DRC-2013-001139 - 0901a068803446bb

ENERGYFUELS
DRC.2013-00113t
Energy Fuels Resources (USA) Inc
225 Union Blvd Suite 600
Lakewood, CO, US, 80228
303 974 2140
www energyfuels com
VIA EMAIL AND OVERNIGHT DELIVERY
Janaury 17, 2013
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* White Mesa Uramum Mill
Utah Ground Water Discharge Permit No UGW3700004
White Mesa Uramum Mill - Notice Pursuant to Parts IE 7 f) and I G 3 of the Permit
Dear Mr Lundberg
Please take notice pursuant to Parts IE 7 f) and LG 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 ("EFRI"), as operator of the Mill and holder of the Permit, identified, and initiated repairs to,
damage to the Cell 2 Liner System as described in more detail below.
Repairs to the liner were completed on January 17, 2013, in accordance with the Mill's Liner
Mamtenance Provisions Cell 2 is in interim closure status and is not in service
1. Facts and Background Information
a) Part IE 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 7 f)
"In the event 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."
b) Although Part 1 G.3 of the Permit is stated to apply to circumstances where the Permittee
fails to maintain Discharge Mimmization 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 LG 3, the Permittee is
required to submit to the Director a notification and descnption of the defect or damage
Letter to Rusty Lundberg
January 17,2013
Page 2 of4
orally within 24-hours of the Permittee's discovery, followed by written notification within
five calendar days "
c) The Mill experienced fi'eezing temperatures for most of the week of December 17, 2012.
Temperatures reached single digits on December 19, 2012 EFRI has provided notifications to
DRC on December 19, and 21, 2012 regarding the loss of power to multiple areas of the
tailings system due to failure of an aging transformer dunng the prolonged December 2012
fi-eeze.
d) In the aftemoon of January 11, 2013 as part of the repairs and corrective actions resulting fi-om
the power loss. Mill maintenance personnel were using a backhoe to prepare a trench for
replacing a failed power line The maintenance plan was for the trench to be excavated with
one section in a north-south direction in the area east of Cell 2, and a second section in an east-
west direction along the dike between Cell 2 and Cell 3 The east-west portion was to begin at
the southeast comer of Cell 2 and the northeast comer of Cell 3 and be cut straight along the
dike between the cells.
e) The backhoe operator was instructed that the excavation was not to divert fi"om the assigned
path, and that if any obstructions prevented the excavation firom following the designated path,
the backhoe operator was to contact Mill management to have the obstructions removed
f) The backhoe operator followed the designated path until reaching an area near temporanly
stored drums in the north portion of Cell 3. The operator did not contact Mill management to
have the obstruction removed, and chose to divert fi'om the excavation plan by curving the
backhoe path northward away from the drums.
g) In trenching outside the planned area, the backhoe snagged and tore a portion of the Cell 2
liner where it nses over the dike and enters the anchor trench south of Cell 2 The tear was
above and outside the cell and outside the area containing any tailings material or cover
matenal
2. Actions taken
The foUovsdng actions were taken following identification of the liner tear
a) Mill Maintenance informed Mill Management of the liner tear m the early evemng of Friday
January 11, 2013. Mill environmental management notified EFRI Corporate Environmental
Management dunng the evening/night of January 11,2013
b) EFRI notified the Utah Division of Radiation Control via an email dated January 12,2013.
c) In response to a request by the Director of DRC, EFRI provided photographs of the liner
damage to DRC on January 14, 2013
Letter to Rusty Ltmdberg
January 17,2013
Page 3 of4
d) Mill maintenance personnel initiated repairs to the liner dunng the week of January 14, 2013
Repairs and testing of the liner were completed on January 17,2013. Since
(i) the cell was in interim closure and not in service, and
(ll) the liner damage was outside of the cell and its tailings and cover material (it was in the
anchor trench),
there was no effect on the cell's contents or cover
3. Actions Taken to Prevent a Recurrence of This Incident
The foUowang actions v^U be taken to prevent a reoccurrence of this incident
a) As discussed above, the liner tear occurred during trenching and replacement of a power line
associated wdth response to freeze-related failures of older power equipment The older power
transformers and buned power lines have been replaced with new, upgraded equipment
Affected older power line mstallations have been upgraded by replacement with jacketed lines
and/or conduit for additional protection from traffic and weather. It is anticipated that these
upgrades and replacements will prevent further power supply failures in future cold weather,
and prevent the need for further repair-related trenching
b) The obstructions were moved further south within the Cell 3 area to ensure the trench
excavation could be completed in the proper location, and liner repair activity could proceed
with ample working space
c) The maintenance backhoe operator has been retrained and his instruction has emphasized that
the direction of excavation or intrusion work, especially in the tailings area, cannot be
arbitrarily changed without contacting Mill management pnor to varying from the work plan.
4. Required Reporting
As required by Part I.F.2 of the permit, a liner repair report will be submitted to the Director with the
next quarterly DMT Report following completion of the repairs. Repairs were completed during the
first quarter of 2013. The repair report will be submitted with the first quarter 2013 DMT Report on or
before June 1, 2013 The repair report will contain, in addition to a root cause analysis, the foliovsing
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 matenal descnption
• Post repairs test specifications
• Test Methods (ASTM or other)
• Daily reports dunng the repair work
• Repair test results
Letter to Rusty Ltmdberg
January 17, 2013
Page 4 of 4
• Quality Assurance/Quality Control Information
5. Affirmative Defense
EFR does not believe that identification of a defect or damage to the Cell 2 liner caused by maintenance
activities and repair of such defect or damage in accordance vnth the Mill's Liner Maintenance
Provisions constitutes a failure of BAT tmder the Permit Further, the damage to the Cell 2 liner was
above the level and outside the perimeter of any tailings or cover matenal contained in the cell As a
result, EFR is not making a claim for an affirmative defense imder Part I.G.3 of the Permit.
If you have any questions, please contact me at [phone]
Yours very truly.
ENERGY FUELS RESOURCES (USA) INC.
Jo Aim Tischler
Manager, Compliance and Licensing
cc David C Frydenlimd
Phillip Goble, DRC
Russ Topham, DRC
Dan Hillsten
Harold R. Roberts
David E Turk
Katherine A. Weinel