, and remained empty, due to the maintenance outage until it was put back into service during the week of August 6, 2012. Repairs to the liner were performed and completed during the week of July 12, 2012, in accordance with the Mill's Liner Maintenance Provisions. Roberts Pond received process fluids, as necessary, after the completion of repairs. As noted in the EFRI notification letter dated August 6, 2012, repairs to the Roberts Pond FML were performed and completed during the week of July 12, 2012. Consistent with Part I.F.2 of the GWDP EFRI has included the required repair report as Tab E to this DMT report. 8.0 DECONTAMINATION PADS 8.1 Summary of Weekly Inspections Part I.F.7 (g) of the GWDP and Section 3.1 of the DMT Plan require that a weekly inspection of the New Decontamination Pad be performed, and that the vertical inspection portals on the New Decontamination Pad which are located between the primary and secondary containments be visually observed on a weekly basis as a means of detecting any leakage from the primary containment into the void between the primary and secondary containments. The BAT performance standards for the New Decontamination Pad are set out in Part I.D.14 of the GWDP. The New Decontamination Pad was placed into service on March 22, 2010. Use of the New Decontamination Pad was temporarily suspended during the second quarter 2010 as a result of a cease and desist order from DRC dated May 18, 2010. Because the New Decontamination Pad was not in use after the second quarter 2010, the weekly inspections of the containments were stopped for the remainder of 2010. The Executive Secretary provided authorization for use of the New Decontamination Pad in a letter dated February 1, 2011. Use of the New Decontamination Pad resumed in February 2011 and the weekly inspections were resumed as required. Table 2 below indicates the water level measurements in each portal measured during the quarter. 7 Table 2 -New Decontamination Pad Inspection Portal Level for the Third Quarter 2012 Portal1 Portal2 Portal3 Liquid Level Liquid Level Liquid Level Date (in Feet) (in Feet) (in Feet) 7/6/2012 0.00 0.00 0.00 7/12/2012 0.00 0.00 0.00 7/20/2012 0.00 0.00 0.00 7/27/2012 0.00 0.00 0.00 8/3/2012 0.00 0.00 0.00 8/10/2012 0.00 0.00 0.00 8/17/2012 0.00 0.00 0.00 8/24/2012 0.00 0.00 0.00 8/30/2012 0.00 0.00 0.00 9/7/2012 0.00 0.00 0.00 9/14/2012 0.00 0.00 0.00 9/20/2012 0.00 0.00 0.00 9/28/2012 0.00 0.00 0.00 As can be seen from the foregoing table, no fluids were observed to be present in any of the portals during the quarter. Any soil and debris identified during the weekly inspections was removed from the wash pad of the New Decontamination Pad, in accordance with part I.D.14 (a) of the GWDP and Section 3.1 (e)(i)(F) of the DMT Plan. No cracks greater than 1/8" were observed during any weekly inspections. 8.2 Annual Inspection of Existing Decontamination Pad As required by Part I.F.12 of the Permit, annual inspections of the existing decontamination pad must be conducted during the second quarter of each year. The documentation for the 2012 annual inspections was reported in the Second Quarter DMT report submitted August 23, 2012. The 2013 annual inspection will be conducted during the second quarter of 2013. 8.3 Annual Inspection of New Decontamination Pad As previously stated, the New Decontamination Pad was placed into service on March 22, 2010. Use of the New Decontamination Pad was temporarily suspended as a result of a cease and desist order from DRC dated May 18, 2010. DRC's approval for use of the New Decontamination Pad was granted on February 1, 2011, following submittal of revisions to the DMT Plan and DRC observation of hydrostatic testing of the in-ground water holding tanks. Revisions to the DMT Plan were submitted by Denison on November 12, 2010 and reviewed by DRC. Hydrostatic testing was re-performed from November 24 to 26, 2010 following a 10-day advanced notice to DRC on November 12, 2010. The Executive Secretary provided an authorization for use of the 8 New Decontamination Pad in a letter dated February 1, 2011. Use of the New Decontamination Pad resumed in February 2011. Annual inspections of the new decontamination pad are conducted during the second quarter of each year. The documentation for the annual inspections was reported in the Second Quarter DMT report submitted August 23, 2012. The 2013 annual inspection will be conducted during the second quarter of 2013. 9.0 CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS REPORT FOR THE QUARTER This Section constitutes the routine Cell 4A and Cell 4B BAT Performance Standards Monitoring Report for the Quarter, as required under Part I.F.3 of the GWDP. 9.1 LDS Monitoring 9.1.1 Operational Status of LDS Pumping and Monitoring Equipment The LDS pumping and monitoring equipment for each of Cell 4A and Cell 4B, including, but not limited to, the submersible pump, pump controller, head monitoring, and flow meter equipment, operated continuously during the Quarter. Cell4A During the Quarter, there were no failures of any pumping or monitoring equipment not repaired and made fully operational within 24-hours of discovery, as contemplated by Part I.E.8(a)(1) for Cell4A. During the Quarter there was one failure of the Cell 4A monitoring equipment which was made operational within 24-hours of discovery, as required by Part I.E.8(a)(1) for Cell 4A. On July 23, 2012, Mill Personnel noted that the Cell4A LDS monitoring equipment was malfunctioning and the computer feeds were not recording properly. The daily readings required by the approved DMT Plan in effect at that time, Section 2.l.q), Revision 11.5, dated 2/12 were measured and recorded on the Daily Inspection form and no compliance data were lost. Mill personnel reset the electronic components and all functionality was restored. EFRI notified DRC by telephone on July 23, 2012. DRC personnel concurred that no additional notifications were necessary since full function was restored within 24-hours of discovery. Cell4B During the Quarter, there were no failures of any pumping or monitoring equipment not repaired and made fully operational within 24-hours of discovery, as contemplated by Part I.E.12(a)(1) for Cell4B. 9 9.1.2 Measurement of Weekly Fluid Head at the Lowest Point in the Secondary FML The readings pertaining to the fluid head above the lowest point in the secondary FML for Cells 4A and 4B are provided in Attachment F. As can be seen from a review of Attachment F, at no point in the Quarter did the fluid head in the Cell 4A LDS sump exceed a 1-foot level above the lowest point in the lower FML on the Cell floor (where for purposes of compliance monitoring this 1-foot distance equates to 2.28 feet [27.36 inches] above the LDS system transducer), as stipulated by Part I.E.8(a)(2) of the GWDP. During the Quarter, the fluid head in the Cell 4A LDS sump did not exceed 12.1 inches above the LDS transducer. As can be seen from a review of Attachment F, at no point in the Quarter did the fluid head in the Cell 4 B LDS sump exceed a 1-foot level above the lowest point in the lower FML on the Cell floor, as stipulated by Part I.E.12(a)(2) of the GWDP. For the purposes of compliance monitoring this 1-foot distance equates to 2.25 feet (27 inches) above the LDS system. During the quarter the fluid head in Cell4B sump did not exceed 2.41 inches above the LDS transducer. 9.1.3 Measurement of the Volume of Fluids Pumped from the LDS The readings pertaining to the volume of fluids pumped are provided in Attachment F. Cell4A As can be seen from a review of Attachment F, 2,689 gallons of fluid were pumped from the Cell 4A LDS for the third quarter of 2012. Based on this, the average daily LDS flow volume in Cell 4A did not exceed 24,160 gallons/day, as stipulated by Part I.E.8(a)(3) of the GWDP. Daily allowable volume of fluids pumped from the Cell 4A LDS have also been calculated based on weekly tailings cell fluid measurements using the calculations provided in the Cell 4A BAT Operations and Maintenance Plan. A letter from the Director dated January 27, 2011 which approved the use of Cell4B, and a subsequent letter dated March 15, 2011, stated approval of the DMT and Cell 4A Operations and Maintenance ("O&M") Plans and effectively eliminated the former freeboard elevation requirements for tailings Cell 4A. Pursuant to the receipt of the March 15, 2011 letter, freeboard limits in Cell 4A were no longer required. However, the weekly wastewater elevations were completed in order to calculate the maximum daily allowable flow volume, based on in the Cell 4A BAT Operations and Maintenance Plan. Based on the wastewater pool elevation surveys conducted during the quarter, and the maximum head recorded on the FML during the Quarter of approximately 38 feet, the allowable flow rate would be approximately 604.0 gallons/acre/day, as determined under the Mill's Cell 4B BAT Operations and Maintenance Plan, Table 1A (also included in Attachment F of this report), and assuming a liner elevation of 5555.55 feet and approximately 40 acres of liquid area. The average daily flow volume in Cell 4A did not exceed the calculated flow volume of 24,160 gallons/day. As mentioned above, during third quarter of 2012, 2,689 gallons of fluid were pumped from Cell 4A LDS during the period and did not exceed the calculated flow volume. The third quarter allowable flow rate calculation for Cell 4A is included in Attachment F of this report. 10 Cell4B As can be seen from a review of Attachment F, 25 gallons of fluids were pumped from the Cell 4B LDS for the third quarter of 2012 and the flowrate is therefore below the 26,145 gallons/day limit, as stipulated by Part I.E.12(a)(3) of the GWDP. Based on the wastewater pool elevation surveys conducted during the quarter, the maximum head recorded on the FML during the Quarter was approximately 22 feet. The allowable flow rate would therefore be approximately 475.6 gallons/acre/day, as determined under the Mill's Cell 4B BAT Operations and Maintenance Plan, Table 1B (also included in Attachment F of this report), and assuming' a liner elevation of 5557.5 feet and approximately 36.17 acres of liquid area. The average daily flow volume in Cell 4B did not exceed the calculated flow volume of 17,202 gallons/day. During third quarter 2012, 25 gallons of fluids were pumped from Cell 4B LDS and therefore did not exceed the calculated flow volume. The third quarter allowable flow rate calculation for Cell 4 B is included in Attachment F of this report. 