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HomeMy WebLinkAboutDRC-2013-002355 - 0901a068803867d1ENERGYFUELS Energy Fuels Resources (USA) Inc. 225 Union Blvd. Suite 600 Lakewood, CO, US, 80228 303 974 2140 www.energvfuels.com VIA OVERNIGHT DELIVERY Mr. Rusty Lundberg Director of the Utah Division of Radiation Control State of Utah Department of Environmental Quality May 29, 2013 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 1st Quarter of 2013 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 1st Quarter of 2013, 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. Yours very truly, ENERGY FUELS RESOURCES (USA) INC. Jo Ann Tischler Manager, Compliance and Licensing cc David C. Frydenlund Harold R. Roberts David E. Turk Kathy Weinel May 29,2013 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 3039742140 www.energyfuels.com Re: Transmittal of DMT Performance Standards Monitoring Report and Cell 4A BAT Performance Standards Monitoring Report for the 1st Quarter of 2013 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 1st Quarter of 2013, 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. Yours very truly, {lcL-y~~ !if ENERGY FUELS RESOURCES (USA) INC. Jo Ann Tischler Manager, Compliance and Licensing cc David C. Frydenlund Harold R. Roberts David E. Turk Kathy Weinel WIllTE MESA URANIUM MILL DMT PERFORMANCE STANDARDS MONITORING REPORT AND CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS MONITORING REPORT 1st Quarter January through March 2013 State of Utah Groundwater Discharge Permit No. UGW370004 Prepared By: Energy Fuels Resources (USA) Inc. 225 Union Boulevard, Suite 600 Lakewood, CO. 80228 May 29,2013 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 ..................................................................................................... _ .................. 5 4.3 QUALITY ASSURANCE EVALUATION AND DATA VALIDATION ..................................................................... 5 404 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 ................. 6 7.0 TAILINGS CELLS AND POND LINER SYSTEM REPAIRS ................................................................ 6 8.0 DECONTAMINA TION PADS .................................................................................................................... 7 8.1 SUMMARY OF WEEKLY INSPECTIONS ........................................................................................................... 7 8.2 ANNUAL INSPECTION OF EXISTING DECONT AMINA TION 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 ................................... 9 9.1.3 Measurement of the Volume of Fluids Pumpedfrom the LDS ............................................................... l0 9.2 MEASUREMENT OF WEEKLY WASTEWATER FLUIDS IN CELLS 4A AND 4 B ................................................. 11 9.3 SLIMES DRAIN RECOVERY HEAD MONlTORING .......................................................................................... 11 10.0 CELL 1, CELL 2, AND CELL 3 LDS MONITORING FOR THE QUARTER .......................... : .............. 11 10.1 OPERATIONAL STATUS OF LDS 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 lOA SLIMES DRAIN RECOVERY HEAD MONITORING ...................................................... _ .................................. 1~ 11.0 ANNUAL SLIMES DRAIN RECOVERY HEAD REPORT FOR THE CALENDAR YEAR 2012 .. 12 12.0 SIGNA TURE AND CERTIFICA TION .................................................................................................... 13 1 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 PartI.G.3 of the GWDP C Quarterly Cell 2 Slimes Drain Monitoring Data D Graph of Cell 2 Slimes Drain Water Levels Over Time E Cell Liner Repair Reports and Notices F Cell4A and Cell 4B Leak Detection System Data for the Quarter and BAT O&M Plan Tables lA and lB, Ce1l4A and 4B Calculations G Annual Inspection Forms for Existing and New Decontamination Pads (part I.F.12) ii WHITE MESA URANIUM MILL DMT PERFORMANCE STANDARDS MONITORING REPORT AND CELL 4A AND CELL 4B BAT PERFORMANCE STANDARDS MONITORING REPORTS FOR THE 1st QUARTER OF 2013 1.0 INTRODUCTION This is the routine Discharge Minimization Technology ("DMT") Performance Standards Monitoring Report for the first quarter of 2013 (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.ll of the GWDP: • Weekly tailings wastewater pool elevations for tailings Cells 1 and 3 (Part I.E.7(a)); • Quarterly slimes drain water levels in Cell 2 (Part I.D.3(b)(1) and (2)); • Annual Slimes Drain Compliance (Part I.D.3 (b) and I.F.ll); • 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(f) and Parts I.E.7(d); and (e)); • Any tailings cell and pond liner system repairs (Part I.E.7 (f) and Part I.E.(S)(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 Cell 4A and 4B BAT performance standards monitoring was performed, or addressed, as applicable and as required by PaIts I.E.S and I.E.12 of the GWDP: • Leak detection system ("LDS") monitoring for Cell 4A (Part I.E.S.(a)), and Cell 4B (Part I.E. 12 (a)); and • Weekly tailings wastewater pool elevations for tailings Cell 4A (Part I.E.S (a)) and Ce1l4B (Part I.E.12 (a)). 1 3.0 WEEKL Y TAILINGS WASTEWATER POOL ELEVATION MONITORING Mill personnel monitored and recorded weekly the elevation of wastewater in the Mill's tailings cells during this quarter, 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 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 fms!' 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 fms!, 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 Cell 4A were eliminated as documented on March 14 and 15, 2011 respectively. As indicated in Table 1, the applicable freeboard limits were exceeded for Cell 1 during the first quarter. The details and investigation regarding the Cell 1 freeboard exceedance are included in the May 14, 2013 Division of Radiation Control ("DRC") Notice included in Attachment B. As noted in the Notice in Attachment B, the wastewater pool elevations were brought back into compliance between March 15 and March 22, 2013 and have remained below the freeboard limit since that time. The applicable freeboard limits were not exceeded for any other Cell during the quarter. All cells, except Cell 1 as noted above, met the maximum wastewater criteria of the Mill's State of Utah Radioactive Materials License No. UT 1900479 (the "License") throughout the period. 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 fms!' 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, 2011 letter, freeboard elevation survey measurements in Cell 3 were no longer required or conducted. 2 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 effectively eliminated the former freeboard elevation requirements for tailings Cell 4A, which was replaced by a freeboard limit for Cell 4B that will accommodate the freeboard requirements of Cells 1, 4A, and 4B. 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 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 LD.2 of 10.3 (fmsl) the GWDP (fmsl) CellI 5616.26 5,615.40 5,615.50 Cell 3 Not Measured -No Limit No Limit freeboard limit was (5,602.50*) (5,605.50*) removed in 012011 Ce1l4A 5593.49 -freeboard No Limit No Limit limit was removed in (5,593.74**) (5,595.50**) 01 2011. Ce1l4B 5578.82 5594.60 5597.40 * The Director approved the removal of the Cell 3 freeboard lmllt and authonzed the use ofCe1l4B on January 27, 2011. Cell 3 is nearly full of solids, and is undergoing pre-closure steps. ** The Director granted a variance from the Cell 4A 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 Cell 4A was not set out in the License. The freeboard limit of 5,593.74 for Cell 4A was set out in a letter from the Director dated November 20, 2008. The approved DMT Plan, Revision 11.1 dated January 2011, included the removal of the freeboard limit for Ce1l4A 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)(l) 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 3 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. The GWDP, dated July 14,2011, Part I.D.3 (b)(2) states "effective July 11,2011, the Permittee shall conduct a qualterly 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 Cell 2 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 Cell4A and Cell 4B 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, are included in Section 11 of this report. 