DRC-2013-001787 - 0901a0688035f9cf

State of Utah
JONM HUNTSMAN, JR
Governor
GARY HERBERT
Lieutenant Governor
Department of
Environmental Quality
Amanda Smith
Acting Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
January 15, 2013
CERTIFIED MAIL
(Retum Receipt Requested)
Jo Ann Tischler
Director, Compliance
Energy Fuels Resources (USA) Inc.
225 Union Blvd., Suite 600
Lakewood, CO 80228
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re: 1/15/13; cell 2 liner tear / RT
JO ANN TISCHLER
ENERGY FUELS RESOURCES (USA) INC.
225 UNION BLVD., STE 600
LAKEWOOKCO 80228
PS Form 3800. August 2006 See Reverse for Instructions
Dear Ms. Tischler: DRC-2013-00 1787
SUBJECT: Compliance: Re: Cell 2 Liner Tear; Radioactive Materials License UT1900479 (RML)
and Groundwater Discharge Permit (GWDP) UG370004, Energy Fuels Resources, Inc.
(EFR) White Mesa Mill, Blanding, Utah
In an e-mail dated January 12, 2012 EFR notified the Division of Radiation Control (DRC) that
late in the afternoon of Friday, January 11, 2012, while trenching to install a replacement power
supply line to a transformer, crews snagged the liner of Tailings Cell 2. The snag occurred within
the trench, at an elevation above the top of tailings in the cell, and at a lateral location outside the
tailings footprint. Tailings Cell 2 is not receiving tailings, and is currently closed, and has interim
cover placed over the cell.
Photographs provided in a January 14, 2012 e-mail appear to show that the damage to the liner has
occurred where soils anchor the liner at the margin of the cell. EFR also has suspended excavation
ofthe trench pending completion of liner repairs.
The DRC understands that weather conditions, primarily cold temperatures, prohibit completion
of liner repairs at this time, as the cold makes it difficult to achieve a seal between the liner and
material used to patch the tear. EFR also anticipates completing repairs as soon as temperatures
permit. EFR will be required to include a liner repair report with the next Discharge Minimization
Technology Report due March 1, 2013. The DRC will inspect the liner repair during a future site
inspection.
168 North 1950 West • Salt Lake City, UT
Mailing Address P O Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] -TDD [phone]
www deq Utah gov
Pnnted on 100% recycled paper
Jo Ann Tischler
January 15, 2013
Page 2
TheabovenaaativereflectstheDRC'scurrent —
Tailings Cell 2 liner tear. If you disagree with this understanmng, or y
contact Russ Topham at [phone].
Sincerely
Rusty Lundberg, Director
RL:RJT:rjt
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ll l/Jb^ /^^^irA^^'^^^n n Addressee
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B^Rrfceived byfn-mtad Narn^ 0. Date of Delivery
re: 1 /15/13; cell 2 liner tear / RT
JO ANN TISCHLER
ENERGY FUELS RESOURCES (USA) INC
225 UNION BLVD., STE 600
LAKEWOOKCO 80228
livery addc No
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m 2013
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PS Form 3811, Febmary 2004 Domestic Retum Receipt 10259M2-M-1540
DRC-2013-00113i
ENERGYFUELS
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 Uranium Mill
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
Dear Mr. Lundberg:
Please take notice pursuant to Parts I.E.7.f) and I.G.3 ofthe 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 ofthe 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
Maintenance Provisions. Cell 2 is in interim closure status and is not in service.
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.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 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 Director a notification and description of the defect or damage
Letter to Rusty Lundberg
January 17,2013
Page 2 of 4
orally within 24-hours of the Permittee's discovery, followed by written notification within
five calendar days."
c) The Mill experienced freezing 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 during the prolonged December 2012
freeze.
d) In the aftemoon of January 11, 2013 as part of the repairs and corrective actions resulting from
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 instmcted that the excavation was not to divert from the assigned
path, and that if any obstmctions prevented the excavation firom following the designated path,
the backhoe operator was to contact Mill management to have the obstmctions removed.
f) The backhoe operator followed the designated path until reaching an area near temporarily
stored drums in the north portion of Cell 3. The operator did not contact Mill management to
have the obstmction removed, and chose to divert from 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 rises 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
material.
2. Actions taken
The following actions were taken following identification of the liner tear.
a) Mill Maintenance informed Mill Management of the liner tear in the early evening of Friday
January 11, 2013. Mill environmental management notified EFRI Corporate Environmental
Management during 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 Lundberg
January 17, 2013
Page 3 of 4
d) Mill maintenance personnel initiated repairs to the liner during 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
(ii) 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 following actions will 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 with response to freeze-related failures of older power equipment. The older power
transformers and buried power lines have been replaced with new, upgraded equipment.
Affected older power line installations 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 obstmctions were moved fiirther 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 instmction has emphasized that
the direction of excavation or intmsion work, especially in the tailings area, cannot be
arbitrarily changed without contacting Mill management prior 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 repahs. 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 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
Letter to Rusty Lundberg
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 with the Mill's Liner Maintenance
Provisions constitutes a failure of BAT under the Permit. Further, the damage to the Cell 2 liner was
above the level and outside the perimeter of any tailings or cover material contained in the cell. As a
result, EFR is not making a claim for an affirmative defense under Part I.G.3 ofthe Permit.
If you have any questions, please contact me at [phone].
Yours very tmly.
ENERGY FUELS RESOURCES (USA) INC.
Jo Ann Tischler
Manager, Compliance and Licensing
cc David C. Frydenlund
Phillip Goble, DRC
Russ Topham, DRC
Dan Hillsten
Harold R. Roberts
David E. Turk
Katherine A. Weinel