9.2 Measurement of Weekly Wastewater Fluids in Cells 4A and 4B Weeldy fluid elevations for Cells 4A and 4B for the quarter are provided in Attachment A along with elevations for Cell 1 and Roberts Pond. 9.3 Slimes Drain Recovery Head Monitoring As the Mill has not initiated pumping conditions in the Cell4A or Cell4B slimes drain system at this time, monthly recovery head tests and fluid level measurements are not required to be made at this time pursuant to Part I.E.8(b) of the GWDP. 10.0 CELL 1, CELL 2, AND CELL 3 LDS MONITORING FOR THE QUARTER The requirement in Section 3.1(a) of the DMT Plan to monitor the LDS for Cells 1 and 3 is a requirement of the License, is not a· DMT performance monitoring standard required by Parts I.D.3 or I.E.7 of the GWDP, and hence is not required to be included in the routine DMT Performance Standards Monitoring Report under Part I.F.2 of the GWDP. EFRI has included, in Attachment F, the information requested by DRC for completeness, as noted in the EFRI letter dated November 14, 2011. However, EFRI revised the DMT Plan by preparing two separate plans for the GWDP and the License requirements and submitted the revised plans on July 25, 2012. EFR received DRC approval of the plans on August 6, 2012. Since the approval of the revised DMT plan was received mid-third quarter, the Cell1, Cell2, and Cell3 data are included in this third quarter report. EFRI will provide quarterly DMT reports addressing only the GWDP DMT requirements beginning with the fourth quarter 2012 report. 10.1 Operational Status of LDS Pumping and Monitoring Equipment The LDS pumping and monitoring equipment for each of Cell 1, Cell 2, and Cell 3, including, but not limited to, the submersible pump, pump controller, head monitoring, and flow meter equipment, operated continuously during the Quarter. 11 For Cell 1, during the Quarter, there were no failures of any pumping or monitoring equipment not repaired and made fully operational within 24-hours of discovery. For Cell 2, during the Quarter, there were no failures of any pumping or monitoring equipment not repaired and made fully operational within 24-hours of discovery. Cell3 For Cell 3, during the Quarter, there were no failures of any pumping or monitoring equipment not repaired and made fully operational within 24-hours of discovery. 10.2 Measurement of the Volume of Fluids Pumped from the LDS No fluids were pumped from the Cells 1, 2 or 3 LDSs during the quarter because no fluids were detected in the Cells 1, 2 or Cell3 LDSs. 10.3 Measurement of Weekly Wastewater Fluids in Cells 1, 2, and 3 A summary of the fluid elevations for the Cells 1, 2 and 3 LDSs for the quarter are provided in Attachment F. The LDS for Cells 1, 2, and 3 were dry during the quarter. 10.4 Slimes Drain Recovery Head Monitoring As the Mill has not initiated pumping conditions in the Cells 1 or Cell 3 slimes drain system at this time, monthly recovery head tests and fluid level measurements are not required at this time. 11.0 ANNUAL SLIMES DRAIN RECOVERY HEAD REPORT FOR THE CALENDAR YEAR 2012 The annual slimes drain recovery head report for Cell 2 for calendar year 2012 (the "Period"), as required under Parts I.D.3 (b) and I.F.11 of the GWDP and Section 8.2 of the DMT Plan will be included with the 4th quarter DMT report which will be submitted on or before March 1, 2013. 12 12.0 SIGNATURE AND CERTIFICATION This document was prepared by Energy Fuels Resources (USA) Inc. on November 29, 2012. By: David . ryde lund Senior Vice President, Regulatory Affairs and General Counsel 13 CERTIFICATION: I certify, under penalty of law, that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate and co plet I am aware that there are significant penalties for submitting false information, includ· g th possibility of fine and imprisonment for knowing violations. Da Senior Vice President, Regulatory Affairs and General Counsel Energy Fuels Resources (USA) Inc. 14 Attachment A Date Celll Cell3 2 Cell 4A 3 Cell 4B 4 Roberts Pond Free Board Limit under the License 1 5615.40 5602.50 5593.74 5594.60 5624.00 7/6/2012 5610.76 No Longer Required 5592.22 5579.65 DRY 7/12/2012 5610.46 No Longer Required 5592.27 5579.47 DRY 7/20/2012 5610.41 No Longer Required 5592.22 5579.28 DRY 7/27/2012 5610.51 No Longer Required 5592.16 5579.20 DRY 8/3/2012 5610.38 No Longer Required 5592.18 5579.15 DRY 8110/2012 5610.30 No Longer Required 5592.12 5579.13 DRY 8117/2012 5610.30 No Longer Required 5592.07 5579.12 DRY 8/24/2012 5610.42 No Longer Required 5592.79 5578.73 5617.10 8/30/2012 5610.46 No Longer Required 5592.97 5578.91 5617.04 9/7/2012 5610.39 No Longer Required 5593.51 5578.94 5617.52 9/14/2012 5610.42 No Longer Required 5593.54 5578.73 5617.68 9/20/2012 5610.39 No Longer Required 5593.42 5578.88 5617.74 9/28/2012 5610.64 No Longer Required 5593.43 5578.99 5617.90 1 The freeboard limit as permitted under License condition 10.3 is no longer applicable to Cell3 or Cell4A. 2Cell 3 is nearly full of solids, and is undergoing pre-closure steps. The freeboard limit specified here is no longer required and the weekly measurements are no longer required per the January 27 and March 14, 2011letters from DRC. 3 The freeboard limit for Cell4A is not set out in the License. The freeboard limit of 5,593.74 for Cell4A is set out in a letter from the Director dated November 20, 2008. Denison proposed in the DMT Plan revision dated November 12, 2010 the removal of the freeboard limit for Cell4A to be replaced by a freeboard limit for new Cell 4B that will accommodate the freeboard requirements of Cells 2, 3, 4A, and 4B. The Director granted a variance from the Cell4A freeboard limit on January 13, 2011 and approved the removal of the Cell4A limit and the use of Cell 4 B on January 27, 2011. The weekly measurements are no longer required for compliance with freeboard limts, but are required to calculate the daily permissable leakage rate for Cell 4A. 4 The freeboard limit listed is the value specified in the DMT plan when the pool surface area is 40 acres. A pool surface area of 40 acres is used because there are no beaches present in Cell 4 B at this time. Attachment B ) August6,2012 VIA PDF AND EXPRESS DELIVERY Mr. Rusty Lundberg Director of the Utah Division of Radiation Control State of Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144850 Salt Lake City, UT 84116-4850 Dear Mr. Lundberg: Re: Utah Ground Water Discharge Permit No. UGW3700004 White Mesa Uranium Mill-Notice Pursuant to Parts I.E.7 f) and I.G.3 of the Permit Please take notice pursuant to Parts I.E.? f) and I.G.3 of the White Mesa Mill's (the "Mill's") State of Utah Groundwater Discharge Permit No. UGW370004 (the "Permit"), that Energy Fuels Resources (USA) Inc. ("EFR"), (formerly named Deniso_n Mines (USA) Corp.), as operator of the Mill and holder of the Permit, identified and repaired damage to the Roberts Pond Liner System as described in more detail below. Roberts Pond has been empty and out of service since June 2012 for routine maintenance and preparation for Mill startup. Roberts Pond underwent cleanout of accumulated sediment during the month of July 2012. The long-arm bucket excavator used for solids removal created a tear in the flexible membrane liner ("FML") of Roberts Pond at approximately 1 :30 pm on July 5, 2012. Roberts Pond was empty of solutions or wastewaters at the time of the incident, and remains empty, due to the maintenance outage. Repairs to the liner were performed and completed during the weeks of July 5 and July 12, 2012, in accordance with the Mill's Liner Maintenance Provisions. The Mill will return Roberts Pond to service during the week of August 6, 2012, and it may receive process fluids, as necessary, at any time afterwards. Mill operations notified EFR Corporate environmental management on Tuesday, July 31, 2012, during a review of the readiness of environmental equipment for the upcoming Mill startup. EFR provided initial notification to the Division of Radiation Control ("DRC") by telephone at approximately 2:00 pm on Tuesday, July 31 , 2012 (within 24 hours of the readiness determination), as contemplated by Parts I.E.? f) and I.G.3 of the Permit. 1. Facts and Background Information a) Part I.E.? f) of the Permit requires that the licensee conduct daily inspections for each of the tailings cells and weekly inspections of Roberts Pond. According to Part I.E.? f): "In the event that any liner defect or damage is identified during a liner system inspection, the Permittee shall: 1) report and repair said defect or damage pursuant to Part I.G.3 by implementation of the currently approved Liner Maintenance Provisions, and 2) report all repairs made pursuant to Part I.F.2." Energy Fuels Resources (USA) Inc. Lakewood, CO 80228 225 Union Boulevard, Suite 600 Phone: 303-974-2140 Notice to Director 8/6/2012 Page 2 b) Although Part 1.G.3 of the Permit is stated to apply to circumstances where the Permittee fails to maintain Discharge Minimization Technology ("DMT") or Best Available Technology ("BAT") standards, Part I.E.? f) requires that the notification provisions of Part I.G.3 also apply to liner defects or damage, regardless of whether or not the liner defect or damage constitutes a failure of DMT or BAT. Under Part I.G.3, the Permittee is required to submit to the Executive Secretary1 a notification and description of the defect or damage orally within 24-hours of the Permittee's discovery, followed by written notification within five calendar days. c) The liner damage occurred, and was immediately identified, at 1 :30 pm on July 5, 2012, apart from a liner maintenance inspection. The damage incident occurred as a result of maintenance activities, when Roberts Pond was in empty condition during a planned maintenance outage. The liner was repaired during the weeks of July 5 and July 12, 2012, in accordance with the Mill's Liner Maintenance Provisions, which describe the types of repairs that will be implemented, as well as requirements for a repair report describing the nature of the damage and the repairs. d) As contemplated by Parts I.E.? f) and I.G.3 of the Permit, EFR provided notification to Mr. Phil Goble of DRC at 2:00 pm on July 31, 2012, within 24 hours of corporate environmental staff receiving information from Mill personnel regarding the incident, as part of a readiness determination prior to Mill start up and use of the pond. e) This Notice constitutes the 5-day written notice contemplated by Parts I.E.? f) and I.G.3 of the Permit. 