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 included the depth to wastewater in the Cell 2 slimes drain access pipe in previous DMT reports. The information was included based on a request from DRC for completeness. 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 the third quarter report. As noted in the third quarter DMT report, EFRI provided quarterly DMT reports addressing only the GWDP DMT requirements beginning with the fourth quarter 2012 report. The data for the weekly depth to wastewater measurements in the Cell 2 slimes drain are no longer included in this report. The 4 weekly depth to wastewater measurements for the Cell 2 slimes drain are available at the Mill for inspection. Attachment B includes a Notice regarding missed weekly depth to wastewater measurements in the Cell 2 slimes drain. The measurements were missed as a result of weather related complications due to prolonged freezing temperatures during the first week of the first quarter 2013. As noted above, this notice and the reporting of the missed measurements are not required to be included in this DMT report. The Notice is included for information purposes only. 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 for the quarter, 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, the 2011 monthly (through June) and quarterly (July forward), and the quarterly 2012 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. Stable water levels have decreased by one foot in 2012 and four feet since 2009. 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. 5 The maximum wastewater elevation measured in Robert's Pond during the quarter was 5,621.73 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 in compliance 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 January 25, February 1, February 8, February 15, February 22, February 28, and March 8, 2013 standing water was noted in the one of the feedstock storage areas. The water was the result of 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 weekly 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. 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. The Mill experienced freezing temperatures for most of the week of December 17, 2012. Temperatures reached only single digit highs on December 19, 2012. On December 19, 2012 a transformer supplying power to the Cell 1 area failed. The Mill managed this power interruption by temporary installation of two portable generators on December 20, 2012. This incident was described in EFRI's telephone notification to DRC on December 19,2012, and in written notices of January 8, January 12, and January 17, 2013 which are included in Attachment B. On the afternoon 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. During the repairs 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. Cell 2 is in interim closure status and is not in service. EFRI notified the Utah 6 Division of Radiation Control via an email dated January 12, 2013. The January 12,2013 e-mail is included in Attachment B. In accordance with Part I.E.7(f) and I.G.3 of the GWDP, EFRI identified, and initiated repairs to damage to the Cell 2 Liner System. Repairs to the liner were completed on January 17, 2013, in accordance with the Mill's Liner Maintenance Provisions. A copy of the January 17, 2013 notification is included in Attachment B of this DMT report. Repairs were performed by qualified liner repair personnel. Pursuant to Part I.F.2 a Liner Repair Report is included with this DMT Report as Attachment E. The second quarter 2012 DMT report included the Cell 1 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 first quarter 2013. The weekly measurements are included in Attachment A. As noted in Attachment A, the fluid level in Cell 1 was greater than 5613.1 fmsl all of the first quarter 2013. The DRC requirements for closure of the Cell 1 liner repair is that a fluid level above 5613.1 be held for 30 days and the leak detection system yield results supporting a finding of successful repair. The leak detection system for Cell 1 did not report any fluid levels during the reporting period and the level above 5613.1 was held. These items will not continue to be monitored and reported in future DMT reports since the DRC conditions for closure of the Cell 1 FML repair report are met. 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 7 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. Table 2 -New Decontamination Pad Inspection Portal Level for the Fourth Quarter 2012 Portal 1 Portal 2 Portal 3 Liquid Level Liquid Level Liquid Level Date (in Feet) (in Feet) (in Feet) 114/2013 0.00 0.00 0.00 1/14/2013 I 0.00 0.00 0.00 1/18/2013 0.00 0.00 0.00 112512013 0.00 0.00 0.00 2/1/2013 0.00 0.00 0.00 2/8/2013 0.00 0.00 0.00 2/15/2013 0.00 0.00 0.00 2/22/2013 0.00 0.00 0.00 3/1/2013 0.00 0.00 0.00 3/8/2013 0.00 0.00 0.00 3/15/2013 0.00 0.00 0.00 3/22/2013 0.00 0.00 0.00 3/2912013 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 LD.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 LF.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 8 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 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 RepOlt 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 except as noted below. Ce1l4A During the quarter, there were no failures of any pumping or monitoring equipment which were not repaired and made fully operational within 24-hours of discovery, as contemplated by Part I.E.8(a)(l) for Ce1l4A. Ce1l4B During the quarter, there were no failures of any pumping or monitoring equipment which were not repaired and made fully operational within 24-hours of discovery, as contemplated by Part I.E. 12(a)(l) for CeIl4B. It is important to note that the Cell 4B LDs records negative fluid levels. The negative values are due to the LDS having no fluid which the transducer "reads" as a negative value because of barometric pressure differences. 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. 9 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 Ce1l4A LDS sump did not exceed 13.0 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 4B 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 the Ce1l4B sump did not record a positive value which equates to no fluid in the LDS. 9.1.3 Measurement of the Volume of Fluids Pumpedfrom the LDS The readings pertaining to the volume of fluids pumped are provided in Attachment F. Cell.4A As can be seen from a review of Attachment F, 9,487 gallons of fluid were pumped from the Cell 4A LDS for the first quarter of 2013. 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 Ce1l4B, 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 39 feet, the allowable flow rate would be approximately 604.0 gallons/acre/day (24,160 gallons/day for the cell), as determined under the Mill's Cell 4A and 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 first quarter of 2013, a total of 9,487 gallons of fluid were pumped from the Ce1l4A LDS during the period and did not exceed the calculated flow volume. The first 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, no fluids were pumped from the Ce1l4B LDS for the first quarter of 2013 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 26 feet. The allowable flow rate would therefore be approximately 475.6 gallons/acre/day (17,202 gallons/day for the cell), as determined under the Mill's Cell4A and 4B BAT Operations and Maintenance Plan, Table IB (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 first quarter 2013, no fluids were pumped from Cell 4B LDS and therefore did not exceed the calculated flow volume. The first quarter allowable flow rate calculation for Cell 4B is included in Attachment F of this report. 9.2 Measurement of Weekly Wastewater Fluids in Cells 4A and 4B Weekly 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 of the Cell 4A or Cell 4B slimes drain systems 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 1,2, 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. DRC has requested that the LDS monitoring for Cells 1, 2, and 3 be included on the DMT inspection forms and that the results of the monitoring be reported in the quarterly DMT reports. EFRI agreed to include the Cells 1, 2, and 3 LDS monitoring in the quarterly DMT reports. The Cells 1, 2, and 3 LDS monitoring data are included in Attachment F. 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 except as noted below. 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. 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 Cell 3 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 2013 (the "Period"), as required under Parts ID.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 1,2014. 12 12.0 SIGNATURE AND CERTIFICATION This documenl was prepared by Energy Fuels Resources (USA) Inc. on May 29. 20 \3. es rces (US A) Inc. By: Dav id . ryd nlund Senior Vice PrcsidcnL, General Counsel and Corporale Secretary 13 CERTIFICATION: 1 cerlify, lri1der penalty of law., ilia ilii, do Urilent and aU attachments were prepared under my dire-etion 0r supervisi.on ill accordance with a y tern dc, igned to a 'Ufe that qualified pe · 'onnei properly gather and evaluate the information , ubmitted. Sa 'ed on my iuguiry of the per on or pex on' who manage the sy tern, or 'rho e per. ons directly re pon ible for gathering the information the information ubmitted i ,to the be. t of my knowledge and belief lrue, accurate and com ete. am aware thal lhere are ignificant penalties for 'ubmitting fa! e iIi formation , incladh the s ibiJity of fine and imprisonment for knowing violations. Da .' Fry enLund. enjor Vice Pre ident, GeQeral Coun eJ and Ol-porate Secretary Energy Fuels Re Olll.'Ces (USA) Inc, 14 Attachment A Date CellI Cell 3 1 Cell 4A 2 Cell 4B 3 Roberts Pond Freeboard 5615.40 -RML 5594.6 - Limit 5615.50 -GWDP GWDP 5624.00 -GWDP 1/4/2013 5614.00 No Longer Required 5593.37 5578.11 5618.87 1/14/2013 5614.50 No Longer Required 5593.75 5578.17 5620.49 1/18/2013 5614.63 No Longer Required 5593.79 5578.18 5621.73 1/25/2013 5614.97 No Longer Required 5594.06 5578.24 5620.80 2/1/2013 5615.44 No Longer Required 5594.45 5578.38 5621.06 2/8/2013 5615.81 No Longer Required 5594.42 5578.29 5619.91 2/15/2013 5616.04 No Longer Required 5594.37 5578.79 5618.95 2/22/2013 5616.26 No Longer Required 5594.14 5579.11 5617.44 3/1/2013 5616.22 No Longer Required 5594.03 5580.08 5617.36 3/8/2013 5615.84 No Longer Required 5593.93 5580.92 5617.48 3/15/2013 5615.47 No Longer Required 5593.79 5582.39 5616.98 3/22/2013 5615.21 No Longer Required 5593.63 5582.91 DRY 3/29/2013 5614.72 No Longer Required 5593.41 5583.94 5617.10 lCell 3 is nearly full of solids, and is undergoing pre-closure steps. The freeboard limit is no longer required and the weekly measurements are no longer required per the January 27 and March 14, 2011 letters from DRC. 2 The previous freeboard limit of 5,593.74 for Ce1l4A is set out in a letter from the Director dated November 20,2008. EFRl proposed in the DMT Plan revision dated November 12,2010 the removal of the freeboard limit for Ce1l4A to be replaced by a freeboard limit for new Cell4B that will accommodate the freeboard requirements of Cells 2,3, 4A, and 4B. The Director granted a variance from the Ce1l4A freeboard limit on January 13,2011 and approved the removal of the Ce114A limit and the use of Cell 4B on January 27, 2011. The weekly measurements are no longer required for compliance with freeboard limts, but are required for the calculation of the daily allowable volume of fluids pumped from the Cell 4A LDS. 3 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 4B at this time. Attachment B January 8, 2013 Sent VIA E-MAIL AND 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 3039742140 www.energyfuels.com Re: Status Update and Follow-up to Notification Regarding Cell 2 Slimes Drain Freeze Dear Mr. Lundberg: This letter is a follow-up to Energy Fuels Resources (USA) Inc. 's ("EFRI's") telephone calls to the Utah Division of Radiation Control ("DRC") on January 3, 2013 regarding the effects of freezing weather conditions on the Cell 2 slimes drain transfer pipeline at theWhite Mesa Mill (the "Mill"). The Mill's Tailings Management System program commits that EFRI will repair the slimes drain pumping system within 15 days, if it is observed not to be working properly. As discussed below, the Mill experienced an abnormally extended period of cold conditions during the last two weeks of December and first week of January, which resulted in freeze damage to a number of areas at the Mill, including power transformers supplying Cell 2. During the period of ongoing low temperature, the slimes drain pump and monitoring equipment remained intact, and power was available to the area via a portable generator. However, the transfer line to Cell 4A became frozen on December 19, 2012, and due to the extended period of freezing weather, could not be thawed and returned to operation until January 7,2013. Although not required by the Tailings Management System program applicable to Cell 2, EFRI has chosen to make the telephone notifications and this follow-up letter for information purposes, to keep DRC apprised of the Mill's efforts to restore the transfer line to operation, and to inform DRC that the line has been thawed and the system has been returned to service. Letter to R. Lundberg January 8,2013 Page 2 1. Facts and Background a) The Mill's Tailings Management System Plan revision 2.1 states that: "Cell 2 slimes drain pump is checked weekJy to observe that it is operating and that the water level probe and 110at mechanism are working properly, which is noted on the Weekly Tailings Inspection Form. If at any time the pump is observed to be not working properly, it will be fixed or replaced within 15 days." b) The Cell 2 slimes drain solutions are transferred through a 3-inch pipeline to Cell 4A. Prior to December 19, 2012, the pipeline was above ground atop the dikes and/or sands of Cell 2 and Cell 3, discharging into Cell 4A near the dike of Ce1l4A. c) Mill personnel conducted the Cell 2 slimes drain quarterly pump test, required by Pmi l.D.3 of the GWDP, from December L I to December 17, 2012. The pump and transfer line operated properly until after the test was concluded. Following shutdown of the pump test, the line froze during the evening of December 17, 2012. d) Mill personnel thawed the line with heating torches and returned it to service during December 18 and 19, 2012. On December 19, 2012, Mill personnel buried the horizontal sections of pipe in 12 inches of borrow soil atop Cell 3 for insulation against potential future freezing weather. e) The Mill experienced an extended period of abnormally cold weather beginning on December 19, 2012. During the evening of December 19, 2012, the Cell 2 slimes drain transfer pipeline froze, even though it had been buried in 12 inches of soil. It remained frozen through January 3, 2013 despite additional efforts to thaw the line with heating torches during that period. 2. Action Taken a) EFRI contacted Mr. Phil Goble of DRC on January 3, 2013 to advise DRC that due to the persistence of the abnormally cold weather and the Mill's inability to thaw the Cell 2 slimes drain pipe, EFRI was unable to perform the Cell 2 slimes drain pump check tests, required by the Tailings Management System program applicable to Cell 2, during the weeks of December 21 and 28,2012 and January 4,2013. b) EFRI committed to advise DRC as soon as weather conditions supported thawing of the discharge pipeline. c) EFRI committed to resume the weekly testing as soon as the pipeline was thawed. Letter to R. Lundberg January 8,2013 Page 3 d) Mr. Goble instructed EFRI to document the efforts to date, and to advise DRC when a more definitive date for returning the system to service was known. e) EFRI successfully thawed the discharge pipeline and returned the slimes drain pumping system to service on January 7, 2013. f) EFRI has determined that for future potential freeze situations, a backup transfer procedure involving pumping the Cell 2 sJimes drain fluids a shorter distance to exposed tailings sands areas in Cell 3, could be used if weather conditions may prevent performance of the weekly slimes drain pump check. The shorter length of transfer line may permit easier thawing and maintenance of slimes drain f1uid flow. 3. Root Cause The