2. Actions Taken Upon receipt of the initial identification, the Mill's Environmental Coordinator notified the Mill Manager by 2:00 pm that day. The following plan of action was immediately put into place in accordance with the Liner Maintenance Provisions and Section 3.1 of the Mill's Environmental Protection Manual: a) The Roberts Pond liner was repaired during the weeks of July 5 and July 12, 2012. b) Mill personnel prepared daily liner maintenance reports and collected data required for submittal consistent with the Liner Maintenance Provisions and Part I.F.2 of the Permit. c) Corporate Environmental Staff received notification that the Liner Maintenance Provisions had been implemented. 3. Actions That Will be Taken to Prevent a Reoccurrence of this Incident The following actions will be taken to prevent a reoccurrence of this incident: a) The Mill will perform cleanouts of Roberts Pond on a more frequent basis, to minimize the volume of solids accumulated, and reduce the size of equipment needed for solids removal. b) If heavy equipment is required for solids removal from Roberts Pond, the Mill will use equipment smaller than the long-arm bucket excavator used in July 2012, where possible. 1 The Executive Secretary is currently referred to as the Director as a result of revisions to R317 passed during the Utah 2012 legislative session. Notice to Director 8/6/2012 Page 3 c) A repair report containing a root cause analysis and further documentation of the repairs will be submitted to the Director with the quarterly DMT Report following the incident, as discussed in Section 4, below. 4. Required Reporting As required by Part I.F.2 of the permit and by the Mill's Liner Maintenance Provisions, a repair report will be submitted to the Director with the next quarterly DMT Report following completion of the repairs. Repairs were completed during the third quarter of 2012. The repair report will be submitted with the third quarter 2012 DMT Report on or before December 1, 2012. The repair report will contain, in addition to a root cause analysis, the following elements: • Repair narrative describing the nature of the damage and the repair work completed to repair the damage. • Repair material type used to complete the repair • Repair material description • Post repairs test specifications • Test Methods (ASTM or other) • Daily reports during the repair work • Repair test results • Quality Assurance/Quality Control Information 5. Affirmative Defense EFR does not believe that identification of a defect or damage to the Roberts Pond liner caused by maintenance activities and repair of such defect or damage in accordance with the Mill's Liner Maintenance Provisions constitutes a failure of DMT under the Permit. Further, at the time of the incident, Roberts Pond was not in use and was empty. As a result, EFR is not making a claim for an affirmative defense under Part I.G.3 of the Permit. Please contact me if you have any additional questions or require any further information. Yours very truly, ENERGY FUELS RESOURCES (USA) INC. Jo Ann Tischler Director, Compliance and Permitting cc: David C. Frydenlund Dan Hillsten Harold R. Roberts David E. Turk Katherine A. Weinel Attachment C QUARTERLY HEAD MEASUREMENT TEST Location: Date: 9/27/2012 Slimes Cell # 2 Sampler: Tanner Holliday Garrin Palmer 9/21/12 9/22/12 9/23/12 9/24/12 9/25/12 9/26/12 700 23.82 22~97 22.43 800 23.78 22.95 22.41 900 35.56 23.74 22.92 22.39 1000 34.10 23.70 22.90 22.36 1100 33.45 23.67 22.85 22.32 1200 32.80 23.61 22.80 22.27 1300 32.26 23.55 22.76 22.22 1400 31.82 23.50 22.73 22.15 1500 31.40 23.44 22.69 22.09 1600 26.26 24.40 Comments: We started the quarterly slimes recovery on 9/21/2012 at 0900 which was a Friday. The single readings were taken on a Saturday and a Sunday when the environmental staff was out of the office. 9/27/12 21.84 21.84 21.84 ' , . . ' ··•· .. ..,, ·,,, I .•. • . ·.>1··•· ·.· ~-' 'i~' .. •\',f>i.ii\:111 Date .·. [).epthto<Uquid pr¢-pepthto .Hquid • Pr~~Pur11~ Ro~tj .. 2.> ; ·. Fygf,ti?rJl~~;: I. pump (ft.) ·•· post-pum,p (ft.) · . Head (ft.) .···· .. ··I fiee~~lfi· 1 • ••..••.. ............ :eroperly ·· ..• .·· .... ... •• ·..•. .• .•. .··. ..·•.·· ··.·• • •...•... .•. ······•·····.···· > ·.· ··. • .•.... · '· ; .. (yes/nq) 7/6/2012 35.43 36.49 2.54 1.48 Yes 7/12/2012 35.51 36.48 2.46 7/20/2012 35.67 36.74 2.30 7/27/2012 35.51 36.48 2.46 8/3/2012 35.51 36.59 2.46 8/10/2012 35.41 36.62 2.56 8/17/2012 35.61 36.64 2.36 8/24/2012 35.59 36.65 2.38 8/30/2012 35.60 36.61 2.37 9/7/2012 35.60 36.71 2.37 9/14/2012 35.53 36.67 2.44 9/20/2012 35.63 36.47 2.34 9/28/2012 35.67 36.76 2.30 The pre and post-pump head level calculations are done as follows : Pre-pump head= (37 .97(ft)-depth to liquid pre-pump) Post-pump head= (37.97 (ft)-depth to liquid post-pump) 1.49 Yes 1.23 Yes 1.49 Yes 1.38 Yes 1.35 Yes 1.33 Yes 1.32 Yes 1.36 Yes 1.26 Yes 1.30 Yes 1.50 Yes 1.21 Yes White Mesa Mill -Standard Operating Procedures Book 11: Environmental Protection Manual, Section 3.1 2/12 Revision: Denison11.5 Page 33 of 55 Date: 1/Lf'lDYJ.. 1. Pond and Beach elevations (n1sl, ft) · • A \ APPENDIX A (CONT) DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Ce111: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) -~1~...,.~7--''---- Ce114A: (a)Pond Solution Elevation SStt~AA (b )FML Bottom Elevation __ 5555 .14_ ( c )Depth of Water above FML ( ( a)-(b)) 37. 08 Cell4B: (a)Pond Solution Elevation S571.b5 Roberts (b)~ML Bqttom Elevation 5S57:SO .· ( c.)Q.epth of W at~r above FML ( ( £J}(b)). gg.).S , · ( d)Elevation of Beach Area with Highest Elevation (monthly) Pond: (a)Pond Solution Elevation ==-r65. _ (b )FML Bottom Elevation -U v (c)Depth of Water above FML ((a)-(b)) ----~- " ,. ""' ... ···"' .. •• J 2. Slimes Drain Liquid Levels Cell2 Pump functioning properly '-/t!~ < •• _-:)=-S.--S...'i~~~-__;_.-Depth to Liquid pre-pump -~~~'-'<..'i_._..<f ___ Depth to Liquid Post-pump (all measurements are depth-in-pipe) Pre-pump head is 37 .97' -Depth to Liquid Pre- pump= 25!f Post-pump head is 37.97' -Depth to Liquid Post- putnp = J ."{t C:\Documents and Settin~s\dturk.DMOl.ocal Settimrs\Temporary Internet Files\Content.Outlook\Vl\!I3Y6SH\DMT Plan February 2012 Rev 11 5 clean.docN:\DMT P~ Plan 00.19.12 R&1 ll.S\DMT Plan Feb11:1ary 2012 Re>l 11.5 ele~l\'IT Plan\DMT Plaa-92.29.12 R,et,. 11.5\D±v!T Plan ~--2(}.f..2-.P&Y 11.5 redline.doe White Mesa Mill -Standard Operating Procedures Book 11: Environmental Protection Manual, Section 3J 3. Leak Detection Systems 2/12 Revision: Denison11.5 Page 34 of 55 (Same data as Daily Inspection Fmn1. Record data on daily form). -Observation: 1!1, New Decon Pad2 New Decon Pad2 New Decon Pad Portall Portal2 Portal3 ,. Is LDS (Portal) __ wet_£_dry __ wet~dry __ wet~dry wet or dry? If wet, RecGrd -. ... ... Ftto -Ftto r Ft to liquid level: Liquid Liquid Liquid '-. -,, .... If wet, Repmt to RSO 5. Control Methods Implemented: ______________________ _ ~ . 6. Remarks:~~~~~~~~~~~~~~~~~~~~~~~~~~~A~~~~-----~ n ~ • t 00 k..s ,Esooc.t. 7. Designated Disposal Area for Non-Tailings Mill Waste (awaiting DRC approval) L •• ~,.. CroJ * Does Level exceed 12 inches above the lowest point on the bottom flexible 1nembrane liner (solution elevation of 5556.14 an1sl for Cell-~A and 5558.50 for Ce114B)? _$_no __ yes If Cell4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 amsl), notify supervisor or Mill1nanager immediately. C:\Documents and Settings\dturk.DMOLocal Settings\Tempora.J.y Intemet Files\Content.Outlook\VM3Y6S1I\DMT Plan Februarv 2012 Rev 11 5 dean.docN:\DMT PlaffiDMT Plan 02.29.12 Rm.z....f..l...:§.DMT Plan Febrnarv 2012 R:e·.: 11.5 deaa:fl ~cbnmry 2012 Re>: 11.5 redline.des White Mesa Mill-Standard Operating Procedures Book 11: Environmental Protection Manual, Section 3.1 2/12 Revision: Denison11.5 Page 33 of 55 Date: 7/12. /2-0l'J... 1. Pond and Beach elevations (n1sl, ft) APPENDIX A (CONT) DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation (b) FML Botton1 Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) -~' !..=--...~'iL.::::';..__ __ Cell4A: (a)Pond Solution Elevation S.SCJ"-.. 27 (b)FMLBottomElevation __ 5555.14_ (c)Depth of Water above FML ((a)-(b)) S7.1S Cell4B: (a)Pond Solution Elevation S571.1.f7 Roberts (b )FiyiL Bottpl?J;-~l~vation~ 5557.50 (c) Depth o_f Water ~l:>ove FML { ( a);(b)) ~1. q7 ( d)Elevation of Beach Area with Highest Elevation (monthly) Pong: ( a)Pond,Bolutio11 E.~eyation · -(b .. ) .. FML Botto11-i Elev .. a.tion <• •,' r 'A < •, (c)Depth of Water above FML ((a)-(b)) 2. Slimes Drain Liquid Levels Cell 2 Pump functioning properly 'l~'5i _3.....;;~'"""".,5_1-'--------:Depth to Liquidpre-pump .....;3::;.:4oo:..;;.__,'i..,.._I ____ .Depth to Liquid Post-pump (all1neasurements are depth-in-pipe) Pre-pump head is 37 .97' -Depth to Liquid Pre- pump = ;1. ."'' Post-pump head is 37 .97' -Depth to Liquid Post- pump= f .. '-fdl C:\Documents and Setting:s\dturk.DMC\Local Setti11g:s\Temporary InternetFiles\Content.Outlook\VM3Y6Sll\D1v1T P1anFebruacy 2012 Rev 115 clean.clocN:\D'fl.'IT P~~.~~~~2 Rev11.5 dean.docN:\I1i\IT Pftt~'1\DilriTP1aa-~ ~, 2012 Rev 11.5 Fcalil~e.dee White Mesa Mill -Standard Operating Procedures Book 11: Environmental Protection Manual, Section 3.1 2/12 Revision: Denisonll.5 Page 34 of 55 3. Leak Detection Systen1s (San1e data as Daily Inspection Fonn. Record data on daily fonn). Observation: '· ' New Decon Pad2 New Decon Pad~ Portall Portal2 ' Is LDS (Portal) __ wet ./dry __ wet~dry wet or dry? If wet, Record Ftto Ftto liquid level: Liquid Liquid '··· If wet, Report to RSO 4. Tailings Area Inspection (Note dispersal of blowing tailings): t $one. L..\a lva.\Jc. &oo.cls o. J:+Hc """"~. New Decon Pad Portal3 /. __ wet -'dry Ftto Liquid I 5. Control Methods Implemented: f'\e.tt\.J.cnotl£< , M 011 cell 'if\-fbon.j p~1"1f .ror -p~ tcl.At'f\ LiA€. ·"'""'~ (.:rew ou:\ \,t.J:~ f{oo.4. 7. Designated Disposal Area for Non-Tailings Mill Waste (awaiting DRC approval) loolls. 