slimes drain transfer pump operates on a float system which turns the transfer pump on when sufficient fluid has accumulated in the slimes drain system. As a result, the pump, and transfer line, experience intermittent, not constant, flow. During most of the year, and during typical winters, the intermittent f10w is sufficient to prevent freezing of the 3-inch transfer line. During the prolonged cold period in which the ambient temperature remained below frcezing during the day and as low as single digits during some nights, the intermittent flow was not sufficient to keep the line from freezing, even below the 12 inches of insulating soil. 4. Actions Taken to Maintain Compliance EFRI has taken the following steps to return the Cell 2 slimes drain transfer system to compliance in as short a time as possible. a) Notification By virtue of the initial oral notification given to DRC at on Thursday, January 3, 2013, and this written status letter, EFRI has made good faith efforts to keep DRC apprised of the situation resulting in loss of three rounds of pump checks, as well as effmis to restore the system to operation. b) Failure was not ll1tentional or Caused by EFRI's Negligence The failure to conduct the three missed weekly slimes drain pump checks was not due to EFRI's negligence, either in action or in failure to act. The prolonged cold did not afford any opportunity to get the slimes drain dischmge line thawed and keep it thawed long enough to put the pump system back in service. c) EFRI Has Taken Adequate Measures to Meet Requirements of the Tailings Management System Program Letter to R. Lundberg January8,20 13 Page 4 EFRJ immediale'ly lhawed and returned the slimes drain transFer line t() service when it first .froze During December 18, and 19,2012. When it became evident that it would not be possible to maintain the system in a thawed and operati ve condition, EFRI advised ORC and sought DRC's input on what DRC wou ld req uire. EPRt complied with ORe's requirements as enumerated in Section 2, above. If you :;hould have any questions Tcgarding this status report plca<;e contact me. Yoms very tru ly. ENEKGY 'tm . RESOtlRCES (USA) INC. Dc' . -ryden lund Senior Vice Pres iden t, General Counsel and Corporate Secretary cc: Scot Christianson Jo Ann Tischler Dan Hill sten N. Tanner Holliday Garfin Palmer Harold R. Roberts David E. Turk Kathy Weinel Kathy Weinel From: Sent: To: Cc: Subject: Jo Ann Tischler [joann.tischler@yahoo.com] Saturday, January 12, 2013 4:41 PM rlundberg@utah.gov rtopham@utah.gov; Harold Roberts; David Turk; David Frydenlund; Dan Hillsten; Kathy Weinel; pgoble@utah.gov Notification regarding Cell 2 liner Energy Fuels Resources (USA) Inc, ("EFRI") is providing this email to the Utah Division of Radiation Control ("DRC") to notify DRC that in the late afternoon on Friday, January 11,2013, maintenance personnel at the White Mesa Mill (the "Mill") identified a tear in the liner of tailings Cell 2. Mr. Ryan Johnson of advised EFRI that these type of notification could be made by email if the notice needed to be submitted during non-business hours. Mill Environmental Management became aware of the damage to the liner after 5"00 PM on Friday, January 11, 2013. This notification is being submitted within 24 hours of Corporate Environmental Management being made aware of the incident, as required by the Mill Groundwater Discharge Permit. During the late afternoon if January 11,2012, Mill maintenance personnel were using a backhoe to dig a trench along the edge of Cell 2 to place a new power cable. Cell 2 is a closed tailings cell with an interim cover. EFRI has provided previous 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. As part of the repairs and corrective actions, the Mill was preparing a trench to be used in replacing a power line associated with the failed transformer. The backhoe snagged a portion of the Cell 2 liner above the level of of the tailings and cover material. Construction of the trench was halted until the liner can be repaired. Liner repairs cannot be performed during the current extremely low temperatures, due to a combination of factors including the inability to successfully seal the liner and test the repairs in freezing conditions. EFRI anticipates completing the liner repairs during the week of January 14,2013. A liner repair report will be included in the DMT report for the first quarter of 2013. Please contact me if you have any questions on this notification. JoAnn Tischler Manager, Compliance and Licensing Energy Fuels Resources (USA) Inc. 1 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 Uranitun Mill Utah Ground Water Discharge Permit No. UGW3700004 Energv FUels Resources (USA) Inc. 225 Union Blvd. Suite 600 Lakewood, CO, US, 80228 3039742140 www.energyfuels.com White Mesa Uranium Mill-Notice Pursuant to Parts LE.7.f) and I.GJ of the Permit Dear Mr. Lundberg: Please take notice pursuant to Parts I.E.7.f) and I.G.3 of the White Mesa MilPs (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 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 ofDMT 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 ar~as of the tailings system due to failure of an aging transfonner during the prolonged December 2012 freeze. d) In the afternoon 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 instructed that the excavation was not to divert from Jhe assigned path, and that if any obstructions prevented the excavation from 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 temporarily 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 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 of4 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 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 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 repairs. Repairs were completed during the first quarter of2013. The repair report will be submitted with the first quarter 2Q13 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 of4 • Quality Assurance/Quality Control Infonnation 5. Affrrmative 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 affinnative defense under Part I.G.3 of the Pennit. If you have any questions, please contact me at (303) 389-4132. Yours very truly, ~~ 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 "'B~ ~' ,; r , (' . v ~ " I r V ENERG Y FUELS VIA EMAIL AND OVERNIGHT DELIVERY May 14, 2013 Mr. Rusty Lundberg, Director 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 3039742140 www.energyfuels.com Re: State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill Notice Pursuant to Part l.G.3 of the Permit and UAC R317-6-6.16 (C) Dear Mr. Lundberg: Please take notice pursuant to part l.G.3 of the White Mesa Mill's (the "Mill's") State of Utah Groundwater Discharge Permit No. UGW370004 (the "GWDP") and Utah Administrative Code ("UAC") R313-6-6.16 (C) that Energy Fuels Resources (USA) Inc. ("EFRI") as operator of the Mill and holder of the GWDP, failed to meet discharge minimization technology ("DMT') standards by allowing the wastewater elevation in the Mill's tailings Cell 1 to exceed the freeboard limits set out in Part l.D.2 of the GWDP, as described in more detail below. This exceedance was discovered by Mill personnel on February 1, 2013 and continued until approximately March 22,2013. It was first brought to the attention ofEFRI's Corporate Environmental Management at 4:00 pm on Wednesday, May 8, 2013. Initial notice of this freeboard exceedance was given to Mr. Russ Topham of the Utah Department of Radiation Control ("DRC") at 1 :40 pm on Thursday, May 9, 2013. 1. Facts and Background Information 1.1 Regulatory Background Part l.D.2 of the Mill's GWDP requires that: "Authorized operation and maximum disposal capacity in each of the existing tailings cells shall not exceed the levels authorized by the License. Under no circumstances shall the freeboard be less than three feet, as measured from the top of the FML." Condition 10.3 ofthe Mill's Radioactive Materials License (the "License") states that: N:\WMM\Notices\Cell 1 Freeboard Notice 05.14.13\Celll Freeboard Notice 5-14 13 revision 4.doc Letter to Rusty Lundberg May 14,2013 Page 2 of6 "The Freeboard limit for Cell 1 shall be set annually in accordance with the procedures set out in Section 3.0 to Appendix E of the previously approved NRC license application, including the January 10, 1990 Drainage Report." As a result of the calculations set out in the above-described documents, the Mill's Tailings Management Plan states that the resulting freeboard limit for Cell 1 under the License is 5,615.40 FMSL. Part LD.2 of the GWDP also sets a freeboard limit of not less than three feet from the top of the flexible membrane liner (FML). For Cell 1, this limit is 5,615.50 FMSL. Compliance with Part LD.2 of the GWDP therefore requires satisfaction ofthe stricter of these two freeboard limits. 1.2 Sequence of Events The sequence of events associated with the operation of Cell 1 before and since the freeboard exceedance is as follows: • During the period from June 2010 to June 4, 2012, the Mill performed repairs to the Cell 1 flexible membrane liner ("FML") based on commitments in letters dated August 30, 2010 and September 30, 2010. • During October 2012, the Mill commenced raising the level of solutions in Cell 1, to achieve the elevation of 5613.1 FMSL to confirm the integrity of the repairs to the FML; that is, to monitor whether any solutions appeared in the leak detection system. • During the period preceding and during the solution level exceedance of the freeboard limits, Cell 1 was receiving solutions from: o Solvent extraction ("SX") raffinate discharge o Alternate feed circuit solution discharge o Groundwater from the chloroform and nitrate pumping wells o Minor volumes from laboratory sinks and drains o Minor and sporadic volumes from pumping of pooled rainwater • During the process of repairing the FML, the Mill removed the raft (also referred to as the dock or barge), which held the transfer pump used to transfer solutions from Cell 1 to other cells. • Mill environmental personnel performed tailings inspection and solution level monitoring consistently during the entire quarter, as indicated in the daily and weekly tailings inspection reports which are retained at the Mill. • Mill environmental personnel notified EFRI's Manager, Environmental, Health and Safety (the "Environmental Manager") and the Mill Manager on February 1,2013 that the solution elevation level of 5615.44 FMSL exceeded the freeboard limit set out in the License and referenced in Part LD.2 of the GWDP. Letter to Rusty Lundberg May 14,2013 Page 3 of6 • Mill environmental personnel apprised the Environmental Manager and the Mill Manager each week that the Cell 1 solution elevation exceeded the freeboard limits set out in the License and as referenced in Part I.D.2 of the GWDP (February 8, February 15, February 22, March 3, March 8, and March 15,2013), until the week in which the weekly solution level measurement was again within the freeboard limits (March 22, 2013). The attached Table 1 provides the solution elevation data relative to applicable freeboard limits for each week during the first quarter of 2013. • Mill Maintenance personnel constructed repairs/replacement of the raftlbarge during the period from January 30 to February 3, 2013. The raft was in place prior to the daily tailings inspection on February 6, 2013. • Mill Maintenance personnel constructed repairs/replacement of the Drisco transfer line during the period from February 4 to February 8,2013, to allow transfer of solutions from CellI to Cell 4B. • Mill Maintenance personnel installed a transfer pump on the pump barge and initiated transfer of solutions from Cell I to Cell 4B on February 8, 2013. • On February 21, 2013, SX raffinate solution discharge into Cell 1 ceased and the raffinate solution was transferred to discharge into Ce114B. • The transfer pump on the Cell 1 pump barge (transferring solutions to Cell 4B) was replaced with a larger transfer pump (125 hp1700 gpm) on February 21, 2013, and the larger pump was immediately put into service. • The coupler on the Cell 1 transfer pump failed during the night of February 15 to 16,2013. The coupler was replaced and the pump returned to service on February 16, 2013. The temporary interruption of transfer flow was minimal. • Cell 1 returned to compliance between the weekly solution elevation measurements on March 15, 2013 (of 5615.47 FMSL) and March 22, 2013 (of 5615.21 FMSL). The solution elevation measurements on Cell 1 elevation have remained in compliance continually since the March 22, 2013 measurement. • Corporate, Environmental Management was not notified of the exceedance at any time during the period when the solution elevations were in excess of the freeboard limits. It should be noted that the provisions of UCA 19-5-107 have not been violated. There has been no discharge of a pollutant into waters of the state. EFRI has not caused pollution which constitutes a menace to public health and welfare, or is harmful to wildlife, fish, or aquatic life, or impairs domestic, agricultural, industrial, recreational, or other beneficial uses of water, nor has EFRI placed or caused to be placed any waste in a location where there is probable cause to believe it will cause pollution. Letter to Rusty Lundberg May 14,2013 Page 4 of6 There was no discharge of solutions from the Mill's tailings impoundments at any time during the period when the solution elevation exceeded the freeboard. 2. Action Taken As discussed above, the Mill took the following action to return the Cell 1 solution levels to compliance with Part I.D.2 of the GWDP: • Pumping of solution from Cell 1 to Cell4B began on February 8,2013. • Pumping of solution from Cell 1 to Cell 4B was increased to 700 gpm on February 21, 2013. • Pumping of SX raffmate solution to CellI ceased on February 21,2013. • CellI solution elevation returned to compliance with the Part I.D.2limits between March 15 and March 22, 2013. • EFRI Corporate Environmental Management identified that Cell I solution elevation had exceeded the Part I.D.2 limits during the quarter while reviewing solution elevation data for preparation of the quarterly DMT report for the first quarter of2013, on May 8, 2013. • EFRI Corporate Environmental Management notified DRC on May 9, 2013. 3. Root Cause Three root causes resulted in the non-compliance condition described above. First, the Mill Manager was not sufficiently familiar with the applicable requirements in the GWDP, License and Contingency Plan that restrict solutions level in the tailing cells, andlor require notifications and actions when the solution elevation standard is exceeded. As a result, the Mill Manager did not respond to the initial notification from tailings inspection personnel that solution elevation in Cell 1 was approaching, and later exceeded, the freeboard limits set out in Part I.D.2 of the GWDP, which includes the limits in Condition 10.3 ofthe License. Second, the Mill plans and procedures governing response, actions and notifications for exceedances of limits and failures of compliance did not adequately address internal and external (to DRC) notifications or provide cross references to plans, procedures and permits that do clearly require notifications. During the period of freeboard exceedance, Mill personnel referred to the Freeboard Sections and Tailings Emergencies sections of the Tailings Management System document applicable to Cell 1. The Tailings Management System document did not provide a requirement to make internal notifications to Corporate Environmental Management or external notifications to DRC for exceedances of freeboard limits. Further, that document did not refer to the requirements of the Contingency Plan or Part I.G.3 of the GWDP, which were overlooked by Mill management. Third, there was a breakdown in communications between the Environmental Manager and the Mill Manager. The Mill has undergone a recent reorganization in which the former RSO has assumed responsibilities as the Environmental Manager, which include responsibilities at EFRI's mines as well as at the Mill. At the same time a new RSO was appointed at the Mill. The Environmental Manager appeared to have misunderstood the level of his responsibilities in reporting information to, and advising Letter to Rusty Lundberg May 14,2013 Page 5 of6 what actions are required by, the Mill Manager under abnormal circumstances and non-compliant situations, in light of these organizational changes. As a result of these root causes, • The Mill Manager did not understand that the freeboard exceedance situation required certain immediate actions to bring the cell solution level into compliance as quickly as possible, • The Mill manager did not understand the requirement to ensure that a timely notification be provided to DRC either by contacting DRC directly or by ensuring that Corporate Environmental Management had the information to make the notification, and • The Environmental Manager did not advise the Mill Manager to perform the required management and notification steps. 