6-.a.l. ! * Does Level exceed 12 inches above the lqvv-~st point on the bottmn flexible meybrane liner (solution elevation of 5556.14 ruusl for Cell4A-.and 5558.50 for Cell4B)? __ no __ yes If Cel14A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 a1nsl), notify supervisor or Mill n1anager in1n1ediately. C:\Documents and SettiMs\dturk.DMC\Local Settings\Temporru.:y IntemetFiles\Content.Outlook\VM3Y6Sli\DMT Plan February 2012 Rev 11 5 clean.docN:\D:tlT Platr\DMT Plaa 02.29.12 Re'>~.t>MT-Plaa Pcbruan ~011 R:::.: l1.5 deaa:flooN:WMf Pla."'l\DMT Plaa 92.29.1~ -1~\Qi>r!T Plaa Februm~w; 11.5 redliae.doo White Mesa Mill -Standard Operating Procedures Book 11: Environmental Protection Manual, Section 3.1 2112 Revision: Denisonll.5 Page 33 of 55 Date: i / ')...0 / ~a\l.. 1. Pond and Beach elevations (msl, ft) APPENDIX A (CONT) DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation .SblO .. 'i J (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) ----=-·-=~:£....'"f-+-'-l __ Cell4A: (a)Pond Solution Elevation S5<f~ .A2. (b)FML Botton1 Elevation __ 5555.14 (c)Depth of Water above FML ((a)-(b)) 37.0g- Ce114B: (a)Pond Solution Elevation sS7f.2.t (b )FML Bottom Elevation 5557 ;so (c)Depth of Water above FML ((a)-(b)) lJ .. 78 ( d)Elevation of Beach Area with Highest Elevation (monthly) Roberts ] Pond: (~)Pond Solution Elev~tion ~ L (b)FML.B,ottom Elevation • · ·. ·. ,.) . 6f?.3~ ' (c)Depth ofWaier aboveFML ((a)-(b)) ·. ' ~· ~ ' ~ I 'I 2. Slimes Drain Liquid Levels Cell2 Pump functioning properly '{<..~ _'!>_!>_ .. _,~,=------_Depth to Liquid pre-pump -~---=-·1_,_j....._ ___ Depth to Liquid Post-pump (all measurements are depth-in-pipe) Pre-pump head is 37.97' -Depth to Liquid Pre- pump = .2 .~(.) Post-pump head is 37.97' -Depth to Liquid Post- pump= 1.~3 C:\Documents and Settimrs\dlurk.DMO.Local Settings\ Temporary Internet Files\Content.Outlook\VM3Y6Sll\DMT Plan February 2012 Rev 11 5 clean.doc:N:\DMT Plaa\DMT Plan 02.29.12 Re:v 11.5\DMT Plan Peeraary 2012 Rev 11.5 elean.docN:\DiVIT Plan\DMT Plan{}2.29.l2 Rev -11.5\DMT Plan Peemmy 2012 Rev 11.5 realffie.dec White Mesa Mill -Standard Operating Procedures Book 11: Environmental Protection Manual, Section 3.1 3. Leak Detection Systems 2/12 Revision: Denison11.5 Page 34 of 55 (Same data as Daily Inspection Form. Record data on daily form). Observation:, •' New Decon Pad, New Decon Pad, Pmtal1 Porta12 Is LDS (Portal) __ wet_$_dry __ wet__:i_dry wet or dry? If wet, Record. -Ftto ' Ft to liquid level: Liquid Liquid ; t If wet, Report to RSO 4. Tailings Area Inspection (Note dispersal of blowing tailings): ~~ q.~ bib~ §!to~ o\JtrA.\1 . New Decon Pad Portal3 __ wet~ dry " Ft to Liquid 6. Remarks:~t!.!!.!4~~~-tAI~~~___J~~':l-.3!~~·~\A,;~~~"~'~·'~~~~o:!:.I'~<~d~1 __!/~. ----~----,_.1\J;~tl \TO~i ~ [).MUle t.\cr t, ln. S•'h .S..It•of:"r Mo~"'~rrt~~onifors., Se+tk""f"t ,_.A:.l.'tf, 11F-.:l. "''Aifa 7. Designated Disposal Area for Non-Tailings Mill Waste (awaiting DRC approval) LGO~ &tel * Does Level exceed 12 inches above the lowest point on the bottom flexible membrane liner (solution elevation of 5556.14 amsl for Cell4A .. and 5558.50 for Cel14B)? _:i__ no __ yes If Cell4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible me1nbrane liner (elevation 5556.14 amsl), notify supervisor or Mill manager immediately. C:\Documents and Settings\dturk.DMC\Local Settings\Temporruy Intemet Files\Content.Outlook\VM3Y6Sll\DMT Plru1 Februruy 2012 Rev 11 5 clean.docN:\DMTP-lan\DMT Plafl 02.29.12 Rev 11.5\DMT Plan-Pebmarv 2012 Re-v 11.5 eleruLtloeN:\DMT Plan\DMT Plan 02.29.12 Rev 11.5\DMT PlaH Pebmary 2012 Rev 11.5 redl:ine.doc White Mesa Mill-Discharge Minimization Technology Monitoring Plan 7/12 Revision: Denisonl2.1 Page 18 of26 l ' Date: 7! 2711 :L 1. Pond and Beach elevations (msl, ft) ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) _-...~.t_.:5--' ... 5_.:,i __ Cell 4A: (a)Pond Solution Elevation 55 Cf :1 I b (b)FML Bottom Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) 37.D 1 Cell4B: (a)Pond Solution Elevation (b)FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) :).. i ... 7D ( d)Elevation of Beach Area with Highest Elevation (monthly) N.A Roberts Pond: (a)Pond Solution Elevation (b )FML Bottom Elevation __ 56f2.3_ (c)Depth of Water above FML ((a)-(b)) _____ _ 2. Leak Detection Systems Observation: New Decon Padl New Decon Pad2 New Decon Pad Portall Portal2 Portal3 Is LDS (Pottal) __ wet__tL_dry __ wet~dry __ wet .~Clry wet or dry? If wet, Record ,_... Ftto -Ft to -Ftto liquid level: Liquid Liquid Liquid If wet, Report to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible membrane liner (solution elevation of 5556.14 amsl for Cell4A and 5558.50 for Cell 4B)? ~no __ yes If Cell4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 amsl), notify supervisor or Milltnanager immediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 !.doc White Mesa Mill-Discharge Minimization Technology Monitoring Plan 7/12 Revision: Denisonl2.1 Page 18 of26 Date: 8)3/2-.0l'L. 1. Pond and Beach elevations (msl, ft) ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Inspectors: ~1'\tt., JJ. 11:~ 1 t.~"l~ P,.,.l~e~" Celll: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 (c) Depth of Water above FML ((a)-(b)) 1'3.~ Cell4A: (a)Pond Solution Elevation S S 1 ~ .. 18 (b)FML Botton1 Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) !)7 .. 6"'# Cell4B: (a)Pond Solution Elevation Roberts (b )FML Bottom Elevation 5557 ~ (c)Depth of Water above FML ((a)-(b)) __ 2._1_ .. __ _ (d)Elevation of Beach Area with Highest Elevation (monthly) Pond: (a)Pond Solution Elevation p (b)FML Bottom Elevation iJ f'ro<t- (c )Depth of Water above FML ((a)-(b )) ----.::d~-~----- 2. Leak Detection Systems Observation: New Decon Pad~ New Decon Pad~ New Decon Pad Portal1 Portal2 Portal3 Is LDS (Portal) __ wet__{_ dry __ wet~ dry __ wet~dry wet or dry? If wet, Record -Ftto -Ftto -Ftto liquid level: Liquid Liquid Liquid If wet, Rep01t to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible me~rane liner (solution elevation of 5556.14 atnsl for Cell4A and 5558.50 for Cell4B)? __ no __ yes If Cell4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 amsl), notify supervisor or Mill manager immediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill-Discharge Minimization Technology Monitoring Plan 7/12 Revision: Denison12.1 Page 18 of26 Date: tlaoiU>I'2. 1. Pond and Beach elevations (msl, ft) ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation .S 'IO · .,o (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) _1_..;;.~-=-·~-=--o __ _ Cell4A: (a)Pond Solution Elevation SS,~ .. }fl.. (b)FML Bottom Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) S, .. V Cell4B: (a)Pond Solution Elevation SS7,. '' Robe1ts (b )FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) al. ~-,. ( d)Elevation of Beach Area with Highest Elevation (monthly) ,.... Pond: (a)Pond Solution Elevation (b )FML Bottom Elevation 2.3_ (c)Depth of Water above FML ((a)-(b)) _____ _ 2. Leak Detection Systems Observation: New Decon Padl New Decon Padl New Decon Pad Pottall Pmtal2 Portal3 Is LDS (Portal) __ wet v'dry __ wet~dry __ wet -'dry wet or dry?· If wet, Record -Ftto -Ft to .,.. Ftto liquid level: Liquid Liquid Liquid If wet, Report to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible mep1brane liner (solution elevation of 5556.14 mnsl for Cell4A and 5558.50 for Cell .. 4B)? _/ __ no __ yes If Cell 4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 an1sl), notify supervisor or Mill manager in1mediately. E:\Mill SOP Master Copy\Book l L_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill -Discharge Minimization Technology Monitoring Plan 7/12 Revision: Denison 12.1 Page 18 of26 Date: i'/11/~CI2- 1. Pond and Beach elevations (msl, ft) ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Inspectors: <IAI'lC r J.l. n;J~, ' (,,..,,.~ ~/1"9er Cell 1: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) 4;(..1( 1~.~ Ce114A: (a)Pond Solution Elevation SS,2.. 0, (b)FML Bottom Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) 3,.CIJ~ Cell4B: (a)Pond Solution Elevation SS71.l2.. Robetis (b)FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) ~. C:.2.. ( d)Elevation of Beach Area with Highest Elevation (monthly) Pond: (a)Pond Solution Elevation (b )FML Bottom Elevation ~.3_ (c)Depth of Water above FML ((a)-(b)) 2. Leak Detection Systems Observation: New Decon Padl New Decon Padl New Decon Pad Potiall Portal2 Pmial3 / / Is LDS (Potial) __ wet~ dry __ wet _Ldry __ wet ./dry wet or dry? If wet, Record Ft to Ftto Ftto liquid level: Liquid Liquid Liquid If wet, Repoti to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible meybrane liner (solution elevation of 5556.14 amsl for Cell4A and 5558.50 for Cell4B)? __ ·_no __ yes If Cell 4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible n1embrane liner (elevation 5556.14 amsl), notify supervisor or Mill manager immediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill -Discharge Minimization Technology Monitoring Plan 7/12 Revision: Denisonl2.1 Page 18 of26 Date: g/7...tjiUJJ2 1. Pond and Beach elevations (msl, ft) ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Inspectors: ~IJftt" J/.~~'//.Jffl£1 ~,-.~ i>e.IAWI" Cell 1: (a) Pond Solution Elevation .6' I(). t.f':i... (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) ---=-'~-· Lrf_;t __ _ Cel14A: (a)Pond Solution Elevation 55Cf2. .. '11 (b )FML Bottom Elevation 5555.14_ (c)Depth of Water above FML ((a)-(b)) _'!.;:;_7..;:..._•__;'-S~--- Cell4B: (a)Pond Solution Elevation Robetts (b )FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) g.J.;a.3 ( d)Elevation of Beach Area with Highest Elevation (monthly) Pond: (a)Pond Solution Elevation 5' 1"7.10 (b)FML Bottom Elevation ___ 5612.3_ (c)Depth of Water above FML ((a)-(b)) _......;.Crf_ .. I _____ _ 2. Leak Detection Systems Observation: New Decou Pad~ New Decou Pad2 New Decou Pad Pmtal1 Portal2 Portal3 Is LDS (Portal) __ wet~dry __ wet ./dry __ wet ..l'dry wet or dry? If wet, Record Ftto -Ftto -Ftto -liquid level: Liquid Liquid Liquid If wet, Report to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible mzbrane liner (solution elevation of 5556.14 amsl for Cell4A and 5558.50 for Cell4B)? no __ yes If Cell4A leak detection systen1level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 amsl), notify supervisor or Mill manager immediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill-Discharge Minimization Technology Monitoring Plan 7112 Revision: Denison 12.1 Page 18 of26 Date: g I l'jo/.z.or~ 1. Pond and Beach elevations (msl, ft) ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 __ (c) Depth of Water above FML ((a)-(b)) _ __,1:....::;;~..;.;_."1.;.:../tt __ _ Cell 4A: (a)Pond Solution Elevation 5512. .. 