4. Actions That Will be Taken to Prevent a Recurrence of This Incident The following corrective actions have been initiated. 1. As discussed under Root Cause, above, the Mill Manager was not sufficiently familiar with the applicable requirements in the plans and procedures that govern control of tailings solution levels and require internal and external (to DRC) notifications when certain conditions are not met. The Mill Manager is undergoing re-training in the requirements of the License, the GWDP, the Contingency Plan and the other plans derived from the requirements of these documents. 2. The Environmental Manager will be retrained in his responsibilities to: • advise the Mill Manager in all environmental, safety and radiation protection compliance issues andlor emergencies, and • provide dual coverage and responsibility for environmental compliance, emergency response, and notification to Corporate Management and appropriate regulatory authorities. 3. EFRl is e-evaluating its corporate and Mill environmental management functions and organizational structures to identify any further changes that will minimize the chance of re- occurrence of such misunderstandings of responsibilities and resulting miscommunications. 4. EFRl is re-evaluating the primary documents which require internal or external notification under specific conditions or situations. Specifically, EFRl will incorporate cross references to the Contingency Plan and the notification requirements of Part I.G.3 of the GWDP into the sections of the Tailings Management System document applicable to Cell 1 that deal with freeboard exceedances. This should minimize the chance of the required actions being overlooked in the future. It should be noted that references to the notification requirements of Part I.G.3 of the GWDP had previously been added to the sections of the DMT Monitoring Plan that deal with freeboard exceedances for Cells 4A and 4B. However, those references were not Letter to Rusty Lundberg May 14, 2013 Page 6 of6 carried into the Tailings Management System document applicable to Cells 1 and 3 when it was drafted. EFRI plans to modify these and/Qr the procedures and plans derived from these documents to ensure that the requirements for notification are spelled out clearly. As appropriate, EFRI will provide draft revisions of these documents to DRC for review and approval. If you have any questions, please contact me at (303) 389-4132. Yours very truly, .~ J . /J if \ ENERGY FUELS RESOURCES (USA) INC. Jo Ann Tischler Manager, Compliance and Licensing GC David C. Frydenlund Phil Goble, Utah DRC Dan Hillsten N. Tanner Holliday Garrin Palmer Harold R. Roberts Russ Topham, Utah DRC David E. Turk Kathy Weinel Table 1 Cell 1 Solution Level Data for Q1 2013 Remaining Remaining Remaining GWDP Remaining freeboard Solution License freeboard Freeboard freeboard freeboard Capacity per Elevation freeboard Capacity per Capacity per Limit Capacity per GWDP Date level (FMSl) Limit (FMSl) RMl(feet) RMl (inches) (FMSl) GWDP (feet) (inches) 1/4/2013 5614.00 5615.40 1.40 16.80 5615.50 1.50 18.00 1/14/2013 5614.50 5615.40 0.90 10.80 5615.50 1.00 12.00 1/18/2013 5614.63 5615.40 0.77 9.24 5615.50 0.87 10.44 1/25/2013 5614.97 5615.40 0.43 5.16 5615.50 0.53 6.36 2/1/2013 5615.44 5615.40 -0.04 -0.48 5615.50 0.06 0.72 2/8/2013 5615.81 5615.40 -0.41 -4.92 5615.50 -0.31 -3.72 2/15/2013 5616.04 5615.40 -0.64 -7.68 5615.50 -0.54 -6.48 2/22/2013 5616.26 5615.40 -0.86 -10.32 5615.50 -0.76 -9.12 3/1/2013 5616.22 5615.40 -0.82 -9.84 5615.50 -0.72 -8.64 3/8/2013 5615.84 5615.40 -0.44 -5.28 5615.50 -0.34 -4.08 3/15/2013 5615.47 5615.40 -0.07 -0.84 5615.50 0.03 0.36 3/22/2013 5615.21 5615.40 0.19 2.28 5615.50 0.29 3.48 3/29/2013 5614.72 5615.40 0.68 8.16 5615.50 0.78 9.36 Cell 1 Solution Elevation has remained below the License-based (strictier) freeboard limit of 5615.4 FMSL through the date of this Notice. Attachment C QUARTERLY HEAD M EASU REM ENT TEST Location: Date: 3/25/2013 Slimes Cell # 2 Sampler: Garrin Palmer Tanner Holliday 3/18/13 3/19/13 3/20/13 3/21/13 3/22/13 3/23/13 3/24/13 3/25/13 700 27.45 25.3 23.87 22.96 21.86 800 34.97 27.39 25.22 23.84 22.93 21.85 900 34.08 27.34 25.14 23.79 22.89 21.85 1000 33.27 27.19 25.06 23.75 22.87 1100 32.52 27.05 25.01 23.71 22.84 1200 32.10 26.94 24.97 23.68 22.82 22.54 21.98 1300 31.71 26.85 24.89 23.63 22.80 1400 31.33 26.74 24.79 23.59 22.78 1500 30.95 26.68' 24.70 23.55 22.77 Comments: Final reading for 1st quarter 2013 is 21.85. Attachment D n ID N VI 3 ID '" C .., III -. :::s N 0 0 ID ~ N 0 I-' 0 ~ N 0 I-' I-' I!O N 0 I-' N + ~ 0 o. 0 " N 5 0 • ~ ;;; • o. 0 " " ~ 8 Feet Below Top of Standpipe N N 8 ~ 8 :;; 8 :;jr -;::. -< ~ j{ .1,JtIt "...., • 1 f 1,,- ~ J :;; 8 ~ • 'i': 8 I , , 1/30/2009 3/30/2009 5/30/2009 7/30/2009 9/30/2009 11/30/2009 1/31/2010 3/31/2010 5/31/2010 7/31/2010 9/30/2010 11/30/2010 1/31/2011 3/31/2011 5/31/2011 7/31/2011 9/30/2011 11/30/2011 1/31/2012 3/31/2012 5/31/2012 7/31/2012 9/30/2012 11/30/2012 1/31/2013 Attachment E WHITE MESA MILL REPAIR REPORT TAILINGS CELL 2 May 2013 Prepared by: Energy Fuels Resources (USA) Inc. 225 Union Boulevard, Suite 600 Lakewood, CO 80228 White Mesa Mill-Repair Report, Tailings Cell 2 WHITE MESA MILL REPAIR REPORT TAILINGS CELL 2 TABLE OF CONTENTS Page 2 of 10 1. INTRODUCTION .................................................................................................................. 3 2. INCIDENT HISTORY AND CHRONOLOGY .................................................................... 4 3. REPAIR NARRATIVE ......................................................................................................... 4 4. REPAIR MATERIAL TYPE AND DESCRIPTION ............................................................ 5 5. POST-REPAIR TEST SPECIFICATIONS AND TEST METHODS ................................... 5 6. DAILY REPORTS DURING THE REP AIR WORK ........................................................... 6 7 . REPAIR TEST RESULTS/ QUALITY ASSURANCE/QUALITY CONTROL. ................. 6 8. CONCLUSIONS .................................................................................................................... 6 9. CERTIFICATION .................................................................................................................. 7 Appendix 1 Appendix 2 Appendix 3 APPENDICES DRC and Denison Letters and Correspondence Liner Repair Daily Reports Liner Maintenance Provisions White Mesa Mill -Repair Report, Tailings Cell 2 Page 3 of 10 1. INTRODUCTION Energy Fuels Resources (USA) Inc. ("EFRI"), , operates White Mesa Uranium Mill (the "Mill"). Tailings Cell 2 is the first cell constructed for the disposal of solid tailings from the Mill processes. Cell 2 is in interim closure status and is not in service. Performance standards, monitoring and maintenance requirements for Tailings Cell 2 are specified in the Discharge Minimization Technology requirements in the Mill's Groundwater Discharge Permit (the "Permit"). Per Part I.F.2 of the Mill's Permit, if EFRI 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. This Repair Report shall be included with the next quarterly DMT. EFR performed repairs to the Cell 2 Flexible Membrane Liner ("FML") on January 15th and 16th, 2013, as discussed below. As a result ofthose repairs, this Tailings Cell 2 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 1.F.2 of the Mill's Permit. 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 1.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 first quarter of 20 13. This Repair Report has been included with the first quarter 2013 DMT Report, being submitted on June 1,2013. Due to Senate Bill 21 of the 2012 Utah Legislative Session, references to the Executive Secretary of White Mesa Mill -Repair Report, Tailings Cell 2 Page 4 of 10 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 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. In the afternoon 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 corner of Cell 2 and the northeast corner of Cell 3 and be cut straight along the dike between the cells. The backhoe operator followed the designated path until reaching an area near temporarily stored drums in the north portion of Cell 3, at which point the trench was diverted from the excavation plan by curving the backhoe path northward away from the drums. 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. EFRI provided notice of the torn liner via email to the Director on January 12t\ 2013 and written notice on January 17th, 2013 (provided in Appendix 1). Repair of the torn liner occurred on January 15th and 16th, with testing occurring on January 16th. 3. REPAIR NARRATIVE Cell 2 contains a single 30 mil PVC FML constructed of solvent welded seams, overlain by a protective soil cover layer of 12-inches on the cell floor and 18-inches on the interior side slope. Repairs to the Cell 2 FML occurred on January 15th and 16th indicated on the liner repair report in Appendix 2. The liner repair was performed in the following steps: • Removal of the soil around the discovered damage, • Visual inspection of the FML, • Cleaning and preparing the liner for patch adhesion, • Installation of repair patches over the damaged location, White Mesa Mill -Repair Report, Tailings Cell 2 Page 5 of 10 • 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 30 mil PVC roll stock supplied by Colorado Lining, Inc. Prior to placement of the new lining material repair patch, the soil surface was 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 liner was then seamed using an adhesive supplied by Colorado Lining, Inc. The repaired seams were then 100% vacuum box tested according to the procedures in the attached report. Testing results are included in the attached liner repair report. The final repair activities involved the replacement of the soil cover in order to protect the lining material from exposure to UV degradation. 4. 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 30 mil black PVC liner material • PVC to PVC adhesive glue • methyl ethyl ketone (,2-butanone" or "MEK") as a surface and glue cleaner • sandbags • wire brushes • paint brushes and paint rollers to apply PVC glue • TSP/Manu-Tech Service Projects vacuum testing device (referred to as the "vacuum box") • Liner Daily Repair Forms 5. 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 White Mesa Mill -Repair Report, Tailings Cell 2 Page 6 of 10 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. 6. DAILY REPORTS DURING THE REPAIR WORK Liner Repair Daily Reports have been provided in Appendix 2. 7. 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, the test results were listed by number on the Liner Repair Daily Report. Vacuum tests results are provided in Appendix 2. 8. CONCLUSIONS The Cell 2 liner repair activities were observed by Utah Registered Professional Engineer Steve Snyder. EFR believes that the Cell 2 liner repairs have been performed consistent with the required Liner Maintenance Provisions. White Me!ia MiIl -Repair Reporr, Tailings Cell 2 Page 7 of 10 '9. CERTIFICATION I, Steve Snyder, a Utah Registered Professional Engineer visited U1e repair site on CeU 2 and personally aisous ed the repairs with maintenance per onne!. 1 discussed foundation preparation activities, liner patch placement cleaning and seaming of the liner, and vacuum box testing of the repaired seams. I also l'eviewed the daily records<U1d documentation of the worle conducted. Based upon the daily records and documentation al1 of the work was performed in good workman Like manner and the repairs were completed in accordance withindustFy standard practices. The-vacuum box testing wa being conducted in accordance with the manufacturer's recomm,endatiolls and in general agreement w. ith ASTM D 5641 . I certify that the work was conducted in aocordance with the White Mesa Min; s LinerMainten~llce Provisions, Revision 1 dated October 18 2009. Steve R Snyder, Utah rNo.5049193-2202 Page ~ of 10 APPENDIX! Kathy Weinel From: Kathy Weinel Sent: To: Wednesday, May 15, 2013 2:28 PM Steve Snyder Subject: FW: Notification regarding Cell 2 liner From: Jo Ann Tischler [mailto:joann.tlschler@yahoo.com] Sent: Saturday, January 12, 2013 4:41 PM To: rlundberg@utah.gov Cc: rtopham@utah.gov; Harold Roberts; David Turk; David Frydenlund; Dan Hillsten; Kathy Weinel; pgoble@utah.gov Subject: Notification regarding Cell 2 liner Energy Fuels Resources (USA) Inc, ("EFRI") is providing this email to the Utah Division of Radiation Control ("DRC") to notify DRC that in the late afternoon on Friday, January 11,2013, maintenance personnel at the White Mesa Mill (the "Mill") identified a tear in the liner of tailings Cell 2. Mr. Ryan Johnson of advised EFRI that these type of notification could be made by email if the notice needed to be submitted during non-business hours. Mill Environmental Management became aware of the damage to the liner after 5"00 PM on Friday, January 11, 2013. This notification is being submitted within 24 hours of Corporate Environmental Management being made aware of the incident, as required by the Mill Groundwater Discharge Permit. During the late afternoon if January 11, 2012, Mill maintenance personnel were using a backhoe to dig a trench along the edge of Cell 2 to place a new power cable. Cell 2 is a closed tailings cell with an interim cover. EFRI has provided previous 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. As part of the repairs and corrective actions, the Mill was preparing a trench to be used in replacing a power line associated with the failed transformer. The backhoe snagged a portion of the Cell 2 liner above the level of of the tailings and cover material. Construction of the trench was halted until the liner can be repaired. Liner repairs cannot be performed during the current extremely low temperatures, due to a combination of factors including the inability to successfully seal the liner and test the repairs in freezing conditions. EFRI anticipates completing the liner repairs during the week of January 14, 2013. A liner repair report will be included in the DMT report for the first quarter of 2013. Please contact me if you have any questions on this notification. JoAnn Tischler Manager, Compliance and Licensing Energy Fuels Resources (USA) Inc. 1 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 Energy Fuels Resources (USA) Inc. 225 Union Blvd. Suite 600 Lakewood, CO, US, 80228 3039742140 www.energyfuels.com White Mesa Uranium Mill-Notice Pursuant to Parts I.E.7.:£) and I.G.3 ofthe Permit Dear Mr. Lundberg: Please take notice pursuant to Parts LE.7.:£) 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. ("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 Maintenance Provisions. Cell 2 is in interim closure status and is not in service. 1. Facts and Background Information a) Part 1.E.7.:£) 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.:£): "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.:£) 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 ofDMT 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 of4 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 afternoon 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 Ce112 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 from the assigned path, and that if any obstructions prevented the excavation from 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 temporarily 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 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 of4 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 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 prior to varying from the work plan. 4. Required Reporting As required by Part LF.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 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 40f4 • 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 Pennit. 