1"1 (b)FML Bottom Elevation 5555.14_ ( c )Depth of Water above FML ( ( a)-(b)) --''l!::...:"f~ ....... S'""""")'----- Cell4B: (a)Pond Solution Elevation Robe tis (b )FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) --=2.:o.;:..l."-'"'...,_l __ _ ( d)Elevation of Beach Area with Highest Elevation (monthly) Pond: (a)Pond Solution Elevation S'J1 .. O"f (b )FML Bottom Elevation ___ 5612.3_ (c)Depth of Water above FML ((a)-(b)) _ ____;"1:.:.. .. 1;:.....JttL---- 2. Leak Detection Systems Observation: New Decon Pad. New Decon Padl New Decon Pad Pmiall Portal2 Portal3 Is LDS (Portal) __ wet~ dry __ wet~ dry __ wet /dry wet or dry? If wet, Record -Ftto -Ftto -Ft to liquid level: Liquid Liquid Liquid If wet, Report to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible m/brane liner (solution elevation of 5556.14 an1sl for Cell4A and 5558.50 for Cell4B)? __ no __ yes If Cell 4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 amsl), notify supervisor or Mill manager immediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill-Discharge Minimization Technology Monitoring Plan 7112 Revision: Denison 12.l Page 18 of26 Date: q (7 / :?-o t ;?.. 1. Pond and Beach elevations (msl, ft) 2. Leak Detection Systems Observation: ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) ----4-I ........ J..::.....:. ~'""'-s...L.tj __ Cel14A: (a)Pond Solution Elevation .s:sqJ.SI (b)FML Bottom Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) 3~. 37 Cell4B: (a)Pond Solution Elevation __ 5$78. q '1 (b )FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) ~~-~Y ( d)Elevation of Beach Area with Highest Elevation (monthly) AI A Robe tis Pond: (a)Pond Solution Elevation ~S617 .. S2 (b)FML Bottom Elevation ___ 5612.3_ (c)Depth of Water above FML ((a)-(b)) _ ___..5~.1~2.~- Ne_w Decou Pad2 New Decou Padl New Decon Pad Potiall Potial2 Potial3 Is LDS (Potial) __ wet-i.L(lry __ wet __ dry t/ wet~dry wet or dry? If wet, Record -Ft to ___,.,. Ftto ..-.... Ftto liquid level: Liquid Liquid Liquid If wet, Report to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible membrane liner (solution elevation of 5556.14 amsl for Cell4A and 5558.50 for Cell4B)? ~no __ yes If Cell 4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 amsl), notify supervisor or Mill manager immediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill-Discharge Minimization Technology Monitoring Plan 7 I 12 Revision: Denison 12.1 Page 18 of26 Date: 9 /t Y / Q. D f :2 1. Pond and Beach elevations (1nsl, ft) 2. Leak Detection Systems Observation: ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) _--!.,.;l->::;;._....,.,;__· 4..t...::2=. __ Cell 4A: (a)Pond Solution Elevation 5/::_; q 3 , c..S Y (b)FML Bottom Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) ~1 8'. Y Cell4B: (a)Pond Solution Elevation Robe1ts (b)FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) ;?..t. ;?3 ( d)Elevation of Beach Area with Highest Elevation (monthly) Pond: (a)Pond Solution Elevation (b )FML Bottom Elevation __ 5612.3_ ..,:S. 3f (c)Depth of Water above FML ((a)-(b)) New Decon Pad~ New Decon Pad2 New Decon Pad Portall Pmtal2 Portal3 Is LDS (Pmtal) __ wet_Ldry __ wet_Ldry __ wet_Ldry wet or dry? If wet, Record ---Ftto -Ft to _....,..--· Ftto liquid level: Liquid Liquid Liguid If wet, Report to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible tnembrane liner (solution elevation of 5556.14 amsl for Cell4A and 5558.50 for Cell4B)? no __ yes If Cell 4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 amsl), notify supervisor or Mill manager in1mediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewai\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill-Discharge Minimization Technology Monitoring Plan 7112 Revision: Denison12.1 Page 18 of26 Date: 9/.?-V/1 ~ 1. Pond and Beach elevations (msl, ft) ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) _ ___,_1;;:;:;....3.;....:;~ ::S;;;;;_-· 1..1--- Cell4A: (a)Pond Solution Elevation _-s._')q~··L t--i;2 (b)FML Botton1 Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) _.....;;.3~'6__,. ?.;...._;___~-- Cell4B: (a)Pond Solution Elevation (b)FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) .21-.)f (d) Elevation of Beach Area with Highest Elevation (monthly) tVA Roberts Pond: (a)Pond Solution Elevation /) 6 i /.I L-f (b)FML Bottom Elevation __ 5612.3_ ( c )Depth of Water above FML ( ( a)-(b)) ----"-'· c_"""") .'--•_,_-i __,':f..___ 2. Leak Detection Systems Observation: New Decon Pad2 New Decon Pad! New Decou Pad Portal! Pmtal2 Portal3 Is LDS (Pmtal) __ wet_Ldry __ wet .,/"'dry __ wet_L.dry wet or dry? If wet, Record -Ft to -· Ftto -Ft to liquid level: Liquid Liquid Liquid If wet, Repmt to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible membrane liner (solution elevation of 5556.14 amsl for Cel14A and 5558.50 for Cell4B)? ----t.L no __ yes If Cel14A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 mnsl), notify supervisor or Mill manager immediately. E:\Mill SOP MasterCopy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc White Mesa Mill -Discharge Minimization Technology Monitoring Plan 7/12 Revision: Denisonl2.1 Page 18 of26 Date: Of f gt / :2o I 2. 1. Pond and Beach elevations (msl, ft) 2. Leak Detection Systems Observation: ATTACHMENT A-2 DENISON MINES (USA) CORP. WEEKLY TAILINGS INSPECTION Cell 1: (a) Pond Solution Elevation .S61D. 61.-f (b) FML Bottom Elevation ___ 5597 __ _ (c) Depth of Water above FML ((a)-(b)) ----'-''·=-3.J... • ...,_6--t.t..{ __ Cell4A: (a)Pond Solution Elevation ~:;_r;q3 1..-13 (b )FML Bottom Elevation ___ 5555.14_ (c)Depth of Water above FML ((a)-(b)) ~8-;2q Cell4B: (a)Pond Solution Elevation (b )FML Bottom Elevation 5557.50 (c)Depth of Water above FML ((a)-(b)) 2l ~ yq ( d)Elevation of Beach Area with Highest Elevation (monthly) AlA Roberts Pond: (a)Pond Solution Elevation .5617. 'I (b)FML Bottom Elevation ___ 5612.3_ (c)Depth of Water above FML ((a)-(b)) --~-5~41:.~-- New Decon Pad~ New Decon Pad~ New Decon Pad Portall Portal2 Portal3 Is LDS (Portal) __ wet--1LQry __ wet_L_dry __ wet_L__dry wet or dry? If wet, Record --Ftto -Ftto -Ftto liquid level: Liquid Liquid Liquid If wet, Rep011 to RSO * Does Level exceed 12 inches above the lowest point on the bottom flexible men1brane liner (solution elevation of 5556.14 amsl for Cell4A and 5558.50 for Cell4B)? ~no __ yes If Cell 4A leak detection system level exceeds 12 inches above the lowest point on the bottom flexible membrane liner (elevation 5556.14 an1sl), notify supervisor or Mill manager immediately. E:\Mill SOP Master Copy\Book ll_Environmental Procedures\07 License Renewal\DMT Plan July 2012 Rev 12 l.doc Attachment D Feet Below Top of Standpipe N N N ~ ~ ~ ~ N 0 00 en ~ 0 0 0 0 0 0 0 0 0 0 0 0 1/30/2009 3/30/2009 5/30/2009 7/30/2009 n 9/30/2009 tD --11/30/2009 N + ~ -· 1/31/2010 (./) 3 ro :::::!. ro tD VI "' N c 3/31/2010 5/31/2010 .., QJ -· 7/31/2010 ::::s I 9/30/2010 N 0 0 c: ::J U) ro ~ OJ ., N Vl 0 ro 11/30/2010 1/31/2011 ., ~ ii)" 3/31/2011 VI 0 ~ ~ N 5/31/2011 0 ~ ~ S20 7/31/2011 -, I 9/30/2011 N 0 ~ 11/30/2011 N 1/31/2012 3/31/2012 5/31/2012 7/31/2012 Attachment E WHITE MESA MILL REPAIR REPORT ROBERTS POND DECEMBER 2012 Prepared by: Energy Fuels Resources (USA) Inc. 225 Union Boulevard, Suite 600 Lakewood, CO 80228 White Mesa Mill-2012 Repair Report, Roberts Pond Page 2 of 12 WHITE MESA MILL REPAIR REPORT ROBERTS POND TABLE OF CONTENTS 1. IN"TRODUCTION .................................................................................................................. 3 2. IN"CIDENT HISTORY AND CHRONOLOGY .................................................................... 4 3. ROOT CAUSE ANALYSIS .................................................................................................. 4 4. REPAIR NARRATIVE ......................................................................................................... 5 5. REPAIR MATERIAL TYPE AND DESCRIPTION ............................................................ 6 6. POST-REPAIR TEST SPECIFICATIONS AND TEST METHODS ................................... 6 7. DAILY REPORTS DURIN"G THE REPAIR WORK ........................................................... 6 8. REPAIR TEST RESULTS/QUALITY ASSURANCE/QUALITY CONTROL ................... 7 9. CONCLUSIONS .................................................................................................................... 7 10. CERTIFICATION .................................................................................................................. 8 Appendix 1 Appendix 2 Appendix 3 Appendix 4 APPENDICES Letters and Correspondence Regarding Robert Pond Liner Liner Repair Daily Reports Repair Photographs Liner Maintenance Provisions N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 0112 (2)-SSJATSS final.doc White Mesa Mill-2012 Repair Report, Roberts Pond Page 3 of 12 1. INTRODUCTION Energy Fuels Resources (USA) Inc. ("EFRI''), formerly named Denison Mines (USA) Corp., operates White Mesa Mill's (the "Mill's") Roberts Pond as a collection and return basin for spills or process solution overflows. Performance standards, monitoring and maintenance requirements for Roberts Pond are specified in the Discharge Minimization Technology requirements in the Mill's Groundwater Discharge Permit (the "Permit"). Per Parts I.E.7 f) and I.F.2 of the Mill's Permit, ifEFRI identifies any damage to the liners of any tailings cell or Roberts Pond, EFRI is required to repair the damage in accordance with the Mill's Liner Maintenance Provisions, and provide a liner Repair Report to the Director of the Division of Radiation Control. EFRI performed repairs to the Roberts Pond Flexible Membrane Liner ("FML") on July 12, 2012, as discussed below. As a result of those repairs, this Roberts Pond Liner Repair Report (the "Report") is being submitted to comply with the Mill's Liner Maintenance Provisions, Revision 1, dated October 18,2009 and with Part I.F.2 of the Mill's Groundwater Discharge Permit ("GWDP"). The Liner Maintenance Provisions require that the Repair Report be signed by a Utah licensed professional engineer and contain the following information: • Repair narrative describing the nature of the damage and the repair work completed to repair the damage. • Repair material type used to complete the repair • Repair material description • Post repairs test specifications • Test Methods (ASTM D5641) • Daily reports during the repair work • Repair test results • Quality Assurance/Quality Control Information Accordingly, the sections of this Repair Report, below, are organized consistent with the items above. Part I.F.2 of the RML requires that following the repairs, the "Repair Report shall be included with the next quarterly DMT Report". Repairs resulting from the event above were completed during the third quarter of 2012. This Repair Report has been included with the third quarter 2012 DMT Report, being submitted on December 1, 2012. N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 0112 (2)-SSJATSS final.doc White Mesa Mill-2012 Repair Report, Roberts Pond Page 4 of 12 Due to Senate Bill21 of the 2012 Utah Legislative Session, references to the Executive Secretary of the Utah Radiation Control Board in the Utah Radiation Control Act have been modified to refer to the Director of Radiation Control. This Report and the correspondence in its appendices utilize both titles interchangeably. 