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 1.0.3 ofthe Permit. Jfyou have any questions, please contact me at (303) 389~4132. Yours very truly, 9fJ-~ 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 White Mesa Mill -Repair Report, Tailings Cell 2 Page 9 oflO APPENDIX 2 LINER REPAIR DAILY REPORTS Cell # Cell #2 Date: 15-16 Jan. 2013 Start Time: 7:00am End Time: 5:30pm Liner Repair Report Linear feet exposed for inspection: __ -=10..::5:..... ___ _ Description of damage or clear of any defects: Slope on South side two areas where repair was needed! Description of the repair work utilized to repair the damage: Upper portion of liner going inside of trench. Material used to complete the repairs: Acetone (cleaner) Wire Brush Paint Brushes Repair Material -(describe in detail): PVC Liner, Glue and used a portable heater to reach temperatures to make necessary repairs. Weather Conditions: *-2 Degrees in the Morning. *16 Degrees mid afternoon. Personnel performing the repair work: *PVC Liner Repair Crew-Darin, Greg and Floyd. *Vacuum Testers-Kendall and Truit. Vacuum Checks if conducted: Conducted Vacuum Checks. See Below Notes: Reached and kept temperatures at 60-65 degrees while repairs and curing the repairs on the liner. 4 Vacuum Tests-16th of Jan 2013. 1) 12hg. 2) 12 hg. 3) 12 hg. 4) 12 hg. NOTE: All testing ofthe repaired material will be in compliance with ASTM D5641 White Mesa Mill -Repair Report, Tailings Cell 2 Page 10 of 10 APPENDIX 3 LINER MAINTENANCE PROVISIONS 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 comprehensive 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 personnel 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. In each case, these inspections are recorded on inspection forms (Daily Inspection Data Form and Operating Foreman's Daily Inspection Form, respectively). In addition, non- recorded Daily Operations Patrols are conducted twice per shift by operations personnel. 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 performing 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 will 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 10% 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 HDPE liner material, repair material and vacuum test equipment are maintained either in the Mill warehouse or the maintenance department. 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 Report 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 D5641) • Daily reports during the repair work • Repair test results • Quality Assurance/Quality Control Information Attachment F January 2013 Date 1/3/2013 1/10/2013 1/17/2013 1/24/2013 1/31/2013 Cell 4A LOS Monitoring Information Weekly measurements in inches from transducer at the bottom of the LDS sump. 8.6 11.3 11.2 7.6 10.2 Flow Meter in Gallons 280934 280934 281650 284479 284479 Highest level for the month based on the daily data was 12.7 inches and the lowest level for the month was 5.3 inches. Total number of gallons pumped was 3545. February 2013 Date 2/7/2013 2/14/2013 2/21/2013 2/28/2013 Weekly measurements in inches from transducer at the bottom of the LDS sump. 11.3 12.6 9.4 10.1 Flow Meter in Gallons 284479 284479 287525 287525 Highest level for the month based on the daily data was 13.0 inches and the lowest level for the month was 7.6 inches. Total number of gallons pumped was 3046. March 2013 Date 3/7/2013 3/14/2013 3/21/2013 3/28/2013 Weekly measurements in inches from transducer at the bottom of the LDS sump. 6.7 8.2 9.3 10.6 Flow Meter in Gallons 290421 290421 290421 290421 Highest level for the month based on the daily data was 12.7 inches and the lowest level for the month was 5.3 inches. Total number of gallons pumped was 2896. For the 1 st Quarter 2013, the highest level was 13.0 inches and the lowest level was 5.3 inches and 9487 gallons were pumped. January 2013 Date 1/3/2013 1/10/2013 1/17/2013 1(24/2013 1/31/2d13 Cell 48 LOS Monitoring Information Weekly measurements in inches from transducer at the bottom of the LDS sump. -0.10 -0.29 -0.29 -0.29 -0.10 Flow Meter in Gallons 118 118 118 118 118 Highest level for the month based on the daily data was -0.10 inches and the lowest level for the month was -1.12 inches. No gallons were pumped. February 2013 Date 2/7/2013 2/14/2013 2/21/2013 2/28/2013 Weekly measurements in inches from transducer at the bottom of the LDS sump. -1.12 -0.29 -1.12 -1.12 Flow Meter in Gallons 118 118 118 118 Highest level for the month based on the daily data was -0.29 inches and the lowest level for the month was -1.12 inches. No gallons were pumped. March 2013 Date 3/7/2013 3/14/2013 3/21/2013 3/28/2013 Weekly measurements in inches from transducer at the bottom of the LDS sump. -0.29 -0.29 -1.12 -1.12 Flow Meter in Gallons 118 118 118 118 Highest level for the month based on the daily data was -0.10 inches and the lowest level for the month was -1.12 inches. No gallons were pumped. For the 1 st Quarter 2013, the highest level was -0.10 inches and the lowest level was -1.24 inches and no gallons were pumped. Max head on Cell4A FMl Max elevati on (ft.) FMl elevation (ft.) Head (ft.) From BAT O&M Table lA (gallon/acre/day) Acres of fluid based on maximum level (acres) Max allowable flow rate (gal/day) 4A -Q12013 5594.45 5555.55 38.9 604.0 40 24160 Max head on Cell4B FMl Max elevation (ft.) FMl elevation (ft.) Head (ft.) From BAT O&M Table IB (gallon/acre/day) Acres of fluid based on maximum level (acres) Max allowable flow rate (gal/day) 4B -01 2013 5583.94 5557.50 26.44 475.6 36.17 17202 Calculati on of Maximum Daily Allowable LOS Flow Vo lume for Varying Head Conditi ons in Cells 4A and 4B Thc eq uation for the calc ul ation of maximum daily all owable flow volume in Cells 4A and 4B is as follows: Step I) Where: Step 2) Step 3) Step 4) Elevation I-Elevati on 2 ~ Head (II.) Elevation I is the max imum elevation in feet measured during the reporting period. Elevation 2 is the FML elevation in feet. Detemline Calculated Action Leakage Rate from Table IA (for CeIl 4A) or Table I B (for Cell 4B) using the head calculated in Step I above. If the head calculated in step I above falls between two values in the Head Above Liner System (feet) co lumn. the n the closer of th ese two values will be used to determine the Calc ulated Action Leakage Rate. Calcul ate the acres of tail ings cell fluids based on Lbe area of the base of Lbe cell, th e bead, and the angle of the sidcslopes of the cell. Action Leakage Rate (from Table 1 A or IB) X Acres of Taili ng, Cell Fluids ~ Maximum Dail y Allowab le Flow Volume . ' -.. H.etd iNsoV8 tln,r -"kl!tqI~~IIft~'" .Svd~m (Je~~) . ("lfo~l·rA(lfqa • -,Ul,M ~ .u;ct . 15 . $U,SBc 20 M4JtJi 25 Pt~ , to . Wil' 85 I sat.s - .' .31 . Jig,to " • . 1'11111.1. C.I,ulaIldAtlfDn LfIIIIqe RIIi..~rv.rlau. Hud ~ro .. !;e11Q,-Whllio M ... Mill lII.nom;" Ulih Cell 1, Cell 2, and Cell 3 LOS Monitoring Information· First Quarter 2013 Cell 1 Cell 2 Cell 3 Measurement in inches Measurement in inches Measurement in inches Date from transducer at the Date from transducer at the Date from transducer at the bottom of the LDS sump. bottom of the LDS sump. bottom of the LOS sump. 1/4/2013 Dry 1/4/2013 Dry 1/4/2013 Dry 1/14/2013 Dry 1/14/2013 Dry 1/14/2013 Dry 1/18/2013 Dry 1/18/2013 Dry 1/18/2013 Dry 1/25/2013 Dry 1/25/2013 Dry 1/25/2013 Dry Cell 1 Cell 2 Cell 3 Measurement in inches Measurement in inches Measurement in inches Date from transducer at the Date from transducer at the Date from transducer at the bottom of the LOS sump. bottom of the LOS sump. bottom of the LOS sump. 2/1/2013 Dry 2/1/2013 Dry 2/1/2013 Dry 2/8/2013 Dry 2/8/2013 Dry 2/8/2013 Dry 2/15/2013 Dry 2/15/2013 Dry 2/15/2013 Dry 2/22/2013 Dry 2/22/2013 Dry 2/22/2013 Dry Cell 1 Cell 2 Cell 3 Measurement in inches Measurement in inches Measurement in inches Date from transducer at the Date from transducer at the Date from transducer at the bottom of the LDS sump. bottom of the LDS sump. bottom of the LDS sump. 3/1/2013 Dry 3/1/2013 Dry 3/1/2013 Dry 3/8/2013 Dry 3/8/2013 Dry 3/8/2013 Dry 3/15/2013 Dry 3/15/2013 Dry 3/15/2013 Dry 3/22/2013 Dry 3/22/2013 Dry 3/22/2013 Dry 3/29/2013 Dry 3/29/2013 Dry 3/29/2013 Dry Attachment G This attachment has been deliberately left blank.