2. INCIDENT HISTORY AND CHRONOLOGY Roberts Pond was empty and out of service from June to August 2012 for routine maintenance and preparation for Mill startup. Roberts Pond underwent cleanout of accumulated sediment during the month of July 2012. The long-arm bucket excavator used for solids removal created a tear in the flexible membrane liner ("FML") of Roberts Pond at approximately 1:30pm on July 5, 2012. The liner damage occurred, and was immediately identified, at 1:30pm on July 5, 2012, apart from a liner maintenance inspection. The damage incident occurred as a result of maintenance activities, when Roberts Pond was in empty condition during above-mentioned planned maintenance outage. Roberts Pond was empty of solutions or wastewaters at the time of the incident, and remained empty, for the duration of the maintenance outage. Repairs to the liner were performed and completed on July 12,2012, in accordance with the Mill's Liner Maintenance Provisions. The Mill returned Roberts Pond to service during the week of August 6, 2012. It has resumed receiving washdown and/or process fluids from time to time since late August 2012. Upon receipt of the initial identification, the Mill's Environmental Coordinator notified the Mill Manager by 2:00pm that day. Mill operations notified EFRI Corporate environmental management on Tuesday, July 31, 2012, during a review of the readiness of environmental equipment for the upcoming Mill startup. EFRI provided initial notification to Mr. Philip Goble of the Division of Radiation Control ("DRC") by telephone at approximately 2:00pm on Tuesday, July 31, 2012 (within 24 hours of the readiness determination), as contemplated by Parts I.E.7 f) and I.G.3 of the Permit. Consistent with Parts I.E.7 f) and I.G.3 of the Permit, EFRI submitted a written notice to the Director (the "Notice") on August 6, 2012. 3. ROOT CAUSE ANALYSIS Roberts Pond had not gone undergone any cleanouts from its initial startup in 2002 until the July 2012 maintenance outage. The volume of solids accumulated in that time period exceeded what could easily be removed by small equipment or manual methods and required use of the Mill's extended boom or "~ong-arm" bucket excavator. The long-arm excavator is equipped with a straight- edged bucket with no teeth. N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 01 12 (2)-SSJATSS final.doc White Mesa Mill-2012 Repair Report, Roberts Pond Page 5 of 12 Due to the length of the bucket arm, the spotter assigned to watch the excavation from the ground level was not in a position to fully see the bucket and its contact with the pond sediment. Below the sediment being excavated was an apparent wrinkle or buckle in the liner. As the excavator bucket was pulled across this irregularity, it snagged and damaged the liner. The August 6, 2012 Notice committed that EFRI would take the following actions to prevent future damage to the Roberts Pond liner: a) The Mill will perform cleanouts of Roberts Pond on a more frequent basis, to minimize the volume of solids accumulated, and reduce the size of equipment needed for solids removal. b) If heavy equipment is required for solids removal from Roberts Pond, the Mill will use equipment smaller than the long-arm bucket excavator used in July 2012, where possible. c) A repair report containing a root cause analysis and further documentation of the repairs will be submitted to the Director with the quarterly DMT Report following the incident, as discussed in Section 4, below. 4. REPAIR NARRATIVE As discussed above, Roberts Pond contains a single 60 mil HDPE FML constructed of heat welded seams. Repairs to the Cell 1 FML occurred on July 12, 2012, as indicated on the daily repair report in Appendix 2. Repairs required the following steps: • Removal of the remaining sediments/solids from the pond to expose the liner for inspection and repair, • Visual inspection of each section of the FML, • Installation of repair patches over each damaged location, • Vacuum testing of each installed repair patch, and • Replacement and/or regluing and retesting of repaired areas if necessary. The liner was patched with sections cut from 60 mil HDPE roll stock remaining from the lining of Cell4B. Prior to placement of the new lining material repair patch, the soil surface was compacted and swept clean of any protruding rocks that might damage the lining material. Prior to seaming, the lining material was cleaned with methyl ethyl ketone (MEK). The patch material was seamed to the existing liner material via extrusion welding. The repaired seams were then 100% vacuum box tested according to the procedures in the attached report. Testing results are included in the attached daily reports of the repair activities. EFRI completed the inspection and all repairs to the liner inside slope areas on July 12, 2012. N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 0112 (2)-SSJATSS final.doc White Mesa Mill-2012 Repair Report, Roberts Pond Page 6 of 12 5. REPAIR MATERIAL TYPE AND DESCRIPTION Vacuum testing used the following equipment: • soapy water solution • vacuum check sheets • vacuum testing equipment (vacuum box) consistent with ASTM Standard D5461. Liner repairs used the following equipment: • Personnel protective equipment appropriate for protection from cell solutions and safety along banked sidewalls of the cell • Various sized sections of 60 mil HDPE geomembrane. • HDPE Extrusion Welder Feed Rod • Extrusion Welder • methyl ethyl ketone ('2-butanone" or "MEK") as a surface and glue cleaner • wire brushes • TSP/Manu-Tech Service Projects vacuum testing device (referred to as the "vacuum box") • Liner Daily Repair Forms 6. POST-REPAIR TEST SPECIFICATIONS AND TEST METHODS As mentioned above, each repaired location was tested using a "vacuum box" and soapy water to identify any remaining leaks by observation of air bubbles through the repair seam. Tests were conducted in accordance with ASTM Standard D5461 utilizing the Manu-tech Service Projects vacuum box referred to above. Per this standard, tests were conducted such that test areas overlapped by at least 10% of the minimum vacuum chamber length or at least 2 inches, whichever is greater, until the entire seam was tested. Per D5461, 4 to 8 psi vacuum was applied and the seam was observed for air bubbles. If any air bubbles were observed during vacuum testing of the seam, the test was considered to indicate a seam failure, and the repair and vacuum test repeated. Specifically, the regulated pressure to the vacuum box was maintained at 15 psig during the test process and vacuum pressure within the box was recorded in inches of mercury. Test results are provided with the Liner Repair Daily Reports in Appendix 2. 7. DAILY REPORTS DURING THE REPAIR WORK Liner Repair Daily Reports have been provided in Appendix 2. Photo documentation is provided in Appendix 3. N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 0112 (2)-SSJATSS final.doc White Mesa Mill-2012 Repair Report, Roberts Pond Page 7 of 12 8. REPAIR TEST RESULTS/QUALITY ASSURANCE/QUALITY CONTROL Results from vacuum testing of patch seams was recorded on the Liner Repair Daily Reports. As discussed above, the quality control standard applied to testing assumed that any single appearance of a bubble in any part of a tested patch would be considered to be a failure of the patch, requiring replacement and reattachment of the entire patch. Following the testing, each day's test results were listed by date and test number on the last Liner Repair Daily Report of the period in which the repairs and tests for that segment were completed. Vacuum tests results are provided in Appendix 2. 9. CONCLUSIONS On July 12, 2012, Roberts Pond liner repair activities were completed by EFRI maintenance personnel. Utah Registered Professional Engineer SteveR. Snyder, the Mill's Facility Engineer reviewed the Liner Repair Report and discussed the repairs made to Roberts Pond with maintenance personnel directly involved. EFRI believes that the Robert Pond liner repair has been performed consistent with the Liner Maintenance Provisions. N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 0112 (2)-SSJATSS final.doc White Mesa Mill-2012 Repair Report, Roberts Pond Page 8 of 12 10. CERTIFICATION I, SteveR. Snyder, a Utah Registered Professional Engineer, was present at the Mill during the repairs of the Roberts Pond liner. I reviewed the foundation preparation activities, liner patch placement, cleaning and seaming of the liner, and vacuum box testing of the repaired seams with EFRI maintenance personnel. I subsequently inspected a representative area of repaired liner to confirm the repairs were consistent with the results described by the maintenance personnel. U:\Cell Robetts Pond\Robetts Pond Linet· Repair Rpt to Drctr 12 01 12 (2)-SSJATSS final.doc White Mesa Mill-2012 Repair Report, Roberts Pond Page 9 of 12 APPENDIX 1 LETTERS AND CORRESPONDENCE REGARDING CELL 1 LINER REPAIRS N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 0112 (2) ~ SSJATSS final.doc Energg F ue/s Resources IUSRJ Inc. August6,2012 VIA PDF AND EXPRESS DELIVERY Mr. Rusty Lundberg Director of the Utah Division of Radiation Control State of Utah Department of Environmental Quality 168 North 1950 West P.O. Box 144850 Salt Lake City, UT 84114-4850 Dear Mr. Lundberg·: Re: Utah Ground Water Discharge Permit No. UGW3700004 White Mesa Uranium Mill-Notice Pursuant to Parts I.E.7 f) and I.G.3 of the Permit Please take notice pursuant to Parts I.E.7 f) and I.G.3 of the White Mesa Mill's (the "Mill's") State of Utah Groundwater Discharge Permit No. UGW370004 (the "Permit"), that Energy Fuels Resources (USA) Inc. ("EFR"), (formerly named Denison Mines (USA) Corp.), as operator of the Mill and holder of the Permit, identified and repaired damage to the Roberts Pond Liner System as described in more detail below. Roberts Pond has been empty and out of service since June 2012 for routine maintenance and preparation for Mill startup. Roberts Pond underwent cleanout of accumulated sediment during the month of July 2012. The long-arm bucket excavator used for solids removal created a tear in the flexible membrane liner ("FML") of Roberts Pond at approximately 1:30 pm on July 5, 2012. Roberts Pond was empty of solutions or wastewaters at the time of the incident, and remains empty, due to the maintenance outage. Repairs to the liner were performed and completed during the weeks of July 5 and July 12, 2012, in accordance with the Mill's Liner Maintenance Provisions. The Mill will return Roberts Pond to service during the week of August 6, 2012, and it may receive process fluids, as necessary, at any time afterwards. Mill operations notified EFR Corporate environmental management on Tuesday, July 31, 2012, during a review of the readiness of environmental equipment for the upcoming Mill startup. EFR provided initial notification to the Division of Radiation Control ("DRC") by telephone at approximately 2:00 pm on Tuesday, July 31, 2012 {within 24 hours of the readiness determination), as contemplated by Parts I.E.7 f) and I.G.3 of the Permit. 1. Facts and Background Information a) Part I.E. 7 f) of the Permit requires that the licensee conduct daily inspections for each of the tailings cells and weekly inspections of Roberts Pond. According to Part I.E.? f): "In the event that any liner defect or damage is identified during a liner system inspection, the Permittee shall: 1) report and repair said defect or damage pursuant to Part I.G.3 by implementation of the currently approved Liner Maintenance Provisions, and 2) report all repairs made pursuant to Part I.F.2." .. Notice to Director 8/6/2012 Page2 b) Although Part 1.G.3 of the Permit is stated to apply to circumstances where the Permittee fails to maintain Discharge Minimization Technology {"DMT") or Best Available Technology {"BAT") standards, Part I.E.7 f) requires that the notification provisions of Part I.G.3 also apply to liner defects or damage, regardless of whether or not the liner defect or damage constitutes a failure of DMT or BAT. Under Part I.G.3, the Permittee is required to submit to the Executive Secretary1 a notification and description of the defect or damage orally within 24-hours of the Permittee's discovery, followed by written notification within five calendar days. c) The liner damage occurred, and was immediately identified, at 1:30pm on July 5, 2012, apart from a liner maintenance inspection. The damage incident occurred as a result of maintenance activities, when Roberts Pond was in empty condition during a planned maintenance outage. The liner was repaired during the weeks of July 5 and July 12, 2012, in accordance with the Mill's Liner Maintenance Provisions, which describe the types of repairs that will be implemented, as well as requirements for a repair report describing the nature of the damage and the repairs. d) As contemplated by Parts I.E.7 f) and I.G.3 of the Permit, EFR provided notification to Mr. Phil Goble of DRC at 2:00 pm on July 31, 2012, within 24 hours of corporate environmental staff receiving information from Mill personnel regarding the incident, as part of a readiness determination prior to Mill start up and use of the pond. e) This Notice constitutes the 5-day written notice contemplated by Parts I.E.7 f) and I.G.3 of the Permit. 2. Actions Taken Upon receipt of the initial identification, the Mill's Environmental Coordinator notified the Mill Manager by 2:00 pm that day. The following plan of action was immediately put into place in accordance with the Liner Maintenance Provisions and Section 3.1 of the Mill's Environmental Protection Manual: a) The Roberts Pond liner was repaired during the weeks of July 5 and July 12, 2012. b) Mill personnel prepared daily liner maintenance reports and collected data required for submittal consistent with the Liner Maintenance Provisions and Part I.F.2 of the Permit. c) Corporate Environmental Staff received notification that the Liner Maintenance Provisions had been implemented. 3. Actions That Will be Taken to Prevent a Reoccurrence of this Incident The following actions will be taken to prevent a reoccurrence of this incident: a) b) The Mill will perform cleanouts of Roberts Pond on a more frequent basis, to minimize the volume of solids accumulated, and reduce the size of equipment needed for solids removal. If heavy equipment is required for solids removal from Roberts Pond, the Mill will use equipment smaller than the long-arm bucket excavator used in July 2012, where possible. 1 The Executive Secretary is currently referred to as the Director as a result of revisions to R317 passed during the Utah 2012 legislative session. Notice to Director 8/6/2012 Page3 c) A repair report containing a root cause analysis and further documentation of the repairs will be submitted to the Director with the quarterly DMT Report following the incident, as discussed in Section 4, below. 4. Required Reporting As required by Part I.F.2 of the permit and by the Mill's Liner Maintenance Provisions, a repair report will be submitted to the Director with the next quarterly DMT Report following completion of the repairs. Repairs were completed during the third quarter of 2012. The repair report will be submitted with the third quarter 2012 DMT Report on or before December 1, 2012. The repair report will contain, in addition to a root cause analysis, the following elements: • Repair narrative describing the nature of the damage and the repair work completed to repair the damage. • Repair material type used to complete the repair • Repair material description • Post repairs test specifications • Test Methods (ASTM or other) • Daily reports during the repair work • Repair test results • Quality Assurance/Quality Control Information 5. Affirmative Defense EFR does not believe that identification of a defect or damage to the Roberts Pond liner caused by maintenance activities and repair of such defect or damage in accordance with the Mill's Liner Maintenance Provisions constitutes a failure of DMT under the Permit. Further, at the time of the incident, Roberts Pond was not in use and was empty. As a result, EFR is not making a claim for an affirmative defense under Part I.G.3 of the Permit. Please contact me if you have any additional questions or require any further information. Yours very truly, ENERGY FUELS RESOURCES (USA) INC. Q,£2/~~~~ vf;~~~ischler Director, Compliance and Permitting cc: David C. Frydenlund Dan Hillsten Harold R. Roberts David E. Turk Katherine A. Weinel 'i I White Mesa Mill-2012 Repair Report, Roberts Pond Page 10 of 12 APPENDIX2 LINER REPAIR DAILY REPORTS N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 01 12 (2)-SSJATSS final.doc Cell # Roberts Pond Date: 12 July. 2012 Start Time: 7:OOam End Time: 5:30pm Liner Repair Report Linear feet exposed for inspection: __ ...:;0::.....' ___ _ Description of damage or clear of any defects: Slope on West side two areas where repair was needed! Description of the repair work utilized to repair the damage: Used the Extrusion Machine to fuse patch and Vacuum. Material used to complete the repairs: MEK (cleaner) Wire Brush Paint Brushes Repair Material-(describe in detail): Extrusion Machine. HDPE made weld passes to replace damaged areas. Weather Conditions: 67 Degrees. Personnel performing the repair work: *HDPE Extrusion Welders-Kendall and Truitt. *Vacuum Testers-Kendall and Truitt. Vacuum Checks if conducted: Conducted Vacuum Checks. See Below Notes: N/A. 4 Vacuum Tests-12th of July 2012. 1) 15hg. 2) 15 hg. 3) 16 hg. 4) 15 hg. NOTE: All testing of the repaired material will be in compliance with ASTM D5641 White Mesa Mill-2012 Repair Report, Roberts Pond Page 11 of 12 APPENDIX3 REPAIR PHOTOGRAPHS N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 01 12 (2)-SSJATSS final.doc Roberts Pond Liner Repair Post Repair View Facing West White Mesa Mill-2012 Repair Report, Roberts Pond Page 12 of 12 APPENDIX4 LINER MAINTENANCE PROVISIONS N:\WMM\Roberts Pond\Roberts Pond Liner Repair Rpt to Drctr 12 01 12 (2)-SSJATSS final.doc Liner Maintenance Provisions-Cells 1, 2, 3 and Roberts Pond Rev. 1 (10-18-09) Inspections Tailings cells 1, 2, and 3 are the subject of cotnprehensive daily inspections which are conducted by either the Environmental Technician or the Radiation Technician, as well as once per shift Daily Operations Inspections which are conducted by the Mill Shift Foreman or other trained persotlllel designated by the Shift Foreman. The details of these daily inspections are outlined in Sections 2.1 and 2.2 of the White Mesa Mill Tailings Management System and Discharge Minimization Technology (DMT) Monitoring Plan. h1 each case, these inspections are recorded on inspection forms (Daily Inspection Data ,Fonn and Operating Foreman's Daily Inspection Form, respectively). In addition, non- recorded Daily Operations Patrols are conducted twice per shift by operations persollllel. With regard to Roberts Pond, this facility is observed on a weekly basis when the Environmental or Radiation Technician visits the facility for the recording of water levels at that location. Training All individuals pe1forming inspections described in Sections 2.1 and 2.2 of the DMT Monitoring Plan must have Tailings Management System Training as described in Appendix C to the DMT Monitoring Plan (Tailings Inspection Training). As and element of the "Operational Systems" inspection, inspectors are trained and required to observe the conditions of the PVC liner. Because the PVC liners in Tailings Cells 1, 2 and 3 are sensitive to sunlight and can degrade as a result of prolonged exposure, inspectors are cautioned to observe any situation where the liner is exposed. These exposure situations are considered serious and require immediate attention. Inspectors are trained to cover small areas of exposure immediately, whereas, larger areas are reported to the radiation Safety Officer to prompt the issuance of a work order to the Maintenance Department. In keeping with this inspection requirement, inspectors are trained to observe any degradation of exposed liners. Such degradation can be that caused by exposure to sunlight, abrasion due to erosive wave action and/or any rips or tears in the liner materiaL Given the fact that the liner material is provided with an earthen cover, erosive damage and/or rips and tears are unlikely. Inspectors are trained to record all observations of liner exposure or disrepair on the inspection report, as well as the date and nature of any repair activity. Roberts Pond is lined with Hi Density Polyethylene (HDPE) material which is not sensitive to sun damage and, as such, is not covered with earthen material. In this case the inspector observes the conditions of the liner to the extent that visual observation is possible (i.e. above the water level and any visually observable near surface condition). As is the case for the tailing cell inspections, the liner will be observed for any abrasion due to erosive wave action and/or any rips or tears in the liner material. Repairs Repairs to PVC liners in Cells 1, 2 and 3 and to the HDPE liner in Roberts Pond are made on a case by case basis and usually involves the installation of a repair patch over the damaged location. PVC patches require the use of glues or adhesive solvents to fuse the patch to the repair location. HDPE repairs are accomplished by use of an extrusion welder. Subsequent to any repair of a liner, the repair location wilt be tested using a "vacuum box" and soapy water to assure that the repair is acceptable. Tests are conducted such that test areas overlap by at least 1 Oo/o of the minimum vacuum chamber length or at least 2 inches, whichever is greater until the entire seam has been tested. The observation of bubbles through the repair seam while vacuum ( 4-8 psi per ASTM D5641) is being applied to the seam constitutes seam failure and the repair must be redone until all seams are acceptable. In the case of Cells 1, 2, and 3, after a patch has been applied, the repair location must be covered with earthen material, again to avoid exposure to sunlight. Adequate supplies of PVC and HOPE liner material, repair n1aterial and vacuun1 test equipn1ent are maintained either in the Mill warehouse or the maintenance departn1ent. The continued availability of these supplies will be verified as an element of the Quarterly Tailings Inspection conducted by the Radiation Safety Officer or his designee. Any leak, hole or other damage to the liners in Cells 1, 2, 3 and the Roberts Pond will be reported orally to the Executive Secretary within 24 hours of the discovery and in writing within 5 days of the discovery. The oral and written notifications will include a notification and description of the failure in accordance with Part I.G.3.(a) of the GWDP and be in accordance with R317-6-6.16.C(l) of the regulations. In addition to the descriptive information about the failure, a plan and schedule for the FML repair will be included with the notification to the Executive Secretary (in accordance with Part I.G.3.(c) of the Permit). Repair Repott Each report will be signed by a Utah licensed professional engineer and will address the following elements as they apply to the case-by-case repairs which are implemented: • Repair narrative describing the nature of the damage and the repair work completed to repair the damage. • Repair material type used to complete the repair • Repair material description • Post repairs test specifications • Test Methods (ASTM 05641) • Daily reports during the repair work • Repair test results • Quality Assurance/Quality Control Information Attachment F July 2012 Date 7/5/2012 7/12/2012 7/19/2012 7/26/2012 Cell 4A LOS Monitoring Information Weekly measurements in inches from transducer at the bottom of the LOS sump. 8.5 6.0 8.0 9.7 Flow Meter in Gallons 272228 272228 272228 272228 Highest level for the month based on the daily data was 12.1 inches and the lowest level for the month was 2.2 inches. Total number of gallons pumped was 2. Note: on July 30, 2012 two gallons were manually pumped to verify that all sysytems were operational. No problems were noted, but systems are checked periodically as a QC measure. August 2012 Date 8/2/2012 8/9/2012 8/16/2012 8/23/2012 8/30/2012 Weekly measurements in inches from transducer at the bottom of the LOS sump. 5.7 7.0 9.6 9.3 9.0 Flow Meter in Gallons 272230 272230 272284 272284 272284 Highest level for the month based on the daily data was 11.4 inches and the lowest level for the month was 4.8 inches. Total number of gallons pumped was 54. Note: on August 15, 2012 54 gallons were manually pumped to collect samples for the annual tailings and LOS sampling event. September 2012 Date 9/6/2012 9/13/2012 9/20/2012 9/27/2012 Weekly measurements in inches from transducer at the bottom of the LOS sump. 6.4 7.0 8.8 9.9 Flow Meter in Gallons 274917 274917 274917 274917 Highest level for the month based on the daily data was 12.0 inches and the lowest level for the month was 4.3 inches. Total number of gallons pumped was 2633. For the 3rd Quarter 2012, the highest level was 12.1 inches and the lowest level was 2.2 inches and 2689 gallons were pumped. July 2012 Date 7/3/2012 7/10/2012 7/17/2012 7/24/2012 7/31/2012 Ceii4B LOS Monitoring Information Weekly measurements in inches from transducer at the bottom of the LOS sump. 1.85 2.13 2.13 1.85 2.20 Flow Meter in Gallons 0 0 0 0 0 Highest level for the month based on the daily data was 2.41 inches and the lowest level for the month was 1.08inches. Total number of gallons pumped was 0. August 2012 Date 8/7/2012 8/14/2012 8/21/2012 8/28/2012 Weekly measurements in inches from transducer at the bottom of the LOS sump. 1.02 0.74 0.74 0.74 Flow Meter in Gallons 0 0 25 25 Highest level for the month based on the daily data was 1.85 inches and the lowest level for the month was 0.74 inches. Total number of gallons pumped was 25. Note: on August 15, 2012 25 gallons were manually pumped to collect samples for the annual tailings and LOS sampling event. September 2012 Date 9/4/2012 9/11/2012 9/18/2012 9/25/2012 Weekly measurements in inches from transducer at the bottom of the LOS sump. 1.30 1.30 1.02 1.02 Flow Meter in Gallons 25 25 25 25 Highest level for the month based on the daily data was 2.08 inches and the lowest level for the month was 0.74 inches. Total number of gallons pumped was 0. For the 3rd Quarter 2012, the highest level was 2.41 inches and the lowest level was 0. 7 4 inches and 25 gallons were pumped. I GtDIJIJtf!C Consutm~s Table 1A Cafcufated Actkm La•"-• Rites for Various Hud Condition• CeJI4~~ WhlteMfil MIJI BJan4rnr. Utah Head Ataove trner OiddJtatAdfanlldlplbU Sy1tem (feet) {ptfont/ac:te/day) . 5 222•04 UJ . S14~0 15 ''4~Ss.· 20 444•08 25 496.5 JG 54!1,11 35 587.S 37 604•0 GBfiiYnte CoiiiUitlllffl Tible1B calculated Action Lfakage Rates for Various Head Conclftrons Clll48, White Mua Mill Blandltas, Uflft 111111 Atmve UtMrSpttm c.rcalttld Actfon Ltauplllte -,,.,, (lttBo.n.t/aare/~avl 5 Jl1a4 10 117~P --15 •••• 9 zo 422.7 25 475.6 3() 528.4 IS 570.0 ., 581.2 -·-. Max head on Cell 4A FM L Max elevation (ft.) FML elevation (ft.) Head (ft.) From BAT O&M Table 1A (gallon/acre/day) Acres of fluid based on maximum level (acres) Max allowable flow rate (gal/day) 4A-Q3 2012 5593.54 5555.55 37.99 604.0 40 24160 Max head on Ceii4B FML Max elevation (ft.) FML elevation (ft.) Head (ft.) From BAT O&M Table 1B (gallon/acre/day) Acres of fluid based on maximum level (acres) Max allowable flow rate (gal/day) 4B-Q3 2012 5579.65 5557.50 22.15 475.6 36.17 17202 Calculation of Maximum Daily Allowable LDS Flow Volume for Varying Head Conditions in Cells 4A and 4B The equation for the calculation of maximum daily allowable flow volume in Cells 4A and 4B is as follows: Step 1) Where: Step 2) Step 3) Step 4) Elevation 1-Elevation 2 =Head (ft.) Elevation 1 is the maximum elevation in feet measured during the reporting period. Elevation 2 is the FML elevation in feet. Determine Calculated Action Leakage Rate from Table 1A (for Cell4A) or Table 1B (for Cell4B) using the head calculated in Step 1 above. If the head calculated in step 1 above falls between two values in the Head Above Liner System (feet) column, then the closer of these two values will be used to determine the Calculated Action Leakage Rate. Calculate the acres of tailings cell fluids based on the area of the base of the cell, the head, and the angle of the sideslopes of the cell. Action Leakage Rate (from Table 1A or 1B) X Acres of Tailings Cell Fluids = Maximum Daily Allowable Flow Volume Celll, Cell 2, and Cell 3 LOS Monitoring Information -Third Quarter 2012 Celll Cell2 Cell3 Measurement in inches Measurement in inches Measurement in inches Date from transducer at the Date from transducer at the Date from transducer at the bottum of the LDS sump. bottum of the LOS sump. bottum of the LDS sump . • 7/6/2012 Dry 7/6/2012 Dry 7/6/2012 Dry 7/13/2012 Dry 7/13/2012 Dry 7/13/2012 Dry ! 7/20/2012 Dry 7/20/2012 Dry 7/20/2012 Dry 7/27/2012 Dry 7/27/2012 Dry 7/27/2012 Dry I Celll Cell2 Cell3 Measurement in inches Measurement in inches Measurement in inches Date from transducer at the Date from transducer at the Date from transducer at the bottum of the LDS sump. bottum of the LOS sump. bottum of the LDS sump. 8/3/2012 Dry 8/3/2012 Dry 8/3/2012 Dry 8/10/2012 Dry 8/10/2012 Dry 8/10/2012 Dry 8/17/2012 Dry 8/17/2012 Dry 8/17/2012 Dry 8/24/2012 Dry 8/24/2012 Dry 8/24/2012 Dry 8/31/2012 Dry 8/31/2012 Dry 8/31/2012 Dry Celll Cell2 Cell3 Measurement in inches Measurement in inches Measurement in inches Date from transducer at the Date from transducer at the Date from transducer at the bottum of the LDS sump. bottum of the LDS sump. bottum of the LOS sump. 9/7/2012 Dry 9/7/2012 Dry 9/7/2012 Dry 9/14/2012 Dry 9/14/2012 Dry 9/14/2012 Dry 9/21/2012 Dry 9/21/2012 Dry 9/21/2012 Dry 9/28/2012 Dry 9/28/2012 Dry 9/28/2012 Dry Attachment G This attachment has been deliberately left blank.